Pelagos Insurance Capital (PLGO) swings to $152M H1 2026 profit with better underwriting
Rhea-AI Filing Summary
Pelagos Insurance Capital Limited reported a return to strong profitability for the six months ended June 30, 2026. Net income was $152.4 million, or $1.71 per diluted share, compared with a loss in the prior-year period. Gross premiums written grew to $3.14 billion, up 6.6% year over year.
The underwriting result improved markedly: the combined ratio fell to 93.1% from 110.1%, driven by lower catastrophe and large losses, favorable prior-year reserve development of $35.8 million, and a much stronger Reinsurance segment loss ratio. Annualized Operating ROAE rose to 10.1% from negative 2.6%.
Book value per diluted common share reached $26.56 at June 30, 2026, a 9.1% increase including dividends since December 31, 2025. Capital management was active, with $305.3 million returned to common shareholders in the first half through share repurchases and dividends, while total assets increased to $13.99 billion.
Positive
- Underwriting turnaround: combined ratio improved to 93.1% for the first half of 2026 from 110.1% in 2025, moving the business from underwriting loss to underwriting income of $79.0 million.
- Profitability swing: net income for the first half was $152.4 million versus a net loss of $22.8 million a year earlier; Operating net income rose to $117.1 million from a loss of $31.6 million.
- Reinsurance segment recovery: Reinsurance loss ratio for the first half improved to (10.5)% from 89.7%, turning a prior underwriting loss of $22.3 million into underwriting income of $97.3 million.
- Reserve development and catastrophe profile: first-half net favorable prior-year reserve development of $35.8 million compared with net adverse development of $48.4 million, while catastrophe and large losses declined to $234.1 million from $407.6 million.
- Capital return and book value growth: book value per diluted share increased to $26.56 (up 9.1% including dividends since year-end 2025) while returning $305.3 million to shareholders through repurchases and dividends.
Negative
- Higher second-quarter catastrophe and large losses: Q2 2026 catastrophe and large losses were $161.8 million, more than doubling from $74.3 million in Q2 2025, pressuring the quarterly combined ratio to 99.5%.
- Rising operating cost base: general and administrative expenses increased to $58.5 million for the first half of 2026 from $44.3 million in 2025, reflecting higher strategic investment and variable compensation.
Key Figures
Net income H1 2026: $152.4 million
Gross premiums written H1 2026: $3,137.2 million
Combined ratio H1 2026: 93.1%
+5 more
8 metrics
Net income H1 2026
$152.4 million
Net income for the six months ended June 30, 2026
Gross premiums written H1 2026
$3,137.2 million
Gross premiums written for the six months ended June 30, 2026
Combined ratio H1 2026
93.1%
Group combined ratio for the six months ended June 30, 2026
Annualized Operating ROAE H1 2026
10.1%
Annualized Operating return on average common equity for H1 2026
Book value per diluted share
$26.56
Book value per diluted common share at June 30, 2026
Capital returned to shareholders H1 2026
$305.3 million
Total capital returned via repurchases and dividends in first half 2026
Catastrophe and large losses H1 2026
$234.1 million
Catastrophe and large losses for the six months ended June 30, 2026
Total assets
$13,994.2 million
Total assets at June 30, 2026
Key Terms
combined ratio, Annualized Operating ROAE, attritional loss ratio, catastrophe and large losses, +2 more
6 terms
combined ratio financial
"Combined ratio of 93.1%, an improvement of 17 points compared to 110.1%"
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 10.1%, an improvement of 13 points"
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 for the three and six months ended June 30, 2026, increased"
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.
catastrophe and large losses financial
"Catastrophe and large losses for the six months ended June 30, 2026 were"
Catastrophe and large losses describe sudden, unusually severe events—such as natural disasters, major accidents, or aggregated operational failures—that cause very large financial hits to a company or insurer. Investors care because these losses can wipe out profits, drain capital, threaten solvency and trigger higher prices or reduced coverage in the market; think of it like a neighborhood flood that destroys many homes at once and forces a big, unexpected bill for rebuilding and insurance payouts.
The Fidelis Partnership commissions financial
"The following table summarizes The Fidelis Partnership commissions earned"
non-GAAP financial measures financial
"therefore are non-GAAP financial measures. Reconciliations of such measures"
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.
Earnings Snapshot
Net income H1 2026: $152.4 million
Three and six months ended June 30, 2026
Net income H1 2026
$152.4 million
Improved from net loss of $22.8 million in H1 2025
Combined ratio H1 2026
93.1%
Improved from 110.1% in H1 2025
Gross premiums written H1 2026
$3,137.2 million
Increased 6.6% from $2,941.9 million in H1 2025
Operating net income H1 2026
$117.1 million
Improved from operating loss of $31.6 million in H1 2025
Book value per diluted share
$26.56
Up from $24.61 at December 31, 2025
FAQ
How did Pelagos Insurance Capital (PLGO) perform financially in the first half of 2026?
Pelagos reported net income of $152.4 million for the first half of 2026, versus a net loss of $22.8 million a year earlier. Operating net income was $117.1 million, and the combined ratio improved to 93.1% from 110.1%.
What were Pelagos Insurance Capital (PLGO) underwriting results and combined ratios?
For the first half of 2026, Pelagos generated underwriting income of $79.0 million with a 93.1% combined ratio, compared with an underwriting loss of $115.1 million and a 110.1% combined ratio in 2025. Q2 2026 combined ratio was 99.5%.
What were Pelagos Insurance Capital (PLGO) catastrophe and reserve development impacts?
First-half 2026 catastrophe and large losses were $234.1 million, down from $407.6 million in 2025. Net favorable prior-year reserve development was $35.8 million, versus net adverse development of $48.4 million a year earlier.
Did Pelagos Insurance Capital (PLGO) change its investment income or returns?
Net investment income was $87.7 million for the first half of 2026, compared with $94.1 million in 2025. Total net investment return, including realized and unrealized gains, was $111.0 million versus $106.7 million a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 August 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 ☐
On August 12, 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 and six months ended June 30, 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 August 12, 2026 | ||||
99.2 | Consolidated Financial Statements and the Management’s Discussion and Analysis for the three and six months ended June 30, 2026 | ||||
99.3 | Presentation dated August 12, 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: August 12, 2026 | By: | /s/ Allan C. Decleir | |||||||||
Name: | Allan C. Decleir | ||||||||||
Title: | Group Chief Financial Officer | ||||||||||
Pelagos Insurance Capital Reports Second Quarter 2026 Results
Gross premiums written of $1.3 billion, growth of 6.4% from the second quarter of 2025
Growth of 23% in book value per diluted common share including cumulative dividends from June 30, 2025
Second Quarter 2026 Highlights:
•Gross premiums written of $1.3 billion; growth of 6.4% from the second quarter of 2025
•Combined ratio of 99.5%, an improvement of 4 points compared to 103.7% in the second quarter of 2025
•Annualized operating return on average common equity (“Annualized Operating ROAE”) of 5.1%, an improvement of 3 points compared to the second quarter of 2025
•Total capital returned to common shareholders in the quarter of $72.6 million, including common share repurchases of $60.1 million, at an average price of $21.60 per share, and dividends of $12.5 million
•Net income of $44.4 million, or $0.52 per diluted common share, and operating net income of $28.7 million, or $0.34 per diluted common share
Half Year 2026 Highlights:
•Gross premiums written of $3.1 billion; growth of 6.6% from the first half of 2025
•Combined ratio of 93.1%, an improvement of 17 points compared to 110.1% in the first half of 2025
•Annualized Operating ROAE of 10.1%, an improvement of 13 points compared to the first half of 2025
•Total capital returned to common shareholders was $305.3 million, including common share repurchases of $279.5 million, at an average price of $19.51 per share, and dividends of $25.8 million
•Net income of $152.4 million, or $1.71 per diluted common share, and operating net income of $117.1 million, or $1.31 per diluted common share
•Book value per diluted common share was $26.56 at June 30, 2026, an increase of 9.1% including cumulative dividends from December 31, 2025, of $24.61
Pembroke, Bermuda, August 12, 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 second quarter ended June 30, 2026.
Dan Burrows, Group Chief Executive Officer of Pelagos Insurance Capital, commented: “Our first-half performance reflects the continued success of our capital allocator model and our underwriting discipline. Year-to-date, we grew gross premiums written by 6.6% and book value per diluted common share by 9.1%, and by 22.6% over the last 12 months.
We returned $73 million to shareholders in the second quarter through dividends and repurchases, underscoring our commitment to balancing profitable growth with accretive capital management.
Looking ahead, our network of underwriting partners provides differentiated access to compelling opportunities. Through evolving market conditions, our focus remains consistent - deploying capital where we see attractive risk-adjusted returns. We believe that agility, combined with our capital strength, positions Pelagos to continue creating long-term value for shareholders."
Pelagos Insurance Capital Limited
Wellesley House South | 90 Pitts Bay Road | HM08 | Pembroke | Bermuda
1
Second Quarter 2026 Consolidated Results | ||
•Net income for the second quarter of 2026 was $44.4 million, or $0.52 per diluted common share. Operating net income was $28.7 million, or $0.34 per diluted common share.
•Underwriting income for the second quarter of 2026 was $2.8 million and the combined ratio was 99.5%, compared to an underwriting loss of $20.6 million and a combined ratio of 103.7% in the second quarter of 2025.
•Net favorable prior year loss reserve development for the second quarter of 2026 was $32.7 million, compared to net adverse development of $89.2 million in the prior year period.
•Catastrophe and large losses for the second quarter of 2026 were $161.8 million compared to $74.3 million in the prior year period.
•Net investment income for the second quarter of 2026 was $44.0 million compared to $44.6 million in the prior year period.
•Net realized and unrealized investment gains for the second quarter of 2026 were $24.9 million, which included $26.4 million of net realized and unrealized gains on other investments.
•Annualized Operating ROAE of 5.1% in the quarter compared to 2.3% in the prior year period.
Half Year 2026 Consolidated Results | ||
•Net income for the six months ended June 30, 2026, was $152.4 million, or $1.71 per diluted common share. Operating net income was $117.1 million, or $1.31 per diluted common share.
•Underwriting income for the six months ended June 30, 2026, was $79.0 million and the combined ratio was 93.1%, compared to an underwriting loss of $115.1 million and a combined ratio of 110.1% for the six months ended June 30, 2025.
•Catastrophe and large losses for the six months ended June 30, 2026, were $234.1 million compared to $407.6 million in the prior year period.
•Net favorable prior year loss reserve development of $35.8 million compared to net adverse development of $48.4 million in the prior year period.
•Net investment income of $87.7 million compared to $94.1 million in the prior year period.
•Net realized and unrealized investment gains for the six months ended June 30, 2026 were $23.3 million, which included $26.9 million of net realized and unrealized gains on other investments. This compared to net realized and unrealized investment gains for the six months ended June 30, 2025 of $12.6 million, which included $5.7 million of net realized and unrealized gains on other investments.
•Annualized Operating ROAE of 10.1% for the six months ended June 30, 2026, compared to (2.6)% in the prior year period.
•Book value per diluted common share was $26.56 at June 30, 2026 (dilutive shares at June 30, 2026 of 882,554), compared to $24.61 at December 31, 2025.
2
The following table details key financial indicators in evaluating our performance for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| ($ in millions, except per share data) | |||||||||||||||||||||||
| Net income/(loss) | $ | 44.4 | $ | 19.7 | $ | 152.4 | $ | (22.8) | |||||||||||||||
Operating net income/(loss)(1) | 28.7 | 13.6 | 117.1 | (31.6) | |||||||||||||||||||
| Gross premiums written | 1,296.8 | 1,219.0 | 3,137.2 | 2,941.9 | |||||||||||||||||||
| Net premiums earned | 581.1 | 538.0 | 1,149.6 | 1,141.0 | |||||||||||||||||||
| Catastrophe and large losses | 161.8 | 74.3 | 234.1 | 407.6 | |||||||||||||||||||
| Net favorable/(adverse) prior year reserve development | 32.7 | (89.2) | 35.8 | (48.4) | |||||||||||||||||||
| Net investment income | 44.0 | 44.6 | 87.7 | 94.1 | |||||||||||||||||||
| Net realized and unrealized investment gains | $ | 24.9 | $ | 6.7 | $ | 23.3 | $ | 12.6 | |||||||||||||||
| Combined ratio | 99.5 | % | 103.7 | % | 93.1 | % | 110.1 | % | |||||||||||||||
Annualized Operating ROAE(1) | 5.1 | % | 2.3 | % | 10.1 | % | (2.6 | %) | |||||||||||||||
| Earnings/(loss) per diluted common share | $ | 0.52 | $ | 0.18 | $ | 1.71 | $ | (0.21) | |||||||||||||||
Operating EPS(1) | $ | 0.34 | $ | 0.12 | $ | 1.31 | $ | (0.29) | |||||||||||||||
________________
(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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 913.5 | $ | 902.3 | $ | 11.2 | $ | 2,349.6 | $ | 2,169.3 | $ | 180.3 | |||||||||||||||||||||||
| Reinsurance premium ceded | (370.0) | (356.1) | (13.9) | (802.1) | (814.2) | 12.1 | |||||||||||||||||||||||||||||
| Net premiums written | 543.5 | 546.2 | (2.7) | 1,547.5 | 1,355.1 | 192.4 | |||||||||||||||||||||||||||||
| Net premiums earned | 514.7 | 458.9 | 55.8 | 1,029.6 | 970.8 | 58.8 | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | (301.2) | (291.8) | (9.4) | (529.0) | (573.2) | 44.2 | |||||||||||||||||||||||||||||
| Policy acquisition expenses | (163.9) | (148.9) | (15.0) | (303.1) | (297.1) | (6.0) | |||||||||||||||||||||||||||||
| Underwriting income | $ | 49.6 | $ | 18.2 | $ | 31.4 | $ | 197.5 | $ | 100.5 | $ | 97.0 | |||||||||||||||||||||||
| Loss ratio | 58.5 | % | 63.6 | % | (5.1) pts | 51.4 | % | 59.0 | % | (7.6) pts | |||||||||||||||||||||||||
| Policy acquisition expense ratio | 31.8 | % | 32.4 | % | (0.6) pts | 29.4 | % | 30.6 | % | (1.2) pts | |||||||||||||||||||||||||
| Underwriting ratio | 90.3 | % | 96.0 | % | (5.7) pts | 80.8 | % | 89.6 | % | (8.8) pts | |||||||||||||||||||||||||
For the three months ended June 30, 2026, our GPW increased primarily driven by growth from our network of expanded underwriting partners in our Asset Backed Finance & Portfolio Credit and Property lines of business. For the six months ended June 30, 2026, our GPW increased primarily driven by growth from our network of expanded underwriting partners, in several lines of business, partially offset by a non-renewal in our Cyber line of business that did not meet our underwriting criteria and rating hurdles.
For the three and six months ended June 30, 2026, net premiums earned ("NPE") increased due to earnings from higher net premiums written in the current and prior year periods.
Our policy acquisition expense ratio for the three and six months ended June 30, 2026 remained consistent with the prior year periods.
3
The following table is a summary of our Insurance segment’s losses and loss adjustment expenses:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Attritional losses | $ | 164.9 | $ | 121.2 | $ | 43.7 | $ | 305.7 | $ | 243.8 | $ | 61.9 | |||||||||||||||||||||||
| Catastrophe and large losses | 157.0 | 57.2 | 99.8 | 228.8 | 223.5 | 5.3 | |||||||||||||||||||||||||||||
| (Favorable)/adverse prior year development | (20.7) | 113.4 | (134.1) | (5.5) | 105.9 | (111.4) | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | $ | 301.2 | $ | 291.8 | $ | 9.4 | $ | 529.0 | $ | 573.2 | $ | (44.2) | |||||||||||||||||||||||
| Loss ratio - attritional losses | 32.0 | % | 26.4 | % | 5.6 pts | 29.7 | % | 25.1 | % | 4.6 pts | |||||||||||||||||||||||||
| Loss ratio - catastrophe and large losses | 30.5 | % | 12.5 | % | 18.0 pts | 22.2 | % | 23.0 | % | (0.8) pts | |||||||||||||||||||||||||
| Loss ratio - prior accident years | (4.0) | % | 24.7 | % | (28.7) pts | (0.5) | % | 10.9 | % | (11.4) pts | |||||||||||||||||||||||||
| Loss ratio | 58.5 | % | 63.6 | % | (5.1) pts | 51.4 | % | 59.0 | % | (7.6) pts | |||||||||||||||||||||||||
For the three and six months ended June 30, 2026, our loss ratio in the Insurance segment improved by 5.1 points and 7.6 points, respectively, compared to the prior year periods.
The attritional loss ratio for the three and six months ended June 30, 2026, increased by 5.6 points and 4.6 points, respectively, compared to the prior year periods due to a higher level of small losses in the current year periods.
The catastrophe and large losses for the three months ended June 30, 2026, were primarily from losses related to the conflict in the Middle East, the gas plant explosion at the Ras Laffan facility in Qatar, as well as other loss events in our Property and Marine lines of business. This compared to the prior period catastrophe and large losses that were primarily attributable to our Aviation & Aerospace line of business, related to Air India, and our Property line of business, related to two loss events. The catastrophe and large losses for the six months ended June 30, 2026 were primarily attributable to losses related to the conflict in the Middle East, the gas plant explosion at the Ras Laffan facility in Qatar, as well as loss events in various lines of business including Other Insurance, Property and Marine. This compared to the prior period catastrophe and large losses that were primarily attributable to the California wildfires in our Property line of business, together with other losses in our Other Insurance, Aviation & Aerospace, and Property lines of business.
For the three months ended June 30, 2026, favorable prior year development was primarily driven by better than expected loss emergence in multiple lines of business. For the six months ended June 30, 2026 favorable prior year development was primarily driven by better than expected loss emergence in multiple lines of business, partially offset 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.
Reinsurance Segment
The following table is a summary of our Reinsurance segment’s underwriting results:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 383.3 | $ | 316.7 | $ | 66.6 | $ | 787.6 | $ | 772.6 | $ | 15.0 | |||||||||||||||||||||||
| Reinsurance premium ceded | (157.6) | (164.0) | 6.4 | (385.6) | (402.4) | 16.8 | |||||||||||||||||||||||||||||
| Net premiums written | 225.7 | 152.7 | 73.0 | 402.0 | 370.2 | 31.8 | |||||||||||||||||||||||||||||
| Net premiums earned | 66.4 | 79.1 | (12.7) | 120.0 | 170.2 | (50.2) | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | 8.6 | (4.9) | 13.5 | 12.6 | (152.7) | 165.3 | |||||||||||||||||||||||||||||
| Policy acquisition expenses | (22.0) | (20.1) | (1.9) | (35.3) | (39.8) | 4.5 | |||||||||||||||||||||||||||||
| Underwriting income/(loss) | $ | 53.0 | $ | 54.1 | $ | (1.1) | $ | 97.3 | $ | (22.3) | $ | 119.6 | |||||||||||||||||||||||
| Loss ratio | (13.0) | % | 6.2 | % | (19.2) pts | (10.5) | % | 89.7 | % | (100.2) pts | |||||||||||||||||||||||||
| Policy acquisition expense ratio | 33.1 | % | 25.4 | % | 7.7 pts | 29.4 | % | 23.4 | % | 6.0 pts | |||||||||||||||||||||||||
| Underwriting ratio | 20.1 | % | 31.6 | % | (11.5) pts | 18.9 | % | 113.1 | % | (94.2) pts | |||||||||||||||||||||||||
For the three months ended June 30, 2026, GPW increased from targeted deployment into areas where we continue to see attractive risk-adjusted returns. For the six months ended June 30, 2026, our GPW increased primarily from targeted deployment into areas where we continue to see attractive risk-adjusted returns, partially offset by reinstatement premiums related to the California Wildfires in the prior year period.
4
For the three months ended June 30, 2026, NPE decreased driven by our business mix. For the six months ended June 30, 2026, 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 and six months ended June 30, 2026 increased primarily due to business mix and changes in ceded premium and commissions earned from outwards reinsurance partners.
The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Attritional losses | $ | (1.4) | $ | 12.0 | $ | (13.4) | $ | 12.4 | $ | 26.1 | $ | (13.7) | |||||||||||||||||||||||
| Catastrophe and large losses | 4.8 | 17.1 | (12.3) | 5.3 | 184.1 | (178.8) | |||||||||||||||||||||||||||||
| Favorable prior year development | (12.0) | (24.2) | 12.2 | (30.3) | (57.5) | 27.2 | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | $ | (8.6) | $ | 4.9 | $ | (13.5) | $ | (12.6) | $ | 152.7 | $ | (165.3) | |||||||||||||||||||||||
| Loss ratio - attritional losses | (2.1) | % | 15.2 | % | (17.3) pts | 10.4 | % | 15.3 | % | (4.9) pts | |||||||||||||||||||||||||
| Loss ratio - catastrophe and large losses | 7.2 | % | 21.6 | % | (14.4) pts | 4.4 | % | 108.2 | % | (103.8) pts | |||||||||||||||||||||||||
| Loss ratio - prior accident years | (18.1) | % | (30.6) | % | 12.5 pts | (25.3) | % | (33.8) | % | 8.5 pts | |||||||||||||||||||||||||
| Loss ratio | (13.0) | % | 6.2 | % | (19.2) pts | (10.5) | % | 89.7 | % | (100.2) pts | |||||||||||||||||||||||||
For the three and six months ended June 30, 2026, our loss ratio in the Reinsurance segment improved by 19.2 points and 100.2 points, respectively, compared to the prior year periods.
The attritional loss ratio for the three and six months ended June 30, 2026, improved by 17.3 points and 4.9 points, respectively, compared to the prior year periods, both of which were benign in terms of attritional losses.
There were no material catastrophe and large losses for the three and six months ended June 30, 2026. The catastrophe and large losses for the three months ended June 30, 2025 were a result of an updated estimate of outwards reinsurance recoveries. The catastrophe and large losses for the six months ended June 30, 2025 were attributable to the California wildfires.
For the three and six months ended June 30, 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Ceding commission expense | $ | 78.4 | $ | 70.6 | $ | 7.8 | $ | 155.0 | $ | 149.0 | $ | 6.0 | |||||||||||||||||||||||
| Profit commission expense | (7.9) | — | (7.9) | 2.3 | — | 2.3 | |||||||||||||||||||||||||||||
| Total commissions | $ | 70.5 | $ | 70.6 | $ | (0.1) | $ | 157.3 | $ | 149.0 | $ | 8.3 | |||||||||||||||||||||||
| Ceding commission expense ratio | 13.5 | % | 13.1 | % | 0.4 pts | 13.5 | % | 13.1 | % | 0.4 pts | |||||||||||||||||||||||||
| Profit commission expense ratio | (1.4) | % | — | % | (1.4) pts | 0.2 | % | — | % | 0.2 pts | |||||||||||||||||||||||||
| The Fidelis Partnership commissions ratio | 12.1 | % | 13.1 | % | (1.0) pts | 13.7 | % | 13.1 | % | 0.6 pts | |||||||||||||||||||||||||
For the three months ended June 30, 2026, the decrease in The Fidelis Partnership commissions ratio was driven by our business mix and by the reduction of the accrued profit commission as a result of operating profit in the period. For the six months ended June 30, 2026, the increase in The Fidelis Partnership commissions ratio was driven by our mix of business and by improved performance in the current year period compared to the prior year period.
5
General and Administrative Expenses
For the three and six months ended June 30, 2026, general and administrative expenses were $29.3 million and $58.5 million, respectively (2025: $22.3 million and $44.3 million, respectively). The increase was due to strategic investments to strengthen our talent base, enhance our infrastructure and improve our technology. Also, improved financial performance resulted in higher variable compensation accruals in the current year.
| Investments | ||
The components of net investment return are as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Net investment income | $ | 44.0 | $ | 44.6 | $ | (0.6) | $ | 87.7 | $ | 94.1 | $ | (6.4) | |||||||||||||||||||||||
| Net realized and unrealized gains on other investments | 26.4 | 4.6 | 21.8 | 26.9 | 5.7 | 21.2 | |||||||||||||||||||||||||||||
| Net realized and unrealized investment gains/(losses) excluding other investments | (1.5) | 2.1 | (3.6) | (3.6) | 6.9 | (10.5) | |||||||||||||||||||||||||||||
Net investment return | $ | 68.9 | $ | 51.3 | $ | 17.6 | $ | 111.0 | $ | 106.7 | $ | 4.3 | |||||||||||||||||||||||
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 and six months ended June 30, 2026, we generated net investment income of $44.0 million and $87.7 million, respectively, at an average yield of 4.3% and 4.2%, respectively (2025: $44.6 million and $94.1 million at an average yield of 4.4% and 4.4%) Our net investment income for the three months ended June 30, 2026 remained consistent with the prior year period. For the six months ended June 30, 2026, the decrease 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 increase in our net investment income for the three and six months ended June 30, 2026, was driven by positive performance from our hedge fund portfolio and positive 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.
For the three and six months ended June 30, 2026, the decrease resulted from movements in our provision for current expected credit losses of $(0.8) million and $(3.0) million, respectively (2025: $1.3 million and $5.3 million).
6
Other Items | ||
Share Repurchases
In the three and six months ended June 30, 2026, we repurchased 2,779,812 and 14,324,667 common shares, respectively, for an aggregate of $60.1 million and $279.5 million, respectively, excluding expenses, at an average price of $21.60 and $19.51 per common share, respectively, pursuant to our share repurchase authorization.
Included in common shares repurchased for the three and six months ended June 30, 2026 were 1,440,000 common shares repurchased from Pine Brook Feal Intermediate, L.P. for $31.7 million in privately negotiated transactions. This resulted in a pro-rata repurchase of 157,785 common shares from The Fidelis Partnership for $3.5 million.
Included in common shares repurchased for the six months ended June 30, 2026 were 8,597,170 common shares from CVC Falcon Holdings Limited for an aggregate of $163.3 million through a privately negotiated transaction. This resulted in a pro-rata repurchase of 942,014 common shares from The Fidelis Partnership for $17.9 million.
The unutilized amount of the share repurchase authorization at June 30, 2026 was $139.1 million
Dividend Announcement
On August 3, 2026, we announced that our Board of Directors has approved and declared a dividend of $0.15 per share, payable on September 25, 2026, to common shareholders of record on September 14, 2026.
Conference Call
Pelagos will host a teleconference to discuss its financial results on Thursday, August 13, 2026, at 9:00 a.m. Eastern time. The call can be accessed by dialing 1-800-715-9871 (U.S. 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,”
7
“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, 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;
8
•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 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
9
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Balance Sheets
At June 30, 2026 (Unaudited) and December 31, 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| June 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: $2,845.6, 2025: $2,590.6 (net of allowance for credit losses of $3.6, 2025: $0.6)) | $ | 2,858.5 | $ | 2,640.4 | |||||||
Short-term investments, available-for-sale, at fair value (amortized cost: $255.0, 2025: $111.3 (net of allowance for credit losses of $nil, 2025: $nil)) | 254.8 | 111.3 | |||||||||
| Other investments, at fair value | 661.7 | 485.7 | |||||||||
| Total investments | 3,775.0 | 3,237.4 | |||||||||
| Cash and cash equivalents | 444.3 | 873.0 | |||||||||
| Restricted cash and cash equivalents | 72.8 | 374.6 | |||||||||
| Accrued investment income | 29.4 | 28.3 | |||||||||
Premiums and other receivables (net of allowance for credit losses of $14.5, 2025: $15.8) | 4,295.1 | 3,322.2 | |||||||||
Amounts due from The Fidelis Partnership (net of allowance for credit losses of $nil, 2025: $nil) | 239.6 | 174.8 | |||||||||
| Deferred reinsurance premiums | 1,890.2 | 1,441.5 | |||||||||
Reinsurance balances recoverable on paid losses (net of allowance for credit losses of $0.3, 2025: $0.3) | 286.6 | 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) | 1,348.1 | 1,195.6 | |||||||||
Deferred policy acquisition costs (includes The Fidelis Partnership deferred commissions of $307.6, 2025: $243.4) | 1,463.7 | 1,085.0 | |||||||||
| Other assets | 149.4 | 272.7 | |||||||||
| Total assets | $ | 13,994.2 | $ | 12,443.8 | |||||||
| Liabilities and shareholders' equity | |||||||||||
| Liabilities | |||||||||||
| Reserves for losses and loss adjustment expenses | $ | 2,874.4 | $ | 2,607.1 | |||||||
| Unearned premiums | 5,632.0 | 4,384.8 | |||||||||
| Reinsurance balances payable | 1,795.9 | 1,659.6 | |||||||||
| Amounts due to The Fidelis Partnership | 640.1 | 457.7 | |||||||||
| Long term debt | 720.5 | 843.2 | |||||||||
| Other liabilities | 110.8 | 91.8 | |||||||||
| Total liabilities | 11,773.7 | 10,044.2 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders' equity | |||||||||||
| Common shares ($0.01 par, issued and outstanding: 82,728,333, 2025: 96,651,534) | 0.8 | 1.0 | |||||||||
| Additional paid-in capital | 1,409.9 | 1,685.6 | |||||||||
| Accumulated other comprehensive income | 7.3 | 37.1 | |||||||||
| Retained earnings | 802.5 | 675.9 | |||||||||
| Total shareholders' equity | 2,220.5 | 2,399.6 | |||||||||
| Total liabilities and shareholders' equity | $ | 13,994.2 | $ | 12,443.8 | |||||||
10
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Statements of Income and Comprehensive Income (Unaudited)
For the three and six months ended June 30, 2026 and June 30, 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Gross premiums written | $ | 1,296.8 | $ | 1,219.0 | $ | 3,137.2 | $ | 2,941.9 | |||||||||||||||
| Reinsurance premiums ceded | (527.6) | (520.1) | (1,187.7) | (1,216.6) | |||||||||||||||||||
| Net premiums written | 769.2 | 698.9 | 1,949.5 | 1,725.3 | |||||||||||||||||||
| Change in net unearned premiums | (188.1) | (160.9) | (799.9) | (584.3) | |||||||||||||||||||
| Net premiums earned | 581.1 | 538.0 | 1,149.6 | 1,141.0 | |||||||||||||||||||
| Net investment income | 44.0 | 44.6 | 87.7 | 94.1 | |||||||||||||||||||
| Net realized and unrealized investment gains | 24.9 | 6.7 | 23.3 | 12.6 | |||||||||||||||||||
| Total revenues | 650.0 | 589.3 | 1,260.6 | 1,247.7 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Losses and loss adjustment expenses | 292.6 | 296.7 | 516.4 | 725.9 | |||||||||||||||||||
| Policy acquisition expenses (includes The Fidelis Partnership commissions of $70.5 and $157.3 (2025: $70.6 and $149.0)) | 256.4 | 239.6 | 495.7 | 485.9 | |||||||||||||||||||
| General and administrative expenses | 29.3 | 22.3 | 58.5 | 44.3 | |||||||||||||||||||
| Corporate and other expenses | 2.3 | 1.2 | 2.7 | 1.2 | |||||||||||||||||||
| Net foreign exchange (gains)/losses | 3.9 | (2.0) | 4.0 | 0.5 | |||||||||||||||||||
| Financing costs | 12.6 | 9.3 | 27.3 | 18.0 | |||||||||||||||||||
| Total expenses | 597.1 | 567.1 | 1,104.6 | 1,275.8 | |||||||||||||||||||
| Income/(loss) before income taxes | 52.9 | 22.2 | 156.0 | (28.1) | |||||||||||||||||||
| Income tax (expense)/benefit | (8.5) | (2.5) | (3.6) | 5.3 | |||||||||||||||||||
| Net income/(loss) | $ | 44.4 | $ | 19.7 | $ | 152.4 | $ | (22.8) | |||||||||||||||
| Other comprehensive income/(loss) | |||||||||||||||||||||||
| Unrealized gains/(losses) on available-for-sale investments | $ | (11.0) | $ | 10.9 | $ | (37.5) | $ | 36.6 | |||||||||||||||
| Reclassification of net realized losses/(gains) recognized in net income | 0.7 | (0.8) | 0.7 | (1.6) | |||||||||||||||||||
| Income tax (expense)/benefit, all of which relates to unrealized gains/(losses) on available-for-sale investments | 2.0 | 0.6 | 7.0 | (6.8) | |||||||||||||||||||
| Total other comprehensive income/(loss) | (8.3) | 10.7 | (29.8) | 28.2 | |||||||||||||||||||
| Comprehensive income | $ | 36.1 | $ | 30.4 | $ | 122.6 | $ | 5.4 | |||||||||||||||
| Per share data | |||||||||||||||||||||||
| Earnings/(loss) per common share | |||||||||||||||||||||||
| Earnings/(loss) per common share | $ | 0.53 | $ | 0.18 | $ | 1.72 | $ | (0.21) | |||||||||||||||
| Earnings/(loss) per diluted common share | $ | 0.52 | $ | 0.18 | $ | 1.71 | $ | (0.21) | |||||||||||||||
| Weighted average common shares outstanding | 84,414,876 | 108,627,579 | 88,664,331 | 110,077,312 | |||||||||||||||||||
| Weighted average diluted common shares outstanding | 85,107,550 | 109,135,824 | 89,265,865 | 110,077,312 | |||||||||||||||||||
11
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Segment Data (Unaudited)
For the three and six months ended June 30, 2026 and June 30, 2025
(Expressed in millions of U.S. dollars)
Three Months Ended June 30, 2026 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 913.5 | $ | 383.3 | $ | — | $ | 1,296.8 | |||||||||||||||
| Net premiums written | 543.5 | 225.7 | — | 769.2 | |||||||||||||||||||
| Net premiums earned | 514.7 | 66.4 | — | 581.1 | |||||||||||||||||||
| Losses and loss adjustment expenses | (301.2) | 8.6 | — | (292.6) | |||||||||||||||||||
| Policy acquisition expenses | (163.9) | (22.0) | (70.5) | (256.4) | |||||||||||||||||||
| General and administrative expenses | — | — | (29.3) | (29.3) | |||||||||||||||||||
| Underwriting income | 49.6 | 53.0 | 2.8 | ||||||||||||||||||||
| Net investment income | 44.0 | ||||||||||||||||||||||
| Net realized and unrealized investment gains | 24.9 | ||||||||||||||||||||||
| Corporate and other expenses | (2.3) | ||||||||||||||||||||||
| Net foreign exchange losses | (3.9) | ||||||||||||||||||||||
| Financing costs | (12.6) | ||||||||||||||||||||||
| Income before income taxes | 52.9 | ||||||||||||||||||||||
| Income tax expense | (8.5) | ||||||||||||||||||||||
| Net income | $ | 44.4 | |||||||||||||||||||||
| Losses and loss adjustment expenses incurred - current year | (321.9) | (3.4) | $ | (325.3) | |||||||||||||||||||
| Losses and loss adjustment expenses incurred - prior accident years | 20.7 | 12.0 | 32.7 | ||||||||||||||||||||
| Losses and loss adjustment expenses incurred - total | $ | (301.2) | $ | 8.6 | $ | (292.6) | |||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | 62.5 | % | 5.1 | % | 56.0 | % | |||||||||||||||||
| Loss ratio - prior accident years | (4.0 | %) | (18.1 | %) | (5.6 | %) | |||||||||||||||||
| Loss ratio - total | 58.5 | % | (13.0 | %) | 50.4 | % | |||||||||||||||||
| Policy acquisition expense ratio | 31.8 | % | 33.1 | % | 32.0 | % | |||||||||||||||||
| Underwriting ratio | 90.3 | % | 20.1 | % | 82.4 | % | |||||||||||||||||
| The Fidelis Partnership commissions ratio | 12.1 | % | |||||||||||||||||||||
| General and administrative expense ratio | 5.0 | % | |||||||||||||||||||||
| Combined ratio | 99.5 | % | |||||||||||||||||||||
________________
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
12
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 902.3 | $ | 316.7 | $ | — | $ | 1,219.0 | |||||||||||||||
| Net premiums written | 546.2 | 152.7 | — | 698.9 | |||||||||||||||||||
| Net premiums earned | 458.9 | 79.1 | — | 538.0 | |||||||||||||||||||
| Losses and loss adjustment expenses | (291.8) | (4.9) | — | (296.7) | |||||||||||||||||||
| Policy acquisition expenses | (148.9) | (20.1) | (70.6) | (239.6) | |||||||||||||||||||
| General and administrative expenses | — | — | (22.3) | (22.3) | |||||||||||||||||||
| Underwriting income/(loss) | 18.2 | 54.1 | (20.6) | ||||||||||||||||||||
| Net investment income | 44.6 | ||||||||||||||||||||||
| Net realized and unrealized investment gains | 6.7 | ||||||||||||||||||||||
| Corporate and other expenses | (1.2) | ||||||||||||||||||||||
| Net foreign exchange gains | 2.0 | ||||||||||||||||||||||
| Financing costs | (9.3) | ||||||||||||||||||||||
| Income before income taxes | 22.2 | ||||||||||||||||||||||
| Income tax expense | (2.5) | ||||||||||||||||||||||
| Net income | $ | 19.7 | |||||||||||||||||||||
| Losses and loss adjustment expenses incurred - current year | (178.4) | (29.1) | $ | (207.5) | |||||||||||||||||||
| Losses and loss adjustment expenses incurred - prior accident years | (113.4) | 24.2 | (89.2) | ||||||||||||||||||||
| Losses and loss adjustment expenses incurred - total | $ | (291.8) | $ | (4.9) | $ | (296.7) | |||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | 38.9 | % | 36.8 | % | 38.5 | % | |||||||||||||||||
| Loss ratio - prior accident years | 24.7 | % | (30.6 | %) | 16.6 | % | |||||||||||||||||
| Loss ratio - total | 63.6 | % | 6.2 | % | 55.1 | % | |||||||||||||||||
| Policy acquisition expense ratio | 32.4 | % | 25.4 | % | 31.4 | % | |||||||||||||||||
| Underwriting ratio | 96.0 | % | 31.6 | % | 86.5 | % | |||||||||||||||||
| The Fidelis Partnership commissions ratio | 13.1 | % | |||||||||||||||||||||
| General and administrative expense ratio | 4.1 | % | |||||||||||||||||||||
| Combined ratio | 103.7 | % | |||||||||||||||||||||
________________
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
13
| Six months ended June 30, 2026 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 2,349.6 | $ | 787.6 | $ | — | $ | 3,137.2 | |||||||||||||||
| Net premiums written | 1,547.5 | 402.0 | — | 1,949.5 | |||||||||||||||||||
| Net premiums earned | 1,029.6 | 120.0 | — | 1,149.6 | |||||||||||||||||||
| Losses and loss adjustment expenses | (529.0) | 12.6 | — | (516.4) | |||||||||||||||||||
| Policy acquisition expenses | (303.1) | (35.3) | (157.3) | (495.7) | |||||||||||||||||||
| General and administrative expenses | — | — | (58.5) | (58.5) | |||||||||||||||||||
| Underwriting income | 197.5 | 97.3 | 79.0 | ||||||||||||||||||||
| Net investment income | 87.7 | ||||||||||||||||||||||
| Net realized and unrealized investment gains | 23.3 | ||||||||||||||||||||||
| Corporate and other expenses | (2.7) | ||||||||||||||||||||||
| Net foreign exchange losses | (4.0) | ||||||||||||||||||||||
| Financing costs | (27.3) | ||||||||||||||||||||||
| Income before income taxes | 156.0 | ||||||||||||||||||||||
| Income tax expense | (3.6) | ||||||||||||||||||||||
| Net income | $ | 152.4 | |||||||||||||||||||||
| Losses and loss adjustment expenses incurred - current year | (534.5) | (17.7) | $ | (552.2) | |||||||||||||||||||
| Losses and loss adjustment expenses incurred - prior accident years | 5.5 | 30.3 | 35.8 | ||||||||||||||||||||
| Losses and loss adjustment expenses incurred - total | $ | (529.0) | $ | 12.6 | $ | (516.4) | |||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | 51.9 | % | 14.8 | % | 48.0 | % | |||||||||||||||||
| Loss ratio - prior accident years | (0.5 | %) | (25.3 | %) | (3.1 | %) | |||||||||||||||||
| Loss ratio - total | 51.4 | % | (10.5 | %) | 44.9 | % | |||||||||||||||||
| Policy acquisition expense ratio | 29.4 | % | 29.4 | % | 29.4 | % | |||||||||||||||||
| Underwriting ratio | 80.8 | % | 18.9 | % | 74.3 | % | |||||||||||||||||
| The Fidelis Partnership commissions ratio | 13.7 | % | |||||||||||||||||||||
| General and administrative expense ratio | 5.1 | % | |||||||||||||||||||||
| Combined ratio | 93.1 | % | |||||||||||||||||||||
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
14
| Six months ended June 30, 2025 | |||||||||||||||||||||||
| Insurance | Reinsurance | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 2,169.3 | $ | 772.6 | $ | — | $ | 2,941.9 | |||||||||||||||
| Net premiums written | 1,355.1 | 370.2 | — | 1,725.3 | |||||||||||||||||||
| Net premiums earned | 970.8 | 170.2 | — | 1,141.0 | |||||||||||||||||||
| Losses and loss adjustment expenses | (573.2) | (152.7) | — | (725.9) | |||||||||||||||||||
| Policy acquisition expenses | (297.1) | (39.8) | (149.0) | (485.9) | |||||||||||||||||||
| General and administrative expenses | — | — | (44.3) | (44.3) | |||||||||||||||||||
| Underwriting income/(loss) | 100.5 | (22.3) | (115.1) | ||||||||||||||||||||
| Net investment income | 94.1 | ||||||||||||||||||||||
| Net realized and unrealized investment gains | 12.6 | ||||||||||||||||||||||
| Corporate and other expenses | (1.2) | ||||||||||||||||||||||
| Net foreign exchange losses | (0.5) | ||||||||||||||||||||||
| Financing costs | (18.0) | ||||||||||||||||||||||
| Loss before income taxes | (28.1) | ||||||||||||||||||||||
| Income tax benefit | 5.3 | ||||||||||||||||||||||
| Net loss | $ | (22.8) | |||||||||||||||||||||
| Losses and loss adjustment expenses incurred - current year | (467.3) | (210.2) | $ | (677.5) | |||||||||||||||||||
| Losses and loss adjustment expenses incurred - prior accident years | (105.9) | 57.5 | (48.4) | ||||||||||||||||||||
| Losses and loss adjustment expenses incurred - total | $ | (573.2) | $ | (152.7) | $ | (725.9) | |||||||||||||||||
Underwriting Ratios(1) | |||||||||||||||||||||||
| Loss ratio - current year | 48.1 | % | 123.5 | % | 59.4 | % | |||||||||||||||||
| Loss ratio - prior accident years | 10.9 | % | (33.8 | %) | 4.2 | % | |||||||||||||||||
| Loss ratio - total | 59.0 | % | 89.7 | % | 63.6 | % | |||||||||||||||||
| Policy acquisition expense ratio | 30.6 | % | 23.4 | % | 29.5 | % | |||||||||||||||||
| Underwriting ratio | 89.6 | % | 113.1 | % | 93.1 | % | |||||||||||||||||
| The Fidelis Partnership commissions ratio | 13.1 | % | |||||||||||||||||||||
| General and administrative expense ratio | 3.9 | % | |||||||||||||||||||||
| Combined ratio | 110.1 | % | |||||||||||||||||||||
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
15
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, net foreign exchange gains/(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 and six months ended June 30, 2026, and 2025.
| Three months ended | Six months ended | ||||||||||||||||||||||
| ($ in millions except for share and per share amounts) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||
| Net income/(loss) | $ | 44.4 | $ | 19.7 | $ | 152.4 | $ | (22.8) | |||||||||||||||
| Adjustment for net realized and unrealized investment gains | (24.9) | (6.7) | (23.3) | (12.6) | |||||||||||||||||||
| Adjustment for net foreign exchange (gains)/losses | 3.9 | (2.0) | 4.0 | 0.5 | |||||||||||||||||||
| Adjustment for corporate and other expenses | 2.3 | 1.2 | 2.7 | 1.2 | |||||||||||||||||||
Income tax (benefit)/expense (1) | 3.0 | 1.4 | (18.7) | 2.1 | |||||||||||||||||||
| Operating net income/(loss) | $ | 28.7 | $ | 13.6 | $ | 117.1 | $ | (31.6) | |||||||||||||||
| Average common shareholders' equity | $ | 2,237.2 | $ | 2,357.4 | $ | 2,310.1 | $ | 2,385.9 | |||||||||||||||
| Weighted average common shares outstanding | 84,414,876 | 108,627,579 | 88,664,331 | 110,077,312 | |||||||||||||||||||
| Share-based compensation plans | 692,674 | 508,245 | 601,534 | — | |||||||||||||||||||
| Weighted average diluted common shares outstanding | 85,107,550 | 109,135,824 | 89,265,865 | 110,077,312 | |||||||||||||||||||
| Annualized ROAE | 7.9 | % | 3.4 | % | 13.2 | % | (1.9 | %) | |||||||||||||||
| Annualized Operating ROAE | 5.1 | % | 2.3 | % | 10.1 | % | (2.6 | %) | |||||||||||||||
| Earnings/(loss) per diluted common share | $ | 0.52 | $ | 0.18 | $ | 1.71 | $ | (0.21) | |||||||||||||||
| Operating EPS | $ | 0.34 | $ | 0.12 | $ | 1.31 | $ | (0.29) | |||||||||||||||
(1) Income tax (benefit)/expense on adjustments to net income/(loss). The income tax benefit for the six months ended June 30, 2026 includes the reversal of a U.K. top-up tax charge of $21.4 million.
16
Unaudited Consolidated Financial Statements
For the Three and Six Months Ended June 30, 2026 and 2025
1
PELAGOS INSURANCE CAPITAL LIMITED
TABLE OF CONTENTS
| Page | ||||||||
| Financial Statements | ||||||||
Consolidated Balance Sheets | 3 | |||||||
June 30, 2026 (unaudited) and December 31, 2025 | ||||||||
Consolidated Statements of Income and Comprehensive Income | 4 | |||||||
For the three and six months ended June 30, 2026 and 2025 (unaudited) | ||||||||
Consolidated Statements of Changes in Shareholders’ Equity | 5 | |||||||
For the three and six months ended June 30, 2026 and 2025 (unaudited) | ||||||||
Consolidated Statements of Cash Flows | 6 | |||||||
For the six months ended June 30, 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 | 12 | |||||||
Note 5. Fair Value Measurements | 16 | |||||||
Note 6. Total Cash, Cash Equivalents, Restricted Cash and Restricted Investments | 20 | |||||||
Note 7. Derivative Financial Instruments | 20 | |||||||
Note 8. Reserves for Losses and Loss Adjustment Expenses | 21 | |||||||
Note 9. Reinsurance and Retrocessional Reinsurance | 22 | |||||||
Note 10. Long Term Debt | 22 | |||||||
Note 11. Commitments and Contingencies | 23 | |||||||
Note 12. Related Party Transactions | 24 | |||||||
Note 13. Earnings Per Share | 25 | |||||||
Note 14. Share Capital Authorized and Issued | 25 | |||||||
Note 15. Income Taxes | 26 | |||||||
| Management’s Discussion and Analysis of Financial Condition and Results of Operation | ||||||||
Overview | 27 | |||||||
Performance Measures and Non-GAAP Financial Measures | 29 | |||||||
Results of Operations | 32 | |||||||
Financial Condition, Liquidity and Capital Resources | 36 | |||||||
Quantitative and Qualitative Disclosures about Market Risk | 37 | |||||||
Cautionary Note Regarding Forward-Looking Statements | 38 | |||||||
2
PELAGOS INSURANCE CAPITAL LIMITED
Consolidated Balance Sheets
At June 30, 2026 (Unaudited) and December 31, 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| June 30, 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 and six months ended June 30, 2026 and June 30, 2025
(Expressed in millions of U.S. dollars, except for share and per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 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 | |||||||||||||||||||||||
| 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 (gains)/losses | ( | ||||||||||||||||||||||
| Financing costs | |||||||||||||||||||||||
| Total expenses | |||||||||||||||||||||||
| Income/(loss) before income taxes | ( | ||||||||||||||||||||||
| Income tax (expense)/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 | $ | $ | $ | $ | |||||||||||||||||||
| 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 and six months ended June 30, 2026 and June 30, 2025
(Expressed in millions of U.S. dollars)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 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 six months ended June 30, 2026 and June 30, 2025
(Expressed in millions of U.S. dollars)
| June 30, 2026 | June 30, 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 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 | |||||||||||
| Proceeds from issuance of debt, net of issuance costs | |||||||||||
| Dividends on common shares | ( | ( | |||||||||
| Repurchase of common shares | ( | ( | |||||||||
| Tax paid on withholding shares | ( | ( | |||||||||
| Redemption of junior notes | ( | ||||||||||
| Repurchase of preferred securities | ( | ||||||||||
| Net cash provided by/(used in) financing activities | ( | ||||||||||
| Effect of exchange rate changes on foreign currency cash | ( | ||||||||||
| Net increase/(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.
•Pelagos Insurance Capital Underwriting Limited (formerly known as Fidelis Underwriting Limited or “FUL”) (“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 for business sourced through TFP 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 of common shares on the New York Stock Exchange.
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 June 30, 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 gains | |||||||||||||||||||||||
| Corporate and other expenses | ( | ||||||||||||||||||||||
| Net foreign exchange losses | ( | ||||||||||||||||||||||
| Financing costs | ( | ||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Income tax expense | ( | ||||||||||||||||||||||
| 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 June 30, 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 | |||||||||||||||||||||||
| Corporate and other expenses | ( | ||||||||||||||||||||||
| Net foreign exchange gains | |||||||||||||||||||||||
| Financing costs | ( | ||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Income tax expense | ( | ||||||||||||||||||||||
| 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.
10
Six Months Ended June 30, 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 gains | |||||||||||||||||||||||
| Corporate and other expenses | ( | ||||||||||||||||||||||
| Net foreign exchange losses | ( | ||||||||||||||||||||||
| Financing costs | ( | ||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Income tax expense | ( | ||||||||||||||||||||||
| 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.
11
Six Months Ended June 30, 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 | |||||||||||||||||||||||
| Corporate and other expenses | ( | ||||||||||||||||||||||
| 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 June 30, 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:
| June 30, 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 | $ | $ | $ | ( | $ | ||||||||||||||||||
12
| 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:
| June 30, 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:
| June 30, 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:
| June 30, 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 | $ | $ | $ | $ | |||||||||||||||||||
13
The composition of the fair values of short-term investments by credit rating is as follows:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Fair Value | % | Fair Value | % | ||||||||||||||||||||
| AAA | $ | % | $ | % | |||||||||||||||||||
| AA | % | % | |||||||||||||||||||||
| A | % | % | |||||||||||||||||||||
| BBB | % | % | |||||||||||||||||||||
| 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:
| June 30, 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 June 30, 2026 on a security level basis, 499 securities out of a total of approximately 1,679 securities were in an unrealized loss position and the largest unrealized loss from a single security in the Company’s fixed maturity portfolio was $0.3 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 | Six months ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
| Expected credit losses on securities where credit losses were not previously recognized | |||||||||||||||||||||||
| 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
14
determine whether a credit loss exists, including the extent to which fair value is below cost, the implied yield to maturity, rating 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:
| June 30, 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 June 30, 2026, approximately $nil (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 June 30, 2026, the Company had $9.0 million (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 June 30, 2026, approximately 85 % (December 31, 2025: 94 %) of the total hedge fund investment can be redeemed within the next twelve months, while approximately 15 % (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 June 30, 2026, approximately 7 % (December 31, 2025: 1 %) of the hedge funds were subject to a gate.
15
Commencing 2025, the Company invested in private credit funds managed by third-party managers. 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.
At June 30, 2026 the Company had $96.5 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 | Six Months Ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||
| Net interest and dividend income | $ | $ | $ | $ | |||||||||||||||||||
| Investment expenses | ( | ( | ( | ( | |||||||||||||||||||
| Net investment income | |||||||||||||||||||||||
| Net realized gains/(losses) 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 | |||||||||||||||||||||||
| 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.
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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-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
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significant inputs to the model. The valuation techniques and key inputs depend on the type of derivative and the nature of the underlying instrument.
The following tables present the financial instruments measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025:
| June 30, 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 six months ended June 30, 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 June 30, 2026 and December 31, 2025. The fair values of the below financial instruments are based on observable inputs and are considered Level 2 measurements.
| June 30, 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 June 30, 2026 and December 31, 2025:
| June 30, 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:
| June 30, 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 and six months ended June 30, 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 (gains)/losses in the Consolidated Statements of Income.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Net realized gains/(losses) | Change in net unrealized gains/(losses) | Net realized gains/(losses) | Change in net unrealized gains/(losses) | 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.
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The Company obtains and provides collateral from and to counterparties for over-the-counter derivative financial instruments in accordance with bilateral credit facilities.
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 six months ended June 30, 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 six months ended June 30, 2026 and June 30, 2025:
| June 30, 2026 | June 30, 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 $35.8 million for the six months ended June 30, 2026 (2025: increased by $48.4 million).
Net favorable development for the six months ended June 30, 2026 resulted from better than expected loss development across both segments.
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In the Insurance segment, for the six months ended June 30, 2026 the net favorable development of $5.5 million was primarily driven by better than expected loss emergence in multiple lines of business, partially offset 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. In the Reinsurance segment, for the six months ended June 30, 2026 the net favorable development of $30.3 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 June 30, 2026, the reinsurance balance recoverable on reserves for losses and loss adjustment expenses was $1,348.1 million (December 31, 2025: $1,195.6 million) and the reinsurance balance recoverable on paid losses was $286.6 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 June 30, 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. 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 Company recorded a corporate expense of $1.7 million in the three months ending June 30, 2026 for the unamortized discount and debt issuance costs.
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,
22
commencing on December 30, 2020. The Senior Notes are redeemable at the applicable redemption price, subject to the terms 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 June 30, 2026 and December 31, 2025:
| June 30, 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 June 30, 2026, the Company had the following letter of credit facilities:
| June 30, 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 June 30, 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 | June 30, 2026 | ||||
| Lloyds Bank plc | $ | ||||
| Citibank N.A. London branch | |||||
| Barclays Bank plc | |||||
| Bank of Montreal | |||||
| Total | $ | ||||
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The Company's letter of credit facilities are 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, 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 | Six months ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||
| Ceding commission expense | $ | $ | $ | $ | |||||||||||||||||||
| Profit commission expense | ( | ||||||||||||||||||||||
| Total commissions | $ | $ | $ | $ | |||||||||||||||||||
Amounts receivable from TFP at June 30, 2026 of $239.6 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 June 30, 2026 of $640.1 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 and six months ended June 30, 2026 of $27.3 million and $53.8 million, respectively (2025: $25.3 million and $55.2 million) were paid to TFP. For the three and six months ended June 30, 2026 profit commissions on ceded business of $23.3 million and $35.3 million, respectively, were paid to The Fidelis Partnership. For the three and six months ended June 30, 2025, due to a reduction in profit commission income on ceded business, we recovered $(25.5 ) million and $(16.2 ) million, respectively, from 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 and six months ended June 30, 2026 was $4.7 million and $6.8 million, respectively, (2025: $21.6 million and $33.3 million) and was included within policy acquisition expenses.
13. Earnings Per Share
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 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:
| June 30, 2026 | December 31, 2025 | ||||||||||
Common shares, par value $ | |||||||||||
| Authorized | |||||||||||
| Issued and outstanding | |||||||||||
| Common shares | |||||||||||
25
Common share dividends
Cash dividends of $0.15 and $0.30 per common share were declared and paid in the three and six months ended June 30, 2026 (2025: $0.10 and $0.20 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 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 and six months ended June 30, 2026 and 2025:
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 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 and six months June 30, 2026 were 1,440,000 31.7
Included in common shares repurchased in the six months ended June 30, 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 and six months ended June 30, 2026, were 273,389 and 1,374,947 , respectively, (2025: 541,639 and 677,723 ) common shares repurchased from TFP for $5.9 million and $26.8 million, respectively, (2025: $8.8 million and $10.9 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 June 30, 2026 was $139.1 million.
15. Income Taxes
The Company’s income tax expense/(benefit) for the three and six months ended June 30, 2026, resulted in an effective tax rate of 16.0 % and 2.3 %, respectively, (2025: 11.3 % and 18.9 %). The income tax expense/(benefit) for the three and six months ended June 30, 2026 was $8.5 million and $3.6 million, respectively, (2025: $2.5 million and $(5.3 ) million).
In December 2025, in response to updated guidance from the Organisation for Economic Co-operation and Development (“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.
26
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 and six months ended June 30, 2026 and 2025 and our financial condition at June 30, 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 Insurance Holdings Limited and known as “Fidelis” prior to the Separation Transactions, 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”), Pelagos Insurance Capital Underwriting Limited (formerly known as Fidelis Underwriting Limited or “FUL”) (“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.
27
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 and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income/(loss) | $ | 44.4 | $ | 19.7 | $ | 152.4 | $ | (22.8) | |||||||||||||||
Operating net income/(loss)(1) | 28.7 | 13.6 | 117.1 | (31.6) | |||||||||||||||||||
| Gross premiums written | 1,296.8 | 1,219.0 | 3,137.2 | 2,941.9 | |||||||||||||||||||
| Net premiums earned | 581.1 | 538.0 | 1,149.6 | 1,141.0 | |||||||||||||||||||
| Catastrophe and large losses | 161.8 | 74.3 | 234.1 | 407.6 | |||||||||||||||||||
| Net favorable/(adverse) prior year reserve development | 32.7 | (89.2) | 35.8 | (48.4) | |||||||||||||||||||
| Net investment income | 44.0 | 44.6 | 87.7 | 94.1 | |||||||||||||||||||
| Net realized and unrealized investment gains | $ | 24.9 | $ | 6.7 | $ | 23.3 | $ | 12.6 | |||||||||||||||
| Combined ratio | 99.5 | % | 103.7 | % | 93.1 | % | 110.1 | % | |||||||||||||||
| Annualized return on average common equity | 7.9 | % | 3.4 | % | 13.2 | % | (1.9 | %) | |||||||||||||||
Annualized Operating ROAE(1) | 5.1 | % | 2.3 | % | 10.1 | % | (2.6 | %) | |||||||||||||||
| Earnings/(loss) per diluted common share | 0.52 | 0.18 | $ | 1.71 | $ | (0.21) | |||||||||||||||||
Operating EPS(1) | 0.34 | 0.12 | $ | 1.31 | $ | (0.29) | |||||||||||||||||
__________________
(1) See definition and reconciliation of these non-GAAP financial measures in “Performance Measures and Non-GAAP Financial Measures”.
Pelagos’ Second Quarter in Review for 2026
Gross premiums written (“GPW”) increased to $1.3 billion, or 6.4% above the prior year period. Net income for the second quarter of 2026 was $44.4 million, or $0.52 per diluted common share. Our combined ratio was 99.5% for the three months ended June 30, 2026, compared to 103.7% in the prior year period. The improvement was primarily a result of net favorable prior year reserve development, compared to net adverse development in the prior year period. This improvement was partially offset by higher catastrophe and large losses in the quarter compared to the prior year period. Our Annualized Operating ROAE was 5.1% in the three months ended June 30, 2026.
The first half of 2026 saw continued growth in our gross premiums written to $3.1 billion, or 6.6% above the prior year period. Our combined ratio was 93.1% for the six months ended June 30, 2026, compared to 110.1% in the prior year period. The improvement was primarily a result of lower catastrophe and large losses of $234.1 million in the six months ended June 30, 2026, compared to $407.6 million in the prior year period, primarily driven by the California wildfires. Our Annualized Operating ROAE was 10.1% in the six months ended June 30, 2026, compared with (2.6)% in the prior year period. During the six months ended June 30, 2026, we repurchased 14,324,667 common shares for $279.5 million, including commission expense, at a weighted average cost per share of $19.51, including commission expenses. Book value per diluted common share was $26.56 at June 30, 2026, an increase of 9.1% including cumulative dividends from December 31, 2025, of $24.61.
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 began trading on the New York Stock Exchange under its new name and ticker symbol, “PLGO,” on May 12, 2026.
Market Update
Market conditions remained competitive during the quarter, as increased industry capacity and market dynamics contributed to continued pricing pressure in certain insurance and reinsurance markets, including areas of property, while selected specialty lines continued to exhibit more favorable underwriting conditions. In this environment, we remained focused on disciplined underwriting and selective capital deployment, adjusting our portfolio to reflect prevailing market conditions and expected risk-adjusted returns. Our capital allocator model, diversified portfolio and underwriting partnerships are designed to position us to respond to changing market conditions while maintaining a focus on underwriting profitability.
28
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.
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 and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Net premiums earned | $ | 581.1 | $ | 538.0 | $ | 1,149.6 | $ | 1,141.0 | |||||||||||||||
| Attritional losses | 163.5 | 133.2 | 318.1 | 269.9 | |||||||||||||||||||
| Catastrophe and large losses | 161.8 | 74.3 | 234.1 | 407.6 | |||||||||||||||||||
| Prior year (favorable)/ adverse development | (32.7) | 89.2 | (35.8) | 48.4 | |||||||||||||||||||
Losses and loss adjustment expenses | 292.6 | 296.7 | 516.4 | 725.9 | |||||||||||||||||||
| Policy acquisition expenses (third party) | 185.9 | 169.0 | 338.4 | 336.9 | |||||||||||||||||||
The Fidelis Partnership commissions(1) | 70.5 | 70.6 | 157.3 | 149.0 | |||||||||||||||||||
| General and administrative expenses | $ | 29.3 | $ | 22.3 | $ | 58.5 | $ | 44.3 | |||||||||||||||
Attritional loss ratio | 28.2 | % | 24.7 | % | 27.6 | % | 23.7 | % | |||||||||||||||
Catastrophe and large loss ratio | 27.8 | % | 13.8 | % | 20.4 | % | 35.7 | % | |||||||||||||||
| Prior year loss reserve development impact on loss ratio | (5.6 | %) | 16.6 | % | (3.1 | %) | 4.2 | % | |||||||||||||||
Loss ratio | 50.4 | % | 55.1 | % | 44.9 | % | 63.6 | % | |||||||||||||||
| Policy acquisition expenses ratio | 32.0 | % | 31.4 | % | 29.4 | % | 29.5 | % | |||||||||||||||
| Underwriting ratio | 82.4 | % | 86.5 | % | 74.3 | % | 93.1 | % | |||||||||||||||
| The Fidelis Partnership commissions ratio | 12.1 | % | 13.1 | % | 13.7 | % | 13.1 | % | |||||||||||||||
| General and administrative expenses ratio | 5.0 | % | 4.1 | % | 5.1 | % | 3.9 | % | |||||||||||||||
| Combined ratio | 99.5 | % | 103.7 | % | 93.1 | % | 110.1 | % | |||||||||||||||
(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.
29
Investment Performance Measures
The table below sets out the calculations of our investment performance measures for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net investment income | $ | 44.0 | $ | 44.6 | $ | 87.7 | $ | 94.1 | |||||||||||||||
| Net realized and unrealized gains on other investments | 26.4 | 4.6 | 26.9 | 5.7 | |||||||||||||||||||
| Net realized and unrealized investment gains/(losses) excluding other investments | (1.5) | 2.1 | (3.6) | 6.9 | |||||||||||||||||||
Net investment return | 68.9 | 51.3 | 111.0 | 106.7 | |||||||||||||||||||
| Opening | |||||||||||||||||||||||
| Total investments | 3,437.7 | 3,426.9 | 3,237.4 | 3,834.7 | |||||||||||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents | 1,061.9 | 927.7 | 1,247.6 | 946.6 | |||||||||||||||||||
| Derivative assets, at fair value | — | 0.1 | 2.4 | — | |||||||||||||||||||
| Accrued investment income | 23.5 | 26.3 | 28.3 | 35.3 | |||||||||||||||||||
| Investment assets pending settlement | 10.0 | 12.7 | 4.8 | 0.5 | |||||||||||||||||||
| Derivative liabilities, at fair value | (2.0) | (1.7) | (1.7) | (0.5) | |||||||||||||||||||
| Investment liabilities pending settlement | (19.1) | (23.7) | (6.6) | (21.1) | |||||||||||||||||||
| Net investable assets | 4,512.0 | 4,368.3 | 4,512.2 | 4,795.5 | |||||||||||||||||||
Closing | |||||||||||||||||||||||
| Total investments | 3,775.0 | 3,154.2 | 3,775.0 | 3,154.2 | |||||||||||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents | 517.1 | 1,103.5 | 517.1 | 1,103.5 | |||||||||||||||||||
| Accrued investment income | 29.4 | 28.7 | 29.4 | 28.7 | |||||||||||||||||||
| Investment assets pending settlement | 7.1 | 30.2 | 7.1 | 30.2 | |||||||||||||||||||
| Derivative liabilities, at fair value | (1.6) | (4.3) | (1.6) | (4.3) | |||||||||||||||||||
| Investment liabilities pending settlement | (17.4) | (5.4) | (17.4) | (5.4) | |||||||||||||||||||
| Net investable assets | 4,309.6 | 4,306.9 | 4,309.6 | 4,306.9 | |||||||||||||||||||
Average investable assets | $ | 4,410.8 | $ | 4,337.6 | $ | 4,410.9 | $ | 4,551.2 | |||||||||||||||
| Net investment return - annualized | 6.2 | % | 4.7 | % | 5.0 | % | 4.7 | % | |||||||||||||||
•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).
30
Operating Performance Measures
The table below sets out the calculation of our operating performance measures for the three and six months ended June 30, 2026 and 2025:
| Three months ended | Six months ended | ||||||||||||||||||||||
| ($ in millions except for share and per share amounts) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||
| Net income/(loss) | $ | 44.4 | $ | 19.7 | $ | 152.4 | $ | (22.8) | |||||||||||||||
| Adjustment for net realized and unrealized investment gains | (24.9) | (6.7) | (23.3) | (12.6) | |||||||||||||||||||
| Adjustment for net foreign exchange (gains)/losses | 3.9 | (2.0) | 4.0 | 0.5 | |||||||||||||||||||
| Adjustment for corporate and other expenses | 2.3 | 1.2 | 2.7 | 1.2 | |||||||||||||||||||
Income tax (benefit)/expense (1) | 3.0 | 1.4 | (18.7) | 2.1 | |||||||||||||||||||
| Operating net income/(loss) | $ | 28.7 | $ | 13.6 | $ | 117.1 | $ | (31.6) | |||||||||||||||
| Average common shareholders' equity | $ | 2,237.2 | $ | 2,357.4 | $ | 2,310.1 | $ | 2,385.9 | |||||||||||||||
| Weighted average common shares outstanding | 84,414,876 | 108,627,579 | 88,664,331 | 110,077,312 | |||||||||||||||||||
| Share-based compensation plans | 692,674 | 508,245 | 601,534 | — | |||||||||||||||||||
| Weighted average diluted common shares outstanding | 85,107,550 | 109,135,824 | 89,265,865 | 110,077,312 | |||||||||||||||||||
| Annualized ROAE | 7.9 | % | 3.4 | % | 13.2 | % | (1.9) | % | |||||||||||||||
| Annualized Operating ROAE | 5.1 | % | 2.3 | % | 10.1 | % | (2.6) | % | |||||||||||||||
| Earnings/(loss) per diluted common share | $ | 0.52 | $ | 0.18 | $ | 1.71 | $ | (0.21) | |||||||||||||||
| Operating EPS | $ | 0.34 | $ | 0.12 | $ | 1.31 | $ | (0.29) | |||||||||||||||
(1) Income tax (benefit)/expense on adjustments to net income/(loss). The income tax benefit for the six months ended June 30, 2026 includes the reversal of a U.K. top-up tax charge of $21.4 million, see Note 15 (Income Taxes) of our unaudited consolidated financial statements.
•Operating net income/(loss): is a non-GAAP financial measure of our performance which does not consider the impact of certain non-recurring and other items that may not properly reflect the ordinary activities of our business, its performance or its future outlook. This measure is calculated as net income/(loss) excluding net realized and unrealized investment gains, net foreign exchange gains/(losses), corporate and other expenses, and the income tax effect on these items.
•Annualized return on average common equity (“Annualized ROAE”): represents annualized net income/(loss) divided by average common shareholders’ equity.
•Annualized operating return on average common equity (“Annualized Operating ROAE”): is a non-GAAP financial measure that represents a meaningful comparison between periods of our financial performance expressed as a percentage and is calculated as annualized operating net income/(loss) divided by average common shareholders’ equity.
•Operating earnings per share (“Operating EPS”): is a non-GAAP financial measure that represents a valuable measure of profitability and enables investors, analysts, rating agencies and other users of our financial information to more easily analyze our results in a manner similar to how management analyzes its underlying business performance. It is calculated by dividing operating net income/(loss) by the weighted average diluted common shares outstanding.
31
Results of Operations
The following table sets forth the key items discussed in the consolidated results of operations section, and the period over period change, for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||||||||
| Underwriting income/(loss) | $ | 2.8 | $ | (20.6) | $ | 23.4 | $ | 79.0 | $ | (115.1) | $ | 194.1 | |||||||||||||||||||||||
| Net investment income | 44.0 | 44.6 | (0.6) | 87.7 | 94.1 | (6.4) | |||||||||||||||||||||||||||||
| Net realized and unrealized investment gains | 24.9 | 6.7 | 18.2 | 23.3 | 12.6 | 10.7 | |||||||||||||||||||||||||||||
| Corporate and other expenses | (2.3) | (1.2) | (1.1) | (2.7) | (1.2) | (1.5) | |||||||||||||||||||||||||||||
| Net foreign exchange (losses)/gains | (3.9) | 2.0 | (5.9) | (4.0) | (0.5) | (3.5) | |||||||||||||||||||||||||||||
| Financing costs | (12.6) | (9.3) | (3.3) | (27.3) | (18.0) | (9.3) | |||||||||||||||||||||||||||||
| Income tax (expense)/benefit | (8.5) | (2.5) | (6.0) | (3.6) | 5.3 | (8.9) | |||||||||||||||||||||||||||||
| Net income/(loss) | $ | 44.4 | $ | 19.7 | $ | 24.7 | $ | 152.4 | $ | (22.8) | $ | 175.2 | |||||||||||||||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 913.5 | $ | 902.3 | $ | 11.2 | $ | 2,349.6 | $ | 2,169.3 | $ | 180.3 | |||||||||||||||||||||||
| Reinsurance premium ceded | (370.0) | (356.1) | (13.9) | (802.1) | (814.2) | 12.1 | |||||||||||||||||||||||||||||
| Net premiums written | 543.5 | 546.2 | (2.7) | 1,547.5 | 1,355.1 | 192.4 | |||||||||||||||||||||||||||||
| Net premiums earned | 514.7 | 458.9 | 55.8 | 1,029.6 | 970.8 | 58.8 | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | (301.2) | (291.8) | (9.4) | (529.0) | (573.2) | 44.2 | |||||||||||||||||||||||||||||
| Policy acquisition expenses | (163.9) | (148.9) | (15.0) | (303.1) | (297.1) | (6.0) | |||||||||||||||||||||||||||||
| Underwriting income | $ | 49.6 | $ | 18.2 | $ | 31.4 | $ | 197.5 | $ | 100.5 | $ | 97.0 | |||||||||||||||||||||||
| Loss ratio | 58.5 | % | 63.6 | % | (5.1) pts | 51.4 | % | 59.0 | % | (7.6) pts | |||||||||||||||||||||||||
| Policy acquisition expense ratio | 31.8 | % | 32.4 | % | (0.6) pts | 29.4 | % | 30.6 | % | (1.2) pts | |||||||||||||||||||||||||
| Underwriting ratio | 90.3 | % | 96.0 | % | (5.7) pts | 80.8 | % | 89.6 | % | (8.8) pts | |||||||||||||||||||||||||
For the three months ended June 30, 2026, our GPW increased primarily driven by growth from our network of expanded underwriting partners in our Asset Backed Finance & Portfolio Credit and Property lines of business. For the six months ended June 30, 2026, our GPW increased primarily driven by growth from our network of expanded underwriting partners, in several lines of business, partially offset by a non-renewal in our Cyber line of business that did not meet our underwriting criteria and rating hurdles.
For the three and six months ended June 30, 2026, net premiums earned ("NPE") increased due to earnings from higher net premiums written in the current and prior year periods.
Our policy acquisition expense ratio for the three and six months ended June 30, 2026 remained consistent with the prior year periods..
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The following table is a summary of our Insurance segment’s losses and loss adjustment expenses:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| Attritional losses | $ | 164.9 | $ | 121.2 | $ | 43.7 | $ | 305.7 | $ | 243.8 | $ | 61.9 | |||||||||||||||||||||||
| Catastrophe and large losses | 157.0 | 57.2 | 99.8 | 228.8 | 223.5 | 5.3 | |||||||||||||||||||||||||||||
| (Favorable)/adverse prior year development | (20.7) | 113.4 | (134.1) | (5.5) | 105.9 | (111.4) | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | $ | 301.2 | $ | 291.8 | $ | 9.4 | $ | 529.0 | $ | 573.2 | $ | (44.2) | |||||||||||||||||||||||
| Loss ratio - attritional losses | 32.0 | % | 26.4 | % | 5.6 pts | 29.7 | % | 25.1 | % | 4.6 pts | |||||||||||||||||||||||||
| Loss ratio - catastrophe and large losses | 30.5 | % | 12.5 | % | 18.0 pts | 22.2 | % | 23.0 | % | (0.8) pts | |||||||||||||||||||||||||
| Loss ratio - prior accident years | (4.0) | % | 24.7 | % | (28.7) pts | (0.5) | % | 10.9 | % | (11.4) pts | |||||||||||||||||||||||||
| Loss ratio | 58.5 | % | 63.6 | % | (5.1) pts | 51.4 | % | 59.0 | % | (7.6) pts | |||||||||||||||||||||||||
For the three and six months ended June 30, 2026, our loss ratio in the Insurance segment improved by 5.1 points and 7.6 points, respectively, compared to the prior year periods.
The attritional loss ratio for the three and six months ended June 30, 2026, increased by 5.6 points and 4.6 points, respectively, compared to the prior year periods due to a higher level of small losses in the current year periods.
The catastrophe and large losses for the three months ended June 30, 2026, were primarily from losses related to the conflict in the Middle East, the gas plant explosion at the Ras Laffan facility in Qatar, as well as other loss events in our Property and Marine lines of business. This compared to the prior period catastrophe and large losses that were primarily attributable to our Aviation & Aerospace line of business, related to Air India, and our Property line of business, related to two loss events. The catastrophe and large losses for the six months ended June 30, 2026 were primarily attributable to losses related to the conflict in the Middle East, the gas plant explosion at the Ras Laffan facility in Qatar, as well as loss events in various lines of business including Other Insurance, Property and Marine. This compared to the prior period catastrophe and large losses that were primarily attributable to the California wildfires in our Property line of business, together with other losses in our Other Insurance, Aviation & Aerospace, and Property lines of business.
For the three months ended June 30, 2026, favorable prior year development was primarily driven by better than expected loss emergence in multiple lines of business. For the six months ended June 30, 2026 favorable prior year development was primarily driven by better than expected loss emergence in multiple lines of business, partially offset 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.
Reinsurance Segment
The following table is a summary of our Reinsurance segment’s underwriting results:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 383.3 | $ | 316.7 | $ | 66.6 | $ | 787.6 | $ | 772.6 | $ | 15.0 | |||||||||||||||||||||||
| Reinsurance premium ceded | (157.6) | (164.0) | 6.4 | (385.6) | (402.4) | 16.8 | |||||||||||||||||||||||||||||
| Net premiums written | 225.7 | 152.7 | 73.0 | 402.0 | 370.2 | 31.8 | |||||||||||||||||||||||||||||
| Net premiums earned | 66.4 | 79.1 | (12.7) | 120.0 | 170.2 | (50.2) | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | 8.6 | (4.9) | 13.5 | 12.6 | (152.7) | 165.3 | |||||||||||||||||||||||||||||
| Policy acquisition expenses | (22.0) | (20.1) | (1.9) | (35.3) | (39.8) | 4.5 | |||||||||||||||||||||||||||||
| Underwriting income/(loss) | $ | 53.0 | $ | 54.1 | $ | (1.1) | $ | 97.3 | $ | (22.3) | $ | 119.6 | |||||||||||||||||||||||
| Loss ratio | (13.0) | % | 6.2 | % | (19.2) pts | (10.5) | % | 89.7 | % | (100.2) pts | |||||||||||||||||||||||||
| Policy acquisition expense ratio | 33.1 | % | 25.4 | % | 7.7 pts | 29.4 | % | 23.4 | % | 6.0 pts | |||||||||||||||||||||||||
| Underwriting ratio | 20.1 | % | 31.6 | % | (11.5) pts | 18.9 | % | 113.1 | % | (94.2) pts | |||||||||||||||||||||||||
For the three months ended June 30, 2026, GPW increased from targeted deployment into areas where we continue to see attractive risk-adjusted returns. For the six months ended June 30, 2026, our GPW increased primarily from targeted deployment into areas where we continue to see attractive risk-adjusted returns, partially offset by reinstatement premiums related to the California Wildfires in the prior year period.
For the three months ended June 30, 2026, NPE decreased driven by our business mix. For the six months ended June 30, 2026, NPE decreased due to the acceleration of earnings on contracts with exposure to the California wildfires in the prior year period.
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Our policy acquisition expense ratio for the three and six months ended June 30, 2026 increased primarily due to business mix and changes in ceded premium and commissions earned from outwards reinsurance partners.
The following table is a summary of our Reinsurance segment’s losses and loss adjustment expenses:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| Attritional losses | $ | (1.4) | $ | 12.0 | $ | (13.4) | $ | 12.4 | $ | 26.1 | $ | (13.7) | |||||||||||||||||||||||
| Catastrophe and large losses | 4.8 | 17.1 | (12.3) | 5.3 | 184.1 | (178.8) | |||||||||||||||||||||||||||||
| Favorable prior year development | (12.0) | (24.2) | 12.2 | (30.3) | (57.5) | 27.2 | |||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | $ | (8.6) | $ | 4.9 | $ | (13.5) | $ | (12.6) | $ | 152.7 | $ | (165.3) | |||||||||||||||||||||||
| Loss ratio - attritional losses | (2.1) | % | 15.2 | % | (17.3) pts | 10.4 | % | 15.3 | % | (4.9) pts | |||||||||||||||||||||||||
| Loss ratio - catastrophe and large losses | 7.2 | % | 21.6 | % | (14.4) pts | 4.4 | % | 108.2 | % | (103.8) pts | |||||||||||||||||||||||||
| Loss ratio - prior accident years | (18.1) | % | (30.6) | % | 12.5 pts | (25.3) | % | (33.8) | % | 8.5 pts | |||||||||||||||||||||||||
| Loss ratio | (13.0) | % | 6.2 | % | (19.2) pts | (10.5) | % | 89.7 | % | (100.2) pts | |||||||||||||||||||||||||
For the three and six months ended June 30, 2026, our loss ratio in the Reinsurance segment improved by 19.2 points and 100.2 points, respectively, compared to the prior year periods.
The attritional loss ratio for the three and six months ended June 30, 2026, improved by 17.3 points and 4.9 points, respectively, compared to the prior year periods, both of which were benign in terms of attritional losses.
There were no material catastrophe and large losses for the three and six months ended June 30, 2026. The catastrophe and large losses for the three months ended June 30, 2025 were a result of an updated estimate of outwards reinsurance recoveries. The catastrophe and large losses for the six months ended June 30, 2025 were attributable to the California wildfires.
For the three and six months ended June 30, 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| Ceding commission expense | $ | 78.4 | $ | 70.6 | $ | 7.8 | $ | 155.0 | $ | 149.0 | $ | 6.0 | |||||||||||||||||||||||
| Profit commission expense | (7.9) | — | (7.9) | 2.3 | — | 2.3 | |||||||||||||||||||||||||||||
| Total commissions | $ | 70.5 | $ | 70.6 | $ | (0.1) | $ | 157.3 | $ | 149.0 | $ | 8.3 | |||||||||||||||||||||||
| Ceding commission expense ratio | 13.5 | % | 13.1 | % | 0.4 pts | 13.5 | % | 13.1 | % | 0.4 pts | |||||||||||||||||||||||||
| Profit commission expense ratio | (1.4) | % | — | % | (1.4) pts | 0.2 | % | — | % | 0.2 pts | |||||||||||||||||||||||||
| The Fidelis Partnership commissions ratio | 12.1 | % | 13.1 | % | (1.0) pts | 13.7 | % | 13.1 | % | 0.6 pts | |||||||||||||||||||||||||
For the three months ended June 30, 2026, the decrease in The Fidelis Partnership commissions ratio was driven by our business mix and by the reduction of the accrued profit commission as a result of operating profit in the period. For the six months ended June 30, 2026, the increase in The Fidelis Partnership commissions ratio was driven by our mix of business and 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 and six months ended June 30, 2026, general and administrative expenses were $29.3 million and $58.5 million, respectively (2025: $22.3 million and $44.3 million, respectively). The increase was due to strategic investments to strengthen our
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talent base, enhance our infrastructure and improve our technology. Also, improved financial performance resulted in higher variable compensation accruals in the current year.
Investments
The components of net investment return are as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||
| Net investment income | $ | 44.0 | $ | 44.6 | $ | (0.6) | $ | 87.7 | $ | 94.1 | $ | (6.4) | |||||||||||||||||||||||
| Net realized and unrealized gains on other investments | 26.4 | 4.6 | 21.8 | 26.9 | 5.7 | 21.2 | |||||||||||||||||||||||||||||
| Net realized and unrealized investment gains/(losses) excluding other investments | (1.5) | 2.1 | (3.6) | (3.6) | 6.9 | (10.5) | |||||||||||||||||||||||||||||
Net investment return | $ | 68.9 | $ | 51.3 | $ | 17.6 | $ | 111.0 | $ | 106.7 | $ | 4.3 | |||||||||||||||||||||||
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 and six months ended June 30, 2026, we generated net investment income of $44.0 million and $87.7 million, respectively, at an average yield of 4.3% and 4.2%, respectively (2025: $44.6 million and $94.1 million at an average yield of 4.4% and 4.4%). Our net investment income for the three months ended June 30, 2026 remained consistent with the prior year period. For the six months ended June 30, 2026, the decrease 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 increase in our net investment income for the three and six months ended June 30, 2026, was driven by positive performance from our hedge fund portfolio and positive 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. For the three and six months ended June 30, 2026, the decrease resulted from movements in our provision for current expected credit losses of $(0.8) million and $(3.0) million, respectively (2025: $1.3 million and $5.3 million).
Corporate and Other Expenses
Corporate and other expenses in the three and six months ended June 30, 2026 include unamortized discount and debt issuance costs on the redemption of junior notes and expenses related to our rebrand.
Net Foreign Exchange Gains/(Losses)
At June 30, 2026, we held foreign exchange contracts with a notional amount of $31.7 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 and six months ended June 30, 2026, financing costs were $12.6 million and $27.3 million, respectively (2025: $9.3 million and $18.0 million, respectively). 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.
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Financial Condition, Liquidity and Capital Resources
Financial Condition at June 30, 2026
•Total cash and cash equivalents, restricted cash and cash equivalents, and investments of $4.3 billion. 90.9% 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 2.9 years.
•Total long-term debt of $720.5 million, resulting in a debt-to-total capital ratio of 24.5%.
•Total capital of $2.9 billion, with $305.3 million of capital returned to common shareholders in the six months ended June 30, 2026, including common share repurchases of $279.5 million and dividends of $25.8 million.
•Book value per diluted common share of $26.56 (dilutive shares at June 30, 2026 of 882,554).
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 June 30, 2026.
During the six months ended June 30, 2026, PLGO received dividends from subsidiaries of $325.0 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 six months ended June 30, 2026 were:
•Repurchase of common shares: Repurchases of an aggregate of 14,324,667 common shares for an aggregate of $279.4 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 June 30, 2026 was $139.1 million.
•Dividend payments to the common shareholders: During the six months ended June 30, 2026, we paid quarterly cash dividends to our common shareholders for a total dividend distribution of $25.8 million (2025: $22.0 million).
Long-term debt: At June 30, 2026, PLGO had $720.5 million in debt outstanding. For the six months ended June 30, 2026, PLGO incurred interest expense of $25.9 million on outstanding debt. Such debt was comprised of the Senior Notes and the Subordinated 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.
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 six months ended June 30, 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
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recognize the effects of inflation. The actual effects of inflation on our results cannot be accurately known, however, until claims are ultimately resolved.
Cash Flows
The following table summarizes our cash flows from operating, investing and financing activities:
| Six Months Ended | |||||||||||
| June 30, 2026 | June 30, 2025 | ||||||||||
| Net cash provided by/(used in) operating activities | $ | 247.5 | $ | (792.3) | |||||||
| Net cash provided by/(used in) investing activities | (543.0) | 739.6 | |||||||||
| Net cash provided by/(used in) financing activities | (431.9) | 200.7 | |||||||||
| Effect of exchange rate changes on foreign currency cash | (3.1) | 8.9 | |||||||||
| Net increase/(decrease) in cash, restricted cash, and cash equivalents | $ | (730.5) | $ | 156.9 | |||||||
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 six months ended June 30, 2026, primarily related to premium receipts, outwards reinsurance recoveries and interest income exceeding payments for claims, commissions and outward reinsurance premiums. The net operating cash outflows for the six months ended June 30, 2025, primarily related to payments for the Aviation litigation settlements and claims in respect of the Ukraine Conflict, including the judgment handed down by the English High Court, and for the California wildfire claims, exceeding premium receipts, commissions and outward reinsurance premiums.
Net cash used in investing activities for the six months ended June 30, 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. Cash provided by investing activities for the six months ended June 30, 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.
Cash used in financing activities in the six months ended June 30, 2026, primarily consisted of cash outflows of $279.5 million from common share repurchases, $125.0 million from the redemption of junior notes and $25.8 million from dividends paid to common shareholders. Cash provided by financing activities in the six months ended June 30, 2025, primarily consisted of cash inflows of $393.3 million from the proceeds from issuance of debt, net of issuance costs, partially offset by cash outflows of $110.8 million from common share repurchases, $59.6 million from the repurchase of preferred securities and $22.0 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 June 30, 2026:
| Bank | Commitment | In Use | Secured by collateral | ||||||||||||||
| Lloyds Bank plc | $ | 135.0 | $ | 27.8 | $ | 28.9 | |||||||||||
| Citibank N.A. London Branch | 70.0 | 14.1 | 17.6 | ||||||||||||||
| Barclays Bank plc | 135.0 | 39.1 | 32.7 | ||||||||||||||
| Bank of Montreal | 140.0 | 30.7 | 32.9 | ||||||||||||||
| Total | $ | 480.0 | $ | 111.7 | $ | 112.1 | |||||||||||
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.
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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 June 30, 2026, our fixed maturity portfolio had an approximate duration of 2.9 years.
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 June 30, 2026:
| Interest Rate Shift in Basis Points | -100 | -50 | 0 | 50 | 100 | ||||||||||||||||||||||||
| Market Value | $ | 3,484.0 | $ | 3,433.7 | $ | 3,383.8 | $ | 3,334.6 | $ | 3,285.9 | |||||||||||||||||||
| Gain/(Loss) | $ | 100.2 | $ | 49.8 | — | $ | (49.3) | $ | (98.0) | ||||||||||||||||||||
Percentage of portfolio at June 30, 2026 | 3.0 | % | 1.5 | % | — | (1.5 | %) | (2.9 | %) | ||||||||||||||||||||
Foreign Currency Risk: Our reporting currency and functional currency is the U.S. dollar. At June 30, 2026, 97.2% of our cash and investments was held in U.S. dollars (December 31, 2025: 97.4%), with the balance of 2.8% 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 June 30, 2026 of $3.0 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 and six months ended June 30, 2026, the amount recognized within foreign exchange gains and losses for settled foreign exchange contracts was a realized gain/(loss) of $(3.1) million and $0.6 million, respectively, (2025: $(8.8) million and $(12.0) 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 June 30, 2026, the fair value of investments with direct exposure to equity price risk totaled $341.5 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 $34.1 million. A hypothetical 10% increase in the value of each position would increase the fair value of such investments by $34.1 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
38
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
39
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.
40
Q2 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 June 30, 2026, and gross premiums written for the trailing twelve months (“TTM”) ended June 30, 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 $14.0 bn Total Assets(1) $2.2 bn Shareholders’ Equity(1) $4.3 bn Cash & Invested Assets(1) $4.9 bn Gross Premiums Written(1) Financial Strength Rating(2) A AM Best Stable Outlook A- S&P Stable Outlook A3 Moody’s Stable Outlook 19% 2% 4% 4% 5% 10% 12% 15% 28% $976m (20%) INSURANCE $3,937m (80%) $4.9 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 $26.56$0.40 $0.90 $1.20 2022 2023 2024 2025 Jun 30, 2026 2026 Second Quarter Key Takeaways 4 • Disciplined execution and capital allocation continue to drive shareholder value, with book value per diluted common share increasing 23% from the second quarter of 2025, including dividends, to $26.56. • Growth continues to highlight the advantages of our capital allocator model, with gross premiums written up 6%, driven by our broadening network of underwriting partners and targeted deployment into attractive opportunities. • Our strong capital position provides flexibility to pursue profitable underwriting opportunities while returning capital to shareholders. We continued our track record of returning capital to shareholders in the second quarter, returning $73 million through dividends and share repurchases, including $32 million in privately negotiated transactions. $3.0 $3.6 $4.4 $4.7 $4.9 2022 2023 2024 2025 TTM Q2 2026 Gross Premiums Written CAGR: +15% Book Value Cumulative Common Dividends Book Value Per Diluted Common Share +71% (1) (1) As of the Separation Transactions on January 3, 2023. $ in billions
Key Quarterly Highlights 2026 Second Quarter Highlights Note: 1. See Appendix for definitions and reconciliations of non-GAAP financial measures. Q2 2025 QTD Q2 2026 QTD Gross Premiums Written $1,219M $1,297M Net Premiums Earned $538M $581M Combined Ratio 103.7% 99.5% Annualized Operating ROAE(1) 2.3% 5.1% Operating Net Income(1) $14M $29M Net Investment Income $45M $44M Operating EPS(1) $0.12 $0.34 • Gross premiums written growth of $78 million or 6% from the second quarter of 2025, driven by growth from our network of expanded underwriting partners and from targeted deployment into areas where we continue to see attractive risk-adjusted returns. • Combined ratio of 99.5%, reflecting a higher level of catastrophe and large losses of $162 million in the current year quarter. • Annualized Operating ROAE of 5.1% for the quarter, an improvement of 3 points over the prior year period. • Net investment income remained consistent with the prior year period. • Returned $73 million of capital to common shareholders in the three months ended June 30, 2026, including common share repurchases of $60 million and dividends of $13 million. Common share repurchases included $25 million executed in the open market and $35 million through privately negotiated transactions, including the repurchase of shares from Pine Brook Feal Intermediate, L.P. for $32 million, which resulted in pro-rata repurchases from The Fidelis Partnership for $3 million. 5
Key Year-to-Date Highlights 2026 Year-to-Date Highlights Note: 1. See Appendix for definitions and reconciliations of non-GAAP financial measures. Q2 2025 YTD Q2 2026 YTD Gross Premiums Written $2,942M $3,137M Net Premiums Earned $1,141M $1,150M Combined Ratio 110.1% 93.1% Annualized Operating ROAE(1) (2.6)% 10.1% Operating Net Income/(Loss)(1) $(32)M $117M Net Investment Income $94M $88M Operating EPS(1) $(0.29) $1.31 December 31, 2025 June 30, 2026 Book Value Per Diluted Share $24.61 $26.56 Total Assets $12.4B $14.0B Total Shareholders' Equity $2.4B $2.2B • Gross premiums written growth of $195 million or 7% compared to the first half of 2025. This growth from our network of expanded underwriting partners and from targeted deployment into areas where we continue to see attractive risk- adjusted returns. • Combined ratio of 93.1%, an improvement of 17 points compared to 110.1% in the first half of 2025 • Annualized Operating ROAE of 10.1%, an improvement of 13 points compared to the first half of 2025 • Net investment income decrease 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 $26.56 at June 30, 2026, an increase of 9.1% including cumulative dividends from December 31, 2025, of $24.61. • Returned $305 million of capital to common shareholders in the six months ended June 30, 2026, including common share repurchases of $280 million and dividends of $26 million. Common share repurchases included $63 million executed in the open market and $217 million through privately negotiated transactions, which resulted in pro-rata repurchases from The Fidelis Partnership for $21 million. 6
77.3% 70.0% 89.7% 81.9% 89.6% 80.8% 51.0% 42.8% 57.9% 52.5% 59.0% 51.4% 26.3% 27.2% 31.8% 29.4% 30.6% 29.4% Loss Ratio Policy Acquisition Expense Ratio 2022 2023 2024 2025 Q2 2025 YTD Q2 2026 YTD $2,413 $2,960 $3,539 $3,756 $2,169 $2,350 2022 2023 2024 2025 Q2 2025 YTD Q2 2026 YTD 7 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 8% year-to-date primarily driven by growth from our network of expanded underwriting partners, in several lines of business, partially offset by a non-renewal in our Cyber line of business that did not meet our underwriting criteria and rating hurdles. • Loss ratio improved by 7.6 points year-to-date driven by favorable prior year development in the current year period, compared to adverse prior year development in the prior year period. • Policy acquisition expense ratio is consistent with the prior year period. $ in millions
97.4% 36.5% 38.9% 50.0% 113.1% 18.9%75.0% 9.3% 15.3% 23.7% 89.7% (10.5)% 22.4% 27.2% 23.6% 26.3% 23.4% 29.4% Loss Ratio Policy Acquisition Expense Ratio 2022 2023 2024 2025 Q2 2025 YTD Q2 2026 YTD $605 $619 $865 $961 $773 $788 2022 2023 2024 2025 Q2 2025 YTD Q2 2026 YTD 8 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 increased by 2% year-to-date primarily from targeted deployment into areas where we continue to see attractive risk-adjusted returns, partially offset by reinstatement premiums related to the California Wildfires in the prior year period. • Loss ratio improved by 100.2 points year-to-date 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 6.0 points year-to-date primarily due to business mix and changes in ceded premium and commissions earned from outwards reinsurance partners. $ in millions Gross Premiums Written Segment Highlights Underwriting Ratio(1) (2)
$49.2 $50.6 $46.5 $44.2 $70.4 $99.8 $114.6 Net Investment Income Realized and Unrealized Gains on Other Investments Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 YTD Q2 2026 YTD • For the three and six months ended June 30, 2026, we generated net investment income of $44.0 million and $87.7 million, respectively, at an average yield of 4.3% and 4.2%, respectively (2025: $44.6 million and $94.1 million at an average yield of 4.4% and 4.4%). • As of June 30, 2026, 91% is comprised of cash and cash equivalents, restricted cash and cash equivalents, fixed maturities, short-term securities and fixed income funds. • Overall book yield of 4.9% reflects steps taken to optimize portfolio. High Quality and Diversified Investment Portfolio 9 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 June 30, 2026 $3.4 bn Fixed Income Portfolio(2) 2.9 yrs Duration A+ Weighted-Average Credit Quality ~86% Rated A or Better 41% Corporates 8% Hedge Funds 10% Agency MBS6% Other ABS 16% U.S. Treasuries 12% Cash $4.3 bn Investment Portfolio Highlights Net Investment Income & Realized and Unrealized Gains on Other Investments(1) 6% Fixed Income Funds <1% Private Credit Funds
10 • 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. • Long-term debt comprised: ◦ $400 million 7.750% Subordinated Notes, due 2055 ◦ $330 million 4.875% Senior Notes, due 2030 • Since the inception of our share repurchase program in 2024, our strategic approach to share repurchases has contributed $2.14 to our book value per share. Capital Management HighlightsCapital Strength and Balance Sheet Scale Strong Capital Position and Disciplined Approach to Capital Allocation $770.7 $235.8 $410.6 $124.3 Common share dividends Privately negotiated share repurchases Open market share repurchases $2,941.0 $2,220.5 $720.5 Long-term debt Common equity Note: 1. As of June 30, 2026. 2. Includes pro rata shares repurchased from The Fidelis Partnership. 3. Dividend yield is the annualized Q2 2026 dividend divided by $25.03, the closing share price as of August 7, 2026. As of June 30, 2026 ($ in millions) Capital Management Inception to Date As of June 30, 2026 ($ in millions) (2) 24.5% Debt-to-Capital Ratio(1) $0.15 Quarterly dividend $139.1 million Share repurchase authorization remaining(1) 2.4% Dividend Yield(3) (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 71%(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 11 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 June 30, 2026, and includes accumulated dividends to common shareholders of $1.20. See slide 4 for further details. Why Invest in Pelagos Insurance Capital
Appendix
Non-GAAP Financial Measures Reconciliation Three months ended Six months ended ($ in millions except for share and per share amounts) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net income/(loss) $ 44.4 $ 19.7 $ 152.4 $ (22.8) Adjustment for net realized and unrealized investment gains (24.9) (6.7) (23.3) (12.6) Adjustment for net foreign exchange (gains)/losses 3.9 (2.0) 4.0 0.5 Adjustment for corporate and other expenses 2.3 1.2 2.7 1.2 Income tax (benefit)/expense (1) 3.0 1.4 (18.7) 2.1 Operating net income/(loss) $ 28.7 $ 13.6 $ 117.1 $ (31.6) Average common shareholders' equity $ 2,237.2 $ 2,357.4 $ 2,310.1 $ 2,385.9 Weighted average common shares outstanding 84,414,876 108,627,579 88,664,331 110,077,312 Share-based compensation plans 692,674 508,245 601,534 — Weighted average diluted common shares outstanding 85,107,550 109,135,824 89,265,865 110,077,312 Annualized ROAE 7.9 % 3.4 % 13.2 % (1.9) % Annualized Operating ROAE 5.1 % 2.3 % 10.1 % (2.6) % Earnings/(loss) per diluted common share $ 0.52 $ 0.18 $ 1.71 $ (0.21) Operating EPS $ 0.34 $ 0.12 $ 1.31 $ (0.29) 13 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, net foreign exchange gains/ (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 six months ended June 30, 2026 includes the reversal of a U.K. top-up tax charge of $21.4 million.
W: pelagosinsurancecapital.com T: +1 441 279 2590 Wellesley House South 4th Floor, 90 Pitts Bay Road, Pembroke HM 08 Bermuda
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