Travelers Makes ‘Strategic Minority Investment’ in Fidelis Insurance Holdings

The Travelers Companies said it has made a “strategic minority investment” in Fidelis Insurance Holdings, a privately-owned global specialty insurer and reinsurer. Neither side disclosed financial terms.

“We are pleased to invest in a talented and proven management team and look forward to gaining insights from them into the specialty, non-admitted market,” Greg Toczydlowski, executive vice president and president of Business Insurance at Travelers, said in prepared remarks. “As an innovative company with a successful track record, Fidelis is an excellent fit for our investment appetite.”

Fidelis, launched in 2015 and based in Bermuda, operates a business model based on three pillars:

1. Bespoke, which includes coverage for transactional liabilities; cyber, credit and political risk; and political violence,
2. Reinsurance, which includes coverage for natural catastrophe and property retrocession, provided on a proportional or excess of loss basis on the company’s Bermuda, Dublin or London platforms,
3. Specialty, which primarily includes aviation, war, energy, marine and terrorism.

Additionally, the company has a fee income business, called Socium, which supports its three business pillars and contributes to assets under management.

Fidelis debuted having secured approximately $1.5 billion in equity capital, which it billed as “one of the largest industry capital raises ever” in its 2015 launch announcement. The company raised another $1.3 billion in 2020, including $185 million in December 2020.

Source: Travelers

A version of this article first was published in Insurance Journal’s sister publication, Carrier Management.