Accelerant (ARX) Registration Filing summary

Company overview and business model

• Operates a data-driven risk exchange platform connecting specialty insurance underwriters (MGAs) with risk capital partners, including insurers, reinsurers, and institutional investors.

• The platform leverages proprietary technology to reduce inefficiencies, provide high-fidelity data, and streamline the insurance value chain.

• As of March 31, 2025, the platform had 232 Members and 96 risk capital partners, with a 217% CAGR in Exchange Written Premium since inception.

• The business is structured into three segments: Exchange Services (fee-based), MGA Operations (incubation and equity investments in MGAs), and Underwriting (retained risk and reinsurance operations).

• Focuses on low-limit, low-hazard, specialty commercial risks, with a rigorous vetting process for new Members and a selective approach to portfolio construction.

Financial performance and metrics

• Exchange Written Premium for the trailing twelve months ended March 31, 2025 was $3.5 billion.

• Revenues grew 57% from $219M in 2022 to $344M in 2023, and 75% to $603M in 2024; Q1 2025 revenue was $178M, up 39% YoY.

• Net income was $23M for 2024, with Q1 2025 net income of $8M; prior years saw net losses due to investment in growth.

• Adjusted EBITDA for the trailing twelve months ended March 31, 2025 was $128M; positive Adjusted EBITDA in 2024 ($113M) and 2023 ($36M) after a loss in 2022.

• Gross loss ratios were 53% (Q1 2025), 54% (2024), and 51% (2023); Net Revenue Retention was 157% for the trailing twelve months ended March 31, 2025.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used to redeem Class C convertible preference shares (if not converted), pay a management fee to an affiliate of Altamont Capital, and for general corporate purposes, including supporting underwriting capital needs and potential acquisitions.

• No proceeds will be received from shares sold by the Selling Shareholder.

• The company does not currently pay dividends and intends to retain earnings for growth; future dividends are at the board's discretion.