OCTAVE SPECIALTY GROUP INCOSG
OCTAVE SPECIALTY GROUP INC Segments Disclosure
3. SEGMENT INFORMATION
The Company reports its results of continuing operations in two segments: Specialty Property and Casualty Insurance and ID. These reportable segments offer distinct products and services as further described in Note 1. Background and Business Description. The operating entities within each segment are wholly or majority owned by separate intermediate holding companies: Everspan Holdings, LLC for Specialty Property and Casualty Insurance and Octave Partners LLC for ID. The Company's segments have separate management teams with incentive compensation structures based on segment level performance. Financial reporting for each segment is regularly provided to the Company's Chief Executive Officer, who is the chief operating decision maker ("CODM"), for purposes of monitoring the businesses, assessing performance and allocating resources.
The following tables summarize the components of the Company’s total revenues and expenses and pretax income (loss) by reportable business segment. Information provided below for “Corporate and Other” primarily relates to the operations of OSG, which will include investment income on its investment portfolio and costs to maintain the operations of OSG, including public company reporting, capital management and business development costs for the acquisition and development of new business initiatives. As a result of the Company reporting the results of operations of AAC as discontinued operations, certain corporate costs charged to AAC totaling $6,786, $14,919, and $19,367 for the years ended December 31, 2025, 2024 and 2023, respectively, have been reported in Net income from continuing operations on the Consolidated Statements of Total Comprehensive Income and included in Corporate and Other in the tables below.
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reportable Segments | Reportable Segments | |||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance | Insurance Distribution | Corporate & Other | Total | Specialty Property & Casualty Insurance | Insurance Distribution | Corporate & Other | Total | |||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commissions | $ | 143,381 | 143,381 | $ | 92,023 | $ | 92,023 | |||||||||||||||||||||||||||||||||||||||||||
| Servicing and other fees | 20,419 | 20,419 | 6,353 | 6,353 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net premiums earned | $ | 67,232 | 67,232 | $ | 99,005 | 99,005 | ||||||||||||||||||||||||||||||||||||||||||||
| Program fees | 14,322 | 14,322 | 13,506 | 13,506 | ||||||||||||||||||||||||||||||||||||||||||||||
| Investment income | 6,811 | 1,514 | $ | 2,323 | 10,647 | 6,400 | 787 | $ | 7,261 | 14,448 | ||||||||||||||||||||||||||||||||||||||||
| Other | 38 | (1,588) | (3,230) | (4,780) | 7,409 | 73 | 2,998 | 10,480 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues from Continuing Operations (1) | 88,403 | 163,726 | (907) | 251,222 | 126,320 | 99,236 | 10,259 | 235,815 | ||||||||||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commissions | 37,037 | 37,037 | 40,876 | 40,876 | ||||||||||||||||||||||||||||||||||||||||||||||
| Loss and loss adjustment expenses | 47,193 | 47,193 | 72,626 | 72,626 | ||||||||||||||||||||||||||||||||||||||||||||||
| Policy acquisition costs | 15,790 | 15,790 | 23,666 | 23,666 | ||||||||||||||||||||||||||||||||||||||||||||||
| Intangible amortization and depreciation | 38,734 | 3,218 | 41,952 | 18,083 | 1,864 | 19,947 | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 18,640 | 18,640 | 9,379 | 9,379 | ||||||||||||||||||||||||||||||||||||||||||||||
| Compensation expense | 12,245 | 63,761 | 33,841 | 109,847 | 10,201 | 28,353 | 25,791 | 64,346 | ||||||||||||||||||||||||||||||||||||||||||
| Non Compensation expense | 9,845 | 26,010 | 45,922 | 81,777 | 7,605 | 10,354 | 46,861 | 64,820 | ||||||||||||||||||||||||||||||||||||||||||
| Total expenses from continuing operations | 85,073 | 184,182 | 82,981 | 352,236 | 114,098 | 107,045 | 74,516 | 295,660 | ||||||||||||||||||||||||||||||||||||||||||
| Segment pretax income (loss) | 3,330 | (20,456) | (83,888) | (101,014) | 12,222 | (7,809) | (64,257) | (59,845) | ||||||||||||||||||||||||||||||||||||||||||
| Segment income tax expense (benefit) | 374 | (5,103) | (482) | (5,211) | 1,753 | (928) | (1,748) | (924) | ||||||||||||||||||||||||||||||||||||||||||
| Segment net income (loss) | 2,956 | (15,353) | (83,406) | (95,803) | 10,469 | (6,881) | (62,509) | (58,921) | ||||||||||||||||||||||||||||||||||||||||||
| Segment net (income) loss attributable to NCI | — | (2,601) | (2,601) | 2 | (363) | (361) | ||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to shareholders | $ | 2,956 | $ | (17,954) | $ | (83,406) | $ | (98,404) | $ | 10,471 | (7,244) | (62,509) | $ | (59,282) | ||||||||||||||||||||||||||||||||||||
| Reconciliation to consolidated net income (loss) attributable to shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued operations | (163,288) | (497,167) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to shareholders | $ | (261,692) | $ | (556,449) | ||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of segment assets to consolidated total assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 894,692 | $ | 1,243,979 | $ | 84,646 | $ | 2,223,317 | $ | 751,272 | $ | 900,222 | $ | 139,684 | $ | 1,791,178 | ||||||||||||||||||||||||||||||||||
| Discontinued operations | $ | — | $ | 6,267,200 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total consolidated assets | $ | 2,223,317 | $ | 8,058,378 | ||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA Reconciliation | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment net income (loss) | $ | 2,956 | $ | (15,353) | $ | (83,406) | $ | (95,803) | $ | 10,469 | $ | (6,881) | $ | (62,509) | $ | (58,921) | ||||||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 18,640 | 18,640 | 9,379 | 9,379 | ||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes | 374 | (5,103) | (482) | (5,211) | 1,753 | (928) | (1,748) | (924) | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation | — | 690 | 3,218 | 3,908 | — | 481 | 1,864 | 2,345 | ||||||||||||||||||||||||||||||||||||||||||
| Intangible amortization | 38,044 | 38,044 | 17,602 | 17,602 | ||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | 3,330 | 36,918 | (80,670) | (40,422) | 12,222 | 19,653 | (62,393) | (30,518) | ||||||||||||||||||||||||||||||||||||||||||
| Add: Impact of noncontrolling interests | (14,507) | (14,507) | (6,448) | (6,448) | ||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA attributable to shareholders | $ | 3,330 | $ | 22,411 | $ | (80,670) | $ | (54,929) | $ | 12,222 | $ | 13,205 | $ | (62,393) | $ | (36,966) | ||||||||||||||||||||||||||||||||||
(1)Inter-segment revenues and inter-segment pre-tax income (loss) amounts are insignificant and are not presented separately.
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Reportable Segments | ||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance | Insurance Distribution | Corporate & Other | Total | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Commissions | $ | 51,281 | 51,281 | |||||||||||||||||||||||
| Net premiums earned | $ | 51,911 | $ | 51,911 | ||||||||||||||||||||||
| Program fees | 8,437 | 8,437 | ||||||||||||||||||||||||
| Investment income | 3,795 | 64 | $ | 9,298 | 13,159 | |||||||||||||||||||||
| Other | (42) | 200 | (218) | (60) | ||||||||||||||||||||||
| Total revenues from continuing operations | 64,101 | 51,546 | 9,080 | 124,728 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Loss and loss adjustment expenses | 36,712 | 36,712 | ||||||||||||||||||||||||
| Policy acquisition costs | 10,557 | 10,557 | ||||||||||||||||||||||||
| Commissions | 29,465 | 29,465 | ||||||||||||||||||||||||
| Intangible amortization and depreciation | 4,194 | 1,036 | 5,230 | |||||||||||||||||||||||
| Interest expense | — | — | — | |||||||||||||||||||||||
| Compensation expense | 10,853 | 7,951 | 29,664 | 48,468 | ||||||||||||||||||||||
| Non Compensation expense | 5,596 | 2,647 | 10,274 | 18,517 | ||||||||||||||||||||||
Total expenses from Continuing Operations (1) | 63,718 | 44,257 | 40,974 | 148,949 | ||||||||||||||||||||||
| Segment pretax income (loss) | 383 | 7,289 | (31,894) | (24,221) | ||||||||||||||||||||||
| Segment income tax expense (benefit) | 48 | 156 | (1,193) | (989) | ||||||||||||||||||||||
| Segment net income (loss) | 335 | 7,133 | (30,701) | (23,232) | ||||||||||||||||||||||
| Segment net (income) loss attributable to NCI | (1) | (1,318) | (1,319) | |||||||||||||||||||||||
| Net income (loss) attributable to shareholders | $ | 334 | $ | 5,815 | $ | (30,701) | $ | (24,551) | ||||||||||||||||||
| Reconciliation to consolidated net income (loss) attributable to shareholders | ||||||||||||||||||||||||||
| Discontinued operations | 28,183 | |||||||||||||||||||||||||
| Net income (loss) attributable to shareholders | $ | 3,632 | ||||||||||||||||||||||||
| Reconciliation of segment assets to consolidated total assets | ||||||||||||||||||||||||||
| Total assets | 523,179 | 154,846 | 233,839 | $ | 911,864 | |||||||||||||||||||||
| Discontinued operations | 7,516,456 | |||||||||||||||||||||||||
| Total consolidated assets | $ | 8,428,320 | ||||||||||||||||||||||||
| Segment net income (loss) | $ | 335 | $ | 7,133 | $ | (30,701) | $ | (23,232) | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Interest expense | — | — | — | — | ||||||||||||||||||||||
| Income taxes | 48 | 156 | (1,193) | (989) | ||||||||||||||||||||||
| Depreciation | — | 42 | 1,036 | 1,078 | ||||||||||||||||||||||
| Intangible amortization | — | 4,152 | — | 4,152 | ||||||||||||||||||||||
| EBITDA | 383 | 11,483 | (30,858) | (18,991) | ||||||||||||||||||||||
| Add: Impact of noncontrolling interests | (2,102) | (2,102) | ||||||||||||||||||||||||
| EBITDA attributable to shareholders | $ | 383 | $ | 9,381 | $ | (30,858) | $ | (21,093) | ||||||||||||||||||
(1)Inter-segment revenues and inter-segment pre-tax income (loss) amounts are insignificant and are not presented separately.
Geographic Information
Revenue is primarily recognized based on the country in which the services are performed. The following table shows the geographic breakdown of revenue:
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||||||||||
| United States | $ | 172,321 | $ | 212,605 | $ | 124,728 | ||||||||||||||
| United Kingdom | 78,901 | 23,210 | — | |||||||||||||||||
| Total revenues | $ | 251,222 | $ | 235,815 | $ | 124,728 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
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.