Fidelis Insurance (FIHL) Q3 2024 earnings summary

Executive summary

• Gross premiums written grew 25.2% year-over-year to $741.9 million in Q3 2024 and 23.4% year-to-date to $3.45 billion, with strong underwriting profitability and a combined ratio of 87.4% for Q3 and 88.6% year-to-date.

• Annualized operating ROAE was 16.4% for Q3 and 13.3% year-to-date, with operating net income of $105.1 million ($0.92 per diluted share) for Q3 and $2.18 for nine months.

• Book value per diluted share increased 13% from year-end to $23.43.

• Returned $141 million to shareholders via dividends and share buybacks year-to-date, including repurchase of 6.6 million shares at an average price of $16.06.

• Launched Lloyd's Syndicate 3123, expanding opportunities, especially in the Bespoke segment.

Financial highlights

• Gross premiums written rose 25% to $742 million in Q3 2024; net premiums earned increased 24% to $635 million.

• Net investment income for Q3 2024 was $52.1 million, up from $33.1 million a year ago.

• Combined ratio was 87.4% for Q3 and 88.6% year-to-date.

• Book value per diluted share at September 30, 2024: $23.43, up 13% from year-end.

• Debt-to-total capital ratio stood at 16.2% with total capital over $3.1 billion.

Outlook and guidance

• Expect to maintain premium growth of approximately 20% for the full year, in line with last year.

• Targeting combined ratio in the mid to high 80s% and ROAE of 14%-16% for 2025, with stable market conditions anticipated.

• Focused on maximizing shareholder value through book value growth, consistent returns, and optimized capital management.