Fidelis launches Socium Re collateralised quota share sidecar

by Artemis on June 4, 2018

Fidelis Insurance Holdings Limited, the dual underwriting and investment-oriented insurance and reinsurance firm launched by Richard Brindle, has launched its first collateralised reinsurance sidecar, with Socium Re Ltd. capitalised with $50 million to begin and destined to become a growing source of quota share for the firm.

Fidelis said that the Bermuda-domiciled special purpose insurer Socium Re Limited has been launched to provide collateralised retrocessional capacity support for Fidelis’ reinsurance portfolio.

Socium Re has entered into a quota share agreement with Fidelis, with the arrangement incepting as of June 1st 2018, which will see the sidecar reinsure a share of Fidelis’ worldwide excess of loss portfolio.

Socium Re has secured capital commitments of roughly $50 million to support this collateralised quota share reinsurance capacity for Fidelis.

The company said that this includes capital from third-party investors, along with roughly $5 million contributed by Fidelis itself.

Fidelis said that the Socium Re sidecar will sit alongside its rated quota share partners and the company intends to grow both of these strategies over time.

This follows a growing trend for re/insurers to leverage quota share partners capital as a vehicle for growth, with collateralised funding often an efficient way for companies such as Fidelis to augment their own underwriting capacity.

Philip Vandoninck, Executive Head of Partnerships and Head of International Reinsurance, commented on the launch of Socium Re, “This is an important step in the development of our business strategy. 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.”

Aon Securities assisted Fidelis in bringing the Socium Re sidecar transaction to market, with the Horseshoe Group handling the operational aspects of the arrangement. Willkie Farr & Gallagher (UK) LLP acted as legal counsel for the structuring and launch of Socium Re Ltd.

For more details on reinsurance sidecar investments view our directory of collateralized reinsurance sidecar transactions.

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