Pelagos Insurance Capital Limited

our CEO, Alan DeClaire, our CFO, and Johnny Strickle, our Group Managing Director. Before we begin, I'd like to remind everyone that statements made during the call, including the question and answer section, may include forward-looking statements. These statements are based upon management's current assessments and assumptions and are subject to a number of risks and uncertainties and emerging information developing over time. These risks and uncertainties are described in our second quarter earnings press release, our most recent annual report on 20F, and other reports filed with the SEC, which are available on our website at fidelisinsurance.com. Although we believe that the expectations reflected in forward-looking statements have a reasonable basis when made, we can give no assurance that these expectations will be achieved. Consequently, actual results may differ materially from those expressed or implied. For more information, including on the risks and other factors that may affect future performance, investors should review the safe harbor regarding forward-looking statements included in our second quarter earnings press release, available on our website, fidelisinsurance.com, as well as our other reports that are filed by us with the SEC from time to time. Management will also make reference to certain non-GAAP measures of financial performance. The reconciliation to US GAAP for each non-GAAP financial measure can be found in our current report on Form 6K, furnished to the SEC yesterday, which contains our earnings press release and is available on our website at fidelisinsurance.com. With that, I'll turn the call over to Dan.

Thanks, Miranda. Good morning, everyone. And thank you for joining us on our call today. I'd like to take a minute before discussing our quarterly results to reflect on the past two years since our IPO. I'm incredibly proud of our firm's achievements during this time. We have established ourselves as a market leader with a high quality scaled and diversified portfolio focused on short tail specialty risks. Our strategy, structure and lead positioning have provided us with the flexibility, discipline, and market access to deploy capital where we believe there are attractive risk-reward opportunities. And we have demonstrated our ability to balance the pursuit of profitable underwriting with capital returns to shareholders. In fact, since 2022, we have delivered gross written premium growth of 54% and increased our book value per diluted share by 39%. including common share dividends. This year also marks the 10-year anniversary of the launch of Fidelis. The Fidelis partnership remains our cornerstone partner, writing over 100 products across our 10 major lines of business. Since our inception, we have maintained a collaborative and innovative approach to underwriting and leveraged our longstanding relationships with brokers and clients to establish lead positioning and facilitate cross-sell opportunities. The Fidelis partnership has set a high bar for any additional partnerships, but we are actively expanding our platform as we continue to evolve our business with a focus on deploying capital to the right risks. This year, we have successfully onboarded new strategic partners with proven track records in highly accretive lines of business, and we continue to see an exciting pipeline. Our structure continues to work exactly as intended, providing access to the best underwriters in the industry and ensuring an enhanced level of rigor around risk selection. Turning to the quarter, I want to highlight three key takeaways, all of which will be important context for today's discussion. First, any remaining exposure to the Russia-Ukraine lesser policy litigation is insignificant. and we can now draw a line under this. Secondly, we continue to take advantage of profitable growth, supported by very attractive margins across the portfolio as a whole. And finally, our capital position remains strong, which gives us the flexibility to enhance shareholder returns, as demonstrated by the recent expansion of our capital management initiatives announced last week. With this in mind, through the first half of the year, we grew our gross written premiums to $2.9 billion, resulting in year-to-date growth of 9%, driven by high retention levels and new business opportunities across the portfolio, including business from third parties. The combined ratio for the quarter was 103.7%, reflecting the impact of the English High Court judgment on the aviation and aerospace line of business in relation to Russia-Ukraine lesser policy litigation, which was within the range of expected outcomes we disclosed last quarter. Our annualized operating ROAE was 2.3% for the quarter with net income of $20 million and operating net income of $14 million. Excluding the impacts of Russia-Ukraine lesser policy litigation, we have outperformed our through-the-cycle targets, achieving a combined ratio in the mid-70s for the quarter and significantly surpassing our ROAE targets. Additionally, we would have significantly outperformed our year-to-date targets on both a combined ratio and ROAE basis. With the line drawn under this, we are focused on capitalising on the opportunities ahead of us to drive accretive growth and returns. taking a closer look at performance across both of our segments. Our position as a market leader enables us to achieve favourable signings with preferential rates, terms and conditions, upholding a clear differential to market. Within our insurance segment, we delivered 7% premium growth in the quarter as we continue to deploy capacity into higher margin areas. supported by a strong flow of new business across the portfolio. Overall, our segment RPI was flat for the quarter as we maintained our disciplined approach and walked away from underpriced business. Our direct property book continued to deliver strong returns, benefiting from the compound rate increases we have achieved on a sustained basis. It's important to understand that property is a highly verticalised market This allows us to achieve significant pricing differentials compared to subscription market players. As a market leader, we are positioned to write private layers, leverage our line size and flexibility to deploy across programs and offer clients capacity on a cross-class basis. This has enabled us to achieve high retention levels and maintain our discipline on terms, conditions and rate movement, to achieve leadership terms and pricing. Overall RPIs are down slightly, but pricing adequacy of our portfolio remains at one of the highest levels we have seen in decades. Asset-backed finance and portfolio credit remained a core growth driver as we executed on a number of pipeline structured credit deals and continue to recognize revenue from our third-party relationships. These more bespoke insurance lines, where the buying motivation is often driven by capital relief or underlying transaction facilitation, are insulated from traditional insurance pricing cycles. And we continue to see a healthy pipeline with both new and repeat clients. We lead substantially all of this business, demonstrating the value we are able to bring clients on structuring value-adding products. We see aviation as the most challenged part of our portfolio, and we will not write business that does not meet our underwriting hurdles. As such, we have not renewed certain accounts originally forecast for the year. We continue to monitor developments in pricing and leverage our line across the subclasses. We are beginning to see signs of small pricing adjustments on select accounts in the all risk sector, given heightened loss activity and remain well positioned to take opportunity where we see margin and adequacy. As a reminder, we are not willing to compromise on our underwriting discipline and we will continue to deploy capital in more creative ways until we see signs of sustained market improvement. Turning to reinsurance, on the back of strong growth over the past few years, our premium in the quarter was broadly in line with prior year as we continue to focus on optimising the portfolio with core clients. We are seeing some movement in rating in certain parts of the portfolio due to increases in capacity levels, but the fundamentals of this portfolio remain, and we continue to deploy capacity effectively in line with our view of risk. Looking at 401 Japanese renewals, being nimble, we shifted capacity from the less compelling excessive loss deals towards proportional coverage. allowing us to benefit from the underlying rate improvements coming through. Rate adequacy largely held at 6-1, which was dominated by U.S. property, with a number of exceptions on programs where we maintained discipline and walked away. For the 6-1 renewal, our portfolio saw the largest growth in the nationwide, northeast and Hawaii segments, and a modest decline in Florida, which aligned with our strategy and risk appetite going into mid-year. We continue to see attractive opportunities to deploy capacity flexibly in line with our view of risk and continued year-to-date growth. Turning to Outwards Reinsurance, it serves as a core component of our portfolio management strategy. This approach allows us to leverage the market on both the inward and outward sides of our book to optimize margins. Our strategy is always focused on using reinsurance to reduce volatility, minimise potential net losses, enhance margins, and secure leading positions across lines. We do this through both traditional reinsurance markets and capital markets instruments, and we constantly review our programme to optimise protection and manage exposures. Dynamics within the outwards market continue to provide attractive opportunities, and we were able to capitalise on these dynamics sponsor the Herbie 7 cat bond taking advantage of strong investor appetites to purchase 90 million dollars of limit on an aggregate multi-parallel and region basis. This replaces the expired Herbie 3 bond which responded as intended to various cat events across the past 12 months. In a traditional market we successfully renewed cat protections on the DNF book at 4-1 taking advantage of attractive pricing, attachments levels, and capacity. As a reminder, we are an active buyer of a broad suite of products, including Index, and across our whole Outwards program, we achieved a significant improvement in RPIs year to date. Turning to capital management, as I mentioned last week, we announced a meaningful expansion of our capital management initiatives, renewing our common share repurchase authorization to $200 million, and raising our quarterly dividends to 15 cents. As we have said before, we do not believe our current stock price properly reflects the value of our platform. This current dislocation provides an excellent opportunity to deliver value to our shareholders in a highly accretive way. Our strong capital position gives us the flexibility to enhance returns while continuing to pursue attractive underwriting opportunities. And with that, I will pass over to Alan who will provide more color on our second quarter financial results.

Thanks, Dan, and good morning, everyone. Taking a closer look at our quarterly results, our net income was $20 million, or 18 cents per diluted common share. We had operating income of $14 million, or 12 cents per diluted common share. This resulted in an annualized operating return on average equity of 2.3%. We continued to grow our book value per diluted common share, which now stands at $22.04. In the second quarter, we grew our gross premiums written by 2% to $1.2 billion, bringing our year-to-date gross premiums written to $2.9 billion, an increase of 9% versus the same period last year. In the insurance segment, gross premiums written increased by 7% in the quarter, to $902 million. This growth was driven by increases in our asset-backed finance and portfolio credit and political risk, violence, and terror lines of business. Meanwhile, in the reinsurance segment, gross premiums written were $317 million for the quarter compared to $346 million in the prior year period. For the first half of 2025, Gross premiums written increased 7% in insurance and 15% in reinsurance as we continued to capitalize on attractive growth opportunities while maintaining a disciplined approach to underwriting opportunities that did not meet our thresholds. Our net premiums written increased by 4% versus the second quarter of 2024, and our net premiums earned increased by 7% for the same period driven by the growth in net premiums written in the current and prior year periods. Turning to the combined ratio of 103.7% for the quarter. I'll break down the components in more detail. During the second quarter, our attritional loss ratio continued to trend positively, improving to 24.7%, and for the first half of the year, 23.7%. This compares to 25.9% in the first half of 2024, reflecting the strength of our underlying portfolio. Our catastrophe and large loss ratio was 13.8%, or $74 million of losses, reflecting a lighter catastrophe and large loss quarter compared to the same period last year, when our catastrophe and large loss ratio was 36.2%, or $181 million. Catastrophe and large losses in the quarter included an Air India loss of $26 million in our aviation and aerospace line of business. We recognize net adverse prior year development of $89 million in the second quarter. This compares to net favorable prior year development of $69 million in the same period last year. The insurance segment experienced net adverse development of $113 million in the quarter. As discussed, is primarily reached to the judgment handed down by the English High Court regarding the Russia-Ukraine aviation litigation. Excluding the judgment, we are pleased with the strong performance of the underlying insurance portfolio as we recognize favorable reserve development across the book, including better than expected loss emergence in our property line of business. We continue to have net favorable development in the reinsurance segment, which was $24 million in a quarter. driven by positive development of prior year catastrophe losses and benign prior year attritional experience. Turning to expenses, policy acquisition expenses from third parties were 31.4 points of the combined ratio for the second quarter, compared with 28.4 points in the prior year period. While we may see movements quarter to quarter, policy acquisition expenses are in line with expectations And we continue to anticipate our annual policy acquisition expense ratio to be in the low thirties and in the mid twenties and insurance and reinsurance segments respectively. In line with our half year results of 30.6% in insurance and 23.4% in reinsurance. The Fidelis partnerships commissions accounted for 13.1 points of the combined ratio for the quarter compared to 15.0 points in the second quarter of 2024. There was no profit commission accrued in the quarter as the underwriting profits did not meet the required hurdle. Finally, our general and administrative expenses were $22 million versus $24 million in the second quarter of 2024. The decrease in expense was driven by lower variable compensation accrued in the quarter. Moving on to our investment results, our net investment income for the quarter was $45 million compared to $46 million in the prior year period. In addition to our net investment income, we had net unrealized gains on other investments of $5 million as a result of our strategic deployment of assets into a diversified hedge fund portfolio at the end of 2024. This portfolio now represents approximately 5% of our total investable assets and is part of our ongoing strategy to generate superior risk-adjusted diversified investment returns and enhance shareholder value. As of June 30, the average rating of our fixed income securities remains very high at A+, with a book yield of 5.0%, reflecting the steps we have already taken to optimize our portfolio. Average duration remains consistent with year-end at 2.8 years. Turning to tax, our effective tax rate for the first half of the year was 18.9% compared to 14.6% in the first half of 2024. This rate reflects a greater proportion of pre-tax income generated in higher tax rate jurisdictions. In the full year, we expect our effective tax rate to remain in the 19% range given the expected mix of profits and losses across the three countries. Looking at our capital management strategy. During the quarter, we executed a number of key actions, and we recently announced a significant expansion of our capital management initiatives. We continue to return capital to shareholders through a combination of dividends and share buybacks. In the second quarter, we repurchased 5.5 million common shares for $88.7 million at an average price of $16.17 per common share. This includes 3.1 million common shares that were repurchased through a privately negotiated transaction with CVC, who remains one of our longstanding shareholders, having owned our shares since our founding. This brings our shares repurchased year to date to 6.9 million common shares at an average price of $16.01. That's approximately 73% of our current diluted book value per share, thus highly accretive on both the book value and earnings per share basis to our shareholders since the commencement of our share repurchase program in 2024 our strategic approach to share repurchases has provided 79 million dollars to shareholders or 73 cents to our book value per share additionally last week we announced that our board approved a renewal of our repurchase authorization given the strength of our balance sheet brings our total current authorization to 200 million dollars the board also approved an increase to our quarterly common dividend to 15 cents per share bringing our dividend yield to 3.6 percent also on the capital management front we successfully completed a 400 million dollar issuance of fixed rate 30-year subordinated notes during the quarter The offering was met with robust demand from a broad base of high-quality institutional investors, which we view as a clear vote of confidence in our balance sheet, our underwriting strategy, and long-term growth outlook. Our debt to total capital ratio stands at 26.6%, which reflects the raising of the subordinated notes and the redemption of our remaining preference securities. Our capital position provides increased flexibility as we look ahead, including as we approach the interest rate reset for our junior subordinated notes in April 2026. Another important part of our capital management strategy is outwards reinsurance, and we are constantly optimizing our purchasing program. As Dan noted, we sponsored a new cap bond under a Herbie reprogram during the quarter. which resulted in a slight increase in our seeded premium written. For the full year, we continue to estimate that a 40% session rate across our entire portfolio is the right way to think about it. Within the insurance segment, this rate would be closer to the mid-30s, while in the reinsurance segment, it would be closer to the 50s. To give some further context around our key natural peril exposure, our 1 in 100 windstorm clash for Southeast Gulf and Caribbean, and our 1 in 250 California earthquake PML are both less than 10% of shareholders' equity, excluding AOCI. In conclusion, we remain confident in our business and the strength of our portfolio. We are well capitalized and committed to deploying capital to accretive opportunities that maximize shareholder value. I will now turn it back to Dan for additional remarks.