Segment information

6 Months Ended

Jun. 30, 2025

3. Segment information

We have three reportable segments (Exchange Services, MGA Operations, and Underwriting). Each of our reportable segments serves the specific needs of our customers based on the products and services provided and reflects the way our Chief Operating Decision Maker (CODM) assesses performance of the business and makes decisions on the allocation of resources. Our CODM is our Chief Executive Officer.

Exchange Services

Exchange Services, which is the core of Accelerant, captures the revenue and expenses associated with the Risk Exchange. The Risk Exchange is the platform that houses Accelerant technology, data ingestion, and operations that serve the needs of Members and Risk Capital Partners. Insurance companies that join the Risk Exchange pay Accelerant a fixed-percentage volume-based fee for sourcing, managing, and monitoring the business they write. The Risk Exchange pays fees to Members for the distribution services provided to both consolidated affiliates and third parties. We eliminate net fees and other income earned by the Exchange Services segment in consolidation to the extent such income is received from consolidated insurance companies within the Underwriting segment. Only income earned from third-party companies is not eliminated in consolidation.

MGA Operations

MGA Operations consists of our Mission Underwriters ("Mission") and Owned Members reporting units. Mission is a licensed insurance agency that functions as an MGA incubator in the US, UK and EU and represents the largest component of the segment. Mission was previously a consolidated variable interest entity ("VIE") until we acquired all the outstanding common equity interests in Mission on May 1, 2024, at which point it became a wholly-owned subsidiary (and a voting interest entity, or "VOE").

The Owned Members reporting unit comprises MGAs in which the Company has made non-controlling or controlling equity investments. Our investments in existing Members typically take the form of an initial minority stake and contractual call option for a majority stake over time. We eliminate commission income earned by MGA Operations in consolidation to the extent it is received from consolidated insurance companies within the Underwriting segment. Only commission income earned from third-party companies is not eliminated in consolidation.

Underwriting

Underwriting contains all revenue and expenses associated with the underwriting of insurance policies and assumption of reinsurance policies issued or accepted by Accelerant’s consolidated insurance companies and Accelerant Re (Cayman) Ltd. ("Accelerant Re"). Our Underwriting segment is a strategic asset that enables access to Accelerant’s portfolio for current and prospective Risk Capital Partners. The activities of these (re)insurance companies include property and casualty insurance, policy issuance, reinsurance arrangements and the payment of commission and other acquisition costs to the Exchange Services segment.

Premium revenue is earned in exchange for the property and casualty insurance policies issued and reinsurance coverage provided. For segment presentation purposes, the commission expense paid to the wholly-owned agencies is subject to deferral as DAC for the portion of insurance policies not subject to reinsurance. DAC associated with business ceded is offset by ceding commissions received from reinsurers, which is typically more than the DAC. The DAC associated with business retained, as well as the excess ceding commissions from reinsurers, are both amortized over the related policy term. Accelerant Re also cedes premium and losses to, and receives ceding commissions from, several third-party reinsurers, including Flywheel Re. Similar to the Exchange Services and MGA Operations segments, transaction activity with our consolidated affiliates is subject to elimination (and therefore the amount of DAC, deferred ceding commissions, DAC amortization and amortization of ceding commission income in consolidation will differ from that presented within the segment results). Specifically, only commission payments and other acquisition expenses paid to third parties are subject to deferral and amortization in consolidation.

We consider the segment presentations of Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate Accelerant's business and how these business components would be presented if they were stand-alone operations. As we generate additional third-party insurance relationships through our Risk Exchange, the standalone segment results will more closely align with the consolidated results (as such third party transactions would not be subject to elimination).

The following includes the financial results of our three reportable segments for the three and six months ended June 30, 2025 and 2024. Corporate functions and certain other businesses and operations are included in Corporate and Other.

Financial information by segment:


	Three Months Ended June 30, 2025
(in millions)	Exchange Services		MGA Operations		Underwriting		Total Segments		Corporate and Other (1)		Consolidation and elimination adjustments		Total
Revenues
Ceding commission income (2)	$	—	$	—	$	29.6	$	29.6	$	—	$	72.0	$	101.6
Direct commission income
Affiliated entities	69.0		39.0		—		108.0		—		(108.0)		—
Unaffiliated entities	15.6		18.6		—		34.2		—		—		34.2
Net earned premiums	—		—		70.6		70.6		—		—		70.6
Net investment income	1.1		0.9		9.7		11.7		1.1		—		12.8
Net realized gains on investments	—		0.1		0.3		0.4		—		—		0.4
Net unrealized losses on investments	—		(0.5)		—		(0.5)		—		—		(0.5)
Segment revenues	85.7		58.1		110.2		254.0		1.1		(36.0)		219.1
Losses and loss adjustment expenses	—		—		51.3		51.3		—		—		51.3
Amortization of deferred acquisition costs	—		—		27.9		27.9		—		(9.7)		18.2
General and administrative expenses (3) (4)	30.0		33.8		14.8		78.6		16.4		(8.9)		86.1

Adjusted EBITDA	$	55.7	$	24.3	$	16.2	$	96.2	$	(15.3)	$	(17.4)	$	63.5
Interest expenses													(2.5)
Depreciation and amortization													(8.3)
Other expenses (5)													(16.2)
Net foreign exchange losses													(14.2)
Income before income taxes													$	22.3

(1) Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

(2) Ceding commission income of our Underwriting segment includes the effect of sliding scale adjustments based on actual loss experience. For further information on sliding scale commission adjustments, refer to Note 8.

(3) General and administrative expenses is comprised of employee compensation and benefits, consulting and professional fees and all other administrative expenses. The composition of such amounts by each reportable segment was as follows:


(in millions)	Exchange Services		MGA Operations		Underwriting		Total
Employee compensation and benefits	$	19.6	$	23.9	$	6.9	$	50.4
Consulting and professional fees	5.5		5.1		3.1		13.7
Other administrative expenses	4.9		4.8		4.8		14.5
Total general and administrative expenses	$	30.0	$	33.8	$	14.8	$	78.6

(4) The consolidation and elimination adjustments for general and administrative expenses consist of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation, which are offset by adjustments as components of the other consolidation and elimination adjustments.

(5) Other expenses for the three months ended June 30, 2025 consist of $6.1 million of professional costs related to corporate development activities, $3.6 million of system development non-operating costs, $3.0 million of share-based compensation, $4.4 million of Mission profits sharing expense, as offset by a net reduction of $0.9 million of other individually insignificant items.


	Three Months Ended June 30, 2024
(in millions)	Exchange Services		MGA Operations		Underwriting		Total Segments		Corporate and Other (1)		Consolidation and elimination adjustments		Total
Revenues
Ceding commission income (2)	$	—	$	—	$	19.8	$	19.8	$	—	$	39.3	$	59.1
Direct commission income
Affiliated entities	51.4		23.8		—		75.2		—		(75.2)		—
Unaffiliated entities	2.1		8.0		—		10.1		—		—		10.1
Net earned premiums	—		—		52.2		52.2		—		—		52.2
Net investment income	0.2		1.1		7.3		8.6		0.1		—		8.7
Net realized gains on investments	—		—		—		—		—		—		—
Net unrealized gains on investments	—		—		—		—		—		—		—
Segment revenues	53.7		32.9		79.3		165.9		0.1		(35.9)		130.1
Losses and loss adjustment expenses	—		—		43.2		43.2		—		—		43.2
Amortization of deferred acquisition costs	—		—		18.1		18.1		—		(2.0)		16.1
General and administrative expenses (3) (4)	13.4		26.7		23.2		63.3		10.4		(15.9)		57.8

Adjusted EBITDA	$	40.3	$	6.2	$	(5.2)	$	41.3	$	(10.3)	$	(18.0)	$	13.0
Interest expenses													(3.0)
Depreciation and amortization													(5.5)
Other expenses (5)													(9.6)
Net foreign exchange gains													0.8
Loss before income taxes													$	(4.3)

(1) Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.


(in millions)	Exchange Services		MGA Operations		Underwriting		Total
Employee compensation and benefits	$	8.7	$	17.9	$	10.8	$	37.4
Consulting and professional fees	2.3		1.6		1.5		5.4
Other administrative expenses	2.4		7.2		10.9		20.5
Total general and administrative expenses	$	13.4	$	26.7	$	23.2	$	63.3

(5) Other expenses for the three months ended June 30, 2024 consist of $6.6 million of system development non-operating costs,$1.6 million of professional costs related to corporate development activities, $1.6 million of share-based compensation expense, as offset by a net reduction of $0.2 million for expenses related to other individually insignificant costs.


	Six Months Ended June 30, 2025
(in millions)	Exchange Services		MGA Operations		Underwriting		Total Segments		Corporate and Other (1)		Consolidation and elimination adjustments		Total
Revenues
Ceding commission income (2)	$	—	$	—	$	48.8	$	48.8	$	—	$	123.5	$	172.3
Direct commission income
Affiliated entities	128.0		70.5		—		198.5		—		(198.5)		—
Unaffiliated entities	26.8		35.5		—		62.3		—		—		62.3
Net earned premiums	—		—		133.6		133.6		—		—		133.6
Net investment income	1.7		1.8		19.7		23.2		1.8		—		25.0
Net realized gains on investments	—		2.1		0.6		2.7		—		—		2.7
Net unrealized (losses) gains on investments	—		(0.5)		—		(0.5)		1.7		—		1.2
Segment revenues	156.5		109.4		202.7		468.6		3.5		(75.0)		397.1
Losses and loss adjustment expenses	—		—		96.5		96.5		—		—		96.5
Amortization of deferred acquisition costs	—		—		52.7		52.7		—		(17.4)		35.3
General and administrative expenses (3) (4)	53.8		65.0		26.3		145.1		30.9		(17.0)		159.0

Adjusted EBITDA	$	102.7	$	44.4	$	27.2	$	174.3	$	(27.4)	$	(40.6)	$	106.3
Interest expenses													(5.1)
Depreciation and amortization													(15.7)
Other expenses (5)													(30.4)
Net foreign exchange losses													(17.3)

Income before income taxes													$	37.8

(1) Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.


(in millions)	Exchange Services		MGA Operations		Underwriting		Total
Employee compensation and benefits	$	35.5	$	45.2	$	13.1	$	93.8
Consulting and professional fees	9.1		8.4		5.7		23.2
Other administrative expenses	9.2		11.4		7.5		28.1
Total general and administrative expenses	$	53.8	$	65.0	$	26.3	$	145.1

(5) Other expenses for the six months ended June 30, 2025 consist of $8.2 million of system development non-operating expenses, $9.7 million of professional costs related to corporate development activities, $5.4 million of share-based compensation, $6.0 million of Mission profits sharing expense and $1.1 million of individually insignificant costs.


	Six Months Ended June 30, 2024
(in millions)	Exchange Services		MGA Operations		Underwriting		Total Segments		Corporate and Other (1)		Consolidation and elimination adjustments		Total
Revenues
Ceding commission income (2)	$	—	$	—	$	49.6	$	49.6	$	—	$	74.5	$	124.1
Direct commission income
Affiliated entities	87.9		44.3		—		132.2		—		(132.2)		—
Unaffiliated entities	7.1		14.6				21.7						21.7
Net earned premiums	—		—		96.2		96.2		—		—		96.2
Net investment income	0.3		1.8		14.4		16.5		0.1		—		16.6
Net realized gains on investments	—		—		0.4		0.4		—		—		0.4
Net unrealized losses on investments	—		—		(0.8)		(0.8)		—		—		(0.8)
Segment revenues	95.3		60.7		159.8		315.8		0.1		(57.7)		258.2
Losses and loss adjustment expenses	—		—		71.9		71.9		—		—		71.9
Amortization of deferred acquisition costs	—		—		47.3		47.3		—		(8.4)		38.9
General and administrative expenses (3) (4)	27.7		51.4		38.7		117.8		13.9		(24.8)		106.9

Adjusted EBITDA	$	67.6	$	9.3	$	1.9	$	78.8	$	(13.8)	$	(24.5)	$	40.5
Interest expenses													(6.0)
Depreciation and amortization													(10.4)
Other expenses (5)													(18.2)
Net foreign exchange gains													1.8
Income before income taxes													$	7.7

(1) Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.


(in millions)	Exchange Services		MGA Operations		Underwriting		Total
Employee compensation and benefits	$	19.2	$	35.9	$	20.0	$	75.1
Consulting and professional fees	4.3		3.3		7.5		15.1
Other administrative expenses	4.2		12.2		11.2		27.6
Total general and administrative expenses	$	27.7	$	51.4	$	38.7	$	117.8

(5) Other expenses for the six months ended June 30, 2024 consists of $9.3 million of system development non-operating costs, $4.2 million of professional costs related to corporate development activities, $3.8 million of share-based compensation and $0.9 million of individually insignificant costs.

We review our assets on a consolidated basis for decision making purposes since they support business operations across all our reportable segments as well as our corporate and other activities. We do not allocate assets to reportable segments as we do not use such information, except for (re)insurance balances recoverable on paid and unpaid losses and goodwill that are directly attributable to our reportable segments.

All our revenues from external customers were attributable to various geographic locations outside of the Cayman Islands, based on where the insurance policies or services were sold. There were no reportable major customers that accounted for 10% or more of our consolidated revenue for the three and six months ended June 30, 2025 and 2024.

The following table presents our revenues by geography:


	Three Months Ended June 30, 2025
(in millions)	North America		UK and EU		Total
Ceding commission income (1)	$	77.7	$	23.9	$	101.6
Direct commission income	18.3		15.9		34.2
Net earned premiums	26.8		43.8		70.6
Net investment income	7.8		5.0		12.8
Net realized gains on investments	0.2		0.2		0.4
Net unrealized losses on investments	(0.5)		—		(0.5)
Total revenues	$	130.3	$	88.8	$	219.1


	Three Months Ended June 30, 2024
(in millions)	North America		UK and EU		Total
Ceding commission income (1)	$	34.2	$	24.9	$	59.1
Direct commission income	6.3		3.8		10.1
Net earned premiums	40.2		12.0		52.2
Net investment income	4.5		4.2		8.7

Net unrealized losses on investments	(0.1)		0.1		—
Total revenues	$	85.1	$	45.0	$	130.1


	Six Months Ended June 30, 2025
(in millions)	North America		UK and EU		Total
Ceding commission income (1)	$	126.7	$	45.6	$	172.3
Direct commission income	32.3		30.0		62.3
Net earned premiums	41.9		91.7		133.6
Net investment income	15.2		9.8		25.0
Net realized gains on investments	0.4		2.3		2.7
Net unrealized gains on investments	1.2		—		1.2
Total revenues	$	217.7	$	179.4	$	397.1


	Six Months Ended June 30, 2024
(in millions)	North America		UK and EU		Total
Ceding commission income (1)	$	64.4	$	59.7	$	124.1
Direct commission income	11.8		9.9		21.7
Net earned premiums	65.8		30.4		96.2
Net investment income	8.4		8.2		16.6
Net realized gains on investments	—		0.4		0.4
Net unrealized losses on investments	(0.1)		(0.7)		(0.8)
Total revenues	$	150.3	$	107.9	$	258.2

(1) For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the three and six months ended June 30, 2025 and 2024 resulting from the loss experience of covered insurance contracts, refer to Note 8.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Accelerant Holdings 10-Q