XML 32 R13.htm IDEA: XBRL DOCUMENT v3.25.4
Investments
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments
6.    INVESTMENTS
Octave’s invested assets are primarily comprised of (i) fixed maturity securities classified as either available-for-sale, (ii) investment in limited partnership which is reported within Other investments on the Consolidated Balance Sheets and (iii) preferred equity investments which are reported within Other investments on the Consolidated Balance Sheets. Interests in pooled investment funds are limited partner interests and are reported using the equity method.
Fixed Maturity Securities
The amortized cost and estimated fair value of available-for-sale investments, at December 31, 2025 and 2024 were as follows:
December 31, 2025December 31, 2024
Amortized
Cost		Allowance for Credit LossesGross UnrealizedEstimated
Fair Value		Amortized
Cost		Allowance for Credit LossesGross UnrealizedEstimated
Fair Value
GainsLossesGainsLosses
Fixed maturity securities:
Municipal obligations$11,697 $— $121 $228 $11,590 $14,646 — 7 570 14,083 
Corporate obligations
67,881 — 634 1,942 66,573 92,990 — 107 3,905 89,192 
U.S. government obligations35,190 — 365 131 35,424 41,706 — 98 809 40,995 
Residential mortgage-backed securities1,604 — — 7 1,597 2,475 — — 29 2,446 
Commercial mortgage-backed securities3,307 — 42 8 3,341 2,127 — 8 34 2,101 
Collateralized debt obligations1,963 — 12 — 1,975 3,131 — 13 2 3,142 
Other asset-backed securities1,772 — 23 — 1,795 5,049 — 14 2 5,061 
123,414 — 1,197 2,316 122,295 162,124 — 247 5,351 157,020 
Short-term146,434 — 8 — 146,442 127,588 — 13 — 127,601 
Total available-for-sale investments$269,848 $— $1,205 $2,316 $268,737 $289,712 $— $260 $5,351 $284,621 
The amortized cost and estimated fair value of available-for-sale investments, at December 31, 2025, by contractual maturity, were as follows:
Amortized
Cost		Estimated
Fair Value
Due in one year or less$180,013 $179,824 
Due after one year through five years32,409 31,588 
Due after five years through ten years47,801 47,619 
Due after ten years979 998 
261,202 260,029 
Residential mortgage-backed securities1,604 1,597 
Commercial mortgage-backed securities3,307 3,341 
Collateralized debt obligations1,963 1,975 
Other asset-backed securities1,772 1,795 
Total$269,848 $268,737 
Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties.
Unrealized Losses on Fixed Maturity Securities
The following table shows gross unrealized losses and fair values of Octave’s available-for-sale investments, which at December 31, 2025, did not have an allowance for credit losses under the CECL standard. This information is aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Less Than 12 Months12 Months or MoreTotalLess Than 12 Months12 Months or MoreTotal
Fair
Value		Gross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss		Fair
Value		Gross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss
Fixed maturity securities:
Municipal obligations$535 $16 $5,820 $212 $6,355 $228 6,042 112 6,582 458 $12,624 $570 
Corporate obligations1,807 10 30,751 1,932 32,558 1,942 23,784 269 46,612 3,636 70,396 3,905 
U.S. government obligations2,206 14 9,491 117 11,697 131 15,919 344 14,818 465 30,737 809 
Residential mortgage-backed securities— — 1,596 7 1,596 7 2,446 29 — — 2,446 29 
Commercial mortgage-backed securities763 8 — — 763 8 738 34 — — 738 34 
Collateralized debt obligations— — — — — — 655 2 — — 655 2 
Other asset-backed securities— — — — — — 1,428 2 — — 1,428 2 
Total temporarily impaired securities5,311 48 47,658 2,268 52,969 2,316 $51,012 $792 $68,012 $4,559 $119,024 $5,351 

Management has determined that the securities in the above table do not have credit impairment as of December 31, 2025 and 2024 based upon (i) no actual or expected principal and interest payment defaults on these securities and (ii) analysis of the creditworthiness of the issuer.
Octave’s assessment about whether a security is credit impaired reflects management’s current judgment regarding facts and circumstances specific to the security and other factors. If that judgment changes, Octave may record a charge for credit impairment in future periods.
The declines in fair value and resultant unrealized losses across asset classes as of December 31, 2025 included in the above table resulted primarily from the impact of increasing interest rates since the securities were purchased. Management has determined that the securities with unrealized losses are not credit impaired. Further discussion of management's assessment with respect to security categories with larger unrealized loss balances is below.
Corporate obligations
The gross unrealized losses on corporate obligations as of December 31, 2025, resulted primarily from an increase in interest rates since the securities were purchased. Management believes that the full and timely receipt of all principal and interest payment on corporate obligations with unrealized losses as of December 31, 2025, is probable.
Investment Income (Loss)
Net investment income (loss) was comprised of the following for the affected periods:
Year Ended December 31,202520242023
Fixed maturity securities$5,175 $4,895 $3,696 
Short-term investments6,014 10,033 9,287 
Investment expense(273)(365)(296)
Securities available-for-sale and short-term10,916 14,563 12,687 
Other investments(269)(115)472 
Total net investment income (loss)$10,647 $14,448 $13,159 
Net investment income (loss) from Other investments primarily represents changes in fair value on equity securities including
income from investment limited partnership and other equity interests accounted for under the equity method.
Net Investments Gains (Losses), including Impairments
The following table details amounts included in net investment gains (losses) and impairments included in earnings for the affected periods and are included in Revenues, other on the Statements of Total Comprehensive Income (Loss):
Year Ended December 31,202520242023
Gross realized gains on securities$526 $6,068 $57 
Gross realized losses on securities(3)(47)(38)
Credit impairments(3,100)(6,517)— 
Net investment gains (losses), including impairments$(2,577)$(496)$19 
Octave had an allowance for credit losses $0 and $0 at December 31, 2025 and 2024, respectively.
Octave did not purchase any financial assets with credit deterioration for the years ended December 31, 2025 and 2024.
Deposits with Regulators and Other Restrictions
Securities carried at $34,016 and $22,861 at December 31, 2025 and 2024, respectively, were deposited by Octave's insurance subsidiaries with governmental authorities or designated custodian banks as required by laws affecting insurance companies. Investments in fixed maturity securities of OSG carried at $153 as of December 31, 2025, were deposited as security in connection with a letter of credit issued for a corporate office lease. Fiduciary funds held by Octave's insurance distribution subsidiaries, carried at $2,656 and $2,845 at December 31, 2025 and 2024, respectively, are included in invested assets.
Other Investments
Octave's investment portfolio includes a limited partnership interest in a private equity fund which seeks to generate long-term capital appreciation through investments in private equity, equity-related and other instruments. The fair value of Octave's investment in the fund was $7,454 and $7,499 as of December 31, 2025 and 2024, determined using net asset value ("NAV") as a practical expedient. Redemptions may be made quarterly with 90 days notice subject to withdrawal limitations
and/or redemption fees which vary with the timing and notification of withdrawal provided by the investor. Octave's unfunded commitments total $1,501 on this private equity fund at December 31, 2025.
Other investments also include preferred equity investments with a carrying value of $17,517 and $20,618 as of
December 31, 2025 and 2024, respectively, that do not have readily determinable fair values and are carried at cost, less any impairments as permitted under the Investments — Equity Securities Topic of the ASC. There were $(3,100), $(6,517), and $0 impairments recorded on these investments in the years ended December 31, 2025, 2024 and 2023, respectively.
Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities