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Fidelis Insurance Holdings Ltd. (FIHL)
NYSE:FIHL
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Fidelis Insurance Holdings Ltd.
(NYSE:FIHL)
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Select Model
Rating:57Neutral
Price Target:
$19.50
▲(2.31% Upside)
Action:DowngradedDate:11/20/25
Fidelis Insurance Holdings Ltd. has a mixed outlook. The strong earnings call performance and positive technical indicators are offset by poor financial performance and unattractive valuation. The company's ability to navigate financial challenges will be crucial for future performance.
Positive Factors
Combined Ratio Improvement
A strong combined ratio indicates effective underwriting and cost management, enhancing profitability and competitive positioning in the insurance market.
Reinsurance Premium Growth
Significant growth in reinsurance premiums suggests strong demand and effective market penetration, supporting long-term revenue expansion.
Strategic Focus on Margin Discipline
A focus on margin discipline and strategic partnerships enhances operational efficiency and market adaptability, driving sustainable growth.
Negative Factors
Negative Net Profit Margin
A negative net profit margin indicates ongoing profitability challenges, potentially impacting financial stability and investor confidence.
Cash Flow Challenges
Declining cash flow limits the company's ability to invest in growth opportunities and manage debt, affecting long-term financial health.
Challenges in Aviation Sector
Persistent challenges in the aviation sector could hinder revenue growth and require strategic adjustments to maintain competitiveness.
Fidelis Insurance Holdings Ltd. (FIHL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.00B
Dividend Yield2.55%
Average Volume (3M)588.24K
Price to Earnings (P/E)9.0
Beta (1Y)0.53
Revenue Growth11.71%
EPS Growth-101.08%
CountryUS
Employees98
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.09
Shares Outstanding104,861,824
10 Day Avg. Volume673,397
30 Day Avg. Volume588,238
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)0.85
Price to Sales (P/S)0.86
P/FCF Ratio3.40
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit1.74
Enterprise Value/Ebitda46.89
Forecast
1Y Price Target
$21.20Price Target Upside11.23% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)3.7
Revenue Forecast (FY)$3.53B
Fidelis Insurance Holdings Ltd. Business Overview & Revenue Model
Company DescriptionFidelis 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 MoneyFidelis 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. Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives—material combined ratio improvement (47 points YoY), robust premium growth (7% full year), high quarterly ROAE (18.3%), expanding high‑quality underwriting partnerships, meaningful share repurchases and strengthened reinsurance protection. Headwinds include legacy Russia‑Ukraine aviation litigation impacts (previous adverse development), a strategic 50% reduction in aviation premium, a 13% decline in quarter net earned premium, and a shift toward longer-duration earning lines that reduce near-term earned premium visibility. On balance, management showed resolution of legacy issues, clear capital discipline, and a pathway for mid-single-digit top-line growth in 2026, so the highlights significantly outweigh the lowlights.Q4-2025 Updates
Positive Updates
Significant Combined Ratio Improvement
Fourth quarter combined ratio of 80.6%, a 47-point improvement year-over-year, and second consecutive quarter exceeding through-the-cycle targets.
Strong Premium Growth
Gross premiums written grew 7% for the full year to $4.7 billion, with fourth-quarter top-line premium growth of 3% and Insurance segment GWP up ~6% in 2025.
High Return on Equity and Quarterly Profit
Annualized operating ROAE of 18.3% for the quarter; operating net income of $110 million ($1.09 per diluted share) in Q4 and full-year operating net income of $205 million ($1.92 per diluted share).
Book Value and Shareholder Returns
Book value per diluted share of $24.61; including dividends, book value grew 15.2% during the year. Repurchased 15.2 million common shares in 2025 (avg price $17.22), contributing $0.90 to book value per share in 2025 and $1.24 since program inception; board increased buyback authorization to $400 million.
Portfolio Diversification and New Partnerships
Expanded underwriting partnerships (examples: Euclid Mortgage, Bamboo Insurance, Oak Global) and ongoing long-term ROFR with The Fidelis Partnership; asset-backed finance and portfolio credit grew by $132 million and now comprise over 11% of total premium.
Improved Loss Experience and Prior-Year Development
Catastrophe and large losses improved to $51 million (9.1 pts of combined ratio) from $133 million (21 pts) a year earlier; recognized $35 million of favorable prior-year development in Q4 after prior adverse development tied to Russia-Ukraine aviation litigation.
Disciplined Capital and Risk Management
Delivered 11% premium growth in reinsurance for the year, strengthened outwards reinsurance (including a $75 million Herbie Re cat bond for U.S. earthquake protection), reported moderate PMLs (1-in-250 CA quake mid-single-digit % of shareholder equity; 1-in-100 SE Gulf/Caribbean <10% of SHE).
Negative Updates
Russia-Ukraine Aviation Litigation Legacy
Legacy exposure required judicious claim settlements and drove significant prior-year adverse development ($270 million in prior period), though management indicates this was largely addressed in H1 and led to favorable development in later quarters.
Aviation Business Contraction
Strategic decision to walk away from aviation risks resulted in approximately a 50% year-over-year decline in aviation gross written premium, reducing near-term earned premium volumes in that line.
Decline in Net Premiums Earned
Net premiums earned decreased by 13% in the quarter versus prior year, driven by lower reinstatement premiums (California wildfires), exiting lower-margin aviation exposure, and a growing mix of longer-duration lines.
Shift Toward Longer-Earning Business
Growth in asset-backed finance and portfolio credit increases mix of business with 5–7 year earning patterns (versus typical 1–2 years), complicating near-term earned premium visibility and modeling.
Rising Operating Costs and Tax Rate
Quarterly G&A was $25 million with expected increase to ~ $29 million per quarter in 2026 due to strategic investments; full-year effective tax rate rose to 18.2% from 16.9% in 2024 (expected ~16% in 2026).
Market Pricing Moderation
Management noted moderation in pricing across some areas and a ~20% rate reduction in parts of the reinsurance placement, which required trade-offs (company used savings to broaden and improve coverage) and could signal increased competition on rates.
Company Guidance
Management's guidance and forward-looking metrics included Q1 2026 net earned premium of $450–$500 million for the Insurance segment and $50–$60 million for Reinsurance; a 2026 top‑line growth target of mid‑single digits; expected portfolio return of ~4.0–4.5% for 2026; a full‑year 2026 effective tax rate of ~16%; quarterly G&A of ~$29 million; and an overall 2026 loss ratio in the mid‑40% range (insurance ~2/3 attritional / 1/3 cat; reinsurance roughly 50/50). They reiterated policy acquisition expense guidance of low‑30s points for insurance and mid‑20s for reinsurance, and highlighted capital flexibility with an increased $400 million repurchase authorization after buying 15.2 million shares in 2025 at an average $17.22 (adding $0.90 to 2025 BVPS) plus a subsequent 967k shares for $18 million at $19.12; operating and portfolio context cited on the call included Q4 operating net income $110M ($1.09/sh), annual operating net income $205M ($1.92/sh), Q4 combined ratio 80.6% (47‑point YoY improvement), Q4 GPW ~$978M and FY2025 GPW $4.7B (+7%), asset‑backed finance now >11% of premium (GPW +$132M YoY), Q4 attritional loss ratio 30.4%, Q4 catastrophe/large losses $51M (9.1 pts), and 1‑in‑250 California EQ and 1‑in‑100 SE Gulf/Caribbean PMLs at mid‑single digit and <10% of shareholders’ equity respectively.Fidelis Insurance Holdings Ltd. Financial Statement Overview
Summary
Fidelis Insurance Holdings Ltd. faces financial difficulties with negative net profit margin and declining revenues. Despite a stable balance sheet with a moderate debt-to-equity ratio, the company struggles with negative cash flow and profitability metrics.Income Statement
The income statement reveals a challenging period for Fidelis Insurance Holdings Ltd. with a negative net profit margin of -0.58% in the TTM, indicating losses. Revenue growth has been negative, showing a decline in sales compared to previous periods. However, the company maintained a gross profit margin of 36.76%, suggesting some efficiency in managing production costs. The EBIT and EBITDA margins are low, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.35, indicating a balanced approach to leveraging. However, the return on equity is negative at -0.61%, reflecting the company's recent unprofitability. The equity ratio stands at 19.34%, suggesting a stable capital structure with a reasonable proportion of equity financing.60
Neutral
Cash Flow
Cash flow analysis indicates a significant decline in operating cash flow, with a negative free cash flow growth rate. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow generation is aligned with net income, albeit both are negative. The company faces challenges in generating positive cash flow from operations.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.50B | 2.42B | 3.59B | 1.52B | 1.19B | 782.60M |
| Gross Profit | 918.80M | 266.10M | 2.17B | 1.52B | 247.50M | 278.90M |
| EBITDA | 34.00M | 156.20M | 2.08B | 119.50M | 118.60M | 154.00M |
| Net Income | -14.50M | 113.30M | 2.13B | 52.60M | 68.30M | 126.50M |
Balance Sheet | ||||||
| Total Assets | 12.49B | 11.77B | 10.03B | 8.31B | 7.05B | 5.32B |
| Cash, Cash Equivalents and Short-Term Investments | 3.79B | 1.11B | 1.32B | 3.53B | 2.83B | 2.52B |
| Total Debt | 842.90M | 448.90M | 448.20M | 476.00M | 478.30M | 456.50M |
| Total Liabilities | 10.07B | 9.32B | 7.58B | 6.33B | 5.03B | 3.34B |
| Stockholders Equity | 2.42B | 2.45B | 2.45B | 1.98B | 2.01B | 1.98B |
Cash Flow | ||||||
| Free Cash Flow | -512.70M | 613.60M | 488.80M | 722.60M | 338.70M | 314.10M |
| Operating Cash Flow | -511.00M | 618.20M | 495.20M | 741.40M | 345.80M | 316.10M |
| Investing Cash Flow | 438.00M | -475.80M | -834.90M | 215.90M | -1.09B | -481.30M |
| Financing Cash Flow | 142.20M | -153.90M | -106.90M | -16.20M | -18.20M | 948.00M |
Fidelis Insurance Holdings Ltd. Technical Analysis
Negative
19.06
Price Trends
19.28
Negative
18.82
Positive
17.65
Positive
Market Momentum
0.16
Positive
42.90
Neutral
25.60
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 19.06 is below the 20-day moving average (MA) of 19.56, below the 50-day MA of 19.28, and above the 200-day MA of 17.65, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 25.60 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. Risk Analysis
Fidelis Insurance Holdings Ltd. disclosed 95 risk factors in its most recent earnings report. Fidelis Insurance Holdings Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The use or anticipated use of artificial intelligence ("AI") technologies, including generative AI, by the Group or third parties, may increase or create new operational risks. Q4, 2024
2.
The U.K.'s multinational top-up tax ("MTT") or domestic top-up tax ("DTT") may adversely impact the Group's tax liability. Q4, 2024
3.
The Group could be materially adversely affected to the extent that important third parties with whom the Group does business do not adequately or appropriately manage their risks, commit fraud or otherwise breach obligations owed to the Group. Q4, 2024
Fidelis Insurance Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $35.63B | 8.62 | 19.54% | ― | 16.68% | -28.54% | |
79 Outperform | $1.11B | 8.72 | 18.68% | 4.00% | 0.76% | ― | |
70 Outperform | $10.53B | 11.52 | 16.22% | 6.98% | 7.08% | -4.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $43.19B | 14.83 | 7.40% | 2.02% | -23.02% | 52.43% | |
60 Neutral | $1.98B | 51.77 | ― | ― | 24.81% | 55.93% | |
57 Neutral | $2.00B | 8.97 | -0.57% | 2.55% | 11.71% | -101.08% |
* Financial Sector Average
FIHL
Fidelis Insurance Holdings Ltd.
19.06
3.70
24.09%
AIG
American International Group
80.49
-0.37
-0.46%
ACGL
Arch Capital Group
100.15
7.17
7.71%
ORI
Old Republic International
42.87
7.36
20.72%
IGIC
International General Insurance Holdings
25.20
0.80
3.28%
GSHD
GooseHead Insurance
54.20
-66.33
-55.03%
Fidelis Insurance Holdings Ltd. Corporate Events
Fidelis Insurance Reports Strong Q3 2025 Results Amid Market Challenges
Nov 12, 2025
On November 12, 2025, Fidelis Insurance Holdings Limited announced its financial results for the third quarter ended September 30, 2025. The company reported a significant improvement in its combined ratio to 79.0% and a notable increase in net income to $130.5 million compared to the previous year. Despite facing challenges such as the California wildfires and an English High Court judgment, Fidelis achieved a growth in gross premiums written and maintained a strong capital position, allowing for substantial capital returns to shareholders. The results reflect Fidelis’s strategic focus on margin discipline and expanding underwriting partnerships, positioning the company well for future growth in a hard market.
The most recent analyst rating on (FIHL) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Fidelis Insurance Holdings Ltd. stock, see the FIHL Stock Forecast page.
Fidelis Insurance Declares $0.15 Dividend for December 2025
Nov 3, 2025
On November 3, 2025, Fidelis Insurance Holdings Limited announced that its Board of Directors has approved a dividend of $0.15 per share, to be paid on December 23, 2025, to shareholders of record as of December 10, 2025. This decision reflects the company’s robust financial health and strategic positioning in the global insurance market, potentially enhancing shareholder value and confidence.
The most recent analyst rating on (FIHL) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Fidelis Insurance Holdings Ltd. stock, see the FIHL Stock Forecast page.
Fidelis Insurance Unveils Strategic Presentation on October 28, 2025
Oct 28, 2025
On October 28, 2025, Fidelis Insurance Holdings Limited released a company slide presentation to provide insights into its strategic plans and market positioning. The presentation highlighted the company’s focus on growth, risk management, and competitive positioning in the insurance and reinsurance sectors. This announcement is significant for stakeholders as it outlines Fidelis’s strategies for navigating industry challenges and leveraging opportunities for future growth.
The most recent analyst rating on (FIHL) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Fidelis Insurance Holdings Ltd. stock, see the FIHL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.