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Fidelis Insurance Holdings Ltd. (FIHL)
NYSE:FIHL
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Fidelis Insurance Holdings Ltd.
(NYSE:FIHL)
Rating:66Neutral
Price Target:
$18.50
▲(5.05% Upside)
Positive Factors
Growth and Performance
Gross written premiums increased 22% in the quarter, beating projections with strong growth in both Reinsurance and Insurance.
Management and Strategy
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
Balance Sheet Structure
The uniqueness of Fidelis’ bifurcated balance sheet/MGU structure has caused investors to exercise caution.
Expense Ratio and Valuation
Higher expense ratio and novel capital structure of Fidelis are expected to take time for some investors to get comfortable valuing.
Reserve Additions and Impact
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%.
Fidelis Insurance Holdings Ltd. (FIHL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.89B
Dividend Yield2.27%
Average Volume (3M)636.24K
Price to Earnings (P/E)17.6
Beta (1Y)0.58
Revenue Growth20.42%
EPS Growth-110.82%
CountryUS
Employees98
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.12
Shares Outstanding109,117,910
10 Day Avg. Volume791,457
30 Day Avg. Volume636,240
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit1.28
Enterprise Value/Ebitda-175.63
Forecast
1Y Price Target
$20.17Price Target Upside14.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
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 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:Aug 13, 2025
(Q2-2025)
| % Change Since: 0.97%|
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements in gross written premium growth and capital management initiatives. However, challenges in the aviation sector and adverse developments in the insurance segment due to the Russia-Ukraine litigation have impacted the combined ratio negatively. Despite these issues, the company is optimistic about future growth opportunities.Q2-2025 Updates
Positive Updates
Gross Written Premium Growth
Fidelis Insurance Group reported a year-to-date growth of 9% in gross written premiums, reaching $2.9 billion. This growth was driven by high retention levels and new business opportunities across the portfolio.
Strong Capital Position
The company announced a meaningful expansion of its capital management initiatives, including a renewal of the common share repurchase authorization to $200 million and an increase in the quarterly dividend to $0.15.
Asset Backed Finance & Portfolio Credit Growth
This segment remained a core growth driver with a healthy pipeline of structured credit deals and revenue from third-party relationships.
Management of Russia-Ukraine Exposure
Fidelis reported that any remaining exposure to the Russia-Ukraine lesser policy litigation is insignificant, allowing the company to focus on future opportunities.
Negative Updates
Combined Ratio Impact
The combined ratio for the quarter was 103.7%, influenced by the English High Court judgment on the Aviation and Aerospace line of business related to Russia-Ukraine lesser policy litigation.
Challenges in Aviation Sector
The aviation sector was identified as the most challenged part of the portfolio, with pricing not adequately reflecting loss activity, leading to non-renewal of certain accounts.
Adverse Development in Insurance Segment
The Insurance segment experienced net adverse prior-year development of $113 million, primarily related to the Russia-Ukraine aviation litigation.
Company Guidance
During the Fidelis Insurance Group's Second Quarter 2025 Earnings Conference Call, the management team provided comprehensive guidance on various financial and operational metrics. The company reported a gross written premium growth of 9% year-to-date, amounting to $2.9 billion, and a quarterly net income of $20 million, which translates to $0.18 per diluted common share. The operating return on average equity (ROAE) was 2.3%, mirroring the company's strategic expansion and favorable market conditions. The combined ratio was reported at 103.7%, reflecting the impact of the English High Court judgment on the Aviation and Aerospace line related to Russia-Ukraine litigation. Excluding this impact, the company surpassed its through-the-cycle targets, achieving a combined ratio in the mid-70s. The Insurance segment realized a 7% premium growth in the quarter, while the Reinsurance segment's premiums remained stable compared to the prior year. Furthermore, Fidelis highlighted a strong capital position, with a debt to total capital ratio of 26.6%, and announced a renewal of its share repurchase authorization to $200 million alongside a dividend increase to $0.15 per share. The management underscored disciplined underwriting and capital management as key drivers for maintaining robust shareholder returns amidst a dynamic market landscape.Fidelis Insurance Holdings Ltd. Financial Statement Overview
Summary
Fidelis Insurance Holdings Ltd. shows a robust financial foundation with strong cash flow management and low financial leverage. Despite revenue fluctuations and operational challenges, the company's balance sheet remains solid, and cash flow metrics are particularly strong, providing ample liquidity.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.60B | 2.42B | 3.59B | 1.52B | 1.19B | 782.60M |
| Gross Profit | 2.08B | 266.10M | 3.60B | 1.52B | 1.19B | 782.60M |
| EBITDA | -15.10M | 156.20M | 2.08B | 119.50M | 118.60M | 154.00M |
| Net Income | -44.40M | 113.30M | 2.13B | 52.60M | 68.30M | 126.50M |
Balance Sheet | ||||||
| Total Assets | 12.99B | 11.77B | 7.68B | 8.31B | 7.05B | 5.32B |
| Cash, Cash Equivalents and Short-Term Investments | 3.81B | 1.11B | 1.32B | 3.30B | 2.83B | 2.52B |
| Total Debt | 842.60M | 448.90M | 514.60M | 476.00M | 478.30M | 456.50M |
| Total Liabilities | 10.67B | 9.32B | 5.23B | 6.33B | 5.03B | 3.34B |
| Stockholders Equity | 2.32B | 2.45B | 2.45B | 1.98B | 2.01B | 1.98B |
Cash Flow | ||||||
| Free Cash Flow | -350.10M | 613.60M | 488.80M | 722.60M | 338.70M | 314.10M |
| Operating Cash Flow | -347.30M | 618.20M | 495.20M | 741.40M | 345.80M | 316.10M |
| Investing Cash Flow | 474.00M | -475.80M | -834.90M | 215.90M | -1.09B | -481.30M |
| Financing Cash Flow | 110.10M | -153.90M | -106.90M | -16.20M | -18.20M | 948.00M |
Fidelis Insurance Holdings Ltd. Technical Analysis
Positive
17.61
Price Trends
16.14
Positive
16.33
Positive
16.67
Positive
Market Momentum
0.37
Negative
64.40
Neutral
79.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIHL, the sentiment is Positive. The current price of 17.61 is above the 20-day moving average (MA) of 16.16, above the 50-day MA of 16.14, and above the 200-day MA of 16.67, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 79.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $34.28B | 9.59 | 17.09% | ― | 23.79% | -32.09% | |
79 Outperform | $1.08B | 8.71 | 20.11% | 3.95% | 9.51% | ― | |
77 Outperform | ― | ― | 10.70% | -39.16% | |||
75 Outperform | $9.45B | 10.77 | 14.63% | 7.91% | 14.20% | 50.32% | |
66 Neutral | $1.89B | 17.57 | -1.83% | 2.27% | 20.42% | -110.82% | |
65 Neutral | £5.46B | 9.22 | 9.66% | 4.98% | 9.83% | -15.31% | |
63 Neutral | $3.24B | 77.42 | 60.58% | ― | 23.49% | 60.38% |
* Financial Sector Average
Performance Comparison
FIHL
Fidelis Insurance Holdings Ltd.
17.61
-0.03
-0.17%
ACGL
Arch Capital Group
92.84
-8.44
-8.33%
ESGR
Enstar Group
337.91
14.82
4.59%
ORI
Old Republic International
39.30
7.40
23.20%
IGIC
International General Insurance Holdings
24.66
8.32
50.92%
GSHD
GooseHead Insurance
88.51
12.31
16.15%
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.