Fidelis Insurance Holdings has announced that it raised an additional $60 million (approx. £45 million) in equity capital during Q4. Fidelis raised the capital from existing and new investor relationships including Alfa Insurance and affiliated companies, with which Fidelis has a longstanding relationship.
The company has also raised $125 million (approx. £94.5 million) in 6.625% fixed-rate reset junior subordinated notes due in 2041, which are redeemable at the option of the company at each interest-rate reset date, which occurs every five years. The notes have received tier-2 capital treatment under the Bermuda Monetary Authority’s Group Supervision Rules, Fidelis said.
Over the past year, Fidelis has raised over $1.3 billion (approx. £0.98 billion) in capital to support its growth plan, bringing the company’s total capital to more than $2.4 billion (approx. £1.81 billion).
“We are very pleased to have Alfa as our latest equity investor,” said Richard Brindle, chairman and CEO of Fidelis. “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 (approx. £0.98 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 build on our existing portfolio in 2021.”
“We are excited about this opportunity to broaden our relationship and expand our partnership with Fidelis as equity shareholders,” said John Hennings, senior vice president, CFO and chief investment officer at Alfa Insurance. “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.”
