Fidelis Insurance, the dual underwriting and investment-oriented insurance and reinsurance firm launched by Richard Brindle, is to secure access to property catastrophe reinsurance business from the Lloyd’s market through a quota-share arrangement with Novae Group.
Fidelis is providing a quota-share reinsurance cover for what we understand to be around half of the Novae Syndicate 2007 U.S. Property Catastrophe Treaty excess of loss underwriting portfolio for 2017.
Novae had been considering its strategic options for remaining in this business, likely a reaction to the softened state of U.S. property catastrophe reinsurance rates, but with the backing of Fidelis the firm will continue to underwrite the line through its Lloyd’s of London syndicate.
Total return reinsurance firm Fidelis operates a more active and alternative investment strategy, with a liquidity focus, than traditional reinsurers, as it looks to outperform the market for its investors.
The addition of a quota-share of business from a recognised underwriting source like Novae’s Lloyd’s property treaty team will provide Fidelis with new premium income and float, in an area of the market which is not its absolute core business. Also, accessing Lloyd’s property catastrophe business may prove incremental, as Fidelis does not have its own Lloyd’s syndicate at this time, so this quota-share is likely a more efficient way to enter that market.
Richard Holden, Head of North American Underwriting at Fidelis Insurance Bermuda Ltd., commented; “We have great respect for the Lloyd’s market and the continuity Novae has offered their clients over a sustained period of time. This partnership will enable both entities to optimize their portfolios and benefit from combined expertise.
“Accessing London Treaty Reinsurance through an established team and portfolio is in line with Fidelis’ long term strategy.”
Robert Forster, Chief Underwriting Officer at Novae, added; “I am pleased to announce this strategic partnership with Fidelis through a reciprocal quota share of our respective US Property Catastrophe Treaty portfolios. It provides greater balance to our business as we deliver our broader strategy. Fidelis is an excellent long-term partner and shares our focus on expert underwriting and delivering innovative solutions for the benefit of our customers.”