Fidelis Insurance initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Fidelis Insurance with a Neutral rating and $18.50 price target, reflecting 8% upside. Fidelis is a global specialty reinsurer focused on property and other short-tail risks, with a track record of underwriting outperformance, the analyst tells investors in a research note. The firm is positive on the company’s underwriting strategy, but believes its current operating structure places pressure on expense that will need to be made up for in the loss ratio in order to achieve historical combined ratios.