Fidelis taps third-party capital via Hampden for new Lloyd’s syndicate launch

Fidelis Syndicate 3123 at Lloyd’s is being launched with the support of third-party private capital sourced via Hampden Agencies and the initiative marks the first entry into the Lloyd’s market for MGU the Fidelis Partnership and CEO Richard Brindle’s return to the Lloyd’s market after 26 years.

The Fidelis Partnership, which is the new brand name for the Fidelis MGU that separated out of Fidelis Insurance group, has now received “in principle” approval for the launch of Syndicate 3123 in collaboration with Fidelis Insurance Holdings Limited.

The company said this is “a significant milestone in The Fidelis Partnership’s strategic expansion, and reflects its continued alignment and strong collaborative relationship with the Fidelis Insurance Group.”

When the company announced its separation, of the MGU and balance-sheet, we suggested this provided Fidelis more flexibility, in terms of capital use and access to it, saying it created “a structure that allows for bolt-on capacity partnerships and investor relationships.”

Now, that is evident through Fidelis’ entry to Lloyd’s, with Syndicate 3123 to be backed by third-party private capital, as well as the Fidelis balance-sheet.

For the launch, Fidelis has partnered with Hampden Agencies, the largest provider of private capital to Lloyd’s.

Hampden also offers investors other less traditional routes to access the return of the Lloyd’s market, including fund structures it operates under the Hampden Insurance Partners brand.

Richard Brindle, CEO of The Fidelis Partnership, commented on the launch, “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.”

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.”

Fidelis Syndicate 3123 will target to write $180 million of Gross Written Premium (GWP) in H2 of 2024 and $450 million in 2025, 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 the Active Underwriter of Syndicate 3123, most recently having served as the Head of Bespoke for The Fidelis Partnership and the syndicate will be managed at formation with support from Asta, the third-party managing agent at Lloyd’s.

Fidelis, with the separation of the MGU underwriting and origination from the re/insurance balance-sheet, has developed a platform where third-party capital is a natural fit and adding more capital can only help both sides a further chance to grow and generate profits.

Dan Burrows, CEO of Fidelis Insurance Group, also 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, also commented, “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.”