Pelagos Insurance Capital, formerly Fidelis Insurance Group, made a strong start to 2026, reporting improved profitability in the first quarter, helped by lower catastrophe losses.

Net income totalled $108 million, or $1.15 per diluted common share, compared to a loss of $42.5 million in the corresponding period last year.

Operating net income reached $88.4 million, or $0.94 per diluted common share. The operating earnings exceeded analyst expectations of $0.74 per share, according to FactSet.

The company generated gross premiums written of $1.8 billion during the quarter, representing a 6.8 per cent increase compared to the first quarter of 2025, reflecting continued expansion across its underwriting platform and partner network.

Catastrophe losses were $72.3 million in the first quarter of 2026, down from $333.3 million in the prior-year period. Underwriting performance improved as Pelagos reported a combined ratio of 86.6 per cent compared to 115.6 per cent in the first quarter of 2025.

Annualised operating return on average common equity rose to 15.2 per cent.

Pelagos returned $232.7 million to common shareholders through dividends and share repurchases. The company repurchased $219.4 million of common stock, including a privately negotiated transaction to buy back the remaining shares held by former private equity sponsor CVC Falcon Holdings Limited. Dividends accounted for an additional $13.3 million in capital returns.

Book value per diluted common share increased 7.2 per cent to $26.22 as of March 31, 2026, marking the company’s strongest quarterly book value growth to date.

Dan Burrows, Pelagos’s chief executive officer said the group’s “capital allocator model” and expanding underwriting partnerships continue to drive profitable growth.

• This story was generated by machine and edited by The Royal Gazette newsroom