Insurance group sees massive drop in net income

Insurance group sees massive drop in net income | Insurance Business America

Insurance News

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

US$81.2 million

US$1.7 billion

Operating net income

US$87.3 million

US$93.7 million

Gross written premium

US$1.5 billion

US$1.2 billion

Net premiums earned

US$488 million

US$386 million

Net investment income

US$41 million

US$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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