2024 Solvency and Financial Conditions Report (FUL 2024 SFCR)

	CONTENTS
GLOSSARY	2
EXECUTIVE SUMMARY	4
STATEMENT OF DIRECTORS' RESPONSIBILITY	7
INDEPENDENT AUDITOR'S REPORT	8
A.	BUSINESS AND PERFORMANCE	13
	A1. BUSINESS	13
	A2. UNDERWRITING PERFORMANCE	15
	A3. INVESTMENT PERFORMANCE	21
	A4. PERFORMANCE OF OTHER ACTIVITIES	22
	A5. OTHER INFORMATION REGARDING THE BUSINESS	22
B.	SYSTEM OF GOVERNANCE	23
	B1. GENERAL INFORMATION ON THE SYSTEM OF GOVERNANCE	23
	B2. FIT AND PROPER REQUIREMENTS	27
	B3. RISK MANAGEMENT SYSTEM INCLUDING THE OWN RISK AND SOLVENCY ASSESSMENT	28
	B4. INTERNAL CONTROL SYSTEM	31
	B5. INTERNAL AUDIT FUNCTION	32
	B6. ACTUARIAL FUNCTION	33
	B7. OUTSOURCING	34
	B8. ASSESSMENT OF THE ADEQUACY OF THE SYSTEM OF GOVERNANCE	34
	B9. OTHER INFORMATION	35
C.	RISK PROFILE	36
	C1. RISK CATEGORIES	36
	C2. RISK EXPOSURES	47
	C3. RISK SENSITIVITY	48
	C4. ANY OTHER INFORMATION	49
D.	VALUATION FOR SOLVENCY PURPOSES	50
	D1. ASSETS	52
	D2. TECHNICAL PROVISIONS	54
	D3. OTHER LIABILITIES	59
	D4. ALTERNATIVE METHODS FOR VALUATION	59
E.	CAPITAL MANAGEMENT	60
	E1. OWN FUNDS	60
	E2. SOLVENCY CAPITAL REQUIREMENT AND MINIMUM CAPITAL REQUIREMENT	61
	E3. USE OF THE DURATION-BASED EQUITY RISK SUB-MODULE IN THE CALCULATION OF THE SCR	62
	E4. DIFFERENCES BETWEEN THE STANDARD FORMULA AND ANY INTERNAL MODEL USED	62
	E5.NON-COMPLIANCEWITH MCR AND SCR	62
	E6. ANY OTHER INFORMATION	62
APPENDIX: QUANTITATIVE REPORTING TEMPLATES ("QRTs")	63

1

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

GLOSSARY

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

3

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Fidelis Underwriting Limited ("FUL" or "the Company") presents its Solvency and Financial Condition Report ("SFCR") for the year ended 31 December 2024. The SFCR covers the Company's business and performance, system of governance, risk profile, valuation for solvency purposes, and capital management. The report details FUL's risk profile and its solvency and capital needs and examines how the Company's governance framework and risk management processes support it in identifying, monitoring, and assessing these needs.

A copy of this report is available on the Company's website: https://investors.fidelisinsurance.com/financials/Other-Financial-Results/default.aspx

The administrative body that has ultimate responsibility for all these matters is the Company's Board of Directors, with the assistance of various governance and control functions which are in place to monitor and manage the business.

Throughout this document we have used acronyms and defined these in the glossary, please refer to page 2.

OVERVIEW

As at the year ended 31 December 2024 FUL was a 100% directly owned subsidiary of Fidelis Insurance Holdings Limited ("FIHL"), which is the ultimate parent company of the Fidelis Insurance Group ("the Group"). The Group also includes Fidelis Insurance Bermuda Limited ("FIBL"), Fidelis Insurance Ireland Designated Activity Company ("FIID"), FIHL (UK) Services Limited ("FSL"), Fidelis European Holdings Limited ("FEHL") and Nameco (no.1404) Limited ("Nameco"), which FIHL established on 22 May 2024 as a wholly owned subsidiary of FIBL to facilitate its participation (9.9% for the 2024 year of account) in Syndicate 3123's underwriting activity, commencing 1 July 2024. FUL is regulated by the PRA and the FCA.

The business written by the Company across eight Solvency UK lines of business was a mix of general insurance and reinsurance business written pursuant to our strategic partnership with The Fidelis Partnership (as defined below).

In this SFCR, the figures presented for the current reporting period are calculated in accordance with the Solvency UK PRA rules. Comparative figures from previous periods are based on the Solvency II framework.

MATERIAL EVENTS

Fidelis Group Restructuring

On 3 January 2023, a number of separation and reorganisation transactions occurred to create two distinct holding companies and businesses: FIHL and Shelf Holdco II Limited, which is the parent company of an external managing general underwriting platform known as "The Fidelis Partnership" (the "Separation Transactions"). As part of the Separation Transactions, the Fidelis Insurance Group and The Fidelis Partnership entered into a number of agreements governing the outsourced relationship from the Fidelis Insurance Group to The Fidelis Partnership, including the "Framework Agreement", a series of "Delegated Underwriting Authority Agreements" and the "Inter-Group Services Agreement". These agreements govethe ongoing relationship between the two groups of companies, including delegating underwriting authority to the operating subsidiaries of The Fidelis Partnership to source and bind contracts for each of the insurance subsidiaries of FIHL.

The Ukraine Conflict

Following Russia's invasion of Ukraine on 24 February 2022, government sanctions were introduced prohibiting various commercial and finance activities in Russia, including leasing of aircraft in the aviation industry to any person in Russia, or for use in Russia. Aircraft lessors issued notices to airlines and lessees in Russia purporting to terminate the leasing of aircraft (and other parts such as spare engines) and requiring that the airlines retuthe assets. Certain of the relevant aviation authorities where the aircraft are registered have also since suspended the certificates of airworthiness of such aircraft. Some aircraft are yet to be returned and aircraft lessors filed various insurance claims under their insurance policies for loss of the unreturned aircraft. As previously disclosed, the insurers have denied the claims and the lessors have instituted proceedings in the U.K., the U.S. and Ireland against upwards of 60 (re)insurers, including certain Fidelis Insurance Group entities. Certain claims that form part of these proceedings have since been settled out of court. The Group may continue to resolve such disputes through effecting settlements. Provision has been made in the Group's and the Company's reserves for claims incurred, net of reinsurance, for potential exposures relating to the Ukraine Conflict, including reserves reflecting our estimate for potential loss claims relating to leased aircraft within Russia, including the related litigation proceedings and settlements. While it is not feasible to predict or determine the ultimate outcome of the aforementioned proceedings, the directors do not believe that the outcome of these proceedings will have a material adverse effect on the financial condition of the Company, after consideration of any applicable reserves.

4

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

EXECUTIVE SUMMARY

BUSINESS AND PERFORMANCE (SECTION A)

FUL's gross premiums written for the year ended 31 December 2024 were $2,270.7 million (2023: $1,974.0 million) with

a combined ratio of 85.5% (2023: 90.7%) and a net loss ratio of 37.3% (2023: 45.8%). The growth was mainly driven by increased volumes in fire and other damage to property insurance which is explained further in section 2.2.

The Company has an ongoing intra-group reinsurance agreement with FIBL to maintain its risk profile in line with its approved risk appetite.

The net underwriting contribution for 2024 compared to 2023 is shown below:

See section 2.2 for detailed year on year commentary.

SYSTEM OF GOVERNANCE (SECTION B)

The Fidelis Insurance Group has implemented an effective system of corporate governance in a way which ensures that enterprise risk management is maintained at a high standard and that the business is operating in an efficient and effective manner. The FUL Board aligns its system of corporate governance with that of the Group where applicable.

FUL is governed by its Board of Directors and two sub-committees of the Board: the Audit Committee and the RCC. The FUL Board is ultimately responsible for ensuring that the principles of good governance are observed.

FUL has an Internal Control and Risk Management Framework (the "RMF") and employs the "Three Lines of Defence" model to manage risk. The integration of the risk management process, business strategy, business planning, and capital management is defined through FUL's approach to its ORSA. Both the management team and the Board are fully engaged with the ORSA process and use it as a tool to help deepen their understanding of the business, better understand the risks and opportunities facing it and to refine and focus FUL's strategic thinking and priorities.

RISK PROFILE (SECTION C)

The Company is exposed to risks from several sources. These include non-life underwriting risk, market risk, counterparty default risk, liquidity risk, operational risk, strategic risk and emerging risk. The primary risk to the Company is underwriting risk. There were no material changes to the Company's key risk areas in 2024. Each of these risk areas is described in more detail in section C.

The level of FUL's capital is adequate for its risk profile under both normal and stressed conditions and as evidenced by the stress and scenario testing under the Company's ORSA, FUL has sufficient capital to withstand a 1-in-200-year aggregate loss event.

VALUATION FOR SOLVENCY PURPOSES (SECTION D)

The assets and liabilities in the Solvency UK balance sheet have been valued using Solvency UK valuation rules. Solvency UK valuation rules are different, in some areas, to those used in the Company's UK GAAP financial statements, with the valuation of TPs being the major area of difference. See section D for more detail on the valuation methods, bases and assumptions of assets and liabilities in the Solvency UK balance sheet as well as a comparison to UK GAAP.

5

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

EXECUTIVE SUMMARY

CAPITAL MANAGEMENT (SECTION E)

FUL's capital management objective is to ensure that the Company maintains, at all times, an appropriate level of capital, in terms of both quantity and quality in line with its risk appetite and capital requirements, and that it fulfils its obligations to measure, monitor, manage and report its capital position, both required and available, internally and externally as required, in accordance with relevant regulatory requirements.

The Company calculates its SCR using the Standard Formula. The Company does not use any undertaking specific parameters allowed under Solvency UK, nor does it use simplified calculations for any of the risk modules.

The following table shows the difference between equity as shown in the financial statements and the Solvency UK excess of assets over liabilities:

The table below shows the SCR, MCR, Solvency UK own funds and SCR coverage ratio of Solvency UK eligible own funds to SCR as at 31 December 2024:

FUL has an unconditional guarantee from FIHL for all of its financial obligations.

6

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

STATEMENT OF DIRECTORS' RESPONBILITIES

The directors of Fidelis Underwriting Limited acknowledge their responsibility for ensuring that the SFCR has been prepared in all material respects in accordance with PRA rules.

The Directors are satisfied that to the best of their knowledge and belief:

1. Throughout the financial year to 31 December 2024, Fidelis Underwriting Limited has complied in all material respects with the requirements of the PRA rules as applicable; and
2. It is reasonable to believe that in respect of the period from 31 December 2024 to the date of the publication of the SFCR, Fidelis Underwriting Limited has continued so to comply, and that they will continue so to comply in the future.

By order of the Board:

H Mckenna

Chief Financial Officer

22 Bishopsgate 43rd Floor London EC2N 4BQ

4 April 2025

7

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

INDEPENDENT AUDITOR'S REPORT

Report of the external independent auditor to the Directors of Fidelis Underwriting Limited ('the Company') pursuant to Rule 4.1 (2) of the External Audit Part of the PRA Rulebook applicable to Solvency II firms

REPORT ON THE AUDIT OF THE INFORMATION SUBJECT TO AUDIT IN THE RELEVANT ELEMENTS OF THE SOLVENCY AND FINANCIAL CONDITION REPORT

Opinion

Except as stated below, we have audited the following documents prepared by Fidelis Underwriting Limited ('the Company') as at 31 December 2024:

• The 'Valuation for solvency purposes' and 'Capital Management' sections of the Solvency and Financial Condition Report of the Company as at 31 December 2024, ('the Narrative Disclosures subject to audit'); and
• Company templates IR.02.01.02, IR.17.01.02, IR.23.01.01, IR.25.04.21, IR.28.01.01 ('the Templates subject to audit').

The Narrative Disclosures subject to audit and the Templates subject to audit are collectively referred to as the 'Relevant Elements of the Solvency and Financial Condition Report'.

We are not required to audit, nor have we audited, and as a consequence do not express an opinion on the Other Information which comprises:

• The 'Business and performance', 'System of governance' and 'Risk profile' sections of the Solvency and Financial Condition Report;
• Company templates IR.05.01.02, IR.05.04.02, IR.19.01.21;
• The written acknowledgement by the Directors of their responsibilities, including for the preparation of the Solvency and Financial Condition Report ('the Responsibility Statement').

In our opinion, the information subject to audit in the Relevant Elements of the Solvency and Financial Condition Report of the Company as at 31 December 2024 is prepared, in all material respects, in accordance with the financial reporting provisions of the PRA Rules on which it is based.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)"), including ISA (UK) 800 and ISA (UK) 805, and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Relevant Elements of the Solvency and Financial Condition Report section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the Solvency and Financial Condition Report in the UK, including the FRC Ethical Standard as applied to public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter - special purpose basis of accounting

We draw attention to the 'Valuation for solvency purposes' and 'Capital Management' sections of the Solvency and Financial Condition Report, which describe the basis of accounting of the information subject to audit in the Relevant Elements of the Solvency and Financial Condition Report. The Solvency and Financial Condition Report is prepared in accordance with the financial reporting provisions of the PRA Rules, and therefore in accordance with a special purpose financial reporting framework. The Solvency and Financial Condition Report is required to be published, and intended users include but are not limited to the Prudential Regulation Authority. As a result, the Solvency and Financial Condition Report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

8

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

Going concern

The Directors have prepared the information subject to audit in the Relevant Elements of the Solvency and Financial Condition Report on the going concebasis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concefor at least a year from the date of approval of the Solvency and Financial Condition Report ("the going conceperiod").

We used our knowledge of the Company, its industry, and the general economic environment to identify the inherent risks to its business model and analysed how those risks might affect the Company's financial resources or ability to continue operations over the going conceperiod. The risks that we considered most likely to adversely affect the Company's available financial resources over this period was the valuation of Technical Provisions ('TPs') and calculation of the Solvency Capital Requirement ('SCR') given the estimation and judgement involved .

We also considered less predictable but realistic second order impacts that could affect demand in the Company's markets, such as the failure of counterparties who transact with the company (such as policyholders and reinsurers), the performance of the investment portfolio, solvency and capital adequacy.

We considered whether these risks could plausibly affect the liquidity and solvency in the going conceperiod by comparing severe, but plausible downside scenarios and the degree of downside assumptions that, individually and collectively, could result in a liquidity and solvency issue (a reverse stress tests), taking into account the Company's current and projected financial resources.

Our conclusions based on this work:

1. we consider that the Directors' use of the going concebasis of accounting in the preparation of the information subject to audit in the Relevant Elements of the Solvency and Financial Condition Report is appropriate; and
2. we have not identified, and concur with the Directors' assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concefor the going conceperiod.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.

Fraud and breaches of laws and regulations - ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

1. Enquiring of directors and the audit committee, as to the Company's high-level policies and procedures to prevent and detect fraud, including the internal audit function, as well as whether they have knowledge of any actual, suspected or alleged fraud.
2. Reading Board, audit committee, Reserving Committee and risk and Capital Committee meeting minutes.
3. Considering remuneration incentive schemes and performance targets for directors and management.
4. Using analytical procedures to identify any unusual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

9

FIDELIS UNDERWRITING LIMITED

SOLVENCY AND FINANCIAL CONDITION REPORT 2024