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Fidelis Insurance Holdings Ltd. (FIHL)
:FIHL
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Fidelis Insurance Holdings Ltd.
(NYSE:FIHL)
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Select Model
Rating:66Neutral
Price Target:
$18.50
▲(4.05% Upside)
Fidelis Insurance Holdings Ltd. demonstrates strong financial health with robust cash flow and a solid balance sheet, which are the most significant factors in its score. Technical analysis shows moderate bullish momentum, but valuation concerns due to a negative P/E ratio weigh on the score. The earnings call provided a mixed outlook, with growth in premiums but challenges in certain segments.
Positive Factors
Cash Flow Management
Strong cash flow management indicates effective capital allocation and liquidity, enabling the company to invest in growth opportunities and weather economic fluctuations.
Premium Growth
Consistent premium growth reflects effective market penetration and customer retention, supporting long-term revenue expansion and competitive positioning.
Capital Management
Strategic capital management initiatives enhance shareholder value and demonstrate confidence in the company's financial stability and future prospects.
Negative Factors
Combined Ratio Challenges
A high combined ratio indicates underwriting losses, which can strain profitability and necessitate strategic adjustments to improve operational efficiency.
Aviation Sector Challenges
Challenges in the aviation sector may lead to revenue volatility and necessitate strategic shifts to mitigate risks and align pricing with loss experience.
Adverse Development in Insurance Segment
Adverse developments can impact financial performance and require adjustments in risk management practices to prevent future liabilities.
Fidelis Insurance Holdings Ltd. (FIHL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.86B
Dividend Yield2.48%
Average Volume (3M)530.23K
Price to Earnings (P/E)17.6
Beta (1Y)0.59
Revenue Growth20.42%
EPS Growth-110.82%
CountryUS
Employees98
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.12
Shares Outstanding104,861,824
10 Day Avg. Volume509,628
30 Day Avg. Volume530,230
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 Cap1.42
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit1.28
Enterprise Value/Ebitda-175.63
Forecast
1Y Price Target
$20.07Price Target Upside12.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
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: |
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
17.78
Price Trends
16.79
Positive
16.60
Positive
16.31
Positive
Market Momentum
0.24
Negative
57.52
Neutral
68.86
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 17.78 is above the 20-day moving average (MA) of 17.43, above the 50-day MA of 16.79, and above the 200-day MA of 16.31, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.04B | 8.40 | ― | 4.24% | 9.52% | ― | |
78 Outperform | $33.71B | 9.33 | 16.21% | ― | 23.79% | -32.09% | |
76 Outperform | $10.63B | 12.03 | 14.44% | 7.33% | 14.20% | 50.32% | |
66 Neutral | $1.86B | 17.57 | -1.83% | 2.48% | 20.42% | -110.82% | |
63 Neutral | $2.68B | 62.35 | -38.05% | ― | 23.49% | 60.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FIHL
Fidelis Insurance Holdings Ltd.
17.78
0.27
1.54%
AIG
American International Group
79.64
8.73
12.31%
ACGL
Arch Capital Group
90.31
-17.85
-16.50%
ORI
Old Republic International
42.77
10.38
32.05%
IGIC
International General Insurance Holdings
23.61
5.66
31.53%
GSHD
GooseHead Insurance
71.29
-13.33
-15.75%
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.