OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of Fidelis Insurance Bermuda Limited (Fidelis) (Bermuda), Fidelis Underwriting Limited (United Kingdom) and Fidelis Insurance Ireland Designated Activity Company (Ireland). AM Best also has affirmed the Long-Term ICR of “bbb” (Good) of Fidelis Insurance Holdings Limited (Bermuda), the ultimate holding company. Concurrently, AM Best has affirmed the Long-Term Issue Credit Rating of “bb+” (Fair) of Fidelis Insurance Holdings Limited’s $304 million ($58 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 assesses 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 consistent underwriting results and solid investment returns. Fidelis’ disciplined underwriting, experienced management team and its acceptance and recognition by the market have allowed for a profitable underwriting performance over the past four years.
Performance also benefits from earnings generated through Fidelis’ diversified business platform, which includes 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 seventh 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 underwrites. The group has a strong senior management team with an excellent reputation and a proven track record. The reinsurance program was reinforced with the increase of limits and the addition of a whole account quota share.
Partially offsetting these strengths is Fidelis’ exposure to high severity losses associated with global catastrophe events.
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