Pelagos Insurance Capital Limited (formerly Fidelis Insurance Holdings Limited) reported group-wide underwriting revenue growth of $76.2 million in the first quarter of 2026, compared with a loss of $94.5 million in the first quarter of 2025, driven by solid performance in the insurance and reinsurance segment.
Group gross written premiums (GPW) increased 6.8% to US$1.8 billion in Q1’26 compared to US$1.7 billion in Q1’25, while net written premiums (NPW) increased from US$1.03 billion in Q1’25 to US$1.18 billion in Q1’26. Meanwhile, net premiums earned (NPE) fell to $568.5 million from $603 million in 1Q25.
Pelagos’ first-quarter 2026 combined ratio improved 29 percentage points to 86.6%, compared with 115.6% in the first quarter of 2025. Catastrophe and material losses for the quarter were $72.3 million, down from $333.3 million in the prior year.
Net profit for the quarter increased to US$108 million, compared with a loss of US$42.5 million in the first quarter of 2025; operating net profit was US$88.4 million, compared with a loss of US$45.3 million in the same period last year.
The company’s reinsurance division achieved an underwriting revenue gain of $44.3 million in 1Q26 compared with a loss of $76.4 million in 1Q25. However, total workweeks for the quarter fell to $404.3 million, primarily due to recovery premiums related to the California wildfires during the prior year period, compared with $455.9 million in the first quarter of 2025.
NPW also declined to $176.3 million due to accelerated revenue from contracts impacted by the California wildfires during the prior year period compared to $217.5 million in 1Q25. NPE declined to $53.6 million in Q1’26 compared to $91.1 million in Q1’25.
The company explained that the segment’s policy acquisition expense ratio increased in 1Q26 primarily due to changes in ceded premiums and commissions earned from outbound reinsurance partners.
Compared to Q1’25, the attrition rate increased by 10.2 percentage points. Although the losses were similar in each period, the NPE during the previous year period was higher due to the restoration premium mentioned above, thus reducing the loss rate in the previous period.
Pelagos explained that there were no major catastrophes and large losses ($500,000) during the quarter, compared with $167 million in California wildfire losses in Q1’25. The positive year-over-year development in 1Q26 was driven by positive development in catastrophe losses and good prior-year attrition experience.
In insurance, the carrier recorded underwriting revenue of $147.9 million in Q1’26 compared to $82.3 million in Q1’25. GPW increased to $1.4 billion from $1.3 billion in Q1’25 as NPW hit $1 billion in the quarter, up from $808.9 million the previous year, while NPE remained relatively stable at $514.9 million in Q1’26.
Catastrophe and major losses in the first quarter of 2026 amounted to US$71.8 million, mainly attributable to loss events in various business areas, including other insurance, marine, property and political risk, violence and terror. In comparison, 1Q25 disasters and massive losses of $166.3 million were caused by wildfires in California real estate operations.
In the first quarter of 2026, the segment’s loss rate improved by 10.8 percentage points from the first quarter of 2025, while the natural loss rate increased by 3.4 percentage points due to the higher level of small losses this year.
Additionally, unfavorable prior-year developments in Q1 2026 were primarily due to increased loss estimates related to the collapse of the Baltimore Bridge within the Marine segment and increased prior-year property D&F losses.
For the quarter, Fidelis Partnership commissions were $86.8 million, compared to $78.4 million in Q1’25.
On the asset side, the reinsurer reported net investment income of $43.7 million in Q1’26 compared to $49.5 million in Q1’25 due to lower investable assets and yields.
Dan Burrows, Group CEO of Pelagos Insurance Capital, commented: “As our first quarter results demonstrate, our unique capital allocation model and expanding network of underwriting partners are driving profitable growth. Our gross premiums grew 6.8%, combined ratio was 86.6%, and annualized operating ROAE was 15.2%.
“We remain committed to balancing profitable underwriting with meaningful returns of capital. During the quarter, we returned $219 million through continued share repurchases. Our diluted book value per share, including dividends, also grew by more than 7%, our strongest quarterly book value growth ever. We are well-positioned to continue to deliver tremendous value to shareholders at a time when market access and risk selection are more important than ever.”
