Pelagos Insurance Capital (NYSE: PLGO) swings to $108M Q1 profit with 86.6% combined ratio
Rhea-AI Filing Summary
Pelagos Insurance Capital delivered a markedly stronger first quarter of 2026, shifting to net income of $108.0M (earnings of $1.15 per diluted share) from a loss of $42.5M a year earlier. Operating net income was $88.4M, with Annualized Operating ROAE of 15.2%, compared with (7.6)% in 2025.
Gross premiums written rose 6.8% to $1.84B, while the combined ratio improved to 86.6% from 115.6%, reflecting underwriting income of $76.2M versus a prior loss of $94.5M. Catastrophe and large losses fell to $72.3M from $333.3M.
The company returned $232.7M to common shareholders, including $219.4M of share repurchases at an average price of $19.00 and dividends of $13.3M. Book value per diluted share reached $26.22 at March 31, 2026, up 7.2% including dividends from $24.61. Pelagos also rebranded from Fidelis Insurance Group, began trading on the NYSE as PLGO, and had its A (Excellent) financial strength rating affirmed by AM Best with a stable outlook.
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Insights
Pelagos posts a sharp underwriting turnaround, strong ROAE, and heavy capital returns.
Pelagos Insurance Capital moved from a Q1 2025 loss to Q1 2026 net income of $108.0M, driven mainly by underwriting. Gross premiums written increased 6.8% to $1.84B, while catastrophe and large losses fell to $72.3M from $333.3M, materially improving margins.
The combined ratio improved to 86.6% from 115.6%, and Annualized Operating ROAE reached 15.2%, a meaningful change from (7.6)%. Both Insurance and Reinsurance segments swung to underwriting income, with the Reinsurance segment benefitting from benign catastrophe experience and favorable prior-year development.
Capital deployment was aggressive: $219.4M of share repurchases and $13.3M of dividends lifted book value per diluted share to $26.22, up 7.2% including dividends. AM Best’s affirmation of the A (Excellent) rating with a stable outlook, alongside the PLGO rebrand, supports franchise stability as the company continues to refine its specialty insurance and reinsurance portfolio.
Key Figures
Net income: $108.0M
Operating net income: $88.4M
Gross premiums written: $1.84B
+5 more
8 metrics
Net income
$108.0M
Three months ended March 31, 2026
Operating net income
$88.4M
Three months ended March 31, 2026
Gross premiums written
$1.84B
Three months ended March 31, 2026; 6.8% growth year-on-year
Combined ratio
86.6%
Three months ended March 31, 2026, vs 115.6% in 2025
Annualized Operating ROAE
15.2%
Three months ended March 31, 2026, vs (7.6)% in 2025
Capital returned to shareholders
$232.7M
Q1 2026, including buybacks and dividends
Book value per diluted share
$26.22
At March 31, 2026; up from $24.61 at December 31, 2025
Catastrophe and large losses
$72.3M
Three months ended March 31, 2026; down from $333.3M in 2025
Key Terms
combined ratio, Annualized Operating ROAE, attritional loss ratio, The Fidelis Partnership commissions, +2 more
6 terms
combined ratio financial
"Combined ratio improved to 86.6%, an improvement of 29 points compared to 115.6% in the first quarter of 2025"
The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.
Annualized Operating ROAE financial
"Annualized Operating ROAE of 15.2%, an improvement of 23 points compared to the first quarter of 2025"
A percentage that shows how much profit a company’s core business activities generate for shareholders, measured against the average shareholder equity and adjusted to represent a full year. “Operating” excludes non-recurring gains or financing items, and “annualized” scales partial‑period results to a yearly rate. Investors use it to judge how efficiently equity is turned into recurring operating profit—like comparing the yearly crop from the same number of seeds—while being mindful of one‑off items that can distort the number.
attritional loss ratio financial
"the attritional loss ratio is a non-GAAP measure of the loss ratio excluding the impact of catastrophe and large losses"
The attritional loss ratio measures the share of an insurer’s regular, small-to-moderate claims—think routine repairs and medical bills—compared with the premiums earned to cover them. Investors use it to judge the predictable part of an insurer’s costs; a rising attritional loss ratio signals weaker underlying profitability or underpriced products, while a stable low ratio suggests steady, manageable claims and more reliable earnings.
The Fidelis Partnership commissions financial
"The following table summarizes The Fidelis Partnership commissions earned"
foreign private issuer regulatory
"FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16"
A foreign private issuer is a company organized outside the United States that meets tests showing it is primarily foreign-controlled and therefore qualifies for a different set of U.S. reporting rules. For investors, that means the company files less frequent or differently formatted disclosures with U.S. regulators and may follow home-country accounting and governance practices, so buying its stock is like dining at a well-reviewed restaurant that follows its home kitchen’s rules instead of the local menu — you get access but should check what standards apply.
non-GAAP financial measures financial
"This press release includes, and the related conference call will include, certain financial measures that are not calculated in accordance with generally accepted accounting principles"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Pelagos Insurance Capital (PLGO) perform financially in Q1 2026?
Pelagos Insurance Capital reported net income of $108.0 million in Q1 2026, compared with a $42.5 million loss a year earlier. Earnings were $1.15 per diluted share, and operating net income reached $88.4 million, reflecting a significantly stronger underwriting and earnings profile.
What were Pelagos Insurance Capital’s key underwriting metrics for Q1 2026?
Pelagos delivered a combined ratio of 86.6%, sharply better than 115.6% in Q1 2025, and generated underwriting income of $76.2 million. Catastrophe and large losses declined to $72.3 million from $333.3 million, supporting improved loss ratios in both Insurance and Reinsurance segments.
What is Pelagos Insurance Capital’s Annualized Operating ROAE for Q1 2026?
Annualized Operating Return on Average Common Equity was 15.2% for Q1 2026. This compares with (7.6)% in the prior-year period, indicating a substantially improved return profile based on operating net income relative to average common shareholders’ equity.
Did Pelagos Insurance Capital change its name or ticker in 2026?
Yes. Following shareholder approval on April 28, 2026, Fidelis Insurance Group rebranded as Pelagos Insurance Capital, effective May 11, 2026. The legal name changed on the same date, and the company began trading on the NYSE under the ticker PLGO on May 12, 2026.
What rating does AM Best assign to Pelagos Insurance Capital and its subsidiaries?
On April 1, 2026, AM Best affirmed Pelagos Insurance Capital’s financial strength rating of A (Excellent) and long-term issuer credit ratings of "a" (Excellent). The rating outlook is stable, reflecting strong capitalization and underwriting performance across the company’s insurance and reinsurance operations.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the Month of May 2026
Commission File Number: 001-41731
PELAGOS INSURANCE CAPITAL LIMITED
(Exact Name of Registrant as Specified in its Charter)
(Exact Name of Registrant as Specified in its Charter)
90 Pitts Bay Road, Wellesley House South, Pembroke, Bermuda, HM08
+1 441 279 2590
(Address of Principal Executive Office)
+1 441 279 2590
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐ No ☒
On May 13, 2026, Pelagos Insurance Capital Limited (the “Company”) issued a press release, and consolidated financial statements and the management’s discussion and analysis announcing results for the three months ended March 31, 2026, which are attached hereto as Exhibits 99.1 and 99.2, respectively, to this Report of Foreign Issuer on Form 6-K (this “Report”).
The Company is also making available a Company slide presentation, which is attached as Exhibit 99.3 to this Report.
This Report (including the information contained in Exhibit 99.2 to this Report, but excluding Exhibits 99.1 and 99.3 to this Report) shall be deemed to be filed with the Securities and Exchange Commission and is hereby incorporated by reference into the Company’s registration statements on Form S-8 (File No. 333-273105) and Form F-3 (File No. 333-287332), and any related prospectuses, as such registration statements and prospectuses may be amended from time to time, and to be part thereof from the date on which this Report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
EXHIBIT INDEX
Exhibit
99.1 | Press Release dated May 13, 2026 | ||||
99.2 | Consolidated Financial Statements and the Management’s Discussion and Analysis for the three months ended March 31, 2026 | ||||
99.3 | Presentation dated May 13, 2026 | ||||
Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PELAGOS INSURANCE CAPITAL LIMITED | |||||||||||
Dated: May 13, 2026 | By: | /s/ Allan C. Decleir | |||||||||
Name: | Allan C. Decleir | ||||||||||
Title: | Group Chief Financial Officer | ||||||||||
Pelagos Insurance Capital Reports Strong First Quarter 2026
Gross premiums written of $1.8 billion, growth of 6.8% from the first quarter of 2025
Combined Ratio of 86.6%, an improvement of 29 points compared with the first quarter of 2025
Annualized Operating ROAE of 15.2%, an improvement of 23 points compared with the first quarter of 2025
First Quarter 2026 Highlights:
•Gross premiums written of $1.8 billion; growth of 6.8% from the first quarter of 2025
•Combined ratio improved to 86.6%, an improvement of 29 points compared to 115.6% in the first quarter of 2025
•Annualized operating return on average common equity (“Annualized Operating ROAE”) of 15.2%, an improvement of 23 points compared to the first quarter of 2025
•Total capital returned to common shareholders in the quarter of $232.7 million, including common share repurchases of $219.4 million, at an average price of $19.00 per share, and dividends of $13.3 million
•Net income of $108.0 million, or $1.15 per diluted common share, and operating net income of $88.4 million, or $0.94 per diluted common share
•Book value per diluted common share was $26.22 at March 31, 2026, an increase of 7.2% including dividends from December 31, 2025, of $24.61
Pembroke, Bermuda, May 13, 2026 - Pelagos Insurance Capital Limited, formerly known as Fidelis Insurance Holdings Limited (“Pelagos” or “PLGO” or the “Company”) (NYSE: PLGO) announced today its financial results for the first quarter ended March 31, 2026.
Dan Burrows, Group Chief Executive Officer of Pelagos Insurance Capital, commented: “As our first quarter results demonstrate, our unique capital allocator model and expanding network of underwriting partners are driving profitable growth. We reported an increase in gross premiums written of 6.8%, a combined ratio of 86.6%, and an annualized operating ROAE of 15.2%.
"We remain focused on balancing profitable underwriting with meaningful capital returns. During the quarter, we returned $219 million through continued share repurchases. We also grew book value per diluted share including dividends by more than 7%, representing our strongest ever quarter of book value growth. At a time when market access and risk selection matter more than ever, we are well positioned to continue delivering significant value to shareholders."
First Quarter 2026 Consolidated Results | ||
•Net income for the three months ended March 31, 2026, was $108.0 million, or $1.15 per diluted common share. Operating net income was $88.4 million, or $0.94 per diluted common share.
•Underwriting income for the three months ended March 31, 2026, was $76.2 million and the combined ratio was 86.6%, compared to an underwriting loss of $94.5 million and a combined ratio of 115.6% for the three months ended March 31, 2025.
•Catastrophe and large losses for the three months ended March 31, 2026, were $72.3 million compared to $333.3 million in the prior year period.
•Net favorable prior year loss reserve development of $3.1 million compared to net favorable development of $40.8 million in the prior year period.
•Net investment income of $43.7 million compared to $49.5 million in the prior year period.
Pelagos Insurance Capital Limited
Wellesley House South | 90 Pitts Bay Road | HM08 | Pembroke | Bermuda
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•Net realized and unrealized investment losses for the three months ended March 31, 2026 were $1.6 million, which included $0.5 million of net realized and unrealized gains on other investments.
•Annualized Operating ROAE of 15.2% for the three months ended March 31, 2026, compared to (7.6)% in the prior year period.
•Book value per diluted common share was $26.22 at March 31, 2026 (dilutive shares at March 31, 2026 of 449,251), compared to $24.61 at December 31, 2025.
The following table details key financial indicators in evaluating our performance for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| ($ in millions, except per share data) | |||||||||||
| Net income/(loss) | $ | 108.0 | $ | (42.5) | |||||||
Operating net income/(loss)(1) | 88.4 | (45.3) | |||||||||
| Gross premiums written | 1,840.4 | 1,722.9 | |||||||||
| Net premiums earned | 568.5 | 603.0 | |||||||||
| Catastrophe and large losses | 72.3 | 333.3 | |||||||||
| Net favorable prior year reserve development | 3.1 | 40.8 | |||||||||
| Net investment income | 43.7 | 49.5 | |||||||||
| Net realized and unrealized investment gains/(losses) | $ | (1.6) | $ | 5.9 | |||||||
| Combined ratio | 86.6 | % | 115.6 | % | |||||||
Annualized Operating ROAE(1) | 15.2 | % | (7.6 | %) | |||||||
| Earnings/(loss) per diluted common share | $ | 1.15 | $ | (0.38) | |||||||
Operating EPS(1) | $ | 0.94 | $ | (0.41) | |||||||
________________
(1) See definition and reconciliation in “Non-GAAP Financial Measures Reconciliation”
| Segment Results | ||
Insurance Segment
The following table is a summary of our Insurance segment’s underwriting results:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Gross premiums written | $ | 1,436.1 | $ | 1,267.0 | $ | 169.1 | |||||||||||
| Reinsurance premium ceded | (432.1) | (458.1) | 26.0 | ||||||||||||||
| Net premiums written | 1,004.0 | 808.9 | 195.1 | ||||||||||||||
| Net premiums earned | 514.9 | 511.9 | 3.0 | ||||||||||||||
| Losses and loss adjustment expenses | (227.8) | (281.4) | 53.6 | ||||||||||||||
| Policy acquisition expenses | (139.2) | (148.2) | 9.0 | ||||||||||||||
| Underwriting income | $ | 147.9 | $ | 82.3 | $ | 65.6 | |||||||||||
| Loss ratio | 44.2 | % | 55.0 | % | (10.8) pts | ||||||||||||
| Policy acquisition expense ratio | 27.0 | % | 29.0 | % | (2.0) pts | ||||||||||||
| Underwriting ratio | 71.2 | % | 84.0 | % | (12.8) pts | ||||||||||||
For the three months ended March 31, 2026, our GPW increased primarily driven by growth from newly onboarded partnerships in several lines of business. These increases were 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 months ended March 31, 2026, our net premiums earned ("NPE") remained consistent with the prior year period.
Our policy acquisition expense ratio for the three months ended March 31, 2026 decreased due to changes in the mix of business written and ceded.
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The following table is a summary of our Insurance segment’s losses and loss adjustment expenses:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Attritional losses | $ | 140.8 | $ | 122.6 | $ | 18.2 | |||||||||||
| Catastrophe and large losses | 71.8 | 166.3 | (94.5) | ||||||||||||||
| (Favorable)/adverse prior year development | 15.2 | (7.5) | 22.7 | ||||||||||||||
| Losses and loss adjustment expenses | $ | 227.8 | $ | 281.4 | $ | (53.6) | |||||||||||
| Loss ratio - attritional losses | 27.3 | % | 23.9 | % | 3.4 pts | ||||||||||||
| Loss ratio - catastrophe and large losses | 13.9 | % | 32.6 | % | (18.7) pts | ||||||||||||
| Loss ratio - prior accident years | 3.0 | % | (1.5) | % | 4.5 pts | ||||||||||||
| Loss ratio | 44.2 | % | 55.0 | % | (10.8) pts | ||||||||||||
For the three months ended March 31, 2026, our loss ratio in the Insurance segment improved by 10.8 points compared to the prior year period.
The attritional loss ratio for the three months ended March 31, 2026 increased by 3.4 points compared to the prior year period due to a higher level of small losses in the current year period.
The catastrophe and large losses for the three months ended March 31, 2026, were primarily attributable to loss events in various lines of business including Other Insurance, Marine, Property and Political Risk, Violence & Terror. 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 smaller losses in various lines of business including Other Insurance, Property and Aviation & Aerospace.
For the three months ended March 31, 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 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:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Gross premiums written | $ | 404.3 | $ | 455.9 | $ | (51.6) | |||||||||||
| Reinsurance premium ceded | (228.0) | (238.4) | 10.4 | ||||||||||||||
| Net premiums written | 176.3 | 217.5 | (41.2) | ||||||||||||||
| Net premiums earned | 53.6 | 91.1 | (37.5) | ||||||||||||||
| Losses and loss adjustment expenses | 4.0 | (147.8) | 151.8 | ||||||||||||||
| Policy acquisition expenses | (13.3) | (19.7) | 6.4 | ||||||||||||||
| Underwriting income/(loss) | $ | 44.3 | $ | (76.4) | $ | 120.7 | |||||||||||
| Loss ratio | (7.5) | % | 162.2 | % | (169.7) pts | ||||||||||||
| Policy acquisition expense ratio | 24.8 | % | 21.6 | % | 3.2 pts | ||||||||||||
| Underwriting ratio | 17.3 | % | 183.8 | % | (166.5) pts | ||||||||||||
For the three months ended March 31, 2026, GPW decreased primarily due to reinstatement premiums in the prior year period related to the California wildfires, while NPE decreased due to the acceleration of earnings on contracts with exposure to the California wildfires in the prior year period.
Our policy acquisition expense ratio for the three months ended March 31, 2026 increased primarily due to changes in ceded premium and commissions earned from outwards reinsurance partners.
3
The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Attritional losses | $ | 13.8 | $ | 14.1 | $ | (0.3) | |||||||||||
| Catastrophe and large losses | 0.5 | 167.0 | (166.5) | ||||||||||||||
| Favorable prior year development | (18.3) | (33.3) | 15.0 | ||||||||||||||
| Losses and loss adjustment expenses | $ | (4.0) | $ | 147.8 | $ | (151.8) | |||||||||||
| Loss ratio - attritional losses | 25.7 | % | 15.5 | % | 10.2 pts | ||||||||||||
| Loss ratio - catastrophe and large losses | 0.9 | % | 183.3 | % | (182.4) pts | ||||||||||||
| Loss ratio - prior accident years | (34.1) | % | (36.6) | % | 2.5 pts | ||||||||||||
| Loss ratio | (7.5) | % | 162.2 | % | (169.7) pts | ||||||||||||
The attritional loss ratio for the three months ended March 31, 2026, increased by 10.2 points compared to the prior year period. Although losses were similar in each period, the prior year period had higher NPE due to the reinstatement premiums discussed above, reducing the prior period loss ratio.
There were no material catastrophe and large losses for the three months ended March 31, 2026. The catastrophe and large losses for the three months ended March 31, 2025 were attributable to the California wildfires.
For the three months ended March 31, 2026, favorable prior year development was driven by positive development on catastrophe losses and benign prior year attritional experience.
Other Underwriting Expenses | ||
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:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Ceding commission expense | $ | 76.6 | $ | 78.4 | $ | (1.8) | |||||||||||
| Profit commission expense | 10.2 | — | 10.2 | ||||||||||||||
| Total commissions | $ | 86.8 | $ | 78.4 | $ | 8.4 | |||||||||||
| Ceding commission expense ratio | 13.5 | % | 13.0 | % | 0.5 pts | ||||||||||||
| Profit commission expense ratio | 1.8 | % | — | % | 1.8 pts | ||||||||||||
| The Fidelis Partnership commissions ratio | 15.3 | % | 13.0 | % | 2.3 pts | ||||||||||||
For the three months ended March 31, 2026, the increase in The Fidelis Partnership commissions ratio was driven by improved performance in the current year period compared to the prior year period.
General and Administrative Expenses
For the three months ended March 31, 2026, general and administrative expenses were $29.2 million (2025: $22.0 million). The increase was primarily due to higher compensation expense, driven by increased headcount and improved performance compared to the prior year period, which resulted in higher variable compensation accruals in the current year. The increase was also due to higher IT expenses, as we made strategic investments in enhancing our infrastructure and technology.
4
| Investments | ||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Net investment income | $ | 43.7 | $ | 49.5 | $ | (5.8) | |||||||||||
| Net realized and unrealized gains on other investments | 0.5 | 1.1 | (0.6) | ||||||||||||||
| Net realized and unrealized investment gains/(losses) excluding other investments | (2.1) | 4.8 | (6.9) | ||||||||||||||
Net investment return | $ | 42.1 | $ | 55.4 | $ | (13.3) | |||||||||||
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 months ended March 31, 2026, we generated net investment income of $43.7 million at an average yield of 4.2% (2025: $49.5 million at an average yield of 4.5%). The decrease in our net investment income for the three months ended March 31, 2026, was driven by lower investable assets compared to the prior year period as well as a lower yield achieved on the fixed income portfolio and cash balances.
Net Realized and Unrealized Gains/(Losses) on Other Investments
Net realized and unrealized gains 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 March 31, 2026, compared to the prior year period, was driven by a negative change in the NAV on our fixed income funds as interest rates moved higher in the quarter.
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. The decrease in net realized and unrealized investment gains/(losses) excluding other investments for the three months ended March 31, 2026, resulted from movements in our provision for current expected credit losses of $(2.2) million (2025: $4.0 million).
Other Items | ||
Share Repurchases
In the three months ended March 31, 2026, we repurchased 11,544,855 common shares for an aggregate of $219.4 million, excluding expenses, at an average price of $19.00 per common share, pursuant to our share repurchase authorization. Included in common shares repurchased for the three months ended March 31, 2026 were 8,597,170 common shares from CVC Falcon Holdings Limited for an aggregate of $163.3 million through a privately negotiated transaction. Subsequent to March 31, 2026 and through the period ended May 8, 2026, we repurchased 705,752 common shares at an aggregate cost of $14.4 million and an average price of $20.44 per common share.
Dividend Announcement
On May 7, 2026, we announced that our Board of Directors has approved and declared a dividend of $0.15 per share, payable on June 26, 2026, to common shareholders of record on June 15, 2026.
Pelagos Insurance Capital (formerly Fidelis Insurance Group) Rebrand
Following shareholder approval at the Annual General Meeting on April 28, 2026, Fidelis Insurance Group has rebranded as Pelagos Insurance Capital, effective May 11, 2026. The legal name change became effective on the same date and the Company begun trading on the New York Stock Exchange under its new name and ticker symbol, “PLGO,” on May 12, 2026.
5
AM Best
On April 1, 2026, AM Best affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of "a" (Excellent) for the Company and its operating subsidiaries. The outlook for these ratings is stable, reflecting strong capitalization and underwriting performance.
Conference Call
Pelagos will host a teleconference to discuss its financial results on Thursday, May 14, 2026, at 9:00 a.m. Eastern time. The call can be accessed by dialing 1-800-715-9871 (U.S. and Canada callers), or 1-646-307-1963 (international callers), and entering the passcode 8797451 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 makes the connections that matter in specialty risk.
For additional information about Pelagos Insurance Capital, our people, products and our insurer financial strength ratings please visit our website at www.pelagosinsurancecapital.com.
Non-GAAP Financial Measures
This press release includes, and the related conference call will include, certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) including Operating net income, Operating EPS and Operating ROAE, attritional loss ratio and catastrophe and large loss ratio, and therefore are non-GAAP financial measures. Reconciliations of such measures to the most comparable U.S. GAAP figures are included in the attached financial information in accordance with Regulation G.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” which include all statements that do not relate solely to historical or current facts and which may concern our strategy, plans, targets, projections or intentions and are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “continue,” “grow,” “opportunity,” “create,” “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “target,” “tracking,” “expect,” “evolve,” “achieve,” “remain,” “proactive,” “pursue,” “optimize,” “emerge,” “drive,” “enable,” “allow,” “build,” “looking ahead,” “commit,” “strategy,” “predict,” “potential,” “assumption,” “future,” “likely,” “may,” “should,” “could,” “will,” “position” and the negative of these and also similar terms and phrases. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are qualified by these cautionary statements, because they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, targets, projections, anticipated events and trends, the economy and other future conditions, but are subject to significant business, economic, legal and competitive uncertainties, many of which are beyond our control or are subject to change. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
Forward-looking statements contained therein may include, among others, statements in relation to: targeted operating results such as return on equity, net income and earnings per share, underwriting profitability and target combined, loss and expense ratios, growth in gross premiums written and book value per share; our expectations regarding current settlement discussions, court cases and current settlement and litigation strategies; our expectations regarding our business, including the industries we operate in, and capital management strategy and the performance of our business; information regarding our estimates for catastrophes, claims and other loss events; our expectations regarding our partnerships and strategic agreements, including The Fidelis Partnership; anticipated market conditions, pricing cycles,
6
and competitive positioning; sustainability and renewable energy initiatives; use of and exposure to emerging technologies; our management team and human capital; our share price performance and valuation; and our regulatory or listing status; our liquidity and capital resources; and expectations of the effect on our results of operations and financial condition of our loss claims, litigation, climate change impacts, contingent liabilities and governmental and regulatory investigations and proceedings.
Our actual results in the future could differ materially from those anticipated in any forward-looking statements as a result of changes in assumptions, risks, uncertainties and other factors impacting us, many of which are outside our control, including:
•the inherent uncertainty, volatility and unpredictability of underwriting insurance and reinsurance risks, including low-frequency, high-severity events and natural and non-natural catastrophic events;
•the frequency and severity of claims and loss activity, including the impact of climate change, inflation (including social inflation), emerging claims trends and complex causation or coverage issues;
•limitations in available data and the reliability of pricing, accumulation, catastrophe and other analytical models used to estimate losses and exposures;
•the adequacy of our loss reserves and the actual development of losses and loss adjustment expenses;
•macroeconomic, geopolitical and market conditions, sanctions and other global developments;
•cyclical changes in the insurance and reinsurance industry, including premium rate movements, competitive pressures and consolidation;
•our ability to implement our strategy, identify and execute growth opportunities and compete effectively;
•any downgrades, potential downgrades or other negative actions by rating agencies;
•the availability, affordability and collectability of reinsurance and retrocessional protections;
•litigation, arbitration and regulatory proceedings and the inherent uncertainty of their outcomes;
•our reliance on TFP and other third parties for underwriting, claims handling and other services, and the effectiveness of our risk management and oversight framework;
•operational risks, including system failures, cybersecurity incidents, data protection breaches and risks associated with emerging technologies, including artificial intelligence, and evolving regulatory requirements applicable thereto;
•risks relating to our investment portfolio, including market volatility, interest rate movements, credit risk, liquidity risk and currency fluctuations;
•our ability to access capital and liquidity, including through letters of credit and other financing arrangements, and our status as a holding company dependent on dividends and other distributions from our operating subsidiaries;
•regulatory developments, including changes in capital regimes, increased supervisory scrutiny and compliance with economic and trade sanctions, anti-bribery and similar laws;
•tax developments, including changes in tax laws, interpretations and international tax initiatives;
•our ability to attract and retain key personnel;
•our potential inability to pay dividends or distributions in accordance with our dividend policy;
•our ability to maintain the listing of our common shares on the NYSE or another national securities exchange;
•the Company’s status as a foreign private issuer; and
•the other risks, uncertainties and other factors disclosed under the section titled ‘Risk Factors’ in our Annual Report on Form 20-F filed with the SEC on March 5, 2026, as well as subsequent current reports and other filings with the SEC available electronically at www.sec.gov.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in our filings with the SEC. All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to therein. The forward-looking statements contained
7
herein are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control and which could cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements, expectations, beliefs and projections made by us in this press release speak only as of the date referenced on such date on which they are made and are expressed in good faith and our management believes that there is reasonable basis for them, based only on information currently available to us. There can be no assurance that management’s expectations, beliefs, and projections will be achieved and actual results may vary materially from what is expressed or indicated by the forward-looking statements. Furthermore, our past performance, and that of our management team and of TFP, should not be construed as a guarantee of future performance. Except to the extent required by applicable laws and regulations, we undertake no obligation to update or revise any forward-looking statements contained in the above discussion, whether as a result of new information, future developments or otherwise. In light of these risks and uncertainties, you should keep in mind that any event described in a forward-looking statement might not occur.
Pelagos Insurance Capital Investor Contact:
Pelagos Insurance Capital
Miranda Hunter
+1 (441) 279 2561
Pelagos Insurance Capital Media Contact:
Rein4ce
Sarah Hills
+44 (0)7718 882011
8
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Balance Sheets
At March 31, 2026 (Unaudited) and December 31, 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: $2,639.9, 2025: $2,590.6 (net of allowance for credit losses of $2.8, 2025: $0.6)) | $ | 2,663.3 | $ | 2,640.4 | |||||||
Short-term investments, available-for-sale, at fair value (amortized cost: $167.0, 2025: $111.3 (net of allowance for credit losses of $nil, 2025: $nil)) | 166.9 | 111.3 | |||||||||
| Other investments, at fair value | 607.5 | 485.7 | |||||||||
| Total investments | 3,437.7 | 3,237.4 | |||||||||
| Cash and cash equivalents | 895.4 | 873.0 | |||||||||
| Restricted cash and cash equivalents | 166.5 | 374.6 | |||||||||
| Accrued investment income | 23.5 | 28.3 | |||||||||
Premiums and other receivables (net of allowance for credit losses of $14.6, 2025: $15.8) | 4,019.3 | 3,322.2 | |||||||||
Amounts due from The Fidelis Partnership (net of allowance for credit losses of $nil, 2025: $nil) | 207.1 | 174.8 | |||||||||
| Deferred reinsurance premiums | 1,761.0 | 1,441.5 | |||||||||
Reinsurance balances recoverable on paid losses (net of allowance for credit losses of $0.3, 2025: $0.3) | 419.9 | 438.7 | |||||||||
Reinsurance balances recoverable on reserves for losses and loss adjustment expenses (net of allowance for credit losses of $0.9, 2025: $0.9) | 1,243.8 | 1,195.6 | |||||||||
Deferred policy acquisition costs (includes The Fidelis Partnership deferred commissions of $273.3, 2025: $243.4) | 1,372.1 | 1,085.0 | |||||||||
| Other assets | 164.8 | 272.7 | |||||||||
| Total assets | $ | 13,711.1 | $ | 12,443.8 | |||||||
| Liabilities and shareholders' equity | |||||||||||
| Liabilities | |||||||||||
| Reserves for losses and loss adjustment expenses | $ | 2,748.0 | $ | 2,607.1 | |||||||
| Unearned premiums | 5,315.0 | 4,384.8 | |||||||||
| Reinsurance balances payable | 1,910.8 | 1,659.6 | |||||||||
| Amounts due to The Fidelis Partnership | 551.1 | 457.7 | |||||||||
| Long term debt | 843.5 | 843.2 | |||||||||
| Other liabilities | 88.8 | 91.8 | |||||||||
| Total liabilities | 11,457.2 | 10,044.2 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders' equity | |||||||||||
| Common shares ($0.01 par, issued and outstanding: 85,496,757, 2025: 96,651,534) | 0.9 | 1.0 | |||||||||
| Additional paid-in capital | 1,466.6 | 1,685.6 | |||||||||
| Accumulated other comprehensive income | 15.6 | 37.1 | |||||||||
| Retained earnings | 770.8 | 675.9 | |||||||||
| Total shareholders' equity | 2,253.9 | 2,399.6 | |||||||||
| Total liabilities and shareholders' equity | $ | 13,711.1 | $ | 12,443.8 | |||||||
9
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Statements of Income and Comprehensive Income (Unaudited)
For the three months ended March 31, 2026 and 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| Three Months Ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Revenues | |||||||||||
| Gross premiums written | $ | 1,840.4 | $ | 1,722.9 | |||||||
| Reinsurance premiums ceded | (660.1) | (696.5) | |||||||||
| Net premiums written | 1,180.3 | 1,026.4 | |||||||||
| Change in net unearned premiums | (611.8) | (423.4) | |||||||||
| Net premiums earned | 568.5 | 603.0 | |||||||||
| Net investment income | 43.7 | 49.5 | |||||||||
| Net realized and unrealized investment gains/(losses) | (1.6) | 5.9 | |||||||||
| Total revenues | 610.6 | 658.4 | |||||||||
| Expenses | |||||||||||
| Losses and loss adjustment expenses | 223.8 | 429.2 | |||||||||
| Policy acquisition expenses (includes The Fidelis Partnership commissions of $86.8 (2025: $78.4)) | 239.3 | 246.3 | |||||||||
| General and administrative expenses | 29.2 | 22.0 | |||||||||
| Corporate and other expenses | 0.4 | — | |||||||||
| Net foreign exchange losses | 0.1 | 2.5 | |||||||||
| Financing costs | 14.7 | 8.7 | |||||||||
| Total expenses | 507.5 | 708.7 | |||||||||
| Income/(loss) before income taxes | 103.1 | (50.3) | |||||||||
| Income tax benefit | 4.9 | 7.8 | |||||||||
| Net income/(loss) | $ | 108.0 | $ | (42.5) | |||||||
| Other comprehensive income/(loss) | |||||||||||
| Unrealized gains/(losses) on available-for-sale investments | $ | (26.5) | $ | 25.7 | |||||||
| Reclassification of net realized losses/(gains) recognized in net income | — | (0.8) | |||||||||
| Income tax (expense)/benefit, all of which relates to unrealized gains/(losses) on available-for-sale investments | 5.0 | (7.4) | |||||||||
| Total other comprehensive income/(loss) | (21.5) | 17.5 | |||||||||
| Comprehensive income/(loss) | $ | 86.5 | $ | (25.0) | |||||||
| Per share data | |||||||||||
| Earnings/(loss) per common share | |||||||||||
| Earnings/(loss) per common share | $ | 1.16 | $ | (0.38) | |||||||
| Earnings/(loss) per diluted common share | $ | 1.15 | $ | (0.38) | |||||||
| Weighted average common shares outstanding | 92,961,003 | 111,543,154 | |||||||||
| Weighted average diluted common shares outstanding | 93,647,444 | 111,543,154 | |||||||||
10
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Segment Data (Unaudited)
For the three months ended March 31, 2026 and 2025
(Expressed in millions of U.S. dollars)
| Three months ended March 31, 2026 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 1,436.1 | $ | 404.3 | $ | — | $ | 1,840.4 | |||||||||||||||
| Net premiums written | 1,004.0 | 176.3 | — | 1,180.3 | |||||||||||||||||||
| Net premiums earned | 514.9 | 53.6 | — | 568.5 | |||||||||||||||||||
| Losses and loss adjustment expenses | (227.8) | 4.0 | — | (223.8) | |||||||||||||||||||
| Policy acquisition expenses | (139.2) | (13.3) | (86.8) | (239.3) | |||||||||||||||||||
| General and administrative expenses | — | — | (29.2) | (29.2) | |||||||||||||||||||
| Underwriting income | 147.9 | 44.3 | 76.2 | ||||||||||||||||||||
| Net investment income | 43.7 | ||||||||||||||||||||||
| Net realized and unrealized investment losses | (1.6) | ||||||||||||||||||||||
| Corporate and other expenses | (0.4) | ||||||||||||||||||||||
| Net foreign exchange losses | (0.1) | ||||||||||||||||||||||
| Financing costs | (14.7) | ||||||||||||||||||||||
| Income before income taxes | 103.1 | ||||||||||||||||||||||
| Income tax benefit | 4.9 | ||||||||||||||||||||||
| Net income | $ | 108.0 | |||||||||||||||||||||
| Losses and loss adjustment expenses incurred - current year | (212.6) | (14.3) | $ | (226.9) | |||||||||||||||||||
| Losses and loss adjustment expenses incurred - prior accident years | (15.2) | 18.3 | 3.1 | ||||||||||||||||||||
| Losses and loss adjustment expenses incurred - total | $ | (227.8) | $ | 4.0 | $ | (223.8) | |||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | 41.2 | % | 26.6 | % | 39.9 | % | |||||||||||||||||
| Loss ratio - prior accident years | 3.0 | % | (34.1 | %) | (0.5 | %) | |||||||||||||||||
| Loss ratio - total | 44.2 | % | (7.5 | %) | 39.4 | % | |||||||||||||||||
| Policy acquisition expense ratio | 27.0 | % | 24.8 | % | 26.8 | % | |||||||||||||||||
| Underwriting ratio | 71.2 | % | 17.3 | % | 66.2 | % | |||||||||||||||||
| The Fidelis Partnership commissions ratio | 15.3 | % | |||||||||||||||||||||
| General and administrative expense ratio | 5.1 | % | |||||||||||||||||||||
| Combined ratio | 86.6 | % | |||||||||||||||||||||
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
11
| Three months ended March 31, 2025 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 1,267.0 | $ | 455.9 | $ | — | $ | 1,722.9 | |||||||||||||||
| Net premiums written | 808.9 | 217.5 | — | 1,026.4 | |||||||||||||||||||
| Net premiums earned | 511.9 | 91.1 | — | 603.0 | |||||||||||||||||||
| Losses and loss adjustment expenses | (281.4) | (147.8) | — | (429.2) | |||||||||||||||||||
| Policy acquisition expenses | (148.2) | (19.7) | (78.4) | (246.3) | |||||||||||||||||||
| General and administrative expenses | — | — | (22.0) | (22.0) | |||||||||||||||||||
| Underwriting income/(loss) | 82.3 | (76.4) | (94.5) | ||||||||||||||||||||
| Net investment income | 49.5 | ||||||||||||||||||||||
| Net realized and unrealized investment gains | 5.9 | ||||||||||||||||||||||
| Net foreign exchange losses | (2.5) | ||||||||||||||||||||||
| Financing costs | (8.7) | ||||||||||||||||||||||
| Loss before income taxes | (50.3) | ||||||||||||||||||||||
| Income tax benefit | 7.8 | ||||||||||||||||||||||
| Net loss | $ | (42.5) | |||||||||||||||||||||
| Losses and loss adjustment expenses incurred - current year | (288.9) | (181.1) | $ | (470.0) | |||||||||||||||||||
| Losses and loss adjustment expenses incurred - prior accident years | 7.5 | 33.3 | 40.8 | ||||||||||||||||||||
| Losses and loss adjustment expenses incurred - total | $ | (281.4) | $ | (147.8) | $ | (429.2) | |||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | 56.5 | % | 198.8 | % | 78.0 | % | |||||||||||||||||
| Loss ratio - prior accident years | (1.5 | %) | (36.6 | %) | (6.8 | %) | |||||||||||||||||
| Loss ratio - total | 55.0 | % | 162.2 | % | 71.2 | % | |||||||||||||||||
| Policy acquisition expense ratio | 29.0 | % | 21.6 | % | 27.8 | % | |||||||||||||||||
| Underwriting ratio | 84.0 | % | 183.8 | % | 99.0 | % | |||||||||||||||||
| The Fidelis Partnership commissions ratio | 13.0 | % | |||||||||||||||||||||
| General and administrative expense ratio | 3.6 | % | |||||||||||||||||||||
| Combined ratio | 115.6 | % | |||||||||||||||||||||
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
12
PELAGOS INSURANCE CAPITAL LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
Attritional loss ratio and catastrophe and large loss ratio: the attritional loss ratio is a non-GAAP measure of the loss ratio excluding the impact of catastrophe and large losses. Management believes that the attritional loss ratio is a performance measure that is useful to investors as it excludes losses that are not as predictable as to timing and amount. The attritional loss ratio is calculated by dividing the losses and loss adjustment expenses, excluding catastrophe and large losses and prior year development, by NPE. The catastrophe and large loss ratio is a non-GAAP measure that is calculated by dividing the current year catastrophe and large loss expense by NPE. The reconciliation of these non-GAAP measures is included in each segment’s summary of losses and loss adjustment expenses table.
Operating net income/(loss): is a non-GAAP financial measure of our performance which does not consider the impact of certain non-recurring and other items that may not properly reflect the ordinary activities of our business, its performance or its future outlook. This measure is calculated as net income/(loss) excluding net realized and unrealized investment gains/(losses), net foreign exchange losses, corporate and other expenses, and the income tax effect on these items.
Annualized return on average common equity (“Annualized ROAE”): represents annualized net income/(loss) divided by average common shareholders’ equity.
Annualized operating return on average common equity (“Annualized Operating ROAE”): is a non-GAAP financial measure that represents a meaningful comparison between periods of our financial performance expressed as a percentage and is calculated as annualized operating net income/(loss) divided by average common shareholders’ equity.
Operating earnings per share (“Operating EPS”): is a non-GAAP financial measure that represents a valuable measure of profitability and enables investors, analysts, rating agencies and other users of our financial information to more easily analyze our results in a manner similar to how management analyzes its underlying business performance. It is calculated by dividing operating net income/(loss) by the weighted average diluted common shares outstanding.
The table below sets out the calculation of our Operating net income/(loss), Annualized ROAE, Annualized Operating ROAE and Operating EPS, for the three months ended March 31, 2026, and 2025.
| Three months ended | |||||||||||
| ($ in millions except for share and per share amounts) | March 31, 2026 | March 31, 2025 | |||||||||
| ($ in millions) | |||||||||||
| Net income/(loss) | $ | 108.0 | $ | (42.5) | |||||||
| Adjustment for net realized and unrealized investment (gains)/losses | 1.6 | (5.9) | |||||||||
| Adjustment for net foreign exchange losses | 0.1 | 2.5 | |||||||||
| Adjustment for corporate and other expenses | 0.4 | — | |||||||||
Income tax (benefit)/expense (1) | (21.7) | 0.6 | |||||||||
| Operating net income/(loss) | $ | 88.4 | $ | (45.3) | |||||||
| Average common shareholders' equity | $ | 2,326.8 | $ | 2,419.9 | |||||||
| Weighted average common shares outstanding | 92,961,003 | 111,543,154 | |||||||||
| Share-based compensation plans | 686,441 | — | |||||||||
| Weighted average diluted common shares outstanding | 93,647,444 | 111,543,154 | |||||||||
| Annualized ROAE | 18.6 | % | (7.2 | %) | |||||||
| Annualized Operating ROAE | 15.2 | % | (7.6 | %) | |||||||
| Earnings/(loss) per diluted common share | $ | 1.15 | $ | (0.38) | |||||||
| Operating EPS | $ | 0.94 | $ | (0.41) | |||||||
(1) Income tax (benefit)/expense on adjustments to net income/(loss). The income tax benefit for the three months ended March 31, 2026 includes the reversal of a U.K. top-up tax charge of $21.4 million.
13
Unaudited Consolidated Financial Statements
For the Three Months Ended March 31, 2026 and 2025
1
PELAGOS INSURANCE CAPITAL LIMITED
TABLE OF CONTENTS
| Page | ||||||||
| Financial Statements | ||||||||
Consolidated Balance Sheets | 3 | |||||||
March 31, 2026 (unaudited) and December 31, 2025 | ||||||||
Consolidated Statements of Income and Comprehensive Income | 4 | |||||||
For the three months ended March 31, 2026 and 2025 (unaudited) | ||||||||
Consolidated Statements of Changes in Shareholders’ Equity | 5 | |||||||
For the three months ended March 31, 2026 and 2025 (unaudited) | ||||||||
Consolidated Statements of Cash Flows | 6 | |||||||
For the three months ended March 31, 2026 and 2025 (unaudited) | ||||||||
| Notes to the Unaudited Consolidated Financial Statements | ||||||||
Note 1. Nature of Operations | 7 | |||||||
Note 2. Significant Accounting Policies | 7 | |||||||
Note 3. Segments | 8 | |||||||
Note 4. Investments | 10 | |||||||
Note 5. Fair Value Measurements | 14 | |||||||
Note 6. Total Cash, Cash Equivalents, Restricted Cash and Restricted Investments | 18 | |||||||
Note 7. Derivative Financial Instruments | 18 | |||||||
Note 8. Reserves for Losses and Loss Adjustment Expenses | 19 | |||||||
Note 9. Reinsurance and Retrocessional Reinsurance | 20 | |||||||
Note 10. Long Term Debt | 20 | |||||||
Note 11. Commitments and Contingencies | 21 | |||||||
Note 12. Related Party Transactions | 22 | |||||||
Note 13. Earnings Per Share | 23 | |||||||
Note 14. Share Capital Authorized and Issued | 23 | |||||||
Note 15. Income Taxes | 24 | |||||||
Note 16. Subsequent Events | 24 | |||||||
| Management’s Discussion and Analysis of Financial Condition and Results of Operation | ||||||||
Overview | 25 | |||||||
Performance Measures and Non-GAAP Financial Measures | 26 | |||||||
Results of Operations | 30 | |||||||
Financial Condition, Liquidity and Capital Resources | 33 | |||||||
Quantitative and Qualitative Disclosures about Market Risk | 35 | |||||||
Cautionary Note Regarding Forward-Looking Statements | 36 | |||||||
2
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Balance Sheets
At March 31, 2026 (Unaudited) and December 31, 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: $ | $ | $ | |||||||||
Short-term investments, available-for-sale, at fair value (amortized cost: $ | |||||||||||
| Other investments, at fair value | |||||||||||
| Total investments | |||||||||||
| Cash and cash equivalents | |||||||||||
| Restricted cash and cash equivalents | |||||||||||
| Accrued investment income | |||||||||||
Premiums and other receivables (net of allowance for credit losses of $ | |||||||||||
Amounts due from The Fidelis Partnership (net of allowance for credit losses of $ | |||||||||||
| Deferred reinsurance premiums | |||||||||||
Reinsurance balances recoverable on paid losses (net of allowance for credit losses of $ | |||||||||||
Reinsurance balances recoverable on reserves for losses and loss adjustment expenses (net of allowance for credit losses of $ | |||||||||||
Deferred policy acquisition costs (includes The Fidelis Partnership deferred commissions of $ | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities and shareholders' equity | |||||||||||
| Liabilities | |||||||||||
| Reserves for losses and loss adjustment expenses | $ | $ | |||||||||
| Unearned premiums | |||||||||||
| Reinsurance balances payable | |||||||||||
| Amounts due to The Fidelis Partnership | |||||||||||
| Long term debt | |||||||||||
| Other liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies | |||||||||||
| Shareholders' equity | |||||||||||
Common shares ($ | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated other comprehensive income | |||||||||||
| Retained earnings | |||||||||||
| Total shareholders' equity | |||||||||||
| Total liabilities and shareholders' equity | $ | $ | |||||||||
See accompanying notes to the consolidated financial statements
3
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Statements of Income and Comprehensive Income (Unaudited)
For the three months ended March 31, 2026 and 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| Three Months Ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Revenues | |||||||||||
| Gross premiums written | $ | $ | |||||||||
| Reinsurance premiums ceded | ( | ( | |||||||||
| Net premiums written | |||||||||||
| Change in net unearned premiums | ( | ( | |||||||||
| Net premiums earned | |||||||||||
| Net investment income | |||||||||||
| Net realized and unrealized investment gains/(losses) | ( | ||||||||||
| Total revenues | |||||||||||
| Expenses | |||||||||||
| Losses and loss adjustment expenses | |||||||||||
Policy acquisition expenses (includes The Fidelis Partnership commissions of $ | |||||||||||
| General and administrative expenses | |||||||||||
| Corporate and other expenses | |||||||||||
| Net foreign exchange losses | |||||||||||
| Financing costs | |||||||||||
| Total expenses | |||||||||||
| Income/(loss) before income taxes | ( | ||||||||||
| Income tax benefit | |||||||||||
| Net income/(loss) | $ | $ | ( | ||||||||
| Other comprehensive income/(loss) | |||||||||||
| Unrealized gains/(losses) on available-for-sale investments | $ | ( | $ | ||||||||
| Reclassification of net realized losses/(gains) recognized in net income | ( | ||||||||||
| Income tax (expense)/benefit, all of which relates to unrealized gains/(losses) on available-for-sale investments | ( | ||||||||||
| Total other comprehensive income/(loss) | ( | ||||||||||
| Comprehensive income/(loss) | $ | $ | ( | ||||||||
| Per share data | |||||||||||
| Earnings/(loss) per common share | |||||||||||
| Earnings/(loss) per common share | $ | $ | ( | ||||||||
| Earnings/(loss) per diluted common share | $ | $ | ( | ||||||||
| Weighted average common shares outstanding | |||||||||||
| Weighted average diluted common shares outstanding | |||||||||||
See accompanying notes to the consolidated financial statements
4
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
For the three months ended March 31, 2026 and 2025
(Expressed in millions of U.S. dollars)
| Three Months Ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Common shares | |||||||||||
| Balance - beginning of period | $ | $ | |||||||||
| Common shares repurchased and retired | ( | ( | |||||||||
| Balance - end of period | |||||||||||
| Common shares held in treasury, at cost | |||||||||||
| Balance - beginning of period | ( | ||||||||||
| Repurchase of common shares | ( | ||||||||||
| Retirement of treasury shares | |||||||||||
| Balance - end of period | ( | ||||||||||
| Additional paid-in capital | |||||||||||
| Balance - beginning of period | |||||||||||
| Share compensation expense | |||||||||||
| Common shares repurchased and retired | ( | ( | |||||||||
| Shares withheld for employee taxes on restricted share unit vesting | ( | ||||||||||
| Balance - end of period | |||||||||||
| Accumulated other comprehensive income, net of tax | |||||||||||
| Unrealized gains/(losses) on available-for-sale securities, net of tax | |||||||||||
| Balance - beginning of period | |||||||||||
| Unrealized gains/(losses) arising during the period, net of reclassification adjustment | ( | ||||||||||
| Balance – end of period | |||||||||||
| Retained earnings | |||||||||||
| Balance – beginning of period | |||||||||||
| Net income/(loss) | ( | ||||||||||
| Dividends on common shares | ( | ( | |||||||||
| Balance - end of period | |||||||||||
| Total shareholders' equity attributable to common shareholders | $ | $ | |||||||||
See accompanying notes to the consolidated financial statements
5
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Statements of Cash Flows (Unaudited)
For the three months ended March 31, 2026 and 2025
(Expressed in millions of U.S. dollars)
| March 31, 2026 | March 31, 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income/(loss) | $ | $ | ( | ||||||||
| Adjustments to reconcile net income/(loss) after tax to net cash provided by/(used in) operating activities: | |||||||||||
| Share compensation expense | |||||||||||
| Accretion, amortization and depreciation | ( | ( | |||||||||
| Net realized and unrealized (gain)/loss on investments | ( | ||||||||||
| Deferred tax expense/(benefit) | ( | ||||||||||
| Net changes in assets and liabilities: | |||||||||||
| Accrued investment income | |||||||||||
| Premiums and other receivables | ( | ( | |||||||||
| Amounts due from The Fidelis Partnership | ( | ( | |||||||||
| Deferred reinsurance premiums | ( | ( | |||||||||
| Reinsurance balances recoverable on paid losses | ( | ||||||||||
| Reinsurance balances recoverable on reserves for losses and loss adjustment expenses | ( | ( | |||||||||
| Deferred policy acquisition costs | ( | ( | |||||||||
| Other assets | ( | ||||||||||
| Reserves for losses and loss adjustment expenses | ( | ||||||||||
| Unearned premiums | |||||||||||
| Reinsurance balances payable | |||||||||||
| Amounts due to The Fidelis Partnership | |||||||||||
| Other liabilities | |||||||||||
| Net cash provided by/(used in) operating activities | ( | ||||||||||
| Investing activities | |||||||||||
| Purchase of available-for-sale securities | ( | ( | |||||||||
| Proceeds from maturities of available-for-sale securities | |||||||||||
| Proceeds from sales of available-for-sale securities | |||||||||||
| Proceeds from sale of other investments | |||||||||||
| Purchase of other investments | ( | ||||||||||
| Purchase of fixed assets | ( | ( | |||||||||
| Net cash provided by/(used in) investing activities | ( | ||||||||||
| Financing activities | |||||||||||
| Dividends on common shares | ( | ( | |||||||||
| Repurchase of common shares | ( | ( | |||||||||
| Tax paid on withholding shares | ( | ||||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Effect of exchange rate changes on foreign currency cash | ( | ||||||||||
| Net decrease in cash, restricted cash, and cash equivalents | ( | ( | |||||||||
| Cash, restricted cash, and cash equivalents, beginning of period | |||||||||||
| Cash, restricted cash, and cash equivalents, end of period | $ | $ | |||||||||
| Cash, restricted cash, and cash equivalents comprise the following: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash and cash equivalents | |||||||||||
| Cash, restricted cash, and cash equivalents | $ | $ | |||||||||
See accompanying notes to the consolidated financial statements
6
PELAGOS INSURANCE CAPITAL LIMITED
Notes to Consolidated Financial Statements (Unaudited)
(Expressed in millions of U.S. dollars)
1. Nature of Operations
Pelagos Insurance Capital Limited, formerly known as Fidelis Insurance Holdings Limited (“Pelagos” or “PLGO,” and together with its subsidiaries, the “Company”) is a holding company which was incorporated under the laws of Bermuda on August 22, 2014. The Company is a global specialty underwriter of insurance and reinsurance. Pelagos’ principal operating subsidiaries are:
•Pelagos Insurance Capital Bermuda Limited (formerly known as Fidelis Insurance Bermuda Limited or “FIBL” (“PICB”) is a Class 4 Bermuda domiciled company which writes most of the Company’s reinsurance business, as well as writing insurance lines. PICB is regulated by the Bermuda Monetary Authority.
•Fidelis Underwriting Limited (proposed to be renamed Pelagos Insurance Capital Underwriting Limited, subject to ongoing legal review) (“PICUK”) is a company incorporated in England and Wales which principally writes insurance, as well as reinsurance. PICUK is regulated by the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”).
•Pelagos Insurance Capital Ireland DAC (formerly known as Fidelis Insurance Ireland DAC or “FIID”) (“PICI”) is a Republic of Ireland domiciled company that writes insurance and reinsurance within the European Economic Area. PICI is regulated by the Central Bank of Ireland (“CBI”).
•Pelagos (UK) Services Limited (formerly known as FIHL (UK) Services Limited or “FSL”) (“PSL”) is a service company incorporated in England and Wales, that also has a branch in Ireland.
•Nameco (No 1404) Limited (the “Pelagos Corporate Member”), a wholly owned subsidiary of PICB, is a Lloyd’s corporate member that facilitates the Company’s participation in underwriting activities for Lloyd’s of London Syndicates. The Company currently participates in the underwriting activity of Syndicate 3123, with a participation rate of 7.4 % for the 2026 and 2025 years of account. Effective January 1, 2026, the Company also began participating in the underwriting activity of other Lloyd’s Syndicates.
On January 3, 2023, the Company distributed its investment in Fidelis Marketing Limited (“FML”) and Pine Walk Capital Limited (“Pine Walk”) to shareholders to form a new managing general underwriter business (“The Fidelis Partnership” or “TFP”) and The Fidelis Partnership was acquired by a consortium of investors.
Through various long-term contractual agreements, effective from January 1, 2023 TFP manages origination, underwriting, underwriting administration and claims handling under delegated authority agreements with the Company. Other services provided by TFP to the Company include sourcing and administering outwards reinsurance, support with business planning, capital management, insurance contract accounting and information technology.
On July 3, 2023, the Company completed an initial public offering (“IPO”) of common shares on the New York Stock Exchange under its predecessor name and symbol.
Following shareholder approval at the Annual General Meeting on April 28, 2026, Fidelis Insurance Group has rebranded as Pelagos Insurance Capital, effective May 11, 2026. The legal name change became effective on the same date and the Company begun trading on the New York Stock Exchange under its new name and ticker symbol, “PLGO,” on May 12, 2026.
2. Significant Accounting Policies
Basis of presentation
All intercompany balances and transactions have been eliminated on consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of results on an interim basis. The results of any interim period are not necessarily indicative of the results for a full year or any future periods. The consolidated financial statements have been prepared on a going concern basis.
7
Reporting currency
The financial information is reported in United States dollars (“U.S. dollars” or “$”), expressed in millions, except for share and per share amounts.
Significant Accounting Policies
There were no notable changes to the Company’s significant accounting policies subsequent to December 31, 2025.
3. Segments
The chief operating decision maker (“CODM”) reviews the Company’s ongoing underwriting operations across two operating segments: Insurance and Reinsurance. In determining how to allocate resources and assess the performance of the Company’s underwriting results, management considers many factors including the nature of the insurance product offered, the risks that are covered and the nature of the client.
•The Insurance segment comprises a specialized portfolio of risks that includes Property, Marine, Asset Backed Finance & Portfolio Credit, Energy, Cyber, Aviation & Aerospace, Political Risk, Violence & Terror, and Other Insurance risks.
•The Reinsurance segment is primarily a property catastrophe book, with a smaller proportion of Retro & Whole Account business.
The Company also has an “Other” category that includes general and administrative expenses and The Fidelis Partnership commissions.
Assets are not allocated to segments, nor are general and administrative expenses allocated between segments as employees, including underwriters, may work across different segments. The Fidelis Partnership commissions (see Note 12, Related Party Transactions) are not allocated to segments as they are not included in the measure of segment profit reviewed by the CODM, nor is a segment analysis of such expenses provided in other information reviewed by the CODM.
8
The following tables summarize the Company’s segment disclosures:
Three Months Ended March 31, 2026 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | $ | $ | $ | |||||||||||||||||||
| Net premiums written | |||||||||||||||||||||||
| Net premiums earned | |||||||||||||||||||||||
| Losses and loss adjustment expenses | ( | ( | |||||||||||||||||||||
| Policy acquisition expenses | ( | ( | ( | ( | |||||||||||||||||||
| General and administrative expenses | ( | ( | |||||||||||||||||||||
| Underwriting income | |||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||
| Net realized and unrealized investment losses | ( | ||||||||||||||||||||||
| Corporate and other expenses | ( | ||||||||||||||||||||||
| Net foreign exchange losses | ( | ||||||||||||||||||||||
| Financing costs | ( | ||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Income tax benefit | |||||||||||||||||||||||
| Net income | $ | ||||||||||||||||||||||
Losses and loss adjustment expenses incurred - current year | ( | ( | $ | ( | |||||||||||||||||||
Losses and loss adjustment expenses incurred - prior accident years | ( | ||||||||||||||||||||||
Losses and loss adjustment expenses incurred - total | $ | ( | $ | $ | ( | ||||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | % | % | % | ||||||||||||||||||||
| Loss ratio - prior accident years | % | ( | %) | ( | %) | ||||||||||||||||||
| Loss ratio - total | % | ( | %) | % | |||||||||||||||||||
| Policy acquisition expense ratio | % | % | % | ||||||||||||||||||||
| Underwriting ratio | % | % | % | ||||||||||||||||||||
| The Fidelis Partnership commissions ratio | % | ||||||||||||||||||||||
| General and administrative expense ratio | % | ||||||||||||||||||||||
| Combined ratio | % | ||||||||||||||||||||||
_________________
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
9
Three Months Ended March 31, 2025 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | $ | $ | $ | |||||||||||||||||||
| Net premiums written | |||||||||||||||||||||||
| Net premiums earned | |||||||||||||||||||||||
| Losses and loss adjustment expenses | ( | ( | ( | ||||||||||||||||||||
| Policy acquisition expenses | ( | ( | ( | ( | |||||||||||||||||||
| General and administrative expenses | ( | ( | |||||||||||||||||||||
| Underwriting income/(loss) | ( | ( | |||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||
| Net realized and unrealized investment gains | |||||||||||||||||||||||
| Net foreign exchange losses | ( | ||||||||||||||||||||||
| Financing costs | ( | ||||||||||||||||||||||
| Loss before income taxes | ( | ||||||||||||||||||||||
| Income tax benefit | |||||||||||||||||||||||
| Net loss | $ | ( | |||||||||||||||||||||
Losses and loss adjustment expenses incurred - current year | ( | ( | $ | ( | |||||||||||||||||||
Losses and loss adjustment expenses incurred - prior accident years | |||||||||||||||||||||||
Losses and loss adjustment expenses incurred - total | $ | ( | $ | ( | $ | ( | |||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | % | % | % | ||||||||||||||||||||
| Loss ratio - prior accident years | ( | %) | ( | %) | ( | %) | |||||||||||||||||
| Loss ratio - total | % | % | % | ||||||||||||||||||||
| Policy acquisition expense ratio | % | % | % | ||||||||||||||||||||
| Underwriting ratio | % | % | % | ||||||||||||||||||||
| The Fidelis Partnership commissions ratio | % | ||||||||||||||||||||||
| General and administrative expense ratio | % | ||||||||||||||||||||||
| Combined ratio | % | ||||||||||||||||||||||
__________________
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
4. Investments
At March 31, 2026, the Company’s investments are substantially all managed by external investment managers through individual investment management agreements. The Company monitors activity and performance of the external managers on an ongoing basis.
a.Fixed maturity securities
The following table summarizes the fair value of fixed maturity investments:
| March 31, 2026 | |||||||||||||||||||||||
| Amortized Cost | Unrealized gains | Unrealized losses | Fair value | ||||||||||||||||||||
| U.S. Treasuries | $ | $ | $ | ( | $ | ||||||||||||||||||
| Agencies | |||||||||||||||||||||||
| Non-U.S. government | ( | ||||||||||||||||||||||
| Corporate bonds | ( | ||||||||||||||||||||||
| Residential mortgage-backed | ( | ||||||||||||||||||||||
| Commercial mortgage-backed | ( | ||||||||||||||||||||||
| Other asset-backed securities | ( | ||||||||||||||||||||||
| Total fixed maturity securities | $ | $ | $ | ( | $ | ||||||||||||||||||
10
| December 31, 2025 | |||||||||||||||||||||||
| Amortized Cost | Unrealized gains | Unrealized losses | Fair value | ||||||||||||||||||||
| U.S. Treasuries | $ | $ | $ | ( | $ | ||||||||||||||||||
| Agencies | |||||||||||||||||||||||
| Non-U.S. government | |||||||||||||||||||||||
| Corporate bonds | ( | ||||||||||||||||||||||
| Residential mortgage-backed | |||||||||||||||||||||||
| Commercial mortgage-backed | |||||||||||||||||||||||
| Other asset-backed securities | ( | ||||||||||||||||||||||
| Total fixed maturity securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Review of the fixed maturity securities is performed on a regular basis to consider concentration, credit quality and compliance with established guidelines. For individual fixed maturity securities, nationally recognized statistical rating organizations are used and the middle of three ratings or the lower of two is taken. The composition of the fair values of fixed maturity securities by credit rating is as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Fair Value | % | Fair Value | % | ||||||||||||||||||||
| AAA | $ | % | $ | % | |||||||||||||||||||
| AA | % | % | |||||||||||||||||||||
| A | % | % | |||||||||||||||||||||
| BBB | % | % | |||||||||||||||||||||
| Below BBB | % | % | |||||||||||||||||||||
| Total fixed maturity securities | $ | % | $ | % | |||||||||||||||||||
The contractual maturities for fixed maturity securities are listed in the following table:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
| Due in one year or less | $ | $ | $ | $ | |||||||||||||||||||
| Due after one year through five years | |||||||||||||||||||||||
| Due after five years through ten years | |||||||||||||||||||||||
| Due after ten years | |||||||||||||||||||||||
| Total fixed maturity securities | $ | $ | $ | $ | |||||||||||||||||||
Expected maturities may differ from contractual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Additionally, lenders may have the right to put the securities back to the borrower.
b.Short-term investments
The Company’s short-term investments consist of U.S. Treasuries, corporate bonds and other asset-backed securities with maturities of 90 days or greater but less than one year at the time of purchase:
| March 31, 2026 | |||||||||||||||||||||||
| Amortized Cost | Unrealized gains | Unrealized losses | Fair value | ||||||||||||||||||||
| U.S. Treasuries | $ | $ | $ | ( | $ | ||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | ( | $ | ||||||||||||||||||
December 31, 2025 | |||||||||||||||||||||||
| Amortized Cost | Unrealized gains | Unrealized losses | Fair value | ||||||||||||||||||||
| U.S. Treasuries | $ | $ | $ | $ | |||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
| Other asset-backed securities | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | |||||||||||||||||||
11
The composition of the fair values of short-term investments by credit rating is as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Fair Value | % | Fair Value | % | ||||||||||||||||||||
| AAA | $ | % | $ | % | |||||||||||||||||||
| AA | % | % | |||||||||||||||||||||
| A | % | % | |||||||||||||||||||||
| BBB and below | % | % | |||||||||||||||||||||
| Total short-term investments | $ | % | $ | % | |||||||||||||||||||
c.Available-for-sale - net loss position
The following table summarizes, by type of security, the aggregate fair value and gross unrealized loss by length of time the security has been in an unrealized loss position for the Company’s available-for-sale portfolio:
| March 31, 2026 | |||||||||||||||||||||||
| 0 - 12 months | > 12 months | ||||||||||||||||||||||
| Fair value | Gross unrealized losses | Gross unrealized losses | Number of securities | ||||||||||||||||||||
| U.S. Treasuries | $ | $ | ( | $ | |||||||||||||||||||
| Non-U.S. government | ( | ||||||||||||||||||||||
| Corporate bonds | ( | ||||||||||||||||||||||
| Residential mortgage-backed | ( | ||||||||||||||||||||||
| Commercial mortgage-backed | ( | ||||||||||||||||||||||
| Other asset-backed securities | ( | ( | |||||||||||||||||||||
| Total | $ | $ | ( | $ | ( | ||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| 0 - 12 months | > 12 months | ||||||||||||||||||||||
| Fair value | Gross unrealized losses | Gross unrealized losses | Number of securities | ||||||||||||||||||||
| U.S. Treasuries | $ | $ | ( | $ | ( | ||||||||||||||||||
| Non-U.S. government | |||||||||||||||||||||||
| Corporate bonds | ( | ||||||||||||||||||||||
| Residential mortgage-backed | |||||||||||||||||||||||
| Other asset-backed securities | ( | ||||||||||||||||||||||
| Total | $ | $ | ( | $ | ( | ||||||||||||||||||
At March 31, 2026 on a security level basis, 542 securities out of a total of approximately 1,665 securities were in an unrealized loss position and the largest unrealized loss from a single security in the Company’s fixed maturity portfolio was $0.2 million. At December 31, 2025, on a security level basis, 215 securities out of a total of approximately 1,624 securities were in an unrealized loss position and the largest unrealized loss from a single security in the Company’s fixed maturity portfolio was $0.1 million.
d.Allowance for expected credit losses - available-for-sale
The following table provides a roll forward of the allowance for expected credit losses of the Company’s securities classified as available-for-sale:
| Three months ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Balance at beginning of period | $ | $ | |||||||||
| Expected credit losses on securities where credit losses were not previously recognized | |||||||||||
| Additions/(reductions) for expected credit losses on securities where credit losses were previously recognized | ( | ||||||||||
| Securities sold/redeemed/matured | ( | ( | |||||||||
| Balance at end of period | $ | $ | |||||||||
The Company assesses each quarter whether the decline in fair value of an available-for-sale security below its amortized cost is the result of a credit loss. All available-for-sale securities with unrealized losses are reviewed. The Company considers many factors to determine whether a credit loss exists, including the extent to which fair value is below cost, the implied yield to maturity, rating
12
downgrades of the security and whether or not the issuer has failed to make scheduled principal or interest payments. The Company also takes into consideration information about the financial condition of the issuer and industry factors that could negatively impact the capital markets.
If the decline in fair value of an available-for-sale security below its amortized cost is considered to be the result of a credit loss, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the expected credit loss, which is recorded as an allowance and recognized in net income.
e.Other investments, at fair value
The following table provides a summary of the Company’s other investments by investment strategy:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Fair Value | % | Fair Value | % | ||||||||||||||||||||
| Fixed income funds | $ | % | $ | % | |||||||||||||||||||
| Hedge funds | |||||||||||||||||||||||
| Credit | % | % | |||||||||||||||||||||
| Global macro | % | % | |||||||||||||||||||||
| Long/short | % | % | |||||||||||||||||||||
| Multi-strategy and event-driven | % | % | |||||||||||||||||||||
| Total hedge funds | % | % | |||||||||||||||||||||
| Private credit funds | % | % | |||||||||||||||||||||
| Total other investments | $ | % | $ | % | |||||||||||||||||||
The fixed income fund investments are structured as commingled investment funds managed by third-party managers. In 2025 the Company invested in:
•A UCITS (Undertakings for Collective Investment in Transferable Securities) fund that is actively investing in primarily global investment-grade credit securities. The fund has an average credit rating of A.
•An ICAV (Irish collective asset-management vehicle) fund that is structured as a limited partnership. The fund invests in a diverse portfolio of primarily high yield corporate debt securities and bank loans. The fund has an average credit rating of BB-.
•An open-ended Luxembourg based fund that is investing in investment-grade and short-dated subscription line financing for private funds. The fund has an average credit rating of AA.
At March 31, 2026, approximately $75.5 million (December 31, 2025: $63.4 million) of the fixed income funds were subject to lock-ups or hold-backs and are not redeemable within twelve months. The remaining funds can be redeemed within 30 days’ notice.
At March 31, 2026, the Company had $nil (December 31, 2025: $12.2 million) of unfunded investment commitments to fixed income funds, which are callable by the relevant investment managers.
Commencing 2024, the Company invested in a number of hedge funds which are structured as limited partnerships and are managed by third-party managers. The individual hedge fund strategies include credit, global macro, long/short, multi strategy and event-driven.
Other investments in hedge funds are redeemable over periods ranging from one month to greater than twelve months. The common redemption restrictions which may impact the Company's ability to redeem hedge funds are lock-up periods, hold-backs and gates. A lock-up period is the initial amount of time an investor is contractually required to remain invested in the fund before having the ability to redeem in whole or in part. A hold-back entitles the fund to retain up to 10% of a total redemption request, pending completion of the external audit for the financial year in which the redemption occurs. A gate is a suspension of redemptions which may be implemented by the investment manager of the fund to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a specified percentage of the fund’s net assets. At March 31, 2026, approximately 88 % (December 31, 2025: 94 %) of the total hedge fund investment can be redeemed within the next twelve months, while approximately 12 % (December 31, 2025: 6 %) of the total hedge fund investment could be subject to lock-ups or hold-backs and are not redeemable within twelve months. At March 31, 2026, approximately 1 % (December 31, 2025: 1 %) of the hedge funds were subject to a gate.
In 2025 the Company invested in a private credit fund which is structured as a limited partnership and is managed by a third-party manager. The private credit fund strategy includes investing in portfolio debt securities related to certain private credit asset classes, including direct lending, specialty finance and credit opportunities.
13
At March 31, 2026 the Company had $108.1 million (December 31, 2025: $108.1 million) of unfunded commitments as a limited partner in private credit funds. The Company generally has no right to redeem its interest in any of these private credit funds in advance of dissolution of the applicable limited partnerships. Instead, distributions are received by the Company in connection with the liquidation or maturity of the underlying private credit assets of the fund. It is estimated that the majority of the underlying assets of the limited partnerships will liquidate over 5 to 10 years from inception of the limited partnership.
f.Net investment income and net realized and unrealized investment gains
The components of net investment return are as follows:
| Three Months Ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Net interest and dividend income | $ | $ | |||||||||
| Investment expenses | ( | ( | |||||||||
| Net investment income | |||||||||||
| Net realized gains on fixed maturity securities, available-for-sale | |||||||||||
| Net realized gain on derivatives | |||||||||||
| Net realized and unrealized gains on other investments | |||||||||||
| Change in provision for expected credit losses | ( | ||||||||||
| Net realized and unrealized investment gains/(losses) | ( | ||||||||||
| Total realized and unrealized investments gains/(losses) and net investment income | $ | $ | |||||||||
5. Fair Value Measurements
FASB ASC 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes a consistent framework for measuring fair value and requires disclosures about fair value measurements. The standard requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
Fair value hierarchy
FASB ASC 820-10 specifies a hierarchy of inputs based on whether the inputs are observable or unobservable. Observable inputs are developed using market data and reflect market participant assumptions, while unobservable inputs reflect the Company’s market assumptions. The fair value hierarchy is as follows:
•Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. The fair value is determined by multiplying the quoted price by the quantity held by the Company.
•Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices (e.g. interest rates, yield curves, prepayment spreads, default rate, etc.) for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or can be corroborated by observable market data.
•Level 3: Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. Significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability.
As required under the fair value hierarchy, the Company considers relevant and observable market inputs in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the amount of adjustment necessary when comparing similar transactions are all factors in determining the liquidity of markets and the relevance of observable prices in those markets.
The Company’s policy with respect to transfer between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period.
Determination of fair value
The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value, including an indication of the level within the fair value hierarchy in which each asset or liability is generally classified.
Fixed maturity securities, available-for-sale
Fair values for all fixed maturity securities, available-for-sale, are independently provided by the investment administrator, investment custodians, and investment managers, each of which utilize internationally recognized independent pricing services.
For determining the fair value of securities that are not actively traded, in general, pricing services use “matrix pricing” in which the independent pricing service uses observable market inputs including, but not limited to, reported trades, benchmark yields, broker-
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dealer quotes, interest rates, prepayment spreads, default rates and such other inputs as are available from market sources to determine a reasonable fair value.
The following describes the techniques generally used to determine the fair value of the Company’s fixed maturity securities by asset class.
•U.S. Treasuries are bonds issued by the U.S. government. The significant inputs used to determine the fair value of these securities are based on quoted prices in active markets for identical assets and are therefore classified within Level 1.
•Agency securities consist of securities issued by U.S. and non-U.S. government sponsored agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, government development banks and other agencies which are not mortgage pass-through. The fair values of these securities are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of these securities are classified as Level 2.
•Non-U.S. government securities consist of bonds issued by non-U.S. governments and supranationals. The significant inputs used to determine the fair value of these securities include the spread above the risk-free yield curve, reported trades and broker-dealer quotes. These are considered to be observable market inputs and, therefore, the fair values of these securities are classified within Level 2.
•Corporate bonds consist primarily of investment-grade debt of a wide variety of corporate issuers and industries. When available, significant inputs are used to determine the fair value of these securities and are based on quoted prices in active markets for similar assets. When not available, the fair values of these securities are determined using the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark yields, and industry and market indicators. The fair values of these securities are classified as Level 2.
•Residential mortgage-backed securities include agency mortgage-backed securities and agency collateralized mortgage obligations. These are individually evaluated using option adjusted spreads (“OAS”) and nominal spreads. The OAS valuations use a third-party prepayment model and OAS. Spreads are based upon tranche type and average life volatility. These spreads are gathered from dealer quotes, trade prices, and the new issue market. The fair values of these securities are classified as Level 2.
•Commercial mortgage-backed securities consist of investment grade bonds backed by pools of loans with underlying collateral. Securities held in this sector are primarily priced by pricing services. Inputs to the valuation process include broker-dealer quotes and other available trade information, prepayment speeds, current price data, the swap curve as well as cash settlement. The fair values of these securities are classified as Level 2.
•Other asset-backed securities consist of investment grade bonds backed by pools of loans with underlying collateral. The underlying collateral for asset-backed securities consists mainly of student loans, automobile loans and credit card receivables. These securities are primarily priced by index providers and pricing vendors. Inputs to the valuation process include broker-dealer quotes and other available trade information, prepayment speeds, tranche type, interest rate data and credit spreads. The Company classifies these securities within Level 2.
Short-term investments
The Company’s short-term investments are classified within the fair value hierarchy using the methodologies specified for our fixed maturity securities above.
Other investments
Fair values for the Company’s investments in fixed income funds, hedge funds and private credit funds are based on their respective net asset values and are excluded from the fair value hierarchy table below.
Derivative assets and liabilities
Exchange-traded derivatives, measured at fair value using quoted prices in active markets, where available, are classified as Level 1 of the fair value hierarchy.
Derivatives without quoted prices in an active market and derivatives executed over the counter are valued using internal valuation techniques that consider the time value of money, volatility, the current market and contractual prices of underlying financial instruments. These derivative instruments are classified as either Level 2 or Level 3 depending upon the observability of the significant inputs to the model. The valuation techniques and key inputs depend on the type of derivative and the nature of the underlying instrument.
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The following tables present the financial instruments measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025:
| March 31, 2026 | |||||||||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| Fixed maturity securities | |||||||||||||||||||||||
| U.S. Treasuries | |||||||||||||||||||||||
| Agencies | |||||||||||||||||||||||
| Non-U.S. government | |||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
| Residential mortgage-backed | |||||||||||||||||||||||
| Commercial mortgage-backed | |||||||||||||||||||||||
| Other asset-backed securities | |||||||||||||||||||||||
| Total fixed maturity securities | |||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| U.S. Treasuries | |||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
| Total short-term investments | |||||||||||||||||||||||
| Other assets | |||||||||||||||||||||||
| Investments pending settlement | |||||||||||||||||||||||
| Total other assets | |||||||||||||||||||||||
| Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Other liabilities | |||||||||||||||||||||||
| Investments pending settlement | ( | ( | |||||||||||||||||||||
| Derivative liabilities | ( | ( | |||||||||||||||||||||
| Total other liabilities | ( | ( | ( | ||||||||||||||||||||
| Total liabilities measured at fair value | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
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| December 31, 2025 | |||||||||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| Fixed maturity securities | |||||||||||||||||||||||
| U.S. Treasuries | $ | $ | $ | $ | |||||||||||||||||||
| Agencies | |||||||||||||||||||||||
| Non-U.S. government | |||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
| Residential mortgage-backed | |||||||||||||||||||||||
| Commercial mortgage-backed | |||||||||||||||||||||||
| Other asset-backed securities | |||||||||||||||||||||||
| Total fixed maturity securities | |||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| U.S. Treasuries | |||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
| Other asset-backed securities | |||||||||||||||||||||||
| Total short-term investments | |||||||||||||||||||||||
| Other assets | |||||||||||||||||||||||
| Investments pending settlement | |||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||
| Total other assets | |||||||||||||||||||||||
| Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Other liabilities | |||||||||||||||||||||||
| Investments pending settlement | ( | ( | |||||||||||||||||||||
| Derivative liabilities | ( | ( | |||||||||||||||||||||
| Total other liabilities | ( | ( | ( | ||||||||||||||||||||
| Total liabilities measured at fair value | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
There were no transfers into or out of Level 1 and Level 2 during the three months ended March 31, 2026 and the year ended December 31, 2025.
Fair value of financial instrument liabilities
The following table presents financial instruments for which the carrying value differs from the estimated fair values at March 31, 2026 and December 31, 2025. The fair values of the below financial instruments are based on observable inputs and are considered Level 2 measurements.
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
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6. Total Cash, Cash Equivalents, Restricted Cash and Restricted Investments
The Company has cash and investments in trust funds that support the insurance contracts written on certain lines of business and in segregated portfolios primarily to provide collateral for letters of credit.
The following table provides a summary of cash and cash equivalents, restricted cash and restricted investments at March 31, 2026 and December 31, 2025:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash securing letter of credit facilities | |||||||||||
| Restricted cash securing insurance and reinsurance contracts | |||||||||||
| Total cash, cash equivalents and restricted cash | |||||||||||
| Restricted investments securing reinsurance contracts and letter of credit facilities | |||||||||||
| Total cash, cash equivalents, restricted cash and restricted investments | $ | $ | |||||||||
7. Derivative Financial Instruments
The Company enters into derivative instruments such as futures and swaps primarily for fixed income portfolio interest rate and credit exposure management, and forward contracts for foreign currency exposure management. The Company’s derivative instruments are generally traded under International Swaps and Derivatives Association master agreements, which establish the terms of the transactions entered into with the Company’s derivative counterparties. In the event one party becomes insolvent or otherwise defaults on its obligations, a master agreement generally permits the non-defaulting party to accelerate and terminate all outstanding transactions and net the transactions’ marked-to-market values so that a single sum in a single currency will be owed by, or owed to, the non-defaulting party. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure.
The following table identifies the fair value and notional amounts of derivative instruments included in the Consolidated Balance Sheets, categorized by primary underlying risk:
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Derivative assets at fair value | Derivative liabilities at fair value | Notional amounts(1) | Derivative assets at fair value | Derivative liabilities at fair value | Notional amounts(1) | |||||||||||||||||||||||||||||||||
| Credit default swaps | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Forwards(2) | ( | ( | ||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
__________________
(1)The absolute notional exposure represents the Company’s derivative activity, which is representative of the volume of derivatives held during the year.
(2)Contracts used to primarily manage foreign currency risks in underwriting.
The following table presents the Company’s net realized gains/(losses) and change in net unrealized gains/(losses) relating to derivative trading activities for the three months ended March 31, 2026 and 2025. Net realized gains/(losses) and net unrealized gains/(losses) related to derivatives are included in net realized and unrealized investment gains/(losses) and net foreign exchange losses in the Consolidated Statements of Income.
| Three Months Ended | |||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||
| Net realized gains/(losses) | Change in net unrealized gains/(losses) | Net realized gains/(losses) | Change in net unrealized gains/(losses) | ||||||||||||||||||||
| Fixed income portfolio management | |||||||||||||||||||||||
| Credit default swaps | $ | $ | $ | $ | |||||||||||||||||||
| Foreign exchange contracts | |||||||||||||||||||||||
Forwards (1) | ( | ( | ( | ||||||||||||||||||||
Total | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
__________________
(1)Contracts used to primarily manage foreign currency risks in underwriting.
The Company obtains and provides collateral from and to counterparties for over-the-counter derivative financial instruments in accordance with bilateral credit facilities.
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The Company does not offset its derivative instruments and presents all amounts in the Consolidated Balance Sheets on a gross basis. Unrealized gains are included within other assets and unrealized losses are included within other liabilities. The Company has pledged cash collateral to counterparties to support the current value of amounts due to the counterparties based on the value of the underlying security.
8. Reserves for Losses and Loss Adjustment Expenses
The reserves for losses and loss adjustment expenses include an amount determined from reported claims, and estimates based on historical loss experience and industry statistics for losses incurred but not reported using a variety of actuarial methods.
The reserve estimates contain an inherent level of uncertainty and actual results may vary, potentially significantly, from the estimates the Company has made. Reserves are reviewed on a quarterly basis and estimates are adjusted to reflect emerging claims experience.
The unpaid reported reserves for losses and loss adjustment expenses are established by management based on reports from brokers, ceding companies and insureds and represent the estimated ultimate cost of events or conditions that have been reported to, or specifically identified by the Company.
Losses and loss adjustment expenses incurred but not reported (“IBNR”) reserves are established by management based on actuarial estimates of ultimate losses and loss adjustment expenses. Inherent in the estimate of ultimate losses and loss adjustment expenses are expected trends in claim severity, frequency of large losses and catastrophes, and other factors which may vary significantly as claims are settled.
Actuarial inputs include the Company’s own loss experience, historical insurance industry loss experience, estimates of pricing adequacy trends and management’s professional judgement. Due to the limited historical data available, reliance is placed upon industry data and a review of individual policies. Estimates are calculated at the lowest level line of business, separately for gross and ceded, and for attritional, large and catastrophic claims.
The Company estimates reserves for unallocated claims adjustment expenses (“ULAE”) based on a percentage of loss reserves as determined by management. However, this may be overridden in exceptional circumstances where this approach is not deemed appropriate. There were no material changes made to the Company’s methodology for calculating reserves for unallocated claims adjustment expenses for the three months ended March 31, 2026.
Salvage is recorded based on estimated realizable value and is deducted from the reserve for losses and loss adjustment expenses.
The following table presents a reconciliation for the period of reserves for losses and loss adjustment expenses for the three months ended March 31, 2026 and 2025:
| March 31, 2026 | March 31, 2025 | ||||||||||
| Reserves for losses and loss adjustment expenses, beginning of period | $ | $ | |||||||||
| Reinsurance recoverable on reserves for losses and loss adjustment expenses | ( | ( | |||||||||
| Net reserves for losses and loss adjustment expenses, beginning of period | |||||||||||
| Net losses and loss adjustment expenses incurred in respect of losses occurring in: | |||||||||||
| Current year | |||||||||||
| Prior years | ( | ( | |||||||||
Total incurred | |||||||||||
| Net losses and loss adjustment expenses paid in respect of losses occurring in: | |||||||||||
| Current year | ( | ( | |||||||||
| Prior years | ( | ( | |||||||||
Total paid | ( | ( | |||||||||
| Foreign exchange | ( | ||||||||||
| Net reserves for losses and loss adjustment expenses, end of period | |||||||||||
| Reinsurance recoverable on reserves for losses and loss adjustment expenses | |||||||||||
| Reserves for losses and loss adjustment expenses, end of period | $ | $ | |||||||||
As a result of the changes in estimates of insured events in prior years, the reserves for losses and loss adjustment expenses net of reinsurance recoveries decreased by $3.1 million for the three months ended March 31, 2026 (2025: decreased by $40.8 million).
Net favorable development for the three months ended March 31, 2026 resulted from better than expected loss development in the Reinsurance segment, partially offset by net adverse development in the Insurance segment.
In the Insurance segment, for the three months ended March 31, 2026 the net adverse development of $15.2 million was primarily driven by increased loss estimates related to the Baltimore Bridge collapse within our Marine line of business as well as increases in
19
prior year property D&F losses. These increases were partially offset by better than expected loss emergence in multiple lines of business. In the Reinsurance segment, for the three months ended March 31, 2026 the net favorable development of $18.3 million was driven by positive development on catastrophe losses and benign prior year attritional experience.
9. Reinsurance and Retrocessional Reinsurance
In the normal course of business, the Company purchases reinsurance and retrocessional protection to mitigate its loss exposure. The Company is exposed to the credit risk of the reinsurers, including the risk that one of its reinsurers becomes insolvent or otherwise unable or unwilling to pay policyholder claims. This credit risk is generally mitigated by either selecting well capitalized, highly rated authorized capacity providers or requiring that the capacity provider post collateral to secure the reinsured risks, which, in some instances, exceeds the related reinsurance recoverable. Allowances are established for amounts deemed uncollectible.
The Company evaluates the financial condition of its reinsurers on a regular basis and monitors concentrations of credit risk with reinsurers. At March 31, 2026, the reinsurance balance recoverable on reserves for losses and loss adjustment expenses was $1,243.8 million (December 31, 2025: $1,195.6 million) and the reinsurance balance recoverable on paid losses was $419.9 million (December 31, 2025: $438.7 million). In evaluating the allowance for expected credit losses, the Company assesses the probability of default and loss given default for each reinsurer. This uses counterparty ratings from a major rating agency and an assessment of the current market conditions for the likelihood of default. An inability of its reinsurers or retrocessionaires to meet their obligations to the Company over the relevant exposure periods for any reason could have a material adverse effect on its financial condition and results of operations.
The allowance for expected credit losses of the Company's reinsurance recoverables on paid losses and on reserves for losses and loss adjustment expenses at March 31, 2026 was $0.3 million and $0.9 million, respectively (December 31, 2025: $0.3 million and $0.9 million, respectively).
10. Long Term Debt
Long-term debt
On June 13, 2025, the Company issued $400.0 million of its 7.750 % Fixed-Rate Reset Subordinated Notes due June 15, 2055 (collectively, the “Subordinated Notes”), with interest payable on June 15 and December 15 of each year, which commenced on December 15, 2025. From the issue date to, but excluding, June 15, 2035, the Subordinated Notes will bear interest at a fixed rate of 7.750 % per annum. From and including June 15, 2035, and every five years on June 15 thereafter, the interest rate will reset to the then-current five-year U.S. Treasury rate plus 4.280 %, as determined on the applicable reset date. The Subordinated Notes are redeemable at the applicable redemption price, subject to the terms described in the indenture for the Subordinated Notes. However, the Subordinated Notes may not be redeemed if enhanced capital requirements, as established by the Bermuda Monetary Authority (“BMA”), would be breached immediately before or after giving effect to the redemption of such notes, unless the Company replaces the capital represented by the Subordinated Notes to be redeemed or repaid with capital having equal or better capital treatment as the notes under applicable BMA rules. Notwithstanding the foregoing, the Subordinated Notes may not be redeemed prior to June 15, 2030 unless the BMA does not object to such redemption, having been provided notice of the redemption, and the conditions in the foregoing sentence are satisfied. The Subordinated Notes contain covenants, including limitations on liens on the stock of certain designated subsidiaries, limitations on consolidations, mergers, amalgamations and sales of substantially all assets and certain reporting obligations.
On October 16, 2020, the Company issued $105.0 million, and on October 20, 2020, the Company issued a further $20.0 million of its 6.625 % Fixed-Rate Reset Junior Subordinated Notes due April 1, 2041 (collectively, the “Junior Notes”) with interest payable on April 1 and October 1 of each year, commencing on April 1, 2021. The interest rate is reset on April 1, 2026 at the U.S. five-year treasury rate on the reset interest determination date plus 6.323 %, and every five years on April 1 thereafter. The Junior Notes are redeemable at par value for six months after each interest rate reset date. The Junior Notes contain covenants, including limitations on liens on the stock of certain designated subsidiaries, limitations on consolidations, mergers, amalgamations and sales of substantially all assets and certain reporting obligations.
On June 18, 2020, the Company issued $300.0 million and on July 2, 2020 the Company issued a further $30.0 million of its 4.875 % Senior Notes due June 30, 2030 (collectively, the “Senior Notes”), with interest payable on June 30 and December 30 of each year, commencing on December 30, 2020. The Senior Notes are redeemable at the applicable redemption price, subject to the terms
20
described in the indenture for the Senior Notes. However, the Senior Notes may not be redeemed at any time prior to their maturity if enhanced capital requirements, as established by the BMA, would be breached immediately before or after giving effect to the redemption of such notes, unless the Company replaces the capital represented by the Senior Notes to be redeemed with capital having equal or better capital treatment as the notes under applicable BMA rules. The Senior Notes contain covenants, including limitations on liens on the stock of certain designated subsidiaries, limitations on consolidations, mergers, amalgamations and sales of substantially all assets and certain reporting obligations.
The following table sets forth the principal amount of the debt issued as well as the unamortized discount and debt issuance costs at March 31, 2026 and December 31, 2025:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Principal | Unamortized discount and debt issuance costs | Principal | Unamortized discount and debt issuance costs | ||||||||||||||||||||
| $ | $ | ( | $ | $ | ( | ||||||||||||||||||
| ( | ( | ||||||||||||||||||||||
| ( | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | |||||||||||||||||
11. Commitments and Contingencies
a.Letter of credit facilities
At March 31, 2026, the Company had the following letter of credit facilities:
| March 31, 2026 | |||||||||||||||||
| Bank | Commitment | In Use | Date of Expiry | ||||||||||||||
Lloyds Bank plc(1)(2) | |||||||||||||||||
| Unsecured | $ | $ | September 21, 2028 | ||||||||||||||
| Secured | September 21, 2028 | ||||||||||||||||
| Total Lloyds Bank Plc | |||||||||||||||||
Citibank N.A. London branch(1)(2) | |||||||||||||||||
| Secured | December 31, 2026 | ||||||||||||||||
| Total Citibank N.A. London branch | |||||||||||||||||
Barclays Bank plc(1)(2) | |||||||||||||||||
| Unsecured | September 13, 2028 | ||||||||||||||||
| Secured | September 13, 2028 | ||||||||||||||||
| Total Barclays Bank plc | |||||||||||||||||
Bank of Montreal(1)(2) | |||||||||||||||||
| Unsecured | September 18, 2026 | ||||||||||||||||
| Secured | September 18, 2026 | ||||||||||||||||
| Total Bank of Montreal | |||||||||||||||||
| Total letters of credit facilities | $ | $ | |||||||||||||||
__________________
(1)Letters of credit can be issued under the secured letter of credit facilities for the purposes of supporting insurance and reinsurance obligations.
(2)The Facility agreements allow for additional capacity in the form of accordions and uncommitted amounts. The maximum additional capacity from the lenders as of March 31, 2026, was: Lloyds Bank plc $65.0 million; Citibank N.A. London Branch $200.0 million; Barclays Bank plc $65.0 million; and Bank of Montreal $60.0 million.
The following table shows the value of the collateral underlying the secured letter of credit facilities:
| Bank | March 31, 2026 | ||||
| Lloyds Bank plc | $ | ||||
| Citibank N.A. London branch | |||||
| Barclays Bank plc | |||||
| Bank of Montreal | |||||
| Total | $ | ||||
The Company's letter of credit facilities are generally bilateral agreements with to year terms. The letters of credit issued under the secured letter of credit facilities are fully collateralized. Each of the above facilities are subject to various affirmative,
21
negative and financial covenants that the Company considers to be customary for such borrowings including certain minimum net worth and maximum debt to capitalization standards.
b.Legal proceedings
Similar to the rest of the insurance and reinsurance industry, the Company is from time to time subject to litigation, arbitration and other dispute resolution proceedings in the ordinary course of its business. Such matters generally arise from questions of insurance or reinsurance coverage, including coverage disputes arising from notable natural catastrophes and man-made loss events, the interpretation or application of policy or contract terms, claims handling activities or the enforcement of the Company’s rights and obligations under insurance or reinsurance agreements, and may involve efforts to collect amounts due to the Company or to defend against claims asserted by policyholders, cedants, reinsurers or other counterparties. The Company may also be involved in the investigation, conduct and defense of other potential litigation, disputes and regulatory or governmental inquiries, including matters relating to underwriting or administrative errors or omissions, employment-related claims or other operational or commercial disputes, from time to time in the ordinary course of business. Pursuant to the Company’s insurance and reinsurance arrangements, a number of these disputes are resolved by arbitration or other forms of alternative dispute resolution, or through negotiated resolution, and the Company considers the status of such matters in establishing its reserves for losses and loss adjustment expenses, as appropriate. The Company is not a party to any litigation or governmental or other proceeding that it believes will have a material impact on the Company’s financial position, results of operations or liquidity.
c.Concentration of credit risk
Credit risk arises out of the failure of a counterparty to perform according to the terms of the contract. The Company underwrites a significant portion of its (re)insurance business through brokers and as a result credit risk exists should any of these brokers be unable to fulfil their contractual obligations with respect to the payments of premium or failure to pass on claims, if there is risk transfer, to the Company. The Company has policies and standards in place to manage and monitor the credit risk of intermediaries with a focus on day-to-day monitoring of the largest positions. Note 9 (Reinsurance and Retrocessional Reinsurance) describes the credit risk related to the Company’s reinsurance recoverables.
12. Related Party Transactions
On January 3, 2023, The Fidelis Partnership acquired 9.9 % of the common shares of the Company. Certain directors, executive officers and management of TFP also own common shares of the Company.
On December 20, 2022, the Company and TFP entered into a rolling 10 -year framework agreement (the “Framework Agreement”), effective January 1, 2023, that governs the ongoing relationship between the two groups. Years one to three rolled automatically, whereas from year four onwards, the Framework Agreement will roll at the sole written election of the Company, with such election to be delivered at least 90 days prior to the commencement of the subsequent contract year. Any decision by the Company to elect not to roll the Framework Agreement will mean that the remainder of the 10 -year terms then in effect will continue in place. An election to roll the 10 year term of the Framework Agreement was delivered on October 1, 2025.
The underwriting activities of PICB, PICUK and PICI have been primarily outsourced to the corresponding operating subsidiaries of TFP on a jurisdictional basis. TFP manages origination, underwriting, underwriting administration and claims handling under delegated authority agreements with the Company. Other services provided by TFP to the Company include sourcing and administering the outwards reinsurance program, and support with business planning, capital management, insurance contract accounting and information technology. The Framework Agreement provides for the payment of the following fees with effect from January 1, 2023:
a.Ceding commissions: (i) a ceding commission of 11.5 % of net premiums written of open market business procured by The Fidelis Partnership on or after January 1, 2023; (ii) a ceding commission of 3.0 % of net premiums written of business sourced by The Fidelis Partnership via third party managing general underwriters on or after January 1, 2023; and (iii) a portfolio management fee of 3.0 % of net premiums written of the business sourced by The Fidelis Partnership.
b.Profit commission: a profit commission of 20.0 % of the aggregate operating profit (defined as underwriting income on business written by The Fidelis Partnership, subject to certain parameters for the allocation of general and administrative expenses, financing costs and other items, and excluding investment income), subject to a hurdle rate of return of 5.0 % of underwriting return on equity.
For insurance contracts sourced by The Fidelis Partnership’s Managing General Agent incubator platform, Pine Walk, the fees and commissions follow separately negotiated arrangements and will not attract additional commissions under the terms of the Framework Agreement other than the portfolio management fee of 3.0 %.
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The following table summarizes The Fidelis Partnership commissions earned, which are included in policy acquisition expenses in the Consolidated Statements of Income:
| Three months ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Ceding commission expense | $ | $ | |||||||||
| Profit commission expense | |||||||||||
| Total commissions | $ | $ | |||||||||
Amounts receivable from TFP at March 31, 2026 of $207.1 million (December 31, 2025: $174.8 million) primarily consist of amounts collected by TFP on behalf of the Company that were not remitted prior to the end of the period. Amounts payable to TFP at March 31, 2026 of $551.1 million (December 31, 2025: $457.7 million) primarily consist of amounts payable to TFP for ceding and profit commissions, and claims paid by TFP on the Company’s behalf.
The Framework Agreement also provides that, in respect of commissions and profit commissions on ceded quota share business, the Company shall retain 1.0% of reinsurance premiums ceded and the remainder is to be paid to TFP. Commissions on ceded business for the three months ended March 31, 2026 of $26.5 million (2025: $29.9 million) were paid to TFP. For the three months ended March 31, 2026 profit commissions on ceded business of $12.0 million (2025: $9.3 million) were paid to The Fidelis Partnership.
Insurance contracts sourced by Pine Walk contain profit commissions based on the results of each individual contract. The expense for the three months ended March 31, 2026 was $2.1 million (2025: $11.7 million) and was included within policy acquisition expenses.
13. Earnings Per Share
| Three months ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Earnings/(loss) per common share | |||||||||||
| Net income/(loss) | $ | $ | ( | ||||||||
| Weighted average common shares outstanding | |||||||||||
| Earnings/(loss) per common share | $ | $ | ( | ||||||||
| Earnings/(loss) per diluted common share | |||||||||||
| Net income/(loss) | $ | $ | ( | ||||||||
| Weighted average common shares outstanding | |||||||||||
| Share-based compensation plans | |||||||||||
| Weighted average diluted common shares outstanding | |||||||||||
| Earnings/(loss) per diluted common share | $ | $ | ( | ||||||||
14. Share Capital Authorized and Issued
The following table sets out the number and par value of shares authorized, issued and outstanding:
| March 31, 2026 | December 31, 2025 | ||||||||||
Common shares, par value $ | |||||||||||
| Authorized | |||||||||||
| Issued and outstanding | |||||||||||
| Common shares | |||||||||||
Common share dividends
Cash dividends of $0.15 per common share were declared and paid in the three months ended March 31, 2026 (2025: $0.10 per common share).
Common share repurchases
On February 20, 2026, the Board of Directors approved an increase to the current common share repurchase authorization to $400.0 million. Pursuant to the Program, Pelagos may repurchase shares through open market purchases pursuant to Rule 10b-18
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under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), accelerated share repurchases or privately negotiated transactions, as well as pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act.
The following table summarizes common shares repurchased in the three months ended March 31, 2026 and 2025:
| Three months ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Common shares repurchased | |||||||||||
| Cost of shares repurchased, inclusive of commissions | $ | $ | |||||||||
| Weighted average price per share, inclusive of commissions | $ | $ | |||||||||
Included in common shares repurchased in the three months ended March 31, 2026 were 8,597,170 common shares repurchased from CVC Falcon Holdings Limited (“CVC”) for $163.3 million in a privately negotiated transaction. Following this transaction, CVC no longer holds any ownership interest in Pelagos.
Included in common shares repurchased in the three months ended March 31, 2026, were 1,101,558 (2025: 136,084 ) common shares repurchased from TFP for $20.9 million (2025: $2.1 million). These transactions were effected at a price equal to the average price paid by the Company on such day for share repurchases from all other shareholders. The repurchase mechanism follows a prescribed format designed to keep TFP’s ownership of PLGO to below 9.8752 %. Common shares repurchased by the Company are retired. The unutilized amount of the share repurchase authorization at March 31, 2026 was $199.1 million.
15. Income Taxes
The Company’s income tax benefit for the three months ended March 31, 2026, resulted in an effective tax rate of (4.8 )% (2025: 15.5 %). The income tax benefit for the three months ended March 31, 2026 was $4.9 million (2025: $7.8 million).
In December 2025, in response to updated guidance from the OECD, an amendment to the Bermuda Corporate Income Taxes Act was enacted. The amendment eliminated reductions to the tax basis recognized as part of the Economic Transition Adjustment in 2023 and resulted in a deferred tax benefit of $23.5 million in the year ended December 31, 2025.
At December 31, 2025, the U.K. had not enacted legislation which implemented that OECD guidance. Accordingly, a Pillar 2 top-up tax charge of $21.4 million was accrued in the year ended December 31, 2025. The U.K. Finance Act 2026 was enacted in March 2026, implementing the OECD guidance. Therefore, the U.K. top-up tax liability of $21.4 million has been released in the three months ended March 31, 2026 and treated as a discrete period benefit.
The Company’s income tax expense may fluctuate from period to period based on the relative mix of income or loss reported by jurisdiction and the varying tax rates in each jurisdiction.
16. Subsequent Events
Share repurchases
Subsequent to March 31, 2026 and through the period ended May 8, 2026, the Company repurchased 705,752 common shares at an aggregate cost of $14.4 million and an average price of $20.44 per common share.
Debt redemption
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following is a discussion and analysis of our results of operations for the three months ended March 31, 2026 and 2025 and our financial condition at March 31, 2026. This discussion and analysis should be read in conjunction with our audited and unaudited consolidated financial statements for those respective periods and related notes contained therein. This discussion and analysis contains forward-looking statements, which are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control that could cause the Company’s actual results to differ materially from those projected, anticipated or implied. The most significant of these risks and uncertainties are described in Item 3.D, “Risk Factors” contained in the Company’s Annual Report on Form 20-F for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on March 5, 2026. On May 11, 2026, the Company’s legal name change from Fidelis Insurance Holdings Limited to Pelagos Insurance Capital Limited took effect. The terms “we,” “our,” “us,” “Pelagos,” “Pelagos Insurance Capital,” and the “Company,” as used herein, refer to Pelagos Insurance Capital Limited and legacy Fidelis Insurance Holdings Limited and its subsidiaries as a combined entity, unless otherwise indicated. TFP Intermediate Holdings II Limited is the parent company of an external managing general underwriting platform known as “The Fidelis Partnership” or “TFP”.
Tabular amounts are in U.S. Dollars in millions, except for share and per share amounts, unless otherwise noted.
Overview
Pelagos Insurance Capital is a strategic capital allocator and risk selector in specialty insurance and reinsurance, focused on identifying the most compelling opportunities in the market to allocate capital and the best-in-class partners to execute the Company’s underwriting strategy in those areas.
The Company was formed under the principles of focused, process-driven and disciplined underwriting and risk selection, strong client and broker relationships and nimble capital deployment. The Company, originally founded as “Fidelis,” completed its initial funding and began underwriting business in June 2015 under the direction of an innovative and experienced management team.
The Company comprises Pelagos Insurance Capital Limited (formerly known as Fidelis Insurance Holdings Limited or “FIHL”) and its principal operating insurance subsidiaries Pelagos Insurance Capital Bermuda Limited (formerly known as Fidelis Insurance Bermuda Limited or “FIBL”) (“PICB”), Fidelis Underwriting Limited (proposed to be renamed Pelagos Insurance Capital Underwriting Limited, subject to ongoing legal review) (“PICUK”), and Pelagos Insurance Capital Ireland DAC (formerly known as Fidelis Insurance Ireland DAC or “FIID”) (“PICI”) and has its own service company, Pelagos (UK) Services Limited with a branch in Ireland (formerly known as FIHL (UK) Services Limited or “FSL”) (“PSL”). In 2024 the Company established Nameco (No 1404) Limited (the “Pelagos Corporate Member”), which has a 7.4% participation in the 2026 year of account of Lloyd’s Syndicate 3123 (2025 year of account: 7.4%). Starting on January 1, 2026, we also began participating in the underwriting activity of other Lloyd’s Syndicates.
Our business comprises two segments: Insurance and Reinsurance, with a diversified portfolio spanning 10 lines of business. This breadth allows us to provide solutions for customers across a broad range of industries, manage different types of risk, and operate effectively across geographic regions. Our disciplined underwriting and active capital management enable us to respond dynamically to market cycles and pursue opportunities that we believe offer an attractive balance of risk and return.
The Insurance segment comprises a portfolio of specialty risks. In addition to major specialty lines of business, this segment includes highly tailored products, where the buying motivation is often driven by regulatory capital relief, capital efficiency or transaction facilitation. The lines of business within this segment are Property, Marine, Asset Backed Finance & Portfolio Credit, Energy, Cyber, Aviation & Aerospace, Political Risk, Violence & Terror, and Other Insurance risks. A strong rating environment following years of compound rate increases across multiple business lines within the Insurance segment have provided opportunities for targeted growth. We leverage our lead position to cross-sell across our portfolio and achieve preferential terms and conditions. This, combined with long established relationships, has enabled Pelagos Insurance Capital to build an established book of specialty business. Given the market environment we have increasingly used our Insurance segment to deploy capital targeted to natural catastrophe exposure through the Property line of business. This allows a more selective approach to managing aggregate exposure.
Our Reinsurance segment consists of an actively managed global, property reinsurance portfolio, providing reinsurance and a limited amount of retrocession coverage on both a proportional and excess of loss basis.
Our strategic objectives focus on the following:
•Building a scalable, high-quality underwriting portfolio that generates attractive risk-adjusted returns across market cycles;
•Generating sustainable long-term shareholder value through disciplined capital allocation;
•Maintaining effective organizational structures, governance, and operational capabilities to support strategic execution; and
•Promoting a performance-driven, collaborative culture that attracts, develops, and retains talent.
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Financial Highlights
The following table details the key items discussed in the consolidated results of operations section and key financial indicators in evaluating our performance for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income/(loss) | $ | 108.0 | $ | (42.5) | |||||||
Operating net income/(loss)(1) | 88.4 | (45.3) | |||||||||
| Gross premiums written | 1,840.4 | 1,722.9 | |||||||||
| Net premiums earned | 568.5 | 603.0 | |||||||||
| Catastrophe and large losses | 72.3 | 333.3 | |||||||||
| Net favorable prior year reserve development | 3.1 | 40.8 | |||||||||
| Net investment income | 43.7 | 49.5 | |||||||||
| Net realized and unrealized investment gains/(losses) | $ | (1.6) | $ | 5.9 | |||||||
| Combined ratio | 86.6 | % | 115.6 | % | |||||||
| Annualized return on average common equity | 18.6 | % | (7.2 | %) | |||||||
Annualized Operating ROAE(1) | 15.2 | % | (7.6 | %) | |||||||
| Earnings/(loss) per diluted common share | $ | 1.15 | $ | (0.38) | |||||||
Operating EPS(1) | $ | 0.94 | $ | (0.41) | |||||||
__________________
(1) See definition and reconciliation of these non-GAAP financial measures in “Performance Measures and Non-GAAP Financial Measures”.
Pelagos’ First Quarter in Review for 2026
Gross premiums written (“GPW”) increased to $1.8 billion, or 6.8% above the prior year period. Net income for the first quarter of 2026 was $108.0 million, or $1.15 per diluted common share. Our combined ratio was 86.6% for the three months ended March 31, 2026, compared to 115.6% in the prior year period. The decrease was primarily a result of lower catastrophe and large losses in the quarter compared to the prior year period. Our Annualized Operating ROAE was 15.2% in the three months ended March 31, 2026. During the three months ended March 31, 2026, we repurchased 11,544,855 common shares for $219.4 million, including commission expense, at a weighted average cost per share of $19.00, including commission expenses.
Recent Developments
Pelagos Insurance Capital (formerly Fidelis Insurance Group) Rebrand
Following shareholder approval at the Annual General Meeting on April 28, 2026, Fidelis Insurance Group has rebranded as Pelagos Insurance Capital, effective May 11, 2026. The legal name change became effective on the same date and the Company begun trading on the New York Stock Exchange under its new name and ticker symbol, “PLGO,” on May 12, 2026.
Performance Measures and Non-GAAP Financial Measures
In presenting our results, we have included certain non-GAAP financial measures that we believe are useful to consider, in addition to our U.S. GAAP results, for a more complete understanding of the financial performance and position of PLGO. The key performance measures and non-GAAP financial measures that we believe are meaningful in analyzing our performance are summarized below and where applicable a reconciliation of non-GAAP financial measures to U.S. GAAP financials is set out. However, any non-GAAP financial measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP and our methodology for calculating these measures may be different from the way our industry peers calculate these measures.
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Underwriting Performance Measures
The table below reconciles our attritional and catastrophe and large loss ratios to losses and loss adjustment expenses, loss ratio, underwriting ratio and combined ratio for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Net premiums earned | $ | 568.5 | $ | 603.0 | |||||||
| Attritional losses | 154.6 | 136.7 | |||||||||
| Catastrophe and large losses | 72.3 | 333.3 | |||||||||
| Prior year favorable development | (3.1) | (40.8) | |||||||||
Losses and loss adjustment expenses | 223.8 | 429.2 | |||||||||
| Policy acquisition expenses (third party) | 152.5 | 167.9 | |||||||||
The Fidelis Partnership commissions(1) | 86.8 | 78.4 | |||||||||
| General and administrative expenses | $ | 29.2 | $ | 22.0 | |||||||
Attritional loss ratio | 27.2 | % | 22.7 | % | |||||||
Catastrophe and large loss ratio | 12.7 | % | 55.3 | % | |||||||
| Prior year loss reserve development impact on loss ratio | (0.5 | %) | (6.8 | %) | |||||||
Loss ratio | 39.4 | % | 71.2 | % | |||||||
| Policy acquisition expenses ratio | 26.8 | % | 27.8 | % | |||||||
| Underwriting ratio | 66.2 | % | 99.0 | % | |||||||
| The Fidelis Partnership commissions ratio | 15.3 | % | 13.0 | % | |||||||
| General and administrative expenses ratio | 5.1 | % | 3.6 | % | |||||||
| Combined ratio | 86.6 | % | 115.6 | % | |||||||
(1) Included in policy acquisition expenses on the Consolidated Statements of Income. For further details, see Note 12 (Related Party Transactions) of our unaudited consolidated financial statements.
•Loss ratio: is calculated by dividing losses and loss adjustment expenses by net premiums earned (“NPE”). The losses will be affected by the occurrence and frequency of catastrophe events, the volume and severity of non-catastrophe losses and the extent of any outwards reinsurance that mitigates the effect of those losses.
•Attritional loss ratio and catastrophe and large loss ratio: the attritional loss ratio is a non-GAAP measure of the loss ratio excluding the impact of catastrophe and large losses. Management believes that the attritional loss ratio is a performance measure that is useful to investors as it excludes losses that are not as predictable as to timing and amount. The attritional loss ratio is calculated by dividing the losses and loss adjustment expenses, excluding catastrophe and large losses and prior year development, by NPE. The catastrophe and large loss ratio is a non-GAAP measure that is calculated by dividing the current year catastrophe and large loss expense by NPE.
•Underwriting ratio: is calculated by dividing losses and loss adjustment expenses and policy acquisition expenses (excluding TFP commissions) by NPE, or equivalently, by adding the loss ratio and policy acquisition expense ratio (excluding TFP commissions).
•Combined ratio: is calculated by dividing losses and loss adjustment expenses, policy acquisition expenses and general and administrative expenses by NPE, or equivalently, by adding the loss ratio, policy acquisition expense ratio, The Fidelis Partnership commissions ratio and general and administrative expense ratio. A combined ratio under 100% indicates an underwriting profit, while a combined ratio over 100% indicates an underwriting loss.
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Investment Performance Measures
The table below sets out the calculations of our investment performance measures for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net investment income | $ | 43.7 | $ | 49.5 | |||||||
| Net realized and unrealized gains on other investments | 0.5 | 1.1 | |||||||||
| Net realized and unrealized investment gains/(losses) excluding other investments | (2.1) | 4.8 | |||||||||
Net investment return | 42.1 | 55.4 | |||||||||
| Opening | |||||||||||
| Total investments | 3,237.4 | 3,834.7 | |||||||||
| Cash and cash equivalents and restricted cash and cash equivalents | 1,247.6 | 946.6 | |||||||||
| Derivative assets, at fair value | 2.4 | — | |||||||||
| Accrued investment income | 28.3 | 35.3 | |||||||||
| Investment assets pending settlement | 4.8 | 0.5 | |||||||||
| Derivative liabilities, at fair value | (1.7) | (0.5) | |||||||||
| Investment liabilities pending settlement | (6.6) | (21.1) | |||||||||
| Net investable assets | 4,512.2 | 4,795.5 | |||||||||
Closing | |||||||||||
| Total investments | 3,437.7 | 3,426.9 | |||||||||
| Cash and cash equivalents and restricted cash and cash equivalents | 1,061.9 | 927.7 | |||||||||
| Derivative assets, at fair value | — | 0.1 | |||||||||
| Accrued investment income | 23.5 | 26.3 | |||||||||
| Investment assets pending settlement | 10.0 | 12.7 | |||||||||
| Derivative liabilities, at fair value | (2.0) | (1.7) | |||||||||
| Investment liabilities pending settlement | (19.1) | (23.7) | |||||||||
| Net investable assets | 4,512.0 | 4,368.3 | |||||||||
Average investable assets | $ | 4,512.1 | $ | 4,581.9 | |||||||
| Net investment return - annualized | 3.7 | % | 4.8 | % | |||||||
•Net investment return percentage: is calculated as annualized net investment return divided by total average investable assets (including cash and cash equivalents and restricted cash and cash equivalents).
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Operating Performance Measures
The table below sets out the calculation of our operating performance measures for the three months ended March 31, 2026 and 2025:
| Three months ended | |||||||||||
| ($ in millions except for share and per share amounts) | March 31, 2026 | March 31, 2025 | |||||||||
| Net income/(loss) | $ | 108.0 | $ | (42.5) | |||||||
| Adjustment for net realized and unrealized investment (gains)/losses | 1.6 | (5.9) | |||||||||
| Adjustment for net foreign exchange losses | 0.1 | 2.5 | |||||||||
| Adjustment for corporate and other expenses | 0.4 | — | |||||||||
Income tax (benefit)/expense (1) | (21.7) | 0.6 | |||||||||
| Operating net income/(loss) | $ | 88.4 | $ | (45.3) | |||||||
| Average common shareholders' equity | $ | 2,326.8 | $ | 2,419.9 | |||||||
| Weighted average common shares outstanding | 92,961,003 | 111,543,154 | |||||||||
| Share-based compensation plans | 686,441 | — | |||||||||
| Weighted average diluted common shares outstanding | 93,647,444 | 111,543,154 | |||||||||
| Annualized ROAE | 18.6 | % | (7.2) | % | |||||||
| Annualized Operating ROAE | 15.2 | % | (7.6) | % | |||||||
| Earnings/(loss) per diluted common share | $ | 1.15 | $ | (0.38) | |||||||
| Operating EPS | $ | 0.94 | $ | (0.41) | |||||||
(1) Income tax (benefit)/expense on adjustments to net income/(loss). The income tax benefit for the three months ended March 31, 2026 includes the reversal of a U.K. top-up tax charge of $21.4 million, see Note 15 (Income Taxes) of our unaudited consolidated financial statements.
•Operating net income/(loss): is a non-GAAP financial measure of our performance which does not consider the impact of certain non-recurring and other items that may not properly reflect the ordinary activities of our business, its performance or its future outlook. This measure is calculated as net income/(loss) excluding net realized and unrealized investment gains/(losses), net foreign exchange losses, corporate and other expenses, and the income tax effect on these items.
•Annualized return on average common equity (“Annualized ROAE”): represents annualized net income/(loss) divided by average common shareholders’ equity.
•Annualized operating return on average common equity (“Annualized Operating ROAE”): is a non-GAAP financial measure that represents a meaningful comparison between periods of our financial performance expressed as a percentage and is calculated as annualized operating net income/(loss) divided by average common shareholders’ equity.
•Operating earnings per share (“Operating EPS”): is a non-GAAP financial measure that represents a valuable measure of profitability and enables investors, analysts, rating agencies and other users of our financial information to more easily analyze our results in a manner similar to how management analyzes its underlying business performance. It is calculated by dividing operating net income/(loss) by the weighted average diluted common shares outstanding.
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Results of Operations
The following table sets forth the key items discussed in the consolidated results of operations section, and the period over period change, for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Underwriting income/(loss) | $ | 76.2 | $ | (94.5) | $ | 170.7 | |||||||||||
| Net investment income | 43.7 | 49.5 | (5.8) | ||||||||||||||
| Net realized and unrealized investment gains/(losses) | (1.6) | 5.9 | (7.5) | ||||||||||||||
| Corporate and other expenses | (0.4) | — | (0.4) | ||||||||||||||
| Net foreign exchange losses | (0.1) | (2.5) | 2.4 | ||||||||||||||
| Financing costs | (14.7) | (8.7) | (6.0) | ||||||||||||||
| Income tax benefit | 4.9 | 7.8 | (2.9) | ||||||||||||||
| Net income/(loss) | $ | 108.0 | $ | (42.5) | $ | 150.5 | |||||||||||
Underwriting Results by Segment
We classify our business into two segments: Insurance and Reinsurance.
The Insurance segment is comprised of a portfolio of Property, Marine, Asset Backed Finance & Portfolio Credit, Energy, Cyber, Aviation & Aerospace, Political Risk, Violence & Terror, and Other Insurance risks.
The Reinsurance segment is primarily a property catastrophe book, with a smaller proportion of Retro & Whole Account business.
Insurance Segment
The following table is a summary of our Insurance segment’s underwriting results:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Gross premiums written | $ | 1,436.1 | $ | 1,267.0 | $ | 169.1 | |||||||||||
| Reinsurance premium ceded | (432.1) | (458.1) | 26.0 | ||||||||||||||
| Net premiums written | 1,004.0 | 808.9 | 195.1 | ||||||||||||||
| Net premiums earned | 514.9 | 511.9 | 3.0 | ||||||||||||||
| Losses and loss adjustment expenses | (227.8) | (281.4) | 53.6 | ||||||||||||||
| Policy acquisition expenses | (139.2) | (148.2) | 9.0 | ||||||||||||||
| Underwriting income | $ | 147.9 | $ | 82.3 | $ | 65.6 | |||||||||||
| Loss ratio | 44.2 | % | 55.0 | % | (10.8) pts | ||||||||||||
| Policy acquisition expense ratio | 27.0 | % | 29.0 | % | (2.0) pts | ||||||||||||
| Underwriting ratio | 71.2 | % | 84.0 | % | (12.8) pts | ||||||||||||
For the three months ended March 31, 2026, our GPW increased primarily driven by growth from newly onboarded partnerships in several lines of business. These increases were 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 months ended March 31, 2026, our net premiums earned ("NPE") remained consistent with the prior year period.
Our policy acquisition expense ratio for the three months ended March 31, 2026 decreased due to changes in the mix of business written and ceded.
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The following table is a summary of our Insurance segment’s losses and loss adjustment expenses:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Attritional losses | $ | 140.8 | $ | 122.6 | $ | 18.2 | |||||||||||
| Catastrophe and large losses | 71.8 | 166.3 | (94.5) | ||||||||||||||
| (Favorable)/adverse prior year development | 15.2 | (7.5) | 22.7 | ||||||||||||||
| Losses and loss adjustment expenses | $ | 227.8 | $ | 281.4 | $ | (53.6) | |||||||||||
| Loss ratio - attritional losses | 27.3 | % | 23.9 | % | 3.4 pts | ||||||||||||
| Loss ratio - catastrophe and large losses | 13.9 | % | 32.6 | % | (18.7) pts | ||||||||||||
| Loss ratio - prior accident years | 3.0 | % | (1.5) | % | 4.5 pts | ||||||||||||
| Loss ratio | 44.2 | % | 55.0 | % | (10.8) pts | ||||||||||||
For the three months ended March 31, 2026, our loss ratio in the Insurance segment improved by 10.8 points compared to the prior year period.
The attritional loss ratio for the three months ended March 31, 2026 increased by 3.4 points compared to the prior year period due to a higher level of small losses in the current year period.
The catastrophe and large losses for the three months ended March 31, 2026, were primarily attributable to loss events in various lines of business including Other Insurance, Marine, Property and Political Risk, Violence & Terror. 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 smaller losses in various lines of business including Other Insurance, Property and Aviation & Aerospace.
For the three months ended March 31, 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 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:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Gross premiums written | $ | 404.3 | $ | 455.9 | $ | (51.6) | |||||||||||
| Reinsurance premium ceded | (228.0) | (238.4) | 10.4 | ||||||||||||||
| Net premiums written | 176.3 | 217.5 | (41.2) | ||||||||||||||
| Net premiums earned | 53.6 | 91.1 | (37.5) | ||||||||||||||
| Losses and loss adjustment expenses | 4.0 | (147.8) | 151.8 | ||||||||||||||
| Policy acquisition expenses | (13.3) | (19.7) | 6.4 | ||||||||||||||
| Underwriting income/(loss) | $ | 44.3 | $ | (76.4) | $ | 120.7 | |||||||||||
| Loss ratio | (7.5) | % | 162.2 | % | (169.7) pts | ||||||||||||
| Policy acquisition expense ratio | 24.8 | % | 21.6 | % | 3.2 pts | ||||||||||||
| Underwriting ratio | 17.3 | % | 183.8 | % | (166.5) pts | ||||||||||||
For the three months ended March 31, 2026, GPW decreased primarily due to reinstatement premiums in the prior year period related to the California wildfires, while NPE decreased due to the acceleration of earnings on contracts with exposure to the California wildfires in the prior year period.
Our policy acquisition expense ratio for the three months ended March 31, 2026 increased primarily due to changes in ceded premium and commissions earned from outwards reinsurance partners.
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The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Attritional losses | $ | 13.8 | $ | 14.1 | $ | (0.3) | |||||||||||
| Catastrophe and large losses | 0.5 | 167.0 | (166.5) | ||||||||||||||
| Favorable prior year development | (18.3) | (33.3) | 15.0 | ||||||||||||||
| Losses and loss adjustment expenses | $ | (4.0) | $ | 147.8 | $ | (151.8) | |||||||||||
| Loss ratio - attritional losses | 25.7 | % | 15.5 | % | 10.2 pts | ||||||||||||
| Loss ratio - catastrophe and large losses | 0.9 | % | 183.3 | % | (182.4) pts | ||||||||||||
| Loss ratio - prior accident years | (34.1) | % | (36.6) | % | 2.5 pts | ||||||||||||
| Loss ratio | (7.5) | % | 162.2 | % | (169.7) pts | ||||||||||||
The attritional loss ratio for the three months ended March 31, 2026, increased by 10.2 points compared to the prior year period. Although losses were similar in each period, the prior year period had higher NPE due to the reinstatement premiums discussed above, reducing the prior period loss ratio.
There were no material catastrophe and large losses for the three months ended March 31, 2026. The catastrophe and large losses for the three months ended March 31, 2025 were attributable to the California wildfires.
For the three months ended March 31, 2026, favorable prior year development was driven by positive development on catastrophe losses and benign prior year attritional experience.
Other Underwriting Expenses
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:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Ceding commission expense | $ | 76.6 | $ | 78.4 | $ | (1.8) | |||||||||||
| Profit commission expense | 10.2 | — | 10.2 | ||||||||||||||
| Total commissions | $ | 86.8 | $ | 78.4 | $ | 8.4 | |||||||||||
| Ceding commission expense ratio | 13.5 | % | 13.0 | % | 0.5 pts | ||||||||||||
| Profit commission expense ratio | 1.8 | % | — | % | 1.8 pts | ||||||||||||
| The Fidelis Partnership commissions ratio | 15.3 | % | 13.0 | % | 2.3 pts | ||||||||||||
For the three months ended March 31, 2026, the increase in The Fidelis Partnership commissions ratio was driven by improved performance in the current year period compared to the prior year period. For further details, see Note 12 (Related Party Transactions) of our unaudited consolidated financial statements.
General and Administrative Expenses
For the three months ended March 31, 2026, general and administrative expenses were $29.2 million (2025: $22.0 million). The increase was primarily due to higher compensation expense, driven by increased headcount and improved performance compared to the prior year period, which resulted in higher variable compensation accruals in the current year. The increase was also due to higher IT expenses, as we made strategic investments in enhancing our infrastructure and technology.
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Investments
The components of net investment return are as follows:
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Net investment income | $ | 43.7 | $ | 49.5 | $ | (5.8) | |||||||||||
| Net realized and unrealized gains on other investments | 0.5 | 1.1 | (0.6) | ||||||||||||||
| Net realized and unrealized investment gains/(losses) excluding other investments | (2.1) | 4.8 | (6.9) | ||||||||||||||
Net investment return | $ | 42.1 | $ | 55.4 | $ | (13.3) | |||||||||||
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 months ended March 31, 2026, we generated net investment income of $43.7 million at an average yield of 4.2% (2025: $49.5 million at an average yield of 4.5%). The decrease in our net investment income for the three months ended March 31, 2026, was driven by lower investable assets compared to the prior year period as well as a lower yield achieved on the fixed income portfolio and cash balances.
Net Realized and Unrealized Gains/(Losses) on Other Investments
Net realized and unrealized gains 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 March 31, 2026, compared to the prior year period, was driven by a negative change in the NAV on our fixed income funds as interest rates moved higher in the quarter.
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.
The decrease in net realized and unrealized investment gains/(losses) excluding other investments for the three months ended March 31, 2026, resulted from movements in our provision for current expected credit losses of $(2.2) million (2025: $4.0 million).
Corporate and Other Expenses
Corporate and other expenses in the three months ended March 31, 2026 include expenses related to our rebrand.
Net Foreign Exchange Gains/(Losses)
At March 31, 2026, we held foreign exchange contracts with a notional amount of $158.1 million (December 31, 2025: $133.3 million). These contracts are used to manage foreign currency risks in our underwriting and non-investment operations. The foreign exchange contracts were recorded as derivatives at fair value in the Consolidated Balance Sheets with changes recorded as net foreign exchange gains and losses in the Consolidated Statements of Income.
Financing Costs
For the three months ended March 31, 2026, financing costs were $14.7 million (2025: $8.7 million). Our financing costs increased as our debt level increased in June 2025. For further details related to the debt issuance, see Note 10 (Long Term Debt) of our unaudited consolidated financial statements. Also included in financing costs are costs associated with our letter of credit facilities as discussed in Note 11a (Commitments and Contingencies - Letter of Credit Facilities) of our unaudited consolidated financial statements.
Financial Condition, Liquidity and Capital Resources
Financial Condition at March 31, 2026
•Total cash and cash equivalents, restricted cash and cash equivalents, and investments of $4.5 billion. 92.1% is comprised of cash and cash equivalents, restricted cash and cash equivalents, fixed maturities, short-term securities and fixed income funds.
•The average duration of the available-for-sale fixed income portfolio was 2.7 years.
•Total long-term debt of $843.5 million, resulting in a debt-to-total capital ratio of 27.2%.
•Total capital of $3.1 billion, with $232.7 million of capital returned to common shareholders in the three months ended March 31, 2026, including common share repurchases of $219.4 million and dividends of $13.3 million.
•Book value per diluted common share of $26.22 (dilutive shares at March 31, 2026 of 449,251).
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Liquidity
Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations. Management monitors the liquidity of PLGO and each of our operating insurance subsidiaries. As a Bermuda holding company, PLGO relies on dividends and other distributions from its operating subsidiaries to provide cash flow to meet ongoing cash requirements, including principal and interest payments on our debt and other expenses, tax expenses, the repurchase of common shares, and dividends to the holders of our common shares.
The payment of dividends by our subsidiaries is, under certain circumstances, limited by the applicable laws and regulations in the various jurisdictions in which our subsidiaries operate. In addition, insurance laws require our insurance subsidiaries to maintain certain measures of solvency and liquidity. We believe that each of our insurance subsidiaries and branches exceeded the minimum solvency, capital and surplus requirements in their applicable jurisdictions at March 31, 2026.
During the three months ended March 31, 2026, PLGO received dividends from subsidiaries of $250.0 million.
Management considers the current cash and cash equivalents, together with dividends declared or expected to be declared by the operating insurance subsidiaries, sufficient to appropriately satisfy the liquidity requirements of PLGO.
Capital Resources
We maintain our capital at an appropriate level as determined by our Company Board-approved internal risk appetite and the financial strength required by our clients, regulators and rating agencies. We monitor and review the capital and liquidity positions of PLGO and its operating insurance subsidiaries on an ongoing basis.
The principal capital transactions related to our common shares undertaken during the three months ended March 31, 2026 were:
•Repurchase of common shares: Repurchases of an aggregate of 11,544,855 common shares for an aggregate of $219.4 million, excluding expenses, pursuant to the Company’s share repurchase program (see Note 14 (Share Capital Authorized and Issued) of our unaudited consolidated financial statements). The unutilized amount of the share repurchase authorization at May 8, 2026 was $184.7 million.
•Dividend payments to the common shareholders: During the three months ended March 31, 2026, we paid quarterly cash dividends to our common shareholders for a total dividend distribution of $13.3 million (2025: $11.1 million).
Long-term debt: At March 31, 2026, PLGO had $843.5 million in debt outstanding. For the three months ended March 31, 2026, PLGO incurred interest expense of $13.8 million on outstanding debt. Such debt was comprised of the Senior Notes, the Subordinated Notes and the Junior Notes.
In April 2026, the Company redeemed its Junior Notes for their principal amount of $125.0 million, plus accrued and unpaid interest up to the redemption date. The redemption is not expected to have a material adverse effect on the Company’s liquidity or ongoing operations. Other than the Senior Notes and the Subordinated Notes, PLGO has no material debt outstanding.
Access to capital: Our business operations are in part dependent on our financial strength and the opinions of the independent rating agencies thereof. We believe our financial strength provides us with the flexibility and capacity to obtain funds through debt or equity financing as required from the public and private markets. Our ability to access the capital markets is dependent on, among other things, our operating results, market conditions, and our perceived financial strength. We regularly monitor our capital and financial position, as well as investment and securities market conditions.
Ratings: Our financial strength ratings as determined by AM Best, Standard & Poor’s and Moody’s provide an independent assessment of our financial strength and ability to meet policyholder obligations. There have been no material changes to our financial strength ratings during the three months ended March 31, 2026.
Inflation: We consider the effects of inflation in pricing our contracts and policies through modeled components such as demand surge. Loss reserves are established to recognize likely loss settlements at the date payment is made. Those reserves inherently recognize the effects of inflation. The actual effects of inflation on our results cannot be accurately known, however, until claims are ultimately resolved.
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Cash Flows
The following table summarizes our cash flows from operating, investing and financing activities:
| Three Months Ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Net cash provided by/(used in) operating activities | $ | 274.0 | $ | (433.1) | |||||||
| Net cash provided by/(used in) investing activities | (224.7) | 444.7 | |||||||||
| Net cash used in financing activities | (234.1) | (33.2) | |||||||||
| Effect of exchange rate changes on foreign currency cash | (0.9) | 2.7 | |||||||||
| Net decrease in cash, restricted cash, and cash equivalents | $ | (185.7) | $ | (18.9) | |||||||
Cash flows provided by operating activities can fluctuate due to timing differences between the collection of premiums and reinsurance recoverables, the payment of losses and loss adjustment expenses, the payment of premiums to outward reinsurers and operating expenses. The net operating cash inflows, for the three months ended March 31, 2026, primarily related to premium receipts exceeding payments for claims, commissions and outward reinsurance premiums. The net operating cash outflows for the three months ended March 31, 2025, primarily related to payments for the California wildfire claims and Aviation litigation settlements exceeding premium receipts net of commissions and outward reinsurance premiums.
Net cash used in investing activities for the three months ended March 31, 2026, reflected the use of cash to purchase fixed maturity securities and other investments, partially offset by proceeds from the sales and maturities of fixed maturity securities. Net cash provided by investing activities for the three months ended March 31, 2025 reflected the proceeds from the maturities and sales of lower yielding fixed maturity securities, partially offset by use of cash to purchase fixed maturity securities at higher yields as well as cash flows used in operating activities.
Cash used in financing activities in the three months ended March 31, 2026, primarily consisted of cash outflows of $219.4 million from common share repurchases and $13.3 million from dividends paid to common shareholders. Cash used in financing activities in the three months ended March 31, 2025 primarily consisted of a cash outflow of $22.1 million from common share repurchases and $11.1 million from dividends paid to common shareholders.
Letter of Credit Facilities
We routinely enter into agreements with financial institutions to obtain secured and unsecured letter of credit facilities. These facilities are primarily used for the issuance of letters of credit to certain reinsurance entities which require us to post collateral. This is in order for these reinsurance counterparties to be able to take credit under local insurance regulations for the reinsurance protection obtained from companies located in jurisdictions which are not licensed or otherwise admitted as an insurer.
The following table summarizes the outstanding letters of credit at March 31, 2026:
| Bank | Commitment | In Use | Secured by collateral | ||||||||||||||
| Lloyds Bank plc | $ | 135.0 | $ | 31.8 | $ | 57.4 | |||||||||||
| Citibank N.A. London Branch | 70.0 | 16.3 | 17.4 | ||||||||||||||
| Barclays Bank plc | 135.0 | 40.0 | 36.5 | ||||||||||||||
| Bank of Montreal | 140.0 | 36.8 | 52.2 | ||||||||||||||
| Total | $ | 480.0 | $ | 124.9 | $ | 163.5 | |||||||||||
Quantitative and Qualitative Disclosures about Market Risk
We believe that we are principally exposed to the following types of market risk: interest rate risk, foreign currency risk and equity price risk.
Interest Rate Risk. Our investment portfolio consists primarily of fixed maturity securities. Fluctuations in interest rates have a direct impact on the market valuation of these securities. Accordingly, our primary market risk exposure is to changes in interest rates. As interest rates rise, the market value of our fixed maturity portfolio falls and the converse is also true.
We manage interest rate risk by maintaining a portfolio of fixed maturity securities where the duration of the portfolio broadly matches the duration of our liabilities in order to reduce the net economic impact from changes in interest rates. At March 31, 2026, our fixed maturity portfolio had an approximate duration of 2.7 years.
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The following table summarizes the effect that an immediate, parallel shift in the interest rate yield curve would have on the market value of our fixed maturity securities, available-for-sale, short-term investments, available-for-sale, and fixed income funds at March 31, 2026:
| Interest Rate Shift in Basis Points | -100 | -50 | 0 | 50 | 100 | ||||||||||||||||||||||||
| Market Value | $ | 3,166.8 | $ | 3,123.9 | $ | 3,081.5 | $ | 3,039.6 | $ | 2,998.3 | |||||||||||||||||||
| Gain/(Loss) | $ | 85.3 | $ | 42.4 | — | $ | (41.9) | $ | (83.2) | ||||||||||||||||||||
Percentage of portfolio at March 31, 2026 | 2.8 | % | 1.4 | % | — | (1.4 | %) | (2.7 | %) | ||||||||||||||||||||
Foreign Currency Risk: Our reporting currency and functional currency is the U.S. dollar. At March 31, 2026, 97.3% of our cash and investments was held in U.S. dollars (December 31, 2025: 97.4%), with the balance of 2.7% held primarily in Canadian dollars, Euros and British Pound Sterling (December 31, 2025: 2.6%).
Other foreign currency amounts are remeasured to the appropriate functional currency and the resulting foreign exchange gains or losses are reflected in the income statement. Both the remeasurement and translation are calculated using current exchange rates for the balance sheets and monthly exchange rates for the income statements. We may experience exchange losses to the extent that our foreign currency exposure is not properly managed or otherwise hedged, which would in turn adversely affect our results of operations and financial condition. An increase or decrease of 10% in the U.S. dollar would result in an additional gain or loss for the period ended March 31, 2026 of $6.4 million (December 31, 2025: $3.1 million) with an equal impact on net assets, assuming all other assumptions remain unchanged.
We will continue to manage our foreign currency risk by seeking to match our liabilities under insurance and reinsurance policies that are payable in foreign currencies with investments that are denominated in those currencies. This may involve the use of foreign exchange contracts from time to time. A foreign exchange contract involves an obligation to purchase or sell a specified currency at a future date at a price set at the time of the contract. Foreign exchange contracts will not eliminate fluctuations in the value of our assets and liabilities denominated in foreign currencies but rather allow us to establish a rate of exchange for a future point in time.
As the foreign exchange contracts settle, the realized gain or loss is included with foreign exchange gains and losses in the income statement. For the three months ended March 31, 2026, the amount recognized within foreign exchange gains and losses for settled foreign exchange contracts was a realized gain/(loss) of $3.7 million (2025: $(3.2) million).
Equity price risk: Our investment portfolio includes hedge funds which have exposure to equity price risk, which is the potential loss arising from decreases in fair value. At March 31, 2026, the fair value of investments with direct exposure to equity price risk totaled $318.7 million (December 31, 2025: $205.8 million). An immediate hypothetical 10% decline in the value of each position would reduce the fair value of such investments by $31.9 million. A hypothetical 10% increase in the value of each position would increase the fair value of such investments by $31.9 million.
Cautionary Note Regarding Forward-Looking Statements
The above discussion contains “forward-looking statements” which include all statements that do not relate solely to historical or current facts and which may concern our strategy, plans, targets, projections or intentions and are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “continue,” “grow,” “opportunity,” “create,” “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “target,” “tracking,” “expect,” “evolve,” “achieve,” “remain,” “proactive,” “pursue,” “optimize,” “emerge,” “build,” “looking ahead,” “commit,” “strategy,” “predict,” “potential,” “assumption,” “future,” “likely,” “may,” “should,” “could,” “will” and the negative of these and also similar terms and phrases. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are qualified by these cautionary statements, because they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, targets, projections, anticipated events and trends, the economy and other future conditions, but are subject to significant business, economic, legal and competitive uncertainties, many of which are beyond our control or are subject to change. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
Forward-looking statements contained therein may include, among others, statements in relation to: targeted operating results such as return on equity, net income and earnings per share, underwriting profitability and target combined, loss and expense ratios, growth in gross premiums written and book value per share; our expectations regarding current settlement discussions, court cases and current settlement and litigation strategies; our expectations regarding our business, including the industries we operate in, and capital management strategy and the performance of our business; information regarding our estimates for catastrophes, claims and other loss events; our expectations regarding our partnerships and strategic agreements, including The Fidelis Partnership; anticipated market conditions, pricing cycles, and competitive positioning; sustainability and renewable energy initiatives; use of and exposure to emerging technologies; our management team and human capital; our share price performance and valuation; and our regulatory or listing status; our liquidity and capital resources; and expectations of the effect on our results of operations and financial condition of
36
our loss claims, litigation, climate change impacts, contingent liabilities and governmental and regulatory investigations and proceedings.
Our actual results in the future could differ materially from those anticipated in any forward-looking statements as a result of changes in assumptions, risks, uncertainties and other factors impacting us, many of which are outside our control, including:
•the inherent uncertainty, volatility and unpredictability of underwriting insurance and reinsurance risks, including low-frequency, high-severity events and natural and non-natural catastrophic events;
•the frequency and severity of claims and loss activity, including the impact of climate change, inflation (including social inflation), emerging claims trends and complex causation or coverage issues;
•limitations in available data and the reliability of pricing, accumulation, catastrophe and other analytical models used to estimate losses and exposures;
•the adequacy of our loss reserves and the actual development of losses and loss adjustment expenses;
•macroeconomic, geopolitical and market conditions, sanctions and other global developments;
•cyclical changes in the insurance and reinsurance industry, including premium rate movements, competitive pressures and consolidation;
•our ability to implement our strategy, identify and execute growth opportunities and compete effectively;
•any downgrades, potential downgrades or other negative actions by rating agencies;
•the availability, affordability and collectability of reinsurance and retrocessional protections;
•litigation, arbitration and regulatory proceedings and the inherent uncertainty of their outcomes;
•our reliance on TFP and other third parties for underwriting, claims handling and other services, and the effectiveness of our risk management and oversight framework;
•operational risks, including system failures, cybersecurity incidents, data protection breaches and risks associated with emerging technologies, including artificial intelligence, and evolving regulatory requirements applicable thereto;
•risks relating to our investment portfolio, including market volatility, interest rate movements, credit risk, liquidity risk and currency fluctuations;
•our ability to access capital and liquidity, including through letters of credit and other financing arrangements, and our status as a holding company dependent on dividends and other distributions from our operating subsidiaries;
•regulatory developments, including changes in capital regimes, increased supervisory scrutiny and compliance with economic and trade sanctions, anti-bribery and similar laws;
•tax developments, including changes in tax laws, interpretations and international tax initiatives;
•our ability to attract and retain key personnel;
•our potential inability to pay dividends or distributions in accordance with our dividend policy;
•our ability to maintain the listing of our common shares on the NYSE or another national securities exchange;
•the Company’s status as a foreign private issuer; and
•the other risks, uncertainties and other factors disclosed under the section titled ‘Risk Factors’ in our Annual Report on Form 20-F filed with the SEC on March 5, 2026, as well as subsequent current reports and other filings with the SEC available electronically at www.sec.gov.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in our filings with the SEC. All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to therein. The forward-looking statements contained herein are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control and which could cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements, expectations, beliefs and projections made by us herein speak only as of the date referenced on such date on which they are made and are expressed in good faith and our management believes that there is reasonable basis for them, based only on information currently available to us. There can be no assurance that management’s expectations, beliefs, and projections will be achieved and actual results may vary materially from what is expressed or indicated by the forward-looking statements. Furthermore, our past performance, and that of our management team and of TFP, should not be construed as a guarantee of future performance. Except to the extent required by applicable laws and regulations, we undertake no obligation to update or revise any forward-looking statements
37
contained in the above discussion, whether as a result of new information, future developments or otherwise. In light of these risks and uncertainties, you should keep in mind that any event described in a forward-looking statement might not occur.
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Q1 2026 Earnings Presentation
This presentation contains “forward-looking statements” which include all statements that do not relate solely to historical or current facts and which may concern our strategy, plans, targets, projections or intentions and are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “continue,” “grow,” “opportunity,” “create,” “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “target,” “tracking,” “expect,” “evolve,” “achieve,” “remain,” “proactive,” “pursue,” “optimize,” “emerge,” “build,” “looking ahead,” “commit,” “strategy,” “predict,” “potential,” “assumption,” “future,” “likely,” “may,” “should,” “could,” “will” and the negative of these and also similar terms and phrases. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are qualified by these cautionary statements, because they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, targets, projections, anticipated events and trends, the economy and other future conditions, but are subject to significant business, economic, legal and competitive uncertainties, many of which are beyond our control or are subject to change. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements contained therein may include, among others, statements in relation to: targeted operating results such as return on equity, net income and earnings per share, underwriting profitability and target combined, loss and expense ratios, growth in gross premiums written and book value per share; our expectations regarding current settlement discussions, court cases and current settlement and litigation strategies; our expectations regarding our business, including the industries we operate in, and capital management strategy and the performance of our business; information regarding our estimates for catastrophes, claims and other loss events; our expectations regarding our partnerships and strategic agreements, including The Fidelis Partnership; anticipated market conditions, pricing cycles, and competitive positioning; sustainability and renewable energy initiatives; use of and exposure to emerging technologies; our management team and human capital; our share price performance and valuation; and our regulatory or listing status; our liquidity and capital resources; and expectations of the effect on our results of operations and financial condition of our loss claims, litigation, climate change impacts, contingent liabilities and governmental and regulatory investigations and proceedings. Our actual results in the future could differ materially from those anticipated in any forward-looking statements as a result of changes in assumptions, risks, uncertainties and other factors impacting us, many of which are outside our control, including: the inherent uncertainty, volatility and unpredictability of underwriting insurance and reinsurance risks, including low-frequency, high-severity events and natural and non-natural catastrophic events; the frequency and severity of claims and loss activity, including the impact of climate change, inflation (including social inflation), emerging claims trends and complex causation or coverage issues; limitations in available data and the reliability of pricing, accumulation, catastrophe and other analytical models used to estimate losses and exposures; the adequacy of our loss reserves and the actual development of losses and loss adjustment expenses; macroeconomic, geopolitical and market conditions, sanctions and other global developments; cyclical changes in the insurance and reinsurance industry, including premium rate movements, competitive pressures and consolidation; our ability to implement our strategy, identify and execute growth opportunities and compete effectively; any downgrades, potential downgrades or other negative actions by rating agencies; the availability, affordability and collectability of reinsurance and retrocessional protections; litigation, arbitration and regulatory proceedings and the inherent uncertainty of their outcomes; our reliance on TFP and other third parties for underwriting, claims handling and other services, and the effectiveness of our risk management and oversight framework; operational risks, including system failures, cybersecurity incidents, data protection breaches and risks associated with emerging technologies, including artificial intelligence, and evolving regulatory requirements applicable thereto; risks relating to our investment portfolio, including market volatility, interest rate movements, credit risk, liquidity risk and currency fluctuations; our ability to access capital and liquidity, including through letters of credit and other financing arrangements, and our status as a holding company dependent on dividends and other distributions from our operating subsidiaries; regulatory developments, including changes in capital regimes, increased supervisory scrutiny and compliance with economic and trade sanctions, anti-bribery and similar laws; tax developments, including changes in tax laws, interpretations and international tax initiatives; our ability to attract and retain key personnel; our potential inability to pay dividends or distributions in accordance with our dividend policy; our ability to maintain the listing of our common shares on the NYSE or another national securities exchange; the Company’s status as a foreign private issuer; and the other risks, uncertainties and other factors disclosed under the section titled ‘Risk Factors’ in our Annual Report on Form 20-F filed with the SEC on March 5, 2026, as well as subsequent current reports and other filings with the SEC available electronically at www.sec.gov. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in our filings with the SEC. All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to therein. The forward-looking statements contained herein are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control and which could cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements, expectations, beliefs and projections made by us herein speak only as of the date referenced on such date on which they are made and are expressed in good faith and our management believes that there is reasonable basis for them, based only on information currently available to us. There can be no assurance that management’s expectations, beliefs, and projections will be achieved and actual results may vary materially from what is expressed or indicated by the forward-looking statements. Furthermore, our past performance, and that of our management team and of TFP, should not be construed as a guarantee of future performance. Except to the extent required by applicable laws and regulations, we undertake no obligation to update or revise any forward-looking statements contained in the above discussion, whether as a result of new information, future developments or otherwise. In light of these risks and uncertainties, you should keep in mind that any event described in a forward-looking statement might not occur. Basis of Presentation Cautionary Note Regarding Forward-Looking Statements 2
Pelagos Insurance Capital: At a Glance Note: 1. Results as of March 31, 2026, and gross premiums written for the trailing twelve months (“TTM”) ended March 31, 2026. 2. The financial strength ratings included in this presentation are provided by third-party rating agencies and are subject to adjustment at the sole discretion of those agencies. The presentation does not constitute an endorsement of the ratings by the presenter or any other party. Highlights A strategic capital allocator and expert risk selector in specialty insurance and reinsurance, committed to long-term partnerships. 3 $13.7 bn Total Assets(1) $2.3 bn Shareholders’ Equity(1) $4.5 bn Cash & Invested Assets(1) $4.8 bn Gross Premiums Written(1) Financial Strength Rating(2) A AM Best Stable Outlook A- S&P Stable Outlook A3 Moody’s Stable Outlook 18% 2% 4% 5% 5% 10% 12% 15% 28% $910m (19%) INSURANCE $3,925m (81%) $4.8 Billion REINSURANCE Retro & Whole Account Cyber Aviation & Aerospace Political Risk, Violence & Terror Energy 1% Property Marine Property Reinsurance Asset Backed Finance & Portfolio Credit Gross Premiums Written(1) Other Insurance
$16.24 $20.69 $21.79 $24.61 $26.22$0.40 $0.90 $1.05 2022 2023 2024 2025 Mar 31, 2026 2026 First Quarter Key Takeaways 4 • We delivered strong results and are driving consistently higher book value per diluted share. This performance demonstrates the strength and flexibility of our capital allocator model. Our combined ratio for the quarter was 86.6%, our annualized Operating ROAE was 15.2%, and our book value per diluted share increased to $26.22. • Our growth highlights the unique advantages of our capital allocator model. Gross premiums written increased by 7%, driven by growth from our new underwriting partners. Our ability to allocate capital to a diverse and expanding universe of distribution networks provides significant agility, setting us apart in the market and supporting disciplined, profitable growth throughout the cycle. • We are balancing profitable underwriting with substantial capital returns, as reflected in the quarter's 7% increase in book value per diluted share. We repurchased 11.5 million common shares for an aggregate of $219 million, at an average price of $19.00 per common share. This includes $163 million through a privately negotiated transaction to repurchase all of the remaining shares of one of our original private equity sponsors, CVC Falcon Holdings Limited. $3.0 $3.6 $4.4 $4.7 $4.8 2022 2023 2024 2025 TTM Q1 2026 Gross Premiums Written CAGR: +16% Book Value Cumulative Common Dividends Book Value Per Diluted Common Share +68% (1) (1) As of the Separation Transactions on January 3, 2023. $ in billions
Key Quarterly Highlights 2026 First Quarter Highlights Note: 1. See Appendix for definitions and reconciliations of non-GAAP financial measures. Q1 2025 Q1 2026 Gross Premiums Written $1,723M $1,840M Net Premiums Earned $603M $569M Combined Ratio 115.6% 86.6% Annualized Operating ROAE(1) (7.6)% 15.2% Operating Net Income/(Loss)(1) $(45)M $88M Net Investment Income $50M $44M Operating EPS(1) $(0.41) $0.94 December 31, 2025 March 31, 2026 Book Value Per Diluted Share $24.61 $26.22 Total Assets $12.4B $13.7B Total Shareholders' Equity $2.4B $2.3B • Gross premiums written growth of $118 million or 7% from the first quarter of 2025, driven by new underwriting partners across the portfolio. • Combined ratio of 86.6%, an improvement of 29 points over the prior year period reflecting lower catastrophe and large losses in the quarter. • Annualized Operating ROAE of 15.2% for the quarter, an improvement of 23 points over the prior year period, reflecting strong underwriting performance. • Net investment income decrease of $6 million from the prior year period was driven by lower investable assets compared to the prior year period as well as a lower yield achieved on the fixed income portfolio and cash balances. • Book value per diluted common share was $26.22 at March 31, 2026, an increase of 7% including dividends from December 31, 2025, of $24.61. • Returned $233 million of capital to common shareholders in the three months ended March 31, 2026, including common share repurchases of $219.4 million and dividends of $13.3 million. 5
77.3% 70.0% 89.7% 81.9% 84.0% 71.2% 51.0% 42.8% 57.9% 52.5% 55.0% 44.2% 26.3% 27.2% 31.8% 29.4% 29.0% 27.0% Loss Ratio Policy Acquisition Expense Ratio 2022 2023 2024 2025 Q1 2025 Q1 2026 $2,413 $2,960 $3,539 $3,756 $1,267 $1,436 2022 2023 2024 2025 Q1 2025 Q1 2026 6 Insurance Note: 1. Underwriting Ratio is calculated by dividing losses and loss adjustment expenses and policy acquisition expenses (excluding TFP commissions) by net premiums earned. The Fidelis Partnership commissions are not allocated to the segment level and policy acquisition costs as presented in the underwriting ratio are third party acquisition costs. Gross Premiums Written Segment Highlights Underwriting Ratio(1) • Gross premiums written increased by 13% primarily driven by growth from newly onboarded partnerships in several lines of business. These increases were partially offset by a non-renewal in our Cyber line of business that did not meet our underwriting criteria and rating hurdles. • Loss ratio improved by 10.8 points driven by lower catastrophe and large losses in the current year period, compared to the California wildfires in the prior year period. • Policy acquisition expense ratio improved 2.0 pts due to changes in the mix of business written and ceded. $ in millions
97.4% 36.5% 38.9% 50.0% 183.8% 17.3%75.0% 9.3% 15.3% 23.7% 162.2% (7.5)% 22.4% 27.2% 23.6% 26.3% 21.6% 24.8% Loss Ratio Policy Acquisition Expense Ratio 2022 2023 2024 2025 Q1 2025 Q1 2026 $605 $619 $865 $961 $456 $404 2022 2023 2024 2025 Q1 2025 Q1 2026 7 Reinsurance Note: 1. Underwriting Ratio is calculated by dividing losses and loss adjustment expenses and policy acquisition expenses (excluding TFP commissions) by net premiums earned. The Fidelis Partnership commissions are not allocated to the segment level and policy acquisition costs as presented in the underwriting ratio are third party acquisition costs. 2. The catastrophe and large losses for the year ended December 31, 2022, related to Hurricane Ian, Australian floods and European storms. • Gross premiums written decreased by 11% primarily due to reinstatement premiums in the prior year period related to the California wildfires. • Loss ratio improved by 169.7 points driven by no material catastrophe and large losses in the current year period, compared to the California wildfires in the prior year period. • Policy acquisition expense ratio increased 3.2 points primarily due to changes in ceded premium and commissions earned from outwards reinsurance partners. $ in millions Gross Premiums Written Segment Highlights Underwriting Ratio(1) (2)
$50.6 $49.2 $50.6 $46.5 $44.2 Net Investment Income Realized and Unrealized Gains on Other Investments Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 • For the three months ended March 31, 2026, we generated net investment income of $43.7 million at an average yield of 4.2% (2025: $49.5 million at an average yield of 4.5%). • Overall book yield of 4.9% reflects steps taken to optimize portfolio. High Quality and Diversified Investment Portfolio 8 Note: 1. Realized and Unrealized Gains on Other Investments primarily relates to our strategic deployment of assets into alternative investments, including a hedge fund portfolio 2. Includes investments in our fixed income funds Asset Allocation As of March 31, 2026 $3.1 bn Fixed Income Portfolio(2) 2.7 yrs Duration A+ Weighted-Average Credit Quality ~83% Rated A or Better 37% Corporates 7% Hedge Funds 6% Agency MBS 4% Other ABS 15% U.S. Treasuries 24% Cash $4.5 bn Investment Portfolio Highlights Net Investment Income & Realized and Unrealized Gains on Other Investments(1) 6% Fixed Income Funds <1% Private Credit Funds
9 • Committed to a strategic and disciplined approach to capital allocation to maintain financial strength and drive profitable underwriting • Ample liquidity to pursue growth and return capital to shareholders • As of March 31, 2026, long-term debt comprised: ◦ $400 million 7.750% Subordinated Notes, due 2055 ◦ $330 million 4.875% Senior Notes, due 2030 ◦ $125 million 6.625% Junior Subordinated Notes, due 2041, which we redeemed in April 2026. • Since the inception of our share repurchase program in 2024, our strategic approach to share repurchases has contributed $1.99 to our book value per share Capital Management HighlightsCapital Strength and Balance Sheet Scale Strong Capital Position and Disciplined Approach to Capital Allocation $698.1 $210.8 $375.5 $111.8 Common share dividends Privately negotiated share repurchases Open market share repurchases $3,097.4 $2,253.9 $843.5 Long-term debt Common equity Note: 1. As of March 31, 2026. Subsequent to the redemption of the Junior Subordinated Notes, our pro forma debt-to-capital ratio would be 24.2%, as of March 31, 2026. 2. Includes pro rata shares repurchased from The Fidelis Partnership. 3. As of May 8, 2026. 4. Dividend yield is the annualized Q1 2026 dividend divided by $20.91, the closing share price as of May 8, 2026. As of March 31, 2026 ($ in millions) Capital Management Inception to Date As of March 31, 2026 ($ in millions) (2) 27.2% Debt-to-Capital Ratio(1) $0.15 Quarterly dividend $184.7 million Share repurchase authorization remaining(3) 2.9% Dividend Yield(4) (2)
Expert capital allocator and risk selector with a leading diversified specialty insurance and reinsurance portfolio Expanding network of experienced long-term underwriting partners provides differentiated access points to attractive risks which best fit our strategic priorities Demonstrated track record of growth and book value creation through the cycle with 68%(1) increase in book value per share since 2022 Strong capital position offers the flexibility to enhance shareholder returns while continuing to pursue compelling growth opportunities Pelagos Insurance Capital brings together strategic capital, expert risk selection and specialist underwriting expertise to create long-term value for shareholders 10 Highly experienced and connected leadership team with decades of deep relationships in the market Note: 1. Book value diluted common share growth as of January 3, 2023, the date on which a number of separation and reorganization transactions occurred to create two distinct holding companies and businesses: Pelagos Insurance Capital and The Fidelis Partnership (the “Separation Transactions”) through March 31, 2026, and includes accumulated dividends to common shareholders of $1.05. See slide 4 for further details Why Invest in Pelagos Insurance Capital
Appendix
Non-GAAP Financial Measures Reconciliation Three months ended ($ in millions except for share and per share amounts) March 31, 2026 March 31, 2025 Net income/(loss) $ 108.0 $ (42.5) Adjustment for net realized and unrealized investment (gains)/losses 1.6 (5.9) Adjustment for net foreign exchange losses 0.1 2.5 Adjustment for corporate and other expenses 0.4 — Income tax (benefit)/expense (1) (21.7) 0.6 Operating net income/(loss) $ 88.4 $ (45.3) Average common shareholders' equity $ 2,326.8 $ 2,419.9 Weighted average common shares outstanding 92,961,003 111,543,154 Share-based compensation plans 686,441 — Weighted average diluted common shares outstanding 93,647,444 111,543,154 Annualized ROAE 18.6 % (7.2) % Annualized Operating ROAE 15.2 % (7.6) % Earnings/(loss) per diluted common share $ 1.15 $ (0.38) Operating EPS $ 0.94 $ (0.41) 12 This Presentation includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) including operating net income, operating EPS, operating return on average common equity, and therefore are non-GAAP financial measures. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G. Operating net income/(loss) is a non-GAAP financial measure of our performance which does not consider the impact of certain non-recurring and other items that may not properly reflect the ordinary activities of our business, its performance or its future outlook. This measure is calculated as net income/(loss) excluding net realized and unrealized investment gains/(losses), net foreign exchange losses, corporate and other expenses, and the income tax effect on these items. Annualized operating return on average common equity (“Annualized Operating ROAE”) is a non-GAAP financial measure that represents a meaningful comparison between periods of our financial performance expressed as a percentage and is calculated as operating net income divided by average common shareholders’ equity. Operating earnings per share (“Operating EPS”) is a non-GAAP financial measure that represents a valuable measure of profitability and enables investors, analysts, rating agencies and other users of our financial information to more easily analyze our results in a manner similar to how management analyzes its underlying business performance. It is calculated by dividing operating net income/(loss) by the weighted average diluted common shares outstanding. (1) Income tax (benefit)/expense on adjustments to net income/(loss). The income tax benefit for the three months ended March 31, 2026 includes the reversal of a U.K. top-up tax charge of $21.4 million.
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