OSG

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:30 a.m. ET Head of Investor Relations - Karen Beyer President and Chief Executive Officer - Claude LeBlanc Chief Financial Officer - David Trick Executive, Insurance Distribution - Naveen Anand Operator: Ladies and gentlemen, good morning, and welcome to the Octave Specialty Group Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Karen Beyer, Head of Investor Relations. Please go ahead. Karen Beyer: Thank you. Good morning, and welcome to Octave's Second Quarter 2026 Call to discuss financial results. Speaking today will be Claude LeBlanc, President and CEO; and David Trick, Chief Financial Officer. They will discuss the financial results of our business and the current market environment. After prepared remarks, we'll take your questions. Also available for Q&A today will be executives from our Insurance Distribution segment. For those of you following along on the webcast during the prepared remarks, we will be highlighting some slides from the investor presentation, which can be located on [ Octave's website ]. Our call today includes forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties, and it is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described in forward-looking statements in our earnings press release and in our most recent 10-Q and 10-K filed with the SEC. We do not undertake any obligation to update forward-looking statements. Also in our prepared remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliation to those non-GAAP measures are included in our recent earnings press release, operating supplement and other materials available in the Investors section on our website, octavegroup.com. Now we would like to turn the call over to Mr. Claude LeBlanc. Claude LeBlanc: Thank you, Karen, and good morning, everyone. I am pleased to report that Octave Group delivered another strong quarter, reflecting continued momentum across our platform and disciplined execution against our strategic priorities. Our insurance distribution business continued to scale at an attractive pace, supported by strong organic growth and the benefits of recent strategic investments. At the same time, our Specialty Insurance segment showed continued operational progress and improving financial performance. Turning to our results for the quarter. Our core insurance distribution business remains firmly on track with strong momentum demonstrated by revenue growth of 77% for the second quarter, which included organic growth of 44% and the impact of the acquisition of ArmadaCare. Our second quarter insurance distribution adjusted EBITDA was $10 million, representing a near fourfold increase year-over-year, bringing our year-to-date adjusted EBITDA to $35 million. This reflects an adjusted EBITDA margin of approximately 26%, which expanded over 12 percentage points from 13% a year ago. Based on the continued and accelerated growth of our Insurance Distribution segment, we are adjusting our 2026 guidance for our 2 key metrics, organic growth and adjusted EBITDA. David Trick will provide more details on all of our guidance adjustments later in the presentation. Included in these results is strong performance from our class of 2024 and 2025 MGAs, which continued their growth trajectory this quarter. We remain confident that these MGAs, which remain in the early stages of scaling will drive material EBITDA expansion as they scale through 2028 and beyond. Our Specialty Property & Casualty segment continued to benefit from the early actions we have taken to reposition the platform, delivering adjusted EBITDA of $1.8 million for the quarter. We continue to strengthen the quality of Everspan's portfolio while positioning the company to generate increasingly attractive earnings as premium growth and underwriting improvements continue to compound. The business remains well positioned to support both third-party programs and select active sponsored opportunities while delivering sustainable long-term value for shareholders. In conjunction with this, we are investing in leadership and specialized capabilities needed to support Everspan's growth. As announced earlier this week, we have hired 3 new senior leaders at Everspan Group; David Kenyon, Head of Reinsurance, who recently joined the company; and Bevan Greibesland, Chief Underwriting Officer; and Clay Stewart, Chief Operating Officer, who will be joining us shortly. David, Bevan and Clay each bring deep expertise in their respective fields. Together, it will strengthen our ability to scale Everspan while maintaining our focus on underwriting discipline, strong partnerships and operational excellence. Turning to the market environment. Broadly, the U.S. and global P&C insurance markets continue to soften. Property markets are being shaped by abundant capacity. The wholesale large property segment is leading the pullback with rates down 10% to 20% year-on-year, while low cat-exposed SME property markets are experiencing more muted softening. Notably, this is happening after years of increases, which gave rise to a strong technical price foundation. As a result, notwithstanding these rate reductions, price adequacy remains intact for our well-underwritten portfolios. The London market large casualty products are operating against a backdrop of robust competitive pressures, although they are demonstrating better rate resilience than large property lines. By contrast, casualty SME classes, including general liability and certain commercial auto risks, as well as targeted specialty classes, continue to show mid-single to double-digit rate progression and represent an attractive opportunity for expansion. A&H continues to benefit from constructive positive rate trends and strong secular growth in certain markets. In this market environment, our portfolio strategy remains a key differentiator. We have intentionally built a diversified platform across A&H, Specialty P&C and select property lines, giving us multiple sources of growth and reducing our dependence on any single product class or market cycle. This diversification is especially important in the current environment where our A&H businesses continue to provide a growing earnings base that is largely uncorrelated with broader P&C pricing cycles. This breadth allows us to manage concentration risk, reposition where appropriate and continue pursuing profitable growth in areas where market fundamentals remain attractive. Equally important, our MGA model is built around experienced underwriting leaders who have managed through prior market cycles. Their expertise, combined with disciplined portfolio management and strong capacity relationships enables us to responsibly deploy underwriting capital on behalf of our partners while protecting margins and supporting sustained growth. Beyond our portfolio diversification and experienced underwriting leadership. Our growth is supported by the profile of our portfolio companies and our portfolio bias towards areas where growth opportunity remains strong. Since the start of 2024, Octave has launched 9 MGAs, representing 40% of our MGA portfolio. Following an MGA launch, there is an inherent strong growth trajectory, which typically continues for at least 5 years and in many cases, well beyond that window. MGA launches typically breakeven and start to deliver positive EBITDA after 18 to 24 months. In contrast, our mature MGAs are driving growth through a deliberate proactive strategy, expanding distribution, repositioning towards the strongest underwriting opportunities and broadening capacity access within core products. We are leveraging MGA and corporate leadership expertise alongside targeted talent recruitment to drive product growth. Bolt-on teams, a strategy we're executing across multiple platforms provides an efficient low-cost route to growth, rivaling smaller new MGA launches. Taken together, the diversity of our portfolio, the profile of our MGAs and the quality of our underwriting talent give Octave a differentiated ability to perform through market cycles. We believe that this positions us well to deliver above-market organic growth today while preserving meaningful upside as market conditions evolve. Finally, a brief update on our AI and data strategy. We view AI as both a growth enabler and an efficiency tool. Applied thoughtfully, it strengthens our underwriting capabilities, improves speed and consistency across our enterprise and helps our teams focus their time on high-value risk selection and client engagement. During the second quarter, we collaborated with Cytora to develop and launch our proprietary AI-driven underwriting platform, turning submissions into decision-ready risks, allowing us to review opportunities faster and with greater underwriting quality. It is currently active in a number of our U.S. MGAs that write management, financial and professional liability programs. To date, the results are very encouraging. In one clear example of underwriting efficiency and acceleration, we have reduced submit to quote time from several hours to approximately 7 minutes. Over time, we expect this capability to reduce manual effort, accelerate underwriting decisions, improve service levels and bring additional MGAs to market more quickly. We expect to complete the implementation across our remaining applicable U.S. MGAs in the second half of this year. I will now turn the call over to David to review our second quarter results. David? David Trick: Thank you, Claude, and good morning, everyone. For the second quarter of 2026, Octave reported a net loss to shareholders of $14.4 million or $0.33 per share, an improvement of over $6 million or $0.09 per share compared to the net loss to shareholders of $20.5 million or $0.42 per share reported in the second quarter of 2025. Consolidated EBITDA and adjusted EBITDA to shareholders improved to a negative $1.7 million and a positive $3.7 million compared to a negative $9.8 million and negative $4.6 million, respectively, in the second quarter of 2025, representing an $8.1 million and $8.3 million improvement, respectively. The consolidated adjusted net loss to shareholders was $1.8 million or $0.04 per share compared to a loss of $10.6 million or $0.22 per share in the second quarter of 2025, an improvement of $8.7 million or $0.18 per share. The results for the quarter led by insurance distribution also reflect improved results at Everspan as well as our corporate operations. Total revenue for the Insurance Distribution segment grew 77% to $58.4 million in the second quarter of 2026. Organic growth of 44% and the October 2025 acquisition of ArmadaCare were the drivers of the substantial increase in revenue. Organic growth was aided by the diversity of our business, including de novos launch over the last 2 years in certain specialty product lines, which more than offset some of the softness we experienced in certain markets such as energy and D&F property. The Insurance Distribution segment's net loss to shareholders decreased to $3.7 million in the quarter compared to a net loss of $7.7 million in the prior year quarter, an improvement of $4 million. Insurance Distribution's adjusted EBITDA to shareholders grew nearly fourfold to $9.8 million compared to $2.5 million in the prior year period, driving related margins to 16.8% from 7.6%, respectively. Adjusted net income to shareholders swung positive to $4.6 million compared to a net loss of $3 million in the second quarter of 2025. Our insurance distribution results for the quarter were driven by a number of factors, including the October 2025 acquisition of ArmadaCare, organic growth across our diverse group of MGAs, higher profit commissions, reflecting continued underwriting discipline, the acquisition of an additional 10% of Octave Ventures at the end of the first quarter and a near $3 million reduction in interest expense resulting from both the reduction of debt and lower financing costs. Our results for the quarter also reflect our continued investment in de novo MGAs, which suppressed EBITDA to shareholders by about $1.1 million in the quarter, accounting for about 2 points of EBITDA margin. Turning to Everspan. Gross and net premiums written and premiums earned in the quarter were $95 million, $23 million and $22 million, down 2% and up 52% and 34%, respectively. The actions we've been taking to reposition Everspan helped bring down our current quarter loss ratio to 61.4% with our active programs running at about a 59% loss ratio. This represents a 640 basis point improvement in our reported loss ratio compared to the second quarter of 2025. Our G&A expense ratio also declined year-over-year to 9.4% from 16%, driven by lower expenses and earned premium growth. Reduction in the loss and G&A expense ratios were partially offset by higher acquisition costs due to embedded sliding scales on certain programs that we believe will provide more stable underwriting results going forward. Together, these results led to a reduction in the combined ratio to 100.6% compared to 106.7% last year, above our long-term objectives, but progress towards our goal. For the second quarter of 2026, Everspan produced pretax income of $1.2 million and adjusted EBITDA was $1.8 million, double and nearly triple, respectively, the results from the prior year period. Continued expense reduction and containment initiatives at corporate also contributed positively to our improved second quarter results. Reported GAAP corporate expenses declined from $14 million in the second quarter of 2025 to $12 million this quarter, a 14% improvement. In addition, adjusted expenses declined to $7.9 million from $8.3 million in the prior year comparable period. The difference between reported expenses and adjusted expenses in the current quarter was mainly attributable to $1.1 million of acquisition, integration, severance and restructuring expenses and $2.7 million of equity compensation. We continue to evaluate all expenses in an effort to trend our adjusted expenses downward toward our longer-term goals. Turning to guidance. We are updating several key items that reflect the continued strength of our insurance distribution business and the ongoing evolution of our platform. Within our Insurance Distribution segment, we are raising guidance for both of our key operating metrics. We now expect organic growth of 25% plus, up from our prior expectation of 20% plus and are increasing adjusted EBITDA guidance to $45 million from $40 million. These increases reflect the diversity and continued momentum of our distribution platform. At Everspan, we are revising our adjusted EBITDA guidance to $6 million from $7.5 million. This change is primarily driven by higher-than-expected acquisition costs associated with the mix of newer programs we are onboarding. While these costs impact near-term profitability, we believe these programs will produce more attractive long-term economics through lower and more stable loss ratios, supporting a stronger and more durable earnings profile over time, particularly as we build scale. $6 million of adjusted EBITDA would represent a 58% increase over 2025's adjusted EBITDA of $3.8 million. We are also updating our adjusted net income per share guidance to a range of $0.15 to $0.20 per share compared with our prior expectation of $0.50 per share. This revision reflects updated estimates for interest expense, depreciation, taxes and a more refined allocation of noncontrolling interest across the business. Importantly, our outlook continues to represent a significant milestone for the company. We expect 2026 to be the first year we generate positive adjusted net income per share, excluding the legacy financial guarantee business since launching our P&C strategy in 2021. At the midpoint of our revised guidance, this represents approximately a $0.76 per share improvement from our 2025 adjusted loss of $0.58 per share, driven by the continued growth and increasing earnings power of our insurance distribution platform. All other guidance remains unchanged. I will now turn the call back to Claude. Claude LeBlanc: As we move into the second half of 2026, I'm confident in the strength, scalability and resilience of our business model. While the market environment remains dynamic, we are executing with discipline, maintaining our focus on underwriting quality, portfolio management and responsible growth. These results reinforce our confidence in Octave Group's long-term opportunity. We believe the foundation we are building positions us well to deliver sustained profitable growth and advance our vision of becoming a leading specialty insurance distribution company. Operator, I would now like to open the call to questions. Operator: [Operator Instructions] And our first question will come from Maxwell Fritscher with Truist Securities. Maxwell Fritscher: I'm calling in for Mark Hughes. How would you characterize the pipeline for start-up MGAs? And then how is the pipeline for the class of 2027 shaping up, if you have a line of sight there? Claude LeBlanc: Max, Yes, so where we stand for '26, I think we indicated that we thought there would be a lower number of MGAs launched this year. We haven't launched any to date, although we still expect to, but we indicated 1 or 2 for '26. This came off the large number that we launched in the class of '24 and '25, where we launched 9, representing roughly 40% of our total MGA portfolio. So it was our expectation to keep that number lower this year as we focus on the large number of MGAs launched in that period. Roughly close to 75% of our organic growth this quarter was delivered by the class of '24 and '25. So those MGAs are just beginning at the early stages of scaling their platforms and really taking hold of the growth and also beginning to deliver EBITDA. Roughly half the MGAs of that class are delivering EBITDA at this point in time, and we expect more to start contributing and contributing much more meaningfully as we get through to the end of the year and into '27. So right now, as we kind of look at the trajectory in terms of our target EBITDA looking at '28 that we put out of $80 million, a significant percentage of that will come out of the class of '24, '25. But coming back to your specific question on '26 and '27, we're still targeting a relatively modest number of MGAs in '27. I think we're probably in the range of 2 to 4 in terms of launch. We do have a pipeline of start-ups that we continuously evaluate for launching. We're very selective, of course, in choosing the MGA portfolios that we're looking at. But we've also been refining our integrated operational platform that we believe will enhance our ability to launch MGAs even quicker than we've had in the past and get them to scale sooner, which has also been a major initiative that we've been focused on in '26 and have made tremendous progress in the last number of months. So again, the pipeline is deep, but we are -- the class of '24, '25 and the focus on those. And as I mentioned in my prepared remarks, the fact that we're adding teams to those MGAs as well, not just those, but others that we acquired has been an alternative way to grow and scale what I'll say, the small to midsized MGA launches. We're able to get them up and running much quicker by adding teams to existing MGA platforms. And that has been a key source of growth also for this year as well. Maxwell Fritscher: Great. That's helpful. And then in terms of capacity, what are your observations around your current partners and then the market in general's appetite around providing more capacity? Claude LeBlanc: Maybe I'll let Naveen Anand, who's with us this morning, to answer that. Naveen Anand: Good morning, Max. So overall, I think from a capacity standpoint, it really goes out to underwriting results and our underwriting results and performance has generally been good. And as a result, we see capacity being attractive and attractive to our portfolios and our platforms. And so we expect that we'll continue to see strong capacity support as we move forward into '26, remaining in '26 and certainly into '27 across both our start-up platforms and supporting our venture businesses as well as our more established MGAs in our portfolio. Claude LeBlanc: And I'd just add that we are continuing to broaden and diversify our capacity. Again, our model is a curated capacity model, and we continue to add capacity partners. Most quarters, we're adding at least one or more. So that's part of our strategy and something that we will continue to progress as we scale the platform. Maxwell Fritscher: And then I guess turning to rates, I'll start with non-cat property. What sort of pricing are you getting there? And then when you look at where we are in the cycle, do you think we're anywhere near floor? Is -- what are your observations on that market? Naveen Anand: Max, this is Naveen again. Generally, we're seeing rate declines in the sort of 10% to 20% range, as Claude has mentioned in that sort of property lines, both primarily in the large account property lines and more on the cat exposed property lines. I expect we're still in the relatively early innings, assuming -- obviously, things can change quickly if there are other large cat events and things change the market from that standpoint. But at this point, we expect that they'll continue to soften as we move forward into the remainder of '26 into '27, particularly the cat events that don't happen from that standpoint. Claude LeBlanc: Yes. And as we mentioned, our portfolio is much more geared to the non-cat and non-large account more of the SME side of the business mix. So I think for us, when we kind of look at the average, it's probably closer to 5% or 10% or the lower end of that range, just given the business mix that we -- our portfolios are focused on. And we still are having strong growth in some of our property MGAs, again, the ones that are focused on the E&S SME space and again. So it is a mix for us, and I'd say that more muted in terms of the price impacts, although there are a few that, as Naveen mentioned, have been in the flow of the larger account D&F markets that have had some impact that are more in line with market, but that is a small percentage of our portfolio. Maxwell Fritscher: And at Everspan, I know excess liability is a decent part of the mix there. What are your observations pricing there? Is there any incremental competition you're seeing? If so, where do you see that coming from? And do you still think pricing is running ahead of loss trends? Naveen Anand: Yes. Max, this is Naveen again. Generally, we're still seeing rate -- positive rate environment in the excess liability. It is moderating a bit in terms of -- as the quarter goes on, but still generally in line and better than loss costs from that standpoint. And obviously, it's dependent on portfolio by portfolio on that basis. But for the portfolio that we have and the targets that we have in Everspan, we're generally seeing positive rate environment that's exceeding loss cost. Claude LeBlanc: And I'd say another trend with Everspan is we are seeing a broadening of programs that we're seeing. I think also sign of the times with the market conditions that we're seeing, again, certainly some casualty but more specialty programs that are differentiated in the marketplace. So I think the selection and breadth of programs that we're seeing has improved and also the pipeline has improved overall. So I think the Everspan platform, we do see some strong growth for the year. Again, we're not chasing growth, and we're being very selective there as well, but we are seeing a very much higher quality and deeper and broader breadth of opportunities in the program space for Everspan. Maxwell Fritscher: And then last one for me, and I'll hop back in the queue. But is there any associated investment or costs related to the rollout of the new AI tool to your remaining MGAs? Claude LeBlanc: Yes. So we are -- as I mentioned on the prior calls, we the implementation, customization and also the development of the AI tools that we have in our platform, we're in the low to mid-single-digit millions for the year target for that. When you add the additional costs that we're encountering in connection with technology upgrades and also the implementation of technologies across the platform to support that, that is an additional amount that is also in the low to mid-single-digit millions. So those are going to be costs that are more onetime in nature. Again, I always say that there could be obviously additional initiatives that we'll be looking at next year, certainly. But for this year, I think this will be one of the larger additions in terms of AI and technology that we have in our sort of forecast period. And we will see some of those costs begin to peel off early next year. And by mid next year, I think a meaningful percentage of the millions will be discontinued. And we also expect to benefit from those investments, obviously, and there'll be significant cost benefits as well as revenue benefits that will be coming out of that, that will far offset any of the implementation costs that we put in to date. Operator: [Operator Instructions] We'll go next to Tommy McJoynt with KBW. Thomas Mcjoynt-Griffith: The first one here, with ArmadaCare and some of your other MGAs, the accident and health is a major line of business for you guys. Market commentary tends to generalize pricing and conditions talking about the property and casualty buckets, but A&H does have some of its own drivers. So can you spend a minute and just talk about the market conditions that you're seeing in A&H and as that relates to inputs to your future organic growth opportunity in that line? Naveen Anand: Sure. Tommy, this is Naveen. A couple of points. A&H is a pretty broad market segment, right? And from our focus is -- ArmadaCare is focused on the excess benefits and the benefits area. And then our exchange benefits platform is primarily focused on the employer stop loss. And then we've got some other focus in other ancillary lines within A&H. For our key areas, we're seeing strong secular growth. There are strong sort of underlying trends that are driving both the ESL market and the benefits market. And those growth trends are -- will continue to support organic growth as we move forward. In addition to that, we're seeing positive rate environment in those sectors as well, generally in the double-digit range, low double-digit range, low teens to high single digits. And again, that will continue to -- we expect that to continue as we move forward into '26 to '27 based on the sort of underlying trends within those segments. It's an important part of our portfolio. It's about 1/3 of our portfolio today and an important contributor to our results and ballast to some of the challenges in the broader P&C cycles. Thomas Mcjoynt-Griffith: Got it. And then switching over, the Everspan book continues to charge ahead toward its mid-teens ROE at scale. Can you just remind me what your definition of scale is in that business? And is there any chance that fronting economics could change for either better or worse over the coming years as you gain scale? And then just lastly, does that ROE that you're targeting equate to a specific combined ratio relative to the 97% adjusted combined that you did in the first half of the year? Claude LeBlanc: Yes. So in terms of scale, I think the way we had, again, modeled out the growth of the platform, given the way that we've staffed and implemented systems and technologies to support a business that was always intended to be a hybrid platform, not a pure fronting platform. We do have a higher overhead costs associated with the business. So our target to scale was somewhere north of $500 million of premium, which we'll be approaching that this year, but not quite there. So I think -- and from there forward, I think we'll start seeing a lot less impact of that fixed cost drag on the combined ratio and earnings and EBITDA going forward. But I think once we get past that, I think we still probably this year, we'll have a few points of drag associated with scale. But again, that will begin to ameliorate next year. I think this year, we're targeting being in the mid-4s in premium? David Trick: 410 is... Claude LeBlanc: 410 our guidance. So 410 is what we're targeting. So again, I think we'll be in that range, possibly a little higher. But next year, I would expect us to be closer to that $500 million scale number. In terms of the second question, maybe I'll let David hit on the combined. David Trick: On the combined ratio, what we've said in the past is that we're looking at sub-95% combined ratio as a casualty-focused business, you would expect our loss ratios to be a little higher than businesses that have heavy property books and -- but more cat exposed. We've added some property exposure to the portfolio at this point, which is we're certainly starting to see the benefit of in the loss ratio and expect to see that further in the remainder of the year. But I would say between 90% and 95% is what our target is, which is both a function of getting those loss ratios down and more stable and what Claude mentioned in terms of just continuing to scale the business from an expense ratio standpoint. Thomas Mcjoynt-Griffith: And then just last question, to switch topics one more time. A lot of brokers and MGAs have -- are benefiting from strong profit commissions or contingents. You guys had a nice uptick in the first half of the year. Was any of the change in guidance contemplating a higher level of profit commissions? And then do you guys have line of sight to what you think that contingent could be in the second half of the year, either on an absolute dollar basis or as a percentage of distribution revenue? David Trick: Yes. We -- the way we account for our profit commissions, we scale into our numbers that we're seeing. So we try to avoid a lot of volatility. So I think based on our calculations, we had expected in our original guidance included profit commissions close to the levels that we're seeing here today. We baked in a little bit additional profit commissions for one of our businesses, but I wouldn't say it was material. And so we think we'll have a good year on PCs, particularly for the lines of businesses that are driving it, which tend to have more stable loss ratios. Operator: And moving next to Mark Hughes with Truist Securities. Mark Hughes: My flight hasn't left yet, so I thought I'd sneak one in. On the Everspan, you described hiring some new executive talent. It sounds like your growth outlook for 2027 is pretty robust. I think you added a number of programs just this quarter. Can you just talk about the quality control on that underwriting? That's obviously a point of risk for anyone with programs and new programs. How do we -- what are you doing to give yourself confidence that the underwriting there is going to be high quality? Claude LeBlanc: Yes. So again, I think the talent we're bringing in, Bevan, who has deep experience and have been a Chief Underwriting Officer and her breadth of experience was actually one of the things that attracted us to her, and she's -- that experience will be coming. She's replacing Darwin, who was in that role as Chief Underwriting Officer and Chief Reinsurance Officer. Darwin also has extensive experience, years of experience. And the broadening of the team and the depth of the team, along with our claims team, which is also very important in terms of managing our loss ratios and then the underwriting, I think, has really expanded dramatically over the last year. So I think we feel very confident of the experience and breadth of the team. And to the extent there are programs that come in that we require additional diligence, we also don't shy away from reaching out and bringing in additional resources and expertise to help us on the review and underwriting of the programs. I think our approach to the underwriting, again, we really are a gross line underwriter. So we really focus on the full program. Again, we're not a pure front platform. So I think from our perspective, we were robust. I think we're now that much more robust. And the claims oversight that is done and managed throughout program monitoring and the audits that we do on programs right after 90 days from commencement and thereafter yearly, if not more, depending on the program, I think gives us confidence that our selections will be good as well as our ongoing oversight and monitoring of exposures. Operator: And that concludes our question-and-answer session. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day. Before you buy stock in Octave Specialty Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Octave Specialty Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Octave Specialty Group (OSG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Octave Specialty Group, Inc. OSG used its second-quarter 2026 earnings call to emphasize accelerating Insurance Distribution growth while acknowledging weaker near-term earnings expectations elsewhere in the platform. Revenues of $83 million topped the Zacks Consensus Estimate of $81 million. However, the adjusted loss of $0.04 per share was wider than the consensus mark for a loss of $0.01. Guidance changes became the bigger focus. Octave Specialty Group, Inc. price-consensus-eps-surprise-chart | Octave Specialty Group, Inc. Quote Executive vice president and CFO David Trick raised 2026 Insurance Distribution organic growth guidance to at least 25% from at least 20% and increased adjusted EBITDA guidance to $45 million from $40 million. President and CEO Claude LeBlanc tied the stronger outlook to a diversified MGA portfolio and the scaling of newer businesses. Second-quarter organic growth was 44%, while adjusted EBITDA to shareholders reached $9.8 million. LeBlanc said that MGAs launched in 2024 and 2025 remain early in their scaling curves, keeping management focused on turning revenue growth into greater EBITDA contributions through 2027 and 2028. Trick reduced Everspan's 2026 adjusted EBITDA guidance to $6 million from $7.5 million, citing higher acquisition costs tied to newer programs. Trick also lowered adjusted net income per share guidance to $0.15-$0.20 from $0.50. He cited updated interest expense, depreciation, taxes and a refined allocation of noncontrolling interests. Despite the reset, Trick said that 2026 is still expected to be the first year of positive adjusted net income per share, excluding the legacy financial guarantee business, since the P&C strategy began in 2021. A Truist Securities analyst asked about the startup MGA pipeline. LeBlanc said that OSG still expects one or two launches in 2026 and two to four in 2027. LeBlanc said that roughly 75% of second-quarter organic growth came from the 2024 and 2025 MGA classes, with about half of those businesses already producing EBITDA. He described the pipeline as deep but emphasized selectivity. LeBlanc also said that adding teams to existing MGA platforms can provide a faster route to growth than launching entirely new entities. A Truist Securities analyst pressed management on property pricing. Cirrata Group president Naveen Anand said that large-account and catastrophe-exposed property rates were declining about 10-20%, while LeBlanc put Octave's portfolio impact closer to 5-10%. A KBW analyst asked about Everspan's scale economics. LeBlanc said that management defines scale as more than $500 million of premium, versus 2026 guidance of about $410 million, and expects the business to move closer to that level in 2027. Trick stated that Everspan's long-term combined-ratio target remains 90-95%. The second-quarter combined ratio improved to 100.6% from 106.7% a year earlier. LeBlanc said the company's AI underwriting platform reduced submission-to-quote time from several hours to about seven minutes in one application. LeBlanc expects implementation across remaining applicable U.S. MGAs during the second half of 2026. He placed annual AI customization and implementation costs in the low-to-mid-single-digit millions, with technology upgrades adding a similar amount. He said that much of that spending is one-time, with costs beginning to decline early in 2027 and a meaningful portion ending by midyear as Octave pursues efficiency and revenue benefits. LeBlanc closed the call by emphasizing underwriting quality, portfolio management and responsible growth as market conditions soften. Management's posture combines faster MGA scaling and broader capacity access with selectivity at Everspan, while accepting lower near-term earnings guidance to support what executives described as stronger long-term program economics. OSG carries a Zacks Rank #3 (Hold) at present. Its Momentum Score of A is strongest, while it has a Value Score of C, a Growth Score of C and a VGM Score of C. Under the Zacks framework, A ranks above B and the Style Score is designed to complement the Zacks Rank. Zacks emphasizes Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks paired with A or B Style Scores as the preferred combinations, while Zacks Rank #3 stocks can still be held under the framework. OSG's current mix is therefore outside those preferred combinations. The Zacks Rank can change as analyst estimates are revised following the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Octave Specialty Group, Inc. (OSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Octave Specialty Group, Inc. OSG reported a second-quarter 2026 adjusted loss of 4 cents per share, narrower than the year-ago loss of 22 cents but wider than the Zacks Consensus Estimate of a 1-cent loss by 300%. Revenues rose 51% year over year to $83 million, beating the consensus estimate by 2.46%. Results benefited from strong Insurance Distribution growth and improving Everspan performance. Everspan's net premiums earned increased 34% year over year to $21.7 million. Octave Specialty Group, Inc. price-consensus-eps-surprise-chart | Octave Specialty Group, Inc. Quote Insurance Distribution revenues climbed 77% year over year to $58.4 million. Premiums placed increased 26% to $314.4 million, while organic revenue growth was 44.1%, reflecting growth across the Managing General Agent (MGA) portfolio and contributions from businesses launched over the past two years. The October 2025 ArmadaCare acquisition also supported the top line. Adjusted EBITDA attributable to shareholders surged to $9.8 million from $2.5 million a year earlier. The related margin expanded 920 basis points to 16.8%. Higher profit commissions and a larger ownership position in Octave Ventures also aided performance. Everspan generated revenues of $26.4 million, up 23% year over year. Gross premiums written dipped 2% to $94.7 million, while net premiums written jumped 52% to $23.1 million, reflecting a higher level of retained business.The combined ratio improved 610 basis points to 100.6%, helped by a 640-basis-point decline in the loss ratio to 61.4%. The expense ratio edged up 30 basis points to 39.2%. Adjusted EBITDA attributable to shareholders increased 158% to $1.8 million. Total expenses increased 21% year over year to $94.7 million. General and administrative expenses rose to $51.4 million from $40.5 million, while intangible amortization and depreciation increased to $12.3 million from $9.7 million.Interest expense declined to $2.8 million from $5.6 million. Consolidated adjusted EBITDA attributable to shareholders improved to $3.7 million from a loss of $4.6 million, while adjusted net loss attributable to shareholders narrowed to $1.8 million from $10.6 million. Management raised its 2026 Insurance Distribution organic growth outlook to at least 25% from at least 20%. Adjusted EBITDA guidance for the segment was increased to $45 million from $40 million, reflecting continued momentum and portfolio diversity. However, Everspan's adjusted EBITDA forecast was reduced to $6 million from $7.5 million because of higher acquisition costs tied to newer programs. OSG also lowered its adjusted net income per share outlook to 15-20 cents from 50 cents, reflecting updated interest, depreciation, tax and noncontrolling-interest assumptions. OSG ended June with total assets of $2.28 billion, compared with $2.27 billion as of March-end. Cash and cash equivalents declined to $79.1 million from $93.5 million, while total investments decreased to $241.7 million from $254.4 million.Long-term debt increased to $155.5 million from $117.1 million. Stockholders' equity attributable to common shareholders declined to $698.8 million from $712.6 million, with book value per share falling to $15.52 from $15.83. Management said nearly 75% of second-quarter organic growth came from MGAs launched in 2024 and 2025. Those nine launches represent about 40% of Octave's MGA portfolio, with roughly half already generating EBITDA. The company still expects one or two MGA launches in 2026 and targets two to four in 2027. Octave also continued rolling out its AI-driven underwriting platform. In one use case, the technology reduced submission-to-quote time from several hours to about seven minutes. Management expects implementation across the remaining applicable U.S. MGAs during the second half of 2026. OSG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.AXIS Capital Holdings Limited AXS reported second-quarter 2026 operating income of $2.84 per share, which missed the Zacks Consensus Estimate of $3.23 and fell 12.1% year over year. Total operating revenues of $1.7 billion marginally missed the Zacks Consensus Estimate by 1%. The top line rose nearly 7.4% year over year on higher premiums earned.Net premiums written decreased 1.8% to $1.6 billion, reflecting lower premiums in the Reinsurance segment, partially offset by growth in the Insurance segment. AXIS Capital’s underwriting income of $142.9 million decreased 24.5% year over year. The combined ratio deteriorated to 93.1 in the quarter from 88.9 a year ago, reflecting higher catastrophe and weather-related losses. The Zacks Consensus Estimate was pegged at 93.2. Our estimate was 93.8.Cincinnati Financial Corporation's CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%.Earned premiums climbed 6.3% year over year to $2.6 billion, driven by higher renewal pricing, increased insured exposures and new business growth. The figure marginally missed the Zacks Consensus Estimate by 1.5%.The combined ratio deteriorated 550 basis points year over year, underperforming the consensus estimate of 97.1. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Octave Specialty Group, Inc. (OSG) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Octave Specialty Group, Inc.? Here are five stocks we like better. Second-quarter results improved: Octave Specialty Group narrowed its net loss to $14.4 million from $20.5 million, while adjusted EBITDA turned positive at $3.7 million versus a $4.6 million loss a year earlier. Insurance Distribution drove growth: Revenue rose 77% to $58.4 million, and segment adjusted EBITDA nearly quadrupled to $9.8 million. The company raised its full-year outlook for organic growth to above 25% and adjusted EBITDA to $45 million. Everspan continued to improve but guidance was reduced: Its combined ratio improved to 100.6% and it generated $1.8 million in adjusted EBITDA, though full-year Everspan EBITDA guidance fell to $6 million due to higher acquisition costs. Octave is also investing several million dollars in AI underwriting tools intended to shorten submission-to-quote times and support future efficiency. Octave Specialty Group (NYSE:OSG) reported improved second-quarter results as growth in its Insurance Distribution segment and progress at its Everspan specialty insurance platform narrowed its net loss and lifted adjusted EBITDA. For the second quarter of 2026, the company reported a net loss to shareholders of $14.4 million, or $0.33 per share, compared with a $20.5 million loss, or $0.42 per share, a year earlier. Consolidated adjusted EBITDA improved to positive $3.7 million from negative $4.6 million in the prior-year quarter. Adjusted net loss to shareholders narrowed to $1.8 million, or $0.04 per share, from $10.6 million, or $0.22 per share. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling President and CEO Claude LeBlanc said the quarter reflected continued momentum in distribution operations, as well as improving financial performance at the company’s specialty insurance business. Insurance Distribution revenue increased 77% year over year to $58.4 million. The growth included 44% organic growth and the contribution from Octave’s October 2025 acquisition of ArmadaCare. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Adjusted EBITDA attributable to shareholders in the segment nearly quadrupled to $9.8 million from $2.5 million a year earlier, while the adjusted EBITDA margin increased to 16.8% from 7.6%. Adjusted net income attributable to shareholders was $4.6 million, compared with a $3 million adjusted net loss in the second quarter of 2025. Chief Financial Officer David Trick said results were supported by ArmadaCare, organic growth across the company’s managing general agents, higher profit commissions, the acquisition of an additional 10% stake in Octave Ventures, and nearly $3 million of lower interest expense. The company also continued investing in recently launched MGAs, which reduced Insurance Distribution EBITDA by about $1.1 million during the quarter. → No Hangover: Revisiting Microsoft One Week After Earnings LeBlanc said MGAs launched in 2024 and 2025 accounted for roughly 75% of organic growth during the quarter. About half of that group is now generating EBITDA, he said, with further contributions expected by the end of 2026 and into 2027. Octave expects to launch one or two MGAs in 2026 after launching nine during 2024 and 2025. For 2027, management is targeting a relatively modest two to four launches, while also pursuing growth by adding teams to existing MGA platforms. At Everspan, Octave’s specialty property and casualty operation, gross premiums written were $95 million in the quarter, while net premiums written and premiums earned were $23 million and $22 million, respectively. Gross premiums written declined 2%, while net premiums written rose 52% and premiums earned increased 34%. Everspan’s reported loss ratio improved 640 basis points from the prior-year period to 61.4%. Its active programs operated at about a 59% loss ratio, according to Trick. The general and administrative expense ratio declined to 9.4% from 16%, though higher acquisition costs partly offset the improvement because of sliding-scale arrangements in newer programs. The combined ratio improved to 100.6% from 106.7% a year earlier. Everspan generated $1.2 million in pretax income and $1.8 million in adjusted EBITDA, compared with roughly half and one-third of those respective levels in the prior-year period. Management said Everspan is targeting scale at more than $500 million in premium. The company’s current guidance calls for $410 million in premium this year, with LeBlanc saying it could be somewhat higher. Trick said the long-term target combined ratio is below 95%, with a range of 90% to 95% envisioned as the business gains scale and loss ratios stabilize. Octave also announced senior leadership additions at Everspan, including David Kenyon as head of reinsurance. Bevan Greibesland is set to join as chief underwriting officer and Clay Stewart as chief operating officer. The company raised its full-year Insurance Distribution outlook, now expecting: Organic growth of more than 25%, up from prior guidance of more than 20%. Adjusted EBITDA of $45 million, up from $40 million. Octave reduced Everspan adjusted EBITDA guidance to $6 million from $7.5 million, citing higher-than-expected acquisition costs tied to the mix of new programs being onboarded. The company said those programs are expected to provide more attractive long-term economics through lower and more stable loss ratios. The company also lowered adjusted net income per share guidance to a range of $0.15 to $0.20, from a prior expectation of $0.50. Trick attributed the revision to updated estimates for interest expense, depreciation, taxes and allocations of non-controlling interests. Octave said it expects 2026 to be its first year of positive adjusted net income per share, excluding its legacy financial guarantee business, since launching its P&C strategy in 2021. Management said the broader property and casualty insurance market continues to soften, particularly in wholesale large-property business, where rates were down 10% to 20% year over year. Octave said its exposure is more concentrated in small and midsize enterprise and non-catastrophe property business, where pricing pressure has been more muted. The company said certain casualty small-business lines, targeted specialty classes and accident and health markets continue to provide growth opportunities. Naveen Anand, president of Octave Partners, said accident and health represents about one-third of the company’s portfolio and has seen high-single-digit to low-double-digit rate increases in its key markets. Octave also said it launched an AI-driven underwriting platform developed with Cytora at several U.S. MGAs writing management, financial and professional liability programs. LeBlanc said the platform reduced submission-to-quote time in one example from several hours to about seven minutes. The company plans to extend the technology to its remaining applicable U.S. MGAs in the second half of 2026. LeBlanc said spending on AI underwriting tools, implementation and customization is expected to be in the low- to mid-single-digit millions this year, with additional technology upgrades also adding low- to mid-single-digit millions in costs. He said a meaningful portion of those costs is expected to end by the middle of next year. Ambac Financial Group, Inc (NYSE:AMBC) is a specialized financial services holding company headquartered in New York City. Through its principal subsidiary, Ambac Assurance Corporation, the company provides financial guarantee insurance and surety bonds designed to enhance the credit quality of public finance and structured finance transactions. Ambac’s offerings are tailored to municipal issuers, financial institutions and corporate borrowers, supporting infrastructure projects, energy and transportation initiatives, as well as asset-backed securities. Ambac’s core business activities center on credit enhancement and risk-transfer solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Octave Specialty Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Enact Holdings, Inc. (ACT) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.00%. A quarter ago, it was expected that this company would post earnings of $1.26 per share when it actually produced earnings of $1.21, delivering a surprise of -3.97%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Enact Holdings, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $319.54 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.20%. This compares to year-ago revenues of $312.23 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Enact Holdings shares have added about 20.8% since the beginning of the year versus the S&P 500's gain of 13%. While Enact Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Enact Holdings was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $310.47 million in revenues for the coming quarter and $4.74 on $1.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Octave Specialty Group (OSG), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This bond insurer is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +95.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Octave Specialty Group's revenues are expected to be $81 million, up 47.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report Octave Specialty Group, Inc. (OSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Insurance Distribution Segment Specialty P&C Insurance Segment ("Everspan") NEW YORK, August 06, 2026--(BUSINESS WIRE)--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." 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. 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 Specialty Property & Casualty Insurance Segment 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: OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Loss) (Unaudited) OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) 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) Results of Operations by Segment (Continued) Organic Growth 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. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806353919/en/ Contacts Karen BeyerManaging Director, Investor Relations(212) [email protected]

As second-quarter 2026 earnings continue to roll in, the insurance sector is emerging as one of the early bright spots. Industry leaders Marsh, AON and Hartford have already cleared the bar, reporting results that topped expectations and offering investors a constructive read on the industry's health. Attention now turns to the next batch of earnings from Aflac Incorporated AFL, American International Group, Inc. AIG and Octave Specialty Group, Inc. OSG — all scheduled to report tomorrow. Before diving into company-specific expectations, it’s important to understand the broader industry trends likely to influence these outcomes. The insurance space belongs to the Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), whose overall earnings are projected to jump 22.9% from the year-ago quarter. Revenues are expected to grow 12%, as indicated by our latest Earnings Preview. Stable demand across life, health and specialty insurance products is expected to have supported premium growth in the second quarter. Strong policy retention, new business generation and product diversification likely helped insurers offset a competitive pricing environment. In general, the insurers are expected to have witnessed net investment income growth in the second quarter as higher-yielding assets continue replacing lower-yielding securities. Improving underwriting discipline is likely to have remained a key earnings driver during the quarter. Per Marsh Global Insurance Market Index, global commercial insurance rates declined 6% in the second quarter of 2026, marking the eighth consecutive quarter of reductions and extending favorable conditions for buyers across most regions and major product lines. Continued focus on cost controls, automation and digital transformation is expected to have aided operating margins. Insurers investing in technology and streamlining operations were likely better positioned to manage inflationary cost pressures and improve profitability. Per Gallagher Re’s Natural Catastrophe and Climate Report, economic losses during the first half of 2026 were the lowest since 2020, while insured losses were also the lowest since 2019. The report adds that the second quarter marked the fifth straight quarter without a major catastrophe producing more than $10 billion in insured losses, underscoring a relatively benign loss environment for insurers. Against this backdrop, investors will be watching whether Aflac, American International and Octave Specialty can build on the industry's strong start to the earnings season. Our proprietary model clearly indicates that a company needs to have the right combination of two key elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Now let’s find out how the following three companies are placed ahead of their June-quarter earnings release tomorrow. Aflac: Aflac’s second-quarter results are likely to benefit from continued growth in net earned premiums in the Aflac U.S. unit, driven by higher sales. The metric indicates a 2.2% year-over-year increase. The consensus mark for adjusted revenues in the Aflac U.S. segment signals 2.2% growth from the year-ago level. The total benefit-to-premium ratio for Aflac Japan stands at 61.7, down from 66.5 in the year-ago period. However, the upside is expected to be partly offset by reduced adjusted revenues in the Aflac Japan segment and lower net investment income. The consensus mark indicates a 15.1% decline in net investment income in the second quarter. (Read more: Can Better Japan Profitability Support Aflac's Q2 Earnings Beat?) The Zacks Consensus Estimate for the second-quarter earnings and top line is pegged at $1.77 per share and $4.2 billion, respectively, indicating an earnings decline of 0.6% and a revenue decrease of 7.7% from the corresponding year-ago quarter’s readings. AFL’s bottom line beat the Zacks Consensus Estimate in two of the last four quarters and missed twice, the average surprise being 7.9%. Aflac Incorporated price-eps-surprise | Aflac Incorporated Quote Our proven model predicts a likely earnings beat for Aflac this time around, as the stock has an Earnings ESP of +0.90% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. American International: AIG’s second-quarter revenues are expected to have been supported by 7.7% year-over-year growth in net premiums earned in the General Insurance business. The Zacks Consensus Estimate for the General Insurance underwriting income indicates a 0.4% year-over-year increase. The Zacks Consensus Estimate for the General Insurance adjusted pre-tax income indicates a rise of 0.6% year over year. However, the estimate for net investment income predicts a 33.1% year-over-year decline. The consensus mark for loss ratio is pegged at 59.69%, up from the year-ago level of 58.3%. The Zacks Consensus Estimate for the second-quarter earnings and top line is pegged at $1.89 per share and $7.3 billion, respectively, indicating an earnings growth of 4.4% and a revenue increase of 6.3% from the corresponding year-ago quarter’s readings. AIG’s bottom line beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 15.1%. American International Group, Inc. price-eps-surprise | American International Group, Inc. Quote However, our proven model does not conclusively predict an earnings beat for AIG this time around. This is because the stock currently has an Earnings ESP of -1.12% and a Zacks Rank #3. Octave Specialty: OSG’s revenues in the to-be-reported quarter are likely to have benefited from higher net premiums earned, commissions, and servicing and other fees. Net premiums earned likely increased on the growth of new and existing programs, including programs carrying higher retention ratios. Octave Specialty’s continued emphasis on expanding products and geographic reach, increasing cross-selling, strengthening carrier relationships and enhancing its digital data infrastructure likely supported second-quarter performance. However, net investment income likely declined because of lower yields on corporate short-term investments. The Zacks Consensus Estimate for the second-quarter earnings stands at a loss of 1 cent per share, indicating a year-over-year improvement of 95.5%. OSG’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 464.4%. The consensus mark for revenues is pegged at $81 million, signaling a 47.4% increase. Octave Specialty Group, Inc. price-eps-surprise | Octave Specialty Group, Inc. Quote However, our proven model does not conclusively predict an earnings beat for Octave Specialty this time around, as the stock has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report Octave Specialty Group, Inc. (OSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Octave Specialty Group, Inc. OSG is expected to witness an improvement in its top and bottom lines when it reports second-quarter 2026 results on Aug. 6, after the closing bell.The Zacks Consensus Estimate for OSG’s second-quarter revenues is pegged at $81 million, indicating 47.4% growth from the year-ago reported figure.The consensus estimate for the bottom line is pegged at a loss of 1 cent per share, indicating a year-over-year improvement of 95.5%. The Zacks Consensus Estimate for OSG’s second-quarter bottom line witnessed no movement in the past seven days. Octave Specialty’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 464.4%. Our proven model does not conclusively predict an earnings beat for Octave Specialty this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat. That is not the case here, as you can see below.You can uncover the best stocks before they are reported with our Earnings ESP Filter.Earnings ESP: OSG has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 1 cent. Octave Specialty Group, Inc. price-eps-surprise | Octave Specialty Group, Inc. Quote Zacks Rank: OSG carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Revenues in the to-be-reported quarter are likely to have benefited from higher net premiums earned, commissions, and servicing and other fees. Net premiums earned likely increased on the growth of new and existing programs, including programs carrying higher retention ratios. However, the nonrenewal of certain programs may have partly offset the improvement.Octave’s continued emphasis on expanding products and geographic reach, increasing cross-selling, strengthening carrier relationships, and enhancing its digital data infrastructure likely supported second-quarter performance. Its property-focused MGAs remain diversified across the United States, the United Kingdom and Bermuda, with an emphasis on low-catastrophe-exposed lines and niche small and medium-sized enterprise markets. This positioning likely limited the impact of volatility in property markets. Meanwhile, favorable pricing in higher-hazard classes probably supported casualty operations.Commission revenues are expected to have increased, reflecting organic growth in premiums placed and the contribution from the ArmadaCare acquisition. However, net investment income likely declined because of lower yields on corporate short-term investments. Some multiline insurance stocks with the right combination of elements to deliver an earnings beat this time around are:MetLife MET has an Earnings ESP of +0.66% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $2.30 per share, indicating a 13.9% year-over-year increase.MET’s earnings beat estimates in three of the last four reported quarters, while missing in one.Oscar Health OSCR has an Earnings ESP of +0.02% and a Zacks Rank of 1 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at 43 cents per share, indicating a year-over-year decrease of 143.3%.OSCR’s earnings beat estimates in three of the last four reported quarters, while missing in one.Prudential Financial PRU has an Earnings ESP of +0.85% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.42 per share, indicating a year-over-year decrease of 4.5%.PRU’s earnings beat estimates in three of the last four reported quarters and missed in one. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Octave Specialty Group, Inc. (OSG) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Oscar Health, Inc. (OSCR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Octave Specialty Group, Inc.? Here are five stocks we like better. Octave Specialty Group posted a much smaller first-quarter loss, with net loss to shareholders narrowing to $6.9 million from $16.1 million a year ago, while adjusted net income and adjusted EBITDA turned sharply positive. Management said the improvement was driven by non-GAAP benefits that excluded one-time litigation, severance and compensation items. The insurance distribution segment was the main growth engine, with revenue up 92% to $78.5 million and adjusted EBITDA nearly quadrupling to $25 million. Results were boosted by the ArmadaCare acquisition, strong organic growth across MGAs, higher profit commissions and lower financing costs. Everspan saw premium growth but was hit by a settlement tied to potential litigation, which pushed the quarter’s loss ratio higher and led to an $8 million pretax loss. Even so, management said the portfolio repositioning is improving underlying performance and kept guidance unchanged after a stronger-than-expected start to the year. Octave Specialty Group (NYSE:OSG) reported a narrower first-quarter loss and sharply higher adjusted earnings, driven by rapid growth in its insurance distribution business and contributions from its recent ArmadaCare acquisition. The company reported a net loss to shareholders of $6.9 million, or $0.13 per share, for the first quarter of 2026, compared with a net loss from continuing operations to shareholders of $16.1 million, or $0.57 per share, in the prior-year quarter. Chief Financial Officer David Trick said consolidated adjusted net income to shareholders was $16.6 million, or $0.37 per share, compared with a $6 million adjusted net loss, or $0.13 per share, a year earlier. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Consolidated adjusted EBITDA to shareholders rose to $20.1 million from a loss of $1.3 million in the first quarter of 2025. Trick said the company’s non-GAAP metrics exclude items including a settlement of a potential litigation matter at Everspan, severance costs, other non-recurring costs and equity compensation. President and CEO Claude LeBlanc said Octave began the year with “a strong first quarter,” led by its core insurance distribution segment. Total revenue in the segment grew 92% to $78.5 million, reflecting the October 2025 acquisition of ArmadaCare and 42% organic growth. → MP Materials Is Quietly Building a Rare Earth Powerhouse LeBlanc said adjusted EBITDA for insurance distribution was $25 million, nearly a four-fold increase from the year-earlier period, with margins expanding to 32% from 17%. He noted that 40% of the company’s managing general agents, or nine MGAs, are new, having launched in 2024 and 2025, and some remain in early stages of growth while still contributing negatively to adjusted EBITDA. Trick said insurance distribution net income to shareholders rose to $13.2 million, compared with a $3.4 million net loss in the prior-year quarter. Adjusted EBITDA to shareholders in the segment increased to $25.3 million from $7.1 million. Adjusted net income to shareholders rose to $22 million from $2.5 million. → Micron Investors Face a High-Stakes Moment After the Latest Rally The segment benefited from ArmadaCare, organic growth across its MGA portfolio, higher profit commissions and lower interest expense tied to reduced debt and lower financing costs. Trick also highlighted the exchange benefits platform, which he said posted record results in its core employer stop-loss business after a period of negative growth. Trick cautioned that quarterly results may vary due to seasonality, particularly in the accident and health business, and the nature of de novo MGA investments. In response to a question from KBW’s Tommy McJoynt, Trick said the first quarter is expected to remain the company’s strongest quarter, followed by the fourth quarter, with the second and third quarters more in line with each other. Octave’s specialty property casualty segment, Everspan, posted gross premiums written of $104 million, net premiums written of $32 million and net premiums earned of $20 million. Trick said those figures were up 19%, 80% and 28%, respectively, driven by a portfolio repositioning that began late in 2024. First-quarter production included 24 programs, four of which were new compared with last year and two of which were Octave-related programs. Trick said actions taken to reposition the portfolio brought the current accident-year loss ratio to 54%, while active programs are running at about a 57% loss ratio. The reported net loss and loss adjustment expense ratio was 98.4% in the quarter, reflecting losses and expenses tied to a settlement resolving potential litigation matters related to an insurance claim. The settlement resulted in $2.1 million of additional losses incurred and $5.8 million of loss adjustment expenses for legal fees, accounting for 39.6 loss ratio points in the quarter. For the first quarter, Everspan produced a pretax loss of $8 million and adjusted EBITDA of $2 million, up 2% from the prior-year quarter. LeBlanc said Everspan remains a strategic part of Octave’s ecosystem and primarily manages third-party program business, with selective programs from Octave Ventures added where appropriate. LeBlanc said property lines continue to soften after several years of hardening, particularly in large and middle-market accounts and catastrophe-driven exposures. He said Octave’s property-focused MGAs are diversified across the U.S., U.K. and Bermuda and are mainly focused on lower-catastrophe exposed lines and niche small and midsize enterprise markets. In casualty lines, LeBlanc said the company continues to see a positive rate environment, particularly in higher-hazard areas such as transportation and habitational risks, where loss trends are driving rate increases in many cases above 10%. He said rate increases are moderating in lower-hazard and SME casualty segments, while niche professional and other specialty businesses are growing in a moderating to stable rate environment. During the question-and-answer session, Truist Securities analyst Mark Hughes asked about capacity providers. LeBlanc said Octave has seen continued increases in opportunities with existing and new capacity providers, including improvements in reinsurance terms and broader appetite. He said the company increased capacity from $1.5 billion entering 2026 to more than $2 billion. Paul Rayner, senior executive and director at Octave Ventures, said the company’s property exposure is spread across several MGAs, including those focused on large commercial direct and facultative property, U.S. middle-market property and small commercial risks, as well as package policies that include property and liability components. He said Octave is “relatively low CAT compared to our peers,” particularly in the London market. LeBlanc said Octave is pursuing an artificial intelligence strategy through two tracks: proprietary systems built on Octave’s own data for underwriting and servicing use cases, and a curated partner model using outside AI providers with defined data boundaries. He said Octave has chosen Anthropic as its core AI solution, while leaving room for additional models for specific use cases such as structured data extraction from submissions. In response to a question from KBW’s McJoynt about potential AI disruption, LeBlanc said Octave is not a broker and is focused on being a pure-play MGA platform. He said he views the risk of AI disintermediating the MGA market as more limited, particularly in commercial and more complex specialty risks, while emphasizing that AI will be a core component of Octave’s growth and oversight strategy. LeBlanc said Octave continues to see a “deep and robust” pipeline for startup MGAs, though the company expects to launch one to two in 2026 after a significant number of launches in 2024 and 2025. Asked by Hughes whether first-quarter results were consistent with guidance initially presented in February, LeBlanc said the quarter was ahead of the company’s plan and expectations. He said Octave sees tailwinds carrying through the rest of the year from programs launched over the past couple of years. LeBlanc confirmed that guidance remains unchanged for now, adding that the company will consider adjusting guidance in upcoming quarters. Trick said Octave acquired an additional 10% of Octave Ventures at the end of the quarter, along with additional stakes in four other MGAs, for a total cost of about $44 million. He said the transactions were funded with cash and an expansion of the company’s existing term loan facility. In response to Hughes, Trick said no additional non-controlling interest buy-ins are currently planned for the rest of the year. LeBlanc said Octave remains focused on executing its strategy, with organic growth as the primary driver. He also said Everspan is “well-positioned” after portfolio rebalancing and that reducing corporate expenses will remain a central focus in coming quarters. Ambac Financial Group, Inc (NYSE:AMBC) is a specialized financial services holding company headquartered in New York City. Through its principal subsidiary, Ambac Assurance Corporation, the company provides financial guarantee insurance and surety bonds designed to enhance the credit quality of public finance and structured finance transactions. Ambac’s offerings are tailored to municipal issuers, financial institutions and corporate borrowers, supporting infrastructure projects, energy and transportation initiatives, as well as asset-backed securities. Ambac’s core business activities center on credit enhancement and risk-transfer solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Octave Specialty Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.