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Fidelis Insurance Holdings Ltd. (FIHL)
:FIHL
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Fidelis Insurance Holdings Ltd.
(NYSE:FIHL)
Rating:65Neutral
Price Target:
$17.50
▲( 2.64% Upside)
Positive Factors
Earnings Growth
Gross written premiums increased 22%, beating projections, with strong growth in both Reinsurance and Insurance.
Management and Strategy
Blue-chip TRV signed off on FIHL's opportunistic growth, which is viewed as a positive.
Market Conditions
Fidelis is well-positioned to benefit from prevailing hard market conditions in specialty insurance and reinsurance lines.
Negative Factors
Expense Ratio
Higher expense ratio and novel capital structure of Fidelis are expected to take time for some investors to get comfortable valuing.
Financial Impact
Surprise 4Q reserve additions for aviation/war claims of $287m negatively impact the 2024 full year operating RoE by 8pts, to an estimated 5%.
Operational Challenges
The uniqueness of Fidelis’ bifurcated balance sheet/MGU structure has caused investors to exercise caution.
Fidelis Insurance Holdings Ltd. (FIHL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.79B
Dividend Yield2.35%
Average Volume (3M)492.16K
Price to Earnings (P/E)17.6
Beta (1Y)0.45
Revenue Growth23.28%
EPS Growth-103.35%
CountryUS
Employees98
SectorFinancial
Sector Strength81
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)-0.41
Shares Outstanding109,117,910
10 Day Avg. Volume485,245
30 Day Avg. Volume492,156
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.78
Price to Sales (P/S)0.00
P/FCF Ratio3.10
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit0.66
Enterprise Value/Ebitda1.33
Forecast
1Y Price Target
$19.39Price Target Upside13.72% Upside
Rating ConsensusHold
Number of Analyst Covering9
Fidelis Insurance Holdings Ltd. Business Overview & Revenue Model
Company DescriptionFidelis Insurance Holdings Ltd. (FIHL) is a global provider of specialty insurance and reinsurance solutions. The company focuses on offering a range of bespoke insurance products across various sectors, including property, energy, marine, and aviation. By leveraging deep industry expertise and a strong underwriting approach, FIHL delivers tailored risk management solutions to meet the specific needs of its clients.
How the Company Makes MoneyFidelis Insurance Holdings Ltd. makes money primarily through underwriting premiums for insurance and reinsurance products. The company generates revenue by assessing and pricing risk for its clients and charging premiums accordingly. FIHL's key revenue streams include premiums from direct insurance contracts and reinsurance agreements, where it assumes part of the risk from other insurance companies. Additionally, the company invests the premiums received in various financial instruments to earn investment income, which contributes to its overall profitability. Significant partnerships with brokers and strategic alliances with other insurers enhance its market reach and support revenue growth.
Fidelis Insurance Holdings Ltd. Financial Statement Overview
Summary
Fidelis Insurance Holdings Ltd. demonstrates a robust financial foundation with a strong balance sheet and excellent cash flow management. Despite challenges in revenue and profitability as indicated by a modest income statement score, the low leverage and high liquidity position strengthen its overall financial health.Income Statement
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.72
Positive
Balance Sheet
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.75
Positive
Cash Flow
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.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.42B | 3.59B | 1.50B | 1.19B | 782.60M | Gross Profit |
| 2.42B | 3.60B | 1.50B | 1.19B | 782.60M | EBIT |
| 136.40M | 2.09B | 1.65B | 67.70M | 114.70M | EBITDA |
| 156.20M | 2.08B | 119.50M | 118.60M | 154.00M | Net Income Common Stockholders |
| 113.30M | 2.13B | 1.65B | 68.30M | 126.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.11B | 1.32B | 3.30B | 2.83B | 2.52B | Total Assets |
| 11.77B | 7.68B | 8.07B | 7.05B | 5.32B | Total Debt |
| 448.90M | 514.60M | 476.00M | 478.30M | 456.50M | Net Debt |
| -294.10M | -264.20M | -514.50M | 153.20M | -510.70M | Total Liabilities |
| 9.32B | 5.23B | 6.27B | 5.03B | 3.34B | Stockholders Equity |
| 2.45B | 2.45B | 1.80B | 2.01B | 1.98B |
| Cash Flow | Free Cash Flow | |||
| 613.60M | 488.80M | 724.10M | 356.00M | 314.10M | Operating Cash Flow |
| 618.20M | 495.20M | 742.90M | 363.10M | 316.10M | Investing Cash Flow |
| -475.80M | -834.90M | 214.40M | -1.11B | -481.30M | Financing Cash Flow |
| -153.90M | -106.90M | -16.20M | -11.10M | 948.00M |
Fidelis Insurance Holdings Ltd. Technical Analysis
Negative
17.05
Price Trends
16.25
Positive
16.16
Positive
17.15
Negative
Market Momentum
0.27
Positive
45.27
Neutral
49.20
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 17.05 is above the 20-day moving average (MA) of 16.85, above the 50-day MA of 16.25, and below the 200-day MA of 17.15, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 49.20 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.04B | 8.43 | 20.50% | 0.43% | 13.29% | 17.14% | |
78 Outperform | $35.30B | 9.52 | 18.42% | ― | 25.29% | -23.19% | |
77 Outperform | $5.00B | 10.71 | 8.56% | ― | 10.70% | -39.16% | |
75 Outperform | $9.49B | 12.54 | 12.68% | 2.89% | 10.83% | 20.74% | |
65 Neutral | $1.79B | 17.57 | -0.42% | 2.35% | 23.28% | -103.35% | |
65 Neutral | $4.07B | 89.75 | 60.58% | ― | 21.60% | 90.80% | |
64 Neutral | $12.66B | 9.79 | 7.67% | 17015.07% | 12.23% | -6.06% |
* Financial Sector Average
Performance Comparison
FIHL
Fidelis Insurance Holdings Ltd.
16.43
0.50
3.14%
ACGL
Arch Capital Group
91.97
-4.95
-5.11%
ESGR
Enstar Group
334.50
31.27
10.31%
ORI
Old Republic International
37.26
8.59
29.96%
IGIC
International General Insurance Holdings
22.95
9.27
67.76%
GSHD
GooseHead Insurance
107.24
50.58
89.27%
Fidelis Insurance Holdings Ltd. Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -0.12%|
Next Earnings Date:Aug 26, 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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.