Fidelis Insurance to form MGU
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Bermuda-based specialty insurer and reinsurer Fidelis Insurance Holdings Ltd. said Monday it intends to form a managing general underwriter separate from its existing balance sheet insurance businesses.
Fidelis MGU will originate and write more than $3 billion of gross written premiums across specialty lines of business, the insurer said.
The MGU will be backed by insurers The Travelers Cos. Inc. and Alfa Insurance and private equity firms Capital Z Partners Management LLC, The Blackstone Inc., and Further Global Capital Management LP, Fidelis said.
Travelers already took a minority stake in Fidelis last year.
Richard Brindle, chairman, group CEO and chief underwriting officer of Fidelis, will act as chairman and CEO of the MGU.
Once separated there will be no changes to the way Fidelis currently operates underwriting from its offices in Bermuda, London and Dublin, the insurer said.
The transaction is subject to regulatory approval.
The balance sheet companies will have access to Fidelis’ underwriting talent and risk origination, with appropriate structures in place to ensure alignment, Mr. Brindle said in a statement.
Fidelis launched in 2015 and has an investment management arm in addition to its underwriting units.
