Half Year 2023 Highlights:

•Gross premiums written of $2.2 billion; growth of 27.0% from the 2022 first half

•Combined ratio of 80.6%; improvement of 8.4 points from the 2022 first half

•Annualized operating return on average common equity of 18.2% for 2023 first half

•IPO completed on the NYSE on July 3, 2023, raising $89.4 million in net proceeds through the issuance of 7,142,857 common shares at $14.00 per common share.

Second Quarter 2023 Highlights:

•Gross premiums written of $957.2 million; growth of 25.3% from Q2 2022

•Combined ratio of 82.0%; improvement of 8.5 points from Q2 2022

•Annualized operating return on average common equity of 17.6% for Q2 2023

•Net income of $83.9 million, or $0.76 per diluted common share

Pembroke, Bermuda, August 22, 2023 - Fidelis Insurance Holdings Limited (“Fidelis” or “FIHL” or "the Group") (NYSE: FIHL) announced today financial results for the second quarter ended June 30, 2023.

“It is an extremely exciting time for Fidelis Insurance Group and I’m delighted to present to you our first earnings release as a public company. Our second quarter results are a testament to the strength of our business model and the continued execution of our strategy and our ability to generate value for our shareholders. Our second quarter gross premiums written and combined ratio demonstrate our ability to capitalize on opportunities driven by favorable market conditions whilst remaining disciplined in our underwriting approach. Our half year results have delivered an 80.6% combined ratio which represents annualized Operating ROAE of 18.2%. Against a backdrop of high industry losses, our focus is on profitable growth with reduced volatility, resulting in attractive ROEs over the market cycle,” said Dan Burrows, Group Chief Executive Officer.

Richard Brindle Chairman and CEO of the Fidelis MGU added, “The timing of the separation of our companies has been excellent, as it coincides with a broad based hardening of both insurance and reinsurance markets. For me and my team, the ability to focus all our attention on underwriting opportunities, developing new products and widening our distribution is really energising. We know that Fidelis Insurance Group are doing a great job managing the capital and the investors, enabling us to grow the business and optimise our underwriting. The alignment between Fidelis MGU and Fidelis Insurance Group is working as designed, and we congratulate Dan and the team on their successful IPO.”

•Net income available to common shareholders for the second quarter of 2023 was $83.9 million, or $0.76 per diluted common share, compared to net income available to common shareholders of $8.4 million, or $0.04 per diluted common share, for the second quarter of 2022.

•Underwriting income for the second quarter of 2023 was $77.5 million and a combined ratio of 82.0%, compared to $32.0 million and a combined ratio of 90.5% for the second quarter of 2022, the improvement was driven by continued premium growth in Specialty, reducing our exposure in the Reinsurance property catastrophe line of business and lower catastrophe and large losses.

•Net favorable prior year loss reserve development of $2.4 million compared to $10.9 million in the prior year period.

•Net investment income of $27.3 million compared to $7.4 million in the prior year period.

•Operating ROAE increased to 4.4%, or 17.6% annualized, in the quarter from 1.0%, or 4.0% annualized, a year ago, driven by significant increases in both underwriting income and investment income.

•Book value per diluted common share was $17.86 at June 30, 2023, an increase of 3.9%, compared to March 31, 2023, driven by net income.

•Net income available to common shareholders for the six months ended June 30, 2023 was $1,816.5 million, or $16.40 per diluted common share, which includes a net gain on distribution of Fidelis MGU of $1,639.1 million. Excluding the net gain on distribution of Fidelis MGU, our net income for the six months ended June 30, 2023 was $177.4 million. This compares to net income available to common shareholders of $25.4 million, or $0.13 per diluted common share, for the six months ended June 30, 2022.

•Underwriting income for the six months ended June 30, 2023 was $158.1 million and a combined ratio of 80.6%, compared to $72.2 million and a combined ratio of 89.0% for the six months ended June 30, 2022, with the improvement driven by continued premium earnings growth and profitability in our Specialty segment, and lower catastrophe and large losses.

•Net favorable prior year loss reserve development of $4.5 million compared to $15.5 million in the prior year period.

•Net investment income of $47.7 million compared to $12.5 million in the prior year period.

•Operating ROAE increased to 9.1%,or 18.2% annualized, in the six months ended June 30, 2023, from 2.4% or 4.8% annualized, in the six months ended June 30, 2022, driven by significant increases in both underwriting income and investment income.

•Book value per diluted common share was $17.86 at June 30, 2023, an increase of 10.0% from the adjusted book value per diluted common share at the time of the Separation Transaction, which was completed on January 3, 2023, driven by net income and net unrealized gains reported in other comprehensive income.

The following table details key financial indicators in evaluating our performance for the three and six months ended June 30, 2023 and 2022:

(1) Operating ROAE is a non-GAAP financial measure. See definition and reconciliation in “Non-GAAP Financial Measures.”

The catastrophe and large losses in the three and six months ended June 30, 2023 related to our Aviation and Aerospace line of business which included losses related to the Sudan conflict, and our Property D&F line of business where we experienced losses from severe convective storms in the U.S. This compared to prior year period catastrophe and large losses related to the ongoing invasion of Ukraine by Russia (the “Ukraine Conflict”) and the Property D&F line of business.

For the three and six months ended June 30, 2023, our Fidelis MGU commissions were $52.6 million and $76.8 million, respectively, and are comprised of ceding and profit commissions as part of the Framework Agreement effective from January 1, 2023. Fidelis MGU manages origination, underwriting, underwriting administration, outwards reinsurance and claims handling under delegated authority agreements with the Group.

The increase in our net investment income in the three and six months ended June 30, 2023 was due to increases in interest rates during 2022 and 2023, where the short duration nature of our portfolio means that we are reinvesting at higher rates. The increase in our net investment income also resulted from higher yields earned on cash balances and the increase in total cash and investments.

Fidelis will host a teleconference to discuss its financial results on August 23, 2023 at 8:00 a.m Eastern time. The call may be accessed by dialing 1-888-886-7786 within the United States or 1-206-962-3782 international, passcode 75406823, or through a live webcast available via the Investor Relations section of the Company’s website at https://investors.fidelisinsurance.com/. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes and will be archived on the site for one year.

Fidelis Insurance Holdings Limited (NYSE: FIHL) is a global (re)insurance group, headquartered in Bermuda with offices in Ireland and the United Kingdom. Our business focuses on three pillars: Specialty, Bespoke, and Reinsurance. We manage volatility through our balanced and diversified portfolio. Our strong capital position provides us with the flexibility to engage in attractive underwriting opportunities.

This Press Release includes, and the related conference call will include, certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including operating net income, operating return on average common equity, and therefore are non-U.S. GAAP financial measures. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.

RPI is a measure that Fidelis has used to assess an approximate index of rate increases on a particular set of contracts, using the base of 100% for the rates for the relevant prior year. Although management considers RPI to be an appropriate statistical measure, it is not a financial measure that directly relates to the Group’s consolidated financial results. Management’s calculation of RPI involves a degree of judgment in relation to comparability of contracts and the relative impacts of changes in price, exposure, retention levels, as well as any other changing terms and conditions on the RPI calculation. Consideration is given to potential renewals of a comparable nature so it does not reflect every contract in the Fidelis portfolio. The performance of a portfolio of contracts expressed within the RPI is dependent upon many factors besides the trends in premium rates.

This press release contains, and our related conference call may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and subject to the safe harbor created thereby.

Forward-looking statements generally can be identified by the use of forward-looking terminology such as “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “estimates,” “expects,” “assumes,” “continues,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control that could cause the Company’s actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties are described in the Company’s IPO prospectus dated June 28, 2023 filed with the Securities and Exchange Commission (“SEC”) on June 30, 2023, which investors should review together with our periodic reports filed with the SEC from time to time. Our forward-looking statements are also subject to emerging risks and uncertainties such as: the impact of the Government of Bermuda’s consultation on its potential introduction of corporate income tax and related tax reforms; and exposure to recent insurance and reinsurance industry loss events and developments including wildfires in Hawaii and the ongoing conflict in Ukraine.

Although the Company believes that the expectations reflected in forward-looking statements have a reasonable basis when made, it can give no assurance that these expectations will prove to be achieved. The Company cautions you that the forward-looking information presented in this press release and call is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information.

IR@fidelisinsurance.com

fidelis@teneo.com

Operating net income: is a non-GAAP financial measure of our performance which does not consider the impact of certain non-recurring and other items that may not properly reflect the ordinary activities of our business, its performance or its future outlook. This measure is calculated as net income available to holders of Common Shares excluding, net gain on distribution of Fidelis MGU, net investment gains/(losses), net foreign exchange gains/(losses), and corporate and other expenses which include warrant costs, reorganization expenses, any non-recurring income and expenses, and the tax impact on these items.

Return on average common equity (“ROAE”): represents net income divided by average common shareholders’ equity.

Operating return on average common equity (“Operating ROAE”): is a non-GAAP financial measure that represents a meaningful comparison between periods of our financial performance expressed as a percentage and is calculated as operating net income divided by adjusted average common shareholders’ equity.

For the Three and Six Months Ended June 30, 2023 and 2022

Fidelis Insurance Holdings Limited (“Fidelis” and together with its subsidiaries, the “Group”) is a holding company which was incorporated under the laws of Bermuda on August 22, 2014. The Group provides Bespoke, Specialty and Property insurance and reinsurance. Fidelis’ principal operating subsidiaries are:

•Fidelis Insurance Bermuda Limited (“FIBL”), is a Class 4 Bermuda domiciled company which writes most of the Group’s Reinsurance business, as well as writing Specialty and Bespoke lines. FIBL is regulated by the Bermuda Monetary Authority.

•Fidelis Underwriting Limited (“FUL”), is a UK domiciled company which principally writes Specialty and Bespoke insurance, as well as Reinsurance. FUL is regulated by the Prudential Regulation Authority ("PRA").

•Fidelis Insurance Ireland DAC (“FIID”), is a Republic of Ireland domiciled company that writes Specialty and Bespoke insurance and reinsurance within the European Economic Area. FIID is regulated by the Central Bank of Ireland.

•FIHL (UK) Services Limited (“FIHL (UK) Services”), is a UK service company that also has a branch in Ireland.

On January 3, 2023, the Group completed a series of transactions pursuant to which (i) it distributed its investment in Fidelis Marketing Limited (“FML”) and Pine Walk Capital Limited (“Pine Walk”) to shareholders to form a new managing general underwriter business (“Fidelis MGU”) and (ii) Fidelis MGU was acquired by a consortium of investors (together known as the “Separation Transactions”). FML was previously the service company for the UK and Ireland operations of the Group and is now the service company for Fidelis MGU. Pine Walk held the Group’s investments in eight managing general agents (“MGAs”).

The financial statements of Pine Walk, the eight MGAs and FML have been deconsolidated from January 3, 2023.

Through various long-term contractual agreements, effective from January 1, 2023 Fidelis MGU manages origination, underwriting, underwriting administration and claims handling under delegated authority agreements with the Group. Other services provided by Fidelis MGU to the Group include sourcing and administering outwards reinsurance, and support with business planning, capital management, insurance contract accounting and information technology.

Further information can be found at Note 3, Separation Transactions and Note 14, Related Party Transactions.

The unaudited consolidated financial statements include the results of Fidelis Insurance Holdings Limited and its subsidiaries and have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022, in the Group’s most recently filed IPO prospectus dated June 28, 2023 filed with the Securities and Exchange Commission on June 30, 2023.

All intercompany balances and transactions have been eliminated on consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of results on an interim basis. The results of any interim period are not necessarily indicative of the results for a full year or any future periods. The consolidated financial statements have been prepared on a going concern basis.

The financial information is reported in United States dollars (“U.S. dollars” or “$”), expressed in millions, except for share and per share amounts.

In the three and six months ended June 30, 2023 commissions on ceded business of $24.4 million and $40.6 million (2022:$14.6 million and $26.8 million), respectively, have been presented within policy acquisition expenses. Commissions on ceded business are paid by a reinsurer to a cedant on proportional contracts to offset the underwriting and administrative expenses of the underlying business. In the current period, we have netted the cost of such commissions against policy acquisition expenses and reclassified the prior year commissions on ceded business from general and administrative expenses to conform to the current period presentation.

To facilitate comparison of information across periods, certain other reclassifications have been made to prior period amounts to conform to the current period’s presentation.

Our accounting policy with respect to share-based compensation is replaced with the following policy:

The Group measures share-based payment arrangements at fair value determined on the grant date. The related compensation expense is recognized in net income over the requisite service period with a corresponding increase in shareholders’ equity.

For restricted share units that include a performance measure in addition to service conditions, their compensation expense is based on an assessment of the probable outcome of the performance measure.

The Group recognizes forfeitures as they occur.

There were no other notable changes to the Group’s significant accounting policies subsequent to December 31, 2022.

On January 3, 2023, the Group completed a transaction pursuant to which (i) Pine Walk and its investments in the MGAs, together with FML, were distributed to shareholders to form a new managing general underwriting business, Fidelis MGU and (ii) Fidelis MGU was acquired by a consortium of investors. Following the consummation of the Separation Transactions, Fidelis MGU acquired 9.9% of the common shares in the Group.

The Separation Transactions resulted in certain shareholders receiving cash in lieu of their interest in Fidelis MGU. As a result, the distribution of Fidelis MGU was recorded at its fair value of $1,775.0 million. The fair value was determined in accordance with the requirements of Financial Accounting Standards Board Accounting Standards Codification 820 – Fair Value Measurements (“ASC 820”). We have obtained the services of a third-party independent valuation expert in arriving at that determination of fair value. ASC 820 explains the concept of fair value for financial reporting. Under ASC 820, fair value is a market-based measurement, not an entity specific measurement. The objective of ASC 820 is to estimate the price at which an orderly transaction to sell the asset would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant).

When a price for an identical asset is not observable, a reporting entity measures fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.

For purposes of our valuation of Fidelis MGU, we have used an income approach using a discounted cash flow methodology, and a market approach using comparable listed trading and precedent transaction multiples. These approaches generated a range of values for Fidelis MGU of $1.7 billion to $1.9 billion. Our determined fair value for Fidelis MGU of $1,775.0 million was based on the price of the most recent transactions in Fidelis MGU shares, and close to the mid-point of the valuation range. On January 3, 2023, following the distribution of Fidelis MGU to shareholders of the Group, certain shareholders sold their shares, and certain third parties purchased shares, in Fidelis MGU at a price per share determined using a fair value of $1,775.0 million.

Immediately prior to the consummation of the Separation Transactions, the Group accelerated the vesting of all unvested Restricted Stock Units (“RSUs”). This resulted in the acceleration of compensation expense of $21.0 million and an employer payroll tax expense of $17.3 million in the three months ended March 31, 2023. The RSUs and warrants (refer to Note 17, Share Compensation for additional detail) were exercised on the date of the Separation Transactions, resulting in the issuance of 13,553,681 common shares. The RSUs were net settled, resulting in a $50.6 million reduction of additional paid-in capital for the employees’ tax obligations with respect to these awards. The exercise of the warrants triggered the payment of cumulative dividends of $34.1 million.

The distribution of Fidelis MGU to shareholders of the Group resulted in the deconsolidation of net assets of $67.9 million, and the cancellation of 97,327,049 common shares in the Group. Following the Separation Transactions there were 110,771,897 common shares issued and outstanding. The distribution resulted in the elimination of our non-controlling interests, all of which related to the subsidiaries of Pine Walk.

In connection with the successful consummation of the Separation Transactions, the Group incurred professional fees of $28.6 million during the six months ended June 30, 2023.

The net gain on distribution of Fidelis MGU of $1,639.1 million has been calculated as the fair value of Fidelis MGU of $1,775.0 million, less the net assets of Fidelis MGU of $67.9 million and less the direct costs of the Separation Transactions of $68.0 million. Direct costs primarily related to professional fees of $28.6 million, acceleration of compensation expense of $21.0 million and an employer payroll tax expense of $17.3 million. Within operating activities on the Consolidated Statements of Cash Flows, the revaluation of Fidelis MGU of $1,707.1 million, being the fair value of Fidelis MGU of $1,775.0 million less the net assets of $67.9 million, is shown as a non-cash adjustment to reconcile net income to net cash provided by operating activities.

On January 3, 2023, the financial statements of Pine Walk, the eight MGAs and FML have been deconsolidated and the non-controlling interests were disposed upon consummation of the Separation Transactions.

The chief operating decision maker (“CODM”) reviews the Group's ongoing underwriting operations across three operating segments: Bespoke, Specialty, and Reinsurance. In determining how to allocate resources and assess the performance of the Group's underwriting results, management considers many factors including the nature of the insurance product offered, the risks that are covered and the nature of the client.

The Specialty segment is comprised of a specialized portfolio of niche risks that includes Aviation and Aerospace, Energy, Marine, Property Direct & Facultative (“D&F”) business and other specialty risks.

The Bespoke segment is highly specialized in nature providing customized risk solutions for clients which includes Credit & Political Risk and other specific risk transfer opportunities.

The Reinsurance segment is comprised of a property catastrophe book, which includes Property Reinsurance, Retrocession and Whole Account reinsurance.

Assets are not allocated to segments, nor are general and administrative expenses allocated between segments as employees, including underwriters, may work across different segments. Fidelis MGU commissions (see Note 14, Related Party Transactions) are not allocated to segments as they are not included in the measure of segment profit reviewed by the CODM, nor is a segment analysis of such expenses provided in other information reviewed by the CODM.

The following tables summarize the Group's segment disclosures:

			Three Months Ended June 30, 2023
			Specialty						Bespoke						Reinsurance						Other									Total
Gross premiums written			$	657.3					$	54.7					$	245.2					$	—								$	957.2
Net premiums written			461.8						30.1						123.2						—									615.1
Net premiums earned			307.2						90.4						31.5						—									429.1
Losses and loss adjustment expenses			(137.4)						(16.2)						(4.7)						—									(158.3)
Policy acquisition expenses			(77.5)						(36.9)						(7.7)						(52.6)									(174.7)
General and administrative expenses			—						—						—						(18.6)									(18.6)
Underwriting income			92.3						37.3						19.1						(71.2)									77.5
Net investment gains																														0.1
Net investment income																														27.3
Other loss																														(3.3)
Corporate and other expenses																														(1.5)
Net foreign exchange losses																														(0.1)
Financing costs																														(9.0)
Income before income taxes																														91.0
Income tax expense																														(7.1)
Net income																														83.9
Net income attributable to non-controlling interests																														—
Net income available to common shareholders																														$	83.9
Losses and loss adjustment expenses incurred - current year			(132.5)						(23.7)						(4.5)															$	(160.7)
Losses and loss adjustment expenses incurred - prior accident years			(4.9)						7.5						(0.2)															2.4
Losses and loss adjustment expenses incurred - total			$	(137.4)					$	(16.2)					$	(4.7)														$	(158.3)
Underwriting Ratios(1)
Loss ratio - current year			43.1		%				26.2		%				14.3		%													37.5		%
Loss ratio - prior accident years			1.6		%				(8.3		%)				0.6		%													(0.6		%)
Loss ratio - total			44.7		%				17.9		%				14.9		%													36.9		%
Policy acquisition expense ratio			25.2		%				40.8		%				24.4		%													28.5		%
Underwriting ratio			69.9		%				58.7		%				39.3		%													65.4		%
Fidelis MGU commissions ratio																														12.3		%
General & administrative expense ratio																														4.3		%
Combined ratio																														82.0		%

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