In a report released yesterday, Michael Zaremski from BMO Capital maintained a Hold rating on Fidelis Insurance Holdings Ltd. (FIHL – Research Report), with a price target of $22.00.
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Michael Zaremski has given his Hold rating due to a combination of factors impacting Fidelis Insurance Holdings Ltd. The company announced a significant reserve addition for aviation and war claims, totaling approximately $287 million, which adversely affects the projected return on equity for 2024. This unexpected financial setback is compounded by anticipated California wildfire losses for the first quarter, estimated between $160 million and $190 million.
Despite these challenges, Fidelis’s management team is experienced, and the company has received support for its growth strategies from a reputable partner. However, the valuation, though seemingly attractive, is complicated by a higher expense ratio and an unconventional capital structure. These elements contribute to investor hesitancy, leading to a cautious Hold recommendation from Zaremski.
Zaremski covers the Financial sector, focusing on stocks such as Progressive, Arthur J Gallagher & Co, and Hanover Insurance. According to TipRanks, Zaremski has an average return of 11.9% and a 71.92% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $18.00 price target.