Pelagos Insurance Capital (PLGO)
NYSE:PLGO
Want to see PLGO full AI Analyst Report?
Top Page
Pelagos Insurance Capital
(NYSE:PLGO)
Select Model
Select Model
Rating:71Outperform
Price Target:
$25.00
▲(19.22% Upside)
Action:Reiterated
Date:05/26/26
The score is driven by attractive valuation (very low P/E) and a positive earnings-call backdrop (strong underwriting results, ROAE, book value growth, and significant capital returns). Technicals are supportive with the stock trading above key moving averages. The main constraint is financial statement volatility—especially uneven cash flow—which increases risk despite acceptable leverage and profitability.
Positive Factors
Underwriting Profitability
Sustained underwriting discipline produced an 86.6% combined ratio and 15.2% operating ROAE, indicating durable core profitability. Strong loss control and pricing execution across cycles supports long-term earnings power and capital retention, reducing reliance on investment returns.
Negative Factors
Cash‑Flow Volatility
Material swings between strongly positive trailing cash flows and a deeply negative 2025 cash flow indicate timing, working‑capital or reserve-related volatility. Such unpredictability complicates multi‑quarter planning for buybacks, dividends and reinvestment and elevates financing risk during stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting Profitability
Sustained underwriting discipline produced an 86.6% combined ratio and 15.2% operating ROAE, indicating durable core profitability. Strong loss control and pricing execution across cycles supports long-term earnings power and capital retention, reducing reliance on investment returns.
Read all positive factors
Pelagos Insurance Capital (PLGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.86B
Dividend Yield2.55%
Average Volume (3M)588.24K
Price to Earnings (P/E)5.4
Beta (1Y)0.53
Revenue Growth-4.47%
EPS GrowthN/A
CountryUS
Employees108
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)3.77
Shares Outstanding85,496,760
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 Cap0.87
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit1.96
Enterprise Value/Ebitda3.39
Forecast
1Y Price Target
$23.20Price Target Upside10.63% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)3.59
Revenue Forecast (FY)$3.53B
Pelagos Insurance Capital Business Overview & Revenue Model
Company Description
Pelagos Insurance Capital Limited provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in two segments: Insurance and Reinsurance. The Insurance segment offers property, marine, asse...
How the Company Makes Money
FIHL primarily makes money through (1) underwriting income and (2) investment income. Underwriting income is generated by collecting premiums on insurance and reinsurance policies and retaining the portion that remains after paying claims, claim-a...
Pelagos Insurance Capital Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: strong underwriting performance (combined ratio 86.6%), robust profitability (15.2% ROAE), meaningful book value growth (+7.2% in the quarter) and disciplined capital returns (large buybacks and dividend). Growth was driven by new underwriting partners and product diversification, and management actively improved outwards reinsurance to manage volatility. Headwinds include competitive rate pressure in certain lines (notably retrocession and parts of property), specific adverse prior-year reserve activity (Baltimore Bridge), reduced PYD compared with the prior year, and selective pullbacks in challenged niches (aviation, certain cyber structures). Overall, the positive results, capital returns, margin profiles and controlled risk management outweigh the noted challenges.Positive Updates
Strong Underwriting Results and Profitability
Combined ratio of 86.6% in Q1 2026 (improvement of 29 percentage points vs Q1 2025), annualized operating ROAE of 15.2%, and operating net income of $88 million ($0.94 per diluted share).
Negative Updates
Competitive Pressure and Rate Compression in Certain Lines
Management noted increased competition in some lines and verticalized market dynamics; reported mid- to high-single digit or low-double digit rate reductions in parts of property and retrocession pricing pressure (management referenced ~20% moves in retrocession/ILW pricing), which could compress future underwriting margins if persistent.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Underwriting Results and Profitability
Combined ratio of 86.6% in Q1 2026 (improvement of 29 percentage points vs Q1 2025), annualized operating ROAE of 15.2%, and operating net income of $88 million ($0.94 per diluted share).
Read all positive updates
Company Guidance
Management guided that Q2 net earned premiums should show Insurance net earned premiums similar to Q1 and Reinsurance net earned premiums of $65–75 million, while reaffirming full‑year top‑line growth of mid‑single digits and comfort with a mid‑40s loss‑ratio expectation (ex‑PYD); they reiterated a $29 million G&A run‑rate through 2026 and an effective tax rate of about 16% excluding a one‑time Pillar Two benefit (reported Q1 rate was -4.8%). Capital guidance included $185 million remaining on the repurchase authorization after $219 million of buybacks in Q1 (11.5 million shares at an average $19; $600 million repurchased since IPO), a $0.15 quarterly dividend, redemption of $125 million junior subordinated notes (pro‑forma debt‑to‑capital 24.2%), and that the majority of outwards reinsurance for the year is secured; Q1 operating metrics to frame guidance were operating net income $88 million ($0.94/share), annualized operating ROAE 15.2%, combined ratio 86.6%, book value per diluted share $26.22 (+7.2% incl. dividends), gross premiums written $1.8 billion (+7%), and net investment income $44 million with 92% of the portfolio in cash/fixed maturities yielding ~4.4% (new‑money ~4.5%, avg rating A+, duration 2.7 years).Pelagos Insurance Capital Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.13B | 2.17B | 2.11B | 3.37B | 1.52B | 1.18B |
| Gross Profit | 829.20M | 421.10M | 266.10M | 2.17B | 301.60M | 480.60M |
| EBITDA | 479.20M | 304.10M | 156.20M | 2.08B | 119.50M | 118.60M |
| Net Income | 376.00M | 225.50M | 113.30M | 2.13B | 52.60M | 68.30M |
Balance Sheet | ||||||
| Total Assets | 10.71B | 12.44B | 11.77B | 10.03B | 8.31B | 5.32B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.45B | 1.31B | 1.32B | 3.54B | 476.00M |
| Total Debt | 843.50M | 843.20M | 507.30M | 506.60M | 534.40M | 536.70M |
| Total Liabilities | 8.45B | 10.04B | 9.32B | 7.58B | 6.33B | 3.31B |
| Stockholders Equity | 2.25B | 2.40B | 2.45B | 2.45B | 1.98B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 297.50M | -409.50M | 613.60M | 488.80M | 722.60M | 360.60M |
| Operating Cash Flow | 298.80M | -408.30M | 618.20M | 495.20M | 741.40M | 367.70M |
| Investing Cash Flow | 13.30M | 682.70M | -475.80M | -834.90M | 215.90M | -1.12B |
| Financing Cash Flow | -181.10M | 19.80M | -153.90M | -106.90M | -16.20M | -4.80M |
Pelagos Insurance Capital Technical Analysis
Positive
20.97
Price Trends
20.97
Positive
19.98
Positive
19.01
Positive
Market Momentum
0.15
Positive
51.88
Neutral
17.41
Positive
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 20.97 is below the 20-day moving average (MA) of 22.03, above the 50-day MA of 20.97, and above the 200-day MA of 19.01, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 17.41 is Positive, 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.10B | 9.29 | 17.87% | 4.00% | -4.12% | ― | |
76 Outperform | $31.86B | 6.73 | 20.48% | ― | 8.66% | 32.96% | |
72 Outperform | $9.29B | 9.11 | 16.72% | 6.98% | 13.12% | 33.46% | |
71 Outperform | $1.86B | 5.39 | 16.01% | 2.55% | -4.47% | ― | |
70 Outperform | $40.03B | 12.85 | 7.70% | 2.02% | -2.31% | 26.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $1.37B | 30.64 | -30.35% | ― | 17.56% | -3.08% |
* Financial Sector Average
PLGO
Pelagos Insurance Capital
21.81
5.08
30.33%
AIG
American International Group
75.49
-7.82
-9.38%
ACGL
Arch Capital Group
91.19
-1.16
-1.26%
ORI
Old Republic International
38.16
4.49
13.34%
IGIC
International General Insurance Holdings
25.61
4.01
18.59%
GSHD
GooseHead Insurance
38.35
-70.35
-64.72%
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.