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New insurance group raises £600 million

New insurance group raises £600 million | Insurance Business

New insurance group raises £600 million

A new insurance group has completed a capital raise of about $800 million (around £600 million), in preparation for its launch next year.

Inigo Limited is founded by former Hiscox chief underwriting officer Richard Watson, who stepped down from his previous position last year after 33 years of service. He is joined by Russell Merrett, former managing director of Hiscox London Market, and Stuart Bridges, former chief financial officer of both Hiscox and ICAP.

A consortium of global investors raised the over $800 million capital for Inigo, comprised of funds controlled by entities such as Caisse de dépôt et placement du Québec (CDPQ), Enstar, J.C.  Flowers & Co., Oak Hill Advisors, Qatar Investment Authority, Stone Point, and Inigo’s very own management team.

A company release said that the funds give Inigo the capital base it needs to proceed with its plans to open business in 2021, subject to approvals from Lloyd’s.

Following the investment, NatWest Group chairman Sir Howard Davies has been appointed chairman of Inigo Group. Davies served as the first chairman of the Financial Services Authority – the UK’s financial regulation body – from 1997 to 2003. He also served as the director of the London School of Economics from 2003 to 2011, and chairman of Phoenix Group from 2012 to 2015.

Inigo also announced that it has signed an agreement to acquire “certain insurance underwriting assets” from StarStone Underwriting – including StarStone’s Lloyd’s Syndicate 1301 and its managing agency – from Enstar Group, subject to regulatory approvals. The insurance group explained that the deal is intended to “form the foundation for Inigo’s operations as a specialty insurer.” No legacy underwriting will be transferred to Inigo.

“This significant capital raising, together with our acquisition, gives us the platform we need to turn Inigo from a concept into reality,” said Watson. “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.”

Watson added that the addition of Sir Davies to the company’s board “validates our vision for Inigo and our determination to provide credible additional capacity and services to customers and brokers.”