Fidelis Buys Out CVC for $163M, Charting New Course as Pelagos

PEMBROKE, Bermuda – March 02, 2026 – Fidelis Insurance Holdings Limited (NYSE:FIHL) has decisively closed a significant chapter in its corporate history, announcing the repurchase of all remaining shares held by founding investor CVC Falcon Holdings Limited for an aggregate price of $163.3 million. The move not only marks the complete exit of a key private equity partner but also serves as a powerful strategic step designed to deliver immediate value to shareholders as the company prepares for a major rebranding.

In a definitive agreement, the global specialty insurer and reinsurer will buy back 8,597,170 common shares at a price of $19.00 per share. Upon completion, CVC, which has been instrumental since the company's inception, will no longer hold any ownership interest. This transaction is more than a simple change in the shareholder registry; it is a calculated maneuver that underscores management's confidence in the company's intrinsic value and its commitment to an aggressive capital management strategy.

A Strategic Buyback Bolstering Shareholder Value

The financial mechanics of the deal are particularly noteworthy for investors. The repurchase price of $19.00 per share stands significantly below Fidelis's own reported year-end 2025 diluted book value per common share of $24.61. This discount is the linchpin of the transaction's value proposition. By acquiring its own shares below their book value, Fidelis effectively retires equity at a bargain, which automatically increases the book value per share for all remaining shareholders—a process known as accretion.

Dan Burrows, CEO of Fidelis Insurance Group, highlighted the financial benefits in a statement. “We are pleased to announce the repurchase of CVC’s remaining shares at a compelling value,” he said. “This transaction, completed below our year-end diluted book value per common share of $24.61, is expected to deliver meaningful accretion to our book value per share and return on average equity.”

The move is timed well with market conditions. Fidelis's stock (FIHL) closed at $19.06 on February 27, 2026, placing the buyback price in line with recent trading levels. However, analysts see further upside, with average price targets hovering around $22.21 and some bullish forecasts reaching as high as $26.50. By executing the buyback now, Fidelis is acting on its belief that its market price does not fully reflect its underlying financial strength and future prospects.

The End of a Founding Partnership

The transaction marks the amicable conclusion of a long-standing and successful private equity partnership. CVC Falcon Holdings Limited was a founding shareholder, providing crucial capital and support during Fidelis's formative years. The exit appears to be the final step in a carefully managed, phased divestment. Public records show that Fidelis previously repurchased 3.1 million shares from CVC in a privately negotiated $50 million deal during the second quarter of 2025, signaling a gradual and orderly transition.

This culmination of CVC's investment cycle is a testament to the value created over the partnership's duration. Daniel Brand, a Partner at CVC, expressed pride in the insurer's journey. “As a founding investor, we are very proud of all that Fidelis Insurance Group, and its talented and accomplished management team, have achieved,” Brand stated. “We wish them continued success in the future.”

For Fidelis, the buyout consolidates its ownership structure and solidifies its independence as it moves forward. The departure of a major private equity backer is a common and significant milestone in a company's lifecycle, often signaling a new era of self-directed strategy and corporate identity.

Charting a New Course as Pelagos Capital

This strategic buyback is not happening in a vacuum. It is a critical precursor to the company's planned transformation into Pelagos Capital Insurance in 2026, a move that will be completed subject to all necessary legal and regulatory approvals. The company is expected to begin trading under a new ticker symbol, NYSE: PLGO, as early as May 2026.

The name change is deeply symbolic. "Pelagos" is a Greek word for the open sea, evoking a sense of vastness, global reach, and the ability to navigate the complex and interconnected risks of the global specialty insurance market. The rebranding, coupled with CVC's exit, is a clear signal that the company is forging a new, distinct identity. It is stepping out from the shadow of its founding partners to emphasize its core strengths in strategic capital allocation and expert risk selection—a focus reinforced by the inclusion of "Capital" in its new name.

This new identity will be built upon a strong foundation. Fidelis maintains robust insurer financial strength ratings of 'A' from AM Best, 'A-' from S&P, and 'A3' from Moody’s, giving it the financial muscle to pursue its strategic goals and navigate challenging market cycles.

A Confident Capital Allocation Strategy

The CVC share repurchase is a cornerstone of a broader, more assertive capital management strategy at Fidelis. The company recently expanded its total share repurchase authorization to a substantial $400 million and increased its quarterly dividend to $0.15 per share, signaling a strong commitment to returning capital to its shareholders.

In the fiscal year ending December 31, 2025, Fidelis returned a total of $313.7 million to shareholders through a combination of $261.4 million in share repurchases and $52.3 million in dividends. These actions reflect a management team that is confident in its financial position and optimistic about its future earnings power. CEO Dan Burrows has previously noted that the company's stock price does not fully capture its value, and the expanded buyback program provides the flexibility to act decisively on that conviction.

By deploying capital to repurchase shares accretively, Fidelis is not only enhancing immediate shareholder metrics but also making a long-term investment in its own future. This disciplined yet aggressive approach to capital allocation, combined with its impending rebrand and consolidated ownership, positions Pelagos Capital Insurance to navigate the open waters of the global insurance market with renewed focus and strength.