Fidelis Insurance Group released its Q2 2024 report, which showed a sharp decline in net income compared to the same period last year.

The company reported net income of $53.7 million through June 30, 2024, from April to June this year, compared to $83.9 million in the same period last year. The second-quarter report said that figure equates to $0.46 per diluted common share and net operating income of $63.0 million, or $0.54 per diluted common share. The company also reported a decline in income in the first quarter of this year.

However, gross written premiums increased by 24.7%, to $1.2 billion, compared to the second quarter of 2023. The company also reported a combined ratio of 92.7% for the second quarter of this year.

Meanwhile, the company recorded an annual operating return on opening capital (operating return on equity) of 10.0% and an annual operating return on average operating capital (operating return on equity) of 10.0%.

The report also indicated that the net positive loss reserve for the year prior to the second quarter of 2024 amounted to $68.6 million, compared to $2.4 million in the same period of the previous year.

The report stated that “catastrophe and major losses in the second quarter of 2024 amounted to $181.2 million, compared to $85.2 million in the same period the previous year.”

However, Fidelis Insurance Group reported second-quarter net investment income for the second quarter of 2024 of $46.0 million compared to $27.3 million in the same period a year earlier. Additionally, the company reported that it purchased $677.7 million of fixed income securities at an average yield of 5.2% and made sales of $220.4 million at an average yield of 1.6%.

“For the three months ended June 30, 2024, our total operating income increased – driven primarily by growth from new business and price increases in our Real Estate and D&F Real Estate business lines, partially offset by declines in our Aviation and Aerospace business lines,” Fidelis’ second-quarter report explained.

Fidelis CEO Dan Burrows (pictured) remained positive.

“As we celebrate our first anniversary as a public company, we are proud to have built a strong team focused on delivering value for our business. Our position as a market leader focused on short-term specialty product lines positions us to deliver attractive growth and create value for our shareholders,” he said. “We are well positioned to respond quickly to market conditions and continue to leverage our leading position to take advantage of attractive pricing, terms and conditions. Along with the IPO, active capital management remains a cornerstone of our strategy, and to that end, we are pleased to announce that our Board of Directors has approved a new $200 million share repurchase program. In what remains one of the best markets we have seen in recent history, I am excited about the opportunities we see ahead.”

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