After reports started to circulate last week over a capital raise, Inigo has now confirmed that it has secured around $800 million from a consortium comprising funds controlled by Caisse de dépôt et placement du Québec (CDPQ), Enstar, J.C. Flowers & Co., Oak Hill Advisors, Qatar Investment Authority, Stone Point and Inigo’s management team, amongst others.
As previously announced, the new Lloyd’s insurer is founded by Richard Watson, the former Chief Underwriting Officer (CUO) of Hiscox, alongside Russell Merrett, former Managing Director of Hiscox London Market, and Stuart Bridges, former Chief Financial Officer (CFO) of Hiscox and ICAP.
Additionally, Sir Howard Davies, Chairman of NatWest Group, has been appointed as Chairman of Inigo. He has a distinguished career in the City, business and government, having served as Chairman of the Financial Services Authority from 1997 until 2003. From 2003 to 2011 he served as Director of the London School of Economics, and as Chairman of Phoenix Group from 2012 to 2015.
The company has also confirmed the signing of an agreement to purchase certain insurance underwriting assets of StarStone Underwriting Ltd., including its Lloyd’s Syndicate 1301 and its managing agency, from Enstar Group, subject to regulatory approvals.
Inigo expects these to form the foundation for its operations as a specialty insurer, writing a streamlined portfolio of insurance and reinsurance risks. Furthermore, no legacy underwriting will be transferred to Inigo, explains the firm.
In light of the hardening market landscape and heightened demand for coverage, the new insurer feels that current conditions are ideal to launch a new insurance business. The firm has selected London as its principal base since it regards the overall insurance ecosystem offered by Lloyd’s of London as exceptionally attractive, adding that Lloyd’s will best support the growth and development of the new syndicate.
Watson commented: “This significant capital raising, together with our acquisition, gives us the platform we need to turn Inigo from a concept into reality. We believe that 2021 will mark the beginning of an exciting growth phase for Lloyd’s and the London Insurance Market and Inigo will contribute to growing the specialty and reinsurance marketplace, as it returns to profitability.
“Sir Howard Davies joining our board validates our vision for Inigo and our determination to provide credible additional capacity and services to customers and brokers.
“We are fully supportive of the direction that John Neal, Lloyd’s CEO, is taking the market, making it a more attractive and efficient place in which to trade. For a company like ours, entirely focused on underwriting, London also has the depth of young talent we need to develop the analytical and data-led approach that is at the core of what we hope to do.”