Third Quarter 2023 Highlights:
- Annualized operating return on average common equity of
17.6%
- Net income of $87.7 million, or $0.74 per diluted common
share
Nine months ended September 30, 2023
Highlights:
- Gross premiums written of $2.8 billion; growth of 15.4% from
nine months ended September 30, 2022
- Annualized operating return on average common equity of
17.7%
- 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.
Fidelis Insurance Holdings Limited (“Fidelis” or “FIHL” or "the
Group") (NYSE: FIHL) announced today its financial results for the
third quarter ended September 30, 2023.
Dan Burrows, Group Chief Executive Officer, said “I am pleased
with another strong quarter for Fidelis which produced excellent
results across multiple key metrics. We continue to deliver our
strategy of generating superior underwriting returns with a year to
date combined ratio of 82.4%. Our results demonstrate our ability
to be nimble and opportunistic across our three pillars to react to
market conditions and evidence the strength of the alignment with
our partners at Fidelis MGU who are able to fully focus on
underwriting activities.
During the year we looked to preserve underwriting integrity
across the portfolio, and given the economic and geopolitical
conditions, maximize the bottom line, delivering an annualized
operating ROAE of 17.7%.
We believe market duration is set to continue and there is still
considerable opportunity within the portfolio following a number of
years of compound increases across multiple lines of business. Our
market-leading Specialty portfolio remains an important driver of
growth within the business given strong prevailing market
conditions, as evidenced by the strong year to date premium growth.
We take a measured approach in Bespoke, where we continually assess
market dynamics and evaluate opportunities based on the current
risk environment. While this had lead to a reduction in Bespoke
premium year to date, we have a robust pipeline and are well
positioned to pursue long-term growth in this pillar. As we
approach the end of the year we remain focused on delivering value
for our shareholders, optimizing our portfolio and targeting
profitable underwriting opportunities in line with the Fidelis view
of risk.”
Third Quarter Consolidated Results
- Net income available to common shareholders for the third
quarter of 2023 was $87.7 million, or $0.74 per diluted common
share, compared to a net loss available to common shareholders of
$92.7 million, or $(0.48) per diluted common share, for the third
quarter of 2022.
- Underwriting income for the third quarter of 2023 was $74.8
million and a combined ratio of 85.4%, compared to an underwriting
loss of $89.4 million and a combined ratio of 120.5% for the third
quarter of 2022, the improvement was driven by lower catastrophe
and large losses.
- Net favorable prior year loss reserve development of $43.3
million compared to $2.7 million in the prior year period.
- Net investment income of $33.1 million compared to $11.1
million in the prior year period.
- Operating ROAE increased to 4.4%, or 17.6% annualized, in the
quarter from (4.6)%, or (18.4)% annualized, a year ago, driven by
significant increases in both underwriting income and investment
income.
- Book value per diluted common share was $18.25 at September 30,
2023, an increase of 2.2%, compared to June 30, 2023, driven by net
income.
Year to Date Consolidated
Results
- Net income available to common shareholders for the nine months
ended September 30, 2023 was $1,904.2 million, or $16.82 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 nine months
ended September 30, 2023 was $265.1 million. This compares to a net
loss available to common shareholders of $67.3 million, or $(0.35)
per diluted common share, for the nine months ended September 30,
2022.
- Underwriting income for the nine months ended September 30,
2023 was $232.9 million and a combined ratio of 82.4%, compared to
an underwriting loss of $17.2 million and a combined ratio of
101.6% for the nine months ended September 30, 2022. The
improvement was driven by significantly lower catastrophe and large
losses.
- Net favorable prior year loss reserve development of $47.8
million compared to $18.2 million in the prior year period.
- Net investment income of $80.8 million compared to $23.6
million in the prior year period.
- Operating ROAE increased to 13.3%, or 17.7% annualized, in the
nine months ended September 30, 2023, from (2.1)% or (2.8)%
annualized, in the nine months ended September 30, 2022, driven by
significant increases in both underwriting income and investment
income.
- Book value per diluted common share was $18.25 at September 30,
2023, an increase of 12.4% from the adjusted book value per diluted
common share at the time of the Separation Transactions, which were
completed on January 3, 2023, driven by net income and net
unrealized gains reported in other comprehensive income.
The following table details key financial indicators in
evaluating our performance for the three and nine months ended
September 30, 2023 and 2022:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
($ in millions, except for per
share data )
Net income/(loss) available to common
shareholders
$
87.7
$
(92.7
)
$
1,904.2
$
(67.3
)
Earnings/(loss) per diluted common
share
0.74
(0.48
)
16.82
(0.35
)
Net premiums earned
509.7
433.6
1,324.8
1,092.8
Catastrophe and large losses
76.1
237.9
139.8
382.2
Net favorable prior year reserve
development
43.3
2.7
47.8
18.2
Net investment income
33.1
11.1
80.8
23.6
Net realized and unrealized investment
losses
$
(5.3
)
$
(12.3
)
$
(2.4
)
$
(37.5
)
Combined ratio
85.4
%
120.5
%
82.4
%
101.6
%
Operating ROAE(1)
4.4
%
(4.6
%)
13.3
%
(2.1
%)
(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
September 30,
Nine Months Ended
September 30,
2023
2022
Change
2023
2022
Change
($ in millions)
Gross premiums written
$
326.9
$
327.7
$
(0.8
)
$
1,818.3
$
1,244.5
$
573.8
Reinsurance premium ceded
(123.3
)
(102.0
)
(21.3
)
(659.9
)
(442.5
)
(217.4
)
Net premiums written
203.6
225.7
(22.1
)
1,158.4
802.0
356.4
Net premiums earned
294.6
217.7
76.9
868.0
598.0
270.0
Losses and loss adjustment expenses
(138.3
)
(178.8
)
40.5
(416.4
)
(409.9
)
(6.5
)
Policy acquisition expenses
(83.4
)
(48.1
)
(35.3
)
(227.2
)
(127.1
)
(100.1
)
Underwriting income/(loss)
$
72.9
$
(9.2
)
$
82.1
$
224.4
$
61.0
$
163.4
Loss ratio
46.9
%
82.1
%
(35.2) pts
48.0
%
68.5
%
(20.5) pts
Policy acquisition expense ratio
28.3
%
22.1
%
6.2 pts
26.2
%
21.3
%
4.9 pts
Underwriting ratio
75.2
%
104.2
%
(29.0) pts
74.2
%
89.8
%
(15.6) pts
For the three and nine months ended September 30, 2023, our
underwriting ratio in the Specialty segment decreased by 29.0 and
15.6 points, respectively, from the prior year periods, which was
primarily driven by a decrease in our loss ratio resulting from
rate increases and improved pricing and terms and conditions.
For the three and nine months ended September 30, 2023, net
premiums earned increased primarily driven by an increase in gross
and net premiums written as a result of rate increases and new
business in the Property D&F, Marine, 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
September 30,
Nine Months Ended
September 30,
2023
2022
Change
2023
2022
Change
($ in millions)
Attritional losses
$
99.8
$
59.3
$
40.5
$
287.3
$
189.9
$
97.4
Catastrophe and large losses
41.2
128.2
(87.0
)
96.4
228.3
(131.9
)
(Favorable)/adverse prior year
development
(2.7
)
(8.7
)
6.0
32.7
(8.3
)
41.0
Losses and loss adjustment expenses
$
138.3
$
178.8
$
(40.5
)
$
416.4
$
409.9
$
6.5
Loss ratio - current year
47.8
%
86.1
%
(38.3) pts
44.2
%
69.9
%
(25.7) pts
Loss ratio - prior accident years
(0.9
)%
(4.0
)%
3.1 pts
3.8
%
(1.4
)%
5.2 pts
Loss ratio
46.9
%
82.1
%
(35.2) pts
48.0
%
68.5
%
(20.5) pts
For the three and nine months ended September 30, 2023, our loss
ratio in the Specialty segment decreased by 35.2 and 20.5 points,
respectively.
The catastrophe and large losses in the three months ended
September 30, 2023 related primarily to loss events in various
lines of business including, Energy, Marine, and Aviation and
Aerospace, and losses related to the Hawaii wildfires in our
Property D&F line of business. This compared to prior year
period catastrophe and large losses related to Hurricane Ian and
the Ukraine Conflict.
The catastrophe and large losses in the nine months ended
September 30, 2023 related primarily to our Property D&F line
of business where we experienced losses from severe convective
storms in the U.S. and the Hawaii wildfires, our Aviation and
Aerospace line of business where we experienced losses from the
Sudan conflict, and loss events in various lines of business
including, Energy, Marine, and Aviation and Aerospace. This
compared to the prior year period catastrophe and large losses
related to the Ukraine Conflict in our Aviation and Aerospace line
of business, and Hurricane Ian in our Property D&F line of
business.
The favorable prior year development for the three months ended
September 30, 2023 primarily related to better than expected loss
experience in our Energy line of business, partially offset by
deterioration in our Property D&F line of business.
The adverse prior year development for the nine months ended
September 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
September 30,
Nine Months Ended
September 30,
2023
2022
Change
2023
2022
Change
($ in millions)
Gross premiums written
$
161.7
$
274.9
$
(113.2
)
$
367.2
$
573.0
$
(205.8
)
Reinsurance premium ceded
(83.6
)
(49.7
)
(33.9
)
(177.3
)
(199.2
)
21.9
Net premiums written
78.1
225.2
(147.1
)
189.9
373.8
(183.9
)
Net premiums earned
98.8
104.5
(5.7
)
280.4
279.3
1.1
Losses and loss adjustment expenses
(43.2
)
(32.6
)
(10.6
)
(72.5
)
(95.8
)
23.3
Policy acquisition expenses
(34.9
)
(38.8
)
3.9
(105.1
)
(94.8
)
(10.3
)
Underwriting income
$
20.7
$
33.1
$
(12.4
)
$
102.8
$
88.7
$
14.1
Loss ratio
43.7
%
31.2
%
12.5 pts
25.9
%
34.3
%
(8.4) pts
Policy acquisition expense ratio
35.3
%
37.1
%
(1.8) pts
37.5
%
33.9
%
3.6 pts
Underwriting ratio
79.0
%
68.3
%
10.7 pts
63.4
%
68.2
%
(4.8) pts
For the three months ended September 30, 2023, our underwriting
ratio in the Bespoke segment increased by 10.7 points from the
prior year period, which was primarily driven by an increase in our
loss ratio.
For the nine months ended September 30, 2023, our underwriting
ratio in the Bespoke segment decreased by 4.8 points from the prior
year period, which was primarily driven by a decrease in our loss
ratio.
For the three and nine months ended September 30, 2023, gross
premiums written decreased as a result of increased economic and
geopolitical uncertainty, we continue to take a measured approach
in writing certain exposures in this segment, and instead take
advantage and deploy capital in segments which present significant
opportunities due to post-loss dislocation. Gross premiums written
in Bespoke can be opportunistic in nature and premiums written may
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
September 30,
Nine Months Ended
September 30,
2023
2022
Change
2023
2022
Change
($ in millions)
Attritional losses
$
35.1
$
29.6
$
5.5
$
80.6
$
81.0
$
(0.4
)
Large losses
20.4
6.8
13.6
20.5
26.8
(6.3
)
Favorable prior year development
(12.3
)
(3.8
)
(8.5
)
(28.6
)
(12.0
)
(16.6
)
Losses and loss adjustment expenses
$
43.2
$
32.6
$
10.6
$
72.5
$
95.8
$
(23.3
)
Loss ratio - current year
56.1
%
34.8
%
21.3 pts
36.1
%
38.6
%
(2.5) pts
Loss ratio - prior accident years
(12.4
)%
(3.6
)%
(8.8) pts
(10.2
)%
(4.3
)%
(5.9) pts
Loss ratio
43.7
%
31.2
%
12.5 pts
25.9
%
34.3
%
(8.4) pts
For the three months ended September 30, 2023, our loss ratio in
the Bespoke segment increased driven by higher large losses in the
current year period, partially offset by higher favorable prior
year development in the current year period driven by stable prior
year experience.
For the nine months ended September 30, 2023, our loss ratio
decreased driven primarily by higher favorable prior year
development in the current year period together with lower large
losses compared to the prior year period.
The large losses in the three and nine months ended September
30, 2023 related to two intellectual property losses in our Credit
& Political Risk line of business. This compared to large
losses in the three months ended September 30, 2022 related to a
single loss in our Other Bespoke line of business, and for the nine
months ended September 30, 2022 related to the Ukraine Conflict in
our Credit & Political Risk line of business.
The favorable prior year development for the three and nine
months ended September 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
September 30,
Nine Months Ended
September 30,
2023
2022
Change
2023
2022
Change
($ in millions)
Gross premiums written
$
104.0
$
85.5
$
18.5
$
609.6
$
605.4
$
4.2
Reinsurance premium ceded
(73.1
)
(41.9
)
(31.2
)
(370.5
)
(347.0
)
(23.5
)
Net premiums written
30.9
43.6
(12.7
)
239.1
258.4
(19.3
)
Net premiums earned
116.3
111.4
4.9
176.4
215.5
(39.1
)
Losses and loss adjustment expenses
(10.2
)
(140.4
)
130.2
(20.7
)
(204.9
)
184.2
Policy acquisition expenses
(32.5
)
(25.6
)
(6.9
)
(45.6
)
(41.4
)
(4.2
)
Underwriting income/(loss)
$
73.6
$
(54.6
)
$
128.2
$
110.1
$
(30.8
)
$
140.9
Loss ratio
8.8
%
126.0
%
(117.2) pts
11.7
%
95.1
%
(83.4) pts
Policy acquisition expense ratio
27.9
%
23.0
%
4.9 pts
25.9
%
19.2
%
6.7 pts
Underwriting ratio
36.7
%
149.0
%
(112.3) pts
37.6
%
114.3
%
(76.7) pts
For the three and nine months ended September 30, 2023, our
underwriting ratio in the Reinsurance segment decreased by 112.3
and 76.7 points, respectively, from the prior year periods, which
was primarily driven by a decrease in our loss ratio.
For the three months ended September 30, 2023 net premiums
earned increased driven by earned premium from contracts that
incepted in 2022.
For the nine months ended September 30, 2023 net premiums earned
decreased driven by a decrease in net premiums written and a small
increase in premiums ceded compared with the prior year period.
The following table is a summary of our Reinsurance segment’s
losses and loss adjustment expenses:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
Change
2023
2022
Change
($ in millions)
Attritional losses
$
24.0
$
27.7
$
(3.7
)
$
49.7
$
75.7
$
(26.0
)
Catastrophe and large losses
14.5
102.9
(88.4
)
22.9
127.1
(104.2
)
(Favorable)/adverse prior year
development
(28.3
)
9.8
(38.1
)
(51.9
)
2.1
(54.0
)
Losses and loss adjustment expenses
$
10.2
$
140.4
$
(130.2
)
$
20.7
$
204.9
$
(184.2
)
Loss ratio - current year
33.1
%
117.2
%
(84.1) pts
41.1
%
94.1
%
(53.0) pts
Loss ratio - prior accident years
(24.3
)%
8.8
%
(33.1) pts
(29.4
)%
1.0
%
(30.4) pts
Loss ratio
8.8
%
126.0
%
(117.2) pts
11.7
%
95.1
%
(83.4) pts
The catastrophe losses in the Reinsurance segment for the three
months ended September 30, 2023 related to the Hawaii wildfires in
our Property Reinsurance line of business, compared to prior year
period losses related to Hurricane Ian.
The catastrophe losses in the Reinsurance segment for the nine
months ended September 30, 2023 related primarily to the wildfires
in Hawaii and Cyclone Gabrielle in our Property Reinsurance line of
business, compared to prior year period losses related to Hurricane
Ian, European storms and Australian floods.
For the three months ended September 30, 2023, favorable prior
year development related to loss reductions from Hurricane Ian and
better than expected loss experience from the Property Reinsurance
line of business.
For the nine months ended September 30, 2023, favorable prior
year development related primarily to loss reductions from
Hurricane Ian as well as favourable attritional experience driven
by a benign claim experience on prior accident years.
Other Underwriting Expenses
We do not allocate Fidelis MGU commissions or general and
administrative expenses by segment.
Fidelis MGU Commissions
For the three and nine months ended September 30, 2023, Fidelis
MGU commissions were $70.6 million and $147.4 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 nine months ended September 30, 2023, general
and administrative expenses were $21.8 million and $57.0 million,
respectively (2022: $58.7 million and $136.1 million). The
decreases were primarily related to the reduced headcount and
professional fees following the consummation of the Separation
Transactions.
Investment Results
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
($ in millions)
Net realized and unrealized investment
losses
$
(5.3
)
$
(12.3
)
$
(2.4
)
$
(37.5
)
Net investment income
33.1
11.1
80.8
23.6
Net investment return
$
27.8
$
(1.2
)
$
78.4
$
(13.9
)
Net Realized and Unrealized Investment Gains/(Losses)
The net realized and unrealized investment losses in the three
months ended September 30, 2023 resulted from an increase in our
allowance for credit losses, and unrealized losses on other
investments that are recorded at fair value. The net realized and
unrealized investment losses for the nine months ended September
30, 2023 resulted from an increase in our allowance for expected
credit losses and realized losses on fixed maturity securities,
partially offset by realized and unrealized gains on other
investments.
Net Investment Income
The increase in our net investment income in the three and nine
months ended September 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.
Conference Call
Fidelis will host a teleconference to discuss its financial
results on Tuesday, November 21, 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 33912529, 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 Investor Relations 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
Renewal price index (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 (including the documents incorporated herein)
contains, and our officers and representatives may from time to
time make (including on our related conference call),
"forward-looking statements" which include all statements that do
not relate solely to historical or current facts and which may
concern our strategy, plans, projections or intentions and are made
pursuant to the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: "anticipate,"
"intend," "plan," "goal," "seek," "believe," "project," "estimate,"
"expect," "strategy," "predict," "potential," "assumption,"
"future," "likely," "may," "should," "could," "will" and the
negative of these and also similar terms and phrases.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are qualified by
these cautionary statements, because they are based only on our
current beliefs, expectations and assumptions regarding the future
of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions, but are subject to significant business, economic and
competitive uncertainties, many of which are beyond our control or
are subject to change. Our actual results and financial condition
may differ materially from those indicated in the forward-looking
statements. Therefore, you should not rely on any of these
forward-looking statements.
Examples of forward-looking statements include, among others,
statements we make in relation to: discussion relating to fiscal
year 2023 net income and net income per share; expected operating
results, such as revenue growth and earnings; our expectations
regarding our strategy and the performance of our business;
information regarding our estimates for catastrophes and other loss
events; our liquidity and capital resources; and expectations of
the effect on our financial condition of claims, litigation,
environmental costs, contingent liabilities and governmental and
regulatory investigations and proceedings.
Our actual results in the future could differ materially from
those anticipated in any forward-looking statements as a result of
changes in assumptions, risks, uncertainties and other factors
impacting us, many of which are outside our control, including: the
ongoing trend of premium rate hardening and factors likely to drive
continued rate hardening; expected growth across our portfolio; the
availability of outwards reinsurance and capital resources as
required; the development and pattern of earned and written
premiums impacting embedded premium value; changes in accounting
principles or the application thereof; the level of underwriting
leverage; the level and timing of catastrophe and other losses and
related reserves on the business we underwrite; the performance of
our investment portfolios; our strategic relationship with Fidelis
MGU; the maintenance of financial strength ratings; the impact of
global geopolitical and economic uncertainties impacting the lines
of business we write; the impact of tax reform and insurance
regulation in the jurisdictions where our businesses are located;
and those risks, uncertainties and other factors disclosed under
the heading "Risk Factors" in Fidelis’ IPO prospectus dated June
28, 2023 and filed with the SEC (which is incorporated herein by
reference), as well as subsequent filings with the SEC.
Any forward-looking statements, expectations, beliefs or
projections made by us in this release and on our related
conference call speak only as of the date on which they are made
and are expressed in good faith and on the basis that our
management believes that there is reasonable basis for them, based
only on information currently available to us. However, there can
be no assurance that management’s expectations, beliefs, and
projections will be achieved and actual results may vary materially
from what is expressed or indicated by the forward-looking
statements. Furthermore, our past performance, and that of our
management team and of Fidelis MGU, should not be construed as a
guarantee of future performance. We undertake no obligation to
publicly update any forward-looking statement, whether written or
oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Balance
Sheets
At September 30, 2023
(Unaudited) and December 31, 2022
(Expressed in millions of U.S.
dollars, except share and per share amounts)
September 30,
2023
December 31,
2022
Assets
Fixed maturity securities,
available-for-sale (amortized cost: $3,152.9, 2022: $2,160.8 (net
of allowances for credit losses of $5.8, 2022: $1.1))
$
3,059.3
$
2,050.9
Short-term investments, available-for-sale
(amortized cost: $102.4, 2022: $257.0 (net of allowances for credit
losses of $nil, 2022: $nil))
102.4
257.0
Other investments, at fair value
(amortized cost: $51.0, 2022: $126.3)
44.8
117.1
Total investments
3,206.5
2,425.0
Cash and cash equivalents
569.0
1,222.0
Restricted cash and cash equivalents
261.5
185.9
Accrued investment income
21.3
10.9
Premiums and other receivables (net of
allowances for credit losses of $15.1, 2022: $8.8)
2,123.6
1,862.7
Amounts due from Fidelis MGU (net of
allowances for credit losses of $nil, 2022: $nil)
219.8
—
Deferred reinsurance premiums
1,154.0
823.7
Reinsurance balances recoverable on paid
losses (net of allowances for credit losses of $nil, 2022:
$nil)
163.5
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)
1,066.3
976.1
Deferred policy acquisition costs
(includes deferred Fidelis MGU commissions $142.5, 2022: $nil)
771.9
515.8
Other assets
166.2
131.0
Total assets
$
9,723.6
$
8,312.5
Liabilities and shareholders'
equity
Liabilities
Reserves for losses and loss adjustment
expenses
$
2,308.6
$
2,045.2
Unearned premiums
3,201.9
2,618.6
Reinsurance balances payable
1,178.5
1,057.0
Amounts due to Fidelis MGU
244.3
—
Long term debt
448.0
447.5
Preference securities
58.4
58.4
Other liabilities
123.8
98.7
Total liabilities
7,563.5
6,325.4
Commitments and contingencies
Shareholders' equity
Common shares ($0.01 par, issued and
outstanding: 117,914,754, 2022: 194,545,370)
1.2
1.9
Additional paid-in capital
2,036.2
2,075.2
Accumulated other comprehensive loss
(85.6
)
(100.8
)
Retained earnings
208.3
0.5
Total shareholders' equity attributable
to common shareholders
2,160.1
1,976.8
Non-controlling interests
—
10.3
Total shareholders' equity including
non-controlling interests
2,160.1
1,987.1
Total liabilities, non-controlling
interests and shareholders' equity
$
9,723.6
$
8,312.5
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Statements of
Income and Comprehensive Income (Unaudited)
For the three and nine months
ended September 30, 2023 and September 30, 2022
(Expressed in millions of U.S.
dollars except for share and per share amounts)
Three Months Ended
Nine Months Ended
September 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Revenues
Gross premiums written
$
592.6
$
688.1
$
2,795.1
$
2,422.9
Reinsurance premiums ceded
(280.0
)
(193.6
)
(1,207.7
)
(988.7
)
Net premiums written
312.6
494.5
1,587.4
1,434.2
Change in net unearned premiums
197.1
(60.9
)
(262.6
)
(341.4
)
Net premiums earned
509.7
433.6
1,324.8
1,092.8
Net realized and unrealized investment
losses
(5.3
)
(12.3
)
(2.4
)
(37.5
)
Net investment income
33.1
11.1
80.8
23.6
Other income
—
0.3
0.2
1.6
Total revenues before net gain on
distribution of Fidelis MGU
537.5
432.7
1,403.4
1,080.5
Net gain on distribution of Fidelis
MGU
—
—
1,639.1
—
Total revenues
537.5
432.7
3,042.5
1,080.5
Expenses
Losses and loss adjustment expenses
191.7
351.8
509.6
710.6
Policy acquisition expenses (includes
Fidelis MGU commissions of $70.6 and $147.4 (2022: $nil and
$nil))
221.4
112.5
525.3
263.3
General and administrative expenses
21.8
58.7
57.0
136.1
Corporate and other expenses
0.4
—
3.4
1.9
Net foreign exchange gains
(2.4
)
(4.3
)
(0.8
)
(4.1
)
Financing costs
9.0
9.3
26.6
27.3
Total expenses
441.9
528.0
1,121.1
1,135.1
Income/(loss) before income
taxes
95.6
(95.3
)
1,921.4
(54.6
)
Income tax (expense)/benefit
(7.9
)
4.2
(17.2
)
(5.7
)
Net income/(loss)
87.7
(91.1
)
1,904.2
(60.3
)
Net income attributable to non-controlling
interests
—
(1.6
)
—
(7.0
)
Net income/(loss) available to common
shareholders
$
87.7
$
(92.7
)
$
1,904.2
$
(67.3
)
Other comprehensive
income/(loss)
Unrealized gains/(losses) on
available-for-sale investments
$
0.1
$
(24.8
)
$
15.5
$
(111.0
)
Income tax (expense)/benefit, all of which
relates to unrealized gains/(losses) on available-for-sale
investments
0.2
1.7
(1.4
)
7.4
Currency translation adjustments
—
(1.6
)
—
(2.5
)
Total other comprehensive
income/(loss)
0.3
(24.7
)
14.1
(106.1
)
Comprehensive income/(loss)
attributable to common shareholders
$
88.0
$
(117.4
)
$
1,918.3
$
(173.4
)
Per share data
Earnings/(loss) per common
share
Earnings/(loss) per common share:
$
0.75
$
(0.48
)
$
16.84
$
(0.35
)
Earnings/(loss) per diluted common
share:
$
0.74
$
(0.48
)
$
16.82
$
(0.35
)
Weighted average common shares
outstanding
117,681,835
194,318,054
113,100,521
194,230,529
Weighted average diluted common shares
outstanding
117,975,099
194,318,054
113,232,930
194,230,529
FIDELIS INSURANCE HOLDINGS
LIMITED
Consolidated Segment Data
(Unaudited)
For the three and nine months
ended September 30, 2023 and September 30, 2022
(Expressed in millions of U.S.
dollars)
Three Months Ended September
30, 2023
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
326.9
$
161.7
$
104.0
$
—
$
592.6
Net premiums written
203.6
78.1
30.9
—
312.6
Net premiums earned
294.6
98.8
116.3
—
509.7
Losses and loss adjustment expenses
(138.3
)
(43.2
)
(10.2
)
—
(191.7
)
Policy acquisition expenses
(83.4
)
(34.9
)
(32.5
)
(70.6
)
(221.4
)
General and administrative expenses
—
—
—
(21.8
)
(21.8
)
Underwriting income
72.9
20.7
73.6
(92.4
)
74.8
Net realized and unrealized investment
losses
(5.3
)
Net investment income
33.1
Other income
—
Corporate and other expenses
(0.4
)
Net foreign exchange gains
2.4
Financing costs
(9.0
)
Income before income taxes
95.6
Income tax expense
(7.9
)
Net income
87.7
Net income attributable to non-controlling
interests
—
Net income available to common
shareholders
$
87.7
Losses and loss adjustment expenses
incurred - current year
(141.0
)
(55.5
)
(38.5
)
$
(235.0
)
Losses and loss adjustment expenses
incurred - prior accident years
2.7
12.3
28.3
43.3
Losses and loss adjustment expenses
incurred - total
$
(138.3
)
$
(43.2
)
$
(10.2
)
$
(191.7
)
Underwriting Ratios
Loss ratio - current year
47.8
%
56.1
%
33.1
%
46.1
%
Loss ratio - prior accident years
(0.9
%)
(12.4
%)
(24.3
%)
(8.5
%)
Loss ratio - total
46.9
%
43.7
%
8.8
%
37.6
%
Policy acquisition expense ratio
28.3
%
35.3
%
27.9
%
29.6
%
Underwriting ratio
75.2
%
79.0
%
36.7
%
67.2
%
Fidelis MGU commissions ratio
13.9
%
General & administrative expense
ratio
4.3
%
Combined ratio
85.4
%
Three Months Ended September
30, 2022
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
327.7
$
274.9
$
85.5
$
—
$
688.1
Net premiums written
225.7
225.2
43.6
—
494.5
Net premiums earned
217.7
104.5
111.4
—
433.6
Losses and loss adjustment expenses
(178.8
)
(32.6
)
(140.4
)
—
(351.8
)
Policy acquisition expenses
(48.1
)
(38.8
)
(25.6
)
—
(112.5
)
General and administrative expenses
—
—
—
(58.7
)
(58.7
)
Underwriting income/(loss)
(9.2
)
33.1
(54.6
)
(58.7
)
(89.4
)
Net realized and unrealized investment
losses
(12.3
)
Net investment income
11.1
Other income
0.3
Corporate and other expenses
—
Net foreign exchange gains
4.3
Financing costs
(9.3
)
Income before income taxes
(95.3
)
Income tax expense
4.2
Net income
(91.1
)
Net income attributable to non-controlling
interests
(1.6
)
Net income available to common
shareholders
$
(92.7
)
Losses and loss adjustment expenses
incurred - current year
(187.5
)
(36.4
)
(130.6
)
$
(354.5
)
Losses and loss adjustment expenses
incurred - prior accident years
8.7
3.8
(9.8
)
2.7
Losses and loss adjustment expenses
incurred - total
$
(178.8
)
$
(32.6
)
$
(140.4
)
$
(351.8
)
Underwriting Ratios
Loss ratio - current year
86.1
%
34.8
%
117.2
%
81.7
%
Loss ratio - prior accident years
(4.0
%)
(3.6
%)
8.8
%
(0.6
%)
Loss ratio - total
82.1
%
31.2
%
126.0
%
81.1
%
Policy acquisition expense ratio
22.1
%
37.1
%
23.0
%
25.9
%
Underwriting ratio
104.2
%
68.3
%
149.0
%
107.0
%
General & administrative expense
ratio
13.5
%
Combined ratio
120.5
%
Nine months ended September
30, 2023
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
1,818.3
$
367.2
$
609.6
$
—
$
2,795.1
Net premiums written
1,158.4
189.9
239.1
—
1,587.4
Net premiums earned
868.0
280.4
176.4
—
1,324.8
Losses and loss adjustment expenses
(416.4
)
(72.5
)
(20.7
)
—
(509.6
)
Policy acquisition expenses
(227.2
)
(105.1
)
(45.6
)
(147.4
)
(525.3
)
General and administrative expenses
—
—
—
(57.0
)
(57.0
)
Underwriting income
224.4
102.8
110.1
(204.4
)
232.9
Net realized and unrealized investment
losses
(2.4
)
Net investment income
80.8
Other income
0.2
Net gain on distribution of Fidelis
MGU
1,639.1
Corporate and other expenses
(3.4
)
Net foreign exchange gains
0.8
Financing costs
(26.6
)
Income before income taxes
1,921.4
Income tax expense
(17.2
)
Net income
1,904.2
Net income attributable to non-controlling
interests
—
Net income available to common
shareholders
$
1,904.2
Losses and loss adjustment expenses
incurred - current year
(383.7
)
(101.1
)
(72.6
)
$
(557.4
)
Losses and loss adjustment expenses
incurred - prior accident years
(32.7
)
28.6
51.9
47.8
Losses and loss adjustment expenses
incurred - total
$
(416.4
)
$
(72.5
)
$
(20.7
)
$
(509.6
)
Underwriting Ratios
Loss ratio - current year
44.2
%
36.1
%
41.1
%
42.1
%
Loss ratio - prior accident years
3.8
%
(10.2
%)
(29.4
%)
(3.6
%)
Loss ratio - total
48.0
%
25.9
%
11.7
%
38.5
%
Policy acquisition expense ratio
26.2
%
37.5
%
25.9
%
28.5
%
Underwriting ratio
74.2
%
63.4
%
37.6
%
67.0
%
Fidelis MGU commissions ratio
11.1
%
General & administrative expense
ratio
4.3
%
Combined ratio
82.4
%
Nine months ended September
30, 2022
Specialty
Bespoke
Reinsurance
Other
Total
Gross premiums written
$
1,244.5
$
573.0
$
605.4
$
—
$
2,422.9
Net premiums written
802.0
373.8
258.4
—
1,434.2
Net premiums earned
598.0
279.3
215.5
—
1,092.8
Losses and loss adjustment expenses
(409.9
)
(95.8
)
(204.9
)
—
(710.6
)
Policy acquisition expenses
(127.1
)
(94.8
)
(41.4
)
—
(263.3
)
General and administrative expenses
—
—
—
(136.1
)
(136.1
)
Underwriting income/(loss)
61.0
88.7
(30.8
)
(136.1
)
(17.2
)
Net realized and unrealized investment
losses
(37.5
)
Net investment income
23.6
Other income
1.6
Corporate and other expenses
(1.9
)
Net foreign exchange gains
4.1
Financing costs
(27.3
)
Income before income taxes
(54.6
)
Income tax expense
(5.7
)
Net income
(60.3
)
Net income attributable to non-controlling
interests
(7.0
)
Net income available to common
shareholders
$
(67.3
)
Losses and loss adjustment expenses
incurred - current year
(418.2
)
(107.8
)
(202.8
)
$
(728.8
)
Losses and loss adjustment expenses
incurred - prior accident years
8.3
12.0
(2.1
)
18.2
Losses and loss adjustment expenses
incurred - total
$
(409.9
)
$
(95.8
)
$
(204.9
)
$
(710.6
)
Underwriting Ratios
Loss ratio - current year
69.9
%
38.6
%
94.1
%
66.7
%
Loss ratio - prior accident years
(1.4
%)
(4.3
%)
1.0
%
(1.7
%)
Loss ratio - total
68.5
%
34.3
%
95.1
%
65.0
%
Policy acquisition expense ratio
21.3
%
33.9
%
19.2
%
24.1
%
Underwriting ratio
89.8
%
68.2
%
114.3
%
89.1
%
General & administrative expense
ratio
12.5
%
Combined ratio
101.6
%
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 realized and unrealized 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 nine months ended September 30, 2023 and
2022.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
($ in millions)
Average common shareholders'
equity
$
2,070.4
$
1,894.4
$
2,068.5
$
1,925.9
Opening common shareholders' equity
1,980.6
1,951.0
1,976.8
2,013.9
Adjustments related to the Separation
Transactions
—
—
(178.4
)
—
Adjusted opening common shareholders’
equity
1,980.6
1,951.0
1,798.4
2,013.9
Closing common shareholders' equity
2,160.1
1,837.8
2,160.1
1,837.8
Adjusted average common shareholders'
equity
2,070.4
1,894.4
1,979.3
1,925.9
Net income/(loss) available to common
shareholders
87.7
(92.7
)
1,904.2
(67.3
)
Adjustment for net gain on distribution of
Fidelis MGU
—
—
(1,639.1
)
—
Adjustment for net realized and unrealized
investment losses
5.3
12.3
2.4
37.5
Adjustment for net foreign exchange
gains
(2.4
)
(4.3
)
(0.8
)
(4.1
)
Adjustment for corporate and other
expenses
0.4
—
3.4
1.9
Tax impact of the above
(0.3
)
(1.8
)
(6.6
)
(7.8
)
Operating net income/(loss)
$
90.7
$
(86.5
)
$
263.5
$
(39.8
)
ROAE
4.2
%
(4.9
%)
92.1
%
(3.5
%)
Operating ROAE
4.4
%
(4.6
%)
13.3
%
(2.1
%)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231120305635/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
