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].

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]