Noting the proven track record of its management team and strong top-line growth in a five year time frame, S&P Global Ratings has assigned A- financial strength ratings to the operating units of Fidelis Insurance Holding Ltd.
S&P also assigned a BBB rating for the holding company, and a stable outlook to all the ratings.
The core operating subsidiaries are Fidelis Insurance Bermuda Ltd., Fidelis Underwriting Ltd., and Fidelis Insurance Ireland DAC (collectively, Fidelis), according to S&P.
Describing Fidelis as a relatively new entrant in the global insurance and reinsurance markets, S&P said the units have built a credible position in chosen business lines in a short time—since inception in August 2014.
Led by Richard Brindle, who previously led Lancashire Holdings Ltd. until his departure in early 2014, S&P noted that the management team has a solid and proven track record aligned with previous experience of working together.
Fidelis operates as a hybrid insurer and reinsurer, writing business under four main pillars: bespoke, reinsurance (primarily property-catastrophe), specialty, and partnership fee income.
According to S&P, Fidelis wrote $691 million of gross premiums written in 2018, predominately in reinsurance and bespoke (reinsurance at 47.4%, bespoke accounting for 46.2%, and specialty, 6.4%).
Prospectively, the bespoke and partnership fee income segments will be the primary area of growth for the company, S&P said, explaining that the bespoke segment focuses on unique products with higher barriers to entry and characterized by low attritional losses.
The company is also concentrated on expanding its partnership fee income segment, including its managing general agent incubator, to greater than 25% of its underwriting income by 2021.
Source: S&P Global Ratings