Fidelis hit by California wildfire losses as combined ratio soars
Fidelis Insurance saw its combined ratio surge in Q1 2025 due to California wildfire losses, though new business continued to drive top-line growth.
The Bermuda-based specialty re/insurer reported a $94.5 million underwriting loss and a combined ratio (CoR) of 115.6%, a sharp reversal from a $69.2 million underwriting profit and 85.8% CoR in Q1 2024.
Cat and large losses surged to $333.3 million from $103 million in the prior year period, primarily driven by wildfires.
Its operating loss of $45.3 million included $166.8 million in wildfire claims — at the lower end of guidance — while net loss came in at $42.5 million, a reversal from $81.2 million net income in the first three months of 2024.
Yet gross premiums written (GPW) rose 13.8% year-on-year to $1.72 billion from $1.51 billion.
GPW grew across both segments: insurance climbed to $1.27 billion from $1.19 billion in the prior year, buoyed by new business in asset-backed finance and marine, while reinsurance jumped to $455.9 million, driven by wildfire reinstatement premiums and new business growth.
Investment income also improved, rising to $49.5 million from $41.0 million.
Dan Burrows (pictured), group CEO, said: “During the first quarter, we capitalised on new business opportunities across the portfolio and delivered 14% top-line growth. The strength of our balance sheet also enabled us to repurchase $41.5 million of common shares year-to-date, which at our current valuation, is highly accretive to our book value.
"While our combined ratio and ROAE were impacted by the highest first quarter catastrophe losses in over a decade, the impact of the California wildfires is tracking to the lower end of our expected range. We believe our performance demonstrates the quality of our underlying portfolio and the importance of active exposure management, including the strategic use of outwards reinsurance.
“As we look ahead, we continue to see an attractive trading environment. With our leading position, strong balance sheet, and proactive approach to capital management, we believe we are well-positioned to capitalise on profitable underwriting opportunities, optimise margins, and create long-term value for our shareholders,” he added.
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