AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of Fidelis Insurance Holdings Limited and Its Subsidiaries

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OLDWICK, N.J., February 03, 2023--(BUSINESS WIRE)--AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" (Excellent) of Fidelis Insurance Bermuda Limited (Fidelis) (Bermuda), Fidelis Underwriting Limited (United Kingdom) and Fidelis Insurance Ireland Designated Activity Company (Ireland). In addition, AM Best has removed from under review with negative implications and affirmed the Long-Term ICR of "bbb" (Good) of Fidelis Insurance Holdings Limited (Bermuda), the ultimate holding company. Concurrently, AM Best has removed from under review with negative implications and affirmed the Long-Term Issue Credit Rating of "bb+" (Fair) of Fidelis Insurance Holdings Limited’s $304 million ($58 million currently outstanding) 9% preference shares, due 2050. The outlook assigned to these Credit Ratings (ratings) is negative.

The ratings reflect Fidelis’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Fidelis announced on July 25, 2022, its intention to create Fidelis MGU, a new managing general underwriter, which would be bifurcated from the existing Fidelis companies. Final regulatory approval for the bifurcation of Fidelis’ business was received in November 2022, and the transaction was completed in January 2023. Fidelis MGU is led by most of the previous senior management of Fidelis. In turn, Fidelis is led by a combination of other Fidelis executives supplemented by a number of experienced senior executives from outside the organization.

As a result of the risks present in implementing the new structure, AM Best is of the opinion that Fidelis’ business profile may be affected by the bifurcation of key management personnel into a different legal entity. The negative outlooks reflect the organizational changes that may impact the group’s business profile assessment if there is disruption in its market acceptance. AM Best will monitor Fidelis’ market presence, as well as subsequent operating performance to assess if there is any material deterioration. Negative rating actions may arise if the group’s business profile is adversely affected by changes in the organizational structure or if its operating performance deteriorates significantly. The ratings also could be impacted negatively by a reduction in the group’s risk-adjusted capital position driven by operating losses or a significant return of capital relative to earnings.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Guilherme Monteiro Simoes, CFA
Senior Financial Analyst
+1 908 439 2200, ext. 5301

Gregory Dickerson
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Christopher Sharkey
Manager, Public Relations
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Al Slavin
Senior Public Relations Specialist
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