AM Best


AM Best Upgrades Credit Ratings of Fidelis Insurance Holdings Limited and Its Subsidiaries


CONTACTS:

Mariza Costa
Associate Director
+1 908 439 2200, ext. 5154
mariza.costa@ambest.com

Steve M. Chirico, CPA
Director
+1 908 439 2200, ext. 5087
steven.chirico@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JUNE 03, 2020 07:41 AM (EDT)
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-” of Fidelis Insurance Bermuda Limited (Fidelis) (Bermuda), Fidelis Underwriting Limited (United Kingdom) and Fidelis Insurance Ireland Designated Activity Company (Ireland). AM Best also has upgraded the Long-Term ICR to “bbb” from “bbb-” of Fidelis Insurance Holdings Limited (Bermuda), the ultimate holding company. Concurrently, AM Best has upgraded the Long-Term Issue Credit Rating to “bb+” from “bb” on Fidelis Insurance Holdings Limited’s $304 million ($242 million currently outstanding) 9% preference shares due 2050. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Fidelis’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Fidelis maintains the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), a conservative loss reserve position, overall strong liquidity, a conservative investment portfolio and demonstrated adequate financial flexibility.

The group’s operating performance has been supported by very strong underwriting results and solid investment returns. Fidelis’ disciplined underwriting, experienced management team and its acceptance and recognition by the market have allowed for solid underwriting performance over the past three years. Performance also benefits from earnings generated through Fidelis’ diversified business platform, including its establishment of managing general agencies and a sponsorship of a special-purpose insurer. Fidelis’ investment returns have also benefited from its focus on holding the majority of its assets in fixed-income securities and cash and cash equivalents, with a small allocation to alternative investments.

Fidelis is a provider of specialty insurance, reinsurance and retrocession products with a global geographic reach. While Fidelis is a young company in its sixth year of operation, the company has received strong acceptance by the market, as evidenced by its significant premium growth and ability to lead some of the programs it writes. The group has a strong senior management team with an excellent reputation and a proven track record.

Partially offsetting these strengths is Fidelis’ exposure to high severity losses associated with global catastrophe events.

Fidelis indicated that during first-quarter 2020 it reserved for net claims and claim expenses associated with the COVID-19 pandemic, which primarily represents IBNR related to exposures such as event-based covers. Currently, AM Best considers these losses manageable based on an analysis performed by Fidelis management and Fidelis’ limited profile in classes that are expected to be most impacted.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.