Insurer and reinsurer Fidelis Insurance Holdings Limited generated net income of $130.5 million for the third quarter of 2025, an increase of 30% on the prior year, with an improved underwriting result in both its insurance and reinsurance segments.
Across the group, underwriting income rose to $125.5 million with a combined ratio of 79% for Q3’25, compared with underwriting income of $80 million and a combined ratio of 87.4% in Q3’24.
During the quarter, Fidelis also benefited from net favorable prior year loss reserve development of $16 million, compared with $10.1 million of favourable development in the prior year quarter.
Catastrophe and large losses also came down year-on-year, reaching $57.4 million compared with $91.6 million last year.
In terms of growth, Fidelis generated gross premiums written (GPW) of $797.5 million for Q3’25, up on the prior year’s $741.9 million, as net premiums earned decreased to $599.8 million from $634.5 million.
The carrier’s reinsurance business had a solid third quarter, posting a rise in underwriting income to $97.5 million compared with $85.3 million a year earlier.
Losses and loss adjustment expenses declined significantly in the third quarter to $3.7 million from $36.1 million, as the loss ratio decreased to 2.6% from 22.8%, with Fidelis reporting no material catastrophe and large losses for the three months. The underwriting ratio was 32% for Q3’25 compared with 46.3% in Q3’24.
Reinsurance GPW increased by 20% year-on-year to $191.7 million for Q3’25, as net premiums written (NPW) rose 54% to $115.7 million, and net premiums earned decreased by 10% to $143.3 million. Reinsurance premiums ceded hit $76 million for Q3’25 compared with $84.3 million for Q3’24.
Fidelis attributes the GPW increase to taking advantage of new business opportunities, including from loss-impacted accounts following the January 2025 California wildfires. NPW fell as a result of the underlying mix of peril and geographic zones that impact the proportion of premium earned from quarter to quarter, explains the firm.
In the firm’s insurance segment, underwriting income rose by 24% to $142.3 million, as losses and loss adjustment expenses decreased to $177 million for Q3’25 from $201.7 million in Q3’24. The loss ratio strengthened by 3.6 percentage points to 38.8%, with an insurance underwriting ratio of 68.9%, an improvement on the prior year’s 75.9%.
Catastrophe and large losses within insurance for Q3’25 were primarily attributable to two loss events in the company’s Property and Other Insurance lines of business.
Insurance GPW swelled by 4% to $605.8 million for Q3’25, as NPW fell slightly to $388.5 million, net premiums earned declined to $456.5 million from $475.9 million, and reinsurance premiums ceded increased by 15% to $217.3 million.
Fidelis highlights growth from new business in its Asset Backed Finance & Portfolio Credit line of business, partially offset by timing in its Political Risk, Violence & Terror line of business related to the Lloyd’s Syndicate 3123, as drivers of the GPW growth.
At The Fidelis Partnership, which manages origination, underwriting, underwriting administration, outwards reinsurance and claims handling under delegated authority agreements with the group, total commissions amounted to $87.1 million for Q3’25, down on the prior year quarter’s $97.3 million, with a commission ratio of 14.5%, compared with 15.3% last year.
On the asset side of the balance sheet, net investment income decreased by $6.2 million year-on-year to $45.9 million for Q3’25.
For the first nine months of 2025, Fidelis has reported net income of $107.7 million, which is down on 9M’24’s $235.5 million, as catastrophe and large losses increased to $465 million from $375.8 million. Further, in 9M’24 Fidelis booked $145.7 million of net favourable prior year reserve development, but for 9M’25, booked $32.4 million of unfavourable prior year reserve development. As a result, the combined ratio deteriorated to 99.5% for 9M’25 compared with 88.6% for 9M’24.
Across the group, GPW increased to $3.7 billion for 9M’25 from $3.5 billion in 9M’24, as net premiums earned increased to $1.7 billion from $1.6 billion.
Net investment income for the nine month period hit $140 million, slightly up on the prior year’s $139.1 million.
“We delivered outstanding results in the third quarter, with our 79.0% combined ratio representing our best quarterly performance as a publicly traded company and an excellent annualized Operating ROAE of 21.4%,” said Dan Burrows, Group Chief Executive Officer of Fidelis Insurance Group.
“We grew gross premiums written by 8%, reinforcing our confidence in our target range of 6-10% for the full-year. In a prevailing hard market, we remain well positioned for growth and value creation given our differentiated positioning and diverse risk access, particularly as we continue to expand our network of underwriting partnerships. Across our portfolio, we are focused on margin and exercising strong discipline with respect to rate, terms and conditions as we see signs of rate pressure in certain pockets.
“Looking ahead, we are focused on providing solutions for our clients in an evolving risk landscape. Our strong capital position enables us to successfully balance growth with returning excess capital to shareholders, and we continue to see share repurchases as a highly accretive use of capital,” he added.
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