Fidelis Insurance Holdings has launched a new special purpose insurer, Socium Re, to provide collateralised capacity support for Fidelis’ reinsurance portfolio.
Beginning 1 June 2018, Socium entered into a quota share agreement with Fidelis, under which it will reinsure a share of the company’s worldwide excess of loss portfolio.
The vehicle has secured approximately $50 million of capital commitments, including approximately $5 million from Fidelis and capital from third-party investors.
The sidecar sits alongside Fidelis’ rated quota share partners and the company intends to grow both strategies.
For the transaction, Fidelis partnered with Aon Securities, with Horseshoe Group handling the operational aspects and Willkie Farr & Gallagher acting as legal counsel.
Fidelis’ executive head of partnerships and international reinsurance, Philip Vandoninck, said it was an important step in the development of the company’s business strategy.
He stated: “We have been pleased with the capital markets interest in our reinsurance portfolio and received commitments at almost double the targeted capital raise amount.”
“In 2017, Fidelis’ reinsurance portfolio significantly outperformed the market, and this will have positively influenced investor interest in this transaction.”
