Fidelis Insurance Group sees massive drop in net income
Fidelis Insurance Group sees massive drop in net income | Insurance Business America
Insurance News
Fidelis Insurance Group sees massive drop in net income
Underwriting income up in specialty and reinsurance segments
Insurance News
By
Terry Gangcuangco
Fidelis Insurance Group (formally Fidelis Insurance Holdings Limited) has released its earnings report for the three months ended March 31.
Here’s how Fidelis performed in the quarter:
Metric
Q1 2024
Q1 2023
Net income
$81.2 million
$1.7 billion
Operating net income
$87.3 million
$93.7 million
Gross written premium
$1.5 billion
$1.2 billion
Net premiums earned
$488 million
$386 million
Net investment income
$41 million
$20.4 million
Combined ratio
85.8%
79.1%
According to Fidelis, the underwriting income for its specialty segment grew from $59.2 million to $77.9 million in Q1. Its bespoke segment, meanwhile, saw a decline in underwriting income, from $44.8 million in the same period last year to $36.2 million this time around. As for the group’s reinsurance segment, the underwriting income improved from $17.4 million to $55.4 million.
Without explaining the massive drop in net income, group chief executive Dan Burrows (pictured) stated: “2024 is off to a very strong start as we build on our momentum from 2023 and continue capitalizing on attractive market opportunities.
“In line with our expectations, we delivered strong underwriting performance including 21.6% growth in gross premiums written and a combined ratio of 85.8%. Additionally, we achieved an annualized operating ROAE (return on average common equity) of 14% and grew our book value per diluted common share to $21.22.
“As we look ahead to the rest of the year, we will continue to leverage our scale, deep relationships, and lead positioning to further grow our business. Our fundamentals are excellent, we have a strong pipeline of opportunities, and we are leaning in across attractive lines where we expect to generate increased underwriting profitability.
“Coupled with our proactive and disciplined approach to investment and capital management, we believe we are well positioned to continue delivering compelling returns through the cycle and creating value for our shareholders.”
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