Fidelis Insurance : 2024 Financial Conditions Report (12 24 FIHL FCR Final)

Published: 2025-06-02 08:19:06 ET FIHL

Published on 06/02/2025 at 08:19

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INSURANCE GROUP

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EXECUTIVE SUMMARY................................................................................................................................

BUSINESS AND PERFORMANCE..................................................................................................................

A1. BUSINESS ..............................................................................................................................................

A2. PERFORMANCE.....................................................................................................................................

A3. ANY OTHER INFORMATION..................................................................................................................

SYSTEM OF GOVERNANCE..........................................................................................................................

B1. BOARD AND SENIOR EXECUTIVE ..........................................................................................................

B2. FIT AND PROPER REQUIREMENTS........................................................................................................

B3. RISK MANAGEMENT AND SOLVENCY SELF-ASSESSMENT....................................................................

B4. INTERNAL CONTROL SYSTEM ...............................................................................................................

B5. INTERNAL AUDIT FUNCTION ................................................................................................................

B6. ACTUARIAL FUNCTION .........................................................................................................................

B7. OUTSOURCING .....................................................................................................................................

B8. OTHER INFORMATION..........................................................................................................................

RISK PROFILE...............................................................................................................................................

C1. MATERIAL RISKS THE INSURER IS EXPOSED TO DURING THE REPORTING PERIOD .............................

C2. INVESTMENT OF ASSETS IN ACCORDANCE WITH THE PRUDENT PERSON PRINCIPLES OF THE CODE OF CONDUCT ....................................................................................................................................

C3. RISK CONCENTRATION..........................................................................................................................

C4. STRESS TESTING AND SENSITIVITY ANALYSIS TO ASSESS MATERIAL RISKS .........................................

C5. ANY OTHER INFORMATION ..................................................................................................................

VALUATION FOR SOLVENCY PURPOSES.....................................................................................................

D1. VALUATION BASES, ASSUMPTIONS AND METHODS TO DERIVE THE VALUE OF EACH ASSET CLASS..

D2. VALUATION BASES, ASSUMPTIONS AND METHODS TO DERIVE THE VALUE OF TECHNICAL PROVISIONS ................................................................................................................................................

D3. VALUATION BASES, ASSUMPTIONS AND METHODS TO DERIVE THE VALUE OF OTHER LIABILITIES ..

D4. ANY OTHER INFORMATION..................................................................................................................

CAPITAL MANAGEMENT.............................................................................................................................

E1. ELIGIBLE CAPITAL..................................................................................................................................

E2. REGULATORY CAPITAL REQUIREMENTS...............................................................................................

E3. APPROVED INTERNAL CAPITAL MODEL................................................................................................

SUBSEQUENT EVENTS.................................................................................................................................

GLOSSARY ...................................................................................................................................................

FIDELIS INSURANCE HOLDINGS LIMITED & FIDELIS INSURANCE BERMUDA LIMITED

FINANCIAL CONDITION REPORT FOR THE YEAR FROM JANUARY 1, 2024 TO DECEMBER 31, 2024

EXECUTIVE SUMMARY

The Financial Condition Report ("FCR") covers the Business and Performance, System of Governance, Risk Profile, Valuation for Solvency Purposes, and Capital Management of the Fidelis Insurance Group and its subsidiaries, as well as Fidelis Insurance Bermuda Limited ("FIBL") and its subsidiaries, on a separate basis where appropriate. The report details the Group's risk profile and its solvency and capital needs and examines how the governance framework and risk management processes support it in identifying, monitoring, and assessing these needs. Fidelis Insurance Holdings Limited ("Fidelis", "FIHL", or "the Company") and its subsidiaries are collectively referred to as the "Group" or "Fidelis Insurance Group" within this FCR.

FIBL owns 100% of a UK holding company, Fidelis European Holdings Limited, ("FEHL"), which in turn owns 100% of an Irish insurance company, Fidelis Insurance Ireland DAC ("FIID"). On May 22, 2024, the Company established a Lloyd's corporate member, Nameco (No. 1404) Limited (the "Fidelis IG Corporate Member"), a wholly owned subsidiary of FIBL, to facilitate its participation (9.9% for the 2024 year of account) in Syndicate 3123's underwriting activity commencing July 1, 2024. These four entities are referred to as the "FIBL Group" within this FCR and all numbers quoted for the FIBL Group are on a consolidated basis.

A copy of this report is available on the Company's website: https://investors.fidelisinsurance.com/financials/Other-Financial-Results/default.aspx

The administrative body that has ultimate responsibility for all these matters is the FIHL Board of Directors, with the assistance of various governance and control functions which are in place to monitor and manage the business.

Throughout this document we have used acronyms and defined these in the glossary, please refer to page 46.

Fidelis Insurance Group is a global specialty insurer headquartered in Bermuda, with offices in Ireland and the United Kingdom.

The Group is comprised of:

FIHL is a holding company incorporated under the Bermuda Companies Act 1981 on August 22, 2014.

FIBL is a Class 4 Bermuda domiciled company which writes most of the Group's reinsurance business, as well as writing insurance. FIBL is regulated by the Bermuda Monetary Authority and acts as the designated insurer of the Group.

Fidelis Underwriting Limited ("FUL") is a U.K. domiciled company which writes a mix of general insurance and reinsurance business. FUL is regulated by the PRA and the FCA.

FIID is a Republic of Ireland domiciled company that writes a mix of insurance and reinsurance business. FIID is regulated by the CBI. FIID is owned by a U.K. holding company that is 100% owned by FIBL.

FIHL (UK) Services Limited ("FSL") is a U.K. service company that also has a branch in Ireland.

Nameco (No. 1404) Limited ("Fidelis IG Corporate Member"), which has a 9.9% participation in the 2024 year of account of Lloyd's Syndicate 3123.

The Group is exposed to risks from several sources. These include non-life underwriting risk, market risk, credit risk, liquidity risk, operational risk, strategic risk, group risk and emerging risk. The primary risk to the Group is underwriting risk. There were no material changes to the Group's key risk areas in 2024. Each of these risk areas is described in more detail in section C.

The Group undertakes various stress and scenario testing on a quarterly basis to confirm the adequacy of the capital and liquidity in respect of both the regulatory requirements and the maintenance of the Group's credit rating. The tests are designed to simulate extreme but possible scenarios affecting investments, underwriting and operations either individually or in combination.

Based on the latest results of these tests, management of the Group believes that it has sufficient capital and liquidity to comply with the contractual obligations of the organisation and regulatory requirements upon experiencing such scenarios.

As at December 31, 2024, Preference shares and the Group's Subordinated Notes are eligible Tier 2 capital and Senior Notes are eligible Tier 3 capital. The Group's remaining capital is Tier 1, the highest quality capital, consisting of capital stock, contributed surplus, and statutory surplus.

FIDELIS INSURANCE HOLDINGS LIMITED & FIDELIS INSURANCE BERMUDA LIMITED

FINANCIAL CONDITION REPORT FOR THE YEAR FROM JANUARY 1, 2024 TO DECEMBER 31, 2024

BUSINESS AND PERFORMANCE

FIHL is a Bermuda exempted company, incorporated under the Bermuda Companies Act 1981 on August 22, 2014. The following table sets forth information regarding beneficial ownership of our common shares, where known, to be more than 5% of common shares as at December 31, 2024 :

Names of Beneficial Owners, 5.0% Shareholders

Number

Crestview Funds

14,251,474

12.8 %

CVC Falcon Holdings Limited

15,782,348

14.1 %

Pine Brook Feal Intermediate L.P.

7,209,921

6.5 %

SPFM Holdings, LLC

7,202,354

6.4 %

The Fidelis Partnership

11,031,899

9.9 %

Name of Insurer:

Fidelis Insurance Holdings Limited (Group)

Fidelis Insurance Bermuda Limited (Designated Insurer)

Supervisors:

Group Supervisor

Bermuda Monetary Authority BMA House

43 Victoria Street, Hamilton Bermuda

Insurance Supervisor Bermuda Monetary Authority BMA House

43 Victoria Street, Hamilton Bermuda

Approved Auditor:

KPMG Audit Limited Crown House

4 Par-la-Ville Road

Hamilton, HM 08, Bermuda

The following diagram provides details of the Group structure as at December 31, 2024:

FIDELIS INSURANCE HOLDINGS LIMITED & FIDELIS INSURANCE BERMUDA LIMITED

FINANCIAL CONDITION REPORT FOR THE YEAR FROM JANUARY 1, 2024 TO DECEMBER 31, 2024

Our business comprises two segments: Insurance and Reinsurance. Within these segments, we offer a diverse portfolio comprising 10 distinct lines of business. This diversity enables us to serve various industries, manage different types of risk, and operate in multiple geographic regions. We believe our strategic approach and strong capabilities position us well to capitalize on opportunities in the dynamic (re)insurance markets. Our proactive strategy allows us to adjust our business mix in response to market cycles, targeting opportunities that offer an optimal balance of risk and reward.

The Insurance segment comprises a portfolio of specialty risks. In addition to major specialty lines of business, this segment includes highly tailored products, where the buying motivation is often driven by regulatory capital relief, capital efficiency or transaction facilitation including Property, Marine, Asset Backed Finance & Portfolio Credit, Aviation & Aerospace, Political Risk, Violence & Terror, Energy, Cyber, and Other Insurance risks. A strong rating environment following years of compound rate increases across multiple business lines within the Insurance segment have provided opportunities for targeted growth. We leverage our line size and lead position to cross-sell across our portfolio and achieve preferential terms and conditions. This, combined with long established relationships, has enabled Fidelis Insurance Group to build an established book of specialty business. Given the market environment we have increasingly used our Insurance segment to deploy capital targeted to natural catastrophe exposure through the Property line of business. This allows a more selective approach to managing aggregate exposure.

Our Reinsurance segment consists of an actively managed, property reinsurance book, providing reinsurance and a limited amount of retrocession coverage worldwide on a proportional or excess of loss basis.

FIDELIS INSURANCE HOLDINGS LIMITED & FIDELIS INSURANCE BERMUDA LIMITED

FINANCIAL CONDITION REPORT FOR THE YEAR FROM JANUARY 1, 2024 TO DECEMBER 31, 2024

Disclaimer

Fidelis Insurance Holdings Ltd. published this content on June 02, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 02, 2025 at 12:18 UTC.