Global specialty insurance firm, Octave Specialty Group, formerly known as Ambac Financial Group, announced its financial results for the first quarter of 2026, reporting net income to shareholders of $13 million, and total revenue growth of 92%.
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1 2026 net income to shareholders saw a significant increase from the net loss of $3 million reported for the first quarter 2025.
Total revenue grew to $79 million, which was fuelled by a combination of strategic expansion and internal momentum; while the October 2025 acquisition of ArmadaCare provided a significant boost.
Octave also maintained a robust 42% organic revenue growth rate. The company’s efficiency was equally notable, with adjusted EBITDA to shareholders reaching $25 million, compared to $7 million in Q1 2025.
Pre-tax income and Adjusted EBITDA margin to shareholders reached 16% and 32%, respectively.
Claude LeBlanc, President and Chief Executive Officer of Octave, commented: “I am very pleased with our first quarter results. Our core Insurance Distribution business delivered 92% revenue growth, 42% organic growth, the rest from our recent ArmadaCare acquisition.
“Insurance Distribution Adjusted EBITDA increased to $25 million, nearly four times the same period last year. The diversification of our distribution platform demonstrated the resilience and value of the Octave platform as we delivered our strongest quarter yet, even as we witnessed some headwinds in certain segments of the market.”
Octave also reported that total property and casualty (P&C) premium production increased 66% for the quarter, surging to $531 million.
For the specialty P&C insurance segment, Everspan, Octave reported gross and net premiums written of $104 million and $32 million were up 19% and 80%, respectively.
Net loss in the quarter was $8 million, compared to net income of $1 million in Q1 2025.
According to Octave the net loss in Q1 2026 was driven primarily by losses and LAE from the settlement of a potential litigation matter related to an insurance claim.
Adjusted net income in the quarter was $1.2 million, compared to adjusted net income of $1.5 million a year ago. Adjusted EBITDA to Shareholders of $1.6 million, up 2% compared to Q1 2025.
LeBlanc continued: “Everspan’s turnaround is also gaining momentum. Gross premiums written topped $100 million, up 19%, while net premiums written grew 80%. Regrettably, we experienced some adverse development this quarter from the settlement of a potential litigation matter related to an insurance claim from a program in run-off.
“This loss was primarily attributable to legal expenses incurred in connection with the settlement which had an adverse impact on our reported quarterly underwriting results. Importantly however, our active programs were running at a loss ratio of 57% in the first quarter, right in line with the current accident year performance.”
LeBlanc concluded: “Overall, this quarter’s results reflect solid execution and reinforces our confidence in the strength of our business.”
