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SEC Schedule, Article 12-04, Condensed Financial Information of Registrant
 12 Months Ended
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 31,20252024
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 investments24,971 28,117 
Total investments (net of allowance for credit losses of $0 and $0)
64,468 92,556 
Cash and cash equivalents10,127 9,981 
Investment in subsidiaries645,507 679,150 
Deferred tax asset1,497 1,497 
Other assets8,750 21,476 
Total assets$730,349 $804,660 
Liabilities and Stockholders' Equity:
Liabilities:
Accounts payable and other liabilities
14,559 6,296 
Total liabilities14,559 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 capital369,860 331,007 
Accumulated other comprehensive income (loss)8,483 (188,436)
Retained earnings370,431 683,643 
Treasury stock, shares at cost: 3,871,598 and 2,368,194
(33,473)(28,339)
Total Octave Specialty Group, Inc. stockholders’ equity715,790 798,364 
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 31,202520242023
Revenues:
Investment income$2,333 $7,262 $9,298 
Other income(142)(415)6 
Net gains on derivative contracts— 3,910 (348)
Net investment gains (losses), including impairments(3,088)(498)55 
Total revenues(897)10,259 9,011 
Expenses:
General and administrative expenses82,970 41,519 21,597 
Total expenses82,970 41,519 21,597 
Income (loss) before income taxes and net income (loss) of subsidiaries(83,867)(31,260)(12,586)
Federal income tax provision (benefit)(483)(1,748)(1,193)
Income (loss) before net income (loss) of subsidiaries(83,384)(29,512)(11,393)
Net income (loss) of subsidiaries(15,020)(29,770)(13,158)
Net income (loss) from continuing operations
(98,404)(59,282)(24,551)
Net income (loss) from discontinued operations(163,288)(497,167)28,183 
Net income (loss)$(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 compensation17,275 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 NCI4,797 — — — — 4,797 — 
Balance at December 31, 20231,361,658 — 467 291,761 (160,046)1,246,048 (16,573)
Total Comprehensive net income (loss) (584,839)— (28,390)(556,449)— 
Stock-based compensation8,995 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 stock29,229 22 29,207 — — 
Balance at December 31, 2024798,364 — 489 331,007 (188,436)683,642 (28,339)
Total comprehensive income (loss)(64,773)196,919 (261,692)
Stock-based compensation9,707 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 AAC17,000 — — 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 31,202520242023
Cash flows from operating activities:
Net income (loss)$(261,692)$(556,449)$3,632 
Loss from discontinued operations163,288 497,167 — 
Net income (loss) from continuing operations$(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 subsidiaries15,020 29,770 (15,027)
Increase (decrease) in current income taxes payable1,613 (1,970)(1,674)
Share-based compensation9,707 8,361 9,404 
(Increase) decrease in other assets and liabilities26,256 7,817 (4,660)
Distributions received from majority owned subsidiaries15,343 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 bonds1,305 5,000 — 
Purchases of bonds(1,446)— (795)
Change in short-term investments25,095 91,249 19,676 
Change in other investments3,146 (1,749)(2,715)
Proceeds from sale, net of cash transferred407,300 — — 
Other, net(7,115)— — 
Net cash provided by (used in) investing activities428,285 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 warrants17,000 — — 
Net cash (used in) financing activities(397,546)(82,516)(20,560)
Net cash flow146 9,731 (2,350)
Cash at beginning of period9,981 250 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.