Fidelis posts Q4 loss amid hurricane impact and Russia-Ukraine charge
Bermuda-based specialty re/insurer Fidelis Insurance Holdings reported a net loss in the fourth quarter, primarily due to catastrophe losses from Hurricanes Milton and Helene, along with a charge related to the Russia-Ukraine conflict.
The company posted a net loss of $122.2 million in Q4 2024, a sharp decline from its $228.3 million net profit in the same period of 2023.
Its underwriting loss for Q4 2024 was $177.6 million, which sent up its combined ratio to 128%, compared with underwriting income of $94.4 million and a combined ratio of 81.4% in Q4 2023.
Catastrophe and large losses for the fourth quarter of 2024 were $133.2 million compared with $100.9 million in the prior year period.
Fidelis's fourth-quarter underwriting loss was primarily driven by catastrophe losses from Hurricanes Milton and Helene in property and marine lines of business. Earlier this month, Fidelis announced it had added $287.2 million to its loss reserves related to the stranding of leased commercial aircraft at the outset of Russia’s invasion of Ukraine.
On the positive side, fourth-quarter gross premiums written (GPW) hit $953.7 million — 21.7% up on Q4 2023.
Full-year results
For the full year, Fidelis reported income of $113.3 million compared with $2.1 billion in 2023.
Underwriting income for the full-year 2024, was $8.3 million and the combined ratio was 99.7%, compared with underwriting income of $327.3 million and a combined ratio of 82.1% for FY 2023.
Catastrophe and large losses for the full year were $509 million compared with $288.2 million in 2023.
Again, the positives came from GWP, which hit $4.4 billion in 2023 - a rise of 23%.
Combined ratio for the year was 99.7%, up from 82.1% in 2023.
Reinsurance segment
Fidelis's reinsurance division reported GWP of $31.8 million in Q4 2024 compared with $7.9 million year on year - up 23.9%
For the full year, GWP reached $864.6 million compared with $618.6 million in FY 2023 — up 246%.
Fidelis group CEO Dan Burrows (pictured) highlighted premium growth in what otherwise were a gloomy set of results.
Burrows said: “In 2024, we executed our underwriting strategy with 23% gross premium growth across our portfolio ... As we look ahead, we are well-positioned to drive profitable growth as we capitalise on our market access, the strength of our relationships, and strategic capital management, supported by the strength of our balance sheet.
“By leveraging our differentiated expertise and taking a proactive approach to risk management, we will continue to effectively navigate market challenges, pursue accretive growth opportunities, and deliver sustainable value for our shareholders.”
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