Fidelis Insurance Group’s Chief Executive Officer Dan Burrows has suggested the firm is “well placed” to pursue the significant opportunities it sees ahead in the market.
The firm’s Board of Directors have thus approved the adoption of a common share repurchase program of up to $50 million of its common shares.
“Our performance through the third quarter has added to our solid capital position, and we are well placed to pursue the significant opportunities we see ahead in the market, while also adding to shareholder value through the repurchase of our shares,” Burrows commented.
According to Fidelis, the share repurchase program authorises the purchase of its common stock utilising a variety of methods, including open market purchases, accelerated share repurchases, and privately negotiated transactions (the Program).
In November Fidelis reported that underwriting income for the 9M ended September 30, 2023, was $232.9 million, with a combined ratio of 82.4%, much improved compared to an underwriting loss of $17.2 million and a combined ratio of 101.6% for the same period in 2022.
Fidelis’ net income available to common shareholders for the first 9M of 2023 was $1,904.2 million, which included a net gain on distribution of Fidelis MGU of $1,639.1 million.
Burrows continued, “We are pleased to announce the Board’s approval of this repurchase Program. Building on our strong performance and results through the third quarter, this Program demonstrates our belief in the compelling value of our shares.”
Under the Program, Fidelis noted that it may repurchase shares through open market purchases under Rule 10b-18 under the Securities Exchange Act of 1934, as amended, accelerated share repurchases or privately negotiated transactions, as well as pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act.
“The timing, as well as the number and value of common shares repurchased under the Program, will be determined by the Company at its discretion and will depend on a variety of factors, including its assessment of the intrinsic value of the Company’s common shares, the market price of the Company’s common shares, general market and economic conditions, available liquidity, compliance with the Company’s debt and other agreements, applicable legal, regulatory and contractual restrictions and the Company’s capital and business strategy,” Fidelis explained.
The firm also noted that the Program may be suspended or discontinued by the Board of Directors at any time.
