Fidelis gets $300m capital injection, including from Abu Dhabi Investment Authority

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Fidelis Insurance Holdings Limited, the specialty insurance and reinsurance firm launched by Richard Brindle, has announced a new raise of fresh capital to help it expand its business, with an equity growth round that featured the Abu Dhabi Investment Authority alongside existing shareholders.

fidelis insuranceIt’s notable that the Abu Dhabi Investment Authority (ADIA) has invested in Fidelis, as the sovereign wealth fund also invests in insurance-linked securities (ILS).

The investment in Fidelis underscores the ADIA’s liking for reinsurance linked returns, which it signalled in 2019 when it allocated roughly $550 million across a number of ILS fund strategies.

Fidelis said today that it raised roughly $300 million of equity capital from existing shareholders and one wholly owned subsidiary of the ADIA, with the capital set to support further growth at the re/insurer.

Fidelis operates across the market in specialty and reinsurance, with a Four Pillar strategy that sees it focused on Bespoke, Reinsurance and Specialty underwriting, as well as generating fee income through its Socium capital partners and third-party capital business, which is where its collateralised reinsurance sidecar activity sits.

Richard Brindle, Chairman and Group CEO of Fidelis, commented on the news, “The capital raise in addition to the accumulated profits from 2019 position Fidelis excellently for the increasingly positive market conditions, particularly in certain specialty and reinsurance segments, and will give Fidelis capacity for growth and greater influence in its chosen markets.

“This successful capital raise is further validation of the Fidelis business model and recognises our market-leading performance to date. It has given us significant firepower in a market where we are seeing attractive opportunities. We are delighted to have secured a further vote of confidence from our existing shareholders and also to welcome ADIA as a new investor to the Company.”

Fidelis Insurance Holdings launched in 2015 following a $1.5 billion capital raise. The company follows a hybrid insurance and reinsurance strategy of sorts, seeking to balance the underwriting and investment side of the business in order to maximise returns.

Use of third-party capital is an expanding piece of this business lately, as Fidelis seeks out efficient capacity and fee income generation, like so many others in the reinsurance market at this time.

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