FIHL Earnings Prediction
The chart below shows how FIHL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FIHL sees a -2.13% change in stock price 10 days leading up to the earnings, and a +0.46% change 10 days following the report. On the earnings day itself, the stock moves by +2.22%. This data can give you a slight idea of what to expect for the next quarter's release.
FIHL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
680.70M
25.45%
25.82%
Gross Margin
--
--
--
Operating Margin
18.97%
-0.47%
38.27%
Net Margin
14.78%
-8.54%
48.84%
EPS
0.88
18.92%
91.30%
No Data Available
FIHL Earnings Analysis
Fidelis Insurance Holdings Limited Corporation (FIHL.N) Earnings Conference Call
Positive
Premiums Surge 25%: 1. Strong Premium Growth: Gross premiums written increased by 25% to $742 million in Q3 2024, driven by disciplined execution and new business opportunities.
Effective Cost Management: 2. Robust Combined Ratio: The company achieved a combined ratio of 87.4% for the quarter, reflecting effective cost management and profitable underwriting practices.
Strong Profitability Indicator: 3. High Return on Equity: Fidelis reported an annualized operating return on average equity of 16.4% for Q3 2024, indicating strong profitability and efficient capital utilization.
Shareholder Return Commitment: 4. Significant Shareholder Returns: Since the beginning of the year, Fidelis has returned $141 million to shareholders through dividends and share buybacks, demonstrating a commitment to capital management.
Investment Income Increase: 5. Investment Income Growth: Net investment income rose to $52 million in Q3 2024, up from $33 million in the prior year, reflecting a higher yield fixed income portfolio and increased investable assets.
Negative
Aviation Adverse Development: 1. Adverse Development in Aviation: The company reported an adverse prior year development of $14 million in the aviation and aerospace line due to increased estimates related to ongoing Russia-Ukraine litigation, which negatively impacted the overall specialty segment.
Catastrophe Loss Impact: 2. Catastrophe Losses: The third quarter saw catastrophe losses amounting to $92 million, with significant contributions from Hurricane Helene ($34 million) and European Storm Boris ($24 million), indicating vulnerability to large loss events despite an overall strong performance.
Rising Acquisition Expenses: 3. Increased Acquisition Costs: Policy acquisition expenses rose to 31 points of the combined ratio from 29.6 points in the prior year, primarily driven by higher variable commissions in the specialty segment, reflecting increased costs associated with growth.
Favorable Development Decline: 4. Decline in Favorable Development: The company experienced a decrease in net favorable prior year development, reporting only $10 million for the quarter compared to $43 million in the prior year period, indicating a potential deterioration in reserve adequacy.
Share Repurchase Effectiveness Concerns: 5. Share Repurchase Program Concerns: While the company has initiated a $200 million share repurchase program, concerns were raised about the effectiveness of this strategy given the stock's undervaluation relative to its potential return on equity of 14% to 16%, suggesting a misalignment in capital allocation priorities.
FIHL FAQs
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FIHL Earning Call Sentiment
Fidelis Insurance Holdings Limited (FIHL) Q3 2024 Earnings Call Transcript
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00:00
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FIHL.N
-1.61%Positive
The earnings call summary and Q&A reveal strong financial performance with significant growth in gross and net premiums, a low combined ratio indicating profitability, and a robust ROAE. The new $200 million share repurchase program is a positive signal for shareholder returns. Despite some management evasiveness in the Q&A, the overall sentiment is positive, supported by a 25% YoY increase in gross premiums and improved attritional loss ratios. Given the market cap, the stock is likely to see a positive movement of 2% to 8% over the next two weeks.