Fidelis shrugs off cat losses to increase net income
Fidelis Insurance Group’s third quarter net income jumped 14.7% as the re/insurer benefited from strong investment results and an increase in underwriting income.
The Bermuda-based re/insurer recorded net income of $100.7 million while gross written premiums surged 25% to $741 million and underwriting income rose 39.6% to $67.3 million. The company’s combined ratio increased to 87.4% from 85.4% for the quarter.
Net investment income jumped 57% to $52.1 million while net realised and unrealised losses were $500,000 compared to $5.3 million in the same period in 2023.
“The results of the third quarter once again demonstrate the strength of our business, the steps we have taken to optimise our risk-adjusted returns, and our disciplined approach to capital management,” said Dan Burrows (pictured), group chief executive officer of Fidelis Insurance Group.
“We delivered 25% growth in gross premiums written, a combined ratio of 87.4% and annualized Operating ROAE of 16.4%. In addition, given the strength of our capital position, we have continued to return excess capital to shareholders, including repurchases of $66.8 million of common shares, demonstrating our commitment to enhancing shareholder value.
"Looking ahead, we remain focused on leveraging our scale and positioning, capitalising on our ability to identify compelling opportunities and produce superior underwriting results. We are pleased with the momentum in our business and continue to pursue attractive growth and value creation for shareholders.”
The company said catastrophe and large losses for the third quarter of 2024 were $91.6 million compared to $79.9 million in the prior year period.
Net favourable prior year loss reserve development for the third quarter of 2024 was $10.1 million compared to $43.3 million in the prior year period.
By segment, the company’s specialty segment saw underwriting income drop 7.6% to $67.3 million as a $71.5 million rise in gross written premiums to $398.4 million was offset by a $44 million jump in loss expenses and a $39 million increase in policy acquisition expenses. The losses were attributed to losses from Hurricane Helene and European storm Boris.
The bespoke segment saw underwriting income more than double from $20.7 million to $48.2 million as gross written premiums rose 15% to $185.8 million while losses were slashed to $19.4 million from $43.2 million.
The reinsurance segment enjoyed a 51.6% surge to $157 million in gross written premium while underwriting income rose 14.8% to $84.5 million. Losses rose to $36 million from $10.2 million, primarily from Hurricane Helene.
Commissions paid to The Fidelis Partnership, which was bifurcated from Fidelis last year, rose to $97 million from $70.6 million in 2023 as the full impact of the separation of the businesses came into effect.
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