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Fundamental Global Inc. (FG Nexus) has entered an agreement to sell a majority stake of its FG Reinsurance Division (FGRe) to Devondale Holdings LLC, led by renowned industry veteran Tom Heise.
As part of the transaction, FG Nexus will reportedly receive $3.3 million cash, a $1.25 million note, and 40% equity ownership of Devondale.
This strategic transaction intends to position the new entity as a notable player in tokenized reinsurance.
Heise, who will lead the new entity as CEO, will build upon FGRe’s robust portfolio and risk management expertise by leveraging blockchain technology to tokenize reinsurance contracts.
This process is expected to enhance liquidity, transparency, and accessibility for investors.
In addition, FGRe will operate independently under Heise, who brings over 25 years of reinsurance leadership expertise, including previously serving as Chief Executive of FGRe
The closing of the transaction is subject to regulatory approval and the satisfaction of all closing conditions contained in the definitive transaction documentation.
Maja Vujinovic, CEO of Digital Assets at FG Nexus, commented: “This transaction sharpens our focus on Ethereum and reallocates resources toward ETH accumulation. FG Nexus is building long-term ETH per share growth and reinforcing our conviction that Ethereum is the backbone of tomorrow’s financial system.”
Kyle Cerminara, CEO of FG Nexus, said: “We are excited to sell the majority of our FG Reinsurance Division to focus our efforts on further strengthening our ETH treasury strategy, while allowing the talented FGRe team to both chart its own course in growing their reinsurance business while also having access to FG Nexus’ digital asset expertise to execute their planned tokenization strategies.
Adding: “Tom and his team have been instrumental in building the reinsurance division into a profitable business, and we look forward to our continued relationship as minority stakeholders.”
Heise, who will serve as CEO of Devondale, added: “This transaction is a testament to the strength of our team and our ability to grow a profitable reinsurance portfolio. We are well positioned to create secure, efficient, and scalable tokenized solutions that meet the evolving needs of insurers and investors worldwide.”
FG Nexus to sell reinsurance arm to drive tokenized reinsurance growth was published by: www.Artemis.bm
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