| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 6.0x | 17.4x | Top tier | |
Growth | 83 | -3.6% | 7.1% | Top tier | |
Quality | 90 | — | — | Top tier | |
Safety | 23 | — | — | Bottom tier | |
Capital Return | 97 | 2.52% | 0.18% | Top tier | |
Momentum | — | — | 1.3% | N/A | |
Sentiment | 73 | 5 | 3 | Top tier |
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Pelagos Insurance Capital operates as a specialty insurer, reinsurer, and capital allocator, underwriting more than 100 product lines through a network of underwriting partners. Its direct insurance and reinsurance businesses span property, marine, political risk and political violence, asset finance and portfolio credit, and aviation, with capital directed toward opportunities that meet risk-adjusted return thresholds. In fiscal Q2 2026, net earned premiums were $515 million in the insurance segment and $66 million in the reinsurance segment, representing approximately 89% and 11%, respectively, of their combined total of $581 million.
In fiscal Q2 2026, Pelagos reported EDGAR financial statement revenue of $650.0 million, net income of $44.4 million, and earnings per share of $0.52. On management's operating measure, operating net income was $29 million, or $0.34 per diluted share, while annualized operating return on average equity was 5.1%. The data did not include a gross margin, but the operating combined ratio rose to 99.5% due to catastrophe and large-event losses of $162 million, or 27.8 points of the combined ratio.
For the first half of fiscal 2026, gross written premiums grew 6.6%, operating net income reached $117 million, and diluted operating earnings per share were $1.31, with an annualized operating return on average equity of 10.1% and a combined ratio of 93.1%. Diluted book value per share rose to $26.56, representing growth of 23% over the twelve months ended fiscal Q2 2026 after accounting for cumulative dividends. Meanwhile, trailing-twelve-month 2026 data show revenue of $2.5 billion, net income of $400.7 million, and earnings per share of approximately $4.71.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is "Buy," with an average price target of $24.63 and a relatively wide range of $22.50 to $29; the average is below the 52-week high of $26.34, while the highest target exceeds that level. The 52-week range is $16.96 to $26.34, and no reliable price-to-earnings ratio is available in the data, so the valuation case rests on 23% growth in diluted book value to $26.56, weighed against large-loss risks and softening insurance pricing.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Gross written premiums grew 6.4% to $1.3 billion in fiscal Q2 2026, with growth reaching 6.6% in the first half. The drivers were property, marine, asset finance and portfolio credit, along with selective expansion in reinsurance. The Bamboo Insurance relationship contributed to property growth, while new underwriting partners provided additional distribution channels in asset finance and portfolio credit.
EDGAR net income was approximately $44.4 million and earnings per share were $0.52 in fiscal Q2 2026, compared with $108.0 million and $1.15 in fiscal Q1. The quarter was affected by $162 million in catastrophe and large-event losses, including $60 million from the Middle East and $34 million from the explosion at the Ras Laffan facility. As a result, the combined ratio was 99.5%, despite recording $33 million of net favorable prior-year reserve development.
Management expects mid-single-digit annual growth in gross written premiums in fiscal 2026. In fiscal Q3 2026, it expects insurance net earned premiums to be similar to the fiscal Q2 level of $515 million and reinsurance net earned premiums of between $130 million and $160 million. It also maintained its targets for operating return on average equity of between 13% and 15% and a combined ratio in the mid-to-high 80s.
Pelagos uses external reinsurance to reduce net volatility while retaining meaningful gross positions, and it added a comprehensive quota-share arrangement effective July 1, 2026. On that date, the probable California earthquake loss at a 1-in-250-year return period remained in the mid-single digits as a percentage of shareholders' equity. Aggregate exposure in the Southeastern United States, Gulf, and Caribbean at a 1-in-100-year return period also remained below 10% of shareholders' equity.
Asset finance represented approximately 12% of the portfolio according to the question raised on the August 13, 2026 call and was one of the main sources of growth in fiscal 2026. In fiscal Q2, Pelagos expanded its relationship with an existing specialist to access a broader portfolio of transactions, while the new partner targets customers and a geographic scope different from The Fidelis Partnership. Management believes this line, which has grown steadily over four or five years, can continue growing at the same rate while providing diversification from more cyclical property lines.
Pelagos repurchased 2.8 million shares for $60 million in fiscal Q2 2026 at an average of $21.60 per share. Purchases reached $280 million in the first half, including $216 million through privately negotiated transactions, and added $0.90 to diluted book value per share. Since the program was launched in 2024, repurchases have added $2.14 per share, and diluted book value reached $26.56 at quarter-end.
