Pelagos Insurance Capital Ltd (NYSE: PLGO)

Fidelis Insurance Holdings Limited is a global specialty insurer headquartered in Bermuda with offices in Ireland and the United Kingdom. The group provides specialty insurance and reinsurance solutions across a broad range of industries and geographies. It operates through a holding company structure and three principal operating subsidiaries: Fidelis Insurance Bermuda Limited Fidelis Underwriting Limited and Fidelis Insurance Ireland DAC. The company was formed to deliver focused process driven underwriting strong client and broker relationships and nimble capital deployment. Fidelis Insurance Holdings Limited began underwriting business in June 2015 and has since built a diversified platform that serves clients worldwide.

The company generates revenue primarily from gross premiums written on its insurance and reinsurance policies and from investment income on its invested assets. Premiums are collected from clients through brokers and reinsurance intermediaries who place risk with the group. The group also earns fees and commissions from certain specialty lines but the bulk of revenue comes from underwriting premiums. Investment income is derived from a high quality fixed maturity portfolio that includes government bonds corporate bonds and structured securities. This income supports underwriting activities and contributes to overall profitability.

The company operates through the following segments: Insurance and Reinsurance.

• The Insurance segment underwrites a diverse portfolio of specialty risks including property marine asset backed finance and portfolio credit energy cyber aviation and aerospace political risk violence and terror and other insurance lines. It offers tailored products that address regulatory capital relief capital efficiency and transaction facilitation needs of clients. The segment benefits from a broad suite of reinsurance protections such as quota share aggregate stop loss and excess of loss cover which help to reduce volatility and stabilize earnings.

• The Reinsurance segment focuses on an actively managed global property reinsurance portfolio that includes property catastrophe business and a smaller retro and whole account component. It provides reinsurance and limited retrocession coverage on both proportional and excess of loss bases. The segment operates with a significant concentration in North America and also includes exposures in Japan Europe and Australasia. It utilizes protections such as quota share aggregate stop loss excess of loss retrocessional cover catastrophe bond cover and industry loss warranties to minimize net losses.

Fidelis Insurance Holdings Limited holds a competitive position in the specialty insurance and reinsurance market where it faces competition from major United States United Kingdom Bermudian European and Lloyd’s insurers. The company differentiates itself through a disciplined underwriting approach strong capital reserves and a strategic capital allocator model that enables rapid deployment of capital to attractive opportunities. Its financial strength ratings of A from AM Best A minus from S&P and A3 from Moody’s reflect a solid ability to meet policyholder obligations. The group’s focus on risk selection client and broker relationships and innovative product development provides it with advantages over peers that rely on more traditional underwriting platforms. Additionally the ability to access the underwriting expertise of its affiliated third party manager TFP while maintaining a separate capital management function enhances its flexibility and returns potential.

The company’s customer base consists primarily of insurance and reinsurance brokers who place risk on behalf of cedants and insurers. Major brokers that contribute significantly to gross premiums written include Aon plc and Marsh & McLennan Companies Inc. In addition the group works with a variety of corporate clients public entities and specialty risk holders across industries such as energy marine aviation and technology. The reliance on broker intermediaries provides access to a global distribution network while maintaining strong relationships with key trading partners.