Fidelis Insurance Holdings reported a net loss of US$42.5 million for the first quarter ending March 31, 2025.
The operating net loss for the quarter stood at US$45.3 million, which includes US$166.8 million in losses related to the California wildfires, net of expected recoveries, reinstatement premiums, and taxes.
The group posted an underwriting loss of US$94.5 million, with a combined ratio of 115.6%. This contrasts with Q1 2024, when Fidelis recorded underwriting income of US$69.2 million and a combined ratio of 85.8%.
Favorable prior-year reserve development contributed US$40.8 million in the first quarter, down from US$67 million in the same period last year. Total catastrophe and large losses amounted to US$333.3 million, compared to US$103 million in the prior year period.
The increase was mainly attributed to the California wildfires, which Fidelis said were the largest first-quarter catastrophe event for the company in over a decade.
The re/insurance group ended 2024 on a high note, with The Fidelis Partnership reporting US$4.6 billion in GWP for the year, reflecting a 29% year-over-year increase. Its newly launched Syndicate 3123, which began underwriting during the year, added approximately US$200 million in its first six months of operation.
Net investment income for Q1 2025 rose to US$49.5 million from US$41.0 million in Q1 2024. During the quarter, the company purchased US$368.8 million of fixed income securities with an average yield of 5.0%, and sold US$642 million of fixed maturity securities at an average yield of 4.4%.
The annualized operating return on average equity (ROAE) for the quarter was (7.6)%, compared to 14.0% in the first quarter of 2024. Book value per diluted common share as of March 31, 2025, was US$21.54, down from US$21.79 at the end of 2024. Dilutive shares outstanding at quarter-end totaled 662,463.
Group CEO Dan Burrows (pictured above) said that the combined ratio and ROAE were affected by the scale of catastrophe losses, noting that the California wildfires are currently tracking at the lower end of expected loss estimates.
“We believe our performance demonstrates the quality of our underlying portfolio and the importance of active exposure management, including the strategic use of outwards reinsurance,” he said.
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Fidelis Insurance Holdings reported a net loss of US$42.5 million for the first quarter ending March 31, 2025.
The operating net loss for the quarter stood at US$45.3 million, which includes US$166.8 million in losses related to the California wildfires, net of expected recoveries, reinstatement premiums, and taxes.
The group posted an underwriting loss of US$94.5 million, with a combined ratio of 115.6%. This contrasts with Q1 2024, when Fidelis recorded underwriting income of US$69.2 million and a combined ratio of 85.8%.
Favorable prior-year reserve development contributed US$40.8 million in the first quarter, down from US$67 million in the same period last year. Total catastrophe and large losses amounted to US$333.3 million, compared to US$103 million in the prior year period.
The increase was mainly attributed to the California wildfires, which Fidelis said were the largest first-quarter catastrophe event for the company in over a decade.
The re/insurance group ended 2024 on a high note, with The Fidelis Partnership reporting US$4.6 billion in GWP for the year, reflecting a 29% year-over-year increase. Its newly launched Syndicate 3123, which began underwriting during the year, added approximately US$200 million in its first six months of operation.
Net investment income for Q1 2025 rose to US$49.5 million from US$41.0 million in Q1 2024. During the quarter, the company purchased US$368.8 million of fixed income securities with an average yield of 5.0%, and sold US$642 million of fixed maturity securities at an average yield of 4.4%.
The annualized operating return on average equity (ROAE) for the quarter was (7.6)%, compared to 14.0% in the first quarter of 2024. Book value per diluted common share as of March 31, 2025, was US$21.54, down from US$21.79 at the end of 2024. Dilutive shares outstanding at quarter-end totaled 662,463.
Group CEO Dan Burrows (pictured above) said that the combined ratio and ROAE were affected by the scale of catastrophe losses, noting that the California wildfires are currently tracking at the lower end of expected loss estimates.
“We believe our performance demonstrates the quality of our underlying portfolio and the importance of active exposure management, including the strategic use of outwards reinsurance,” he said.
What are your thoughts on this story? Please feel free to share your comments below.
