Fidelis' Richard Brindle: Where are the hard market profits?

Bermuda-based re/insurer  Fidelis has renewed its 20 percent whole account quota share with Berkshire Hathaway for 2022. The company's chief executive Richard Brindle has called for pricing and structure changes, especially in the catastrophe exposed property lines, to reflect “the real impacts of climate change and exposure growth".

Fidelis has renewed its quota share arrangement with Berkshire Hathaway for a further 12 months. The agreement will enable it to continue to supply “significant capacity” to its clients.

Brindle, chairman and group chief executive officer of Fidelis, said: “I continue to believe that there is considerable need for lead markets with significant capacity across a range of specialty, bespoke and reinsurance lines.

“Nonetheless, further changes to product structures and pricing are required, especially in the catastrophe exposed property lines to reflect the real impacts of climate change and exposure growth.

“For everyone who is calling a hard market I have one question: where are the hard market profits? We need to price and structure our products to make a profit for our shareholders, and at present the industry is not even covering the cost of capital.”

He added: “ Fidelis will continue to supply significant capacity to clients, but all our business lines must be rated to make a sustainable profit.”

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