Octave Specialty Group, Inc.

Octave reported second-quarter 2026 net loss to shareholders of $14.4 million, or $0.33 per share, versus a loss of $20.5 million, or $0.42 per share, in Q2 2025. Consolidated EBITDA was negative $1.7 million versus negative $9.8 million last year, and adjusted EBITDA to shareholders was positive $3.7 million versus negative $4.6 million. Consolidated adjusted net loss to shareholders improved to $1.8 million, or $0.04 per share, from a loss of $10.6 million, or $0.22 per share. Insurance Distribution revenue grew 77% to $58.4 million; adjusted EBITDA to shareholders rose to $9.8 million from $2.5 million, and margin expanded to 16.8% from 7.6%. Everspan gross, net and earned premiums written were $95 million, $23 million and $22 million; its loss ratio was 61.4%, combined ratio was 100.6% versus 106.7% last year, and adjusted EBITDA was $1.8 million. Guidance was updated to Insurance Distribution organic growth of 25%+ and adjusted EBITDA of $45 million, Everspan adjusted EBITDA of $6 million, and adjusted net income per share of $0.15 to $0.20.

Claude LeBlanc framed the quarter as evidence that Octave’s platform is gaining scale, with strong organic growth in Insurance Distribution and improving execution at Everspan. He emphasized portfolio diversification across A&H, Specialty P&C and select property lines, saying it helps the company manage through a softer P&C market and preserve growth opportunities. He also highlighted the AI underwriting rollout, citing submit-to-quote time falling from several hours to about 7 minutes, and said implementation across remaining U.S. MGAs should finish in the second half of the year.

David Trick highlighted the quarter’s year-over-year improvement across the income statement, including the narrower shareholder loss, better adjusted EBITDA, and a lower corporate expense base. He said Insurance Distribution’s adjusted EBITDA benefited from ArmadaCare, organic growth, higher profit commissions, a 10% additional stake in Octave Ventures, and nearly $3 million less interest expense, while de novo MGA investment still reduced EBITDA to shareholders by about $1.1 million. On Everspan, he pointed to a 61.4% loss ratio, a 9.4% G&A ratio, and a 100.6% combined ratio, and said the full-year EBITDA guide was cut to $6 million because of higher acquisition costs tied to newer programs. He also lowered adjusted net income per share guidance to $0.15 to $0.20 from $0.50, citing interest expense, depreciation, taxes and noncontrolling interest allocation.

Analysts focused on the MGA launch pipeline, capacity availability, property and excess liability pricing, AI implementation costs, and Everspan underwriting quality. Management said only a modest number of new MGAs are expected, with 1 to 2 launches still targeted for 2026 and 2 to 4 for 2027, while stressing that the class of 2024 and 2025 MGAs are still early in their growth curves and will contribute more EBITDA into 2027 and beyond. On capacity, management said partners remain supportive because underwriting results have been good, and on pricing they described property markets as still softening, while excess liability remains generally positive and ahead of loss cost. They also said AI/technology investments this year are in the low-to-mid-single-digit millions for the tool itself plus a similar amount for broader technology upgrades, with benefits expected to outweigh costs.