Fidelis Insurance has taken an equity stake in a new managing general agent (MGA), Firestone Surety, and will also provide underwriting capacity.

Firestone will focus on the small and medium-sized enterprises (SMEs) within the surety market and will be managed by Fidelis’ MGA platform Pine Walk Capital.

The new MGA will be run by Andy Ray, who brings over 30 years’ experience in the surety industry. Prior to Firestone, Ray had been leading the surety broking division within Kerry London as managing director, since it was formed in 2008.

Fidelis Underwriting CEO Dan Burrows said: “We are delighted to have joined forces with Andy furthering our strategy to sponsor specialist underwriting products. Having someone of Andy’s calibre join our MGA platform is testament to the appeal that Pine Walk represents to talented niche underwriters looking to launch their own agency.”

Ray added: “There is a clear need for new capacity in the SME sector, supporting the bonding needs of main and sub-contractors.”

Earlier this year, Fidelis has announced the launch of its first MGA Radius, which will be led by former Hiscox Re head of specialty Rob Ashton and will focus on niche specialty treaty excess of loss business such as cyber, nuclear and PA retro.