Q2 2024 Fidelis Insurance Holdings Ltd Earnings Call Transcript
Key Points
- Fidelis Insurance Holdings Ltd (FIHL) reported a 24.7% increase in gross premiums written for the second quarter, with double-digit growth across all three segments.
- The company achieved an overall Renewal Pricing Index (RPI) of 112% for the quarter, indicating strong pricing power.
- FIHL's property direct and facultative segment saw a 37.4% increase in gross written premiums, driven by high retention of existing clients and new business.
- The company has completed a $50 million share repurchase program and announced a new $200 million share repurchase program, reflecting strong capital management.
- Net investment income increased to $46 million for the second quarter, up from $27.3 million in the prior year period, due to strategic portfolio rotation into higher-yielding securities.
- The combined ratio for the quarter was 92.7%, higher than prior quarters, primarily due to a higher level of catastrophe and large losses in the specialty segment.
- Losses on intellectual property insurance within the bespoke segment contributed 8.2 points to the overall combined ratio, leading to the cessation of underwriting this product.
- Aviation and aerospace premiums were down compared to the prior year, driven by deals not meeting underwriting criteria and rating hurdles.
- The company faced heightened severe convective storms, impacting the loss ratio and contributing to a catastrophe and large loss ratio of 36.2% for the quarter.
- Policy acquisition expenses from third parties were 28.4 points of the combined ratio, in line with the prior year period, but general and administrative expenses increased to 4.9 points from 4.3 points, driven by higher headcount.
Good morning, ladies and gentlemen, and welcome to the Fidelis Insurance Holdings' second quarter 2024 earnings conference call. As a reminder, this call is being recorded for replay purposes. (Operator Instructions)
With that, I will now turn the call over to Miranda Hunter, Head of Investor Relations. Ms. Hunter, please go ahead.
Good morning, and welcome to the Fidelis Insurance Group's second quarter 2024 earnings conference call. With me today are Dan Burrows, our CEO; Allan Decleir, our CFO; and Johnny Strickle, our Chief Actuarial Officer.
Before we begin, I'd like to remind everyone that statements made during the call, including the question-and-answer section may include forward-looking statements. These statements are based upon management's current assessments and assumptions and are subject to a number of risks and uncertainties. These risks and uncertainties are described in our most recent annual report on Form 20-F filed with the SEC.
Although we
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