Fidelis completes landmark MGU and balance sheet split

Fidelis Insurance Holdings has announced the completion of the transaction creating a new Managing General Underwriter (Fidelis MGU), separate from FIHL and the existing insurance companies.

Both FIHL and Fidelis MGU have received approvals or non-objections from the BMA in Bermuda, the FCA and PRA in the UK, the CBI in Ireland, and the FSMA in Belgium.

The Fidelis MGU executive committee is headed by Richard Brindle, chairman and group CEO and also includes:

• Charles Mathias, Deputy Chairman & Group Executive Director
• Michael Cottell, Group General Counsel & Group Company Secretary
• Richard Coulson, Chief Executive Officer of Insurance & UK Chief Underwriting Officer
• Jonny Creagh-Coen, Head of Strategic Relationships
• Michael Davern, Co-Deputy UK Chief Underwriting Officer & Group Head of D&F and Energy
• Richard Holden, Chief Executive Officer of Reinsurance
• Robert Kelly, Chief Executive Officer of Ireland, Chief Financial Officer of Ireland & Group Head of Financial Planning & Analysis
• Hinal Patel, Group Chief Financial Officer
• Rinku Patel, Group Chief Operating Officer, Chief Executive Officer of UK & Chief Executive Officer of Pine Walk
• Philip Vandoninck, Chief Executive Officer of Socium & Chief Executive Officer of Bermuda

The Fidelis Insurance Group’s executive team consists of:

• Dan Burrows, Group Chief Executive Officer
• Denise Brown-Branch, Group Chief Operating Officer
• Allan Decleir, Group Chief Financial Officer
• Mike Pearson, Group Chief Risk Officer
• Ian Houston, Group Chief Underwriting Officer
• David Smith, Group Chief Investment Officer
• Jonny Strickle, Group Chief Actuary

The Fidelis MGU’s principal equity investors are Capital Z Partners, The Travelers Companies, Inc., Blackstone, Further Global Capital Management and Alfa Insurance. In addition, Blackstone is leading the debt financing to the Fidelis MGU, with Oak Hill Advisors (OHA) and Barings also participating in the debt and providing equity. 

The Fidelis Insurance Group capital structure will remain unchanged, as will its investors, apart from the purchase of a 9.9% stake in Fidelis Insurance Group by the Fidelis MGU from existing shareholders.

Richard Brindle and the Fidelis MGU team retain significant personal stakes in the Fidelis Insurance Group as well as being significant shareholders in Fidelis MGU.

Brindle said: “We are delighted to announce the completion of this intelligent and ground-breaking transaction. It has been an extraordinary effort by both entities, supported by outstanding advisors. We really believe this positions us to be leaders in an exciting market today and for the long term. 

”The MGU can now focus on the core competencies in underwriting, claims handling, reinsurance structuring and above all innovation of new products, supported by our market leading proprietary technology tools.

”We look forward to continuing and growing our relationships with brokers and clients by providing the highest standards of service and the most thoughtful deployment of capacity in the market.”

Dan Burrows said: “The new structure and partnership between Fidelis Insurance Group and Fidelis MGU will be highly beneficial to all stakeholders and provides an evolved capital, risk and distribution model.”