BUZZ-Fidelis hits 1-year low on $287 mln reserve for Russia-Ukraine aviation claims

Shares of specialty insurer Fidelis Insurance FIHL.N fall as much as 12.1%, hitting their lowest since February 2024

FIHL late Wednesday disclosed $287.2 million reserve charge in its aviation book related to outstanding claims on aircraft trapped due to Russia-Ukraine conflict

Co says two-thirds of its Russia exposure has been settled or is in various stages of settlement discussions, with the remaining mostly related to claims being litigated in English courts

J.P. Morgan notes the unexpected adverse development, adding that while the reserve charge may de-risk FIHL's litigation exposure, the stock could underperform due to the significant equity decline

Separately, FIHL expects catastrophe losses related to the January 2025 California wildfires to be in the range of $160 million to $190 million

Co expects to release Q4 results on February 25 after market close

As of last close, FIHL shares down 9% YTD