Home Insurance Travelers targets hard reinsurance market returns via Fidelis quota share

Travelers targets hard reinsurance market returns via Fidelis quota share


Travelers executives revealed today that, as part of the investment the giant US insurer made into Fidelis Insurance Holdings, the arrangement also featured a relatively significant 20% quota share reinsurance deal, that will see Travelers able to benefit from hard reinsurance market returns.

Back around the middle of 2021, it was announced that Travelers invested an undisclosed amount into Fidelis, which the recipient termed a “minority investment.”

All that was disclosed at the time, was that Travelers had joined Fidelis’ shareholder panel with the investment.

But today, Travelers CFO Dan Frey gave some details on an additional arrangement between the pair, a quota share reinsurance deal that will see Travelers sharing in Fidelis’ premiums and also losses.

“In 2021, we took a minority ownership stake in Fidelis effective January 1st 2023,” Frey explained.

Adding that, “We have separately entered into an agreement with Fidelis whereby Travelers will take a 20% quota share on policies issued by Fidelis with effective dates in 2023.”

So Travelers will share in 20% of the premiums and also losses of Fidelis’ business, which is focused on areas of the market that historically Travelers has not had a significant…

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