Fidelis Insurance has expanded its capital management program with a $400 million share repurchase authorization and a new dividend of $0.15 per common share, as the Bermuda-based specialty re/insurer moves to close a persistent gap between its stock price and book value.
The board approved the enlarged buyback ceiling and declared the payout to shareholders of record on March 16, 2026, with payment due March 27.
The new authorization doubles a $200 million repurchase program Fidelis announced in August 2025, which at the time accompanied a dividend increase from $0.10 to $0.12 per common share.
For the full year ended December 31, 2025, the company returned $313.7 million to shareholders — comprising the repurchase of 15,184,976 common shares for $261.4 million and $52.3 million in dividends.
In the fourth quarter alone, Fidelis repurchased 4,075,726 shares through two privately negotiated transactions totaling $75 million with longstanding shareholder CVC Falcon Holdings Limited.
CEO Dan Burrows (pictured above) said the expanded authorization reflects the company's conviction that its shares remain undervalued relative to net book value.
"We are, first and foremost, strategic capital allocators, focused on identifying the most compelling opportunities and prioritizing initiatives that drive shareholder value creation," Burrows said.
The capital return comes after a volatile 2025 underwriting year. Fidelis reported a combined ratio of 115.6% and a net loss of $42.5 million in the first quarter, driven by exposure to the California wildfires, company filings show. The second quarter produced a 103.7% combined ratio amid adverse development from Russia-Ukraine aviation litigation.
The third quarter was the standout, with a 79.0% combined ratio and an annualized operating return on average equity of 21.4% — a result Burrows described at the time as the company's "best quarterly performance as a publicly traded company." Gross premiums written grew 13.8% in the first quarter and 9% through the first half, with management targeting 6–10% full-year growth.
As of mid-2025, Fidelis reported a book value per diluted common share of $22.04, while the stock was trading near $18.93 as of early February — roughly 0.73 times book value, data from Stock Analysis shows.
Specialty insurer Kinsale Capital posted a full-year 2025 combined ratio of 75.9% and an operating return on equity of 26.4%, alongside a new $250 million buyback program and a 47.1% dividend increase.
RenaissanceRe repurchased approximately $1.6 billion of common shares during 2025 and renewed its authorization at $750 million, fueled by a 25.9% return on equity.
Hamilton Insurance, a fellow Bermuda-based carrier, announced a more modest $50 million repurchase authorization — positioning Fidelis's $400 million program as notably aggressive for a company of comparable scale.
Fidelis may execute repurchases through open market purchases, accelerated share repurchases, or privately negotiated transactions, including under a Rule 10b5-1 trading plan. The board retains the authority to suspend or discontinue the program at any time.
