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Fidelis Insurance Holdings Ltd. (FIHL)
NYSE:FIHL
US Market
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Fidelis Insurance Holdings Ltd. (FIHL) AI Stock Analysis

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FIHL

Fidelis Insurance Holdings Ltd.

(NYSE:FIHL)

Rating:66Neutral
Price Target:
$17.50
▲(15.82%Upside)
Fidelis Insurance Holdings Ltd. shows strong financial health with solid cash flow and balance sheet metrics. However, challenges in valuation and technical analysis, coupled with risks from litigation and high combined ratios, weigh on the overall score. Positive growth and strategic capital management provide a balanced outlook.
Positive Factors
Growth and Performance
Gross written premiums increased 22% in the quarter, beating the +11% projection, with strong growth in both Reinsurance and Insurance.
Leadership and Management
Management is experienced, and Richard Brindle, head of the MGU side of FIHL, has a strong track record.
Market Conditions
Fidelis is well-positioned to benefit from prevailing hard market conditions in specialty insurance and reinsurance lines.
Negative Factors
Financial Losses
Fidelis announced surprise 4Q reserve additions for aviation/war claims of ~$287m, which negatively impacts the 2024 full year operating RoE by ~8pts, to an estimated ~5%.
Investment Income
Net investment income of $51 million missed expectations driven by a lower than expected yield.
Valuation Concerns
Higher expense ratio and novel capital structure of Fidelis are expected to take time for some investors to get comfortable valuing.

Fidelis Insurance Holdings Ltd. (FIHL) vs. SPDR S&P 500 ETF (SPY)

Fidelis Insurance Holdings Ltd. Business Overview & Revenue Model

Company DescriptionFidelis Insurance Holdings Ltd. (FIHL) is a leading specialty insurance and reinsurance company that operates across various sectors including property, catastrophe, energy, and marine. The company is known for its innovative approach to underwriting, leveraging data analytics and a strong risk management framework to offer tailored insurance solutions to its clients globally.
How the Company Makes MoneyFidelis Insurance Holdings Ltd. generates revenue primarily through underwriting premiums from its insurance and reinsurance operations. The company collects premiums from policyholders in exchange for providing coverage against specified risks, which includes property damage, catastrophic events, and other specialty risks. Additionally, FIHL invests a portion of the premiums collected in various financial instruments to generate investment income, contributing to overall earnings. Significant partnerships with brokers and other insurance entities enhance its distribution channels and access to diverse client bases, further boosting its revenue streams.

Fidelis Insurance Holdings Ltd. Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: -10.91%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The first quarter of 2025 showed positive growth in several segments and strong capital management, despite significant losses from California wildfires and challenges in the aviation segment. The company remains well-positioned, although the potential adverse impact from ongoing litigation remains a concern.
Q1-2025 Updates
Positive Updates
Top Line Growth
Fidelis Insurance Group recorded a top line growth of 14% for the first quarter, driven by strong retention levels and new business opportunities across the portfolio.
Strong Capital Management
The company’s strong capital position and strategic capital management have enabled them to continue growing and navigating market conditions effectively.
Marine Portfolio Growth
Continued growth in the marine portfolio year-on-year, driven by new construction business and capacity-driven demand.
Positive Net Investment Income
Net investment income increased to $50 million for the first quarter of 2025, reflecting a higher earned yield on cash and fixed income portfolio.
Strategic Capital Management
Year-to-date, Fidelis Insurance Group has repurchased $41.5 million of common shares at an average cost per share of $15.63, reflecting strategic capital management.
Negative Updates
High Combined Ratio
The combined ratio for the quarter was 115.6%, reflecting the impacts of the California wildfires and other loss events.
Significant Losses from Wildfires
The impact from the California wildfires to first quarter results was $167 million, contributing to a high catastrophe and large loss ratio of 55.3%.
Aviation and Aerospace Premiums Reduction
There was a year-on-year reduction in aviation and aerospace premiums, largely driven by the timing of a line slip renewal.
Potential Adverse Judgment Impact
Depending on the judgment from the English trial concerning Russia-Ukraine aviation litigation, there could be a net adverse prior year development impact of up to $150 million.
Company Guidance
During the first quarter of 2025, Fidelis Insurance Group reported a 14% growth in gross premiums written, totaling $1.7 billion, driven by strong retention levels and new business opportunities. The company's combined ratio was reported at 115.6%, influenced by the California wildfires, which impacted results by $167 million. In the insurance segment, premiums increased by 7% to $1.3 billion, while the reinsurance segment saw a 39% rise to $456 million, primarily due to new business and reinstatement premiums. Net premiums written grew by 32% compared to the first quarter of 2024. The company highlighted its disciplined approach to underwriting and capital management, with share repurchases totaling $41.5 million year-to-date at an average price of $15.63 per share. Despite the elevated catastrophe losses, the company remains focused on pursuing profitable underwriting opportunities and strategic capital management, with a continued emphasis on optimizing shareholder returns through capital deployment and share repurchases.

Fidelis Insurance Holdings Ltd. Financial Statement Overview

Summary
Fidelis Insurance Holdings Ltd. shows solid financial health with robust cash flow management and a strong balance sheet. Despite moderate profitability and revenue challenges, the company's low leverage and effective capital management support its financial stability.
Income Statement
72
Positive
Fidelis Insurance Holdings Ltd. has experienced volatility in its revenue and net income over the years. The latest annual revenue shows a decline from the previous year, but the company managed to maintain profitability with a net income margin of approximately 4.68% in the latest year. Despite this, the absence of EBIT in the most recent year suggests operational challenges. The company's EBITDA margin stands at 6.45%, indicating moderate operational efficiency.
Balance Sheet
75
Positive
The company maintains a strong equity position with an equity ratio of approximately 20.81%, showcasing a stable financial foundation. The debt-to-equity ratio is low at 0.18, indicating prudent financial leverage and a conservative capital structure. However, a reduction in total assets compared to the previous year highlights the need for careful asset management.
Cash Flow
80
Positive
Fidelis Insurance Holdings Ltd. demonstrates robust cash flow management with a significant operating cash flow to net income ratio of 5.45, reflecting strong cash generation capabilities relative to earnings. The free cash flow has shown substantial growth, indicating effective capital expenditure management and liquidity position. The free cash flow to net income ratio is a healthy 5.41, further supporting the company's strong cash flow stance.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.48B2.42B3.59B1.52B1.19B782.60M
Gross Profit1.88B266.10M3.60B1.52B1.19B782.60M
EBITDA24.90M156.20M2.08B119.50M118.60M154.00M
Net Income-10.40M113.30M2.13B52.60M68.30M126.50M
Balance Sheet
Total Assets12.77B11.77B7.68B8.31B7.05B5.32B
Cash, Cash Equivalents and Short-Term Investments3.96B1.11B1.32B3.30B2.83B2.52B
Total Debt449.10M448.90M514.60M476.00M478.30M456.50M
Total Liabilities10.38B9.32B5.23B6.33B5.03B3.34B
Stockholders Equity2.39B2.45B2.45B1.98B2.01B1.98B
Cash Flow
Free Cash Flow215.80M613.60M488.80M722.60M338.70M314.10M
Operating Cash Flow220.40M618.20M495.20M741.40M345.80M316.10M
Investing Cash Flow-14.50M-475.80M-834.90M215.90M-1.09B-481.30M
Financing Cash Flow-170.30M-153.90M-106.90M-16.20M-18.20M948.00M

Fidelis Insurance Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.11
Price Trends
50DMA
16.31
Negative
100DMA
16.16
Negative
200DMA
16.73
Negative
Market Momentum
MACD
-0.30
Positive
RSI
35.41
Neutral
STOCH
11.51
Positive
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 15.11 is below the 20-day moving average (MA) of 15.74, below the 50-day MA of 16.31, and below the 200-day MA of 16.73, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 11.51 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.08B8.7620.50%4.09%13.29%17.14%
75
Outperform
$8.94B10.2614.63%8.60%10.83%20.74%
73
Outperform
$32.25B8.8917.09%23.79%-32.09%
67
Neutral
$17.78B11.609.11%3.88%10.92%-3.96%
66
Neutral
$1.65B17.57-0.42%2.65%23.28%-103.35%
64
Neutral
$3.41B79.5260.58%23.49%60.38%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FIHL
Fidelis Insurance Holdings Ltd.
15.11
-1.42
-8.59%
ACGL
Arch Capital Group
86.06
-7.76
-8.27%
ORI
Old Republic International
36.17
4.43
13.96%
IGIC
International General Insurance Holdings
23.85
8.15
51.91%
GSHD
GooseHead Insurance
90.91
7.58
9.10%
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.Date of analysis: Jul 03, 2025