Pelagos Insurance Capital (PLGO) Q4 2025 earnings summary

Executive summary

• Achieved a combined ratio of 80.6% in Q4 2025, a 47-point improvement year-over-year, and annualized operating ROAE of 18.3%, exceeding long-term targets.

• Gross premiums written reached a record $4.7 billion for 2025, up 7.1% year-over-year, driven by new underwriting partnerships and disciplined capital allocation.

• Book value per diluted share rose to $24.61 at year-end 2025, up 15.2% including dividends.

• Strategic focus on underwriting discipline, risk management, and capital returns, including significant share repurchases and a new brand identity as Pelagos Insurance Capital.

• Returned $314 million to shareholders in 2025 via $261 million in share repurchases and $52 million in dividends.

Financial highlights

• Q4 2025 operating net income was $110 million ($1.09 per diluted share); full-year operating net income was $205 million ($1.92 per diluted share).

• Net income for Q4 2025 was $117.8 million ($1.17 per diluted share); full-year net income was $225.5 million ($2.11 per diluted share).

• Net investment income and gains totaled $47 million in Q4, with a portfolio yield of 4.9%.

• Full-year combined ratio improved to 94.8% from 99.7% in 2024.

• Book value per diluted share at year-end 2025: $24.61 (2024: $21.79).

Outlook and guidance

• Expect mid-single digit top-line growth in 2026, with continued strong underwriting margins.

• Net earned premiums for Q1 2026 guided at $450–$500 million (insurance) and $50–$60 million (reinsurance).

• Investment portfolio expected to generate 4–4.5% return in 2026.

• Effective tax rate projected at 16% for 2026.

• Board approved an increase in share repurchase authorization to $400 million and declared a $0.15 per share dividend payable March 27, 2026.