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Fidelis reports $2.1bn profit

Dan Burrows, group chief executive officer, Fidelis Insurance Holdings Ltd (File photograph)

Fidelis Insurance Holdings Ltd has reported net income of $2.1 billion for its first year as a public company.

The organisation completed an initial public offering on the New York Stock Exchange on July 3, 2023, raising $89.4 million in net proceeds through the issuance of 7,142,857 common shares at $14 per common share.

Fidelis reported fourth quarter net income of $228.3 million and operating net income of $135.4 million.

Net income in Q4 included the establishment of a net deferred tax asset of $90 million related to the enactment of Bermuda’s corporate income tax legislation.

Dan Burrows, group chief executive officer, said: “The fourth quarter was a strong finish to a milestone year for Fidelis in which we became a public company and strengthened our position as a global specialty insurer.

“Utilising our nimble yet disciplined approach, we capitalised on attractive opportunities, achieved strong rate increases, and delivered excellent financial performance, including a combined ratio of 81.4 per cent and annualised operating (return on average equity) of 23.6 per cent in the fourth quarter, as we continued to execute against all aspects of our strategy.”

He added: “We are entering 2024 with strong momentum. Across core lines, we expect hard market conditions to continue, and we remain focused on actively managing our capital to foster sustainable growth and maintain our track record of best in class underwriting performance.

“With our lead market position and balance sheet strength, we are well positioned to continue delivering long-term profitable growth and shareholder value.”

Underwriting income for the fourth quarter was $94.4 million, compared with underwriting income of $137.6 million for the prior year quarter.

Net investment income for the quarter was $38.7 million compared with $17.1 million in the prior year period.

The yearly net income result included a net gain on distribution of Fidelis MGU of $1.639 billion.

Operating net income was $398.9 million.

Underwriting income for the year was $327.3 million with a combined ratio of 82.1 per cent, compared with $120.4 million with a combined ratio of 91.9 per cent for the year ended December 31, 2022.

The company said the improvement was driven by premium growth in its Specialty segment together with significantly lower catastrophe and large losses.

Net investment income of $119.5 million compared with $40.7 million in the prior year.

Gross premiums written in the fourth quarter were $783.9 million, representing growth of 31.7 per cent from the prior year quarter.

Gross premiums written for 2023 were $3.6 billion, growth of 18.6 per cent from full-year 2022.

The company had a full-year combined ratio of 82.1 per cent, an improvement of 9.8 points from full year 2022.

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Published March 03, 2024 at 4:00 pm (Updated March 03, 2024 at 6:56 pm)

Fidelis reports $2.1bn profit

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