Accelerant Holdings
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
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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.
Jun 30, 2026 · Filed Aug 13, 2026
ARX$19.89+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001997350-26-000011
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001997350-26-000015
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 337 previous paragraphs and 368 current paragraphs.
210 unchanged; 101 reworded; 48 added; 24 removed; 2 previous and 9 current paragraphs rearranged.
Tables are not compared: 28 previous and 38 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (48)
Current report
Recent Business Developments
Current report
Proposed Merger
Current report
On August 13, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Cherry Tree BidCo, a Cayman Islands exempted company (“Parent”), and Cherry Tree Merger Sub, a Cayman Islands exempted company and a wholly owned subsidiary of Parent (“Merger Sub”). Parent and Merger Sub are affiliates of Thoma Bravo Discover Fund V, L.P., an investment fund managed by Thoma Bravo, L.P. Pursuant to, and subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Accelerant, with Accelerant continuing as the surviving company and becoming a wholly-owned subsidiary of Parent (the “Merger”).
Current report
Under the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each Class A common share and Class B common share of the Company, $0.0000011951862 par value per share (the “Shares”), issued and outstanding immediately prior to the Effective Time will be converted automatically into the right to receive $20.25 in cash, without interest, plus, if applicable, an additional consideration via a “ticking fee” that will accrue daily at a rate of 6% per annum if certain insurance regulatory approvals have not been obtained by a certain date (together, the “Merger Consideration”). Accrual of the ticking fee commences no more than fifteen business days following the satisfaction of certain closing conditions (other than those related to insurance regulatory approvals) and ends after the receipt of such insurance regulatory approvals.
Current report
Treatment of our equity awards
Current report
The Merger Agreement also provides that, at the Effective Time, by virtue of the Merger:
Current report
•Each in-the-money share option, whether vested or unvested, will be canceled and exchanged for a cash payment equal to its aggregate spread value (based on the excess of the Merger Consideration over the per-Share exercise price and the number of Shares underlying such share option). All underwater share options, whether vested or unvested, will be cancelled for no consideration.
Current report
•Each restricted share unit (“RSU”) that vests at the Effective Time in accordance with the terms of the applicable award agreement (“Single Trigger RSUs”) will be canceled in exchange for a cash payment equal to the product of the Merger Consideration and the number of Shares subject to such Single Trigger RSU.
Current report
•RSUs that are not a Single Trigger RSU will be canceled and converted into the right to receive a cash amount equal to the product of the Merger Consideration and the number of Shares subject to such RSU, which will vest and be paid out on the same vesting terms, and will be subject to the same terms and conditions, that applied to the corresponding RSU.
Current report
•Each Performance Share Unit (“PSU”) will be canceled and converted into the right to receive a cash payment equal to the product of the Merger Consideration and the number of Shares subject to such to which the holder of such PSU would be entitled upon settlement thereof assuming satisfaction of the performance goal(s) based on maximum performance for the Company PSUs, which will vest and be paid out on the same terms, and will be subject to the same terms and conditions, that applied to the corresponding PSU.
Current report
Conditions to the Merger
Current report
The Merger Agreement and the transactions contemplated thereby, including the Merger, have been unanimously approved by Accelerant’s Board of Directors. Consummation of the Merger is subject to certain customary closing conditions, including, among other things, receipt of Company shareholder approval and applicable regulatory approvals and is expected to close in the first half of 2027. The Merger Agreement also contains termination rights for each of the Company and Parent and associated fees under specified circumstances. If the Merger is consummated, the Shares will be delisted from the New York Stock Exchange and deregistered under the Securities Exchange Act of 1934, as amended.
Current report
The foregoing summary of the Merger Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Merger Agreement, which is filed as Exhibit 2.1 of our Current Report on Form 8-K filed on August 13, 2026.
Current report
Partnership with WoodStar Reciprocal Exchange
Current report
During the second quarter of 2026, we entered a partnership with the newly formed WoodStar Reciprocal Exchange (“WoodStar”). WoodStar was funded with a total of $220 million of surplus notes, composed of $160 million investment in surplus notes by unrelated third parties and a $60 million investment in surplus notes by WoodStar Risk Management Inc. ("WRMI"), WoodStar's attorney-in-fact, also funded by unrelated third parties. WRMI's investment in the surplus notes was partly funded by $40 million paid in kind interest debt instrument issued by an unrelated third party. WoodStar will provide underwriting capacity for the Accelerant Risk Exchange. Accelerant will provide underwriting and other services to WoodStar pursuant to contractual service arrangements. WoodStar is managed by WRMI. We hold a majority ownership interest in WRMI, a variable interest entity, however a third-party investor in the WoodStar structure maintains certain rights that provide contractual authority over the most substantial activities of WRMI, and therefore we do not consolidate WoodStar's financial results. Our ownership interest in WRMI will be treated as an equity method investment within our consolidated financial statements. Our maximum exposure to loss consists of our basis in our investment in WRMI (which was immaterial as of June 30, 2026), the obligation to perform under our service contracts with WoodStar and our share of the operating results from WRMI.
Current report
Ceding commission income of $75.1 million and $155.6 million for the three and six months ended June 30, 2026 decreased $26.5 million (or 26%) and $16.7 million (or 10%) from the three and six months ended June 30, 2025 amounts of $101.6 million and $172.3 million. Ceding commission income recognized for the three and six months ended June 30, 2026 included net reductions of $7.1 million due to sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. For the three and six months ended June 30, 2025, ceding commission income recognized included increases of $12.5 million due to net sliding scale commission adjustments resulting from the favorable loss experience of covered insurance contracts.
Current report
Direct commission income was $92.5 million and $143.3 million for the three and six months ended June 30, 2026, respectively, representing increases of $58.3 million (or 170%) and $81.0 million (or 130%) as compared to the same periods in 2025 of $34.2 million and $62.3 million, respectively. These increases were primarily due to planned contract modifications with certain of our third party insurers that caused premium that would have been assumed by Accelerant Underwriting to instead be subject to reinsurance coordinated directly by our third party insurers with independent reinsurers. These changes were effective at the beginning of the second quarter 2026 and led to increased direct commission income of $22.1 million. Additionally, we executed a transaction that returned a portion of unearned premium from Accelerant Underwriting to third party insurers resulting in an additional $12.6 million of direct commission income. The remaining increase in commissions related to increased volume in our Exchange Services and MGA Operations segments on business written with other unaffiliated entities.
Current report
Accelerant direct and assumed GWP was $742.6 million and $1.59 billion for the three and six months ended June 30, 2026, respectively, representing a decrease of $168.7 million (or 19%) and a decrease of $198.8 million (or 11%) compared to the same periods in 2025 of $911.3 million and $1.79 billion, respectively.
Current report
The quarter-over-quarter and year-over-year change in Accelerant GWP is the result of new and existing Member growth that was more than offset by the increasing share of Exchange Written Premium written by third-party Accelerant Risk Exchange Insurers (instead of by Accelerant Underwriting).
Current report
Net written premiums were $174.2 million and $324.9 million for the three and six months ended June 30, 2026, representing an increase of $155.4 million (or 827%) and $233.7 million (or 256%) compared to the same periods in 2025 of $18.8 million and $91.2 million. The increase, despite the aforementioned drivers of the reduction in Accelerant GWP, is related to an increase in our net retention of Accelerant GWP (23.5% and 20.5% for the three and six months ended June 30, 2026 compared to 2.1% and 5.1% for the same periods in 2025).
Current report
Our retention increased relative to the comparative prior year periods, as well as compared to our targeted retention level of 10%, primarily due to additional premium that we assumed from third party insurers as a result of commutation transactions. The reserves assumed by Accelerant under those commutations were then subject to outbound loss portfolio transfers executed during the second quarter. Additionally, the cost of our excess of loss reinsurance for the three and six months ended June 30, 2026 was lower than in the same periods in 2025. Finally, our retention of premium during the comparative six months ended June 30, 2025 was lower than typical due to the effect of incremental quota-share reinsurance transactions we executed during the second quarter of 2025.
Current report
Net investment income was $7.2 million and $19.3 million for the three and six months ended June 30, 2026, respectively, representing a decrease of $5.6 million (or 44%) and a decrease of $5.7 million (or 23%) compared to the same periods in 2025 of $12.8 million and $25.0 million, respectively. The decrease was driven by an increase in interest expense on funds held under reinsurance.
Current report
Net realized gains on investments were $26.0 million and $26.1 million for the three and six months ended June 30, 2026, respectively, representing increases of $25.6 million and $23.4 million compared to the same periods in 2025 of $0.4 million and $2.7 million. For the three months ended June 30, 2026, we recognized $54.1 million of total gains ($27.0 million of income as a component of unrealized gains and $27.1 million of income as a component of realized gains) following observable prices related to one of our investments in a TPA following capital markets transactions, in which we participated by selling approximately half of our ownership interest.
Current report
Net unrealized gains on investments were $27.0 million for both the three and six months ended June 30, 2026, representing increases of $27.5 million and $25.8 million compared to net unrealized losses of $0.5 million for the three months ended June 30, 2025 and net unrealized gains of $1.2 million for the six months ended June 30, 2025. These increases were primarily driven by the aforementioned gain on the increase in value of our investment in one of our TPAs.
Current report
Net losses and LAE were $71.7 million and $153.5 million for the three and six months ended June 30, 2026, respectively, representing increases of $20.4 million (or 40%) and $57.0 million (or 59%) compared to the same periods in 2025 of $51.3 million and $96.5 million, respectively. These increases were, in each period, driven primarily by growth in our net earned premium base. Net losses for the three and six months ended June 30, 2026 included a $7.3 million gain resulting from a commutation agreement completed during the second quarter of 2026.
Current report
General and administrative expenses were $129.5 million and $253.3 million for the three and six months ended June 30, 2026, respectively, representing increases of $40.4 million (or 45%) and $88.9 million (or 54%) compared to the same periods in 2025 of $89.1 million and $164.4 million, respectively. When excluding the share-based compensation expenses, the increase was 21% and 23% for the three and six months ended June 30, 2026, which was lower than the 39% and 47% increase in total operating revenues for the same periods.
Current report
We also experienced $3.6 million and $6.3 million increases in system development non-operating expenses for the three and six months ended June 30, 2026, respectively, driven by costs associated with supporting the development and implementation of our integrated reinsurance and accounting system and increases in other individually insignificant costs of $2.4 million and $3.1 million for the three and six months ended June 30, 2026, respectively, as partially offset by decreases in professional costs related to corporate development activities of $1.1 million and $0.7 million for the three and six months ended June 30, 2026.
Current report
(3)Total segment revenues reconciles to consolidated revenues by adding the corporate and other, consolidation and elimination adjustments, and net realized and unrealized gains on investments presented within this disclosure.
Current report
(4)General and administrative expenses is composed of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:
Current report
(6)The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments.
Current report
(7)Other expenses for the three months ended June 30, 2026 consist of $5.0 million of professional costs related to corporate development, $7.2 million of system development non-operating costs, $13.1 million of Mission profits sharing expense (including $10.0 million of buy-out expenses of existing interests) and $1.5 million of other individually insignificant costs.
Current report
(3)Total segment revenues reconciles to consolidated revenues by adding the corporate and other, consolidation and elimination adjustments, and net realized and unrealized gains on investments presented within this disclosure.
Current report
(4)General and administrative expenses is composed of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:
Current report
(5)The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments.
Current report
(7)Other expenses for the three months ended June 30, 2025 consist of $6.1 million of professional costs related to corporate development activities, $3.6 million system development non-operating costs, $4.4 million of Mission profits sharing expense, as offset by a net reduction of $0.9 million of other individually insignificant costs.
Current report
(3)Total segment revenues reconciles to consolidated revenues by adding the corporate and other, consolidation and elimination adjustments, and net realized and unrealized gains on investments presented within this disclosure.
Current report
(4)General and administrative expenses is composed of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:
Current report
(5)The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments.
Current report
(7)Other expenses for the six months ended June 30, 2026 consist of $14.5 million of system development non-operating expenses, $9.0 million of professional costs related to corporate development, $16.8 million of Mission profits sharing expense (including $10.0 million of buy-out expenses of existing interests) and $4.2 million of individually insignificant costs.
Current report
(3)Total segment revenues reconciles to consolidated revenues by adding the corporate and other, consolidation and elimination adjustments, and net realized and unrealized gains on investments presented within this disclosure.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Removed paragraphs (24)
Previous report
Notes:
Previous report
Number of MGA Operations Members
Previous report
Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Earnings Per Diluted Share
Previous report
We define “Adjusted Earnings per Diluted Share” as adjusted net income for a period divided by the corresponding weighted average diluted shares on a U.S. GAAP basis (GAAP diluted shares are used for simplicity and that any difference from recalculating such diluted shares using adjusted income is expected to be immaterial).
Previous report
Ceding commission income of $80.5 million for the three months ended March 31, 2026 increased $9.8 million (or 13.9%) from the prior year comparable period of $70.7 million due to the continued growth in our gross earned premium base and the amount ceded to reinsurers. There were no net sliding scale commission adjustments during the three months ended March 31, 2026 and 2025.
Previous report
Direct commission income of $50.8 million for the three months ended March 31, 2026 increased $22.7 million (or 80.8%) from the prior year comparable period of $28.1 million, 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 report
Net written premium of $150.7 million for the three months ended March 31, 2026 increased $78.3 million (or 108.1%) from $72.4 million in the prior year comparable period. The increase, despite the aforementioned decrease in GWP, is related to our increased net retention (17.9% for the three months ended March 31, 2026 compared to 8.3% for the prior year comparable period). The increased retention compared to the prior year comparable period, as well as our targeted retention levels of 10%, was primarily due to the effect of a commutation entered into with one of our Risk Capital Partners, growth in our UK business which has higher retention rates due to regulatory requirements, and the impact of certain reinsurance reinstatement premiums (which reduce earned premiums) in the first quarter of 2025.
Previous report
Net investment income of $12.1 million for the three months ended March 31, 2026 decreased $0.1 million (or 0.8%) from $12.2 million in the prior year comparable period. The relatively flat performance was driven by a lower rate of return from the mix of cash and investments as offset by the increase in total average cash and investments for the three months ended March 31, 2026 of $2.52 billion compared to $1.99 billion for the three months ended March 31, 2025.
Previous report
Net realized gains on investments of $0.1 million for the three months ended March 31, 2026 compared to $2.3 million in the prior year comparable period. The 2025 net realized gains on investments included a $2.0 million revaluation gain on an equity method investee as part of a step acquisition.
Previous report
Net Unrealized Gains on Investments
Previous report
There were no net unrealized gains on investments for the three months ended March 31, 2026 compared to net unrealized gains on investments of $1.7 million in the prior year comparable period related to a gain on a TPA investment.
Previous report
Net losses and LAE of $81.8 million for the three months ended March 31, 2026 increased $36.6 million (or 81.0%) compared to $45.2 million in the prior year comparable period. This increase was driven primarily by growth in our net earned premium base.
Previous report
General and administrative expenses of $123.8 million for the three months ended March 31, 2026 increased $48.5 million (or 64.4%) compared to $75.3 million in the prior year comparable period, although as noted below, when excluding the share-based compensation expenses, the increase was 25.8% which was lower than the 53.5% increase in total revenues.
Previous report
We also experienced increases in professional costs related to corporate development activities of $0.4 million and in other individually insignificant expenses of $0.7 million.
Previous report
(3)General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:
Previous report
(4)The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments.
Previous report
(3)General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:
Previous report
(4)The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments.
Previous report
(6)Other expenses for the three months ended March 31, 2025 consists of $4.6 million of system development non-operating costs, $3.6 million of professional costs related to corporate development, $1.6 million of Mission profits sharing expense, and $2.0 million of individually insignificant costs.
Previous report
MGA Operations Adjusted EBITDA of $16.8 million for the three months ended March 31, 2026 decreased $1.3 million compared to the three months ended March 31, 2025, driven primarily by an increase of $6.1 million in general and administrative expense to support the growth of the segment, partially offset by the aforementioned increased in direct commission income of $4.8 million.
Previous report
For the three months ended March 31, 2026, net earned premium increased by $66.8 million to $129.8 million due to our gross earned premium growth over the preceding year, partially offset by a decrease of $9.2 million in ceding commission income compared to the three months ended March 31, 2025.
Previous report
ceding commission income associated with the increase in retention over the prior year comparable period.
Previous report
Net cash used in operating activities for the three months ended March 31, 2026 was $21.4 million compared to net cash provided by operating activities of $91.8 million for the three months ended March 31, 2025. Our operating cashflows for the first quarter of 2026 were principally reduced by underwriting related cash flow timing with which we paid outstanding balances with our reinsurance and other counterparties that were recorded as liabilities as of December 31, 2025. The timing of such payments had been delayed in connection with certain reinsurance set-up activities as of December 31, 2025.
Previous report
Net cash used in financing activities for the three months ended March 31, 2025 of $2.3 million was due to dividends paid to non-controlling interests.
Reworded paragraphs (101)
Previous wording
By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the preeminent marketplace of the specialty insurance industry. As of March 31, 2026, we had 296 Members (an increase of 16 Members since December 31, 2025) and 96 Risk Capital Partners on our platform. We have grown Exchange Written Premium at a 178% compounded annual growth rate since our inception. As we have matured and continued to scale our business, our annual growth rate has moderated.
Current wording
By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the preeminent marketplace of the specialty insurance industry. As of June 30, 2026, we had 314 Members (an increase of 18 Members since March 31, 2026) and 97 Risk Capital Partners on our platform. We have grown Exchange Written Premium at a 171% compounded annual growth rate since our inception. As we have matured and continued to scale our business, our annual growth rate has moderated.
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.
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 through 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
(1) The year-over-year growth rate of 16% for the three months ended March 31, 2026 was suppressed relative to prior periods as it reflects our placement of certain Members into runoff. Excluding that Member, Exchange Written Premium grew by $204.1 million (or 22%) for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.
Current wording
(1)The year-over-year growth rate of 23% and 20% for the three and six months ended June 30, 2026 was suppressed relative to prior periods as it reflects our placement of an underperforming Member into runoff. Excluding that Member, Exchange Written Premium grew by $291.4 million (or 28%) and $495.5 million (or 25%) for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025.
Previous wording
Our Risk Capital Partners (“Demand Side” of the Risk Exchange)
Current wording
Our Risk Capital Partners (“Demand Side” of the Accelerant Risk Exchange)
Previous wording
Currently, our Risk Capital Partners include third-party insurance companies, reinsurance companies, and institutional investors. As of March 31, 2026, 18 Accelerant Risk Exchange Insurers (an increase of five Accelerant Risk Exchange Insurers since March 31, 2025) accessed gross premium written directly from the Accelerant Risk Exchange (on a primary insurance basis) rather than via reinsurance from Accelerant Underwriting, accounting for 41% of the premium written on the Accelerant Risk Exchange for the three months ended March 31, 2026, as compared to 19% for the three months ended March 31, 2025.
Current wording
Currently, our Risk Capital Partners include third-party insurance companies, reinsurance companies, and institutional investors. As of June 30, 2026, 19 Accelerant Risk Exchange Insurers (an increase of five Accelerant Risk Exchange Insurers since June 30, 2025) accessed gross premium written directly from the Accelerant Risk Exchange (on a primary insurance basis) rather than via reinsurance from Accelerant Underwriting, accounting for 44% of the premium written on the Accelerant Risk Exchange for the six months ended June 30, 2026, as compared to 23% for the six months ended June 30, 2025.
Previous wording
For Accelerant Underwriting, we have historically targeted reinsuring approximately 90% of our gross premium written to institutional investors and third-party reinsurers, while retaining approximately 10% of these gross premiums written. For the trailing twelve months ended March 31, 2026, Accelerant-Retained Exchange Premium represented 10% 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, while retaining approximately 10% of these gross premiums written. For the trailing twelve months ended June 30, 2026, Accelerant-Retained Exchange Premium represented 13% of Exchange Written Premium.
Previous wording
We operate our business across three reportable segments – Exchange Services, which is the core of Accelerant, as well as MGA Operations and Underwriting. Exchange Services and MGA Operations are both fee-based businesses. Underwriting captures the net ceding commission income from reinsurers and Flywheel Re and net underwriting profit from retained business that we write or assume.
Current wording
We operate our business across three reportable segments – Exchange Services, which is the core of Accelerant, as well as MGA Operations and Underwriting. Exchange Services and MGA Operations are both fee-based businesses. Underwriting captures the net ceding commission income from reinsurers and Flywheel Re, an unconsolidated reinsurance sidecar, and net underwriting profit from retained business that we write or assume.
Previous wording
•Underwriting: Our Underwriting segment includes all revenue and expenses associated with our Accelerant Underwriting companies (each of which solely operates through the Accelerant 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 Accelerant Risk Exchange. Accelerant Underwriting pays commissions to the Accelerant Risk Exchange as consideration to access this business on market-consistent terms with the Accelerant 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 the Accelerant Risk Exchange premium underwritten by Accelerant Underwriting to decrease over time, relative to other segments, as the Accelerant Risk Exchange Insurers increase in number and grow their premium written through our Accelerant 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 Accelerant 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 Accelerant Risk Exchange. Accelerant Underwriting pays commissions to the Accelerant Risk Exchange as consideration to access this business on market-consistent terms with the Accelerant Risk Exchange Insurers. This is offset by the ceding commission we receive from several third-party reinsurers including Flywheel Re, 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 the Accelerant Risk Exchange premium underwritten by Accelerant Underwriting to decrease over time, relative to other segments, as the Accelerant Risk Exchange Insurers increase in number and grow their premium written through our Accelerant Risk Exchange.
Previous wording
(all amounts exclude general and administrative expenses)
Current wording
Notes:(all amounts exclude general and administrative expenses)
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(1)Calculated as Exchange Services direct commission income divided by Exchange Written Premium (rounded from 8.3%).
Current wording
(1)Calculated as Exchange Services direct commission income divided by Exchange Written Premium (rounded from 8.4%).
Previous wording
(2)Calculated as MGA Operations direct commission income and net investment income, divided by Exchange Written Premium attributable to Mission Members and Owned Members (rounded from 17.5%).
Current wording
(2)Calculated as MGA Operations direct commission income and net investment income, divided by Exchange Written Premium attributable to Mission Members and Owned Members.
Previous wording
(3)Calculated as net earned premium and ceding commission income, reduced by losses and loss adjustment expenses and the amortization of DAC, plus net investment income expressed as a percentage of total Underwriting gross earned premium (rounded from 3.4%).
Current wording
(3)Calculated as net earned premium and ceding commission income, reduced by losses and loss adjustment expenses and the amortization of DAC, plus net investment income expressed as a percentage of total Underwriting gross earned premium (rounded from 2.8%).
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 96 as of March 31, 2026. As of March 31, 2026, we had 18 Accelerant 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 97 as of June 30, 2026. As of June 30, 2026, we had 19 Accelerant 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 Accelerant Risk Exchange. We believe the historic quality of the portfolio written by our Members is reflected by the gross loss ratios of 52.1% and 53.3% for the three months ended March 31, 2026 and 2025, 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 Accelerant Risk Exchange. We believe the historic quality of the portfolio written by our Members is reflected by the Gross Loss Ratios of 52.0% and 51.8% for the six months ended June 30, 2026 and 2025, 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
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.
Current wording
Net investment income represents interest earned from fixed maturity securities, short-term securities and other investments, less interest expense on funds held under reinsurance. 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
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 our Accelerant Risk Exchange premium volume. However, these and other functions within the Accelerant Risk Exchange (including costs of supporting the development of the Accelerant 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.
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 our Accelerant Risk Exchange premium volume. However, these and other functions within the Accelerant Risk Exchange (including costs of supporting the development of the Accelerant 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 share units, share 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
As of March 31, 2026, we had net deferred tax assets of $78.3 million and also apply valuation allowances to certain of our deferred tax assets of unutilized net operating losses (“NOLs”) and other basis differences in jurisdictions that have generated cumulative losses.
Current wording
As of June 30, 2026, we had net deferred tax assets of $76.4 million and also apply valuation allowances to certain of our deferred tax assets of unutilized net operating losses (“NOLs”) and other basis differences in jurisdictions that have generated cumulative losses. Our net deferred tax assets can not be offset with net deferred tax liabilities from different tax jurisdictions. As of June 30, 2026, one of our tax jurisdictions had $2.5 million of net deferred tax liabilities. All other jurisdictions had aggregate net deferred tax assets of $78.9 million.
Previous wording
(2)See the definitions of Exchange Written Premium, Accelerant Direct Written Premium, Third-Party Direct Written Premium, Accelerant-Retained Exchange Premium, and Exchange Written Premium Growth Rate below for explanation of calculations and metrics.
Current wording
(1)See definitions below for explanation of calculations and metrics.
Previous wording
(1)Refer to “—Reconciliation of Non-GAAP financial measures” section for details on how non-GAAP measures are defined and reconciled to GAAP measures.
Current wording
(2)Refer to “Reconciliation of Non-GAAP financial measures” section for details on how non-GAAP measures are defined and reconciled to to the most applicable GAAP measures. Beginning with first quarter of 2026, we updated certain definitions for our non-GAAP measures to exclude the impact of net realized and unrealized investment gains or losses. Net realized and unrealized investment gains (losses) were $53.0 million and $(0.1) million in the second quarter of 2026 and 2025, respectively, and $53.1 million and $3.9 million in the first six months of 2026 and 2025, respectively. Amounts for the three and six months ended June 30, 2025 in the table above were recast to reflect the new presentation.
Previous wording
As of March 31, 2026, we had 296 Members. Our Members wrote $1.14 billion of Exchange Written Premium for the three months ended March 31, 2026. This compares to Exchange Written Premium of $985.2 million for the three months ended March 31, 2025, representing a 16% increase. Of our 296 Members, 35 are Mission Members, 18 are Owned Members, and 243 are Independent Members. Of the $1.14 billion in Exchange Written Premium for the three months ended March 31, 2026, 59% was written by Accelerant Underwriting as Accelerant Direct Written Premium and 41% was written by our 18 Risk Exchange Insurers as Third-Party Direct Written Premium.
Current wording
As of June 30, 2026, we had 314 Members. Our Members wrote $2.46 billion of Exchange Written Premium for the six months ended June 30, 2026. This compares to Exchange Written Premium of $2.06 billion for the six months ended June 30, 2025, representing a 20% increase. Of our 314 Members, 35 are Mission Members, 18 are Owned Members, and 261 are Independent Members. Of the $2.46 billion in Exchange Written Premium for the six months ended June 30, 2026, 56% was written by Accelerant Underwriting as Accelerant Direct Written Premium and 44% was written by our 19 Accelerant Risk Exchange Insurers as Third-Party Direct Written Premium.
Previous wording
We define Net Revenue Retention, expressed as a percentage, as the current period’s Exchange Written Premium for Members that were actively writing Exchange Written Premium in the comparable period divided by these same Members’ prior-period Exchange Written Premium. This measure demonstrates an aggregate measure of the net growth of Exchange Written Premium from previously onboarded Members.
Current wording
We define Net Revenue Retention, expressed as a percentage, as the current trailing twelve-month period’s Exchange Written Premium for Members that were actively writing Exchange Written Premium in the comparable trailing twelve-month period divided by these same Members’ prior-period Exchange Written Premium. This measure demonstrates an aggregate measure of the net growth of Exchange Written Premium from previously onboarded Members.
Previous wording
We define Accelerant-Retained Exchange Premium, expressed as a percentage, as Accelerant GWP net of ceded written premium for the trailing twelve-month period, divided by total Exchange Written Premium for the trailing twelve-month period. This represents the percentage of total Exchange Written Premium that Accelerant-owned insurance companies retain relative to total written premiums. We expect this retained portion of Exchange Written Premium in the aggregate to decrease over time as Exchange Written Premium is increasingly written with existing and new Accelerant Risk Exchange Insurers.
Current wording
We define Accelerant-Retained Exchange Premium, expressed as a percentage, as Accelerant GWP net of ceded written premium for the trailing twelve-month period, divided by total Exchange Written Premium for the trailing twelve-month period. This represents the percentage of total Exchange Written Premium that Accelerant-owned insurance companies retain relative to total Exchange Written Premiums. We expect this retained portion of Exchange Written Premium in the aggregate to decrease over time as Exchange Written Premium is increasingly written with existing and new Accelerant Risk Exchange Insurers.
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, 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, and Mission profit sharing expenses.
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, and Mission profit sharing expenses (including periodic buyouts of existing awards).
Previous wording
•Share-based compensation expenses included within general and administrative expenses: Represents non-cash expense related to the fair value of share-based equity awards granted to employees and directors, including restricted stock units and stock options and other awards that can settle in cash, recognized over the requisite service period for the awards.
Current wording
•Share-based compensation expenses included within general and administrative expenses: Represents non-cash expense related to the fair value of share-based equity awards granted to employees and directors, including restricted share units and share options and other awards that can settle in cash, recognized over the requisite service period for the awards.
Previous wording
We define Adjusted Net Income (Loss) as GAAP net income (loss) excluding the impact of the following items:
Current wording
We define "Adjusted Net Income" as GAAP net income (loss) excluding the impact of the following items:
Previous wording
We define “Adjusted EBITDA Margin” as Adjusted EBITDA divided by Operating Revenues. Adjusted EBITDA Margin is an internal performance measure used in the management of our operations.
Current wording
We define “Adjusted EBITDA Margin” as Adjusted EBITDA divided by Operating Revenues. Adjusted EBITDA Margin is an internal performance measure used in the management of our operations. The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial measures is set forth in the reconciliation table below.
Previous wording
The following table provides a reconciliation of net (loss) income to Adjusted net income (loss), Adjusted EBITDA and Adjusted EBITDA margin for the three months ended March 31, 2026 and 2025:
Current wording
The following table provides a reconciliation of net income to Adjusted net income, Adjusted EBITDA and Adjusted EBITDA margin for the three and six months ended June 30, 2026 and 2025:
Previous wording
(2)Other expenses for the three months ended March 31, 2026 and 2025 consisted of the following:
Current wording
(2)Other expenses for the three and six months ended June 30, 2026 and 2025 consisted of the following:
Previous wording
(3)The tax effect of other expenses adjustments to net income (loss) for each period presented were calculated using the applicable statutory tax rates for each of our legal entities where such revenues were earned and expenses 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 net operating losses. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the revenues were earned and expenses 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 applicable statutory tax rates for each of our legal entities where such revenues were earned and expenses 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 net operating losses. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the revenues were earned and expenses incurred in each year.
Previous wording
The following tables reflect our consolidated results of operations for the three months ended March 31, 2026 and 2025 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 Quarterly Report on Form 10-Q.
Current wording
The following tables reflect our consolidated results of operations for the three and six months ended June 30, 2026 and 2025 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 Quarterly Report on Form 10-Q.
Previous wording
(1)General and administrative expenses include share-based compensation expenses of $32.1 million and $2.4 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(1)General and administrative expenses include share-based compensation expenses of $25.2 million and $3.0 million for the three months ended June 30, 2026 and 2025, respectively, $57.3 million and $5.4 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
The following table presents the amounts of ceding commissions deferred and amortized for the three months ended March 31, 2026 and 2025:
Current wording
The following table presents the amounts of ceding commissions deferred and amortized for the three and six months ended June 30, 2026 and 2025:
Previous wording
Additionally, the amount of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) increased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is further discussed below under “— Segment Information — Consolidation and Elimination Adjustments.”
Current wording
Additionally, the amount of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) decreased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is further discussed below under “Segment Information — Consolidation and Elimination Adjustments.”
Previous wording
Accelerant direct and assumed GWP of $843.9 million for the three months ended March 31, 2026 decreased $30.1 million (or 3.4%) from the prior year of $874.0 million. The decrease was driven by the increase in premiums written with third-party Accelerant Risk Exchange Insurers instead of by Accelerant Underwriting, partially offset by new and existing Member growth. Since March 31, 2025, we have added 64 new Members, bringing the total number of Members to 296 as of March 31, 2026. This Member growth was driven by our continued expansion across all of our markets.
Current wording
Since June 30, 2025, we have added 66 new Members, bringing the total number of Members to 314 as of June 30, 2026. This Member growth was driven by our continued expansion across all of our markets.
Previous wording
Net earned premiums of $129.8 million for the three months ended March 31, 2026 increased $66.8 million (or 106.0%) from $63.0 million in the prior year comparable period as a result of the earn-through of increased net written premium occurring over the last year consistent with that described for the most recent three-month period above.
Current wording
Net earned premium was $129.1 million and $258.9 million for the three and six months ended June 30, 2026, respectively, representing increases of $58.5 million (or 83%) and $125.3 million (or 94%) compared to the same periods in 2025 of $70.6 million and $133.6 million, respectively. These increases were driven by the earn-through of increased net written premium occurring over the last year consistent with that described for the most recent three-month and six-month periods above.
Previous wording
The table below shows the amount of premiums written on a gross and net basis, as well as net earned premiums for the three months ended March 31, 2026 and 2025:
Current wording
The table below shows the amount of Accelerant premiums written on a gross and net basis, as well as net earned premiums for the three and six months ended June 30, 2026 and 2025:
Previous wording
Gross incurred losses and LAE of $407.3 million for the three months ended March 31, 2026 increased by $24.5 million (or 6.4%) compared to the prior year comparable period of $382.8 million, while ceded losses and LAE of $325.5 million for the three months ended March 31, 2026 decreased $12.1 million (or (3.6)%) compared to the prior year comparable period of $337.6 million under our external reinsurance program.
Current wording
Gross incurred losses and LAE of $400.2 million and $807.5 million for the three and six months ended June 30, 2026 increased by $4.8 million or 1% and $29.3 million or 4%, respectively, compared to the same periods in 2025 of $395.4 million and $778.2 million, respectively, while ceded losses and LAE of $328.5 million and $654.0 million for the three and six months ended June 30, 2026 decreased $15.6 million or 5% and $27.7 million or 4%, respectively, compared to the same periods in 2025 of $344.1 million and $681.7 million, respectively, under our external reinsurance program.
Previous wording
Our net loss ratios of 63.0% and 71.7% differ from the gross loss ratios of 52.1% and 53.3% for the three months ended March 31, 2026 and 2025, respectively, primarily due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which, in most cases, inures to the benefit of our Risk Capital Partners, supports our management of downside risk to large losses within our financial statements.
Current wording
Our net loss ratio differs from the gross loss ratio (52.0% for both the three and six months ended June 30, 2026, and 50.5% and 51.8% for the three and six months ended June 30, 2025, respectively) primarily due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which, in most cases, inures to the benefit of our Risk Capital Partners, supports our management of downside risk to large losses within our financial statements.
Previous wording
See “Segment Information—Comparison of the three months ended March 31, 2026 and 2025—Underwriting” below for further information regarding our loss and loss adjustment expenses.
Current wording
See “Segment Information—Comparison of the three and six months ended June 30, 2026 and 2025—Underwriting” below for further information regarding our loss and loss adjustment expenses.
Previous wording
The table below reflects our net loss ratio for the three months ended March 31, 2026 and 2025:
Current wording
The table below reflects our net loss ratio for the three and six months ended June 30, 2026 and 2025:
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Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Adjusted EBITDA and Adjusted Net Income
Current report — wording carried from elsewhere
Net Unrealized Gains (Losses) on Investments
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 and 2025, foreign exchange losses of $8.0 million and gains of $10.3 million were recognized in other comprehensive income related to foreign currency translation adjustments, respectively. Also included were $1.0 million of losses and $5.7 million of gains for the six months ended June 30, 2026 and 2025, respectively, related to foreign exchange impacts related to unrealized gains (losses) on fixed maturity securities.
Current report — wording carried from elsewhere
(5)Share-based compensation expenses are included in "General and administrative expenses" within the condensed consolidated statements of operations.
Current report — wording carried from elsewhere
The following includes the financial results of our three reportable segments for the six months ended June 30, 2026 and 2025. Corporate functions and certain other businesses and operations are included in Corporate and Other.
Current report — wording carried from elsewhere
(2)Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 8 to our interim condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current report — wording carried from elsewhere
(2)Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 8 to our interim condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current report — wording carried from elsewhere
The components of our Underwriting segment gross and net loss ratios are set forth in the tables below for the six months ended June 30, 2026 and 2025:
Current report — wording carried from elsewhere
While we write insurance products in each of these potentially impacted areas, we also maintain significant reinsurance coverage such that our net exposure is limited. Overall our gross claims are expected to be $190 million which leads to the net expected amount of $17 million. In addition to our quota share cover, for the 2025 and prior treaty years, our US property catastrophe excess of loss retention for a modelled gross occurrence is expected to significantly reduce our net exposure to insignificant levels as part of our business model to limit our exposure to insurance risk.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
We define the number of MGA Operations members as the number of Mission Members and Owned Members under contract with the Accelerant Risk Exchange as of the period end date.
Previous report — wording carried elsewhere
The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial measures is set forth in the reconciliation table accompanying this document.