Fidelis claims 77% rise in GWP as specialty lines outpace reinsurance

The  Fidelis re/insurance group laid claim to a 77% annual increase in gross written premium in 2021, with specialty lines outpacing the reinsurance business, the company announced in an investor presentation today (June 8).

GWP in specialty doubled year-on-year to $1.15 billion to increase its specialty book as a percentage of total premium by 5 percentage points to 40%.

Growth was driven by hefty gains in direct and facultative, up 140% or $317 million, and by marine, up 135% or $144 million. Direct and facultative is now nearly 20% of the group’s total business. Even the slowest growing specialty line, Energy, recorded a nearly 20% gain in GWP.

Reinsurance operations enjoyed a 64% rise year-on-year in gross written premiums to reach $1.09 billion, largely matching the gain for the core sub-segment of property reinsurance.

Bespoke insurance rose 73% year-on-year led by a tripling of premium for credit and political risk, but remains roughly flat at just over 21% of the premium take.

The group took only a fractional net investment return for the year after unrealised losses on the trading portion of the book.

Exposures to potential Russian losses were called manageable. Asset exposures were “minimal”, it said.

“ Fidelis has potential exposure to losses associated with the conflict in Ukraine and the Black Sea through certain lines in the Bespoke and Specialty segments,” and is investigating “a number of complexities and implications” but “does not believe the impact of the Ukraine Conflict will adversely affect the Company’s ability to operate as a going concern.”

Fidelis operates via units registered on Bermuda, in the UK and the EU units plus seven MGAs chiefly for bespoke underwriting owned via unit Pine Walk. During 2021, the group built up its stake in MGA Radius Specialty while selling off its interest in Omega National Title Agency Ventures.

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