Fidelis Insurance initiated with a Hold at Jefferies

Jefferies analyst Yaron Kinar initiated coverage of Fidelis Insurance with a Hold rating and $15 price target. The firm expects the company to deliver on its “ambitious target” of improving its ROE profile by 2.5 times to the mid-teens, but a unique structure requiring a sub-40% loss ratio through cycle in order to achieve targets is reflected in the stock’s valuation discount, the analyst tells investors. For 2023-2025, the firm models average 16% NPW growth and a low-to-mid 80s combined ratio, including a roughly 40% loss ratio.