Fidelis
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The ILW deal will offer a spread of 1775-1850 basis points (bps), including a wide range of perils and notably high coupon for the ILS market.
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Its quota share partnerships provide the equivalent of $4.1bn of capital support based on 1-in-250-year loss scenarios. -
Hannover Re and Fidelis provided significant capacity on the Munich Re-led programme.
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The reinsurer was chasing a high 15% net return target but said lower demand and capital trapping made this unachievable
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The company expects reinsurance to provide 78% of its $2.5bn gross written premium target.
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Oaktree Capital is understood to be the institutional investor behind the "permanent capital" retro carrier.
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The additional raise takes the carrier’s committed capital to $3.2bn.
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Occurrence retro rates are among the segments where rate pressure is abating, although the outlook remains somewhat opaque in a late renewal.
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The carrier’s long-standing client Alfa has become an equity investor.
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The carrier joins peers such as Hamilton Re in raising fresh funds to attack the tight retro market.
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The deal will come into effect on 1 October, with the specialty player's gross lines likely to scale up by a quarter.
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Total equity and debt raised this year if the $300mn target is reached would approach $1.5bn.
