FIHL

Why Fidelis Insurance Stock Blasted 13% Higher on Friday

The broader finance sector has had its ups and downs recently, to put the situation mildly. One of the brighter spots was the quarterly earnings report dropped late Thursday by Fidelis Insurance Group (NYSE: FIHL). Thanks to solid beats on both the top and bottom lines, investors flocked to the shares the following day, sending their price 13% higher. And that was on a good day for the wider stock market, with the S&P 500 index rising by nearly 1%.

Fourth-quarter revenue and premiums rose at double-digit rates

Fidelis closed out 2023 with a fourth quarter that saw it earn just under $554 million in revenue, quite the improvement from the less than $429 million in the same period of 2022. That was on the back of a 32% year-over-year increase in gross premiums written, to nearly $784 million.

The insurance company's net operating income, a non-GAAP profitability measure, didn't see quite the same lift but rose nevertheless. That line item improved by 5% over the one-year stretch to more than $135 million, or $1.15 per share.

The two leading headline results far exceeded analyst expectations. On average, pundits tracking Fidelis stock estimated the company's revenue would total slightly over $526 million, and its per-share net operating income would land at only $0.72.

Solid performance from a new arrival to the market

In Fidelis' earnings release, the company quoted CEO Dan Burrows as saying that "The fourth quarter was a strong finish to a milestone year for Fidelis in which we became a public company and strengthened our position as a global specialty insurer. Utilizing our nimble yet disciplined approach, we capitalized on attractive opportunities, achieved strong rate increases, and delivered excellent financial performance."

Should you invest $1,000 in Fidelis Insurance right now?

Before you buy stock in Fidelis Insurance, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fidelis Insurance wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of February 26, 2024

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.