The funding will help Lloyd’s insurer Inigo to open for business in 2021
Inigo, a recently formed speciality re/insurance holding company, raised $800m from a consortium of investors that include Qatar Investment Authority and Caisse de dépôt et placement du Québec (CDPQ).
Other investors in the consortium include Enstar, Oak Hill Advisors, J.C. Flowers & Co., Stone Point, and Inigo’s management team.
Founded by Richard Watson, Russell Merrett and Stuart Bridges, Inigo will operate as a speciality insurer at Lloyd’s of London. All the three founders of the company are former executives of Bermuda-based insurance group Hiscox.
Inigo said that the funds will help it to open for business in the coming year, which will be subject to approval from Lloyd’s.
The insurer also announced Howard Davies, the current chairman of NatWest Group, as its chairman.
The company will focus on writing a streamlined portfolio of insurance and reinsurance risks, and will get certain transitional services and staff from Enstar.
Recently, Enstar and Stone Point Capital signed agreements to sell StarStone Underwriting, a Lloyd’s managing agency, along with the right to operate Lloyd’s Syndicate 1301, to Inigo.
As per the terms of the deal, Enstar, Stone Point, and Dowling funds will be issued $30m worth shares of Inigo, upon closing. Additionally, Enstar and Stone Point committed to invest up to $27m and $18m, respectively into Inigo.
The transaction is subject to regulatory approvals and other conditions.
Watson said: “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 speciality and reinsurance marketplace, as it returns to profitability.”