Overseas Shipholding Group, Inc.

Ladies and gentlemen, good morning and welcome to the Octave Specialty Group fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Karen Beyer, Head of Investor Relations. Please go ahead.

Thank you. Good morning and welcome to Octave Specialty Group's fourth quarter 2025 call to discuss financial results. Speaking today will be Claude LeBlanc, President and CEO, and David Trick, Chief Financial Officer. They will discuss the financial results of our business and the current market environment. After prepared remarks, we will take your questions. For those of you following along on the webcast, during the prepared remarks, we will be highlighting some slides from the investor presentation, which can be located on our website. On our call today includes forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed were implied in the forward-looking statements due to a variety of factors. These factors are described under forward-looking statements in our earnings press release and in our most recent 10-K filed with the SEC. We do not undertake any obligation to update forward-looking statements. Also in our prepared remarks and responses to questions, we may mention some non-GAAP financial measures. Reconciliation to those non-GAAP measures are included in our recent earnings press release, operating supplement, and other materials available in the investor section on our website, octavegroup.com. Now I'd like to turn the call over to Mr. Claude LeBlanc.

Thank you, Karen, and good morning, everyone. As we close out 2025, the fourth quarter marks the first full period in which Octave Specialty Group operated as a standalone specialty insurance platform, a milestone that reflects the culmination of a multi-year strategic transformation. Our insurance distribution platform, inclusive of Octave Partners and Octave Ventures, is well-established and uniquely positioned in the specialty program sector with aligned underwriting capacity, a scalable data and technology infrastructure, and a clear path for sustained organic growth and meaningful margin expansion. Our model has allowed us to attract and partner with top underwriting talent, distribution partners, and leading capital and capacity providers. The culture we have built is one of entrepreneurship, collaboration, specialization, and partnership, supported by a centralized and scalable operating model. As we move forward in 2026 and beyond, we are starting from a position of strength. Despite an increasingly challenging market in 2025, Octave was able to grow its insurance distribution business revenue by 65% over 2024, fueled by 14% organic growth. This number excludes eight months of OctaVentures, formerly known as BEAT, and does not include our recent acquisition, ArmadaCare. David will walk through the detailed financial results for the fourth quarter shortly. As we look ahead, our well-diversified, high-growth, and rapidly scaling platform is supported by strong tailwinds, including the following. One, embedded growth. Nine of our total 22 MGAs were launched in 2024 and 2025. With over 40% of our total MGA portfolio in early growth stages and some already delivering strong top-line and early bottom-line growth, we believe this stable of MGAs will represent a significant portion of our future organic growth in earnings as they continue to scale over the next two to four years. Looking at Okta Ventures on a standalone basis, we saw organic revenue growth of approximately 18% in 2024, increasing to approximately 47% in 2025. The Ventures incubator platform has a strong pipeline of future MG opportunities it's evaluating, with particular focus on the US ENS and SME segments. Two, geographic and product diversification. Our MGAs are geographically spread with nine of our total MGAs based in London and Bermuda, with the remaining 13 in the United States. This provides us with a competitive advantage, supporting growth and managing through market cycles. Our Lloyd's Market MGAs tend to move to profitability faster than US MGAs and also move faster through pricing cycles. which creates more frequent opportunities to deploy capital opportunistically. Our U.S. market MGAs, by contrast, offer greater rate stability and more predictable underwriting conditions, which supports consistent margin management. Our MGA portfolio is also diversified by line of business, with approximately 28% in specialty A&H and the remaining 72% in several specialty P&C lines. split 30% casualty and 42% non-CAT-exposed property. Outside of A&H, we cover approximately nine segments of the P&C market. We believe the diversity of our platform is one of our core strengths and differentiators. Three, aligned and curated third-party capacity. In 2025, we continue to expand our aligned capacity through our Lloyd Syndicates, as well as our rapidly broadening curated capital and capacity partners, which together with Everspan stands at over $2 billion entering 2026. And lastly, our minority interest buy-in. For certain MGAs, Octave has the ability to acquire material portions of minority interests over a predetermined schedule, which allows us to systematically expand earnings attributable to our shareholders aligned with the ongoing performance of the MGAs. This also represents a built-in source of earnings growth, which when combined with other growth drivers, will enable us to rapidly scale both top and bottom line growth in the near to medium term. In total, when considering Okta's embedded growth, diversified product and geographic mix, access to aligned capacity, and contractual rights to buy-in minority interests, We believe we are well positioned for strong growth for years to come. I will now turn to our ArmadaCare acquisition. The acquisition of ArmadaCare in the fourth quarter fits our goal of increasing shareholder value and marked a defining step in our transformation. ArmadaCare enhances our product diversification, deepens our position in the specialty A&H market, adds meaningful scale, and generates recurring revenue streams with attractive EBITDA margins of over 40% that are less correlated to the general P&C commercial cycle. It is precisely the kind of complementary durable business we want in our portfolio as we enter a softening P&C market cycle. While our fourth quarter results reflect only a two-month contribution, the integration of RamadaCare has progressed ahead of schedule, and the platform's early performance is exceeding our expectations. With the addition of RamonaCare, we are actively progressing revenue synergies across broader accident and health MGAs. We expect A&H to account for roughly a quarter of our distribution business in 2026 across three platforms and seven lines of business. I'm also pleased with the fourth quarter launch of 1889 specialty, a management liability and professional lines MGA focused on the SME financial institutions market, led by Blair Bartlett and backed by A-plus rated capacity. This launch reflects our continued ability to identify top talent within the specialty market who have track records of delivering strong underwriting results and Octave Ventures' ability to stand up businesses quickly. Over the past several years, we have purposely constructed a specialty platform designed to deliver innovative, differentiated solutions to brokers, agents, and carriers across multiple specialty verticals. As our platform has grown, so has our operational sophistication. We are executing a focused initiative to unify our operating infrastructure onto a single integrated data and technology architecture, one that will further enhance scalability improve data analytics and risk selection, and accelerate our operational velocity, driving scale and revenue growth. Central to this effort is the integration of AI-driven tools across our MGA platform. These tools are designed to improve risk selection, elevate pricing sophistication, and drive meaningful operational efficiency gains, ultimately translating into expanded margins. This is not future state thinking. It is already underway, and I will discuss one specific example in a moment. Turning to Everspan, we were happy with the steps we took to reposition the book in 2024, and after some reserve strengthening in the first nine months of the year, we produced a loss ratio including the impact of sliding scale up 62.9% in the fourth quarter 2025. We now believe Everspan is positioned for reasonable and controlled growth in 2026. Everspan's focus remains on the casualty markets, where we are continuing to see more pricing discipline than in the property markets. As for our 2026 outlook, we expect our EBITDA profile to follow a natural maturation curve. As our MGA scale and season, we expect contribution margins to improve and operating leverage to emerge with increasing clarity beginning in 2026 and accelerated beyond. We are already seeing signs of this in the first quarter. And while not yet complete, early Q1 results across most of our businesses are very encouraging and supportive of our guidance, which I will cover shortly. One notable example is our exchange platform, which is on track for record results in our ESL business following a couple years of challenging results. One catalyst for this performance is the official launch of Hammurabi, our proprietary AI platform built specifically around the medical stop-loss business. Hammurabi replaces traditional labor-intensive processes with near instant risk prediction and pricing accuracy, enabling our underwriters to move faster, price more precisely, and scale more efficiently than ever before. We believe Hammurabi is a genuine competitive differentiator that has the potential to expand to other business lines over time, and we're just beginning to unlock this potential. We are also actively utilizing and developing data and AI tools across our platform, which we believe will help us to rapidly scale and differentiate our business model into the future. I will now turn the call over to David to review our fourth quarter results. David.