Pelagos Insurance Capital (PLGO) Q3 2026 earnings summary

Executive summary

• Q3 gross premiums written rose 5.3% YoY to $839.8M; combined ratio was 91.5% and annualized Operating ROAE was 15.3%.

• 9M gross premiums written increased 6.4% to $3,977M; combined ratio improved to 92.4% from 99.5%, and annualized Operating ROAE rose to 11.8% from 5.2%.

• Strategy emphasizes selective capital deployment through an expanding underwriting-partner network, profitable growth and shareholder returns.

• Management expects Q4 to be the strongest growth quarter of 2026, with full-year premium growth at the high end of the mid-single-digit range.

• Book value per diluted share was $26.60 at September 30, up 8.1% since year-end; excluding AOCI, it was $27.11, up 11.9%.

Financial highlights

• Q3 operating net income was $83.3M, or $1.00 per diluted share; net income was $61.7M, or $0.74 per diluted share.

• Q3 net premiums earned were $783.7M versus $599.8M; underwriting income was $67.0M versus $125.5M.

• 9M operating net income was $200.4M versus $95.2M; net income was $214.1M versus $107.7M.

• Net investment income was $44.6M in Q3 and $132.3M for 9M; Q3 net realized and unrealized investment losses were $27.4M.

• 9M net premiums earned were $1,933M versus $1,741M.

Outlook and guidance

• Q4 net premiums earned expected at $550M-$600M in insurance and $85M-$105M in reinsurance.

• FY 2026 gross premium growth expected at the high end of the mid-single-digit range, with Q4 expected to be the strongest growth quarter.

• Management expects 2027 growth to be similar to the mid-single-digit range; through-the-cycle ROAE target remains 13%-15%.