Accelerant HoldingsARX
Accelerant Holdings Goodwill & Intangibles Disclosure
11. Goodwill, other intangible assets and capitalized technology development costs
Goodwill
We have assigned goodwill to our reporting units for impairment testing purposes. As of December 31, 2025, we have two reporting units with goodwill - Owned Members within the MGA Operations segment and Underwriting (whereby the operating unit for impairment testing was at the operating segment level).
A roll forward of goodwill by reportable segment as of and for the years ended December 31, 2025, 2024 and 2023 is as follows:
| (in millions) | Underwriting | MGA Operations | Total | ||||||||||||||
| Balance as of January 1, 2023 | $ | 0.3 | $ | 18.0 | $ | 18.3 | |||||||||||
Acquisition of business (1) | 1.2 | 0.8 | 2.0 | ||||||||||||||
| Foreign currency translation | — | 0.4 | 0.4 | ||||||||||||||
| Balance as of December 31, 2023 | $ | 1.5 | $ | 19.2 | $ | 20.7 | |||||||||||
Acquisition of business (1) | — | 10.8 | 10.8 | ||||||||||||||
| Foreign currency translation | (0.1) | (0.5) | (0.6) | ||||||||||||||
| Balance as of December 31, 2024 | $ | 1.4 | $ | 29.5 | $ | 30.9 | |||||||||||
Acquisition of business (1) | — | 28.2 | 28.2 | ||||||||||||||
| Foreign currency translation | 0.1 | 3.9 | 4.0 | ||||||||||||||
| Balance as of December 31, 2025 | $ | 1.5 | $ | 61.6 | $ | 63.1 | |||||||||||
(1) Refer to Note 17 for additional information pertaining to business combinations and related sources of goodwill. For the year ended December 31, 2025, we recorded $27.7 million from Corniche acquisition and $0.5 million of goodwill from an immaterial acquisition.
We performed a qualitative assessment of its goodwill for impairment as of the years ended December 31, 2025, 2024 and 2023 and in each case we determined that it was more likely than not that the estimated fair value of the reporting units with goodwill exceed their respective carrying values.
Other intangible assets
A roll forward of other intangible assets as of and for the years ended December 31, 2025, 2024 and 2023 is as follows:
| (in millions) | Customer relationships | Licenses and other | Total | ||||||||||||||
| Gross carrying amount | |||||||||||||||||
| Balance as of January 1, 2023 | $ | 22.7 | $ | 12.7 | $ | 35.4 | |||||||||||
Acquisition of business (1) | 1.6 | — | 1.6 | ||||||||||||||
| Foreign currency translation | 0.6 | — | 0.6 | ||||||||||||||
| Balance as of December 31, 2023 | $ | 24.9 | $ | 12.7 | $ | 37.6 | |||||||||||
Acquisition of business (1) | 4.9 | 0.4 | 5.3 | ||||||||||||||
| Foreign currency translation | (0.2) | (0.1) | (0.3) | ||||||||||||||
| Balance as of December 31, 2024 | $ | 29.6 | $ | 13.0 | $ | 42.6 | |||||||||||
Acquisition of business (1) | 20.3 | 1.3 | 21.6 | ||||||||||||||
| Foreign currency translation | 2.8 | 0.3 | 3.1 | ||||||||||||||
| Balance as of December 31, 2025 | $ | 52.7 | $ | 14.6 | $ | 67.3 | |||||||||||
| Accumulated amortization | |||||||||||||||||
| Balance as of January 1, 2023 | $ | (4.0) | $ | (0.1) | $ | (4.1) | |||||||||||
| Amortization | (2.3) | (0.3) | (2.6) | ||||||||||||||
| Foreign currency translation | (0.1) | — | (0.1) | ||||||||||||||
| Balance as of December 31, 2023 | $ | (6.4) | $ | (0.4) | $ | (6.8) | |||||||||||
| Amortization | (2.5) | (0.2) | (2.7) | ||||||||||||||
| Foreign currency translation | — | — | — | ||||||||||||||
| Balance as of December 31, 2024 | $ | (8.9) | $ | (0.6) | $ | (9.5) | |||||||||||
| Amortization | (5.1) | (0.3) | (5.4) | ||||||||||||||
| Foreign currency translation | (0.4) | — | (0.4) | ||||||||||||||
| Balance as of December 31, 2025 | $ | (14.4) | $ | (0.9) | $ | (15.3) | |||||||||||
| Net carrying amount | |||||||||||||||||
| Balance as of December 31, 2023 | $ | 18.5 | $ | 12.3 | $ | 30.8 | |||||||||||
| Balance as of December 31, 2024 | 20.7 | 12.4 | 33.1 | ||||||||||||||
| Balance as of December 31, 2025 | 38.3 | 13.7 | 52.0 | ||||||||||||||
(1) Refer to Note 17 for additional information pertaining to business combinations and related other intangible assets.
Included in the gross carrying amounts of Licenses and other was $11.0 million of indefinite-lived licenses as of December 31, 2025, 2024 and 2023. We performed a qualitative assessment for impairment and the useful lives of our indefinite and finite lived intangible assets, as applicable, and we determined there were no impairments or need to change the useful lives of the finite lived intangibles assets as of December 31, 2025 and 2024.
Capitalized technology development costs
A roll forward of our capitalized technology development costs, accumulated amortization and their carrying amounts as of and for the years ended December 31, 2025, 2024 and 2023 is as follows:
| (in millions) | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||
| Balance as of January 1, 2023 | $ | 47.1 | $ | (3.6) | $ | 43.5 | |||||||||||
| Additions | 35.9 | — | 35.9 | ||||||||||||||
| Amortization | — | (11.3) | (11.3) | ||||||||||||||
| Foreign currency translation | 1.1 | (0.1) | 1.0 | ||||||||||||||
| Balance as of December 31, 2023 | $ | 84.1 | $ | (15.0) | $ | 69.1 | |||||||||||
| Additions | 38.3 | — | 38.3 | ||||||||||||||
| Impairment and amortization | (4.5) | (18.7) | (23.2) | ||||||||||||||
| Foreign currency translation | (0.8) | 0.2 | (0.6) | ||||||||||||||
| Balance as of December 31, 2024 | $ | 117.1 | $ | (33.5) | $ | 83.6 | |||||||||||
| Additions | 44.0 | — | 44.0 | ||||||||||||||
Impairment and amortization | — | (29.4) | (29.4) | ||||||||||||||
| Foreign currency translation | 3.4 | (1.1) | 2.3 | ||||||||||||||
| Balance as of December 31, 2025 | $ | 164.5 | $ | (64.0) | $ | 100.5 | |||||||||||
There was no change in estimated useful lives of other intangible assets and capitalized technology development costs for the years ended December 31, 2025, 2024 and 2023. The weighted-average remaining useful life is 7.8 years for customer relationships and 3.5 years for capitalized technology development costs. For the years ended December 31, 2025 and 2024, we recorded impairment charges of $1.2 million and $3.5 million, respectively on capitalized technology development costs, which is included in the "Depreciation and amortization" in our consolidated statements of operations. There was no impairment of other intangible assets and capitalized technology development costs for the year ended December 31, 2023. Depreciation and amortization presented in our consolidated statements of operations were $35.2 million, $26.6 million and $14.5 million for the years ended December 31, 2025, 2024 and 2023, respectively, the majority of which represents amortization expenses of other intangible assets and capitalized technology development costs.
As of December 31, 2025, estimated future amortization expenses of other intangible assets (excluding the indefinite-lived licenses) and capitalized technology development costs to be recognized by us are as follows:
| (in millions) | Estimated amortization expenses | ||||
| Years Ended December 31, | |||||
| 2026 | $ | 37.9 | |||
| 2027 | 35.2 | ||||
| 2028 | 27.5 | ||||
| 2029 | 18.8 | ||||
| 2030 | 7.9 | ||||
| Thereafter | 14.2 | ||||
| Total | $ | 141.5 | |||
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.