S&P alters Fidelis view to stable

S&P said it revised its outlook for Fidelis Insurance Holdings Ltd. to stable from positive and affirmed all its ratings, including the BBB- rating on its senior unsecured notes.

Fidelis recently announced it will delegate its underwriting authority to the newly created managing general underwriter, Fidelis MGU. The company will split into two separate entities, Fidelis MGU and Fidelis Balance Sheet Cos.

“The stable outlook reflects our view that Fidelis will sustain its redundant capitalization at the AAA confidence level through 2024, and maintain strong risk controls, while implementing robust checks and balances regarding its relationship with Fidelis MGU,” the agency said in a press release.

However, “Because of the restructuring, we are lowering our view of Fidelis' competitive position to satisfactory from strong because it will delegate all its underwriting to Fidelis MGU. Given that Fidelis Balance Sheet Companies will exclusively depend on Fidelis MGU to produce its premiums, we believe this underwriting arrangement will limit Fidelis Balance Sheet Cos.' competitive position in the market,” S&P added.

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