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SEC Schedule, Article 12-04, Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract] |
Condensed Financial Information of Parent Company Only Disclosure | OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Condensed Financial Information of Registrant (Parent Company Only) Condensed Balance Sheets
($ in thousands, except share data) December 31, | 2025 |  | 2024
Assets: |  |  |
Fixed maturity securities, at fair value (amortized cost of $151 and $0) | $ | 153 |  |  | $ | — |
Short-term investments, at fair value (amortized cost of $39,344 and $64,439) | 39,344 |  |  | 64,439 |
Other investments | 24,971 |  |  | 28,117 |
Total investments (net of allowance for credit losses of $0 and $0) | 64,468 |  |  | 92,556 |
Cash and cash equivalents | 10,127 |  |  | 9,981 |
Investment in subsidiaries | 645,507 |  |  | 679,150 |
Deferred tax asset | 1,497 |  |  | 1,497 |
Other assets | 8,750 |  |  | 21,476 |
Total assets | $ | 730,349 |  |  | $ | 804,660 |
Liabilities and Stockholders' Equity: |  |  |
Liabilities: |  |  |
Accounts payable and other liabilities | 14,559 |  |  | 6,296 |
Total liabilities | 14,559 |  |  | 6,296 |
Stockholders’ equity: |  |  |
Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none | — |  |  | — |
Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 48,876,882 and 48,875,167 | 489 |  |  | 489 |
Additional paid-in capital | 369,860 |  |  | 331,007 |
Accumulated other comprehensive income (loss) | 8,483 |  |  | (188,436) |
Retained earnings | 370,431 |  |  | 683,643 |
Treasury stock, shares at cost: 3,871,598 and 2,368,194 | (33,473) |  |  | (28,339) |
Total Octave Specialty Group, Inc. stockholders’ equity | 715,790 |  |  | 798,364 |
Total liabilities and stockholders’ equity | $ | 730,349 |  |  | $ | 804,660 |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Condensed Financial Information of Registrant (Parent Company Only) Condensed Statement of Comprehensive Income
($ in thousands) Year Ended December 31, | 2025 |  | 2024 |  | 2023
Revenues: |  |  |  |  |
Investment income | $ | 2,333 |  |  | $ | 7,262 |  |  | $ | 9,298 |
Other income | (142) |  |  | (415) |  |  | 6 |
Net gains on derivative contracts | — |  |  | 3,910 |  |  | (348) |
Net investment gains (losses), including impairments | (3,088) |  |  | (498) |  |  | 55 |
Total revenues | (897) |  |  | 10,259 |  |  | 9,011 |
Expenses: |  |  |  |  |
General and administrative expenses | 82,970 |  |  | 41,519 |  |  | 21,597 |
Total expenses | 82,970 |  |  | 41,519 |  |  | 21,597 |
Income (loss) before income taxes and net income (loss) of subsidiaries | (83,867) |  |  | (31,260) |  |  | (12,586) |
Federal income tax provision (benefit) | (483) |  |  | (1,748) |  |  | (1,193) |
Income (loss) before net income (loss) of subsidiaries | (83,384) |  |  | (29,512) |  |  | (11,393) |
Net income (loss) of subsidiaries | (15,020) |  |  | (29,770) |  |  | (13,158) |
Net income (loss) from continuing operations | (98,404) |  |  | (59,282) |  |  | (24,551) |
Net income (loss) from discontinued operations | (163,288) |  |  | (497,167) |  |  | 28,183 |
Net income (loss) | $ | (261,692) |  |  | $ | (556,449) |  |  | $ | 3,632 |
Other comprehensive income (loss), after tax: |  |  |  |  |
Net income (loss) | $ | (261,692) |  |  | $ | (556,449) |  |  | $ | 3,632 |
Unrealized gains (losses) on securities, net of income tax provision (benefit) of $0, $1,295 and $2,095 | 19,643 |  |  | (939) |  |  | 51,184 |
Gains (losses) on foreign currency translation, net of income tax provision (benefit) of $0, $0 and $0 | 176,167 |  |  | (22,156) |  |  | 40,132 |
Credit risk changes of fair value option liabilities, net of income tax provision (benefit) of $0, $(118) and $177 | 1,108 |  |  | (356) |  |  | (88) |
Changes to postretirement benefit, net of income tax provision (benefit) of $0, $0 and $0 | — |  |  | (4,939) |  |  | 1,569 |
Total other comprehensive income (loss) | 196,918 |  |  | (28,390) |  |  | 92,797 |
Total comprehensive income (loss) attributable to Octave Specialty Group, Inc. | $ | (64,774) |  |  | $ | (584,839) |  |  | $ | 96,429 |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Condensed Financial Information of Registrant (Parent Company Only) Condensed Statement of Stockholders' Equity
($ in thousands) | Total |  | Preferred Stock |  | Common Stock |  | Additional Paid-in Capital |  | Accumulated Other Comprehensive Income (Loss) |  | Retained Earnings |  | Common Stock Held in Treasury, at Cost
Balance at January 1, 2023 | $ | 1,252,331 |  |  | $ | — |  |  | $ | 467 |  |  | $ | 274,486 |  |  | $ | (252,843) |  |  | $ | 1,245,491 |  |  | $ | (15,270) |
Total comprehensive income (loss) | 96,430 |  |  |  |  |  |  |  |  | 92,797 |  |  | 3,633 |  |  |
Stock-based compensation | 17,275 |  |  |  |  |  |  | 17,275 |  |  |  |  |  |  |
Cost of shares (acquired) issued under equity plan | (4,665) |  |  |  |  |  |  |  |  |  |  | (7,872) |  |  | 3,207 |
Cost of shares repurchased | (4,510) |  |  |  |  |  |  |  |  |  |  |  |  | (4,510) |
Changes to NCI | 4,797 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,797 |  |  | — |
Balance at December 31, 2023 | 1,361,658 |  |  | — |  |  | 467 |  |  | 291,761 |  |  | (160,046) |  |  | 1,246,048 |  |  | (16,573) |
Total Comprehensive net income (loss) | (584,839) |  |  |  |  |  |  | — |  |  | (28,390) |  |  | (556,449) |  |  | — |
Stock-based compensation | 8,995 |  |  |  |  |  |  | 8,995 |  |  |  |  |  |  |
Cost of shares (acquired) issued under equity plan | (701) |  |  |  |  |  |  |  |  |  |  | (634) |  |  | (67) |
Cost of shares repurchased | (11,699) |  |  |  |  |  |  |  |  |  |  |  |  | (11,699) |
Changes to NCI | (4,278) |  |  |  |  |  |  | 1,044 |  |  |  |  | (5,322) |  |  |
Issuance of common stock | 29,229 |  |  |  |  | 22 |  |  | 29,207 |  |  |  |  | — |  |  | — |
Balance at December 31, 2024 | 798,364 |  |  | — |  |  | 489 |  |  | 331,007 |  |  | (188,436) |  |  | 683,642 |  |  | (28,339) |
Total comprehensive income (loss) | (64,773) |  |  |  |  |  |  |  |  | 196,919 |  |  | (261,692) |  |  |
Stock-based compensation | 9,707 |  |  |  |  |  |  | 9,707 |  |  |  |  |  |  |
Cost of shares (acquired) issued under equity plan | (8,535) |  |  |  |  |  |  |  |  |  |  | (33,343) |  |  | 24,808 |
Cost of shares repurchased | (29,942) |  |  |  |  |  |  |  |  |  |  |  |  | (29,942) |
Changes to NCI | (6,031) |  |  |  |  |  |  | 12,146 |  |  |  |  | (18,177) |  |  | — |
Issuance of warrants in connection with sale of AAC | 17,000 |  |  | — |  |  | — |  |  | 17,000 |  |  | — |  |  | — |  |  | — |
Balance at December 31, 2025 | $ | 715,790 |  |  | $ | — |  |  | $ | 489 |  |  | $ | 369,860 |  |  | $ | 8,483 |  |  | $ | 370,431 |  |  | $ | (33,473) |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II OCTAVE SPECIALTY GROUP, INC. AND SUBSIDIARIES Condensed Financial Information of Registrant (Parent Company Only) Condensed Statements of Cash Flow
($ in thousands) Year Ended December 31, | 2025 |  | 2024 |  | 2023
Cash flows from operating activities: |  |  |  |  |
Net income (loss) | $ | (261,692) |  |  | $ | (556,449) |  |  | $ | 3,632 |
Loss from discontinued operations | 163,288 |  |  | 497,167 |  |  | — |
Net income (loss) from continuing operations | $ | (98,404) |  |  | $ | (59,282) |  |  | $ | 3,632 |
Adjustments to reconcile net income loss to net cash used in operating activities: |  |  |  |  |
Equity in undistributed net (income) loss of subsidiaries | 15,020 |  |  | 29,770 |  |  | (15,027) |
Increase (decrease) in current income taxes payable | 1,613 |  |  | (1,970) |  |  | (1,674) |
Share-based compensation | 9,707 |  |  | 8,361 |  |  | 9,404 |
(Increase) decrease in other assets and liabilities | 26,256 |  |  | 7,817 |  |  | (4,660) |
Distributions received from majority owned subsidiaries | 15,343 |  |  | 10,739 |  |  | 8,032 |
Other, net | (128) |  |  | 2,312 |  |  | 2,337 |
Net cash provided by (used in) operating activities | (30,593) |  |  | (2,253) |  |  | 2,044 |
Cash flows from investing activities: |  |  |  |  |
Proceeds from sales and matured bonds | 1,305 |  |  | 5,000 |  |  | — |
Purchases of bonds | (1,446) |  |  | — |  |  | (795) |
Change in short-term investments | 25,095 |  |  | 91,249 |  |  | 19,676 |
Change in other investments | 3,146 |  |  | (1,749) |  |  | (2,715) |
Proceeds from sale, net of cash transferred | 407,300 |  |  | — |  |  | — |
Other, net | (7,115) |  |  | — |  |  | — |
Net cash provided by (used in) investing activities | 428,285 |  |  | 94,500 |  |  | 16,166 |
Cash flows from financing activities: |  |  |  |  |
Capital contribution to subsidiaries | (384,604) |  |  | (70,817) |  |  | (16,050) |
Cost of shares acquired | (29,942) |  |  | (11,699) |  |  | (4,510) |
Issuance of warrants | 17,000 |  |  | — |  |  | — |
Net cash (used in) financing activities | (397,546) |  |  | (82,516) |  |  | (20,560) |
Net cash flow | 146 |  |  | 9,731 |  |  | (2,350) |
Cash at beginning of period | 9,981 |  |  | 250 |  |  | 2,600 |
Cash at end of period | $ | 10,127 |  |  | $ | 9,981 |  |  | $ | 250 |
Supplemental disclosure of cash flow information: |  |  |  |  |
Cash paid during the period for: |  |  |  |  |
Income taxes | $ | — |  |  | $ | — |  |  | $ | — |
Non-cash financing activity: |  |  |  |  |
Octave common stock issued as partial consideration to acquire Octave Ventures | $ | — |  |  | $ | 29,229 |  |  | $ | — |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes.

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