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Fidelis Insurance Holdings has announced the creation of Socium Re, a new Bermuda-domiciled special purpose insurer designed to provide collateralised capacity support for Fidelis’ reinsurance portfolio.
Socium has entered into a quota share agreement with Fidelis, which started on 1 June 2018, under which it will reinsure a share of Fidelis’ worldwide excess of loss portfolio.
The vehicle has secured capital commitments of approximately $50 million. According to Fidelis this includes capital from third-party investors, together with approximately $5 million from Fidelis. The sidecar sits alongside Fidelis’ rated quota share partners and Fidelis intends to grow both strategies.
“This is an important step in the development of our business strategy,” said Philip Vandoninck, executive head of partnerships and head of international reinsurance. “We have been pleased with the capital markets interest in our reinsurance portfolio and received commitments at almost double the targeted capital raise amount.
“In 2017, Fidelis’ reinsurance portfolio significantly outperformed the market, and this will have positively influenced investor interest in this transaction.”
Fidelis said that it partnered with Aon Securities for this transaction, with the Horseshoe Group handling the operational aspects. Willkie Farr & Gallagher acted as legal counsel for the transaction.
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