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7. Fidelis Insurance Holdings Ltd. (NYSE:FIHL)

Number of Hedge Fund Holders: 22

Forward P/E ratio as of January 25: 4.49

Market Capitalization: $1.93 billion

Fidelis Insurance Holdings Ltd. (NYSE:FIHL) is a specialty insurer that provides insurance and reinsurance solutions. It operates in 3 segments; Specialty, Reinsurance, and Bespoke. It offers a range of products that include aviation, energy, property, and customized risk solutions.

The Specialty segment, which caters to specific insurance needs that may not be addressed by standard insurance policies, drives the company’s growth. This is demonstrated by the 22% increase in gross premiums written to $72 million in Q3 2024, which was due to strong client retention rates, successful new business generation, and the company’s leadership position in major lines such as Property Direct and Facultative. It translated to a 114% Risk-Adjusted Premium (RAP) for the segment, which highlighted the quality and profitability of the written business.

The company’s disciplined underwriting and strong market positioning are good for the Specialty segment growth. However, the Specialty insurance market is constantly changing, so Fidelis Insurance Holdings Ltd. (NYSE:FIHL) needs to be prepared for things like major disasters and new government rules that could affect the business. On January 10, Keefe, Bruyette & Woods lowered their price target for its stock from $26 to $25 while maintaining an Outperform rating, due to the expectations of slowing premium growth and manageable catastrophe losses.