With the recent LA wildfires that occurred in January of 2025, property & casualty insurers have been on a roll over the last couple of weeks. One of the companies that was hit heavily was Mercury GeneralAt Henriot Capital, we live by the principle that simplicity and common sense drive success. I’m passionate about building a hedge fund with a clear purpose, disciplined focus, and consistent alpha. Our approach is fully quant-driven—our model gives us the tickers, and we act on its recommendations without ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commissi ...

Basis of Presentation December 31, 2024 Investor Presentation Cautionary Note Regarding Forward-Looking Statements This presentation, the related press release, posts on our website and LinkedIn and the related discussion and analysis relating to our financial results for the three and twelve months ended December 31, 2024 contain, and our officers and representatives may from time to time make (including on our related earnings conference call), "forward-looking statements" which include all statements tha ...

Financial Data and Key Metrics Changes - The company reported an operating net income of $137 million for 2024, with a combined ratio of 99.7% [10][26] - The diluted book value per share increased by 5.3% to $21.79 from the end of 2023 [27] - Net investment income rose by 59% to $191 million compared to 2023, driven by an increase in investable assets and higher yields [17][40] Business Line Data and Key Metrics Changes - Gross premiums written increased by 23% to $4.4 billion, with direct property gross premiums growing by 30% [14][15] - The insurance segment saw a 19% increase in gross premiums written in Q4, while the reinsurance segment grew to $32 million despite being seasonally low [28][29] - The combined ratio for Q4 was reported at 128%, with net adverse prior year development of $270 million primarily in the aviation and aerospace line [31][32] Market Data and Key Metrics Changes - The company experienced significant catastrophe losses due to California wildfires, estimating losses between $160 million to $190 million net of recoveries [20][21] - The overall market conditions remain favorable, with an RPI of 111% for the full year and 106% for Q4 [14][118] Company Strategy and Development Direction - The company is focused on maintaining underwriting discipline and capital management while pursuing strategic growth opportunities [8][48] - A new partnership with UK Mortgage is expected to generate approximately $35 million in gross premiums written in 2025 [55] - The company aims for a mid- to high-80s combined ratio and a target operating return on average equity of 13% to 15% through the cycle [59] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating evolving market conditions and highlighted the potential for improved pricing following recent catastrophic events [48][128] - The company anticipates a 10% growth in gross premiums written across its portfolio in 2025, supported by strong relationships and new distribution channels [58][59] Other Important Information - The company returned $152 million of excess capital to shareholders through dividends and share buybacks [18][27] - A new 15% corporate income tax in Bermuda is expected to impact future financials starting in 2025 [42] Q&A Session Summary Question: Lessons learned from recent wildfires - Management noted that the recent wildfires were significant but within their overall capital budget and expectations for such events [65][66] Question: Impact of performance fees and carryforward mechanisms - Management confirmed that there is no deficit to carry forward into future years due to a combined ratio of 99.7% for 2024 [72] Question: Anticipation of subrogation recoveries from wildfires - Management indicated it is too early to provide details on potential subrogation recoveries [77] Question: Net investment income fluctuations - Management explained that net investment income was consistent with Q3, and the flat investable assets in Q4 contributed to the results [79] Question: Competitive environment and pricing dynamics - Management highlighted that the market is benefiting from better rates and terms, with an optimistic outlook for growth in direct property and reinsurance segments [118][123] Question: Aviation and aerospace reserves and litigation outcomes - Management discussed the ongoing litigation and the measures taken to de-risk exposure, emphasizing the strength of the balance sheet [100][101]

Core Insights - Fidelis Insurance Holdings (FIHL) reported revenue of $685.9 million for Q4 2024, a year-over-year increase of 23.9% [1] - The company's EPS for the same period was -$1.05, compared to $1.15 a year ago [1] - Revenue fell short of the Zacks Consensus Estimate of $694.51 million, resulting in a surprise of -1.24% [1] - The EPS surprise was +2.78%, with the consensus estimate being -$1.08 [1] Financial Metrics - The combined ratio was reported at 128%, significantly higher than the estimated 109% [4] - The loss ratio stood at 80.9%, compared to the estimated 63.7% [4] - Net premiums earned were $634.50 million, slightly below the average estimate of $639.50 million, but represented a year-over-year increase of 25% [4] - Net investment income was reported at $51.40 million, lower than the average estimate of $55.01 million, with a year-over-year change of +32.8% [4] Stock Performance - Shares of Fidelis Insurance have returned -13.7% over the past month, while the Zacks S&P 500 composite changed by -1.8% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Fidelis Insurance Holdings reported a quarterly loss of $1.05 per share, slightly better than the Zacks Consensus Estimate of a loss of $1.08, but down from earnings of $1.15 per share a year ago, indicating a challenging financial performance [1][2] Financial Performance - The company posted revenues of $685.9 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.24%, and showing an increase from $553.7 million year-over-year [2] - Over the last four quarters, Fidelis Insurance has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates during the same period [2] Stock Performance - Shares of Fidelis Insurance have declined approximately 20% since the beginning of the year, contrasting with a 1.7% gain in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $691.9 million, and for the current fiscal year, it is $3.24 on revenues of $2.99 billion [7] Industry Outlook - The Zacks Industry Rank for Insurance - Multi line is currently in the bottom 43% of over 250 Zacks industries, suggesting that the industry is underperforming compared to the top half [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Fidelis Insurance's stock performance [5][6]

Core Insights - Fidelis Insurance (NYSE: FIHL) is an emerging insurer focusing on tailored insurance and reinsurance solutions, showcasing impressive growth and profitability despite being a small-cap company [1] - The company has reported strong underwriting results and is continuing to expand across various business segments [1] Company Overview - Fidelis Insurance specializes in providing customized insurance and reinsurance solutions [1] - The company has demonstrated significant growth and profitability in its operations [1] Financial Performance - The company has reported strong underwriting results, indicating effective risk management and operational efficiency [1] - Continued expansion in various business areas suggests a positive outlook for future growth [1]

Core Insights - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenges of defining momentum in stocks [2] Company Overview: Fidelis Insurance Holdings (FIHL) - FIHL currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [4] Performance Metrics - Over the past week, FIHL shares increased by 5.82%, significantly outperforming the Zacks Insurance - Multi line industry, which rose by 0.44% [7] - In a longer timeframe, FIHL's monthly price change is 16.85%, compared to the industry's 0.72% [7] - Over the last quarter, FIHL shares rose by 11.7%, and over the past year, they increased by 67.18%, while the S&P 500 only moved 6.16% and 32.62%, respectively [8] Trading Volume - The average 20-day trading volume for FIHL is 447,908 shares, which serves as a bullish indicator when combined with rising stock prices [9] Earnings Outlook - In the past two months, two earnings estimates for FIHL have been revised upwards, increasing the consensus estimate from $2.94 to $3.15 [11] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [11] Conclusion - Given the strong performance metrics and positive earnings outlook, FIHL is positioned as a promising investment opportunity with a Momentum Score of A [12]

Core Viewpoint - Fidelis Insurance Holdings Limited (FIHL) is highlighted as a strong investment opportunity with a Zacks Rank 1 and a significant increase in earnings estimates [1] Summary by Category Company Overview - Fidelis Insurance Holdings Limited is an insurance holding company with a current year earnings estimate that has increased by 7.1% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 6.25, which is significantly lower than the S&P's P/E of 23.86 [1] Investment Characteristics - The company possesses a Value Score of A, indicating strong value characteristics for investors [1]

Core Viewpoint - Fidelis Insurance Holdings (FIHL) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimates - Analysts are optimistic about the earnings prospects of Fidelis Insurance, leading to higher estimates that are expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is $0.96 per share, reflecting a decrease of 16.52% compared to the previous year [4]. - For the full year, the expected earnings are $3.15 per share, which is a decline of 9.74% from the prior year, but recent revisions show a positive trend with an 8.26% increase in consensus estimates [5]. Zacks Rank - Fidelis Insurance has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on earnings estimate revisions [6]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3]. Stock Performance - The stock has increased by 10.8% over the past four weeks due to favorable estimate revisions, suggesting further upside potential [7].