Fidelis Insurance’s third quarter results were shaped by a combination of strong underwriting discipline and targeted growth in both its insurance and reinsurance segments, despite missing market revenue expectations. Management attributed the quarter’s performance to a best-in-class combined ratio and continued success in risk selection across specialty lines. CEO Dan Burrows emphasized, “Our excellent third quarter performance demonstrates the strength of our portfolio and the success of our underwriting strategy,” highlighting improvements in both property and asset-backed finance books. The company also benefited from favorable prior year development and disciplined capital allocation, as well as ongoing expansion of its partner network.
Is now the time to buy FIHL? Find out in our full research report (it’s free for active Edge members).
Fidelis Insurance (FIHL) Q3 CY2025 Highlights:
- Revenue: $651.9 million vs analyst estimates of $733.7 million (5% year-on-year decline, 11.1% miss)
- Adjusted EPS: $1.21 vs analyst estimates of $1.20 (1% beat)
- Adjusted Operating Income: $160.8 million (24.7% margin, 36.4% year-on-year growth)
- Market Capitalization: $1.95 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Fidelis Insurance’s Q3 Earnings Call
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David Motemaden (Evercore ISI) asked about reinsurance renewal outlook and whether top-line growth can be sustained. CEO Dan Burrows responded that the company remains optimistic about growth opportunities, citing a strong partnership network and prevailing hard market conditions.
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Meyer Shields (KBW) inquired about verticalization trends and whether they are unique to the current market cycle. Burrows explained that verticalization occurs in both hard and soft markets, but Fidelis Insurance’s lead market positioning enhances its ability to set terms and access new business.
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Brian Meredith (UBS) questioned exposure to Caribbean hurricane losses and insurance opportunities in data center construction. Burrows acknowledged some exposure to recent hurricane events but noted losses are within expected ranges. Group Managing Director Jonathan Strickle described the company’s strategy for participating in large, complex placements like data centers.
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Alex Scott (Barclays) asked about the impact of TFP’s Lloyd’s syndicate and new underwriting partnerships on Fidelis Insurance’s business mix. Strickle clarified that the company retains first access to attractive business and that the agreement with TFP is working as intended, with complementary partners adding to growth.
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Michael Zaremski (BMO Capital Markets) queried reserve release trends and combined ratios for new partners. Strickle and CFO Allan Decleir emphasized consistent reserving methodology and confirmed that new partnerships are meeting combined ratio targets, supporting the company’s overall profitability goals.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be tracking (1) signs of sustained underwriting margin strength and low loss ratios, (2) the pace and quality of new business from expanding underwriting partnerships, and (3) developments in the property, asset-backed finance, and specialty lines as Fidelis Insurance adapts to shifting market conditions. Progress in capital management and successful navigation of competitive pressures will also be important indicators of execution.
Fidelis Insurance currently trades at $18.90, down from $19.14 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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