Fidelis Insurance Group has released its financial results for the third quarter of 2025, reporting gross premiums written (GPW) of US$797.5 million, a 7.5% increase from the same period in 2024.
The company attributed the growth in its insurance segment to new business in asset-backed finance and portfolio credit lines, while reinsurance growth was linked to new opportunities following California wildfire-related losses.
The insurer posted a combined ratio of 79.0% for the quarter, marking its strongest quarterly performance since becoming a publicly traded company. Catastrophe and large losses totaled US$57.4 million, down from US$91.6 million in the prior-year quarter, with most losses stemming from two events in the property and other insurance lines.
The company’s capital management strategy has remained a focal point throughout the year. In the first half of 2025, Fidelis returned US$132.8 million to shareholders, including US$110.8 million in share repurchases and US$22 million in dividends, reflecting a continued emphasis on shareholder returns even as market conditions fluctuated.
Dan Burrows (pictured above), group chief executive officer, said the company delivered “outstanding results in the third quarter, with our 79.0% combined ratio representing our best quarterly performance as a publicly traded company and an excellent annualized Operating ROAE of 21.4%.”
He added that gross premiums written grew by 8%, supporting the company’s full-year target range of 6% to 10%. Burrows noted that Fidelis is maintaining discipline in rate, terms, and conditions amid signs of rate pressure in some areas.
“Looking ahead, we are focused on providing solutions for our clients in an evolving risk landscape. Our strong capital position enables us to successfully balance growth with returning excess capital to shareholders, and we continue to see share repurchases as a highly accretive use of capital,” Burrows said.
Net investment income for the quarter was US$45.9 million, compared to US$52.1 million a year earlier. Net realized and unrealized investment gains reached US$6.2 million, including US$4.7 million in net unrealized gains on other investments. The company noted these gains were partly due to its allocation to alternative investments, such as a hedge fund portfolio initiated in late 2024.
Fidelis reported an annualized operating return on average equity (ROAE) of 21.4%, up from 16.4% in the prior-year period. Operating net income was US$126.8 million surpassing the US$1.19 consensus estimate from equity analysts as reported by FACTSET.
The company returned US$47.3 million in total capital to common shareholders in the third quarter, including US$31.9 million in share repurchases and US$15.4 million in dividends. Fidelis repurchased 1,835,063 common shares during the quarter at an average price of US$17.40 per share.
The third quarter results also mark a recovery from earlier in the year, when Fidelis reported a net loss of US$42.5 million in the first quarter, or a loss of US$0.38 per share. This loss was primarily driven by catastrophe losses tied to California wildfires, which contributed US$166.8 million in net losses after expected recoveries, reinstatement premiums, and tax.
