Fidelis Insurance Holdings Limited reported fourth‑quarter 2025 results that turned a $122.2 million loss into a $117.8 million profit, driven by disciplined underwriting and a rebound in investment income. The company posted a combined ratio of 80.6% and an annualized operating return on average equity (ROAE) of 18.3%, a sharp improvement from 128.0% and a negative ROAE in the same quarter a year earlier.
Total revenue for the quarter was $600.9 million, falling 15% below the consensus estimate of $706.8 million. The miss reflects a 50% decline in aviation and aerospace gross written premium year‑over‑year, compounded by legacy litigation related to the Russia‑Ukraine conflict. Despite the revenue shortfall, adjusted earnings per share of $1.09 beat the $1.08 estimate by $0.01, a 0.9% lift attributable to cost containment and a favorable mix shift toward higher‑margin direct property lines.
Gross premiums written for the year were $4.717 billion, up 7.1% from $4.396 billion a year earlier. In Q4, the insurance segment generated $978.2 million in gross premiums written, while the reinsurance segment added $31.8 million. Net premiums earned in the quarter were $552.9 million, a figure that fell short of the $621.3 million forecast but still represented a recovery from the $552.9 million earned in the same period a year earlier.
The improved combined ratio reflects fewer catastrophic losses, favorable reserve development, and better loss ratios across the portfolio. The 18.3% ROAE indicates that the company’s capital allocation strategy is generating strong returns, with net investment income of $44.0 million supporting the bottom line.
Dan Burrows, Group Chief Executive Officer, said, "Our excellent fourth quarter performance, highlighted by an 80.6% combined ratio and an annualized Operating ROAE of 18.3%, once again demonstrates the strength of our platform and our ability to deliver on our targets as we execute our capital allocation strategy." He added, "In 2025, we further expanded our network of underwriting partners and continued to capitalize on attractive growth opportunities, achieving record gross premiums written of $4.7 billion, up 7.1% over the prior year."
The company also announced a rebranding to Pelagos Insurance Capital, expected to launch in May 2026. Burrows explained, "Our new name, Pelagos Insurance Capital, expected to launch in May 2026, captures our brand identity and future direction. It reflects our role as strategic capital allocators, highlights our unique market position, and reinforces our commitment to building lasting partnerships and meaningful connections with an expanded network of underwriting partners. Pelagos comes from the root of the word 'archipelago,' a community of islands, each unique yet connected..."
Market reaction to the earnings was muted: the stock fell 3.13% in pre‑market trading and closed at $20.11, slightly below its 52‑week high of $20.5. Analysts maintained a consensus 'Hold' rating, citing the revenue miss as the primary concern despite the earnings beat and margin improvement.
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