AM Best amends outlooks to stable for Fidelis and its subsidiaries

Rating agency AM Best has revised Fidelis Insurance Holdings Limited and its subsidiaries’ outlooks to stable from negative.

AM Best explained that the negative outlook it placed on the ratings in 2023 was based on the execution risk related to the creation of Fidelis MGU, a new managing underwriting entity.

The rating agency noted that it has assessed the performance of the Fidelis management team and the strength of the business relationship between Fidelis and Fidelis MGU over the last year, which has been demonstrated through its financial stability.

AM Best continued, “Fidelis’ operating performance has been supported by consistent underwriting gains and investment returns.

“Profitability metrics have improved over the last five years with a combined ratio below its peers driven by disciplined underwriting, which has benefited from a diversified business platform.

“Scale and access to highly selective underwriting capabilities through Fidelis MGU gives Fidelis the ability to be cautiously opportunistic.”

Spelt out, the rating agency has revised the outlooks to stable from negative and 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 Underwriting Limited and Fidelis Insurance Ireland Designated Activity Company.

In addition, AM Best has revised the outlook to stable from negative and affirmed the Long-Term ICR of “bbb” (Good) of Fidelis Insurance Holdings Limited, the ultimate holding company.

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