Fidelis launches new sidecar Socium Re on Bermuda

Fidelis Insurance Holdings has formed a new Bermuda-domiciled special purpose insurer, which it plans to use to provide collateralised capacity support for Fidelis’ reinsurance portfolio.

Socium Re has entered into a quota share agreement with Fidelis, incepting 1 June 2018, under which it will reinsure a share of Fidelis’ worldwide excess of loss portfolio.

The vehicle has secured capital commitments of approximately $50 million. This includes capital from third-party investors, together with approximately $5 million from Fidelis. The sidecar sits alongside Fidelis’ rated quota share partners and Fidelis intends to grow both strategies.

Philip Vandoninck, executive head of partnerships and head of International Reinsurance, said: “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.”

Fidelis partnered with Aon Securities for this transaction, with the Horseshoe Group handling the operational aspects.

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