Pelagos Insurance Capital Ltd (PLGO)

Price$25.32Cached quoteAs of 2026-09-05 22:42 UTC

AI: Fair-priced

Price checkShares sit just below latest book value, offering a modest cushion rather than an obvious bargain.

Research confirms Pelagos Insurance Capital Limited trades on the NYSE as PLGO after its May 2026 rebrand from Fidelis Insurance Holdings. At the observed market quote, the stock is roughly 0.94 times June book value per diluted share of $26.56. Trailing earnings multiples also look low near six times, but insurer profits can swing sharply with catastrophe losses and reserve changes. That combination supports a Fair-priced view: valuation is inexpensive on headline multiples, yet not sufficiently discounted to ignore underwriting volatility.

Big pictureFirst-half earnings recovered sharply, but cash is being deployed aggressively through buybacks, debt retirement, and dividends.

For the first half of 2026, net income was $152.4 million and operating net income $117.1 million, while the combined ratio improved to 93.1%; below 100 means underwriting was profitable before investment income. Operating cash flow was $247.5 million. Cash and restricted cash fell as Pelagos bought investments, repurchased shares, redeemed $125 million of junior notes, and paid dividends. Management said liquidity remained sufficient, supported by operating-subsidiary dividends. Cash durability therefore looks acceptable, but depends on continued underwriting profitability and regulatory freedom to move capital upstream.

Business strengthCapital strength, ratings, diversification, and shrinking share count help offset meaningful catastrophe and partner-dependence risks.

At June 30, Pelagos had $2.22 billion of shareholders' equity, $720.5 million of long-term debt, and a 24.5% debt-to-capital ratio. Its debt is mostly 2030 senior notes and 2055 subordinated notes, so near-term maturity pressure is limited, although interest expense is meaningful. Ratings remained A from AM Best, A- from S&P, and A3 from Moody's. The portfolio spans specialty insurance and reinsurance, while the external Fidelis Partnership handles substantial underwriting functions; diversification helps, but execution and counterparty dependence still matter.

What could change the storyBetter catastrophe experience could unlock book-value compounding; softer pricing or fresh reserve shocks could reverse it quickly.

The bull case assumes combined ratios settle in the low-to-mid 90s, catastrophe losses normalize, and management keeps repurchasing shares below book value; those buybacks reduce share count and can raise book value per remaining share. The bear case assumes insurance pricing softens, large-loss frequency stays elevated, or prior-year reserves deteriorate, pushing the combined ratio toward or above 100 and consuming capital. Because insurance pricing is cyclical, management's ability to shift capital toward better opportunities is central. New equity issuance would weaken the current anti-dilution benefit.

AI: News

Q2 underwriting improvesSecond-quarter underwriting moved back above break-even despite much heavier catastrophe and large-loss costs.

On August 12, Pelagos reported second-quarter net income of $44.4 million and operating net income of $28.7 million. Gross premiums written rose 6.4% year over year, and the combined ratio improved to 99.5% from 103.7%. However, catastrophe and large losses reached $161.8 million, more than double the prior-year quarter, leaving underwriting income at only $2.8 million. The result shows better underlying discipline, but also how quickly large events can compress earnings.

Post-earnings selloffShares fell sharply after operating earnings missed consensus, highlighting investor sensitivity to catastrophe-heavy quarters.

On August 13, the stock closed down about 6.5% after the Q2 report. The Insurer said operating earnings per diluted share were well below consensus even though the combined ratio improved. Management argued its Middle East business remained profitable despite conflict losses. The reaction is useful context for valuation: investors appear willing to reward book-value growth, but can quickly reset expectations when large losses make quarterly earnings less predictable.

Dividend maintainedThe board kept the quarterly cash dividend unchanged, continuing a modest shareholder-return stream.

On August 3, Pelagos declared a $0.15 quarterly dividend, payable September 25 to shareholders of record September 14. The dividend is small relative to the company's larger buyback program, so repurchases remain the more important capital-allocation lever. That mix is sensible while shares trade around book value: dividends provide regular cash returns, while buybacks below book can increase per-share value. The trade-off is less capital retained for unusually attractive underwriting opportunities.

KBW presentation scheduledManagement will present at KBW, offering a near-term chance to clarify strategy after Q2.

On August 25, Pelagos said Group Managing Director Jonny Strickle would present at the 2026 KBW Insurance Conference in New York on September 10. Investors may focus on catastrophe-loss trends, reinsurance pricing, buyback capacity, and how management is reallocating capital as market conditions evolve. The event itself does not change fundamentals, but updated commentary could shift assumptions behind sustainable return on equity and the appropriate price-to-book multiple.

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Revenue

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2025

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021
Revenue	$2.50B	$2.42B	$3.60B	$1.51B	$1.19B
Net income	$225.5M	$113.3M	$2.13B	$52.6M	$68.3M
Net profit margin	9.02%	4.68%	59.30%	3.48%	5.72%
Basic EPSper basic share	$2.12	$0.98	$18.65	$0.27	$0.35
Diluted EPSper diluted share	$2.11	$0.98	$18.65	$0.26	$0.34

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Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of PLGO
Holder	Shares held
Crestview Partners III GP, L.P.	9.74M
COOPERMAN LEON G	8.51M
TRAVELERS COMPANIES, INC.	5.81M
Pine Brook Road Advisors, L.P.	5.77M
LSV ASSET MANAGEMENT	4.76M
Crestview Partners IV GP, L.P.	4.51M
DIMENSIONAL FUND ADVISORS LP	3.23M
BlackRock, Inc.	3.08M
AMERICAN CENTURY COMPANIES INC	1.5M
ROYCE & ASSOCIATES LP	1.08M
NFC Investments, LLC	918.11K
STATE STREET CORP	824.69K
Burrows Daniel David	715.52K
GOLDMAN SACHS GROUP INC	714.32K
BRIDGEWAY CAPITAL MANAGEMENT, LLC	713.92K
TWO SIGMA INVESTMENTS, LP	694.24K
CLOUGH CAPITAL PARTNERS L P	597.95K
GEODE CAPITAL MANAGEMENT, LLC	595.41K
JACOBS LEVY EQUITY MANAGEMENT, INC	592.49K
AQR CAPITAL MANAGEMENT LLC	545.09K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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