First Take: 1Q26 Beat Driven by CATs and Expenses

Pelagos Insurance Capital (PLGO) delivered a strong 1Q26 earnings beat with operating EPS of $0.94, driven by high NPW growth and favorable underwriting ratios. Despite the beat, Goldman Sachs maintains a SELL rating with an $18 price target.

Key Takeaways

• 1.PLGO reported 1Q26 operating EPS of $0.94, significantly beating Goldman Sachs and Consensus estimates.
• 2.Net Premiums Written (NPW) growth was exceptionally strong at 15%, compared to estimates of ~1.5%.
• 3.The performance was driven by an underwriting beat, specifically lower CAT ratios and acquisition costs.

Table of Contents

• Key Data
• GS Forecast
• GS Factor Profile
• Ratios & Valuation
• Price Performance
• Income Statement ($ mn)
• Balance Sheet ($ mn)
• Insurance
• Reinsurance
• Net Investment Income
• Exhibit 1: PLGO Quicktake
• Exhibit 2: Valuation & Key Risks
• Disclosure Appendix

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial