Fidelis Completes MGU and Balance Sheet Split

Article

Fidelis Insurance Holdings Ltd. (FIHL) announced the completion of the transaction creating a new managing general underwriter (Fidelis MGU), separate from FIHL and the existing insurance companies (the Fidelis Insurance Group).

Originally announced in July 2022, the transaction became effective on Jan. 3, 2023. Both FIHL and Fidelis MGU have received approvals or non-objections from the Bermuda, UK, Irish and Belgian regulators.

The Fidelis MGU will be located at Waterloo House in Bermuda, 22 Bishopsgate in London, and the Station Building II in Dublin. The Fidelis MGU executive committee consists of:

Richard Brindle, chairman and group chief executive officer
Charles Mathias, deputy chairman and group executive director
Michael Cottell, group general counsel and group company secretary
Richard Coulson, chief executive officer of Insurance and UK chief underwriting officer
Jonny Creagh-Coen, head of Strategic Relationships
Michael Davern, co-deputy UK chief underwriting officer and group head of D&F and Energy
Richard Holden, chief executive officer of Reinsurance
Robert Kelly, chief executive officer of Ireland, chief financial officer of Ireland, and group head of Financial Planning & Analysis
Hinal Patel, group chief financial officer
Rinku Patel, group chief operating officer, chief executive officer of UK, and chief executive officer of Pine Walk
Philip Vandoninck, chief executive officer of Socium and chief executive officer of Bermuda

The Fidelis Insurance Group will be located at Waterloo House in Bermuda, 22 Bishopsgate in London and the Station Building II in Dublin. The Fidelis Insurance Group’s executive team consists of:

Dan Burrows, group CEO
Denise Brown-Branch, group COO
Allan Decleir, group CFO
Mike Pearson, group chief risk officer
Ian Houston, group chief underwriting officer
David Smith, group chief investment officer
Jonny Strickle, group chief actuary

The Fidelis MGU’s principal equity investors are Capital Z Partners, The Travelers Cos. Inc., Blackstone, Further Global Capital Management and Alfa Insurance. In addition, Blackstone is leading the debt financing to the Fidelis MGU, with Oak Hill Advisors (OHA) and Barings also participating in the debt and providing equity.

Fidelis Receives Regulatory Nod to Create New MGU, Split Business

The Fidelis Insurance Group capital structure will remain unchanged, as will its investors, apart from the purchase of a 9.9% stake in Fidelis Insurance Group by the Fidelis MGU from existing shareholders, creating additional alignment.

Richard Brindle and the Fidelis MGU team retain significant personal stakes in the Fidelis Insurance Group as well as being significant shareholders in Fidelis MGU.

“We are delighted to announce the completion of this intelligent and ground-breaking transaction. It has been an extraordinary effort by both entities, supported by outstanding advisors. We really believe this positions us to be leaders in an exciting market today and for the long term,” commented Brindle.

“The MGU can now focus on the core competencies in underwriting, claims handling, reinsurance structuring and, above all, innovation of new products, supported by our market leading proprietary technology tools.”

“The new structure and partnership between Fidelis Insurance Group and Fidelis MGU will be highly beneficial to all stakeholders and provides an evolved capital, risk and distribution model,” said Burrows.

This transaction was advised by Evercore Partners International LLP, Kinmont, Willkie Farr & Gallagher (UK) LLP and PricewaterhouseCoopers LLP. Each management team was advised on this transaction by Mishcon de Reya LLP and BDO LLP. Capital Z Partners, The Travelers Cos. Inc. and Further Global Capital Management were advised on this transaction by Skadden, Arps, Slate, Meagher & Flom LLP. Blackstone, OHA and Barings were advised on this transaction by White & Case LLP and Freshfields LLP.

Source: Fidelis

Related: