Fidelis Insurance Group reported a 25.2% increase in gross premiums written for the third quarter of 2024, amounting to $741.9 million.
Net income for the period was $100.6 million, or $0.88 per diluted share, while operating net income was recorded at $105.1 million, or $0.92 per share. Underwriting income for the quarter stood at $80 million, with a combined ratio of 87.4%, compared to $74.8 million in underwriting income and a combined ratio of 85.4% in the third quarter of 2023.
Catastrophe and large losses in the third quarter totalled $91.6 million, up from $79.9 million in the prior-year period. Fidelis also reported a net favourable prior-year loss reserve development of $10.1 million, compared to $43.3 million last year.
Net investment income rose to $52.1 million, up from $33.1 million a year ago, with $437.6 million of fixed-income securities purchased at an average yield of 4.6%. The company’s operating return on equity (ROE) for the quarter was 4.2%, or 16.8% annualised, while operating return on average equity (ROAE) was 4.1%, or 16.4% annualised, compared to 4.6% and 4.4% respectively in the previous year.
For the first nine months ending 30 September 2024, Fidelis reported gross premiums written of $3.4 billion, marking a 23.4% growth from the same period in 2023. Net income for the nine months was $235.5 million, or $2.02 per diluted share, with operating net income at $255.3 million, or $2.18 per share.
Underwriting income was $185.9 million, with a combined ratio of 88.6%, down from $232.9 million in underwriting income and a combined ratio of 82.4% during the first nine months of 2023.
The company’s catastrophe and large losses for the nine-month period totalled $375.8 million, compared to $187.3 million the previous year. Net favourable prior-year loss reserve development was $145.7 million, up from $47.8 million in the prior-year period.
Net investment income for the nine months reached $139.1 million, an increase from $80.8 million last year, with $1.5 billion of fixed-income securities purchased at an average yield of 4.9%, resulting in a current book yield of 4.9% as of 30 September 2024.
Fidelis’ operating ROE for the period was 10.4%, or 13.9% annualised, and operating ROAE was 10%, or 13.3% annualised, compared to 14.7% and 13.3% respectively in the prior year.
At the close of the quarter, book value per diluted share was $23.43, compared to $20.69 at the end of 2023. The company repurchased $66.8 million in common shares as part of its capital management strategy.
Group CEO Dan Burrows (pictured above) noted the growth in premiums and solid underwriting results, emphasising the company’s approach to optimising risk-adjusted returns and disciplined 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,” Burrows said. “We are pleased with the momentum in our business and continue to pursue attractive growth and value creation for shareholders.”
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