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14 August 2025News

Aviation claims dent Fidelis’s Q2 as net profits slide

Bermuda-based re/insurer Fidelis Insurance Group fell short of revenue expectations in Q2, as profits slipped and its combined ratio worsened, hit by litigation tied to Russia-Ukraine aviation losses.

Net profit tumbled to $19.7 million in Q2 2025, from $53.7 million in the same period year-on-year. This has resulted in a disappointing first half result of a $22.8 million net loss, significantly down from the $134.9 million net profit seen in H1 last year. The loss was largely attributed to aviation and aerospace business lines which took a hit due to the Ukraine conflict and subsequent English High Court ruling. 

Consequently, Fidelis’s combined ratio rocketed to 103.7%, compared to 92.7% in Q2, 2025. 

Gross Premiums written stayed steady at $1.22 billion, up from $1.19 billion in the same period as last year, with increased business in asset backed finance & portfolio credit line, and political risk, violence & terror lines of business.

Dan Burrows (pictured), group chief executive officer of Fidelis Insurance Group, commented: “We have continued to successfully execute on our strategy of balancing the pursuit of profitable underwriting opportunities with returning meaningful capital to shareholders. 

“Year-to-date, we grew gross premiums written by 9%, reflecting our focus on targeted deployment of capacity into areas of higher margin in what remains a favourable trading environment. Our exposure to the Russia-Ukraine lessor policy aviation litigation is now firmly behind us, and with any remaining exposure being insignificant, we can now draw a line under this event. Excluding the impact of this litigation, we would be outperforming our through-the-cycle targets with a combined ratio in the mid-70s for the quarter and significantly surpassing our ROAE target.

“With our recently announced expansion of our capital management initiatives, including the $200 million renewal of our share repurchase program and increase in our quarterly dividend to $0.15 per share, we have enhanced flexibility to capitalise on the considerable dislocation in our current share price. By coupling our capital management initiatives with our continued ability to take advantage of accretive growth opportunities and optimise reinsurance purchases, we are confident we will continue delivering attractive returns for our shareholders.”

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