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Fair Value Measurements (Tables) | 3 Months Ended
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Mar. 31, 2026
Fair Value Disclosures [Abstract] |
Summary of Carrying Amount and Fair Value of Ambac's Financial Assets and Liabilities | The following table sets forth the carrying amount and fair value of Octave's financial assets and liabilities as of March 31, 2026 and December 31, 2025, including the level within the fair value hierarchy at which fair value measurements are categorized. As required by the Fair Value Measurement Topic of the ASC, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
|  | March 31, 2026 |  | December 31, 2025
|  | Carrying Amount |  | Total Fair Value |  | Fair Value Measurements Categorized as: |  | Carrying Amount |  | Total Fair Value |  | Fair Value Measurements Categorized as:
|  | Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal obligations |  | $ | 10,476 |  |  | $ | 10,476 |  |  | $ | — |  |  | $ | 10,476 |  |  | $ | — |  |  | $ | 11,590 |  |  | $ | 11,590 |  |  | $ | — |  |  | $ | 11,590 |  |  | $ | — |
Corporate obligations |  | 76,940 |  |  | 76,940 |  |  | — |  |  | 76,940 |  |  | — |  |  | 66,573 |  |  | 66,573 |  |  | — |  |  | 66,573 |  |  | — |
U.S. government obligations |  | 39,042 |  |  | 39,042 |  |  | 39,042 |  |  | — |  |  | — |  |  | 35,424 |  |  | 35,424 |  |  | 35,424 |  |  | — |  |  | — |
Residential mortgage-backed securities |  | 2,627 |  |  | 2,627 |  |  | — |  |  | 2,627 |  |  | — |  |  | 1,597 |  |  | 1,597 |  |  | — |  |  | 1,597 |  |  | — |
Commercial mortgage-backed securities |  | 4,985 |  |  | 4,985 |  |  | — |  |  | 4,985 |  |  | — |  |  | 3,341 |  |  | 3,341 |  |  | — |  |  | 3,341 |  |  | — |
Collateralized debt obligations |  | 1,630 |  |  | 1,630 |  |  | — |  |  | 1,630 |  |  | — |  |  | 1,975 |  |  | 1,975 |  |  | — |  |  | 1,975 |  |  | — |
Other asset-backed securities |  | 1,392 |  |  | 1,392 |  |  | — |  |  | 1,392 |  |  | — |  |  | 1,795 |  |  | 1,795 |  |  | — |  |  | 1,795 |  |  | — |
Short term investments |  | 92,295 |  |  | 92,295 |  |  | 92,295 |  |  | — |  |  | — |  |  | 146,442 |  |  | 146,442 |  |  | 146,442 |  |  | — |  |  | — |
Other investments (1) |  | 24,971 |  |  | 7,454 |  |  | — |  |  | — |  |  | — |  |  | 24,971 |  |  | 7,454 |  |  | — |  |  | — |  |  | — |
Cash, cash equivalents and restricted cash |  | 93,537 |  |  | 93,537 |  |  | 93,537 |  |  | — |  |  | — |  |  | 68,440 |  |  | 68,440 |  |  | 68,440 |  |  | — |  |  | — |
Other assets-loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Derivative assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FX forward contracts |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total financial assets |  | $ | 347,895 |  |  | $ | 330,378 |  |  | $ | 224,874 |  |  | $ | 98,050 |  |  | $ | — |  |  | $ | 362,148 |  |  | $ | 344,631 |  |  | $ | 250,306 |  |  | $ | 86,871 |  |  | $ | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term debt, including accrued interest |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Long term debt, including accrued interest |  | 118,367 |  |  | 118,367 |  |  | — |  |  | — |  |  | 118,367 |  |  | 118,901 |  |  | 121,343 |  |  | — |  |  | — |  |  | 121,343 |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FX forward contracts |  | 426 |  |  | 426 |  |  | — |  |  | 426 |  |  | — |  |  | 8 |  |  | 8 |  |  | — |  |  | 8 |  |  | — |
Total financial liabilities |  | $ | 118,793 |  |  | $ | 118,793 |  |  | $ | — |  |  | $ | 426 |  |  | $ | 118,367 |  |  | $ | 118,909 |  |  | $ | 121,351 |  |  | $ | — |  |  | $ | 8 |  |  | $ | 121,343 |
(1)Excluded from the fair value measurement categories in the table above are investment funds of $7,454 and $7,454 as of March 31, 2026 and December 31, 2025, respectively, which are measured using NAV as a practical expedient. Also excluded from the fair value amounts in the table above are equity securities with a carrying value of $17,517 and $17,517 as of March 31, 2026 and December 31, 2025, respectively, that do not have readily determinable fair values and have carrying amounts determined using the measurement alternative.
Summary of Changes in Level 3 Fair Value Category | The following tables present the changes in the Level 3 fair value category for the periods presented in 2026 and 2025. Octave classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Thus, the gains and losses presented below include changes in the fair value related to both observable and unobservable inputs.
Level 3 - Financial Assets and Liabilities Accounted for at Fair Value
|  | Investments |  | Derivatives |  | Total
Three Months Ended March 31, 2026: |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | — |  |  | $ | — |
Total gains/(losses) realized and unrealized: |  |  |  |  |  |
Included in earnings |  | — |  |  | — |  |  | — |
Included in other comprehensive income |  | — |  |  | — |  |  | — |
Purchases |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |
Three Months Ended March 31, 2025: |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | — |  |  | $ | — |
Total gains/(losses) realized and unrealized: |  |  |  |  |  |
Included in earnings |  | — |  |  | — |  |  | — |
Included in other comprehensive income |  | — |  |  | — |  |  | — |
Purchases |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  | $ | — |  | $ | —
Level 3 - Financial Assets and Liabilities Accounted for at Fair Value |
|  | Investments |  | Derivatives |  | Total
Three Months Ended March 31, 2026: |  |  |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | — |  |  | $ | — |
Total gains/(losses) realized and unrealized: |  |  |  |  |  |
Included in earnings |  | — |  |  | — |  |  | — |
Included in other comprehensive income |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |
Three Months Ended March 31, 2025: |  |  |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | — |  |  | $ | — |
Total gains/(losses) realized and unrealized: |  |  |  |  |  |
Included in earnings |  | — |  |  | — |  |  | — |
Included in other comprehensive income |  | — |  |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |
Summary of Gains and Losses (Realized and Unrealized) Relating to Level 3 Assets and Liabilities Included in Earnings | Gains and losses (realized and unrealized) relating to Level 3 assets and liabilities included in earnings for the three months ended March 31, 2026 and 2025 are reported as follows:
|  | Three Months Ended March 31, 2026 |  | Three Months Ended March 31, 2025
|  | Net Investment Income |  | Net Gains (Losses) on Derivative Contracts |  | Other Income or (Expense) |  | Net Investment Income |  | Net Gains (Losses) on Derivative Contracts |  | Other Income or (Expense)
Total gains (losses) included in earnings for the period |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | —
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date |  | — |  | — |  | — |  | — |  | — |  | —

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