In its 2023 H1 results, Fidelis Insurance Group reported gross premiums written of $2.2 billion, marking a growth of 27% from H1 last year, while the combined ratio also improved to 80.6%.
For Q2 alone, Fidelis said that gross premiums written grew 25.3% to $957.2 million, while the combined ratio was 82.0%; an improvement of 8.5 points from Q2 of 2022.
Fidelis’ annualised operating return on average common equity was 18.2% for H1 of 2023, and 17.6% for Q2 of 2023.
Net income available to common shareholders for Q2 of 2023 was $83.9 million, a massive increase compared to net income available to common shareholders of $8.4 million in the same period last year.
Net income available to common shareholders for H1 was $1,816.5 million, which includes a net gain on distribution of Fidelis MGU of $1,639.1 million. Fidelis said that excluding the net gain on distribution of Fidelis MGU, its net income for H1 was $177.4 million.
This compares to net income available to common shareholders of $25.4 million for the same period last year.
Meanwhile, the firm’s underwriting income in H1 was $158.1 million with a combined ratio of 80.6%, compared to $72.2 million and a combined ratio of 89.0% last year.
Fidelis said the improvement was driven by continued premium earnings growth and profitability in its Specialty segment, and lower catastrophe and large losses.
Catastrophe and large losses for H1 stood at $63.7 million, down substantially from the $144.3 million figure reported last year.
Fidelis’ net investment income in H1 also improved, climbing to $47.7 million from $12.5 million in the prior year period.
Dan Burrows, Group Chief Executive Officer, commented, “It is an extremely exciting time for Fidelis Insurance Group and I’m delighted to present to you our first earnings release as a public company.
“Our second quarter results are a testament to the strength of our business model and the continued execution of our strategy and our ability to generate value for our shareholders. Our second quarter gross premiums written and combined ratio demonstrate our ability to capitalize on opportunities driven by favorable market conditions whilst remaining disciplined in our underwriting approach.
“Our half year results have delivered an 80.6% combined ratio which represents annualized Operating ROAE of 18.2%. Against a backdrop of high industry losses, our focus is on profitable growth with reduced volatility, resulting in attractive ROEs over the market cycle.”
Richard Brindle Chairman and CEO of the Fidelis MGU, added, “The timing of the separation of our companies has been excellent, as it coincides with a broad based hardening of both insurance and reinsurance markets.
“For me and my team, the ability to focus all our attention on underwriting opportunities, developing new products and widening our distribution is really energising. We know that Fidelis Insurance Group are doing a great job managing the capital and the investors, enabling us to grow the business and optimise our underwriting.
“The alignment between Fidelis MGU and Fidelis Insurance Group is working as designed, and we congratulate Dan and the team on their successful IPO.”
