Insights
Fidelis Insurance Group 3Q24 trading statement
Posted 13/11/2024 – Insights
Fidelis Insurance Group has released its results for 3Q24 ending 30th September 2024.
Main highlights
- Gross Premiums Written (GWP) increased by 23.4% to $3,449m (Q3 2023: $2,795m)
- Combined ratio increase to 88.6% (Q3 2023: 82.4%)
- Catastrophe and large losses were $376m (Q3 2023: $187m)
- Operating Return On Equity 10.4% (Q3 2023: 14.7%)
Dan Burrows, Chief Executive Officer, commented:
“The results of the third quarter once again demonstrate the strength of our business, the steps we have taken to optimize our risk adjusted returns, and our disciplined approach to capital management. Looking ahead, we remain focused on leveraging our scale and positioning, capitalizing on our ability to identify compelling opportunities and produce superior underwriting results. We are pleased with the momentum in our business and continue to pursue attractive growth and value creation for shareholders”.
The group’s divisional income and underwriting ratio year to date and compared to previous years are as follows:
Source Fidelis Insurance Group
Commentary by division
- Specialty – The GWP increase in 2024 is mainly due to new business and improved rates within property D&F, property and marine, but is partially offset by decreases in aviation and aerospace. Hurricane Helene and Storm Boris combined with a slightly adverse attritional claims ratio are the cause of the higher loss ratio of 50.9% year to date (Q3 2023 48.0%)
- Bespoke – The GWP increase for 2024 is primarily driven by new business, partially offset by the timing of renewals for credit & political risks business. Prior years’ releases were the main driver of the favourable loss ratio development despite some large losses related to intellectual property business which is no longer written by Fidelis
- Reinsurance – The GWP increase for 2024 is driven by new business and rate increases. The favourable claims experience in 2024 is due to an improved attritional and catastrophe loss experience. Catastrophe losses are mainly from Hurricane Helene.
Alpha comment
Despite the higher combined ratio published by Fidelis in Q3 2024 as compared with the same time 2023, these results are positive in nature. The company is achieving significant growth in this hard market with year to date growth of 23.4% for 2024. 2023 was a benign year in terms of claims, particularly US hurricanes, and therefore it was perhaps unsurprising that Fidelis had a higher loss ratio with the recent Hurricane Helene. This excludes any impact from Hurricane Milton. The Return on Equity (ROE) of 10.4% year to date is highly encouraging with Fidelis capitalising on the favourable market conditions. For the full release please click here.
