Pelagos Insurance Capital, the Bermudian-based speciality re/insurer formerly known as Fidelis Insurance Holdings, returned to first-half underwriting profit as gross premiums increased and prior-year claims experience improved.

The company reported net income of $152.4 million for the six months ended June 30, compared with a net loss of $22.8 million in the same period last year.

Gross premiums written rose 6.6 per cent to $3.14 billion, while the combined ratio — a key measure of underwriting profitability — improved to 93.1 per cent from 110.1 per cent a year earlier. A ratio below 100 per cent indicates an underwriting profit.

Operating net income was $117.1 million, compared with an operating loss of $31.6 million in the prior-year period. Annualised operating return on average common equity was 10.1 per cent, compared with negative 2.6 per cent.

Dan Burrows, group chief executive, said: “Our first-half performance reflects the continued success of our capital allocator model and our underwriting discipline.

“Year-to-date, we grew gross premiums written by 6.6 per cent and book value per diluted common share by 9.1 per cent, and by 22.6 per cent over the last 12 months.”

The company’s insurance segment generated $197.5 million of underwriting income in the first half, up from $100.5 million a year earlier. Gross premiums written in the segment rose $180.3 million to $2.35 billion.

Pelagos said the growth was due to its expanded network of underwriting partners in several lines of business. Asset-backed finance and portfolio credit, as well as property, were contributors to second-quarter premium growth.

The company also said it did not renew a cyber contract that failed to meet its underwriting criteria and rating hurdles.

The insurance segment’s loss ratio improved to 51.4 per cent for the first half, from 59 per cent a year earlier. The result included favourable development on earlier claims, although this was partly offset by higher loss estimates linked to the Baltimore Bridge collapse in the marine book and prior-year property damage and facultative losses.

Pelagos recorded insurance losses from the Middle East conflict, the Ras Laffan gas plant explosion in Qatar and other property and marine events during the first half.

Its reinsurance segment reported underwriting income of $97.3 million, compared with an underwriting loss of $22.3 million in the prior-year period. The company said the segment had no material catastrophe or large losses in the first half, whereas the 2025 result was affected by California wildfire losses.

Pelagos returned $305.3 million to common shareholders during the first half, principally through $279.5 million of share repurchases. It also declared a quarterly dividend of 15 cents per share, payable on September 25.