Fidelis Q2 combined ratio worsens to 103.7% on Russia-Ukraine aviation ruling

By Mia MacGregor

Aug 13 - (The Insurer) - Fidelis Insurance Holdings reported an 11 percentage point increase in its second-quarter combined ratio to 103.7% from 92.7% a year earlier, driven by net adverse development from the recent English High Court judgment on Russia-Ukraine aviation litigation.

The Bermuda-based insurer posted net income of $19.7 million, or $0.18 per diluted common share, for the second quarter of 2025.

Its operating net income stood at $13.6 million, or $0.12 per diluted common share, which also included adverse prior-year development in its aviation and aerospace line of business linked to the Ukraine conflict and the High Court ruling.

This beat the average estimate of a $0.43 operating loss per diluted share as per 10 analysts compiled by MarketWatch and was down from $0.54 in the second quarter of 2024.

Gross premiums written for the quarter reached $1.2 billion, a slight increase from $1.193 billion in the same period last year.

Fidelis recorded an underwriting loss of $20.6 million for the second quarter of 2025, compared to the underwriting income of $36.7 million reported in the second quarter of 2024.

Catastrophe and large losses for the quarter decreased to $74.3 million from $181.2 million in the prior-year period. These losses were primarily linked to the company's aviation and aerospace business, specifically related to Air India, and two loss events within its property line of business, according to the company.

“Our exposure to the Russia-Ukraine lessor policy aviation litigation is now firmly behind us, and with any remaining exposure being insignificant, we can now draw a line under this event,” said Dan Burrows, group CEO.

“Excluding the impact of this litigation, we would be outperforming our through-the-cycle targets with a combined ratio in the mid-70s for the quarter and significantly surpassing our ROAE target.”

Burrows added, “With our recently announced expansion of our capital management initiatives, including the $200 million renewal of our share repurchase program and increase in our quarterly dividend to $0.15 per share, we have enhanced flexibility to capitalize on the considerable dislocation in our current share price.”