Fidelis Insurance (FIHL) Q2 2024 earnings summary

Executive summary

• Gross premiums written grew 24.7% year-over-year to $1.2 billion in Q2 2024 and 22.9% to $2.7 billion for the half-year, driven by Specialty and Reinsurance segments.

• Operating net income was $63 million ($0.54 per diluted share) in Q2, with annualized operating ROAE of 10% for Q2 and 12.2% for the half-year.

• Combined ratio was 92.7% in Q2, impacted by catastrophe and large losses, especially in specialty and bespoke segments; half-year combined ratio was 89.3%.

• Book value per diluted share increased to $21.71 at June 30, 2024, up 34% since YE 2022.

• Maintains a robust capital position with over $3.0 billion in total capital and a debt-to-total capital ratio of 16.7%.

Financial highlights

• Net investment income rose to $46 million in Q2 (up 68% YoY) and $87 million for the half-year (up 82% YoY).

• Catastrophe and large losses more than doubled year-over-year in Q2 to $181.2 million; half-year at $284.2 million.

• Net favorable prior year reserve development of $68.6 million in Q2 and $135.6 million for the half-year.

• Completed $50 million share repurchase program and authorized a new $200 million share repurchase program.

• Repurchased 2,290,020 shares for $38.7 million in H1 2024.

Outlook and guidance

• Targeting full-year premium growth in line with prior year (~20%) and operating ROAE of 14%-16%.

• Confident in maintaining combined ratios in the mid- to high 80s across the cycle.

• Market conditions remain favorable, with mature hard market and disciplined capacity.