Fidelis sees outlook revision amid adverse aviation development & wildfire losses
- September 20, 2025
- Posted by: Kane Wells
- Category: Insurance
S&P Global Ratings has revised its outlook on Fidelis to stable from positive, citing significant Q4 2024 aviation-related losses from the Russia-Ukraine conflict and $160-$190 million in losses from the January 2025 California wildfires.
As a reminder, Fidelis reported total underwriting income of $8.3 million for 2024, with a combined ratio of 99.7%. In comparison, the firm achieved underwriting income of $327.3 million and a combined ratio of 82.1% in 2023.
S&P explained that Fidelis’ outlook revision reflects the weaker underwriting performance in 2024 relative to its peers and the expectation that the firm’s underwriting results in 2025 could remain under pressure due to the losses from the California wildfires.
“As a result, it is less likely that Fidelis will meet our performance expectations outlined in our previous positive outlook,” S&P said.
The rating agency noted that Fidelis has reduced its exposure to natural catastrophes by adjusting its catastrophe risk exposure and increasing capital in direct and facultative insurance within specialty lines.
However, S&P believes that Fidelis’ earnings and capital remain susceptible to volatility, as demonstrated by net adverse prior year development in its Aviation and Aerospace line, in addition to exposure in other areas like marine, political violence, terrorism, and cyberattacks.
Despite these challenges, S&P’s stable outlook reflects Fidelis’s ability to maintain capitalization at the 99.99% confidence level through 2026.
The rating agency also expects Fidelis to continue enhancing its enterprise risk management framework and strengthening its relationship with the Fidelis partnership.
“We expect Fidelis to continue exercising its strong underwriting capabilities, which have historically produced industry-leading results,” S&P concluded.
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