Pelagos Insurance Capital (PLGO) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly value creation with a 7.2% increase in book value per diluted share to $26.22, driven by strong underwriting, disciplined capital allocation, and new underwriting partnerships.

• Gross premiums written grew 7% year-over-year to $1.84 billion, led by Insurance segment up 13% and Reinsurance up 7% (excluding prior year reinstatement premiums).

• Returned $233 million to shareholders through $219 million in share repurchases, including a major buyback from an original PE sponsor, and $13.3 million in dividends, increasing public float to 65%.

• Combined ratio improved to 86.6% from 115.6% in Q1 2025, reflecting improved underwriting and lower catastrophe losses.

• Net income reached $108 million ($1.15 per diluted share), reversing a loss in the prior year; operating net income was $88 million ($0.94 per diluted share).

Financial highlights

• Operating net income was $88 million ($0.94 per diluted share) for Q1 2026, up from a loss of $45 million in Q1 2025.

• Underwriting income was $76.2 million, compared to a $94.5 million loss in Q1 2025.

• Net investment income was $44 million, with 92% of the portfolio in cash and fixed maturity securities yielding 4.4%.

• Catastrophe and large losses fell to $72 million from $333 million year-over-year.

• Total assets reached $13.7 billion and shareholders’ equity was $2.3 billion as of March 31, 2026.

Outlook and guidance

• Management emphasizes continued focus on profitable underwriting, capital returns, and leveraging a flexible capital allocator model for growth.

• Expect net earned premiums in Q2 to be similar to Q1 for Insurance and $65–$75 million for Reinsurance.

• Maintain full-year outlook for mid-single digit top-line growth across the portfolio.

• Continue to target mid-40s loss ratio for the year, despite recent quarters running below that.

• Affirmed commitment to balancing growth, risk selection, and shareholder returns.