The Fidelis Partnership Spearheads New Lloyd’s Syndicate

Rhea-AI Summary

Fidelis Insurance Group, Hampden Agencies, and Asta are collaborating to launch Syndicate 3123 in partnership with Lloyd's, marking a significant milestone in strategic expansion. The syndicate aims to write $180 million GWP in H2 of 2024 and $450 million in 2025, underwriting various insurance classes. Daniel O’Connell will be the Active Underwriter, managed by Asta. The initiative is supported by Lloyd’s CEO and aims to bring innovation and value to shareholders.

Insurance Industry Analyst

The formation of Syndicate 3123 by The Fidelis Partnership in collaboration with Fidelis Insurance Group and Hampden Agencies is a strategic move that leverages the unique position of Lloyd's as a global insurance marketplace. The syndicate's focus on diverse insurance and reinsurance classes, such as contract frustration, political risk and property catastrophe, highlights a response to evolving market demands, particularly in an era where political and climate-related risks are becoming more pronounced.

With an initial target of writing significant Gross Written Premiums in the coming years, the syndicate's entry into the market can be expected to increase competition. This could potentially lead to more competitive pricing and product innovation, benefiting consumers. However, the ambitious GWP targets also suggest that the syndicate will need to quickly establish a strong market presence and risk management framework to ensure profitability and maintain investor confidence.

The involvement of private capital through Hampden Agencies underscores the continued importance of alternative capital in the insurance sector. This could signal a trend where private investors are increasingly attracted to the insurance industry's potential for diversified returns, especially in a low-interest-rate environment.

Financial Analyst

The announcement of Syndicate 3123's launch, subject to final approval, is an indicator of strategic growth and could have implications for Fidelis Insurance Holdings Limited's stock performance. The collaboration with established entities in the insurance market, like Hampden Agencies and Asta, reflects a calculated approach to risk and capital management. This collaboration could be seen as a positive signal to investors about the company's underwriting capabilities and its commitment to innovation and flexibility in the insurance space.

Investors should monitor the syndicate's performance against its GWP targets as an indicator of its impact on the group's overall financial health. If successful, the syndicate could contribute positively to earnings and provide a diversified revenue stream. However, the inherent risks associated with underwriting new classes of insurance, especially in a volatile global risk environment, should not be underestimated.

Risk Management Expert

The introduction of Syndicate 3123 represents a significant undertaking in terms of risk management, particularly given the range of insurance classes it aims to underwrite. The focus on areas such as political violence and marine insurance suggests that the syndicate will be dealing with complex and potentially high-severity risks. Effective risk assessment and pricing will be essential to ensure that the syndicate can maintain profitability while also providing competitive products in the market.

Moreover, the syndicate's success will hinge on its ability to leverage Lloyd's global licenses, upgraded financial strength rating and capital structure to effectively distribute risk and manage exposure. The management team's experience, particularly the appointment of Daniel O'Connell as the Active Underwriter, will be a critical factor in navigating the intricate landscape of global risks and ensuring that the syndicate's underwriting practices meet the high standards expected at Lloyd's.

Fidelis Insurance Group, Hampden Agencies and Asta to participate in new vehicle

PEMBROKE, Bermuda--(BUSINESS WIRE)-- The Fidelis Partnership today announced that Lloyd’s has granted “in principle” approval for the launch of Syndicate 3123 in collaboration with Fidelis Insurance Holdings Limited (NYSE:FIHL) (“Fidelis Insurance Group”), a global specialty insurer, and Hampden Agencies, the largest provider of private capital to Lloyd’s. The sponsorship of Syndicate 3123 by The Fidelis Partnership marks the return of its Founder and Chief Executive Officer, Richard Brindle, to the Lloyd’s market after 26 years.

Subject to the completion of final approval, the launch of Syndicate 3123 will represent a significant milestone in The Fidelis Partnership’s strategic expansion, and reflects its continued alignment and strong collaborative relationship with the Fidelis Insurance Group. With an initial target to write $180 million of Gross Written Premium (GWP) in H2 of 2024 and $450 million in 2025, Syndicate 3123 will underwrite across multiple insurance and reinsurance classes including contract frustration and political risk, credit, property catastrophe, political violence, marine, and aviation.

Daniel O’Connell will be appointed as the Active Underwriter of Syndicate 3123. Mr. O’Connell brings extensive specialty underwriting experience and is currently serving in the role of Head of Bespoke for The Fidelis Partnership.

The syndicate will be managed at formation with support from Asta, the leading third-party managing agent at Lloyd’s.

Richard Brindle, CEO of The Fidelis Partnership, said: “Our new syndicate will bring underwriting leadership, innovation, and flexibility. It will build on Lloyd’s position as the world’s leading insurance marketplace.

Private capital remains highly relevant in insurance; we are therefore delighted to partner with Fidelis Insurance Group and also with Hampden Agencies, to bring this new capacity into the market. This allows us to access more business and write risks on behalf of a broader range of clients in more jurisdictions leveraging Lloyd’s global licences, recently-upgraded financial strength rating and capital structure. We are looking forward to embarking on this next step of our journey of innovation and collaboration, all while we continue to set new standards of excellence in the industry.”

Dan Burrows, CEO of Fidelis Insurance Group, said: “We are proud to support the launch of Syndicate 3123. Our underwriting strategy is designed to facilitate consistent access to the most attractive risks. Syndicate 3123 further advances our strategy by creating new opportunities based on Lloyd’s extensive licences and strong ratings. Together with The Fidelis Partnership, we look forward to continuing to redefine the specialty insurance landscape and create value for our shareholders by proactively managing and allocating capital and supporting profitable underwriting opportunities.”

John Neal, Lloyd’s CEO, said: “The Fidelis Partnership has built a solid reputation as a leading underwriting agency, and we’re excited to welcome Syndicate 3123 to the market. Lloyd’s is the perfect place for forward-thinking companies to come together and innovate to find solutions to some of the world’s most complex and challenging risks, and we’re delighted that The Fidelis Partnership will be joining us to solve these problems for our customers.”

Patrick Tiernan, Chief of Markets, Lloyd’s, said: “The Fidelis Partnership team brings a depth of underwriting leadership and supports our ambition of having the world’s best underwriters operating on the Lloyd’s platform. We see this opportunity as being accretive to the market, bringing in new and diverse sources of underwriting capability and capital. Richard and his team are warmly welcomed back into the Lloyd’s underwriting community.”

Alistair Wood, Hampden Agencies CEO, added: “Hampden Agencies is delighted to be involved in this new syndicate, which demonstrates the important role of private capital in the Lloyd’s market and our ability to access that capital with scale. This is a great opportunity for private investors to enjoy the returns from prudent and profitable underwriting.”

Lorraine Harfitt, Asta Capital Limited (“Asta”) CEO, said: “We are delighted to support Richard and his team in securing in-principle approval for Syndicate 3123. By combining Asta's strengths as a managing agent with our collective commitment to innovation, our partnership aims to deliver leading underwriting solutions that address critical market challenges, including climate change. We look forward to supporting Syndicate 3123 as it aims to achieve accretive and strong underwriting results to the Lloyd’s market.”

The Fidelis Partnership and Fidelis Insurance Group are being advised on the transaction by Asta and Willkie Farr & Gallagher (UK) LLP.

About The Fidelis Partnership

The Fidelis Partnership is a leading privately-owned, Bermuda-based Managing General Underwriter, which, through its subsidiaries, is a global underwriter of property, bespoke and specialty insurance and reinsurance products. The Fidelis Partnership is one of the largest Managing General Underwriters globally and its operations also include outwards reinsurance, claims handling, exposure management and portfolio analytics. The Fidelis Partnership also sponsors and incubates specialist MGAs through its Pine Walk platform. The Fidelis Partnership is separately owned and managed from the ownership and management of Fidelis Insurance Group. Additional information regarding The Fidelis Partnership may be found at www.fidelispartnership.com.

About Fidelis Insurance Group

Fidelis Insurance Group is a global specialty insurer, leveraging strategic partnerships to offer innovative and tailored insurance solutions.

We have a highly diversified portfolio focused on three segments: Specialty, Bespoke, and Reinsurance, which we believe allows us to take advantage of the opportunities presented by evolving (re)insurance markets, proactively shift our business mix across market cycles, and produce superior underwriting returns.

Headquartered in Bermuda, with worldwide offices including Ireland and the UK, Fidelis Insurance Group operating companies have a financial strength rating of A from AM Best, A- from S&P and A3 from Moody’s. For additional information about Fidelis Insurance Group, our people, and our products please visit our website at www.FidelisInsurance.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240327139381/en/

The Fidelis Partnership Media Contacts:

FTI Consulting

TFP@fticonsulting.com



Fidelis Insurance Group Investor Contact:

Fidelis Insurance Group

Miranda Hunter

+1 (441) 279 2561

miranda.hunter@fidelisinsurance.com



Fidelis Insurance Group Media Contacts:

Fidelis Insurance Group

James Dumelow

+44 778 904 0954

James.Dumelow@fidelisinsurance.com



Kekst CNC

Fidelis@kekstcnc.com

Source: Fidelis Insurance Holdings Limited

FAQ

What is the significance of Syndicate 3123 launch by Fidelis Insurance Group, Hampden Agencies, and Asta?

The launch of Syndicate 3123 marks a strategic expansion for The Fidelis Partnership, aiming to underwrite $180 million GWP in H2 of 2024 and $450 million in 2025, under various insurance classes.

Who will be the Active Underwriter of Syndicate 3123?

Daniel O’Connell will be appointed as the Active Underwriter of Syndicate 3123.

Which managing agent will support the syndicate at formation?

The syndicate will be managed at formation with support from Asta, the leading third-party managing agent at Lloyd’s.

Who is Richard Brindle and what role does he play in the launch of Syndicate 3123?

Richard Brindle is the CEO of The Fidelis Partnership and plays a key role in the launch of Syndicate 3123, bringing underwriting leadership, innovation, and flexibility.

How does Fidelis Insurance Group contribute to the launch of Syndicate 3123?

Fidelis Insurance Group supports the launch of Syndicate 3123 by facilitating consistent access to attractive risks and creating new opportunities based on Lloyd’s extensive licenses and strong ratings.