Fidelis Insurance Holdings (NYSE:FIHL) Q3 2025 Earnings Call November 13, 2025 09:00 AM ET Company ParticipantsBrian Meredith - Managing DirectorMiranda Hunter - Head of Investor RelationsAllan Decleir - CFODan Burrows - CEOPablo Singzon - Executive DirectorLeon Cooperman - Chairman and CEOMeyer Shields - Managing DirectorAndrew Andersen - Equity Research Vice PresidentJonny Strickle - Group Managing DirectorConference Call ParticipantsAlex Scott - Insurance Research AnalystDavid Motemaden - Senior Equity R ...

Financial Data and Key Metrics Changes - The company reported a combined ratio of 79%, marking an improvement of over eight points year-over-year, which is the best performance since going public [5][16] - Annualized operating return on average equity (ROAE) increased to 21.4%, up five points from the previous year [5][14] - Diluted book value per share grew by $1.25 during the quarter, reaching $23.29, an increase of 8.3% since year-end [14][19] Business Line Data and Key Metrics Changes - Gross premiums written increased by 8% to $798 million for the quarter, with year-to-date gross premiums also up 8% to $3.7 billion [14] - In the insurance segment, gross premiums written rose by 4% to $606 million, driven by new business and asset-backed finance [14][15] - The reinsurance segment saw gross premiums written grow to $192 million, a 20% increase year-over-year, attributed to new business opportunities and enhanced pricing [11][15] Market Data and Key Metrics Changes - The company experienced strong performance in property and asset-backed finance, with the direct property book growing by 9.5% year-over-year [8][14] - The reinsurance segment's RPI was positive, supported by double-digit increases in the U.S. book, driven by post-loss pricing [11][12] - The overall RPI remained broadly flat, reflecting the company's differentiated position and ability to navigate market conditions [8][9] Company Strategy and Development Direction - The company is focused on strategic capital allocation and expert risk selection, balancing profitable growth with returning capital to shareholders [6][20] - There is an ongoing emphasis on expanding underwriting partnerships, with the total number of partners growing to the mid-single digits [23][24] - The company aims to maintain a disciplined approach to underwriting, even as competition increases in certain lines [25][27] Management's Comments on Operating Environment and Future Outlook - Management remains bullish about the market, indicating that the current hard market conditions present opportunities for growth [33] - The company is confident in its ability to deliver compelling underwriting margins across segments, despite potential pricing pressures [27][29] - Management highlighted the importance of maintaining underwriting discipline and leveraging strong relationships with brokers and clients [39][81] Other Important Information - The company repurchased 1.8 million common shares for $32 million at an average price of $17.40 per share during the quarter [21] - The effective tax rate for the first nine months of the year was 18.8%, reflecting a greater proportion of income generated in higher tax jurisdictions [19] Q&A Session Summary Question: Thoughts on reinsurance growth and expectations for 2026 - Management expressed confidence in the prevailing hard market and the potential for continued growth through partnerships and a strong pipeline of opportunities [33][34] Question: Stability of RPIs and competitive pressures - Management acknowledged pressure in certain lines, particularly in property, but emphasized strong retention rates and margins [37][38] Question: Direct property book growth and potential tailwinds - Management noted that new homeowners business contributed to growth and highlighted opportunities in data center construction [40][41] Question: Verticalization and market dynamics - Management clarified that verticalization is present in both hard and soft markets, allowing the company to set terms and conditions effectively [45][46] Question: Exposure to Caribbean hurricane losses - Management indicated some exposure but expected any net losses to fall within expected limits [59] Question: Partnerships and capabilities for data center construction - Management discussed the importance of having a meaningful line size and leveraging partnerships to negotiate favorable terms [60][62] Question: Update on aviation and marine lines - Management noted improvements in aviation pricing but maintained caution due to competition, while expressing comfort with marine opportunities [76][81]

Fidelis Insurance Holdings (NYSE:FIHL) Q3 2025 Earnings Call November 13, 2025 09:00 AM ET Speaker5Good morning, ladies and gentlemen, and welcome to the Fidelis Insurance Group's third quarter 2025 earning conference call. As a reminder, this call is being recorded for replay purposes. Following the conclusion of formal remarks, the management team will host a question-and-answer session, and instructions will be given at that time. With that, I will now turn the call over to Miranda Hunter, Head of Invest ...

Financial Performance - The company's Q3 2025 combined ratio was 790%, the best as a publicly traded company to date[14] - The annualized Operating ROAE was 214% for Q3 2025[14, 15] - Book value per diluted common share grew to $2329[14, 19] - Gross premiums written for the trailing twelve months ended September 30, 2025 were $47 billion[7, 8] Growth and Premiums - Gross premiums written grew by 8% in Q3 2025 compared to Q3 2024, reaching $798 million[15, 18] - Year-to-date gross premiums written increased by 8% or $290 million, totaling $3739 million[19, 20] - Insurance gross premiums written increased by 6% year-to-date, reaching $2775 million[23, 25] - Reinsurance gross premiums written increased by 16% year-to-date[27, 30] Capital Management - The company returned $180 million of capital to common shareholders in the nine months ended September 30, 2025, including $143 million in share repurchases and $37 million in dividends[20] - The company has $1531 million remaining for share repurchase authorization[37] Investment Portfolio - Net investment income for Q3 2025 was $46 million, bringing the year-to-date total to $140 million[15, 36]

Fidelis Insurance Holdings (FIHL) came out with quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.6 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -24.38%. A quarter ago, it was expected that this insurance and reinsurance company would post a loss of $0.12 per share when it actually produced earnings of $0.12, delivering a surprise of +200%.Over th ...

Core Viewpoint - Fidelis Insurance Holdings (FIHL) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended September 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $1.60 per share, reflecting a year-over-year increase of +73.9%, with revenues projected at $758.54 million, up 10.5% from the previous year [3]. - The stock may experience upward movement if these key figures exceed expectations, while a miss could lead to a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 8.37% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Fidelis Insurance aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a positive ESP being a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9][10]. - Fidelis Insurance currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, Fidelis Insurance was expected to post a loss of $0.12 per share but instead delivered earnings of $0.12, resulting in a surprise of +200.00% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Conclusion - While the potential for an earnings beat exists, other factors may influence stock movement, and the company does not currently appear to be a compelling earnings-beat candidate [15][17].

Core Viewpoint - Fidelis Insurance Group has declared a quarterly dividend of $0.15 per common share, payable on December 23, 2025, to shareholders of record on December 10, 2025 [1]. Company Overview - Fidelis Insurance Group is a global specialty insurer that leverages strategic partnerships to provide innovative and tailored insurance solutions [2]. - The company maintains a highly diversified portfolio, allowing it to capitalize on opportunities in evolving (re)insurance markets and to produce superior underwriting returns [2]. Financial Strength Ratings - Fidelis Insurance Group has received strong financial strength ratings: A from AM Best, A- from S&P, and A3 from Moody's [3]. Capital Management Initiatives - The company has expanded its capital management initiatives, renewing its common share repurchase authorization to $200 million and increasing the quarterly dividend to $0.15 per common share [8].

Group 1 - Fidelis Insurance Holdings Limited (NYSE:FIHL) is considered one of the most undervalued small-cap stocks currently available for investment [1] - Barclays raised the price target for Fidelis Insurance Holdings Limited to $19 from $17 while maintaining an Equal Weight rating [1] - Keefe Bruyette increased the price target for Fidelis Insurance Holdings Limited to $24 from $22, keeping an Outperform rating [2] - Evercore ISI also updated its price target for Fidelis Insurance Holdings Limited to $19 from $18 while maintaining an In Line rating [3] Group 2 - Fidelis Insurance Holdings Limited operates as a global specialty insurer, focusing on tailored and innovative insurance solutions through strategic partnerships [4] - The company's operations are divided into two main segments: Insurance and Reinsurance [4]

Core Viewpoint - Shares of Fidelis Holdings (NYSE: FIHL) have shown mixed performance over the past year, remaining essentially flat due to claims related to its exposure in Russia's aircraft sector. However, these challenges are now considered behind the company, indicating a potential for recovery and growth [1]. Company Performance - The insurer has faced losses attributed to its Russia aircraft exposure, but these issues are now resolved, suggesting a more stable outlook moving forward [1]. Investment Perspective - The analysis reflects a contrarian investment approach, focusing on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1].

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].