Fidelis Issues $300M of Senior Notes, Bringing 2020 Capital Raise to More Than $1B
Fidelis Insurance Holdings Ltd. announced it has issued $300 million of senior notes, which comes on the heels of last week’s equity funding of $500 million and the $300 million raised by the re/insurer in February.
The offering of the notes (or bonds) brings the aggregate capital committed to be raised by the company in the last six months to more than $1 billion, taking Fidelis’ total capital to over $2 billion, said Fidelis in a statement.
The notes, which have a 10-year maturity and a fixed-rate coupon of 4.875% payable semi-annually, have received Tier 3 capital treatment under the Bermuda Monetary Authority’s Group Supervision Rules.
Fidelis said the extra capital 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.
Richard Brindle, chairman and CEO of Fidelis, said that the rate hardening is not just because of COVID-19, but also because of the retrenchment of the insurance linked securities market and the realization by the market that re/insurers need underwriting profits for long-term success.
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