Accelerant HoldingsARX
Accelerant Holdings Segments Disclosure
3. Segment information
We have three reportable segments (Exchange Services, MGA Operations, and Underwriting). Each of our reportable segments serves the specific needs of our customers based on the products and services provided and reflects the way our CODM assesses performance of the business and makes decisions on the allocation of resources. Our CODM is our Chief Executive Officer.
Exchange Services
Exchange Services, which is the core of Accelerant, captures the revenue and expenses associated with the Risk Exchange. The Risk Exchange is the platform that houses Accelerant technology, data ingestion, and operations that serve the needs of Members and Risk Capital Partners. Insurance companies that join the Risk Exchange pay Accelerant a fixed-percentage volume-based fee for sourcing, managing, and monitoring the business they write. The Risk Exchange pays fees to Members for the distribution services provided to both consolidated affiliates and third parties. We eliminate net fees and other income earned by the Exchange Services segment in consolidation to the extent such income is received from consolidated insurance companies within the Underwriting segment. Only income earned from third-party companies is not eliminated in consolidation.
MGA Operations
MGA Operations consists of our Mission Underwriters ("Mission") and Owned Members reporting units. Mission is a licensed insurance agency that functions as an MGA incubator in the US, UK and EU and represents the largest component of the segment. Mission was previously a consolidated variable interest entity ("VIE") until we acquired all the outstanding common equity interests in Mission on May 1, 2024, at which point it became a wholly-owned subsidiary (and a voting interest entity, or "VOE"). The Owned Members reporting unit comprises MGAs in which we have made non-controlling or controlling equity investments. Our investments in existing Members typically take the form of an initial minority stake and contractual call option for a majority stake over time. We eliminate commission income earned by MGA Operations in consolidation to the extent it is received from consolidated insurance companies within the Underwriting segment. Only commission income earned from third-party companies is not eliminated in consolidation.
Underwriting
Underwriting contains all revenue and expenses associated with the underwriting of insurance policies and assumption of reinsurance policies issued or accepted by Accelerant’s consolidated insurance and reinsurance companies. Our Underwriting segment is a strategic asset that enables access to Accelerant’s portfolio for current and prospective Risk Capital Partners. The activities of these (re)insurance companies include property and casualty insurance, policy issuance, reinsurance arrangements and the payment of commission and other acquisition costs to the Exchange Services segment.
Premium revenue is earned in exchange for the property and casualty insurance policies issued and reinsurance coverage provided. For segment presentation purposes, the commission expense paid to the wholly-owned agencies is subject to deferral as DAC for the portion of insurance policies not subject to reinsurance. DAC associated with business ceded is offset by ceding commissions received from reinsurers, which is typically more than the DAC. The DAC associated with business retained, as well as the excess ceding commissions from reinsurers, are both amortized over the related policy term. Accelerant Re also cedes premium and losses to, and receives ceding commissions from, several third-party reinsurers, including Flywheel Re. Similar to the Exchange Services and MGA Operations segments, transaction activity with our consolidated affiliates is subject to elimination (and therefore the amount of DAC, deferred ceding commissions, DAC amortization and amortization of ceding commission income in consolidation will differ from that presented within the segment results). Specifically, only commission payments and other acquisition expenses paid to third parties are subject to deferral and amortization in consolidation.
We consider the segment presentations of Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate Accelerant's business and how these business components would be presented if they were stand-alone operations. As we continue to generate increasing third-party insurance premiums through our Risk Exchange, the standalone segment results will more closely align with the consolidated results (as such third party transactions are not be subject to elimination).
The following includes the financial results of our three reportable segments for the years ended December 31, 2025, 2024 and 2023. Corporate functions and certain other businesses and operations are included in Corporate and Other.
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| (in millions) | Exchange Services | MGA Operations | Underwriting | Total Segments | Corporate and Other (1) | Consolidation and elimination adjustments | Total | ||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
Ceding commission income (2) | $ | — | $ | — | $ | 94.9 | $ | 94.9 | $ | — | $ | 261.9 | $ | 356.8 | |||||||||||||||||||||||||||
| Direct commission income | |||||||||||||||||||||||||||||||||||||||||
| Affiliated entities | 251.5 | 128.0 | — | 379.5 | — | (379.5) | — | ||||||||||||||||||||||||||||||||||
| Unaffiliated entities | 79.0 | 83.0 | — | 162.0 | — | — | 162.0 | ||||||||||||||||||||||||||||||||||
| Net earned premiums | — | — | 298.1 | 298.1 | — | — | 298.1 | ||||||||||||||||||||||||||||||||||
| Net investment income | 4.4 | 3.6 | 35.2 | 43.2 | 5.5 | — | 48.7 | ||||||||||||||||||||||||||||||||||
| Net realized gains on investments | — | 5.1 | 2.7 | 7.8 | 0.1 | — | 7.9 | ||||||||||||||||||||||||||||||||||
| Net unrealized gains on investments | — | 29.4 | — | 29.4 | 10.0 | — | 39.4 | ||||||||||||||||||||||||||||||||||
| Segment revenues | 334.9 | 249.1 | 430.9 | 1,014.9 | 15.6 | (117.6) | 912.9 | ||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | — | — | 204.0 | 204.0 | — | — | 204.0 | ||||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | — | — | 113.9 | 113.9 | — | (33.6) | 80.3 | ||||||||||||||||||||||||||||||||||
General and administrative expenses (3) (4) (5) | 110.4 | 136.5 | 55.6 | 302.5 | 80.8 | (36.5) | 346.8 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 224.5 | $ | 112.6 | $ | 57.4 | $ | 394.5 | $ | (65.2) | $ | (47.5) | $ | 281.8 | |||||||||||||||||||||||||||
| Interest expenses | (10.9) | ||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (35.2) | ||||||||||||||||||||||||||||||||||||||||
| Profits interest distribution expenses | (1,379.7) | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses (5) | (53.6) | ||||||||||||||||||||||||||||||||||||||||
| Net foreign exchange losses | (20.2) | ||||||||||||||||||||||||||||||||||||||||
Other expenses (6) | (104.1) | ||||||||||||||||||||||||||||||||||||||||
| Loss before income taxes | $ | (1,321.9) | |||||||||||||||||||||||||||||||||||||||
(1) Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.
(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.
(3) General and administrative expenses are comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:
| (in millions) | Exchange Services | MGA Operations | Underwriting | Total | |||||||||||||||||||
| Employee compensation and benefits | $ | 75.5 | $ | 93.7 | $ | 25.8 | $ | 195.0 | |||||||||||||||
| Consulting and professional fees | 19.6 | 16.2 | 11.8 | 47.6 | |||||||||||||||||||
| Other administrative expenses | 15.3 | 26.6 | 18.0 | 59.9 | |||||||||||||||||||
| Total general and administrative expenses | $ | 110.4 | $ | 136.5 | $ | 55.6 | $ | 302.5 | |||||||||||||||
(4) The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by other consolidation and elimination adjustments.
(5) Share-based compensation expenses are included in "General and administrative expenses" within the consolidated statements of operations (and excluded from the segment presentation above).
(6) Other expenses for the year ended December 31, 2025 consist of a $25.0 million termination fee for our former management services agreement contract with Altamont Capital, $20.0 million of system development non-operating expenses, $27.7 million of professional costs related to corporate development and capital raise activities (including $5.0 million specifically related to our IPO that were not eligible for capitalization as issuance costs), $27.6 million of Mission profits sharing expense (including $15.8 million related to the agreement to settle and terminate a portion of the outstanding profit sharing arrangements) and $3.8 million of individually insignificant costs.
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| (in millions) | Exchange Services | MGA Operations | Underwriting | Total Segments | Corporate and Other (1) | Consolidation and elimination adjustments | Total | ||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
Ceding commission income (2) | $ | — | $ | — | $ | 82.0 | $ | 82.0 | $ | — | $ | 167.5 | $ | 249.5 | |||||||||||||||||||||||||||
| Direct commission income | |||||||||||||||||||||||||||||||||||||||||
| Affiliated entities | 199.7 | 99.4 | — | 299.1 | — | (299.1) | — | ||||||||||||||||||||||||||||||||||
| Unaffiliated entities | 21.9 | 44.8 | — | 66.7 | — | — | 66.7 | ||||||||||||||||||||||||||||||||||
| Net earned premiums | — | — | 226.6 | 226.6 | — | — | 226.6 | ||||||||||||||||||||||||||||||||||
| Net investment income | 1.1 | 4.2 | 32.6 | 37.9 | 1.0 | — | 38.9 | ||||||||||||||||||||||||||||||||||
| Net realized gains on investments | — | 1.3 | 0.6 | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||||||||||||
| Net unrealized (losses) gains on investments | — | — | (0.7) | (0.7) | 19.7 | — | 19.0 | ||||||||||||||||||||||||||||||||||
| Segment revenues | 222.7 | 149.7 | 341.1 | 713.5 | 20.7 | (131.6) | 602.6 | ||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | — | — | 167.3 | 167.3 | — | — | 167.3 | ||||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | — | — | 104.2 | 104.2 | — | (22.8) | 81.4 | ||||||||||||||||||||||||||||||||||
General and administrative expenses (3) (4) (5) | 65.0 | 105.6 | 90.5 | 261.1 | 36.5 | (56.7) | 240.9 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 157.7 | $ | 44.1 | $ | (20.9) | $ | 180.9 | $ | (15.8) | $ | (52.1) | $ | 113.0 | |||||||||||||||||||||||||||
| Interest expenses | (12.1) | ||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (26.6) | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses (5) | (8.4) | ||||||||||||||||||||||||||||||||||||||||
| Net foreign exchange gains | 5.1 | ||||||||||||||||||||||||||||||||||||||||
Other expenses (6) | (39.0) | ||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 32.0 | |||||||||||||||||||||||||||||||||||||||
(1) Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.
(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.
(3) General and administrative expenses are comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:
| (in millions) | Exchange Services | MGA Operations | Underwriting | Total | |||||||||||||||||||
| Employee compensation and benefits | $ | 34.1 | $ | 74.3 | $ | 30.8 | $ | 139.2 | |||||||||||||||
| Consulting and professional fees | 8.6 | 8.8 | 15.0 | 32.4 | |||||||||||||||||||
| Other administrative expenses | 22.3 | 22.5 | 44.7 | 89.5 | |||||||||||||||||||
| Total general and administrative expenses | $ | 65.0 | $ | 105.6 | $ | 90.5 | $ | 261.1 | |||||||||||||||
(4) The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by other consolidation and elimination adjustments.
(5) Share-based compensation expenses are included in "General and administrative expenses" within the consolidated statements of operations (and excluded from the segment presentation above).
(6) Other expenses for the year ended December 31, 2024 consists of $14.7 million of system development non-operating costs, $13.1 million of professional costs related to corporate development and capital raise activities, $7.0 million of Mission profits sharing expense, and $4.2 million of individually insignificant costs.
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| (in millions) | Exchange Services | MGA Operations | Underwriting | Total segments | Corporate and Other (1) | Consolidation and elimination adjustments | Total | ||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
Ceding commission income (2) | $ | — | $ | — | $ | 78.4 | $ | 78.4 | $ | 85.8 | $ | 164.2 | |||||||||||||||||||||||||||||
| Net earned premiums | — | — | 105.1 | 105.1 | — | — | 105.1 | ||||||||||||||||||||||||||||||||||
| Direct commission income | |||||||||||||||||||||||||||||||||||||||||
| Affiliated entities | 107.7 | 76.9 | — | 184.6 | — | (184.6) | — | ||||||||||||||||||||||||||||||||||
| Unaffiliated entities | 14.5 | 23.1 | 37.6 | 37.6 | |||||||||||||||||||||||||||||||||||||
| Net investment income | 1.1 | 2.8 | 12.1 | 16.0 | 3.3 | — | 19.3 | ||||||||||||||||||||||||||||||||||
| Net realized gains on investments | — | — | 0.5 | 0.5 | — | — | 0.5 | ||||||||||||||||||||||||||||||||||
| Net unrealized gains on investments | — | 9.3 | 5.2 | 14.5 | 2.8 | — | 17.3 | ||||||||||||||||||||||||||||||||||
| Segment revenues | 123.3 | 112.1 | 201.3 | 436.7 | 6.1 | (98.8) | 344.0 | ||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | — | — | 80.3 | 80.3 | — | — | 80.3 | ||||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | — | — | 68.4 | 68.4 | — | (18.5) | 49.9 | ||||||||||||||||||||||||||||||||||
General and administrative expenses (3) (4) (5) | 36.2 | 80.6 | 56.0 | 172.8 | 31.7 | (26.8) | 177.7 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 87.1 | $ | 31.5 | $ | (3.4) | $ | 115.2 | $ | (25.6) | $ | (53.5) | $ | 36.1 | |||||||||||||||||||||||||||
| Interest expenses | (10.9) | ||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (14.5) | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses (5) | (4.8) | ||||||||||||||||||||||||||||||||||||||||
| Net foreign exchange losses | (3.5) | ||||||||||||||||||||||||||||||||||||||||
Other expenses (6) | (46.3) | ||||||||||||||||||||||||||||||||||||||||
| Loss before income taxes | $ | (43.9) | |||||||||||||||||||||||||||||||||||||||
(1) Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.
(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 9.
(3) General and administrative expenses are comprised of employee compensation and benefits, consulting and professional fees and all other expenses. The composition of such amounts by each reportable segment was as follows:
| Exchange Services | MGA Operations | Underwriting | Total | ||||||||||||||||||||
| Employee compensation and benefits | $ | 16.7 | $ | 55.8 | $ | 30.8 | $ | 103.3 | |||||||||||||||
| Consulting and professional fees | 3.0 | 5.9 | 11.7 | 20.6 | |||||||||||||||||||
| Other administrative expenses | 16.5 | 18.9 | 13.5 | 48.9 | |||||||||||||||||||
| Total general and administrative expenses | $ | 36.2 | $ | 80.6 | $ | 56.0 | $ | 172.8 | |||||||||||||||
(4) The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by other consolidation and elimination adjustments.
(5) Share-based compensation expenses are included in "General and administrative expenses" within the consolidated statements of operations (and excluded from the segment presentation above).
(6) Other expenses for the year ended December 31, 2023 consists of $22.9 million of system development non-operating costs, $16.2 million of professional costs related to corporate development activities, and $7.2 million of individually insignificant costs.
The following table presents our total assets by reportable segments:
| (in millions) | December 31, 2025 | December 31, 2024 | |||||||||
| Exchange Services | $ | 903.9 | $ | 653.8 | |||||||
| MGA Operations | 479.2 | 303.0 | |||||||||
| Underwriting | 7,307.2 | 5,589.9 | |||||||||
| Corporate and eliminations | (427.2) | (451.8) | |||||||||
| Total | $ | 8,263.1 | $ | 6,094.9 | |||||||
As of December 31, 2025, our equity method investments (as further detailed in Note 4) consisted of $5.4 million held by the MGA Operations segment and $5.0 million within Corporate and Other. As of December 31, 2024, our equity method investments consisted of $14.0 million held by the MGA Operations segment and $4.2 million within Corporate and Other. In addition, expenditures for additions to long-lived assets are not material and are not reported to our CODM.
All our revenues from external customers were attributable to various geographic locations outside of the Cayman Islands, based on where the insurance policies or services were sold. There were no reportable major customers that accounted for 10% or more of our consolidated revenue for the years ended December 31, 2025, 2024 and 2023.
The following table presents our revenues by geography:
| Year Ended December 31, 2025 | |||||||||||||||||
| (in millions) | North America | UK and EU | Total | ||||||||||||||
Ceding commission income (1) | $ | 260.4 | $ | 96.4 | $ | 356.8 | |||||||||||
| Direct commission income | 95.5 | 66.5 | 162.0 | ||||||||||||||
| Net earned premiums | 78.8 | 219.3 | 298.1 | ||||||||||||||
| Net investment income | 31.6 | 17.1 | 48.7 | ||||||||||||||
| Net realized gains on investments | 4.7 | 3.2 | 7.9 | ||||||||||||||
| Net unrealized gains on investments | 39.4 | — | 39.4 | ||||||||||||||
| Total revenues | $ | 510.4 | $ | 402.5 | $ | 912.9 | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| (in millions) | North America | UK and EU | Total | ||||||||||||||
Ceding commission income (1) | $ | 151.2 | $ | 98.3 | $ | 249.5 | |||||||||||
| Direct commission income | 41.9 | 24.8 | 66.7 | ||||||||||||||
| Net earned premiums | 165.3 | 61.3 | 226.6 | ||||||||||||||
| Net investment income | 21.0 | 17.9 | 38.9 | ||||||||||||||
| Net realized gains on investments | — | 1.9 | 1.9 | ||||||||||||||
| Net unrealized gains (losses) on investments | 19.8 | (0.8) | 19.0 | ||||||||||||||
| Total revenues | $ | 399.2 | $ | 203.4 | $ | 602.6 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| (in millions) | North America | UK and EU | Total | ||||||||||||||
Ceding commission income (1) | $ | 81.5 | $ | 82.7 | $ | 164.2 | |||||||||||
| Direct commission income | 18.6 | 19.0 | 37.6 | ||||||||||||||
| Net earned premiums | 77.9 | 27.2 | 105.1 | ||||||||||||||
| Net investment income | 11.6 | 7.7 | 19.3 | ||||||||||||||
| Net realized gains on investments | 0.2 | 0.3 | 0.5 | ||||||||||||||
| Net unrealized gains on investments | 12.1 | 5.2 | 17.3 | ||||||||||||||
| Total revenues | $ | 201.9 | $ | 142.1 | $ | 344.0 | |||||||||||
(1) Refer to Note 9 for additional information on the impacts of sliding scale commission adjustments on our ceding commission income for the years ended December 31, 2025, 2024 and 2023 resulting from the loss experience of covered insurance contracts.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.