Reinsurance News

Fidelis reports increased GWP & improved combined ratio in 2022

11th April 2023 - Author: Kane Wells

In its 2022 full year results, Bermuda-based Fidelis Insurance Holdings Limited has reported that gross written premiums (GWP) increased to $3 billion compared to 2.78 billion in 2021, while the firm’s combined ratio improved to 92.1% from 92.9%.

Of the GWP total in 2022, $1.61 billion was made up of speciality business (2021:$1.1bn), with $783 million in bespoke business (2021:$588m) and $606 million in reinsurance (2021:$1.08bn).

Fidelis’ net premium earned in 2022 stood at $1.5 billion, up from 2021’s $1.1 billion.

Meanwhile, losses and loss adjustment expenses in 2022 were $830 million, compared with $697 million in 2021.

Policy acquisition expenses were also higher in 2022 at $447 million, compared to $300 million in 2021.

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Fidelis reported an overall underwriting income in 2022 of $120 million, which includes a -$17 million underwriting loss in reinsurance.

In 2021, overall underwriting income stood at $82m, after tallying a loss of -$140 million in reinsurance.

The firm’s net investment losses in 2022 were $33 million, worse off than the net investment income of $20 million in 2021.

Fidelis reported corporate and other expenses in 2022 of $20 million, an increase from just $3 million in the prior year.

The firm’s net income before taxes was $80 million, though an income tax of $17 million lowered the overall net income figure to $62 million (2021:$78 million). The combined ratio in 2022 improved, standing at 92.1% in 2022, compared to 92.9% in 2021.

In related news, Fidelis recently confirmed that it intends to pursue an initial public offering of its common shares, following the establishment of Fidelis MGU last month.

The recent creation of the new managing general underwriter ‘bifurcated’ the business from Fidelis’ existing balance sheet insurance companies.

The capital structure of Fidelis Insurance Group capital remains unchanged after the split, but rating agencies are keeping Fidelis under review with negative implications due to the potential for disruption.

The number of common shares to be offered and the price range for the proposed offering have not yet been determined.

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