Fairfax and Allied World Announce Sale of Vault Insurance

November 19, 2020

Willkie represented Allied World Assurance Company Holdings, Ltd in connection with the sale, along with Fairfax Financial Holdings, of their majority interest in Vault Insurance to Cornell Capital and Hudson Structured Capital Management.

On November 12, Willkie client Allied World Assurance Company Holdings, Ltd and Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) announced 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, the former CEO of Allied World, intends to continue to have an ownership interest in Vault and play a leadership role in the company. The transaction is expected to close by the end of the first quarter of 2021.

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. Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management. A subsidiary of Fairfax, Allied World, through its subsidiaries, is a global provider of insurance and reinsurance solutions.

The Willkie deal team was led by partners Steven Seidman and Sean Ewen.