OSG · Octave Specialty Group, Inc.

Octave Specialty Group delivered a strong first quarter in 2026, marked by a 66% increase in total revenue to $104.2 million. This growth was primarily driven by the Insurance Distribution segment, where revenue surged 92% to $78.5 million, bolstered by the October 2025 acquisition of ArmadaCare and robust organic growth of 42%. The segment's performance significantly improved the company's overall profitability profile, with Insurance Distribution generating $13.2 million in net income to shareholders compared to a $3.4 million loss in the prior year period. Adjusted EBITDA for the segment reached $25.3 million, reflecting a 32.3% margin.

Conversely, the Specialty P&C Insurance segment (Everspan) faced headwinds, reporting a net loss of $7.7 million compared to net income of $1.4 million in the same quarter last year. This decline was largely attributable to a $7.9 million charge related to the settlement of a potential litigation matter concerning a run-off program, comprising $2.1 million in losses and $5.8 million in legal expenses. Excluding this non-recurring item, Everspan generated Adjusted EBITDA of $1.6 million. Management highlighted that active programs maintained a loss ratio of 57%, consistent with current accident year performance expectations. Despite the quarterly net loss attributable to shareholders of $6.9 million, the company reported positive Adjusted net income of $16.6 million, or $0.37 per diluted share, signaling underlying operational strength in the core distribution business.