Monster hurricanes Helene and Milton contributed to newly declared losses at Fidelis Insurance for 2024.

In the firm’s latest financial statements, Fidelis reported a fourth-quarter net loss of $122.2 million, for the three-month period ending December 31, 2024.

This is compared with net income of $228.3 million for the same three-month-period ending on December 31 the previous year.

Fidelis also reported catastrophe and large losses of $133.2 million compared with $100.9 million during the same period in 2023.

Group chief executive Dan Burrows said the losses hit property and marine lines of business, along with a single-loss event in its property line.

“This compared to prior-year period catastrophe and large losses primarily related to the Sudan Conflict, losses in connection with the ViaSat-3 satellite deployment failure, losses from severe convective storms in the US, two intellectual property losses, and other loss events in various lines of business including property, energy and marine,” Mr Burrows said.

He added that the adverse prior year development for the three and 12 months ended December 31, 2024, was driven primarily by an increase in aviation and aerospace line of business related to the Ukraine conflict.

“This increase relates in large part to an allowance made for ongoing settlement discussions in relation to the related litigation as well as an increase to reserves in order to reflect recent developments and new information received,” Mr Burrows said. “The adverse prior year development for the twelve months ended December 31, 2024, was partially offset by better than expected loss emergence in our property, other insurance and marine lines of business.”

Underwriting loss for the fourth quarter was $177.6 million and the combined ratio was 128 per cent, compared with underwriting income of $94.4 million and a combined ratio of 81.4 per cent for the fourth quarter.

Operating return on equity was down 4.5 per cent, or 18 per cent annualised, in the quarter compared with 6.3 per cent, or 25.2 per cent annualised, in the prior year period.

However, Mr Burrows said in 2024 his firm executed its underwriting strategy with 23 per cent gross premium growth across its portfolio.

“We also achieved strong investment income and returned $152 million in capital to common shareholders through dividends and opportunistic share repurchases.”

He said: “As we look ahead, we are well positioned to drive profitable growth as we capitalise on our market access, the strength of our relationships and strategic capital management, supported by the strength of our balance sheet.

“By leveraging our differentiated expertise and taking a proactive approach to risk management, we will continue to effectively navigate market challenges, pursue accretive growth opportunities and deliver sustainable value for our shareholders.”

Net income for the year ending December 31, 2024, was $113.3 million, down from $2.1 billion the previous year.

Underwriting income for the year was $8.3 million, while the combined ratio was 99.7 per cent, compared with underwriting income of $327.3 million and a combined ratio of 82.1 per cent for the year ended December 31, 2023.

There was an operating return on equity of 5.6 per cent for the year compared with 22.2 per cent in the prior year.

The operating return on average equity was 5.6 per cent for 2024 compared with 18.8 per cent in the prior year.

Book value per diluted common share for the year, was $21.79 at December 31, 2024 – dilutive shares at December 31, 2024 of 640,267 — compared with $20.69 at December 31, 2023.