Q1 2026 Accelerant Holdings Earnings Call

May 14, 2026

Speaker #1: Thank you for standing by. My name is Jale, and I will be a conference operator today. At this time, I would like to welcome everyone to the Accelerant first quarter 2026 earnings call.

Operator: Thank you for standing by. My name is Jalen, I will be your conference operator today. At this time, I would like to welcome everyone to the Accelerant Q1 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. I would now like to turn the conference over to Ray Iardella, Head of Investor Relations. You may begin.

Operator: Thank you for standing by. My name is Jalen and I will be your conference operator today. At this time, I would like to welcome everyone to the Accelerant Q1 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Ray Iardella, Head of Investor Relations. You may begin.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad.

Speaker #1: If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Ray Iardella, head of investor relations.

Speaker #1: You may begin.

Speaker #2: Thank you, operator, and welcome everyone to Accelerant's first quarter 2026 earnings conference call. Joining me on today's call are Jeff Radke, Accelerant's chairman and CEO; Linda Huber, CFO; and Ryan Schiller, head of strategy.

Ray Iardella: Thank you, operator, and welcome everyone to Accelerant's Q1 2026 earnings conference call. Joining me on today's call are Jeff Radke, Accelerant's Chairman and CEO, Linda Huber, CFO, and Ryan Schiller, Head of Strategy. The remarks will be followed by a Q&A session. Yesterday, we issued a press release related to our Q1 2026 financial results, filed our Form 10-Q, and have also posted our updated investor presentation. All of these can be found on our IR website at www.investor.accelerant.ai. Before we get started, I'd like to remind you that our remarks today will include forward-looking statements, including those regarding our future plans, objectives, expected performance, and in particular, guidance for Q2 and full year 2026. Actual results may vary materially from today's statements.

Ray Iardella: Thank you, operator, and welcome everyone to Accelerant's Q1 2026 Earnings Conference Call. Joining me on today's call are Jeff Radke, Accelerant's Chairman and CEO, Linda Huber, CFO, and Ryan Schiller, Head of Strategy. The remarks will be followed by a Q&A session. Yesterday, we issued a press release related to our Q1 2026 financial results, filed our Form 10-Q, and have also posted our updated investor presentation. All of these can be found on our IR website at www.investor.accelerant.ai.

Speaker #2: The remarks will be followed by a Q&A session. Yesterday, we issued a press release related to our first quarter 2026 financial results, filed our Form 10-Q, and have also posted our updated investor presentation.

Speaker #2: All of these can be found on our IR website at www.investor.accelerant.ai. Before we get started, I'd like to remind you that our remarks today will include forward-looking statements, including those regarding our future plans, objectives, expected performance, and, in particular, guidance for the second quarter and full year 2026.

Ray Iardella: Before we get started, I'd like to remind you that our remarks today will include forward-looking statements, including those regarding our future plans, objectives, expected performance, and in particular, guidance for Q2 and full year 2026. Actual results may vary materially from today's statements. Information concerning risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings, including those stated in the Risk Factors section of our filings with the SEC.

Speaker #2: Actual results may vary materially from today's statements. Information concerning risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings, including those stated in the risk factors section of our filings with the SEC.

Ray Iardella: Information concerning risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings, including those stated in the Risk Factors section of our filings with the SEC. These forward-looking statements represent our outlook only as of the date of this call. We undertake no obligation to revise or update any forward-looking statements. Additionally, today's discussion will include both GAAP and non-GAAP financial measures related to both our consolidated results as well as our operating segments. Reconciliation of any non-GAAP financial measures to the most directly comparable GAAP measures is set forth in our earnings release. Non-GAAP financial measures should be considered in addition to, not as a substitute for GAAP measures. Finally, today's conference call is being webcast and recorded. Now I'll turn the call over to Jeff.

Speaker #2: These forward-looking statements represent our outlook only as of the date of this call. We undertake no obligation to revise or update any forward-looking statements.

Ray Iardella: These forward-looking statements represent our outlook only as of the date of this call. We undertake no obligation to revise or update any forward-looking statements. Additionally, today's discussion will include both GAAP and non-GAAP financial measures related to both our consolidated results as well as our operating segments. Reconciliation of any non-GAAP financial measures to the most directly comparable GAAP measures is set forth in our earnings release. Non-GAAP financial measures should be considered in addition to, not as a substitute for GAAP measures.

Speaker #2: Additionally, today's discussion will include both gap and non-gap financial measures related to both our consolidated results as well as our operating segments. Reconciliation of any non-gap financial measures to the most directly comparable gap measures is set forth in our earnings release.

Speaker #2: Non-gap financial measures should be considered in addition to, not as a substitute for gap measures. Finally, today's conference call is being webcast and recorded.

Ray Iardella: Finally, today's conference call is being webcast and recorded. Now I'll turn the call over to Jeff.

Speaker #2: Now I will turn the call over to Jeff.

Speaker #3: Thanks, Ray. And good morning, everyone. Before we dive into our discussion, I'd like to welcome Linda Huber, our new CFO, to her first earnings call at Accelerant.

Jeff Radke: Thanks, Ray, and good morning, everyone. Before we dive into our discussion, I'd like to welcome Linda Huber, our new CFO, to her first earnings call at Accelerant. Linda joined us about 2 months ago, and her impact across the finance organization can already be felt. Welcome to the call, Linda. Moving to my comments about the business. We had a fantastic Q1, reflecting strong momentum across our platform. Once again, we exceeded the midpoint of our quarterly guidance across Exchange Written Premium, Third-Party Premium, and adjusted EBITDA. We also continued to compound and deepen our data moat during the quarter, adding an additional 22 million rows and 4,000 incremental risk attributes. Our mantra from the very beginning of Accelerant has been no data left behind.

Speaker #3: Linda joined us about two months ago and her impact across the finance organization can already be felt. Welcome to the call, Linda. Moving to my comments about the business.

Speaker #3: We had a fantastic first quarter. Reflecting strong momentum across our platform. Once again, we exceeded the midpoint of our quarterly guidance across exchange-written premium, third-party premium, and adjusted EBITDA.

Speaker #3: We also continued to compound and deepen our data moat during the quarter. Adding an additional 22 million rows and 4,000 incremental risk attributes. Our mantra from the very beginning of Accelerant has been no data left behind.

Jeff Radke: We also continued to compound and deepen our data moat during the quarter, adding an additional 22 million rows and 4,000 incremental risk attributes. Our mantra from the very beginning of Accelerant has been no data left behind. We capture and ingest exposure characteristics, price per exposure, policy provisions, geospatial information, public sentiment vectors, and environmental features, just to name a few.

Speaker #3: We capture and ingest exposure characteristics, price per exposure, policy provisions, geospatial information, public sentiment factors, and environmental features, just to name a few. Today, we have 156 million rows of information across more than 62,000 unique risk attributes.

Jeff Radke: We capture and ingest exposure characteristics, price per exposure, policy provisions, geospatial information, public sentiment vectors, and environmental features, just to name a few. Today, we have 156 million rows of information across more than 62,000 unique risk attributes, further widening our position as having the largest usable decision-ready specialty insurance data set. You might be asking, so what? I think that's a fair question. The so what for Accelerant is higher growth with better loss ratios and minimal churn from members or risk capital partners. How's that? We leverage this proprietary data through a closed-loop AI native system to enhance underwriting decisions. The Accelerant Risk Exchange's position in the insurance value chain allows us to quickly link underwriting submission and exposure data with claims outcomes. Thus, our underwriting models are updated in very short cycles, nearly continuously.

Jeff Radke: Today, we have 156 million rows of information across more than 62,000 unique risk attributes, further widening our position as having the largest usable decision-ready specialty insurance data set. You might be asking, so what? I think that's a fair question. The so what for Accelerant is higher growth with better loss ratios and minimal churn from members or risk capital partners. How's that? We leverage this proprietary data through a closed-loop AI native system to enhance underwriting decisions.

Speaker #3: Further widening our position as having the largest usable decision-ready specialty insurance data set. You might be asking, so what? And I think that's a fair question.

Speaker #3: The so what for Accelerant is higher growth with better loss ratios and minimal churn from members or risk capital partners. How's that? We leverage this proprietary data through a closed-loop, AI-native system to enhance underwriting decisions.

Speaker #3: The Accelerant risk exchange's position in the insurance value chain allows us to quickly link underwriting submission and exposure data with claims outcomes. Thus, our underwriting models are updated in very short cycles.

Jeff Radke: The Accelerant Risk Exchange's position in the insurance value chain allows us to quickly link underwriting submission and exposure data with claims outcomes. Thus, our underwriting models are updated in very short cycles, nearly continuously. That feedback loop today influences tomorrow's underwriting decisions. When members can out-select risk versus the market, it clearly drives profitability. What's less obvious and more impactful is that better risk selection also drives growth in premium volume across the Accelerant Risk Exchange.

Speaker #3: Nearly continuously. That feedback loop today influences tomorrow's underwriting decision. When members can outselect risk versus the market, it clearly drives profitability. But what's less obvious and more impactful is that better risk selection also drives growth in premium volume across the Accelerant risk exchange.

Jeff Radke: That feedback loop today influences tomorrow's underwriting decisions. When members can out-select risk versus the market, it clearly drives profitability. What's less obvious and more impactful is that better risk selection also drives growth in premium volume across the Accelerant Risk Exchange. Growing profitable and predictable specialty insurance risk is exactly what our risk capital partners are looking for. We discussed with you last quarter how artificial intelligence is the architecture of our business and how its use benefits members and risk capital partners alike. Another important benefit of artificial intelligence is the productivity gains Accelerant is generating internally. We are using the latest AI capabilities to augment cumbersome workflows and are already developing beta version solutions that we believe may reduce our reliance or even replace expensive third-party software systems. Additionally, we've seen significant improvements from AI within our product and technology team of engineers.

Speaker #3: And growing profitable and predictable specialty insurance risk is exactly what our risk capital partners are looking for. We discussed with you last quarter how artificial intelligence is the architecture of our business.

Jeff Radke: Growing profitable and predictable specialty insurance risk is exactly what our risk capital partners are looking for. We discussed with you last quarter how artificial intelligence is the architecture of our business and how its use benefits members and risk capital partners alike. Another important benefit of artificial intelligence is the productivity gains Accelerant is generating internally.

Speaker #3: And how it's used to benefit members and risk capital partners alike. Another important benefit of artificial intelligence is the productivity gains Accelerant is generating internally.

Speaker #3: We are using the latest AI capabilities to augment cumbersome workflows and are already developing beta versions. These are solutions that we believe may reduce our reliance on, or even replace, expensive third-party software systems.

Jeff Radke: We are using the latest AI capabilities to augment cumbersome workflows and are already developing beta version solutions that we believe may reduce our reliance or even replace expensive third-party software systems. Additionally, we've seen significant improvements from AI within our product and technology team of engineers. They're focused on the core operations of the Accelerant Risk Exchange. AI has become a meaningful execution enabler for us.

Speaker #3: Additionally, we've seen significant improvements from AI within our product and technology team of engineers. Their focus on the core operations of the Accelerant Risk Exchange and AI has become a meaningful execution enabler for us.

Jeff Radke: They're focused on the core operations of the Accelerant Risk Exchange. AI has become a meaningful execution enabler for us. This has led to higher output per engineer and a productivity lift of more than 24%. We think that being able to do more with less is gonna become table stakes in tomorrow's world. The ultimate winners will grow their technical workforce and deploy AI-augmented teams to solve the most complex problems. Thus, our higher output allows us to move faster and faster, fund new areas of investment, and deliver on our strategic priorities. In 2026, we plan to invest productivity gains into AI-enabled teams across priority areas. For example, we endeavor to cut the member onboarding cycle from 3 months, which we believe is already 3 to 4 times faster than the industry, to a matter of days.

Speaker #3: This has led to higher output per engineer and a productivity lift of more than 24%. We think that being able to do more with less is going to become table stakes in tomorrow's world.

Jeff Radke: This has led to higher output per engineer and a productivity lift of more than 24%. We think that being able to do more with less is gonna become table stakes in tomorrow's world. The ultimate winners will grow their technical workforce and deploy AI-augmented teams to solve the most complex problems. Thus, our higher output allows us to move faster and faster, fund new areas of investment, and deliver on our strategic priorities. In 2026, we plan to invest productivity gains into AI-enabled teams across priority areas.

Speaker #3: The ultimate winners will grow their technical workforce and deploy AI-augmented teams to solve the most complex problems. Thus, our higher output allows us to move faster and faster: fund new areas of investment, and deliver on our strategic priorities.

Speaker #3: In 2026, we plan to invest productivity gains into AI-enabled teams across priority areas. For example, we endeavor to cut the member onboarding cycle from three months which we believe is already three to four times faster than the industry to a matter of days.

Jeff Radke: For example, we endeavor to cut the member onboarding cycle from 3 months, which we believe is already 3 to 4 times faster than the industry, to a matter of days. We will be building 24/7 AI-enabled claims monitoring, agent-driven actuarial support, and early profit signals directly into our members' underwriting workflow. We are excited about our AI-driven productivity, but as we scale, greater efficiency will lead to more investment and better outcomes as we continue our journey to transform the specialty insurance marketplace.

Speaker #3: Additionally, we will be building 24/7 AI-enabled claims monitoring agent-driven actuarial support and early profit signals directly into our members' underwriting workflow. We are excited about our AI-driven productivity, but as we scale, greater efficiency will lead to more investment and better outcomes as we continue our journey to transform the specialty insurance marketplace.

Jeff Radke: We will be building 24/7 AI-enabled claims monitoring, agent-driven actuarial support, and early profit signals directly into our members' underwriting workflow. We are excited about our AI-driven productivity, but as we scale, greater efficiency will lead to more investment and better outcomes as we continue our journey to transform the specialty insurance marketplace. Let me move to the 6 KPIs that track the health of our business. These metrics balance both sides of the Accelerant Risk Exchange, including 3 on the supply side and 3 on the demand side. All 6 of these metrics were in line with or better than we expected for our Q1. Exchange Written Premium was $1.14 billion in Q1, above the high end of our expectations. This translates to headline year-over-year growth of 16%.

Speaker #3: Next, let me move to the six KPIs that track the health of our business. These metrics balance both sides of the Accelerant risk exchange, including three on the supply side, and three on the demand side.

Jeff Radke: Let me move to the 6 KPIs that track the health of our business. These metrics balance both sides of the Accelerant Risk Exchange, including 3 on the supply side and 3 on the demand side. All 6 of these metrics were in line with or better than we expected for our Q1. Exchange Written Premium was $1.14 billion in Q1, above the high end of our expectations. This translates to headline year-over-year growth of 16%. Importantly, that growth would have been 22%, excluding the large premium, low-margin member that we terminated at the end of Q2 last year.

Speaker #3: All six of these metrics were in line with or better than we expected for our first quarter. Beginning with the supply side, exchange-written premium was $1.14 billion in the first quarter, above the high end of our expectations.

Speaker #3: This translates to headline year-over-year growth of 16%. Now, importantly, that growth would have been 22% excluding the large premium low-margin member that we terminated at the end of Q2 last year.

Jeff Radke: Importantly, that growth would have been 22%, excluding the large premium, low-margin member that we terminated at the end of Q2 last year. Our second KPI is our member count. We added 16 new MGAs during Q1, similar to our average over the past four quarters of 2,025. That brings the total to 296 member MGAs. These new members were added across numerous geographies, including the US, Canada, UK, and EU, and offer specialty insurance coverages that run the gamut from management liability to captives. The third and final supply side KPI is Net Revenue Retention. We define Net Revenue Retention as the trailing-twelve-month Exchange Written Premium growth of our preexisting members year over year. That includes terminated members. Q1 Net Revenue Retention was 116%.

Speaker #3: Our second KPI is our member count. We added 16 new MGAs during the first quarter similar to our average over the past four quarters of 2025.

Jeff Radke: Our second KPI is our member count. We added 16 new MGAs during Q1, similar to our average over the past four quarters of 2,025. That brings the total to 296 member MGAs. These new members were added across numerous geographies, including the US, Canada, UK, and EU, and offer specialty insurance coverages that run the gamut from management liability to captives. The third and final supply side KPI is Net Revenue Retention.

Speaker #3: That brings the total to 296 member MGAs. These new members were added across numerous geographies including the US, Canada, UK, and EU, and offer specialty insurance coverages that run the gamut from management liability to captives.

Speaker #3: The third and final supply-side KPI is net revenue retention. We define net revenue retention as the trailing 12-month exchange-written premium growth of our pre-existing members year over year.

Jeff Radke: We define Net Revenue Retention as the trailing-twelve-month Exchange Written Premium growth of our preexisting members year-over-year. That includes terminated members. Q1 Net Revenue Retention was 116%. That continues to demonstrate the edge that our proprietary data, tools, and platform provide our members. Again, it's worth noting that the Net Revenue Retention would have been 122% if we excluded the one-off terminated member. Moving to the other side of the platform, the first of our 3 demand-side KPIs is gross loss ratio.

Speaker #3: That includes terminated members. First quarter net revenue retention was 116%. That continues to demonstrate the edge that our proprietary data tools and platform provide our members.

Jeff Radke: That continues to demonstrate the edge that our proprietary data, tools, and platform provide our members. Again, it's worth noting that the Net Revenue Retention would have been 122% if we excluded the one-off terminated member. Moving to the other side of the platform, the first of our 3 demand-side KPIs is gross loss ratio. The gross loss ratio is a key profitability measure of the business produced for our risk capital partners. For the Q1 of 2026, the gross loss ratio remained very attractive at 52.1%. That increase of 80 basis points over the full year 2025 figure is primarily due to seasonal differences in business mix. The second demand-side KPI is Third-Party Direct Written Premium. This metric measures our ability to attract non-Accelerant insurers to participate on the Risk Exchange.

Speaker #3: Again, it's worth noting that the net revenue retention would have been 122% if we excluded the one-off terminated member. Moving to the other side of the platform, the first of our three demand-side KPIs is gross loss ratio.

Speaker #3: The gross loss ratio is a key profitability measure of the business-produced for our risk capital partners. And for the first quarter of 2026, the gross loss ratio remained very attractive at 52.1%.

Jeff Radke: The gross loss ratio is a key profitability measure of the business produced for our risk capital partners. For the Q1 of 2026, the gross loss ratio remained very attractive at 52.1%. That increase of 80 basis points over the full year 2025 figure is primarily due to seasonal differences in business mix. The second demand-side KPI is Third-Party Direct Written Premium. This metric measures our ability to attract non-Accelerant insurers to participate on the Risk Exchange. We continued to make progress during Q1 with 41% of Exchange Written Premium going to third-party insurers.

Speaker #3: That increase of 80 basis points over the full year 2025 figure is primarily due to seasonal differences in business mix. The second demand-side KPI is third-party direct-written premium.

Speaker #3: This metric measures our ability to attract non-Accelerant insurers to participate on the risk exchange. We continued to make progress during the first quarter, with 41% of exchange-written premium going to third-party insurers.

Jeff Radke: We continued to make progress during Q1 with 41% of Exchange Written Premium going to third-party insurers. That's up from 19% in last year's Q1 and up from 30% for the full year of 2025. Over the medium term, our goal is for third-party insurers to represent two-thirds of the total Exchange Written Premium. Additionally, we continued to mix away from Hadron during the quarter. Ryan will comment further on this in his remarks. The third and final KPI on the demand side is our net retention. That's defined as the trailing-12-month ratio of premiums we retain in relation to total Exchange Written Premium. This ratio was 10% for the trailing 12 months, which is in line with our expectations and where we expect to be for the full year of 2026.

Speaker #3: That's up from 19% in last year's first quarter and up from 30% for the full year of 2025. Over the medium term, our goal is for third-party insurers to represent two-thirds of the total exchange-written premium.

Jeff Radke: That's up from 19% in last year's Q1 and up from 30% for the full year of 2025. Over the medium term, our goal is for third-party insurers to represent two-thirds of the total Exchange Written Premium. Additionally, we continued to mix away from Hadron during the quarter. Ryan will comment further on this in his remarks. The third and final KPI on the demand side is our net retention. That's defined as the trailing-12-month ratio of premiums we retain in relation to total Exchange Written Premium.

Speaker #3: Additionally, we continue to mix away from hadron during the quarter, Ryan will comment further on this in his remarks. The third and final KPI on the demand side is our net retention.

Speaker #3: That’s defined as the trailing 12-month ratio of premiums we retain in relation to total exchange-written premium. This ratio was 10% for the trailing 12 months, which is in line with our expectations and where we expect to be for the full year of 2026.

Jeff Radke: This ratio was 10% for the trailing 12 months, which is in line with our expectations and where we expect to be for the full year of 2026. Our objective is to pass along the favorable underwriting economics to our risk capital partners in exchange for fees, not to grow our share of net premiums. In summary, we had an excellent quarter of performance against all 6 of our KPIs. This continues our positioning to be the rails on which specialty insurance runs and delivering long-term value to our shareholders. I'll turn it over to Ryan to cover Accelerant's risk exchange metrics in more detail. Ryan.

Speaker #3: Our objective is to pass along the favorable underwriting economics to our risk capital partners in exchange for fees, not to grow our share of net premiums.

Jeff Radke: Our objective is to pass along the favorable underwriting economics to our risk capital partners in exchange for fees, not to grow our share of net premiums. In summary, we had an excellent quarter of performance against all 6 of our KPIs. This continues our positioning to be the rails on which specialty insurance runs and delivering long-term value to our shareholders. I'll turn it over to Ryan to cover Accelerant's risk exchange metrics in more detail. Ryan.

Speaker #3: In summary, we had an excellent quarter of performance against all six of our KPIs. This continues our positioning to be the rails on which specialty insurance runs and delivering long-term value to our shareholders.

Speaker #3: I'll turn it over to Ryan to cover Accelerant's risk exchange metrics in more detail. Ryan?

Speaker #4: Thank you, Jeff, and good morning, everyone. Today, I will begin with the demand side of the platform. We ended the first quarter with 96 risk capital partners in line with our strategy of maintaining a diverse group in order to maximize the stability and efficiency of our platform.

Ryan Schiller: Thank you, Jeff. Good morning, everyone. Today, I will begin with the demand side of the platform. We ended Q1 with 96 risk capital partners, in line with our strategy of maintaining a diverse group in order to maximize the stability and efficiency of our platform. Total Third-Party Written Premium this quarter was $462 million, versus $184 million in Q1 of last year. We currently have 18 third-party insurers and are actively engaging with a range of potential new partners. When we grow with third-party insurers, we are less dependent on our balance sheets, increasing Accelerant's capital lightness. Additionally, we are continuing to work on reducing the concentration of Hadron within our third-party insurers. Consistent with our plan, Hadron's gross written premiums were just 41% of third-party premiums in Q1 2026, down from 67% in Q1 2025.

Speaker #4: Total third-party written premium this quarter was 462 million, versus 184 million in the first quarter of last year. We currently have 18 third-party insurers and are actively engaging with a range of potential new partners.

Speaker #4: When we grow with third-party insurers, we are less dependent on our balance sheets, increasing Accelerant's capital lightness. Additionally, we are continuing to work on reducing the concentration of Hadron within our third-party insurers.

Ryan Schiller: When we grow with third-party insurers, we are less dependent on our balance sheets, increasing Accelerant's capital lightness. Additionally, we are continuing to work on reducing the concentration of Hadron within our third-party insurers. Consistent with our plan, Hadron's gross written premiums were just 41% of third-party premiums in Q1 2026, down from 67% in Q1 2025. We have executed well on the shift away from Hadron, decreasing the percentage of third-party premium to 58% in Q2 2025, 54% in Q3, and 47% in Q4.

Speaker #4: Consistent with our plan, hadron's gross-written premiums were just 41% of third-party premiums in Q1 2026. Down from 67% in Q1 2025. We have executed well on the shift away from hadron, decreasing the percentage of third-party premium to 58% in Q2 of 2025, 54% in Q3, and 47% in Q4.

Ryan Schiller: We have executed well on the shift away from Hadron, decreasing the percentage of third-party premium to 58% in Q2 2025, 54% in Q3, and 47% in Q4. Looking ahead, we continue to expect Hadron to mix down further to 35% to 40% of third-party premium for full year 2026, including less than a third in Q4. Shifting to the supply side of the platform, we delivered $1.14 billion of Exchange Written Premium, a 16% increase from last year's Q1. As Jeff noted, year-over-year growth would have been 22% excluding the terminated member. That's a really strong result, especially considering the low to mid-single-digit growth of the commercial P&C industry. Existing members represented more than 90% of our growth in Q1 2026.

Speaker #4: Looking ahead, we continue to expect hadron to mix down further to 35 to 40 percent of third-party premium for full year 2026, including less than a third in the fourth quarter.

Ryan Schiller: Looking ahead, we continue to expect Hadron to mix down further to 35% to 40% of third-party premium for full year 2026, including less than a third in Q4. Shifting to the supply side of the platform, we delivered $1.14 billion of Exchange Written Premium, a 16% increase from last year's Q1. As Jeff noted, year-over-year growth would have been 22% excluding the terminated member. That's a really strong result, especially considering the low to mid-single-digit growth of the commercial P&C industry. Existing members represented more than 90% of our growth in Q1 2026.

Speaker #4: Shifting to the supply side of the platform, we delivered 1.14 billion of exchange-written premium. A 16% increase from last year's first quarter. And as Jeff noted, year-over-year growth would have been 22% excluding the terminated member.

Speaker #4: That's a really strong result, especially considering the low to mid-single-digit growth of the commercial P&C industry. Existing members represented more than 90% of our growth in the first quarter of 2026.

Speaker #4: That's driven by higher premium volume on existing insurance products and incremental products being offered and written with the Accelerant Risk Exchange. Over the past year, existing members have added more than 100 products to the Accelerant Risk Exchange.

Ryan Schiller: That's driven by higher premium volume on existing insurance products and incremental products being offered and written with the Accelerant Risk Exchange. Over the past year, existing members have added more than 100 products to the Accelerant Risk Exchange. The balance of the exchange written premium growth was driven by the addition of new members, while rate was not a significant driver of our premium growth at just 1% during the quarter, with greater increases in the US versus our international business. Our book of business is not cat exposed and is focused on low limit and low premium specialty policies within the commercial SME space, both admitted and non-admitted. The book of business is made up of thousands of policies, with 95% of them less than $10,000 in annual premium.

Speaker #4: The balance of the exchange-written premium growth was driven by the addition of new members, while rate was not a significant driver of our premium growth at just 1% during the quarter.

Speaker #4: With greater increases in the US versus our international business. Our book of business is not CAT exposed and is focused on low limit and low premium specialty policies within the commercial SME space, both admitted and non-admitted.

Ryan Schiller: Our book of business is not cat exposed and is focused on low limit and low premium specialty policies within the commercial SME space, both admitted and non-admitted. The book of business is made up of thousands of policies, with 95% of them less than $10,000 in annual premium. These policies are much smaller than even the CIAB's small business cohort, which is consistently referenced as seeing more stable rates given their size.

Speaker #4: The book of business is made up of thousands of policies with 95% of them less than 10 grand in annual premium. These policies are much smaller than even the CIAB's small business cohort, which is consistently referenced as seeing more stable rates given their size.

Ryan Schiller: These policies are much smaller than even the CIAB's small business cohort, which is consistently referenced as seeing more stable rates given their size. The bottom line is, Exchange Written Premium is not as meaningfully impacted by the insurance pricing cycle, including what you're reading about across E&S property lines. Moving to our member growth. We continue to believe member count is a good leading indicator for future Exchange Written Premium. In Q1, we added 16 new members, which was just a bit above our plan. Make no mistake, we are not just looking to add volume through member growth. Anyone can do that. Rather, we are undertaking significant due diligence on each new potential member, analyzing their underwriting and making sure their targeted business aligns with our value proposition to our risk capital partners.

Speaker #4: The bottom line is exchange-written premium is not as meaningfully impacted by the insurance pricing cycle, including what you're reading about across ENS property lines.

Ryan Schiller: The bottom line is, Exchange Written Premium is not as meaningfully impacted by the insurance pricing cycle, including what you're reading about across E&S property lines. Moving to our member growth. We continue to believe member count is a good leading indicator for future Exchange Written Premium. In Q1, we added 16 new members, which was just a bit above our plan. Make no mistake, we are not just looking to add volume through member growth. Anyone can do that.

Speaker #4: Moving to our member growth, we continue to believe member count is a good leading indicator for future exchange-written premium. In the first quarter, we added 16 new members, which was just a bit above our plan.

Speaker #4: Make no mistake, we are not just looking to add volume through member growth. Anyone can do that. Rather, we are undertaking significant due diligence on each new potential member, analyzing their underwriting, and making sure their proposition to our risk capital partners.

Ryan Schiller: Rather, we are undertaking significant due diligence on each new potential member, analyzing their underwriting and making sure their targeted business aligns with our value proposition to our risk capital partners. Looking ahead, we have more than $4 billion of annualized premium in our member pipeline at the end of Q1, which makes us excited about the remainder of 2026 and looking forward to 2027. In summary, Q1 2026 was another excellent quarter of execution with a stable but increasing diverse group of risk capital partners and continued member growth.

Speaker #4: Looking ahead, we have more than 4 billion of annualized premium in our member pipeline at the end of the first quarter, which makes us excited about the remainder of '26.

Ryan Schiller: Looking ahead, we have more than $4 billion of annualized premium in our member pipeline at the end of Q1, which makes us excited about the remainder of 2026 and looking forward to 2027. In summary, Q1 2026 was another excellent quarter of execution with a stable but increasing diverse group of risk capital partners and continued member growth. The Accelerant Risk Exchange is well positioned to balance the increasing supply and the rising demand across the platform. I'll now turn it over to Linda to discuss our financial performance in more detail.

Speaker #4: And looking forward to 2027. In summary, Q1 2026 was another excellent quarter of execution, with a stable but increasingly diverse group of risk capital partners and continued member growth.

Speaker #4: The Accelerant risk exchange is well positioned to balance the increasing supply and the rising demand across the platform. I'll now turn it over to Linda to discuss our financial performance in more detail.

Ryan Schiller: The Accelerant Risk Exchange is well positioned to balance the increasing supply and the rising demand across the platform. I'll now turn it over to Linda to discuss our financial performance in more detail.

Speaker #5: Thanks, Ryan, and good morning, everyone. I'm excited to participate on my first earnings call with Accelerant as CFO. Today, I'll be discussing our quarterly financial performance and will walk you through our guidance for 2026.

Linda Huber: Thanks, Ryan. Good morning, everyone. I'm excited to participate on my first earnings call with Accelerant as CFO. Today, I'll be discussing our quarterly financial performance, and we'll walk you through our guidance for 2026. Now, as you heard this morning, we had a great first quarter with continued strong growth in operating revenue and adjusted EBITDA. Overall revenue was up 54% over the prior year to $273 million. Operating revenue, which is before the impact of realized and unrealized investment gains and losses, was up 57%. We posted pre-tax income of $2 million, a GAAP net after-tax loss of $4 million, and adjusted net income of $38 million. The reconciliation of our non-GAAP adjusted net income can be found in our earnings release.

Linda Huber: Thanks, Ryan. Good morning, everyone. I'm excited to participate on my first earnings call with Accelerant as CFO. Today, I'll be discussing our quarterly financial performance, and we'll walk you through our guidance for 2026. Now, as you heard this morning, we had a great Q1 with continued strong growth in operating revenue and adjusted EBITDA. Overall revenue was up 54% over the prior year to $273 million. Operating revenue, which is before the impact of realized and unrealized investment gains and losses, was up 57%.

Speaker #5: Now, as you heard this morning, we had a great first quarter with continued strong growth and operating revenue and adjusted EBITDA. Overall revenue was up 54% over the prior year to $273 million.

Speaker #5: Operating revenue, which is before the impact of realized and unrealized investment gains and losses, was up 57%. We posted pre-tax income of $2 million, a gap net after-tax loss of $4 million, and adjusted net income of $38 million.

Linda Huber: We posted pre-tax income of $2 million, a GAAP net after-tax loss of $4 million, and adjusted net income of $38 million. The reconciliation of our non-GAAP adjusted net income can be found in our earnings release. The largest driver of the difference between GAAP and adjusted net income was share-based compensation expense. This quarter includes approximately $8 million related to the acceleration of certain awards associated with the CFO transition, so we expect share-based compensation expense to be lower in subsequent quarters of 2026.

Speaker #5: The reconciliation of our non-gap adjusted net income can be found in our earnings release. The largest driver of the difference between gap and adjusted net income was share-based compensation expense.

Linda Huber: The largest driver of the difference between GAAP and adjusted net income was share-based compensation expense. This quarter includes approximately $8 million related to the acceleration of certain awards associated with the CFO transition, so we expect share-based compensation expense to be lower in subsequent quarters of 2026. Adjusted EBITDA was $66 million for Q1, compared to $39 million in the comparable quarter last year. Importantly, our fee-based operating revenue and adjusted EBITDA, which we define as consolidated results, less the underwriting segment, grew 52% and 112% respectively. Remember, our goal is to drive adjusted EBITDA growth within our exchange services and MGA operations while continuing to keep our trailing twelve-month underwriting net retention at around the 10% level.

Speaker #5: This quarter includes approximately $8 million related to the acceleration of certain awards associated with the CFO transition. So we expect share-based compensation expense to be lower in subsequent quarters of 2026.

Speaker #5: Adjusted EBITDA was 66 million for the first quarter, compared to 39 million in the comparable quarter last year. Importantly, our fee-based operating revenue and adjusted EBITDA, which we define as consolidated results less the underwriting segment, grew 52% and 112%, respectively.

Linda Huber: Adjusted EBITDA was $66 million for Q1, compared to $39 million in the comparable quarter last year. Importantly, our fee-based operating revenue and adjusted EBITDA, which we define as consolidated results, less the underwriting segment, grew 52% and 112% respectively. Remember, our goal is to drive adjusted EBITDA growth within our exchange services and MGA operations while continuing to keep our trailing twelve-month underwriting net retention at around the 10% level.

Speaker #5: Remember, our goal is to drive adjusted EBITDA growth within our exchange services and MGA operations while continuing to keep our trailing 12-month underwriting net retention at around the 10% level.

Speaker #5: Our segment results show that we are successfully executing on that strategy. Consolidated gap earnings per diluted share was a loss of 2 cents, while adjusted non-gap EPS was 17 cents.

Linda Huber: Our segment results show that we are successfully executing on that strategy. Consolidated GAAP earnings per diluted share was a loss of $0.02, while adjusted non-GAAP EPS was $0.17. Just a reminder, we updated our non-GAAP measures to exclude the impact of net realized and unrealized investment gains and losses. We believe these updates improve comparability and better align us with others in the industry. The impact of these changes on our non-GAAP results were de minimis this quarter. Now let me move on to some comments on our financial performance by segment. I'll begin with the core of Accelerant, exchange services. Q1 exchange services operating revenue was $100 million, up 41% over last year. That's due to the $1.14 billion of Exchange Written Premium and the 8%+ take rate we make on the premium running through our exchange.

Speaker #5: And just a reminder, we updated our non-GAAP measures to exclude the impact of net realized and unrealized investment gains and losses. We believe these updates improve comparability and better align us with others in the industry.

Speaker #5: The impact of these changes on our non-GAAP results was de minimis this quarter. Now, let me move on to some comments on our financial performance by segment.

Linda Huber: Now let me move on to some comments on our financial performance by segment. I'll begin with the core of Accelerant, exchange services. Q1 exchange services operating revenue was $100 million, up 41% over last year. That's due to the $1.14 billion of Exchange Written Premium and the 8%+ take rate we make on the premium running through our exchange. We believe the take rate will be in the mid 8% range for the remainder of the year, reflecting the strong value proposition we provide to our risk capital partners.

Speaker #5: I'll begin with the core of Accelerant, exchange services. First quarter exchange services operating revenue was $100 million, up 41% over last year. That's due to the $1.14 billion of exchange-written premium and the 8% plus take rate we make on the premium running through our exchange.

Speaker #5: We believe the take rate will be in the mid-8% range for the remainder of the year, reflecting the strong value proposition we provide to our risk capital partners.

Linda Huber: We believe the take rate will be in the mid 8% range for the remainder of the year, reflecting the strong value proposition we provide to our risk capital partners. Exchange services adjusted EBITDA was $67 million, leading to an adjusted EBITDA margin of 67%. We expect adjusted EBITDA margins will be approximately 70% for the remainder of 2026. Moving now to our other fee-based segment, MGA operations. This segment represents MGAs we have ownership stakes in, predominantly our Mission MGA incubation business. For Q1, operating revenue was $54 million, growing 10% year over year. That 10% growth was impacted by a little bit of timing between quarters, leveling for that, year over year growth would have been in the high teens. MGA operating adjusted EBITDA was $17 million, resulting in a healthy margin of 31%.

Speaker #5: Exchange services adjusted EBITDA was 67 million dollars, leading to an adjusted EBITDA margin of 67%. We expect adjusted EBITDA margins will be approximately 70% for the remainder of 2026.

Linda Huber: Exchange services adjusted EBITDA was $67 million, leading to an adjusted EBITDA margin of 67%. We expect adjusted EBITDA margins will be approximately 70% for the remainder of 2026. Moving now to our other fee-based segment, MGA operations. This segment represents MGAs we have ownership stakes in, predominantly our Mission MGA incubation business. For Q1, operating revenue was $54 million, growing 10% year-over-year.

Speaker #5: And moving now to our other fee-based segment, MGA operations. This segment represents MGAs we have ownership stakes in, predominantly our Mission MGA incubation business.

Speaker #5: For the first quarter, operating revenue was 54 million dollars, growing 10% year over year. That 10% growth was impacted by a little bit of timing between the quarters, and leveling for that, year over year growth would have been in the high teens.

Linda Huber: That 10% growth was impacted by a little bit of timing between quarters, leveling for that, year-over-year growth would have been in the high teens. MGA operating adjusted EBITDA was $17 million, resulting in a healthy margin of 31%. Shifting to our underwriting segment, which is the home of our own insurance and reinsurance company results. In Q1 of 2026, we generated operating revenue of $149 million and Adjusted EBITDA of $7 million. Adjusted EBITDA margin in the mid-single digits was driven in part by continued strong performance in the gross loss ratio at 52.1%.

Speaker #5: MGA operating adjusted EBITDA was $17 million, resulting in a healthy margin of 31%. And shifting to our underwriting segment, which is the home of our own insurance and reinsurance company results.

Linda Huber: Shifting to our underwriting segment, which is the home of our own insurance and reinsurance company results. In Q1 of 2026, we generated operating revenue of $149 million and Adjusted EBITDA of $7 million. Adjusted EBITDA margin in the mid-single digits was driven in part by continued strong performance in the gross loss ratio at 52.1%. Operating cash used in Q1 was $21 million, predominantly reflecting the timing of reinsurance payments within the underwriting segment and to a much lesser extent, increases in personnel related payments and other expenses to support our growth. Cash flow can be volatile from quarter to quarter, but importantly, we still expect to convert our 2026 fee-based Adjusted EBITDA to free cash flow at a level similar to 2025. Jumping now to our balance sheet.

Speaker #5: In the first quarter of 2026, we generated operating revenue of $149 million and adjusted EBITDA of $7 million. Adjusted EBITDA margin in the mid-single digits was driven in part by continued strong performance in the growth loss ratio at 52.1%.

Speaker #5: Operating cash used in the first quarter was $21 million, predominantly reflecting the timing of reinsurance payments within the underwriting segment, and to a much lesser extent increases in personnel-related payments and other expenses to support our growth.

Linda Huber: Operating cash used in Q1 was $21 million, predominantly reflecting the timing of reinsurance payments within the underwriting segment and to a much lesser extent, increases in personnel related payments and other expenses to support our growth. Cash flow can be volatile from quarter to quarter, but importantly, we still expect to convert our 2026 fee-based Adjusted EBITDA to free cash flow at a level similar to 2025. Jumping now to our balance sheet.

Speaker #5: Cash flow can be volatile from quarter to quarter, but importantly, we still expect to convert our 2026 fee-based adjusted EBITDA to free cash flow at a level similar to 2025.

Speaker #5: And jumping now to our balance sheet, at March 31st, we had about $450 million of unrestricted cash and investments outside the insurance companies. That's after our first quarter repurchase of $828,000 in Class A shares for $11 million at a weighted average price of $13.11 per share.

Linda Huber: At 31 March, we had about $450 million of unrestricted cash and investments outside the insurance company. That's after our Q1 repurchase of 828,000 Class A shares for $11 million at a weighted average price of $13.11 per share. We find share repurchases very attractive at current levels and have repurchased another $52 million so far in Q2. We will continue to evaluate repurchases against a backdrop of valuation, our future expected cash flows, and investments back into the business. Within our insurance entities, we had approximately $630 million of capital at the end of Q1. We expect minimal capital contributions to these entities during 2026 as we continue to grow with third-party insurers. Moving now to our financial outlook.

Speaker #5: We find share repurchases very attractive at current levels, and have repurchased another 52 million dollars so far in the second quarter. We will continue to evaluate repurchases against a backdrop of valuation, our future expected cash flows, and investments back into the business.

Speaker #5: Within our insurance entities, we had approximately $630 million of capital at the end of the first quarter. We expect minimal capital contributions to these entities during 2026, as we continue to grow with third-party insurers.

Linda Huber: Within our insurance entities, we had approximately $630 million of capital at the end of Q1. We expect minimal capital contributions to these entities during 2026 as we continue to grow with third-party insurers. Moving now to our financial outlook. We're providing the following financial guidance based on our strong Q1 performance and more favorable outlook for the year.

Speaker #5: And moving now to our financial outlook, we're providing the following financial guidance based on our strong first quarter performance and more favorable outlook for the year.

Linda Huber: We're providing the following financial guidance based on our strong first quarter performance and more favorable outlook for the year. In Q2, we expect, first, Exchange Written Premium of $1.27 billion to $1.32 billion. Second, Third-Party Direct Written Premium of $580 million to $620 million. Adjusted EBITDA of $60 million to $66 million. For the full year 2026, we expect, first, Exchange Written Premium of at least $5.2 billion. Secondly, Third-Party Direct Written Premium of at least $2.3 billion. Finally, adjusted EBITDA of at least $285 million, which includes fee-based or non-underwriting adjusted EBITDA of at least $276 million. Two additional comments regarding Q2 2026.

Speaker #5: In the second quarter, we expect first exchange-written premium of $1.27 billion to $1.32 billion. Second, third-party direct written premium of $580 million to $620 million.

Linda Huber: In Q2, we expect, first, Exchange Written Premium of $1.27 billion to $1.32 billion. Second, Third-Party Direct Written Premium of $580 million to $620 million. Adjusted EBITDA of $60 million to $66 million. For the full year 2026, we expect, first, Exchange Written Premium of at least $5.2 billion. Secondly, Third-Party Direct Written Premium of at least $2.3 billion. Finally, adjusted EBITDA of at least $285 million, which includes fee-based or non-underwriting adjusted EBITDA of at least $276 million. Two additional comments regarding Q2 2026.

Speaker #5: And adjusted EBITDA of 60 million dollars to 66 million dollars. For the full year 2026, we expect first exchange-written premium of at least 5.2 billion dollars, secondly, third-party direct written premium of at least 2.3 billion dollars, and finally, adjusted EBITDA of at least 285 million dollars, which includes fee-based or non-underwriting adjusted EBITDA of at least 276 million dollars.

Speaker #5: And two additional comments regarding the second quarter of 2026. First, our second quarter adjusted EBITDA guidance includes eliminations in the 20 million dollar range.

Linda Huber: First, our Q2 adjusted EBITDA guidance includes eliminations in the $20 million range, the Q2 segmental adjusted EBITDA is estimated to be much higher than the consolidated figure. Over time, we expect elimination adjustments to decline given the expected increase in the proportion of premiums written by third party insurers. Importantly, we increased our full year guidance given our confidence in continued adjusted EBITDA growth in H2 2026. Second, from time to time, we make strategic investments in financially attractive business partners. In late April, there were transactions resulting in an observed increase in the fair value of an investment we had made in a third-party claims administration business. We participated in the capital transaction, sold a portion of interest, and generated $52 million of cash proceeds.

Speaker #5: And the second quarter segmental adjusted EBITDA is estimated to be much higher than the consolidated figure. Over time, we expect elimination adjustments to decline given the expected increase in the proportion of premiums written by third-party insurers.

Speaker #5: Importantly, we increased our full year guidance given our confidence in continued adjusted EBITDA growth in the second half of 2026. Second, from time to time, we make strategic investments in financially attractive business partners.

Speaker #5: And in late April, there were transactions resulting in an observed increase in the fair value of an investment we had made in a third-party claims administration business.

Linda Huber: In late April, there were transactions resulting in an observed increase in the fair value of an investment we had made in a third-party claims administration business. We participated in the capital transaction, sold a portion of interest, and generated $52 million of cash proceeds. We also expect to recognize both a realized gain on the sale and an unrealized gain on the portion we continue to hold in aggregate of $55 million during Q2. Our non-GAAP metrics will exclude the revenue, EBITDA, and net income of this transaction.

Speaker #5: We participated in the capital transactions and sold a portion of interest and generated $52 million of cash proceeds. We also expect to recognize both a realized gain on the sale and an unrealized gain on the portion we continue to hold, in aggregate of $55 million, during the second quarter.

Linda Huber: We also expect to recognize both a realized gain on the sale and an unrealized gain on the portion we continue to hold in aggregate of $55 million during Q2. Our non-GAAP metrics will exclude the revenue, EBITDA, and net income of this transaction. In summary, Q1 was further proof of the strength of our business model. Looking ahead, we see continued strong growth in Exchange Written Premium and adjusted EBITDA. That positive momentum is reflected in our increased 2026 financial outlook relative even to 8 weeks ago. With that, I'll turn things back to Jeff.

Speaker #5: Our non-gap metrics will exclude the revenue, EBITDA, and net income of this transaction. So in summary, first quarter was further proof of the strength of our business model.

Linda Huber: In summary, Q1 was further proof of the strength of our business model. Looking ahead, we see continued strong growth in Exchange Written Premium and adjusted EBITDA. That positive momentum is reflected in our increased 2026 financial outlook relative even to 8 weeks ago. With that, I'll turn things back to Jeff.

Speaker #5: Looking ahead, we see continued strong growth in exchange-written premium and adjusted EBITDA. That positive momentum is reflected in our increased 2026 financial outlook, relative even to eight weeks ago, and with that, I'll turn things back to Jeff.

Speaker #1: Thanks, Linda. Before we move to your questions, I'd like to welcome our two new independent board members who were elected at our Annual General Meeting earlier this week.

Jeff Radke: Thanks, Linda. Before we move to your questions, I'd like to welcome our two new independent board members who were elected at our annual general meeting earlier this week, David Talach and Simon Wainwright. Both are skilled and talented executives and bring diverse perspectives, which will be valuable to the board and the management team as we endeavor to make Accelerant the rails on which specialty insurance runs. We are well on our way to realizing that vision. We are actively attracting and growing with the industry's most talented and entrepreneurial underwriters, our MGA members. We are making them even better with our data analytics and increasingly autonomous underwriting tools. We are connecting them to diversified, committed, and high-quality risk capital that is looking to generate attractive, predictable returns.

Speaker #1: David Talich and Simon Wainwright. Both are skilled and talented executives and bring diverse perspectives which will be valuable to the board and the management team as we endeavor to make Accelerant the rails on which specialty insurance runs.

Speaker #1: We are well on our way to realizing that vision. We are actively attracting and growing with the industry's most talented and entrepreneurial underwriters, our MGA members.

Jeff Radke: We are actively attracting and growing with the industry's most talented and entrepreneurial underwriters, our MGA members. We are making them even better with our data analytics and increasingly autonomous underwriting tools. We are connecting them to diversified, committed, and high-quality risk capital that is looking to generate attractive, predictable returns. The growth in Exchange Written Premium over the past year is continued affirmation of the value our platform provides to our members and risk capital partners.

Speaker #1: We are 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 that is looking to generate attractive predictable returns.

Speaker #1: The growth in exchange-written premium over the past year is continued affirmation of the value our platform provides to our members and risk capital partners.

Jeff Radke: The growth in Exchange Written Premium over the past year is continued affirmation of the value our platform provides to our members and risk capital partners. Operator, we will now open it up for questions.

Speaker #1: Operator, we will now open it up for questions.

Jeff Radke: Operator, we will now open it up for questions.

Speaker #2: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue.

Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit yourself to one question and one follow-up and queue back up if you have any additional questions. Your first question comes from the line of Roland Hemmer of RBC Capital Markets. Your line is open.

Speaker #2: If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker #2: And we do request for today's session that you please limit yourself to one question and one follow-up, and cue back up if you have any additional questions.

Speaker #2: Your first question comes from a line of Roland Mayer of RBC Capital Markets. Your line is open.

Operator: Your first question comes from the line of Roland Hemmer of RBC Capital Markets. Your line is open.

Speaker #3: Hi, good morning. I wanted to start on the new ads, the MGA partners in the first quarter. Looks like it was more tilted towards mission and owned MGAs.

Roland Hemmer: Hi, good morning. I wanted to start on the new ads and the MGA partners in Q1. It looks like it was more tilted towards Mission and owned MGAs. Was there anything specific that drove that? Are we reaching a point where the majority of quality MGAs are already on your platform?

Rowland Mayor: Hi, good morning. I wanted to start on the new ads and the MGA partners in Q1. It looks like it was more tilted towards Mission and owned MGAs. Was there anything specific that drove that? Are we reaching a point where the majority of quality MGAs are already on your platform?

Speaker #3: And was there anything specific that drove that, and are we reaching a point where the majority of quality MGAs are already on your platform?

Speaker #4: Hi, Roland. It's Ryan. Thanks for the question and good morning. I so a few odd things that happened in the quarter. One, we actually had an existing independent member that shifted to be a mission member, which was one of those in the quarter.

Ryan Schiller: Hi, Roland. It's Ryan. Thanks for the question and good morning. I, a few odd things that happened in the quarter. One, we actually had an existing independent member that shifted to be a Mission member, which was one of those in the quarter. I still think we expect going forward, just like we saw last year, that the vast majority of new members will be independent members. I think as suggested by the size of our pipeline, we don't think we're sort of touching or getting anywhere close to the bottom in terms of the opportunity out there and the number of high-quality underwriters that we're seeing and hopefully being able to partner with.

Speaker #4: I still think we expect going forward, just like we saw last year, that the vast majority of new members will be independent members. And I think as suggested by the size of our pipeline, we don't think we're sort of touching or getting anywhere close to the bottom in terms of the opportunity out there and the number of high-quality underwriters that we're seeing and hopefully being able to partner with.

Ryan Schiller: I think as suggested by the size of our pipeline, we don't think we're sort of touching or getting anywhere close to the bottom in terms of the opportunity out there and the number of high-quality underwriters that we're seeing and hopefully being able to partner with.

Speaker #3: That's helpful. Maybe one more quick one. Can you on the fee-based definition, does that include corporate and eliminations?

Roland Hemmer: That's helpful. Maybe one more quick one. On the fee-based definition, does that include corporate and eliminations?

Rowland Mayor: That's helpful. Maybe one more quick one. On the fee-based definition, does that include corporate and eliminations?

Speaker #4: It does.

Ryan Schiller: It does.

Speaker #3: All right. Thank you. That's all I really had.

Roland Hemmer: All right, thank you. That's all I really had.

Rowland Mayor: All right, thank you. That's all I really had.

Speaker #2: Your next question comes from Charlie Litterer of BMO Capital Markets. Your line is open.

Operator: Your next question comes from the line of Charlie Litterer of BMO Capital Markets. Your line is open.

Speaker #5: Hey, thanks. Good morning. If I take your EBITDA guide, as a percentage of premium for Q2 and the full year, it points to that ratio moving lower, year over year, both in Q2 and for the full year.

Charlie Litterer: Hey, thanks. Good morning. If I take your EBITDA guide as a percentage of premium for Q2 in the full year, it points to that ratio moving lower year over year, both in Q2 and for the full year. I appreciate, you know, you have a lot of eliminations, you said that that'll go down over time, but given you've, you know, increased the percentage of premium coming from third parties year over year, why would that move lower? Can you expand on what's driving that? Thank you.

Charlie Lederer: Hey, thanks. Good morning. If I take your EBITDA guide as a percentage of premium for Q2 in the full year, it points to that ratio moving lower year-over-year, both in Q2 and for the full year. I appreciate, you know, you have a lot of eliminations, you said that that'll go down over time, but given you've, you know, increased the percentage of premium coming from third parties year-over-year, why would that move lower? Can you expand on what's driving that? Thank you.

Speaker #5: I appreciate you have a lot of eliminations. You said that that'll go down over time, but given you've increased the percentage of premium coming from third parties year over year, why would that move lower?

Speaker #5: Can you expand on what's driving that? Thank you.

Speaker #4: Yeah, Charlie, great question. Particularly in Q2, I think we're expecting a higher level of eliminations than would be normal. I think we're expecting very strong segmental results.

Ryan Schiller: Yeah, Charlie, great question. Particularly in Q2, I think we're expecting a higher level of eliminations than would be normal. I think we're expecting very strong segmental results, and we'd expect that to look at the full year guide for both Q3 and Q4 and what that implies, right? Some elevated performance that, you know, we expect to come through as the overall platform continues to sing. Further, as you'll recall from prior conversations, the more and more business we're writing with those third-party insurers, we're shifting more and more towards our fee-based segments and away from underwriting, right? That is obviously going to reduce overall revenue, but that's a good thing.

Speaker #4: And we'd expect that as you'd look at the full year guide for both Q3 and Q4 and what that implies, right? Some elevated performance that we expect to come through as the overall platform continues to sing.

Speaker #4: Further, as you'll recall from prior conversations, the more and more business we're riding with those third-party insurers, we're shifting more and more towards our fee-based segments and away from underwriting, right?

Ryan Schiller: Further, as you'll recall from prior conversations, the more and more business we're writing with those third-party insurers, we're shifting more and more towards our fee-based segments and away from underwriting, right? That is obviously going to reduce overall revenue, but that's a good thing. What we're very focused on is how are we maximizing those fee-based segments and having those, essentially those eliminations earn through as you write more and more business with third-party insurance companies.

Speaker #4: That is obviously going to reduce overall revenue, but that's a good thing. And so what we're very focused on is how are we maximizing those fee-based segments and having those essentially those eliminations earned through, as you write more and more business with third-party insurance companies.

Ryan Schiller: What we're very focused on is how are we maximizing those fee-based segments and having those, essentially those eliminations earn through as you write more and more business with third-party insurance companies.

Speaker #5: Thanks. And switching gears, Jeff, in the 10-Q we can see you opened up a new 10b5-1 plan. Appreciate you'll still have alignment via holding a significant number of shares, but wondering if you can provide some color or expand on that.

Charlie Litterer: Thanks. Switching gears, you know, Jeff, on, in the Form 10-Q, you know, we can see you opened up a new Rule 10b5-1 plan. Appreciate you'll still have alignment, you know, via holding a significant number of shares, but wondering if you can, you know, provide some color or expand on that. Thanks.

Charlie Lederer: Thanks. Switching gears, you know, Jeff, on, in the Form 10-Q, you know, we can see you opened up a new Rule 10b5-1 plan. Appreciate you'll still have alignment, you know, via holding a significant number of shares, but wondering if you can, you know, provide some color or expand on that. Thanks.

Speaker #5: Thanks.

Speaker #4: Sure. And thank you for the question. Quite simply, it's to pay a tax bill. And as you said, I just point out to listeners, it's a small percentage of the position that I and the rest of the senior management team have.

Jeff Radke: Sure. Thank you for the question. Quite simply, it's to pay a tax bill. As you said, I'd just point out to listeners, it's a small percentage of the position that I and the rest of the senior management team have.

Speaker #5: Okay. Thanks. Maybe just one last one. So you're clearly having success demixing Hadron. As you move closer to that being 33% in the back half of the year, can you share how spread out the exposure for the other 17 carriers on the exchange is going to be?

Charlie Litterer: Okay, thanks. Maybe just one last one. You know, you're clearly having success demixing Hadron. As you move closer to, you know, to that being 33% in H2, can you share how spread out, you know, the exposure from the other 17, you know, carriers on the exchange is gonna be? Are there any concentrations there? Any color? Thanks.

Charlie Lederer: Okay, thanks. Maybe just one last one. You know, you're clearly having success demixing Hadron. As you move closer to, you know, to that being 33% in H2, can you share how spread out, you know, the exposure from the other 17, you know, carriers on the exchange is gonna be? Are there any concentrations there? Any color? Thanks.

Speaker #5: Are there any concentrations there? Any color? Thanks.

Speaker #4: I think our experience with Hadron I'm not sure we needed to be taught a lesson, but we are very focused on making sure that there isn't a concentration issue that emerges in the others.

Jeff Radke: I think our experience with Hadron, I'm not sure we needed to be taught a lesson, but we are very focused on making sure that there isn't a concentration issue that emerges in the others. They're all terrific companies, and they're all growing really, really well. I don't think that there'll be another concentration thing that emerges that will concern you or us.

Speaker #4: They're all terrific companies, and they're all growing really, really well. So I don't think that there'll be another concentration thing that emerges that would concern you or us.

Speaker #2: Your next question comes from a line of Robert Cox of Goldman Sachs. Your line is open.

Operator: Your next question comes from line of Robert Cox of Goldman Sachs. Your line is open.

Speaker #6: Hey, thanks. Good morning. So just looking at the share buyback, numbers are really strong in the first, call it, few months here relative to your outstanding authorization.

Robert Cox: Hey, thanks. Good morning. Just looking at the share buyback, you know, numbers are really strong in the first, call it few months here relative to your outstanding authorization. My question is on the cash in the non-regulated entities. I think the firm has around $450 million in cash and investments in the non-underwriting entities. Can you just help us think through your thought process on how that should grow along with the business over the next 3 years? In any context around what you think might be a floor for those cash levels as we think about capital deployment through the buyback.

Speaker #6: But my question is on the cash and the non-regulated entities. I think the firm has around 450 million in cash and investments in the non-underwriting entities.

Speaker #6: Can you just help us think through your thought process on how that should grow along with the business over the next three years? And any context around what you think might be a floor for those cash levels as we think about capital deployment through the buyback?

Speaker #4: Yeah, sure, Robert. It's Linda. Thank you very much for the question. Focusing just on where we are with the buyback first, on March 18th, you'll remember we announced $200 million of authorization.

Linda Huber: Sure, Robert. It's Linda. Thank you very much for the question. Focusing just on where we are with the buyback first. On 18 March, you'll remember we announced $200 million of authorization, and through yesterday, we've repurchased about $63 million of shares. That leaves us with about $137 million outstanding on our authorization. We'll continue to look at that and evaluate where we stand with our expectations on cash flow, our views on valuation, and thoughts regarding investments back into the business. You're right, we have about $450 million of cash outside the entities. What we would like to do is maintain a safe cash level across the business.

Speaker #4: And through yesterday, we've repurchased about $63 million of shares. So that leaves us with about $137 million outstanding on our authorization. And we'll continue to look at that.

Speaker #4: And evaluate where we stand with our expectations on cash flow, our views on valuation, and thoughts regarding investments back into the business. You're right, we have about 450 million of cash outside the entities.

Linda Huber: You're right, we have about $450 million of cash outside the entities. What we would like to do is maintain a safe cash level across the business. We haven't disclosed what that would be, but we're very optimistic about future cash flows for the business. We'll continue to update you as we move through the next quarter's earnings call in terms of what we've done with share repurchase, but we're very comfortable with cash situation and the cash flow outlook.

Speaker #4: And what we would like to do is maintain a safe cash level across the business. We haven't disclosed what that would be, but we're very optimistic about future cash flows for the business.

Linda Huber: We haven't disclosed what that would be, but we're very optimistic about future cash flows for the business. We'll continue to update you as we move through the next quarter's earnings call in terms of what we've done with share repurchase, but we're very comfortable with cash situation and the cash flow outlook.

Speaker #4: So we'll continue to update you as we move through the next quarter's earnings call in terms of what we've done with share repurchase, but we're very comfortable with cash situation and the cash flow outlook.

Speaker #2: Okay. Thank you. And then just wanted to follow up, Jeff, thanks for all the helpful comments on how Accelerant is leveraging AI. I just wanted to double-check or double-click on your comments for reducing reliance or replacing third-party software systems.

Robert Cox: Okay. Thank you. Just wanted to follow up, Jeff, thanks for all the helpful comments on how Accelerant is leveraging AI. I just wanted to double-check, or double-click on your comments for reducing reliance or replacing third-party software systems. Can you just provide a little more color on what types of functions these systems are providing that you might be able to bypass, and if you think Accelerant is uniquely capable of bypassing these systems due to the company's technology stack?

Speaker #2: Can you just provide a little more color on what types of functions these systems are providing that you might be able to bypass? And if you think Accelerant is uniquely capable of bypassing these systems, due to the company's technology stack?

Jeff Radke: Great question. Let me set the stage more broadly and then I'll eventually get to your question. From our perspective, AI and our team is how we're going to become a $20 billion platform. We're reinventing Accelerant to speed up every critical process inside Accelerant using AI and that terrific team we built. While there are great efficiencies to that, some of that is the third-party software that you described, what we're really excited about is the speed and how quickly we can move. The reason that's important is moving faster means we will capture more of that specialty insurance marketplace. As you know, every percentage point share that we gain, that means more data, which means a bigger moat. More data means better loss ratios and the ability to grow smarter, faster.

Speaker #4: Great question. Let me set the stage more broadly and then I'll eventually get to your question. From our perspective, AI and our team is how we're going to become a $20 billion platform.

Speaker #4: So we're reinventing Accelerant to speed up every critical process inside Accelerant using AI and that terrific team we've built. And while there are great efficiencies to that, some of that is the third-party software that you described.

Speaker #4: What we're really excited about is the speed and how quickly we can move. And the reason that's important is moving faster means we will capture more of that specialty insurance marketplace.

Jeff Radke: The reason that's important is moving faster means we will capture more of that specialty insurance marketplace. As you know, every percentage point share that we gain, that means more data, which means a bigger moat. More data means better loss ratios and the ability to grow smarter, faster. You run that flywheel for a year or two, the growth potential of the portfolio is really, really extraordinary. I want to be clear that the real excitement about reinventing Accelerant with AI comes on the offensive side of the ball.

Speaker #4: And as you know, every percentage point share that we gain, that means more data which means a bigger moat, more data means better loss ratios and the ability to grow smarter faster.

Speaker #4: So you run that flywheel for a year or two, and the growth potential of the portfolio is really, really extraordinary. So I want to be clear that the real excitement about reinventing Accelerant with AI comes on the offensive side of the ball.

Jeff Radke: You run that flywheel for a year or two, the growth potential of the portfolio is really, really extraordinary. I want to be clear that the real excitement about reinventing Accelerant with AI comes on the offensive side of the ball. Now, having said that, what types of, what types of software was I talking about? I was talking about the historically, very, very tailored insurance and reinsurance software around administration of policies and administration of reinsurance. We're having great luck in replacing or reducing the reliance on those pieces of software. I suspect. Well, I can't answer how fast other organizations will be able to do that. I'm pleased with what the team's been achieving week to week over here, though.

Speaker #4: Now, having said that, what types of software was I talking about? I was talking about the historically very, very tailored insurance and reinsurance software around administration of policies and administration of reinsurance.

Jeff Radke: Now, having said that, what types of, what types of software was I talking about? I was talking about the historically, very, very tailored insurance and reinsurance software around administration of policies and administration of reinsurance. We're having great luck in replacing or reducing the reliance on those pieces of software. I suspect. Well, I can't answer how fast other organizations will be able to do that. I'm pleased with what the team's been achieving week to week over here, though.

Speaker #4: We're having great luck in replacing or reducing the reliance on those pieces of software. I suspect that other well, I can't answer how fast other organizations will be able to do that.

Speaker #4: I'm pleased with what the team's been achieving week to week over here, though.

Speaker #2: Thank you. That's helpful. Your next question comes from a line of Paul Newsom of Piper Sandler. Your line is open.

Robert Cox: Thank you. That's helpful.

Operator: Your next question comes from the line of Paul Newsome of Piper Sandler. Your line is open.

Paul Newsome: Good morning. I think at the end of the year, there was a fairly big shift in the cost industry-wide of fronting. Curious as we have moved towards using other fronts beyond Hadron, has there been a change in the sort of incremental economics because of the competition and change in the fronting business in the last several months?

Speaker #7: Good morning. I think at the end of the year, there was a fairly big shift in the costs industry-wide of fronting. And curious is, as we have moved towards using other fronts beyond Hadron, has there been a change in the sort of incremental economics because of the competition and change in the fronting business in the last several months?

Speaker #4: Thanks for the question, Paul. I hope you're doing well. Nothing to do with I don't believe anything to do with Hadron or any of our other risk exchange insurance partners.

Jeff Radke: Thanks for the question, Paul. I hope you're doing well. Nothing to do with, I don't believe anything to do with Hadron or any of our other risk exchange insurance partners. What I will say is that we have experienced the ability to get better and better unit economics as the portfolio grows, and we're able to become a bigger and bigger and more important partner of our risk exchange insurance partners. We've been able to improve the unit economics, which is a fancy way, Paul, of saying they're charging less to use their balance sheets.

Speaker #4: What I will say is that we have experienced the ability to get better and better unit economics as the portfolio grows. And we're able to become a bigger and bigger and more important partner.

Speaker #4: Of our risk exchange insurance partners, we've been able to improve the unit economics, which is a fancy way, Paul, of saying they're charging less to use their balance sheets.

Paul Newsome: Sort of a different question. There's a lot of talk in the industry about at the broker level have a ton of MGAs about sort of a war on talent and some, you know, as you know, some as my grandmother would say, interesting strategies towards approaching people. Does that have any impact on MGA formations for you in any way, shape, or form? Because of insanity that's happening at.

Speaker #7: Sort of different question. There's a lot of talk in the industry about at the broker level, we have a ton of MGAs. About sort of a war on talent and some as my grandmother would say, interesting strategies towards approaching people.

Speaker #7: But does that have any impact on MGA formations for you in any way, shape, or form? Kind of the insanity that's happening at some of the brokers' levels?

Jeff Radke: Paul

Paul Newsome: some brokers' office.

Speaker #4: Paul, I'm going to read that back to you because for me, it was a little hard to hear you. I think what I heard is there have been a lot of comments about the war for talent.

Jeff Radke: Paul, I'm gonna read that back to you because for me it was a little hard to hear you. I think what I heard is there have been a lot of comments about the war for talent and whether that I think you asked did that, in our view, slow down the formation pace of MGAs. Did I get that right, Paul?

Speaker #4: And whether that, I think you asked, did that in our view slow down the formation pace of MGAs? Did I get that right, Paul?

Speaker #7: Yep. That's the general thought.

Paul Newsome: Yep. That's the general thought.

Speaker #4: Yeah. I don't think so. Not that we felt. We're able to add, as Ryan said, predominantly independent MGAs. But we've been able to add MGAs at a pace that's very consistent.

Jeff Radke: Yeah. I don't think so. Not, not that we've felt. We're able to add, as Ryan said, predominantly independent MGAs, but we've been able to add MGAs at a pace that's very consistent. I don't think so. Not that we've noticed, Paul.

Speaker #4: So I don't think so. Not that we've noticed, Paul.

Speaker #7: Right. Appreciate the help. Thank you.

Paul Newsome: All right. Appreciate the help. Thank you.

Speaker #4: Sure.

Jeff Radke: Sure.

Speaker #2: And again, if you have a question, it's star one on your telephone keypad. Your next question comes from a line of Andrew Klugerman of TD Cowen.

Operator: Again, if you have a question, it's star 1 on your telephone keypad. Your next question comes from the line of Andrew Kligerman of TD Cowen.

Speaker #2: Your line is open.

Speaker #8: Good morning. I want to follow up a little bit on the MGAs. You had another robust quarter with 16 members. And I'm wondering if you could size the market.

Andrew Kligerman: Good morning. I want to follow up a little bit on the MGAs. You had another robust quarter with 16 members. I'm wondering, you know, if you could size the market. You know, how long can you continue to add quality members at this kind of a pace? Maybe just along those lines, a lot of the traditional underwriters have been throwing mud at MGAs. I'm curious as to what your thoughts are on that.

Speaker #8: How long can you continue to add quality members at this kind of a pace? And maybe just along those lines, a lot of the traditional underwriters have been growing mud at MGAs.

Speaker #8: And I'm curious as to what your thoughts are on that.

Speaker #4: Sure. Well, first of all, hi, Andrew. Thank you for the question. I guess the only way that Accelerant can really answer that question is based on what we see in front of it.

Jeff Radke: Sure. Well, first of all, hi, Andrew. Thank you for the question. I guess the only way that Accelerant can really answer that question is based on what we see in front of it. The questions about how big is the market or how long can this continue, we can only talk about, I think, the pipeline ahead of us. Here's what I'd say. What I would say is in the US, in the UK, and especially in Europe, there continue to be just spectacular opportunities that we're so excited about because of the quality of the underwriting teams that are looking to be able to join the Accelerant platform. That, Andrew, I don't know if and when we run out of runway, but I'll tell you the runway is looking longer and larger quarter by quarter instead of shorter.

Speaker #4: The questions about how big is the market or how long can this continue? We can only talk about, I think, the pipeline ahead of us.

Speaker #4: And here's what I'd say. What I would say is in the US, in the UK, and especially in Europe, there continues to be just spectacular opportunities that we're so excited about because of the quality of the underwriting teams.

Speaker #4: That are looking to be able to join the Accelerant platform. That Andrew, I don't know if and when we run out of runway, but I'll tell you the runway is looking longer and larger quarter by quarter instead of shorter.

Jeff Radke: That, Andrew, I don't know if and when we run out of runway, but I'll tell you the runway is looking longer and larger quarter by quarter instead of shorter.

Speaker #8: And the other thing, Andrew, sorry, this is Ryan just hopping in sort of on the first part of your question, particularly at the market sizing.

Ryan Schiller: The other thing, Andrew, sorry, this is Ryan just hopping in sort of on the first part of your question, particularly the market sizing. Look, a large part of our team was just recently at the Target Markets Conference here in the United States. There was also a MGA conference in Barcelona, I think earlier this week, that a large part of our team was at. I think we're seeing more and more fervent demand and excitement around the space from within sort of MGAs broadly or focused on MGAs broadly. I think you could see that also in the note 19 data about the overall MGA market continuing to take share. When we think about the target market, right? I think you saw this in our prospectus, et cetera, right?

Speaker #8: Look, a large part of our team was just recently at the target markets conference here in the United States. There was also an MGA conference in Barcelona, I think, earlier this week that a large part of our team was at.

Speaker #8: And I think we're seeing more and more fervent demand and excitement around the space from within sort of MGAs broadly or focused on MGAs broadly.

Speaker #8: And I think you could see that also in the note 19 data about the overall MGA market continuing to take share. When we think about the target market, right, and I think you saw this in our perspectives, etc., right, we've always talked about a $252 billion market.

Ryan Schiller: I think you could see that also in the note 19 data about the overall MGA market continuing to take share. When we think about the target market, right? I think you saw this in our prospectus, et cetera, right? We've always talked about a $252 billion market, that MGAs just keep taking share of, sort of within our core space. What the, you know, in our opinion, what the scarce resource is there is truly the specialty underwriting talent, whether it sits in an MGA or whether it sits in what you'd call, right, a direct underwriter at an insurance company. Either way, right?

Ryan Schiller: We've always talked about a $252 billion market, that MGAs just keep taking share of, sort of within our core space. What the, you know, in our opinion, what the scarce resource is there is truly the specialty underwriting talent, whether it sits in an MGA or whether it sits in what you'd call, right, a direct underwriter at an insurance company. Either way, right? That's the scarce resource. That scarce resource is going to continue to find whatever ways make the most sense for it, right? To do and conduct business. I think, Jeff, maybe it's worth you commenting on the second part of Andrew's question related to obviously, I think some folks in the broader market have been throwing stones at MGAs.

Speaker #8: But MGAs just keep taking share of sort of within our core space. And what the in our opinion, what the scarce resource is there is truly the specialty underwriting talent.

Speaker #8: Whether it sits in an MGA or whether it sits in what you'd call a direct underwriter at an insurance company. Either way, right, that's the scarce resource.

Ryan Schiller: That's the scarce resource. That scarce resource is going to continue to find whatever ways make the most sense for it, right? To do and conduct business. I think, Jeff, maybe it's worth you commenting on the second part of Andrew's question related to obviously, I think some folks in the broader market have been throwing stones at MGAs.

Speaker #8: And that scarce resource is going to continue to find whatever ways, make the most sense for it, right, to do and conduct business. I think Jeff, maybe it's worth you commenting on the second part of Andrew's question related to obviously, I think some folks in the broader market have been throwing stones at MGAs.

Speaker #4: Yeah. Which is pretty standard if you've been through enough cycle rotations. This is the time for those pithy comments. One of the comments that I read, I thought was great, is the speaker said, "This is short-tail business.

Jeff Radke: Yeah. Which is pretty standard. If you've been through enough cycle rotations, this is the time.

Andrew Kligerman: Yeah

Jeff Radke: for those pissy comments. One of the comments that I read I thought was great is the speaker said, This is short tail business. The report card comes home pretty quickly. We couldn't agree more, and we love our report card. Right.

Speaker #4: The report card comes home pretty quickly. We couldn't agree more. And we love our report card, right? The gross loss ratio is still terrific.

Andrew Kligerman: Yeah.

Jeff Radke: The gross loss ratio is still terrific. What's perhaps more important and more comforting, at least to me, is the fact that what we're looking through and seeing in our portfolio is not loss experience. That's a trailing indicator. What we're looking through and we're seeing all that exposure characteristics that I described about our data edge, we know the quality of our book, and we know the quality of our book of business is getting better. I'm sure there are lots of different kinds of MGAs out there in the world. We say no to most of the MGAs that want to join. I can only speak to the ones that are Accelerant members, and they're doing terrifically.

Speaker #4: And what's perhaps more important, and more comforting, at least to me, is the fact that what we're looking through and seeing in our portfolio is not loss experience.

Speaker #4: That's a trailing indicator. What we're looking through, and we're seeing all those exposure characteristics that I described about our data edge—we know the quality of our book.

Speaker #4: And we know the quality of our book of business is getting better. So I'm sure there are lots of different kinds of MGAs out there in the world.

Speaker #4: We say no to most of the MGAs that want to join. So I can only speak to the ones that are Accelerant members. And they're doing terrifically.

Jeff Radke: I can only speak to the ones that are Accelerant members, and they're doing terrifically.

Speaker #9: Yeah. That's a great comment. And I do like the report card that we saw this quarter at 52% gross loss ratio. So maybe thinking about that 52%, Jeff, Ryan, team, could you talk a little bit about the pricing by your major product areas that you're seeing in terms of rate?

Andrew Kligerman: Yeah. That's a great comment. I do like the report card that we saw this quarter at 52% gross loss ratio. Thinking about that 52%, Jeff, Ryan, team, could you talk a little bit about the pricing by your major product areas that you're seeing in terms of rate? I think you talked about only 2% of last 12 months growth coming from rate. That was a good sign. Just break down a few of your key product areas. What kind of rate were you seeing? You know, does that allow you to sustain that kind of 52% strike zone for gross loss ratio over the intermediate term?

Speaker #9: I think you talked about only 2% of last 12 months' growth coming from rate. So that was a good sign. But maybe just break down a few of your key product areas.

Speaker #9: What kind of rate were you seeing? And does that allow you to sustain that kind of 52% strike zone for a gross loss ratio over the intermediate term?

Speaker #4: Sure, Andrew. You know this, but for other listeners—as always—it's a mixed bag, right? Depending on geography and class of business, rates are moving up or down at differing levels.

Jeff Radke: Sure, Andrew. You know this, but for other listeners, as always, it's a mixed bag, right? Depending on geography and class of business, things, rates are moving up or down, at differing levels. The other thing that's worth noting is the largest rate increases that we get and every other underwriter gets, is on the worst business, sort of by definition, right? Because the market has decided the rates have to go up. Almost by definition, it needs sort of a correction. Here's what I'd say. What I would say is the US market from a rate perspective is healthier than the UK or Europe. However, across all classes of business, we were up 1% this quarter. We were up 1% this quarter.

Speaker #4: The other thing that's worth knowing noting is the largest rate increases that we get and every other underwriter gets is on the worst business, sort of by definition.

Speaker #4: Right? Because the market has decided the rates have to go up. So almost by definition, it needs sort of a correction. Here's what I'd say.

Speaker #4: What I would say is the US market from a rate perspective is much is healthier than the UK or Europe. However, across all classes of business, we were up 1% this quarter.

Jeff Radke: However, across all classes of business, we were up 1% this quarter. We were up 1% this quarter. Andrew, again, for everyone listening, I just have to remind everyone how atypical our portfolio is, with 95% of the policies being really, really small. What we're seeing in this cycle is what we've seen in cycles past over the past several decades, i.e., this small business does not suffer or enjoy big rate increases or decreases. I said that backwards, but you know what I mean.

Speaker #4: So we were up 1% this quarter. And Andrew, again, for everyone listening, I just have to remind everyone how atypical our portfolio is. With 95% of the policies being really, really small, what we're seeing in this cycle is what we've seen in cycles past over the past several decades.

Jeff Radke: Andrew, again, for everyone listening, I just have to remind everyone how atypical our portfolio is, with 95% of the policies being really, really small. What we're seeing in this cycle is what we've seen in cycles past over the past several decades, i.e., this small business does not suffer or enjoy big rate increases or decreases. I said that backwards, but you know what I mean.

Speaker #4: I.e., this small business does not suffer or enjoy big rate increases or decreases. I said that backwards, but you know what I mean.

Speaker #9: Yeah. That was super helpful. So do you feel like you're still in the strike zone for that 52-ish? I forget guidance, maybe could see 52 to 53 over the longer haul.

Andrew Kligerman: Yeah, that was super helpful. Do you feel like you're still in the strike zone for that 52-ish? I forget guidance maybe could see 52 to 53 over the longer haul. Do you feel like that strike zone is a good place for-?

Speaker #9: But do you feel like that strike zone is a good place for?

Speaker #4: Andrew, I think we're Andrew, I think we're very comfortable saying that we expect the loss ratio in 2026 to be in the low 50s.

Jeff Radke: Andrew, I think.

Ryan Schiller: Andrew, I think.

Andrew Kligerman: -future?

Jeff Radke: Andrew, I think we're very comfortable saying that we expect the loss ratio in 2026 to be in the low fifties.

Ryan Schiller: Andrew, I think we're very comfortable saying that we expect the loss ratio in 2026 to be in the low fifties.

Andrew Kligerman: longer term, you feel like there's, you know, some sustainability there?

Speaker #9: And longer term, you feel like there's some sustainability there?

Andrew Kligerman: longer term, you feel like there's, you know, some sustainability there?

Speaker #4: Absolutely. Absolutely. For the reasons that I described, which are let's just review them. We're better loss we're better risk selectors because we have better data.

Jeff Radke: Absolutely. Absolutely, for the reasons that I described, which are, and let's just review them. We're better risk selectors because we have better data, and that gets better and better all the time and with every turn of the flywheel. That's the first thing. Second thing, small business tends not to have the same rate movements, so we won't have the pressure in, on average across our classes of business that larger business would show. With the superior data, the better technology, making us and our members better risk selectors and operating in the small business segment, we feel really comfortable about continued loss ratio performance.

Speaker #4: And that gets better and better all the time. And with every turn of the flywheel. That's the first thing. Second thing, small business tends not to have the same rate movements.

Speaker #4: So we won't have the pressure on average across our classes of business that larger business would show. So with the superior data, the better technology, making us and our members better risk selectors, and operating in the small business segment, we feel really comfortable about continued loss ratio performance.

Jeff Radke: With the superior data, the better technology, making us and our members better risk selectors and operating in the small business segment, we feel really comfortable about continued loss ratio performance.

Speaker #9: Very helpful. Thank you.

Andrew Kligerman: Very helpful. Thank you.

Speaker #2: Your next question comes es from the line of Charlie Litterer of BMO Capital Markets.

Operator: Your next question comes from the line of Charlie Litterer of BMO Capital Markets.

Speaker #10: Hey, thanks. Just a follow-up on Rob's question earlier on cash flows. So, you guys have said the last couple of quarters you don't anticipate contributing much capital to your insurance companies going forward.

Charlie Litterer: Hey, thanks. Just to follow up on Rob's question earlier on cash flows. You know, you guys have said the last couple of quarters, you don't anticipate, you know, contributing, you know, much capital to your insurance companies going forward. I guess, you know, we can see in the Form 10-Q that you put in, I think, $59 million into some insurance subs this quarter. Just wondering if you could provide some color around that. Thanks.

Charlie Lederer: Hey, thanks. Just to follow up on Rob's question earlier on cash flows. You know, you guys have said the last couple of quarters, you don't anticipate, you know, contributing, you know, much capital to your insurance companies going forward. I guess, you know, we can see in the Form 10-Q that you put in, I think, $59 million into some insurance subs this quarter. Just wondering if you could provide some color around that. Thanks.

Speaker #10: I guess we can see in the 10-Q that you put in, I think, $59 million into some insurance subs this quarter. Just wondering if you could provide some color around that.

Speaker #10: Thanks.

Jeff Radke: Yeah, that's I think you're referring to my comment, so maybe I should answer it. It's the difference between statutory recognition and GAAP recognition. I was thinking stat, that capital contribution counted for 31 December 2025.

Speaker #4: I think you're referring to my comment. So maybe I should answer it. It's the difference between statutory recognition and gap recognition. I was thinking stat that capital contribution counted for 12/31/25.

Speaker #4: And I probably should have given a more complete answer. But that's the answer. It's timing difference between gap and statutory. Sorry.

Charlie Litterer: Okay.

Charlie Lederer: Okay.

Jeff Radke: a more complete answer, but that's the answer. It's timing difference between GAAP and statutory.

Charlie Litterer: Okay.

Charlie Lederer: Okay.

Jeff Radke: Sorry.

Speaker #10: Thank you.

Charlie Litterer: Thank you.

Charlie Lederer: Thank you.

Speaker #2: With no further questions, that concludes our Q&A session. I'm going to turn the conference back over to Jeff Ratke for closing remarks.

Operator: With no further questions, that concludes our Q&A session. I will now turn the conference back over to Jeff Radke for closing remarks.

Speaker #4: Thanks very much, operator. And thank you all for participating. On our earnings call, we look forward to continuing to execute and speaking to you in a quarter.

Jeff Radke: Thanks very much, operator. Thank you all for participating on our earnings call. We look forward to continuing to execute and speaking to you in a quarter. Thank you.

Speaker #4: Thank you.

Operator: This concludes today's conference call. You may now disconnect.