• Gross Premiums Written: Increased by 25% to $742 million for the quarter.

• Year-to-Date Gross Premiums Written Growth: Increased by 23%.

• Combined Ratio: 87.4% for the quarter; year-to-date combined ratio is 88.6%.

• Annualized Operating ROAE: 16.4% for the quarter; year-to-date annualized operating ROAE is 13.3%.

• Operating Net Income: $105 million or $0.92 per diluted common share.

• Book Value Per Diluted Common Share: $23.43, an increase of 13% from year-end.

• Net Premiums Earned: Increased by 24% to $635 million compared to the third quarter of 2023.

• Loss Ratio: 37.5% for the third quarter.

• Attritional Loss Ratio: Improved to 24.7% from 30.4% in the prior year period.

• Catastrophe and Large Loss Ratio: 14.4% or $92 million of losses in the quarter.

• Net Investment Income: Increased to $52 million for the third quarter of 2024.

• Share Repurchase Program: Year-to-date repurchase of 6.6 million common shares at an average price of $16.06.

• Warning! GuruFocus has detected 7 Warning Signs with MIAPF.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fidelis Insurance Holdings Ltd (NYSE:FIHL) reported a 25% increase in gross premiums written for the third quarter, demonstrating strong top-line growth.

• The company achieved a combined ratio of 87.4% for the quarter, indicating strong underwriting profitability.

• Fidelis Insurance Holdings Ltd (NYSE:FIHL) maintained a robust capital management strategy, returning $141 million to shareholders through dividends and share buybacks.

• The company reported an annualized operating return on average equity (ROAE) of 16.4% for the quarter, showcasing strong financial performance.

• The launch of Lloyd's Syndicate 3123 created new business opportunities, contributing to growth across all segments, particularly in bespoke.

Negative Points

• The specialty segment experienced adverse prior year development of $14 million, driven by increased estimates in the aviation and aerospace lines due to ongoing Russia-Ukraine litigation.

• Policy acquisition expenses increased to 31 points of the combined ratio, up from 29.6 points in the prior year, primarily due to higher variable commissions in the specialty segment.

• The company faced a catastrophe and large loss ratio of 14.4% in the quarter, with notable events including Hurricane Helene and European Storm Boris.

• Despite strong growth, the aviation market remains competitive, and some expected rate increases did not materialize, impacting new business opportunities.

• The company did not disclose the exact amount of excess capital, which may leave investors uncertain about future capital management strategies.