Fidelis hits 1-year low on $287 mln reserve for Russia-Ukraine aviation claims

Pelagos Insurance Capital

20/02/2025 15:03

** Shares of specialty insurer Fidelis Insurance  FIHL.N 
fall as much as 12.1%, hitting their lowest since February 2024
    ** FIHL late Wednesday disclosed $287.2 million reserve
charge in its aviation book related to outstanding claims on
aircraft trapped due to Russia-Ukraine conflict
    ** Co says two-thirds of its Russia exposure has been
settled or is in various stages of settlement discussions, with
the remaining mostly related to claims being litigated in
English courts
    ** J.P. Morgan notes the unexpected adverse development,
adding that while the reserve charge may de-risk FIHL's
litigation exposure, the stock could underperform due to the
significant equity decline
    ** Separately, FIHL expects catastrophe losses related to
the January 2025 California wildfires to be in the range of $160
million to $190 million
    ** Co expects to release Q4 results on February 25 after
market close
    ** As of last close, FIHL shares down 9% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))