HSCM and Cornell to acquire high net-worth insurer Vault from Fairfax

Hudson Structured Capital Management (HSCM Bermuda) and private equity investment house Cornell Capital have agreed to acquire specialist high net-worth insurer Vault from Fairfax Financial and Allied World Assurance Company.

Florida-based Vault Insurance, which launched in 2017, is a combination of a policyholder-owned reciprocal insurance exchange and a surplus lines company targeted toward the high net-worth market.

Following the sale, Fairfax through Allied World will continue to own a 10 percent stake in Vault, while the majority interest will be owned by HSCM and Cornell.

The former CEO of Allied World Scott Carmilani, who was instrumental in creating and growing Vault, will continue to have an ownership interest and play a leadership role in Vault.

The transaction is expected to close by the end of the first quarter of 2021.

Prem Watsa, chairman and CEO of Fairfax, said: “We are very pleased to complete this transaction with Cornell Capital and HSCM Bermuda. We are also very grateful to Scott for all of his contributions to the Fairfax Insurance Group, especially at Allied World, a company which he led from being a start-up to becoming an industry leading and highly successful worldwide insurance and reinsurance business. We wish Scott all the very best.”