Pelagos Insurance Capital Limited Overview
Pelagos Insurance Capital is a Bermuda-domiciled specialty insurance and reinsurance balance sheet that has reinvented itself as a "capital allocator and risk selector" rather than a conventional underwriting house. With only about 108 employees but 4.7 billion USD of FY2025 gross premiums written, Pelagos deploys its A-rated capital through delegated underwriting partnerships — anchored by a ten-year rolling binder with The Fidelis Partnership (TFP), the MGU spun out of the group in January 2023, and increasingly supplemented by new partners such as Euclid Mortgage, Bamboo Insurance and Oak Global. Its portfolio spans property, marine, aviation, energy, political violence, cyber and a distinctive asset-backed finance and portfolio credit book, alongside a property catastrophe and retrocession reinsurance segment. The company competes on portfolio construction, outwards reinsurance (including its Herbie Re catastrophe bond program) and capital management, having aggressively repurchased stock below book value. Its central investment debate is volatility versus a sub-1.0x price-to-book valuation.
The company's own description
In its 2025 Form 20-F (filed 5 March 2026), the company describes itself as a global specialty insurer and reinsurer writing roughly ten lines of business — including property, marine, asset-backed finance, energy, cyber, aviation and aerospace, and political risk — through two reportable segments, Insurance and Reinsurance, with business distributed via brokers and reinsurance intermediaries and underwriting partly delegated to its strategic partner TFP (summary of 20-F via edgar.tools). Since the rebrand, the company's standard boilerplate positions Pelagos as an expert capital allocator and risk selector that combines strategic capital with specialist underwriting expertise, deploying a diversified portfolio and strong balance sheet through a network of underwriting partners (Company dividend press release, 3 August 2026). The website states the group offers over 100 products and is headquartered in Bermuda with offices in London and Dublin.
Independent characterization
| Dimension | Characterization |
|---|---|
| Revenue model | ~100% risk-premium (insurance/reinsurance premiums earned) plus investment income on float and capital. No product, subscription or licensing revenue |
| Value-chain position | Risk carrier / capacity provider; origination delegated to MGAs/MGUs; distribution via Lloyd's/London-market and Bermuda brokers |
| Cost structure | Very low internal G&A (~29M USD per quarter, Q2 2026) but high policy acquisition costs (~30–32 points of combined ratio) including ceding commissions and profit commissions to partners |
| Partner economics | Partners earn commissions and profit-related ("PFP") commissions; TFP's profit commission is subject to an annual underwriting hurdle (a 5% hurdle was not met in 2025 per Q3 2025 call commentary) |
| Customer types | Corporate and specialty buyers (energy, marine, aviation, financial institutions, mortgage/credit counterparties), primary insurers and reinsurers (for reinsurance/retro), high-value homeowners (via partners) |
| End-markets | Global specialty commercial P&C, U.S. E&S and admitted property (via partners), structured credit and mortgage credit, property catastrophe reinsurance and retrocession |
Pelagos is best understood as a "hybrid balance-sheet carrier": a rated risk-bearing entity that owns the insurance licences, capital, reinsurance programme and investment portfolio, while most front-end origination and day-to-day underwriting is outsourced. This structure resulted from the January 2023 Separation Transactions, in which the group distributed its MGU operations (Fidelis Marketing Limited and Pine Walk Capital Limited) to shareholders to create The Fidelis Partnership, which was then acquired by an investor consortium (Q2 2026 6-K, Note 1). The listed company retained the balance sheet.
Economically, the model resembles a sidecar or capacity provider writ large, but with genuine portfolio-steering rights: the company sets risk appetite, decides gross line sizes, buys outwards protection, and (increasingly) allocates capacity across multiple MGAs. TFP remains the "cornerstone" relationship under a ten-year rolling binder with right-of-first-refusal features (Reinsurance News interview with Group MD Jonny Strickle, May 2026; Q3 2025 earnings call summary).
Capital-allocation framework
Management articulates three pillars of capital management — how it underwrites, how it uses outwards reinsurance to manage volatility, and how it returns excess capital (2025 CEO Letter, furnished with the 2026 Information Circular). On the Q2 2026 call management described managing portfolio volatility with an annual time horizon and shifting capacity from excess-of-loss to quota-share contracts while keeping probable maximum losses broadly stable (TradingKey transcript summary, August 2026).
Strategy
Stated strategy themes
From the 2025 CEO Letter and 2026 communications, management frames the strategy around these themes (paraphrased):
-
Capital allocator model — deploy capital "through the right partner to the right risk at the right time," flexing allocation between partners as conditions change (Strickle, Reinsurance News, May 2026).
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Three pillars of capital management — underwriting selection, outwards reinsurance to manage volatility, and return of excess capital (2025 CEO Letter).
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Diversified underwriting partnerships — reduce reliance on a single partner while keeping TFP as cornerstone; any new partner must clear profitability hurdles comparable to the core book.
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Margin over volume — focus on rate adequacy and terms as softening appears in pockets of the market; shift capacity from excess-of-loss to quota-share where risk-adjusted returns are better (Q2 2026 call).
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Cycle-insulated specialty — grow Asset Backed Finance & Portfolio Credit, where demand is driven by capital relief rather than insurance pricing.
Strategic initiatives in the last 24 months
| Initiative | Date | Detail | Status |
|---|---|---|---|
| Euclid Mortgage partnership | Announced Nov 2024; live 1 Jan 2025 | First non-TFP partner; U.S. residential mortgage credit; ~35M USD 2025 GPW expected | Live |
| Bamboo Insurance partnership | 2,025 | New partner (U.S. property/homeowners MGA) | Live |
| Oak Global and other partners | Jan 2026 | Several partners onboarded at 1 January | Live |
| Lloyd's Syndicate 3123 participation | 2024 onward | Access to Lloyd's global distribution | Ongoing |
| Herbie Re cat bond program | May 2025; Jan 2026 | 90M USD multi-peril (to Jun 2027); 75M USD U.S. quake aggregate (to end-2029); nearly 900M USD of cover raised over the program's life | Ongoing |
| Subordinated debt issuance | Jun 2025 | 400M USD 7.75% notes due 2055 | Completed |
| Junior notes redemption | Apr 2026 | 125M USD 6.625% notes due 2041 retired | Completed |
| Capital return program | 2025–2026 | Authorization raised to 200M (Aug 2025) then 400M USD (Feb 2026); dividend raised to 0.15 USD/quarter | Ongoing; 139.1M left at 30 Jun 2026 |
| Founding-investor exit | 2025–Mar 2026 | Complete repurchase of CVC stake below book value | Completed |
| Rebrand to Pelagos | Announced Feb 2026; effective May 2026 | Name derived from "archipelago"; subsidiaries to adopt Pelagos name through 2026 | Holding company complete; subsidiaries in progress |
Medium-term targets and guidance
| Item | Target / guidance | Source |
|---|---|---|
| Operating ROAE | 13–15% through the cycle | Q2 2026 call |
| Combined ratio (2026) | Mid- to high-80s | Q2 2026 call |
| GPW growth (2026) | Mid-single digits | Q2 2026 call |
| GPW growth (2025, achieved) | 6–10% target; delivered ~7% | Q3 2025 call |
| Q3 2026 NPE | Insurance similar to Q2 (~515M USD); Reinsurance 130–160M USD | Q2 2026 call |
Cost programs with quantified targets: none disclosed.
Products & Services
Pelagos does not publish product-level premium, pricing or launch-year data; pricing is risk-based and negotiated per placement. The catalog below is compiled from the 20-F segment descriptions, earnings commentary and company materials. Launch years are not publicly disclosed unless stated.
Insurance segment
| Line | Description and key capabilities | Target customers | Notable disclosures |
|---|---|---|---|
| Property (direct & facultative / D&F) | Large commercial property, U.S. E&S property, high-value homeowners, binder business; written largely via TFP and new partners | Corporates, real estate owners, HNW homeowners, U.S. E&S buyers | Direct property grew 9.5% (period cited on Q3 2025 call); new high-value homeowners flow identified in Q3 2025; property led Q2 2026 growth via expansion of an existing partner relationship |
| Marine | Hull, cargo, marine liability and specialty marine; management describes it as a leading specialty marine book | Shipowners, traders, marine operators | Cited as growth driver in Q2 2026; catastrophe/large losses in Marine in Q1 2026 |
| Asset Backed Finance & Portfolio Credit (legacy "Bespoke") | Structured credit, asset-backed non-payment, economic-linked (e-cat) risks, surety/guarantee and residential mortgage credit; buyers are often motivated by capital relief, regulatory relief and transaction facilitation rather than traditional insurance need | Banks, lenders, asset managers, mortgage counterparties | Management says these lines are relatively insulated from the P&C pricing cycle (Q2 2026 call); Euclid Mortgage partnership (from 2025) adds U.S. mortgage credit |
| Aviation & Aerospace | Airline hull and liability, aviation war, lessor contingent cover, space risks | Airlines, lessors, manufacturers, space operators | Source of 2024–25 adverse development from Russia–Ukraine lessor litigation; management reports exposure now substantially resolved |
| Political Risk, Violence & Terror | Political risk, contract frustration, political violence, terrorism and sabotage | Multinationals, lenders, project sponsors | Catastrophe/large losses in this line in Q1 2026; Middle East events contributed ~60M USD of Q2 2026 large losses |
| Energy | Upstream/downstream energy property and construction, energy liability | Oil & gas, power and renewable operators | A gas pipe explosion produced a ~34M USD loss in Q2 2026 |
| Cyber | Cyber insurance and cyber reinsurance participations | Corporates and cedants | 2024 CEO Letter references participation in Travelers' cyber book as a portfolio addition |
| Other Insurance | Miscellaneous specialty risks (contingency, specie, etc.) | Various | Catastrophe/large losses in Q1 2026 and Q3 2025 |
Reinsurance segment
| Line | Description | Target customers | Notable disclosures |
|---|---|---|---|
| Property catastrophe reinsurance | Actively managed, predominantly residential property cat book using a proprietary view of risk; excess-of-loss and increasingly quota-share | Primary insurers globally (North America and international) | Reinsurance GPW +40% in 2024 and +11% in 2025; Q3 2025 loss ratio 2.6% |
| Retrocession | Cat retro capacity to reinsurers | Reinsurers | Small proportion of segment |
| Whole Account | Multi-line proportional/aggregate covers for cedants | Insurers/reinsurers | Small proportion of segment |
Capital and risk-transfer "platform" offerings
| Offering | Description |
|---|---|
| Delegated capacity / underwriting partnerships | Long-term capacity for best-in-class MGAs (TFP, Euclid Mortgage, Bamboo Insurance, Oak Global, others); new partners must meet profitability thresholds comparable to existing partners (Q2 2026 call) |
| Lloyd's participation | Capital participation in The Fidelis Partnership Syndicate 3123 (from 2024) |
| Herbie Re (outwards) | Cat bond program sponsored by PICB providing collateralized retro protection — not a client product but a core part of the capital stack |
Financial Narrative
Important context: FY2023 is heavily distorted by the ~1.6B USD non-cash gain on the distribution of Fidelis MGU (classified in "other revenues") and a 90M USD deferred tax benefit. Insurance-industry concepts (gross profit, EBITDA, working capital, cash conversion cycle) are not meaningful for a P&C carrier and are marked as such rather than estimated. Primary data come from company earnings releases; where the company does not disclose a line (e.g., FY2021), figures from StockAnalysis.com (aggregator, derived from SEC filings) are used and flagged.
Income statement: notes and sources
Sources: FY2023, FY2024, FY2025 earnings releases (6-K); FY2021–FY2022 revenue, NPE, expense and pre-tax lines from StockAnalysis.com. FY2022 net income: aggregator-derived 62.3M vs. company-reported net income available to common shareholders of 52.6M (Insurance Business, Mar 2024) — the ~9.7M gap is likely preference dividends; both noted. FY2025 GPW is the rounded 4.72B reported. FY2025 DPS derived: 0.10 (Q1) + 0.10 (Q2) + 0.15 (Q3) + 0.15 (Q4), consistent with 52.3M USD dividends paid. Basic EPS not captured in sources reviewed.
Underwriting and return ratios
Margins and coverage derived. FY2023 margins distorted by the separation gain. FY2025 operating ROAE for the full year was not captured in sources reviewed (quarterly: Q4 2025 18.3%; Q3 2025 21.4%; 9M 2025 5.2%).
Gross profit and EBITDA: not meaningful for insurers (no cost of goods sold; D&A immaterial). An aggregator TTM "EBITDA" of 479M USD (MarketInOut, July 2026) is effectively pre-interest operating income and is not used for analysis.
Growth: Revenue CAGR FY2021–FY2025 = 20.3% (distorted by FY2023); NPE CAGR FY2021–FY2025 = 18.6%; GPW CAGR FY2022–FY2025 = 16.1% (derived).
Balance sheet
Sources: 2024 and 2025 Information Circulars (total assets, cash & invested assets, total capital); 2025 Form 20-F (debt); edgar.tools (FY2025 total assets 12.44B, equity 2.40B, liabilities 10.04B). Debt principal FY2023–FY2024 assumes the 330M Senior Notes and 125M Junior Notes (both outstanding before the June 2025 subordinated issue); FY2025 total capital derived. Post-separation BVPS on 3 January 2023 was 16.24 USD.
Latest balance sheet points (2026):
Sources: AlphaQuery (Q1 2026 balance sheet); Q1/Q2 2026 releases; TipRanks Q1 call summary.
Goodwill & intangibles: not material / not disclosed separately in sources reviewed. Working capital, current ratio, cash conversion cycle: not applicable to insurers (unclassified balance sheet). Net debt: not meaningful (cash is policyholder-supporting); GuruFocus cites cash-to-debt of 1.06x.
Cash flow and capital returns
Sources: edgar.tools (FY2025 OCF, aggregator); FY2025 earnings release and Feb 2026 6-K (buybacks/dividends). FY2024 buyback amount not captured (program began in 2024; cumulative repurchases added 1.24 USD to BVPS since inception per Q4 2025 call). Capex is negligible and not disclosed separately; "free cash flow" is not a meaningful metric for this business.
The negative FY2025 operating cash flow (aggregator data) is consistent with heavy claims payments in 2025 — California wildfire losses, Russia–Ukraine aviation settlements following the June 2025 English judgment, and reinsurance timing — and should be monitored for reversal in FY2026.
2026 capital returns:
Remaining authorization at 30 June 2026: 139.1M USD.
Key ratios
Derived. ROIC, asset turnover and cash conversion cycle are not meaningful for an insurer and are omitted. Aggregator TTM ratios (MarketInOut, July 2026): ROE 15.95%, ROA 2.92%, interest cover 8.99x.
Quarterly trajectory (most recent 10 quarters)
Sources: respective quarterly earnings releases (6-K) and press coverage (Insurance Business, Reinsurance News, Bermuda Re magazine). Q4 2025 combined ratio not captured; management cited a 37-point improvement versus Q4 2024 (implying ~91%, derived).
Trend commentary
Growth inflection and normalization. Premium growth was exceptional during 2022–2024 (GPW +18.6% in 2023 and +23.0% in 2024) as the group rode the hardest specialty and property-cat market in a generation, followed by deliberate deceleration to +7% in 2025 and a mid-single-digit target for 2026. New partners contributed about 4 points of 2025 growth, meaning core TFP-originated volume grew only ~3%. This is the clearest evidence that the partner-diversification strategy is now load-bearing for the top line.
Earnings volatility is the dominant feature. Combined ratios swung from 82.1% (2023) to 99.7% (2024) to 94.8% (2025), and quarterly from 79.0% to 128.0%. The 2024–25 deterioration was driven by two discrete items — Russia–Ukraine aviation lessor litigation (287.2M USD charge in Q4 2024, further adverse development of ~89M in Q2 2025) and the January 2025 California wildfires (160–190M USD estimate). Management argues that excluding the aviation litigation the group would have beaten its through-cycle targets every year since IPO (Q4 2025 call). The improvement in H1 2026 (combined ratio 93.1%, last-twelve-month 86.4%) supports the view that the book is cleaner, but Q2 2026's 162M USD of catastrophe and large losses shows the portfolio remains lumpy.
Investment income has plateaued. NII rose from 20.6M (2021) to 190.5M (2024) as short-duration assets repriced, then eased to 184M (2025) and ~44M per quarter in 2026 as buybacks shrank the asset base and yields stabilized (portfolio yield ~4.4–4.5%, duration 2.7 years, average rating A+).
Leverage stepped up then down. The June 2025 400M USD subordinated issue at 7.75% raised financing costs (47.7M in 2025 vs 33.8M in 2024) and debt-to-capital to ~27%; the April 2026 redemption of the 125M junior notes brought pro forma leverage to ~24%.
Book value compounding. Diluted BVPS rose from 16.24 USD (Jan 2023) to 26.56 USD (June 2026), a ~63% increase plus 1.20 USD of cumulative dividends, materially aided by repurchases below book (Q1 2026 buybacks alone added 0.75 USD per share per CFO).
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Group Entities
| Entity | Former name | Domicile / regulator | Role |
|---|---|---|---|
Pelagos Insurance Capital Limited | Fidelis Insurance Holdings Limited | Bermuda | Listed holding company |
Pelagos Insurance Capital Bermuda Limited ("PICB") | Fidelis Insurance Bermuda Limited (FIBL) | Bermuda; Class 4 insurer regulated by the BMA | Writes most reinsurance business plus insurance lines; sponsor of Herbie Re cat bonds |
"PICUK" (UK insurer) | Fidelis Underwriting Limited (FUL) | UK; PRA and FCA | UK/London-market insurance carrier |
Irish insurer | Fidelis Insurance Ireland DAC (FIID) | Ireland; Central Bank of Ireland | EU carrier (post-Brexit access) |
UK services company | FIHL (UK) Services Limited | UK | Service company |
Revenue by Segment
| Segment GPW (USD Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Insurance (restated basis) | — | 2,960.4 | 3,538.5 | 3,760 |
Reinsurance | 605.9 | 618.6 | 864.6 | 961 |
Specialty (legacy basis) | 1,616.2 | 2,241.3 | — | — |
Bespoke (legacy basis) | 796 | 720.4 | — | — |
Group total GPW | 3,018.1 | 3,579.0 | 4,403.1 | 4,720 |
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View Subscription PlansSegment Margins & Growth (%) and Revenue by Segment (%)
| Segment metric (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Insurance GPW YoY growth (%) | — | 19.5 | 6.3 |
Reinsurance GPW YoY growth (%) | 2.1 | 39.8 | 11.1 |
Insurance share of group GPW (%) | 82.7 | 80.4 | 79.6 |
Reinsurance share of group GPW (%) | 17.3 | 19.6 | 20.4 |
Insurance UW Income by Period
| Period | Insurance UW income (USD Mn) | Reinsurance UW income (USD Mn) | Group UW income (USD Mn) | Group combined ratio | Source |
|---|---|---|---|---|---|
Q3 2024 | — | 85.3 | 80.0 | 87.4% | Q3 2025 release |
Q3 2025 | Insurance loss ratio 38.8%; UW ratio 68.9% | 97.5 (loss ratio 2.6%) | 125.5 | 79.0% | Q3 2025 release; Reinsurance News |
Q1 2025 | 82.3 | — | (94.5) | 115.6% | Reinsurance News, May 2026 |
Q1 2026 | 147.9 | — | 76.2 | 86.6% | Reinsurance News, May 2026 |
Q2 2025 | 18.2 | — | (20.6) | 103.7% | Q2 2026 release |
Q2 2026 | 49.6 | — | 2.8 | 99.5% | Q2 2026 release (ScanX summary) |
“—” = not publicly disclosed.
Segment Revenue
| Metric (USD Mn) | Insurance | Reinsurance | Group |
|---|---|---|---|
GPW Q2 2026 | 913.5 | 383.3 (derived) | 1,296.8 |
GPW Q2 2025 | 902.3 | 316.5 (derived) | 1218.8 (derived) |
Net premiums earned Q2 2026 | 515 | 66 | 581 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross premiums written (USD Mn) | — | 3,018.1 | 3,579.0 | 4,403.1 | 4,720 |
Net premiums earned (USD Mn) | 1,160 | 1,501 | 1,832.6 | 2,258.1 | 2,294 |
Net investment income (USD Mn) | 20.6 | 40.7 | 119.5 | 190.5 | 184 |
Net investment gains/(losses) (USD Mn) | 13.5 | -33.7 | 4.9 | -28.6 | 22.8 |
Total revenue (USD Mn) | 1,195 | 1,509 | 3,596 | 2,420 | 2,501 |
Losses and LAE (USD Mn) | 696.8 | 830.2 | 698.8 | 1,156 | 1,090 |
Policy acquisition costs (USD Mn) | 250.1 | 384.4 | 723.8 | 999.7 | 990.1 |
Underwriting income (USD Mn) | — | 120.4 | 327.3 | 8.3 | 117.2 |
Operating income before interest (USD Mn) | 114.5 | 108.8 | 2,087 | 168.6 | 322.8 |
Interest / financing expense (USD Mn) | 35.4 | 35.5 | 35.5 | 33.8 | 47.7 |
Pre-tax income (USD Mn) | 78.7 | 80.1 | 2,047 | 136.4 | 275.6 |
Income tax expense/(benefit) (USD Mn) | 0.4 | 17.8 | -85.3 | 23.1 | 50.1 |
Net income (USD Mn) | 78.3 | 62.3 | 2,132.5 | 113.3 | 225.5 |
Operating net income (non-GAAP, USD Mn) | — | 89.5 | 398.9 | 137.0 | 205.2 |
Diluted EPS (USD) | — | — | 18.65 | 0.98 | 2.11 |
Operating EPS diluted (USD) | — | — | 3.49 | 1.18 | 1.92 |
Dividends per share declared (USD) | — | — | — | 0.40 | 0.50 |
Margin Analysis (%) and Financial Ratios (x)
| Ratio (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Combined ratio (%) | — | 91.9 | 82.1 | 99.7 | 94.8 |
Operating ROAE (company, %) | — | — | 18.8 | 5.6 | — |
Pre-tax margin on revenue (%) | 6.6 | 5.3 | 56.9 | 5.6 | 11.0 |
Operating (pre-interest) margin (%) | 9.6 | 7.2 | 58.0 | 7.0 | 12.9 |
Net margin (%) | 6.6 | 4.1 | 59.3 | 4.7 | 9.0 |
Interest coverage (x) | 3.2 | 3.1 | 58.8 | 5.0 | 6.8 |
Effective tax rate (%) | 0.5 | 22.2 | -4.2 | 16.9 | 18.2 |
Balance Sheet and Per-Share Data
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Total assets (USD Mn) | 10,000 | 11,800 | 12,440 |
Cash and invested assets (USD Mn) | 4,300 | 4,800 | — |
Shareholders' equity (USD Mn) | — | — | 2,400 |
Total capital – debt plus equity (USD Mn) | 3,000 | 3,000 | 3,255 |
Debt principal outstanding (USD Mn) | 455 | 455 | 855 |
Book value per diluted share (USD) | 20.69 | 21.79 | 24.61 |
Balance Sheet and Per-Share Data (31 Mar 2026–30 Jun 2026)
| Metric | 31 Mar 2026 | 30 Jun 2026 |
|---|---|---|
Total assets (USD Mn) | 13,710 | not captured |
Shareholders' equity (USD Mn) | 2,250 | ~2220 (derived: 26.56 × ~83.6M diluted shares) |
Book value per diluted share (USD) | 26.22 | 26.56 |
Debt-to-capital | 0.27 reported; 24.2% pro forma after April note redemption | not captured |
Dividends & Capital Returns
| Metric | FY2025 |
|---|---|
Operating cash flow (USD Mn) | -408.3 |
Share repurchases (USD Mn) | 261.4 |
Dividends paid to common (USD Mn) | 52.3 |
Total capital returned (USD Mn) | 313.7 |
Dividend History
| Period | Buybacks (USD Mn) | Shares repurchased | Avg price (USD) | Dividends (USD Mn) | Total returned (USD Mn) |
|---|---|---|---|---|---|
Q1 2026 | 219.4 | 11,544,855 | 19.00 | 13.3 (derived) | 232.7 |
Q2 2026 | 60.1 | ~2.78M (derived) | 21.60 | 12.5 | 72.6 |
H1 2026 | 279.5 | — | 19.51 | 25.8 | 305.3 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
ROE on year-end equity (%) | — | — | 9.4 |
ROA on net income (%) | 21.3 | 1.0 | 1.8 |
Debt / equity (x) | — | — | 0.36 |
Debt / total capital (%) | 15.2 | 15.2 | 26.3 |
GPW by Quarter
| Quarter | GPW (USD Mn) | Combined ratio (%) | Net income (USD Mn) | Diluted EPS (USD) | Operating EPS (USD) | BVPS diluted (USD) |
|---|---|---|---|---|---|---|
Q1 2024 | — | — | 81.2 (derived) | — | — | — |
Q2 2024 | ~1200 | 92.7 | 53.7 | 0.46 | 0.54 | 21.71 |
Q3 2024 | 741.9 | 87.4 | 100.6 | — | — | — |
Q4 2024 | 953.7 | 128.0 | -122.2 | -1.09 | -1.05 | 21.79 |
Q1 2025 | ~1720 | 115.6 | -42.5 | -0.38 | — | — |
Q2 2025 | ~1219 | 103.7 | 19.7 | — | — | — |
Q3 2025 | 797.5 | 79.0 | 130.5 | 1.24 | 1.21 | 23.29 |
Q4 2025 | 978 | — | 117.8 | 1.17 | 1.09 | 24.61 |
Q1 2026 | ~1840 | 86.6 | 108.0 | 1.15 | 0.94 | 26.22 |
Q2 2026 | 1,296.8 | 99.5 | 44.4 | 0.52 | 0.34 | 26.56 |
Region Overview
| Region | Evidence | Direction |
|---|---|---|
United States | Partner business in California property (E&S and admitted), U.S. mortgage credit via Euclid Mortgage, U.S. earthquake protection bought via Herbie Re 2026-1; California wildfire losses Q1 2025 | Growing via partners |
Middle East | TFP opened an Abu Dhabi office giving direct access to Middle Eastern business (2024 CEO Letter); ~60M USD of Middle East-related large losses in Q2 2026 | Growing, with event risk |
London / Lloyd's | Participation in TFP Syndicate 3123 (from 2024) | Growing |
Worldwide specialty | Marine, aviation, energy, political risk written on a global basis | Mixed; aviation de-risked |
Capital Markets
| Measure | Value | Source / date |
|---|---|---|
IPO price | 14.00 USD | Jun 2023 |
Latest verified close | ~25.31 USD | Simply Wall St, early Aug 2026 |
52-week range | 14.80 – 26.34 USD | Yahoo Finance, 30 Jul 2026 |
YTD 2026 share price return | 30.6% | Simply Wall St, early Aug 2026 |
1-year total shareholder return | 66.7% | Simply Wall St, early Aug 2026 |
3-year total shareholder return | 95.9% | Simply Wall St, early Aug 2026 |
5-year return | n/a (listed June 2023) | — |
Beta (5Y monthly) | 0.30 | Yahoo Finance |
Valuation Multiples
| Multiple | PLGO | Notes |
|---|---|---|
P/E (TTM) | ~7.0x | Yahoo, 30 Jul 2026 (EPS TTM 3.58) |
Price / diluted book | ~0.95x | Derived: 25.31 / 26.56 |
EV / EBITDA | ~4.5x | MarketInOut (not meaningful for insurers) |
EV / revenue | ~1.0x | MarketInOut |
Dividend yield | ~2.4% | 0.60 USD annualized |
Capital Markets — Average 1-year target
| Item | Value | Source |
|---|---|---|
Average 1-year target | 25.72 USD (Yahoo, Jul 2026); 22.73 USD (Fintel, Jun 2026) | Aggregators — note discrepancy |
UBS | Buy, target 29 USD | MarketScreener |
Citizens | target 28 USD | ScanX |
JPMorgan | Underweight, target 26 USD | ScanX |
Q3 2026 consensus | EPS 0.82 USD; revenue ~737M USD | Earnings Whispers |
Dividend per share (USD)
| Dividend per share (USD) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Declared per share | 0.40 | 0.50 | 0.45 |
Authorization by Date
| Date | Authorization | Notes |
|---|---|---|
| 2024 | Program initiated | Amount not captured |
6 Aug 2025 | 200M USD (renewed) | — |
20 Feb 2026 | 400M USD (increased) | 217.7M unused at 3 Mar 2026; 139.1M unused at 30 Jun 2026 |
Credit Ratings
| Agency | Rating (insurer financial strength) |
|---|---|
AM Best | A |
S&P Global | A- |
Moody's | A3 |
Capital Instruments
| Instrument | Principal (USD Mn) | Coupon | Maturity | Status |
|---|---|---|---|---|
Senior Notes | 330 | 4.875% | 30 Jun 2030 | Outstanding |
Fixed-Rate Reset Subordinated Notes | 400 | 7.750% | 15 Jun 2055 | Outstanding (issued Jun 2025) |
Fixed-Rate Reset Junior Subordinated Notes | 125 | 6.625% | 1 Apr 2041 | Redeemed Apr 2026 |
Analyst Conclusions
Management guidance (2026)
Mid-single-digit GPW growth; mid- to high-80s combined ratio; 13–15% through-the-cycle operating ROAE; continued capital returns. Q3 2026 Insurance NPE expected near Q2 levels, Reinsurance NPE 130–160M USD. Results due 11 November 2026.
Bull case
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Clean book post-litigation: with aviation exposure ~95% resolved, LTM combined ratio of 86.4% (Q2 2026) indicates underlying profitability consistent with 13–15% ROAE targets.
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Accretion engine: repurchasing stock at ~0.8–0.95x book compounds BVPS; 23% YoY BVPS growth including dividends at Q2 2026.
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Partner diversification and cycle-insulated credit reduce dependence on TFP and on property-cat pricing, supporting re-rating toward peers that trade above book.
Bear case
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Volatility persists: Q2 2026 operating ROAE of 5.1% and 162M USD of large losses show the portfolio's lumpiness; 2024–25 track record undermines target credibility.
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Softening market: with peers reporting negative rate indices, mid-single-digit growth and mid-80s combined ratio could prove optimistic.
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Structural partner economics: high acquisition costs (~32 points) and TFP's governance rights limit margin capture and create conflicts.
Catalysts and monitorables (next 12 months)
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Q3 2026 results (11 Nov 2026): hurricane season losses, reinsurance NPE, buyback pace.
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1 January 2027 renewals: pricing, retention, new partner additions.
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Prior-year reserve development trend.
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Use of remaining 139.1M USD buyback authorization and any new authorization.
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Rating agency actions; FY2026 20-F (expected ~March 2027).
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Completion of subsidiary rebranding; any change to TFP binder terms.
Analyst verdict
Pelagos Insurance Capital is a structurally unusual specialty carrier: a large, A-rated balance sheet with a tiny workforce, deploying capital through delegated partners led by The Fidelis Partnership. The rebrand from Fidelis is substantive rather than cosmetic — it marks the transition from a single-partner capacity vehicle toward a multi-partner capital allocator, a strategy that new partners have so far supported with roughly 4 points of growth.
The investment case rests on one tension. On one side, book value has compounded impressively — from 16.24 USD at separation to 26.56 USD by mid-2026 — helped by repurchases below book, including the full buyout of CVC's founding stake at 19 USD. The aviation litigation that distorted 2024–2025 appears largely resolved, and trailing twelve-month underwriting (86.4% combined ratio) is consistent with management's 13–15% ROAE target. On the other side, the company has repeatedly shown that its earnings are vulnerable to large and catastrophe losses, as the Q2 2026 miss demonstrated, and market conditions are softening across property-cat and specialty lines.
At roughly 0.95x book and ~7x trailing earnings, the market prices Pelagos for a mid-single-digit-to-low-teens ROE. If management can deliver even the low end of its target range through a full catastrophe season while continuing to buy back stock, the discount to higher-performing Bermuda peers should narrow. However, the persistent dependence on TFP — with its board designation right, profit-commission economics and dominant share of origination — remains the key structural risk, alongside reserve adequacy.
Verdict: A credible but higher-volatility value proposition.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Background / notes | Source |
|---|---|---|---|
Daniel (Dan) Burrows | Group Chief Executive Officer & Executive Director | Joined 2015; formerly Co-CEO Global Re Specialty at Aon Benfield and Global Head of Retrocession at Benfield; previously CEO UK within the group; re-elected Class III director April 2026 (term to 2029) | TheOfficialBoard; AGM 6-K |
Allan C. Decleir | Group Chief Financial Officer & Executive Director | Signs 6-K filings; leads capital management commentary | 6-K Aug 2026; earnings calls |
Jonny Strickle | Group Managing Director | Presents at investor conferences (KBW, Sept 2026); described rebrand rationale; earlier referenced as Group Chief Underwriting Officer in a Q3 2025 call summary (title history not fully verified) | Company releases; Reinsurance News |
Ian Houston | Chief Underwriting Officer | Led Herbie Re issuances (2025, 2026) | Company releases |
Michael Justin Pearson | Chief Risk Officer | Received 10,000-share award on 13 Oct 2026 (Form 4) | StockTitan / Investing.com |
Miranda Hunter | Head of Investor Relations | Hosts earnings calls | Earnings transcripts |
Executive Leadership Team by Director
| Director | Role / affiliation | Class / term | Notes |
|---|---|---|---|
Daniel Burrows | Group CEO | Class III, to 2029 AGM | Executive |
Allan Decleir | Group CFO | — | Executive director (Futu profile) |
Dana LaForge | Non-executive | Class III, to 2029 AGM | Re-elected April 2026 |
Dame Helena Morrissey | Non-executive | Class III, to 2029 AGM | Re-elected April 2026 |
Daniel Kilpatrick | Non-executive; Partner, Crestview | — | Crestview-affiliated |
Charles Collis | Non-executive | — | Listed by TheOfficialBoard |
Michael Davern | Non-executive; TFP designee | Class I, to 2027 AGM | Appointed 14 Sep 2026; Risk and Investment Committees; actuarial and underwriting background |
Charles Mathias (former) | TFP designee | Class I | Resigned effective 2 Aug 2026 |
Governance Overview
| Feature | Detail |
|---|---|
Classified board | Three classes (I, II, III) with staggered three-year terms |
Chair/CEO separation | Yes — non-executive chair separate from CEO (vendor profiles) |
Committees | Audit, Risk, Investment, Nominations & Corporate Governance (and compensation committee, standard) — Risk and Investment Committee membership confirmed in 6-K filings |
Shareholder nomination rights | TFP (TFP Intermediate Holdings II Limited) has a right under Bye-Law 54.3(a)(iv) to designate a director and its successor |
FPI status | Permitted to follow home-country practice on several NYSE governance requirements; audit committee must be fully independent |
AGM 2026 attendance | 72,748,329 shares represented (quorum) |
Major Shareholders
| Holder | Stake / evidence | Status |
|---|---|---|
Crestview Partners (Funds III & IV) | ~14.3–14.5M shares per 2025 Schedule 13G/A filings (~17% of ~85M shares on a derived basis) | — |
CVC Falcon Holdings | Fully exited March 2026 after sales to the company: 3.11M shares (Q2 2025, 50M USD), 4.08M (Q4 2025, 75M USD), 8.60M (Mar 2026, 163.3M USD) | Exited |
The Fidelis Partnership | Shareholder; participated pro rata in Q4 2025 CVC buyback (446,589 shares, 8.2M USD) | — |
Pine Brook | Founding investor | — |
Insider ownership | Not publicly disclosed in sources reviewed; Form 3/4 filings active (Sept–Oct 2026) | — |
Public float | ~46.4M shares (MarketInOut, July 2026) | Aggregator |
Competitive Landscape
Competitors by Segment
| Segment | Named competitors |
|---|---|
Specialty insurance (marine, energy, aviation, PV, cyber) | Lancashire Holdings, Beazley, Hiscox, Hamilton Insurance Group (Global Specialty), AXIS Capital, Arch Capital, Ascot (private), Lloyd's syndicates broadly |
Property catastrophe reinsurance / retro | RenaissanceRe, Everest Group, Arch, Hamilton Re, Lancashire, Conduit Re, SiriusPoint |
Structured credit / mortgage credit | Arch (mortgage), Everest, AXIS, specialty credit Lloyd's syndicates |
Capital-provider / MGA-capacity model | SiriusPoint (MGA platform), Accelerant (risk exchange), Hamilton, various fronting carriers |
Peer Comparison FY2025
| Metric FY2025 | Pelagos (PLGO) | Hamilton (HG) | Lancashire (LRE) | SiriusPoint (SPNT) |
|---|---|---|---|---|
GPW (USD Mn) | 4,720 | 2,900 | 2,259.3 | 3,688.5 |
GPW growth (%) | 7.1 | 20.7 | 5.1 | 16.1 |
Combined ratio (%) | 94.8 | 92.9 | 93.1 | 88.3 |
Net income (USD Mn) | 225.5 | 577 | 293.4 | 444 |
ROE / ROAE (%) | 9.4 (derived, YE equity) | 22 | 20.9 | 16.2 (operating) |
