Octave Specialty Group (OSG) investor relations material

Executive summary

• Q3 revenue rose 28% to $85.3M; adjusted EBITDA to shareholders improved to $3.3M from a $2.9M loss, while continuing-operations net loss attributable to shareholders narrowed to $13.8M from $31.7M.

• Insurance Distribution growth and improved Everspan underwriting supported results; P&C market softening and corporate costs remained headwinds.

Financial highlights

• Premium production rose 14% YoY to $392M: Insurance Distribution premiums placed were $293M, up 20%, and Specialty P&C gross premiums written were $99M, up 2%.

• Q3 adjusted net loss to shareholders narrowed to $1.3M from $10.0M; 9M adjusted net income was $13.5M versus a $26.5M loss.

• Q3 commissions rose to $48.0M from $36.1M and net premiums earned to $25.8M from $17.0M; interest expense declined to $2.7M from $6.2M.

Outlook and guidance

• FY 2026 Insurance Distribution organic revenue growth guidance increased to 25%+ from 20%+; adjusted EBITDA guidance rose to ~$45M from ~$40M.

• Specialty P&C adjusted EBITDA guidance decreased to ~$6M from ~$7.5M; GPW guidance remained ~$410M, while adjusted net income per share guidance fell to $0.15–$0.20 from ~$0.50.

• Adjusted corporate expense guidance remained ~$29.5M; management expects P&C softening to continue into 2027.

• 2027 capacity is largely lined up and expected to be oversubscribed; the 2028 consolidated adjusted EBITDA to shareholders target is $80M.