Fidelis Insurance Group Reports 2023 Fourth Quarter Results
Fourth Quarter 2023 Highlights:
-
Gross premiums written of
$783.9 million ; growth of 31.7% from the fourth quarter of 2022 - Combined ratio of 81.4%
- Annualized operating return on opening common equity (“Operating ROE”) of 25.2% and operating return on average common equity (“Operating ROAE”) of 23.6%
-
Net income of
$228.3 million , or$1.93 per diluted common share and operating net income of$135.4 million , or$1.15 per diluted common share -
Book value per diluted common share was
$20.69 atDecember 31, 2023 , an increase of 13.4%, compared toSeptember 30, 2023
Full Year 2023 Highlights:
-
Gross premiums written of
$3.6 billion ; growth of 18.6% from full year 2022 - Combined ratio of 82.1%; improvement of 9.8 points from full year 2022
-
Operating net income of
$398.9 million , or$3.49 per diluted common share -
Net income of
$2.1 billion , or$18.65 per diluted common share - Operating ROE of 22.2% and Operating ROAE of 18.8%
-
IPO completed on the NYSE on
July 3, 2023 , raising$89.4 million in net proceeds through the issuance of 7,142,857 common shares at$14.00 per common share
PEMBROKE,
|
“We are entering 2024 with strong momentum. Across core lines, we expect hard market conditions to continue, and we remain focused on actively managing our capital to foster sustainable growth and maintain our track record of best in class underwriting performance. With our lead market position and balance sheet strength, we are well positioned to continue delivering long-term profitable growth and shareholder value.”
|
Fourth Quarter Consolidated Results |
-
Net income available to common shareholders for the fourth quarter of 2023 was
$228.3 million , or$1.93 per diluted common share, which includes the establishment of a net deferred tax asset of$90.0 million related to the enactment of Bermuda’s corporate income tax. Operating net income of$135.4 million , or$1.15 per diluted common share. -
Underwriting income for the fourth quarter of 2023 was
$94.4 million and a combined ratio of 81.4%, compared to underwriting income of$137.6 million and a combined ratio of 66.2% for the fourth quarter of 2022. -
Net favorable prior year loss reserve development for the fourth quarter of 2023 was
$15.1 million compared to$3.9 million in the prior year period. -
Net investment income for the fourth quarter of 2023 was
$38.7 million compared to$17.1 million in the prior year period. - Operating ROE of 6.3%, or 25.2% annualized, in the quarter compared to 7.0%, or 28.0% annualized in the prior year period.
- Operating ROAE of 5.9%, or 23.6% annualized, in the quarter compared to 6.8%, or 27.2% annualized in the prior year period.
-
Book value per diluted common share was
$20.69 atDecember 31, 2023 , an increase of 13.4%, compared toSeptember 30, 2023 .
Full Year 2023 Consolidated Results |
-
Net income available to common shareholders for the year ended
December 31, 2023 was$2,132.5 million , or$18.65 per diluted common share, which includes a net gain on distribution of Fidelis MGU of$1,639.1 million and the establishment of a net deferred tax asset of$90.0 million related to the enactment of Bermuda’s corporate income tax. Operating net income was$398.9 million , or$3.49 per diluted common share. -
Underwriting income for the year ended
December 31, 2023 was$327.3 million and a combined ratio of 82.1%, compared to$120.4 million and a combined ratio of 91.9% for the year endedDecember 31, 2022 . The improvement was driven by premium growth in our Specialty segment together with significantly lower catastrophe and large losses. -
Net favorable prior year loss reserve development of
$62.9 million compared to$22.1 million in the prior year. -
Net investment income of
$119.5 million compared to$40.7 million in the prior year. -
Operating ROE and operating ROAE increased to 22.2% and 18.8%, respectively, in the year ended
December 31, 2023 , from 4.4% and 4.5%, respectively, in the year endedDecember 31, 2022 , driven by significant increases in both underwriting income and investment income. -
Book value per diluted common share was
$20.69 atDecember 31, 2023 , an increase of 27.4% from the adjusted book value per diluted common share at the time of the Separation Transactions, which were completed onJanuary 3, 2023 , driven by net income and net unrealized gains reported in other comprehensive income.
The following table details key financial indicators in evaluating our performance for the three and twelve months ended
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
($ in millions, except for per share data) |
|||||||||||||||||||
Net income available to common shareholders |
$ |
228.3 |
|
|
$ |
119.9 |
|
|
90% |
|
$ |
2,132.5 |
|
|
$ |
52.6 |
|
|
3,954% |
|
Earnings per diluted common share |
|
1.93 |
|
|
|
0.60 |
|
|
222% |
|
|
18.65 |
|
|
|
0.26 |
|
|
7,073% |
|
Operating net income(1) |
|
135.4 |
|
|
|
129.3 |
|
|
5% |
|
|
398.9 |
|
|
|
89.5 |
|
|
346% |
|
Operating EPS(1) |
|
1.15 |
|
|
|
0.65 |
|
|
77% |
|
|
3.49 |
|
|
|
0.45 |
|
|
676% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross premiums written |
|
783.9 |
|
|
|
595.2 |
|
|
32% |
|
|
3,579.0 |
|
|
|
3,018.1 |
|
|
19% |
|
Net premiums earned |
|
507.8 |
|
|
|
407.7 |
|
|
25% |
|
|
1,832.6 |
|
|
|
1,500.5 |
|
|
22% |
|
Catastrophe and large losses |
|
75.5 |
|
|
|
(3.3 |
) |
|
NM(2) |
|
|
215.3 |
|
|
|
378.9 |
|
|
(43)% |
|
Net favorable prior year reserve development |
|
15.1 |
|
|
|
3.9 |
|
|
287% |
|
|
62.9 |
|
|
|
22.1 |
|
|
185% |
|
Net investment income |
|
38.7 |
|
|
|
17.1 |
|
|
126% |
|
|
119.5 |
|
|
|
40.7 |
|
|
194% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Combined ratio |
|
81.4 |
% |
|
|
66.2 |
% |
|
15.2 pts |
|
|
82.1 |
% |
|
|
91.9 |
% |
|
(9.8) pts |
|
Operating ROE(1) |
|
6.3 |
% |
|
|
7.0 |
% |
|
(0.7) pts |
|
|
22.2 |
% |
|
|
4.4 |
% |
|
17.8 pts |
|
Operating ROAE(1) |
|
5.9 |
% |
|
|
6.8 |
% |
|
(0.9) pts |
|
|
18.8 |
% |
|
|
4.5 |
% |
|
14.3 pts |
|
(1) Operating net income, Operating EPS, Operating ROE and Operating ROAE are non-GAAP financial measures. See definition and reconciliation in “Non-GAAP Financial Measures.” |
||||||||||||||||||||
(2) NM - Not meaningful |
Segment Results |
Specialty Segment
The following table is a summary of our Specialty segment’s underwriting results:
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||||
|
($ in millions) |
|||||||||||||||||||||||
Gross premiums written |
$ |
423.0 |
|
|
$ |
371.7 |
|
|
$ |
51.3 |
|
|
$ |
2,241.3 |
|
|
$ |
1,616.2 |
|
|
$ |
625.1 |
|
|
Reinsurance premium ceded |
|
(115.9 |
) |
|
|
(116.3 |
) |
|
|
0.4 |
|
|
|
(775.8 |
) |
|
|
(558.8 |
) |
|
|
(217.0 |
) |
|
Net premiums written |
|
307.1 |
|
|
|
255.4 |
|
|
|
51.7 |
|
|
|
1,465.5 |
|
|
|
1,057.4 |
|
|
|
408.1 |
|
|
Net premiums earned |
|
335.3 |
|
|
|
251.4 |
|
|
|
83.9 |
|
|
|
1,203.3 |
|
|
|
849.4 |
|
|
|
353.9 |
|
|
Losses and loss adjustment expenses |
|
(166.7 |
) |
|
|
(98.8 |
) |
|
|
(67.9 |
) |
|
|
(583.1 |
) |
|
|
(508.7 |
) |
|
|
(74.4 |
) |
|
Policy acquisition expenses |
|
(61.9 |
) |
|
|
(62.3 |
) |
|
|
0.4 |
|
|
|
(289.1 |
) |
|
|
(189.4 |
) |
|
|
(99.7 |
) |
|
Underwriting income |
$ |
106.7 |
|
|
$ |
90.3 |
|
|
$ |
16.4 |
|
|
$ |
331.1 |
|
|
$ |
151.3 |
|
|
$ |
179.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss ratio |
|
49.7 |
% |
|
|
39.3 |
% |
|
10.4 pts |
|
|
48.5 |
% |
|
|
59.9 |
% |
|
(11.4) pts |
|||||
Policy acquisition expense ratio |
|
18.5 |
% |
|
|
24.8 |
% |
|
(6.3) pts |
|
|
24.0 |
% |
|
|
22.3 |
% |
|
1.7 pts |
|||||
Underwriting ratio |
|
68.2 |
% |
|
|
64.1 |
% |
|
4.1 pts |
|
|
72.5 |
% |
|
|
82.2 |
% |
|
(9.7) pts |
For the three months ended
For the twelve months ended
For the three and twelve months ended
The following table is a summary of our Specialty segment’s losses and loss adjustment expenses:
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||||
|
($ in millions) |
|||||||||||||||||||||||
Attritional losses |
$ |
94.6 |
|
|
$ |
111.0 |
|
|
$ |
(16.4 |
) |
|
$ |
381.9 |
|
|
$ |
300.9 |
|
|
$ |
81.0 |
|
|
Catastrophe and large losses |
|
64.5 |
|
|
|
(9.5 |
) |
|
|
74.0 |
|
|
|
160.9 |
|
|
|
218.8 |
|
|
|
(57.9 |
) |
|
(Favorable)/adverse prior year development |
|
7.6 |
|
|
|
(2.7 |
) |
|
|
10.3 |
|
|
|
40.3 |
|
|
|
(11.0 |
) |
|
|
51.3 |
|
|
Losses and loss adjustment expenses |
$ |
166.7 |
|
|
$ |
98.8 |
|
|
$ |
67.9 |
|
|
$ |
583.1 |
|
|
$ |
508.7 |
|
|
$ |
74.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss ratio - attritional losses |
|
28.2 |
% |
|
|
44.2 |
% |
|
(16.0) pts |
|
|
31.7 |
% |
|
|
35.4 |
% |
|
(3.7) pts |
|||||
Loss ratio - catastrophe and large losses |
|
19.2 |
% |
|
|
(3.8 |
)% |
|
23.0 pts |
|
|
13.5 |
% |
|
|
25.8 |
% |
|
(12.3) pts |
|||||
Loss ratio - prior accident years |
|
2.3 |
% |
|
|
(1.1 |
)% |
|
3.4 pts |
|
|
3.3 |
% |
|
|
(1.3 |
)% |
|
4.6 pts |
|||||
Loss ratio |
|
49.7 |
% |
|
|
39.3 |
% |
|
10.4 pts |
|
|
48.5 |
% |
|
|
59.9 |
% |
|
(11.4) pts |
For the three months ended
The catastrophe and large losses in the three months ended
The catastrophe and large losses in the year ended
The adverse prior year development for the three months ended
The adverse prior year development for the year ended
Bespoke Segment
The following table is a summary of our Bespoke segment’s underwriting results:
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||||
|
($ in millions) |
|||||||||||||||||||||||
Gross premiums written |
$ |
353.2 |
|
|
$ |
222.7 |
|
|
$ |
130.5 |
|
|
$ |
720.4 |
|
|
$ |
795.7 |
|
|
$ |
(75.3 |
) |
|
Reinsurance premium ceded |
|
(127.1 |
) |
|
|
(29.9 |
) |
|
|
(97.2 |
) |
|
|
(304.4 |
) |
|
|
(229.1 |
) |
|
|
(75.3 |
) |
|
Net premiums written |
|
226.1 |
|
|
|
192.8 |
|
|
|
33.3 |
|
|
|
416.0 |
|
|
|
566.6 |
|
|
|
(150.6 |
) |
|
Net premiums earned |
|
95.2 |
|
|
|
105.1 |
|
|
|
(9.9 |
) |
|
|
375.6 |
|
|
|
384.4 |
|
|
|
(8.8 |
) |
|
Losses and loss adjustment expenses |
|
(19.5 |
) |
|
|
(23.1 |
) |
|
|
3.6 |
|
|
|
(92.0 |
) |
|
|
(118.9 |
) |
|
|
26.9 |
|
|
Policy acquisition expenses |
|
(35.3 |
) |
|
|
(40.5 |
) |
|
|
5.2 |
|
|
|
(140.4 |
) |
|
|
(135.3 |
) |
|
|
(5.1 |
) |
|
Underwriting income |
$ |
40.4 |
|
|
$ |
41.5 |
|
|
$ |
(1.1 |
) |
|
$ |
143.2 |
|
|
$ |
130.2 |
|
|
$ |
13.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss ratio |
|
20.5 |
% |
|
|
22.0 |
% |
|
(1.5) pts |
|
|
24.5 |
% |
|
|
30.9 |
% |
|
(6.4) pts |
|||||
Policy acquisition expense ratio |
|
37.1 |
% |
|
|
38.5 |
% |
|
(1.4) pts |
|
|
37.4 |
% |
|
|
35.2 |
% |
|
2.2 pts |
|||||
Underwriting ratio |
|
57.6 |
% |
|
|
60.5 |
% |
|
(2.9) pts |
|
|
61.9 |
% |
|
|
66.1 |
% |
|
(4.2) pts |
For the three and twelve months ended
For the three months ended
For the twelve months ended
The following table is a summary of our Bespoke segment’s losses and loss adjustment expenses:
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||||
|
($ in millions) |
|||||||||||||||||||||||
Attritional losses |
$ |
25.7 |
|
|
$ |
12.3 |
|
|
$ |
13.4 |
|
|
$ |
106.3 |
|
|
$ |
93.3 |
|
|
$ |
13.0 |
|
|
Large losses |
|
(0.1 |
) |
|
|
27.7 |
|
|
|
(27.8 |
) |
|
|
20.4 |
|
|
|
54.5 |
|
|
|
(34.1 |
) |
|
Favorable prior year development |
|
(6.1 |
) |
|
|
(16.9 |
) |
|
|
10.8 |
|
|
|
(34.7 |
) |
|
|
(28.9 |
) |
|
|
(5.8 |
) |
|
Losses and loss adjustment expenses |
$ |
19.5 |
|
|
$ |
23.1 |
|
|
$ |
(3.6 |
) |
|
$ |
92.0 |
|
|
$ |
118.9 |
|
|
$ |
(26.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss ratio - attritional losses |
|
27.0 |
% |
|
|
11.7 |
% |
|
15.3 pts |
|
|
28.3 |
% |
|
|
24.3 |
% |
|
4.0 pts |
|||||
Loss ratio - large losses |
|
(0.1 |
)% |
|
|
26.4 |
% |
|
(26.5) pts |
|
|
5.4 |
% |
|
|
14.1 |
% |
|
(8.7) pts |
|||||
Loss ratio - prior accident years |
|
(6.4 |
)% |
|
|
(16.1 |
)% |
|
9.7 pts |
|
|
(9.2 |
)% |
|
|
(7.5 |
)% |
|
(1.7) pts |
|||||
Loss ratio |
|
20.5 |
% |
|
|
22.0 |
% |
|
(1.5) pts |
|
|
24.5 |
% |
|
|
30.9 |
% |
|
(6.4) pts |
For the three and twelve months ended
There were no large losses in the three months ended
The large losses in the twelve months ended
The favorable prior year development for the three and twelve months ended
Reinsurance Segment
The following table is a summary of our Reinsurance segment’s underwriting results:
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||||
|
($ in millions) |
|||||||||||||||||||||||
Gross premiums written |
$ |
7.7 |
|
|
$ |
0.8 |
|
|
$ |
6.9 |
|
|
$ |
617.3 |
|
|
$ |
606.2 |
|
|
$ |
11.1 |
|
|
Reinsurance premium ceded |
|
8.3 |
|
|
|
(24.8 |
) |
|
|
33.1 |
|
|
|
(362.2 |
) |
|
|
(371.8 |
) |
|
|
9.6 |
|
|
Net premiums written |
|
16.0 |
|
|
|
(24.0 |
) |
|
|
40.0 |
|
|
|
255.1 |
|
|
|
234.4 |
|
|
|
20.7 |
|
|
Net premiums earned |
|
77.3 |
|
|
|
51.2 |
|
|
|
26.1 |
|
|
|
253.7 |
|
|
|
266.7 |
|
|
|
(13.0 |
) |
|
Losses and loss adjustment expenses |
|
(3.0 |
) |
|
|
2.3 |
|
|
|
(5.3 |
) |
|
|
(23.7 |
) |
|
|
(202.6 |
) |
|
|
178.9 |
|
|
Policy acquisition expenses |
|
(23.4 |
) |
|
|
(18.3 |
) |
|
|
(5.1 |
) |
|
|
(69.0 |
) |
|
|
(59.7 |
) |
|
|
(9.3 |
) |
|
Underwriting income |
$ |
50.9 |
|
|
$ |
35.2 |
|
|
$ |
15.7 |
|
|
$ |
161.0 |
|
|
$ |
4.4 |
|
|
$ |
156.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss ratio |
|
3.9 |
% |
|
|
(4.5 |
)% |
|
8.4 pts |
|
|
9.3 |
% |
|
|
76.0 |
% |
|
(66.7) pts |
|||||
Policy acquisition expense ratio |
|
30.3 |
% |
|
|
35.7 |
% |
|
(5.4) pts |
|
|
27.2 |
% |
|
|
22.4 |
% |
|
4.8 pts |
|||||
Underwriting ratio |
|
34.2 |
% |
|
|
31.2 |
% |
|
3.0 pts |
|
|
36.5 |
% |
|
|
98.4 |
% |
|
(61.9) pts |
For the three months ended
For the twelve months ended
For the three months ended
For the twelve months ended
The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|||||
|
($ in millions) |
|||||||||||||||||||||||
Attritional losses |
$ |
8.5 |
|
|
$ |
3.5 |
|
|
$ |
5.0 |
|
|
$ |
58.2 |
|
|
$ |
79.2 |
|
|
$ |
(21.0 |
) |
|
Catastrophe and large losses |
|
11.1 |
|
|
|
(21.5 |
) |
|
|
32.6 |
|
|
|
34.0 |
|
|
|
105.6 |
|
|
|
(71.6 |
) |
|
(Favorable)/adverse prior year development |
|
(16.6 |
) |
|
|
15.7 |
|
|
|
(32.3 |
) |
|
|
(68.5 |
) |
|
|
17.8 |
|
|
|
(86.3 |
) |
|
Losses and loss adjustment expenses |
$ |
3.0 |
|
|
$ |
(2.3 |
) |
|
$ |
5.3 |
|
|
$ |
23.7 |
|
|
$ |
202.6 |
|
|
$ |
(178.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss ratio - attritional losses |
|
11.0 |
% |
|
|
6.8 |
% |
|
4.2 pts |
|
|
22.9 |
% |
|
|
29.7 |
% |
|
(6.8) pts |
|||||
Loss ratio - catastrophe and large losses |
|
14.4 |
% |
|
|
(42.0 |
)% |
|
56.4 pts |
|
|
13.4 |
% |
|
|
39.6 |
% |
|
(26.2) pts |
|||||
Loss ratio - prior accident years |
|
(21.5 |
)% |
|
|
30.7 |
% |
|
(52.2) pts |
|
|
(27.0 |
)% |
|
|
6.7 |
% |
|
(33.7) pts |
|||||
Loss ratio |
|
3.9 |
% |
|
|
(4.5 |
)% |
|
8.4 pts |
|
|
9.3 |
% |
|
|
76.0 |
% |
|
(66.7) pts |
The catastrophe and large losses in the Reinsurance segment for the three months ended
The catastrophe losses in the Reinsurance segment for the twelve months
For the three months ended
For the twelve months
Other Underwriting Expenses |
We do not allocate Fidelis MGU commissions or general and administrative expenses by segment.
Fidelis MGU Commissions
For the three and twelve months ended
The following table summarizes Fidelis MGU commissions earned:
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||
|
($ in millions) |
|||||||||||
Ceding commission expense |
$ |
58.8 |
|
$ |
— |
|
$ |
166.2 |
|
$ |
— |
|
Profit commission expense |
|
19.1 |
|
|
— |
|
|
59.1 |
|
|
— |
|
Total Fidelis MGU commissions |
$ |
77.9 |
|
$ |
— |
|
$ |
225.3 |
|
$ |
— |
General and Administrative Expenses
For the three and twelve months ended
Investment Results |
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||
|
2023 |
|
2022 |
|
2023 |
|
|
2022 |
|
||||
|
($ in millions) |
||||||||||||
Net realized and unrealized investment gains/(losses) |
$ |
7.3 |
|
$ |
3.8 |
|
$ |
4.9 |
|
$ |
(33.7 |
) |
|
Net investment income |
|
38.7 |
|
|
17.1 |
|
|
119.5 |
|
|
40.7 |
|
|
Net investment return |
$ |
46.0 |
|
$ |
20.9 |
|
$ |
124.4 |
|
$ |
7.0 |
|
Net Realized and Unrealized Investment Gains/(Losses)
The net realized and unrealized investment gains in the three months ended
Net Investment Income
The increase in our net investment income in the three and twelve months ended
Conference Call
Fidelis will host a teleconference to discuss its financial results on
About Fidelis
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 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 (including the documents incorporated herein) 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 Fidelis MGU; 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 final IPO prospectus filed pursuant to Rule 424(b)(4) (Registration No. 333-271270) with the
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 Fidelis MGU, 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.
Consolidated Balance Sheets
At
(Expressed in millions of |
||||||||
|
|
|
|
|
||||
|
|
2 023 |
|
2022 |
||||
Assets |
|
|
|
|||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: |
$ |
3,244.9 |
|
|
$ |
2,050.9 |
|
|
Short-term investments, available-for-sale, at fair value (amortized cost: |
|
49.0 |
|
|
|
257.0 |
|
|
Other investments, at fair value (amortized cost: |
|
47.5 |
|
|
|
117.1 |
|
|
Total investments |
|
3,341.4 |
|
|
|
2,425.0 |
|
|
Cash and cash equivalents |
|
712.4 |
|
|
|
1,222.0 |
|
|
Restricted cash and cash equivalents |
|
251.7 |
|
|
|
185.9 |
|
|
Accrued investment income |
|
27.2 |
|
|
|
10.9 |
|
|
Premiums and other receivables (net of allowances for credit losses of |
|
2,209.3 |
|
|
|
1,862.7 |
|
|
Amounts due from Fidelis MGU (net of allowances for credit losses of $nil, 2022: $nil) |
|
173.3 |
|
|
|
— |
|
|
Deferred reinsurance premiums |
|
1,061.4 |
|
|
|
823.7 |
|
|
Reinsurance balances recoverable on paid losses (net of allowances for credit losses of $nil, 2022: $nil) |
|
182.7 |
|
|
|
159.4 |
|
|
Reinsurance balances recoverable on reserves for losses and loss adjustment expenses (net of allowances for credit losses of |
|
1,108.6 |
|
|
|
976.1 |
|
|
Deferred policy acquisition costs (includes deferred Fidelis MGU commissions |
|
786.6 |
|
|
|
515.8 |
|
|
Other assets |
|
173.5 |
|
|
|
131.0 |
|
|
Total assets |
$ |
10,028.1 |
|
|
$ |
8,312.5 |
|
|
Liabilities and shareholders' equity |
|
|
|
|||||
Liabilities |
|
|
|
|||||
Reserves for losses and loss adjustment expenses |
$ |
2,448.9 |
|
|
$ |
2,045.2 |
|
|
Unearned premiums |
|
3,149.5 |
|
|
|
2,618.6 |
|
|
Reinsurance balances payable |
|
1,071.5 |
|
|
|
1,057.0 |
|
|
Amounts due to Fidelis MGU |
|
334.5 |
|
|
|
— |
|
|
Long term debt |
|
448.2 |
|
|
|
447.5 |
|
|
Preference securities ( |
|
58.4 |
|
|
|
58.4 |
|
|
Other liabilities |
|
67.3 |
|
|
|
98.7 |
|
|
Total liabilities |
|
7,578.3 |
|
|
|
6,325.4 |
|
|
Commitments and contingencies |
|
|
|
|||||
Shareholders' equity |
|
|
|
|||||
Common shares ( |
|
1.2 |
|
|
|
1.9 |
|
|
Additional paid-in capital |
|
2,039.0 |
|
|
|
2,075.2 |
|
|
Accumulated other comprehensive loss |
|
(27.0 |
) |
|
|
(100.8 |
) |
|
Retained earnings |
|
436.6 |
|
|
|
0.5 |
|
|
Total shareholders' equity attributable to common shareholders |
|
2,449.8 |
|
|
|
1,976.8 |
|
|
Non-controlling interests |
|
— |
|
|
|
10.3 |
|
|
Total shareholders' equity including non-controlling interests |
|
2,449.8 |
|
|
|
1,987.1 |
|
|
Total liabilities, non-controlling interests and shareholders' equity |
$ |
10,028.1 |
|
|
$ |
8,312.5 |
|
Consolidated Statements of Income and Comprehensive Income (Unaudited)
For the three and twelve months ended
(Expressed in millions of |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues |
|
|
|
|
|
|
|
|||||||||
Gross premiums written |
$ |
783.9 |
|
|
$ |
595.2 |
|
|
$ |
3,579.0 |
|
|
$ |
3,018.1 |
|
|
Reinsurance premiums ceded |
|
(234.7 |
) |
|
|
(171.0 |
) |
|
|
(1,442.4 |
) |
|
|
(1,159.7 |
) |
|
Net premiums written |
|
549.2 |
|
|
|
424.2 |
|
|
|
2,136.6 |
|
|
|
1,858.4 |
|
|
Change in net unearned premiums |
|
(41.4 |
) |
|
|
(16.5 |
) |
|
|
(304.0 |
) |
|
|
(357.9 |
) |
|
Net premiums earned |
|
507.8 |
|
|
|
407.7 |
|
|
|
1,832.6 |
|
|
|
1,500.5 |
|
|
Net realized and unrealized investment gains/(losses) |
|
7.3 |
|
|
|
3.8 |
|
|
|
4.9 |
|
|
|
(33.7 |
) |
|
Net investment income |
|
38.7 |
|
|
|
17.1 |
|
|
|
119.5 |
|
|
|
40.7 |
|
|
Other income/(loss) |
|
(0.1 |
) |
|
|
0.3 |
|
|
|
0.1 |
|
|
|
1.9 |
|
|
Total revenues before net gain on distribution of Fidelis MGU |
|
553.7 |
|
|
|
428.9 |
|
|
|
1,957.1 |
|
|
|
1,509.4 |
|
|
Net gain on distribution of Fidelis MGU |
|
— |
|
|
|
— |
|
|
|
1,639.1 |
|
|
|
— |
|
|
Total revenues |
|
553.7 |
|
|
|
428.9 |
|
|
|
3,596.2 |
|
|
|
1,509.4 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses |
|
|
|
|
|
|
|
|||||||||
Losses and loss adjustment expenses |
|
189.2 |
|
|
|
119.6 |
|
|
|
698.8 |
|
|
|
830.2 |
|
|
Policy acquisition expenses (includes Fidelis MGU commissions of |
|
198.5 |
|
|
|
121.1 |
|
|
|
723.8 |
|
|
|
384.4 |
|
|
General and administrative expenses |
|
25.7 |
|
|
|
29.4 |
|
|
|
82.7 |
|
|
|
165.5 |
|
|
Corporate and other expenses |
|
0.7 |
|
|
|
18.6 |
|
|
|
4.1 |
|
|
|
20.5 |
|
|
Net foreign exchange (gains)/losses |
|
4.9 |
|
|
|
(2.7 |
) |
|
|
4.1 |
|
|
|
(6.8 |
) |
|
Financing costs |
|
8.9 |
|
|
|
8.2 |
|
|
|
35.5 |
|
|
|
35.5 |
|
|
Total expenses |
|
427.9 |
|
|
|
294.2 |
|
|
|
1,549.0 |
|
|
|
1,429.3 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
|
125.8 |
|
|
|
134.7 |
|
|
|
2,047.2 |
|
|
|
80.1 |
|
|
Income tax (expense)/benefit |
|
102.5 |
|
|
|
(12.1 |
) |
|
|
85.3 |
|
|
|
(17.8 |
) |
|
Net income |
|
228.3 |
|
|
|
122.6 |
|
|
|
2,132.5 |
|
|
|
62.3 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to non-controlling interests |
|
— |
|
|
|
(2.7 |
) |
|
|
— |
|
|
|
(9.7 |
) |
|
Net income available to common shareholders |
$ |
228.3 |
|
|
$ |
119.9 |
|
|
$ |
2,132.5 |
|
|
$ |
52.6 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income/(loss) |
|
|
|
|
|
|
|
|||||||||
Unrealized gains/(losses) on available-for-sale investments |
$ |
66.9 |
|
|
$ |
14.5 |
|
|
$ |
82.4 |
|
|
$ |
(96.5 |
) |
|
Income tax (expense)/benefit, all of which relates to unrealized gains/(losses) on available-for-sale investments |
|
(8.3 |
) |
|
|
0.7 |
|
|
|
(9.7 |
) |
|
|
8.1 |
|
|
Currency translation adjustments |
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
(1.1 |
) |
|
Total other comprehensive income/(loss) |
|
58.6 |
|
|
|
16.6 |
|
|
|
72.7 |
|
|
|
(89.5 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income/(loss) attributable to common shareholders |
$ |
286.9 |
|
|
$ |
136.5 |
|
|
$ |
2,205.2 |
|
|
$ |
(36.9 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Per share data |
|
|
|
|
|
|
|
|||||||||
Earnings per common share |
|
|
|
|
|
|
|
|||||||||
Earnings per common share |
$ |
1.94 |
|
|
$ |
0.62 |
|
|
$ |
18.65 |
|
|
$ |
0.27 |
|
|
Earnings per diluted common share |
$ |
1.93 |
|
|
$ |
0.60 |
|
|
$ |
18.65 |
|
|
$ |
0.26 |
|
|
Weighted average common shares outstanding |
|
117,914,754 |
|
|
|
194,465,927 |
|
|
|
114,313,971 |
|
|
|
194,290,180 |
|
|
Weighted average diluted common shares outstanding |
|
118,249,860 |
|
|
|
199,412,376 |
|
|
|
114,324,683 |
|
|
|
199,323,854 |
|
Consolidated Segment Data (Unaudited)
For the three and twelve months ended
(Expressed in millions of |
||||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
423.0 |
|
|
$ |
353.2 |
|
|
$ |
7.7 |
|
|
$ |
— |
|
|
$ |
783.9 |
|
|
Net premiums written |
|
307.1 |
|
|
|
226.1 |
|
|
|
16.0 |
|
|
|
— |
|
|
|
549.2 |
|
|
Net premiums earned |
|
335.3 |
|
|
|
95.2 |
|
|
|
77.3 |
|
|
|
— |
|
|
|
507.8 |
|
|
Losses and loss adjustment expenses |
|
(166.7 |
) |
|
|
(19.5 |
) |
|
|
(3.0 |
) |
|
|
— |
|
|
|
(189.2 |
) |
|
Policy acquisition expenses |
|
(61.9 |
) |
|
|
(35.3 |
) |
|
|
(23.4 |
) |
|
|
(77.9 |
) |
|
|
(198.5 |
) |
|
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25.7 |
) |
|
|
(25.7 |
) |
|
Underwriting income |
|
106.7 |
|
|
|
40.4 |
|
|
|
50.9 |
|
|
|
(103.6 |
) |
|
|
94.4 |
|
|
Net realized and unrealized investment gains |
|
|
|
|
|
|
|
|
|
7.3 |
|
|||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
38.7 |
|
|||||||||
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 expense |
|
|
|
|
|
|
|
|
|
102.5 |
|
|||||||||
Net income |
|
|
|
|
|
|
|
|
|
228.3 |
|
|||||||||
Net income attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
— |
|
|||||||||
Net income available to common shareholders |
|
|
|
|
|
|
|
|
$ |
228.3 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(159.1 |
) |
|
|
(25.6 |
) |
|
|
(19.6 |
) |
|
|
|
$ |
(204.3 |
) |
|||
Losses and loss adjustment expenses incurred - prior accident years |
|
(7.6 |
) |
|
|
6.1 |
|
|
|
16.6 |
|
|
|
|
|
15.1 |
|
|||
Losses and loss adjustment expenses incurred - total |
$ |
(166.7 |
) |
|
$ |
(19.5 |
) |
|
$ |
(3.0 |
) |
|
|
|
$ |
(189.2 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting Ratios |
|
|
|
|
|
|
|
|
|
|||||||||||
Loss ratio - current year |
|
47.4 |
% |
|
|
26.9 |
% |
|
|
25.4 |
% |
|
|
|
|
40.3 |
% |
|||
Loss ratio - prior accident years |
|
2.3 |
% |
|
|
(6.4 |
%) |
|
|
(21.5 |
%) |
|
|
|
|
(3.0 |
%) |
|||
Loss ratio - total |
|
49.7 |
% |
|
|
20.5 |
% |
|
|
3.9 |
% |
|
|
|
|
37.3 |
% |
|||
Policy acquisition expense ratio |
|
18.5 |
% |
|
|
37.1 |
% |
|
|
30.3 |
% |
|
|
|
|
23.7 |
% |
|||
Underwriting ratio |
|
68.2 |
% |
|
|
57.6 |
% |
|
|
34.2 |
% |
|
|
|
|
61.0 |
% |
|||
Fidelis MGU commissions ratio |
|
|
|
|
|
|
|
|
|
15.3 |
% |
|||||||||
General & administrative expense ratio |
|
|
|
|
|
|
|
|
|
5.1 |
% |
|||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
81.4 |
% |
|
Three Months Ended |
|||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
|||||||||||
Gross premiums written |
$ |
371.7 |
|
|
$ |
222.7 |
|
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
595.2 |
|
|
Net premiums written |
|
255.4 |
|
|
|
192.8 |
|
|
|
(24.0 |
) |
|
|
— |
|
|
|
424.2 |
|
|
Net premiums earned |
|
251.4 |
|
|
|
105.1 |
|
|
|
51.2 |
|
|
|
— |
|
|
|
407.7 |
|
|
Losses and loss adjustment expenses |
|
(98.8 |
) |
|
|
(23.1 |
) |
|
|
2.3 |
|
|
|
— |
|
|
|
(119.6 |
) |
|
Policy acquisition expenses |
|
(62.3 |
) |
|
|
(40.5 |
) |
|
|
(18.3 |
) |
|
|
— |
|
|
|
(121.1 |
) |
|
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(29.4 |
) |
|
|
(29.4 |
) |
|
Underwriting income |
|
90.3 |
|
|
|
41.5 |
|
|
|
35.2 |
|
|
|
(29.4 |
) |
|
|
137.6 |
|
|
Net realized and unrealized investment gains |
|
|
|
|
|
|
|
|
|
3.8 |
|
|||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
17.1 |
|
|||||||||
Other income |
|
|
|
|
|
|
|
|
|
0.3 |
|
|||||||||
Corporate and other expenses |
|
|
|
|
|
|
|
|
|
(18.6 |
) |
|||||||||
Net foreign exchange gains |
|
|
|
|
|
|
|
|
|
2.7 |
|
|||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(8.2 |
) |
|||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
134.7 |
|
|||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(12.1 |
) |
|||||||||
Net income |
|
|
|
|
|
|
|
|
|
122.6 |
|
|||||||||
Net income attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
(2.7 |
) |
|||||||||
Net income available to common shareholders |
|
|
|
|
|
|
|
|
$ |
119.9 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(101.5 |
) |
|
|
(40.0 |
) |
|
|
18.0 |
|
|
|
|
$ |
(123.5 |
) |
|||
Losses and loss adjustment expenses incurred - prior accident years |
|
2.7 |
|
|
|
16.9 |
|
|
|
(15.7 |
) |
|
|
|
|
3.9 |
|
|||
Losses and loss adjustment expenses incurred - total |
$ |
(98.8 |
) |
|
$ |
(23.1 |
) |
|
$ |
2.3 |
|
|
|
|
$ |
(119.6 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting Ratios |
|
|
|
|
|
|
|
|
|
|||||||||||
Loss ratio - current year |
|
40.4 |
% |
|
|
38.1 |
% |
|
|
(35.2 |
%) |
|
|
|
|
30.3 |
% |
|||
Loss ratio - prior accident years |
|
(1.1 |
%) |
|
|
(16.1 |
%) |
|
|
30.7 |
% |
|
|
|
|
(1.0 |
%) |
|||
Loss ratio - total |
|
39.3 |
% |
|
|
22.0 |
% |
|
|
(4.5 |
%) |
|
|
|
|
29.3 |
% |
|||
Policy acquisition expense ratio |
|
24.8 |
% |
|
|
38.5 |
% |
|
|
35.7 |
% |
|
|
|
|
29.7 |
% |
|||
Underwriting ratio |
|
64.1 |
% |
|
|
60.5 |
% |
|
|
31.2 |
% |
|
|
|
|
59.0 |
% |
|||
General & administrative expense ratio |
|
|
|
|
|
|
|
|
|
7.2 |
% |
|||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
66.2 |
% |
|
Year ended |
|||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
|||||||||||
Gross premiums written |
$ |
2,241.3 |
|
|
$ |
720.4 |
|
|
$ |
617.3 |
|
|
$ |
— |
|
|
$ |
3,579.0 |
|
|
Net premiums written |
|
1,465.5 |
|
|
|
416.0 |
|
|
|
255.1 |
|
|
|
— |
|
|
|
2,136.6 |
|
|
Net premiums earned |
|
1,203.3 |
|
|
|
375.6 |
|
|
|
253.7 |
|
|
|
— |
|
|
|
1,832.6 |
|
|
Losses and loss adjustment expenses |
|
(583.1 |
) |
|
|
(92.0 |
) |
|
|
(23.7 |
) |
|
|
— |
|
|
|
(698.8 |
) |
|
Policy acquisition expenses |
|
(289.1 |
) |
|
|
(140.4 |
) |
|
|
(69.0 |
) |
|
|
(225.3 |
) |
|
|
(723.8 |
) |
|
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(82.7 |
) |
|
|
(82.7 |
) |
|
Underwriting income |
|
331.1 |
|
|
|
143.2 |
|
|
|
161.0 |
|
|
|
(308.0 |
) |
|
|
327.3 |
|
|
Net realized and unrealized investment gains |
|
|
|
|
|
|
|
|
|
4.9 |
|
|||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
119.5 |
|
|||||||||
Other income |
|
|
|
|
|
|
|
|
|
0.1 |
|
|||||||||
Net gain on distribution of Fidelis MGU |
|
|
|
|
|
|
|
|
|
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 expense |
|
|
|
|
|
|
|
|
|
85.3 |
|
|||||||||
Net income |
|
|
|
|
|
|
|
|
|
2,132.5 |
|
|||||||||
Net income attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
— |
|
|||||||||
Net income available to common shareholders |
|
|
|
|
|
|
|
|
$ |
2,132.5 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(542.8 |
) |
|
|
(126.7 |
) |
|
|
(92.2 |
) |
|
|
|
$ |
(761.7 |
) |
|||
Losses and loss adjustment expenses incurred - prior accident years |
|
(40.3 |
) |
|
|
34.7 |
|
|
|
68.5 |
|
|
|
|
|
62.9 |
|
|||
Losses and loss adjustment expenses incurred - total |
$ |
(583.1 |
) |
|
$ |
(92.0 |
) |
|
$ |
(23.7 |
) |
|
|
|
$ |
(698.8 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting Ratios |
|
|
|
|
|
|
|
|
|
|||||||||||
Loss ratio - current year |
|
45.2 |
% |
|
|
33.7 |
% |
|
|
36.3 |
% |
|
|
|
|
41.5 |
% |
|||
Loss ratio - prior accident years |
|
3.3 |
% |
|
|
(9.2 |
%) |
|
|
(27.0 |
%) |
|
|
|
|
(3.4 |
%) |
|||
Loss ratio - total |
|
48.5 |
% |
|
|
24.5 |
% |
|
|
9.3 |
% |
|
|
|
|
38.1 |
% |
|||
Policy acquisition expense ratio |
|
24.0 |
% |
|
|
37.4 |
% |
|
|
27.2 |
% |
|
|
|
|
27.2 |
% |
|||
Underwriting ratio |
|
72.5 |
% |
|
|
61.9 |
% |
|
|
36.5 |
% |
|
|
|
|
65.3 |
% |
|||
Fidelis MGU commissions ratio |
|
|
|
|
|
|
|
|
|
12.3 |
% |
|||||||||
General & administrative expense ratio |
|
|
|
|
|
|
|
|
|
4.5 |
% |
|||||||||
☺Combined ratio |
|
|
|
|
|
|
|
|
|
82.1 |
% |
|
Year ended |
|||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
|||||||||||
Gross premiums written |
$ |
1,616.2 |
|
|
$ |
795.7 |
|
|
$ |
606.2 |
|
|
$ |
— |
|
|
$ |
3,018.1 |
|
|
Net premiums written |
|
1,057.4 |
|
|
|
566.6 |
|
|
|
234.4 |
|
|
|
— |
|
|
|
1,858.4 |
|
|
Net premiums earned |
|
849.4 |
|
|
|
384.4 |
|
|
|
266.7 |
|
|
|
— |
|
|
|
1,500.5 |
|
|
Losses and loss adjustment expenses |
|
(508.7 |
) |
|
|
(118.9 |
) |
|
|
(202.6 |
) |
|
|
— |
|
|
|
(830.2 |
) |
|
Policy acquisition expenses |
|
(189.4 |
) |
|
|
(135.3 |
) |
|
|
(59.7 |
) |
|
|
— |
|
|
|
(384.4 |
) |
|
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(165.5 |
) |
|
|
(165.5 |
) |
|
Underwriting income |
|
151.3 |
|
|
|
130.2 |
|
|
|
4.4 |
|
|
|
(165.5 |
) |
|
|
120.4 |
|
|
Net realized and unrealized investment losses |
|
|
|
|
|
|
|
|
|
(33.7 |
) |
|||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
40.7 |
|
|||||||||
Other income |
|
|
|
|
|
|
|
|
|
1.9 |
|
|||||||||
Corporate and other expenses |
|
|
|
|
|
|
|
|
|
(20.5 |
) |
|||||||||
Net foreign exchange gains |
|
|
|
|
|
|
|
|
|
6.8 |
|
|||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(35.5 |
) |
|||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
80.1 |
|
|||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(17.8 |
) |
|||||||||
Net income |
|
|
|
|
|
|
|
|
|
62.3 |
|
|||||||||
Net income attributable to non-controlling interests |
|
|
|
|
|
|
|
|
|
(9.7 |
) |
|||||||||
Net income available to common shareholders |
|
|
|
|
|
|
|
|
$ |
52.6 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(519.7 |
) |
|
|
(147.8 |
) |
|
|
(184.8 |
) |
|
|
|
$ |
(852.3 |
) |
|||
Losses and loss adjustment expenses incurred - prior accident years |
|
11.0 |
|
|
|
28.9 |
|
|
|
(17.8 |
) |
|
|
|
|
22.1 |
|
|||
Losses and loss adjustment expenses incurred - total |
$ |
(508.7 |
) |
|
$ |
(118.9 |
) |
|
$ |
(202.6 |
) |
|
|
|
$ |
(830.2 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting Ratios |
|
|
|
|
|
|
|
|
|
|||||||||||
Loss ratio - current year |
|
61.2 |
% |
|
|
38.4 |
% |
|
|
69.3 |
% |
|
|
|
|
56.8 |
% |
|||
Loss ratio - prior accident years |
|
(1.3 |
%) |
|
|
(7.5 |
%) |
|
|
6.7 |
% |
|
|
|
|
(1.5 |
%) |
|||
Loss ratio - total |
|
59.9 |
% |
|
|
30.9 |
% |
|
|
76.0 |
% |
|
|
|
|
55.3 |
% |
|||
Policy acquisition expense ratio |
|
22.3 |
% |
|
|
35.2 |
% |
|
|
22.4 |
% |
|
|
|
|
25.6 |
% |
|||
Underwriting ratio |
|
82.2 |
% |
|
|
66.1 |
% |
|
|
98.4 |
% |
|
|
|
|
80.9 |
% |
|||
General & administrative expense ratio |
|
|
|
|
|
|
|
|
|
11.0 |
% |
|||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
91.9 |
% |
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 available to holders of common shares excluding net gain on distribution of Fidelis MGU, 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 (benefit)/expense on these items and the 2023 establishment of a net deferred tax asset related to the implementation of the
Return on average common equity (“ROAE”): represents net income divided by average 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 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 its financial information to more easily analyze the Group’s results in a manner similar to how management analyzes the Group’s underlying business performance. Operating EPS is calculated by dividing operating net income by the diluted weighted average common shares outstanding.
Operating return on opening common equity (“Operating ROE”): is a non-
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 twelve months ended
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
($ in millions) |
|||||||||||||||
Average common shareholders' equity |
$ |
2,305.0 |
|
|
$ |
1,907.3 |
|
|
$ |
2,213.3 |
|
|
$ |
1,995.4 |
|
|
Opening common shareholders' equity |
|
2,160.1 |
|
|
|
1,837.8 |
|
|
|
1,976.8 |
|
|
|
2,013.9 |
|
|
Adjustments related to the Separation Transactions |
|
— |
|
|
|
— |
|
|
|
(178.4 |
) |
|
|
— |
|
|
Adjusted opening common shareholders’ equity |
|
2,160.1 |
|
|
|
1,837.8 |
|
|
|
1,798.4 |
|
|
|
2,013.9 |
|
|
Closing common shareholders' equity |
|
2,449.8 |
|
|
|
1,976.8 |
|
|
|
2,449.8 |
|
|
|
1,976.8 |
|
|
Adjusted average common shareholders' equity |
|
2,305.0 |
|
|
|
1,907.3 |
|
|
|
2,124.1 |
|
|
|
1,995.4 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income available to common shareholders |
|
228.3 |
|
|
|
119.9 |
|
|
|
2,132.5 |
|
|
|
52.6 |
|
|
Adjustment for net gain on distribution of Fidelis MGU |
|
— |
|
|
|
— |
|
|
|
(1,639.1 |
) |
|
|
— |
|
|
Adjustment for net realized and unrealized investment (gains)/losses |
|
(7.3 |
) |
|
|
(3.8 |
) |
|
|
(4.9 |
) |
|
|
33.7 |
|
|
Adjustment for net foreign exchange (gains)/losses |
|
4.9 |
|
|
|
(2.7 |
) |
|
|
4.1 |
|
|
|
(6.8 |
) |
|
Adjustment for corporate and other expenses |
|
0.7 |
|
|
|
18.6 |
|
|
|
4.1 |
|
|
|
20.5 |
|
|
Income tax expense benefit (1) |
|
(91.2 |
) |
|
|
(2.7 |
) |
|
|
(97.8 |
) |
|
|
(10.5 |
) |
|
Operating net income |
$ |
135.4 |
|
|
$ |
129.3 |
|
|
$ |
398.9 |
|
|
$ |
89.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||
ROAE |
|
9.9 |
% |
|
|
6.3 |
% |
|
|
96.3 |
% |
|
|
2.6 |
% |
|
Operating ROE |
|
6.3 |
% |
|
|
7.0 |
% |
|
|
22.2 |
% |
|
|
4.4 |
% |
|
Operating ROAE |
|
5.9 |
% |
|
|
6.8 |
% |
|
|
18.8 |
% |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Operating EPS |
$ |
1.15 |
|
|
$ |
0.65 |
|
|
$ |
3.49 |
|
|
$ |
0.45 |
|
|
(1) Income tax benefit on adjustments to Net income available to common shareholders. The 2023 Income tax benefit includes the establishment of a net deferred tax asset of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229823745/en/
Investor Contact:
(441) 279 2561
miranda.hunter@fidelisinsurance.com
Media Contacts:
44 778 904 0954
James.Dumelow@fidelisinsurance.com
Kekst CNC
Fidelis@kekstcnc.com
Source: