Fidelis Insurance Holdings Ltd. (FIHL) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 2.55%
• Average Volume (3M): 588.24K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.52
• Revenue Growth: 11.71%
• EPS Growth: -101.08%
• Country: US
• Employees: 98
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 1.09
• Shares Outstanding: 86,480,150
• 10 Day Avg. Volume: 673,397
• 30 Day Avg. Volume: 588,238
• PEG Ratio: 0.08
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.83
• P/FCF Ratio: -5.07
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 2.31
• Enterprise Value/Ebitda: 4.70
• 1Y Price Target: $21.83
• Price Target Upside: 16.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.49
• Revenue Forecast (FY): $3.83B

• Rating: 56 Neutral
• Price Target: $19.50 ▲(4.50% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

Overall score reflects (1) mixed financial performance driven primarily by the 2025 reversal to negative operating/free cash flow and volatility in results, (2) weak near-term technical momentum with price below key short-term averages and RSI below 40, partially offset by (3) favorable valuation (low P/E and a moderate dividend) and (4) a generally positive earnings call emphasizing underwriting improvement, growth, and capital returns.

Positive Factors

Underwriting improvement (combined ratio)

A sustained combined ratio improvement to 80.6% reflects stronger underwriting discipline, improved loss experience and favorable prior-year development. Durable through-cycle underwriting gains support recurring operating profitability, reserve stability and capacity to deploy capital into buybacks or growth.

Premium growth and diversification

Record gross premiums written and expansion into asset-backed finance plus new underwriting partnerships broaden revenue sources and distribution. Diversified lines and partner relationships reduce single-line concentration, support multi-year top-line stability and improve resilience to single-market shocks.

Capital returns and shareholder simplification

Aggressive buybacks and the CVC stake repurchase simplify the shareholder base and show capital headroom. This signals management confidence, enhances ROE and gives flexibility to allocate capital between underwriting needs and shareholder returns over the coming years.

Negative Factors

Cash flow deterioration

A sharp reversal to negative operating and free cash flow materially weakens liquidity and raises funding risk for claims, collateral and capital returns. If cash conversion does not recover, the company may need to curtail buybacks/dividends or seek external funding, pressuring strategic flexibility.

Volatile earnings and returns

Large swings in returns and earnings quality driven by reserve development and one-offs make underwriting economics unpredictable. Persistent volatility complicates multi-year planning, pricing discipline and capital allocation, undermining confidence in sustainably repeatable profitability.

Business mix shift and premium visibility

Moving into longer-duration asset-backed and portfolio credit business while exiting aviation reduces near-term earned premium and delays revenue recognition. That mix shift complicates pricing comparisons, forecasting and short-term underwriting cadence, increasing modeling and reserve uncertainty.

Fidelis Insurance Holdings Ltd. Business Overview & Revenue Model

Company Description

Fidelis Insurance Holdings Limited, together with its subsidiaries, provides insurance and reinsurance products in Bermuda, Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, and other risk transfer opportunities. The company is also involved in specialty treaty reinsurance, and surety bonds and guarantees activities; and upstream energy, energy liability, and marine businesses; and provision of product recall and contamination, and marketing services. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.

How the Company Makes Money

Fidelis Insurance Holdings Ltd. generates revenue primarily through the underwriting of insurance and reinsurance policies. The company earns premiums from policyholders, which serve as a key revenue stream. Additionally, FIHL invests the premiums it collects in a diversified portfolio, generating investment income. The company may also engage in strategic partnerships with brokers and other insurance firms to expand its market reach and enhance its product offerings, contributing to its overall earnings. Factors such as effective risk management, claims handling efficiency, and market positioning play significant roles in its profitability.

Fidelis Insurance Holdings Ltd. Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet looks serviceable with moderate leverage (debt-to-equity ~0.35), and profitability improved in 2025 versus 2024, but results are volatile year to year. The biggest concern is a sharp deterioration in 2025 cash generation, with operating and free cash flow turning negative, weakening earnings quality and raising near-term funding/liquidity risk if it persists.

Income Statement

Revenue in 2025 rose modestly (+4.8%) after a sharp decline in 2024, showing an uneven top-line trajectory. Profitability improved in 2025 versus 2024 (net margin ~9.0% vs ~4.7%), but results are highly volatile across years, highlighted by an outsized 2023 profit level (net margin ~59%) that appears non-recurring relative to surrounding periods. Overall, earnings power looks positive but inconsistent, which limits confidence in the durability of margins.

Balance Sheet

Leverage remains moderate with debt-to-equity at ~0.35 in 2025 (up from ~0.18 in 2024), indicating an increased but still manageable debt load. Equity is sizable (~$2.4B) and provides a meaningful cushion for an insurer, though total assets fell from 2024 to 2025, suggesting balance sheet contraction. Returns on equity are positive but swing materially (from ~87% in 2023 to ~9% in 2025), reinforcing that profitability is not yet stable.

Cash Flow

Cash generation deteriorated significantly in 2025, with operating cash flow turning negative (about -$408M) and free cash flow also negative (about -$410M), reversing strong positive free cash flow in 2024 (~$614M). This implies earnings in 2025 were not supported by cash flow and introduces higher funding/liquidity risk if the pattern persists. While prior years show strong conversion of profits into free cash flow, the latest year is a clear setback and drives the weak score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.50B	2.42B	3.59B	1.52B	1.19B
Gross Profit	1.41B	266.10M	2.17B	1.52B	247.50M
EBITDA	323.30M	156.20M	2.08B	119.50M	118.60M
Net Income	225.50M	113.30M	2.13B	52.60M	68.30M
Balance Sheet
Total Assets	9.37B	11.77B	10.03B	8.31B	7.05B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.11B	1.32B	3.53B	2.83B
Total Debt	843.20M	448.90M	448.20M	476.00M	478.30M
Total Liabilities	6.97B	9.32B	7.58B	6.33B	5.03B
Stockholders Equity	2.40B	2.45B	2.45B	1.98B	2.01B
Cash Flow
Free Cash Flow	-409.50M	613.60M	488.80M	722.60M	338.70M
Operating Cash Flow	-408.30M	618.20M	495.20M	741.40M	345.80M
Investing Cash Flow	682.70M	-475.80M	-834.90M	215.90M	-1.09B
Financing Cash Flow	19.80M	-153.90M	-106.90M	-16.20M	-18.20M

Fidelis Insurance Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIHL, the sentiment is Negative. The current price of 18.66 is below the 20-day moving average (MA) of 19.07, below the 50-day MA of 18.98, and above the 200-day MA of 17.67, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 53.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIHL.

Fidelis Insurance Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	84 Outperform	$32.79B	7.15	19.02%	―	16.68%	-28.54%
IGIC	79 Outperform	$981.16M	8.68	18.79%	4.00%	0.76%	―
ORI	70 Outperform	$9.31B	11.89	15.32%	6.98%	7.08%	-4.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AIG	67 Neutral	$39.65B	15.62	7.50%	2.02%	-23.02%	52.43%
GSHD	60 Neutral	$1.54B	66.09	-30.28%	―	24.81%	55.93%
FIHL	56 Neutral	$1.61B	9.21	-0.57%	2.55%	11.71%	-101.08%

Fidelis Insurance Holdings Ltd. Corporate Events

Fidelis Insurance Group to Buy Back All Remaining CVC Stake in $163 Million Share Repurchase

On March 2, 2026, Fidelis Insurance Group announced it had entered into a definitive agreement to repurchase all 8,597,170 remaining common shares held by founding shareholder CVC Falcon Holdings Limited for $19.00 per share, totaling about $163.3 million. Executives said buying the stock below the firm’s year-end 2024 diluted book value per share of $24.61 should be meaningfully accretive to book value and return on equity, while also simplifying the shareholder base as CVC exits its ownership stake.

Management framed the deal as a vote of confidence in Fidelis’s balance sheet strength and growth trajectory, highlighting continued momentum and an ongoing commitment to long-term value creation for remaining investors. The transaction underscores Fidelis’s use of capital management, including targeted buybacks, to bolster its market positioning in specialty insurance and reinsurance, with legal advisory support on the deal provided by Sidley Austin LLP.

The most recent analyst rating on (FIHL) stock is a Buy with a $26.50 price target. To see the full list of analyst forecasts on Fidelis Insurance Holdings Ltd. stock, see the FIHL Stock Forecast page.

Fidelis Insurance Posts Strong 2025 Results and Unveils Rebrand to Pelagos Insurance Capital

Fidelis Insurance Holdings reported sharply improved results for the fourth quarter and full year 2025, highlighting a fourth-quarter combined ratio of 80.6% and annualized operating return on average equity of 18.3%. The group also disclosed record gross premiums written of $4.7 billion in 2025, book value growth to $24.61 per diluted share, and total capital returns of $133.6 million to shareholders in the fourth quarter, including sizable buybacks and dividends.

For the quarter ended December 31, 2025, net income reached $117.8 million and operating net income $110.4 million, driven by a swing from prior-year reserve strengthening to $35.4 million of favorable development and lower catastrophe and large losses. For the full year, Fidelis generated $225.5 million of net income and an improved 94.8% combined ratio, while on February 25, 2026 it also announced plans to change its corporate name to Pelagos Insurance Capital Limited, signaling a potential rebranding as it seeks to reinforce its positioning in specialty insurance and reinsurance markets.

The most recent analyst rating on (FIHL) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Fidelis Insurance Holdings Ltd. stock, see the FIHL Stock Forecast page.

Fidelis Insurance Group Boosts Buyback Authorization to $400 Million and Declares $0.15 Dividend

On February 20, 2026, Fidelis Insurance Group announced that its board had expanded the company’s common share repurchase authorization to a total of $400 million and declared a quarterly dividend of $0.15 per common share, payable on March 27, 2026, to shareholders of record on March 16, 2026. These moves continue a pattern of capital return that saw $313.7 million distributed in 2025, including sizable buybacks and dividends, and are intended to capitalize on what management views as a significant discount to net book value while signaling confidence in the firm’s capital position and ongoing specialty underwriting strategy.

The company highlighted that it repurchased 15,184,976 common shares for $261.4 million in 2025, including two privately negotiated transactions totaling $75 million with CVC Falcon Holdings Limited in the fourth quarter. Management framed the enlarged buyback capacity and ongoing dividend as giving Fidelis added flexibility to balance growth opportunities with shareholder returns, potentially enhancing earnings per share and reinforcing its value-focused positioning in the specialty insurance and reinsurance market.

The most recent analyst rating on (FIHL) stock is a Sell with a $17.50 price target. To see the full list of analyst forecasts on Fidelis Insurance Holdings Ltd. stock, see the FIHL Stock Forecast page.