Accelerant Holdings

Previous wording

The following discussion and analysis of our financial condition and our results of operations should be read in conjunction with our interim unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements in our prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the "Prospectus"). This management's discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and "Risk Factors" in the Prospectus. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.

Current wording

The following discussion and analysis of our financial condition and our results of operations should be read in conjunction with our interim unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements included in our prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the "Prospectus"). This management's discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and "Risk Factors" in the Prospectus. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.

Previous wording

Refer to Note 1 to our interim condensed consolidated financial statements for additional information.

Current wording

On July 25, 2025, the Company completed its IPO. For additional information regarding the related net proceeds, equity impact, use of proceeds and expenses associated with the Accelerant Holdings LP distribution and our equity award plans, refer to Note 10 and Note 12 to our interim condensed consolidated financial statements.

Previous wording

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of June 30, 2025, we had 248 Members and 98 Risk Capital Partners on our platform and we have grown Exchange Written Premium at a 207% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

Current wording

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of September 30, 2025, we had 265 Members (an increase of 17 Members since June 30, 2025) and 92 Risk Capital Partners on our platform and we have grown Exchange Written Premium at a 196% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

Previous wording

The remaining Members consist of “Mission Members” and “Owned Members.” Mission Members are Members started within Mission Underwriters, our MGA incubation platform. With Mission Underwriters, we support entrepreneurial specialty underwriters with start-up capital and operational tools and resources to form their own MGAs that are then jointly owned by Mission Underwriters and the specialty underwriters. Our primary means of identifying such underwriters is our reliance on the Accelerant management team’s knowledge of the specialty insurance markets, which includes reliance on certain historical metrics (such as loss ratios) from their underwriting track records at reputable incumbent institutions and, generally, prospective underwriters’ reputations among the industry, leveraging our experience and tenure in the space. Such knowledge includes an awareness of high-quality underwriters in these markets. Mission Underwriters attracts specialty underwriters with its independence, turnkey back office, and equity incentivization combined with the overall Accelerant value proposition. We supplement this market awareness with arrangements with a number of specialist recruiters that seek out underwriters that match our desired profile. While our ongoing recruitment efforts will continue to be important as we grow, we do not currently expect any associated recruitment costs to increase materially over time. Mission Underwriters owns the majority of the MGAs that it helped to create, with meaningful equity shared with management teams based on the performance of their MGA. Owned Members are Members in which we either have a minority ownership interest or controlling equity interest. Typically, our investments in Owned Members take the form of an initial minority ownership interest and a contractual call option for a controlling equity ownership interest over time. In all but two instances, these investments took place within 40 weeks after an MGA joined the platform.

Current wording

The remaining Members consist of “Mission Members” and “Owned Members.” Mission Members are Members started within Mission Underwriters, our MGA incubation platform. With Mission Underwriters, we support entrepreneurial specialty underwriters with start-up capital and operational tools and resources to form their own MGAs that are then jointly owned by Mission Underwriters and the specialty underwriters. Our primary means of identifying such underwriters is our reliance on the Accelerant management team’s knowledge of the specialty insurance markets, which includes reliance on certain historical metrics (such as loss ratios) from their underwriting track records at reputable incumbent institutions and, generally, prospective underwriters’ reputations among the industry, leveraging our experience and tenure in the space. Such knowledge includes an awareness of high-quality underwriters in these markets. Mission Underwriters attracts specialty underwriters with its independence, turnkey back office, and equity incentivization combined with the overall Accelerant value proposition. We supplement this market awareness with arrangements with a number of specialist recruiters that seek out underwriters that match our desired profile. While our ongoing recruitment efforts will continue to be important as we grow, we do not currently expect any associated recruitment costs to increase materially over time. Mission Underwriters owns the majority of the MGAs that it helped to create, with meaningful equity shared with management teams based on the performance of their MGA. Owned Members are Members in which we either have a minority ownership interest or controlling equity interest. Typically, our investments in Owned Members take the form of an initial minority ownership interest and a contractual call option for a controlling equity ownership interest over time.

Previous wording

Currently, our Risk Capital Partners include third-party insurance companies, reinsurance companies, and institutional investors. As of June 30, 2025, 14 Risk Exchange Insurers accessed gross premium written directly from the Risk Exchange (on a primary insurance basis) rather than via reinsurance from Accelerant Underwriting, accounting for 23% of the premium written on the Risk Exchange for the six months ended June 30, 2025.

Current wording

Currently, our Risk Capital Partners include third-party insurance companies, reinsurance companies, and institutional investors. As of September 30, 2025, 15 Risk Exchange Insurers (an increase of 1 Risk Exchange Insurer since June 30, 2025) accessed gross premium written directly from the Risk Exchange (on a primary insurance basis) rather than via reinsurance from Accelerant Underwriting, accounting for 26% of the premium written on the Risk Exchange for the nine months ended September 30, 2025, as compared to 14% for the nine months ended September 30, 2024 by 11 Risk Exchange Insurers.

Previous wording

For Accelerant Underwriting, we have historically targeted reinsuring approximately 90% of our gross premium written to institutional investors and third-party reinsurers, with Accelerant retaining approximately 10% of the risk associated with these gross premiums written, which we believe demonstrates alignment with our Risk Capital Partners. For the trailing twelve months ended June 30, 2025, Accelerant-Retained Exchange Premium represented 6% of Exchange Written Premium.

Current wording

For Accelerant Underwriting, we have historically targeted reinsuring approximately 90% of our gross premium written to institutional investors and third-party reinsurers, with Accelerant retaining approximately 10% of the risk associated with these gross premiums written, which we believe demonstrates alignment with our Risk Capital Partners. For the trailing twelve months ended September 30, 2025, Accelerant-Retained Exchange Premium represented 7% of Exchange Written Premium.

Previous wording

•MGA Operations: This segment reports all revenue and expenses from Mission Members and Owned Members in which we have majority ownership positions. Equity method accounting is used for Owned Members in which we have a minority equity ownership interest. The largest component of the segment is our investment in the 31 Mission Members as of June 30, 2025. There are 16 Owned Members as of June 30, 2025, of which, nine are majority-owned and controlled by us and therefore consolidated in our financial statements.

Current wording

•MGA Operations: This segment reports all revenue and expenses from Mission Members and Owned Members in which we have majority ownership positions. Equity method accounting is used for Owned Members in which we have a minority equity ownership interest. The largest component of the segment is our investment in the 30 Mission Members as of September 30, 2025. There are 15 Owned Members as of September 30, 2025, of which, nine are majority-owned and controlled by us and therefore consolidated in our financial statements.

Previous wording

•Underwriting: Our Underwriting segment includes all revenue and expenses associated with our Accelerant Underwriting companies (each of which solely operates through the Risk Exchange) and reinsurance company. We view the Underwriting segment as a strategic capability and source of operational flexibility and alignment with current and prospective Risk Capital Partners. Accelerant Underwriting earns premiums and pays losses from business sourced and retained through the Risk Exchange. Accelerant Underwriting pays commissions to the Risk Exchange as consideration to access this business on market-consistent terms with Risk Exchange Insurers. This is offset by the ceding commission we receive from several third-party reinsurers including Flywheel Re, a reinsurance sidecar, for ceding premium and losses to them. The performance of our Underwriting segment will vary with the performance of the portfolio reinsured to Risk Capital Partners. We expect the portion of Risk Exchange premium underwritten by Accelerant Underwriting to decrease over time, relative to other segments, as Risk Exchange Insurers increase in number and grow their premium written through our Risk Exchange.

Current wording

•Underwriting: Our Underwriting segment includes all revenue and expenses associated with our Accelerant Underwriting companies (each of which solely operates through the Risk Exchange) and reinsurance companies. We view the Underwriting segment as a strategic capability and source of operational flexibility and alignment with current and prospective Risk Capital Partners. Accelerant Underwriting earns premiums and pays losses from business sourced and retained through the Risk Exchange. Accelerant Underwriting pays commissions to the Risk Exchange as consideration to access this business on market-consistent terms with Risk Exchange Insurers. This is offset by the ceding commission we receive from several third-party reinsurers including Flywheel Re, a reinsurance sidecar, for ceding premium and losses to them. The performance of our Underwriting segment will vary with the performance of the portfolio reinsured to Risk Capital Partners. We expect the portion of Risk Exchange premium underwritten by Accelerant Underwriting to decrease over time, relative to other segments, as Risk Exchange Insurers increase in number and grow their premium written through our Risk Exchange.

Previous wording

A high-level view of our business model is included below (based on activity for the twelve months ended June 30, 2025)(4):

Current wording

A high-level view of our business model is included below (based on activity for the trailing twelve months ended September 30, 2025)(4):

Previous wording

(1)Calculated as Exchange Services direct commission income divided by Exchange Written Premium.

Current wording

(1)Calculated as Exchange Services direct commission income divided by Exchange Written Premium (rounded from 7.6%).

Previous wording

(2)Calculated as MGA Operations direct commission income ($191.3 million), net investment income ($4.2 million), net realized gains on investments ($3.4 million), and net unrealized losses on investments ($0.5 million) divided by Exchange Written Premium attributable to Mission Members and Owned Members.

Current wording

(2)Calculated as $198.6 million of MGA Operations direct commission income, $4.1 million of net investment income, $6.5 million of net realized gains on investments, and $3.2 million of net unrealized losses on investments (after excluding unrealized gains of $30.3 million attributable to investments accounted for under the measurement alternative) divided by Exchange Written Premium attributable to Mission Members and Owned Members (rounded from 17.4%).

Previous wording

(3)Calculated as net earned premium and the amortization of deferred excess ceding commission income, reduced by net losses and the amortization of DAC, plus net investment income and net realized gains and net unrealized gains (losses) on investments expressed as a percentage of total Underwriting gross earned premium, excluding operating expenses.

Current wording

(3)Calculated as net earned premium and the amortization of deferred excess ceding commission income, reduced by net losses and the amortization of DAC, plus net investment income and net realized gains and net unrealized gains (losses) on investments expressed as a percentage of total Underwriting gross earned premium, excluding operating expenses (rounded from 3.4%).

Previous wording

(4)The table above references amounts for the trailing twelve months ended June 30, 2025 herein. The GAAP to non-GAAP reconciliation for this period can be derived using amounts presented above for the year ended December 31, 2024 less amounts reported for the six months ended June 30, 2024 to arrive at the six months ended December 31, 2024, which can be added to the results for the six months ended June 30, 2025 to arrive at amounts for the trailing twelve months ended June 30, 2025.

Current wording

(4)The table above references amounts for the trailing twelve months ended September 30, 2025 herein. The GAAP to non-GAAP reconciliation for this period can be derived using amounts presented above for the year ended December 31, 2024 less amounts reported for the nine months ended September 30, 2024 to arrive at the three months ended December 31, 2024, which can be added to the results for the nine months ended September 30, 2025 to arrive at amounts for the trailing twelve months ended September 30, 2025.

Previous wording

Our future revenue growth also depends, in part, on our ability to expand our relationships with new and existing third-party capital providers to meet the growth of gross premiums sourced by our Members. We believe that the low-hazard, low-limit specialty business that we source from our Members will continue to attract these Risk Capital Partners. Since 2019, we have grown our Risk Capital Partners from two to 98 as of June 30, 2025. As of June 30, 2025, we had 14 Risk Exchange Insurers.

Current wording

Our future revenue growth also depends, in part, on our ability to expand our relationships with new and existing third-party capital providers to meet the growth of gross premiums sourced by our Members. We believe that the low-hazard, low-limit specialty business that we source from our Members will continue to attract these Risk Capital Partners. Since 2019, we have grown our Risk Capital Partners from two to 92 as of September 30, 2025. As of September 30, 2025, we had 15 Risk Exchange Insurers.

Previous wording

Our ability to maintain the support of Risk Capital Partners depends, in part, on maintaining an attractive ratio of gross premiums to gross losses and gross commissions that Risk Capital Partners pay to the Risk Exchange. We believe the historic quality of the portfolio written by our Members is reflected by the gross loss ratios of 51.8% and 53.5% for the six months ended June 30, 2025 and 2024, respectively. We intend to leverage our data and analytics capability and our team of expert underwriters to continue to produce a portfolio with increasing diversification and attractive risk/return characteristics for our Risk Capital Partners.

Current wording

Our ability to maintain the support of Risk Capital Partners depends, in part, on maintaining an attractive ratio of gross premiums to gross losses and gross commissions that Risk Capital Partners pay to the Risk Exchange. We believe the historic quality of the portfolio written by our Members is reflected by the gross loss ratios of 51.2% and 52.8% for the nine months ended September 30, 2025 and 2024, respectively. We intend to leverage our data and analytics capability and our team of expert underwriters to continue to produce a portfolio with increasing diversification and attractive risk/return characteristics for our Risk Capital Partners.

Previous wording

As we begin to operate as a public company, we will be required to continue to implement changes in certain aspects of our business and develop, manage, and train employees to comply with ongoing public company requirements. We will also incur new expenses as a public company, including public reporting obligations, proxy statements, shareholder meetings, stock exchange fees, transfer agent fees, SEC and Financial Industry Regulatory Authority ("FINRA") filing fees and offering expenses.

Current wording

As we operate as a public company, we will be required to continue to implement changes in certain aspects of our business and develop, manage, and train employees to comply with ongoing public company requirements. We will also incur new expenses, including public reporting obligations, proxy statements, shareholder meetings, stock exchange fees, transfer agent fees, SEC and Financial Industry Regulatory Authority ("FINRA") filing fees.

Previous wording

Direct commissions paid by one Accelerant entity to another (referred to as “intercompany basis”) are required to be eliminated in consolidation pursuant to generally accepted accounting principles. These include fees paid by Accelerant Underwriting to the Risk Exchange, as well as commissions paid by the Risk Exchange to Mission Members and/or to Owned Members. These intercompany direct commissions are recognized under “Direct commission income” in our consolidated statements of operations under the segment to which they relate and are fully recognized by the segment when the services and related performance obligations are completed.

Current wording

Direct commissions paid by one Accelerant entity to another (referred to as “intercompany basis”) are required to be eliminated in consolidation pursuant to generally accepted accounting principles. These include fees paid by Accelerant Underwriting to the Risk Exchange, commissions paid by the Risk Exchange to Mission Members and/or to Owned Members, and fees paid by third party Risk Exchange Insurers to the Risk Exchange on premiums which are assumed by Accelerant Underwriting. These intercompany direct commissions are recognized under “Direct commission income” in our consolidated statements of operations under the segment to which they relate and are fully recognized by the segment when the services and related performance obligations are completed.

Previous wording

While these intercompany basis commissions are all eliminated on a consolidated basis, we nevertheless derive a significant economic benefit from these commissions. Unlike third parties, which bear the costs of the services performed by the Risk Exchange in the form of cash payments, we do not bear the cost of such services once fully eliminated, resulting in less commission amortization expense over the insurance policy term. This has the practical effect of increasing consolidated earnings as the corresponding premiums are earned. Direct commission income paid by third parties in the Exchange Services or MGA Operations segments are fully recognized in the current period under “Direct commission income” in the statement of operations, to the extent that the underlying services and performance obligations to which they relate have been performed. As more business is written by Risk Exchange Insurers, we expect a higher proportion of direct commission income to be recognized on a consolidated basis (instead of being subject to elimination on an intercompany business basis, as discussed above).

Current wording

While these intercompany basis commissions are all eliminated on a consolidated basis, we nevertheless derive a significant economic benefit from these commissions. Unlike third parties, which bear the costs of the services performed by the Risk Exchange in the form of cash payments, we do not bear the cost of such services once fully eliminated, resulting in less commission amortization expense over the insurance policy term. This has the practical effect of increasing consolidated earnings as the corresponding premiums are earned. Direct commission income paid by third parties in the Exchange Services or MGA Operations segments on premiums that are otherwise not assumed by Accelerant Underwriting are fully recognized in the current period under “Direct commission income” in the statement of operations, to the extent that the underlying services and performance obligations to which they relate have been performed. As more business is written by Risk Exchange Insurers, we expect a higher proportion of direct commission income to be recognized on a consolidated basis (instead of being subject to elimination on an intercompany business basis, as discussed above).

Previous wording

Net investment income represents interest earned from fixed maturity securities, short-term securities and other investments. Dividends on equity securities and other investments are also included in net investment income. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in net investment income, net of investment management and custody fees. The principal factors that influence net investment income are the size of our investment portfolio and the yield on that portfolio.

Current wording

Net investment income represents interest earned from fixed maturity securities, short-term securities and other investments. Dividends from equity securities and other investments are also included in net investment income. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in net investment income, net of investment management and custody fees. The principal factors that influence net investment income are the size of our investment portfolio and the yield on that portfolio.

Previous wording

We have certain unconsolidated investments within our MGA Operations segment and we account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments within net investment income, or the measurement alternative accounted for at fair value based on observable price changes or impairment. Any decline in value of equity method investments considered by management to be other than temporary is charged to income in the period in which it is determined.

Current wording

We have certain unconsolidated investments within our MGA Operations segment and we account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments within net investment income (or the measurement alternative accounted for at fair value based on observable price changes or impairment whereby such amount is included in net unrealized gains or losses on investments). Any decline in value of equity method investments considered by management to be other than temporary is charged to income in the period in which it is determined.

Previous wording

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses, and are expensed as incurred. Generally, we expect our distribution, underwriting, and claims operating expenses to be most closely tied to growth of our membership and Risk Exchange premium volume. However, these and other functions within the Risk Exchange (including costs of supporting the development of the Risk Exchange), and our other segments have large, fixed-cost components that we believe will increase operating leverage as gross premiums continue to grow.

Current wording

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses that are expensed as incurred, and share-based compensation expenses. Generally, we expect our distribution, underwriting, and claims operating expenses to be most closely tied to growth of our membership and Risk Exchange premium volume. However, these and other functions within the Risk Exchange (including costs of supporting the development of the Risk Exchange), and our other segments have large, fixed-cost components that we believe will increase operating leverage as gross premiums continue to grow. Share-based compensation expenses represent amortization of the grant date fair value of equity awards granted to employees and directors, including restricted stock units, stock options, and other awards that can settle in cash or the common shares, over the requisite service period using the straight-line method. Forfeitures are recognized as they occur. The portion of the awards that settle in our common shares are non-cash in nature. We expect share-based compensation expenses to fluctuate over time in connection with new equity grants, changes in our workforce, and the overall structure of our long-term incentive programs.

Previous wording

Interest expenses primarily relate to amounts paid on the Company's debt financing obligations, including amortized debt issuance costs.

Current wording

Interest expenses primarily relate to amounts paid on our debt financing obligations, including amortized debt issuance costs.

Previous wording

Depreciation and amortization expenses primarily relate to amortization of capitalized technology development costs, as well as amortization of intangible assets associated with acquisitions of businesses (including investments in Owned Members).

Current wording

Depreciation and amortization expenses primarily relate to amortization of capitalized technology development costs, as well as amortization of intangible assets associated with acquisitions of businesses (including our investments in Owned Members).

Previous wording

Other expenses represent costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to share-based compensation, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formations that support our growing business.

Current wording

Other expenses represent costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formations that support our growing business. For the three and nine months ended September 30, 2025, other expenses included a termination fee payable to Altamont Capital of $25.0 million related to the then-existing management services agreement.

Previous wording

As of June 30, 2025, we had net deferred tax assets of $57.1 million and also apply full valuation allowances to certain of our deferred tax assets of unutilized net operating losses (“NOLs”) and outside basis differences in partnership investments. The NOLs and outside basis differences predominantly arose from start-up losses on certain operating locations that drove significant taxable losses in the early stages of operations.

Current wording

As of September 30, 2025, we had net deferred tax assets of $57.5 million and also apply full valuation allowances to certain of our deferred tax assets of unutilized net operating losses (“NOLs”) and outside basis differences in partnership investments. The NOLs and outside basis differences predominantly arose from start-up losses on certain operating locations that drove significant taxable losses in the early stages of operations.

Previous wording

As of June 30, 2025, we had 248 Members. These Members wrote $2.06 billion of Exchange Written Premium for the six months ended June 30, 2025. Of our 248 Members, 31 are Mission Members, 16 are Owned Members, and 201 are Independent Members. Of the $2.06 billion in Exchange Written Premium for the six months ended June 30, 2025, 77% was written by Accelerant Underwriting as Accelerant Direct Written Premium and 23% was written by our 14 Risk Exchange Insurers as Third-Party Direct Written Premium.

Current wording

As of September 30, 2025, we had 265 Members. Our Members wrote $3.10 billion of Exchange Written Premium for the nine months ended September 30, 2025. This compares to Exchange Written Premium of $2.23 billion for the nine months ended September 30, 2024, representing a 39% increase. Of our 265 Members, 30 are Mission Members, 15 are Owned Members, and 220 are Independent Members. Of the $3.10 billion in Exchange Written Premium for the nine months ended September 30, 2025, 74% was written by Accelerant Underwriting as Accelerant Direct Written Premium and 26% was written by our 15 Risk Exchange Insurers as Third-Party Direct Written Premium.

Previous wording

For the six months ended June 30, 2025, Accelerant Underwriting reinsured 95% of Accelerant GWP to third-party reinsurers. Of this amount, 32% of our Accelerant GWP was ceded to Flywheel Re during the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2025, Accelerant Underwriting reinsured 91% of Accelerant GWP to third-party reinsurers. Of this amount, 33% of our Accelerant GWP was ceded to Flywheel Re during the nine months ended September 30, 2025.

Previous wording

•Other expenses: Represents costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to share-based compensation, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formations that support our growing business.

Current wording

•Other expenses: Represents costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formations that support our growing business.

Previous wording

•Net foreign currency exchange gains (losses): The functional currency for each of our operating subsidiaries is generally the currency of the local operating environment. Transactions in currencies other than the local operation’s functional currency are remeasured into the functional currency, and the resulting foreign exchange gains or losses are reflected in net foreign currency exchange gains (losses). Such gains and losses are generally offset by the translation of our subsidiaries who have the corresponding reinsurance-related balances within their own functional currencies, whereby such effects are translated to other comprehensive income, yielding a much lower net impact on total comprehensive income and equity.

Current wording

•Net foreign currency exchange gains (losses): The functional currency for each of our operating subsidiaries is generally the currency of the local operating environment. Transactions in currencies other than the local operation’s functional currency are remeasured into the functional currency, and the resulting foreign exchange gains or losses are reflected in net foreign currency exchange gains (losses). Such gains and losses are generally offset by the translation of our subsidiaries who have the corresponding reinsurance-related balances within their own functional currencies, whereby such effects are translated to other comprehensive income, yielding a much lower net impact on total comprehensive income and equity (such measure differs from Adjusted EBITDA as it includes the effect of interest, taxes, depreciation and amortization, as well as foreign currency exchange gains (losses)).

Previous wording

We define Adjusted Net Income (Loss) as GAAP net income (loss) less the impact of other expenses and the tax effect of the adjustments for other expenses.

Current wording

We define Adjusted Net Income (Loss) as GAAP net income (loss) less the impact of other expenses, non-recurring profits interest distribution expenses, share-based compensation expenses, and the tax effect of the adjustments for other expenses.

Previous wording

The following table provides a reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table provides a reconciliation of net income (loss) to Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin for the three and nine months ended September 30, 2025 and 2024:

Previous wording

(1)Other expenses for the three and six months ended June 30, 2025 and 2024 consisted of the following:

Current wording

(2)Other expenses for the three and nine months ended September 30, 2025 and 2024 consisted of the following:

Previous wording

(2)The tax effect of other expenses adjustments to net income (loss) for each period presented were calculated using the statutory tax rates for each of our legal entities where the expenses were incurred, including certain non-taxing jurisdictions. The statutory tax rates used in the calculations were adjusted in instances where our legal entities have applied full valuation allowances to their respective deferred tax assets of unutilized NOLs. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the expenses were incurred in each year.

Current wording

(3)The tax effect of other expenses adjustments to net income (loss) for each period presented were calculated using the statutory tax rates for each of our legal entities where the expenses were incurred, including certain non-taxing jurisdictions. The statutory tax rates used in the calculations were adjusted in instances where our legal entities have applied full valuation allowances to their respective deferred tax assets of unutilized NOLs. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the expenses were incurred in each year.

Previous wording

The following tables reflect our consolidated results of operations for the three and six months ended June 30, 2025 and 2024 in the format that we use to analyze our financial performance. This information is derived from our interim condensed consolidated financial statements prepared in accordance with GAAP and included elsewhere in this Form 10-Q.

Current wording

The following tables reflect our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 in the format that we use to analyze our financial performance. This information is derived from our interim condensed consolidated financial statements prepared in accordance with GAAP and included elsewhere in this Form 10-Q.

Previous wording

Ceding commission income of $101.6 million for the three months ended June 30, 2025 increased $42.5 million from the three months ended June 30, 2024 amount of $59.1 million as we continued to grow our premium base and the amount ceded to reinsurers. Ceding commission income for the three months ended June 30, 2025 and 2024 included an increase of $12.5 million and a reduction of $4.8 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts in the US.

Current wording

Ceding commission income of $92.3 million for the three months ended September 30, 2025 increased $30.2 million from the three months ended September 30, 2024 amount of $62.1 million as we continued to grow our gross earned premium base and the amount ceded to reinsurers. Ceding commission income for the three months ended September 30, 2025 and 2024 included an increase of $7.7 million and a reduction of $0.6 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts in the US.

Previous wording

Ceding commission income of $172.3 million for the six months ended June 30, 2025 increased $48.2 million from the six months ended June 30, 2024 amount of $124.1 million due to the continued growth in our premium base and the amount ceded to reinsurers. Ceding commission income for the six months ended June 30, 2025 and 2024 included an increase of $12.5 million and a reduction of $7.3 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts in the US.

Current wording

Ceding commission income of $264.6 million for the nine months ended September 30, 2025 increased $78.4 million from the nine months ended September 30, 2024 amount of $186.2 million due to the continued growth in our gross earned premium base and the amount ceded to reinsurers. Ceding commission income for the nine months ended September 30, 2025 and 2024 included an increase of $20.2 million and a reduction of $7.9 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts in the US.

Previous wording

The following table presents the amounts of ceding commissions deferred and amortized for the six months ended June 30, 2025 and 2024:

Current wording

The following table presents the amounts of ceding commissions deferred and amortized for the nine months ended September 30, 2025 and 2024:

Previous wording

Direct commission income was $34.2 million and $62.3 million for the three and six months ended June 30, 2025, respectively, representing increases of $24.1 million and $40.6 million compared to the same periods in 2024 of $10.1 million and $21.7 million, respectively. These increases were, in each period, primarily driven by commissions from third-party insurers and increased volume in our Exchange Services and MGA Operations segments on business written with unaffiliated entities.

Current wording

Direct commission income was $43.4 million and $105.7 million for the three and nine months ended September 30, 2025, respectively, representing increases of $26.2 million and $66.8 million compared to the same periods in 2024 of $17.2 million and $38.9 million, respectively. These increases were, in each period, primarily driven by commissions from third-party insurers and increased volume in our Exchange Services and MGA Operations segments on business written with unaffiliated entities.

Previous wording

GWP was $911.3 million and $1.79 billion for the three and six months ended June 30, 2025, respectively, representing increases of $184.3 million and $507.2 million compared to the same periods in 2024 of $727.0 million and $1.28 billion, respectively. These increases were, in each period, primarily driven by new and existing Member growth. Since June 30, 2024, we have added 62 new Members, bringing the total number of Members to 248 as of June 30, 2025. This Member growth was driven by our continued expansion across all of our markets.

Current wording

GWP was $791.9 million and $2.58 billion for the three and nine months ended September 30, 2025, respectively, representing a decrease of $3.6 million (or (0.5)%) and an increase of $503.6 million (or 24.3%) compared to the same periods in 2024 of $795.5 million and $2.07 billion, respectively. The quarter-over-quarter decrease in GWP was driven by the growth in our third-party business on the Risk Exchange and the related increase in premiums written with third-party Risk Exchange Insurers instead of by Accelerant Underwriting. The year-over-year increase was primarily driven by new and existing Member growth. Since September 30, 2024, we have added 61 new Members, bringing the total number of Members to 265 as of September 30, 2025. This Member growth was driven by our continued expansion across all of our markets.

Previous wording

The table below shows the amount of premium written on a gross and net basis, as well as net earned premium for the three and six months ended June 30, 2025 and 2024:

Current wording

The table below shows the amount of premium written on a gross and net basis, as well as net earned premium for the three and nine months ended September 30, 2025 and 2024: