Market Overview

A.M. Best Affirms Credit Ratings of Fidelis Insurance Holdings Limited and Its Subsidiaries


A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"a-" of Fidelis Insurance Bermuda Limited (Fidelis) (Bermuda) and Fidelis
Underwriting Limited
(Fidelis UK) (United Kingdom). A.M. Best also
has affirmed the Long-Term ICR of "bbb-" of Fidelis Insurance
Holdings Limited
(Bermuda), the ultimate holding company.
Concurrently, A.M. Best has affirmed the Long-Term Issue Credit Rating
of "bb" on Fidelis Insurance Holdings Limited's $304 million ($248.7
million currently outstanding) 9% cumulative preference shares, due
2050. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect the Fidelis' balance sheet strength, which A.M. Best
categorizes as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk
management (ERM).

Fidelis' very strong level of risk-adjusted capitalization, as measured
by Best's Capital Adequacy Ratio (BCAR), strong liquidity and financial
flexibility contribute to A.M. Best's balance sheet assessment of very
strong. Fidelis generated underwriting profit in 2016, its first
full year of operation, and continued this positive trend in 2017.
Additionally, the underwriting gains are supplemented by a healthy fee
income generated through Fidelis' various partnerships. The profits are
partially offset by the losses generated by Fidelis' investment
portfolio; however, in mid-2017, the group revised its investment
strategy to hold the majority of its assets in fixed-income securities
and cash and cash equivalents, with a small allocation to alternative
investments. Healthy investment income is projected going forward.
Fidelis' overall operating performance is assessed as adequate.

A.M. Best views Fidelis' business profile as neutral. Fidelis is a
global provider of specialty insurance and reinsurance products through
its two wholly-owned subsidiaries - Fidelis Insurance Bermuda Limited
and Fidelis Underwriting Limited. While Fidelis is still in its start-up
phase and is one of the newest Bermuda players, the group demonstrated
strong acceptance by the market, as evidenced by the stable and
consistent year-over-year growth. The group has a strong senior
management team with an excellent reputation and a proven track record.

Additionally, A.M. Best considers Fidelis' ERM as developed and
appropriate for its overall business risk profile.

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

A.M. Best is the world's oldest and most authoritative insurance
rating and information source. For more information, visit

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