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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:
$17.50
▲(8.09%Upside)
Positive Factors
Financial Performance
Gross written premiums increased 22% in the quarter, beating the +11% projection, with strong growth in both Reinsurance and Insurance.
Market Conditions
Fidelis is well-positioned to benefit from prevailing hard market conditions in specialty insurance and reinsurance lines.
Negative Factors
Earnings 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%.
Risk Management
The uniqueness of Fidelis’ bifurcated balance sheet/MGU structure has caused investors to exercise caution.
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)
Market Cap
$1.77B
Dividend Yield2.47%
Average Volume (3M)767.48K
Price to Earnings (P/E)17.6
Beta (1Y)0.51
Revenue Growth23.28%
EPS Growth-103.35%
CountryUS
Employees98
SectorFinancial
Sector Strength82
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)-0.41
Shares Outstanding109,117,910
10 Day Avg. Volume761,484
30 Day Avg. Volume767,475
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.59
Price to Sales (P/S)0.00
P/FCF Ratio2.96
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit0.52
Enterprise Value/Ebitda1.03
Forecast
1Y Price Target
$18.93Price Target Upside16.92% Upside
Rating ConsensusHold
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:May 14, 2025
(Q1-2025)
| % Change Since: -4.54%|
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.Fidelis Insurance Holdings Ltd. Financial Statement Overview
Summary
Fidelis Insurance Holdings Ltd. shows a strong cash flow and a solid balance sheet with low leverage. However, revenue fluctuations and challenges in profitability due to operational issues slightly temper the overall financial performance.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 | 1.52B | 1.19B | 782.60M |
| Gross Profit | 2.42B | 3.60B | 1.52B | 1.19B | 782.60M |
| EBITDA | 156.20M | 2.08B | 119.50M | 118.60M | 154.00M |
| Net Income | 113.30M | 2.13B | 52.60M | 68.30M | 126.50M |
Balance Sheet | |||||
| Total Assets | 11.77B | 7.68B | 8.31B | 7.05B | 5.32B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.32B | 3.30B | 2.83B | 2.52B |
| Total Debt | 448.90M | 514.60M | 476.00M | 478.30M | 456.50M |
| Total Liabilities | 9.32B | 5.23B | 6.33B | 5.03B | 3.34B |
| Stockholders Equity | 2.45B | 2.45B | 1.98B | 2.01B | 1.98B |
Cash Flow | |||||
| Free Cash Flow | 613.60M | 488.80M | 722.60M | 338.70M | 314.10M |
| Operating Cash Flow | 618.20M | 495.20M | 741.40M | 345.80M | 316.10M |
| Investing Cash Flow | -475.80M | -834.90M | 215.90M | -1.09B | -481.30M |
| Financing Cash Flow | -153.90M | -106.90M | -16.20M | -18.20M | 948.00M |
Fidelis Insurance Holdings Ltd. Technical Analysis
Negative
16.19
Price Trends
16.67
Negative
16.08
Positive
16.92
Negative
Market Momentum
-0.13
Negative
45.76
Neutral
59.90
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 16.19 is below the 20-day moving average (MA) of 16.45, below the 50-day MA of 16.67, and below the 200-day MA of 16.92, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.08B | 8.80 | 20.50% | 7.62% | 13.29% | 17.14% | |
77 Outperform | $5.04B | 10.80 | 8.56% | ― | 10.70% | -39.16% | |
75 Outperform | $9.38B | 12.40 | 12.68% | 2.92% | 10.83% | 20.74% | |
73 Outperform | $33.42B | 9.15 | 18.42% | ― | 25.29% | -23.19% | |
67 Neutral | $17.01B | 11.90 | 9.70% | 3.76% | 11.63% | -9.47% | |
66 Neutral | $1.77B | 17.57 | -0.42% | 2.47% | 23.28% | -103.35% | |
63 Neutral | $3.92B | 87.12 | 60.58% | ― | 21.60% | 90.80% |
* Financial Sector Average
Performance Comparison
FIHL
Fidelis Insurance Holdings Ltd.
16.19
0.18
1.12%
ACGL
Arch Capital Group
89.19
-4.25
-4.55%
ESGR
Enstar Group
337.91
8.02
2.43%
ORI
Old Republic International
37.97
10.38
37.62%
IGIC
International General Insurance Holdings
23.96
10.00
71.63%
GSHD
GooseHead Insurance
104.50
51.22
96.13%
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.