Octave Specialty Q2 revenue up 51%; loss ratio drops to 61.4%

Octave Specialty Group reported a 51% jump in second-quarter revenue, driven by its Insurance Distribution segment, while underwriting losses at its Everspan unit narrowed sharply.

Total revenue reached $83 million, up from $55 million a year earlier. The Insurance Distribution segment accounted for $56.6 million, CEO Claude LeBlanc said. That figure included a full quarter from ArmadaCare, acquired in 2025, and 44% organic growth across the managing general agent platform.

At Everspan, the combined ratio improved by more than 600 basis points from the second quarter of 2025. The loss ratio fell to 61.4%. Gross premiums written were broadly flat at $95 million, down 2%. Net premiums written rose 52% to $23 million, a sign the company is retaining more risk rather than ceding it to reinsurers.

Octave reported a net loss attributable to shareholders of $14.4 million, narrower than the $20.5 million loss a year earlier. Adjusted net loss narrowed to $1.8 million from $10.6 million. Adjusted EBITDA attributable to shareholders turned positive at $3.7 million, compared with a $4.6 million loss in the prior-year period. The company said the improvement reflected stronger earnings from its Insurance Distribution business, supported by organic growth across its MGA platform and the ArmadaCare acquisition.

LeBlanc said the Insurance Distribution segment's performance reflected the ArmadaCare acquisition and diversification of the MGA portfolio. He noted progress at Everspan since repositioning efforts began in the second half of 2024.

During the quarter, Octave also launched an AI-driven underwriting platform designed to turn unstructured submissions into decision-ready risks. "We expect this platform to enable us to significantly accelerate and improve underwriting decisions and bring additional MGAs to market more quickly," LeBlanc said.