Octave Specialty Group's Third-Quarter Loss Narrows

The Tip Desk · November 9, 2026 · 3 min read

Adjusted EBITDA to shareholders was $3.3 million, and Insurance Distribution revenue rose 35% to $58.4 million.

Octave Specialty Group, Inc. (OSG), a global specialty insurance firm, reported a $13.8 million net loss from continuing operations attributable to shareholders for the three months ended September 30, 2026, versus a $31.7 million loss a year earlier.

Total revenue was $85.3 million, up 28% from $66.6 million in the year-ago quarter. The company said the increase was driven by 35% revenue growth in Insurance Distribution, including 23% organic growth and the ArmadaCare acquisition, as well as 52% earned-premium growth at Everspan.

Adjusted EBITDA to shareholders was $3.3 million, compared with a $2.9 million deficit a year earlier. Adjusted net loss attributable to shareholders was $1.3 million, versus $10.0 million a year earlier. Diluted loss from continuing operations attributable to shareholders was $0.31 a share.

Insurance Distribution total revenue was $58.4 million. Organic revenue growth was 23%. Premiums placed were $293.4 million. Adjusted EBITDA to shareholders in the segment was $8.3 million, compared with $6.0 million a year earlier. Net loss to shareholders in Insurance Distribution was $4.2 million, versus $5.4 million a year earlier. The company said the organic result was consistent with its seasonally adjusted third-quarter plan and reflected its diversified portfolio and MGA incubator.

Everspan, the Specialty P&C Insurance segment, reported gross premiums written of $98.8 million, up 2% from a year earlier, and net premiums written of $25.6 million, up 44%. Net premiums earned were $25.8 million. Total revenue was $30.9 million. The segment posted net income of $1.3 million, compared with a $0.1 million net loss a year earlier. Adjusted EBITDA to shareholders was $2.2 million, versus less than $0.1 million a year earlier.

The combined ratio improved to 100.6% from 112.9% a year earlier. The loss ratio was 57.1%, versus 84.5% a year earlier. The expense ratio rose to 43.5% from 28.4% a year earlier. President and Chief Executive Officer Claude LeBlanc said Everspan’s results continued to reflect repositioning of its growing programs business and that the combined ratio improved meaningfully from the prior-year period.

Corporate net loss narrowed to $10.8 million from $26.3 million a year earlier. The company attributed the improvement in continuing-operations loss to Insurance Distribution, Everspan, and the smaller Corporate loss.

Stockholders’ equity attributable to common shareholders was $684 million, or $15.19 a share, at September 30, 2026, compared with $699 million, or $15.52 a share, at June 30, 2026. The company said the decline was primarily a result of $18 million of comprehensive loss attributable to common shareholders, partially offset by $4 million of additional paid-in capital related to share-based compensation.

Subsequent to quarter end, Everspan entered into an agreement to sell Providence Washington Insurance Company, a redundant admitted shell company, which the company said is expected to help simplify its operating structure and further strengthen its capital base.

LeBlanc said Octave delivered a solid third quarter with continued growth in Insurance Distribution and further progress at Everspan, despite a P&C market that has become more competitive as the year has progressed. The company said it expects market softening to continue into 2027 and that its operating model was built to perform through market cycles.