Full Year 2024
Highlights:
- Gross premiums written of $4.4 billion; growth of 23.0% from
full year 2023
- Combined ratio of 99.7%
- Operating return on average common equity (“Operating ROAE”)
Operating ROAE of 5.6%
- Net income of $113.3 million, or $0.98 per diluted common
share and operating net income of $137.0 million, or $1.18 per
diluted common share
- Book value per diluted common share was $21.79 at December
31, 2024, an increase of 5.3% from December 31, 2023, of
$20.69
- Total capital returned to common shareholders was $151.7
million for 2024, including common share repurchases of $105.5
million and dividends of $46.2 million
Fourth Quarter 2024
Highlights:
- Gross premiums written of $953.7 million; growth of 21.7%
from the fourth quarter of 2023
- Combined ratio of 128.0%
- Annualized operating return on opening common equity
(“Operating ROE”) of (18.0)% and annualized Operating ROAE of
(18.4)%
- Net loss of $122.2 million, or $(1.09) per diluted common
share, and operating net loss of $117.7 million, or $(1.05) per
diluted common share
Fidelis Insurance Holdings Limited (“Fidelis” or “FIHL” or “the
Group”) (NYSE: FIHL) announced today its financial results for the
fourth quarter ended December 31, 2024.
Dan Burrows, Group Chief Executive Officer of Fidelis Insurance
Group, commented: "In 2024, we executed our underwriting strategy
with 23% gross premium growth across our portfolio. We also
achieved strong investment income and returned $152 million in
capital to common shareholders through dividends and opportunistic
share repurchases.
“As we look ahead, we are well-positioned to drive profitable
growth as we capitalize on our market access, the strength of our
relationships, and strategic capital management, supported by the
strength of our balance sheet. By leveraging our differentiated
expertise and taking a proactive approach to risk management, we
will continue to effectively navigate market challenges, pursue
accretive growth opportunities, and deliver sustainable value for
our shareholders.”
Fourth Quarter 2024 Consolidated
Results
- Net loss for the fourth quarter of 2024 was $122.2 million, or
$(1.09) per diluted common share. Operating net loss was $117.7
million, or $(1.05) per diluted common share.
- Underwriting loss for the fourth quarter of 2024 was $177.6
million and the combined ratio was 128.0%, compared to underwriting
income of $94.4 million and a combined ratio of 81.4% for the
fourth quarter of 2023.
- Catastrophe and large losses for the fourth quarter of 2024
were $133.2 million compared to $100.9 million in the prior year
period.
- Net adverse prior year loss reserve development for the fourth
quarter of 2024 was $270.3 million compared to $15.1 million of net
favorable development in the prior year period.
- Net investment income for the fourth quarter of 2024 was $51.4
million compared to $38.7 million in the prior year period.
Purchased $778.7 million of fixed income securities at an average
yield of 4.8%.
- Operating ROE of (4.5)%, or (18.0)% annualized, in the quarter
compared to 6.3%, or 25.2% annualized in the prior year
period.
- Operating ROAE of (4.6)%, or (18.4)% annualized, in the quarter
compared to 5.9%, or 23.6% annualized in the prior year
period.
Full Year 2024 Consolidated
Results
- Net income for the year ended December 31, 2024, was $113.3
million, or $0.98 per diluted common share. Operating net income
was $137.0 million, or $1.18 per diluted common share.
- Underwriting income for the year ended December 31, 2024, was
$8.3 million and the combined ratio was 99.7%, compared to
underwriting income of $327.3 million and a combined ratio of 82.1%
for the year ended December 31, 2023.
- Catastrophe and large losses for the year ended December 31,
2024, were $509.0 million compared to $288.2 million in the prior
year.
- Net adverse prior year loss reserve development of $124.6
million compared to net favorable development of $62.9 million in
the prior year.
- Net investment income of $190.5 million compared to $119.5
million in the prior year. Purchased $2.3 billion of fixed income
securities at an average yield of 4.9%. At December 31, 2024, the
book yield of the fixed income portfolio was 4.9%.
- Operating ROE of 5.6% in the year ended December 31, 2024,
compared to 22.2% in the prior year.
- Operating ROAE of 5.6% in the year ended December 31, 2024,
compared to 18.8% in the prior year.
- Book value per diluted common share was $21.79 at December 31,
2024 (dilutive shares at December 31, 2024 of 640,267), compared to
$20.69 at December 31, 2023.
The following table details key financial indicators in
evaluating our performance for the three and twelve months ended
December 31, 2024 and 2023:
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
($ in millions, except for per
share data)
Net income/(loss)
$
(122.2
)
$
228.3
$
113.3
$
2,132.5
Operating net income/(loss)(1)
(117.7
)
135.4
137.0
398.9
Gross premiums written
953.7
783.9
4,403.1
3,579.0
Net premiums earned
634.5
507.8
2,258.1
1,832.6
Catastrophe and large losses
133.2
100.9
509.0
288.2
Net favorable/(adverse) prior year reserve
development
(270.3
)
15.1
(124.6
)
62.9
Net investment income
$
51.4
$
38.7
$
190.5
$
119.5
Combined ratio
128.0
%
81.4
%
99.7
%
82.1
%
Operating ROE(1)
(4.5
%)
6.3
%
5.6
%
22.2
%
Operating ROAE(1)
(4.6
%)
5.9
%
5.6
%
18.8
%
Earnings/(loss) per diluted common
share
$
(1.09
)
$
1.93
$
0.98
$
18.65
Operating EPS(1)
$
(1.05
)
$
1.15
$
1.18
$
3.49
________________
(1) Operating net income, Operating ROE,
Operating ROAE and Operating EPS are non-GAAP financial measures.
See definition and reconciliation in “Non-GAAP Financial
Measures.”
Segment Results
Insurance Segment
The following table is a summary of our Insurance segment’s
underwriting results:
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
Change
2024
2023
Change
($ in millions)
Gross premiums written
$
921.9
$
776.0
$
145.9
$
3,538.5
$
2,960.4
$
578.1
Reinsurance premium ceded
(396.9
)
(242.8
)
(154.1
)
(1,488.1
)
(1,079.9
)
(408.2
)
Net premiums written
525.0
533.2
(8.2
)
2,050.4
1,880.5
169.9
Net premiums earned
542.9
430.2
112.7
1,902.4
1,577.0
325.4
Losses and loss adjustment expenses
(480.1
)
(186.2
)
(293.9
)
(1,101.5
)
(675.1
)
(426.4
)
Policy acquisition expenses
(190.5
)
(97.5
)
(93.0
)
(604.6
)
(429.1
)
(175.5
)
Underwriting income/(loss)
$
(127.7
)
$
146.5
$
(274.2
)
$
196.3
$
472.8
$
(276.5
)
Loss ratio
88.4
%
43.3
%
45.1 pts
57.9
%
42.8
%
15.1 pts
Policy acquisition expense ratio
35.1
%
22.7
%
12.4 pts
31.8
%
27.2
%
4.6 pts
Underwriting ratio
123.5
%
66.0
%
57.5 pts
89.7
%
70.0
%
19.7 pts
For the three months ended December 31, 2024, our GPW increased
primarily driven by growth from new business in our Asset Backed
Finance & Portfolio Credit and Marine lines of business.
For the twelve months ended December 31, 2024, our GPW increased
primarily driven by growth from new business and improved rates in
our Property, Marine, Asset Backed Finance & Portfolio Credit
and Other Insurance lines of business, partially offset by a
decrease in our Aviation and Aerospace line of business where
certain deals did not meet our underwriting criteria and rating
hurdles.
For the three and twelve months ended December 31, 2024, our NPE
increased driven by earnings from higher net premiums written in
the current and prior year periods.
Our policy acquisition expense ratio for the three and twelve
months ended December 31, 2024, increased due to higher variable
commissions in certain lines of business and changes in the mix of
business written and ceded.
The following table is a summary of our Insurance segment’s
losses and loss adjustment expenses:
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
Change
2024
2023
Change
($ in millions)
Attritional losses
$
116.1
$
92.3
$
23.8
$
476.7
$
415.3
$
61.4
Catastrophe and large losses
82.7
92.4
(9.7
)
440.2
254.2
186.0
Adverse prior year development
281.3
1.5
279.8
184.6
5.6
179.0
Losses and loss adjustment expenses
$
480.1
$
186.2
$
293.9
$
1,101.5
$
675.1
$
426.4
Loss ratio - attritional losses
21.4
%
21.5
%
(0.1) pts
25.1
%
26.3
%
(1.2) pts
Loss ratio - catastrophe and large
losses
15.2
%
21.5
%
(6.3) pts
23.1
%
16.1
%
7.0 pts
Loss ratio - prior accident years
51.8
%
0.3
%
51.5 pts
9.7
%
0.4
%
9.3 pts
Loss ratio
88.4
%
43.3
%
45.1 pts
57.9
%
42.8
%
15.1 pts
For the three and twelve months ended December 31, 2024, our
loss ratio in the Insurance segment increased by 45.1 points and
15.1 points, respectively, compared to the prior year periods.
The attritional loss ratio in the three and twelve months ended
December 31, 2024, improved by 0.1 points and 1.2 points,
respectively, compared to the prior year periods due to a lower
level of small losses in the current year periods.
The catastrophe and large losses for the three months ended
December 31, 2024, were primarily attributable to Hurricanes Milton
and Helene in our Property and Marine lines of business and a
single loss event in our Property line of business. This compared
to the prior period catastrophe and large losses primarily related
to losses in connection with the Viasat-3 satellite deployment
failure, the Sudan Conflict and other loss events in our Property
line of business.
The catastrophe and large losses in the twelve months ended
December 31, 2024, related to intellectual property losses in our
Asset Backed Finance & Portfolio Credit line of business,
losses from the Baltimore Bridge collapse in our Marine line of
business, Hurricanes Milton and Helene, and severe convective
storms in our Property and Marine lines of business, together with
other smaller losses in various lines of business. This compared to
prior year period catastrophe and large losses primarily related to
the Sudan Conflict, losses in connection with the Viasat-3
satellite deployment failure, losses from severe convective storms
in the U.S., two intellectual property losses, and other loss
events in various lines of business including Property, Energy, and
Marine.
The adverse prior year development for the three and twelve
months ended December 31, 2024, was driven primarily by an increase
in our Aviation and Aerospace line of business related to the
Ukraine Conflict. This increase relates in large part to an
allowance made for ongoing settlement discussions in relation to
the related litigation as well as an increase to reserves in order
to reflect recent developments and new information received.
The adverse prior year development for the twelve months ended
December 31, 2024, was partially offset by better than expected
loss emergence in our Property, Other Insurance and Marine lines of
business.
Reinsurance Segment
The following table is a summary of our Reinsurance segment’s
underwriting results:
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
Change
2024
2023
Change
($ in millions)
Gross premiums written
$
31.8
$
7.9
$
23.9
$
864.6
$
618.6
$
246.0
Reinsurance premium ceded
(78.1
)
8.1
(86.2
)
(520.4
)
(362.5
)
(157.9
)
Net premiums written
(46.3
)
16.0
(62.3
)
344.2
256.1
88.1
Net premiums earned
91.6
77.6
14.0
355.7
255.6
100.1
Losses and loss adjustment expenses
(32.9
)
(3.0
)
(29.9
)
(54.3
)
(23.7
)
(30.6
)
Policy acquisition expenses
(22.9
)
(23.1
)
0.2
(84.0
)
(69.4
)
(14.6
)
Underwriting income
$
35.8
$
51.5
$
(15.7
)
$
217.4
$
162.5
$
54.9
Loss ratio
35.9
%
3.9
%
32.0 pts
15.3
%
9.3
%
6.0 pts
Policy acquisition expense ratio
25.0
%
29.8
%
(4.8) pts
23.6
%
27.2
%
(3.6) pts
Underwriting ratio
60.9
%
33.7
%
27.2 pts
38.9
%
36.5
%
2.4 pts
For the three and twelve months ended December 31, 2024, GPW
increased driven by new business as well as rate increases, while
NPE increased driven by earnings from higher net premiums written
in the current year periods.
Our policy acquisition expense ratio for the three and twelve
months ended December 31, 2024 decreased primarily due to change in
business mix, retention levels and the impact of commissions on
outwards reinsurance.
The following table is a summary of our Reinsurance segment’s
losses and loss adjustment expenses:
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
Change
2024
2023
Change
($ in millions)
Attritional losses
$
(6.6
)
$
11.1
$
(17.7
)
$
45.5
$
58.2
$
(12.7
)
Catastrophe and large losses
50.5
8.5
42.0
68.8
34.0
34.8
Favorable prior year development
(11.0
)
(16.6
)
5.6
(60.0
)
(68.5
)
8.5
Losses and loss adjustment expenses
$
32.9
$
3.0
$
29.9
$
54.3
$
23.7
$
30.6
Loss ratio - attritional losses
(7.2
)%
14.3
%
(21.5) pts
12.9
%
22.8
%
(9.9) pts
Loss ratio - catastrophe and large
losses
55.1
%
11.0
%
44.1 pts
19.3
%
13.3
%
6.0 pts
Loss ratio - prior accident years
(12.0
)%
(21.4
)%
9.4 pts
(16.9
)%
(26.8
)%
9.9 pts
Loss ratio
35.9
%
3.9
%
32.0 pts
15.3
%
9.3
%
6.0 pts
For the three and twelve months ended December 31, 2024, our
loss ratio in the Reinsurance segment increased by 32.0 points and
6.0 points, respectively, compared to the prior year periods.
The attritional loss ratio in the three and twelve months ended
December 31, 2024, improved by 21.5 points and 9.9 points,
respectively, compared to the prior year periods both of which were
benign in terms of attritional losses. In the three months ended
December 31, 2024, the storms in Alberta, Canada, developed during
the quarter and have been reallocated to large losses as they have
exceeded our large loss threshold.
The catastrophe and large losses for the three and twelve months
ended December 31, 2024, were primarily attributable to Hurricanes
Helene and Milton and from storms in Alberta, Canada.
The catastrophe and large losses in the three months ended
December 31, 2023, related to severe convective storms in the U.S.
in our Property Reinsurance line of business. The catastrophe and
large losses in the twelve months ended December 31, 2023, related
to the Hawaii wildfires, severe convective storms in the U.S., and
Cyclone Gabrielle in New Zealand.
For the three and twelve months ended December 31, 2024,
favorable prior year development was driven by positive development
on catastrophe losses and benign prior year attritional
experience.
Other Underwriting Expenses
We do not allocate The Fidelis Partnership commissions or
general and administrative expenses by segment.
The Fidelis Partnership Commissions
The Fidelis Partnership manages origination, underwriting,
underwriting administration, outwards reinsurance and claims
handling under delegated authority agreements with the Group. For
the three and twelve months ended December 31, 2024, The Fidelis
Partnership commissions were $62.1 million and $311.1 million,
respectively, or 9.8% and 13.8% of the combined ratio,
respectively, (2023: $77.9 million and $225.3 million or 15.3% and
12.3% of the combined ratio) and comprise ceding and profit
commissions as part of the Framework Agreement effective from
January 1, 2023. The increase in the ceding commission expense was
due to the full impact of earning such commissions since January 1,
2023, together with the increase in net premiums earned. Due to the
operating profit not achieving the required hurdle rate of return,
as outlined in the Framework Agreement, there were no profit
commissions for the twelve months ended December 31, 2024.
The following table summarizes The Fidelis Partnership
commissions earned:
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
($ in millions)
Ceding commission expense
$
85.8
$
58.8
$
311.1
$
166.2
Profit commission expense
(23.7
)
19.1
—
59.1
Total commissions
$
62.1
$
77.9
$
311.1
$
225.3
Ceding commission expense ratio
13.5
%
11.5
%
13.8
%
9.1
%
Profit commission expense ratio
(3.7
)%
3.8
%
—
%
3.2
%
Total Fidelis Partnership commissions
ratio
9.8
%
15.3
%
13.8
%
12.3
%
General and Administrative Expenses
For the three and twelve months ended December 31, 2024, general
and administrative expenses were $23.6 million and $94.3 million,
respectively, or 3.7% and 4.2% of the combined ratio, respectively
(2023: $25.7 million and $82.7 million or 5.1% and 4.5% of the
combined ratio). For the three months ended December 31, 2024, the
general and administrative expense decrease was driven primarily by
lower annual incentive plan compensation expense accruals. For the
twelve months ended December 31, 2024, the increase was driven
primarily by increased costs to support the growth of the business
and the transition to a publicly traded company in 2023.
Investments
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
($ in millions)
Net investment income
$
51.4
$
38.7
$
190.5
$
119.5
Net realized and unrealized investment
gains/(losses)
(12.1
)
7.3
(28.6
)
4.9
Net investment return
$
39.3
$
46.0
$
161.9
$
124.4
Net Investment Income
The increase in our net investment income in the three and
twelve months ended December 31, 2024, was due to the increase in
investible assets and a higher yield achieved on the fixed income
portfolio and cash balances. During the three and twelve months
ended December 31, 2024, we purchased $778.7 million and $2.3
billion, respectively, of fixed maturity securities at an average
yield of 4.8% and 4.9%, respectively.
Net Realized and Unrealized Investment Gains/(Losses)
The net realized and unrealized investment losses in the three
months ended December 31, 2024, resulted primarily from realized
losses on the sale of $600.4 million of fixed maturity securities
with an average yield of 4.2% and from an increase in the provision
for expected credit losses. The net realized and unrealized
investment losses in the twelve months ended December 31, 2024,
resulted primarily from realized losses on the sale of $1.2 billion
of fixed maturity securities with an average yield of 2.6%, the
proceeds of which were reinvested at higher yielding fixed maturity
securities.
Conference Call
Fidelis will host a teleconference to discuss its financial
results on Wednesday, February 26, 2025, at 9:00 a.m. Eastern time.
The call can be accessed by dialing 1-800-549-8228 (U.S. callers),
or 1-289-819-1520 (international callers), and entering the
passcode 78502 approximately 10 minutes in advance of the call. A
live, listen-only webcast of the call will also be available via
the Investors section of the Company’s website at
https://investors.fidelisinsurance.com. A recording of the webcast
will be available in the Investor Relations section of the
Company’s website approximately two hours after the event concludes
and will be archived on the site for one year.
About Fidelis Insurance Group
Fidelis Insurance Group is a global specialty insurer,
leveraging strategic partnerships to offer innovative and tailored
insurance solutions.
We have a highly diversified portfolio that we believe allows us
to take advantage of the opportunities presented by evolving
(re)insurance markets, proactively shift our business mix across
market cycles, and produce superior underwriting returns.
Headquartered in Bermuda, with offices in Ireland and the United
Kingdom, Fidelis Insurance Group operating companies have an
insurer financial strength rating of A from AM Best, A- from
S&P and A3 from Moody’s. For additional information about
Fidelis Insurance, our people, and our products please visit our
website at www.FidelisInsurance.com.
Non-GAAP Financial Measures
This Press Release includes, and the related conference call
will include, certain financial measures that are not calculated in
accordance with generally accepted accounting principles in the
U.S. (“U.S. GAAP”) including Operating net income, Operating EPS,
Operating ROE and Operating ROAE, attritional loss ratio and
catastrophe and large loss ratio, and therefore are non-GAAP
financial measures. Reconciliations of such measures to the most
comparable U.S. GAAP figures are included in the attached financial
information in accordance with Regulation G.
RPI Measure
This press release, posts on our website and LinkedIn and the
related discussion and analysis relating to our financial results
for the three and twelve months ended December 31, 2024, may
contain a reference to the “RPI Measure”. Renewal price index
(“RPI”) is a measure that Fidelis has used to assess an approximate
index of rate increases on a particular set of contracts, using the
base of 100% for the rates for the relevant prior year. Although
management considers RPI to be an appropriate statistical measure,
it is not a financial measure that directly relates to the Fidelis
consolidated financial results. Management’s calculation of RPI
involves a degree of judgment in relation to comparability of
contracts and the relative impacts of changes in price, exposure,
retention levels, as well as any other changing terms and
conditions on the RPI calculation. Consideration is given to
potential renewals of a comparable nature so it does not reflect
every contract in Fidelis’ portfolio. The future profitability and
performance of a portfolio of contracts expressed within the RPI is
dependent upon many factors besides the trends in premium rates,
including policy terms, conditions and wording.
Safe Harbor Regarding Forward-Looking Statements
This press release, posts on our website and LinkedIn and the
related discussion and analysis relating to our financial results
for the three and twelve months ended December 31, 2024, contain,
and our officers and representatives may from time to time make
(including on our related earnings conference call),
“forward-looking statements” which include all statements that do
not relate solely to historical or current facts and which may
concern our strategy, plans, targets, projections or intentions and
are made pursuant to the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: “continue,” “grow,”
“opportunity,” “create,” “anticipate,” “intend,” “plan,” “goal,”
“seek,” “believe,” “project,” “estimate,” “target,” “expect,”
“evolve,” “achieve,” “remain,” “proactive,” “pursue,” “optimize,”
“emerge,” “seek,” “build,” “looking ahead,” “commit,” “strategy,”
“predict,” “potential,” “assumption,” “future,” “likely,” “may,”
“should,” “could,” “will” and the negative of these and also
similar terms and phrases. Forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they are qualified by these cautionary statements, because they are
based only on our current beliefs, expectations and assumptions
regarding the future of our business, future plans and strategies,
targets, projections, anticipated events and trends, the economy
and other future conditions, but are subject to significant
business, economic, legal and competitive uncertainties, many of
which are beyond our control or are subject to change. Our actual
results and financial condition may differ materially from those
indicated in the forward-looking statements. Therefore, you should
not rely on any of these forward-looking statements.
Examples of forward-looking statements include, among others,
statements we make in relation to: targeted operating results such
as return on equity, net earnings and net earnings per share,
underwriting profitability and target combined, loss and expense
ratios, growth in gross premiums written and book value; our
expectations regarding current settlement discussions, court cases
and current settlement and litigation strategies; our expectations
regarding our business and capital management strategy and the
performance of our business; information regarding our estimates
for catastrophes, claims and other loss events; our liquidity and
capital resources; and expectations of the effect on our results of
operations and financial condition of our loss claims, litigation,
climate change impacts, contingent liabilities and governmental and
regulatory investigations and proceedings.
Our actual results in the future could differ materially from
those anticipated in any forward-looking statements as a result of
changes in assumptions, risks, uncertainties and other factors
impacting us, many of which are outside our control, including:
- our ability to manage risks associated with macroeconomic
conditions including any escalation of the Russia Ukraine Conflict
or those in the Middle East, or related sanctions and other
geopolitical events globally;
- the recent trend of premium rate hardening and factors likely
to drive continued rate hardening or a softening leading to a
cyclical downturn of pricing in the (re)insurance industry;
- the impact of inflation (including social inflation) or
deflation in relevant economies in which we operate;
- our ability to evaluate and measure our business, prospects and
performance metrics and respond accordingly;
- the failure of our risk management policies and procedures to
be adequate to identify, monitor and manage risks, which may leave
us exposed to unidentified or unanticipated risks;
- any litigation to which we are party being resolved unfavorably
to our prior expectations, whether through court decisions or
otherwise through effecting settlements (where such settlements are
capable of being achieved), based on emerging information, the
actions of other parties or any other failure to resolve such
litigation favorably;
- the inherent unpredictability of litigation and any related
settlement negotiations which may or may not lead to an agreed
settlement of particular matters;
- the outcomes of probabilistic models which are based on
historical assumptions and which can differ from actual results or
other emerging information as compared to such assumptions;
- the less developed data and parameter inputs for industry
catastrophe models for perils such as wildfires and flood;
- the effect of climate change on our business, including the
trend towards increasingly frequent and severe catastrophic
events;
- the possibility of greater frequency or severity of claims and
loss activity than our underwriting, reserving or investment
practices have anticipated;
- the development and pattern of earned and written premiums
impacting embedded premium value;
- the reliability of pricing, accumulation and estimated loss
models;
- the impact of complex causation and coverage issues associated
with attribution of losses;
- the actual development of losses and expenses impacting
estimates for claims which arose as a result of loss activity,
particularly for events where estimates are preliminary until the
development of such reserves based on emerging information over
time;
- our ability to successfully implement our long-term strategy
and compete successfully with more established competitors and
increased competition relating to consolidation in the reinsurance
and insurance industries;
- any downgrades, potential downgrades or other negative actions
by rating agencies relating to us or our industry;
- changes to our strategic relationship with The Fidelis
Partnership and our dependence on the Delegated Underwriting
Authority Agreements for our underwriting and claims-handling
operations;
- our dependence on key executives and ability to attract
qualified personnel;
- our dependence on letter of credit facilities that may not be
available on commercially acceptable terms;
- our potential inability to pay dividends or distributions in
accordance with our current dividend policy, due to changing
conditions;
- availability of outwards reinsurance on commercially acceptable
terms;
- the recovery of losses and reinstatement premiums from our
reinsurance providers;
- our potential need for additional capital in the future and the
potential unavailability of such capital to us on favorable terms
or at all;
- our dependence on clients’ evaluation of risks associated with
such clients’ insurance underwriting;
- the suspension or revocation of our subsidiaries’ insurance
licenses;
- our potentially being subject to certain adverse tax or
regulatory consequences in the U.S., U.K. or Bermuda;
- risks associated with our investment strategy such as market
risk, interest rate risk, currency risk and credit default
risk;
- the impact of tax reform and changes in the regulatory
environment and the potential for greater regulatory scrutiny of
the Group as a result of the outsourcing arrangements;
- heightened risk of cybersecurity incidents and their potential
impact on our business;
- operational failures, including the operational risk associated
with outsourcing to The Fidelis Partnership, failure of information
systems or failure to protect the confidentiality of customer
information, including by service providers, or losses due to
defaults, errors or omissions by third parties and affiliates;
- risks relating to our ability to identify and execute
opportunities for growth or our ability to complete transactions as
planned or realize the anticipated benefits of our acquisitions or
other investments; and
- those risks, uncertainties and other factors disclosed under
the section titled ‘Risk Factors’ in Fidelis Insurance Holdings
Limited’s Annual Report on Form 20-F filed with the SEC on March
15, 2024 (which such section is incorporated herein by reference)
(the “2023 Annual Report”), its Form 6-K filed with the SEC on
February 19, 2025, as well as subsequent Annual and Current Report
filings with the SEC available electronically at www.sec.gov.
The foregoing factors should not be construed as exhaustive and
should be read together with the other cautionary statements
included in filings with the SEC. All forward-looking statements
included herein are expressly qualified in their entirety by the
cautionary statements contained or referred to therein. Any
forward-looking statements, expectations, beliefs and projections
made by us in this release and on our related conference call speak
only as of the date referenced on such date on which they are made
and are expressed in good faith and our management believes that
there is reasonable basis for them, based only on information
currently available to us. There can be no assurance that
management’s expectations, beliefs, and projections will be
achieved and actual results may vary materially from what is
expressed or indicated by the forward-looking statements.
Furthermore, our past performance, and that of our management team
and of The Fidelis Partnership, should not be construed as a
guarantee of future performance. Except to the extent required by
applicable laws and regulations, we undertake no obligation to
publicly update any forward-looking statement, whether written or
oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise. In light of
these risks and uncertainties, you should keep in mind that any
event described in a forward-looking statement might not occur.
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Balance
Sheets
At December 31, 2024
(Unaudited) and December 31, 2023
(Expressed in millions of U.S.
dollars, except share and per share amounts)
December 31,
2024
December 31, 2023
Assets
Fixed maturity securities,
available-for-sale, at fair value
(amortized cost: $3,403.8, 2023: $3,271.4
(net of allowance for credit losses of $5.9, 2023: $1.3))
$
3,411.6
$
3,244.9
Short-term investments,
available-for-sale, at fair value
(amortized cost: $221.9, 2023: $49.0 (net
of allowance for credit losses of $nil, 2023: $nil))
222.1
49.0
Other investments, at fair value
(amortized cost: $200.1, 2023: $50.8)
201.0
47.5
Total investments
3,834.7
3,341.4
Cash and cash equivalents
743.0
712.4
Restricted cash and cash equivalents
203.6
251.7
Accrued investment income
35.3
27.2
Premiums and other receivables (net of
allowance for credit losses of $11.8, 2023: $17.3)
2,729.4
2,209.3
Amounts due from The Fidelis Partnership
(net of allowance for credit losses of $nil, 2023: $nil)
208.9
173.3
Deferred reinsurance premiums
1,422.2
1,061.4
Reinsurance balances recoverable on paid
losses (net of allowance for credit losses of $0.2, 2023: $nil)
278.4
182.7
Reinsurance balances recoverable on
reserves for losses and loss adjustment expenses
(net of allowance for credit losses of
$0.8, 2023: $1.3)
1,255.6
1,108.6
Deferred policy acquisition costs
(includes The Fidelis Partnership deferred
commissions of $200.2, 2023: $164.1)
877.9
786.6
Other assets
176.9
173.5
Total assets
$
11,765.9
$
10,028.1
Liabilities and shareholders'
equity
Liabilities
Reserves for losses and loss adjustment
expenses
$
3,134.3
$
2,448.9
Unearned premiums
3,651.5
3,149.5
Reinsurance balances payable
1,540.6
1,071.5
Amounts due to The Fidelis Partnership
385.8
334.5
Long term debt
448.9
448.2
Preference securities ($0.01 par,
redemption price and liquidation preference $10,000)
58.4
58.4
Other liabilities
98.0
67.3
Total liabilities
9,317.5
7,578.3
Commitments and contingencies
Shareholders' equity
Common shares ($0.01 par, issued and
outstanding: 111,730,209, 2023: 117,914,754)
1.2
1.2
Additional paid-in capital
2,044.6
2,039.0
Accumulated other comprehensive
income/(loss)
4.5
(27.0
)
Retained earnings
503.6
436.6
Common shares held in treasury, at cost
(shares held: 6,570,003, 2023: nil)
(105.5
)
—
Total shareholders' equity
2,448.4
2,449.8
Total liabilities and shareholders'
equity
$
11,765.9
$
10,028.1
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Statements of
Income and Comprehensive Income (Unaudited)
For the three and twelve
months ended December 31, 2024 and December 31, 2023
(Expressed in millions of U.S.
dollars, except for share and per share amounts)
Three Months Ended
Twelve Months Ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenues
Gross premiums written
$
953.7
$
783.9
$
4,403.1
$
3,579.0
Reinsurance premiums ceded
(475.0
)
(234.7
)
(2,008.5
)
(1,442.4
)
Net premiums written
478.7
549.2
2,394.6
2,136.6
Change in net unearned premiums
155.8
(41.4
)
(136.5
)
(304.0
)
Net premiums earned
634.5
507.8
2,258.1
1,832.6
Net investment income
51.4
38.7
190.5
119.5
Net realized and unrealized investment
gains/(losses)
(12.1
)
7.3
(28.6
)
4.9
Other income/(loss)
—
(0.1
)
—
0.1
Total revenues before net gain on
distribution of The Fidelis Partnership
673.8
553.7
2,420.0
1,957.1
Net gain on distribution of The Fidelis
Partnership
—
—
—
1,639.1
Total revenues
673.8
553.7
2,420.0
3,596.2
Expenses
Losses and loss adjustment expenses
513.0
189.2
1,155.8
698.8
Policy acquisition expenses (includes The
Fidelis Partnership commissions of $62.1 and $311.1 (2023: $77.9
and $225.3))
275.5
198.5
999.7
723.8
General and administrative expenses
23.6
25.7
94.3
82.7
Corporate and other expenses
—
0.7
1.6
4.1
Net foreign exchange (gains)/losses
(6.5
)
4.9
(1.6
)
4.1
Financing costs
7.7
8.9
33.8
35.5
Total expenses
813.3
427.9
2,283.6
1,549.0
Income/(loss) before income
taxes
(139.5
)
125.8
136.4
2,047.2
Income tax (expense)/benefit
17.3
102.5
(23.1
)
85.3
Net income/(loss)
$
(122.2
)
$
228.3
$
113.3
$
2,132.5
Other comprehensive
income/(loss)
Unrealized gains/(losses) on
available-for-sale investments
$
(60.8
)
$
66.8
$
9.6
$
81.7
Reclassification of net realized losses
recognized in net income
5.2
0.1
24.7
0.7
Income tax (expense)/benefit, all of which
relates to unrealized gains/(losses) on available-for-sale
investments
4.0
(8.3
)
(2.8
)
(9.7
)
Total other comprehensive
income/(loss)
(51.6
)
58.6
31.5
72.7
Comprehensive income/(loss)
$
(173.8
)
$
286.9
$
144.8
$
2,205.2
Per share data
Earnings/(loss) per common
share
Earnings/(loss) per common share
$
(1.09
)
$
1.94
$
0.98
$
18.65
Earnings/(loss) per diluted common
share
$
(1.09
)
$
1.93
$
0.98
$
18.65
Weighted average common shares
outstanding
111,727,617
117,914,754
115,218,380
114,313,971
Weighted average diluted common shares
outstanding
111,727,617
118,249,860
115,627,181
114,324,683
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Segment Data
(Unaudited)
For the three and twelve
months ended December 31, 2024 and December 31, 2023
(Expressed in millions of U.S.
dollars)
Three Months Ended December
31, 2024
Insurance
Reinsurance
Other
Total
Gross premiums written
$
921.9
$
31.8
$
—
$
953.7
Net premiums written
525.0
(46.3
)
—
478.7
Net premiums earned
542.9
91.6
—
634.5
Losses and loss adjustment expenses
(480.1
)
(32.9
)
—
(513.0
)
Policy acquisition expenses
(190.5
)
(22.9
)
(62.1
)
(275.5
)
General and administrative expenses
—
—
(23.6
)
(23.6
)
Underwriting income/(loss)
(127.7
)
35.8
(177.6
)
Net investment income
51.4
Net realized and unrealized investment
losses
(12.1
)
Corporate and other expenses
—
Net foreign exchange gains
6.5
Financing costs
(7.7
)
Loss before income taxes
(139.5
)
Income tax benefit
17.3
Net loss
$
(122.2
)
Losses and loss adjustment expenses
incurred - current year
(198.8
)
(43.9
)
$
(242.7
)
Losses and loss adjustment expenses
incurred - prior accident years
(281.3
)
11.0
(270.3
)
Losses and loss adjustment expenses
incurred - total
$
(480.1
)
$
(32.9
)
$
(513.0
)
Underwriting Ratios(1)
Loss ratio - current year
36.6
%
47.9
%
38.3
%
Loss ratio - prior accident years
51.8
%
(12.0
%)
42.6
%
Loss ratio - total
88.4
%
35.9
%
80.9
%
Policy acquisition expense ratio
35.1
%
25.0
%
33.6
%
Underwriting ratio
123.5
%
60.9
%
114.5
%
The Fidelis Partnership commissions
ratio
9.8
%
General and administrative expense
ratio
3.7
%
Combined ratio
128.0
%
________________
(1) Underwriting ratios are calculated by
dividing the related expense by net premiums earned.
Three Months Ended December
31, 2023
Insurance
Reinsurance
Other
Total
Gross premiums written
$
776.0
$
7.9
$
—
$
783.9
Net premiums written
533.2
16.0
—
549.2
Net premiums earned
430.2
77.6
—
507.8
Losses and loss adjustment expenses
(186.2
)
(3.0
)
—
(189.2
)
Policy acquisition expenses
(97.5
)
(23.1
)
(77.9
)
(198.5
)
General and administrative expenses
—
—
(25.7
)
(25.7
)
Underwriting income
146.5
51.5
94.4
Net investment income
38.7
Net realized and unrealized investment
gains
7.3
Other loss
(0.1
)
Corporate and other expenses
(0.7
)
Net foreign exchange losses
(4.9
)
Financing costs
(8.9
)
Income before income taxes
125.8
Income tax benefit
102.5
Net income
$
228.3
Losses and loss adjustment expenses
incurred - current year
(184.7
)
(19.6
)
$
(204.3
)
Losses and loss adjustment expenses
incurred - prior accident years
(1.5
)
16.6
15.1
Losses and loss adjustment expenses
incurred - total
$
(186.2
)
$
(3.0
)
$
(189.2
)
Underwriting Ratios(1)
Loss ratio - current year
43.0
%
25.3
%
40.3
%
Loss ratio - prior accident years
0.3
%
(21.4
%)
(3.0
%)
Loss ratio - total
43.3
%
3.9
%
37.3
%
Policy acquisition expense ratio
22.7
%
29.8
%
23.7
%
Underwriting ratio
66.0
%
33.7
%
61.0
%
The Fidelis Partnership commissions
ratio
15.3
%
General and administrative expense
ratio
5.1
%
Combined ratio
81.4
%
________________
(1) Underwriting ratios are
calculated by dividing the related expense by net premiums
earned.
Twelve months ended December
31, 2024
Insurance
Reinsurance
Other
Total
Gross premiums written
$
3,538.5
$
864.6
$
—
$
4,403.1
Net premiums written
2,050.4
344.2
—
2,394.6
Net premiums earned
1,902.4
355.7
—
2,258.1
Losses and loss adjustment expenses
(1,101.5
)
(54.3
)
—
(1,155.8
)
Policy acquisition expenses
(604.6
)
(84.0
)
(311.1
)
(999.7
)
General and administrative expenses
—
—
(94.3
)
(94.3
)
Underwriting income
196.3
217.4
8.3
Net investment income
190.5
Net realized and unrealized investment
losses
(28.6
)
Corporate and other expenses
(1.6
)
Net foreign exchange gains
1.6
Financing costs
(33.8
)
Income before income taxes
136.4
Income tax expense
(23.1
)
Net income
$
113.3
Losses and loss adjustment expenses
incurred - current year
(916.9
)
(114.3
)
$
(1,031.2
)
Losses and loss adjustment expenses
incurred - prior accident years
(184.6
)
60.0
(124.6
)
Losses and loss adjustment expenses
incurred - total
$
(1,101.5
)
$
(54.3
)
$
(1,155.8
)
Underwriting Ratios(1)
Loss ratio - current year
48.2
%
32.2
%
45.7
%
Loss ratio - prior accident years
9.7
%
(16.9
%)
5.5
%
Loss ratio - total
57.9
%
15.3
%
51.2
%
Policy acquisition expenses ratio
31.8
%
23.6
%
30.5
%
Underwriting ratio
89.7
%
38.9
%
81.7
%
The Fidelis Partnership commissions
ratio
13.8
%
General and administrative expenses
ratio
4.2
%
Combined ratio
99.7
%
________________
(1) Underwriting ratios are calculated by
dividing the related expense by net premiums earned.
Twelve months ended December
31, 2023
Insurance
Reinsurance
Other
Total
Gross premiums written
$
2,960.4
$
618.6
$
—
$
3,579.0
Net premiums written
1,880.5
256.1
—
2,136.6
Net premiums earned
1,577.0
255.6
—
1,832.6
Losses and loss adjustment expenses
(675.1
)
(23.7
)
—
(698.8
)
Policy acquisition expenses
(429.1
)
(69.4
)
(225.3
)
(723.8
)
General and administrative expenses
—
—
(82.7
)
(82.7
)
Underwriting income
472.8
162.5
327.3
Net investment income
119.5
Net realized and unrealized investment
gains
4.9
Other income
0.1
Net gain on distribution of The Fidelis
Partnership
1,639.1
Corporate and other expenses
(4.1
)
Net foreign exchange losses
(4.1
)
Financing costs
(35.5
)
Income before income taxes
2,047.2
Income tax benefit
85.3
Net income
$
2,132.5
Losses and loss adjustment expenses
incurred - current year
(669.5
)
(92.2
)
$
(761.7
)
Losses and loss adjustment expenses
incurred - prior accident years
(5.6
)
68.5
62.9
Losses and loss adjustment expenses
incurred - total
$
(675.1
)
$
(23.7
)
$
(698.8
)
Underwriting Ratios(1)
Loss ratio - current year
42.4
%
36.1
%
41.5
%
Loss ratio - prior accident years
0.4
%
(26.8
%)
(3.4
%)
Loss ratio - total
42.8
%
9.3
%
38.1
%
Policy acquisition expenses ratio
27.2
%
27.2
%
27.2
%
Underwriting ratio
70.0
%
36.5
%
65.3
%
The Fidelis Partnership commissions
ratio
12.3
%
General and administrative expenses
ratio
4.5
%
Combined ratio
82.1
%
________________
(1) Underwriting ratios are calculated by
dividing the related expense by net premiums earned.
The table below sets forth gross premiums written by line of
business for the years ended December 31, 2024 and 2023:
2024
2023
GPW
% of total
GPW
% of total
Insurance
Property
$
1,279.6
29
%
$
988.1
28
%
Marine
785.7
18
%
673.4
19
%
Asset Backed Finance & Portfolio
Credit
399.2
9
%
293.3
8
%
Aviation & Aerospace
339.5
8
%
371.8
10
%
Political Risk, Violence & Terror
204.2
4
%
221.7
6
%
Energy
192.5
4
%
172.1
5
%
Cyber
82.9
2
%
69.9
2
%
Other Insurance
254.9
6
%
170.1
4
%
Total Insurance
3,538.5
80
%
2,960.4
82
%
Reinsurance
Property Reinsurance
832.9
19
%
596.8
17
%
Retro & Whole Account
31.7
1
%
21.8
1
%
Total Reinsurance
864.6
20
%
618.6
18
%
Total
$
4,403.1
100
%
$
3,579.0
100
%
FIDELIS INSURANCE HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(UNAUDITED)
Attritional loss ratio and catastrophe and large loss
ratio: the attritional loss ratio is a non-GAAP measure of the
loss ratio excluding the impact of catastrophe and large losses.
Management believes that the attritional loss ratio is a
performance measure that is useful to investors as it excludes
losses that are not as predictable as to timing and amount. The
attritional loss ratio is calculated by dividing the losses and
loss adjustment expenses, excluding catastrophe and large losses
and prior year development, by NPE. The catastrophe and large loss
ratio is a non-GAAP measure that is calculated by dividing the
current year catastrophe and large loss expense by NPE. The
reconciliation of these non-GAAP measures is included in each
segment’s summary of losses and loss adjustment expenses table.
Operating net income: is a non-GAAP financial measure of
our performance which does not consider the impact of certain
non-recurring and other items that may not properly reflect the
ordinary activities of our business, its performance or its future
outlook. This measure is calculated as net income available to
common shareholders excluding net gain on distribution of The
Fidelis Partnership, net realized and unrealized investment
gains/(losses), net foreign exchange gains/(losses), and corporate
and other expenses which include warrant costs, reorganization
expenses, any non-recurring income and expenses, and the income tax
effect on these items.
Return on average common equity (“ROAE”): represents net
income available to common shareholders divided by average common
shareholders’ equity.
Operating return on opening common equity (“Operating
ROE”): is a non-GAAP financial measure that represents a
meaningful comparison between periods of our financial performance
expressed as a percentage and is calculated as operating net income
divided by adjusted opening common shareholders’ equity.
Operating return on average common equity (“Operating
ROAE”): is a non-GAAP financial measure that represents a
meaningful comparison between periods of our financial performance
expressed as a percentage and is calculated as operating net income
divided by adjusted average common shareholders’ equity.
Operating earnings per share (“Operating EPS”): is a
non-GAAP financial measure that represents a valuable measure of
profitability and enables investors, analysts, rating agencies and
other users of Fidelis Insurance Group’s financial information to
more easily analyze Fidelis Insurance Group’s results in a manner
similar to how management analyzes Fidelis Insurance Group’s
underlying business performance. It is calculated by dividing
operating net income by the weighted average diluted common shares
outstanding.
The table below sets out the calculation of the adjusted average
common shareholders’ equity, operating net income, ROAE, Operating
ROE, Operating ROAE and Operating EPS, for the three and twelve
months ended December 31, 2024, and 2023.
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
($ in millions)
Net income/(loss)
$
(122.2
)
$
228.3
$
113.3
$
2,132.5
Adjustment for net gain on distribution of
The Fidelis Partnership
—
—
—
(1,639.1
)
Adjustment for net realized and unrealized
investment (gains)/losses
12.1
(7.3
)
28.6
(4.9
)
Adjustment for net foreign exchange
(gains)/losses
(6.5
)
4.9
(1.6
)
4.1
Adjustment for corporate and other
expenses
—
0.7
1.6
4.1
Income tax effect of the above items
(1.1
)
(91.2
)
(4.9
)
(97.8
)
Operating net income/(loss)
$
(117.7
)
$
135.4
$
137.0
$
398.9
Average common shareholders'
equity
$
2,540.4
$
2,305.0
$
2,449.1
$
2,213.3
Opening common shareholders' equity
2,632.3
2,160.1
2,449.8
1,976.8
Adjustments related to the Separation
Transactions
—
—
—
(178.4
)
Adjusted opening common shareholders’
equity
2,632.3
2,160.1
2,449.8
1,798.4
Closing common shareholders' equity
2,448.4
2,449.8
2,448.4
2,449.8
Adjusted average common shareholders'
equity
$
2,540.4
$
2,305.0
$
2,449.1
$
2,124.1
Weighted average Common Shares
outstanding
111,727,617
117,914,754
115,218,380
114,313,971
Share-based compensation plans
—
335,106
408,801
10,712
Weighted average diluted Common Shares
outstanding
111,727,617
118,249,860
115,627,181
114,324,683
ROAE
(4.8
%)
9.9
%
4.6
%
96.3
%
Operating ROE
(4.5
%)
6.3
%
5.6
%
22.2
%
Operating ROAE
(4.6
%)
5.9
%
5.6
%
18.8
%
Earnings/(loss) per diluted common
share
$
(1.09
)
$
1.93
$
0.98
$
18.65
Operating EPS
$
(1.05
)
$
1.15
$
1.18
$
3.49
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225192603/en/
Fidelis Insurance Group Investor Contact:
Fidelis Insurance Group Miranda Hunter +1 (441) 279 2561
miranda.hunter@fidelisinsurance.com
Fidelis Insurance Group Media Contacts:
Kekst CNC Nick Capuano / Ruth Pachman 917-842-7859 /
917-842-1122 Fidelis@kekstcnc.com
Rein4ce Sarah Hills +44 (0)7718 882011
sarah.hills@rein4ce.co.uk
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