MGU Fidelis Partnership Completes $2 Billion Refinancing to Support Growth Strategy

Bermuda-based general insurer Fidelis Partnership (TFP) has announced the successful completion of a $2 billion refinancing transaction.

Led by Blackstone Credit & Insurance, the transaction marks a significant milestone for The Fidelis Partnership, which in January 2023 separated from the balance sheet insurance companies that are part of the Fidelis Insurance Group.

Fidelis Partnership grew from $3.0 billion to over $4.1 billion in gross written premium (GWP) across over 100 lines of business.

This growth has been supported by a number of strategic initiatives over the past 18 months, including the most recent establishment of a new Lloyd’s syndicate in just 10 weeks, the opening of an office in Abu Dhabi and the expansion of the Pine Walk incubator platform with five signed MGAs, a TFP said.

The transaction supports TFP’s growth strategy, which includes:

• Expanding coverage in the Middle East, Africa, Asia and Latin America, all of which have growing demand for specialist reinsurance solutions, enhanced by Lloyd’s licenses and new TFP office in Abu Dhabi
• Expanding the Pine Walk platform by recruiting top underwriters to establish niche underwriting cells within the platform, which is expected to grow to over $1 billion in GWP in 2025
• Leveraging the licences, credit rating, access to Lloyd’s single markets and additional capacity of Fidelis Partnership Syndicate 3123
• Growth in business lines where TFP is currently underweight relative to market opportunity.

“When we founded Fidelis in 2015, I don’t think any of us could have predicted the success we would achieve over the next decade. I’ve been in the market for 40 years and the Fidelis Partnership is by far the most exciting part of my career,” commented Richard Brindle, president and CEO of TFP Group, in a statement.

“My team and I have built the largest and most diversified independent MGU globally, operating in a complex market that more than ever needs creative underwriting for evolving risks in an increasingly multipolar world “, he added.

Brindle said Lou Salvatore and the Blackstone team underwrote TFP’s original debt in 2022.

“We have been very impressed with the strong growth and operational performance that TFP has demonstrated since our initial engagement to support its spin-off. We are excited to continue working with Richard Brindle and the team at TFP and believe this transaction exemplifies our focus on taking leading roles in financing large-scale solutions to support world-class businesses and help them grow,” according to Lou Salvatore, senior managing director at Blackstone Credit & Insurance.

Blackstone joined the debt investment and revolving credit facility along with Oak Hill Advisors, Barings, PNC and Barclays. This transaction was advised by Evercore Partners International LLP, Kinmont and Willkie Farr & Gallagher (UK) LLP.

Source: Fidelis Partnership

TOPICS
Insurance wholesale