Pelagos Insurance Capital Limited, formerly known as Fidelis Insurance Holdings Limited, recorded a group-wide underwriting income gain of $76.2 million for the first quarter of 2026, compared to a loss of $94.5 million in Q1’25, driven by a solid performance in both its insurance and reinsurance segments.
In Q1’26, group-wide gross premiums written (GPW) rose by 6.8% to $1.8 billion compared to $1.7 billion in Q1’25, while net premiums written (NPW) rose to $1.18 billion in Q1’26 from $1.03 billion in Q1’25. Meanwhile, net premiums earned (NPE) dipped to $568.5 million from $603 million in Q1’25.
Pelagos’ Q1’26 combined ratio improved by 29 points to 86.6% in Q1’26, compared to 115.6% in the first quarter of 2025. Catastrophe and large losses for the current quarter were $72.3 million, down from $333.3 million in the prior year.
Net income for the quarter rose to $108 million, compared to a loss of $42.5 million in Q1’25, while operating net income was $88.4 million, compared to a loss of $45.3 million a year earlier.
The firm’s reinsurance segment delivered an underwriting income gain of $44.3 million in Q1’26, compared to a loss of $76.4 million in Q1’25. However, GPW dipped for the quarter to $404.3 million, primarily due to reinstatement premiums in the prior year period related to the California wildfires, compared to $455.9 million in Q1’25.
NPW also came down to $176.3 million, due to the acceleration of earnings on contracts with exposure to the California wildfires in the prior year period, compared to $217.5 million in Q1’25. NPE dipped to $53.6 million in Q1’26, compared to $91.1 million in Q1’25.
The segment’s policy acquisition expense ratio for Q1’26 increased primarily due to changes in ceded premium and commissions earned from outwards reinsurance partners, explained the firm.
There was a rise in the attritional loss ratio of 10.2 points compared to Q1’25. Despite similar losses in each period, the prior year period had a higher NPE due to the reinstatement premiums as mentioned above, reducing the prior period loss ratio.
Pelagos explained that there were no material catastrophe and large losses for this quarter ($0.5 million), compared to Q1’25’s $167 million, which saw the California wildfires. Favourable prior year development in Q1’26 was driven by positive development on catastrophe losses and benign prior year attritional experience.
In the insurance segment, the carrier recorded Q1’26 underwriting income of $147.9 million, compared to $82.3 million in Q1’25. GPW rose to $1.4 billion from $1.3 billion in Q1’25, as NPW for the quarter hit $1 billion, up on the prior year’s $808.9 million, and NPE stayed relatively stable at $514.9 million in Q1’26.
Catastrophe and large losses for Q1’26 of $71.8 million were primarily attributed to loss events in various lines of business, including Other Insurance, Marine, Property and Political Risk, Violence & Terror. This compares to Q1’25 catastrophe and large losses of $166.3 million, which were driven by California wildfires in the property line of business.
In Q1’26, the segment’s loss ratio improved by 10.8 points compared to Q1’25, while attritional loss ratio increased by 3.4 points due to a higher level of small losses in the current year period.
Additionally, adverse prior year development in Q1’26 was primarily driven by increased loss estimates related to the Baltimore Bridge collapse within the marine line of business and increases in prior year property D&F losses.
For this quarter, The Fidelis Partnership recorded commissions of $86.8 million, compared to $78.4 million in Q1’25.
On the asset side, the re/insurer has reported Q1’26 net investment income of $43.7 million, driven by lower investable assets and yields, compared to $49.5 million in Q1’25.
Dan Burrows, Group Chief Executive Officer, Pelagos Insurance Capital, commented, “As our first quarter results demonstrate, our unique capital allocator model and expanding network of underwriting partners are driving profitable growth. We reported an increase in gross premiums written of 6.8%, a combined ratio of 86.6%, and an annualised operating ROAE of 15.2%.
“We remain focused on balancing profitable underwriting with meaningful capital returns. During the quarter, we returned $219 million through continued share repurchases. We also grew book value per diluted share, including dividends, by more than 7%, representing our strongest ever quarter of book value growth. At a time when market access and risk selection matter more than ever, we are well-positioned to continue delivering significant value to shareholders.”
