Aug 6, 2026, 4:58 PM ETFinancial Services

Octave Specialty Group — Second Quarter 2026 Earnings Summary

OSGOCTAVE SPECIALTY GROUP INC

Financial Performance

Total revenue for the quarter increased 51% to $83.0 million, compared to $55.0 million in the prior-year period.
Net loss to shareholders improved to $(14.4) million from $(20.5) million in the prior-year period.
Adjusted EBITDA to shareholders improved to $3.7 million from $(4.6) million in the prior-year period.
Adjusted net loss to shareholders improved to $(1.8) million from $(10.6) million in the prior-year period.
Consolidated net loss per diluted share was $(0.33), compared to $(1.51) in the prior-year period.
Total expenses increased 21% to $94.7 million, driven by higher general and administrative expenses and intangible amortization.
Long-term debt increased to $155.5 million as of June 30, 2026, from $117.1 million as of March 31, 2026.
Stockholders' equity attributable to common shareholders was $699 million ($15.52 per share) as of June 30, 2026.

Management expects the proprietary AI-driven underwriting platform to significantly accelerate underwriting decisions and bring additional MGAs to market more quickly.
The company is advancing data and AI initiatives designed to improve its operating platform and enhance underwriting and business production.
Management noted the Insurance Distribution segment's success reflects the successful 2025 acquisition of ArmadaCare and portfolio diversification against soft property market conditions.

Insurance Distribution Segment:
- Total revenue grew 77% to $58.4 million, with organic revenue growth of 44%.
- Net loss to shareholders was $(3.7) million, compared to $(7.7) million in the prior-year period.
- Adjusted EBITDA to shareholders increased to $9.8 million from $2.5 million in the prior-year period.
- Premiums placed increased 26% to $314.4 million.
Specialty P&C Insurance Segment (Everspan):
- Gross premiums written totaled $94.7 million (down 2%), while net premiums written totaled $23.1 million (up 52%).
- Net income was $1.1 million, compared to $0.4 million in the prior-year period.
- Adjusted EBITDA to shareholders increased to $1.8 million from $0.7 million in the prior-year period.
- The combined ratio decreased more than 600 basis points year-over-year to 100.6%, driven by a loss ratio reduction to 61.4%.
Corporate:
- Reported a net loss of $(11.6) million, compared to $(13.2) million in the prior-year period.
- Standalone net assets were $48 million as of June 30, 2026, including $26 million in cash and liquid securities.

The Insurance Distribution segment's growth was driven by the acquisition of ArmadaCare and organic growth, offsetting increasingly soft property market conditions.
The company successfully diversified its portfolio of MGAs.
Everspan's results have shown an encouraging trend since repositioning efforts began in the second half of 2024.

The company faces increasingly soft property market conditions.
The Specialty P&C segment experienced a 2% decline in gross premiums written.
The company continues to manage integration and restructuring expenses associated with acquisitions and repositioning.

Claude LeBlanc, President and CEO, described the Insurance Distribution business as delivering "another quarter of strong performance."
Management expressed encouragement regarding the trend in Everspan's results following repositioning efforts.
The tone reflects confidence in the strategic value of the ArmadaCare acquisition and the potential of the new AI-driven underwriting platform.

The company increased its ownership position in Octave Ventures (formerly Beat Capital Partners) to 70% from 60%.
A proprietary, enterprise, AI-driven underwriting platform was launched to convert unstructured submissions into decision-ready risks.
The acquisition of ArmadaCare in 2025 contributed significantly to the Insurance Distribution segment's revenue and EBITDA growth.
The company held a conference call on August 7, 2026, to discuss results and updated 2026 guidance.