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Pelagos Insurance Capital
(NYSE:PLGO)
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Rating:69Neutral
Price Target:
$26.00
▲(6.17% Upside)
Action:Downgraded
Date:08/17/26
PLGO scores highest on valuation (low P/E with a dividend) and shows improved current profitability with manageable leverage, supporting a solid fundamental base. The score is held back by year-to-year volatility in revenue/cash conversion and by underwriting variability highlighted on the earnings call (large-loss-driven Q2 combined ratio near 100% and ROAE below target). Technically, near-term momentum is weak, further tempering the overall rating.
Positive Factors
Partner-led premium growth
The underwriting-partner model provides access to more than 100 product lines and a recurring growth pipeline. Continued partner expansion can support mid-single-digit premium growth while diversifying Pelagos’s specialty risk exposure.
Negative Factors
Underwriting loss volatility
Large-loss frequency can materially weaken quarterly underwriting profitability and keep ROAE below target, even when attritional performance is sound. Repeated volatility would make earnings and capital generation less predictable over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Partner-led premium growth
The underwriting-partner model provides access to more than 100 product lines and a recurring growth pipeline. Continued partner expansion can support mid-single-digit premium growth while diversifying Pelagos’s specialty risk exposure.
Read all positive factors
Pelagos Insurance Capital (PLGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend Yield2.46%
Average Volume (3M)588.24K
Price to Earnings (P/E)5.9
Beta (1Y)0.43
Revenue Growth-4.46%
EPS GrowthN/A
CountryUS
Employees108
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)4.11
Shares Outstanding82,728,330
10 Day Avg. Volume673,397
30 Day Avg. Volume588,238
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.89
Price to Sales (P/S)0.98
P/FCF Ratio-5.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$25.64Price Target Upside4.71% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)3.03
Revenue Forecast (FY)$3.51B
Pelagos Insurance Capital Business Overview & Revenue Model
Company Description
Pelagos Insurance Capital Limited (PLGO) specializes in providing insurance and reinsurance services across strategic markets including Bermuda, the Republic of Ireland, and the United Kingdom. The company's operations are distinctly segmented int...
Pelagos Insurance Capital Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call emphasized solid strategic execution: mid-single-digit premium growth, a 23% year-over-year increase in book value per share, strong capital returns, a robust underwriting-partner pipeline, and conservative investment positioning. These positives are tempered by meaningful Q2 volatility from large losses (approximately $162 million), a Q2 combined ratio of 99.5% and a quarterly ROAE below targets. Management characterized the loss activity as transitory and reiterated through-the-cycle targets and capital discipline.Positive Updates
Top-Line Growth in Gross Premiums Written
Gross premiums written grew ~6% year-over-year to $1.3 billion in Q2 2026 (6.4% in the quarter, 6.6% year-to-date), driven by new underwriting partners and targeted deployment across Property, Marine and Asset Backed Financing & Portfolio Credit.
Negative Updates
Elevated Q2 Combined Ratio and Large Loss Activity
Q2 combined ratio rose to 99.5% due to an unusually high number of large loss events. Catastrophe and large losses totaled 27.8 points of the combined ratio (approximately $162 million), including $60 million related to the Middle East and $34 million from the Ras Laffan gas plant explosion in Qatar.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Growth in Gross Premiums Written
Gross premiums written grew ~6% year-over-year to $1.3 billion in Q2 2026 (6.4% in the quarter, 6.6% year-to-date), driven by new underwriting partners and targeted deployment across Property, Marine and Asset Backed Financing & Portfolio Credit.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance that Q3 Insurance net earned premiums should be similar to Q2 while Reinsurance net earned premiums are expected to be $130–$160 million, with an overall loss ratio targeted in the mid‑40% range (Insurance ~2/3 attritional / 1/3 catastrophe & large losses; Reinsurance roughly 50/50) and through‑the‑cycle combined‑ratio and ROAE targets of mid‑ to‑high‑80s and 13–15% (12‑month combined ratio 86.4%). For context, Q2 results included a 99.5% combined ratio (H1 93.1%), operating net income of $29 million ($0.34 per diluted share) and annualized operating ROAE of 5.1% (H1 operating net income $117 million, $1.31/share, annualized ROAE 10.1%); gross premiums written were $1.3 billion (+6% YoY) with net premiums earned of $515 million (Insurance) and $66 million (Reinsurance). Q2 catastrophe and large losses were 27.8 points (≈$162 million; largest events $60M Middle East, $34M Ras Laffan), attritional loss ratio was 28.2 points (4‑quarter insurance attritional avg 30.4%), policy acquisition expense ~32 points of combined ratio (Fidelis commissions 12.1 pts Q2, 13.7 pts YTD), G&A $29M, net investment income $44M, other investment income $26M (excluded from operating income), portfolio 91% cash/fixed maturities at a 4.5% average yield (A+ avg rating, 2.9yr duration, new‑money 4.7%), effective tax rate 16%, share repurchases $60M in Q2 (2.8M shares at $21.60 avg), $73M total capital returned in Q2 and $280M repurchased in H1 (contributing $0.90 to diluted book value), book value per diluted share $26.56 (+23% YoY), and PMLs positioned with a 1‑in‑250 CA quake in the mid‑single digits and 1‑in‑100 SE/Gulf/Caribbean exposure below 10% of shareholders’ equity.Pelagos Insurance Capital Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16B | 2.17B | 2.11B | 3.37B | 1.52B | 1.18B |
| Gross Profit | 1.11B | 421.10M | 266.10M | 2.17B | 301.60M | 480.60M |
| EBITDA | 511.10M | 304.10M | 156.20M | 2.08B | 119.50M | 118.60M |
| Net Income | 400.70M | 225.50M | 113.30M | 2.13B | 52.60M | 68.30M |
Balance Sheet | ||||||
| Total Assets | 10.76B | 12.44B | 11.77B | 10.03B | 8.31B | 5.32B |
| Cash, Cash Equivalents and Short-Term Investments | 517.10M | 1.45B | 1.31B | 1.32B | 3.54B | 476.00M |
| Total Debt | 720.50M | 843.20M | 507.30M | 506.60M | 534.40M | 536.70M |
| Total Liabilities | 8.54B | 10.04B | 9.32B | 7.58B | 6.33B | 3.31B |
| Stockholders Equity | 2.22B | 2.40B | 2.45B | 2.45B | 1.98B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 630.10M | -409.50M | 613.60M | 488.80M | 722.60M | 360.60M |
| Operating Cash Flow | 631.50M | -408.30M | 618.20M | 495.20M | 741.40M | 367.70M |
| Investing Cash Flow | -599.90M | 682.70M | -475.80M | -834.90M | 215.90M | -1.12B |
| Financing Cash Flow | -612.80M | 19.80M | -153.90M | -106.90M | -16.20M | -4.80M |
Pelagos Insurance Capital Technical Analysis
Positive
24.49
Price Trends
24.64
Negative
23.02
Positive
20.90
Positive
Market Momentum
-0.17
Negative
50.90
Neutral
90.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLGO, the sentiment is Positive. The current price of 24.49 is above the 20-day moving average (MA) of 24.36, below the 50-day MA of 24.64, and above the 200-day MA of 20.90, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 90.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLGO.
Pelagos Insurance Capital Risk Analysis
Pelagos Insurance Capital disclosed 86 risk factors in its most recent earnings report. Pelagos Insurance Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pelagos Insurance Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $34.37B | 7.62 | 19.52% | ― | -0.21% | 31.57% | |
81 Outperform | $1.13B | 10.74 | 15.95% | 4.78% | -1.66% | ― | |
74 Outperform | $10.25B | 9.03 | 18.74% | 8.77% | 12.13% | 29.71% | |
69 Neutral | $2.03B | 5.94 | 17.25% | 2.55% | -4.46% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $2.53B | 49.27 | -32.52% | ― | 17.74% | 18.77% | |
65 Neutral | $40.25B | 13.91 | 7.27% | 2.34% | -4.19% | 1.09% |
* Financial Sector Average
PLGO
Pelagos Insurance Capital
24.43
7.67
45.76%
AIG
American International Group
76.63
-3.07
-3.85%
ACGL
Arch Capital Group
98.76
7.56
8.29%
ORI
Old Republic International
42.24
5.78
15.86%
IGIC
International General Insurance Holdings
26.74
4.16
18.40%
GSHD
GooseHead Insurance
70.45
-15.99
-18.50%
Pelagos Insurance Capital Corporate Events
Pelagos Insurance Capital Lifts Profitability and Capital Returns in Second Quarter 2026
Aug 12, 2026
Pelagos Insurance Capital reported second-quarter and half-year 2026 results on August 12, highlighting steady premium growth and stronger profitability metrics. Gross premiums written rose 6.4% year-on-year in the quarter to $1.3 billion and 6.6%...
Pelagos Insurance Capital Announces Board Director Resignation Linked to Fidelis Partnership
Aug 3, 2026
Pelagos Insurance Capital Limited reported a boardroom change following the July 9, 2026 announcement by director Charles Mathias of his intention to resign. His resignation from the Board, Risk Committee and Investment Committee became effective ...
Pelagos Insurance Capital Declares $0.15 Quarterly Dividend After Rebrand
Aug 3, 2026
Pelagos Insurance Capital Limited, a Bermuda-based specialist in insurance and reinsurance capital allocation, operates through a diversified portfolio and a network of underwriting partners to target compelling opportunities in specialty risk. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.