Pelagos Insurance Capital (PLGO) Q2 2026 earnings summary

Executive summary

• Gross premiums written grew 6.4% year-over-year to $1.3 billion in Q2 2026, driven by new underwriting partners and targeted capital deployment.

• Book value per diluted common share increased 23% year-over-year to $26.56, reflecting strong capital management and value creation.

• $73 million returned to shareholders in Q2 2026, including $32 million in privately negotiated transactions; $305 million returned in the first half of 2026.

• Underwriting discipline and capital allocation flexibility remain central to the strategy, supporting resilience and growth through market cycles.

• Net income was $44.4 million ($0.52 per diluted share) in Q2 and $152.4 million ($1.71 per diluted share) for the half year.

Financial highlights

• Operating net income was $29 million ($0.34 per diluted share) for Q2; $117 million ($1.31 per diluted share) for the half year.

• Combined ratio improved to 99.5% in Q2 (down 4 points year-over-year) and 93.1% for the half year (down 17 points year-over-year).

• Gross premiums written reached $1.3 billion in Q2 and $3.1 billion for the half year, up 6.4% and 6.6% year-over-year, respectively.

• Net investment income was $44 million in Q2, with 91% of the portfolio in cash and fixed maturity securities yielding 4.5%.

• Quarterly dividend maintained at $0.15 per share, payable in September.

Outlook and guidance

• Net earned premiums in Q3 expected to be similar to Q2 for insurance and $130–$160 million for reinsurance.

• Mid-single digit premium growth targeted for 2026, with seasonality expected to impact Q3 growth.

• Guidance maintained for 13–15% ROAE and mid to high 80s combined ratio through the cycle.

• Management emphasizes agility and capital strength to pursue attractive risk-adjusted returns amid evolving market conditions.

• No change in frequency or severity assumptions for large losses; guidance remains unchanged.