Bullish Fidelis has now raised $800m as it targets new lines and uplift from harder rates

Bermuda re/insurer Fidelis has raised an additional $500 million, taking the total of new equity it has raised in the last six months to $800 million, as it says it aims to capitalise on the hardening market.

The additional equity has come from existing investor relationships. It means the company now has capital for underwriting in excess of $2 billion.

It said the fresh cash will be used to broaden relationships with existing and new clients in the classes it already writes, as well as expand into new lines of business, allowing it to take advantage of the attractive and hardening rating environment.

Richard Brindle, chairman and CEO of Fidelis, said: “We are seeing a broad-based hardening of rates and improvements to terms and conditions in multiple lines of business. This is due not just to the effects of COVID-19, but to multiple factors from ILS retrenchment to the increasing realisation that underwriting profits are the only sustainable basis for (re)insurers to build long-term business success.

“The $800 million of equity capital we have raised over the last six months demonstrates the confidence that our investors have in us to thrive in the current rating environment and over the longer term. Following on from the announcement of the rating upgrade from AM Best to “A” it is clear that we are well positioned for the current market conditions as we continue our development of a quality underwriting franchise.”