Core Viewpoint - Fidelis Insurance Holdings (FIHL) shows a significantly improving earnings outlook, making it a strong investment choice as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend of rising earnings estimate revisions reflects growing analyst optimism regarding the earnings prospects of Fidelis Insurance, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.85 per share, indicating a year-over-year decline of 7.6%. However, the Zacks Consensus Estimate has increased by 6.25% due to one upward revision [6]. - The full-year earnings estimate stands at $1.55 per share, representing a year-over-year increase of 31.4% [7]. - The current year's estimate revisions are also favorable, with one estimate moving higher and the consensus estimate increasing by 23.6% [8]. Zacks Rank and Performance - Fidelis Insurance currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts in raising earnings estimates, which is a positive signal for investors [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting a favorable investment environment for Fidelis Insurance [9]. Stock Performance - The stock has gained 7.7% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, making it a candidate for portfolio addition [10].

Group 1 - Fidelis Insurance Group held its Second Quarter 2025 Earnings Conference Call, featuring key executives including CEO Dan Burrows and CFO Allan Decleir [2][4] - The call was recorded for replay purposes and included a question-and-answer session following the formal remarks [2] - Miranda Hunter, Head of Investor Relations, welcomed participants and introduced the management team [3][4]

Financial Data and Key Metrics Changes - The company reported net income of $20 million or $0.18 per diluted common share, with operating net income of $14 million or $0.12 per diluted common share, resulting in an annualized operating return on average equity (ROAE) of 2.3% [20][21] - Gross written premiums increased by 9% year-to-date to $2.9 billion, with a quarterly growth of 2% to $1.2 billion [20][21] - The combined ratio for the quarter was 103.7%, impacted by the English High Court judgment related to Russia-Ukraine litigation [7][21] Business Line Data and Key Metrics Changes - In the Insurance segment, gross premiums written increased by 7% in the quarter, driven by asset-backed finance and portfolio credit, as well as political risk lines [21][10] - The Reinsurance segment saw gross premiums written of $317 million for the quarter, down from $346 million in the prior year [21] - The attritional loss ratio improved to 24.7% for the quarter, compared to 25.9% in 2024, indicating strong underlying portfolio performance [22] Market Data and Key Metrics Changes - The company maintained high retention levels, around 90% for the year, despite competitive pressures in certain markets [66] - The property market is experiencing significant pricing differentials compared to subscription market players, allowing the company to achieve favorable terms [11][10] - The aviation sector remains challenging, with the company not willing to write business that does not meet underwriting standards [12][104] Company Strategy and Development Direction - The company aims to balance profitable underwriting with capital returns to shareholders, having delivered a gross written premium growth of 54% since 2022 [5] - A focus on deploying capital to attractive risk-reward opportunities is emphasized, with ongoing expansion of strategic partnerships [6][38] - The company plans to continue share repurchases and has renewed its common share repurchase authorization to $200 million [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength and the ability to capitalize on profitable opportunities, particularly as the uncertainty from Russia-Ukraine litigation is resolved [38] - The company expects underwriting growth for the full year to be approximately 6% to 10%, with a strong pipeline in asset-backed finance and portfolio credit [34][35] - Management remains cautious about the aviation market but is hopeful for improvements in pricing [104] Other Important Information - The company announced an increase in its quarterly dividend to $0.15 per share, reflecting a dividend yield of 3.6% [29] - The effective tax rate for the first half of the year was 18.9%, expected to remain around 19% for the full year [27][28] Q&A Session Summary Question: Impact of wind season on property pricing - Management indicated that a significant capital event would be necessary to impact overall profit cap pricing, noting that recent losses have not affected the broader market [44][46] Question: Demand for political risk coverage - Management reported an uptick in deal activity in political risk, with new and repeat customers indicating a strong pipeline [48][50] Question: Explanation for discount valuation - Management acknowledged the stock is undervalued and emphasized strong performance excluding Russia-Ukraine impacts, indicating confidence in the portfolio's profitability [54][56] Question: Future expectations for return on equity - Management expressed confidence in achieving through-the-cycle targets, with a reasonable expectation of 15% return on equity in the current environment [59][60] Question: Pricing levels in property D and F - Management noted that while pricing is under pressure, they are maintaining high retention rates and are not willing to write inadequately priced business [66][68] Question: Reserve releases in property - Management indicated that positive prior year development is driven by actual claims experience, with consistent results expected in the reinsurance segment [80][82] Question: Tax rate guidance - Management clarified that the increase in the effective tax rate is due to the geographic distribution of income, with expectations for a similar rate in 2026 [110][112]

Financial Highlights - Total Assets reached $13 billion as of June 30, 2025[7, 20] - Shareholders' Equity stood at $2.3 billion as of June 30, 2025[7, 20] - Cash & Invested Assets amounted to $4.3 billion as of June 30, 2025[7, 35] - Gross Premiums Written (TTM ended June 30, 2025) were $4.6 billion[7, 11] Performance & Growth - Book Value Growth from 2022 to 2024 was 37%[7] - The average Combined Ratio from 2018 to 2024 was 87.7%[7] - Gross premiums written growth of $234 million, a 9% increase, from the first half of 2024[22] - Book value per diluted common share increased by 1.1% from $21.79 on December 31, 2024, to $22.04 on June 30, 2025[22] Segment Breakdown (TTM ended June 30, 2025) - Insurance segment accounted for $3.674 billion, representing 79% of Gross Premiums Written[10] - Reinsurance segment accounted for $964 million, representing 21% of Gross Premiums Written[12] Capital Management - The company returned $133 million of capital to common shareholders in the six months ended June 30, 2025, including $111 million in share repurchases and $22 million in dividends[22]

Group 1 - Fidelis Insurance Holdings Limited (FIHL) has been added to the Zacks Rank 5 (Strong Sell) List due to a 42.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Flowco Holdings Inc. (FLOC) is also on the Zacks Rank 5 (Strong Sell) List, with a 3.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - WhiteHorse Finance, Inc. (WHF) has been included in the Zacks Rank 5 (Strong Sell) List, experiencing a 4.1% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Core Insights - Fidelis Insurance Holdings (FIHL) reported revenue of $582.6 million for the quarter ended June 2025, reflecting a year-over-year increase of 6.5% [1] - The company's EPS was $0.12, a significant decrease from $0.54 in the same quarter last year [1] - Revenue fell short of the Zacks Consensus Estimate of $645.23 million, resulting in a surprise of -9.71% [1] - The EPS exceeded expectations with a surprise of +200%, as the consensus estimate was -$0.12 [1] Financial Metrics - The combined ratio for Fidelis Insurance was reported at 103.7%, better than the average estimate of 108.9% from two analysts [4] - The loss ratio stood at 55.1%, compared to the estimated 61.8% by two analysts [4] - Net premiums earned were $538 million, which is lower than the average estimate of $597.55 million but represents a year-over-year increase of 7.4% [4] - Net investment income was reported at $44.6 million, below the average estimate of $47.68 million, indicating a year-over-year decrease of 3% [4] Stock Performance - Shares of Fidelis Insurance have returned +7.9% over the past month, outperforming the Zacks S&P 500 composite's +3.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Fidelis Insurance Holdings reported quarterly earnings of $0.12 per share, surpassing the Zacks Consensus Estimate of a loss of $0.12 per share, but down from earnings of $0.54 per share a year ago [1][2] Earnings Performance - The earnings surprise for the quarter was +200.00%, with the company previously expected to post a loss of $0.43 per share but actually reporting a loss of $0.41, resulting in a surprise of +4.65% [2] - Over the last four quarters, Fidelis Insurance has exceeded consensus EPS estimates each time [2] Revenue Analysis - The company reported revenues of $582.6 million for the quarter ended June 2025, which was 9.71% below the Zacks Consensus Estimate and an increase from $547.1 million year-over-year [3] - Fidelis Insurance has not met consensus revenue estimates in the last four quarters [3] Stock Performance - Since the beginning of the year, Fidelis Insurance shares have declined by approximately 6.3%, contrasting with the S&P 500's gain of 9.6% [4] Future Outlook - The future performance of Fidelis Insurance stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - Current consensus EPS estimates for the upcoming quarter are $0.80 on revenues of $787.36 million, and for the current fiscal year, $1.25 on revenues of $2.87 billion [8] Industry Context - The Zacks Industry Rank indicates that the Insurance - Multi line sector is in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [9]

Core Viewpoint - Fidelis Insurance Holdings (FIHL) is expected to report a quarterly loss of -$0.12 per share, a decline of 122.2% year-over-year, while revenues are forecasted to increase by 17.9% to $645.23 million [1] Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 6.7% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts project 'Revenues- Net premiums earned' to reach $597.55 million, reflecting a 19.3% increase from the previous year [5] - The consensus for 'Revenues- Net investment income' is estimated at $47.68 million, indicating a 3.7% increase year-over-year [5] Key Metrics - The expected 'Combined Ratio' is 108.9%, significantly higher than the year-ago figure of 92.7% [5] - Analysts predict a 'Loss Ratio' of 61.8%, compared to 44.4% from the previous year [6] Market Performance - Shares of Fidelis Insurance have returned +3% over the past month, outperforming the Zacks S&P 500 composite's +1.9% change [6] - With a Zacks Rank 4 (Sell), FIHL is anticipated to underperform the overall market in the near future [6]

Core Insights - The company experienced a challenging quarter with a reported loss of $42.5 million, leading to a decline in stock price to approximately $16, which has not recovered since [1] - Despite the stock performance, the core business remains intact, indicating potential resilience and stability [1] - The shift in market attention presents an opportunity for the company to capitalize on, suggesting that investor sentiment may be changing [1]

Group 1 - Fidelis Insurance Holdings (NYSE: FIHL) has underperformed over the past year, losing approximately 2% while the insurance sector has seen strong performance [1] - The company's shares are currently valued low compared to its peers, indicating a potential investment opportunity [1] - The underperformance may be attributed to the company's specific challenges, despite the overall favorable conditions in the insurance industry [1]