$OSG

OCTAVE SPECIALTY GROUP INC

CIK:0000874501|SEC Filings

Consolidated Statements of Total Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Insurance Commissions and Fees	$ 49,728	$ 30,322	$ 117,906	$ 67,093
Net Investment Income [Abstract]
Net Investment Income	1,877	2,609	4,232	5,424
Realized Investment Gains (Losses)	63	2	66	(1)
Credit Risk Derivatives, at Fair Value, Net [Abstract]
Other Operating Income (Expense), Net	435	(2,146)	1,065	(3,270)
Total revenues	82,995	54,957	187,165	117,713
Policyholder Benefits and Claims Incurred, Net	13,346	10,978	33,025	21,474
Expenses:
Intangible amortization	11,609	9,301	23,256	18,064
General and Administrative Expense	51,415	40,540	104,570	79,071
Interest	2,774	5,570	4,864	11,024
Total expenses	94,666	77,931	202,180	155,794
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(11,671)	(22,974)	(15,015)	(38,081)
Provision (benefit) for income taxes from continuing operations	485	(2,172)	4	(2,789)
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest	(2,273)	254	(6,261)	(1,400)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest			(15,019)	(35,292)
Net income (loss) attributable to shareholders	(12,156)	(72,953)	(15,019)	(117,690)
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest			(15,019)	(35,292)
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax	(502)	(4,647)	(1,541)	13,959
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	3,222	88,984	(9,368)	133,704
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax	0	144	0	586
Total other comprehensive income (loss), net of income tax	2,720	84,481	(10,909)	148,249
Total comprehensive income (loss), net of income tax	(9,436)	11,528	(25,928)	30,559
Total comprehensive income (loss) attributable to shareholders	(12,361)	(9,301)	(26,471)	(2,285)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest	$ (2,273)	$ 254	$ (6,261)	$ (1,400)
Earnings Per Share, Basic	$ (0.33)	$ (1.51)	$ (0.47)	$ (2.72)
Earnings Per Share, Diluted	$ (0.33)	$ (1.51)	$ (0.47)	$ (2.72)
Weighted Average Number of Shares Outstanding, Basic	45,390,612	48,116,503	45,347,014	47,738,050
Weighted Average Number of Shares Outstanding, Diluted	45,390,612	48,116,503	45,347,014	47,738,050
Premiums Earned, Net	$ 21,749	$ 16,203	$ 41,750	$ 31,881
Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset	3,293	3,497	6,937	7,149
Deferred Policy Acquisition Costs, Amortization Expense	6,359	3,699	12,730	7,540
General and Administrative Expense	51,415	40,540	104,570	79,071
Insurance Commissions	8,508	7,403	22,513	17,768
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest	652	(21,083)	(5,718)	(31,444)
Depreciation	655	440	1,222	853
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	(52,151)	0	(82,398)
Net income attributable to common shareholders	(12,156)	(72,953)	(15,019)	(117,690)
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic	(14,429)	(20,548)	(21,280)	(36,692)
Net Income (Loss) from Discontinued Operations Available to Common Shareholders, Basic	$ 0	$ (52,151)	$ 0	$ (82,398)
Income (Loss) from Continuing Operations, Per Basic Share	$ (0.33)	$ (0.42)	$ (0.47)	$ (0.99)
Income (Loss) from Continuing Operations, Per Diluted Share	(0.33)	(0.42)	(0.47)	(0.99)
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share	0	(1.08)	0	(1.73)
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	$ 0	$ (1.08)	$ 0	$ (1.73)
Net Income (Loss) Available to Common Stockholders, Basic	$ (14,429)	$ (72,699)	$ (21,280)	$ (119,090)
Fee Income	5,913	4,472	15,275	9,436
Premiums Earned, Net	21,749	16,203	41,750	31,881
Depreciation, Depletion and Amortization	12,264	9,741	24,478	18,917
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest			(15,019)	(35,292)
Net Income (Loss) Attributable to Noncontrolling Interest	(12,156)	(72,953)	(15,019)	(117,690)
Unrealized (loss) gain on securities, taxes	0	503	0	1,148
Gain (loss) on foreign currency translation, taxes	0	0	0	0
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	(12,156)	(20,802)	(15,019)	(35,292)
General and Administrative Expense	51,415	40,540	104,570	79,071
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Reclassification Adjustment, Tax	$ 0	48	$ 0	195
Discontinued Operations, Held-for-Sale or Disposed of by Sale \| Ambac Assurance Corporation [Member]
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent		(52,151)		(82,398)
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax		$ (52,960)		$ (67,456)

Consolidated Statements of Cash Flows $ in Thousands	3 Months Ended	6 Months Ended
Consolidated Statements of Cash Flows $ in Thousands	Jun. 30, 2025 USD ($)	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)
Cash flows from operating activities:
Net income attributable to common shareholders	$ (72,953)	$ (15,019)	$ (117,690)
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest	254	(6,261)	(1,400)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		(15,019)	(35,292)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Share-based compensation		8,875	16,932
Unearned premiums, net		13,841	1,332
Reinsurance recoverable and loss and loss adjustment expense, net		(20,508)	(35,349)
Ceded premiums payable		12,785	37,555
Premium and commissions receivables		(33,962)	(32,231)
Intangible Asset, Finite-Lived, Amortization Expense	9,301	23,256	18,064
Other, net		(3,431)	101
Cash Provided by (Used in) Investing Activity, Including Discontinued Operation [Abstract]
Proceeds from matured bonds		25,214	21,816
Purchases of bonds		(38,567)	(22,747)
Purchases of other investments		(147)	(66)
Proceeds from short-term investments, net		63,928	24,966
Other, net		(2,453)	(5,939)
Net cash provided by (used in) investing activities from continuing operations		48,015	18,030
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation [Abstract]
Tax payments related to shares withheld for share-based compensation plans		(583)	(1,516)
Net cash provided by (used in) financing activities from continuing operations		(16,396)	(9,747)
Effect of foreign exchange on cash and cash equivalents - discontinued operations		(653)	1,288
Payment for Debt Extinguishment or Debt Prepayment Cost		(1,500)
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation		(16,396)	(9,747)
Cash Provided by (Used in) Investing Activity, Including Discontinued Operation		48,015	18,030
Proceeds from Issuance of Long-Term Debt		39,089
Corporate costs reallocated to continuing operations	2,502	0	5,265
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Period Increase (Decrease), Including Exchange Rate Effect, Discontinued Operation			(1,861)
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Discontinued Operation	64,216	0	64,216
Cash Provided by (Used in) Continuing Operation		10,656	(892)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	46,383	79,096	46,383
Cash Provided by (Used in) Operating Activity, Discontinued Operation		0	34,851
Cash Provided by (Used in) Investing Activity, Discontinued Operation		0	57,667
Cash Provided by (Used in) Financing Activity, Discontinued Operation		0	(94,854)
Cash Provided by (Used in) Discontinued Operation		0
Effect of Exchange Rate on Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Discontinued Operation		0	475
Effect of foreign exchange on cash and cash equivalents - discontinued operations		(653)	1,288
Depreciation, Depletion and Amortization	9,741	24,478	18,917
Net income attributable to common shareholders	(72,953)	(15,019)	(117,690)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	(52,151)	0	(82,398)
Net Income (Loss) Attributable to Noncontrolling Interest	(72,953)	(15,019)	(117,690)
Income Tax Paid, before Refund Received		3,713	2,689
Cash Provided by (Used in) Operating Activity, Continuing Operation		(20,310)	(10,463)
Proceeds from Sale of Debt Securities, Available-for-Sale		40	0
Accrued Liabilities for Commissions, Expense and Taxes		13,057	25,444
Contract assets and contract liabilities, net		(15,398)	(7,572)
Payments for Repurchase of Warrants		(4,855)
Payments of Distributions to Affiliates		(4,520)	(894)
Payments to Noncontrolling Interests		(44,027)	(4,036)
Deferred Income Tax Expense (Benefit)	(3,794)	(5,028)	(5,565)
Payments for Repurchase of Common Stock		0	$ (3,301)
Long-term Debt [Member]
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	$ 12,361	$ 5,868

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets:
Debt Securities, Available-for-Sale	$ 216,654	$ 268,737
Total investments (net of allowance for credit losses of $0 and $0)	241,669	293,708
Restricted Cash	52,308	40,754
Premiums Receivable, Net	94,635	75,085
Premium Receivable, Allowance for Credit Loss	500	500
Reinsurance Recoverables, Including Reinsurance Premium Paid	495,653	436,092
Deferred ceded premium	148,236	146,365
Intangible assets, less accumulated amortization	447,448	474,998
Goodwill	534,304	540,345
Other Assets	122,856	92,003
Total assets	2,280,857	2,223,317
Liabilities:
Unearned premiums	202,890	187,178
Liability for Claims and Claims Adjustment Expense	499,043	459,990
Ceded premiums payable	93,346	80,561
Long-term debt	155,459	117,558
Accrued interest payable	27	1,343
Derivative Liability	0	8
Other liabilities	120,643	102,771
Total liabilities	1,265,483	1,137,151
Redeemable Noncontrolling Interest, Equity, Carrying Amount	197,529	252,981
Liabilities	1,265,483	1,137,151
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 20,000,000 shares authorized; issued and outstanding shares—none	0	0
Common Stock, Value, Issued	489	489
Additional paid-in capital	379,561	369,860
Accumulated other comprehensive income	3,292	8,483
Retained earnings	348,474	370,431
Treasury stock, shares at cost: 0 and 8,202	(33,063)	(33,473)
Total Ambac Financial Group, Inc. stockholders’ equity	698,753	715,790
Noncontrolling interest	119,092	117,395
Total stockholders’ equity	817,845	833,185
Total liabilities and stockholders’ equity	2,280,857	2,223,317
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale, Amortized Cost	219,306	269,848
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	79,096	68,440
Deferred Policy Acquisition Cost	16,423	9,732
Capitalized Contract Cost, Net	6,989	6,978
Deferred Income Tax Liabilities, Net	$ 58,855	$ 65,217
Treasury Stock, Common, Shares	3,859,121	3,871,598
Debt Securities, Available-for-Sale, Amortized Cost, Excluding Accrued Interest, before Allowance for Credit Loss	$ 136,793	$ 123,414
Short-term Investments	$ 82,513	$ 146,442
Preferred Stock, Shares Issued	0	0
Receivables, Net, Current	$ 100,537	$ 86,549
Reinsurance Recoverable, Allowance for Credit Loss	100	100
Accrued Liabilities for Commissions, Expense and Taxes	128,231	115,555
Allowance for Credit Loss, Receivable, Other, Current	350	350
Short-term Investments [Member]
Assets:
Debt Securities, Available-for-Sale	82,513	146,442
Stockholders’ equity:
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale, Amortized Cost	82,513	146,434
Fixed Income Securities [Member]
Assets:
Debt Securities, Available-for-Sale	134,141	122,295
Stockholders’ equity:
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale, Amortized Cost	136,793	123,414
Other Security Investments
Stockholders’ equity:
Other Investment Not Readily Marketable, Fair Value	25,015	24,971
Available-for-Sale Securities
Stockholders’ equity:
Debt Securities, Available-for-Sale, Excluding Accrued Interest	$ 134,141	$ 122,295