OCTAVE SPECIALTY GROUP INC
For the period ended Mar 31, 2026. Filed May 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
OSG$4.99-2.9%Stored close · as of Nov 6, 2026
Contents
Item 1. Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets
| March 31, | December 31, | |
|---|---|---|
| (Dollars in thousands, except share data) (March 31, 2026 (Unaudited)) | 2026 | 2025 |
| Assets: | ||
| Investments: | ||
| Fixed maturity securities - available-for-sale, at fair value (amortized cost of $139,242 and $123,414) | $137,092 | $122,295 |
| Short-term investments, at fair value (amortized cost of $92,295 and $146,434) | 92,295 | 146,442 |
| Other investments (includes $7,454 and $7,454 at fair value) | 24,971 | 24,971 |
| Total investments (net of allowance for credit losses of $0 and $0) | 254,358 | 293,708 |
| Cash and cash equivalents (including $46,634 and $40,754 of restricted cash) | 93,537 | 68,440 |
| Premium receivables (net of allowance for credit losses of $500 and $500) | 87,653 | 75,085 |
| Commission and fees receivable | 106,198 | 86,549 |
| Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $100 and $100) | 469,859 | 436,092 |
| Deferred ceded premium | 145,420 | 146,365 |
| Policy acquisition costs | 16,451 | 9,732 |
| Intangible assets, less accumulated amortization | 458,380 | 474,998 |
| Goodwill | 533,497 | 540,345 |
| Other assets (net of allowance for credit losses of $350 and $350) | 101,673 | 92,003 |
| Total assets | 2,267,026 | 2,223,317 |
| Liabilities and Stockholders’ Equity: | ||
| Liabilities: | ||
| Unearned premiums | $198,681 | $187,178 |
| Loss and loss adjustment expense reserves | 487,261 | 459,990 |
| Ceded premiums payable | 89,148 | 80,561 |
| Deferred program fees and reinsurance commissions | 6,929 | 6,978 |
| Commissions payable | 118,086 | 115,555 |
| Deferred taxes | 60,553 | 65,217 |
| Short-term debt | — | — |
| Long-term debt | 117,062 | 117,558 |
| Accrued interest payable | 1,305 | 1,343 |
| Other liabilities | 158,458 | 102,771 |
| Total liabilities | 1,237,483 | 1,137,151 |
| Commitments and contingencies (See Note 14) | ||
| Redeemable noncontrolling interest | 195,969 | 252,981 |
| Stockholders’ equity: | ||
| Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none | — | — |
| Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 48,876,882 and 48,876,882 | 489 | 489 |
| Additional paid-in capital | 380,263 | 369,860 |
| Accumulated other comprehensive income | 1,224 | 8,483 |
| Retained earnings | 363,751 | 370,431 |
| Treasury stock, shares at cost: 3,863,290 and 3,871,598 | (33,109) | (33,473) |
| Total Octave Specialty Group, Inc. stockholders’ equity | 712,618 | 715,790 |
| Nonredeemable noncontrolling interest | 120,956 | 117,395 |
| Total stockholders’ equity | 833,574 | 833,185 |
| Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $2,267,026 | $2,223,317 |
| Octave Specialty Group, Inc. | 2 | First Quarter 2026 Form 10-Q |
|---|
-OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Loss) (Unaudited)
| Three Months Ended March 31, | ||
|---|---|---|
| (Dollars in thousands, except share data) | 2026 | 2025 |
| Revenues: | ||
| Commissions | $68,178 | $36,771 |
| Servicing and other fees | 9,362 | 4,964 |
| Net premiums earned | 20,001 | 15,678 |
| Program fees | 3,644 | 3,652 |
| Investment income | 2,355 | 2,815 |
| Other | 630 | (1,124) |
| Total revenues | 104,170 | 62,756 |
| Expenses: | ||
| Commissions | 14,005 | 10,365 |
| Losses and loss adjustment expenses | 19,679 | 10,496 |
| Policy acquisition costs | 6,371 | 3,841 |
| General and administrative | 53,155 | 38,531 |
| Intangible amortization and depreciation | 12,214 | 9,176 |
| Interest | 2,090 | 5,454 |
| Total expenses | 107,514 | 77,863 |
| Pretax income (loss) from continuing operations | (3,344) | (15,107) |
| Provision (benefit) for income taxes from continuing operations | (481) | (617) |
| Net income (loss) from continuing operations | (2,863) | (14,490) |
| Net income (loss) from discontinued operations, net of tax (including loss on disposal of $14,497 for the three months ended March 31, 2025) | — | (30,247) |
| Net income (loss) | (2,863) | (44,737) |
| Net (gain) loss attributable to noncontrolling interest | (3,988) | (1,654) |
| Net income (loss) attributable to shareholders | $(6,851) | $(46,391) |
| Net income (loss) attributable to shareholders | ||
| Continuing operations | $(6,851) | $(16,144) |
| Discontinued operations | — | (30,247) |
| Total | $(6,851) | $(46,391) |
| Net income (loss) from continuing operations per share attributable to stockholders | ||
| Basic | $(0.13) | $(0.57) |
| Diluted | $(0.13) | $(0.57) |
| Net income (loss) from discontinued operations per share attributable to stockholders | ||
| Basic | $— | $(0.64) |
| Diluted | $— | $(0.64) |
| Net income (loss) per share attributable to stockholders | ||
| Basic | $(0.13) | $(1.21) |
| Diluted | $(0.13) | $(1.21) |
| Weighted-average number of common shares outstanding: | ||
| Basic | 45,302,933 | 47,313,012 |
| Diluted | 45,302,933 | 47,313,012 |
| Octave Specialty Group, Inc. | 3 | First Quarter 2026 Form 10-Q |
|---|
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
| Three Months Ended March 31, | ||
|---|---|---|
| (Dollars in thousands, except share data) | 2026 | 2025 |
| Net income (loss) | $(2,863) | $(44,737) |
| Unrealized gains (losses) on securities, net of income tax provision (benefit) of $0 and $645 | (1,039) | 18,606 |
| Gains (losses) on foreign currency translation, net of income tax provision (benefit) of $0 and $0 | (12,590) | 44,720 |
| Credit risk changes of fair value option liabilities, net of income tax provision (benefit) of $0 and $147 | — | 442 |
| Total other comprehensive income (loss), net of income tax | (13,629) | 63,768 |
| Total comprehensive income (loss), net of income tax | (16,492) | 19,031 |
| Less: net (gain) loss attributable to noncontrolling interest | (3,988) | (1,654) |
| Less: (gain) loss on foreign currency translation attributable to noncontrolling interest | 6,370 | (10,361) |
| Total comprehensive income (loss) attributable to shareholders | $(14,110) | $7,016 |
| Octave Specialty Group, Inc. | 4 | First Quarter 2026 Form 10-Q |
|---|
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