Fidelis Insurance Group Reports 2024 Second Quarter Results
Fidelis Insurance Group (NYSE: FIHL) announced its 2024 Q2 results with gross premiums written of $1.2 billion, a 24.7% increase year-over-year. The combined ratio was 92.7%, and net income stood at $53.7 million ($0.46 per diluted share). Operating net income was $63.0 million ($0.54 per share).
For the first half of 2024, gross premiums reached $2.7 billion, growing 22.9% from the first half of 2023. Net income amounted to $134.9 million ($1.14 per share), and operating net income was $150.2 million ($1.27 per share). The combined ratio was 89.3%.
The company repurchased 1,932,418 shares for $33.7 million in Q2 and 2,290,020 shares for $38.7 million in H1. A new share repurchase program of $200 million was approved.
Net investment income for Q2 was $46.0 million, up from $27.3 million in the prior year. Operating ROE for the quarter was 10.0% annualized. The book value per share was $21.71 as of June 30, 2024.
Fidelis Insurance Group (NYSE: FIHL) ha annunciato i suoi risultati del secondo trimestre 2024, con premi lordi sottoscritti pari a 1,2 miliardi di dollari, un incremento del 24,7% rispetto all'anno precedente. Il rapporto combinato è stato del 92,7% e il reddito netto si è attestato a 53,7 milioni di dollari (0,46 dollari per azione diluita).
Per il primo semestre del 2024, i premi lordi hanno raggiunto 2,7 miliardi di dollari, con una crescita del 22,9% rispetto allo stesso periodo del 2023. Il reddito netto ammontava a 134,9 milioni di dollari (1,14 dollari per azione), e il reddito operativo netto era di 150,2 milioni di dollari (1,27 dollari per azione). Il rapporto combinato si è attestato a 89,3%.
L'azienda ha riacquistato 1.932.418 azioni per 33,7 milioni di dollari nel secondo trimestre e 2.290.020 azioni per 38,7 milioni di dollari nel primo semestre. È stato approvato un nuovo programma di riacquisto di azioni da 200 milioni di dollari.
Il reddito netto da investimenti per il secondo trimestre è stato di 46,0 milioni di dollari, in aumento rispetto a 27,3 milioni di dollari dell'anno precedente. Il ROE operativo per il trimestre è stato del 10,0% annualizzato. Il valore contabile per azione era di 21,71 dollari al 30 giugno 2024.
Fidelis Insurance Group (NYSE: FIHL) anunció sus resultados del segundo trimestre de 2024, con primas brutas escritas de 1,2 mil millones de dólares, lo que representa un aumento del 24,7% en comparación con el año anterior. La razón combinada fue del 92,7%, y el ingreso neto fue de 53,7 millones de dólares (0,46 dólares por acción diluida).
En la primera mitad de 2024, las primas brutas alcanzaron 2,7 mil millones de dólares, creciendo un 22,9% respecto a la primera mitad de 2023. El ingreso neto ascendió a 134,9 millones de dólares (1,14 dólares por acción), y el ingreso operativo neto fue de 150,2 millones de dólares (1,27 dólares por acción). La razón combinada fue del 89,3%.
La compañía recompró 1.932.418 acciones por 33,7 millones de dólares en el segundo trimestre y 2.290.020 acciones por 38,7 millones de dólares en la primera mitad. Se aprobó un nuevo programa de recompra de acciones de 200 millones de dólares.
Los ingresos netos por inversiones para el segundo trimestre fueron de 46,0 millones de dólares, en comparación con 27,3 millones de dólares del año anterior. El ROE operativo para el trimestre fue del 10,0% anualizado. El valor contable por acción era de 21,71 dólares a 30 de junio de 2024.
피델리스 보험 그룹 (NYSE: FIHL)는 2024년 2분기 실적을 발표했습니다. 총 보험료 수익은 12억 달러로, 전년 대비 24.7% 증가했습니다. 종합비율은 92.7%였으며, 순이익은 5,370만 달러 (희석 주당 0.46달러)로 집계되었습니다.
2024년 상반기 총 보험료는 27억 달러에 달했으며, 이는 2023년 상반기와 비교하여 22.9% 성장한 수치입니다. 순이익은 1억 3,490만 달러 (주당 1.14달러)에 달했으며, 운영 순이익은 1억 5,020만 달러 (주당 1.27달러)로 집계되었습니다. 종합비율은 89.3%입니다.
회사는 2분기에 1,932,418주를 3,370만 달러에 재매입하였고, 상반기에는 2,290,020주를 3,870만 달러에 재매입했습니다. 2억 달러 규모의 새로운 자사주 매입 프로그램이 승인되었습니다.
2분기 순투자 수익은 4,600만 달러로, 전년의 2,730만 달러에서 증가했습니다. 이번 분기의 운영 자기자본 이익률은 연환산 기준으로 10.0%였습니다. 2024년 6월 30일 기준 주당 장부 가치는 21.71달러였습니다.
Fidelis Insurance Group (NYSE: FIHL) a annoncé ses résultats du deuxième trimestre 2024, avec des primes brutes souscrites s'élevant à 1,2 milliard de dollars, soit une augmentation de 24,7% par rapport à l'année précédente. Le ratio combiné était de 92,7%, et le revenu net s'élevait à 53,7 millions de dollars (0,46 dollar par action diluée).
Pour le premier semestre 2024, les primes brutes ont atteint 2,7 milliards de dollars, en hausse de 22,9% par rapport à la première moitié de 2023. Le revenu net s'élevait à 134,9 millions de dollars (1,14 dollar par action), et le revenu opérationnel net était de 150,2 millions de dollars (1,27 dollar par action). Le ratio combiné était de 89,3%.
L'entreprise a racheté 1.932.418 actions pour 33,7 millions de dollars au cours du deuxième trimestre et 2.290.020 actions pour 38,7 millions de dollars dans la première moitié de l'année. Un nouveau programme de rachat d'actions de 200 millions de dollars a été approuvé.
Le revenu net des investissements pour le deuxième trimestre était de 46,0 millions de dollars, soit une augmentation par rapport à 27,3 millions de dollars l'année précédente. Le ROE opérationnel pour le trimestre a été de 10,0% annualisé. La valeur comptable par action était de 21,71 dollars au 30 juin 2024.
Fidelis Insurance Group (NYSE: FIHL) hat seine Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit Bruttobeiträgen von 1,2 Milliarden Dollar, was einem 24,7%-Anstieg im Vergleich zum Vorjahr entspricht. Die kombinierte Quote lag bei 92,7% und das Nettoergebnis betrug 53,7 Millionen Dollar (0,46 Dollar pro verwässerter Aktie).
In der ersten Hälfte des Jahres 2024 erreichten die Bruttobeiträge 2,7 Milliarden Dollar, was einem Wachstum von 22,9% gegenüber der ersten Hälfte des Jahres 2023 entspricht. Das Nettoergebnis betrug 134,9 Millionen Dollar (1,14 Dollar pro Aktie), und das operative Nettoergebnis lag bei 150,2 Millionen Dollar (1,27 Dollar pro Aktie). Die kombinierte Quote betrug 89,3%.
Das Unternehmen hat im zweiten Quartal 1.932.418 Aktien für 33,7 Millionen Dollar zurückgekauft und im ersten Halbjahr 2.290.020 Aktien für 38,7 Millionen Dollar. Ein neues Aktienrückkaufprogramm im Wert von 200 Millionen Dollar wurde genehmigt.
Das Nettoergebnis aus Investitionen für das zweite Quartal betrug 46,0 Millionen Dollar, ein Anstieg von 27,3 Millionen Dollar im Vorjahr. Die operative Eigenkapitalrendite für das Quartal betrug 10,0% annualisiert. Der Buchwert pro Aktie betrug 21,71 Dollar zum 30. Juni 2024.
- Gross premiums written increased by 24.7% YoY to $1.2 billion in Q2 2024.
- Gross premiums written increased by 22.9% YoY to $2.7 billion in H1 2024.
- Operating net income of $63.0 million in Q2 2024.
- Operating net income of $150.2 million in H1 2024.
- Net investment income rose by 68% YoY to $46.0 million in Q2 2024.
- New $200 million share repurchase program approved.
- Net income decreased by 36% YoY to $53.7 million in Q2 2024.
- Combined ratio increased to 92.7% in Q2 2024 from 82.0% in Q2 2023.
- Catastrophe and large losses rose to $181.2 million in Q2 2024, up from $85.2 million in the prior year.
Insights
Fidelis Insurance's Q2 2024 results show mixed performance. While gross premiums written grew
Positively, net investment income rose
While catastrophe losses increased significantly, there was substantial favorable prior year reserve development of
Overall, Fidelis is growing rapidly but facing some profitability headwinds in a challenging market. Its
Fidelis' results reflect the current state of the insurance market. The
The
Fidelis' focus on short-tail specialty lines positions it well to respond quickly to market changes. The new
While facing some headwinds, Fidelis appears to be navigating the challenging market conditions relatively well compared to peers.
Fidelis' Q2 results provide insights into broader insurance market trends. The strong premium growth in Property and Property D&F lines suggests these remain attractive markets. Conversely, the decrease in Aviation and Aerospace premiums may indicate softening conditions in that sector.
The significant increase in catastrophe losses aligns with industry-wide challenges from severe weather events, particularly in the U.S. This trend is likely to continue impacting insurers' profitability.
Fidelis' investment yield improvement to
The company's ability to grow premiums while maintaining a sub-100% combined ratio demonstrates solid underwriting discipline in a competitive market. Continued execution will be key as Fidelis navigates market cycles and evolving risks.
Second Quarter 2024 Highlights:
-
Gross premiums written of
$1.2 billion 24.7% from the second quarter of 2023 -
Combined ratio of
92.7% -
Annualized operating return on opening common equity (“Operating ROE”) of
10.0% and annualized operating return on average common equity (“Operating ROAE”) of10.0% -
Net income of
$53.7 million $0.46 $63.0 million $0.54 -
Book value per diluted common share was
$21.71 -
Repurchased 1,932,418 shares for
$33.7 million
Half Year 2024 Highlights:
-
Gross premiums written of
$2.7 billion 22.9% from first half of 2023 -
Combined ratio of
89.3% -
Annualized Operating ROE of
12.2% and annualized Operating ROAE of12.0% -
Net income of
$134.9 million $1.14 $150.2 million $1.27 -
Repurchased 2,290,020 shares for
$38.7 million
PEMBROKE,
|
Dan Burrows, Group Chief Executive Officer of Fidelis Insurance Group, commented “As we mark our first anniversary as a public company, we are proud to have built a strong team, who are focused on realizing the value of our business. Our position as a market leader focused on short-tail specialty lines is enabling us to deliver attractive growth and create value for our shareholders.
We are well positioned to quickly respond to market conditions and continue to leverage our lead positioning to capitalize on attractive rates, terms and conditions. In tandem with underwriting, active capital management remains a cornerstone of our strategy and to that end, we are pleased to announce our Board has approved a new share repurchase program of
In what remains one of the best markets we have seen in recent history, I am excited for the opportunities we see ahead.”
|
Second Quarter Consolidated Results |
-
Net income for the second quarter of 2024 was
$53.7 million $0.46 $63.0 million $0.54 -
Underwriting income for the second quarter of 2024 was
$36.7 million 92.7% , compared to underwriting income of$77.5 million 82.0% for the second quarter of 2023. -
Net favorable prior year loss reserve development for the second quarter of 2024 was
$68.6 million $2.4 million -
Catastrophe and large losses for the second quarter of 2024 were
$181.2 million $85.2 million -
Net investment income for the second quarter of 2024 was
$46.0 million $27.3 million $677.7 million 5.2% and had sales of$220.4 million 1.6% . -
Operating ROE of
2.5% , or10.0% annualized, in the quarter compared to4.5% , or18.0% annualized in the prior year period. -
Operating ROAE of
2.5% , or10.0% annualized, in the quarter compared to4.4% , or17.6% annualized in the prior year period. -
Book value per diluted common share was
$21.71
Half Year 2024 Consolidated Results |
-
Net income for the six months ended June 30, 2024 was
$134.9 million $1.14 $150.2 million $1.27 -
Underwriting income for the six months ended June 30, 2024 was
$105.9 million 89.3% , compared to underwriting income of$158.1 million 80.6% for the six months ended June 30, 2023. -
Net favorable prior year loss reserve development of
$135.6 million $4.5 million -
Catastrophe and large losses for the six months ended June 30, 2024 were
$284.2 million $107.4 million -
Net investment income of
$87.0 million $47.7 million $1.1 billion 5.1% and had sales of$429.0 million 1.2% . -
Operating ROE of
6.1% , or12.2% annualized, in the six months ended June 30, 2024 compared to9.6% , or19.2% annualized in the prior year period. -
Operating ROAE of
6.0% , or12.0% annualized, in the six months ended June 30, 2024 compared to9.1% , or18.2% annualized in the prior year period.
The following table details key financial indicators in evaluating our performance for the three and six months ended June 30, 2024 and 2023:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
|
($ in millions, except for per share data) |
||||||||||||||||||||
Net income |
$ |
53.7 |
|
|
$ |
83.9 |
|
|
(36 |
)% |
|
$ |
134.9 |
|
|
$ |
1,816.5 |
|
|
(93 |
)% |
Operating net income(1) |
|
63.0 |
|
|
|
85.3 |
|
|
(26 |
)% |
|
|
150.2 |
|
|
|
172.8 |
|
|
(13 |
)% |
Gross premiums written |
|
1,193.2 |
|
|
|
957.2 |
|
|
25 |
% |
|
|
2,707.5 |
|
|
|
2,202.5 |
|
|
23 |
% |
Net premiums earned |
|
501.1 |
|
|
|
429.1 |
|
|
17 |
% |
|
|
989.1 |
|
|
|
815.1 |
|
|
21 |
% |
Catastrophe and large losses |
|
181.2 |
|
|
|
85.2 |
|
|
113 |
% |
|
|
284.2 |
|
|
|
107.4 |
|
|
165 |
% |
Net favorable prior-year reserve development |
|
68.6 |
|
|
|
2.4 |
|
|
2,758 |
% |
|
|
135.6 |
|
|
|
4.5 |
|
|
2,913 |
% |
Net investment income |
$ |
46.0 |
|
|
$ |
27.3 |
|
|
68 |
% |
|
$ |
87.0 |
|
|
$ |
47.7 |
|
|
82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Combined ratio |
|
92.7 |
% |
|
|
82.0 |
% |
|
10.7 pts |
|
|
89.3 |
% |
|
|
80.6 |
% |
|
8.7 pts |
||
Operating ROE(1) |
|
2.5 |
% |
|
|
4.5 |
% |
|
(2.0) pts |
|
|
6.1 |
% |
|
|
9.6 |
% |
|
(3.5) pts |
||
Operating ROAE(1) |
|
2.5 |
% |
|
|
4.4 |
% |
|
(1.9) pts |
|
|
6.0 |
% |
|
|
9.1 |
% |
|
(3.1) pts |
||
Earnings per diluted common share |
$ |
0.46 |
|
|
$ |
0.76 |
|
|
(39 |
)% |
|
$ |
1.14 |
|
|
$ |
16.39 |
|
|
(93 |
)% |
Operating EPS(1) |
$ |
0.54 |
|
|
$ |
0.77 |
|
|
(30 |
)% |
|
$ |
1.27 |
|
|
$ |
1.56 |
|
|
(19 |
)% |
(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 |
Specialty Segment
The following table is a summary of our Specialty segment’s underwriting results:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||
|
($ in millions) |
||||||||||||||||||||||
Gross premiums written |
$ |
756.5 |
|
|
$ |
657.3 |
|
|
$ |
99.2 |
|
|
$ |
1,790.5 |
|
|
$ |
1,491.4 |
|
|
$ |
299.1 |
|
Reinsurance premium ceded |
|
(331.9 |
) |
|
|
(195.5 |
) |
|
|
(136.4 |
) |
|
|
(738.2 |
) |
|
|
(536.6 |
) |
|
|
(201.6 |
) |
Net premiums written |
|
424.6 |
|
|
|
461.8 |
|
|
|
(37.2 |
) |
|
|
1,052.3 |
|
|
|
954.8 |
|
|
|
97.5 |
|
Net premiums earned |
|
349.2 |
|
|
|
307.2 |
|
|
|
42.0 |
|
|
|
701.4 |
|
|
|
573.4 |
|
|
|
128.0 |
|
Losses and loss adjustment expenses |
|
(189.1 |
) |
|
|
(137.4 |
) |
|
|
(51.7 |
) |
|
|
(363.6 |
) |
|
|
(278.1 |
) |
|
|
(85.5 |
) |
Policy acquisition expenses |
|
(91.2 |
) |
|
|
(77.5 |
) |
|
|
(13.7 |
) |
|
|
(191.0 |
) |
|
|
(143.8 |
) |
|
|
(47.2 |
) |
Underwriting income |
$ |
68.9 |
|
|
$ |
92.3 |
|
|
$ |
(23.4 |
) |
|
$ |
146.8 |
|
|
$ |
151.5 |
|
|
$ |
(4.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio |
|
54.2 |
% |
|
|
44.7 |
% |
|
9.5 pts |
|
|
51.8 |
% |
|
|
48.5 |
% |
|
3.3 pts |
||||
Policy acquisition expense ratio |
|
26.1 |
% |
|
|
25.2 |
% |
|
0.9 pts |
|
|
27.2 |
% |
|
|
25.1 |
% |
|
2.1 pts |
||||
Underwriting ratio |
|
80.3 |
% |
|
|
69.9 |
% |
|
10.4 pts |
|
|
79.0 |
% |
|
|
73.6 |
% |
|
5.4 pts |
||||
For the three months ended June 30, 2024, our GPW increased primarily driven by growth from new business and increased rates in our Property and Property D&F lines of business partially offset by a decrease in our Aviation and Aerospace line of business.
For the six months ended June 30, 2024, our GPW increased primarily driven by growth from new business and improved rates in our Property, Property D&F and Marine lines of business, partially offset by a decrease in our Aviation and Aerospace line of business.
For the three and six months ended June 30, 2024, our NPE increased due to earnings from higher net premiums written in the current and prior year periods.
For the three and six months ended June 30, 2024, our policy acquisition expense ratio increased due to changes in the mix of business written and ceded, and commissions earned from reinsurance partners.
Our underwriting ratio in the Specialty segment increased by 10.4 points and 5.4 points compared to the three and six month prior year periods, respectively, driven primarily by an increase in the loss ratio.
The following table is a summary of our Specialty segment’s losses and loss adjustment expenses:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||
|
($ in millions) |
||||||||||||||||||||||
Attritional losses |
$ |
83.7 |
|
|
$ |
60.4 |
|
|
$ |
23.3 |
|
|
$ |
194.7 |
|
|
$ |
152.2 |
|
|
$ |
42.5 |
|
Catastrophe and large losses |
|
119.5 |
|
|
|
72.1 |
|
|
|
47.4 |
|
|
|
217.4 |
|
|
|
90.5 |
|
|
|
126.9 |
|
(Favorable)/adverse prior year development |
|
(14.1 |
) |
|
|
4.9 |
|
|
|
(19.0 |
) |
|
|
(48.5 |
) |
|
|
35.4 |
|
|
|
(83.9 |
) |
Losses and loss adjustment expenses |
$ |
189.1 |
|
|
$ |
137.4 |
|
|
$ |
51.7 |
|
|
$ |
363.6 |
|
|
$ |
278.1 |
|
|
$ |
85.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio - attritional losses |
|
24.0 |
% |
|
|
19.7 |
% |
|
4.3 pts |
|
|
27.8 |
% |
|
|
26.5 |
% |
|
1.3 pts |
||||
Loss ratio - catastrophe and large losses |
|
34.2 |
% |
|
|
23.4 |
% |
|
10.8 pts |
|
|
30.9 |
% |
|
|
15.8 |
% |
|
15.1 pts |
||||
Loss ratio - prior accident years |
|
(4.0 |
)% |
|
|
1.6 |
% |
|
(5.6) pts |
|
|
(6.9 |
)% |
|
|
6.2 |
% |
|
(13.1) pts |
||||
Loss ratio |
|
54.2 |
% |
|
|
44.7 |
% |
|
9.5 pts |
|
|
51.8 |
% |
|
|
48.5 |
% |
|
3.3 pts |
||||
For the three months ended June 30, 2024, our loss ratio in the Specialty segment increased by 9.5 points. For the six months ended June 30, 2024, our loss ratio in the Specialty segment increased by 3.3 points.
The attritional loss ratio in the three months and six months ended June 30, 2024, increased by 4.3 points and 1.3 points, respectively, compared to the prior year periods due to a higher level of small losses in the current year period.
The catastrophe and large losses in the three months ended June 30, 2024 were driven by events in our Property D&F line of business, the largest of which was the catastrophic tornados in
The catastrophe and large losses in the six months ended June 30, 2024 related to losses from the Baltimore Bridge collapse in our Marine line of business, severe convective storms in the Property D&F line of business, together with other smaller losses in various lines of business. This compared to prior year period catastrophe and large losses related to our Aviation and Aerospace line of business which included losses related to the
The favorable prior year development for the three and six months ended June 30, 2024 was driven primarily by better than expected loss emergence in the Marine and Property D&F lines of business.
Bespoke Segment
The following table is a summary of our Bespoke segment’s underwriting results:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||
|
($ in millions) |
||||||||||||||||||||||
Gross premiums written |
$ |
90.6 |
|
|
$ |
54.7 |
|
|
$ |
35.9 |
|
|
$ |
244.1 |
|
|
$ |
205.5 |
|
|
$ |
38.6 |
|
Reinsurance premium ceded |
|
(62.7 |
) |
|
|
(24.6 |
) |
|
|
(38.1 |
) |
|
|
(163.4 |
) |
|
|
(93.7 |
) |
|
|
(69.7 |
) |
Net premiums written |
|
27.9 |
|
|
|
30.1 |
|
|
|
(2.2 |
) |
|
|
80.7 |
|
|
|
111.8 |
|
|
|
(31.1 |
) |
Net premiums earned |
|
93.0 |
|
|
|
90.4 |
|
|
|
2.6 |
|
|
|
182.9 |
|
|
|
181.6 |
|
|
|
1.3 |
|
Losses and loss adjustment expenses |
|
(32.9 |
) |
|
|
(16.2 |
) |
|
|
(16.7 |
) |
|
|
(56.3 |
) |
|
|
(29.3 |
) |
|
|
(27.0 |
) |
Policy acquisition expenses |
|
(33.4 |
) |
|
|
(36.9 |
) |
|
|
3.5 |
|
|
|
(63.7 |
) |
|
|
(70.2 |
) |
|
|
6.5 |
|
Underwriting income |
$ |
26.7 |
|
|
$ |
37.3 |
|
|
$ |
(10.6 |
) |
|
$ |
62.9 |
|
|
$ |
82.1 |
|
|
$ |
(19.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio |
|
35.4 |
% |
|
|
17.9 |
% |
|
17.5 pts |
|
|
30.8 |
% |
|
|
16.1 |
% |
|
14.7 pts |
||||
Policy acquisition expense ratio |
|
35.9 |
% |
|
|
40.8 |
% |
|
(4.9) pts |
|
|
34.8 |
% |
|
|
38.7 |
% |
|
(3.9) pts |
||||
Underwriting ratio |
|
71.3 |
% |
|
|
58.7 |
% |
|
12.6 pts |
|
|
65.6 |
% |
|
|
54.8 |
% |
|
10.8 pts |
||||
For the three and six months ended June 30, 2024, our GPW increased primarily driven by new business in our Credit and Political Risk line of business.
For the three and six months ended June 30, 2024, our NPE remained consistent compared to the prior year periods.
Our policy acquisition expense ratio for the three and six months ended June 30, 2024 decreased due to changes in the mix of business written and ceded, and commissions earned from reinsurance partners.
Our underwriting ratio in the Bespoke segment increased by 12.6 points and 10.8 points for the three and six months ended June 30, 2024, respectively, from the prior year periods, driven by an increase in our loss ratio.
The following table is a summary of our Bespoke segment’s losses and loss adjustment expenses:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||
|
($ in millions) |
||||||||||||||||||||||
Attritional losses |
$ |
16.1 |
|
|
$ |
19.9 |
|
|
$ |
(3.8 |
) |
|
$ |
43.6 |
|
|
$ |
38.8 |
|
|
$ |
4.8 |
|
Large losses |
|
59.6 |
|
|
|
3.8 |
|
|
|
55.8 |
|
|
|
63.8 |
|
|
|
6.8 |
|
|
|
57.0 |
|
Favorable prior year development |
|
(42.8 |
) |
|
|
(7.5 |
) |
|
|
(35.3 |
) |
|
|
(51.1 |
) |
|
|
(16.3 |
) |
|
|
(34.8 |
) |
Losses and loss adjustment expenses |
$ |
32.9 |
|
|
$ |
16.2 |
|
|
$ |
16.7 |
|
|
$ |
56.3 |
|
|
$ |
29.3 |
|
|
$ |
27.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio - attritional losses |
|
17.3 |
% |
|
|
22.0 |
% |
|
(4.7) pts |
|
|
23.8 |
% |
|
|
21.4 |
% |
|
2.4 pts |
||||
Loss ratio - large losses |
|
64.1 |
% |
|
|
4.2 |
% |
|
59.9 pts |
|
|
34.9 |
% |
|
|
3.7 |
% |
|
31.2 pts |
||||
Loss ratio - prior accident years |
|
(46.0 |
)% |
|
|
(8.3 |
)% |
|
(37.7) pts |
|
|
(27.9 |
)% |
|
|
(9.0 |
)% |
|
(18.9) pts |
||||
Loss ratio |
|
35.4 |
% |
|
|
17.9 |
% |
|
17.5 pts |
|
|
30.8 |
% |
|
|
16.1 |
% |
|
14.7 pts |
||||
For the three and six months ended June 30, 2024, our loss ratio in the Bespoke segment increased by 17.5 points and 14.7 points, respectively, compared to the prior year periods, driven by an increase in our large loss ratio.
The attritional loss ratio for the three months ended June 30, 2024 improved by 4.7 points compared to the prior year period due to a lower level of small losses in the current year period.
The attritional loss ratio for the six months ended June 30, 2024 increased by 2.4 points compared to the prior year period due to a higher level of small losses in the current year period.
The large losses in the three months and six months ended June 30, 2024 related to intellectual property losses in our Credit & Political Risk line of business compared to minimal large losses in the three and six months ended June 30, 2023.
The favorable prior year development for the three and six months ended June 30, 2024 was driven by benign attritional experience and favorable claims settlements.
Reinsurance Segment
The following table is a summary of our Reinsurance segment’s underwriting results:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||
|
($ in millions) |
||||||||||||||||||||||
Gross premiums written |
$ |
346.1 |
|
|
$ |
245.2 |
|
|
$ |
100.9 |
|
|
$ |
672.9 |
|
|
$ |
505.6 |
|
|
$ |
167.3 |
|
Reinsurance premium ceded |
|
(128.7 |
) |
|
|
(122.0 |
) |
|
|
(6.7 |
) |
|
|
(357.9 |
) |
|
|
(297.4 |
) |
|
|
(60.5 |
) |
Net premiums written |
|
217.4 |
|
|
|
123.2 |
|
|
|
94.2 |
|
|
|
315.0 |
|
|
|
208.2 |
|
|
|
106.8 |
|
Net premiums earned |
|
58.9 |
|
|
|
31.5 |
|
|
|
27.4 |
|
|
|
104.8 |
|
|
|
60.1 |
|
|
|
44.7 |
|
Losses and loss adjustment expenses |
|
(0.7 |
) |
|
|
(4.7 |
) |
|
|
4.0 |
|
|
|
14.9 |
|
|
|
(10.5 |
) |
|
|
25.4 |
|
Policy acquisition expenses |
|
(17.7 |
) |
|
|
(7.7 |
) |
|
|
(10.0 |
) |
|
|
(23.8 |
) |
|
|
(13.1 |
) |
|
|
(10.7 |
) |
Underwriting income |
$ |
40.5 |
|
|
$ |
19.1 |
|
|
$ |
21.4 |
|
|
$ |
95.9 |
|
|
$ |
36.5 |
|
|
$ |
59.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio |
|
1.2 |
% |
|
|
14.9 |
% |
|
(13.7) pts |
|
|
(14.2 |
)% |
|
|
17.5 |
% |
|
(31.7) pts |
||||
Policy acquisition expense ratio |
|
30.1 |
% |
|
|
24.4 |
% |
|
5.7 pts |
|
|
22.7 |
% |
|
|
21.8 |
% |
|
0.9 pts |
||||
Underwriting ratio |
|
31.3 |
% |
|
|
39.3 |
% |
|
(8.0) pts |
|
|
8.5 |
% |
|
|
39.3 |
% |
|
(30.8) pts |
||||
For the three and six months ended June 30, 2024, GPW increased driven by rate increases as well as new business, while NPE increased driven by earnings from higher net premiums written in the current year periods.
For the three and six months ended June 30, 2024, our policy acquisition expense ratio increased due to lower commissions earned from ceded reinsurance partners.
For the three and six months ended June 30, 2024, our underwriting ratio in the Reinsurance segment improved by 8.0 points and 30.8 points, respectively, from the prior year periods, driven by an improvement in our loss ratio.
The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||
|
($ in millions) |
||||||||||||||||||||||
Attritional losses |
$ |
10.3 |
|
|
$ |
(4.8 |
) |
|
$ |
15.1 |
|
|
$ |
18.1 |
|
|
$ |
24.0 |
|
|
$ |
(5.9 |
) |
Catastrophe and large losses |
|
2.1 |
|
|
|
9.3 |
|
|
|
(7.2 |
) |
|
|
3.0 |
|
|
|
10.1 |
|
|
|
(7.1 |
) |
(Favorable)/adverse prior year development |
|
(11.7 |
) |
|
|
0.2 |
|
|
|
(11.9 |
) |
|
|
(36.0 |
) |
|
|
(23.6 |
) |
|
|
(12.4 |
) |
Losses and loss adjustment expenses |
$ |
0.7 |
|
|
$ |
4.7 |
|
|
$ |
(4.0 |
) |
|
$ |
(14.9 |
) |
|
$ |
10.5 |
|
|
$ |
(25.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio - attritional losses |
|
17.5 |
% |
|
|
(15.2 |
)% |
|
32.7 pts |
|
|
17.3 |
% |
|
|
40.0 |
% |
|
(22.7) pts |
||||
Loss ratio - catastrophe and large losses |
|
3.6 |
% |
|
|
29.5 |
% |
|
(25.9) pts |
|
|
2.9 |
% |
|
|
16.8 |
% |
|
(13.9) pts |
||||
Loss ratio - prior accident years |
|
(19.9 |
)% |
|
|
0.6 |
% |
|
(20.5) pts |
|
|
(34.4 |
)% |
|
|
(39.3 |
)% |
|
4.9 pts |
||||
Loss ratio |
|
1.2 |
% |
|
|
14.9 |
% |
|
(13.7) pts |
|
|
(14.2 |
)% |
|
|
17.5 |
% |
|
(31.7) pts |
||||
For the three months ended June 30, 2024, our loss ratio in the Reinsurance segment improved by 13.7 points compared to the prior year period, driven by favorable prior year development and an improvement in the catastrophe and large loss ratio, partially offset by an increase in the attritional loss ratio.
The loss ratio improved by 31.7 points for the six months ended June 30, 2024. This was due to improvements in our attritional and catastrophe and large loss ratios.
The attritional loss ratio in the three months ended June 30, 2024 increased by 32.7 points compared to the prior year period, which was particularly benign in terms of attritional losses.
The attritional loss ratio in the six months ended June 30, 2024 improved by 22.7 points due to favorable experience compared to the prior year period which included storm losses in our Property Reinsurance line of business.
For the three and six months ended June 30, 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
For the three and six months ended June 30, 2024, The Fidelis Partnership commissions were
The following table summarizes The Fidelis Partnership commissions earned:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||||||||||
Ceding commission expense |
$ |
73.4 |
|
|
$ |
39.0 |
|
|
$ |
141.1 |
|
|
$ |
51.1 |
|
Profit commission expense |
|
1.6 |
|
|
|
13.6 |
|
|
|
10.6 |
|
|
|
25.7 |
|
Total commissions |
$ |
75.0 |
|
|
$ |
52.6 |
|
|
$ |
151.7 |
|
|
$ |
76.8 |
|
General and Administrative Expenses
For the three and six months ended June 30, 2024, general and administrative expenses were
Investments |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||||||||||
Net realized and unrealized investment gains/(losses) |
$ |
(7.0 |
) |
|
$ |
0.1 |
|
|
$ |
(16.0 |
) |
|
$ |
2.9 |
|
Net investment income |
|
46.0 |
|
|
|
27.3 |
|
|
|
87.0 |
|
|
|
47.7 |
|
Net investment return |
$ |
39.0 |
|
|
$ |
27.4 |
|
|
$ |
71.0 |
|
|
$ |
50.6 |
|
Net Realized and Unrealized Investment Gains/(Losses)
The net realized and unrealized investment losses in the three and six months ended June 30, 2024 resulted primarily from realized losses on the sale of
Net Investment Income
The increase in our net investment income in the three and six months ended June 30, 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 six months ended June 30, 2024, we purchased
Conference Call
Fidelis will host a teleconference to discuss its financial results on Thursday, August 15, 2024, at 9:00 a.m Eastern time. The call may be accessed by dialing 1-800-549-8228 (
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 focused on three segments: Specialty, Bespoke, and Reinsurance, which 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
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
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
Safe Harbor Regarding Forward-Looking Statements
This press release (including the documents referenced herein, such as our financial results for the second quarter ended June 30, 2024) and the related post on LinkedIn contains, and our officers and representatives may from time to time make (including on our related 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, projections or intentions and are made pursuant to the safe harbor provisions of the
Examples of forward-looking statements include, among others, statements we make in relation to: discussion relating to net income and net income per share; expected operating results, such as revenue growth and earnings; our expectations regarding our strategy and the performance of our business; information regarding our estimates for catastrophes and other loss events; our liquidity and capital resources; and expectations of the effect on our financial condition of claims, litigation, environmental costs, 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: the ongoing trend of premium rate hardening and factors likely to drive continued rate hardening; expected growth across our portfolio; the availability of outwards reinsurance and capital resources as required; the development and pattern of earned and written premiums impacting embedded premium value; changes in accounting principles or the application thereof; the level of underwriting leverage; the level and timing of catastrophe and other losses and related reserves on the business we underwrite; the performance of our investment portfolios; our strategic relationship with The Fidelis Partnership; the maintenance of financial strength ratings; the impact of global geopolitical and economic uncertainties impacting the lines of business we write; the impact of tax reform and insurance regulation in the jurisdictions where our businesses are located; and those risks, uncertainties and other factors disclosed under the section titled ‘Risk Factors’ in Fidelis Insurance Holdings Limited’s Form 20-F filed with the SEC on March 15, 2024 (which such section is incorporated herein by reference), as well as subsequent filings with the SEC available electronically at www.sec.gov.
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 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. However, 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. 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.
FIDELIS INSURANCE HOLDINGS LIMITED Consolidated Balance Sheets At June 30, 2024 (Unaudited) and December 31, 2023
(Expressed in millions of |
|||||||
|
June 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: |
$ |
3,410.2 |
|
|
$ |
3,244.9 |
|
Short-term investments, available-for-sale, at fair value (amortized cost: |
|
86.9 |
|
|
|
49.0 |
|
Other investments, at fair value (amortized cost: |
|
46.8 |
|
|
|
47.5 |
|
Total investments |
|
3,543.9 |
|
|
|
3,341.4 |
|
Cash and cash equivalents |
|
628.6 |
|
|
|
712.4 |
|
Restricted cash and cash equivalents |
|
230.5 |
|
|
|
251.7 |
|
Accrued investment income |
|
33.6 |
|
|
|
27.2 |
|
Premiums and other receivables (net of allowances for credit losses of |
|
3,039.5 |
|
|
|
2,209.3 |
|
Amounts due from The Fidelis Partnership (net of allowances for credit losses of $nil, 2023: $nil) |
|
251.6 |
|
|
|
173.3 |
|
Deferred reinsurance premiums |
|
1,648.1 |
|
|
|
1,061.4 |
|
Reinsurance balances recoverable on paid losses (net of allowances for credit losses of $nil, 2023: $nil) |
|
149.7 |
|
|
|
182.7 |
|
Reinsurance balances recoverable on reserves for losses and loss adjustment expenses (net of allowances for credit losses of |
|
1,154.8 |
|
|
|
1,108.6 |
|
Deferred policy acquisition costs (includes Fidelis Partnership deferred commissions |
|
1,029.5 |
|
|
|
786.6 |
|
Other assets |
|
219.1 |
|
|
|
173.5 |
|
Total assets |
$ |
11,928.9 |
|
|
$ |
10,028.1 |
|
Liabilities and shareholders' equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Reserves for losses and loss adjustment expenses |
$ |
2,702.7 |
|
|
$ |
2,448.9 |
|
Unearned premiums |
|
4,193.4 |
|
|
|
3,149.5 |
|
Reinsurance balances payable |
|
1,536.5 |
|
|
|
1,071.5 |
|
Amounts due to The Fidelis Partnership |
|
362.3 |
|
|
|
334.5 |
|
Long term debt |
|
448.6 |
|
|
|
448.2 |
|
Preference securities ( |
|
58.4 |
|
|
|
58.4 |
|
Other liabilities |
|
97.1 |
|
|
|
67.3 |
|
Total liabilities |
|
9,399.0 |
|
|
|
7,578.3 |
|
Commitments and contingencies |
|
|
|
||||
Shareholders' equity |
|
|
|
||||
Common shares ( |
|
1.2 |
|
|
|
1.2 |
|
Additional paid-in capital |
|
2,041.7 |
|
|
|
2,039.0 |
|
Accumulated other comprehensive loss |
|
(22.3 |
) |
|
|
(27.0 |
) |
Retained earnings |
|
548.0 |
|
|
|
436.6 |
|
Common shares held in treasury, at cost (shares held: 2,290,020, 2023: nil) |
|
(38.7 |
) |
|
|
— |
|
Total shareholders' equity |
|
2,529.9 |
|
|
|
2,449.8 |
|
Total liabilities and shareholders' equity |
$ |
11,928.9 |
|
|
$ |
10,028.1 |
|
FIDELIS INSURANCE HOLDINGS LIMITED Consolidated Statements of Income and Comprehensive Income (Unaudited) For the three and six months ended June 30, 2024 and June 30, 2023
(Expressed in millions of |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Gross premiums written |
$ |
1,193.2 |
|
|
$ |
957.2 |
|
|
$ |
2,707.5 |
|
|
$ |
2,202.5 |
|
Reinsurance premiums ceded |
|
(523.3 |
) |
|
|
(342.1 |
) |
|
|
(1,259.5 |
) |
|
|
(927.7 |
) |
Net premiums written |
|
669.9 |
|
|
|
615.1 |
|
|
|
1,448.0 |
|
|
|
1,274.8 |
|
Change in net unearned premiums |
|
(168.8 |
) |
|
|
(186.0 |
) |
|
|
(458.9 |
) |
|
|
(459.7 |
) |
Net premiums earned |
|
501.1 |
|
|
|
429.1 |
|
|
|
989.1 |
|
|
|
815.1 |
|
Net realized and unrealized investment gains/(losses) |
|
(7.0 |
) |
|
|
0.1 |
|
|
|
(16.0 |
) |
|
|
2.9 |
|
Net investment income |
|
46.0 |
|
|
|
27.3 |
|
|
|
87.0 |
|
|
|
47.7 |
|
Other income/(loss) |
|
— |
|
|
|
(3.3 |
) |
|
|
— |
|
|
|
0.2 |
|
Total revenues before net gain on distribution of The Fidelis Partnership |
|
540.1 |
|
|
|
453.2 |
|
|
|
1,060.1 |
|
|
|
865.9 |
|
Net gain on distribution of The Fidelis Partnership |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,639.1 |
|
Total revenues |
|
540.1 |
|
|
|
453.2 |
|
|
|
1,060.1 |
|
|
|
2,505.0 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
||||||||
Losses and loss adjustment expenses |
|
222.7 |
|
|
|
158.3 |
|
|
|
405.0 |
|
|
|
317.9 |
|
Policy acquisition expenses (includes The Fidelis Partnership commissions of |
|
217.3 |
|
|
|
174.7 |
|
|
|
430.2 |
|
|
|
303.9 |
|
General and administrative expenses |
|
24.4 |
|
|
|
18.6 |
|
|
|
48.0 |
|
|
|
35.2 |
|
Corporate and other expenses |
|
1.6 |
|
|
|
1.5 |
|
|
|
1.6 |
|
|
|
3.0 |
|
Net foreign exchange losses |
|
2.6 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
1.6 |
|
Financing costs |
|
8.6 |
|
|
|
9.0 |
|
|
|
17.2 |
|
|
|
17.6 |
|
Total expenses |
|
477.2 |
|
|
|
362.2 |
|
|
|
902.1 |
|
|
|
679.2 |
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
62.9 |
|
|
|
91.0 |
|
|
|
158.0 |
|
|
|
1,825.8 |
|
Income tax expense |
|
(9.2 |
) |
|
|
(7.1 |
) |
|
|
(23.1 |
) |
|
|
(9.3 |
) |
Net income |
|
53.7 |
|
|
|
83.9 |
|
|
|
134.9 |
|
|
|
1,816.5 |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income/(loss) |
|
|
|
|
|
|
|
||||||||
Unrealized gains/(losses) on available-for-sale investments |
$ |
(0.4 |
) |
|
$ |
(9.9 |
) |
|
$ |
(8.6 |
) |
|
$ |
15.0 |
|
Reclassification of net realized losses recognized in net income |
|
6.1 |
|
|
|
0.4 |
|
|
|
13.5 |
|
|
|
0.4 |
|
Income tax (expense)/benefit, all of which relates to unrealized gains/(losses) on available-for-sale investments |
|
(0.8 |
) |
|
|
0.4 |
|
|
|
(0.2 |
) |
|
|
(1.6 |
) |
Total other comprehensive income/(loss) |
|
4.9 |
|
|
|
(9.1 |
) |
|
|
4.7 |
|
|
|
13.8 |
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income |
$ |
58.6 |
|
|
$ |
74.8 |
|
|
$ |
139.6 |
|
|
$ |
1,830.3 |
|
|
|
|
|
|
|
|
|
||||||||
Per share data |
|
|
|
|
|
|
|
||||||||
Earnings per common share |
|
|
|
|
|
|
|
||||||||
Earnings per common share |
$ |
0.46 |
|
|
$ |
0.76 |
|
|
$ |
1.15 |
|
|
$ |
16.40 |
|
Earnings per diluted common share |
$ |
0.46 |
|
|
$ |
0.76 |
|
|
$ |
1.14 |
|
|
$ |
16.39 |
|
Weighted average common shares outstanding |
|
117,089,293 |
|
|
|
110,771,897 |
|
|
|
117,373,655 |
|
|
|
110,771,897 |
|
Weighted average diluted common shares outstanding |
|
117,625,022 |
|
|
|
110,825,698 |
|
|
|
117,860,982 |
|
|
|
110,807,764 |
|
FIDELIS INSURANCE HOLDINGS LIMITED Consolidated Segment Data (Unaudited) For the three and six months ended June 30, 2024 and June 30, 2023
(Expressed in millions of |
|||||||||||||||||||
|
Three Months Ended June 30, 2024 |
||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
756.5 |
|
|
$ |
90.6 |
|
|
$ |
346.1 |
|
|
$ |
— |
|
|
$ |
1,193.2 |
|
Net premiums written |
|
424.6 |
|
|
|
27.9 |
|
|
|
217.4 |
|
|
|
— |
|
|
|
669.9 |
|
Net premiums earned |
|
349.2 |
|
|
|
93.0 |
|
|
|
58.9 |
|
|
|
— |
|
|
|
501.1 |
|
Losses and loss adjustment expenses |
|
(189.1 |
) |
|
|
(32.9 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
(222.7 |
) |
Policy acquisition expenses |
|
(91.2 |
) |
|
|
(33.4 |
) |
|
|
(17.7 |
) |
|
|
(75.0 |
) |
|
|
(217.3 |
) |
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24.4 |
) |
|
|
(24.4 |
) |
Underwriting income |
|
68.9 |
|
|
|
26.7 |
|
|
|
40.5 |
|
|
|
(99.4 |
) |
|
|
36.7 |
|
Net realized and unrealized investment losses |
|
|
|
|
|
|
|
|
|
(7.0 |
) |
||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
46.0 |
|
||||||||
Corporate and other expenses |
|
|
|
|
|
|
|
|
|
(1.6 |
) |
||||||||
Net foreign exchange losses |
|
|
|
|
|
|
|
|
|
(2.6 |
) |
||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(8.6 |
) |
||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
62.9 |
|
||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(9.2 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
$ |
53.7 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(203.2 |
) |
|
|
(75.7 |
) |
|
|
(12.4 |
) |
|
|
|
$ |
(291.3 |
) |
||
Losses and loss adjustment expenses incurred - prior accident years |
|
14.1 |
|
|
|
42.8 |
|
|
|
11.7 |
|
|
|
|
|
68.6 |
|
||
Losses and loss adjustment expenses incurred - total |
$ |
(189.1 |
) |
|
$ |
(32.9 |
) |
|
$ |
(0.7 |
) |
|
|
|
$ |
(222.7 |
) |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting Ratios(1) |
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio - current year |
|
58.2 |
% |
|
|
81.4 |
% |
|
|
21.1 |
% |
|
|
|
|
58.1 |
% |
||
Loss ratio - prior accident years |
|
(4.0 |
%) |
|
|
(46.0 |
%) |
|
|
(19.9 |
%) |
|
|
|
|
(13.7 |
%) |
||
Loss ratio - total |
|
54.2 |
% |
|
|
35.4 |
% |
|
|
1.2 |
% |
|
|
|
|
44.4 |
% |
||
Policy acquisition expense ratio |
|
26.1 |
% |
|
|
35.9 |
% |
|
|
30.1 |
% |
|
|
|
|
28.4 |
% |
||
Underwriting ratio |
|
80.3 |
% |
|
|
71.3 |
% |
|
|
31.3 |
% |
|
|
|
|
72.8 |
% |
||
The Fidelis Partnership commissions ratio |
|
|
|
|
|
|
|
|
|
15.0 |
% |
||||||||
General and administrative expense ratio |
|
|
|
|
|
|
|
|
|
4.9 |
% |
||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
92.7 |
% |
||||||||
________________ |
|||||||||||||||||||
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
|||||||||||||||||||
|
Three Months Ended June 30, 2023 |
||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
657.3 |
|
|
$ |
54.7 |
|
|
$ |
245.2 |
|
|
$ |
— |
|
|
$ |
957.2 |
|
Net premiums written |
|
461.8 |
|
|
|
30.1 |
|
|
|
123.2 |
|
|
|
— |
|
|
|
615.1 |
|
Net premiums earned |
|
307.2 |
|
|
|
90.4 |
|
|
|
31.5 |
|
|
|
— |
|
|
|
429.1 |
|
Losses and loss adjustment expenses |
|
(137.4 |
) |
|
|
(16.2 |
) |
|
|
(4.7 |
) |
|
|
— |
|
|
|
(158.3 |
) |
Policy acquisition expenses |
|
(77.5 |
) |
|
|
(36.9 |
) |
|
|
(7.7 |
) |
|
|
(52.6 |
) |
|
|
(174.7 |
) |
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18.6 |
) |
|
|
(18.6 |
) |
Underwriting income |
|
92.3 |
|
|
|
37.3 |
|
|
|
19.1 |
|
|
|
(71.2 |
) |
|
|
77.5 |
|
Net realized and unrealized investment gains |
|
|
|
|
|
|
|
|
|
0.1 |
|
||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
27.3 |
|
||||||||
Other loss |
|
|
|
|
|
|
|
|
|
(3.3 |
) |
||||||||
Corporate and other expenses |
|
|
|
|
|
|
|
|
|
(1.5 |
) |
||||||||
Net foreign exchange losses |
|
|
|
|
|
|
|
|
|
(0.1 |
) |
||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(9.0 |
) |
||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
91.0 |
|
||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(7.1 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
$ |
83.9 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(132.5 |
) |
|
|
(23.7 |
) |
|
|
(4.5 |
) |
|
|
|
$ |
(160.7 |
) |
||
Losses and loss adjustment expenses incurred - prior accident years |
|
(4.9 |
) |
|
|
7.5 |
|
|
|
(0.2 |
) |
|
|
|
|
2.4 |
|
||
Losses and loss adjustment expenses incurred - total |
$ |
(137.4 |
) |
|
$ |
(16.2 |
) |
|
$ |
(4.7 |
) |
|
|
|
$ |
(158.3 |
) |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting Ratios(1) |
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio - current year |
|
43.1 |
% |
|
|
26.2 |
% |
|
|
14.3 |
% |
|
|
|
|
37.5 |
% |
||
Loss ratio - prior accident years |
|
1.6 |
% |
|
|
(8.3 |
%) |
|
|
0.6 |
% |
|
|
|
|
(0.6 |
%) |
||
Loss ratio - total |
|
44.7 |
% |
|
|
17.9 |
% |
|
|
14.9 |
% |
|
|
|
|
36.9 |
% |
||
Policy acquisition expense ratio |
|
25.2 |
% |
|
|
40.8 |
% |
|
|
24.4 |
% |
|
|
|
|
28.5 |
% |
||
Underwriting ratio |
|
69.9 |
% |
|
|
58.7 |
% |
|
|
39.3 |
% |
|
|
|
|
65.4 |
% |
||
The Fidelis Partnership commissions ratio |
|
|
|
|
|
|
|
|
|
12.3 |
% |
||||||||
General and administrative expense ratio |
|
|
|
|
|
|
|
|
|
4.3 |
% |
||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
82.0 |
% |
||||||||
________________ |
|||||||||||||||||||
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
|||||||||||||||||||
|
Six months ended June 30, 2024 |
||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
1,790.5 |
|
|
$ |
244.1 |
|
|
$ |
672.9 |
|
|
$ |
— |
|
|
$ |
2,707.5 |
|
Net premiums written |
|
1,052.3 |
|
|
|
80.7 |
|
|
|
315.0 |
|
|
|
— |
|
|
|
1,448.0 |
|
Net premiums earned |
|
701.4 |
|
|
|
182.9 |
|
|
|
104.8 |
|
|
|
— |
|
|
|
989.1 |
|
Losses and loss adjustment expenses |
|
(363.6 |
) |
|
|
(56.3 |
) |
|
|
14.9 |
|
|
|
— |
|
|
|
(405.0 |
) |
Policy acquisition expenses |
|
(191.0 |
) |
|
|
(63.7 |
) |
|
|
(23.8 |
) |
|
|
(151.7 |
) |
|
|
(430.2 |
) |
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(48.0 |
) |
|
|
(48.0 |
) |
Underwriting income |
|
146.8 |
|
|
|
62.9 |
|
|
|
95.9 |
|
|
|
(199.7 |
) |
|
|
105.9 |
|
Net realized and unrealized investment losses |
|
|
|
|
|
|
|
|
|
(16.0 |
) |
||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
87.0 |
|
||||||||
Corporate and other expenses |
|
|
|
|
|
|
|
|
|
(1.6 |
) |
||||||||
Net foreign exchange losses |
|
|
|
|
|
|
|
|
|
(0.1 |
) |
||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(17.2 |
) |
||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
158.0 |
|
||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(23.1 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
$ |
134.9 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(412.1 |
) |
|
|
(107.4 |
) |
|
|
(21.1 |
) |
|
|
|
$ |
(540.6 |
) |
||
Losses and loss adjustment expenses incurred - prior accident years |
|
48.5 |
|
|
|
51.1 |
|
|
|
36.0 |
|
|
|
|
|
135.6 |
|
||
Losses and loss adjustment expenses incurred - total |
$ |
(363.6 |
) |
|
$ |
(56.3 |
) |
|
$ |
14.9 |
|
|
|
|
$ |
(405.0 |
) |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting Ratios(1) |
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio - current year |
|
58.7 |
% |
|
|
58.7 |
% |
|
|
20.2 |
% |
|
|
|
|
54.6 |
% |
||
Loss ratio - prior accident years |
|
(6.9 |
%) |
|
|
(27.9 |
%) |
|
|
(34.4 |
%) |
|
|
|
|
(13.7 |
%) |
||
Loss ratio - total |
|
51.8 |
% |
|
|
30.8 |
% |
|
|
(14.2 |
%) |
|
|
|
|
40.9 |
% |
||
Policy acquisition expenses ratio |
|
27.2 |
% |
|
|
34.8 |
% |
|
|
22.7 |
% |
|
|
|
|
28.2 |
% |
||
Underwriting ratio |
|
79.0 |
% |
|
|
65.6 |
% |
|
|
8.5 |
% |
|
|
|
|
69.1 |
% |
||
The Fidelis Partnership commissions ratio |
|
|
|
|
|
|
|
|
|
15.3 |
% |
||||||||
General and administrative expenses ratio |
|
|
|
|
|
|
|
|
|
4.9 |
% |
||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
89.3 |
% |
||||||||
________________ |
|||||||||||||||||||
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
|||||||||||||||||||
|
Six months ended June 30, 2023 |
||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
1,491.4 |
|
|
$ |
205.5 |
|
|
$ |
505.6 |
|
|
$ |
— |
|
|
$ |
2,202.5 |
|
Net premiums written |
|
954.8 |
|
|
|
111.8 |
|
|
|
208.2 |
|
|
|
— |
|
|
|
1,274.8 |
|
Net premiums earned |
|
573.4 |
|
|
|
181.6 |
|
|
|
60.1 |
|
|
|
— |
|
|
|
815.1 |
|
Losses and loss adjustment expenses |
|
(278.1 |
) |
|
|
(29.3 |
) |
|
|
(10.5 |
) |
|
|
— |
|
|
|
(317.9 |
) |
Policy acquisition expenses |
|
(143.8 |
) |
|
|
(70.2 |
) |
|
|
(13.1 |
) |
|
|
(76.8 |
) |
|
|
(303.9 |
) |
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(35.2 |
) |
|
|
(35.2 |
) |
Underwriting income |
|
151.5 |
|
|
|
82.1 |
|
|
|
36.5 |
|
|
|
(112.0 |
) |
|
|
158.1 |
|
Net realized and unrealized investment gains |
|
|
|
|
|
|
|
|
|
2.9 |
|
||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
47.7 |
|
||||||||
Other income |
|
|
|
|
|
|
|
|
|
0.2 |
|
||||||||
Net gain on distribution of The Fidelis Partnership |
|
|
|
|
|
|
|
|
|
1,639.1 |
|
||||||||
Corporate and other expenses |
|
|
|
|
|
|
|
|
|
(3.0 |
) |
||||||||
Net foreign exchange losses |
|
|
|
|
|
|
|
|
|
(1.6 |
) |
||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(17.6 |
) |
||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
1,825.8 |
|
||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(9.3 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
$ |
1,816.5 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(242.7 |
) |
|
|
(45.6 |
) |
|
|
(34.1 |
) |
|
|
|
$ |
(322.4 |
) |
||
Losses and loss adjustment expenses incurred - prior accident years |
|
(35.4 |
) |
|
|
16.3 |
|
|
|
23.6 |
|
|
|
|
|
4.5 |
|
||
Losses and loss adjustment expenses incurred - total |
$ |
(278.1 |
) |
|
$ |
(29.3 |
) |
|
$ |
(10.5 |
) |
|
|
|
$ |
(317.9 |
) |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting Ratios(1) |
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio - current year |
|
42.3 |
% |
|
|
25.1 |
% |
|
|
56.8 |
% |
|
|
|
|
39.6 |
% |
||
Loss ratio - prior accident years |
|
6.2 |
% |
|
|
(9.0 |
%) |
|
|
(39.3 |
%) |
|
|
|
|
(0.6 |
%) |
||
Loss ratio - total |
|
48.5 |
% |
|
|
16.1 |
% |
|
|
17.5 |
% |
|
|
|
|
39.0 |
% |
||
Policy acquisition expenses ratio |
|
25.1 |
% |
|
|
38.7 |
% |
|
|
21.8 |
% |
|
|
|
|
27.9 |
% |
||
Underwriting ratio |
|
73.6 |
% |
|
|
54.8 |
% |
|
|
39.3 |
% |
|
|
|
|
66.9 |
% |
||
The Fidelis Partnership commissions ratio |
|
|
|
|
|
|
|
|
|
9.4 |
% |
||||||||
General and administrative expenses ratio |
|
|
|
|
|
|
|
|
|
4.3 |
% |
||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
80.6 |
% |
||||||||
________________ |
|||||||||||||||||||
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
|||||||||||||||||||
FIDELIS INSURANCE HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
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 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 divided by average common shareholders’ equity.
Operating return on opening common equity (“Operating ROE”): is a non-
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 net income per diluted 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 common shareholders’ equity, operating net income, ROAE, Operating ROE, Operating ROAE and Operating EPS, for the three and six months ended June 30, 2024 and 2023.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||||||||||
Net income |
$ |
53.7 |
|
|
$ |
83.9 |
|
|
$ |
134.9 |
|
|
$ |
1,816.5 |
|
Adjustment for net gain on distribution of The Fidelis Partnership |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,639.1 |
) |
Adjustment for net realized and unrealized investment (gains)/losses |
|
7.0 |
|
|
|
(0.1 |
) |
|
|
16.0 |
|
|
|
(2.9 |
) |
Adjustment for net foreign exchange losses |
|
2.6 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
1.6 |
|
Adjustment for corporate and other expenses |
|
1.6 |
|
|
|
1.5 |
|
|
|
1.6 |
|
|
|
3.0 |
|
Income tax effect of the above items |
|
(1.9 |
) |
|
|
(0.1 |
) |
|
|
(2.4 |
) |
|
|
(6.3 |
) |
Operating net income |
$ |
63.0 |
|
|
$ |
85.3 |
|
|
$ |
150.2 |
|
|
$ |
172.8 |
|
|
|
|
|
|
|
|
|
||||||||
Average common shareholders' equity |
$ |
2,523.5 |
|
|
$ |
1,942.6 |
|
|
$ |
2,489.9 |
|
|
$ |
1,978.7 |
|
Opening common shareholders' equity |
|
2,517.1 |
|
|
|
1,904.5 |
|
|
|
2,449.8 |
|
|
|
1,976.8 |
|
Adjustments related to the Separation Transactions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(178.4 |
) |
Adjusted opening common shareholders’ equity |
|
2,517.1 |
|
|
|
1,904.5 |
|
|
|
2,449.8 |
|
|
|
1,798.4 |
|
Closing common shareholders' equity |
|
2,529.9 |
|
|
|
1,980.6 |
|
|
|
2,529.9 |
|
|
|
1,980.6 |
|
Adjusted average common shareholders' equity |
$ |
2,523.5 |
|
|
$ |
1,942.6 |
|
|
$ |
2,489.9 |
|
|
$ |
1,889.5 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average Common Shares outstanding |
|
117,089,293 |
|
|
|
110,771,897 |
|
|
|
117,373,655 |
|
|
|
110,771,897 |
|
Share-based compensation plans |
|
535,729 |
|
|
|
53,801 |
|
|
|
487,327 |
|
|
|
35,867 |
|
Weighted average diluted Common Shares outstanding |
|
117,625,022 |
|
|
|
110,825,698 |
|
|
|
117,860,982 |
|
|
|
110,807,764 |
|
|
|
|
|
|
|
|
|
||||||||
ROAE |
|
2.1 |
% |
|
|
4.3 |
% |
|
|
5.4 |
% |
|
|
91.8 |
% |
Operating ROE |
|
2.5 |
% |
|
|
4.5 |
% |
|
|
6.1 |
% |
|
|
9.6 |
% |
Operating ROAE |
|
2.5 |
% |
|
|
4.4 |
% |
|
|
6.0 |
% |
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Earnings per diluted Common Share |
$ |
0.46 |
|
|
$ |
0.76 |
|
|
$ |
1.14 |
|
|
$ |
16.39 |
|
Operating EPS |
$ |
0.54 |
|
|
$ |
0.77 |
|
|
$ |
1.27 |
|
|
$ |
1.56 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814938671/en/
Fidelis Insurance Group Investor Contact:
Fidelis Insurance Group
Miranda Hunter
+1 (441) 279 2561
miranda.hunter@fidelisinsurance.com
Fidelis Insurance Group Media Contacts:
Rein4ce
Sarah Hills
+44 (0)7718 882011
sarah.hills@rein4ce.co.uk
Source: Fidelis Insurance Holdings Limited
FAQ
What were Fidelis Insurance Group's gross premiums written in Q2 2024?
What was Fidelis Insurance Group's net income for Q2 2024?
What is the combined ratio for Fidelis Insurance Group in Q2 2024?
What was Fidelis Insurance Group's operating net income in Q2 2024?
How much did Fidelis Insurance Group repurchase in shares during Q2 2024?
What was Fidelis Insurance Group's net investment income in Q2 2024?
