FIHL - Earnings call transcript Q2 2024 | Fidelis Insurance Holdings Limited

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Operator

Good morning, ladies and gentlemen, and welcome to the Fidelis Insurance Holdings Second Quarter 2024 Earnings Conference Call.

As a reminder, this call is being recorded for replay purposes. [Operator Instructions].

With that, I will now turn the call over to Miranda Hunter, Head of Investor Relations. Ms. ahead. go please Hunter,

Miranda Hunter

Strickle, welcome Conference Fidelis are Call. Allan and our and Officer. Quarter Dan Group's XXXX CEO; Jonny CFO; our Earnings With Decleir, Chief to morning, Actuarial Insurance the Second Burrows, our Good me today

and to I'd and number section during management's question-and-answer in everyone that include current These based are upon forward-looking a statements. uncertainties. assessments Before the like XX-F statements risks annual uncertainties including assumptions call, filed subject and we to are of SEC. most remind the our begin, are report and the may Form made risks on These with statements described recent

that Consequently, expressed or that believe differ a when can we those these reasonable actual Although materially prove from basis assurances we expectations be to results expectations statements will reflected may achieved. in forward-looking made, implied. have no the give

that performance, with time. affect For also review more that factors information, may reports filed including other on investors time to should and SEC from risks are by future the periodic the us

and will non-GAAP release financial to SEC is fidelisinsurance.com. certain available furnished on yesterday, reconciliation website renewal which The each of our can measures GAAP index, the found in press definition earnings report make is be current on also pricing Form for our at performance. financial U.S. reference non-GAAP our of RPI, our to measure Management and to X-K which our contains

to the Dan. over turn I'll call that, With

Daniel Burrows

detail. the Thank thank over more before handing and it go Jonny in Allan I you, for comments quarter Miranda. few morning, a will Good everyone, and through make us. you to joining to

our company. second quarter of listing a as public marks The X-year the anniversary

capital have underwriting solid which we into and excess our shareholders. to quarter report returned a successfully We to are capital attractive pleased opportunities during deployed

on and lines attractive Our for short-tail position us value focused remain delivering driving a shareholders. leader enables growth on to specialty creation focused market as our

growth year. on the remain remains hard able And top in conditions. driving continue we with targets we conditions preferential growth strong last The XXXX market full year we leader, as our environment are see a premium a line attractive and track we and terms across to with to rates, opportunities market versatilized. saw underwriting, persist broadly to Mature the excellent achieve In rating achieve portfolio. line

We and focused committed is we spoken model the as underwriting. to before, see advantage broader conditions, disciplined respond market opportunities on are attractive of quickly reward capital our management. to And to about deploying underwriting capital where risk business we the we in remain changing ability and one our have most

by increased persisted quarter our all our Positive XXX% gross XX.X% in of pricing with across across double-digit We written premiums an overall segments. RPI second of with in the quarter. portfolio X the growth

some to in areas, In Following Specialty is RPIs increases, market of levels the rate remain seen at segment, acceleration rate years beginning to of slow continue at several but with returns growth opportunities attractive for recent best our history. see targeted we have XXX%. conditions we compound in

with managers compared continue Aerospace of remain by Property generally and high strong gross remained general predominantly Aviation, of we for Property in RPIs XX.X%, continue In We and business, Looking be core RPIs us, to credit Aviation, marine, a and in to of enhancement. picked Direct underwriting year, and terms opportunities were XXX%. as deals the did at a our and meet where up for In growth XXX%. were Direct the segment recorded quarter capital number and credit driven Rate driver business. our of the our utilize in prior premiums premiums credit line Facultative relief our growth and of we asset able deals rates of Aviation conditions rating insurance Aviation will underwriting looking structured up opportunities. of into and discipline. quarter certain in Aerospace significant with strong where retention steady banks market while & our written lines as a bespoke pipeline a and hurdles. Facultative of evaluate not clients criteria business. convert new came with by to business from driven The remains and market key to the structured maintaining second down existing to

Turning to segment. reinsurance our

our remain X attractive this maintained past able few terms On renewals again Leveraging the an stance rating remains were the of RPI portfolio view following rate our by several cautious tier higher by market Japanese increases driven positioning, increases in from impacted on achieve our corrections Florida, in on opportunities the relationships. back and XXXX back of Within environment, Pricing based and rate clients. market and a as business property XXXX. property levels conditions we of continue lead our book our on of book, to expanded Growth healthy. take years, attractive the focusing In April of the typhoon targeted once we our growth American and was over pricing driven nationwide of to XXX%. years we international positive with years North approach across new the was primarily accounts. our

overall higher Intellectual losses losses ratio prior for by and intellectual primarily entire our XX.X%. the is This decisions preserve underwriting underwriting within the highlights we segment points our catastrophe segment. underwriting bespoke quarters, This our of quarter contributed on our response in act X.X we ceased above the to for quickly underwriting intellectual to property portfolio, combined our Specialty insurance and Across level product. this in partnership approach as of property a driven our the was Fidelis the large to business, alignment quarter. In with performance have integrity. ratio combined to property the

through believe is shares a capital the use and our Active business capital back are we dividends excess shareholders current remains capital. the repurchases. returning also strategy. of price reinvesting to We cornerstone committed compelling a opportunistically management at into And to our of share while excess buying

We has share million authorized million. Directors on as our And will have new Board remarks. repurchase in share $XX $XXX of existing completed program repurchase Allan of a expand this announced our night, program. his last

and to expect I accident. near questions. will something want of a complete more up recent answer this the our treatment Jonny continue to undergoing to remarks with with I result treatment I'm and personal. and look a medical currently catching your now you prepared discuss as in Finally, forward future. then Allan soon, I

Allan Decleir

for Dan. you wish when we a recovery. I I Thanks, speak say everyone speedy

severe operating intellectual generated property second losses and or and Against per $X.XX income operating equity storms of the business, revenue. Dan we in $XX average XX.X% diluted solid payment the XX%. on net on gross quarter, we an growth As return delivered mentioned, of of a share heightened annualized backdrop million common convective

We continue book $XX.XX. per our to diluted grow share, value at stands common now which

pursue initial our stewards continue management, capital opportunities to value-accretive comments around investor Dan's on of capital. we focus on Expanding as

Our first attractive reinvest and into growth to is priority in deploy initiatives. the business capital

to and However, we both will and it through have extent privately open transactions. market capital, dividends shareholders return to purchases negotiated opportunistic we excess the buybacks, including

earnings per cumulatively shareholders. in value both our on our common program share shares $XX in at per average share This share, our and book of share price to book that and of and current value XX% December million announced completed approximately basis approximately million $XX.XX. is repurchased highly diluted was accretive per buyback X have an We that's

a quarter, our results. touch before underwriting closer it investment In who provide will our over I results on on taking at performance Jonny, look for details will turning our to the more

period. for the $XX million Our income million net $XX.X with compared second prior to year increased the investment of XXXX quarter in

rotation continued the reinvesting the of into portion quarter selling fixed of by and proceeds higher-yielding longer-dated first portfolio and the started We the a in portfolio securities. income the

securities $XXX.X purchase in in loss a proceeds it an million. of years book average with yield of secured rates to of realized We a X.X%, an reinvested the sold higher we yield approximately X.X%, with for million number average and come. of of current interest the $X.X locking Specifically, resulting

remains of purchasing as Duration the with book of X.X a XX, maturity June high increased at X.X%. to years fixed average income AA- longer securities a result has yield very securities. of At rating

detail. Now I'll to to it in quarterly cover over underwriting more results turn Jonny our

Jonathan Strickle

good Thank you, Allan, and morning, everyone.

compared excellent $X.X our the quarter expectations This in saw growth we line to for by billion. with growth last year, be XXXX growth growing with gross an approximate XX.X% the Looking line had we at consistent premiums same is our broadly written, top XX% year. to to last

in $XXX.X meet criteria certain or continue specialty XX.X% primarily and as in partially deals underwriting Starting business ] with delivered of offset opportunities insurance and million lines market. new not increased we Property was $XX.X increase hurdles. the on Property business and our rating convert [ to growth our we by our where aviation, This of business, saw rates driven which XX.X% of or by million, D&F did an

Credit million $XX.X Political Risk by versus grew new year, in structured segment prior credit our driven and Bespoke The Line. business

highly portfolio, Given a the nature variable. premiums tailored of be schedule regular can deal and did flow predictable not this follow

of year, Our $XXX.X $XXX.X increases Reinsurance as versus an quarter earned results by premiums XXXX. reported million, prior Net segment excellent driven business. line XX.X% versus as also increase grown million rate second top well by the new of was

segment, the prior our weighted straight-line towards a in year. within on second premiums half property and Reinsurance noted not basis of our earned quarters, the catastrophe are As are

year-to-date combined the and XX.X%. was Our our for ratio combined XX.X% second quarter, ratio is

to mid- our high XXs reminder, across the a As is cycle. target

of XX.X% second the which is XXXX of within for particularly the year large million. ratio quarter for benign that large for by attritional of loss $XXX.X quarter, was as period. Our the a activity accounted development. losses of was XX.X% saw We $X.X activity was loss was million second $XX.X composed Catastrophe ratio the Attritional attritional $XXX.X an or events, of quarter. losses, and quarter, well XX.X% million, of catastrophe $XXX.X impacted and expectations. quarter Noting prior year the losses. ratio that Of and prior generating million terms in quarter XX.X% million loss attritional second a as loss a Specialty Bespoke of in loss Reinsurance losses to series in compared in the catastrophe our

We claim and in prior experience settlements million versus year for million by within primarily had the development the pillar. favorable our losses within million and consolidated driven of PTS property, by Catastrophe the was surrounding to Oklahoma which Specialty relating and Within large driven consolidated points million, $XX.X Of million, $XX.X ratio states. Reinsurance benign attritional we was bespoke and Specialty which specialty Bespoke quarter, of X by and combined intellectual catastrophic reinsurance additional impacted $XX.X $XX.X of $XX.X losses D&F, for and ratio favorable the the period. $X.X quarter by points. the primarily was net in largest claims prior our year the in Property adversely the $XX.X loss recognized in million XX tornadoes Bespoke, were was

Taking overview level a results there important items a are the overall underwriting highlight. of quarter, few high to our for

First, include short-tail we have a not book casualty. business does that of

it's quarterly and into This to Second, of us our track performance on our more the think it the while make manage short-tail quickly portfolio we insights to a informed basis, performance underwriting our and informative important equally over book. the loss decisions. duration of provides underlying we ability approach supports

Finally, given ratio most the is the the structure of valuable book, we find combined our metric.

attritional experience. individual up We from or catastrophe and year year out including components, current don't overly focus prior large losses on development the broken from broken

perfectly quarter this our evaluate book illustrates This manner. why in we

movements prior there were expectations. in catastrophe our to individual large no uptick changes favorable development were losses, including long-term and loss and overall in there an loss components higher While year

head to points the from expenses accrued quarter, of line XX of into general points prior profit was quarter, owning partnership to ratio employment quarter, for acquisition the the third increase primarily prior parties the count effect. points increased The combined commissions policy the year expenses, ratio the which points from year combined year the relating our administrative an Fidelis were compared to by XX.X X.X in period. combined The and ratio the full the commissions since the reflecting impact expenses X.X in of points ratio were business. of to went of were the period. growth commissions the X.X period for losses agreement of to increased with variable of the support finally, these in related the driven for Total commissions. combined points prior Turning And XX.X the

now back additional I remarks. will for to turn it Allan

Allan Decleir

Jonny. you, Thank

and outlook. about like the reinsurance I'd talk Now market insurance to

anticipate approach, are We disciplined not market from a especially market. hard any and rest market demonstrate of capacity to We participants verticalized observed meaningful the for market. have we seeing year, leaders for the new continue within mature collectively this the the conditions

be to opportunities market expect rates specialty of levels book remains themselves. attractive continue are to we continue at present driven Facultative. and Now looking our high This to growth dynamics the by new Property underwriting business across within retention and remain dislocated, our segments, each Direct

established builds. opportunities marine take driven In to the dynamics This to their volume the our as Marine, acceptances In cross-portfolio Aerospace, continues will leverage for us continue new accommodate truly enables position Large of construction to capacity significant to Marine and competitive growth. War, with discipline underwriting is for our a continued need Dan our we our to underwriters overall a approach. to presented. leader, by continue improve capacity the already Aviation apply mentioned present pricing. attractive to affecting opportunities hull

But highly allow Deal and prior policies. lead our one-off substantially of to the continues Bespoke. flow ahead currently business tracking Turning and of vary the robust given half of this direct can the custom nature us to to in book looking these is nature second The of deals. our remains the year, to pipeline the with tailored on year. all quarter-to-quarter

the in seen of X a Finally, through at trends market XXXX. attractive Reinsurance, with July key in remained dates continuation renewal out

of our taking differentiated lead the our conditions, of view continue risk. overall optimizing to at Utilizing It underwriting managing terms allows achieve our take of opportunities We on supports time, reinsurance risk. and reinsurance positions. line focusing our us in approach while portfolio same with outwards to pricing and advantage

manage optimized July D&F and we origination what pursue natural new we forecasted opportunities During to further be season, our Overall, for outwards is portfolios. to we win purchasing. exposures reinsurance renewals, additional catastrophe active And an targeted portfolio, across in has coverage through our growth property to further purchased widely our continue reinsurance our channels.

example, example on quota our an variable we offering through Fidelis Lloyd's access second Abu the ratings vehicle share ventures partnership in office access an X, capital. right a platform Dhabi new flexibility to And in a July Eastern This forward. to with It providing As and the quarter, right opened to directly the XXXX. Fidelis their business strong of Middle global in business. partnership risk participation is provides the and great online entered going Syndicate licensing enhanced platform, Lloyd's the allocate identifying to

deploy attractive a capital new evaluate of are effectively, opportunities. we As to opportunities we number underwriting considering our

bar As we partnership. partnership for returns given have high, the any is historical new the said by before, underwriting opportunity Fidelis generated extremely the

continue solid delivered investment to the our across portfolio returns. results In underwriting closing, improve and we

half optimize we have achieved the the to We first by our opportunities. to the risk-adjusted of During underwriting we of allocating quarter and this capital see returns. through strategically the year, our continued areas where portfolio best

and into decisively discipline We response while meet to segment, don't quickly where rates business trends, in in line have our market and selectively Reinsurance within our moved opportunities in accretive leading D&F maintaining thresholds. return Property

the the year the for in in for and ability outlook confident range deliver growth prior year. with line premium our remain and full ROAE business year operating in We our to to XX% XX%

mid- million the to to to cycle. we And program, our in the our deliver With $XXX to ratios well share XXs of short-tail shareholders. committed are high repurchase new capital positioned diversified with risks, returning excess portfolio remain we combined our specialty throughout

forward your I'll that, operator, turn back to With and look it the to questions. we

Operator

Instructions]. [Operator

question will first Zaremski BMO. be Our Mike at from

Michael Zaremski

a wishing a good Also recovery, recovery. Dan successful

in appreciating kind is through. your of load. the you more of given and expected you'd like year? XQ of the the maybe or I us help think just if kind that purchased second ROE consensus we're heard the you profitability reaffirm ROE being retro looking in question, half lowest the kind the is year-to-date the of guess, anything just the seasonality to of goals Do the First ROE I at what Or year. of, catastrophe guess I kind quarter of the you year, shape the for feel under maybe

Allan Decleir

in And our pleased this performance it's in Mike. our there's have as at, -- time, the hinted where half here. point our And half ROAE. patterns, monitor of XX%. back and It's the the segment think important a business in as as more seasonality Yes, ROAE you've as Allan with it our it's some second the we we on is of out, quarterly to know, been especially year, informative Over underwriting and in the And the portfolio. great question. reinsurance short-term year-to-date earnings you while duration you manage we of our obviously we over year. our equally second basis, ended definitely

I think quarters year. prior on we this the and optimize to that with the quarter that last and results you further note, continue our see investment enhance versus income, and portfolio,

investment So of targets. our we our given in year as well confident XX%, date our combined ratio income, targets just ROAE current and long-term are to our as over our year-to-date

Michael Zaremski

like Got something feels that it. be component the It might Okay. is underappreciated. Yes, investment income okay.

Okay.

So follow-up, about back get only losses. since the I'm in one of ask IP a the I'll ask for lot queue. will people my and feeling follow-up

That the maybe higher, I'm ceding we what there? -- higher What's going X-plus more on ratio, modeled MGU it's So just than and curious, out year-to-date. materially points you is any commission what's color months of running add maybe XXX ago. mid-XXs on had of can or basis kind kind

Allan Decleir

ceding as Allan again, commission several partnership net premium that it's and as pay know, The written it's on commission well Yes, a components, we the as a Mike. commission. profit Fidelis you earned is ceding

commission than that exactly the working and their quarters, given, are working guidance as as intended with see quarter, the of still results the As commissions is partnership it's Overall, these worse day-to-day operations we're reflective slightly as with underwriting intended. think we've being as commission this exactly the in you can that. we overall prior comfortable prop we that -- well

Operator

will . Next at [ BITM Ward be from (sic) Michael question ] Citi

Michael Ward

you on that the expanding the the remaining IP. stock to do could question, I have? I'm just curious a I if quantify exposure you at maybe Citi. guys had was

Jonathan Strickle

some IP then that the with off by one. overall, I'll question. start giving specific here. Jonny to that portfolio take I'll context come I'll It's Sure. and

So our last small years. IP which number over we've policies, of portfolio consisted the a of few written

the in mentioned and any risks no in prepared XXXX. it, longer we remarks, write we As accepted haven't we

give we the number the than had more that we It To worth that in we great background some that occurred is not difficulty realizing happened of on after defaults had policies have anticipated. we the resulted defaults on a and had it, noting collateral those priced all claim. written for, of we've in what a value

without either off risk. off of us any Some resolved to other a run now been takes has transaction some restructure or us that loss the books alternatively or through

of a with monitor have obviously and comfortable basis. handful quarter, policies an live do we we Now to on we policies we ongoing outstanding, going this forward. but those We're monitor reserved those to continue where

Michael Ward

of collateral Okay. to, sort how you of is terms the are of where I the speak far portfolio through guess, Are in the percentage you've able to you loans guaranteed I that guess. establishing you the -- reserves, --

Jonathan Strickle

But There's the give portfolio to outstanding, probably the last around the I context, of X/X so, week say. we've resolved X some would or still of in exposures.

here, was on So There on to able transaction been one off came through risk we've was and one. that underlying still come risk. a

handful So a like just remaining. said, it's I

Michael Ward

a down? That's we've question. Curious in And given slow and you D&F pricing growth runway maybe non-IP environment favorable kind helpful. if of Okay. seen for just growth property to the could speak the specifically,

Allan Decleir

with We pleased meaningful we to believe as and terms We've of with RPI And scale my market market. and of been with compound had on an write we're across duration preferential and important And the thing and quickly, One mature verticalized the that can business in it's we that as ourselves and no feature more this versus Yes, our Allan. our no we in take don't needs model of leverage comfortable get conditions. prepared as Things has pricing in call. I their commissions capacity. different we year casualty. We're very positive especially that. is pleased we've the we're our it's we previously, QX, portfolio. of market remarks, know, a generally that growth back from change that differentiate but be the why mentioned The growth with you in their or growth that And we're in very new achieved. in that's we others. wind on years of any the get target increases. market XX% of a disciplined, supply think reason many season, market industry, will mentioned been hardening see we're achieving, XX% for persist. have the I'll still during there's not and

Operator

will question at from Next be Evercore. David Motemaden

David Motemaden

recovery I'd also a to like to wish speedy Dan.

the on My IP first question, just following up portfolio.

So off? happen how in this I still that again that's given run of how loss to we that of off? on of depending we type quarter, volatility that the guess is could sort it forward loss just and about think that take And about long thinking that Or the will line had defaults something as the the X/X going can book defaults? this outstanding, runs

Jonathan Strickle

These policies. It's short-tail Jonny here. are reasonably

would to So by happen if run we that were they to off expect naturally, XXXX. around

As to previous I come my are for to on over happened the what time. response, company that depending risk options off us underlying mentioned in transactions there

the of policies And The loss mentioned in period. from experienced this of exposure a terms closely with have reserved that quarter. loss outstanding In it came over X response, handful X experienced, in we the we for. incidents separate the policies I previous as versus the outstanding

David Motemaden

it. Got

math. that do can We helpful. That's Okay.

on market, maybe Okay. this are like mainly pricing rate D&F. to wondering was And think said sounded Jonny, you I D&F in was too areas. increases It if aviation. -- But on you XXX% some you that quarter I'm D&F just think more also little I think I can a then in bit elaborate and you RPI the just in slow Allan, starting mentioned and

last well, If would you be that through us as could help think what was that quarter helpful.

Allan Decleir

We it's very to risk. -- cat We dollars we put positive prefer and a and cat in to where just to produce to portfolio continue wonderful and at in the exposure leaning some underwriting to opportunities of see the grow into lot growth, our your RPI's area, areas growth, can the that drive the property see to continues a over expect we definitely D&F property results. Yes, to David. continue that business profitable that. continue business. other We're D&F definitely XX%

And And the we area. a place specialty best business and see others to insurer of as that's so think growth that in prefer line over many we great be in. that

Operator

will at Jefferies. Andrew be question from Andersen Next

Andrew Andersen

is IP Sorry, on on correct one more losses. we on concerned Am as occurrence have a thinking of so written wouldn't we business to basis, the policy? claims-made an in I this with that limits would stacking be

Jonathan Strickle

In any of handful that don't terms of remote independent. the -- -- stacking other but see at this on all exposures in only basis, really current were terms coming from they're it's from limit the I each to a policy. and how There's of claim only reasonably they are activity arrive

Andrew Andersen

Bespoke, that any maybe in Was very growth that strong And Okay. forward from growth. could the impact XQ quarter. quarter's adversely a next within of

Allan Decleir

It's Allan.

Bespoke. quarter. few profitable profitable returns produce pleased to couple deals will business strong overall we on last And business. pipeline we portfolio Bespoke predict, pleased as a very within hit strong yes, forward. produce we is We're and to calls. And is that on expect expect over many going pipeline. hard of a results pipeline returns, of that forward. we're produced to to this we've with very that, continue there, results And going Our said the quarterly It our continue very It's the has very again, with years, and wonderful our

Operator

[Operator next at from Pablo Instructions]. question Singzon JPMorgan be And will Chase.

Pablo Singzon

well. Dan, wish speedy recovery wanted I to a as you

active was sounds has just I underwriting not those if hurricane reasonably given in your year-to-date, year approach of has on But how substantially, curious right? approach environment It sort market of D&F. one in changed on the this you season of like margin? is any pricing changed the Property your factors portfolio So broad the you the on attractive. booked appetite just have the margin, and losses your anything expectations first, an So of changed into that sort

Jonathan Strickle

the for It's to short X how to view changed is but components. the down break Thanks question. Jonny no, market, your it hasn't The answer we here.

and but of treaty So hurricane generally, a coming about on we really use cat agree the the a adjustments. out which for our XX% that's book, risk risk, to the the the own is D&F of view view both model, view count an we uplift reflects partnership of of of aggregate, to the Fidelis that. cat start lens This We our active views our loss if season, globe. the base set view it the of model. the with across it's to exposures a It's for business. change, climate And set load risk, in to through more specific but you our uplift which base of think all over cat with

drives charge as So protections shape we outwards prices deploy on the how it we drives risk, it it and we inwards, where drives portfolio the we the purchase.

and planned put got, confidence over period that portfolio pricing an So as number level this we've there and we've that that it's through us if years, portfolio gives and expected for a exposure the management in we of of even for, something the is uptick in our well. activity, something it's

this it's of at loss. come time step in about of In only have prepared line was through a go the QX, particular, we our said Specialty. on think very D&F, I on say, quarter, up the If X back quarter, loss large in as I been in us. business to for I losses D&F, components longer profitable Property around X most there back which over there's and uptick look you of you make a If terms the see horizon would if remarks,

that and or We with how time a don't we much difference between and terms it's in very and so. where horizon, material is whether book of performed. a think X longer X happy there's X look over So X, timing, and we're

Pablo Singzon

maybe Allan. Got for it. second And then question

can earnings more fast buybacks. guess, importantly, have of million capital is more I you the you of authorization? prospective on excess $XXX is Or generation? How by the that And amount on Just execute the reflective today? that

Allan Decleir

a we look have very intense Allan. Pablo. at every day. Yes. It's capital Yes,

foremost, capital mentioned is we're And want the as of growth. back our you terms so as we look considers area our D&F, participate Property and many aspects past, to currently. focused do into expectations mentioned one in. And have absolutely forward in in we business first We we how the -- to we've investing and on much to

and look pretty have, regulatory will still are surplus aspects, we and consider share rating should position next model, agencies with we we are the again, the much shares, you is capital very year. we it's share think at the repurchases. And prices. these of do surplus we in we very current good with when I capital. others, that given and which And So have And looked our a no-brainer with thing, valuations our our capital that especially right includes situation in comfortable at where the at plans we and partnership books a our

Operator

question will at Shields from be Meyer Next KBW.

Meyer Shields

my quick recovery. Allan, for I questions X Hope want best Dan. for to I you. think quick to extend wishes a

you a be mean going this morning of times First, [indiscernible] new couple you're that Does participating to not does in write that casualty. Fidelis mentioned that casualty product? not

Allan Decleir

Dan. participating And in we proposal going Thanks way Meyer, right we them, we to at in risk. think ] wishes [ the dialogue not together. with -- they and for casualty. to constant as are agreement current Fidelis the for At have The partnership. it capital opportunity at want time, welfare -- the good in with match market, we looked we We're the every about look we to the this we interested under this were casualty always knew right in

]. sale [ not Pine And are York on participating so that New we

Meyer Shields

Okay.

to was a on is seen Second in several lowest that we've written Bespoke. sorry, the years. to products last a quarter? the change the It Or broader like -- over in the net the function this reinsurance written that looks question that ratio premium protection? segment's gross individual third second of the Is were the

Jonathan Strickle

Jonny. it's take I'll that Meyer, one.

It's products. You're the right. individual

across look gives Bespoke places terms pillar, line the where there and just to able some in can products are a you put terms conditions If bigger out execute. the and type you pricing, more the being gross of leverage of you

line, the reinsurance products, net. quota to behind whereas So therefore, we'd out on size other just us. we of risk use put sitting those, of more run the much share that need we can and don't some

on type dependent we the vary of quarter-to-quarter really have does products in So completely is written it that and quarter.

Operator

at be Motemaden will from question Next Evercore. David

David Motemaden

taking event D&F looking the and we you my thing, a sort think property you and about more reinsurance of was reinsurance you if that purchasing single retention, could mentioned both on your protection wondering PMLs, with I your if can follow-up. could exposures elaborate us Thanks re, for in on outwards for just how that. help

Jonathan Strickle

It's Jonny here.

disclose I'll PMLs So don't publicly the with moment. PML We our start query. the off at

the we of is between metric really key this think compare reasons a peers. One difficult it's to behind

we to numbers. of the Obviously, of and model base end towards risk and includes the consider significant So the we base as We and some that it the think those many loadings. internally PMLs generates view have that produce peers top use the I over really mentioned Fidelis model. will loadings their that we're earlier, used just here, will own

mostly few come So if we But years. That our were than terms exposure given exposure to release in growth rate conditions. I is grown the of in comparison them, is say overall difficult. premiums driven, from last then market quite cat the we've rather the would what

We across years together, our purchases, to also, looking that recent where not see overall the evidenced cat like opportunistic at those the we smooth the we've portfolio. Bringing risk this over growth. something through our the constantly portfolio, premium outwards at both despite we bits in and sure both of market increased we as quarter our make that exposures

David Motemaden

And thoughts quarter? taken That's it. on Got any hurricanes -- so could far have the third or X quantification place helpful. you any provide that in on then the

Jonathan Strickle

there's as the mentioned, other the of over quarter. again. a here market events X and you Jonny been in It's Yes, number hurricanes

information Just all background partnership review as Fidelis to our and those they look loss exposures conjunction a types process, we our of of through monitor the where with necessary, on in current emerge, exposures, either we events to bit give modeling. through assessment Based on the other that to exposure we of our and have of a since quarter material events or close. coming of our any those believe don't

Operator

is question Next from BMO. Zaremski Mike at

Michael Zaremski

on any context And what continues be growth. you've on don't more segment don't color insights know color it's quick Reinsurance or on Florida mostly on whether the there's I there just if follow-up. I A healthy think to growth. given

Allan Decleir

Allan. it's Mike,

it in As and we quarter some in with great the reinsurance have -- including were this Reinsurance D&F itself, think of see the risk some and in and put exposure the deploy that capital, opportunities, And series with you to as there. of there the we accounts to segment some lean portfolio. was And they space. were risks ourselves opportunities certainly opportunities reinsurance comfortable on our to we look a outwards our Jonny very nimble when know, We more again, higher-tier and saw great program, best clients, space bit and our in nationwide on our opportunities tweaking we in put the mentioned, little a and approach. our we priced appropriately, with the we're of that pride for I

Operator

Meyer be at will KBW. Next Shields

Meyer Shields

on Do follow-up the you Just Brazil? plane to have crash in David's exposure any a question.

Jonathan Strickle

at at Jonny we to here. we of kind the No, all. it's policy. that to one. we any exposure this Meyer, take exposure have believe I'll any liability time, don't don't And that underlying have

Operator

Next question Chase. will be from Pablo Singzon JPMorgan at

Pablo Singzon

just the NII Thanks at portfolio getting Allan, on characterize a sense for with point? get uplift how Just done you the you regards mostly the for Or sort prospective one to of Is assets. that of longer-dated want process? this quick taking would in from that follow-up. here? the a to

Allan Decleir

That our Yes. the including I'm approaches Pablo. daily areas, seen innings investments. a like bit, it's manage all around you've we word, across capital no our portfolio, markets, which but sure bouncing underwriting

we a advantage accordingly. months our and while repositioned to our where side match can. are take in to -- have it And optimize continue portfolio last X assets we we short-duration We portfolio the liability in we We and in mentioned the some reinvestment X.X%. as environment I assets. and those, maturities some really reinvested sold yield yielding and up sold off X.X% them at what and risk into, is of some we rating make lower roll our of

market, I think capital. various of dependent QX course, but but more allocate where you that and other in really our -- considering consider we're process. areas liquidity our we can QX, on us and the portfolio still than of the it's that doing ongoing it's an

Operator

closing question call I'd today's turn to concludes That for back like answer the session. Decleir and remarks. Allan to

Allan Decleir

Thank everyone, your We for company. appreciate interest the joining you, today. us in

around and great If you call, to a day. take have be thank questions, you, your follow-up we'll have any and

Operator

ask And gentlemen, and do today. lines. Ladies sir. again, at does indeed thank your this conclude your for you, this that you time, Once disconnect conference we Thank please you for attending. call

Fidelis Insurance Holdings Limited (FIHL) 15 Aug 242024 Q2 Earnings call transcript