Latest news with #FidelisInsurance
Yahoo
6 days ago
- Business
- Yahoo
Fidelis Insurance (NYSE:FIHL) Misses Q2 Revenue Estimates
Specialty insurance provider Fidelis Insurance (NYSE:FIHL) fell short of the market's revenue expectations in Q2 CY2025, but sales rose 9.1% year on year to $589.3 million. Its non-GAAP profit of $0.12 per share was significantly above analysts' consensus estimates. Is now the time to buy Fidelis Insurance? Find out in our full research report. Fidelis Insurance (FIHL) Q2 CY2025 Highlights: Net Premiums Earned: $538 million vs analyst estimates of $611.5 million (7.4% year-on-year growth, 12% miss) Revenue: $589.3 million vs analyst estimates of $646.7 million (9.1% year-on-year growth, 8.9% miss) Combined Ratio: 104% vs analyst estimates of 110% (670 basis point beat) Adjusted EPS: $0.12 vs analyst estimates of -$0.33 (significant beat) Book Value per Share: $22.04 vs analyst estimates of $21.68 (1.1% year-on-year growth, 1.7% beat) Market Capitalization: $1.85 billion Dan Burrows, Group Chief Executive Officer of Fidelis Insurance Group, commented: 'We have continued to successfully execute on our strategy of balancing the pursuit of profitable underwriting opportunities with returning meaningful capital to shareholders." Company Overview Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE:FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions. Revenue Growth Insurance companies earn revenue from three primary sources: The core insurance business itself, often called underwriting and represented in the income statement as premiums Income from investing the 'float' (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities Fees from various sources such as policy administration, annuities, or other value-added services Fidelis Insurance's annualized revenue growth rate of 21.8% over the last two years was incredible for an insurance business. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Fidelis Insurance's revenue grew by 9.1% year on year to $589.3 million, missing Wall Street's estimates. Net premiums earned made up 76.8% of the company's total revenue during the last four years, meaning insurance operations are Fidelis Insurance's largest source of revenue. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company's underwriting success and market penetration. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Book Value Per Share (BVPS) Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders. We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS. Disappointingly for investors, Fidelis Insurance's BVPS grew at a mediocre 11% annual clip over the last two years. Over the next 12 months, Consensus estimates call for Fidelis Insurance's BVPS to grow by 21.4% to $21.68, elite growth rate. Key Takeaways from Fidelis Insurance's Q2 Results It was good to see Fidelis Insurance beat analysts' EPS and combined ratio expectations this quarter. We were also happy its book value per share outperformed Wall Street's estimates. On the other hand, its revenue and net premiums earned fell short. Overall, this print was mixed but still had some key positives. The stock remained flat at $17.51 immediately after reporting. So do we think Fidelis Insurance is an attractive buy at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
10-08-2025
- Business
- Yahoo
Fidelis Insurance Holdings' (NYSE:FIHL) Shareholders Will Receive A Bigger Dividend Than Last Year
Fidelis Insurance Holdings Limited (NYSE:FIHL) will increase its dividend on the 26th of September to $0.15, which is 50% higher than last year's payment from the same period of $0.10. This makes the dividend yield 2.4%, which is above the industry average. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Fidelis Insurance Holdings' Projections Indicate Future Payments May Be Unsustainable Estimates Indicate Fidelis Insurance Holdings' Could Struggle to Maintain Dividend Payments In The Future Fidelis Insurance Holdings' Future Dividends May Potentially Be At Risk While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Fidelis Insurance Holdings is not generating a profit, but its free cash flows easily cover the dividend, leaving plenty for reinvestment in the business. We generally think that cash flow is more important than accounting measures of profit, so we are fairly comfortable with the dividend at this level. EPS is forecast to rise very quickly over the next 12 months. Assuming the dividend continues along recent trends, we could see the payout ratio reach 222%, which is on the unsustainable side. View our latest analysis for Fidelis Insurance Holdings Fidelis Insurance Holdings Doesn't Have A Long Payment History It's not possible for us to make a backward looking judgement just based on a short payment history. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself. Fidelis Insurance Holdings Could Grow Its Dividend The company's investors will be pleased to have been receiving dividend income for some time. Fidelis Insurance Holdings has impressed us by growing EPS at 8.0% per year over the past five years. Even though the company isn't making a profit, strong earnings growth could turn that around in the near future. As long as the company becomes profitable soon, it is on a trajectory that could see it being a solid dividend payer. In Summary Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Fidelis Insurance Holdings that you should be aware of before investing. Is Fidelis Insurance Holdings not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Reinsurance Stocks Q1 Recap: Benchmarking Fidelis Insurance (NYSE:FIHL)
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Fidelis Insurance (NYSE:FIHL) and its peers. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. The primary headwind remains the immense and concentrated exposure to large-scale catastrophe losses, as the growing impact of climate change challenges traditional risk models and creates significant earnings volatility. Additionally, they face the risk of adverse prior-year reserve development, where claims prove more costly than anticipated, while the eventual influx of new capital from alternative sources threatens to soften the market and compress future returns. The 7 reinsurance stocks we track reported a mixed Q1. As a group, revenues beat analysts' consensus estimates by 4.9%. While some reinsurance stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results. Fidelis Insurance (NYSE:FIHL) Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE:FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions. Fidelis Insurance reported revenues of $658.4 million, up 26.6% year on year. This print exceeded analysts' expectations by 5.5%. Overall, it was a strong quarter for the company with a narrow beat of analysts' book value per share estimates. Dan Burrows, Group Chief Executive Officer of Fidelis Insurance Group, commented: "During the first quarter, we capitalized on new business opportunities across the portfolio and delivered 14% top-line growth. The strength of our balance sheet also enabled us to repurchase $41.5 million of common shares year-to-date, which at our current valuation, is highly accretive to our book value. Unsurprisingly, the stock is down 6.3% since reporting and currently trades at $15.98. Is now the time to buy Fidelis Insurance? Access our full analysis of the earnings results here, it's free. Best Q1: Hamilton Insurance Group (NYSE:HG) Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE:HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States. Hamilton Insurance Group reported revenues of $768.8 million, up 16.7% year on year, outperforming analysts' expectations by 28.3%. The business had an exceptional quarter with a solid beat of analysts' EPS and net premiums earned estimates. Hamilton Insurance Group delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $21.12. Is now the time to buy Hamilton Insurance Group? Access our full analysis of the earnings results here, it's free. Weakest Q1: Everest Group (NYSE:EG) Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE:EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents. Everest Group reported revenues of $4.26 billion, up 3.1% year on year, falling short of analysts' expectations by 4.2%. It was a disappointing quarter as it posted a significant miss of analysts' net premiums earned estimates and a significant miss of analysts' EPS estimates. As expected, the stock is down 3.4% since the results and currently trades at $333.07. Read our full analysis of Everest Group's results here. Arch Capital Group (NASDAQ:ACGL) With roots dating back to 1995 and now operating across insurance markets on six continents, Arch Capital Group (NASDAQ:ACGL) provides specialty insurance, reinsurance, and mortgage insurance services worldwide through its three main business segments. Arch Capital Group reported revenues of $4.67 billion, up 18.6% year on year. This number topped analysts' expectations by 1%. Overall, it was a strong quarter as it also logged a solid beat of analysts' net premiums earned estimates and an impressive beat of analysts' EPS estimates. The stock is down 6.4% since reporting and currently trades at $88.70. Read our full, actionable report on Arch Capital Group here, it's free. Reinsurance Group of America (NYSE:RGA) Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE:RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements. Reinsurance Group of America reported revenues of $5.34 billion, down 17.5% year on year. This print came in 2.9% below analysts' expectations. More broadly, it was a mixed quarter as it also logged a solid beat of analysts' book value per share estimates but a significant miss of analysts' net premiums earned estimates. Reinsurance Group of America had the slowest revenue growth among its peers. The stock is down 2.5% since reporting and currently trades at $194.81. Read our full, actionable report on Reinsurance Group of America here, it's free. Market Update The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. 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Yahoo
30-06-2025
- Business
- Yahoo
2 Cash-Heavy Stocks with Competitive Advantages and 1 to Ignore
A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow. Just because a business has cash doesn't mean it's a good investment. Luckily, StockStory is here to help you separate the winners from the losers. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one with hidden risks. Net Cash Position: $478.6 million (27% of Market Cap) Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE:FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions. Why Is FIHL Risky? Products and services are facing significant end-market challenges during this cycle as sales have declined by 11.2% annually over the last two years Inability to adjust its cost structure while its revenue declined over the last two years led to a 55.6 percentage point drop in the company's combined ratio Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 41.7% annually, worse than its revenue At $16.27 per share, Fidelis Insurance trades at 0.7x forward P/B. To fully understand why you should be careful with FIHL, check out our full research report (it's free). Net Cash Position: $5.19 billion (1.7% of Market Cap) Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions. Why Will PLTR Outperform? Billings growth has averaged 38.6% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently Strong free cash flow margin of 47.2% enables it to reinvest or return capital consistently Palantir's stock price of $134.47 implies a valuation ratio of 80.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it's free. Net Cash Position: $18 million (0.2% of Market Cap) Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services. Why Does DRS Catch Our Eye? Backlog has averaged 54.4% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future Incremental sales significantly boosted profitability as its annual earnings per share growth of 17.5% over the last two years outstripped its revenue performance Free cash flow margin grew by 4.7 percentage points over the last five years, giving the company more chips to play with Leonardo DRS is trading at $45.29 per share, or 41.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
16-06-2025
- Business
- Yahoo
AM Best Assigns Issue Credit Rating to Fidelis Insurance Holdings Limited Subordinated Notes
OLDWICK, N.J., June 16, 2025--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of "bbb-" (Good) to $400 million 7.75% fixed rate subordinated notes, due June 15, 2055 issued by Fidelis Insurance Holdings Limited (Fidelis) (Bermuda). The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of Fidelis and its subsidiaries are unchanged. The release relates to the previously assigned indicative Long-Term IR of this note which has been withdrawn. Fidelis intends to use proceeds of this issue to repay outstanding preference shares, while the remainder will be used for general corporate purposes. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Antonieta Iachetta Associate Director +1 908 882 1901 Guilherme Monteiro Simoes, CFA Senior Financial Analyst +1 908 882 2317 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
