Half Year 2023 Highlights:
- Gross premiums written of $2.2 billion; growth of 27.0% from
the 2022 first half
- Combined ratio of 80.6%; improvement of 8.4 points from the
2022 first half
- Annualized operating return on average common equity of 18.2%
for 2023 first half
- IPO completed on the NYSE on July 3, 2023, raising $89.4
million in net proceeds through the issuance of 7,142,857 common
shares at $14.00 per common share.
Second Quarter 2023 Highlights:
- Gross premiums written of $957.2 million; growth of 25.3% from
Q2 2022
- Combined ratio of 82.0%; improvement of 8.5 points from Q2
2022
- Annualized operating return on average common equity of 17.6%
for Q2 2023
- Net income of $83.9 million, or $0.76 per diluted common
share
Fidelis Insurance Holdings Limited (“Fidelis” or “FIHL” or "the
Group") (NYSE: FIHL) announced today financial results for the
second quarter ended June 30, 2023.
“It is an extremely exciting time for Fidelis Insurance Group
and I’m delighted to present to you our first earnings release as a
public company. Our second quarter results are a testament to the
strength of our business model and the continued execution of our
strategy and our ability to generate value for our shareholders.
Our second quarter gross premiums written and combined ratio
demonstrate our ability to capitalize on opportunities driven by
favorable market conditions whilst remaining disciplined in our
underwriting approach. Our half year results have delivered an
80.6% combined ratio which represents annualized Operating ROAE of
18.2%. Against a backdrop of high industry losses, our focus is on
profitable growth with reduced volatility, resulting in attractive
ROEs over the market cycle,” said Dan Burrows, Group Chief
Executive Officer.
Richard Brindle Chairman and CEO of the Fidelis MGU added, “The
timing of the separation of our companies has been excellent, as it
coincides with a broad based hardening of both insurance and
reinsurance markets. For me and my team, the ability to focus all
our attention on underwriting opportunities, developing new
products and widening our distribution is really energising. We
know that Fidelis Insurance Group are doing a great job managing
the capital and the investors, enabling us to grow the business and
optimise our underwriting. The alignment between Fidelis MGU and
Fidelis Insurance Group is working as designed, and we congratulate
Dan and the team on their successful IPO.”
Second Quarter Consolidated
Results
- Net income available to common shareholders for the second
quarter of 2023 was $83.9 million, or $0.76 per diluted common
share, compared to net income available to common shareholders of
$8.4 million, or $0.04 per diluted common share, for the second
quarter of 2022.
- Underwriting income for the second quarter of 2023 was $77.5
million and a combined ratio of 82.0%, compared to $32.0 million
and a combined ratio of 90.5% for the second quarter of 2022, the
improvement was driven by continued premium growth in Specialty,
reducing our exposure in the Reinsurance property catastrophe line
of business and lower catastrophe and large losses.
- Net favorable prior year loss reserve development of $2.4
million compared to $10.9 million in the prior year period.
- Net investment income of $27.3 million compared to $7.4 million
in the prior year period.
- Operating ROAE increased to 4.4%, or 17.6% annualized, in the
quarter from 1.0%, or 4.0% annualized, a year ago, driven by
significant increases in both underwriting income and investment
income.
- Book value per diluted common share was $17.86 at June 30,
2023, an increase of 3.9%, compared to March 31, 2023, driven by
net income.
Year to Date Consolidated
Results
- Net income available to common shareholders for the six months
ended June 30, 2023 was $1,816.5 million, or $16.40 per diluted
common share, which includes a net gain on distribution of Fidelis
MGU of $1,639.1 million. Excluding the net gain on distribution of
Fidelis MGU, our net income for the six months ended June 30, 2023
was $177.4 million. This compares to net income available to common
shareholders of $25.4 million, or $0.13 per diluted common share,
for the six months ended June 30, 2022.
- Underwriting income for the six months ended June 30, 2023 was
$158.1 million and a combined ratio of 80.6%, compared to $72.2
million and a combined ratio of 89.0% for the six months ended June
30, 2022, with the improvement driven by continued premium earnings
growth and profitability in our Specialty segment, and lower
catastrophe and large losses.
- Net favorable prior year loss reserve development of $4.5
million compared to $15.5 million in the prior year period.
- Net investment income of $47.7 million compared to $12.5
million in the prior year period.
- Operating ROAE increased to 9.1%, or 18.2% annualized, in the
six months ended June 30, 2023, from 2.4% or 4.8% annualized, in
the six months ended June 30, 2022, driven by significant increases
in both underwriting income and investment income.
- Book value per diluted common share was $17.86 at June 30,
2023, an increase of 10.0% from the adjusted book value per diluted
common share at the time of the Separation Transaction, which was
completed on January 3, 2023, driven by net income and net
unrealized gains reported in other comprehensive income.
The following table details key financial indicators in
evaluating our performance for the three and six months ended June
30, 2023 and 2022:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
($ in millions, except for per
share data )
Net income available to common
shareholders
$
83.9
$
8.4
$
1,816.5
$
25.4
Earnings per diluted common share
0.76
0.04
16.39
0.13
Net premiums earned
429.1
337.4
815.1
659.2
Catastrophe and large losses
63.7
80.2
63.7
144.3
Net favorable prior year reserve
development
2.4
10.9
4.5
15.5
Net investment income
27.3
7.4
47.7
12.5
Net investment gains/(losses)
$
0.1
$
(15.0
)
$
2.9
$
(25.2
)
Combined ratio
82.0
%
90.5
%
80.6
%
89.0
%
Operating ROAE(1)
4.4
%
1.0
%
9.1
%
2.4
%
(1) Operating ROAE is a non-GAAP financial
measure. See definition and reconciliation in “Non-GAAP Financial
Measures.”
Segment Results
Specialty Segment
The following table is a summary of our Specialty segment’s
underwriting results:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
($ in millions)
Gross premiums written
$
657.3
$
373.0
$
284.3
$
1,491.4
$
916.8
$
574.6
Reinsurance premium ceded
(195.5
)
(107.4
)
(88.1
)
(536.6
)
(340.5
)
(196.1
)
Net premiums written
461.8
265.6
196.2
954.8
576.3
378.5
Net premiums earned
307.2
199.8
107.4
573.4
380.3
193.1
Losses and loss adjustment expenses
(137.4
)
(137.7
)
0.3
(278.1
)
(231.1
)
(47.0
)
Policy acquisition expenses
(77.5
)
(43.7
)
(33.8
)
(143.8
)
(79.0
)
(64.8
)
Underwriting income
$
92.3
$
18.4
$
73.9
$
151.5
$
70.2
$
81.3
Loss ratio
44.7
%
68.9
%
(24.2) pts
48.5
%
60.8
%
(12.3) pts
Policy acquisition expense ratio
25.2
%
21.9
%
3.3 pts
25.1
%
20.8
%
4.3 pts
Underwriting ratio
69.9
%
90.8
%
(20.9) pts
73.6
%
81.6
%
(8.0) pts
For the three and six months ended June 30, 2023, our
underwriting ratio in the Specialty segment improved by 20.9 and
8.0 points, respectively, from the prior year periods, which was
primarily driven by a decrease in our loss ratio together with rate
increases and improved pricing and terms and conditions.
For the three and six months ended June 30, 2023, net premiums
earned increased primarily driven by an increase in gross and net
premiums written as a result of new business and rate increases in
the Marine, Property D&F and Aviation and Aerospace lines of
business.
The following table is a summary of our Specialty segment’s
losses and loss adjustment expenses:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
($ in millions)
Attritional losses
$
77.3
$
63.3
$
14.0
$
187.5
$
130.6
$
56.9
Catastrophe and large losses
55.2
68.6
(13.4
)
55.2
100.1
(44.9
)
Adverse prior year development
4.9
5.8
(0.9
)
35.4
0.4
35.0
Losses and loss adjustment expenses
$
137.4
$
137.7
$
(0.3
)
$
278.1
$
231.1
$
47.0
Loss ratio - current year
43.1
%
66.0
%
(22.9) pts
42.3
%
60.7
%
(18.4) pts
Loss ratio - prior accident years
1.6
%
2.9
%
(1.3) pts
6.2
%
0.1
%
6.1 pts
Loss ratio
44.7
%
68.9
%
(24.2) pts
48.5
%
60.8
%
(12.3) pts
For the three and six months ended June 30, 2023, our loss ratio
in the Specialty segment decreased by 24.2 and 12.3 points,
respectively.
The catastrophe and large losses in the three and six months
ended June 30, 2023 related to our Aviation and Aerospace line of
business which included losses related to the Sudan conflict, and
our Property D&F line of business where we experienced losses
from severe convective storms in the U.S. This compared to prior
year period catastrophe and large losses related to the ongoing
invasion of Ukraine by Russia (the “Ukraine Conflict”) and the
Property D&F line of business.
The adverse prior year development for the three months ended
June 30, 2023 primarily related to deterioration in the loss from
Winter Storm Elliott in the Property D&F line of business.
The adverse prior year development for the six months ended June
30, 2023 related primarily to increased estimates on two contracts
in the Energy line of business, Winter Storm Elliot in the Property
D&F line of business, as well as updated legal expense
provisions in the reserve for the Ukraine Conflict in the Aviation
and Aerospace line of business.
Bespoke Segment
The following table is a summary of our Bespoke segment’s
underwriting results:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
($ in millions)
Gross premiums written
$
54.7
$
163.1
$
(108.4
)
$
205.5
$
298.1
$
(92.6
)
Reinsurance premium ceded
(24.6
)
(106.0
)
81.4
(93.7
)
(149.5
)
55.8
Net premiums written
30.1
57.1
(27.0
)
111.8
148.6
(36.8
)
Net premiums earned
90.4
87.6
2.8
181.6
174.8
6.8
Losses and loss adjustment expenses
(16.2
)
(19.7
)
3.5
(29.3
)
(63.2
)
33.9
Policy acquisition expenses
(36.9
)
(32.4
)
(4.5
)
(70.2
)
(56.0
)
(14.2
)
Underwriting income
$
37.3
$
35.5
$
1.8
$
82.1
$
55.6
$
26.5
Loss ratio
17.9
%
22.5
%
(4.6) pts
16.1
%
36.2
%
(20.1) pts
Policy acquisition expense ratio
40.8
%
37.0
%
3.8 pts
38.7
%
32.0
%
6.7 pts
Underwriting ratio
58.7
%
59.5
%
(0.8) pts
54.8
%
68.2
%
(13.4) pts
For the three and six months ended June 30, 2023, our
underwriting ratio in the Bespoke segment improved by 0.8 and 13.4
points, respectively, from the prior year periods, which was
primarily driven by a decrease in our loss ratio.
For the three and six months ended June 30, 2023, gross premiums
written decreased as the result of the timing of new contracts and
renewals. Gross premiums written in Bespoke can fluctuate on a
quarterly basis due to the timing and selection of the contracts we
underwrite.
The following table is a summary of our Bespoke segment’s losses
and loss adjustment expenses:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
($ in millions)
Attritional losses
$
23.6
$
25.6
$
(2.0
)
$
45.5
$
51.4
$
(5.9
)
Large losses
0.1
1.8
(1.7
)
0.1
20.0
(19.9
)
Favorable prior year development
(7.5
)
(7.7
)
0.2
(16.3
)
(8.2
)
(8.1
)
Losses and loss adjustment expenses
$
16.2
$
19.7
$
(3.5
)
$
29.3
$
63.2
$
(33.9
)
Loss ratio - current year
26.2
%
31.3
%
(5.1) pts
25.1
%
40.9
%
(15.8) pts
Loss ratio - prior accident years
(8.3
)%
(8.8
)%
0.5 pts
(9.0
)%
(4.7
)%
(4.3) pts
Loss ratio
17.9
%
22.5
%
(4.6) pts
16.1
%
36.2
%
(20.1) pts
For the three months ended June 30, 2023, our loss ratio in the
Bespoke segment decreased driven by lower attritional and large
losses compared to the prior year period.
For the six months ended June 30, 2023, our loss ratio decreased
driven by lower large losses compared to the prior year period
where we reserved for potential exposures related to the Ukraine
Conflict. The decrease is also a result of higher favorable prior
year development in the current year period.
The favorable prior year development for the three and six
months ended June 30, 2023 primarily related to lower loss
experience than our assumptions made allowance for.
Reinsurance Segment
The following table is a summary of our Reinsurance segment’s
underwriting results:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
($ in millions)
Gross premiums written
$
245.2
$
228.0
$
17.2
$
505.6
$
519.9
$
(14.3
)
Reinsurance premium ceded
(122.0
)
(96.3
)
(25.7
)
(297.4
)
(305.1
)
7.7
Net premiums written
123.2
131.7
(8.5
)
208.2
214.8
(6.6
)
Net premiums earned
31.5
50.0
(18.5
)
60.1
104.1
(44.0
)
Losses and loss adjustment expenses
(4.7
)
(23.0
)
18.3
(10.5
)
(64.5
)
54.0
Policy acquisition expenses
(7.7
)
(7.0
)
(0.7
)
(13.1
)
(15.8
)
2.7
Underwriting income
$
19.1
$
20.0
$
(0.9
)
$
36.5
$
23.8
$
12.7
Loss ratio
14.9
%
46.0
%
(31.1) pts
17.5
%
62.0
%
(44.5) pts
Policy acquisition expense ratio
24.4
%
14.0
%
10.4 pts
21.8
%
15.2
%
6.6 pts
Underwriting ratio
39.3
%
60.0
%
(20.7) pts
39.3
%
77.2
%
(37.9) pts
For the three and six months ended June 30, 2023, our
underwriting ratio in the Reinsurance segment improved by 20.7 and
37.9 points, respectively, from the prior year periods, which was
primarily driven by a decrease in our loss ratio, partially offset
by an increase in our policy acquisition expense ratio.
For the three and six months ended June 30, 2023 net premiums
earned decreased driven by a decrease in net premiums written in
2022, resulting in lower earnings from contracts that incepted in
prior years.
The following table is a summary of our Reinsurance segment’s
losses and loss adjustment expenses:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
($ in millions)
Attritional losses
$
(3.9
)
$
22.2
$
(26.1
)
$
25.7
$
48.0
$
(22.3
)
Catastrophe and large losses
8.4
9.8
(1.4
)
8.4
24.2
(15.8
)
(Favorable)/adverse prior year
development
0.2
(9.0
)
9.2
(23.6
)
(7.7
)
(15.9
)
Losses and loss adjustment expenses
$
4.7
$
23.0
$
(18.3
)
$
10.5
$
64.5
$
(54.0
)
Loss ratio - current year
14.3
%
64.0
%
(49.7) pts
56.8
%
69.4
%
(12.6) pts
Loss ratio - prior accident years
0.6
%
(18.0
)%
18.6 pts
(39.3
)%
(7.4
)%
(31.9) pts
Loss ratio
14.9
%
46.0
%
(31.1) pts
17.5
%
62.0
%
(44.5) pts
The catastrophe losses in the Reinsurance segment for the three
and six months ended June 30, 2023 related to Cyclone Gabrielle in
our Property Reinsurance line of business, compared to prior year
period losses related to European storms and Australian floods.
For the three months ended June 30, 2023, there was minimal net
movement in our prior year loss reserve development.
For the six months ended June 30, 2023, favorable prior year
development related to positive development on catastrophe losses
and benign prior year attritional experience.
Other Underwriting Expenses
We do not allocate Fidelis MGU commissions or general and
administrative expenses by segment.
Fidelis MGU Commissions
For the three and six months ended June 30, 2023, our Fidelis
MGU commissions were $52.6 million and $76.8 million, respectively,
and are comprised of ceding and profit commissions as part of the
Framework Agreement effective from January 1, 2023. Fidelis MGU
manages origination, underwriting, underwriting administration,
outwards reinsurance and claims handling under delegated authority
agreements with the Group.
General and Administrative Expenses
For the three and six months ended June 30, 2023 our general and
administrative expenses were $18.6 million (2022: $41.9 million)
and $35.2 million (2022: $77.4 million), respectively. The
decreases were primarily related to the reduced headcount following
the consummation of the Separation Transactions.
Investment Results
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
($ in millions)
Net investment gains/(losses)
$
0.1
$
(15.0
)
$
2.9
$
(25.2
)
Net investment income
27.3
7.4
47.7
12.5
Net investment return
$
27.4
$
(7.6
)
$
50.6
$
(12.7
)
Net Investment Gains/(Losses)
The net investment gains in the three months ended June 30, 2023
resulted from realized losses on fixed maturity securities,
available for sale, offset by a decrease in our allowance for
credit losses. The net investment gains for the six months ended
June 30, 2023 resulted from realized and unrealized gains on other
investments offset by realized losses on fixed maturity securities,
available for sale and an increase in our allowance for credit
losses.
Net Investment Income
The increase in our net investment income in the three and six
months ended June 30, 2023 was due to increases in interest rates
during 2022 and 2023, where the short duration nature of our
portfolio means that we are reinvesting at higher rates. The
increase in our net investment income also resulted from higher
yields earned on cash balances and the increase in total cash and
investments.
Conference Call
Fidelis will host a teleconference to discuss its financial
results on August 23, 2023 at 8:00 a.m Eastern time. The call may
be accessed by dialing 1-888-886-7786 within the United States or
1-206-962-3782 international, passcode 75406823, or through a live
webcast available via the Investor Relations section of the
Company’s website at https://investors.fidelisinsurance.com/. A
recording of the webcast will be available in the Investors section
of the Company’s website approximately two hours after the event
concludes and will be archived on the site for one year.
About Fidelis
Fidelis Insurance Holdings Limited (NYSE: FIHL) is a global
(re)insurance group, headquartered in Bermuda with offices in
Ireland and the United Kingdom. Our business focuses on three
pillars: Specialty, Bespoke, and Reinsurance. We manage volatility
through our balanced and diversified portfolio. Our strong capital
position provides us with the flexibility to engage in attractive
underwriting opportunities.
Non-GAAP Financial Measures
This Press Release includes, and the related conference call
will include, certain financial measures that are not calculated in
accordance with generally accepted accounting principles in the
U.S. (“GAAP”) including operating net income, operating return on
average common equity, and therefore are non-U.S. GAAP financial
measures. Reconciliations of such measures to the most comparable
GAAP figures are included in the attached financial information in
accordance with Regulation G.
RPI Measure
RPI is a measure that Fidelis has used to assess an approximate
index of rate increases on a particular set of contracts, using the
base of 100% for the rates for the relevant prior year. Although
management considers RPI to be an appropriate statistical measure,
it is not a financial measure that directly relates to the Group’s
consolidated financial results. Management’s calculation of RPI
involves a degree of judgment in relation to comparability of
contracts and the relative impacts of changes in price, exposure,
retention levels, as well as any other changing terms and
conditions on the RPI calculation. Consideration is given to
potential renewals of a comparable nature so it does not reflect
every contract in the Fidelis portfolio. The performance of a
portfolio of contracts expressed within the RPI is dependent upon
many factors besides the trends in premium rates.
Safe Harbor Regarding Forward-Looking Statements
This press release contains, and our related conference call may
contain, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and subject to the
safe harbor created thereby. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as
“believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,”
“estimates,” “expects,” “assumes,” “continues,” “should,” “could,”
“will,” “may” and the negative of these or similar terms and
phrases. Forward-looking statements are subject to known and
unknown risks and uncertainties, many of which may be beyond the
Company’s control that could cause the Company’s actual results to
differ materially from those projected, anticipated or implied.
These risks and uncertainties are described in the Company’s IPO
prospectus dated June 28, 2023 filed with the Securities and
Exchange Commission (“SEC”) on June 30, 2023, which investors
should review together with our periodic reports filed with the SEC
from time to time. Our forward-looking statements are also subject
to emerging risks and uncertainties such as: the impact of the
Government of Bermuda’s consultation on its potential introduction
of corporate income tax and related tax reforms; and exposure to
recent insurance and reinsurance industry loss events and
developments including wildfires in Hawaii and the ongoing conflict
in Ukraine.
Although the Company believes that the expectations reflected in
forward-looking statements have a reasonable basis when made, it
can give no assurance that these expectations will prove to be
achieved. The Company cautions you that the forward-looking
information presented in this press release and call is not a
guarantee of future events, and that actual events may differ
materially from those made in or suggested by the forward-looking
information.
FIDELIS INSURANCE HOLDINGS
LIMITED (“FIHL”)
Consolidated Balance
Sheets
At June 30, 2023 (Unaudited)
and December 31, 2022
(Expressed in millions of U.S.
dollars, except share and per share amounts)
June 30, 2023
December 31, 2022
Assets
Fixed maturity securities,
available-for-sale (amortized cost: $2,806.1, 2022: $2,160.8 (net
of allowances for credit losses of $1.9, 2022: $1.1))
$
2,712.4
$
2,050.9
Short-term investments, available-for-sale
(amortized cost: $121.9, 2022: $257.0 (net of allowances for credit
losses of $nil, 2022: $nil))
121.8
257.0
Other investments, at fair value
(amortized cost: $51.1, 2022: $126.3)
46.1
117.1
Total investments
2,880.3
2,425.0
Cash and cash equivalents
557.0
1,222.0
Restricted cash and cash equivalents
365.2
185.9
Accrued investment income
18.2
10.9
Premiums and other receivables (net of
allowances for credit losses of $10.4, 2022: $8.8)
2,443.7
1,862.7
Amounts due from Fidelis MGU (net of
allowances for credit losses of $nil, 2022: $nil)
245.3
—
Deferred reinsurance premiums
1,273.7
823.7
Reinsurance balances recoverable on paid
losses (net of allowances for credit losses of $nil, 2022:
$nil)
127.6
159.4
Reinsurance balances recoverable on
reserves for losses and loss adjustment expenses (net of allowances
for credit losses of $1.0, 2022: $1.0)
1,019.7
976.1
Deferred policy acquisition costs
(includes deferred Fidelis MGU commissions $137.3, 2022: $nil)
849.2
515.8
Other assets
99.1
131.0
Total assets
$
9,879.0
$
8,312.5
Liabilities and shareholders'
equity
Liabilities
Reserves for losses and loss adjustment
expenses
$
2,235.0
$
2,045.2
Unearned premiums
3,523.5
2,618.6
Reinsurance balances payable
1,280.4
1,057.0
Amounts due to Fidelis MGU
242.3
—
Long term debt
447.9
447.5
Preference securities
58.4
58.4
Other liabilities
110.9
98.7
Total liabilities
7,898.4
6,325.4
Commitments and contingencies
Shareholders' equity
Common shares ($0.01 par, issued and
outstanding: 110,771,897, 2022: 194,545,370)
1.1
1.9
Additional paid-in capital
1,944.8
2,075.2
Accumulated other comprehensive loss
(85.9
)
(100.8
)
Retained earnings
120.6
0.5
Total shareholders' equity attributable
to common shareholders
1,980.6
1,976.8
Non-controlling interests
—
10.3
Total shareholders' equity including
non-controlling interests
1,980.6
1,987.1
Total liabilities, non-controlling
interests and shareholders' equity
$
9,879.0
$
8,312.5
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Statements of
Income and Comprehensive Income (Unaudited)
For the three and six months
ended June 30, 2023 and June 30, 2022
(Expressed in millions of U.S.
dollars except for share and per share amounts)
Three Months Ended
Six Months Ended
June 30, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Revenues
Gross premiums written
$
957.2
$
764.1
$
2,202.5
$
1,734.8
Reinsurance premiums ceded
(342.1
)
(309.7
)
(927.7
)
(795.1
)
Net premiums written
615.1
454.4
1,274.8
939.7
Change in net unearned premiums
(186.0
)
(117.0
)
(459.7
)
(280.5
)
Net premiums earned
429.1
337.4
815.1
659.2
Net investment gains/(losses)
0.1
(15.0
)
2.9
(25.2
)
Net investment income
27.3
7.4
47.7
12.5
Other income/(loss)
(3.3
)
0.3
0.2
1.3
Total revenues before net gain on
distribution of Fidelis MGU
453.2
330.1
865.9
647.8
Net gain on distribution of Fidelis
MGU
—
—
1,639.1
—
Total revenues
453.2
330.1
2,505.0
647.8
Expenses
Losses and loss adjustment expenses
158.3
180.4
317.9
358.8
Policy acquisition expenses (includes
Fidelis MGU commissions of $52.6 and $76.8 (2022: $nil and
$nil))
174.7
83.1
303.9
150.8
General and administrative expenses
18.6
41.9
35.2
77.4
Corporate and other expenses
1.5
—
3.0
1.9
Net foreign exchange (gains)/losses
0.1
(0.7
)
1.6
0.2
Financing costs
9.0
9.2
17.6
18.0
Total expenses
362.2
313.9
679.2
607.1
Income before income taxes
91.0
16.2
1,825.8
40.7
Income tax expense
(7.1
)
(5.2
)
(9.3
)
(9.9
)
Net income
83.9
11.0
1,816.5
30.8
Net income attributable to non-controlling
interests
—
(2.6
)
—
(5.4
)
Net income available to common
shareholders
$
83.9
$
8.4
$
1,816.5
$
25.4
Other comprehensive
(loss)/income
Unrealized (losses)/gains on
available-for-sale
$
(9.5
)
$
(25.0
)
$
15.4
$
(86.2
)
Income tax (expense)/benefit, all of which
relates to unrealized gains/(losses) on available-for-sale
investments
0.4
1.6
(1.6
)
5.7
Currency translation adjustments
—
(0.7
)
—
(0.9
)
Total other comprehensive
(loss)/income
(9.1
)
(24.1
)
13.8
(81.4
)
Comprehensive (loss)/income
attributable to common shareholders
$
74.8
$
(15.7
)
$
1,830.3
$
(56.0
)
Per share data
Earnings per common share:
Earnings per common share
$
0.76
$
0.04
$
16.40
$
0.13
Earnings per diluted common share
$
0.76
$
0.04
$
16.39
$
0.13
Weighted average common shares
outstanding
110,771,897
194,263,979
110,771,897
194,185,558
Weighted average diluted common shares
outstanding
110,825,698
198,903,175
110,807,764
198,943,469
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Segment Data
(Unaudited)
For the three and six months
ended June 30, 2023 and June 30, 2022
(Expressed in millions of U.S.
dollars)
Three Months Ended June 30,
2023
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
657.3
$
54.7
$
245.2
$
—
$
957.2
Net premiums written
461.8
30.1
123.2
—
615.1
Net premiums earned
307.2
90.4
31.5
—
429.1
Losses and loss adjustment expenses
(137.4
)
(16.2
)
(4.7
)
—
(158.3
)
Policy acquisition expenses
(77.5
)
(36.9
)
(7.7
)
(52.6
)
(174.7
)
General and administrative expenses
—
—
—
(18.6
)
(18.6
)
Underwriting income
92.3
37.3
19.1
(71.2
)
77.5
Net investment gains
0.1
Net investment income
27.3
Other loss
(3.3
)
Corporate and other expenses
(1.5
)
Net foreign exchange losses
(0.1
)
Financing costs
(9.0
)
Income before income taxes
91.0
Income tax expense
(7.1
)
Net income
83.9
Net income attributable to non-controlling
interests
—
Net income available to common
shareholders
$
83.9
Losses and loss adjustment expenses
incurred - current year
(132.5
)
(23.7
)
(4.5
)
$
(160.7
)
Losses and loss adjustment expenses
incurred - prior accident years
(4.9
)
7.5
(0.2
)
2.4
Losses and loss adjustment expenses
incurred - total
$
(137.4
)
$
(16.2
)
$
(4.7
)
$
(158.3
)
Underwriting Ratios(1)
Loss ratio - current year
43.1
%
26.2
%
14.3
%
37.5
%
Loss ratio - prior accident years
1.6
%
(8.3
%)
0.6
%
(0.6
%)
Loss ratio - total
44.7
%
17.9
%
14.9
%
36.9
%
Policy acquisition expense ratio
25.2
%
40.8
%
24.4
%
28.5
%
Underwriting ratio
69.9
%
58.7
%
39.3
%
65.4
%
Fidelis MGU commissions ratio
12.3
%
General & administrative expense
ratio
4.3
%
Combined ratio
82.0
%
Three Months Ended June 30,
2022
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
373.0
$
163.1
$
228.0
$
—
$
764.1
Net premiums written
265.6
57.1
131.7
—
454.4
Net premiums earned
199.8
87.6
50.0
—
337.4
Losses and loss adjustment expenses
(137.7
)
(19.7
)
(23.0
)
—
(180.4
)
Policy acquisition expenses
(43.7
)
(32.4
)
(7.0
)
—
(83.1
)
General and administrative expenses
—
—
—
(41.9
)
(41.9
)
Underwriting income
18.4
35.5
20.0
(41.9
)
32.0
Net investment losses
(15.0
)
Net investment income
7.4
Other income
0.3
Corporate and other expenses
—
Net foreign exchange gains
0.7
Financing costs
(9.2
)
Income before income taxes
16.2
Income tax expense
(5.2
)
Net income
11.0
Net income attributable to non-controlling
interests
(2.6
)
Net income available to common
shareholders
$
8.4
Losses and loss adjustment expenses
incurred - current year
(131.9
)
(27.4
)
(32.0
)
$
(191.3
)
Losses and loss adjustment expenses
incurred - prior accident years
(5.8
)
7.7
9.0
10.9
Losses and loss adjustment expenses
incurred - total
$
(137.7
)
$
(19.7
)
$
(23.0
)
$
(180.4
)
Underwriting Ratios(1)
Loss ratio - current year
66.0
%
31.3
%
64.0
%
56.7
%
Loss ratio - prior accident years
2.9
%
(8.8
%)
(18.0
%)
(3.2
%)
Loss ratio - total
68.9
%
22.5
%
46.0
%
53.5
%
Policy acquisition expense ratio
21.9
%
37.0
%
14.0
%
24.6
%
Underwriting ratio
90.8
%
59.5
%
60.0
%
78.1
%
General & administrative expense
ratio
12.4
%
Combined ratio
90.5
%
Six months ended June 30,
2023
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
1,491.4
$
205.5
$
505.6
$
—
$
2,202.5
Net premiums written
954.8
111.8
208.2
—
1,274.8
Net premiums earned
573.4
181.6
60.1
—
815.1
Losses and loss adjustment expenses
(278.1
)
(29.3
)
(10.5
)
—
(317.9
)
Policy acquisition expenses
(143.8
)
(70.2
)
(13.1
)
(76.8
)
(303.9
)
General and administrative expenses
—
—
—
(35.2
)
(35.2
)
Underwriting income
151.5
82.1
36.5
(112.0
)
158.1
Net investment gains
2.9
Net investment income
47.7
Other income
0.2
Net gain on distribution of Fidelis
MGU
1,639.1
Corporate and other expenses
(3.0
)
Net foreign exchange losses
(1.6
)
Financing costs
(17.6
)
Income before income taxes
1,825.8
Income tax expense
(9.3
)
Net income
1,816.5
Net income attributable to non-controlling
interests
—
Net income available to common
shareholders
$
1,816.5
Losses and loss adjustment expenses
incurred - current year
(242.7
)
(45.6
)
(34.1
)
$
(322.4
)
Losses and loss adjustment expenses
incurred - prior accident years
(35.4
)
16.3
23.6
4.5
Losses and loss adjustment expenses
incurred - total
$
(278.1
)
$
(29.3
)
$
(10.5
)
$
(317.9
)
Underwriting Ratios(1)
Loss ratio - current year
42.3
%
25.1
%
56.8
%
39.6
%
Loss ratio - prior accident years
6.2
%
(9.0
%)
(39.3
%)
(0.6
%)
Loss ratio - total
48.5
%
16.1
%
17.5
%
39.0
%
Policy acquisition expense ratio
25.1
%
38.7
%
21.8
%
27.9
%
Underwriting ratio
73.6
%
54.8
%
39.3
%
66.9
%
Fidelis MGU commissions ratio
9.4
%
General & administrative expense
ratio
4.3
%
Combined ratio
80.6
%
Six months ended June 30,
2022
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
916.8
$
298.1
$
519.9
$
—
$
1,734.8
Net premiums written
576.3
148.6
214.8
—
939.7
Net premiums earned
380.3
174.8
104.1
—
659.2
Losses and loss adjustment expenses
(231.1
)
(63.2
)
(64.5
)
—
(358.8
)
Policy acquisition expenses
(79.0
)
(56.0
)
(15.8
)
—
(150.8
)
General and administrative expenses
—
—
—
(77.4
)
(77.4
)
Underwriting income
70.2
55.6
23.8
(77.4
)
72.2
Net investment losses
(25.2
)
Net investment income
12.5
Other income
1.3
Corporate and other expenses
(1.9
)
Net foreign exchange losses
(0.2
)
Financing costs
(18.0
)
Income before income taxes
40.7
Income tax expense
(9.9
)
Net income
30.8
Net income attributable to non-controlling
interests
(5.4
)
Net income available to common
shareholders
$
25.4
Losses and loss adjustment expenses
incurred - current year
(230.7
)
(71.4
)
(72.2
)
$
(374.3
)
Losses and loss adjustment expenses
incurred - prior accident years
(0.4
)
8.2
7.7
15.5
Losses and loss adjustment expenses
incurred - total
$
(231.1
)
$
(63.2
)
$
(64.5
)
$
(358.8
)
Underwriting Ratios(1)
Loss ratio - current year
60.7
%
40.9
%
69.4
%
56.8
%
Loss ratio - prior accident years
0.1
%
(4.7
%)
(7.4
%)
(2.4
%)
Loss ratio - total
60.8
%
36.2
%
62.0
%
54.4
%
Policy acquisition expense ratio
20.8
%
32.0
%
15.2
%
22.9
%
Underwriting ratio
81.6
%
68.2
%
77.2
%
77.3
%
General & administrative expense
ratio
11.7
%
Combined ratio
89.0
%
FIDELIS INSURANCE HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(UNAUDITED)
Operating net income: is a non-GAAP financial measure of
our performance which does not consider the impact of certain
non-recurring and other items that may not properly reflect the
ordinary activities of our business, its performance or its future
outlook. This measure is calculated as net income available to
holders of Common Shares excluding, net gain on distribution of
Fidelis MGU, net investment gains/(losses), net foreign exchange
gains/(losses), and corporate and other expenses which include
warrant costs, reorganization expenses, any non-recurring income
and expenses, and the tax impact on these items.
Return on average common equity (“ROAE”): represents net
income divided by average common shareholders’ equity.
Operating return on average common equity (“Operating
ROAE”): is a non-GAAP financial measure that represents a
meaningful comparison between periods of our financial performance
expressed as a percentage and is calculated as operating net income
divided by adjusted average common shareholders’ equity.
The table below sets out the calculation of the adjusted common
shareholders’ equity, operating net income, ROAE and Operating
ROAE, for the three and six months ended June 30, 2023 and
2022.
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
($ in millions)
Average common shareholders'
equity
$
1,942.6
$
1,958.6
$
1,978.7
$
1,982.5
Opening common shareholders' equity
1,904.5
1,966.2
1,976.8
2,013.9
Adjustments related to the Separation
Transactions
—
—
(178.4
)
—
Adjusted opening common shareholders’
equity
1,904.5
1,966.2
1,798.4
2,013.9
Closing common shareholders' equity
1,980.6
1,951.0
1,980.6
1,951.0
Adjusted average common shareholders'
equity
1,942.6
1,958.6
1,889.5
1,982.5
Net income available to common
shareholders
83.9
8.4
1,816.5
25.4
Adjustment for net gain on distribution of
Fidelis MGU
—
—
(1,639.1
)
—
Adjustment for net investment
(gains)/losses
(0.1
)
15.0
(2.9
)
25.2
Adjustment for net foreign exchange
(gains)/losses
0.1
(0.7
)
1.6
0.2
Adjustment for corporate and other
expenses
1.5
—
3.0
1.9
Tax impact of the above
(0.1
)
(3.2
)
(6.3
)
(6.0
)
Operating net income
$
85.3
$
19.5
$
172.8
$
46.7
ROAE
4.3
%
0.4
%
91.8
%
1.3
%
Operating ROAE
4.4
%
1.0
%
9.1
%
2.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230822523982/en/
Investor Inquiries: IR@fidelisinsurance.com
Media Inquiries: fidelis@teneo.com
Fidelis Insurance (NYSE:FIHL)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Fidelis Insurance (NYSE:FIHL)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
