Financial Data and Key Metrics Changes - Gross premiums written increased by 25% to $742 million for Q3 2024, with year-to-date growth of 23% and a full-year target of approximately 20% [4][8] - Operating net income for the quarter was $105 million, translating to $0.92 per diluted common share, with an annualized operating return on average equity (ROAE) of 16.4% [8] - Book value per diluted common share rose to $23.43, marking a 13% increase from year-end and an 8% increase from the previous quarter [8] Business Line Data and Key Metrics Changes - Specialty segment gross premiums written increased by 22% for the quarter, with a Renewal Pricing Index (RPI) of 114% [6] - Bespoke segment saw a 15% increase in gross premiums written, while reinsurance experienced a significant 52% growth [8] - The combined ratio for the quarter was 87.4%, with a year-to-date combined ratio of 88.6%, both within the target range of mid to high-80s [6][9] Market Data and Key Metrics Changes - The overall RPI for the quarter was 112%, reflecting a strong rating environment across the portfolio [5] - The reinsurance market maintained discipline around rates, with an RPI of 105% [6] Company Strategy and Development Direction - The company continues to focus on disciplined capital management and has returned $141 million to shareholders through dividends and share buybacks [7] - A new strategic partnership with Euclid Mortgage is expected to generate approximately $35 million in gross premiums written in 2025, enhancing portfolio diversification [15] - The company aims to leverage its leadership position in a verticalized market to seek new opportunities and maintain competitive advantages [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that significant year-on-year pricing adjustments have created one of the best sustained rating environments in years, although the pace of rate acceleration may moderate [13] - The company anticipates continued favorable market dynamics in reinsurance, particularly following recent weather catastrophes [14] - Management expressed confidence in maintaining strong performance and creating shareholder value moving forward [15] Other Important Information - The company executed a privately negotiated transaction to repurchase shares from Platinum Ivy, a subsidiary of ADIA, as part of its ongoing share buyback program [12] - The average rating of fixed income securities remains high at AA minus, with a book yield of 4.9% [11] Q&A Session Summary Question: Adverse development in aviation business - The adverse development in aviation was driven by increases related to Russia-Ukraine litigation, with a net adverse impact of $14 million [17][19] Question: Competitive landscape in the London market - Management emphasized their leadership position allows for preferential terms and conditions, enabling them to capitalize on opportunities while maintaining underwriting integrity [21][22] Question: Acquisition ratio and its outlook - The increase in acquisition costs was primarily driven by higher variable commissions in the specialty segment, with expectations for a more stable acquisition ratio moving forward [40][41] Question: Investment income trajectory - The company is focused on optimizing its investment portfolio, with a current average book yield of 4.9% and plans to maintain a high-quality investment book [46] Question: Share repurchase strategy - Management views share repurchases as an accretive opportunity, particularly given the current undervaluation of the stock [29][30]

Core Insights - Fidelis Insurance Holdings (FIHL) reported revenue of $686.6 million for Q3 2024, marking a year-over-year increase of 27.7% and an EPS of $0.92 compared to $0.77 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $691.89 million, resulting in a surprise of -0.76%, while the EPS exceeded expectations with a surprise of +26.03% against a consensus estimate of $0.73 [1] Financial Metrics - Combined Ratio stood at 87.4%, better than the average estimate of 90.7% from two analysts [3] - Loss Ratio was reported at 37.5%, significantly lower than the estimated 43.3% [3] - Net premiums earned were $634.50 million, slightly below the average estimate of $643.24 million [3] - Net investment income reached $52.10 million, surpassing the average estimate of $48.66 million [3] Stock Performance - Shares of Fidelis Insurance have returned +1.3% over the past month, underperforming the Zacks S&P 500 composite's +3.3% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Group 1 - Fidelis Insurance Holdings reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and up from $0.77 per share a year ago, representing an earnings surprise of 26.03% [1] - The company posted revenues of $686.6 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 0.76%, compared to year-ago revenues of $537.5 million [2] - Fidelis Insurance shares have increased approximately 47.1% since the beginning of the year, outperforming the S&P 500's gain of 25.8% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $686.61 million, and for the current fiscal year, it is $2.91 on revenues of $2.45 billion [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

FIDELIS INSURANCE HOLDINGS LIMITED Unaudited Consolidated Financial Statements For the Three and Nine Months Ended September 30, 2024 and 2023 1 FIDELIS INSURANCE HOLDINGS LIMITED TABLE OF CONTENTS | Page | | | --- | --- | | Financial Statements | | | Consolidated Balance Sheets at September 30, 2024 (Unaudited) and December 31, 2023 | 3 | | Consolidated Statements of Income and Comprehensive Income (Unaudited) for the three and nine months ended September | 4 | | 30, 2024 and 2023 | | | Consolidated Statem ...

Fidelis Insurance Holdings (FIHL) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be relea ...

Fidelis Insurance Holdings (FIHL) reported $547.1 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 20.7%. EPS of $0.54 for the same period compares to $0.77 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $582.19 million, representing a surprise of -6.03%. The company delivered an EPS surprise of -21.74%, with the consensus EPS estimate being $0.69. While investors closely watch year-over-year changes in headline numbers -- revenue an ...

Fidelis Insurance Holdings (FIHL) came out with quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -21.74%. A quarter ago, it was expected that this insurance and reinsurance company would post earnings of $0.75 per share when it actually produced earnings of $0.74, delivering a surprise of -1.33%. O ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Fidelis Insurance Holdings despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on August 14, 2024, with an estimated EPS of $0.69, reflecting a -10.4% change year-over-year, while revenues are projected to be $582.19 million, up 28.5% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 8.43% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, making it challenging to predict an earnings beat [10][11]. Historical Performance - In the last reported quarter, Fidelis Insurance was expected to post earnings of $0.75 per share but delivered $0.74, resulting in a -1.33% surprise. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Conclusion - Fidelis Insurance does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

On Monday, May 20, Fidelis announced it would offer 9 million shares to the public in a large block sale, good for about 7.7% of the company's total outstanding shares. Then, on Wednesday, the company announced a $16.00 per share sale price for the block, well below the $18.50 stock price to begin the week and below Fidelis' book value per share of $21.22 as of last quarter. Needless to say, the share sale at such a low valuation of just 75% of book value was probably disappointing to shareholders, or perha ...

Fidelis Insurance Holdings (FIHL) came out with quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.33%. A quarter ago, it was expected that this insurance and reinsurance company would post earnings of $0.74 per share when it actually produced earnings of $1.15, delivering a surprise of 55.41%.Over ...