Fidelis incurred net adverse development to Aviation business in Q4

Fidelis Insurance (FIHL) Holdings Limited announced an update to loss reserves in advance of reporting its fourth quarter and full year 2024 earnings. During the fourth quarter, the Company incurred net adverse prior year development attributable to its Aviation and Aerospace line of business of $287.2 million. This relates to business underwritten in the 2021 and 2022 underwriting years and impacted by the ongoing Russia-Ukraine aviation litigation. In respect of the aviation litigation, the Company has been judiciously settling claims to derisk its overall exposure. In addition, the Company has strengthened reserves, in large part to make allowance for ongoing settlement discussions and also to reflect recent developments and new information received. To date, the Company has successfully settled or is in various stages of settlement discussions in respect of approximately two-thirds of the total exposure related to lessor policy claims currently in litigation. Of the remaining lessor policy claims in litigation, a significant portion of these claims relate to the English trial that commenced in October 2024, in respect of which the Company continues to hold reserves based on a probabilistic model of potential court outcomes, incorporating recent developments and updated information received. The English trial concluded February 14, 2025, and a court judgment will be rendered in the coming months. The prior year development has impacted the Company’s fourth quarter and full-year performance. For the year ended December 31, 2024, the Company anticipates reporting net income in the range of $100 to $120 million and operating net income in the range of $120 to $140 million.