Pelagos Insurance Capital "We remain positive - Increasing estimates and..."

Research evidence excerpt

Pelagos Insurance Capital "We remain positive - Increasing estimates and..."

Global Research

18 May 2026ab

Pelagos Insurance Capital Equities

United StatesWe remain positive - Increasing estimates and

price target Insurance, Property & Casualty

12-month rating Buy

12m price target US$28.00Updating estimates and price target

Prior : US$25.00

We updated our FY26 EPS estimate to $3.50 (from $3.14) and FY27 to $4.37 (from

$4.03). Additionally, our price target is increased to $28 representing 6.4x our FY27 EPS Price (18 May 2026) US$23.55

and 0.95x our NTM BVPS. We remain Buy rated on PLGO given the company’s RIC: PLGO.N BBG: PLGO US

inexpensive valuation, strong capital management, and attractive ROE and growth

profile, even as the broader pricing environment becomes more competitive. We expect Trading data and key metrics

Insurance segment NPW growth of 13% y/y in 2026 and 8% y/y in 2027, supported by a 52-wk range US$23.55-14.87

casualty E&S market where rates remain firm, albeit moderating, and by new Market cap. US$2.01b

partnerships that should continue to contribute to premium growth. Moreover, while Shares o/s 85.5m (COM)

E&S property and specialty pricing are softening, these businesses (x/ E&S property) are Free float 33%

less commoditized and less directly exposed to broad-market pricing pressure than Avg. daily volume ('000) 165

traditional commercial lines. We also remain constructive on capital return, particularly Avg. daily value (m) US$3.3

given the 10% discount PLGO's shares currently trade relative to book value. Common s/h equity (12/26E) US$2.29b

Management has signaled confidence in repurchasing shares at current valuations, P/BV (12/26E) 0.8x

including an incremental $14m of buybacks through May 8, with $185m remaining

under authorization.