By David Bull

March 3 - (The Insurer) - AM Best has affirmed Fidelis’s A financial strength rating and “a” long-term issuer credit ratings, noting that the company’s $287.2 million reserve charge in relation to Russia-Ukraine aviation claims does not “materially impact” its balance sheet assessment.

In a statement, the rating agency said Fidelis maintains the strongest level of risk-adjusted capitalisation, overall strong liquidity, a conservative investment portfolio and adequate financial flexibility.

“AM Best notes that the company’s fundamentals around capital management and disciplined underwriting remain strong, and that these events do not materially impact Fidelis’ balance sheet assessment,” it continued.

The agency also noted the company's preliminary estimate for losses related to the California wildfires of $160 million to $190 million, which will impact its Q1 2025 financials. The range is based on an industry projected loss of $40 billion to $50 billion.

The firm said that Fidelis’s operating performance has been supported by consistent underwriting gains and solid investment returns.

It also pointed to the benefits of earnings generated through Fidelis’s diversified business platform, which includes MGAs and sponsoring a special purpose insurer.

“Scale and access to highly selective underwriting capabilities through The Fidelis Partnership, the managing general underwriter that sources most of the group’s business, gives Fidelis the ability to be cautiously opportunistic,” the statement continued.