Fairfax Financial Holdings Ltd. and Allied World Assurance Co. Holdings Ltd. are selling their majority interests in Vault Insurance to Cornell Capital and Hudson Structured Capital Management Ltd.
Fairfax, through Allied World, will retain a 10% stake in Vault after the transaction. Former Allied World CEO Scott Carmilani intends to retain a Vault stake and serve as chairman of the St. Petersburg, Fla.-based company.
Vault is a combination of a policyholder-owned reciprocal insurance exchange and a surplus lines company that serves the high-net-worth market. Cornell Capital and Hudson Structured Capital Management are founding investors in the company.
The transaction is expected to close by the end of the first quarter of 2021.
TigerRisk Capital Markets & Advisory is advising Cornell Capital, Hudson Structured Capital Management and Vault on the transaction. Debevoise & Plimpton LLP serves as legal adviser to Cornell Capital and Hudson Structured Capital Management.