Fidelis Insurance initiated with a Buy at UBS

UBS analyst Brian Meredith initiated coverage of Fidelis Insurance with a Buy rating and $18 price target. Fidelis Insurance’s positioning in the “hard” P&C reinsurance pricing environment with a focus on E&S and low volatility underwriting should help drive mid-teens BVPS growth and mid-teens ROEs in both 2023 and 2024, the analyst tells investors in a research note. Shares will continue to trade at a discount to book value given the company’s reliance on a managing general underwriter for all of its business, UBS argues.