Fidelis Insurance Holdings has raised approximately $300 million of equity capital to fuel the growth of the business.
The capital raise came from a combination of existing shareholders and an investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
Richard Brindle, chairman and group CEO of Fidelis, described the capital raise as a “validation of the Fidelis business model,” adding that it has given the re/insurer “significant firepower in a market where we are seeing attractive opportunities.”
Brindle added: “The capital raise, in addition to the accumulated profits from 2019, position Fidelis excellently for the increasingly positive market conditions, particularly in certain specialty and reinsurance segments.” It will also enable the company to grow and give it greater influence in its chosen markets, he said.
Fidelis’ chosen markets include bespoke insurance, reinsurance and specialty underwriting. These three units, along with its fee income business called Socium, comprise Fidelis’ four pillar strategy, which it said ensures diversified income streams. Focusing on these specific markets allows the re/insurer to target the most compelling opportunities across the insurance cycle, it said.
Fidelis was advised on the transaction by Evercore and Willkie Farr and Gallagher.
Fidelis, Abu Dhabi Investment Authority, ADIA, Richard Brindle