Fairfax and Allied World Announce Sale of Vault Insurance
13 November 2020 - 9:02AM
Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U)
and Allied World Assurance Company Holdings, Ltd (“Allied World”)
announce that they have, through their subsidiaries, entered into
an agreement with Cornell Capital and Hudson Structured Capital
Management Ltd., doing its reinsurance business as HSCM Bermuda, to
sell their majority interests in Vault Insurance. Fairfax through
Allied World will continue to own a 10% stake in Vault following
the sale. Scott Carmilani intends to continue to have an ownership
interest in Vault and play a leadership role in Vault. The
transaction is subject to customary closing conditions, including
various regulatory approvals, and is expected to close by the end
of the first quarter of 2021.
Founded in 2017 and based in St. Petersburg,
Florida, Vault is a combination of a policyholder-owned reciprocal
insurance exchange and a surplus lines company focused on serving
the needs of the high net worth market. As the former CEO of Allied
World, Scott Carmilani was instrumental in creating and growing
Vault, and he is excited to pivot from his role with Fairfax to the
Chairman of the Board and a continued owner of Vault.
“We are very pleased to complete this
transaction with Cornell Capital and HSCM Bermuda,” said Prem
Watsa, Chairman and CEO of Fairfax. “We are also very grateful to
Scott for all of his contributions to the Fairfax Insurance Group,
especially at Allied World, a company which he led from being a
start-up to becoming an industry leading and highly successful
worldwide insurance and reinsurance business. We wish Scott all the
very best.”
About Fairfax
Fairfax is a holding company which, through its
subsidiaries, is engaged in property and casualty insurance and
reinsurance and the associated investment management.
About Allied World
Allied World, through its subsidiaries, is a
global provider of insurance and reinsurance solutions. We operate
under the brand Allied World and have supported clients, cedents
and trading partners with thoughtful service and meaningful
coverages since 2001. We are a subsidiary of Fairfax, and we
benefit from a worldwide network of affiliated entities that allow
us to think and respond in non-traditional ways. Our capital base
is strong, our solutions anticipate rather than react to changing
trends, and our teams are focused on establishing long-term
relationships that are mutually beneficial.
For further information contact: |
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Fairfax |
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John Varnell, Vice President, Corporate Development |
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at (416) 367-4941 |
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Allied World |
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Rachel Pankratz |
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Vice President, Global Branding |
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Marketing & Communications |
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+44-0207-220-0630 |
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rachel.pankratz@awac.com |
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