Fidelis raises extra $185m taking 2020 growth capital to over $1.3bn

Bermuda-based Fidelis Insurance Holdings has raised an additional $185 million of capital in the fourth quarter to support its growth plan, taking the total capital raised in 2020 to over $1.3 billion.

The fresh $60 million of equity capital has come from existing and new investors including Alfa Insurance and affiliated companies with which the carrier has a long-standing relationship.

Additionally, the company has raised from institutional investors $125 million of 6.625 percent Fixed-Rate Reset Junior Subordinated Notes due 2041, which are redeemable at the option of the company at each interest reset date which occurs every five years.

The Notes have received Tier 2 capital treatment under the Bermuda Monetary Authority’s Group Supervision Rules.

The re/insurer raised $300 million of equity capital in February, followed by $500 million from existing investors, in addition to issuing $300 million of senior notes, in June this year. Overall, Fidelis has raised a total capital of over $2.4 billion.

Richard Brindle, chairman and CEO of Fidelis, said: “We are very pleased to have Alfa as our latest equity investor. We have built a strong relationship with the Alfa team over the years through their quota share support of our underwriting and our participation on their treaties. Their equity investment further cements our partnership and long-term relationship.

"Having raised over $1.3 billion of capital in the past year, we have been able to take advantage of the hardening market conditions and have the financial and human resources to continue to build on our existing portfolio in 2021.”

John Hemmings, senior vice president, CFO and chief investment officer of Alfa Insurance, said: “We are excited about this opportunity to broaden our relationship and expand our partnership with Fidelis as equity shareholders. We have great respect and admiration for the Fidelis management team’s proven track record and have great confidence in their ability to generate successful growth and financial strategies in the future. Alfa Insurance seeks to be a long-term partner and is dedicated to helping Fidelis build a successful and profitable company.”