Octave Specialty Group, Inc. (NYSE: OSG) (“Octave” or “OSG”), a global specialty insurance firm, today reported its results for the Second Quarter 2026.

Claude LeBlanc, President and Chief Executive Officer of Octave, said “Our core Insurance Distribution business delivered another quarter of strong performance led by revenue growth of 77% and organic revenue growth of 44%. Our Insurance Distribution top-line success translated to a near fourfold increase in Adjusted EBITDA to shareholders during the second quarter of 2026 compared to 2025. These results reflect the successful 2025 acquisition of ArmadaCare and the diversification of our portfolio of MGAs against the backdrop of increasingly soft property market conditions.”

LeBlanc continued, “While our efforts continue towards repositioning Everspan, we are encouraged by the trend in Everspan’s results since these efforts began in the second half of 2024. During the second quarter of 2026 the combined ratio decreased more than 600 basis points from the prior year period led by a reduction of the loss ratio to 61.4%.”

“During the quarter, we also further advanced our data and AI initiatives designed to both improve our operating platform as well as enhance underwriting and business production. We recently launched our proprietary, enterprise, AI-driven underwriting platform, which turns unstructured submissions into decision-ready risks. We expect this platform to enable us to significantly accelerate and improve underwriting decisions and bring additional MGAs to market more quickly.”

Octave’s Second Quarter 2026 Summary Results

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except per share data)(1)

 

 

2026

 

 

 

2025

 

 

% Change

 

 

2026

 

 

 

2025

 

 

% Change

Total revenues

 

$

82,995

 

 

$

54,957

 

 

51

%

 

$

187,165

 

 

$

117,713

 

 

59

%

Total expenses

 

$

94,666

 

 

$

77,931

 

 

21

%

 

$

202,180

 

 

$

155,794

 

 

30

%

Pretax income (loss) from continuing operations

 

$

(11,671

)

 

$

(22,974

)

 

NM

 

 

$

(15,015

)

 

$

(38,081

)

 

NM

 

Provision (benefit) for income taxes from continuing operations

 

$

485

 

 

$

(2,172

)

 

NM

 

 

$

4

 

 

$

(2,789

)

 

NM

 

Net income (loss) from continuing operations

 

$

(12,156

)

 

$

(20,802

)

 

NM

 

 

$

(15,019

)

 

$

(35,292

)

 

NM

 

Net income (loss) from continuing operations attributable to shareholders, net of tax

 

$

(14,429

)

 

$

(20,548

)

 

NM

 

 

$

(21,280

)

 

$

(36,692

)

 

NM

 

Net income (loss) from discontinued operations

 

$

—

 

 

$

(52,151

)

 

NM

 

 

$

—

 

 

$

(82,398

)

 

NM

 

Net income (loss) attributable to shareholders

 

$

(14,429

)

 

$

(72,699

)

 

NM

 

 

$

(21,280

)

 

$

(119,090

)

 

NM

 

Net income (loss) from continuing operations attributable to shareholders per diluted share (3)

 

$

(0.33

)

 

$

(0.42

)

 

(21

)%

 

$

(0.47

)

 

$

(0.99

)

 

(53

)%

Net income (loss) attributable to shareholders per diluted share (3)

 

$

(0.33

)

 

$

(1.51

)

 

(78

)%

 

$

(0.47

)

 

$

(2.72

)

 

(83

)%

Non-GAAP(2)

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA to shareholders

 

$

(1,737

)

 

$

(9,848

)

 

NM

 

 

$

1,873

 

 

$

(15,345

)

 

NM

 

Adjusted EBITDA to shareholders

 

$

3,685

 

 

$

(4,569

)

 

NM

 

 

$

23,754

 

 

$

(5,876

)

 

NM

 

Adjusted net income (loss) attributable to shareholders

 

$

(1,813

)

 

$

(10,552

)

 

NM

 

 

$

14,802

 

 

$

(16,587

)

 

NM

 

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA to shareholders per diluted share(2)

 

$

0.08

 

 

$

(0.09

)

 

NM

 

 

$

0.52

 

 

$

(0.12

)

 

NM

 

Adjusted net income (loss) to shareholders per diluted share(2)

 

$

(0.04

)

 

$

(0.22

)

 

(82

)%

 

$

0.33

 

 

$

(0.35

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted shares outstanding

 

 

45,391

 

 

 

48,117

 

 

(6

)%

 

 

45,347

 

 

 

47,738

 

 

(5

)%

(1) Some financial data in this press release may not add up due to rounding

(2) See Non-GAAP Financial Data section of this press release for further information

(3) Per diluted share includes the impact of adjusting redeemable noncontrolling interests to current redemption value

Second Quarter 2026 Summary(4)

Total revenue for the second quarter of 2026 was $83.0 million, an increase of 51% compared to $55.0 million in the same prior-year period. The growth in total revenue was driven primarily by the Insurance Distribution segment, reflecting the acquisition of ArmadaCare and organic revenue growth of 44%.

Octave’s net (loss) to shareholders for the second quarter of 2026 improved to $(14.4) million compared to $(20.5) million in the same prior-year period. The improvement was attributable to (i) our Insurance Distribution segment, which reported a net (loss) of $(3.7) million compared to $(7.7) million in the same prior-year period, (ii) our Specialty Property & Casualty segment, where Everspan reported net income of $1.1 million compared to $0.4 million in the same prior-year period, and (iii) a Corporate net loss of $(11.6) million compared to $(13.2) million in the same prior-year period.

Adjusted net (loss) to shareholders for the second quarter of 2026 improved to $(1.8) million, compared to $(10.6) million in the same prior-year period. Adjusted EBITDA to shareholders for the second quarter of 2026 improved to $3.7 million, compared to $(4.6) million in the same prior-year period. The improvement in Adjusted EBITDA to shareholders was driven by a $7.3 million increase in Insurance Distribution Adjusted EBITDA to shareholders, reflecting organic growth across our core MGA platform, the acquisition of ArmadaCare, and an increase in our ownership position in Octave Ventures (formerly known as Beat Capital Partners) to 70% from 60%. In addition, Everspan’s Adjusted EBITDA to shareholders increased $1.1 million to $1.8 million in the second quarter of 2026 from $0.7 million a year ago.

(4) For definitions of each non-GAAP measure referred to above, as well as reconciliation of such non-GAAP measures to their most directly comparable GAAP measures, see “Non-GAAP Financial Measures” below.

Earnings Call and Webcast

On August 7, 2026, at 8:30am ET, Claude LeBlanc, President and Chief Executive Officer, and David Trick, Executive Vice President and Chief Financial Officer, will discuss Octave’s second quarter 2026 results and updated 2026 guidance during a conference call. A live audio webcast of the call will be available through the Investor Relations section of Octave’s website, https://octavegroup.com/investor-relations/events-and-presentations. Participants may also listen via telephone by dialing (877) 407-9716 or (201) 493-6779.

The webcast will be archived on Octave’s website. A replay of the call will be available through August 21, 2026, and can be accessed by dialing (Domestic) (844) 512-2921 or (International) (412) 317-6671; and using ID# 13761601.

Additional information is included in an operating supplement and presentations on Octave’s website, www.octavegroup.com.

Results of Operations by Segment

Insurance Distribution Segment

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands)(1)

 

 

2026

 

 

 

2025

 

 

% Change

 

 

2026

 

 

 

2025

 

 

% Change

Premiums placed

 

$

314,367

 

 

$

249,912

 

 

26

%

 

$

741,200

 

 

$

483,098

 

 

53

%

Total revenues

 

$

58,418

 

 

$

33,041

 

 

77

%

 

$

136,944

 

 

$

74,039

 

 

85

%

Pretax income (loss)

 

$

(846

)

 

$

(10,173

)

 

NM

 

 

$

15,939

 

 

$

(12,416

)

 

NM

 

Pretax income (loss) to shareholders(2)

 

$

(3,232

)

 

$

(9,919

)

 

NM

 

 

$

9,565

 

 

$

(13,816

)

 

NM

 

Net income (loss)

 

$

(1,325

)

 

$

(7,992

)

 

NM

 

 

$

15,828

 

 

$

(9,735

)

 

NM

 

Net income (loss) to shareholders(2)

 

$

(3,711

)

 

$

(7,738

)

 

NM

 

 

$

9,454

 

 

$

(11,135

)

 

NM

 

EBITDA(4)

 

$

13,887

 

 

$

4,698

 

 

196

%

 

$

44,704

 

 

$

16,781

 

 

166

%

EBITDA to shareholders(2)(4)

 

$

8,670

 

 

$

2,513

 

 

245

%

 

$

32,137

 

 

$

9,576

 

 

236

%

Adjusted EBITDA(4)

 

$

15,329

 

 

$

4,580

 

 

235

%

 

$

48,324

 

 

$

16,692

 

 

190

%

Adjusted EBITDA to shareholders(2)(4)

 

$

9,792

 

 

$

2,519

 

 

289

%

 

$

35,132

 

 

$

9,611

 

 

266

%

Adjusted net income (loss)(4)

 

$

9,419

 

 

$

(701

)

 

NM

 

 

$

38,168

 

 

$

6,348

 

 

501

%

Adjusted net income (loss) to shareholders(2)(4)

 

$

4,605

 

 

$

(3,013

)

 

NM

 

 

$

26,650

 

 

$

(464

)

 

NM

 

Pretax income margin to shareholders(3)

 

 

(5.5

)%

 

 

(30.0

)%

 

2450 bps

 

 

7.0

%

 

 

(18.7

)%

 

2570 bps

Adjusted EBITDA margin to shareholders(4),(5)

 

 

16.8

%

 

 

7.6

%

 

920 bps

 

 

25.7

%

 

 

13.0

%

 

1270 bps

Organic Growth(4)

 

 

44.1

%

 

 

(2.6

)%

 

 

 

 

42.9

%

 

 

(2.3

)%

 

 

(1) Reflects segment results prior to intersegment activities eliminated in consolidation.

(2) After the impact of noncontrolling interests

(3) Represents Pretax income (loss) to shareholders divided by total revenues

(4) See Non-GAAP Financial Data section of this press release for further information

(5) Represents Adjusted EBITDA to shareholders divided by total revenues

Specialty Property & Casualty Insurance Segment

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands)(1)

 

 

2026

 

 

 

2025

 

 

% Change

 

 

2026

 

 

 

2025

 

 

% Change

Gross premium written

 

$

94,702

 

 

$

96,247

 

 

(2

)%

 

$

198,418

 

 

$

183,162

 

 

8

%

Net premiums written

 

$

23,142

 

 

$

15,207

 

 

52

%

 

$

55,591

 

 

$

33,212

 

 

67

%

Net premiums earned

 

$

21,749

 

 

$

16,203

 

 

34

%

 

$

41,750

 

 

$

31,881

 

 

31

%

Total revenue

 

$

26,403

 

 

$

21,390

 

 

23

%

 

$

51,702

 

 

$

42,561

 

 

21

%

Net income (loss)

 

$

1,119

 

 

$

428

 

 

161

%

 

$

(6,571

)

 

$

1,852

 

 

NM

 

Adjusted EBITDA to shareholders(2)

 

$

1,757

 

 

$

681

 

 

158

%

 

$

3,375

 

 

$

2,270

 

 

49

%

Loss Ratio

 

 

61.4

%

 

 

67.8

%

 

(640) bps

 

 

79.1

%

 

 

67.4

%

 

1170 bps

Expense Ratio

 

 

39.2

%

 

 

38.9

%

 

30 bps

 

 

45.0

%

 

 

37.1

%

 

790 bps

Combined Ratio

 

 

100.6

%

 

 

106.7

%

 

(610) bps

 

 

124.1

%

 

 

104.5

%

 

1960 bps

(1) Reflects segment results prior to intersegment activities eliminated in consolidation.

(2) See Non-GAAP Financial Data section of this press release for further information

OSG Corporate (holding company only)

OSG on a standalone basis, excluding its ownership interests in its Specialty P&C Insurance and Insurance Distribution subsidiaries, had net assets of $48 million as of June 30, 2026. Assets included cash and liquid securities of $26 million and other investments of $22 million.

Consolidated Octave Specialty Group, Inc. Stockholders’ Equity and Noncontrolling Interests (“NCI”) Impact to EPS

Stockholders’ equity attributable to common shareholders at June 30, 2026, was $699 million, or $15.52 per share, compared to $713 million, or $15.83 per share, as of March 31, 2026. The decline was primarily a result of the total comprehensive loss attributable to common shareholders of $(12) million.

Calculation of Earnings (Loss) Per Share (EPS)

Diluted net income (loss) per share is computed by dividing net income (loss) attributable to shareholders, adjusted for the direct retained earnings impacts of changes to redeemable noncontrolling interests, by the basic weighted-average shares outstanding plus all potentially dilutive common shares outstanding during the period. The following table provides a reconciliation of net income (loss) attributable to shareholders to the numerator in the diluted earnings per share calculation, together with the resulting earnings per share amounts:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except per share data)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Net income (loss) from continuing operations attributable to shareholders

$

(14,429

)

 

$

(20,548

)

 

$

(21,280

)

 

$

(36,692

)

Adjustment for Redeemable NCI

 

(737

)

 

 

220

 

 

$

70

 

 

$

(10,605

)

Numerator of diluted EPS

$

(15,166

)

 

$

(20,328

)

 

$

(21,210

)

 

$

(47,297

)

Per Share — Diluted

$

(0.33

)

 

$

(0.42

)

 

$

(0.47

)

 

$

(0.99

)

 

 

 

 

 

 

 

 

Net income (loss) attributable to shareholders

$

(14,429

)

 

$

(72,699

)

 

$

(21,280

)

 

$

(119,090

)

Adjustment for Redeemable NCI

 

(737

)

 

 

220

 

 

 

70

 

 

 

(10,605

)

Numerator of diluted EPS

$

(15,166

)

 

$

(72,479

)

 

$

(21,210

)

 

$

(129,695

)

Per Share — Diluted

$

(0.33

)

 

$

(1.51

)

 

$

(0.47

)

 

$

(2.72

)

 

 

 

 

 

 

 

 

WASO-Diluted

 

45,391

 

 

 

48,117

 

 

 

45,347

 

 

 

47,738

 
 

OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Loss) (Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands, except share data)

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

Commissions

 

$

49,728

 

 

$

30,322

 

 

$

117,906

 

 

$

67,093

 

Servicing and other fees

 

 

5,913

 

 

 

4,472

 

 

 

15,275

 

 

 

9,436

 

Net premiums earned

 

 

21,749

 

 

 

16,203

 

 

 

41,750

 

 

 

31,881

 

Program fees

 

 

3,293

 

 

 

3,497

 

 

 

6,937

 

 

 

7,149

 

Investment income

 

 

1,877

 

 

 

2,609

 

 

 

4,232

 

 

 

5,424

 

Other

 

 

435

 

 

 

(2,146

)

 

 

1,065

 

 

 

(3,270

)

Total revenues

 

 

82,995

 

 

 

54,957

 

 

 

187,165

 

 

 

117,713

 

Expenses:

 

 

 

 

 

 

 

 

Commissions

 

 

8,508

 

 

 

7,403

 

 

 

22,513

 

 

 

17,768

 

Losses and loss adjustment expenses

 

 

13,346

 

 

 

10,978

 

 

 

33,025

 

 

 

21,474

 

Policy acquisition costs

 

 

6,359

 

 

 

3,699

 

 

 

12,730

 

 

 

7,540

 

General and administrative

 

 

51,415

 

 

 

40,540

 

 

 

104,570

 

 

 

79,071

 

Intangible amortization and depreciation

 

 

12,264

 

 

 

9,741

 

 

 

24,478

 

 

 

18,917

 

Interest

 

 

2,774

 

 

 

5,570

 

 

 

4,864

 

 

 

11,024

 

Total expenses

 

 

94,666

 

 

 

77,931

 

 

 

202,180

 

 

 

155,794

 

Pretax income (loss) from continuing operations

 

 

(11,671

)

 

 

(22,974

)

 

 

(15,015

)

 

 

(38,081

)

Provision (benefit) for income taxes from continuing operations

 

 

485

 

 

 

(2,172

)

 

 

4

 

 

 

(2,789

)

Net income (loss) from continuing operations

 

 

(12,156

)

 

 

(20,802

)

 

 

(15,019

)

 

 

(35,292

)

Net income (loss) from discontinued operations

 

 

—

 

 

 

(52,151

)

 

 

—

 

 

 

(82,398

)

Net income (loss)

 

 

(12,156

)

 

 

(72,953

)

 

 

(15,019

)

 

 

(117,690

)

Net (gain) loss attributable to noncontrolling interest

 

 

(2,273

)

 

 

254

 

 

 

(6,261

)

 

 

(1,400

)

Net income (loss) attributable to shareholders

 

$

(14,429

)

 

$

(72,699

)

 

$

(21,280

)

 

$

(119,090

)

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations attributable to shareholders

 

$

(14,429

)

 

$

(20,548

)

 

$

(21,280

)

 

$

(36,692

)

Net income (loss) from discontinued operations attributable to shareholders

 

 

—

 

 

 

(52,151

)

 

 

—

 

 

 

(82,398

)

Net income (loss) attributable to shareholders

 

$

(14,429

)

 

$

(72,699

)

 

$

(21,280

)

 

$

(119,090

)

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations per share attributable to shareholders

 

 

 

 

 

 

 

 

Basic

 

$

(0.33

)

 

$

(0.42

)

 

$

(0.47

)

 

$

(0.99

)

Diluted

 

$

(0.33

)

 

$

(0.42

)

 

$

(0.47

)

 

$

(0.99

)

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to shareholders

 

 

 

 

 

 

 

 

Basic

 

$

(0.33

)

 

$

(1.51

)

 

$

(0.47

)

 

$

(2.72

)

Diluted

 

$

(0.33

)

 

$

(1.51

)

 

$

(0.47

)

 

$

(2.72

)

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

45,390,612

 

 

 

48,116,503

 

 

 

45,347,014

 

 

 

47,738,050

 

Diluted

 

 

45,390,612

 

 

 

48,116,503

 

 

 

45,347,014

 

 

 

47,738,050

 
 

OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

($ in thousands, except share data)

 

June 30,

2026

 

March 31,

2026

Assets:

 

 

 

 

Investments:

 

 

 

 

Fixed maturity securities, at fair value (amortized cost: $136,793 and $139,242)

 

$

134,141

 

 

$

137,092

 

Short-term investments, at fair value (amortized cost: $82,513 and $92,295)

 

 

82,513

 

 

 

92,295

 

Other investments (includes $7,498 and $7,454 at fair value)

 

 

25,015

 

 

 

24,971

 

Total investments (net of allowance for credit losses of $0 and $0)

 

 

241,669

 

 

 

254,358

 

Cash and cash equivalents (including $52,308 and $46,634 of restricted cash)

 

 

79,096

 

 

 

93,537

 

Premium receivables (net of allowance for credit losses of $500 and $500)

 

 

94,635

 

 

 

87,653

 

Commission and fees receivable

 

 

100,537

 

 

 

106,198

 

Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $100 and $100)

 

 

495,653

 

 

 

469,859

 

Deferred ceded premium

 

 

148,236

 

 

 

145,420

 

Policy acquisition costs

 

 

16,423

 

 

 

16,451

 

Intangible assets, less accumulated amortization

 

 

447,448

 

 

 

458,380

 

Goodwill

 

 

534,304

 

 

 

533,497

 

Other assets (net of allowance for credit losses of $350 and $350)

 

 

122,856

 

 

 

101,673

 

Total assets

 

$

2,280,857

 

 

$

2,267,026

 

Liabilities and Stockholders’ Equity:

 

 

 

 

Liabilities:

 

 

 

 

Unearned premiums

 

$

202,890

 

 

$

198,681

 

Loss and loss adjustment expense reserves

 

 

499,043

 

 

 

487,261

 

Ceded premiums payable

 

 

93,346

 

 

 

89,148

 

Deferred program fees and reinsurance commissions

 

 

6,989

 

 

 

6,929

 

Commission payable

 

 

128,231

 

 

 

118,086

 

Deferred taxes

 

 

58,855

 

 

 

60,553

 

Long-term debt

 

 

155,459

 

 

 

117,062

 

Accrued interest payable

 

 

27

 

 

 

1,305

 

Other liabilities

 

 

120,643

 

 

 

158,458

 

Total liabilities

 

 

1,265,483

 

 

 

1,237,483

 

Redeemable noncontrolling interest

 

 

197,529

 

 

 

195,969

 

Stockholders’ equity:

 

 

 

 

Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none

 

 

—

 

 

 

—

 

Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 48,876,882 and 48,876,882

 

 

489

 

 

 

489

 

Additional paid-in capital

 

 

379,561

 

 

 

380,263

 

Accumulated other comprehensive income

 

 

3,292

 

 

 

1,224

 

Retained earnings

 

 

348,474

 

 

 

363,751

 

Treasury stock, shares at cost: 3,859,121 and 3,863,290

 

 

(33,063

)

 

 

(33,109

)

Total Octave Specialty Group, Inc. stockholders’ equity

 

 

698,753

 

 

 

712,618

 

Nonredeemable noncontrolling interest

 

 

119,092

 

 

 

120,956

 

Total stockholders’ equity

 

 

817,845

 

 

 

833,574

 

Total liabilities, redeemable noncontrolling interest and stockholders’ equity

 

$

2,280,857

 

 

$

2,267,026

 

Non-GAAP Financial Data

In addition to reporting the Company’s quarterly financial results in accordance with GAAP, the Company is reporting non-GAAP financial measures: EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, Organic Revenue Growth Rate (Insurance Distribution segment only), Adjusted Net Income and Adjusted Net Income Margin. These amounts are derived from our consolidated financial information, but are not presented in our consolidated financial results because they are not calculated in accordance with GAAP.

We present non-GAAP supplemental financial information because we believe such information is of interest to the investment community, and that it provides greater transparency and enhanced visibility into the underlying drivers and performance of our businesses on a basis that may not be otherwise apparent on a GAAP basis. We view these non-GAAP financial measures as important indicators when assessing and evaluating our performance on a segmented and consolidated basis, and they are presented to improve the comparability of our results between periods by eliminating the impact of the items that may not be representative of our core operating performance. These non-GAAP financial measures are not substitutes for the Company’s GAAP reporting, should not be viewed in isolation, and may differ from similar reporting provided by other companies, which may define non-GAAP measures differently

The following paragraphs define each non-GAAP financial measure. A tabular reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure is also presented below.

Non-GAAP Financial Measures

Organic Revenue Growth & Rate (Insurance Distribution Only) — Organic revenue is based on commissions and fees for the relevant period by excluding (i) the first twelve months of commissions and fees generated from acquisitions, (ii) commissions and fees from divestitures and (iii) other items such as contingent commissions, profit commissions and the impact of changes in foreign exchange rates.

Organic Revenue Growth is the change in organic revenue period-to-period, with prior period results adjusted to (i) include commissions and fees that were excluded from organic revenue in the prior period and reached the twelve-month owned mark in the current period, and (ii) exclude commissions and fees related to divestitures from organic revenue.

Total Specialty P&C Insurance Production includes gross premiums written by Octave’s Specialty P&C Insurance segment and premiums placed by the Insurance Distribution segment. Specialty P&C Insurance revenues are dependent on gross premiums written, as specialty program insurance companies earn premiums based on the portion of gross premiums written retained (i.e., net premiums written) and fees on gross premiums written that are ceded to reinsurers. Insurance Distribution revenues are dependent on premium volume, as Managing General Agents/Underwriters and brokers receive commissions based on the amount of premiums placed (i.e., gross premiums written on behalf of insurance carriers) with insurance carriers.

EBITDA — EBITDA is net income (loss) from continuing operations before interest expense, income taxes, depreciation and amortization of intangible assets.

EBITDA Margin — EBITDA divided by total revenues.

Adjusted EBITDA and Adjusted EBITDA Margin — We define Adjusted EBITDA as net income (loss) from continuing operations before interest expense, income taxes, depreciation, amortization of intangible assets, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, acquisition and integration-related expenses, severance, and other exceptional or non-recurring items, including those related to raising capital. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that may obfuscate business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance.

Adjusted Net Income and Adjusted Net Income Margin — We define Adjusted Net Income as net income (loss) from continuing operations attributable to shareholders adjusted for amortization of intangible assets, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, acquisition and integration-related expenses, severance and non-recurring income and loss items that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. Per share amounts exclude any impact of revaluing noncontrolling interests as otherwise reported under GAAP earnings per share. We believe that Adjusted Net Income is an appropriate measure of operating performance because it eliminates the impact of income and expenses that may obfuscate business performance.

Results of Operations by Segment (Continued)

Three Months Ended June 30, 2026

 

Specialty Property & Casualty Insurance

 

Insurance Distribution

 

Corporate & Other

 

Eliminations

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

94,702

 

 

 

 

 

 

 

 

$

94,702

 

Net premiums written

 

 

23,142

 

 

 

 

 

 

 

 

 

23,142

 

Total revenues

 

 

26,403

 

 

$

58,418

 

 

$

232

 

 

$

(2,058

)

 

 

82,995

 

Total expenses

 

 

25,159

 

 

 

59,264

 

 

 

11,988

 

 

 

(1,745

)

 

 

94,666

 

Pretax income (loss)

 

 

1,244

 

 

 

(846

)

 

 

(11,756

)

 

 

(313

)

 

 

(11,671

)

Provision (benefit) for income taxes

 

 

125

 

 

 

479

 

 

 

(119

)

 

 

—

 

 

 

485

 

Net income (loss)

 

$

1,119

 

 

$

(1,325

)

 

$

(11,637

)

 

$

(313

)

 

$

(12,156

)

 

 

 

 

 

 

 

 

 

 

 

Adjustments to EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Interest expense

 

$

—

 

 

$

2,774

 

 

$

—

 

 

 

—

 

 

$

2,774

 

Add: Income tax expense

 

 

125

 

 

 

479

 

 

 

(119

)

 

 

—

 

 

 

485

 

Add: Depreciation

 

 

—

 

 

 

350

 

 

 

305

 

 

 

—

 

 

 

655

 

Add: Intangible amortization

 

 

—

 

 

 

11,609

 

 

 

—

 

 

 

—

 

 

 

11,609

 

EBITDA

 

$

1,244

 

 

$

13,887

 

 

$

(11,451

)

 

$

(313

)

 

$

3,367

 

EBITDA attributable to shareholders

 

$

1,244

 

 

$

8,670

 

 

$

(11,451

)

 

$

(200

)

 

$

(1,737

)

 

 

 

 

 

 

 

 

 

 

 

Adjustments to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

$

—

 

 

$

451

 

 

$

688

 

 

$

—

 

 

$

1,139

 

Add: Equity-based compensation expense

 

 

372

 

 

 

991

 

 

 

2,650

 

 

 

—

 

 

 

4,013

 

Add: Severance and restructuring expense

 

 

141

 

 

 

—

 

 

 

449

 

 

 

—

 

 

 

590

 

Add: Other non-operating (income) losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted EBITDA

 

$

1,757

 

 

$

15,329

 

 

$

(7,664

)

 

$

(313

)

 

$

9,109

 

Adjusted EBITDA attributable to shareholders

 

$

1,757

 

 

$

9,792

 

 

$

(7,664

)

 

$

(200

)

 

$

3,685

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,119

 

 

$

(1,325

)

 

$

(11,637

)

 

$

(313

)

 

$

(12,156

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

 

—

 

 

 

451

 

 

 

688

 

 

 

—

 

 

 

1,139

 

Add: Intangible amortization

 

 

—

 

 

 

11,609

 

 

 

—

 

 

 

—

 

 

 

11,609

 

Add: Equity-based compensation expense

 

 

372

 

 

 

991

 

 

 

2,650

 

 

 

—

 

 

 

4,013

 

Add: Severance and restructuring expense

 

 

141

 

 

 

—

 

 

 

449

 

 

 

—

 

 

 

590

 

Add: Other non-operating (income) losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted net income (loss) before tax adjustments and NCI

 

 

1,632

 

 

 

11,726

 

 

 

(7,850

)

 

 

(313

)

 

 

5,195

 

Income tax effects

 

 

(1,132

)

 

 

(2,307

)

 

 

1,132

 

 

 

—

 

 

 

(2,307

)

Adjusted net income (loss) before NCI

 

 

500

 

 

 

9,419

 

 

 

(6,718

)

 

 

(313

)

 

 

2,888

 

Net (income) loss attributable to noncontrolling interest

 

 

—

 

 

 

(4,814

)

 

 

—

 

 

 

113

 

 

 

(4,701

)

Adjusted net income (loss) attributable to shareholders

 

$

500

 

 

$

4,605

 

 

$

(6,718

)

 

$

(200

)

 

$

(1,813

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) margin

 

 

4.2

%

 

 

(2.3

)%

 

 

NM

 

 

 

NM

 

 

 

(14.6

)%

Adjusted EBITDA Margin

 

 

6.7

%

 

 

26.2

%

 

 

NM

 

 

 

NM

 

 

 

11.0

%

Adjusted EBITDA Margin to shareholders

 

 

6.7

%

 

 

16.8

%

 

 

NM

 

 

 

NM

 

 

 

4.4

%

Adjusted net income (loss) after NCI margin

 

 

1.9

%

 

 

7.9

%

 

 

NM

 

 

 

NM

 

 

 

(2.2

)%

Three Months Ended June 30, 2025

 

Specialty Property & Casualty Insurance

 

Insurance Distribution

 

Corporate & Other

 

Eliminations

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

96,247

 

 

 

 

 

 

 

 

$

96,247

 

Net premiums written

 

 

15,207

 

 

 

 

 

 

 

 

 

15,207

 

Total revenues

 

 

21,390

 

 

$

33,041

 

 

$

526

 

 

$

—

 

 

54,957

 

Total expenses

 

 

20,770

 

 

 

43,214

 

 

 

13,949

 

 

 

—

 

 

77,931

 

Pretax income (loss)

 

 

620

 

 

 

(10,173

)

 

 

(13,423

)

 

 

—

 

 

(22,974

)

Provision (benefit) for income taxes

 

 

192

 

 

 

(2,181

)

 

 

(183

)

 

 

—

 

 

(2,172

)

Net income (loss) from Continuing Operations

 

$

428

 

 

$

(7,992

)

 

$

(13,240

)

 

$

—

 

$

(20,802

)

 

 

 

 

 

 

 

 

 

 

 

Adjustments to EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Interest expense

 

$

—

 

 

$

5,570

 

 

$

—

 

 

$

—

 

$

5,570

 

Add: Income tax expense

 

 

192

 

 

 

(2,181

)

 

 

(183

)

 

 

—

 

 

(2,172

)

Add: Depreciation

 

 

—

 

 

 

—

 

 

 

440

 

 

 

—

 

 

440

 

Add: Intangible amortization

 

 

—

 

 

 

9,301

 

 

 

—

 

 

 

—

 

 

9,301

 

EBITDA

 

$

620

 

 

$

4,698

 

 

$

(12,983

)

 

$

—

 

$

(7,663

)

EBITDA attributable to shareholders

 

$

620

 

 

$

2,513

 

 

$

(12,983

)

 

$

—

 

$

(9,848

)

 

 

 

 

 

 

 

 

 

 

 

Adjustments to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

$

—

 

 

$

375

 

 

$

399

 

 

$

—

 

$

774

 

Add: Equity-based compensation expense

 

 

61

 

 

 

67

 

 

 

1,895

 

 

 

—

 

 

2,023

 

Add: Severance and restructuring expense

 

 

—

 

 

 

31

 

 

 

2,918

 

 

 

—

 

 

2,949

 

Add: Other non-operating (income) losses

 

 

—

 

 

 

(591

)

 

 

—

 

 

 

—

 

 

(591

)

Adjusted EBITDA

 

$

681

 

 

$

4,580

 

 

$

(7,771

)

 

$

—

 

$

(2,508

)

Adjusted EBITDA to attributable to shareholders

 

$

681

 

 

$

2,519

 

 

$

(7,771

)

 

$

—

 

$

(4,569

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (Continuing Operations)

 

$

428

 

 

$

(7,992

)

 

$

(13,240

)

 

$

—

 

$

(20,802

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

 

—

 

 

 

375

 

 

 

399

 

 

 

—

 

 

774

 

Add: Intangible amortization

 

 

—

 

 

 

9,301

 

 

 

—

 

 

 

—

 

 

9,301

 

Add: Equity-based compensation expense

 

 

61

 

 

 

67

 

 

 

1,895

 

 

 

—

 

 

2,023

 

Add: Severance and restructuring expense

 

 

—

 

 

 

31

 

 

 

2,918

 

 

 

—

 

 

2,949

 

Add: Other non-operating (income) losses

 

 

—

 

 

 

(591

)

 

 

—

 

 

 

—

 

 

(591

)

Adjusted net income (loss) before tax adjustments and NCI

 

 

489

 

 

 

1,191

 

 

 

(8,028

)

 

 

—

 

 

(6,348

)

Income tax effects

 

 

(15

)

 

 

(1,892

)

 

 

15

 

 

 

—

 

 

(1,892

)

Adjusted net income (loss) before NCI

 

 

474

 

 

 

(701

)

 

 

(8,013

)

 

 

—

 

 

(8,240

)

Net (income) loss attributable to noncontrolling interest

 

 

—

 

 

 

(2,312

)

 

 

—

 

 

 

—

 

 

(2,312

)

Adjusted net income (loss) attributable to shareholders

 

$

474

 

 

$

(3,013

)

 

$

(8,013

)

 

$

—

 

$

(10,552

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) margin

 

 

2.0

%

 

 

(24.2

)%

 

 

NM

 

 

 

NM

 

 

(37.9

)%

Adjusted EBITDA Margin

 

 

3.2

%

 

 

13.9

%

 

 

NM

 

 

 

NM

 

 

(4.6

)%

Adjusted EBITDA Margin to shareholders

 

 

3.2

%

 

 

7.6

%

 

 

NM

 

 

 

NM

 

 

(8.3

)%

Adjusted net income (loss) after NCI margin

 

 

2.2

%

 

 

(9.1

)%

 

 

NM

 

 

 

NM

 

 

(19.2

)%

 

 

 

 

 

 

 

 

 

 

 

Results of Operations by Segment (Continued)

Six Months Ended June 30, 2026

 

Specialty Property & Casualty Insurance

 

Insurance Distribution

 

Corporate & Other

 

Eliminations

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

198,418

 

 

 

 

 

 

 

 

$

198,418

 

Net premiums written

 

 

55,591

 

 

 

 

 

 

 

 

 

55,591

 

Total revenues

 

 

51,702

 

 

$

136,944

 

 

$

577

 

 

$

(2,058

)

 

 

187,165

 

Total expenses

 

 

58,740

 

 

 

121,005

 

 

 

24,180

 

 

 

(1,745

)

 

 

202,180

 

Pretax income (loss)

 

 

(7,038

)

 

 

15,939

 

 

 

(23,603

)

 

 

(313

)

 

 

(15,015

)

Provision (benefit) for income taxes

 

 

(467

)

 

 

111

 

 

 

360

 

 

 

—

 

 

 

4

 

Net income (loss)

 

$

(6,571

)

 

$

15,828

 

 

$

(23,963

)

 

$

(313

)

 

$

(15,019

)

 

 

 

 

 

 

 

 

 

 

 

Adjustments to EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Interest expense

 

$

—

 

 

$

4,864

 

 

$

—

 

 

$

—

 

 

$

4,864

 

Add: Income tax expense

 

 

(467

)

 

 

111

 

 

 

360

 

 

 

—

 

 

 

4

 

Add: Depreciation

 

 

—

 

 

 

645

 

 

 

577

 

 

 

—

 

 

 

1,222

 

Add: Intangible amortization

 

 

—

 

 

 

23,256

 

 

 

—

 

 

 

—

 

 

 

23,256

 

EBITDA

 

$

(7,038

)

 

$

44,704

 

 

$

(23,026

)

 

$

(313

)

 

$

14,327

 

EBITDA attributable to shareholders

 

$

(7,038

)

 

$

32,137

 

 

$

(23,026

)

 

$

(200

)

 

$

1,873

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

$

—

 

 

$

1,855

 

 

$

1,752

 

 

$

—

 

 

$

3,607

 

Add: Equity-based compensation expense

 

 

1,069

 

 

 

1,765

 

 

 

5,771

 

 

 

—

 

 

 

8,605

 

Add: Severance and restructuring expense

 

 

1,432

 

 

 

—

 

 

 

868

 

 

 

—

 

 

 

2,300

 

Add: Other non-operating (income) losses

 

 

7,912

 

 

 

—

 

 

 

82

 

 

 

—

 

 

 

7,994

 

Adjusted EBITDA

 

$

3,375

 

 

$

48,324

 

 

$

(14,553

)

 

$

(313

)

 

$

36,833

 

Adjusted EBITDA attributable to shareholders

 

$

3,375

 

 

$

35,132

 

 

$

(14,553

)

 

$

(200

)

 

$

23,754

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(6,571

)

 

$

15,828

 

 

$

(23,963

)

 

$

(313

)

 

$

(15,019

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

 

—

 

 

 

1,855

 

 

 

1,752

 

 

 

—

 

 

 

3,607

 

Add: Intangible amortization

 

 

—

 

 

 

23,256

 

 

 

—

 

 

 

—

 

 

 

23,256

 

Add: Equity-based compensation expense

 

 

1,069

 

 

 

1,765

 

 

 

5,771

 

 

 

—

 

 

 

8,605

 

Add: Severance and restructuring expense

 

 

1,432

 

 

 

—

 

 

 

868

 

 

 

—

 

 

 

2,300

 

Add: Other non-operating (income) losses

 

 

7,912

 

 

 

—

 

 

 

82

 

 

 

—

 

 

 

7,994

 

Adjusted net income (loss) before tax adjustments and NCI

 

 

3,842

 

 

 

42,704

 

 

 

(15,490

)

 

 

(313

)

 

 

30,743

 

Income tax effects

 

 

(2,187

)

 

 

(4,536

)

 

 

2,187

 

 

 

—

 

 

 

(4,536

)

Adjusted net income (loss) before NCI

 

 

1,655

 

 

 

38,168

 

 

 

(13,303

)

 

 

(313

)

 

 

26,207

 

Net (income) loss attributable to noncontrolling interest

 

 

—

 

 

 

(11,518

)

 

 

—

 

 

 

113

 

 

 

(11,405

)

Adjusted net income (loss) attributable to shareholders

 

$

1,655

 

 

$

26,650

 

 

$

(13,303

)

 

$

(200

)

 

$

14,802

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) margin

 

 

(12.7

)%

 

 

11.6

%

 

 

NM

 

 

 

NM

 

 

 

(8.0

)%

Adjusted EBITDA Margin

 

 

6.5

%

 

 

35.3

%

 

 

NM

 

 

 

NM

 

 

 

19.7

%

Adjusted EBITDA Margin to shareholders

 

 

6.5

%

 

 

25.7

%

 

 

NM

 

 

 

NM

 

 

 

12.7

%

Adjusted Net income (loss) after NCI margin

 

 

3.2

%

 

 

19.5

%

 

 

NM

 

 

 

NM

 

 

 

7.9

%

Six Months Ended June 30, 2025

 

Specialty Property & Casualty Insurance

 

Insurance Distribution

 

Corporate & Other

 

Eliminations

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

183,162

 

 

 

 

 

 

 

 

$

183,162

 

Net premiums written

 

 

33,212

 

 

 

 

 

 

 

 

 

33,212

 

Total revenues

 

 

42,561

 

 

$

74,039

 

 

$

1,113

 

 

$

—

 

 

117,713

 

Total expenses

 

 

40,439

 

 

 

86,455

 

 

 

28,901

 

 

 

—

 

 

155,794

 

Pretax income (loss)

 

 

2,122

 

 

 

(12,416

)

 

 

(27,788

)

 

 

—

 

 

(38,081

)

Provision (benefit) for income taxes

 

 

270

 

 

 

(2,681

)

 

 

(378

)

 

 

—

 

 

(2,789

)

Net income (loss) from Continuing Operations

 

$

1,852

 

 

$

(9,735

)

 

$

(27,410

)

 

$

—

 

$

(35,292

)

 

 

 

 

 

 

 

 

 

 

 

Adjustments to EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Interest expense

 

$

—

 

 

$

11,024

 

 

$

—

 

 

$

—

 

$

11,024

 

Add: Income tax expense

 

 

270

 

 

 

(2,681

)

 

 

(378

)

 

 

—

 

 

(2,789

)

Add: Depreciation

 

 

—

 

 

 

109

 

 

 

744

 

 

 

—

 

 

853

 

Add: Intangible amortization

 

 

—

 

 

 

18,064

 

 

 

—

 

 

 

—

 

 

18,064

 

EBITDA

 

$

2,122

 

 

$

16,781

 

 

$

(27,044

)

 

$

—

 

$

(8,140

)

EBITDA attributable to shareholders

 

$

2,122

 

 

$

9,576

 

 

$

(27,044

)

 

$

—

 

$

(15,345

)

 

 

 

 

 

 

 

 

 

 

 

Adjustments to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

$

—

 

 

$

375

 

 

$

1,081

 

 

$

—

 

$

1,456

 

Add: Equity-based compensation expense

 

 

147

 

 

 

67

 

 

 

3,469

 

 

 

—

 

 

3,683

 

Add: Severance and restructuring expense

 

 

—

 

 

 

60

 

 

 

4,737

 

 

 

—

 

 

4,797

 

Add: Other non-operating (income) losses

 

 

—

 

 

 

(591

)

 

 

—

 

 

 

—

 

 

(591

)

Adjusted EBITDA

 

$

2,270

 

 

$

16,692

 

 

$

(17,759

)

 

$

—

 

$

1,205

 

Adjusted EBITDA to shareholders

 

$

2,270

 

 

$

9,611

 

 

$

(17,759

)

 

$

—

 

$

(5,876

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (Continuing Operations)

 

$

1,852

 

 

$

(9,735

)

 

$

(27,410

)

 

$

—

 

$

(35,292

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Add: Acquisition and integration-related expenses

 

 

—

 

 

 

375

 

 

 

1,081

 

 

 

—

 

 

1,456

 

Add: Intangible amortization

 

 

—

 

 

 

18,064

 

 

 

—

 

 

 

—

 

 

18,064

 

Add: Equity-based compensation expense

 

 

147

 

 

 

67

 

 

 

3,469

 

 

 

—

 

 

3,683

 

Add: Severance and restructuring expense

 

 

—

 

 

 

60

 

 

 

4,737

 

 

 

—

 

 

4,797

 

Add: Other non-operating (income) losses

 

 

—

 

 

 

(591

)

 

 

—

 

 

 

—

 

 

(591

)

Adjusted net income (loss) before tax adjustments and NCI

 

 

2,000

 

 

 

8,240

 

 

 

(18,123

)

 

 

—

 

 

(7,883

)

Income tax effects

 

 

(15

)

 

 

(1,892

)

 

 

15

 

 

 

—

 

 

(1,892

)

Adjusted net income (loss) before NCI

 

 

1,985

 

 

 

6,348

 

 

 

(18,108

)

 

 

—

 

 

(9,775

)

Net (income) loss attributable to noncontrolling interest

 

 

—

 

 

 

(6,812

)

 

 

—

 

 

 

—

 

 

(6,812

)

Adjusted net income (loss) attributable to shareholders

 

$

1,985

 

 

$

(464

)

 

$

(18,108

)

 

$

—

 

$

(16,587

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) margin

 

 

4.4

%

 

 

(13.1

)%

 

 

NM

 

 

 

NM

 

 

(30.0

)%

Adjusted EBITDA Margin

 

 

5.3

%

 

 

22.5

%

 

 

NM

 

 

 

NM

 

 

1.0

%

Adjusted EBITDA Margin to shareholders

 

 

5.3

%

 

 

13.0

%

 

 

NM

 

 

 

NM

 

 

(5.0

)%

Adjusted Net income (loss) after NCI margin

 

 

4.7

%

 

 

(0.6

)%

 

 

NM

 

 

 

NM

 

 

(14.1

)%

Organic Growth

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands)

 

2026

 

 

 

2025

 

 

% Growth

 

 

2026

 

 

 

2025

 

 

% Growth

Total Insurance Distribution revenue (1)

$

58,418

 

 

$

33,041

 

 

76.8

%

 

$

136,944

 

 

$

74,039

 

 

85.0

%

Less: Acquired revenues

 

(7,289

)

 

 

—

 

 

 

 

 

(28,410

)

 

 

—

 

 

 

Less: Profit commission and contingent commission income

 

(5,620

)

 

 

(2,266

)

 

 

 

 

(11,808

)

 

 

(6,957

)

 

 

Less: Impact of F.X. rates

 

(445

)

 

 

2,564

 

 

 

 

 

(1,722

)

 

 

3,710

 

 

 

Less: Other conforming adjustments (2)

 

—

 

 

 

(2,074

)

 

 

 

 

—

 

 

 

(4,307

)

 

 

Total Organic Revenue & Growth Percentage

$

45,064

 

 

$

31,265

 

 

44.1

%

 

$

95,004

 

 

$

66,485

 

 

42.9

%

(1) Total Insurance Distribution revenue includes investment income

(2) Change in accounting in 1Q26 related to an MGA contracts on a net basis, normalizing the prior year for consistency.

Total Specialty P&C Insurance Production

Specialty P&C Insurance production includes gross premiums written by Octave’s Specialty P&C Insurance segment and premiums placed by the Insurance Distribution segment.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands)

 

 

2026

 

 

2025

 

% Change

 

 

2026

 

 

2025

 

% Change

Specialty Property & Casualty Insurance Gross Premiums Written

 

$

94,702

 

$

96,247

 

(2

)%

 

$

198,418

 

$

183,162

 

8

%

Insurance Distribution Premiums Placed (1)

 

 

306,667

 

 

249,912

 

23

%

 

 

733,500

 

 

483,098

 

52

%

Specialty P&C Insurance Production

 

$

401,369

 

$

346,159

 

16

%

 

$

931,918

 

$

666,260

 

40

%

(1) Excludes $7,700 of intersegment premiums placed with Specialty Property & Casualty Insurance during the three and six months ended June 30, 2026.

About Octave

Octave Specialty Group, Inc. is a global specialty insurance firm that builds, buys, and scales niche insurance distribution and underwriting businesses. With a focus on operational excellence, disciplined growth, and innovation, Octave is creating a harmonized portfolio of companies that deliver exceptional performance and long-term value for shareholders. For more information, visit www.octavegroup.com.

The Amended and Restated Certificate of Incorporation of Octave contains substantial restrictions on the ability to transfer Octave’s common stock. Subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), any person or group of persons shall become a holder of 5% or more of Octave’s common stock or a holder of 5% or more of Octave’s common stock increases its ownership interest.

Forward-Looking Statements

This press release, and any related oral statements, contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “plan,” “believe,” “anticipate,” “intend,” “planned,” “potential” and similar expressions, or future or conditional verbs such as “will,” “should,” “would,” “could,” and “may,” or the negative of those expressions or verbs, identify forward-looking statements. We caution readers that these statements are not guarantees of future performance. Forward-looking statements are not historical facts, but instead represent only our beliefs regarding future events, which may by their nature be inherently uncertain and some of which may be outside our control. These statements may relate to plans and objectives with respect to the future, among other things, which may change. We are alerting you to the possibility that our actual results may differ, possibly materially, from the expected objectives or anticipated results that may be suggested, expressed or implied by these forward-looking statements. Important factors that could cause our results to differ, possibly materially, from those indicated in the forward-looking statements include, among others, those discussed under “Risk Factors.” in our most recent SEC filed quarterly or annual report.

Any or all of management’s forward-looking statements, whether contained herein or in other publications, may prove to be incorrect and are based on management’s current belief or opinions. Octave Specialty Group’s (“OSG”) and its subsidiaries’ (collectively, “Octave” or the “Company”) actual results may differ materially from those expressed in, or implied by, these forward-looking statements, and there are no guarantees about the performance of Octave’s securities. Among events, risks, uncertainties or factors that could cause actual results to differ materially are: (1) the high degree of volatility in the price of OSG’s common stock; (2) uncertainty concerning the Company’s ability to achieve value for holders of its securities from the specialty property and casualty insurance business, the insurance distribution business, or related businesses; (3) greater than expected underwriting losses in the Company’s specialty property and casualty insurance business resulting in inadequacy of loss and loss expense reserves and the possibility that changes in reserves may result in further volatility of earnings or financial results; (4) credit risk throughout Octave’s business, including but not limited to issuers of securities in our investment portfolios, and exposures to reinsurers; (5) the Company’s level of indebtedness, including its ability to generate sufficient cash to service obligations, refinance existing debt, or obtain additional financing on acceptable terms, and the resulting impact on financial condition and operating flexibility; (6) dependence on third parties, including specialty insurance program partners, reinsurers, distribution relationships, and other service providers, and the risk of failures or disruptions in their performance; (7) inability to obtain reinsurance coverage on economic terms; (8) loss of key relationships for the production of business in our specialty property and casualty and insurance distribution businesses or the inability to secure such additional relationships to produce expected results; (9) the impact of catastrophic public health events, environmental or natural events, or political events, including as a result of global or regional conflicts; (10) restrictive covenants in agreements and instruments that impair Octave’s ability to pursue or achieve its business strategies; (11) regulatory risks, including disagreements with insurance regulators, changes in laws or regulations, and the Company’s ability to adapt to an evolving regulatory environment; (12) risks related to changes in the composition, valuation, or performance of the Company’s investment portfolio, including interest rate and foreign currency exchange rate fluctuations; (13) events or circumstances that result in the impairment of our intangible assets and/or goodwill that were recorded in connection with Octave’s acquisitions; (14) the risk of litigation, regulatory inquiries, investigations, claims or proceedings, and the risk of adverse outcomes in connection therewith; (15) system security risks, data protection breaches and cyberattacks; (16) our inability to attract and retain qualified executives, senior managers and other employees, or the loss of such personnel; (17) greater competition for our specialty property and casualty insurance business and/or our insurance distribution business; (18) loss or lowering of the AM Best rating for our property and casualty insurance company subsidiaries; (19) disintermediation within the insurance industry or greater competition from technology-based insurance solutions or non-traditional insurance markets; (20) changes in law or in the functioning of the healthcare market that impair the business model of our accident and health managing general agents; (21) failure to successfully execute business expansion initiatives, integrate acquired businesses, or realize anticipated benefits from such efforts and significant obligations under put rights granted in completed acquisitions; and (22) other risks and uncertainties that have not been identified at this time.

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