Fidelis Insurance Raises $500 Million of Equity Capital for Growth in Hardening Market

June 10, 2020

Fidelis Insurance Holdings Ltd. announced it has raised $500 million of equity capital from existing investor relationships.

On top of the $300 million raised by the company in February, Fidelis has now secured $800 million of additional equity during 2020.

The Bermuda-based re/insurer will have capital for underwriting in excess of $2 billion. Fidelis said this will give the company the ability to broaden relationships with existing and new clients in the classes it already writes, as well as expand into new lines of business, allowing the company to take advantage of the attractive and hardening rating environment.

“We are seeing a broad-based hardening of rates and improvements to terms and conditions in multiple lines of business,” said Richard Brindle, chairman and CEO of Fidelis, in a statement.

Fidelis joins other insurers that have moved to raise capital, including Lloyd’s insurers Lancashire, Beazley and Hiscox. Lancashire this week announced an equity capital raise, while Beazley and Hiscox raised money last month.

“This is due not just to the effects of COVID-19, but to multiple factors from ILS retrenchment to the increasing realization that underwriting profits are the only sustainable basis for re/insurers to build long-term business success,” he added.

“The $800 million of equity capital we have raised over the last six months demonstrates the confidence that our investors have in us to thrive in the current rating environment and over the longer term,” he affirmed.

“Following on from the announcement of the rating upgrade from AM Best to ‘A’, it is clear that we are well positioned for the current market conditions as we continue our development of a quality underwriting franchise,” Brindle went on to say

Fidelis was advised on the transaction by Evercore and Willkie Farr & Gallagher LLP.

Fidelis Insurance Holdings Ltd. is a privately owned Bermuda-based holding company, which, through its subsidiaries, is a global provider of property, bespoke and specialty insurance and reinsurance products.