Pelagos Insurance Capital Reports Third Quarter 2026 Results

Gross premiums written of $839.8 million, growth of 5.3% from the third quarter of 2025

Annualized Operating ROAE of 15.3%

Third Quarter 2026 Highlights:

• Gross premiums written of $839.8 million; growth of 5.3% from the third quarter of 2025
• Combined ratio of 91.5%
• Annualized operating return on average common equity (“Annualized Operating ROAE”) of 15.3%
• Total capital returned to common shareholders in the quarter of $95.2 million, including common share repurchases of $83.0 million, at an average price of $24.55 per share, and dividends of $12.2 million
• Net income of $61.7 million, or $0.74 per diluted common share, and operating net income of $83.3 million, or $1.00 per diluted common share

Nine Months Ended September 30, 2026 Highlights:

• Gross premiums written of $4.0 billion; growth of 6.4% from the first nine months of 2025
• Combined ratio of 92.4%, an improvement of 7 points compared to 99.5% in the first nine months of 2025
• Annualized Operating ROAE of 11.8%, an improvement of 7 points compared to the first nine months of 2025
• Total capital returned to common shareholders was $400.5 million, including common share repurchases of $362.5 million, at an average price of $20.47 per share, and dividends of $38.0 million
• Net income of $214.1 million, or $2.46 per diluted common share, and operating net income of $200.4 million, or $2.30 per diluted common share
• Book value per diluted common share was $26.60 at September 30, 2026, an increase of 8.1% from December 31, 2025, of $24.61. This was impacted by the mark-to-market due to higher interest rates. Excluding accumulated other comprehensive income/(loss) (“AOCI”), book value per diluted common share increased 11.9% to $27.11 from $24.23 at December 31, 2025

PEMBROKE, Bermuda--(BUSINESS WIRE)--Pelagos Insurance Capital Limited (“Pelagos” or “PLGO” or the “Company”) (NYSE: PLGO) announced today its financial results for the third quarter ended September 30, 2026.

Dan Burrows, Group Chief Executive Officer of Pelagos Insurance Capital, commented: “We delivered a strong quarter with 15.3% annualized operating ROAE. These results demonstrate the strength of our capital allocator strategy and our ability to respond to changing market conditions, access a broader range of opportunities, and deploy capital to the most attractive areas of the market. Our advantage is simple: no single underwriting team sees every opportunity. By partnering with multiple leading teams, we expand our opportunity set and create a stronger, more diversified portfolio.

“Looking ahead, we see significant opportunity to build on the momentum across our expanding underwriting partner network. Combined with our strong balance sheet and the ability to pursue both profitable growth and accretive capital management, we are well positioned to accelerate top-line growth, generate attractive risk-adjusted returns, and create long-term value for our shareholders."

• Net income for the third quarter of 2026 was $61.7 million, or $0.74 per diluted common share. Operating net income was $83.3 million, or $1.00 per diluted common share.
• Underwriting income for the third quarter of 2026 was $67.0 million and the combined ratio was 91.5%, compared to underwriting income of $125.5 million and a combined ratio of 79.0% in the third quarter of 2025.
• Net adverse prior year loss reserve development for the third quarter of 2026 was $4.7 million, compared to net favorable development of $16.0 million in the prior year period.
• Catastrophe and large losses for the third quarter of 2026 were $115.9 million compared to $57.4 million in the prior year period.
• Net investment income for the third quarter of 2026 was $44.6 million compared to $45.9 million in the prior year period.
• Net realized and unrealized investment losses for the third quarter of 2026 were $27.4 million, which included $9.0 million of net realized and unrealized losses on other investments.
• Annualized Operating ROAE of 15.3% in the quarter compared to 21.4% in the prior year period.

• Net income for the nine months ended September 30, 2026, was $214.1 million, or $2.46 per diluted common share. Operating net income was $200.4 million, or $2.30 per diluted common share.
• Underwriting income for the nine months ended September 30, 2026, was $146.0 million and the combined ratio was 92.4%, compared to underwriting income of $10.4 million and a combined ratio of 99.5% for the nine months ended September 30, 2025.
• Catastrophe and large losses for the nine months ended September 30, 2026, were $350.0 million compared to $465.0 million in the prior year period.
• Net favorable prior year loss reserve development of $31.1 million compared to net adverse development of $32.4 million in the prior year period.
• Net investment income of $132.3 million compared to $140.0 million in the prior year period.
• Net realized and unrealized investment losses for the nine months ended September 30, 2026 were $4.1 million, which included $17.9 million of net realized and unrealized gains on other investments. This compared to net realized and unrealized investment gains for the nine months ended September 30, 2025 of $18.8 million, which included $10.4 million of net realized and unrealized gains on other investments.
• Annualized Operating ROAE of 11.8% for the nine months ended September 30, 2026, compared to 5.2% in the prior year period.
• Book value per diluted common share was $26.60 at September 30, 2026 (dilutive shares at September 30, 2026 of 1,164,367), compared to $24.61 at December 31, 2025. This was impacted by the mark-to-market due to higher interest rates. Excluding accumulated other comprehensive income/(loss) (“AOCI”), book value per diluted common share increased 11.9% to $27.11 from $24.23 at December 31, 2025.

The following table details key financial indicators in evaluating our performance for the three and nine months ended September 30, 2026 and 2025:

Insurance Segment

The following table is a summary of our Insurance segment’s underwriting results:

For the three months ended September 30, 2026, our GPW increased primarily driven by growth from our Other Insurance and Marine lines of business. For the nine months ended September 30, 2026, our GPW increased primarily driven by growth from our network of expanded underwriting partners, in several lines of business, partially offset by a non-renewal in our Cyber line of business that did not meet our underwriting criteria and rating hurdles.

For the three and nine months ended September 30, 2026, net premiums earned ("NPE") increased due to earnings from higher net premiums written in the current and prior year periods, and as a result of higher gross premiums written in our Marine line of business.

Our policy acquisition expense ratio for the three and nine months ended September 30, 2026 remained consistent with the prior year periods.

The following table is a summary of our Insurance segment’s losses and loss adjustment expenses:

For the three months ended September 30, 2026, our loss ratio in the Insurance segment increased by 15.1 points compared to the prior year period. For the nine months ended September 30, 2026, our loss ratio in the Insurance segment improved by 0.3 points compared to the prior year period.

The attritional loss ratio for the three and nine months ended September 30, 2026, increased by 6.0 points and 5.2 points, respectively, compared to the prior year periods due to the prior year periods being benign in terms of attritional losses.

The catastrophe and large losses for the three months ended September 30, 2026, were primarily attributable to losses related to the conflicts in the Black Sea and the Middle East in our Marine line of business. This compared to the prior period catastrophe and large losses that were primarily attributable to two loss events in our Property and Other Insurance lines of business. The catastrophe and large losses for the nine months ended September 30, 2026 were primarily attributable to losses related to the conflicts in the Middle East and the Black Sea, the gas plant explosion at the Ras Laffan facility in Qatar, as well as loss events in various lines of business including Other Insurance, Property and Marine. This compared to the prior period catastrophe and large losses that were primarily attributable to the California wildfires in our Property line of business, together with other losses in our Other Insurance, Aviation & Aerospace, and Property lines of business.

For the three months ended September 30, 2026, adverse prior year development was primarily driven by our Political Risk, Violence and Terror line of business, partially offset by better than expected loss emergence in multiple lines of business. For the nine months ended September 30, 2026, adverse prior year development was primarily driven by increased loss estimates related to the Baltimore Bridge collapse within our Marine line of business, as well as increased loss estimates in our Political Risk, Violence and Terror line of business and increases in prior year property D&F losses. These increases were partially offset by better than expected loss emergence in multiple lines of business.

Reinsurance Segment

The following table is a summary of our Reinsurance segment’s underwriting results:

For the three months ended September 30, 2026, GPW decreased compared to the prior year period, primarily due to the restructuring of a client's program. For the nine months ended September 30, 2026, our GPW decreased primarily from reinstatement premiums related to the California wildfires in the prior year period and the restructuring of a client's program. The decrease was partially offset by targeted deployment into areas where we continue to see attractive risk-adjusted returns.

For the three months ended September 30, 2026, NPE increased driven by our expanded network of underwriting partners and business mix. For the nine months ended September 30, 2026, NPE decreased due to the acceleration of earnings on contracts with exposure to the California wildfires in the prior year period and changes in our business mix.

Our policy acquisition expense ratio for the three and nine months ended September 30, 2026 increased primarily due to business mix and changes in ceded premium and commissions earned from outwards reinsurance partners.

The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:

For the three months ended September 30, 2026, our loss ratio in the Reinsurance segment increased by 4.3 points compared to the prior year period. For the nine months ended September 30, 2026, our loss ratio in the Reinsurance segment improved by 50.8 points compared to the prior year period.

The attritional loss ratio for the three months ended September 30, 2026, increased by 4.0 points compared to the prior year period, both of which were benign in terms of attritional losses. The attritional loss ratio for the nine months ended September 30, 2026, remained consistent with the prior year period.

There were no material catastrophe and large losses for the three and nine months ended September 30, 2026. There were no material catastrophe and large losses for the three months ended September 30, 2025. The catastrophe and large losses for the nine months ended September 30, 2025 were attributable to the California wildfires.

For the three and nine months ended September 30, 2026, favorable prior year development was driven by positive development on catastrophe losses and benign prior year attritional experience.

We do not allocate The Fidelis Partnership commissions or general and administrative expenses by segment.

The Fidelis Partnership Commissions

The Fidelis Partnership manages origination, underwriting, underwriting administration, outwards reinsurance and claims handling under delegated authority agreements with the Company. The following table summarizes The Fidelis Partnership commissions earned:

For the three and nine months ended September 30, 2026, the decrease in The Fidelis Partnership commissions ratio was driven by our business mix, partially offset by the increase of the accrued profit commission as a result of operating profit in the periods.

General and Administrative Expenses

For the three and nine months ended September 30, 2026, general and administrative expenses were $29.5 million and $88.0 million, respectively (2025: $27.2 million and $71.5 million, respectively). The increase was due to strategic investments to strengthen our talent base, enhance our infrastructure and improve our technology. Also, improved financial performance resulted in higher variable compensation accruals in the current year.

The components of net investment return are as follows:

Net Investment Income

Net investment income is the interest income earned on our cash balances, available-for-sale (AFS) fixed income securities and distributions received from our fixed income funds and private credit funds, net of total investment expenses.

For the three and nine months ended September 30, 2026, we generated net investment income of $44.6 million and $132.3 million, respectively, at an average annualized yield of 4.6% and 4.3%, respectively (2025: $45.9 million and $140.0 million at an average annualized yield of 4.5% and 4.4%). The decrease in our net investment income for the three months ended September 30, 2026, was driven by lower investable assets compared to the prior year period. For the nine months ended September 30, 2026, the decrease was primarily driven by lower investable assets compared to the prior year period.

Net Realized and Unrealized Gains/(Losses) on Other Investments

Net realized and unrealized gains/(losses) on other investments is the change in net asset value ("NAV") of our fixed income fund, hedge fund and private credit fund investments. The decrease for the three months ended September 30, 2026, was driven by a negative change in the NAV on our fixed income funds as interest rates moved higher in the quarter and by a negative performance from our hedge fund portfolio. For the nine months ended September 30, 2026, the increase was driven by positive performance from our hedge fund portfolio, partially offset by a negative change in the NAV on our fixed income funds as interest rates moved higher in the year.

Net Realized and Unrealized Investment Gains/(Losses) Excluding Other Investments

Net realized and unrealized investment gains/(losses) excluding other investments includes net realized gains/(losses) on sales of fixed maturity securities, available-for-sale, and movements in our provision for current expected credit losses.

For the three and nine months ended September 30, 2026, the decrease resulted primarily from movements in our provision for current expected credit losses of $(15.7) million and $(18.7) million, respectively (2025: $0.3 million and $5.6 million).

Share Repurchases

In the three and nine months ended September 30, 2026, we repurchased 3,383,048 and 17,707,715 common shares, respectively, for an aggregate of $83.0 million and $362.5 million, respectively, excluding expenses, at an average price of $24.55 and $20.47 per common share, respectively, pursuant to our share repurchase authorization.

Included in common shares repurchased in the three and nine months ended September 30, 2026 were 1,402,800 and 2,842,800 common shares, respectively, from Pine Brook Feal Intermediate, L.P. for an aggregate of $35.0 million and $66.7 million, respectively, through privately negotiated transactions. This resulted in a pro-rata repurchase of 153,709 and 311,494 common shares, respectively, from The Fidelis Partnership for $3.8 million and $7.3 million, respectively.

Included in common shares repurchased for the nine months ended September 30, 2026 were 8,597,170 common shares from CVC Falcon Holdings Limited for an aggregate of $163.3 million through a privately negotiated transaction. This resulted in a pro-rata repurchase of 942,014 common shares from The Fidelis Partnership for $17.9 million.

On November 3, 2026, we announced that our Board of Directors approved the replenishment of our share repurchase authorization, bringing the total current authorization to $400.0 million.

Dividend Announcement

On November 3, 2026, we announced that our Board of Directors approved an increase to the quarterly dividend to $0.22 per common share, declaring the dividend payable on December 23, 2026, to common shareholders of record on December 11, 2026.

Conference Call

Pelagos will host a teleconference to discuss its financial results on Thursday, November 12, 2026, at 9:00 a.m. Eastern time. The call can be accessed by dialing 1-833-470-1428 (U.S. callers), or 1-646-844-6383 (international callers), and entering the passcode 187208 approximately 10 minutes in advance of the call. A live, listen-only webcast of the call will also be available via the Investors section of the Company’s website at www.pelagosinsurancecapital.com. A recording of the webcast will be available in the Investor Relations section of the Company’s website approximately two hours after the event concludes and will be archived on the site for one year.

About Pelagos Insurance Capital

Pelagos Insurance Capital (NYSE: PLGO), formerly Fidelis Insurance Group (NYSE: FIHL), is an expert capital allocator and risk selector in specialty insurance and reinsurance. We bring together strategic capital and specialist underwriting expertise to deliver value through the cycle.

With a differentiated, diversified portfolio and strong balance sheet, we deploy capital into the most compelling areas of the market through our network of best-in-class underwriting partners. Our deep expertise and multiple points of access to the market enable us to adapt as the market evolves, optimize performance, and produce superior outcomes for clients, brokers, and shareholders.

Pelagos Insurance Capital Investor Contact:
Pelagos Insurance Capital
Miranda Hunter
+1 (441) 279 2561

Pelagos Insurance Capital Media Contact:
Rein4ce
Stephen Breen
+44 (0) 7843 076556