OCTAVE SPECIALTY GROUP INC
For the period ended Dec 31, 2025. Filed Mar 4, 2026.
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FY2025 · Filed Mar 4, 2026
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Investments and Investment Policy
($ in thousands)
As of December 31, 2025, the consolidated investments of Octave's continuing operations had an aggregate carrying value of $293,708, including $277,302 carried at fair value. Investments are primarily managed by third party investment management firms which are overseen internally. All investments are made in accordance with the general objectives, policies, and guidelines for investments approved by the Board of Directors of the applicable subsidiary. These policies and guidelines may include liquidity, credit quality, diversification and duration objectives and are periodically reviewed and revised as appropriate.
As of December 31, 2025, the Everspan group investment portfolio had an aggregate carrying value of approximately $193,428. Everspan’s investment philosophy is liability driven and therefore seeks to maximize risk-adjusted returns while closely matching the cash flow profile and liquidity demands of its expected liabilities. In addition to internal investment policies and guidelines, the investment portfolio of each company is subject to limits on the types and quality of investments imposed by applicable insurance laws and regulations of the jurisdictions in which it is licensed. The Board of Directors of each respective subsidiary approves any changes to the respective investment policies.
As of December 31, 2025, OSG's (parent company only, excluding investments in subsidiaries) investment portfolio had an aggregate carrying value of approximately $64,468, including $39,344 of short-term investments carried at fair value. The primary investment objective is to preserve capital for strategic uses while maximizing income. The investment portfolio is subject to internal investment guidelines. Such guidelines set forth minimum credit rating requirements and credit risk concentration limits.
As of December 31, 2025, the ID investment portfolio had an aggregate carrying value of approximately $35,812, primarily consisting of money market funds.
The following table provide certain information concerning the consolidated investments of Octave:
| 2025 | 2024 | |||
|---|---|---|---|---|
| Investment Category($ in thousands)December 31, | CarryingValue | WeightedAverageYield (1) | CarryingValue | WeightedAverageYield (1) |
| Corporate securities | $66,573 | 3.4% | $89,192 | 3.3% |
| U.S. government obligations | 35,424 | 3.6% | 40,995 | 3.3% |
| Municipal obligations | 11,590 | 3.0% | 14,083 | 3.1% |
| Asset-backed securities | 3,770 | 4.5% | 8,203 | 4.9% |
| Residential mortgage-backed securities | 1,597 | 5.1% | 2,446 | 5.0% |
| Commercial mortgage-backed securities | 3,341 | 5.3% | 2,101 | 5.8% |
| Short-term investments | 146,442 | 2.8% | 127,601 | 3.7% |
| Total fixed maturity-available-for-sale | 268,737 | 3.2% | 284,621 | 3.5% |
| Other investments (2) | 24,971 | —% | 28,294 | —% |
| Total | $293,708 | 2.9% | $312,915 | 3.5% |
(1) Yields are stated on a pre-tax basis, based on average amortized cost for both long and short term fixed-maturity investments.
(2) Other investments consist of equity interests in development stage insurance MGA's and a limited partnership interest in a private equity fund. Refer to Note 6. Investments of the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for further information about Other investments.
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