Fidelis Insurance Group Reports 2024 First Quarter Results
First Quarter 2024 Highlights:
-
Gross premiums written of
$1,514.3 million ; growth of 21.6% from the first quarter of 2023 - Combined ratio of 85.8%
- Annualized operating return on opening common equity (“Operating ROE”) of 14.4% and operating return on average common equity (“Operating ROAE”) of 14.0%
-
Net income of
$81.2 million , or$0.69 per diluted common share and operating net income of$87.3 million , or$0.74 per diluted common share -
Book value per diluted common share was
$21.22 atMarch 31, 2024 .
PEMBROKE,
|
As we look ahead to the rest of the year, we will continue to leverage our scale, deep relationships, and lead positioning to further grow our business. Our fundamentals are excellent, we have a strong pipeline of opportunities, and we are leaning in across attractive lines where we expect to generate increased underwriting profitability. Coupled with our proactive and disciplined approach to investment and capital management, we believe we are well positioned to continue delivering compelling returns through the cycle and creating value for our shareholders.”
|
First Quarter Consolidated Results |
-
Net income for the first quarter of 2024 was
$81.2 million , or$0.69 per diluted common share. Operating net income was$87.3 million , or$0.74 per diluted common share. -
Underwriting income for the first quarter of 2024 was
$69.2 million and a combined ratio of 85.8%, compared to underwriting income of$80.6 million and a combined ratio of 79.1% for the first quarter of 2023. -
Net favorable prior year loss reserve development for the first quarter of 2024 was
$67.0 million compared to$2.1 million in the prior year period. -
Net investment income for the first quarter of 2024 was
$41.0 million compared to$20.4 million in the prior year period. Purchased$428.7 million of fixed income securities at an average yield of 4.9% compared to sales of$201.2 million at an average yield of 0.9%. - Operating ROE of 3.6%, or 14.4% annualized, in the quarter compared to 5.2%, or 20.8% annualized in the prior year period.
- Operating ROAE of 3.5%, or 14.0% annualized, in the quarter compared to 5.1%, or 20.4% annualized in the prior year period.
-
Book value per diluted common share was
$21.22 atMarch 31, 2024 .
The following table details key financial indicators in evaluating our performance for the three months ended
|
Three Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions, except for per share data) |
||||||
Net income |
$ |
81.2 |
|
|
$ |
1,732.6 |
|
Earnings per diluted common share |
|
0.69 |
|
|
|
15.64 |
|
Operating net income(1) |
|
87.3 |
|
|
|
93.7 |
|
Operating EPS(1) |
|
0.74 |
|
|
|
0.85 |
|
|
|
|
|
||||
Gross premiums written |
|
1,514.3 |
|
|
|
1,245.3 |
|
Net premiums earned |
|
488.0 |
|
|
|
386.0 |
|
Catastrophe and large losses |
|
103.0 |
|
|
|
22.2 |
|
Net favorable prior-year reserve development |
|
67.0 |
|
|
|
2.1 |
|
Net investment income |
|
41.0 |
|
|
|
20.4 |
|
|
|
|
|
||||
Combined ratio |
|
85.8 |
% |
|
|
79.1 |
% |
Operating ROE(1) |
|
3.6 |
% |
|
|
5.2 |
% |
Operating ROAE(1) |
|
3.5 |
% |
|
|
5.1 |
% |
(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.” |
Segment Results |
Specialty Segment
The following table is a summary of our Specialty segment’s underwriting results:
|
Three Months Ended |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
|
($ in millions) |
||||||||||
Gross premiums written |
$ |
1,034.0 |
|
|
$ |
834.1 |
|
|
$ |
199.9 |
|
Reinsurance premium ceded |
|
(406.3 |
) |
|
|
(341.1 |
) |
|
|
(65.2 |
) |
Net premiums written |
|
627.7 |
|
|
|
493.0 |
|
|
|
134.7 |
|
Net premiums earned |
|
352.2 |
|
|
|
266.2 |
|
|
|
86.0 |
|
Losses and loss adjustment expenses |
|
(174.5 |
) |
|
|
(140.7 |
) |
|
|
(33.8 |
) |
Policy acquisition expenses |
|
(99.8 |
) |
|
|
(66.3 |
) |
|
|
(33.5 |
) |
Underwriting income |
$ |
77.9 |
|
|
$ |
59.2 |
|
|
$ |
18.7 |
|
|
|
|
|
|
|
||||||
Loss ratio |
|
49.5 |
% |
|
|
52.9 |
% |
|
(3.4) pts |
||
Policy acquisition expense ratio |
|
28.3 |
% |
|
|
24.9 |
% |
|
3.4 pts |
||
Underwriting ratio |
|
77.8 |
% |
|
|
77.8 |
% |
|
0.0 pts |
-
For the three months ended
March 31, 2024 , our GPW increased primarily driven by growth from new business and improved rates in our Property D&F, Property and Marine lines of business. - Our NPE increased as the quarter benefited from the earnings from higher net premiums written in the prior year.
- 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 was flat compared to the prior year period.
The following table is a summary of our Specialty segment’s losses and loss adjustment expenses:
|
Three Months Ended |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
|
($ in millions) |
||||||||||
Attritional losses |
$ |
111.0 |
|
|
$ |
91.8 |
|
|
$ |
19.2 |
|
Catastrophe and large losses |
|
97.9 |
|
|
|
18.4 |
|
|
|
79.5 |
|
(Favorable)/adverse prior year development |
|
(34.4 |
) |
|
|
30.5 |
|
|
|
(64.9 |
) |
Losses and loss adjustment expenses |
$ |
174.5 |
|
|
$ |
140.7 |
|
|
$ |
33.8 |
|
|
|
|
|
|
|
||||||
Loss ratio - attritional losses |
|
31.5 |
% |
|
|
34.5 |
% |
|
(3.0) pts |
||
Loss ratio - catastrophe and large losses |
|
27.8 |
% |
|
|
6.9 |
% |
|
20.9 pts |
||
Loss ratio - prior accident years |
|
(9.8 |
)% |
|
|
11.5 |
% |
|
(21.3) pts |
||
Loss ratio |
|
49.5 |
% |
|
|
52.9 |
% |
|
(3.4) pts |
-
For the three months ended
March 31, 2024 , our loss ratio in the Specialty segment improved by 3.4 points. -
The attritional loss ratio in the three months ended
March 31, 2024 improved by 3.0 points compared to the prior year period due to a lower level of small losses in the current year period. -
The large losses in the three months ended
March 31, 2024 included$51.2 million for theBaltimore Bridge collapse in our Marine line of business together with other smaller losses in various lines of business including Aviation and Aerospace, Marine and Property D&F. -
The favorable prior year development for the three months ended
March 31, 2024 was driven primarily by better than expected loss emergence in the Marine and Property D&F lines of business.
Bespoke Segment
The following table is a summary of our Bespoke segment’s underwriting results:
|
Three Months Ended |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
|
($ in millions) |
||||||||||
Gross premiums written |
$ |
153.5 |
|
|
$ |
150.8 |
|
|
$ |
2.7 |
|
Reinsurance premium ceded |
|
(100.7 |
) |
|
|
(69.1 |
) |
|
|
(31.6 |
) |
Net premiums written |
|
52.8 |
|
|
|
81.7 |
|
|
|
(28.9 |
) |
Net premiums earned |
|
89.9 |
|
|
|
91.2 |
|
|
|
(1.3 |
) |
Losses and loss adjustment expenses |
|
(23.4 |
) |
|
|
(13.1 |
) |
|
|
(10.3 |
) |
Policy acquisition expenses |
|
(30.3 |
) |
|
|
(33.3 |
) |
|
|
3.0 |
|
Underwriting income |
$ |
36.2 |
|
|
$ |
44.8 |
|
|
$ |
(8.6 |
) |
|
|
|
|
|
|
||||||
Loss ratio |
|
26.0 |
% |
|
|
14.4 |
% |
|
11.6 pts |
||
Policy acquisition expense ratio |
|
33.7 |
% |
|
|
36.5 |
% |
|
(2.8) pts |
||
Underwriting ratio |
|
59.7 |
% |
|
|
50.9 |
% |
|
8.8 pts |
-
For the three months ended
March 31, 2024 , GPW and NPE remained relatively consistent. - Our policy acquisition expense ratio 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 8.8 points from the prior year period, 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 |
|||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
($ in millions) |
|||||||||
Attritional losses |
$ |
27.5 |
|
|
$ |
18.9 |
|
|
$ |
8.6 |
Large losses |
|
4.2 |
|
|
|
3.0 |
|
|
|
1.2 |
Favorable prior year development |
|
(8.3 |
) |
|
|
(8.8 |
) |
|
|
0.5 |
Losses and loss adjustment expenses |
$ |
23.4 |
|
|
$ |
13.1 |
|
|
$ |
10.3 |
|
|
|
|
|
|
|||||
Loss ratio - attritional losses |
|
30.5 |
% |
|
|
20.7 |
% |
|
9.8 pts |
|
Loss ratio - large losses |
|
4.7 |
% |
|
|
3.3 |
% |
|
1.4 pts |
|
Loss ratio - prior accident years |
|
(9.2 |
)% |
|
|
(9.6 |
)% |
|
0.4 pts |
|
Loss ratio |
|
26.0 |
% |
|
|
14.4 |
% |
|
11.6 pts |
-
For the three months ended
March 31, 2024 , our loss ratio in the Bespoke segment increased driven by higher attritional losses in the current year period. -
The increase in the attritional loss ratio for the three months ended
March 31, 2024 compared to the prior year period was primarily attributable to a single loss of$5 million . -
The favorable prior year development for the three months ended
March 31, 2024 was primarily driven by better than expected loss activity.
Reinsurance Segment
The following table is a summary of our Reinsurance segment’s underwriting results:
|
Three Months Ended |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
|
($ in millions) |
||||||||||
Gross premiums written |
$ |
326.8 |
|
|
$ |
260.4 |
|
|
$ |
66.4 |
|
Reinsurance premium ceded |
|
(229.2 |
) |
|
|
(175.4 |
) |
|
|
(53.8 |
) |
Net premiums written |
|
97.6 |
|
|
|
85.0 |
|
|
|
12.6 |
|
Net premiums earned |
|
45.9 |
|
|
|
28.6 |
|
|
|
17.3 |
|
Losses and loss adjustment expenses |
|
15.6 |
|
|
|
(5.8 |
) |
|
|
21.4 |
|
Policy acquisition expenses |
|
(6.1 |
) |
|
|
(5.4 |
) |
|
|
(0.7 |
) |
Underwriting income |
$ |
55.4 |
|
|
$ |
17.4 |
|
|
$ |
38.0 |
|
|
|
|
|
|
|
||||||
Loss ratio |
|
(34.0 |
)% |
|
|
20.3 |
% |
|
(54.3) pts |
||
Policy acquisition expense ratio |
|
13.3 |
% |
|
|
18.9 |
% |
|
(5.6) pts |
||
Underwriting ratio |
|
(20.7 |
)% |
|
|
39.2 |
% |
|
(59.9) pts |
-
For the three months ended
March 31, 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 period. -
For the three months ended
March 31, 2024 , our policy acquisition expense ratio decreased due to changes in the mix of business written and ceded, and commissions earned from reinsurance partners. -
For the three months ended
March 31, 2024 , our underwriting ratio in the Reinsurance segment improved by 59.9 points from the prior year period, primarily driven by a decrease in our loss ratio.
The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:
|
Three Months Ended |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
|
($ in millions) |
||||||||||
Attritional losses |
$ |
7.8 |
|
|
$ |
28.8 |
|
|
$ |
(21.0 |
) |
Catastrophe and large losses |
|
0.9 |
|
|
|
0.8 |
|
|
|
0.1 |
|
Favorable prior year development |
|
(24.3 |
) |
|
|
(23.8 |
) |
|
|
(0.5 |
) |
Losses and loss adjustment expenses |
$ |
(15.6 |
) |
|
$ |
5.8 |
|
|
$ |
(21.4 |
) |
|
|
|
|
|
|
||||||
Loss ratio - attritional losses |
|
16.9 |
% |
|
|
100.7 |
% |
|
(83.8) pts |
||
Loss ratio - catastrophe and large losses |
|
2.0 |
% |
|
|
2.8 |
% |
|
(0.8) pts |
||
Loss ratio - prior accident years |
|
(52.9 |
)% |
|
|
(83.2 |
)% |
|
30.3 pts |
||
Loss ratio |
|
(34.0 |
)% |
|
|
20.3 |
% |
|
(54.3) pts |
-
For the three months ended
March 31, 2024 , our loss ratio in the Reinsurance segment improved by 54.3 points from the prior year period, driven by a reduction in attritional losses. -
The attritional loss ratio in the three months ended
March 31, 2024 was 83.8 points lower than the prior year period. The prior year period was impacted by southern hemisphere storm and flood losses, whereas the current year period saw a very low level of loss activity. -
For the three months ended
March 31, 2024 , favorable prior year development was driven by benign prior year attritional experience.
Other Underwriting Expenses |
We do not allocate
The Fidelis Partnership Commissions
For the three months ended
The following table summarizes
|
Three Months Ended |
||||
|
|
2024 |
|
|
2023 |
|
($ in millions) |
||||
Ceding commission expense |
$ |
67.7 |
|
$ |
12.1 |
Profit commission expense |
|
9.0 |
|
|
12.1 |
Total commissions |
$ |
76.7 |
|
$ |
24.2 |
General and Administrative Expenses
For the three months ended
Investments |
|
Three Months Ended |
|||||
|
|
2024 |
|
|
|
2023 |
|
($ in millions) |
|||||
Net realized and unrealized investment gains/(losses) |
$ |
(9.0 |
) |
|
$ |
2.8 |
Net investment income |
|
41.0 |
|
|
|
20.4 |
Net investment return |
$ |
32.0 |
|
|
$ |
23.2 |
Net Realized and Unrealized Investment Gains/(Losses)
The net realized and unrealized investment losses in the three months ended
Net Investment Income
The increase in our net investment income in the three months ended
Conference Call
Fidelis will host a teleconference to discuss its financial results on
About
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
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
Consolidated Balance Sheets
At
(Expressed in millions of |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: |
$ |
3,227.1 |
|
|
$ |
3,244.9 |
|
Short-term investments, available-for-sale, at fair value (amortized cost: |
|
76.3 |
|
|
|
49.0 |
|
Other investments, at fair value (amortized cost: |
|
47.0 |
|
|
|
47.5 |
|
Total investments |
|
3,350.4 |
|
|
|
3,341.4 |
|
Cash and cash equivalents |
|
671.7 |
|
|
|
712.4 |
|
Restricted cash and cash equivalents |
|
220.5 |
|
|
|
251.7 |
|
Accrued investment income |
|
22.8 |
|
|
|
27.2 |
|
Premiums and other receivables (net of allowances for credit losses of |
|
2,836.6 |
|
|
|
2,209.3 |
|
Amounts due from |
|
222.1 |
|
|
|
173.3 |
|
Deferred reinsurance premiums |
|
1,469.2 |
|
|
|
1,061.4 |
|
Reinsurance balances recoverable on paid losses (net of allowances for credit losses of $nil, 2023: $nil) |
|
193.0 |
|
|
|
182.7 |
|
Reinsurance balances recoverable on reserves for losses and loss adjustment expenses (net of allowances for credit losses of |
|
1,135.2 |
|
|
|
1,108.6 |
|
Deferred policy acquisition costs (includes |
|
959.9 |
|
|
|
786.6 |
|
Other assets |
|
185.3 |
|
|
|
173.5 |
|
Total assets |
$ |
11,266.7 |
|
|
$ |
10,028.1 |
|
Liabilities and shareholders' equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Reserves for losses and loss adjustment expenses |
$ |
2,541.1 |
|
|
$ |
2,448.9 |
|
Unearned premiums |
|
3,846.2 |
|
|
|
3,149.5 |
|
Reinsurance balances payable |
|
1,414.4 |
|
|
|
1,071.5 |
|
Amounts due to |
|
334.6 |
|
|
|
334.5 |
|
Long term debt |
|
448.4 |
|
|
|
448.2 |
|
Preference securities ( |
|
58.4 |
|
|
|
58.4 |
|
Other liabilities |
|
106.5 |
|
|
|
67.3 |
|
Total liabilities |
|
8,749.6 |
|
|
|
7,578.3 |
|
Commitments and contingencies |
|
|
|
||||
Shareholders' equity |
|
|
|
||||
Common shares ( |
|
1.2 |
|
|
|
1.2 |
|
Additional paid-in capital |
|
2,042.1 |
|
|
|
2,039.0 |
|
Accumulated other comprehensive loss |
|
(27.2 |
) |
|
|
(27.0 |
) |
Retained earnings |
|
506.0 |
|
|
|
436.6 |
|
Common shares held in treasury, at cost (shares held: 357,602, 2023: nil) |
|
(5.0 |
) |
|
|
— |
|
Total shareholders' equity |
|
2,517.1 |
|
|
|
2,449.8 |
|
Total liabilities and shareholders' equity |
$ |
11,266.7 |
|
|
$ |
10,028.1 |
|
Consolidated Statements of Income and Comprehensive Income (Unaudited)
For the three months ended
(Expressed in millions of |
||||||||
|
Three Months Ended |
|
||||||
|
|
|
|
|
||||
Revenues |
|
|
|
|
||||
Gross premiums written |
$ |
1,514.3 |
|
|
$ |
1,245.3 |
|
|
Reinsurance premiums ceded |
|
(736.2 |
) |
|
|
(585.6 |
) |
|
Net premiums written |
|
778.1 |
|
|
|
659.7 |
|
|
Change in net unearned premiums |
|
(290.1 |
) |
|
|
(273.7 |
) |
|
Net premiums earned |
|
488.0 |
|
|
|
386.0 |
|
|
Net realized and unrealized investment gains/(losses) |
|
(9.0 |
) |
|
|
2.8 |
|
|
Net investment income |
|
41.0 |
|
|
|
20.4 |
|
|
Other income |
|
— |
|
|
|
3.5 |
|
|
Total revenues before net gain on distribution of |
|
520.0 |
|
|
|
412.7 |
|
|
Net gain on distribution of |
|
— |
|
|
|
1,639.1 |
|
|
Total revenues |
|
520.0 |
|
|
|
2,051.8 |
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
||||
Losses and loss adjustment expenses |
|
182.3 |
|
|
|
159.6 |
|
|
Policy acquisition expenses (includes |
|
212.9 |
|
|
|
129.2 |
|
|
General and administrative expenses |
|
23.6 |
|
|
|
16.6 |
|
|
Corporate and other expenses |
|
— |
|
|
|
1.5 |
|
|
Net foreign exchange (gains)/losses |
|
(2.5 |
) |
|
|
1.5 |
|
|
Financing costs |
|
8.6 |
|
|
|
8.6 |
|
|
Total expenses |
|
424.9 |
|
|
|
317.0 |
|
|
|
|
|
|
|
||||
Income before income taxes |
|
95.1 |
|
|
|
1,734.8 |
|
|
Income tax expense |
|
(13.9 |
) |
|
|
(2.2 |
) |
|
Net income |
|
81.2 |
|
|
|
1,732.6 |
|
|
|
|
|
|
|
||||
Other comprehensive income/(loss) |
|
|
|
|
||||
Unrealized gains/(losses) on available-for-sale investments |
$ |
(8.2 |
) |
|
$ |
24.9 |
|
|
Reclassification of net realized losses recognized in net income |
|
7.4 |
|
|
|
— |
|
|
Income tax (expense)/benefit, all of which relates to unrealized gains/(losses) on available-for-sale investments |
|
0.6 |
|
|
|
(2.0 |
) |
|
Total other comprehensive income/(loss) |
|
(0.2 |
) |
|
|
22.9 |
|
|
|
|
|
|
|
||||
Comprehensive income |
$ |
81.0 |
|
|
$ |
1,755.5 |
|
|
|
|
|
|
|
||||
Per share data |
|
|
|
|
||||
Earnings per common share |
|
|
|
|
||||
Earnings per common share |
$ |
0.69 |
|
|
$ |
15.64 |
|
|
Earnings per diluted common share |
$ |
0.69 |
|
|
$ |
15.64 |
|
|
Weighted average common shares outstanding |
|
117,658,016 |
|
|
|
110,771,897 |
|
|
Weighted average diluted common shares outstanding |
|
118,348,384 |
|
|
|
110,771,897 |
|
|
Consolidated Segment Data (Unaudited)
For the three months ended
(Expressed in millions of |
|||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
1,034.0 |
|
|
$ |
153.5 |
|
|
$ |
326.8 |
|
|
$ |
— |
|
|
$ |
1,514.3 |
|
Net premiums written |
|
627.7 |
|
|
|
52.8 |
|
|
|
97.6 |
|
|
|
— |
|
|
|
778.1 |
|
Net premiums earned |
|
352.2 |
|
|
|
89.9 |
|
|
|
45.9 |
|
|
|
— |
|
|
|
488.0 |
|
Losses and loss adjustment expenses |
|
(174.5 |
) |
|
|
(23.4 |
) |
|
|
15.6 |
|
|
|
— |
|
|
|
(182.3 |
) |
Policy acquisition expenses |
|
(99.8 |
) |
|
|
(30.3 |
) |
|
|
(6.1 |
) |
|
|
(76.7 |
) |
|
|
(212.9 |
) |
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(23.6 |
) |
|
|
(23.6 |
) |
Underwriting income |
|
77.9 |
|
|
|
36.2 |
|
|
|
55.4 |
|
|
|
(100.3 |
) |
|
|
69.2 |
|
Net realized and unrealized investment losses |
|
|
|
|
|
|
|
|
|
(9.0 |
) |
||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
41.0 |
|
||||||||
Net foreign exchange gains |
|
|
|
|
|
|
|
|
|
2.5 |
|
||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(8.6 |
) |
||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
95.1 |
|
||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(13.9 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
$ |
81.2 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(208.9 |
) |
|
|
(31.7 |
) |
|
|
(8.7 |
) |
|
|
|
$ |
(249.3 |
) |
||
Losses and loss adjustment expenses incurred - prior accident years |
|
34.4 |
|
|
|
8.3 |
|
|
|
24.3 |
|
|
|
|
|
67.0 |
|
||
Losses and loss adjustment expenses incurred - total |
$ |
(174.5 |
) |
|
$ |
(23.4 |
) |
|
$ |
15.6 |
|
|
|
|
$ |
(182.3 |
) |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting Ratios(1) |
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio - current year |
|
59.3 |
% |
|
|
35.2 |
% |
|
|
18.9 |
% |
|
|
|
|
51.1 |
% |
||
Loss ratio - prior accident years |
|
(9.8 |
%) |
|
|
(9.2 |
%) |
|
|
(52.9 |
%) |
|
|
|
|
(13.7 |
%) |
||
Loss ratio - total |
|
49.5 |
% |
|
|
26.0 |
% |
|
|
(34.0 |
%) |
|
|
|
|
37.4 |
% |
||
Policy acquisition expense ratio |
|
28.3 |
% |
|
|
33.7 |
% |
|
|
13.3 |
% |
|
|
|
|
27.9 |
% |
||
Underwriting ratio |
|
77.8 |
% |
|
|
59.7 |
% |
|
|
(20.7 |
%) |
|
|
|
|
65.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
15.7 |
% |
||||||||
General and administrative expense ratio |
|
|
|
|
|
|
|
|
|
4.8 |
% |
||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
85.8 |
% |
||||||||
________________ |
|||||||||||||||||||
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
|
Three Months Ended |
||||||||||||||||||
|
Specialty |
|
Bespoke |
|
Reinsurance |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
834.1 |
|
|
$ |
150.8 |
|
|
$ |
260.4 |
|
|
$ |
— |
|
|
$ |
1,245.3 |
|
Net premiums written |
|
493.0 |
|
|
|
81.7 |
|
|
|
85.0 |
|
|
|
— |
|
|
|
659.7 |
|
Net premiums earned |
|
266.2 |
|
|
|
91.2 |
|
|
|
28.6 |
|
|
|
— |
|
|
|
386.0 |
|
Losses and loss adjustment expenses |
|
(140.7 |
) |
|
|
(13.1 |
) |
|
|
(5.8 |
) |
|
|
— |
|
|
|
(159.6 |
) |
Policy acquisition expenses |
|
(66.3 |
) |
|
|
(33.3 |
) |
|
|
(5.4 |
) |
|
|
(24.2 |
) |
|
|
(129.2 |
) |
General and administrative expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16.6 |
) |
|
|
(16.6 |
) |
Underwriting income |
|
59.2 |
|
|
|
44.8 |
|
|
|
17.4 |
|
|
|
(40.8 |
) |
|
|
80.6 |
|
Net realized and unrealized investment gains |
|
|
|
|
|
|
|
|
|
2.8 |
|
||||||||
Net investment income |
|
|
|
|
|
|
|
|
|
20.4 |
|
||||||||
Other income |
|
|
|
|
|
|
|
|
|
3.5 |
|
||||||||
Net gain on distribution of |
|
|
|
|
|
|
|
|
|
1,639.1 |
|
||||||||
Corporate and other expenses |
|
|
|
|
|
|
|
|
|
(1.5 |
) |
||||||||
Net foreign exchange losses |
|
|
|
|
|
|
|
|
|
(1.5 |
) |
||||||||
Financing costs |
|
|
|
|
|
|
|
|
|
(8.6 |
) |
||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
1,734.8 |
|
||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
(2.2 |
) |
||||||||
Net income |
|
|
|
|
|
|
|
|
$ |
1,732.6 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses incurred - current year |
|
(110.2 |
) |
|
|
(21.9 |
) |
|
|
(29.6 |
) |
|
|
|
$ |
(161.7 |
) |
||
Losses and loss adjustment expenses incurred - prior accident years |
|
(30.5 |
) |
|
|
8.8 |
|
|
|
23.8 |
|
|
|
|
|
2.1 |
|
||
Losses and loss adjustment expenses incurred - total |
$ |
(140.7 |
) |
|
$ |
(13.1 |
) |
|
$ |
(5.8 |
) |
|
|
|
$ |
(159.6 |
) |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting Ratios(1) |
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio - current year |
|
41.4 |
% |
|
|
24.0 |
% |
|
|
103.5 |
% |
|
|
|
|
41.8 |
% |
||
Loss ratio - prior accident years |
|
11.5 |
% |
|
|
(9.6 |
%) |
|
|
(83.2 |
%) |
|
|
|
|
(0.5 |
%) |
||
Loss ratio - total |
|
52.9 |
% |
|
|
14.4 |
% |
|
|
20.3 |
% |
|
|
|
|
41.3 |
% |
||
Policy acquisition expense ratio |
|
24.9 |
% |
|
|
36.5 |
% |
|
|
18.9 |
% |
|
|
|
|
27.2 |
% |
||
Underwriting ratio |
|
77.8 |
% |
|
|
50.9 |
% |
|
|
39.2 |
% |
|
|
|
|
68.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
6.3 |
% |
||||||||
General and administrative expense ratio |
|
|
|
|
|
|
|
|
|
4.3 |
% |
||||||||
Combined ratio |
|
|
|
|
|
|
|
|
|
79.1 |
% |
||||||||
________________ |
|||||||||||||||||||
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
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
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 months ended
|
Three Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
($ in millions) |
||||||
Average common shareholders' equity |
$ |
2,483.5 |
|
|
$ |
1,940.7 |
|
Opening common shareholders' equity |
|
2,449.8 |
|
|
|
1,976.8 |
|
Adjustments related to the Separation Transactions |
|
— |
|
|
|
(178.4 |
) |
Adjusted opening common shareholders’ equity |
|
2,449.8 |
|
|
|
1,798.4 |
|
Closing common shareholders' equity |
|
2,517.1 |
|
|
|
1,904.5 |
|
Adjusted average common shareholders' equity |
|
2,483.5 |
|
|
|
1,851.5 |
|
|
|
|
|
||||
Net income |
|
81.2 |
|
|
|
1,732.6 |
|
Adjustment for net gain on distribution of |
|
— |
|
|
|
(1,639.1 |
) |
Adjustment for net realized and unrealized investment (gains)/losses |
|
9.0 |
|
|
|
(2.8 |
) |
Adjustment for net foreign exchange (gains)/losses |
|
(2.5 |
) |
|
|
1.5 |
|
Adjustment for corporate and other expenses |
|
— |
|
|
|
1.5 |
|
Income tax effect of the above items |
|
(0.4 |
) |
|
|
— |
|
Operating net income |
$ |
87.3 |
|
|
$ |
93.7 |
|
|
|
|
|
||||
ROAE |
|
3.3 |
% |
|
|
89.3 |
% |
Operating ROE |
|
3.6 |
% |
|
|
5.2 |
% |
Operating ROAE |
|
3.5 |
% |
|
|
5.1 |
% |
|
|
|
|
||||
Operating EPS |
$ |
0.74 |
|
|
$ |
0.85 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509912411/en/
Fidelis Insurance Group Investor Contact:
(441) 279 2561
miranda.hunter@fidelisinsurance.com
Fidelis Insurance Group Media Contacts:
Kekst CNC
Fidelis@kekstcnc.com
Source: