First Quarter 2026 Results
-- Exchange Written Premium of $1.14 billion grew 16% year-over-year
-- Third-Party Direct Written Premium accounted for 41% of Exchange
Written Premium volume
-- Pre-tax income of $2 million, net loss of $4 million, net loss per
diluted share of $0.02
-- Adjusted net income of $38 million increased 118% over the prior year,
and adjusted net income per diluted share was up 113% to $0.17
-- Adjusted EBITDA of $66 million
-- Repurchased 828,333 Class A common shares for $11 million
Second Quarter and Full Year 2026 Outlook
-- Exchange Written Premium expected to be $1.27 billion to $1.32 billion
in the second quarter of 2026 and at least $5.2 billion for the full year
2026
-- Third-Party Direct Written Premium expected to be $580 million to $620
million in the second quarter of 2026 and at least $2.3 billion for the
full year 2026
-- Adjusted EBITDA expected to be $60 million to $66 million in the second
quarter of 2026 and at least $285 million for the full year 2026,
including $276 million of fee-based (non-Underwriting Segment) Adjusted
EBITDA
ATLANTA--(BUSINESS WIRE)--May 13, 2026--
Accelerant Holdings (NYSE: ARX), a data-driven company modernizing the specialty insurance marketplace through the Accelerant Risk Exchange, today announced financial results for the first quarter ended March 31, 2026.
"We had an excellent first quarter. We delivered strong performance against all six of our KPIs, reflecting the ongoing momentum across our business," said Jeff Radke, Chairman and CEO. "We are attracting and growing with the best MGAs, making them even better with our data, analytics and increasingly autonomous underwriting tools. And we are connecting them to diversified, committed and high-quality risk capital partners that are looking to generate attractive, predictable returns. We are well on our way to making Accelerant the rails on which specialty insurance runs."
"Our first quarter financial results are further proof in the underlying growth embedded in our business model," said Linda S. Huber, Accelerant's Chief Financial Officer. "Exchange Written Premium eclipsed $1 billion for the fourth quarter in a row, growing 16% year-over-year. Importantly, our fee-based operating revenue and adjusted EBITDA increased 52% and 112%, respectively, as we focus on growing our capital-light businesses. Looking ahead, we continue to expect a very strong 2026 driven by the high-quality and recurring fee generation of the Accelerant Risk Exchange."
Jeff Radke continued, "I'd like to welcome our two new independent Board members, David Talach and Simon Wainwright, who were elected at our annual general meeting of shareholders earlier this week. Both are highly skilled and talented executives and bring diverse perspectives that will be valuable to the Board and the management team. Accelerant will greatly benefit from their experience, expertise and counsel."
First Quarter 2026 Key Results
--------------------------------------------------------------------------
Three Months Ended March 31,
------------------------------------
(in millions, unless indicated) 2026 2025
----------- ---- ------- ---
Number of members 296 232
Net revenue retention 116% 157%
Exchange written premium $ 1,138.7 $ 985.2
Accelerant direct written premium 59% 81%
Third-party direct written premium 41% 19%
Accelerant-retained exchange premium 10% 8%
Exchange written premium growth rate 16% 69%
Total revenues $ 273.3 $ 178.0
Gross loss ratio 52.1% 53.3%
Income before income taxes $ 2.0 $ 15.5
Net (loss) income $ (4.1) $ 7.8
Non-GAAP financial measures (1)
Operating revenues (1) $ 273.2 $ 174.0
Adjusted EBITDA (1) $ 66.1 $ 38.8
Adjusted EBITDA margin (1) 24% 22%
Adjusted net income (1) $ 37.7 $ 17.3
Adjusted earnings per diluted
share (1) $ 0.17 $ 0.08
(1) Information regarding the non-GAAP financial measures included in this
press release, including definitions of these measures, reconciliations
to the most comparable GAAP measures and limitations related thereto, is
described below under "Use of Non-GAAP Financial Measures" and in the
tables attached to this press release. Beginning with first quarter of
2026, Accelerant updated definitions for these non-GAAP financial
measures to exclude the impact of net realized and unrealized investment
gains or losses. Net realized and unrealized investment gains were $0.1
million and $4.0 million in the first quarter of 2026 and 2025,
respectively. Figures for the first quarter of 2025 in the table above
were recast to reflect the new presentation.
Conference Call Information
Accelerant will host a webcast and conference call to discuss the first quarter financial results on May 14, 2026, at 8:00 a.m. ET. A live webcast of the call can be accessed on Accelerant's Investor Relations website at https://investor.accelerant.ai. To access the call via telephone in North America, please dial 800-715-9871. For callers outside the United States, please dial +1 646-307-1963. Participants should reference the conference call ID code 6232893 after dialing in.
A webcast replay of the call will be available on Accelerant's website at accelerant.ai in its Investors section for a year following the call.
About Accelerant
Accelerant is a data-driven risk exchange connecting underwriters of specialty insurance risk with risk capital providers. Accelerant was founded in 2018 by a group of longtime insurance industry executives and technology experts who shared a vision of rebuilding the way risk is exchanged -- so that it works better, for everyone. The Accelerant Risk Exchange does business across 22 different countries and approximately 700 specialty insurance products.
Accelerant generates revenue by charging fees on the Exchange Written Premium shared with Risk Capital Partners that rely on Accelerant to source, manage, and monitor portfolios of specialty risk. There was $4.34 billion in Exchange Written Premium during the trailing twelve months ended March 31, 2026. Accelerant harnesses advanced data analytics and AI to optimize risk management, align incentives across the insurance value chain, and provide transparent and efficient solutions for MGAs and Risk Capital partners globally.
Forward-Looking Statements
All statements in this release and in the corresponding earnings call that are not historical are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve substantial risks and uncertainties. Accelerant Holdings ("we" or "our") generally identifies forward-looking statements by use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "projection," "seek," "should," "will" or "would, " or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this release and in the corresponding earnings call are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in Accelerant's Annual Report on Form 10-K for the year ended December 31, 2025 under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations, " as may be supplemented in Accelerant's subsequent Quarterly Reports on Form 10-Q and in other periodic and current reports filed by Accelerant with the SEC, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price.
Use of Non-GAAP Financial Measures
In assessing the performance of our business, non-GAAP financial measures are used that are derived from our consolidated financial information but are not presented in our consolidated financial statements prepared in accordance with U.S. GAAP. We consider these non-GAAP financial measures to be useful metrics for management and investors to evaluate our financial performance by excluding certain items that are related to our non-core business operations and therefore are not considered to be directly attributable to our underlying operating performance.
These non-GAAP financial measures, as described below, should not be considered substitutes for the reported results prepared in accordance with U.S. GAAP and should not be considered in isolation or as alternatives to U.S. GAAP net income or net (loss) as indicators of our financial performance. Although we use these non-GAAP financial measures to assess the performance of our business, such use is limited because it does not include certain material costs necessary to operate our business. Our presentation of these non-GAAP financial measures should not be construed as indications that our future results will be unaffected by unusual or non-recurring items. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures reported by other companies.
The following non-GAAP financial measures are used in this document or in other disclosures we make from time to time:
Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Earnings per Diluted Share
We define "Adjusted EBITDA" as U.S. GAAP net income (loss) less the impact of depreciation and amortization, interest expenses, income tax expenses and the following items:
1. Net realized and unrealized gains (losses) on investments: Primarily
represents changes in fair value of investment funds, realized gains and
losses on dispositions of investments, and changes in fair value of
certain other equity security investments accounted for under the
measurement alternative where we adjust fair value based on observable
price movements in such, or similar, investments.
2. Other expenses: Represents costs related to our non-core business
operations, primarily related to our global enterprise resource planning
system and integrated financial reporting systems, and legal and advisory
costs in connection with corporate development activities including
mergers and acquisitions, capital raising activities and entity
formations that support our growing business, and Mission profit sharing
expenses.
3. Non-recurring profits interest distribution expenses resulting from the
IPO: Represents non-cash profits interest distribution expenses related
to the settlement of all outstanding profits interest awards through the
distribution of our 65,270,453 Class A common shares held by Accelerant
Holdings LP to certain of our officers and employees that fully vested
upon the IPO. These expenses were entirely offset by a corresponding
capital contribution for that distribution of shares. These expenses only
occurred at one point in time (July 2025) and will not recur.
4. Share-based compensation expenses included within general and
administrative expenses: Represents non-cash expense related to the fair
value of share-based equity awards granted to employees and directors,
including restricted stock units and stock options and other awards that
can settle in cash, recognized over the requisite service period for the
awards.
5. Net foreign currency exchange gains (losses): Represents non-cash
foreign currency gains or losses related to transactions in currencies
other than an operation's functional currency and are excluded both on
the basis of volatility and that such amounts are largely offset by
corresponding changes in other comprehensive income primarily based on
our intercompany reinsurance.
We define "Adjusted Net Income (Loss)" as U.S. GAAP net income (loss) excluding the impact of the following items:
1. net realized and unrealized gains (losses) on investments;
2. other expenses;
3. non-recurring profits interest distribution expenses resulting from the
IPO;
4. share-based compensation expenses included within general and
administrative expenses;
5. the tax effect of the above adjustments.
We define "Adjusted Earnings per Diluted Share" as adjusted net income for a period divided by the corresponding weighted average diluted shares on a U.S. GAAP basis. (GAAP diluted shares are used for simplicity and that any difference from recalculating such diluted shares using adjusted income is expected to be immaterial.)
Operating Revenues
We define "Operating Revenues" as U.S. GAAP revenues less the impact of net realized and unrealized gains (losses) on investments.
Adjusted EBITDA Margin
We define "Adjusted EBITDA Margin" as Adjusted EBITDA divided by Operating Revenues. Adjusted EBITDA Margin is an internal performance measure used in the management of our operations.
The reconciliation of the above non-GAAP measures to each of their most directly comparable GAAP financial measures is set forth in the reconciliation table accompanying this document.
Accelerant Holdings
Condensed Consolidated Statements of Operations
(in millions, except per share amounts)
(unaudited)
Three Months Ended March 31,
----------------------------------
(expressed in millions of US
dollars, except per share data) 2026 2025
------------ -----------
Revenues
Ceding commission income $ 80.5 $ 70.7
Direct commission income 50.8 28.1
Net earned premiums 129.8 63.0
Net investment income 12.1 12.2
Net realized gains on investments 0.1 2.3
Net unrealized gains on
investments -- 1.7
------------ -----------
Total revenues 273.3 178.0
Expenses
Losses and loss adjustment
expenses 81.8 45.2
Amortization of deferred
acquisition costs 33.6 17.1
General and administrative
expenses 123.8 75.3
Interest expenses 2.5 2.6
Depreciation and amortization 10.0 7.4
Net foreign exchange losses 1.9 3.1
Other expenses 17.7 11.8
------------ -----------
Total expenses 271.3 162.5
------------ -----------
Income before income taxes 2.0 15.5
Income tax expense (6.1) (7.7)
------------ -----------
Net (loss) income (4.1) 7.8
Adjustment for net income
attributable to non-controlling
interests (1.1) (1.3)
------------ -----------
Net (loss) income attributable to
Accelerant common shareholders $ (5.2) $ 6.5
============ ===========
Net (loss) income attributable to
Accelerant per common share:
Basic $ (0.02) $ 0.04
Diluted $ (0.02) $ 0.03
Weighted-average common shares
outstanding:
Basic 221,984,101 166,185,094
Diluted 221,984,101 205,273,147
Accelerant Holdings
Condensed Consolidated Balance Sheets
(in millions, except par value)
(unaudited)
March 31, 2026 December 31, 2025
---------------- ---------------------
(expressed in millions of US
dollars, except share data)
Assets
Investments
Short-term investments
available for sale, at
fair value (amortized cost
2026: $202.8 and 2025:
$41.5) $ 202.8 $ 41.6
Fixed maturity securities
available for sale, at
fair value (amortized cost
2026: $692.3 and 2025:
$665.6) 687.4 670.4
Equity method investments 11.8 10.4
Other investments 84.2 84.0
----------- --------------
Total investments 986.2 806.4
Cash, cash equivalents and
restricted cash 1,536.5 1,799.3
Premiums receivable (net of
allowance 2026: $4.8 and
2025: $4.6) 1,182.7 1,077.9
Ceded unearned premiums 1,848.5 1,812.4
Reinsurance recoverables on
unpaid losses and LAE 1,858.5 1,682.3
Other reinsurance recoverables 676.8 594.2
Deferred acquisition costs 85.0 76.9
Goodwill and other intangible
assets, net 111.9 115.1
Capitalized technology
development costs, net 102.5 100.5
Other assets 215.5 198.1
----------- --------------
Total assets $ 8,604.1 $ 8,263.1
=========== ==============
Liabilities and shareholders'
equity
Unpaid losses and loss
adjustment expenses $ 2,129.2 $ 2,005.4
Unearned premiums 2,207.5 2,163.0
Payables to reinsurers 1,243.4 1,220.6
Deferred ceding commissions 247.8 232.5
Funds held under reinsurance 1,275.6 1,200.3
Debt 120.7 121.3
Accounts payable and other
liabilities 660.0 593.6
----------- --------------
Total liabilities 7,884.2 7,536.7
Commitments and contingencies
Equity
Shareholders' equity
Common shares (par value
$0.000001 per share, issued
and outstanding 2026: Class
A - 115,973,643; Class B -
105,402,146 and 2025: Class
A - 114,580,918; Class B -
107,241,428) -- --
Additional paid-in capital 2,243.5 2,232.4
Accumulated other
comprehensive (loss)
income (8.8) 2.2
Accumulated deficit (1,542.1) (1,536.9)
----------- --------------
Total Accelerant shareholders'
equity 692.6 697.7
----------- --------------
Non-controlling interests 27.3 28.7
----------- --------------
Total equity 719.9 726.4
----------- --------------
Total liabilities and equity $ 8,604.1 $ 8,263.1
=========== ==============
Accelerant Holdings
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended March 31,
--------------------------------------
(expressed in millions of US
dollars) 2026 2025
----------- ----------
Cash flows from operating activities
Net (loss) income $ (4.1) $ 7.8
Adjustments to reconcile net (loss)
income to net cash (used in)
provided by operating activities:
Non-cash revenues, expenses, gains
and losses included in net (loss)
income:
Net realized gains on investments (0.1) (2.3)
Net unrealized gains on
investments -- (1.7)
Earnings from equity method
investments (0.2) (0.5)
Share-based compensation expenses 28.8 2.4
Depreciation and amortization 10.0 7.4
Deferred income tax (benefit)
expense (0.4) 0.3
Net foreign exchange losses 1.9 3.1
Net accretion of discount on
fixed maturity securities and
short-term investments (1.5) (1.8)
Other, net 0.2 0.2
Changes in operating assets and
liabilities:
Premiums receivable (110.0) (55.7)
Ceded unearned premiums (40.9) (138.0)
Reinsurance recoverables on
unpaid losses and loss
adjustment expenses (82.7) (188.7)
Other reinsurance recoverables (86.6) (2.0)
Deferred acquisition costs (7.8) 4.3
Unpaid losses and loss adjustment
expenses 142.2 194.2
Unearned premiums 61.8 155.0
Payables to reinsurers 27.2 66.6
Deferred ceding commissions 10.0 7.5
Funds held under reinsurance (22.7) 108.0
Other assets, accounts payable
and other liabilities 53.5 (74.3)
----------- ----------
Net cash (used in) provided by
operating activities (21.4) 91.8
Cash flows from investing activities
Proceeds from sales of:
Fixed maturity securities 44.3 26.4
Maturities of fixed maturity
securities 14.1 15.8
Payments for purchases of:
Fixed maturity securities (91.0) (126.9)
Equity method investments (1.3) --
Net change in short-term
investments (161.2) 2.5
Purchases of subsidiaries, net of
cash acquired (9.4) --
Capitalized technology
development expenditures (6.7) (6.6)
Other, net (0.4) (0.9)
----------- ----------
Net cash used in investing
activities (211.6) (89.7)
Cash flows from financing activities
Acquisition of common shares (12.2) --
Payment of debt (0.8) --
Acquisition of non-controlling
interests in subsidiaries (4.9) --
Dividends paid to non-controlling
interests (1.3) (2.3)
----------- ----------
Net cash used in financing
activities (19.2) (2.3)
Net decrease in cash, cash
equivalents and restricted cash (252.2) (0.2)
Effect of foreign currency rate
changes on cash, cash equivalents
and restricted cash (10.6) 17.9
Cash, cash equivalents and
restricted cash at beginning of
period 1,799.3 1,273.0
----------- ----------
Cash, cash equivalents and
restricted cash at end of period $ 1,536.5 $ 1,290.7
=========== ==========
Accelerant Holdings
Financial Information by Segment
(in millions)
(unaudited)
Three Months Ended March 31, 2026
----------------------------------------------------------------------------------------------
Consolidation and
Exchange MGA Total Corporate and elimination
(in millions) Services Operations Underwriting Segments Other adjustments Total
--------- ----------- -------------- --------- ------------- ----------------- ---------
Revenues
Ceding
commission
income $ -- $ -- $ 10.0 $ 10.0 $ -- $ 70.5 $ 80.5
Direct
commission
income
Affiliated
entities 72.7 28.8 -- 101.5 -- (101.5) --
Unaffiliated
entities 26.4 24.4 -- 50.8 -- -- 50.8
Net earned
premiums -- -- 129.8 129.8 -- -- 129.8
Net investment
income 0.9 0.9 9.2 11.0 1.1 -- 12.1
-------- ---------- ---------- -------- ----- ------ ----- -----
Operating
revenues 100.0 54.1 149.0 303.1 1.1 (31.0) 273.2
Losses and loss
adjustment
expenses -- -- 81.8 81.8 -- -- 81.8
Amortization of
deferred
acquisition
costs -- -- 49.0 49.0 -- (15.4) 33.6
General and
administrative
expenses 32.7 37.3 11.7 81.7 19.3 (9.3) 91.7
-------- ---------- ---------- -------- ----- ------ ---- -----
Adjusted EBITDA $ 67.3 $ 16.8 $ 6.5 $ 90.6 $ (18.2) $ (6.3) $ 66.1
-------- ---------- ---------- -------- ----- ------ ---- -----
Net realized gains on
investments 0.1
Share-based compensation
expenses (32.1)
Interest expenses (2.5)
Depreciation and
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