Q3 2023 Earnings Summary
Reported on Jan 28, 2025 (After Market Close)
Pre-Earnings Price$13.01Last close (Nov 21, 2023)
Post-Earnings Price$12.95Open (Nov 22, 2023)
Price Change
$-0.06(-0.46%)
- Strong performance in the Specialty segment, which is the largest pillar in FIHL's portfolio, with year-to-date growth up 46%, and 26% ahead of plan, driven by compound increases over the last 4-5 years and no signs of market softening, indicating continued growth opportunities.
- FIHL is well-positioned to capitalize on upcoming opportunities in Aviation and Marine within the Specialty segment, expecting an active season for the aviation portfolio in Q4, leading to potential uptick in premiums and profitability.
- FIHL maintains disciplined underwriting in the Bespoke segment, focusing on bottom-line profitability over top-line growth, with high hurdle rates and a deliberate approach to risk, ensuring prudent risk management and potential for strong future returns.
- Decline in Gross Written Premiums in the Bespoke Segment: The company reported a decline in gross written premiums year-over-year, primarily driven by the bespoke segment. Management attributed this to a deliberate, cautious approach due to lingering economic concerns, which may impact future growth opportunities.
- Higher Loss Ratio in the Bespoke Segment: The bespoke segment experienced a higher than expected loss ratio this quarter, approximately 10 points above consensus expectations, due to large losses in intellectual property accounts. This indicates potential volatility in the segment that could affect profitability.
- Exposure to Geopolitical and Economic Uncertainties: The company acknowledged ongoing monitoring of geopolitical tensions, including the Russia-Ukraine conflict and Middle East tensions, but could not provide definitive answers regarding potential impacts. This uncertainty may pose risks to future earnings and reserving adequacy.