AM Best Revises Fidelis Insurance Holdings’ Outlooks to Stable

AM Best has upgraded the outlooks to stable from negative for Fidelis Insurance Bermuda Limited, Fidelis Underwriting Limited, and Fidelis Insurance Ireland Designated Activity Company, affirming their Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of “a” (Excellent). Additionally, the outlook for Fidelis Insurance Holdings Limited has been revised to stable from negative, with its Long-Term Issuer Credit Rating affirmed at “bbb” (Good). Furthermore, AM Best has revised the outlook to stable from negative for Fidelis Insurance Holdings Limited’s $304 million 9% preference shares and affirmed their Long-Term Issue Credit Rating of “bb+” (Fair) due 2050.

These ratings reflect Fidelis’ very strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management. The negative outlook placed on the ratings in 2023 stemmed from the execution risk associated with the creation of Fidelis MGU, a new managing underwriting entity. However, AM Best has assessed the performance of the Fidelis management team and the strength of the business relationship between Fidelis and Fidelis MGU over the past year, demonstrating financial stability.

Fidelis boasts very strong balance sheet strength supported by the highest level of risk-adjusted capitalization, prudent loss reserves, and solid liquidity measures. Its operating performance has been consistently supported by underwriting gains and investment returns, with profitability metrics improving over the last five years. Additionally, Fidelis’ global presence and strong management team contribute to its market acceptance and growth.

Enterprise risk management is reinforced by robust governance frameworks and comprehensive oversight mechanisms. Fidelis has established a solid framework with defined functions and key performance indicators to monitor and validate Fidelis MGU.

Source Link

Newsletter Updates

Enter your email address below and subscribe to our newsletter