Fidelis profit soars, expects hard market across core lines to continue
Fidelis Insurance Holdings has reported a 346% increase in operating net profit in its first full year of results as a public company. Its CEO Dan Burrows said the company expected hard market conditions to continue across its core lines.
The Bermuda-based company produced a net profit of $2.1 billion, largely driven by the spin-off of affiliate Fidelis MGU, in 2023.
Operating net profit for the year rose to $398.9 million for the year from $89.5 million n the prior year.
Proceeds from the distribution of Fidelis MGU were $1.6 billion while the company also recorded a deferred tax benefit of $90 million relating to the introduction of Bermuda corporate income tax in 2025.
For the quarter, Fidelis reported a 90% rise in net profit of $228 million compared to $119 million, but this would have included the Bermuda tax provision. Operating net profit rose to $135.4 million from $129.3 million.
Gross written premiums were $783.9 million for the quarter, up 32% from $595.2 million while they rose 19% to $3.6 billion for the year.
The company also enjoyed a favourable prior year reserve development of $15 million for the quarter and $69 million for the year while net investment incomes rose 126% to $38.7 million for the quarters and 194% to $119.5 million for the year.
The combined ratio for the quarter worsened to 81.4% for the quarter from 66.2% but improved from 91.9% to 82.1% for the year.
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% and annualised Operating ROAE of 23.6% 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.”
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