Financial Data and Key Metrics Changes - The company reported a combined ratio of 80.6%, representing a 47-point improvement year-over-year [5][17] - Operating net income for the fourth quarter was $110 million, or $1.09 per diluted common share, with an annualized operating return on average equity of 18.3% [17] - Gross premiums written increased by 7% for the full year, totaling $4.7 billion [10][18] - Book value per diluted common share grew to $24.61, marking a 15.2% increase for the year [17] Business Line Data and Key Metrics Changes - The insurance segment saw a 6% growth in gross premiums written in 2025, driven by new underwriting partnerships [11][18] - The reinsurance segment delivered an 11% premium growth for the year [15] - Asset-backed finance and portfolio credit now comprise over 11% of total premium, characterized by longer earning patterns [12] Market Data and Key Metrics Changes - The company maintained a diversified portfolio, with approximately 80% in specialty insurance and 20% in reinsurance [11] - The company experienced a 50% year-over-year decline in gross written premiums in the aviation sector due to strategic decisions to walk away from non-compliant risks [15][19] Company Strategy and Development Direction - The company is focused on being a best-in-class capital allocator, emphasizing disciplined underwriting, effective use of outward reinsurance, and returning capital to shareholders [7][9] - The new brand identity, Pelagos Insurance Capital, reflects the company's positioning as a capital allocator working with top-tier underwriting partners [6][46] - The company aims to achieve top-line growth of mid-single digits in 2026 while maintaining strong performance through the cycle [45] Management's Comments on Operating Environment and Future Outlook - Management noted a moderation in pricing in some areas but does not view it as a return to a soft cycle, emphasizing strong margins and adequacy across the portfolio [42][43] - The company is confident in its ability to identify attractive areas for capital allocation and to partner with the best positioned entities in the market [44] Other Important Information - The company repurchased 15.2 million common shares in 2025, contributing $0.90 to book value per share [8][27] - The effective tax rate for 2025 was 18.2%, with an anticipated rate of approximately 16% for 2026 [26] Q&A Session Summary Question: How should we think about the new partnerships going forward? - The company considers a mix of lines of business, geographies, and bespoke products when evaluating new partnerships, focusing on quality and risk-reward dynamics [49][52] Question: Can you explain the relationship between net earned and net written premiums? - The variance is influenced by improved loss experience, strategic decisions to exit certain lines, and a focus on higher-margin business with longer earnings patterns [56][58] Question: What is the timeline for ramping up participation with new underwriting partners? - The company does not set a specific timeline but aims for 25%-30% of the book to be with new partnerships in the medium term, while also growing with existing partners [65] Question: Does the shift towards longer duration contracts imply an opportunity for extending the investment portfolio duration? - The company considers the duration of its investment portfolio as part of its capital allocation strategy, focusing on maintaining attractive risk-adjusted returns [68]

Financial Data and Key Metrics Changes - The company reported a combined ratio of 80.6%, representing a 47-point improvement year-over-year [5][17] - Operating net income for the fourth quarter was $110 million, or $1.09 per diluted common share, leading to an annualized operating return on average equity of 18.3% [17] - For the full year, operating net income was $205 million, or $1.92 per diluted common share, resulting in an operating return on average equity of 8.5% [17][18] - Gross premiums written increased by 7% for the full year, totaling $4.7 billion [10][18] Business Line Data and Key Metrics Changes - The insurance segment saw a 6% growth in gross premiums written, totaling $981 million in the fourth quarter [18] - The reinsurance segment delivered an 11% premium growth for the year [15] - Asset-backed finance and portfolio credit grew significantly, contributing an increase of $132 million in gross premiums written compared to the prior year [20] Market Data and Key Metrics Changes - The company maintained a portfolio consisting of approximately 80% specialty insurance and 20% reinsurance [11] - The direct property segment successfully maintained overall income year-over-year, demonstrating resilience in dynamic market conditions [12] Company Strategy and Development Direction - The company is focused on being a best-in-class capital allocator, emphasizing disciplined underwriting, strategic use of outward reinsurance, and returning capital to shareholders [7][29] - The new brand identity, Pelagos Insurance Capital, reflects the company's positioning as a capital allocator working with top-tier underwriting partners [6][46] - The company aims to achieve top-line growth of mid-single digits in 2026 while continuing to create value for shareholders [45] Management's Comments on Operating Environment and Future Outlook - Management noted a moderation in pricing in some areas but does not view it as a return to a soft cycle, emphasizing strong margins and adequacy across the portfolio [42][43] - The company is confident in its ability to identify attractive areas for capital allocation and to partner with the best positioned entities in the market [44] Other Important Information - The company repurchased 15.2 million common shares in 2025, contributing $0.90 to book value per share [8][27] - The effective tax rate for the year was 18.2%, with an anticipated rate of approximately 16% for 2026 [26] Q&A Session Summary Question: How should the company think about new partnerships going forward? - The company considers a mix of lines of business, geographies, and bespoke products when evaluating new partnerships, focusing on quality and risk-reward dynamics [49][52] Question: What is the timeline for ramping up participation with new underwriting partners? - The company does not set a specific timeline but aims for 25%-30% of the book to be with new partnerships in the medium term [64][65] Question: Does the shift towards longer duration contracts imply an opportunity for extending the investment portfolio duration? - The company is pleased with its investment portfolio yield and considers duration as part of its capital allocation strategy, but immediate changes are not planned [68]

Forward Looking Statements IGI Investor Presentation Fourth Quarter 2025 February 2026 This presentation contains "forward-looking statements" within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the business of IGI may differ from its actual results and, consequently, you should not rely on forward-looking statements as predictions of future events. Words such as "ability," "aim," "impact," "seek," "stra ...

Financial Data and Key Metrics Changes - The company reported a net income of $3,900,000 or $0.27 per diluted share, marking a 172% increase in net income compared to the prior year [3][16] - Direct written premium growth was 18% overall, with a 23% increase in the core business [3][16] - The combined ratio was 93.7%, close to the 93.3% from the same quarter last year, while operating income nearly tripled to $2,400,000 [12][16] Business Line Data and Key Metrics Changes - The select homeowners program's cumulative frequency decreased for thirteen consecutive quarters, with a frequency of 1.6% compared to 2.3% for the legacy product [6] - Core policies in force increased by 10% year-over-year, led by a 19% increase in homeowners policies [9] - New business policy count increased by 68%, contributing to the growth in core business premiums [8] Market Data and Key Metrics Changes - The company expects to generate $25,000,000 to $35,000,000 in premiums from the Amgard transaction over a twelve-month period [8] - The hard market conditions in Downstate New York remain stable, with companies beginning to increase their underwriting appetite [8] Company Strategy and Development Direction - The company plans to focus on its core state of New York and capitalize on hard market conditions to maximize profitable growth [7][16] - There is a cautious approach towards expanding into other jurisdictions, with a strategy set for 2026 and beyond [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, emphasizing the discipline of the underwriting strategy in a challenging environment [16] - The company does not anticipate a material impact from inflation on results, maintaining a flat expense ratio [12] Other Important Information - The company finalized the sale of its headquarters, resulting in a one-time after-tax gain of $1,500,000 [12] - Net investment income increased by 36% to $2,000,000, driven by strong cash generation from operations [13] Q&A Session Summary Question: Fire losses details - Management confirmed that fire losses were 3.3 points higher than anticipated, offset by lower catastrophe losses, and expressed no concern over these losses as they were random events [20][21] Question: Capital management priorities - The Board is actively discussing the restoration of dividends, but no share buybacks are envisioned in the near future due to growth opportunities [24][25] Question: Amgard transaction pricing - Management indicated that Amgard's pricing is higher and that they are filing for a rate increase in New York, which may close the pricing gap [26][27] Question: CFO search update - A retained search firm has been hired, and interviews are ongoing to fill the CFO position [28] Question: Expansion into other states - The company will focus on Downstate New York for 2025 but is considering other geographies for future growth, ensuring a thoughtful approach [45][46]