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FG Financial Group Announces Formation Of Reinsurance Sidecar To Support Growth of Reinsurance Business
ST. PETERSBURG, Fla.--(BUSINESS WIRE)-- FG Financial Group, Inc. (Nasdaq: FGF) (the “Company”), today announced that the Company’s reinsurance subsidiary, FG
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[{"type":"text","content":" ST. PETERSBURG, Fla.--(BUSINESS WIRE)--\nFG Financial Group, Inc. (Nasdaq: FGF) (the “Company”), today announced that the Company’s reinsurance subsidiary, FG Reinsurance Ltd (“FGRe”) has formed a reinsurance sidecar, FG Re Investors I LLC, to provide collateralized capacity to support their growing reinsurance portfolio. FG Financial is a reinsurance and asset management holding company focused on collateralized and loss capped reinsurance and merchant banking that allocates capital in partnership with Fundamental Global®, a private partnership led by Kyle Cerminara and Joe Moglia, as well as other strategic investors.\n\nThe new reinsurance sidecar intends to raise third-party investor capital to fund its business activities. Castle Placement, LLC has been engaged by FG Re Investors I LLC as the exclusive placement agent for the capital raise.\n\nFG Financial Group CEO Larry Swets commented, “The reinsurance market is the strongest we have seen in many decades, presenting compelling opportunities to write attractive contracts. Since launching our reinsurance business we have grown the number of insurers and reinsurers that we support and remain focused on continuing to drive profitable growth. The creation of a reinsurance sidecar provides us with another means of leveraging our underwriting capabilities to execute our strategy of deploying capital in compelling, and frequently unique asymmetrical risk reward opportunities.”\n\nFG Financial Group Chairman and Fundamental Global CEO Kyle Cerminara commented, “This structure enables us to source a new revenue stream from the fee income that we will earn utilizing our existing reinsurance platform. We remain focused on patiently allocating capital to drive long-term shareholder value.”\n\nFG Financial Group, Inc.\n\nFG Financial Group, Inc. is a reinsurance and asset management holding company focused on collateralized and loss capped reinsurance and merchant banking that allocates capital in partnership with Fundamental Global®, a private partnership led by Kyle Cerminara and Joe Moglia, as well as other strategic investors. The Company’s principal business operations are conducted through its subsidiaries and affiliates.\n\nCastle Placement, LLC\n\nCastle Placement (member of FINRA/SIPC) is a broker-dealer founded in 2009. Castle Placement raises private equity and debt capita...