# EDGAR Filing Document

**Accession Number:** 0001997350
**File Stem:** 0001193125-25-161013
**Filing Date:** 2025-7
**Character Count:** 2512070
**Document Hash:** 8d1ef84be84d26d164bbf397fcaaed1e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-161013.hdr.sgml**: 20250718

**ACCESSION NUMBER**: 0001193125-25-161013

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 32

**FILED AS OF DATE**: 20250718

**DATE AS OF CHANGE**: 20250718

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Accelerant Holdings
- **CENTRAL INDEX KEY:** 0001997350
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE AGENTS BROKERS & SERVICES [6411]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 981753044
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288435
- **FILM NUMBER:** 251133371

**BUSINESS ADDRESS:**
- **STREET 1:** P.O. BOX 309 UGLAND HOUSE
- **CITY:** GRAND CAYMAN
- **STATE:** E9
- **ZIP:** KY1-1044
- **BUSINESS PHONE:** (302) 658-7581

**MAIL ADDRESS:**
- **STREET 1:** 1209 ORANGE STREET
- **STREET 2:** C/O THE CORPORATION TRUST COMPANY
- **CITY:** WILMINGTON
- **STATE:** DE
- **ZIP:** 19801

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on July 18, 2025.** 

**Registration No. 333-288435** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM S-1** 

**AMENDMENT NO. 2 TO** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## ACCELERANT HOLDINGS
**(Exact Name of Registrant as Specified in its Charter)** 

---

| | | |
|:---|:---|:---|
| **Cayman Islands** | **6411** | **98-1753044** |
| **(State or Other Jurisdiction of Incorporation or Organization)** | **(Primary Standard Industrial Classification Code Number)** | **(I.R.S. Employer<br>Identification Number)** |

---

**Accelerant Holdings** 

**c/o Accelerant Re (Cayman) Ltd.** 

**Unit 106, Windward 3, Regatta Office Park,** 

**West Bay Road, Grand Cayman** 

**+1 (345) 743-4611** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

**The Corporation Trust Company** 

**1209 Orange Street** 

**Wilmington, Delaware 19801** 

**(302) 658-7581** 

**(Name, address, including zip code, and telephone number, including area code, of agent for service)** 

***Copies to:***

---

| | | | |
|:---|:---|:---|:---|
| **Nancy Hasley**<br> **Group General Counsel**<br> **Accelerant Holdings**<br> **P.O. Box 309**<br> **Ugland House, Grand Cayman, KY1-1104 Cayman Islands**<br> **Telephone: +44 (0) 800-048-9809** | **Samir A. Gandhi**<br> **Robert A. Ryan**<br> **Sidley Austin LLP**<br> **787 Seventh Avenue**<br> **New York, New York 10019**<br> **Telephone: (212) 839-5900** | **Suzanne Correy**<br> **Maples and Calder (Cayman) LLP**<br> **P.O. Box 309**<br> **Ugland House, Grand Cayman, KY1-1104 Cayman Islands**<br> **Telephone: (345) 949-8066** | **Thomas Holden**<br> **Rachel D. Phillips**<br> **Ropes & Gray LLP**<br> **1211 Avenue of the Americas**<br> **New York, New York 10036**<br> **Telephone: (212) 596-9000** |

---

**Approximate date of commencement of proposed sale to the public:** 

**As soon as practicable after the effective date of this registration statement.** 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.** 

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##### [**Table of Contents**](#toc)
**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.** 

*PROSPECTUS (Subject to Completion)* 

*Issued July 18, 2025.* 

*28,947,368 Class A Common Shares*![LOGO](g543111g14m98.jpg)

This is the initial public offering of Class A common shares of Accelerant Holdings ("Accelerant"), par value $0.0000011951862 per share. We are offering 20,276,280 Class A common shares to be sold in this offering. The selling shareholders identified in this prospectus, including affiliates of our equity sponsor, are offering 8,671,088 of our Class A common shares. We will not receive any proceeds from the sale of our Class A common shares being sold by the selling shareholders. All shares sold by the selling shareholders in this offering will be converted to Class A common shares upon sale.

Prior to this offering, there has been no public market for our Class A common shares. The initial public offering price is expected to be between $18.00 and $20.00 per Class A common share. Our Class A common shares have been approved for listing, subject to official notice of issuance, on the New York Stock Exchange ("NYSE") under the symbol "ARX."

Following this offering, we will have two classes of authorized common shares. The holders of our Class A common shares offered hereby will be entitled to one vote per Class A common share, and the holders of our Class B common shares will be entitled to ten votes per Class B common share. Certain of our existing equity holders (and their affiliates) will hold all of our issued and outstanding Class B common shares and will have the right pursuant to our amended and restated memorandum and articles of association to convert their Class B common shares into Class A common shares on a one-for-one basis at any time. Additionally, Class B common shares will automatically convert into Class A common shares on a one-for-one basis upon transfer (other than a permitted transfer) of Class B common shares; or upon the earlier of (i) the time Class B common shareholders cease to own 50% of the total number of Class B common shares owned by such holders, in aggregate, immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share.

After giving effect to the sale of the Class A common shares offered hereby, investment funds controlled by our equity sponsor, Altamont Capital Partners ("Altamont Capital"), will own 100,480,382 Class B common shares, representing 79.2% of the combined voting power of our common shares outstanding after this offering (or 77.4% of the voting power if the underwriters' option to purchase additional Class A common shares is exercised in full). As a result, we expect to be a "controlled company" within the meaning of the corporate governance standards of the NYSE. See "Management—Controlled Company Status." Other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to hold voting power greater than 9.9% of the aggregate combined voting power of Accelerant (the "Voting Power Threshold"), and any votes to which any such holder would otherwise be entitled in excess thereof shall be disregarded.

We are an "emerging growth company" as defined under the U.S. federal securities laws, and as such, we have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings.

***Investing in our Class A common shares involves a high degree of risk. See "[Risk Factors](#rom543111_2)" beginning on page 28.***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Price to<br>Public*** |  | ***Underwriting***<br>***Discounts<br>and<br>Commissions<sup>(1)</sup>***  | ***Proceeds to<br>Accelerant*** |  | ***Proceeds to <br>Selling<br>Shareholders*** |  |
|  *Per Share* | | $|  | | $| | $|
|  *Total* | | $|  | | $| | $|

---

(1) See the section titled "Underwriters" for a description of the compensation payable to the
underwriters.

Certain of the selling shareholders have granted the underwriters the option for a period of 30 days to purchase up to an additional 4,342,105 Class A common shares on the same terms as set forth above.

***Neither the Securities and Exchange Commission ("SEC") nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.***

The underwriters expect to deliver the Class A common shares to purchasers on , 2025.

*Morgan Stanley* *Goldman Sachs & Co. LLC* <br> *BMO Capital Markets* *RBC Capital Markets*

---

| | | | | |
|:---|:---|:---|:---|:---|
| *Wells Fargo Securities* | *Piper Sandler*  | *William Blair* | *Raymond James* | *TD Securities* |
|  | *Citizens Capital Markets* | *FT Partners* |  |  |

---

*The date of this prospectus is , 2025.* 

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##### [**Table of Contents**](#toc)
![LOGO](g543111dsp01.jpg)

Our mission To be the preeminent specialty insurance marketplace

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![LOGO](g543111dsp02.jpg)

A bird's eye view of Accelerant $3.5B 96 Exchange Written Premium1 Risk Capital Partners2 232 Operating in 20+ Members 2 Countries 2 (1) For the trailing 12 months ended March 31, 2025 (2) As of March 31, 2025

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![LOGO](g543111dsp03.jpg)

Accelerant

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**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  [PROSPECTUS SUMMARY](#rom543111_1) | 1 |
|  [RISK FACTORS](#rom543111_2) | 28 |
|  [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#rom543111_3) | 76 |
|  [USE OF PROCEEDS](#rom543111_4) | 78 |
|  [DIVIDEND POLICY](#rom543111_5) | 79 |
|  [CAPITALIZATION](#rom543111_6) | 80 |
|  [UNAUDITED PRO FORMA FINANCIAL INFORMATION](#rom543111_7) | 83 |
|  [DILUTION](#rom543111_8) | 89 |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#rom543111_9) | 92 |
|  [FOUNDERS' LETTER](#rom543111_9a) | 156 |
|  [BUSINESS](#rom543111_10) | 158 |
|  [REGULATION](#rom543111_11) | 179 |
|  [PRINCIPAL AND SELLING SHAREHOLDERS](#rom543111_12) | 217 |
|  [CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS](#rom543111_13) | 220 |
|  [MANAGEMENT](#rom543111_14) | 226 |
|  [EXECUTIVE COMPENSATION](#rom543111_15) | 234 |
|  [DESCRIPTION OF CERTAIN INDEBTEDNESS](#rom543111_16) | 245 |
|  [DESCRIPTION OF SHARE CAPITAL](#rom543111_17) | 247 |
|  [MATERIAL DIFFERENCES IN CORPORATE LAW](#rom543111_18) | 252 |
|  [SHARES ELIGIBLE FOR FUTURE SALE](#rom543111_19) | 263 |
|  [CERTAIN MATERIAL TAX CONSIDERATIONS](#rom543111_20) | 266 |
|  [UNDERWRITERS](#rom543111_21) | 281 |
|  [LEGAL MATTERS](#rom543111_22) | 291 |
|  [EXPERTS](#rom543111_23) | 291 |
|  [WHERE YOU CAN FIND MORE INFORMATION](#rom543111_24) | 291 |
|  [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#rom543111_25) | F-1 |

---

Through and including , 2025 (the 25th day after the date of this prospectus), all dealers effecting transactions in our Class A common shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to its unsold allotment or subscription.

None of Accelerant, the selling shareholders, nor any of the underwriters has authorized anyone to provide you with any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. None of Accelerant, the selling shareholders, nor any of the underwriters takes any responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We, the selling shareholders, and the underwriters are offering to sell, and seeking offers to buy, our Class A common shares only in jurisdictions where offers and sales are permitted. The information contained in this prospectus or any free writing prospectus is accurate only as of its date, regardless of its time of delivery or of any sale of our Class A common shares. Our business, financial condition, results of operations, and future growth prospects may have changed since that date.

For investors outside the United States: none of Accelerant, the selling shareholders, nor any of the underwriters has done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of our Class A common shares and the distribution of this prospectus outside the United States.

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**MARKET AND INDUSTRY DATA** 

This prospectus includes estimates derived from market and industry data. Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity and market size, are based on our management's knowledge and experience in the markets in which we operate, together with currently available information obtained from various sources, including publicly available information, industry reports and publications, surveys, our customers, our Members, our capital partners, trade and business organizations, and other contacts in the markets in which we operate. Certain information is based on management estimates, which have been derived from third-party sources, as well as data from our internal research, and are based on certain assumptions that we believe to be reasonable.

In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While we believe the estimated market and industry data included in this prospectus are generally reliable, such information, which is derived in part from management's estimates and beliefs, is inherently uncertain and imprecise, and you are cautioned not to give undue weight to such estimates. Market and industry data are subject to change and may be limited by the availability of raw data, the voluntary nature of the data gathering process and other limitations inherent in any statistical survey of such data. In addition, projections, assumptions, and estimates of the future performance of the markets in which we operate are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Accordingly, you are cautioned not to place undue reliance on such market and industry data or any other such estimates. The content of, or accessibility through, the sources and websites identified herein, except to the extent specifically set forth in this prospectus, does not constitute a portion of this prospectus and is not incorporated herein and any websites are an inactive textual reference only.

**TRADEMARKS, TRADE NAMES AND SERVICE MARKS** 

This prospectus includes trademarks and service marks owned by us. Solely for convenience, trademarks, trade names, and service marks referred to in this prospectus may appear without the <sup>®</sup>, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks, trade names, and service marks. We do not intend our use or display of other parties' trademarks, trade names, or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.

**BASIS OF PRESENTATION** 

Accelerant Holdings LP, a Cayman Islands exempted limited partnership formed in 2018 and our current controlling shareholder, is the ultimate parent company of the Accelerant group of companies. In December 2021, we initiated a series of reorganization transactions pursuant to which our company, Accelerant Holdings, was established and became the primary holding company of the Accelerant group of companies. This reorganization has been accounted for as a transaction between entities under common control and is expected to be completed upon the distribution by Accelerant Holdings LP of 1,986,221 of our existing common shares to holders of limited partnership interests of Accelerant Holdings LP in proportion to the economic interests represented by those limited partnership interests. This distribution will occur immediately prior to the consummation of this offering. The existing common shares will then be re-designated into 74,761,259 Class A common shares and 91,423,836 Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range on the cover page of this prospectus). We refer to this distribution as the Accelerant Holdings LP Distribution. After the consummation of this offering, Accelerant Holdings LP will be dissolved.

Prior to the completion of the Accelerant Holdings LP Distribution, Accelerant Holdings LP is considered to be our predecessor entity under applicable SEC rules and guidance. Accordingly, the consolidated annual

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financial statements of each of Accelerant Holdings and Accelerant Holdings LP are included elsewhere in this prospectus. However, the assets and liabilities and operating results of Accelerant Holdings LP are insignificant in relation to the financial statements of Accelerant Holdings and as such, the financial information referenced within this prospectus, including that presented under "Management's Discussion and Analysis of Financial Condition and Results of Operations," is that of Accelerant Holdings unless otherwise specified.

**SELECTED DEFINED TERMS** 

As used in this prospectus, unless the context indicates or otherwise requires, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Direct Written Premium**: Expressed as a percentage of Exchange Written Premium, the GWP
written directly by Accelerant Underwriting companies, the majority of which we cede to third-party risk capital partners through our reinsurance arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant GWP**: The total GWP written by Accelerant Underwriting companies (both written by our
insurance company and assumed as a reinsurer), the majority of which we cede to third-party risk capital partners through our reinsurance arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Holdings LP Distribution**: Immediately prior to the consummation of this offering, our
predecessor and parent entity, Accelerant Holdings LP, will distribute 1,986,221 of our existing common shares to holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interests represented by
those limited partnership interests. The existing common shares will then be re-designated into 74,761,259 Class A common shares and 91,423,836 Class B common shares (as applicable) immediately following the effectiveness of our amended and
restated memorandum and articles of association, based on the assumed initial public offering price of $19.00 (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus). After the
consummation of this offering, Accelerant Holdings LP will be dissolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Re Cayman**: Accelerant Re (Cayman) Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant-Retained Exchange Premium**: Expressed as a percentage, as Accelerant GWP net of ceded written
premium for the trailing twelve month period, divided by total Exchange Written Premium for the trailing twelve month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Accelerant Underwriting**: Accelerant's owned insurance companies and reinsurance companies, and all
revenue and expenses associated with them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ACP Accelerant Holdings LP**: An entity controlled and beneficially owned by investment funds advised by
an affiliate of Altamont Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Admitted Market**: The insurance market comprising carriers licensed to write business on an
"admitted" basis by the insurance commissioner of the state in which the risk is located. Insurance rates and policy forms in an Admitted Market are highly regulated by each state and coverages are largely uniform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AI**: Artificial Intelligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AIUK**: Accelerant Insurance UK Limited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ANIC**: Accelerant National Insurance Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ASIC**: Accelerant Specialty Insurance Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AUM**: Accelerant Underwriting Managers, the U.S. program management affiliate of Accelerant, which also
acts as a "master" MGU that sub-delegates underwriting authority to Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Board Risk Appetite**: The maximum amount and type of risk that we are willing to take in order to meet
our strategic objectives within an approved framework.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Carrier**: An insurance company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Conversion**: Any conversion of the Class B common shares described in this prospectus will take effect
as a redemption of Class B common shares and issuance of Class A common shares as a matter of Cayman Islands law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **DAC**: Deferred acquisition costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **E&O**: Errors and omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **E&S**: Excess and surplus lines. In this insurance market, carriers are not licensed, except in their
state of domicile, and provide insurance coverage on a "non-admitted" basis. Insurance rates and forms in this market are subject to less-stringent regulation than in the Admitted Market and as such,
E&S carriers offer greater flexibility in terms, conditions, and rates as compared to the Admitted Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exchange Services Take Rate**: Exchange Services direct commission income divided by Exchange Written
Premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exchange Written Premium**: The total gross written premium written through the Risk Exchange, including
both gross written premiums written on behalf of Accelerant Underwriting companies and written on behalf of Risk Exchange Insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **FIO**: Federal Insurance Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Flywheel Re**: Collectively, Flywheel Re Ltd. SPC and Flywheel Holdings Ltd. SPC, a Cayman Islands
holding company that indirectly owns Flywheel Re Ltd. SPC, are an unconsolidated reinsurance sidecar entity, sponsored by Accelerant and through which institutional investors are offered specialty insurance risk and returns that are relatively
uncorrelated with broader financial markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **GAAP**: Accounting Principles Generally Accepted in the U.S.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Gross Loss Ratio**: Expressed as a percentage, gross incurred losses and loss adjustment expense divided
by gross earned premium. Gross loss ratio excludes the impact of premium and loss and loss adjustment expense ceded to reinsurers. Gross loss ratio represents the percentage of gross premium earned during the period that will be required to pay
current and future claims, based on management's best estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **GWP**: Gross written premium, representing the total amount of premium contracted for all policies issued
in a given period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Independent Members**: Members in which Accelerant does not own an interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Independent Premium**: The gross premium written by Independent Members and placed through our Risk
Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **LAE**: Loss adjustment expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Members**: Specialized underwriters, including MGAs, MGUs, and program managers (terms we use
interchangeably) that underwrite insurance premiums on behalf of risk capital partners through our Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **MGA**: Managing general agent; a third-party agent that receives delegated underwriting authority from a
Primary Insurance Company to write insurance risk on its behalf. As used in this prospectus, the term "MGA" refers generically to agents receiving this delegation of underwriting authority, including MGUs, MGAs, and/or program managers and
any Member or other entity in relation to which the term "MGA" is used in this prospectus may not fall within the regulatory definition of a "managing general agent" in the jurisdictions in which it operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **MGU**: Managing general underwriter; a third-party agent that receives delegated underwriting authority
from a Primary Insurance Company to write insurance risk on its behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission Europe**: Mission Holdings Europe Ltd., one of our subsidiaries. On May 1, 2024, we exercised our
call option to acquire, and subsequently contribute all the equity interests of Mission Holdings Europe Ltd. to Mission Worldwide Holdings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission Members**: Specialty underwriters that we incubate through Mission Underwriters and in which we
have an equity ownership interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission Underwriters**: Mission Underwriters provides specialty underwriters with the working capital,
operational support, and balance sheet capacity necessary to operate their own MGAs, in which the specialty underwriters have a majority ownership interest. These MGAs are Members of the Risk Exchange. Mission Underwriters operates in the U.S., UK
and EU through Mission US and Mission Europe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mission US**: Mission Underwriting Holdings, LLC, which is a subsidiary that was initially funded by
equity capital from our controlling shareholder and operated by our management team, and whose equity interests were acquired, by merger, by Accelerant Holdings on May 1, 2024. Prior to May 1, 2024, Mission Underwriting Holdings, LLC was a
consolidated variable interest entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **NAIC**: National Association of Insurance Commissioners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net Revenue Retention**: Expressed as a percentage, the current period's Exchange Written Premium of
Members that were actively writing Exchange Written Premium in the prior period divided by these same Members' prior-period Exchange Written Premium. This measure demonstrates an aggregate measure of the net growth of Exchange Written Premium
from previously onboarded Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Owned Members**: Members in which Accelerant either has a minority equity ownership interest or
controlling equity interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Owned Premium**: The premium produced by Mission Members and Owned Members, who receive commissions for
sourcing and underwriting business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **P&C**: Property and casualty insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Primary Insurance Company**: Carriers who write business on their license and thus are responsible for
insurance policy forms, rate filings, etc. Primary Insurance Companies will often then reinsure the risk they have written to third-party reinsurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Reinsurer**: An insurance company that insures risk written by another insurance company. Reinsurers
generally are not required to be licensed directly in a given jurisdiction to provide such reinsurance coverage; however, absent any such license, reinsurers are limited only to writing such risk in a (secondary) reinsurance capacity and not in a
(primary) direct capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk capital partners**: Third-party insurance companies, reinsurers or institutional investors
that provide capacity through the Risk Exchange, directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk Exchange**: The Accelerant technology, data ingestion, and agency operations that serve the needs of
our Members and risk capital partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk Exchange Insurer**: Third-party Primary Insurance Company deploying underwriting capacity directly
through our Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Third-Party Direct Written Premium**: GWP written directly with Risk Exchange Insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **TPA**: Third-party administrator, providing claims handling and other operational functions related to
administration of insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **U.S.-UK Tax Treaty**: The Convention Between the Government of the United States of America and the
Government of the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital Gains, signed July 24, 2001.

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**PROSPECTUS SUMMARY** 

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our Class A common shares. You should read this entire prospectus carefully, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes thereto included elsewhere in this prospectus, before making an investment decision. Unless the context otherwise requires, the terms "Accelerant," "the Company," "we," "us," and "our" in this prospectus refer to Accelerant Holdings and its consolidated subsidiaries.* 

**Our Vision** 

To become the preeminent specialty insurance marketplace connecting underwriters and risk capital in a transparent and modern way.

**Company Overview** 

We operate a data-driven risk exchange that connects selected specialty insurance underwriters (the "Sellers" on our platform) with risk capital partners (the "Buyers" on our platform). Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

The Accelerant Risk Exchange simplifies the traditional insurance value chain, which is fragmented, costly, and inflexible. Legacy technology, excessive intermediation, and misaligned incentives cause data leakage, high costs, and wasted resources for participants. Our technology powered platform addresses these issues by connecting specialty underwriters, typically MGAs (our "Members"), and risk capital partners, including insurers, reinsurers, and institutional investors (our "risk capital partners"). On the "supply side" of our Risk Exchange, we deliver a full service offering to our Members that includes insights and analytics, distribution management, operational resources, and the commitment of stable underwriting capacity. Our offerings free our Members to focus on growing their businesses through their core expertise of profitable underwriting. On the "demand side" of our Risk Exchange, we offer risk capital partners an attractive, validated, and diversified portfolio of specialty insurance premium that may otherwise be difficult to access elsewhere. Risk capital partners who provide capacity through our Risk Exchange pay us recurring fees to source, manage, and monitor risks on their behalf. The Risk Exchange portfolio's strong returns to date promote confidence from these risk capital partners in the quality of the portfolio's risk exposure, leading to better pricing and faster execution for our Members, which, in turn, empowers our Members to focus on profitable underwriting performance and growth.

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of March 31, 2025, we had 232 Members and 96 risk capital partners on our platform and we have grown Exchange Written Premium at a 217% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

Our Risk Exchange is designed to be simpler, easier, and faster than legacy models for transferring risk. Inaccurate and incomplete underlying policy data plagues the traditional insurance value chain and prevents underwriters from deriving meaningful and actionable information. Our purpose-built Risk Exchange is underpinned by proprietary technology that ingests Member policy data and third-party data from disparate and complex data environments and pools it into a single, digestible dataset with over 21 thousand unique attributes and over 79 million rows of data as of March 31, 2025. This information enables automated portfolio monitoring and delivers actionable insights to underwriters and capital providers across the Risk Exchange, helping us drive lower-than-average loss ratios compared to the broader industry, optimized pricing, and accelerated growth.

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![LOGO](g543111g06g06.jpg)

We believe that our Members' success makes us the destination of choice for the industry's best specialty underwriters. We deliver distribution management and operational, actuarial, regulatory, and stable capital support to our Members, and our holistic offering promotes our Members' growth and better underwriting performance. On average, our Members grow gross premiums written through the Risk Exchange by 52% in their first two years, or at an annual rate of 39% on a weighted-average basis at low-to-mid 50-percentage loss ratios, on average. For the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, our gross loss ratio was 53%, 54% and 51%, respectively. We received an independent third-party Net Promoter Score of 89 (out of 100) from our Members (based on a survey result), which we believe will attract a robust pipeline of potential future Members.

We focus on MGAs with strong underwriting track records and specialty underwriting expertise who predominately underwrite low-limit, low-hazard, specialty commercial risks. We conduct a thorough diligence process when selecting new Members for our Risk Exchange. We carefully construct the Risk Exchange portfolio to maximize diversification and predictability. Our Members had a weighted-average gross written loss ratio of approximately 50% for business written through the Risk Exchange in underwriting year 2024, and the majority of Members' weighted-average gross loss ratios for underwriting year 2024 are within eight points of the weighted average, creating a low-volatility portfolio. Since our inception, we have declined approximately 90% of prospective new Members (representing self-reported premiums of $18 billion in aggregate) that we believe did not fit within our model, reflecting our selective invitation of only the best MGAs to join our Risk Exchange.

Our commitment to selecting the best Members, optimizing Member performance and providing full data transparency has attracted a growing and diverse set of high-quality risk capital partners. We started with two risk capital partners in 2019, growing the number to 28 in 2020, 46 in 2021, 60 in 2022, 66 in 2023, and 96 in 2024. These risk capital partners include insurance and reinsurance companies, as well as institutional investors contributing capital to Flywheel Re, a reinsurance sidecar, who are attracted to the uncorrelated, attractive return profile of the risk that they can access through the Risk Exchange. Reinsurance companies and institutional investors in Flywheel Re access the Risk Exchange by reinsuring business from Accelerant Underwriting. Starting in 2023, five third-party insurance companies joined our platform and began accessing the Risk Exchange directly. In 2024, eight more third-party insurance companies joined, and over time we believe that the majority of our Risk Exchange premium will be written

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by new and existing third-party insurance company partners. The depth and breadth of risk capital partners supports our operational flexibility and our growing Member base. It also allows us to maintain a capital light model.

The Risk Exchange is our fee-based core business. At opposite ends of the Risk Exchange, we operate our MGA Operations and Underwriting segments, further enhancing our value proposition. Our MGA Operations segment includes our MGA incubator, Mission Underwriters, which has supported the formation of 31 MGAs (our "Mission Members"). Mission Underwriters expands our addressable market to include underwriters presently employed by traditional insurance companies looking to form their own MGAs. In addition to Mission Members, the MGA Operations segment also captures the financial contributions of 16 Members in which we own an equity ownership interest (our "Owned Members"). Our selective equity participation allows us to make attractive investments in, and further align with, Members, enabling us to capture some of the value we help create. In nearly every instance (with only two exceptions), the MGAs in which we have invested were already Members at the time of our investment. On average, our investment in a Member has taken place nine months after the MGA became a Member. In total, we own an equity ownership interest, either directly or through Mission, in 47 of our 232 Members, and we expect our Owned Members and Mission Members in aggregate to remain a minority portion of our total Members. For the trailing twelve months ended March 31, 2025, these Members contributed $1.03 billion, in Exchange Written Premium, or 29% of our total Exchange Written Premium for that period.

Our Underwriting segment captures the portion of the Risk Exchange portfolio written by Accelerant Underwriting and the corresponding underwriting profit realized on retained business. We have historically targeted to reinsure 90% of premiums written and reinsured by Accelerant Underwriting through the Risk Exchange to risk capital partners, with Accelerant retaining approximately 10%. We expect this retained portion of Risk Exchange premium in the aggregate to decrease over time. We view our Underwriting segment as a strategic asset and source of operational flexibility that we use to broaden the risk capital pool, align incentives with current and prospective risk capital partners and expedite the onboarding of new Members and the launch of new products.

As of December 31, 2019, we had 12 Members, writing 60 products across seven countries, and two risk capital partners. As of March 31, 2025, we have grown our platform to 232 Members, writing over 500 specialty insurance products across 22 countries, on behalf of 96 risk capital partners. Since the launch of our platform, only one Member has elected to leave the Risk Exchange based on mutual agreement. In all, we have experienced less than a 1% churn rate in the period from inception of the Risk Exchange through March 31, 2025. We have grown total Exchange Written Premium to $3.5 billion for the trailing twelve months ended March 31, 2025, while achieving a gross loss ratio of 53% for the three months ended March 31, 2025, 54% for 2024 and 51% for 2023. We have grown our revenues by 57% from $219 million for the year ended December 31, 2022 to $344 million for the year ended December 31, 2023, by 75% from $344 million for the year ended December 31, 2023 to $603 million for the year ended December 31, 2024, and by 39% from $128 million for the three months ended March 31, 2024 to $178 million for the three months ended March 31, 2025. Our Organic Revenue Growth Rate over the same periods was 57%, 75%, and 38%, respectively. In 2022 and 2023, we incurred net losses of $96 million and $64 million, respectively, reflecting increased investment into our business. For the year ended December 31, 2024, we reported net income of $23 million. We reported net income of $8 million and $2 million for the three months ended March 31, 2025 and 2024, respectively. Our Adjusted EBITDA was $128 million for the trailing twelve months ended March 31, 2025. We generated positive Adjusted EBITDA in 2024 and 2023 of $113 million and $36 million, respectively, which followed Adjusted EBITDA losses of $39 million in 2022. For reconciliations of total revenue to Organic Revenue Growth Rate and net income (loss) to Adjusted EBITDA, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP financial measures."

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![LOGO](g543111g01k10.jpg)

***Our History***

Accelerant was founded in 2018 by three industry veterans with over 100 years of collective experience in the insurance and reinsurance industries. They experienced first-hand the structural inefficiencies and fragmentation of the insurance market. There were too many intermediaries operating across siloed entities, resulting in a lack of customer prioritization and excess costs. Antiquated technology, poor data quality, and insufficient transparency has led to information asymmetries, inaccurate pricing, misaligned incentives, and inconsistent capital availability. Our founders were determined to build a platform to solve these issues. By democratizing data and aligning incentives in a single platform, Accelerant strives to deliver better outcomes for all Risk Exchange participants.

In late 2018, we launched operations in Europe, followed quickly by the formation of our first insurance company in 2019. We believed that controlling our own insurance company would kickstart our marketplace initially and provide our Members with the support and service to empower them to focus on profitably growing their businesses. We established relationships with risk capital partners that valued our disciplined approach to sourcing, managing, and monitoring specialty risk. They indirectly provided capacity through reinsurance to support our Members' growing premium base while we maintained our capital-efficient, distribution-focused business model. Simultaneously, we built portfolio analytics and automated monitoring to augment the quality of the portfolio and the underwriting insights that support it. By the end of 2020, we had expanded our footprint into the United States.

Recognizing the significant opportunity to attract underwriting teams out of traditional insurance companies, where underwriters had limited upside, our affiliates launched Mission Underwriters in 2021. Mission Underwriters, our MGA incubator, provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters seeking to launch their own MGAs. By the end of 2021, there were five Mission Members that wrote $28 million of GWP in 2021 and grew to 31 Mission Members writing $623 million of GWP for the trailing twelve months ended March 31, 2025. With respect to technology, we made significant enhancements in 2021 to our data ingestion engine, allowing us to ingest Member data from disparate and complex data environments and to augment it with third-party data.

In 2022, we formed Flywheel Re, a reinsurance sidecar, to facilitate the participation of institutional investors in the Risk Exchange portfolio, offering them specialty insurance risk and returns that are uncorrelated with broader financial markets. We believe Flywheel Re incorporates a structure that provides multi-year underwriting capacity to support the Risk Exchange platform portfolio as it grows. We expect Flywheel Re's future cash flows and investor returns to be dependent on the loss performance of the underlying portfolio of specialty insurance business the vehicle reinsures and, therefore, relatively uncorrelated with movements or trends in the broader financial markets. While the initial Flywheel Re reinsurance treaty expired in June 2025, we raised additional capital from new and existing institutional investors, extending and upsizing Flywheel Re in June 2025.

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In 2023, we further evolved the Risk Exchange by allowing third-party insurance companies to join and access the Risk Exchange directly, as well as benefit from our profitable, thoughtfully sourced, managed, and monitored specialty risk portfolio. For the trailing twelve months ended March 31, 2025, Risk Exchange Insurers contributed 18% of total Exchange Written Premium, reflecting strong demand for our unique value proposition. If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period.

As part of our strategy to engage with Risk Exchange Insurers, we offer quota share reinsurance contracts to these partners or help them establish reinsurance relationships with other risk capital partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for Risk Exchange Insurers to write and retain an increasing percentage of our Exchange Written Premium and the capital requirements of our enterprise to further decline over time.

**Our Revenue Model** 

We generate revenue through three separate operating segments: Exchange Services, MGA Operations, and Underwriting.

Our Exchange Services segment generates revenue through a fixed-percentage, volume-based fee that our risk capital partners pay to us for sourcing, managing, and monitoring the portfolio of business written by Members.

Our MGA Operations segment includes both Mission Underwriters' consolidated results and those of Owned Members in which we have an equity ownership interest. We generate commission revenue from those Owned and Mission Members that we consolidate and equity income from those Owned Members in which we have a non-controlling equity ownership interest.

Our Underwriting segment captures the net commissions from reinsurers and the net underwriting result from retained business that is written and assumed by Accelerant Underwriting companies.

**Our Market Opportunity** 

We operate within the approximately $2 trillion global P&C insurance market. In Accelerant's core geographies, the United States, Europe, Australia, and Canada, total estimated P&C premiums represented $1.4 trillion in 2022. Today, Accelerant is focused on the specialty P&C insurance market, which includes risks that are either more complex or niche than standard P&C risks and thus require unique underwriting expertise. We estimate that the specialty P&C insurance market represented approximately $252 billion of annual premium in these core geographies in 2022.

Specialty underwriters are the "supply side" of risk in our core market. MGAs are growing underwriting market share given their relative outperformance in innovation and product design. According to Conning, the MGA market in the U.S. alone was estimated to represent over $100 billion of premiums in 2023, having grown by more than 100% from $50 billion in 2018. As the specialty insurance market has continued to mature, MGAs have captured increasingly greater market share in specific underwriting niches because they can better attract top underwriting talent and have flexible, modern technology. Insurance companies that provide coverage to the ultimate insureds, and the institutional investors and reinsurers that provide reinsurance to those insurance companies, serve as the "demand side" of the market. Our Risk Exchange sits in the middle, serving both the "supply-side" and the "demand-side" of this market. We also directly participate on the "supply side" through our MGA Operations segment and on the "demand side" through our Underwriting segment.

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As the industry continues to grow, the specialty insurance market is experiencing multiple structural shifts which we believe will continue to drive opportunities for our Risk Exchange:

***Key "Supply-Side" Drivers:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increasing Number of Specialty Underwriters Looking to Start MGAs:*** Specialty underwriters are
often stifled at traditional insurance companies, burdened by outdated technology and misaligned incentives. They are increasingly looking to join or form new MGAs. This has been reinforced by the broader acknowledgement by market participants and
insurance regulators of the important role that MGAs play in the value chain. Talented underwriters seek entrepreneurial environments with autonomous decision making, better equity upside, and modern technology. The Accelerant solution provides
existing MGAs with flexibility and greater control over their businesses. We deliver distribution management and operational, actuarial, regulatory, and stable capital support. We do this for both established MGAs, as well as underwriters looking to
form new MGAs through Mission Underwriters, which supplies start-up financing, in addition to turnkey, end-to-end technology and operational support. The accelerated formation of new MGAs continues to grow the market opportunity, producing a broader
potential Member base for Accelerant and gives participants on our Risk Exchange access to previously unavailable market niches.  **** ** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increased Need for Specialty Insurance Products:*** A variety of broad-based, fundamental shifts

AI, machine learning, and data analytics. Historically, the required technological and data capabilities could only be assembled within monolithic insurance companies. However, yesterday's mainframe now operates on every underwriter's
smartphone. By breaking down cost barriers, an increasingly distributed technology architecture has paved the way for entrepreneurial underwriters outside traditional insurance companies to introduce new products and processes to the market.

***Key "Demand-Side" Drivers:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Heightened Demand for Low-Volatility Risk:*** Historically,
attractive specialty, small-to-medium-sized enterprise ("SME") insurance risk has been retained by a small number of
Primary Insurance Companies, and therefore, inaccessible to many insurers, reinsurers, and institutional investors. This risk portfolio typically has a lower-volatility loss signature as compared to the P&C industry at large, given the smaller
size and complexity of the insureds' business models. Accelerant makes this otherwise difficult-to-access portfolio of specialty risk available to a broad range of
risk capital partners. Furthermore, we construct our portfolio to have low exposure to natural catastrophe risk. Concerns around changes in climate and challenges with evaluating these risks have driven risk capital partners to search for
lower-volatility risks to insure, such as those written through the Risk Exchange. Risk capital partners consistently identify the diversifying impact of our low-volatility portfolio as a primary driver for
joining the Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Modern Technology Promotes Cost-Effective Access to SME Policies:*** **  Legacy insurance
companies find accessing the SME market to be uneconomical, as their cost-to-service is high relative to premium volumes. Outdated processes result in high expense
ratios that make it uneconomical to service smaller dollar policies, despite the attractive low loss ratios these policies often produce. We historically have a four percentage point general and administrative expense advantage versus our estimate
of the market. Our proprietary technology removes these performance barriers through superior data collection, ingestion, and analytics. Our technology helps underwriters make better-informed underwriting and strategic decisions. Our Risk Exchange
provides cost-effective access to this attractive segment for legacy insurers and reinsurers. We expect this to continue to attract more Risk Exchange Insurers directly onto the platform and increase the portion of the Risk Exchange premiums written
by Risk Exchange Insurers relative to Accelerant-owned insurance companies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Alternative Capital Increasingly Desires Non-Financially Correlated Returns:*** There is growing demand from institutional investors for the type of risk in our portfolio. Institutional investors value the returns associated with underwriting that exhibits a low correlation with financial market
conditions. In addition, the low volatility of the Risk Exchange portfolio further enhances this diversification. Historically, these institutional investors were limited to investing in short-term, narrow property catastrophe-focused opportunities.
Accelerant meets investor demand for opportunities to participate more broadly across the specialty P&C insurance market. Flywheel Re delivers superior diversification in a capital-efficient structure that allows investors to access attractive
returns across a large number of insurance products and across multiple underwriting periods.

**The Accelerant Advantage** 

Accelerant operates a data-driven risk exchange connecting specialty insurance underwriters with risk capital partners. Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

In a market characterized by multiple layers of intermediation, complexity, and ineffective technology and use of data, our competitive advantage is supported by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Data-Driven Insights and Technology:*** The traditional insurance value chain is beset by
inaccurate and incomplete data on underlying policies. Underwriters are unable to derive meaningful and actionable information that supports underwriting performance and risk capital partners lack high confidence in risk exposure and performance.
Based on our Members' experience, we estimate that a small fraction of the policyholder data that is collected at the start of the insurance value chain is typically shared with the end capital provider. We believe this resulting information
asymmetry leads to a market with artificially high prices and depressed volumes. We built Accelerant to solve these problems.

Our proprietary ingestion tools allow us to capture insurance data from disparate and complex data environments. We collect Member exposure data from both structured and unstructured environments and combine it into a single dataset that, as of March 31, 2025, consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from over one thousand unique data mappings. On average, in the first quarter of 2025, we ingested 8.9 million additional rows per month into our growing dataset. This high-fidelity, high-quality data is combined with third-party data and made available to both Members and risk capital partners in an actionable form. We believe that our digital capabilities and workflow tools will lead to better data, better analytics, and reduced effort at scale.

Our proprietary technology allows underwriters to select risks with the benefit of platform-driven insights and for our risk capital partners to gain transparency into the portfolio of risks they are assuming.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Member-Centric Culture:*** Accelerant is organized around its Members, seamlessly providing them
with the services they require to succeed, including distribution management and operational, actuarial, regulatory, and stable capital support. Key to our service model is the assignment of a dedicated expert support team to each Member, including
relationship managers, claims adjusters, actuaries, underwriters, and data scientists. The legacy insurance industry tends to organize around product silos, connecting multiple disjointed nodes across several organizations. This results in a highly
fragmented value chain which introduces high costs, large data loss, and structural fragility. We work with Members to launch new product offerings in approximately 14 weeks, compared to what we believe is the industry standard of six to 12 months.
We provide our Members with a dedicated team of experts, which includes underwriting and data managers, alongside regular consultations to drive performance enhancement. We

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have protocols in place to ensure that we do not compete with our Members. Such protocols center around bespoke product uniqueness for each Member, transparency of Member competition and non-favoritism, and channel definition. This creates a dynamic that further differentiates us from the legacy market. There may be potential Members that are less interested in becoming a Member because of our investment in other Members that are perceived to be competitors, but based on our experience, we believe the likelihood of this is low. Our Member-centric culture and the breadth of our capabilities allow us to attract and retain what we believe to be the industry's best underwriters in their respective specialties. <br>

We provide Members with long-term capital and operational support so that they can plan for the longer term and focus on their core businesses. We believe taking a longer-term view promotes faster, more profitable and more durable growth for Members. In exchange for a five-year capacity commitment from us, our Members provide us with exclusivity agreements on a rolling, five-year basis. We provide Members with data and analytics, portfolio management, assistance with product expansion, and widening distribution networks. Our commitment to supporting our Members' growth is evidenced by our Net Revenue Retention of 157% for the trailing twelve months ended March 31, 2025 and third-party generated NPS score of 89 in 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Disciplined Approach to Sourcing, Managing, and Monitoring Risk:*** Our methodology of carefully
sourcing, managing, and monitoring risk enables us to develop our portfolio of specialty risk. We source prospective new Members through our industry network and market referrals and make selections based on their loss ratio track records. Our
current focus is predominantly on commercial, low-limit SME lines of business. Our existing portfolio of products consists of commercial combined, property owners and professional indemnity products together
with other coverage products. Each of our Members typically specializes in a particular commercial niche (e.g., Pacific Northwestern bowling alleys or Norwegian cold storage facilities). We and they aim to provide the full suite of insurance
products the SME owner would need or seek to obtain in each niche. We take a disciplined approach to managing and monitoring risk in collaboration with Members that combines our data insights with advice from insurance industry veterans. We meet
with each Member monthly to review their portfolio performance, and our technology stack enables us to derive data-driven insights that uncover hidden opportunities and potential vulnerabilities in a Member's portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Diverse, High-Quality Risk Capital Partners:*** Maintaining long-term relationships with our risk
capital partners is a key component of our business and revenue model. Whether they participate on the Risk Exchange directly or through reinsurance, we have partnered with a broad group of high-quality risk capital partners who are attracted to the
Risk Exchange by the portfolio's consistent and profitable underwriting performance. We have grown the number of risk capital partners on our platform from two in 2019 to 28 in 2020 to 96 as of March 31, 2025. Our existing risk capital
partners include blue chip insurance and reinsurance companies with substantial balance sheets that have the capacity to support the pace of our growth and could singularly support our entire portfolio today. Continued strong demand from risk
capital is an important contributing factor to our robust Member pipeline. Additionally, we intend to continue to increase the portion of the Risk Exchange premiums written directly and retained by Risk Exchange Insurers and reduce the portion
written by Accelerant Underwriting, which will shift even more of our revenue model to being fee-based.

**Our Growth Strategy** 

Since inception, we have grown Exchange Written Premium at a 217% compounded annual growth rate. We believe we will continue to maintain strong revenue growth based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Growing Existing Members' Businesses*:** Our Members are the key to our success –
when they succeed, we succeed. We believe our existing Members will continue to expand as they capture greater market share, introduce new products, and enter new regions. Accelerant's exclusivity arrangements

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and rights of first refusal on new product launches promote new product growth on the Risk Exchange. Accelerant's long-term five-year capacity commitment allows our Members to plan for the future with confidence, focusing on new opportunities, rather than sourcing underwriting capacity. These factors have led to our Members growing premiums written on the Risk Exchange by over 39% annually on a weighted-average basis. Additionally, not all products written by our Members are written through the Risk Exchange. In 2023, in Europe and the U.S., approximately 59% and 58%, respectively, of Members used both the Risk Exchange and other third-party capital providers to secure their capacity. We believe this presents a significant opportunity for the Risk Exchange to increase its wallet share and capture even more of those Members' premiums. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Attracting New Members:*** Adding new Members to our platform has been a significant source of
growth historically, and we expect this to continue in the future. We began with three Members in 2018 and had 232 as of March 31, 2025. Our expert client-facing service model, proprietary technology offering, and long-term capacity attract
prospective Members to our Risk Exchange. We had over 300 additional MGAs in our evaluation pipeline as of March 31, 2025, which collectively reported $2.5 billion in annual premiums. We expect our comprehensive diligence process when
selecting members as well as our growing Member base and increasingly diversified portfolio to drive further interest from additional risk capital partners and, in turn, reinforce the Risk Exchange's value proposition to existing and
prospective Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding Our Product Portfolio:*** Our portfolio is focused on low-volatility, low-severity SME commercial risks. This market segment within our focal lines of business and geographies is large, estimated at $117 billion of
premium for 2022, giving us considerable room to expand. We intend to prudently expand into selected additional lines of business, bringing our estimated serviceable market to $252 billion. As we continue to scale, we believe there are
specialty underwriters that excel in larger-market commercial, commercial auto, workers' compensation, and specialty personal lines whom we can attract to our Risk Exchange while maintaining the same high-quality portfolio. We will always
endeavor to attract the highest quality underwriting talent to our Member base, notwithstanding the niche or line of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Geographic Expansion:*** As of March 31, 2025, 40% of our total Members were in Europe,
including the UK, 50% in the U.S., and 10% in Canada. We intend to grow with our existing product portfolio by adding additional countries to our operation. Our geographic expansions to date have been successful and we believe our operating
footprint and globally integrated technology platform position us well to capitalize on opportunities in new countries. In the near-term, we believe that Australia and continued expansion in Canada represent attractive growth opportunities given
their combination of high MGA penetration and similar structural challenges present in their legacy insurance marketplaces. We are always evaluating other global expansion opportunities as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding to New Member Types*:** To date, our Members have been MGAs primarily focused on
specialty insurance. We have been successful in addressing these clients' needs, and we believe there are other sizable Member types which have similar structural challenges that would benefit from a relationship with us. In particular, captive
insurance companies constitute a $176 billion global market and face similar challenges as our existing specialty Members. Captives represent entities engaged in self-insurance, either standalone (e.g., single business) or as a group of related
insureds forming a jointly owned insurance vehicle. Captives have identified inflexible and unreliable insurers, poor data transparency, high expenses, and slow response times as key challenges to their operations – each of which our platform
could address. From our perspective, the aligned incentives inherent in the captive model result in more attractive risk than other markets. As of March 31, 2025, we had nine Members engaging in captive business.

Along with the opportunity to provide retail brokers access to the suite of products offered by our Members, we believe we can expand our existing partnerships with retail P&C insurance brokers that have specific areas of expertise and could enhance their economics by establishing a joint venture MGA with Accelerant. Our Mission Underwriters business will help facilitate this venture, which will begin with the establishment of a new MGA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Deepening and Broadening Relationships with Risk Capital Partners:*** We have diverse, stable, and
high-quality risk capital relationships, including 13 Risk Exchange Insurers operating directly on the Risk Exchange, 79 third-party reinsurance companies, and four institutional investors contributing capital to Flywheel Re as of March 31,
2025. Our existing risk capital partners maintain substantial balance sheets and have the capacity to support our current and anticipated future growth. While we do not need to add any other risk capital partners to keep pace with our growth, we
expect to continue to expand the number of risk capital partnerships in response to the growing demand for our value proposition, which will drive increased competition for low-volatility, low-severity risk, providing enhanced terms and more
favorable economics for the Risk Exchange. Writing more premium directly with Risk Exchange Insurers will shift even more of our revenue model to being fee-based.

**Our Technology and Data Platform** 

Our proprietary, purpose-built technology and data platform is a critical part of executing our vision for the Risk Exchange, which is to provide greater transparency and shared information across the entire value chain.

Underpinning the Risk Exchange's value proposition for our Members, are our data and technology capabilities that we believe are unmatched in the industry. We ingest and combine data from a variety of sources (e.g., policy and claims systems), augment it with third-party data, and analyze that information for the benefit of all Risk Exchange participants. Accelerant captures all available data on risk exposures and claims – we do not have to leave data behind because of technological limitations. By ingesting structured and unstructured data, we can preserve data that is often lost across the insurance value chain. As of March 31, 2025, our dataset consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from one thousand unique data mappings, and we have ingested an average of 8.9 million additional rows per month in 2025. Once ingested, data is validated, transformed, and governed into robust and tailored underwriting intelligence that is available to Members and risk capital partners alike. As a result, our Risk Exchange lessens information asymmetries, enabling trust between Buyers and Sellers on our platform.

Our Members and risk capital partners derive significant value from our data and analytics platform and their specific needs and usage patterns continuously evolve. We seek to regularly enhance the delivery and functionality of our data and analytical capabilities utilizing workflow tools and our cloud-native, digital platform that offers Risk Exchange participants a single, secure place to operate. Examples of our data and analytics advantage include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Accelerant Risk Indexing:** We generate a proprietary risk score on individual risks to improve selection
and pricing for select Members today. By introducing third-party data in the form of distance to the nearest pub and area crime incidents, we helped a Member improve their gross loss ratio by 5.3% when back testing the Member's data, which is a
significant improvement to the underwriting profit for our risk capital partners. We expect to compound these data-driven inputs continuously to make our portfolio stronger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **Claims Recovery Model:** We employ a large language model ("LLM") to analyze our
Accelerant-sanitized data and help identify the claims with the highest likelihood for subrogation (i.e., recovery) in the United Kingdom. Thus far, we have improved our subrogation rate from 0.5% of claims to approximately 2% of claims, leading to
an estimated 1% improvement in gross loss ratio, assuming a portfolio gross loss ratio of 50%, which is a significant improvement for our risk capital partners. As our model continues to develop and train, we aim to further reduce subrogation rates
and derive other actionable insights.

We have assembled a team of over 150 highly skilled engineers, data scientists, product managers and designers whose collective expertise spans a broad range of technical areas. As of March 31, 2025, these team

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members represented 32% of the Accelerant workforce. We continue to make significant investments in the development of our data, analytics, and AI.

**Our Operating Segments** 

We operate our business across three operating segments – Exchange Services, which is the core offering of Accelerant, MGA Operations, and Underwriting.

***Exchange Services***

The Exchange Services segment is our core business, our Risk Exchange – the Accelerant technology, data ingestion, and agency operations that serve the needs of our Members and risk capital partners. We derive revenue in this segment from contractually fixed fees based on premium volume, paid by risk capital partners for sourcing, monitoring, and managing their risk portfolios.

***MGA Operations***

Our MGA Operations segment captures the economics of both Mission Members and Owned Members in which Accelerant has a minority equity ownership interest, reflecting such earnings as equity method income, or in which Accelerant has a controlling stake, reflecting such earnings fully within our consolidated results. Mission Underwriters represents the largest component of this segment. Mission Underwriters provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters looking to launch their own MGAs. We own the majority of every MGA that Mission Underwriters helps to create, with meaningful equity shared with management teams based on the performance of their MGA. Mission Underwriters allows Accelerant to directly capitalize on the industry trend of specialized underwriting talent leaving traditional insurance companies to start their own independent platforms. Mission Underwriters expands our addressable market. MGA Operations also provides us with the opportunity to make attractive, long-term investments in existing Members, driving alignment of interest, as well as enabling Accelerant to participate in the value the Risk Exchange creates for MGAs.

***Underwriting***

Our Underwriting segment contains all revenue and expenses associated with Accelerant Underwriting. We view our owned insurers and reinsurer as strategic assets and sources of operating flexibility. As we began operations, our owned insurance companies promoted alignment with our risk capital partners by demonstrating our steadfast focus on sourcing the most attractive specialty risk. Our reinsurer and institutional investor risk capital partners access premium on the Risk Exchange through reinsurance from Accelerant Underwriting and from the quota share arrangements Accelerant Re Cayman writes with our Risk Exchange Insurers. For the trailing twelve months ended March 31, 2025, 92% of premiums written by Accelerant Underwriting were ultimately reinsured to third-party risk capital partners. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

**Our Members *("Supply Side" of our Risk Exchange)*** 

Our Members are experienced specialty underwriters that produce attractive loss ratios. The Members with whom we partner are typically MGAs with $10 to $40 million in premium, a headcount of 15 to 30 employees, and an average tenure of 15 years, operating independently of insurance companies, with delegated authority to underwrite risk on an insurance company's behalf. We select Members that have an impressive track record of underwriting low-volatility, low-limit, low-hazard risks. The quality of the portfolio written by our Members is highlighted by our gross loss ratio of 53%, 54%, and 51% for the three months ended March 31, 2025 and the

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years ended December 31, 2024 and 2023, respectively. Through our rigorous vetting process, we review prospective Members across a range of areas including underwriting, actuarial, compliance, claims, technology, and key talent. Typical criteria we use in screening for new prospective Members include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3-to-5-year underwriting track record, either as a standalone MGA or as part of larger organization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Predominantly commercial, low-limit SME risk focus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Underwriter-led culture with focus on maintaining profitable business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Typical annual premium volumes of $3 million to $100 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Robust data capture capabilities that can be shared with our Risk Exchange

Our Members typically service small-and-medium-sized businesses, or SMEs, that have annual revenues of $50 million or less, and have one or more risk characteristics that require specialty insurance products. Such risk characteristics may include, for example, the insured's industry or profession, the location of property exposure, the construction or occupancy type, or the historical claims activity of the aggregate insured business. Our existing portfolio of products consists mostly of commercial combined, property owners and professional indemnity products together with other coverage products. Each of our Members typically specializes in a particular commercial niche (e.g., Pacific Northwestern bowling alleys or Norwegian cold storage facilities). We and they aim to provide the full suite of insurance products the SME owner would need or seek to obtain in each niche. These products are sold in the domicile or state where the insured is based. In the U.S., the specialty insurance products typically, but not always, are written on an E&S basis and regulated by various states' Departments of Insurance.

Our commitment to our Members and the quality of the Risk Exchange portfolio continues long after a Member is onboarded. Ongoing monitoring through data, frequent expert reviews and audits enables our Members to not only quickly act on growth and business opportunities, but also enables us to identify any areas of deterioration in real time and immediately put in place risk mitigation and/or remediation actions to maintain low loss ratios.

Our Members' weighted average annual growth rate of premiums written on the Risk Exchange of 39% per year, which includes both growth of existing products on our platform and our Members launching new products on our platform, underscores the accelerating growth of Members when they work with Accelerant.

![LOGO](g543111g03g03.jpg)

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Our Member base is highly diversified across both geographic regions and the products and classes of business they write. Our largest member accounted for 8% of our Exchange Written Premium for the trailing twelve months ended March 31, 2025.

The following Member information is as of March 31, 2025, and the following premium information is for the trailing twelve months ended March 31, 2025:

![LOGO](g543111g03k12.jpg)

(1) Excludes Mission Members.

**Our Risk Capital Partners *("Demand Side" of our Risk Exchange)*** 

Premium generated from Members is centrally managed by our Risk Exchange and placed with a diverse stable of high-quality risk capital partners or Accelerant Underwriting. Our risk capital partners include 13 Risk Exchange insurance companies, 79 third-party reinsurers, and four institutional investors contributing capital to Flywheel Re as of March 31, 2025.

The majority of the Risk Exchange's business that is placed with our reinsurers and institutional investor partners is written directly by Accelerant-owned insurance companies within the U.S., Canada and Europe. The risk is then reinsured, save for a small retention, to Accelerant Re Cayman, our Cayman-incorporated reinsurance company. Reinsurers and institutional investors access the business pooled at Accelerant Re Cayman via quota share, excess of loss, and stop-loss reinsurance arrangements. In 2022, capital from institutional investors was raised to establish Flywheel Re and support business assumed by Flywheel Re during a multi-year risk period ending in June 2025. Additional capital was raised from institutional investors in June 2025 to support business assumed by Flywheel Re during a multi-year risk period scheduled to end in March 2028. Flywheel Re is a special purpose reinsurance entity that participates in the Risk Exchange portfolio on a multi-year basis. We expect Flywheel Re to become a larger part of our risk capital offering as this source of risk capital adds diversification, predictability, and stability to the "demand side" of our platform. The participation of institutional investors and reinsurers also diversifies our sources of risk capital and introduces competitive tension that regulates the cost of capital. Our reinsurer and institutional investor risk capital partners comprise highly rated, third-party reinsurers, the significant majority holding an "A-" or better rating from A.M. Best or

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acting on a collateralized basis, and are sufficiently capitalized to support our planned growth over the years, subject to their appetite. Our largest reinsurance relationship represented 14% of Exchange Written Premium for the three months ended March 31, 2025.

The balance of the Risk Exchange's business is written by third-party insurance companies, in which we do not have an equity stake or any form of ownership and which access the Risk Exchange directly and authorize Accelerant agencies and brokers to source, manage, and monitor the risk. Risk Exchange Insurers that join the Accelerant Risk Exchange can select the business they write based on product and geography. We actively manage the portfolios of the Risk Exchange Insurers to ensure both their own portfolios and those across the platform remain well-balanced from a relative volatility and expected profit perspective. Through March 31, 2025, 13 third-party insurance companies have directly joined the Risk Exchange and contributed 19%, 16%, and 10% of Exchange Written Premium for the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, respectively.

If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period with the balance contributed by Accelerant Underwriting. As part of our strategy to engage with risk capital partners, we offer quota share reinsurance contracts to these partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for premiums written and retained by Risk Exchange Insurers to represent a significant portion of the overall Exchange Written Premiums over the next several years and the capital requirements of our enterprise to decline.

For the trailing twelve months ended March 31, 2025, our Exchange Premium written by risk capital type was as follows:

![LOGO](g543111g00p05.jpg)

Risk Exchange Insurers may seek our help in securing reinsurance capacity given the breadth of our relationships. In these instances, we can help them establish reinsurance relationships with other risk capital partners as well as reinsure an agreed-upon portion of premium at Accelerant Underwriting.

We maintain a capital-efficient Underwriting segment, with 92% of premium written by Accelerant Underwriting during the trailing twelve months ended March 31, 2025 reinsured to risk capital partners via quota share and excess of loss arrangements. Third-party reinsurers and institutional investors reinsured 69% and 23% of Accelerant GWP, respectively, during the trailing twelve months ended March 31, 2025. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

To bolster the risk profile of the Risk Exchange portfolio, we buy inuring excess of loss protection from third-party reinsurers to mitigate the impact of significant loss events. We secure this as additional volatility protection across the entire portfolio, enhancing the value and predictability of our portfolio to risk capital partners.

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**Recent Developments** 

As of June 30, 2025 we have 248 Members as compared to 186 Members as of June 30, 2024 (and 232 Members as of March 31, 2025).

The following information represents preliminary financial data constituting an estimated range of Exchange Written Premium and Adjusted EBITDA for the six months ended June 30, 2025 compared to actual Exchange Written Premium and Adjusted EBITDA for the corresponding period of the prior fiscal year. The preliminary financial data included in this prospectus has been prepared by, and is the responsibility of, Accelerant Holdings' management.

PricewaterhouseCoopers LLP, our independent registered public accounting firm, has not audited, reviewed, examined, compiled, nor applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto. The preliminary financial data is based on the information available to us as of the date of this prospectus. The preliminary estimates may differ from the final reported actual results following the completion of our formal financial statement closing processes and procedures.

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| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025<br>(Estimated)** | **2025<br>(Estimated)** | **2024<br>(Actual)** |
|  | **Low** | **High** | |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
|  Exchange Written Premium | $2046 | $2057 | $1340.6 |
|  Adjusted EBITDA | $100 | $105 | $40.5 |

---

For the six months ended June 30, 2025, we expect our Exchange Written Premium to be within the range of $2.05 billion to $2.06 billion, as compared to Exchange Written Premium of $1.34 billion for the six months ended June 30, 2024, which would be an increase of 53% at the midpoint of the estimate. The expected increase is due to the aforementioned growth in our total Member count, as well as growth in the business generated from existing Members during the six months ended June 30, 2025.

For the six months ended June 30, 2025, we expect Adjusted EBITDA to be within the range of $100 million to $105 million, as compared to Adjusted EBITDA of $41 million for the six months ended June 30, 2024, which would be an increase of 153% at the midpoint of the estimate. The expected increase is primarily due to growth in the Exchange Services and MGA Operations reporting segments driven by the aforementioned growth in Exchange Written Premium and Members.

*Non-GAAP Measures* 

Adjusted EBITDA is a non-GAAP measure that should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with GAAP. For our definition of Adjusted EBITDA and information about how and why we use this non-GAAP measure, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP financial measures— Adjusted EBITDA and Adjusted Net Income (Loss)."

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The following table provides a reconciliation of our preliminary estimates of net income to our preliminary estimates of Adjusted EBITDA for the six months ended June 30, 2025, and reconciles actual net income to (loss) actual Adjusted EBITDA for the six months ended June 30, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025<br>(Estimated)** | **2025<br>(Estimated)** | **2024**<br>**(Actual)** |
|  | **Low** | **High** | |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
|  Net income (loss) | $10 | $20 | $(7.1) |
|  Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 36 | 36 | 18.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of adjustments to net income (loss) | (5) | (5) | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Adjusted net income**  | **41** | **51** | **8.3** |
|  Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back tax effect of adjustments to income (loss)  | 5 | 5 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense . . . . . . . . . . . | 19 | 20 | 14.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses . . . . . . . . . . . | 5 | 5 | 6.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization  | 16 | 16 | 10.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 14 | 8 | (1.8) |
|  **Adjusted EBITDA** | $**100** | $**105** | $**40.5** |

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**Summary of Risks Associated with Our Business** 

An investment in our Class A common shares involves numerous risks described in "Risk Factors" and elsewhere in this prospectus. You should carefully consider these risks before making a decision to invest in our Class A common shares. Key risks include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Risk Exchange has a limited operating history, which makes it difficult to evaluate its prospects,
potential for expansion to new Members and product offerings as well as the future prospects of our overall business. Any expansion efforts that are unsuccessful may materially adversely affect our business, results of operations, financial
condition and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have generated net losses in the past and may incur losses in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decline in our financial strength rating may adversely affect the volume of business we can write;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain Members may choose to leave our Risk Exchange after their contractual commitments have expired, which
would adversely affect our results of operations and our ability to offer attractive risk opportunities to our risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to continue enhancing our technology-based solutions at a pace that allows us to remain
attractive to our Members, or continue to gain internal efficiencies and effective internal controls that promote the utility of the analytics we provide to Members, our operating results, client relationships and growth could be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our Members do not provide the data they are contractually obligated to provide or the data provided by our
Members is inaccurate or incomplete, our Risk Exchange and participating risk capital partners may be unable to accurately price the risk transferred through our Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our Members do not maintain consistency in the level of skill and expertise they demonstrate, or adhere to
the underwriting guidelines of our Risk Exchange, our Members may experience higher loss ratios and our reputation and relationships with insurance carriers, reinsurers, other Members, other risk capital partners, and brokers could be harmed;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have expanded rapidly in recent years, and we may not be able to continue to attract risk capital partners
at the same rate or of the same quality to facilitate similar growth in the future or continue maintaining a capital-efficient model;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial condition and results of operations could be materially adversely affected if we do not
accurately assess the underwriting risk we retain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to purchase third-party reinsurance in amounts we desire on commercially acceptable terms or
on terms that adequately protect us, and may not have sufficient third-party reinsurance coverage provided by risk capital partners accessing our Risk Exchange, in each case, and this potential inability may cause us to retain more risk than we
expect or have forecast, which may materially and adversely affect our business, results of operations and financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have experienced rapid growth in recent years, and our recent growth rates may not be indicative of our
future growth. As our costs increase, we may not be able to generate sufficient revenue to achieve, and if achieved, maintain, profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to economic and reputational harm if companies with which we do business (including our Members
and our risk capital partners) engage in negligent, grossly negligent, misleading or fraudulent behavior and damage to our reputation could have a material adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to leverage our information systems to enhance the information benefits available to our
Members and risk capital partners through our Risk Exchange, our results may be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future success depends on our ability to continue to develop and implement technology, and to maintain the
confidentiality of this technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our businesses are subject to governmental regulation, changes in which could reduce our profitability, limit
our growth, or increase competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as we continue to grow our Member base, we anticipate expanding into new geographies that could give rise to
additional regulatory, risk and other issues, which may materially affect our business, results of operations, financial condition and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• while we were not a passive foreign investment company ("PFIC") in 2024 and do not expect to be a
PFIC in 2025 or in future years, U.S. persons who own our Class A common shares may be subject to adverse tax consequences if Accelerant is considered a PFIC for U.S. federal income tax purposes in any year in which they acquire or hold shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other factors discussed under "Risk Factors" beginning on page 28.

**Implications of Being an Emerging Growth Company** 

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2021 (the "JOBS Act"). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These reduced requirements include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are only required to have two years of audited financial statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from the requirement that critical audit matters be discussed in our independent auditor's
reports on our audited financial statements or any other requirements that may be adopted by the Public Company Accounting Oversight Board (the "PCAOB") unless the SEC determines that the application of such requirements to emerging growth
companies is in the public interest;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act of 2002 (the
"Sarbanes-Oxley Act") requiring that our independent registered public accounting firm provide an attestation report on the effectiveness of our internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from the "say on pay" and "say on frequency" advisory vote requirements of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are exempt from certain disclosure requirements relating to compensation of our executive officers and are
permitted to omit the detailed compensation discussion and analysis from proxy statements and reports filed under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

We may take advantage of these reduced requirements until the last day of our fiscal year following the fifth anniversary of the completion of this offering or such earlier time that we are no longer an emerging growth company. We will remain an emerging growth company until the earliest to occur of (i) the last day of the fiscal year in which we have more than $1.235 billion in annual revenue; (ii) the date we qualify as a "large accelerated filer," with at least $700 million of equity securities held by non-affiliates; (iii) the date on which we have issued, in any three-year period, more than $1.0 billion in non-convertible debt securities; and (iv) the last day of the fiscal year ending after the fifth anniversary of the completion of this offering.

Further, pursuant to Section 107 of the JOBS Act, as an emerging growth company, we have elected to take advantage of the extended transition period for complying with new or revised accounting standards until those standards would otherwise apply to private companies. As a result, our operating results and financial statements may not be comparable to the operating results and financial statements of other companies who have adopted any new or revised accounting standards before us.

For risks related to our status as an emerging growth company, see "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Shares—We are an "emerging growth company" and we expect to elect to comply with reduced public company reporting requirements, which could make our Class A common shares less attractive to investors."

**Our Equity Sponsor** 

**Altamont Capital** 

Altamont Capital is a private equity firm with over $4 billion of capital under management, focused primarily on making long-term, control investments in middle-market businesses. ACP Accelerant Holdings LP, ACP Accelerant Investment Holding Company, Ltd., ACP Accelerant Investment Holding Company II, Ltd. and ACP Accelerant Co-Invest, LLC are entities that are controlled and beneficially owned by investment funds advised by an affiliate of Altamont Capital, and are selling shareholders in this offering.

**Corporate Information** 

Accelerant Holdings was incorporated in the Cayman Islands in October 2021 with registered number 381680. Our corporate headquarters is located at Accelerant Holdings, c/o Accelerant Re (Cayman) Ltd., Unit 106, Windward 3, Regatta Office Park, West Bay Road, Grand Cayman. Our telephone number is +1 (345) 743-4611.

Our principal website address is www.accelerant.ai. The information contained on, or that can be accessed through, our website is deemed not to be incorporated in this prospectus or to be part of this prospectus. You should not consider information contained on our website to be part of this prospectus in deciding whether to purchase our Class A common shares.

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**Corporate Structure** 

The following organizational chart summarizes the ownership percentage of each of Altamont Capital and its affiliates, existing significant shareholders, management, and expected new public shareholders, immediately following the offering, expressed as a percentage of each of voting and economic interests. Holders of the Class A common shares and the Class B common shares are each entitled to certain rights. See "Description of Share Capital—Class A Common Shares and—Class B Common Shares."

The organizational chart also depicts a simplified structure of the Company, which we consider to include our key operating subsidiaries. The organizational chart is provided for illustrative purposes only and does not purport to represent all legal entities affiliated with, or all subsidiaries of, the Company or the actual legal structure of the Company.

![LOGO](g543111g01a25.jpg)

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**The Offering** 

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| | |
|:---|:---|
|  Class A common shares offered by us | 20,276,280 Class A common shares. |
|  Class A common shares offered by the selling shareholders | <br>8,671,088 Class A common shares (13,013,193 Class A common shares if the underwriters' option to purchase additional Class A common shares is exercised in full). Following the re-designation of existing common shares and the Accelerant Holdings LP Distribution, our selling shareholders will receive Class B common shares. All shares sold by the selling shareholders in this offering will be converted to Class A common shares upon sale. |
|  Class A common shares to be outstanding after this offering | <br>101,143,134 Class A common shares (or 105,485,239 Class A common shares if the underwriters' option to purchase additional Class A common shares is exercised in full), based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus); or 219,986,563 Class A common shares (if each outstanding Class B common share were converted into one Class A common share). |
|  Underwriters' option to purchase additional Class A common shares | <br>The underwriters have an option to purchase up to 4,342,105 additional Class A common shares from the selling shareholders at the initial public offering price, less underwriting discounts and commissions. The underwriters can exercise this option at any time within 30 days from the date of this prospectus. |
|  Class B common shares to be outstanding after this offering | <br>118,843,429 Class B common shares (or 114,501,324 Class B common shares if the underwriters' option to purchase additional Class A common shares is exercised in full), based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus). |
|  Directed Share Program | At our request, the underwriters have reserved up to 5% of the Class A common shares offered hereby to offer, at the initial public offering price, to our directors, officers, employees, business associates and related persons. The number of Class A common shares available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on |

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| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; the same basis as the other shares offered by this prospectus. Except for any shares acquired by our directors, officers and employees, shares purchased pursuant to the directed share program will not be subject to lock-up agreements with the underwriters. See "Underwriters — Directed Share Program." |
|  Use of proceeds | We estimate that we will receive net proceeds from our sale of Class A common shares in this offering of $355.1 million, based upon an assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus) and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. We will not receive any proceeds from the sale of Class A common shares by the selling shareholders named in this prospectus. |
|  | We intend to use the net proceeds from this offering to fund the $175.3 million redemption of the Class C convertible preference shares if the holders do not elect to convert such preference shares to common shares at the time of the offering, $25.0 million to fund a one-time termination fee upon the successful completion of this offering to an affiliate of Altamont Capital and the remainder for general corporate purposes. See "Use of Proceeds" and "Certain Relationships—Related-Party Transactions." |
|  Dividend policy | We do not currently pay dividends on any of our common shares and we currently intend to retain all available funds and any future earnings for use in the operation of our business. We may, however, pay cash dividends on our common shares in the future. See "Dividend Policy." |
|  Controlled company | After this offering, assuming an offering size as set forth in this section, affiliates of Altamont Capital will own 100,480,382 Class B common shares, representing 79.2% of the combined voting power of our common shares outstanding after this offering (or 96,138,277 Class B common shares, representing 77.4% of the combined voting power of our common shares if the underwriters' option to purchase additional Class A common shares is exercised in full), based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus). As a result, we expect to be a "controlled company" within the meaning of the corporate governance standards of the NYSE. See |

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|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; "Management—Controlled Company Status." Other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded. |
|  Proposed symbol for trading on the NYSE | "ARX." |
|  Voting rights and term | Upon the consummation of this offering, the holders of our Class A common shares will be entitled to one vote per Class A common share, and the holders of our Class B common shares will be entitled to ten votes per Class B common share. Pursuant to our amended and restated memorandum and articles of association, each holder of our Class B common shares shall have the right to convert each of its Class B common shares into one Class A common share, at any time, upon notice to us. Additionally, Class B common shares will automatically convert into Class A common shares, on a one-for-one basis, upon transfer (other than a permitted transfer) of Class B common shares, such as the Class A common shares sold by the selling shareholders in this offering. The Class B common shares will also automatically convert to Class A common shares upon the earlier of (i) the time Class B common shareholders cease to own 50% of the total number of Class B common shares owned by such holders, in aggregate, immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share.<br>Upon consummation of this offering, assuming no exercise of the underwriters' option to purchase additional common shares, holders of our Class A common shares will hold approximately 6.4% of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold approximately 93.6% of the combined voting power of our outstanding common shares, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus).<br>If the underwriters' option to purchase additional Class A common shares is exercised in full, holders of our Class A common shares will hold approximately 8.4% of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold |

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| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; approximately 91.6% of the combined voting power of our outstanding common shares.<br>Based on an assumed initial public offering price of $20.00, which is the high point of the estimated initial public offering price range set forth on the cover page of this prospectus, there will be 101,916,179 Class A common shares and 118,070,383 Class B common shares outstanding after this offering.<br>Based on an assumed initial public offering price of $18.00, which is the low point of the estimated initial public offering price range set forth on the cover page of this prospectus, there will be 100,302,062 Class A common shares and 119,684,501 Class B common shares outstanding after this offering.<br>For a description of the rights of the holders of our Class A common shares and our Class B common shares, see "Description of Share Capital—Class A Common Shares and—Class B Common Shares." |
|  Risk factors | Investing in our Class A common shares involves a high degree of risk. See "Risk Factors" beginning on page 28 of this prospectus for a discussion of factors you should carefully consider before investing in our Class A common shares. |

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The number of Class A common shares and Class B common shares that will be outstanding immediately after this offering is based on 101,143,134 Class A common shares and 118,843,429 Class B common shares outstanding as of June 30, 2025, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus), and gives effect to the Accelerant Holdings LP Distribution.

The number of Class A common shares to be outstanding after this offering excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 16,976,602 Class A common shares issuable upon the exercise of options outstanding under our Share Incentive
Plan (the "2023 Plan") as of March 31, 2025, at a weighted average exercise price of $21.23 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 35,000,000 Class A common shares reserved for future issuance under the 2023 Plan as described in
"Executive Compensation—Equity Compensation Plans and Other Benefit Plans—Share Incentive Plan" of which: (i) 2,381,858 Class A common shares will be issuable upon the vesting of restricted share units granted in
connection with the consummation of this offering under the 2023 Plan (as described in the fourth bullet of this paragraph); and (ii) 28,908,880 Class A common shares will be issuable upon the exercise of common share options granted in
connection with the consummation of this offering under the 2023 Plan (as described in the fifth bullet of this paragraph). The number of shares subject to common share options is fixed by reference to the initial public offering price and a change
in the initial public offering price will have a corresponding impact on the number of shares subject to common share options granted in connection with the consummation of this offering. For additional information see "Unaudited Pro Forma
Financial Information—Compensation-Based Expense Upon the Completion of this Offering;"

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1,000,000 Class A common shares reserved for future issuance under our 2025 Employee Stock Purchase Plan
(the "ESPP"), which will become effective in connection with this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2,381,858 Class A common shares issuable upon the vesting of restricted share units granted in connection
with the consummation of this offering under the 2023 Plan, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this
prospectus), vesting with respect to 25% of the Class A common shares subject to the awards on the one-year anniversary of the grant date and in 6.25% quarterly installments through the four-year anniversary of the grant date. For additional
information see "Unaudited Pro Forma Financial Information—Compensation-Based Expense Upon the Completion of this Offering;" and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 28,908,880 Class A common shares issuable upon the exercise of common share options granted in connection
with the consummation of this offering under the 2023 Plan, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this
prospectus), consisting of (i) common share options with respect to 9,236,398 Class A common shares with an exercise price established on the date of grant equal to the greater of $22.49 or the initial public offering price and (ii) common share
options with respect to 19,672,482 Class A common shares with an exercise price equal to the initial public offering price, in each case, vesting with respect to 25% of the Class A common shares subject to the awards on the one-year anniversary of
the grant date and in 6.25% quarterly installments through the four-year anniversary of the grant date. The number of Class A common shares subject to the option share awards is fixed by reference to the initial public offering price and a change in
the initial public offering price will have a corresponding impact on the number of shares subject to common share options granted in connection with the consummation of this offering. For additional information see "Unaudited Pro Forma
Financial Information—Compensation-Based Expense Upon the Completion of this Offering."

Unless otherwise indicated, all information contained in this prospectus assumes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the completion of the Accelerant Holdings LP Distribution and the effectiveness of our amended and restated
memorandum and articles of association, each of which will occur upon or prior to the completion of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the re-designation of existing common shares following the Accelerant Holdings LP Distribution, which will
result in the existing common shares which are distributed to holders of vested and unvested restricted profits interests pursuant to the Accelerant Holdings LP Distribution being re-designated into 63,729,915 vested and zero unvested restricted
Class A common shares of Accelerant Holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the conversion of all outstanding Accelerant Holdings Class A convertible preference shares and Class B
convertible preference shares into an aggregate of 6,105,595 Class A common shares and 27,419,593 Class B common shares immediately upon the closing of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the redemption of all outstanding Class C convertible preference shares at a redemption price of $31.55 per
share if the holders do not elect to convert such preference shares to common shares at the time of the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of outstanding stock options under the 2023 Plan subsequent to March 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an 83.6690-for-1 share subdivision, which became effective on July 14, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an initial public offering price of $19.00 per Class A common share, which is the midpoint of the estimated
initial public offering price range set forth on the cover page of this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of the underwriters' option to purchase additional Class A common shares.

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**SUMMARY ACCELERANT HOLDINGS HISTORICAL CONSOLIDATED** 

**FINANCIAL DATA** 

The following tables set forth the summary of historical financial data of Accelerant Holdings derived from its financial statements as of the dates and for each of the periods indicated. The summary of historical financial data as of December 31, 2024 and 2023 and for each of the years ended December 31, 2024, 2023, and 2022 have been derived from the audited financial statements of Accelerant Holdings included elsewhere in this prospectus. The summary historical financial data as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 have been derived from the unaudited financial statements of Accelerant Holdings included elsewhere in this prospectus.

Our historical annual results are not necessarily indicative of the results to be expected for our 2025 fiscal year or for any future period. The following information is only a summary and should be read in conjunction with the sections entitled "Basis of Presentation," "Unaudited Pro Forma Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the accompanying notes included elsewhere in this prospectus.

**Accelerant Holdings** 

**Consolidated Statements of Operations** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions of U.S. dollars)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 | 38.9 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 2.3 | 0.4 | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **178.0** | **128.1** | **602.6** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 | 227.5 | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Total expenses** | **162.5** | **116.1** | **570.6** | **387.9** | **303.3** |
|  **Income (loss) before income taxes** | **15.5** | **12.0** | **32.0** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | **7.8** | **2.1** | **22.9** | **(64.1)** | **(95.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net (income) loss attributable to non-controlling interests | (1.3) | 5.0 | 4.3 | 15.3 | 3.9 |
|  **Net income (loss) attributable to Accelerant** | $**6.5** | $**7.1** | $**27.2** | $**(48.8)** | $**(91.7)** |

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**Consolidated key operating data** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions, unless indicated)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Number of members<sup>(1)</sup> | 232 | 170 | 217 | 155 | 101 |
|  Net revenue retention<sup>(1)</sup> | 157% | 130% | 153% | 133% | 173% |
|  Exchange written premium<sup>(1)</sup> | $985.2 | $583.8 | $3108.4 | $1787.3 | $1200.7 |
|  Accelerant-retained exchange premium<sup>(1)</sup> | 8% | 11% | 8% | 11% | 15% |
|  Total revenue | $178.0 | $128.1 | $602.6 | $344.0 | $219.0 |
|  Revenue growth rate | 39% | 77% | 75% | 57% | 118% |
|  Non-GAAP financial measures<sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA<sup>(3)</sup> | $42.8 | $27.5 | $113.0 | $36.1 | $(39.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA margin<sup>(3)</sup> | 24% | 21% | 19% | 10% | (18)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Organic revenue growth rate<sup>(3)</sup> | 38% | 77% | 75% | 57% | 113% |

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(1) "See "Management's Discussion and Analysis of Financial Condition and Results of
Operations—Key Operating and Financial Metrics" for information on how we define and calculate these key operating metrics.

(2) See "Reconciliation of Non-GAAP financial measures" section
for details on how non-GAAP measures are defined and reconciled to GAAP measures.

(3) For reconciliations of net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin and total revenue to
Organic Revenue Growth Rate, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP financial measures."

**Accelerant Holdings** 

**Consolidated Balance Sheets** 

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| | | | |
|:---|:---|:---|:---|
|  | **As of March 31,** | **As of December 31,** | **As of December 31,** |
| ***(in millions of U.S. dollars)*** | **2025** | **2024** | **2023** |
|  **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments, cash, cash equivalents and restricted cash | $1993.5 | $1880.8 | $1027.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 | 1558.4 | 920.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables | 1636.7 | 1433.8 | 980.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 1377.0 | 1221.9 | 808.8 |
|  **Total assets** | $**6715.9** | $**6094.9** | $**3737.2** |
|  **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1513.1 | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premium | 1986.4 | 1803.2 | 1152.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 | 121.4 | 120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 2640.5 | 2448.9 | 1405.6 |
|  **Total liabilities** | $**6261.5** | **5667.9** | **3450.5** |
|  **Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemable preference shares | 104.4 | 104.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerant shareholders' equity | 321.5 | 304.3 | 310.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests | 28.5 | 18.3 | (23.8) |
|  **Total equity** | **454.4** | **427.0** | **286.7** |
|  **Total liabilities and equity** | $**6715.9** | $**6094.9** | $**3737.2** |

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**Capitalization and leverage ratios** 

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
| ***(in millions, unless indicated)*** | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
|  Total capitalization (total debt and equity\*) | $| 575.9 | $| 548.4 | $| 407.0 |
|  Debt |  | 121.5 |  | 121.4 |  | 120.3 |
|  **Debt to capitalization ratio** |  | **21%** |  | **22%** |  | **30%** |

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\* Equity consists of redeemable preference shares classified as mezzanine equity, Accelerant shareholders' equity and non-controlling interests.

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**RISK FACTORS** 

*Investing in our Class A common shares involves a high degree of risk, including the potential loss of all or part of your investment. Before making an investment decision to purchase our Class A common shares, you should carefully consider the following risks, together with all of the other information contained in this prospectus, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and notes thereto included elsewhere in this prospectus. Our business, financial condition, results of operations or prospects could be materially and adversely affected by any of these risks or uncertainties, as well as by risks or uncertainties not currently known to us, or that we do not currently believe are material. This prospectus also contains forward-looking statements and estimates that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of specific factors, including the risks and uncertainties described below. See "Cautionary Note Regarding Forward-Looking Statements."* 

**Risks Related to Our Business and Industry** 

*Risks Related to Our Risk Exchange and Our Members* 

***Our Risk Exchange has a limited operating history, which makes it difficult to evaluate its prospects, potential for expansion to new Members and product offerings, as well as the future prospects of our overall business. Any expansion efforts that are unsuccessful may materially adversely affect our business, results of operations, financial condition and prospects.***

Our business strategy is focused on the expansion of our Risk Exchange, which has a limited operating history. Our Risk Exchange is a new idea in the specialty insurance market, has been built with reality-developed applications, and our portfolio is currently focused on low-volatility, low-severity SME risks. We have limited experience in many aspects of its operation. Any aspect of our Risk Exchange model that does not achieve expected results, including our ability to sustain and adapt the technology underlying it and to continue to attract Members and risk capital partners to it, may have a material and adverse impact on our financial condition and results of operations. It is therefore difficult to effectively assess our future prospects.

Our targeted market of users of our Risk Exchange may not be familiar with our platform and accordingly may have difficulty distinguishing the services and offerings available through our Risk Exchange from similar insurance services and offerings. Convincing current and future Members and risk capital partners of the value of using our Risk Exchange will be critical to increasing the number of Members, and therefore the premiums written through the Risk Exchange and, correspondingly, the continued success and expansion of our business.

Given the lack of operating history of the Risk Exchange and the evolving nature of the markets in which our business operates, our business is subject to risks and challenges including our ability to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase awareness of the capabilities of our Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• manage the increased volume of business on our Risk Exchange and its future growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain and evaluate the robustness of our Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase the revenues generated from use of the platform's services by Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain and enhance its relationships with our business partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compete with competitors who may develop alternatives for managing and marketing to risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• improve the Risk Exchange's operational efficiency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract, retain, and motivate talented employees to support the growth of the Risk Exchange.

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***We have generated net losses in the past and may incur losses in the future.***

Although we generated net income of $7.8 million and $22.9 million for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, we have incurred net losses in the past and may do so in the future. We incurred a net loss of $64.1 million for the year ended December 31, 2023, and we had an accumulated deficit of $176.3 million as of March 31, 2025. These results do not reflect the impact of non-cash expense related to our profits interest awards, which would be $1.1 billion to $1.3 billion if the price per Class A common share ranges between $18.00 and $20.00, will be incurred in connection with the consummation of this offering and the AHLP Distribution. We expect to make significant investments to further develop and expand our business. In particular, we expect in the foreseeable future to continue to expend substantial financial and other resources on the development of our technology and data analytics capabilities, growing the reach and capabilities of our existing Members, adding new Members to our Risk Exchange, expanding our product portfolio and expanding into new geographies. As a public company, we will also incur significant legal, accounting and other expenses that we did not incur as a private company. Accordingly, we may not achieve or maintain profitability and we may incur significant losses in the future. Additionally, if we do not achieve or maintain profitability, we may need to raise additional capital to support new business and the aforementioned initiatives, and this may reduce our ability to grow as quickly, or to grow at all.

***The addition of any products to our portfolio that may result in a higher loss ratio may be less attractive for our Members and risk capital partners, and may materially adversely affect our business, results of operations, financial condition and prospects***.

While we have had success in the current offerings of our Risk Exchange, we may in the future prudently grow beyond the specialty insurance market, and any new products we offer may result in a higher loss ratio than our current specialty insurance market offerings. These new products may result in a higher loss ratio, which may be less attractive for our Members and risk capital partners, and may materially adversely affect our business, results of operations, financial condition and prospects.

***A decline in our financial strength rating may adversely affect the volume of business we can write.***

Participants in the insurance industry use ratings from independent ratings agencies, such as A.M. Best, as an important means of assessing the financial strength and quality of insurers. In setting its ratings, A.M. Best performs quantitative and qualitative analysis of a company's balance sheet strength, operating performance and business profile. A.M. Best's rating process also includes comparisons of an insurer to its peers and industry standards as well as assessments of operating plans, philosophy, and management. A.M. Best financial strength ratings range from "A++" (Superior) to "F" (the latter assigned to insurance companies that have been publicly placed in liquidation). As of the date of this filing, A.M. Best has assigned Accelerant a group financial strength rating of "A-" (Excellent) with a stable outlook as an insurance holding company system. A.M. Best expects us to maintain the strongest level of risk-adjusted capitalization over the longer term, as measured by Best's Capital Adequacy Ratio ("BCAR"), with capital supporting business growth. A.M. Best assigns ratings that are intended to provide an independent opinion of an insurance company's ability to meet its obligations to policyholders and are not evaluations directed to investors and are not recommendations to buy, sell, or hold our Class A common shares or any other securities we may issue. A.M. Best periodically reviews our financial strength rating and may revise our rating downward at their discretion based primarily on its analyses of our balance sheet strength, operating performance, and business profile. There are specific building blocks A.M. Best reviews, including capital adequacy, operating performance, operating profile and enterprise risk management, as well as other factors that could affect their analyses such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we change our business practices from our organizational business plan in a manner that no longer supports
A.M. Best's rating;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if unfavorable financial, regulatory or market trends affect us, including excess market capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we have adverse loss development that is materially in excess of our recorded loss reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we have unresolved issues with government regulators;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to retain our senior management or other key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our investment portfolio incurs significant losses or our liquidity is limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if A.M. Best alters its methodology for evaluating reinsurance recoverables; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if A.M. Best alters its capital adequacy assessment methodology in a manner that would adversely affect our
rating.

These and other factors could result in a downgrade of our financial strength rating. A downgrade or withdrawal of our rating could result in any of the following consequences, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• causing our current and future distribution partners, Members, and insureds to choose other, more highly rated
competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing the cost or reducing the availability of reinsurance to us; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• severely limiting or preventing us from writing new and renewal insurance contracts.

In addition, in view of the earnings and capital pressures experienced by many financial institutions, including insurance companies, it is possible that rating organizations will heighten the level of scrutiny that they apply to such institutions, increase the frequency and scope of their credit reviews, request additional information from the companies that they rate or increase the capital and other requirements employed in the rating organizations' models for maintenance of certain ratings levels. We can offer no assurance that our rating will remain at its current level and future reviews may result in adverse ratings consequences, which could have a material adverse effect on our financial condition and results of operations.

***Certain Members may choose to leave our Risk Exchange after their contractual commitments have expired, which would adversely affect our results of operations and our ability to offer attractive risk opportunities to our risk capital partners.***

Members enter into exclusivity agreements on a five-year rolling basis to remain on our Risk Exchange, which we typically renew annually. Members may choose to leave our Risk Exchange after the exclusivity period has ended, although only one Member has elected to leave to date, based on mutual agreement that the higher policy limits they wanted to offer were not in line with our terms. While we have found that the terms of the exclusivity period are currently favorable to facilitate faster, more profitable growth, market or other forces, including the deterioration of the pricing and economic terms that are offered to our Members, may cause Members to choose not to renew their contracts, or cause us to reduce the duration of time for which we may contractually bind our Members. Our success is largely dependent on our relationships with Members and risk capital partners and on our reputation for providing high-quality services to both. Many of our Members and risk capital partners are businesses that interact in industry groups or trade associations and actively share information among themselves about the quality of service they receive from their vendors, including at the Member events we host and on our Risk Exchange. Therefore, if any Member or risk capital partner is not satisfied with our services or products, it may negatively affect our relationships with multiple other Members or potential Members, which in turn may adversely affect our results of operations.

***If we are unable to continue enhancing our technology-based solutions at a pace that allows us to remain attractive to our Members, or continue to gain internal efficiencies and effective internal controls that promote the utility of the analytics we provide to Members, our operating results, relationships with our Members and growth could be adversely affected.***

Our future success depends, in significant part, on our ability to anticipate and effectively respond to the threats and opportunities presented by digital disruption, "big data," data analytics, AI and other developments in technology, particularly in the insurance industry. These may include new applications or insurance-related services based on AI, machine learning, robotics, blockchain or new approaches to data mining. We may be

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exposed to competitive risks related to the adoption and application of new technologies by established market participants, or new entrants such as technology and "insurtech" companies, data-mining companies and others. For example, we have invested significantly into our Risk Exchange. Other companies may be developing platforms that may compete with our Risk Exchange, and their success in this space may adversely impact our ability to differentiate our services to our Members. Innovations in software, cloud computing, or other technologies that alter how our services are delivered could significantly undermine our investment in this business if we are slow to innovate or unable to take advantage of these developments.

We must also develop, enhance, and implement technology solutions and technical expertise among our employees that anticipate and keep pace with rapid and continuing changes in technology, industry standards, Member preferences, and internal control standards. We may not be successful in anticipating or responding to these developments on a timely and cost-effective, basis and our ideas and innovations may not be accepted in the marketplace. Additionally, the effort to gain technological expertise and develop new technologies in our business requires us to incur significant expenses. Investments in technology systems may not deliver the benefits or perform as expected once completed, or may become obsolete more quickly than expected, which could result in operational difficulties or additional costs. If we cannot offer new technologies as quickly as our competitors, or if our competitors develop more effective or cost-efficient technologies or other product offerings, we could experience a material adverse effect on our operating results, Member relationships and growth.

In some cases, we depend on key third-party vendors and partners to provide technology and other support for our strategic initiatives. If these third parties fail to perform their obligations or cease to work with us, or fail to protect our data, confidential and propriety information, our ability to execute on our strategic initiatives could be adversely affected. See *"*Risk Factors*—*Risks Related to our Technology and Intellectual Property*—*Loss of key vendor relationships or failure of a vendor to protect our data, confidential and proprietary information could affect our operations."

***If our Members do not provide the data they are contractually obligated to provide or the data provided by our Members is inaccurate or incomplete, our Risk Exchange and participating risk capital partners may be unable to accurately price the risk transferred through our Risk Exchange.***

Our Risk Exchange runs on data provided by our Members, which comes from disparate and complex data environments. Though we have developed technology to ingest and synthesize this data into a single, digestible data set, if the data our Risk Exchange captures is faulty or incomplete, the integrity of our Risk Exchange and its ability to analyze the data may be adversely affected. Additionally, although contractually obligated to do so, our Members may, in certain instances, be unable or unwilling to provide some or all of the data they are obligated to provide. Furthermore, as we gain new Members, there is no assurance that new Members will be able to provide data as accurately or promptly as those Members we have attracted to date. If the data we receive from our Members and risk capital partners is inaccurate, incomplete or not timely, our current Members may choose to leave our Risk Exchange, our risk capital partners may misprice risk leading to their dissatisfaction or departure, and our reputation may be harmed, which could materially and adversely affect our business, results of operations, financial condition, and prospects.

***If our Members do not maintain consistency in the level of skill and expertise they demonstrate, or adhere to the underwriting guidelines of our Risk Exchange, our Members may experience higher loss ratios and our reputation and relationships with insurance carriers, reinsurers, other Members, other risk capital partners, and brokers could be harmed.***

Our ability to attract risk capital partners to our Risk Exchange is substantially dependent on our Members' ability to effectively evaluate risks within the guidelines of our Risk Exchange. Our business depends, in part, on the accuracy and success of our Members' underwriting models and their skill in implementing them. We evaluate prospective Members through a rigorous due diligence process before onboarding them to our Risk Exchange. However, if our Members do not perform with the expected level of skill, if any of the models or tools

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that they use contain programming or other errors or are ineffective, or if the data that we expect to be provided by Members or third parties is incorrect or stale, our pricing and approval process could be negatively affected, resulting in higher loss ratios and other adverse outcomes for those Members. This could damage our reputation and relationships with risk capital partners, other Members, and potential future counterparties, which could harm our business, results of operations, financial condition, and prospects.

In addition, if any of our Members fail to comply with the underwriting guidelines of our Risk Exchange and the terms of their appointments, we and our risk capital partners could be bound to a particular risk or number of risks that we did not anticipate when the insurance products were developed, and may be subject to litigation or other claims arising from any failures in compliance. Such actions or failure to act by our Members and resulting losses could adversely affect our business, results of operations, financial condition, and prospects.

***Our current market share may decrease as a result of disintermediation within the insurance industry, including increased competition from insurance companies, technology companies, and participants in the financial services industry, as well as the shift away from traditional insurance markets.***

The insurance intermediary business is highly competitive, and we actively compete with numerous firms for new Members and risk capital partners, many of which have relationships with other insurance companies or have a significant presence in specialty insurance markets that may give them an advantage over us. Other competitive concerns include the quality of our products and services, our pricing, our ability to expand our offerings and the entrance of technology companies into the insurance intermediary business. In addition, the financial services industry may experience further consolidation, and we therefore may encounter increased competition from insurance companies and firms in the financial services industry, as a growing number of larger financial institutions offer a wider variety of financial services, including insurance intermediary services.

Furthermore, there has been an increase in alternative insurance markets, such as self-insurance, captives, risk retention groups, parametric insurance, and non-insurance capital markets. While we compete in these segments on a fee-for-service basis, we cannot be certain that such alternative markets will provide the same level of insurance coverage or profitability as traditional insurance markets.

***Our MGA incubator, Mission Underwriters, depends on our ability to identify and partner with specialty underwriting talent, and if we do not identify the correct partners to participate in the Mission platform, or if our competitors attract this underwriting talent instead, it could affect the returns on our equity ownership interests in these Mission entities and accordingly our business, results of operations, financial condition, prospects and reputation.***

Mission Underwriters is our MGA incubator that seeks out talented teams of Mission Members and supports them with the tools and resources needed to form their own MGAs that are then jointly owned by us and the underwriters. Mission Underwriters depends on our ability to identify and partner with specialty underwriting talent. By doing so, we are able to directly capitalize on the industry trend of specialized underwriting talent leaving traditional insurance carriers to start their own independent underwriters. Our primary means of identifying such underwriters is our reliance on the Accelerant management team's knowledge of the specialty insurance markets in which we operate. Such knowledge includes an awareness of high-quality underwriters in these markets. We supplement this market awareness with arrangements with a number of specialist recruiters that seek out underwriters that match our desired profile. Our ongoing recruitment efforts will continue to be important as we grow; we do not currently expect any of the associated recruitment costs to increase materially in the future, although there may be unanticipated factors or circumstances beyond our control that result in increased costs in this area. Mission Underwriters attracts specialty underwriters with its independence, turnkey back office, and equity incentivization combined with the overall Accelerant value proposition. In addition, although we carefully vet potential Mission Members through a rigorous due diligence process before they are onboarded, we may fail to properly identify those who will be able to and successfully operate as Mission Members. Choosing ineffective Mission Members may cause our risk capital partners to reduce, or altogether cease, usage of our Risk Exchange and negatively impact the returns on our equity investments in our Mission Members.

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Additionally, our competitors that operate with different business models may have more robust financial, technical, and marketing resources than we do, which may allow them to attract potential Mission Members to their businesses. If we do not identify potential Mission Members, or our competitors are able to attract them instead, it could affect our business, results of operations, financial condition, prospects, and reputation.

***Our ability to add new Members to our Risk Exchange may slow over time, which would limit our growth and materially adversely affect our business, results of operations, financial condition, and prospects.***

A substantial amount of our growth has been due to successfully adding new Members to our Risk Exchange. We carefully vet existing MGAs through a rigorous diligence process when selecting new Members. As we continue to add new Members, it may become harder to find high-quality MGAs that meet the requirements of our diligence process. It may also be harder to convey the appeal of our Risk Exchange to potential new Members. Any failure on our part to recognize or respond to these challenges may adversely affect our ability to add new Members to our Risk Exchange and may materially adversely affect our business, results of operations, financial condition, and prospects.

On average, it takes 14 weeks to onboard a Member to our Risk Exchange. However, there have been, and in the future, may be, instances in which a Member has not been able to successfully integrate into our Risk Exchange. We believe there is demand in other specialty insurance markets that would support the continued expansion of our Risk Exchange, but to the extent these markets are not driven primarily by MGA business, it may be more difficult to add new Members to our Risk Exchange. Additionally, to the extent we encounter difficulties in the Member onboarding process, Members may not be able to perform at the level we expect, and this may impair our relationships with these Members and with our risk capital partners. If the ability for new Members to quickly join our Risk Exchange is impaired, they may no longer want to join, which may materially adversely affect our business, results of operations, financial condition and prospects.

***Our holding of Member and risk capital partner funds exposes us to complex fiduciary regulations and the potential for losses.***

Premium generated from Members is centrally managed by our agencies. Consequently, at any given time, we may hold certain funds of our Members and risk capital partners, which subjects us to various regulatory regimes governing the holding and management of these funds, including under the purview of the Financial Services Authority and the Federal Deposit Insurance Corporation ("FDIC"). These entities face the risk of loss if banks do not honor our escrow and trust deposits. The banks may hold a significant amount of these deposits in excess of the federal deposit insurance limit. If any of our depository banks were to become unable to honor any portion of our deposits, our Members and risk capital partners could seek to hold us responsible for such amounts and, if the Members or risk capital partners prevailed in their claims, we could be subject to significant losses.

***If new regulations are enacted that affect the ability of our Members to operate, it could materially adversely affect our business, results of operations, financial condition and prospects*.** 

Our operations, and our Members in particular, are subject to extensive laws and regulations in the jurisdictions in which we all operate, including in relation to changing capital requirements. Legislators, regulators, and self-regulatory organizations have in the past, and may in the future, consider various proposals that may affect the ability of our Members to underwrite claims, and new laws and regulations may affect or significantly limit their ability to do so. It is uncertain whether and how these and other such proposals or changes in legislation or regulation would apply to our Members, but to the extent they affect the ability of our Members to operate, this could materially adversely affect our business, results of operations, financial condition and prospects.

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*Risks Related to Our Risk Capital Partners* 

***We have expanded rapidly in recent years, and we may not be able to continue to attract risk capital partners at the same rate or of the same quality to facilitate similar growth in the future or continue maintaining a capital-efficient model.***

Since 2020, we have grown the number of risk capital partners operating on our Risk Exchange from 28 to 96 as of March 31, 2025. Our risk capital partners generally each hold an "A-" or better A.M. Best rating or are acting on a fully collateralized basis. There is no assurance that we will continue to add risk capital partners to our Risk Exchange at the same rate we have historically, or that prospective risk capital partners will be of the same level of quality as those we have attracted to date. Lower quality risk capital partners may subject us to additional counterparty risk, such as through engaging in sub-standard, non-market or even fraudulent practices or through increased likelihood of default. This may translate to reduced underwriting capacity or quality and reliability of the capital available to our Members, which would result in a material adverse effect on our business, results of operations, financial condition and prospects.

Our business model contemplates adding additional risk capital partners to the Risk Exchange to reinsure the growing volume of premiums in the Risk Exchange portfolio, while also increasing the proportion of premiums written directly and retained by primary insurance companies on the Risk Exchange. If we are unable to grow the volume of premiums written directly and retained by primary insurance companies on our Risk Exchange and the proportion of premiums written by Accelerant-owned insurance companies does not decrease, we will need to rely more heavily on the risk capital partners currently on our Risk Exchange and potentially hold more regulatory capital at Accelerant Underwriting. Additionally, if we were to lose one of our existing risk capital partners, an increase in Accelerant GWP could lead to a concentration of counterparties that could materially adversely affect our business, results of operations, financial condition and prospects.

***We may not be able to continue to attract institutional investors to Flywheel Re, or those investors may insist in the future on terms that are less economically attractive to us.***

Flywheel Re is an unconsolidated reinsurance sidecar entity that we formed in 2022. Upsized capital was raised from institutional investors in June 2025 to support business assumed by Flywheel Re during a multi-year risk period, which covers the underwriting years from April 2025 to March 2028. While Accelerant holds no equity interest in Flywheel Re and does not exercise control over Flywheel Re, approximately 26% of our risk capital was sourced from Flywheel Re as of March 31, 2025, creating more predictability and stability in capacity availability, enabling institutional investors to access risk through our Risk Exchange. If we are unable to continue developing unique risk transfer solutions like Flywheel Re, our ability to retain existing and attract new institutional investors and reinsure risks to them could be adversely affected. To the extent we are unable to attract new risk capital partners in the form of institutional investors, we may not be able to find new capital commitments to provide necessary risk capital. In the future, we may be unable to continue to attract additional institutional investors to contribute capital to Flywheel Re or institutional investors who contribute capital to Flywheel Re may insist on terms that are less economically attractive to us. Our business may be harmed if additional institutional investors are not attracted to Flywheel Re or if there is a dependence upon a limited number of institutional investors.

***Certain risk capital partners may look to directly interact with our Members outside of the arrangements dictated by our Risk Exchange or pursue other disintermediation strategies, including leaving our Risk Exchange entirely, which could materially adversely affect our business, results of operations, financial condition and prospects.***

Historically, all of the insurance risk underwritten by Members was written by Accelerant-owned insurance companies licensed to insure business written by each Member, and was concurrently ceded through quota share arrangements to risk capital partners. Since 2023, we have expanded our third-party participation (including direct third-party participation) in our Risk Exchange to 19% of Exchange Written Premium for the three months ended

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March 31, 2025, which has increased interaction between our Members and risk capital partners. Our agreements with Members prohibit them from entering into similar contracts without our prior consent, require Members to cede all insurance business of a type that is permitted to be written, and requires our Members to allow us to quote competitive terms for any new proposed binding authority before inviting any other insurer to do so. However, if certain risk capital partners choose to interact directly with our Members outside our Risk Exchange or pursue other disintermediation strategies, it could materially adversely affect our business, results of operations, financial condition, and prospects.

***Our business, and therefore our financial condition and results of operations, may be adversely affected by a reduction in insurer and reinsurer capacity.***

Our results of operations depend on the continued capacity of insurance and reinsurance carriers to adequately and appropriately underwrite risk and provide coverage, which may depend, in turn, on those insurance and/or reinsurance companies' ability to procure reinsurance. Capacity could also be reduced by insurance or reinsurance companies failing or withdrawing from writing certain coverages that are ultimately offered to policyholders. We have no control over these matters. To the extent that reinsurance becomes less widely available or significantly more expensive, we may not be able to procure the amount or types of reinsurance that we require and the coverage our Members underwrite for policyholders may be too expensive or more limited than is acceptable.

***The failure of risk capital partners to pay claims in an accurate and timely fashion could materially and adversely affect our business, results of operations, financial condition and prospects.***

Risk capital partners on our Risk Exchange must evaluate and pay claims that are made under bound policies in an accurate and timely fashion. Many factors affect their ability to pay claims in an accurate and timely fashion, including the training and experience of claims representatives, the effectiveness of their management, and their ability to develop or select and implement appropriate procedures and systems to support claims administration and other functions. Failure to pay claims in an accurate and timely fashion could lead to regulatory and administrative actions or material litigation, which could harm our Members and also undermine our reputation in the marketplace, and accordingly, materially and adversely affect our business, results of operations, financial condition, and prospects.

***We may lose risk capital partners as a result of consolidation within the insurance and reinsurance industries.***

We have historically relied on reinsurance arrangements for a significant amount of our risk capital. There has been considerable consolidation in the reinsurance industry in recent years, driven primarily by smaller reinsurers lacking the scale and diversification to succeed in the current market. We expect this trend to continue. As a result, we may lose some of our current counterparties that are ultimately acquired by other firms who have their own operations or established relationships with other platforms. To date, our business has not been materially affected by consolidation among insurers or reinsurers, however, we cannot assure you that we will not be affected by industry consolidation that may occur in the future. Such consolidation could materially adversely affect our business, results of operations or financial condition.

***Changes in reinsurance regulation could limit the availability of risk capital in the future.***

The reinsurance business in which many of our risk capital partners are engaged is highly regulated. The extent of regulation varies across the jurisdictions in which we and our Members operate, but generally is governed by laws that delegate regulatory, supervisory and administrative authority to insurance departments and similar regulatory agencies. Legislators, regulators and self-regulatory organizations have in the past, and may in the future, consider various proposals that may affect the ability of our risk capital partners to participate on our Risk Exchange and of our reinsurers, such as Flywheel Re, to access premium written or reinsured by us on the Risk Exchange platform. Any negative changes in these laws or regulations could materially adversely affect our business, results of operations or financial condition.

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***U.S.-based activities of our Members or ceding companies on the Risk Exchange may be attributed to a non-U.S. risk capital partner for tax purposes in certain circumstances, and our ability to grow the Risk Exchange may be limited as a result.***

U.S.-based activities of our Members or ceding companies on the Risk Exchange could, in certain circumstances, be attributed to a non-U.S. risk capital partner and cause it to be subject to U.S. federal income tax. This would not be the case, however, with respect to U.S.-based activities of a Member or ceding company that is considered an independent agent of a non-U.S. risk capital partner eligible for benefits under a U.S. income tax treaty. Therefore, prospective non-U.S., non-treaty eligible risk capital partners may be unwilling to participate in the Risk Exchange, may require U.S. ceding companies to retain some portion of the risk that is reinsured, or may otherwise seek assurances the activities of such ceding companies will not be attributed to them for these purposes. The foregoing tax considerations may limit the pool of prospective risk capital partners and our ability to grow the Risk Exchange may be limited as a result. In addition, risk retention by ceding companies on the Risk Exchange may be in tension with our capital-efficient business model.

*Risks Related to Underwriting Activities* 

***Our financial condition and results of operations could be materially adversely affected if we do not accurately assess the underwriting risk we retain.***

Our underwriting performance in respect of the policies underwritten by our Members and retained by our own insurance and reinsurance companies, either directly or assumed from Risk Exchange Insurers, is dependent on our ability to accurately assess the risks associated with these policies. We rely on the experience of our Members' underwriting personnel in assessing those risks. In addition, our Members' employees make decisions and choices in the ordinary course of our underwriting activities that potentially expose us to underwriting risk. If our Members misunderstand the nature or extent of the risks that they underwrite, they may fail to establish appropriate premium rates or other pricing elements, which could adversely affect our business, results of operations and financial condition.

***We may be unable to purchase third-party reinsurance in amounts we desire on commercially acceptable terms or on terms that adequately protect us, and may not have sufficient third-party reinsurance coverage provided by risk capital partners accessing our Risk Exchange, in each case, and this potential inability may cause us to retain more risk than we expect or have forecasted, which may materially and adversely affect our business, results of operations and financial condition.***

We strategically secure reinsurance from third parties, which enhances our business by protecting our capital from severity events (either large single-event losses or catastrophes). Reinsurance involves transferring, or ceding, a portion of our risk exposure on policies that we write to another reinsurer, in exchange for a premium paid to the reinsurer. We reinsured 91.6% and 91.2% of Accelerant GWP for the trailing twelve months ended March 31, 2025 and the year ended December 31, 2024, respectively. Under our reinsurance arrangements, we hold $77.6 million in trust to support reinsurance recoverables as of March 31, 2025. The collateral is all in fixed income securities allowed under Section 114 trusts under the NAIC model laws. Relatedly, we have entered into reinsurance agreements with our Risk Exchange Insurers consisting of either stop-loss or quota share reinsurance. When we reinsure this business, we place the majority of it with third-party reinsurers or institutional investors. If we are unable to renew our expiring contracts, enter into new reinsurance arrangements on acceptable terms, or expand our existing reinsurance coverage where necessary, our loss exposure could increase, which would increase our potential losses related to loss events. If we are unwilling to bear an increase in loss exposure, we may need to reduce the level of our underwriting commitments, both of which could materially and adversely affect our business, results of operations and financial condition.

There may be situations in which reinsurers exclude certain coverages from, or alter terms in, the reinsurance contracts we enter with them. As a result, we, like other insurance companies, could write insurance policies which, to some extent, do not have the benefit of reinsurance protection. These gaps in reinsurance protection could expose us to greater risk and greater potential losses.

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***Unexpected changes in the interpretation of the coverage or provisions of the policies we underwrite, including loss limitations and exclusions, could have a material adverse effect on our business, results of operations and financial condition.***

There can be no assurances that loss limitations or exclusions in our policies will be enforceable in the manner we intend. As industry practices and legal, judicial, social, and other conditions change, unexpected and unintended issues related to claims and coverage may emerge. For example, many of our policies limit the period during which a policyholder may bring a claim, which may be shorter than the statutory period under which such claims can be brought against our policyholders, and other policies now contain a COVID-19 specific exclusion. While these limitations and exclusions help us assess and mitigate our loss exposure, it is possible that a court or regulatory authority could nullify or void a limitation or exclusion, or legislation could be enacted that modifies or bars the use of such limitations or exclusions. These types of governmental actions could result in higher than anticipated losses and loss adjustment expenses ("LAE"), which could have a material adverse effect on our financial condition or results of operations, or the results of operations of our risk capital partners. In addition, court decisions may read policy exclusions narrowly to expand coverage, thereby requiring insurers to create and write new exclusions.

These issues may adversely affect our business by either broadening coverage beyond our Members' underwriting intent or by increasing the frequency or severity of claims. In some instances, these changes may not become apparent until after Accelerant-owned insurance companies or our risk capital partners have issued insurance contracts that are affected by the changes. As a result, the full extent of liability under these insurance contracts may not be known for many years after a contract is issued.

***The movement in our individual Member commission structures could materially affect the commissions retained on written premiums.***

Our individual Member commission structures typically allow our Members to receive a higher commission if the quality of their business underwritten through our Risk Exchange is high and a lower commission if the quality is low. Additionally, our typical reinsurance contracts may have us owing commission back to our reinsurers if the actual loss ratio of the covered contracts is higher than our expected loss ratio or vice versa. The movements on these two variables could have a material adverse effect on our business, results of operations, and financial condition. There is a scenario in which we could owe more commission to Members and receive less from reinsurers.

***The failure of any of the loss limitation methods we employ could have a material adverse effect on our financial condition and results of operations.***

As part of our overall risk strategy, we purchase excess of loss protection from third-party reinsurers to mitigate the impact of a significant loss event(s) beyond those that we reasonably anticipate at the time of underwriting. Market conditions beyond our control, including the price and availability of capacity, may affect the amount of excess of loss protection we are able to purchase. While we maintain coverage with an excess of loss program, if the frequency and severity of global catastrophes and significant loss events increases, such coverage may be insufficient to cover our losses. If we are not able to effectively mitigate our loss limitation exposure, in the event of such losses, our business, results of operations and financial condition could be materially affected.

***Our losses and loss expense reserves may be inadequate to cover our actual losses, which could have a material adverse effect on our business, results of operations and financial condition.***

Our success depends on our ability to accurately assess the risks related to the businesses and people that our insurance carrier subsidiaries insure. We establish losses and LAE reserves for the best estimate of the ultimate payment of all claims that have been incurred, or could be incurred in the future, and the related costs of adjusting those claims, as of the date of our financial statements. As of March 31, 2025, our reserve for unpaid losses and

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LAE was $1.51 billion. Loss reserves are inherently uncertain as they represent management's estimates of losses that will not become known until claims settlements in the future, and therefore do not represent an exact calculation of liability. Rather, reserves represent an estimate of what we expect the ultimate settlement and administration of claims will cost us, and our ultimate liability may be greater or less than our estimate.

As part of the reserving process, we review historical data and consider the impact of such factors as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• claims inflation, which is the sustained increase in cost of materials, labor, medical services and other
components of claims cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• claims development patterns by line of business, as well as frequency and severity trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pricing for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legislative and regulatory activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• social and economic patterns; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation, judicial and regulatory trends.

These variables are affected by both internal and external events that could increase our exposure to losses, and we continually monitor our loss reserves using new information on reported claims and a variety of statistical techniques and modeling simulations. This process assumes that past experience (adjusted for the effects of current developments, anticipated trends, and current and anticipated market conditions) is an appropriate basis for predicting future events. There is, however, no precise method for evaluating the impact of any specific factor on the adequacy of loss reserves, and actual results may deviate, perhaps substantially, from our reserve estimates. For instance, the following uncertainties may have an impact on the adequacy of our reserves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• When a claim is received, it may take considerable time to fully assess the extent of the covered loss
suffered by the insured. Consequently, estimates of loss associated with specified claims can increase as new information emerges over time, which could cause the reserves for the claim to become inadequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• From time to time, courts enforce new theories of liability retroactively. The failure of any of the loss
limitations or exclusions we employ, or changes in other claims or coverage issues, could have a material adverse effect on our business, results of operations, financial condition and prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility in the financial markets, economic events and other external factors may result in an increase in
the number of claims and/or severity of the claims reported.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If claims were to become more frequent, even if we had no liability for those claims, the cost of evaluating
such claims could escalate beyond the amount of the loss adjustment expense reserves we have established. As we enter new lines of business, or as a result of new theories of claims, we may encounter an increase in claims frequency and greater
claims handling costs than we had anticipated.

Inflation has an adverse impact on the cost of insured losses and expected future insured losses. Though we attempt to increase premium rates to reflect the impact of inflation on expected losses, we may not be able to do so and there can be no assurances that any such premium rate increases will be adequate to offset the impact of inflation on our financial performance.

If any of our reserves should prove to be inadequate, we will be required to increase our reserves resulting in a reduction in our net income and shareholders' equity in the period in which the deficiency is identified. Elevated inflationary conditions could, among other things, cause loss costs and thus reserves to increase in magnitude. Future loss experience substantially in excess of established reserves could also have a material adverse effect on our future earnings, liquidity, and/or our financial ratings.

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***Our reinsurers may not reimburse us for claims on a timely basis, or at all, which may materially and adversely affect our business, results of operations and financial condition.***

The reinsurance contracts that we enter into to help manage our risks require us to pay premiums to the reinsurance carriers who will in turn reimburse us for a portion of covered policy claims. In many cases, a reinsurer will be called upon to reimburse us for policy claims many years after we have paid reinsurance premiums to the reinsurer. Although reinsurance makes the reinsurer liable to us to the extent the risk is transferred or ceded to the reinsurer, it does not relieve us (the ceding insurer) of our primary liability to our policyholders. Our current reinsurance program is designed to limit our financial risk. However, our reinsurers may not pay claims we incur on a timely basis, or they may not pay some or any of these claims. For example, reinsurers may default in their financial obligations to us in the event of insolvency, insufficient liquidity, operational failure, political and/or regulatory prohibitions, fraud, asserted defenses based on agreement wordings or the principle of utmost good faith, asserted deficiencies in the documentation of agreements or other reasons. Any disputes with reinsurers regarding coverage under reinsurance contracts could be time-consuming, costly, and uncertain of success. These risks could cause us to incur increased net losses, and, therefore, adversely affect our business, results of operations, and financial condition. As of March 31, 2025, we had $1.64 billion of aggregate reinsurance recoverables.

In mid-July 2023, we became aware that one of our reinsurance partners may have been the victim of a fraudulent scheme related to falsified letters of credit (which were used as collateral in our reinsurance agreements with such reinsurance partner). Thereafter, we confirmed that the letters of credit provided on behalf of such reinsurance partner were fraudulent. As a result, we determined that approximately $23 million of reinsurance recoverables were not effectively collateralized. We immediately demanded that the affected reinsurance partner provide valid replacement collateral to support the impacted reinsurance coverage. During this time, we engaged with regulators of our impacted U.S. insurance companies, notably the Department of Insurance of Arkansas for ASIC, and then subsequently filed the relevant quarterly statutory financial statements and did not admit the reinsurance recoverables subject to the falsified letters of credit. Accordingly, the surplus of ASIC dropped below the minimum surplus requirements for certain states. On August 15, 2023, ASIC filed its third quarter financial statements, which reflected the reduction of ASIC's statutory capital. ASIC members and brokers were notified of the fact that ASIC statutory capital had fallen below the $45 million statutory requirement mandated by the state of California. Surplus lines brokers were not able to place insurance coverage with ASIC as we worked to replace the reinsurer and the collateral, which we accomplished by September 30, 2023. While we do not believe these circumstances had a material adverse impact on our business, to the extent any of our reinsurance partners are subject to similar circumstances in the future, we may suffer a material adverse effect on our business, financial condition, results of operations and prospects.

While as of March 31, 2025 we believe we no longer carry any exposure to the fraudulent instruments, there can be no assurance that we would not experience a similar result in the future. We have evaluated our internal due diligence processes related to verification of the validity of all reinsurance letters of credit and made improvements to enable us to identify and prevent the use of such fraudulent instruments in our reinsurance transactions more effectively. However, if our due diligence process improvements are not adequate to identify and prevent possible future fraudulent schemes of this nature, we could become a victim of such fraud, thereby increasing our financial risk and negatively impacting our profitability or regulatory compliance. In addition, future incidents of this nature could have a negative impact on the reinsurance industry as a whole and possibly constrain the availability of reinsurance coverage.

***Severe weather conditions, including the effects of climate change and catastrophes, as well as man-made events, such as terrorism, may adversely affect our business, results of operations and financial condition.***

The ability to effectively underwrite, model and price risk becomes more challenging as exposure to the risk of severe weather conditions, earthquakes and man-made catastrophes becomes more prominent in the insurance

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industry. Catastrophes can be caused by natural events such as severe winter weather, tornadoes, windstorms, earthquakes, hailstorms, severe thunderstorms and fires, or man-made events such as terrorist attacks, explosions, war and riots.

Climate change has contributed to an increase in the frequency and severity of natural disasters and the creation of uncertainty as to future trends and exposures. Over the past several years, changing weather patterns and climatic conditions, such as global warming, have added to the unpredictability and frequency of natural disasters in certain parts of the world, including the markets in which we operate. This effect has led to conditions in the ocean and atmosphere, including warmer-than-average sea-surface temperatures and low wind shear that increase hurricane activity. As such, climate change presents significant financial implications for our Members in areas such as underwriting, claims and investments, as well as risk capacity, financial reserving and operations. We are also subject to losses occurring as a result of man-made events, including acts of terrorism, military actions, cyberterrorism, explosions, and biological, chemical or radiological events.

The occurrence of any severe weather event or man-made catastrophic event could materially adversely affect our business, results of operations, and financial condition. Additionally, any increased frequency and severity of any such event could have a material adverse effect on our ability to predict, quantify, reinsure and manage catastrophe risk and may materially increase our losses resulting from such catastrophe events. The concentrations of exposure that produce the largest modeled losses to our portfolio are hurricane and other weather events along the Atlantic seaboard, wildfire prone areas in California or other states, U.S. severe convective storms, UK wind and flood, and European wind and flood, among others. For the 2024 treaty year, our U.S. property catastrophe excess of loss retention for a modeled gross occurrence is expected to be $35 million with a 1-in-100 year return period. Our EEA/UK property catastrophe excess of loss retention is expected to be $44 million for a modeled gross occurrence at a 1-in-250 year return period.

In addition, lawmakers and regulators have imposed and may continue to impose new requirements or issue new guidance aimed at addressing or mitigating climate change-related risks and efforts undertaken in response thereto. Additional actions by governments, regulators and international standard setters could result in substantial additional regulation to which we and our Members may be subject. It is also possible that the laws and regulations adopted in these jurisdictions regarding climate change-related risks will differ from one another, and that they could be inconsistent with the laws and regulations of other jurisdictions in which we operate.

In addition, severe weather and other effects of climate change result in more frequent and more severe damages, leading to lawsuits, more aggressive attorney involvement in insurance claims, expanded theories of liability, higher jury awards, lawsuit abuse and third-party litigation finance, all of which create the potential for a large rise in the total number of claims brought against us. More severe damages and a rise in the type and severity of claims could adversely affect our business, results of operations, financial condition and prospects.

*General Risks* 

***We have experienced rapid growth in recent years, and our recent growth rates may not be indicative of our future growth. As our costs increase, we may not be able to generate sufficient revenue to achieve, and if achieved, maintain, profitability.***

We have experienced significant revenue growth in recent years. Our total revenues grew 39% in the three months ended March 31, 2025 from $128 million for the three months ended March 31, 2024 to $178 million for the three months ended March 31, 2025, 75% in 2024 from $344 million in 2023 to $603 million in 2024 and 57% in 2023 from $219 million in 2022 to $344 million in 2023. As we continue to scale our business, our annual growth rate is likely to moderate. In future periods, we may not be able to sustain revenue growth consistent with recent history, or at all. We believe our revenue growth depends on a number of factors, including, but not limited to, our ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price our products effectively so that we are able to attract and retain Members without compromising our
profitability;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract new Members and Mission Members, successfully deploy and implement our products, obtain Member
renewals, and provide our Members with excellent support and tailored services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract and retain talented Member managers, executives and other employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract and retain risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhance our information, training and communication systems to ensure that our employees are well coordinated
and can effectively communicate with Members and each other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• improve our internal control over financial reporting and disclosure controls and procedures to ensure timely
and accurate reporting of our operational and financial results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully create new distribution channels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully introduce new products and enhance existing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully introduce our products to new markets inside and outside the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully compete against larger companies and new market entrants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase awareness of our brand.

We may not successfully accomplish any of these objectives and as a result, it is difficult for us to forecast our future results of operations. Our historical growth rate should not be considered indicative of our future performance and may decline in the future. In future periods, our revenue could grow more slowly than in recent years or decline for any number of reasons, including those outlined above. We also expect our operating expenses to increase in future periods, particularly as we continue to operate as a public company, continue to invest in research, development and technology infrastructure and expand our operations internationally. If our revenue growth does not increase to offset these anticipated increases in our operating expenses, our business, results of operations and financial position will be harmed, and we may not be able to achieve or maintain profitability. In addition, the additional expenses we will incur may not lead to sufficient additional revenue to maintain historical revenue growth rates and profitability.

As we expand our business, it is important that we continue to maintain a high level of service to our Members and risk capital partners and maintain Member and risk capital partners satisfaction. If we are not able to continue to provide high levels of service to our Members and risk capital partners, our reputation, as well as our business, results of operations and financial condition could be adversely affected.

***We are subject to economic and reputational harm if companies with which we do business (including our Members and our risk capital partners) engage in negligent, grossly negligent, misleading or fraudulent behavior and damage to our reputation could have a material adverse effect on our business.***

In operating our Risk Exchange, we rely on our Members and risk capital partners to provide their contractually obligated services and accurate data. If one or more of these constituencies, whether negligently or intentionally, fails to provide the services it has offered, capital as agreed, mishandles or misappropriates funds, or otherwise fails to properly provide products and services as expected, we face potential liability for damages and reputational harm.

Our ability to attract and retain Members, risk capital partners, employees and investors is highly dependent upon the external perceptions of our level of service, trustworthiness, business practices, financial condition and other subjective qualities. Negative perceptions or publicity regarding these matters could erode trust and confidence and damage our reputation among existing and potential Members, capital providers and other constituencies, which, in turn, could make it difficult for us to maintain existing Members and attract new ones. Damage to our reputation due to a failure to proactively communicate to stakeholders on changes in strategy and business plans could further affect the confidence of our Members, risk capital partners, regulators, creditors, investors and other parties that are important to our business, having a material adverse effect on our business, ability to raise capital, financial condition, and results of operations.

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***Our business may face significant competitive pressures in the future.***

MGA activity, binding authority, underwriting management and other intermediary and underwriting and claims administration specialties are highly competitive. We believe that our ability to compete is dependent on the quality of our people, service, product features, price, commission structure, financial strength and the ability to access certain specialty insurance markets. We compete with a large number of national, regional and local organizations in the insurance industry. New or increased competition from these organizations or other entities that emerge, or regulatory or other industry developments, could harm our business, results of operations, financial condition and prospects.

***We rely on third parties to perform key functions of our business operations enabling our provision of services to our Members and risk capital partners. These third parties may act in ways that could harm our business.***

We rely on third parties, including Pro Global and in some cases subcontractors, to provide services, data and information such as technology, information security, funds transfers, data processing, support functions and administration that are critical to the operations of our business. These third-party service providers include data providers, plan trustees, payroll service providers, benefits administrators, software and system vendors, health plan providers, and providers of human resources, among others. Some of these third parties help us collect, process, transmit and store large quantities of personal financial information and other confidential and sensitive data about our customers, which must be protected by our information technology systems. Pro Global provides basic operational support for pre-processing of bordereaux files as part of our core business processes. As we do not fully control the actions of these third parties, we are subject to the risk that their decisions, actions or inactions may adversely impact us, and replacing these service providers could create significant delay and expense. Additionally, information technology systems are potentially vulnerable to damage, breakdown or interruption from a variety of sources, including but not limited to: cyberattacks, ransomware, malware, security breaches, sophisticated social engineering, denial-of-service attacks, theft or misuse, unauthorized access or improper actions by insiders or employees, sophisticated nation-state and nation-state-supported actors, natural disasters, terrorism, war, telecommunication, and electrical failures or other compromise. A failure by third parties to comply with service-level agreements or regulatory or legal requirements in a high-quality and timely manner, particularly during periods of our peak demand for their services, could result in economic and reputational harm to us. In addition, we face risks as we transition from in-house functions to third-party support functions and providers that there may be disruptions in service or other unintended results that may adversely affect our business operations. These third parties face their own technology, operating, business and economic risks, and any significant failures by them, including the improper use or disclosure of our confidential Member, employee or company information, could cause harm to our business and reputation. An interruption in or the cessation of service by any service provider as a result of systems failures, cybersecurity incidents, capacity constraints, financial difficulties, or for any other reason could disrupt our operations, impact our ability to offer certain products and services, and result in contractual or regulatory penalties, liability claims from Members or employees, damage to our reputation, and harm to our business.

Additionally, while we select our Members and third-party vendors carefully, cyberattacks and security breaches at a Member or vendor could adversely affect our ability to deliver products and services to our Members and otherwise conduct our business put our systems at risk. The types of incidents affecting us, our Members or our third-party vendors could result in intellectual property or other confidential information being lost, stolen, or otherwise compromised, including Member, employee or company data and we may not be able to (timely) detect incidents in our information technology systems or assess the severity or impact of a breach in a timely manner. We may also have insufficient recourse against third parties and may be required to expend substantial resources to mitigate the impact of such an event, and to develop and implement protections to prevent future events of this nature from occurring. Any significant system or network disruption due to a breach in the security of our information technology systems could have a negative impact on our reputation, regulatory compliance status, operations, sales and operating results, or result in additional legal liability including regulatory sanctions. We believe we are not reliant on any third-party vendors from owned or affiliated entities.

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***There is increased litigation relating to COVID-19 being brought against participants in the insurance industry, and it is possible COVID-19 business interruption claims may cause us to suffer material losses.***

As uncertainty around the COVID-19 pandemic has slowed, litigation related to COVID-19 has increased, and may continue to increase as additional claimants come forth. Business interruption insurance has been and remains a loss covered by the products issued by our Members where requested by the policyholders. While we began to include COVID-19 specific exclusions in the business interruption policies written by Accelerant Underwriting after the onset of the pandemic, there remains uncertainty in our potential exposure for certain business interruption insurance policies written prior to the COVID-19 pandemic. One of our Members extended coverage on business interruption policies for a carry-over period prior to adding a COVID-19 specific exclusion. Such policies were reinsured by one of our risk capital partners. Currently, language similar to the language included in this Member's policies is being considered by the UK courts. If the UK courts were to apply a broader or different interpretation to the language of the business interruption policies than we have previously applied, any liability we have under claims asserted with respect to this Member's policies could result in significant losses, thereby materially and adversely affecting our business, results of operations, financial condition and prospects. During the period commencing in December 2018 to March 2020, the Company issued 35,683 policies with attaching business interruption coverage, which were generally limited to £50 thousand ($63 thousand) per policy. Total coverage limits for the underlying policies were £1.78 billion ($2.22 billion) as of March 31, 2025. As of March 31, 2025, the Company received 3,436 notifications of claims, and paid or reserved approximately €21.6 million ($23.4 million) in respect of such claims. Our policy and coverage limits and notifications of claims reserve are generally presented in British pound sterling or Euros, and our consolidated financial statements are presented in United States dollars. We translate our policy and coverage limits and notifications of claims reserve into United States dollars based on the exchange rate as of March 31, 2025. This amount represents a combination of claims paid, legal fees and the Company's outstanding indemnity reserves for valid claims reported to date. Losses incurred would be subject to third-party (re)insurance, whereby our net exposure would be expected to be less than 10% of the total.

***Pandemics or other outbreaks of contagious diseases and the measures to mitigate their spread could materially adversely affect our business, results of operation and financial condition and those of our Members and risk capital partners.***

The global outbreak of the COVID-19 pandemic and measures to mitigate the spread of COVID-19 caused unprecedented disruptions to the global and U.S. economies and significantly impacted the global supply chain. Future pandemics and other outbreaks of contagious diseases could result in similar or worse impacts and significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. If significant portions of our workforce are unable to work effectively, including because of illness or quarantines or from the impacts of any potential future pandemics and other outbreaks of contagious diseases, our business could be materially adversely affected. It is possible that future pandemics and other outbreaks of contagious diseases could cause disruption in Members' businesses; cause delay or limit the ability of Members to perform, including in making timely payments. Future pandemics and other outbreaks of contagious diseases could impact capital markets, which may impact our, our Members' and/or our risk capital partners' financial position. Future pandemics and other outbreaks of contagious diseases may also have the effect of exacerbating several of the other risks we face as discussed in this disclosure.

***Our international operations expose us to various international risks, including exchange rate fluctuations, that could adversely affect our business.***

Our operations are conducted in numerous geographies including the United States, United Kingdom, Europe, Canada and Australia. Accordingly, we are subject to regulatory, legal, economic and market risks associated with operating in foreign countries, including the potential for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse effects of currency fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disparate tax regimes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected wage inflation or job turnover and legal and compliance costs and risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• extensive and conflicting regulations in the countries in which we do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• penalties resulting from noncompliance with sanctions, bribery and anti-money laundering regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• imposition of investment requirements or other restrictions by foreign governments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• longer payment cycles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• greater difficulties in collecting accounts receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insufficient demand for our services in foreign jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to execute effective and efficient cross-border sourcing of services on behalf of our Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions effecting the flow of services and currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the reliance on or use of third parties to perform services on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the import and export of technologies and trade barriers.

Approximately 51% and 34% of our revenues for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, were generated outside of North America. We are exposed to currency risk from the potential changes between the exchange rates of the U.S. Dollar, Canadian Dollar, British Pound, Euro, Swedish Krona, Danish Krone and other European currencies. Exchange rate movements may change over time, and they could have an adverse impact on our financial results and cash flows reported in U.S. dollars. Our U.S. operations earn revenue and incur expenses primarily in U.S. dollars. Due to fluctuations in foreign exchange rates, we are subject to economic exposure as well as currency translation exposure on the net operating results of our operations. Because our non-U.S. based revenue is exposed to foreign exchange fluctuations, exchange rate movement can have an impact on our business, results of operations, financial condition and cash flow.

Our performance can be affected by global economic conditions as well as geopolitical tensions and other conditions with global reach. In recent years, concerns about the global economic outlook have adversely affected economic markets and business conditions in general. Geopolitical tensions, such as Russia's incursion into Ukraine, tension between the United States and China, enhanced conflict in the Middle East, economic sanctions, the volatility of oil prices, heightened concerns about cyber-attacks, inflation and hyper-inflation have resulted in market volatility and higher interest rates, increasing global tensions and growing uncertainty for global commerce and instability in the global capital markets. Sustained or worsening of these and other global economic conditions and increasing geopolitical tensions may negatively impact our business, results of operations, financial condition and prospects.

***Adverse economic factors, including recession, inflation, periods of high unemployment or lower economic activity could result in the sale of fewer policies than expected or an increase in the frequency of claims and premium defaults, and even the falsification of claims or a combination of these effects, which, in turn, could affect our growth and profitability.***

Factors such as business revenue, economic conditions, the volatility and strength of the capital markets, trade disputes, including the imposition of new or increased tariffs, and inflation can affect our business and the economic environment. These same factors affect our ability to generate revenue and profits. In an economic downturn that is characterized by higher unemployment, declining spending and reduced corporate revenue, the demand for insurance products is generally adversely affected, which directly affects our premium levels and profitability. Negative economic factors may also affect our ability to receive the appropriate rate for the risk we insure with our policyholders and may adversely affect the number of policies we can write, and our opportunities to underwrite profitable business. In an economic downturn, our policyholders may have less need for insurance coverage, may cancel existing insurance policies, modify their coverage or not renew the policies they hold with us. Existing policyholders may exaggerate or even falsify claims to obtain higher claims

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payments. In addition, if certain segments of the economy, such as the construction or energy production and servicing segments (which would affect several of the industries we serve at one time) were to significantly decline, it could adversely affect our results. These outcomes may materially adversely affect our business, results of operations, financial condition, and prospects.

***We maintain cash, cash equivalents and investments at financial institutions and are exposed to credit risk in the event of default by such financial institutions.***

We maintain cash, cash equivalents and investments, including funds held in a fiduciary capacity, with various global financial institutions. Following the U.S. regional banking volatility in March 2023, we transferred all deposits in excess of the FDIC limit from First Republic Bank to PNC Financial Services Group, Inc. We are exposed to credit risk in the event of default by financial institutions to the extent that cash balances with individual financial institutions are in excess of amounts that are insured. If such institutions were to fail, we could lose all or a portion of amounts held in excess of any such insurance limits. Any material loss that we may experience in the future as a result could additionally have an adverse effect on our ability to pay or could temporarily or permanently delay payments of our operational expenses and other payments, including in connection with any dividends we elect to pay, payments to our vendors and employees and cause other operational impacts.

***Performance of our investment portfolio is subject to a variety of investment risks that may adversely affect our financial results.***

Our results of operations depend, in part, on the performance of our investment portfolio, which includes investments in high-grade debt securities and investments in private equity funds focused on insurance technology ventures and in certain MGAs that form part of our distribution network. We seek to hold a diversified portfolio of high-quality investments that is managed by professional investment advisory management firms in accordance with the risk appetite of our Board of Directors (the "Board of Directors"), and with our investment guidelines, which is routinely reviewed by our Investment Committee. However, our investments are subject to general economic conditions and market risks as well as risks inherent to specific securities. Our primary market risk exposures are to changes in interest rates and pricing of equities and bonds.

In recent years, interest rates have been at or near historic lows, however, during the year ended December 31, 2023 and through June 2024, interest rates have risen or remained at elevated levels. In September, November and December 2024, the U.S. Federal Reserve cut interest rates. Should rates continue to decline, including in a reversal of monetary policy actions taken in recent years by the U.S. Federal Reserve to slow inflation, a low interest rate environment could place pressure on our net investment income, particularly as it relates to these securities and short-term investments, which, in turn, may adversely affect our operating results. Recent and future increases in interest rates could cause the values of our fixed maturity securities portfolios to decline, with the magnitude of the decline depending on the duration of securities included in our portfolio and the amount by which interest rates increase. Some fixed income securities have call or prepayment options, which create possible reinvestment risk in declining rate environments. Other fixed income securities, such as residential mortgage-backed, commercial mortgage-backed and other asset-backed securities in which we hold investments carry prepayment risk or, in a rising interest rate environment, may not prepay as quickly as expected.

All of our fixed maturity securities, including those held in separately managed accounts are subject to credit risk. Credit risk is the risk that certain investments may default or become impaired due to deterioration in the financial condition of one or more issuers of the securities we hold, or due to deterioration in the financial condition of an insurer that guarantees an issuer's payments on such investments. Downgrades in the credit ratings of fixed maturity securities (where rated) could also have a significant negative effect on the market valuation of such securities.

The above market and credit risks could reduce our net investment income and result in realized investment losses. Our investment portfolio is subject to increased valuation uncertainties when investment markets are

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illiquid, as is the case with our fixed maturity securities held to maturity and separately managed accounts. The valuation of investments is more subjective when markets are illiquid, thereby increasing the risk that the estimated fair value (i.e., the carrying amount) of the securities we hold in our portfolio do not reflect prices at which actual transactions would occur.

Risks for all types of securities are managed through the delegation of Board Risk Appetite and the application of our investment guidelines, which establishes investment parameters that include but are not limited to, maximum percentages of investments in certain types of securities and minimum levels of credit quality, which are within applicable guidelines established by the NAIC and applicable insurance regulatory authorities. In addition, on a quarterly basis our Investment Committee reviews our Enterprise Based Asset Allocation models to assist in overall risk management.

Although we seek to preserve our capital, we cannot be certain that our investment objectives will be achieved, and results may vary substantially over time. In addition, although we seek to employ investment strategies that are not correlated with our insurance and reinsurance exposures, losses in our investment portfolio may occur at the same time as underwriting losses and, therefore, exacerbate the adverse effect of the losses on us.

***We could be forced to sell investments to meet our liquidity requirements.***

We invest the premiums we receive from our insureds until they are needed to pay policyholder claims. Consequently, we seek to manage the duration of our investment portfolio based on the duration of our losses and LAE reserves to provide sufficient liquidity and avoid having to liquidate investments to fund claims. Risks such as inadequate losses and LAE reserves or unfavorable trends in litigation could potentially result in the need to sell investments to fund these liabilities. We may not be able to sell our investments at favorable prices or at all. Sales could result in significant realized losses depending on the conditions of the general market, interest rates and credit issues with individual securities, which could create losses that impact capital or otherwise reduce the effective yield on our investment.

***Our inability to successfully recover from a disaster or other business continuity problem, should we suffer from such an event, could cause material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability.***

Our operations are dependent upon our ability to protect our personnel and technology infrastructure against damage from business continuity events that could have a significant disruptive effect on our operations. Should we experience a local or regional disaster or other business continuity problem, such as a security incident or attack, a natural disaster, climate event, terrorist attack, civil unrest, pandemic, power loss, telecommunications failure, or other natural or man-made disaster, our continued success will depend, in part, on the availability of our personnel and the proper functioning of computer systems, telecommunications, and other related systems and operations. In events like these, while our operational size and our existing backup systems provide us with some degree of flexibility, we still can experience near-term operational challenges in particular areas of our operations. We could potentially lose access to key executives, personnel or Members data or experience material adverse interruptions to our operations or delivery of services to our Members in a disaster recovery scenario. A disaster on a significant scale or affecting certain of our key employees, or our inability to successfully recover should we experience a disaster or other business continuity problem, could materially interrupt our business operations and cause material financial loss, loss of human capital, regulatory actions, reputational harm, damaged relationships with our Members, or legal liability. We have certain disaster recovery procedures in place and insurance to protect against such contingencies. However, such procedures may not be effective and any insurance or recovery procedures may not continue to be available at reasonable prices and may not address all such losses.

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***We depend on the ability of certain of our subsidiaries to transfer funds to us to meet our obligations, and the ability of our insurance company subsidiaries to pay dividends to us is restricted by law.***

We are a holding company that transacts the majority of our business through operating subsidiaries. Our ability to meet our operating and financing cash needs depends on the surplus and earnings of our subsidiaries, and upon the ability of our insurance subsidiaries to pay dividends to us. Payments of dividends by our insurance company subsidiaries depends on their ability to meet applicable regulatory standards and receive regulatory approvals, and are restricted by state and other insurance laws, including laws establishing minimum solvency and liquidity thresholds. In addition, our insurance subsidiaries could be subject to contractual restrictions in the future, including those imposed by indebtedness we may incur in the future. Our insurance subsidiaries may also face competitive pressures in the future to maintain insurance financial stability or strength ratings. These restrictions and other regulatory requirements would affect the ability of our insurance subsidiaries to make dividend payments and we may not receive dividends in the amounts necessary to meet our obligations.

***We will need to raise***  ***additional***  ***financing***  ***to fund our working capital needs and maintain regulatory compliance or consummate potential future acquisitions. Additional financing may not be available on***  ***acceptable***  ***terms, or at all. Failure to obtain additional capital may force us to limit or terminate our operations****.* 

Even if we sell all of the Class A common shares offered by us in this offering the expected net proceeds of this offering may not be sufficient for us to fund the working capital and maintain the statutory capital requirements of our business. We may continue to seek funding through equity or debt financings, collaborative or other arrangements, or through other sources of financing. Additional funding may not be available to us on acceptable terms, or at all. Any failure to raise capital as and when needed would have a material adverse impact on our business, results of operations, financial condition and prospects and on our ability to pursue our business plans and strategies.

***If we cannot maintain the valuable aspects of our culture as we grow, our business may be harmed.***

We believe that our culture, including our management philosophy, has been a critical component to our success and that our culture creates an environment that drives and perpetuates our overall business strategy. We have invested substantial time and resources in building our team, and we expect to continue to hire aggressively as we expand in both the United States and internationally. As we grow and mature as a public company and grow internationally, we may find it difficult to maintain the valuable aspects of our culture.

Furthermore, our operations are conducted by a fully remote workforce that we believe is instrumental to maintaining our culture. However, failure to preserve our culture could harm our future success, including our ability to retain and recruit personnel, innovate and operate effectively and execute our business strategy. If we are unsuccessful in recruiting, hiring, training, managing and integrating new employees, or retaining our existing employees, or if we fail to preserve the valuable aspects of our culture, it could materially impair our ability to service and attract new Members and risk capital partners, all of which would materially and adversely affect our business, results of operations, financial condition and prospects.

**Risks Related to Our Technology and Intellectual Property** 

***If we are unable to leverage our information systems to enhance the information benefits available to our Members and risk capital partners through our Risk Exchange, our results may be adversely affected.***

To leverage our underwriting knowledge in providing information services to our Members, we must continue to implement and enhance information systems that can analyze data to provide information useful to our Risk Exchange Members. This may require frequent upgrades to the Risk Exchange and updating other information systems that we rely upon in providing our services. Delays or other problems we might encounter in implementing these upgrades and updates could adversely affect our ability to deliver timely information to our

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Members, which may result in them reducing the amount of premium placed through our Risk Exchange, which would adversely affect our business, results of operations, financial condition, and prospects.

***Our future success depends on our ability to continue to develop and implement technology, and to maintain the confidentiality of this technology.***

Our future success depends on our ability to continue to develop, implement, and maintain the confidentiality of our proprietary technology. For example, we are continuing to develop our cloud-native, digital platform that offers Risk Exchange participants a single, secure place to operate. We expect that as AI-driven technology and services gain market acceptance in the insurance industry, new competitors will arise. Changes to existing laws, their interpretation or implementation, or the introduction of new laws could impede our use of this technology or require that we disclose our proprietary technology to our competitors, which could negatively impact our competitive position and result in a material adverse effect on our business, results of operations, financial condition and prospects. In most jurisdictions, government regulatory authorities have the power to interpret and amend laws and regulations applicable to the processing of data. Such authorities may require us to incur substantial costs to comply with such laws and regulations. Regulatory statutes are broad in scope and subject to differing interpretation. In some areas of our business, we act on the basis of our own or the industry's interpretations of applicable laws or regulations, which may conflict from jurisdiction to jurisdiction. In the event those interpretations eventually prove different from the interpretations of regulatory authorities, we may be penalized or precluded from carrying on our previous activities. Our E&O insurance coverage covering certain security and privacy damages and claim expenses may not be sufficient to compensate for all liabilities we may incur.

***Loss of key vendor relationships or failure of a vendor to protect our data, confidential and proprietary information could adversely affect our operations.***

We rely on services and products provided by many vendors in the United States and abroad. These include, for example, vendors of computer hardware and software, and vendors and/or outsourcing of services such as claim adjustment services and investment management services. In the event that any vendor suffers a bankruptcy or otherwise becomes unable to continue to provide products or services, or fails to protect our confidential, proprietary, and other information, we may suffer operational impairments and financial losses. In addition, while we generally monitor vendor risk, including the security and stability of our critical vendors, we may fail to properly assess and understand the risks and costs involved in the third-party relationships, and our financial condition and results of operations could be materially and adversely affected.

We anticipate that we will continue to rely on third-party software in the future. Although we believe that there are commercially reasonable alternatives to the third-party software we currently license, this may not always be the case, or it may be difficult or costly to replace. In addition, integration of new third-party software may require significant work and require substantial investment of our time and resources. Use of additional or alternative third-party software would require us to enter into license agreements with third parties, which may not be available on commercially reasonable terms or at all. Many of the risks associated with the use of third-party software cannot be eliminated, and these risks could negatively affect our business.

***Failure to obtain, maintain, protect, defend, or enforce our intellectual property rights, or allegations that we have infringed, misappropriated or otherwise violated the intellectual property rights of others, could harm our reputation, ability to compete effectively, business, and financial condition.***

Our success and ability to compete depends in part on our ability to obtain, maintain, protect, defend, and enforce our intellectual property. To protect our intellectual property rights, we rely on a combination of trademark laws, copyright laws, trade secret protection, confidentiality agreements and other contractual arrangements with our affiliates, employees, Members, strategic partners and others, as well as internal policies and procedures regarding our management of intellectual property. However, the protective steps that we take may be inadequate to deter misappropriation of our proprietary information, and any infringement,

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misappropriation or dilution of our intellectual property could materially and adversely harm our business. In addition, we may be unable to detect the unauthorized use of, or take appropriate steps to enforce, our intellectual property rights. Further, we operate in many foreign jurisdictions and effective trademark, copyright, and trade secret protection may not be available in every country or jurisdiction in which we offer our services. Policing unauthorized use of our intellectual property is difficult, expensive, and time-consuming, and we may be required to spend significant resources to monitor and protect our intellectual property rights.

Failure to protect our intellectual property adequately could harm our reputation and affect our ability to compete effectively. Although our important brand names, including "Accelerant" and "Mission Underwriters" are registered or we intend to register for trademark protection, our competitors and other third parties may misappropriate our intellectual property. In addition, even if we initiate litigation against third parties, such as suits alleging infringement, misappropriation, or other violation of our intellectual property, we may not prevail. Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management. Our efforts to enforce our intellectual property rights may be met with defenses, counterclaims, and countersuits attacking the validity and enforceability of our intellectual property rights. Additionally, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation. An adverse determination of any litigation proceedings could put our intellectual property at risk of being invalidated or interpreted narrowly and could put our related intellectual property at risk of not issuing or being cancelled. There could also be public announcements of the results of hearings, motions, or other interim proceedings or developments. If securities analysts or investors perceive these results to be negative, it could have a material adverse effect on the price of our Class A common shares. Any of the foregoing could adversely affect our business, results of operations, financial condition, and prospects.

We operate in many foreign jurisdictions and effective trademark, copyright, and trade secret protection may not be available in every country or jurisdiction in which we offer our services. Failure to protect our intellectual property adequately could harm our reputation and affect our ability to compete effectively.

Meanwhile, third parties may assert intellectual property-related claims against us, including claims of infringement, misappropriation, or other violation of their intellectual property, which may be costly to defend, could require the payment of damages, legal fees, settlement payments, royalty payments, and other costs or damages, including treble damages if we are found to have willfully infringed certain types of intellectual property, and could limit our ability to use or offer certain technologies, products, or other intellectual property. Any intellectual property claims, including a cease-and-desist letter we have received regarding the right to use the mark Risk Exchange, with or without merit, could be expensive, take significant time and divert management's resources, time, and attention from other business concerns. Moreover, other companies, including our competitors, may have the capability to dedicate substantially greater resources to enforce their intellectual property rights and to defend claims that may be brought against them. Successful challenges against us could require us to modify or discontinue our use of technology or business processes where such use is found to infringe, misappropriate, or otherwise violate the rights of others, or require us to purchase costly licenses from third parties, which may not be available on commercially reasonable terms, or at all. Even if a license is available to us, it could be non-exclusive thereby giving our competitors and other third parties access to the same technologies licensed to us, and we may be required to pay significant upfront fees, milestone payments or royalties, which would increase our operating expenses. Any of the foregoing could adversely affect our business, results of operations, financial condition, and prospects.

We rely on the use of credit scoring in pricing and underwriting certain of our insurance policies by Accelerant's owned insurance companies and reinsurance companies, and any legal or regulatory requirements that restrict our ability to access credit score information could decrease the accuracy of our pricing and underwriting process and thus decrease our profitability.

We use credit scoring as a factor in pricing and underwriting decisions where allowed by state law. Consumer groups and regulators have questioned whether the use of credit scoring unfairly discriminates against

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some groups of people and are calling for laws and regulations to prohibit or restrict the use of credit scoring in underwriting and pricing. Laws or regulations that significantly curtail or regulate the use of credit scoring, if enacted in a large number of states in which we operate, could impact the integrity of our pricing and underwriting processes, which could, in turn, materially and adversely affect our business, financial condition, results of operations and prospects, and our profitability over time.

***Our employees could take excessive risks, which could negatively affect our financial condition and business.***

Our Underwriting segment is in the business of binding certain risks. The employees who conduct our business, including executive officers and other members of management, underwriters, product managers and other employees, do so in part by making decisions and choices that involve exposing us to risk. These include decisions such as setting underwriting guidelines and standards, product design and pricing, determining which business opportunities to pursue, and other decisions. We endeavor, in the design and implementation of our compensation programs and practices, to avoid giving our employees incentives to take excessive risks. Employees may, however, take such risks regardless of the structure of our compensation programs and practices. Similarly, although we employ controls and procedures designed to monitor employees' business decisions and prevent them from taking excessive risks, these controls and procedures may not be effective. If our employees take excessive risks, the impact of those risks could have a material adverse effect on our financial condition and business operations.

***Future acquisitions or investments contain inherent strategic, execution, and compliance risks that could disrupt our business and harm its financial condition.***

We may pursue acquisitions or investments to grow our business or as part of the MGA Operations segment's efforts to capture the economics of select Members. There is no guarantee that these acquisitions or investments will achieve the desired return sought. These acquisitions or investments could also cause additional risk due to the liabilities or unforeseen expenses that such acquisitions or investments may bring, such as higher-than-expected costs due to market competition for the acquisition/investment, regulatory approval requirements, delays in implementation, lost opportunities that could have been pursued with cash being used for other purposes, litigation or regulatory enforcement post-acquisition or investment, contingent liabilities, implementation cost, misalignment of culture, loss of technology through theft or trade secrets exchanged, loss of key partners/vendors, currency exchange rate for foreign investment, timing within overall economic environment, carrying costs, and tax liabilities. Additionally, the risks from future acquisitions or investments could result in impairment charges against goodwill or increases in the liabilities on our consolidated balance sheet, as well as missed earnings results.

***Our business and operations could suffer in the event of a system or information security failure or in the event that we are the target of a cyberattack.***

We utilize information technology systems and networks to process, transmit, and store electronic information in connection with our business activities. As use of digital technologies has increased, cyber incidents, including deliberate attacks and attempts to gain unauthorized access to computer systems and networks, have increased in frequency and sophistication. These threats pose a risk to the security of our systems and networks and the confidentiality, availability, and integrity of our data. The Company's Chief Information Security Officer ("CISO") has primary responsibility over the Company's cybersecurity and cyber risk management, which includes implementing a company-wide information security strategy and program. The CISO provides reports of key metrics and related updates to our Board of Directors on a quarterly basis and more frequently as and when required. There can be no assurance that we will be successful in preventing cyber-attacks or successfully mitigating their effects.

Despite the implementation of security measures, our internal computer systems, and those of our vendors, are vulnerable to damage from cyber-attack, computer viruses, unauthorized access, natural disasters, terrorism, war,

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and telecommunication and electrical failures. Furthermore, our personal or other sensitive information or systems could be exposed or subject to attack as a result of breaches of our security measures and computer systems or those of our vendors. Any such system failure, accident, or security breach could cause interruptions in our operations, including the availability of our Risk Exchange or result in a material disruption of our operations. Additionally, a data security incident could also lead to public exposure of personal information and result in harm to our reputation and business, compel us to comply with federal and state breach notification laws and foreign law equivalents including the EU GDPR and/or the UK GDPR, subject us to investigations and mandatory corrective action, or otherwise subject us to liability under laws and regulations that protect the privacy and security of personal information, which could disrupt our business, result in increased costs or loss of revenue, and/or result in significant financial exposure. Furthermore, the costs of maintaining or upgrading our cybersecurity systems (including the recruitment and retention of experienced information technology professionals, who are in high demand) at the level necessary to keep up with our expanding operations and prevent against potential attacks are increasing, and despite our best efforts, our network security and data recovery measures and those of our third-party service providers may still not be adequate to protect against such security breaches and disruptions, which could cause material harm to our business, financial condition and results of operations.

**Risks Related to Legal and Regulatory Requirements** 

***Our businesses are subject to significant governmental regulation, changes in which could reduce our profitability, limit our growth, or increase competition.***

Our businesses are subject to legal and regulatory oversight throughout the world, including by U.S. state insurance regulators, Belgian insurance regulators, the National Bank of Belgium (the "NBB"), the Financial Services and Markets Authority, insurance regulators throughout the European Economic Area (the "EEA"), under the Belgian Code of Companies and Associations, the Belgian Act of March 13, 2016 on the Status and Supervision of Insurance and Reinsurance Undertakings, under the UK Companies Act and the rules and regulations promulgated by the Financial Conduct Authority (the "FCA") and the Prudential Regulation Authority (the "PRA"), the Foreign Corrupt Practices Act of 1977 (the "FCPA") in the U.S., the Bribery Act of 2010 in the UK, the Corruption of Foreign Public Officials Act of 1999 (as amended) in Canada and a variety of other laws, rules and regulations addressing, among other things, licensing, data privacy and protection, cybersecurity, AI, anti-corruption, wage and hour standards, employment and labor relations, sanctions, anti-competition, and anticorruption. Maintaining compliance with these legal and regulatory oversight schemes as they evolve could reduce our profitability or limit our growth by: increasing the costs of legal and regulatory compliance; limiting or restricting the products or services we sell, the markets we serve or enter, the methods by which we sell our products and services, the prices we can charge for our services, or the form of compensation we can accept from our risk capital partners; or by subjecting our businesses to the possibility of legal and regulatory actions or proceedings.

Certain of our businesses are subject to compliance with laws and regulations enacted by U.S. federal and state governments, the EEA/UK or other jurisdictions or enacted by various regulatory organizations or exchanges relating to the privacy and security of the personal information of employees or others (for example, the California Consumer Privacy Act, The New York State Department of Financial Services' cybersecurity regulation, the EU General Data Protection Regulation, the UK Data Protection Act 2018 and the Personal Information Protection and Electronic Documents Act in Canada). See "Business—Regulation" for more information regarding applicable privacy regulations.

In addition, we established a subsidiary in Puerto Rico that owns and operates our Risk Exchange. Though it is not currently subject to specific regulatory oversight as a broker or insurer, it is possible that may change, in which case we would become subject to further regulations that could cause us to alter or curtail our activities, or require additional expenditures for compliance purposes.

The variety of applicable privacy and information security laws and regulations exposes us to heightened regulatory scrutiny, requires us to incur significant technical, legal and other expenses in an effort to ensure and

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maintain compliance and will continue to impact our business in the future by increasing legal, operational and compliance costs. While we have taken steps to comply with privacy and information security laws, we cannot guarantee that our efforts will meet the evolving standards imposed by data protection and other regulatory authorities. If we are found not to be in compliance with these privacy and security laws and regulations, we may be subject to additional potential private consumer, business partner or securities litigation, regulatory inquiries, and governmental investigations and proceedings, regulatory sanctions, and we may incur damage to our reputation. Any such developments may subject us to material fines and other regulatory penalties and/or civil and criminal liability, including in some jurisdictions, personal liability for individual members of management and other individuals in leadership roles, may divert management's time and attention, and lead to enhanced regulatory oversight, any of which could have a material adverse effect on our business, results of operations, financial condition, reputation, and liquidity. Additionally, we expect that developments in privacy and cybersecurity worldwide will increase the financial and reputational implications in the event of a significant breach of our or our third-party suppliers' information technology systems.

There has also been increased scrutiny, including from regulators, regarding the use of algorithms, AI, diligence of data sets, oversight of data vendors, and other "big data" techniques such as using "big data" to set product pricing. Our ability to procure and use data to gain insights into and manage our business may be limited in the future by regulatory scrutiny regarding "big data." Moreover, regulators are increasing scrutiny and considering regulation of the use of AI technologies. We cannot predict what, if any, actions may be taken with regard to "big data," but such developments could impact our operations, increase legal risk or reputational harm or have a material adverse effect on our business, results of operations and financial condition. Our acquisitions of, and investments in, new businesses and our continued operational changes and entry into new jurisdictions and new service offerings increase our legal and regulatory compliance complexity, as well as the type of governmental oversight to which we may be subject.

Our continuing ability to provide insurance and underwriting services in the jurisdictions in which we operate depends on our compliance with the rules and regulations promulgated from time to time by the regulatory authorities in each of these jurisdictions. Also, we can be affected indirectly by the governmental regulation and supervision of insurance companies. For instance, if we are providing managing general underwriting services for an insurer, we may have to contend with regulations affecting that insurer.

***As we continue to grow our Member base, we anticipate expanding into new geographies that could give rise to additional regulatory, risk and other issues, which may materially affect our business, results of operations, financial condition and prospects.***

As we continue to grow our Member base, we will have to devote resources to identifying and exploring these perceived opportunities. To the extent these new Members are in new geographies, we may also have to acquire any necessary operational licenses and governmental approvals to operate our Risk Exchange or otherwise engage with Members in those geographies. In addition, we will be required to comply with laws and regulations of jurisdictions that may differ from the ones in which we currently operate. We anticipate that further geographic expansion of our Members and our Risk Exchange will give rise to additional regulatory, risk and other issues. There also can be no assurance that we would be able to successfully expand our operations in any new geographic markets.

In particular, we have recently expanded into the Canadian market by the acquisition of a licensed insurance entity. We have set up the requisite infrastructure to begin Canadian operations. Expansion to include Members located and to operate our Risk Exchange in Canada requires oversight from the Office of the Superintendent of Financial Institutions and the federal Minster of Finance, as well as coordination with each of the ten provinces and three territories in Canada that each regulate market conduct within their own province and territory. Compliance with these additional laws and regulations, as well as Canadian oversight related to personal information protection and data privacy has resulted in a substantial investment of time from our senior management, capital and other resources. This, along with similar experiences in other jurisdictions in the future, may materially and adversely affect our business, results of operations, financial condition and prospects.

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***Our insurance and reinsurance company subsidiaries and agency subsidiaries are subject to extensive regulation, which may adversely affect our ability to operate and achieve our business objectives. In addition, if we fail to comply with these regulations, we may be subject to penalties, including fines and suspensions, which may adversely affect our results of operations and financial condition.***

We are subject to the insurance laws and regulations in a number of jurisdictions worldwide. Existing laws and regulations, among other things, limit the amount of dividends and capital that can be paid to us by our reinsurance subsidiaries, prescribe solvency and capital adequacy standards, impose restrictions on the amount and type of investments that can be held to meet solvency and capital adequacy requirements, require the maintenance of reserve liabilities, impact our corporate governance, restrict our market conduct practices, and require pre-approval of acquisitions, reinsurance transactions and certain affiliate transactions. Failure to comply with these laws and regulations, make any required notifications, or maintain appropriate authorizations, licenses, and/or exemptions under applicable laws and regulations may cause governmental authorities to preclude or suspend our insurance or reinsurance subsidiaries from carrying on some or all of their activities, place one or more of them into rehabilitation or liquidation proceedings, impose monetary penalties or other sanctions on them or our affiliates, or commence insurance company delinquency proceedings against our insurance or reinsurance subsidiaries. The application of these laws and regulations by various governmental authorities may affect our liquidity and restrict our ability to expand our business operations through acquisitions or to pay dividends on our common shares, including our Class A common shares. Furthermore, compliance with legal and regulatory requirements is likely to result in significant expenses, which could have a negative impact on our profitability. To further understand these regulatory requirements, see "Business—Regulation." In some instances, where there is uncertainty as to applicability of laws and regulations, we follow practices based on our interpretations of regulations or practices that we believe generally to be followed by the industry. These practices may turn out to be different from the interpretations of regulatory authorities.

Our U.S. insurance subsidiaries are subject to risk-based capital ("RBC") requirements, based upon the "risk-based capital model" adopted by the NAIC, and other minimum capital and surplus restrictions imposed under Arkansas, Delaware and Puerto Rico law. These requirements establish the minimum amount of RBC necessary for a company to support its overall business operations. It identifies P&C insurers that may be inadequately capitalized by looking at certain inherent risks of each insurer's assets and liabilities and its mix of net written premium. Insurers falling below a calculated threshold may be subject to varying degrees of regulatory action, including supervision, rehabilitation or liquidation. Failure to maintain our RBC at the required levels could cause insurance regulators to intervene in the management of our business and, ultimately, adversely affect the ability of our insurance subsidiaries to maintain regulatory authority to conduct our business and our A.M. Best rating.

The applicable regulators in the UK and EEA expect firms to avoid actions that jeopardize compliance with their statutory objectives and applicable rules and regulations and have extensive powers to intervene in the affairs of a regulated firm. When a regulator in either the UK or the EEA is concerned that an insurer may present a risk, this may lead to negative consequences, including the requirement to maintain a higher level of regulatory capital (via capital "add-ons" under the Solvency II Directive (as defined below)) to match the higher perceived risks and enforcement action where the risks identified breach applicable rules and regulations. In the case of a breach of our license requirements or obligations arising from the applicable rules and regulations, we may be subject to regulatory sanctions, including (public) formal warnings, orders to adopt a certain course of conduct, incremental penalties and administrative fines, revocation of an undertaking license and, in the case of insurers, where the breach relates to material prudential shortcomings, emergency measures (including the appointment of an administrator or the imposition of measures aimed at winding-up the undertaking). Any such events could adversely affect our business, results of operations, or financial condition.

Our Canadian insurance subsidiary is regulated at both the federal and provincial/territorial level under regulation and supervisory requirements which, among other things, require it to maintain an adequate amount of capital (calculated in accordance with the minimum capital test). The Insurance Companies Act of Canada provides

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the Superintendent of Financial Institutions with a range of discretionary intervention powers which may be exercised over an insurance company subject to its jurisdiction, including the power to require enhanced supervision, increase capital, restrict select business operations, order the development of a contingency plan and ultimately assume control of an insurance company in circumstances the Superintendent deems warrant such action.

In the Cayman Islands, our reinsurance subsidiary is subject to minimum capital and surplus requirements and must adhere to a range of legislative and regulatory requirements. A failure to meet these requirements could subject the reinsurer to, among others, increased regulatory scrutiny, a requirement to take steps to rectify any area(s) of non-compliance, the removal of a director, a suspension of license and the appointment of a receiver or person to assume control of its affairs.

We believe it is likely there will continue to be regulatory intervention in our industry in the future, and these initiatives could adversely affect our business. Additional laws and regulations have been and may continue to be enacted that may have adverse effects on our operations, financial condition, statutory capital adequacy, and liquidity. We cannot predict the exact nature, timing or scope of these initiatives; however, we believe it is likely that there will continue to be increased regulatory intervention in our industry in the future, and these initiatives could adversely affect our ability to operate our business.

For additional information regarding insurance laws and regulations that we are subject to, see "Business—Regulation."

***Our business is subject to risks related to legal proceedings and governmental inquiries.***

We are subject to litigation, regulatory, and other governmental investigations and claims arising in the ordinary course of our business operations. The risks associated with these matters often may be difficult to assess or quantify and the existence and magnitude of potential claims often remain unknown for substantial periods of time. While we have insurance coverage for some of these potential claims, others may not be covered by insurance, insurers may dispute coverage, or any ultimate liabilities may exceed our coverage. We may be subject to actions and claims relating to the sale of insurance or our other operations, including the suitability of such products and services. Actions and claims may result in the rescission of such sales; consequently, our Members and risk capital partners may seek to recoup commissions or other compensation paid to us, which may lead to legal action against us. The outcome of such actions cannot be predicted, and such claims or actions could have a material adverse effect on our business, results of operations, financial condition, and prospects.

We must comply with and are affected by various laws and regulations, as well as regulatory and other governmental investigations, that impact our operating costs, profit margins and our internal organization and operation of our business. The insurance industry has been subject to a significant level of scrutiny by various regulatory and governmental bodies, including state attorneys general offices and state departments of insurance, concerning certain practices within the insurance industry. These practices include, without limitation, the receipt of supplemental and contingent commissions by insurance brokers and agents from insurance companies and the extent to which such compensation has been disclosed, the collection of broker fees, which we define as fees separate from commissions charged directly to Members for efforts performed in the issuance of new insurance policies, bid rigging and related matters. From time to time, our subsidiaries receive informational requests from governmental authorities.

There have been a number of revisions to existing laws as well as or proposals to modify or enact new laws and regulations regarding insurance agents and brokers. These actions have imposed in the past, and may continue to impose, additional obligations on our ability to receive fees that are based on the volume, consistency, and profitability of business that we generate.

We cannot predict the impact that any new laws, rules, or regulations may have on our business, results of operations, financial condition, and prospects. Given the current regulatory environment and the number of our subsidiaries operating in local markets throughout the U.S. and abroad, it is possible that we will become subject

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to further governmental inquiries and subpoenas and have lawsuits filed against us. Regulators may raise issues during investigations, examinations or audits that could, if determined adversely, have a material impact on us. The interpretations of regulations by regulators may change and statutes may be enacted with retroactive impact. We could also be materially adversely affected by any new industrywide regulations or practices that may result from these proceedings.

Our involvement in any investigations and lawsuits would cause us to incur additional legal and other costs and, if we were found to have violated any laws, we could be required to pay fines, damages and other costs, perhaps in material amounts. Regardless of final costs, these matters could have a material adverse effect on us by exposing us to negative publicity, reputational damage, harm to relationships with our Members, or diversion of personnel and management resources.

***We are subject to a number of, and may in the future be subject to, E&O claims as well as other contingencies and legal proceedings which, if resolved unfavorably to us, could have an adverse effect on our results of operations.***

We assist our Members with various insurance-related matters, including providing access to capacity, overseeing claims arising under policies issued by that capacity, and facilitating reinsurance placements. E&O claims against us may result in potential liability for damages arising from these services. E&O claims could include, for example, the failure of our employees or sub-agents, whether negligently or intentionally, to properly exercise our delegated authority to underwrite or bind coverage, issue policies or other documents or provide proper notices to insureds, as well as properly exercise our delegated authority to handle claims. In addition, we are subject to other types of claims, litigation, and proceedings in the ordinary course of business, which along with E&O claimants may seek damages, including punitive damages, in amounts that could, if awarded, have a material adverse impact on our financial position, earnings and cash flows. In addition to potential liability for monetary damages, such claims or outcomes could harm our reputation or divert management resources away from operating our business.

We have historically purchased, and continue to purchase, insurance to cover E&O claims to provide protection against certain losses that arise in such matters. As of March 31, 2025, our group E&O insurance policy (also known as Professional Indemnity) tower has a $10 million limit in the aggregate, and we are responsible for paying a self-insured retention of up to $1 million per claim for claims brought in the U.S. and Canada, and $250 thousand per claim for claims brought in the rest of the world. We purchase a Technology E&O insurance policy for the group with an aggregate limit of $10 million per claim with a $50 thousand retention. In addition, due to regulatory requirements in specific countries, we purchase local E&O insurance policies in certain jurisdictions. This includes a policy for Accelerant Agency (Canada) Ltd., with a CAD $6 million limit in the aggregate with a self-insured retention of up to CAD $50 thousand per claim for claims brought in Canada. We purchase a local policy in Ireland for Accelerant Agency Limited, with a $2 million (£1.55 million) limit in the per claim and $5 million (£3.87 million) in the aggregate. We are responsible for paying a self-insured retention of up to $250 thousand (£193 thousand) per claim. We also purchase a local policy in the UK for Accelerant Agency Limited UK Branch with a $7 million (£5.4 million) limit in the aggregate with a $2 million (£1.55 million) limit per claim. We are responsible for paying a self-insured retention of up to $250 thousand (£193 thousand) per claim for claims brought in the United Kingdom. If we exhaust or materially deplete our coverage under our E&O policy, it could have a material adverse effect on our financial condition. Accruals for these exposures, when applicable, have been recorded to the extent that losses are deemed probable and are reasonably estimable. These accruals are adjusted from time to time as developments warrant and may also be adversely affected by disputes we may have with our insurers over coverage.

***Proposed tort reform legislation, if enacted, could decrease demand for casualty insurance, thereby reducing our commission revenues.***

Legislation concerning tort reform has been considered, from time to time, in the United States Congress and in several state legislatures. Among the provisions considered in such legislation have been limitations on

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damage awards, including punitive damages, and various restrictions applicable to class action lawsuits. Enactment of these or similar provisions by Congress, or by states in which we sell insurance, could reduce the demand for casualty insurance policies or lead to a decrease in policy limits of such policies sold, thereby reducing our commission revenues.

***Because we are a holding company and some of our operations are conducted by our insurance subsidiaries, our ability to achieve liquidity at the holding company, including the ability to pay dividends and service our debt obligations, to a limited extent, depends, in part, on our ability to obtain cash dividends or other permitted payments from our insurance subsidiaries.***

The continued operation and growth of our business will require substantial capital. Accordingly, we do not intend to declare and pay cash dividends on our common shares in the foreseeable future. Because we are a holding company with no business operations of our own, our ability to pay dividends to shareholders and meet our debt payment obligations is dependent upon dividends and other distributions from our subsidiaries. With respect to our insurance carrier subsidiaries, U.S. state insurance laws, including the laws of Arkansas and Delaware, restrict the ability of ASIC and ANIC to determine how we declare shareholder dividends. State insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus. Dividend payments are further limited to that part of available policyholder surplus that is derived from net profits on our business. State insurance regulators have broad powers to prevent the reduction of statutory surplus to levels that regulators consider to be inadequate, and there is no assurance that dividends up to the maximum amounts calculated under any applicable formula would be permitted. Moreover, state insurance regulators that have jurisdiction over the payment of dividends by our insurance subsidiaries may in the future adopt statutory provisions more restrictive than those currently in effect. In addition, dividends and other distributions from our subsidiaries may be subject to incremental income or withholding taxes, which may reduce the amount of cash available for distribution to our shareholders.

Our carriers located in jurisdictions outside the United States are similarly restricted under local law in their ability to pay dividends.

Any determination to pay dividends in the future will be at the discretion of our Board of Directors and will depend upon results of operations, financial condition, contractual restrictions pursuant to our debt agreements, our indebtedness, restrictions imposed by applicable law, and other factors our Board of Directors deems relevant, and, as noted above will be subject to regulatory oversight. Consequently, investors may need to sell all or part of their holdings of our Class A common shares after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking immediate cash dividends should not purchase our Class A common shares.

***Regulations affecting insurance carriers with which we place business impact how we conduct our operations.***

Insurers are also heavily regulated by state insurance departments for solvency issues, reserve requirements and market conduct practices, among other things. We cannot guarantee that all insurance carriers with which we do business comply with regulations instituted by state insurance departments. We may need to expend resources to address questions or concerns regarding our relationships with these insurers, diverting management resources away from operating our business.

***We may face increasing scrutiny and evolving expectations from investors, customers, regulators and other stakeholders regarding environmental, social and governance matters.***

There is increasing scrutiny and evolving expectations from investors, customers, regulators, and other stakeholders on environmental, social and governance ("ESG") practices and disclosures, including those related to environmental stewardship, climate change, diversity, equity and inclusion, racial justice, workplace conduct, and other social and political mandates. Legislators and regulators have imposed and likely will continue to

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impose ESG-related legislation, rules and guidance, which may conflict with one another and impose additional costs on us, block or impede our business opportunities, or expose us to new or additional risks. Moreover, certain organizations that provide information to investors have developed ratings for evaluating companies on their approach to different ESG matters. A lack of ratings or unfavorable ratings of our company or our industry may lead to negative investor sentiment and the diversion of investment to other companies or industries. Further, our insureds include a wide variety of industries, including potentially controversial industries. Damage to our reputation as a result of our provision of policies to certain insureds could result in decreased demand for our insurance products.

Additionally, certain states have adopted laws or regulations that would restrict business dealings with, and investments in, entities determined to be boycotting companies involved in fossil fuel-based energy or other industries or to have taken public stances with regard to certain ESG issues. If we are unable to meet these standards, expectations, laws or regulations, some of which may be in contradiction with each other, it could result in adverse publicity, reputational harm, loss of business opportunities, or loss of customer and/or investor confidence, each of which individually or in the aggregate could adversely affect our business, results of operations, financial condition and prospects.

***Economic substance legislation of the Cayman Islands and other recently-enacted legislation and regulations may adversely impact us or our operations.***

The Cayman Islands, together with several other non-European Union jurisdictions, have recently introduced legislation aimed at addressing concerns raised by the Council of the European Union as to offshore structures engaged in certain activities that attract profits without real economic activity. With effect from January 1, 2019, the International Tax Co-operation (Economic Substance) Act, (2020 Revision) (the "Substance Act") came into force in the Cayman Islands introducing certain economic substance requirements for in-scope Cayman Islands entities which are engaged in certain "relevant activities," which in the case of exempted companies incorporated before January 1, 2019 applied in respect of financial years commencing July 1, 2019 and thereafter. As we are a Cayman Islands company, compliance obligations include filing annual notifications, which need to state whether we are carrying out any relevant activities and if so, whether we have satisfied economic substance tests to the extent required under the Substance Act. As the implementation of the Substance Act is still in its infancy, the impact of these economic substance requirements and how they may evolve is unclear, and it is difficult to predict the nature and effect of these requirements on the economy of the Cayman Islands. If the Cayman Islands Tax Information Authority determined that we or any of our Cayman Islands subsidiaries failed to meet the requirements imposed by the Substance Act, we or they may face significant financial penalties, restriction on the regulation of its business activities and/or may be struck off as a registered entity in the Cayman Islands. As it is a new regime, it is anticipated that the Substance Act will evolve and be subject to further clarification and amendments. We may need to allocate additional resources to keep updated with these developments, and may have to make changes to our operations in order to comply with all requirements under the Substance Act. Failure to satisfy these requirements may subject us to penalties under the Substance Act, which could materially adversely affect our business, results of operations, financial condition and prospects.

*Anti-Money Laundering Matters* ****

If any person in the Cayman Islands knows or suspects, or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or money laundering, or is involved with terrorism or terrorist financing and property, and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) the Financial Reporting Authority of the Cayman Islands ("FRA"), pursuant to the Proceeds of Crime Act (As Revised) of the Cayman Islands, if the disclosure relates to criminal conduct or money laundering, or (ii) a police officer of the rank of constable or higher, or the FRA, pursuant to the Terrorism Act (As Revised) of the Cayman Islands, if the disclosure relates to involvement with

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terrorism or terrorist financing and property. The failure of us or any of our officers to comply could materially adversely affect our business, results of operations, financial condition and prospects.

***Our amended and restated memorandum and articles of association provide that the courts of the Cayman Islands will be the exclusive forum for certain disputes between us and our shareholders, which could limit our shareholders' ability to obtain a favorable judicial forum for complaints against us or our directors, officers or employees.***

Our amended and restated memorandum and articles of association also provide that, without prejudice to any other rights or remedies that we may have, each of our shareholders acknowledges that damages alone would not be an adequate remedy for any breach of the selection of the courts of the Cayman Islands as exclusive forum and that accordingly we shall be entitled, without proof of special damages, to the remedies of injunction, specific performance or other equitable relief for any threatened or actual breach of the selection of the courts of the Cayman Islands as exclusive forum.

This choice of forum provision may increase a shareholder's cost and limit the shareholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees. Any person or entity purchasing or otherwise acquiring any of our shares or other securities, whether by transfer, sale, operation of law or otherwise, shall be deemed to have notice of and have irrevocably agreed and consented to these provisions. There is uncertainty as to whether a court would enforce such provisions, and the enforceability of similar choice of forum provisions in other companies' charter documents has been challenged in legal proceedings. It is possible that a court could find this type of provision to be inapplicable or unenforceable, and if a court were to find this provision in our amended and restated memorandum and articles of association to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could have an adverse effect on our business and financial performance.

**Risks Related to Taxation** 

In addition to the risk factors discussed below, we advise you to read "Certain Material Tax Considerations." You should consult your own tax advisor regarding the tax consequences applicable to you of an investment in our Class A common shares.

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***We are subject to taxation in multiple jurisdictions. As a result, any adverse development in the tax laws of any of these jurisdictions or any disagreement with our tax positions could have a material adverse effect on our business, results of operations, financial condition, and prospects. In addition, there is tax risk associated with the reporting of cross-border arrangements among us and our subsidiaries.***

We are subject to taxation in, and to the tax laws and regulations of, multiple jurisdictions as a result of the international scope of our operations and our corporate structure. Adverse developments in these laws or regulations, or any change in position regarding the application, administration or interpretation thereof, in any applicable jurisdiction, could have a material adverse effect on our business, results of operations, financial condition, and prospects. Moreover, the tax authorities in any applicable jurisdiction may disagree with the positions we have taken or intend to take regarding the tax treatment or characterization of any of our transactions. If any applicable tax authorities were to successfully challenge the tax treatment or characterization of any of our transactions, it could have a material adverse effect on our business, results of operations, financial condition, and prospects.

In addition, we conduct operations through our subsidiaries in various tax jurisdictions, and consider transfer pricing implications of such operations where applicable. If two or more affiliated companies are located in different countries, the tax laws or regulations of each country generally will require that transfer prices be the same as those between unrelated companies dealing at arms' length and that appropriate documentation is maintained to support the transfer prices. While we believe that we operate in compliance with applicable transfer pricing laws and intend to continue to do so, our transfer pricing procedures are not binding on applicable tax authorities. If tax authorities in any of these countries were to successfully challenge our transfer prices as not reflecting arms' length transactions they could require us to adjust our transfer prices and thereby reallocate our income to reflect these revised transfer prices. If the country from which the income is reallocated does not agree with the reallocation, both countries could tax the same income, resulting in double taxation. If tax authorities were to allocate income to a higher tax jurisdiction, subject our income to double taxation or assess interest and penalties, it would increase our consolidated tax liability, which could adversely affect our financial condition, results of operations and cash flows. Prospective investors are also urged to review the risk factor below labeled "There is U.S. federal income tax risk associated with reinsurance transactions, intercompany transactions and distributions between U.S. companies and their non-U.S. affiliates."

***Accelerant and certain of our non-U.S. subsidiaries may be subject to U.S. federal income taxation which could have a material adverse effect on our business, results of operations, financial condition, and prospects.***

Accelerant and our non-U.S. subsidiaries that are classified as foreign corporations for U.S. federal income tax purposes intend to operate in a manner that will not cause them to be treated as engaged in a trade or business within the United States or subject to current U.S. federal income taxation on their net income. However, because there is considerable uncertainty as to when a foreign corporation is engaged in a trade or business within the United States under the applicable law and the determination is highly factual and must be made annually, there can be no assurance that the U.S. Internal Revenue Service ("IRS") will not contend successfully that Accelerant or any of such non-U.S. subsidiaries is engaged in a trade or business in the United States. If Accelerant or any of its non-U.S. subsidiaries that are classified as foreign corporations for U.S. federal income tax purposes are considered to be engaged in a trade or business in the United States, the applicable entity could be subject to U.S. federal income taxation on a net basis on its income that is effectively connected with such U.S. trade or business (including branch profits tax on the portion of its earnings and profits that is attributable to such income). Any such U.S. federal income taxation could result in substantial tax liabilities and consequently could have a material adverse effect on our financial condition and results of future operations. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of Accelerant and Its Subsidiaries."

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***U.S. tax-exempt organizations that own our Class A common shares may recognize unrelated business taxable income ("UBTI").***

A U.S. tax-exempt organization that directly or indirectly owns our Class A common shares generally will recognize UBTI and be subject to additional U.S. tax filing obligations to the extent such tax-exempt organization is required to take into account any of our insurance income or related person insurance income ("RPII") pursuant to the controlled foreign corporation ("CFC") and RPII rules described below. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Tax-Exempt U.S. Holders."

***As of March 31, 2025, we had net deferred tax assets of $45.1 million, net of a valuation allowance of $44.5 million, which may become devalued if either Accelerant does not generate sufficient future taxable income or applicable corporate tax rates are reduced (or applicable tax laws otherwise change).***

We had net deferred tax assets of $45.1 million as of March 31, 2025 and also apply valuation allowances to our deferred tax assets (principally consisting of unutilized net operating losses). These predominantly arise from new business challenges on our owned insurance companies where operating expenses exceeded the initial underwriting profits recognized in the period. Utilization of most deferred tax assets is dependent on generating sufficient future taxable income in the appropriate jurisdiction and/or entity and in the appropriate character (e.g., capital vs. ordinary). If it is determined that it is more likely than not that sufficient future taxable income will not be generated, we would be required to increase the applicable valuation allowance. Most of our deferred tax assets are determined by reference to applicable corporate income tax rates, in particular the U.S. corporate income tax rates. Accordingly, in the event of new legislation that reduces any such corporate income tax rates, the carrying value of certain deferred tax assets would decrease. A material devaluation in our deferred tax assets due to either insufficient taxable income or lower corporate tax rates would have an adverse effect on Accelerant's results of operations and financial condition.

***Changes in tax laws or policy or interpretations of such laws could materially reduce our earnings, affect our operations, increase our tax liability and adversely affect our cash flows.***

Changes in tax laws or policy could have a material adverse effect on our profitability and financial condition, and could result in our subsidiaries incurring materially higher taxes.

The U.S. federal income tax laws and interpretations thereof are subject to change, which may have retroactive effect and could materially affect us.

The Inflation Reduction Act of 2022 was signed into law on August 16, 2022. The Inflation Reduction Act of 2022 contains tax provisions including a corporate alternative minimum tax on certain large corporations, a 1% excise tax on publicly traded corporate buybacks and modifications to clean energy investment tax credits. While we currently anticipate no immediate financial impact of this legislation, regulations or administrative guidance promulgated pursuant to the Inflation Reduction Act of 2022 may materially and adversely affect our financial condition and results of operations.

In addition, since 2017, the member countries of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting have developed a two-pillar approach to address the tax challenges arising from the digitalization of the economy. "Pillar One" addresses nexus and profit allocation challenges, while "Pillar Two" addresses perceived base erosion. Pillar One provides for exclusions for "Regulated Financial Services"; therefore we do not anticipate a material impact on insurance and reinsurance groups. Regulated Financial Services are not, however, exempt from Pillar Two.

The OECD has published two sets of model rules implementing a 15% global minimum tax: first, an income inclusion rule ("IIR"), which imposes "top-up" tax on a parent entity in respect of the low-taxed income of a

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subsidiary, and second, an "undertaxed payments" rule ("UTPR"), which denies deductions or requires an equivalent adjustment to the extent the low-taxed income of an affiliate is not subject to tax under an IIR. There will also be a treaty-based "subject to tax" rule that allows source jurisdictions to impose limited source taxation on certain related party payments subject to tax below a minimum rate. Key aspects of Pillar Two (including IIR regimes) have already become effective in jurisdictions relevant to our business as of January 1, 2024, with other aspects (including UTPR regimes) expected to become effective in 2025. The UK, for example, enacted legislation in July 2023 implementing an IIR via a multinational top-up tax (alongside a UK domestic top-up tax) that applies to multinational enterprises for accounting periods beginning on or after December 31, 2023 and enacted further legislation in March 2025 implementing a UTPR that applies for accounting periods beginning on or after December 31, 2024.

The OECD has released administrative guidance which clarifies (and in some cases amends previously released guidance) on the application of the model Pillar Two rules, and jurisdictions enacting legislation in respect of Pillar Two have sought to implement these updates (either by way of legislative amendment or the release of further domestic guidance). We expect that the OECD will continue to release updates to its administrative guidance which may result in further amendments to the Pillar Two rules as they apply in relevant jurisdictions. As such, several aspects of the Pillar Two rules, including whether some or all of our business and the companies in which we invest fall within the scope of the exclusions therefrom, currently remain uncertain. The release of further updates to the model Pillar Two rules and adoption of Pillar Two legislation (including IIR or UTPR regimes) by additional jurisdictions may give rise to consequential amendments to tax laws (other than those which seek to enact or modify Pillar Two rules) in other jurisdictions.

The Pillar One and Pillar Two proposals form part of the OECD's broader Base Erosion and Profit Shifting ("BEPS") Project, which has been running since 2015. The implementation of the recommendations of the BEPS Project by OECD member countries has given rise to significant changes in domestic and international tax laws in recent years, including a number of Directives of the European Union (currently at various stages of implementation by Member States) which address matters such as anti-hybrid legislation and tax substance and a Multilateral Convention affecting the interpretation of many international tax treaties. The impact of the BEPS Project on our business will require ongoing assessment.

***Our UK and non-UK operations may be affected by changes in UK tax law.***

None of our entities should be treated as being resident in the UK for UK tax purposes, except for our subsidiaries that are incorporated in the UK, Accelerant Holdings, Accelerant Holdings (Cayman) Ltd and Mission Worldwide Holdings (together, the "UK Resident Entities"). Although Accelerant Holdings, Accelerant Holdings (Cayman) Ltd and Mission Worldwide Holdings are not incorporated in the UK, it is the intention that their affairs will be conducted so that their central management and control is exercised in the UK and, as a result, they are each treated as a resident in the UK for UK tax purposes.

Accordingly, the UK Resident Entities are expected to generally be subject to UK tax in respect of their worldwide income, profits and gains. Any change in the basis or rate of UK corporation tax or His Majesty's Revenue and Customs' ("HMRC") practice and interpretation of UK tax law could materially adversely affect the business, prospects, financial condition and/or results of operations of the UK Resident Entities or their ability to provide returns to shareholders. The UK corporation tax rate is currently 25%.

***There is U.S. federal income tax risk associated with reinsurance transactions, intercompany transactions and distributions between U.S. companies and their non-U.S. affiliates.***

Certain U.S. companies that make deductible payments to related non-U.S. companies are subject to the Base Erosion and Anti-Abuse Tax (the "BEAT"). The BEAT is generally equal to the excess of a 10% tax on the taxpayer's "modified taxable income" over the taxpayer's regular tax liability (reduced by certain credits), with "modified taxable income" being computed without regard to certain deductions for "base erosion payments".

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The tax on "modified taxable income" also increases from 10% to 10.5% for taxable years beginning after 2025. The BEAT applies to deductions arising out of "any premium or other consideration" paid or accrued to a related foreign reinsurer.

Both our U.S. and non-U.S. ceding companies reinsure business to Accelerant affiliates. We have structured our internal reinsurance in a manner intended to ensure that our non-U.S. reinsurers reinsure business only from other non-U.S. ceding companies for U.S. federal income tax purposes. There can be no assurances our structuring efforts will be successful. If we are not able to structure our internal reinsurance in this manner, or the IRS were to successfully assert that our non-U.S. reinsurers reinsure our U.S. ceding companies for U.S. federal income tax purposes, we could be required to pay additional tax, and our financial condition and results from operations could be materially adversely affected.

As summarized above under "Changes in tax laws or policy or interpretations of such laws could materially reduce our earnings, affect our operations, increase our tax liability and adversely affect our cash flows", proposed changes to BEAT, if effective, would likely increase the amount of additional tax we would be required to pay, if we were subject to BEAT.

In addition, the Internal Revenue Code of 1986, as amended (the "Code"), permits the IRS to reallocate, recharacterize or adjust items of income, deduction or certain other items related to a reinsurance agreement between related parties to reflect the proper "amount, source or character" for each item. If the IRS were successfully to challenge our intercompany reinsurance arrangements between our subsidiaries, our financial condition and results of operations could be materially adversely affected.

Generally, distributions by our U.S. subsidiaries to our non-U.S. subsidiaries are subject to a 30% U.S. federal withholding tax on the gross amount of any distribution that is treated as a dividend or dividend-equivalent payment for U.S. federal income tax purposes. However, we believe that we and the entities through which we hold our U.S. subsidiaries are eligible for a 5% rate of withholding on dividends under the U.S.-UK Tax Treaty unless we have owned shares representing at least 80% of the voting power of a U.S. subsidiary paying a dividend for the 12-month period ending on the date the dividend was declared, in which case there would be no U.S. withholding on such dividend under the U.S.-UK Tax Treaty. We intend to manage our affairs in a manner that is intended to allow such entities to qualify for such reduction in or exemption from U.S. withholding tax under the U.S.-UK Tax Treaty. No assurances can be made, though, that (i) we will qualify for benefits under the U.S.-UK Tax Treaty, (ii) the U.S.-UK Tax Treaty will provide relief from this potential withholding tax or (iii) we would qualify for similar relief under another tax treaty if benefits under the U.S.-UK Tax Treaty were unavailable, in each case, for a taxable year that includes a distribution from our U.S. subsidiaries. Certain U.S. to non-U.S. reinsurance arrangements may also be subject to a 30% U.S. federal withholding tax. We may therefore be limited in our ability to move cash efficiently from our U.S. subsidiaries or to make distributions with respect to our Class A common shares.

***Our annual effective income tax rate can change materially as a result of changes in our mix of U.S. and non-U.S. earnings and other factors, including changes in U.S. and foreign tax laws and changes made by regulatory authorities.***

Our overall effective income tax rate is equal to our total tax expense as a percentage of total earnings before tax. However, income tax expense and benefits are not recognized on a global basis but rather on a jurisdictional or legal entity basis. Losses in one jurisdiction may not be used to offset profits in other jurisdictions and may cause an increase in our tax rate and give rise to a tax expense even though the Company has cumulative losses. Changes in the mix of earnings (or losses) between jurisdictions and assumptions used in the calculation of income taxes, among other factors, could have a significant effect on our overall effective income tax rate.

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***U.S. persons who own our Class A common shares may be subject to U.S. federal income taxation at ordinary income rates on a disproportionate share of our undistributed earnings and profits attributable to RPII.***

For taxable years beginning before January 1, 2026, if Accelerant Re Cayman, Accelerant Insurance Europe SA, AIUK, Accelerant Insurance Company of Canada or Accelerant Re I.I. (each, a "Non-U.S. Carrier" and collectively, the "Non-U.S. Carriers") is treated as recognizing RPII in a taxable year and such Non-U.S. Carrier is treated as a CFC for purposes of taking into account RPII (a "RPII CFC") for such taxable year, each U.S. person that owns any of our Class A common shares directly or indirectly through certain entities as of the last day in such taxable year must generally include in gross income its pro rata share of the RPII (with certain adjustments), determined as if the RPII were distributed proportionately only to all RPII Shareholders (as defined below), regardless of whether that income is distributed. For this purpose, any of our subsidiaries that is a Non-U.S. Carrier generally will be treated as a RPII CFC if U.S. persons who own (or are treated as owning) any of our Class A common shares or Class B common shares (each such persons, a "RPII Shareholder") in the aggregate own (or are treated as owning) 25% or more of the total voting power or value of such Non-U.S. Carrier's stock on any day of its taxable year. Based on our expected ownership, we expect the Non-U.S. Carriers will be treated as RPII CFCs for the current and all future years.

RPII generally is any income of a non-U.S. corporation attributable to insuring or reinsuring risks of a U.S. person that owns (or is treated as owning) stock of such non-U.S. corporation, or risks of a person that is "related" to such a U.S. person. For this purpose, (1) a person is "related" to another person if such person "controls," or is "controlled" by, such other person, or if both are "controlled" by the same persons, and (2) "control" of a corporation means ownership (or deemed ownership) of stock possessing more than 50% of the total voting power or value of such corporation's stock and "control" of a partnership, trust or estate for U.S. federal income tax purposes means ownership (or deemed ownership) of more than 50% by value of the beneficial interests in such partnership, trust or estate.

The RPII rules will not apply with respect to a Non-U.S. Carrier for a taxable year if (1) at all times during its taxable year less than 20% of the total combined voting power of all classes of such Non-U.S. Carrier's voting stock and less than 20% of the total value of all of its stock is owned (directly or indirectly) by persons who are

(directly or indirectly) insured under any policy of insurance or reinsurance issued by such Non-U.S. Carrier or who are related persons to any such person or (2) the Non-U.S. Carrier's RPII (determined on a gross basis) is less than 20% of its insurance income (as so determined) for the taxable year, determined with certain adjustments.

Our Non-U.S. Carriers generally provide reinsurance to our other subsidiaries and affiliates. If such other subsidiaries or affiliates were treated as related (as defined above) to a RPII Shareholder, or our Non-U.S. Carriers reinsured risks of our RPII Shareholders or their related persons, earnings from such reinsurance would constitute RPII. However, we do not believe any of our subsidiaries or affiliates will be treated as "related" to a RPII Shareholder based on the expected ownership of our shares, nor do we anticipate that our Non-U.S. Carriers will reinsure the risks of our RPII Shareholders in any material amount.

Based on the foregoing, we do not expect U.S. Holders to have RPII inclusions. Nonetheless, we cannot provide assurances that our Non-U.S. Carriers will not recognize RPII due to uncertainty about the proportions of future ownership of our shares and the complexity of certain attribution rules that apply for purposes of determining whether a RPII Shareholder would be considered to have control of and, therefore, be related to our subsidiaries or affiliates for purposes of the RPII rules, or that we will qualify for either of the RPII exceptions above in the event that our Non-U.S. Carriers recognize RPII. Moreover, certain recently issued proposed regulations would expand the scope of RPII to include premium and investment income attributable to a reinsurance policy that directly or indirectly provides coverage to a "related insured", which would be defined to include a person (other than a publicly traded company) that is more than 50% owned (or treated as more than 50% owned) in the aggregate by United States shareholders of the non-U.S. corporation providing the reinsurance. If finalized in their current form, such regulations may require U.S. persons that own any of our Class A common shares directly or indirectly to include in gross income their pro rata share of the RPII (with

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certain adjustments), determined as if the RPII were distributed proportionately only to all RPII Shareholders, regardless of whether that income is distributed. It is not certain whether such regulations will be adopted in their proposed form or what changes or clarifications might ultimately be made thereto or whether any such changes, as well as any interpretation or application of the RPII rules by the IRS, the courts, or otherwise, might have retroactive effect. For more information, please review the discussion under "Certain Material Tax Considerations — U.S. Federal Income Tax Considerations — Taxation of U.S. Holders — Related Person Insurance Income Considerations."

***U.S. persons who dispose of our Class A common shares may be required to treat any gain as ordinary income for U.S. federal income tax purposes and must comply with other specified reporting requirements.***

If a U.S. person disposes of shares in a non-U.S. corporation that is a RPII CFC at any time when the U.S. person owned any shares in the corporation during the five-year period ending on the date of disposition, any gain from the disposition will generally be treated as a dividend to the extent of the U.S. person's share of the corporation's undistributed earnings and profits that were accumulated during the period that the U.S. person owned the disposed shares (possibly whether or not those earnings and profits are attributable to RPII). Such dividend may also be taxed at ordinary income rates to the extent it is not treated as "qualified dividend income." In addition, the shareholder will be required to comply with specified reporting requirements, regardless of the amount of shares owned. Because Accelerant is not itself directly engaged in the insurance business, we do not believe that these rules apply to a disposition of our Class A common shares, although we cannot assure you that the IRS will not successfully assert that these rules apply to a disposition of our Class A common shares in light of the insurance and reinsurance activities of our Non-U.S. Carriers. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Disposition of Class A Common Shares."

***While we were not a PFIC in 2024 and do not expect to be a PFIC in 2025 or subsequent taxable years, U.S. persons who own our Class A common shares may be subject to adverse tax consequences if Accelerant is considered a PFIC for U.S. federal income tax purposes in any year in which they acquire or hold shares.***

If Accelerant is considered a PFIC for U.S. federal income tax purposes, a U.S. person who directly or, in certain cases, indirectly owns our Class A common shares could be subject to adverse tax consequences, including a greater tax liability than might otherwise apply, an interest charge on certain taxes that are deemed deferred as a result of Accelerant's non-U.S. status and additional information reporting obligations, regardless of the number of shares owned. In general, a non-U.S. corporation will be a PFIC during a taxable year if (i) 75% or more of its gross income constitutes passive income or (ii) 50% or more of its assets produce, or are held for the production of, passive income. For these purposes, passive income generally includes interest, dividends and other investment income. However, income derived in the active conduct of an insurance business by a "qualifying insurance corporation" is not treated as passive income (the "Insurance Exception"). In addition, passive income does not include income of a "qualifying domestic insurance corporation" ("QDIC"). The PFIC provisions also contain a look-through rule under which a non-U.S. corporation will be treated as if it received directly its proportionate share of the income, and held its proportionate share of the assets, of another corporation if it owns at least 25% of the value of the stock of such other corporation. Accelerant does not expect to be considered a PFIC for its current taxable year or any subsequent taxable year. However, because this determination is made annually at the end of each taxable year and is dependent on a number of factors, there can be no assurance that Accelerant will not be considered a PFIC in any taxable year. Moreover, our Non-U.S. Carriers will need to be considered engaged in the active conduct of an insurance business and have applicable insurance liabilities that exceed a certain percentage of their total assets to qualify for the Insurance Exception, among other requirements. It is possible that a Non-U.S. Carrier does not satisfy such requirements in a given taxable year, in which case such a Non-U.S. Carrier may be treated as a PFIC and the PFIC status of Accelerant could be adversely affected as a result. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Passive Foreign Investment Company Rules" for further discussion.

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***U.S. persons who own 10% or more of our shares, by vote or by value, will be subject to U.S. federal income taxation at ordinary income rates on our undistributed earnings and profits.***

In general, for taxable years beginning before January 1, 2026, a "10% U.S. Shareholder" (as defined below) of a non-U.S. corporation that is a CFC at any time during a taxable year must include in its gross income for U.S. federal income tax purposes its pro rata share of the CFC's "subpart F income" and "tested income" (with various adjustments) with respect to any shares that such 10% U.S. Shareholder owns in such non-U.S. corporation (directly or indirectly through certain entities) on the last day in the non-U.S. corporation's taxable year on which it is a CFC, even if the subpart F income or tested income is not distributed. For taxable years beginning after December 31, 2025, a 10% U.S. Shareholder of a non-U.S. corporation that is a CFC at any time during a taxable year must include in its gross income for U.S. federal income tax purposes its pro rata share of the CFC's "subpart F income" and "tested income" (with various adjustments) with respect to any shares that such 10% U.S. Shareholder owns in such non-U.S. corporation (directly or indirectly through certain entities) during that taxable year, even if the subpart F income or tested income is not distributed. A "10% U.S. Shareholder" generally is a U.S. person that owns (directly, indirectly through non-U.S. entities or by attribution by application of the constructive ownership rules of section 958(b) of the Code (i.e., "constructively")) at least 10% of the total combined voting power or value of all classes of stock of a non-U.S. corporation. "Subpart F income" of a CFC generally includes "foreign personal holding company income" (such as interest, dividends and other types of passive income), as well as insurance and reinsurance income (including underwriting and investment income), and tested income is generally any income of the CFC other than subpart F income and certain other categories of income. An entity treated as a foreign corporation for U.S. federal income tax purposes generally is considered a CFC if 10% U.S. Shareholders own (directly, indirectly through non-U.S. entities or constructively), in the aggregate, more than 50% of the total combined voting power of all classes of voting stock of that non-U.S. corporation or more than 50% of the total value of all stock of that non-U.S. corporation. However, for the purposes of taking into account insurance income, these 50% thresholds are generally reduced to 25%. Further, special rules apply for purposes of taking into account any RPII of a non-U.S. corporation, as described above.

Whether Accelerant is a CFC for a taxable year will depend upon facts regarding our direct and indirect shareholders, about which we have limited information. Accordingly, no assurance can be provided that Accelerant will not be a CFC. Further, regardless of whether Accelerant is a CFC, for taxable years beginning before January 1, 2026, most or all of our non-U.S. subsidiaries (to the extent treated as corporations for U.S. federal income tax purposes) are generally treated as CFCs because our U.S. subsidiaries are expected to be treated as constructively owning the stock of our non-U.S. subsidiaries. For taxable years beginning after December 31, 2025, the relevant "downward attribution" rule will no longer apply, and therefore our non-U.S. subsidiaries will generally be treated as CFCs only if Accelerant is treated as a CFC. Accordingly, any 10% U.S. Shareholders of Accelerant may be required to include in gross income for U.S. federal income tax purposes for each taxable year their pro rata shares of all or a portion of the subpart F income and tested income generated by our non-U.S. companies (with various adjustments), regardless of whether any distributions are made to them. Any such 10% U.S. Shareholders should consult their own tax advisors regarding the application of these rules to them. See "Certain Material Tax Considerations—U.S. Federal Income Tax Considerations—Taxation of U.S. Holders—Controlled Foreign Corporation Considerations" for further discussion.

Also for taxable years of non-U.S. corporations beginning after December 31, 2025, a non-U.S. corporation will be treated as an FCFC if it is not a CFC and "Foreign Controlled United States Shareholders" (as defined below) collectively own, directly, indirectly through certain entities or constructively (by application of the rules set forth in Section 958(b) of the Code, generally applying to options, family members, partnerships, estates, trusts or corporations, other than Section 958(b)(4), generally prohibiting the attribution to U.S. partnerships, estates, trusts and corporations stock owned by non-U.S. partners, beneficiaries or shareholders), more than 50% of the total combined voting power or total value of the corporation's stock. Under Section 951B(b) of the Code, any United States person (as defined in Section 957(c) of the Code) who owns directly, indirectly through certain entities or constructively (by application of the rules described in the preceding sentence) 50% or more of the

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total combined voting power or value of all classes of stock of the non-U.S. corporation will be considered to be a "Foreign Controlled United States Shareholder". In general, the rules described above with respect to United States Shareholders of CFCs also apply to Foreign Controlled United States Shareholders of FCFCs.

We do not expect to be a FCFC, although we may not have enough information about our ownership to determine such status. If we are, any holder that may be a Foreign Controlled United States Shareholder may have inclusions under the rules described above.

**Risks Related to this Offering and Ownership of Our Class A Common Shares** 

***The dual class structure of our common shares has the effect of concentrating voting control with the shareholders affiliated with Altamont Capital, including control over decisions that require the approval of shareholders; this will limit your ability to influence corporate matters submitted to a shareholder vote.***

Each of our Class B common shares is entitled to ten votes, and each of our Class A common shares, which are the shares we are selling in this offering, is entitled to one vote. After giving effect to the re-designation of existing common shares following the Accelerant Holdings LP Distribution and the sale of the Class A common shares offered hereby, affiliates of Altamont Capital will control approximately 79.2% of the combined voting power of our outstanding common shares following this offering (or approximately 77.4% of the combined voting power of our outstanding common shares if the underwriters' option to purchase additional Class A common shares is exercised in full), based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus).

Pursuant to our amended and restated memorandum and articles of association, each holder of our Class B common shares shall have the right to convert each of its Class B common shares into one Class A common share, at any time, upon notice to us. Additionally, Class B common shares will automatically convert into Class A common shares, on a one-for-one basis, upon transfer (other than a permitted transfer) of Class B common shares; or upon the earlier of (i) the time Class B common shareholders cease to own 50% of the Class B common shares owned by such holders, in aggregate, immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share.

Because of the ten-to-one voting ratio between our Class B common shares and our Class A common shares, Altamont Capital (which holds the majority of our outstanding Class B common shares) will control a majority of the combined voting power of our common shares and therefore exert substantial influence over matters submitted to our shareholders so long as Altamont Capital owns a requisite percentage of our total outstanding common shares (in the form of either Class B common shares or Class A common shares). Concentrated control may limit your ability to influence corporate matters for the foreseeable future.

***We have a history of losses, which may limit our ability to develop our Risk Exchange and inhibit us from making investments in developing and expanding our business.***

Although we generated net income of $7.8 million and $22.9 million for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, we have a history of losses and may incur additional losses in the near term as we continue to make investments to grow our business. Despite these investments, we may not succeed in increasing our revenue on the timeline that we expect or in an amount sufficient to remain profitable. If we are unable to remain profitable, this may limit our ability to develop our Risk Exchange, sign up new Members and risk capital partners and grow our revenues. Future net losses may also lead to a reduction in premiums written through the Risk Exchange, which would inhibit us from making investments in developing and expanding our business, and may also lead to a change in our A.M. Best or credit ratings.

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***An active trading market for our Class A common shares may not develop and the trading price for our Class A common shares may fluctuate significantly.***

Our Class A common shares have been approved for listing, subject to official notice of issuance, on the NYSE. Prior to the completion of this offering, there has been no public market for our Class A common shares, and we cannot assure you that a liquid public market for our Class A common shares will develop. If an active public market for our Class A common shares does not develop following the completion of this offering, the market price and liquidity of our Class A common shares may be materially and adversely affected. The initial public offering price for our Class A common shares will be determined by negotiation between us and the underwriters based upon several factors, and we can provide no assurance that the trading price of our Class A common shares after this offering will not decline below the initial public offering price. As a result, investors in our securities may experience a significant decrease in the value of their Class A common shares.

***Applicable insurance laws could make it difficult to effect a change of control of our Company.***

The insurance laws and regulations of the various jurisdictions in which our insurance subsidiaries are organized could delay or impede a business combination involving us. In the U.S., state insurance laws prohibit an entity from acquiring control of an insurance company without the prior approval of the domestic insurance regulator. Under most states' statutes, an entity is presumed to have control of an insurance company if it owns, directly or indirectly, 10% or more of the voting stock of that insurance company or its parent company. These and other regulatory restrictions could delay, deter or prevent a potential merger or sale of our company, even if our Board of Directors decides that it is in the best interests of stockholders for us to merge or be sold. These restrictions could also delay sales by us or acquisitions by third parties of our insurance subsidiaries.

***Our operating results and share price may be volatile, or may decline regardless of our operating performance, and you could lose all or part of your investment.***

Our quarterly operating results could fluctuate in the future as a publicly traded company. In addition, securities markets worldwide have experienced, and are likely to continue to experience, significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could subject the market price of our shares to wide price fluctuations regardless of our operating performance. You should consider an investment in our Class A common shares to be risky, and you should invest in our Class A common shares only if you can withstand a significant loss and wide fluctuation in the market value of your investment. The market price of our Class A common shares could be subject to significant fluctuations after this offering in response to the factors described in this "Risk Factors" section and other factors, many of which are beyond our control. Among the factors that could affect our share price are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in the broader stock market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated fluctuations in our quarterly financial and operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• introduction of new products or services by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• issuance of new or changed securities analysts' reports or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• results of operations that vary from expectations of securities analysts and investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this
guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic actions by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcement by us, our competitors or our acquisition targets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales, or anticipated sales, of large blocks of our Class A common shares, including by our directors,
executive officers, and principal shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures in our Board of Directors, senior management or other key personnel;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory, legal, or political developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• public response to press releases or other public announcements by us or third parties, including our filings
with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation and governmental investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changing economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any indebtedness we may incur or securities we may issue in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• default under agreements governing our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class A common shares sold in this offering will be freely tradable without restriction or further
registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to capital and credit market risks that adversely affect our investment portfolio or our capital
resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our A.M. Best or credit ratings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other events or factors, including those from natural disasters, war, acts of terrorism, or responses to these
events.

In addition, the stock markets, including the NYSE, have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities. In times of stock price volatility, stockholders can often institute securities class action litigation against the issuer of such stock. If any of our shareholders bring a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our business, which could significantly harm our profitability and reputation.

***If securities or industry analysts do not publish research or reports about our business, or if they publish unfavorable research or reports, or they adversely change their recommendations regarding our Class A common shares, or if our results of operations do not meet their expectations, the market price for our Class A common shares and trading volume could decline.***

The trading market for our Class A common shares will be influenced by research or reports that industry or securities analysts publish about our business. We do not have any control over these analysts. As a newly public company, we may be slow to attract research coverage. If any of the analysts who may cover us provide inaccurate or unfavorable research, issue an adverse opinion regarding our share price or if our results of operations do not meet their expectations, our share price could decline. Moreover, if one or more of these analysts cease coverage of us or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline.

***The sale or availability for sale of substantial amounts of our Class A common shares could adversely affect their market price.***

Sales of substantial amounts of our Class A common shares in the public market after the completion of this offering, or the perception that these sales could occur, could adversely affect the market price of our Class A common shares and could materially impair our ability to raise capital through equity offerings in the future. The Class A common shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act of 1933, as amended (the "Securities Act"), and shares held by our existing shareholders may also be sold in the public market in the future subject to the restrictions in Rule 144 and Rule 701 under the Securities Act and the applicable lock-up agreements. There will be 101,143,134 Class A common shares and 118,843,429 Class B common shares outstanding immediately after this offering, based on the assumed initial

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public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus). Conversion of the Class B common shares would increase the number of Class A common shares available for sale and could have the effect of depressing the trading price of our Class A common shares. Following this offering, we and each of our directors and officers named in the section "Management," and certain shareholders, including Altamont Capital, have agreed not to sell any Class A common shares for 180 days following the date of this prospectus without the prior written consent of Morgan Stanley & Co. LLC, on behalf of the underwriters, subject to certain exceptions. However, the underwriters may release these securities from these restrictions at any time, subject to applicable regulations of the Financial Industry Regulatory Authority, Inc. ("FINRA"). We cannot predict what effect, if any, market sales of securities held by our significant shareholders or any other shareholder or the availability of these securities for future sale will have on the market price of our Class A common shares. See "Underwriters" and "Shares Eligible for Future Sale" for a more detailed description of the restrictions on selling our securities after this offering.

In addition, an aggregate of 54,829,218 of our Class A common shares, representing 54.2% of our outstanding Class A common shares, are pledged to secure obligations of certain of our executive officers, including all three of our Co-Founders, as well as an additional employee, under loan agreements with third-party lenders, including Goldman Sachs Bank Europe SE, an affiliate of Goldman Sachs & Co. LLC, one of the underwriters in this offering. 52,614,547 million Class A common shares, or 52.0% of our outstanding Class A common shares are beneficially owned by Jeff Radke, our Co-Founder and Chief Executive Officer and a member of our Board of Directors, Christopher Lee-Smith, our Co-Founder and Head of Distribution and a member of our Board of Directors, and Frank O'Neill, our Co-Founder and Chief Underwriting Officer. All parties, including Messrs. Radke, Lee-Smith and O'Neill, are, as of the date of this prospectus, in compliance with all obligations under the terms of their loan agreements. Mr. Radke has entered into an agreement to refinance his existing loan with proceeds of a replacement loan concurrent with the completion of this offering from Wells Fargo Bank, N.A., an affiliate of Wells Fargo Securities, LLC, an underwriter in this offering. All of the Class A common shares securing these loans are subject to lock-up agreements that, upon a foreclosure event, would require the respective lenders to execute a new lock-up agreement with the Underwriters in order to exercise any rights in respect of the shares.

If any of the borrowers defaults on obligations under these agreements, the third-party lenders may exercise their rights under the applicable loan agreement, and will hold such shares subject to a lock-up agreement on substantially similar terms as those executed by our existing shareholders. See "Underwriting" for a description of these terms.

***Because we do not expect to pay dividends in the foreseeable future after this offering, you must rely on price appreciation of our Class A common shares for return on your investment.***

We currently intend to retain all of our available funds and any future earnings after this offering to fund the development and growth of our business. As a result, we do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in our Class A common shares as a source for any future dividend income.

Our Board of Directors has complete discretion regarding dividend distributions. Even if our Board of Directors decides to declare and pay dividends, the timing, amount and form of future dividends, will depend on, among other things, our future results of operations and cash flow, our capital requirements and surplus, the amount of we receive from our subsidiaries, our financial condition, contractual restrictions and other factors deemed relevant by our Board of Directors, as well as regulatory restrictions on the ability of our insurance subsidiaries to issue dividends. Accordingly, the return on your investment in our Class A common shares will likely depend entirely upon any future price appreciation of our Class A common shares. There is no guarantee that our Class A common shares will appreciate in value after this offering or even maintain the price at which you purchased our Class A common shares. You may not realize a return on your investment in our Class A common shares and you may even lose your entire investment.

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***Our success depends on our ability to retain, attract and develop experienced and qualified personnel, including our senior management team and other personnel.***

We depend upon our senior management team who possess extensive knowledge and a deep understanding of our business and strategy, and the insurance market as a whole. The unexpected loss of any of our senior management team could have a disruptive effect adversely impacting our ability to manage our business effectively. Competition for experienced professional personnel in the insurance industry is intense, and we are constantly working to retain and attract these professionals. If we cannot successfully do so, our business, results of operations, financial condition and prospects could be adversely affected.

***You must rely on the judgment of our management as to the use of the net proceeds from this offering, and such use may not produce income or increase our share price.***

Our management will have considerable discretion in the application of the net proceeds we receive. You will not have the opportunity, as part of your investment decision, to assess whether proceeds are being used appropriately. The net proceeds may be used for corporate purposes that do not improve our efforts to achieve or maintain profitability or increase our share price. The net proceeds from this offering may be placed in investments that do not produce income or that lose value.

***We may change our underwriting guidelines or strategy without shareholder approval.***

Our management has the authority to change our underwriting guidelines or our strategy without notice to our shareholders and without shareholder approval. As a result, we may make fundamental changes to our operations without shareholder approval, which could result in our pursuing a strategy or implementing underwriting guidelines that may be materially different from the strategy described in the section entitled "Business" or elsewhere in this prospectus.

***The amended and restated memorandum and articles of association that we intend to adopt contain anti-takeover provisions that could have a material adverse effect on the rights of holders of our Class A common shares.***

We intend to adopt an amended and restated memorandum and articles of association immediately prior to the completion of this offering. Our proposed amended and restated memorandum and articles of association contain provisions to limit the ability of others to acquire control of our company or cause us to engage in change-of-control transactions. These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging third parties from seeking to obtain control of our company in a tender offer or similar transaction. In addition, our Board of Directors has the authority, without further action by our shareholders, to issue preference shares in one or more classes and to fix their designations, powers, preferences, privileges, and relative participating, optional or special rights and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights associated with our common shares. Preference shares could be issued quickly with terms having the effect of delaying or preventing a change in control of our company or making removal of management more difficult. Our Board of Directors also has the power, without shareholder approval, to set the terms of any such preference shares that may be issued, including voting rights, dividend rights, preferences over our common shares with respect to dividends or if we liquidate, dissolve or wind up our business and other terms. If we issue preference shares in the future that have preference over our common shares with respect to the payment of dividends or upon our liquidation, dissolution or winding up, or if we issue preference shares with voting rights that dilute the voting power of our common shares, the rights of holders of our common shares or the price of our Class A common shares could be adversely affected.

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***Our principal shareholders have substantial influence over our company. Their interests may not be aligned with the interests of our other shareholders, and they could prevent or cause a change of control or other transactions.***

Following the re-designation of existing common shares following the Accelerant Holdings LP Distribution and the completion of this offering, affiliates of Altamont Capital will beneficially own an aggregate of 100,480,382 Class B common shares, representing 79.2% of the combined voting power of our common shares outstanding after this offering (or approximately 77.4% of the combined voting power of our common shares if the underwriters' option to purchase additional Class A common shares is exercised in full), based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus). Altamont Capital will have a significant influence in determining the outcome of any corporate transaction or other matter submitted to the shareholders for approval, including mergers, consolidations, the election of directors and other significant corporate actions. Altamont Capital will also have the power to prevent or cause a change in control for so long as Altamont Capital beneficially owns a majority of our total outstanding common shares and will retain significant influence over such a decision after they cease to own a majority. Without the consent of Altamont Capital, we may be prevented from entering into transactions that could be beneficial to us or our minority shareholders. The interests of our largest shareholders may differ from the interests of our other shareholders. The concentration in the ownership of our Class A common shares and Class B common shares following this offering may cause a material decline in the value of our Class A common shares.

Altamont Capital and its affiliates engage in a broad spectrum of activities, including investments in industries in which we operate. In the ordinary course of their business activities, Altamont Capital and its affiliates may engage in activities where their interests conflict with our interests or those of our other shareholders, such as investing in or advising businesses that directly or indirectly compete with certain portions of our business or are suppliers or partners of ours. Our amended and restated memorandum and articles of association to be effective in connection with the closing of this offering will provide that none of Altamont Capital, any of its affiliates or any director who is not employed by us will have any duty to refrain from engaging, directly or indirectly, in the same business activities or similar business activities or lines of business in which we operate. Altamont Capital and its affiliates also may pursue acquisition opportunities that may be complementary to our business, and, as a result, those acquisition opportunities may not be available to us. In addition, Altamont Capital and its affiliates may have an interest in pursuing acquisitions, divestitures and other transactions that, in its judgment, could enhance its investment, even though such transactions might involve risks to you.

***You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.***

We are an exempted company incorporated under the laws of the Cayman Islands with limited liability. Our corporate affairs are governed by our memorandum and articles of association, the Cayman Islands Companies Act (As Revised) (the "Cayman Companies Act") and the common law of the Cayman Islands. The rights of shareholders to take action against the directors, actions by minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law differ from what they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, some U.S. states, such as Delaware, have more prescriptive and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have the standing to initiate a shareholder derivative action in a federal court of the United States.

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of the register of members of these companies. Our directors

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have discretion under our articles of association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.

Certain corporate governance practices in the Cayman Islands, which is our home country, differ significantly from requirements for companies incorporated in other jurisdictions such as the U.S. Currently, we do not plan to rely on home country practice with respect to any corporate governance matter. However, if we choose to follow our home country practice in the future, our shareholders may be afforded less protection than they otherwise would under rules and regulations applicable to U.S. domestic issuers.

As a result of all of the above, public shareholders may have more difficulty in protecting their interests in the face of actions taken by our management, members of the Board of Directors or controlling shareholders than they would as public shareholders of a company incorporated in the United States. For a discussion of significant differences between the provisions of the Cayman Companies Act and the laws applicable to companies incorporated in the United States and their shareholders, see "Description of Share Capital—Comparison of Cayman Islands Corporate Law and U.S. Corporate Law."

***We will incur significantly increased costs and devote substantial management time as a result of the listing of our Class A common shares.***

We will incur additional legal, accounting and other expenses as a public reporting company. For example, we will be required to comply with the additional requirements of the rules and regulations of the SEC and the listing standards of the NYSE, including applicable corporate governance practices. We expect that compliance with these requirements will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. In addition, we expect that our management and other personnel will need to divert attention from operational and other business matters to devote substantial time to these public company requirements. We cannot predict or estimate the number of additional costs we may incur as a result of becoming a public company or the timing of such costs.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time-consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidelines are provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management's time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may also initiate legal proceedings against us and our business may be adversely affected.

***Changes in accounting practices and future pronouncements may materially affect our reported financial results.***

Developments in accounting practices may require us to incur considerable additional expenses to comply, particularly if we are required to prepare information relating to prior periods for comparative purposes or to apply the new requirements retroactively. The impact of changes in current accounting practices and future pronouncements cannot be predicted but may affect the calculation of net income, shareholder's equity and other relevant financial statement line items.

Our U.S. insurance subsidiaries are required to comply with statutory accounting principles ("SAP"). SAP and various components of SAP are subject to constant review by the NAIC and its task forces and committees,

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as well as state insurance departments, in an effort to address emerging issues and otherwise improve financial reporting. Various proposals are pending before committees and task forces of the NAIC, some of which, if enacted and adopted on a state level, could have negative effects on insurance industry participants. The NAIC continuously examines existing laws and regulations. We cannot predict whether or in what form such reforms will be enacted and, if so, whether the enacted reforms will positively or negatively affect us.

***As a result of becoming a public company, we will be obligated to develop and maintain proper and effective disclosure controls and procedures and internal control over financial reporting. Our controls and procedures may not be effective, which may adversely affect investor confidence in us and, as a result, the value of our Class A common shares.***

Upon the completion of this offering, we will become subject to the periodic reporting requirements of the Exchange Act. We must design our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Any disclosure controls and procedures, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. We are in the early stages of the costly and intensive process of compiling the system and processing documentation necessary to perform the evaluation needed to comply with Section 404 of the Sarbanes-Oxley Act. We may not be able to complete our evaluation, testing and any required remediation in the time required. If we are unable to assert that our internal control over financial reporting is effective, we could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the value of our Class A common shares to decline, and we may be subject to investigation or sanctions by the SEC.

We will be required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting as of the end of the fiscal year that coincides with the filing of our second annual report on Form 10-K. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. We will also be required to disclose changes made in our internal control and procedures on a quarterly basis. However, our independent registered public accounting firm will not be required to report on the effectiveness of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act until the later of the year following our first annual report required to be filed with the SEC, or the date we are no longer an "emerging growth company" as defined in the JOBS Act if we take advantage of the exemptions contained in the JOBS Act. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our controls are documented, designed or operating.

Additionally, the existence of any material weakness or significant deficiency would require management to devote significant time and incur significant expense to remediate any such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or significant deficiencies in a timely manner. The existence of any material weakness in our internal control over financial reporting could also result in errors in our financial statements that could require us to restate our financial statements, cause us to fail to meet our reporting obligations and cause shareholders to lose confidence in our reported financial information, all of which could materially and adversely affect our business and share price.

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***We are an "emerging growth company" and we expect to elect to comply with reduced public company reporting requirements, which could make our Class A common shares less attractive to investors.***

We are an emerging growth company, as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, among others, (1) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, (2) reduced disclosure obligations regarding executive compensation in this prospectus and our periodic reports and proxy statements, (3) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved and (4) the requirement to present only two years of audited financial statements and only two years of related "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this prospectus. We could be an emerging growth company for up to five years after the first sale of our Class A common shares pursuant to an effective registration statement under the Securities Act, which fifth anniversary will occur in 2030. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer," our annual gross revenue exceeds $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we would cease to be an emerging growth company prior to the end of such five-year period. We have made certain elections with regard to the reduced disclosure obligations regarding executive compensation in this prospectus and may elect to take advantage of other reduced disclosure obligations in future filings. As a result, the information that we provide to holders of our Class A common shares may be different than you might receive from other public reporting companies in which you hold equity interests. We cannot predict if investors will find our Class A common shares less attractive as a result of reliance on these exemptions. If some investors find our Class A common shares less attractive as a result of any choice we make to reduce disclosure, there may be a less active trading market for our Class A common shares and the market price for our Class A common shares may be more volatile.

The JOBS Act also permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to avail ourselves of this extended transition period and, as a result, we will not be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

***We are a "controlled company" and, as a result, we are exempt from obligations to comply with certain corporate governance requirements.***

Upon the completion of this offering, investment funds affiliated with Altamont Capital will own Class B common shares, representing 79.2% of the combined voting power of our common shares outstanding after this offering (or 96,138,277 Class B common shares, representing approximately 77.4% of the combined voting power of our common shares if the underwriters' option to purchase additional Class A common shares is exercised in full). Accordingly, we will be a "controlled company" for purposes of the NYSE listing requirements. As such, we will be exempt from the obligation to comply with certain corporate governance requirements, including the requirements that a majority of our Board of Directors consists of independent directors, and that we have nominating and compensation committees that are each composed entirely of independent directors. These exemptions do not modify the requirement for a fully independent audit committee, which is permitted to be phased-in as follows: (1) one independent committee member at the time of our initial public offering; (2) a majority of independent committee members within 90 days of our initial public offering; and (3) all independent committee members within one year of our initial public offering. Similarly, once we are no longer a "controlled company," we must comply with the independent board committee requirements as they relate to the nominating and compensation committees, on the same phase-in schedule as set forth above, with the trigger date being the date we are no longer a "controlled company" as opposed to our initial public offering date. Additionally, we will have 12 months from the date we cease to be a "controlled company" to have a majority of independent directors on our Board of Directors. Additionally, other than Altamont Capital and any

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of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded.

***Certain of our directors have relationships with Altamont Capital, which may cause conflicts of interest with respect to our business***.

Following this offering, two of our directors will be affiliated with Altamont Capital, our equity sponsor and an affiliate of our controlling shareholder. Our Altamont Capital directors have fiduciary duties to us and, in addition, have duties to Altamont Capital. As a result, these directors may face real or apparent conflicts of interest with respect to matters affecting both us and Altamont Capital, whose interests may be adverse to ours in some circumstances.

***You will incur immediate dilution as a result of this offering.***

If you purchase Class A common shares in this offering, you will pay more for your shares than the pro forma net tangible book value of your shares. As a result, you will incur immediate dilution of $16.83 per share, representing the difference between the initial public offering price of $19.00 per share and our pro forma net tangible book value per share as of March 31, 2025 of $2.17. Accordingly, should we be liquidated at our book value, you would not receive the full amount of your investment. In addition, you may also experience additional dilution upon future equity issuances or the exercise of share options to purchase Class A common shares granted to our employees, consultants and directors under our equity compensation plans. See "Dilution."

***Certain judgments obtained against us by our shareholders may not be enforceable.***

We are a Cayman Islands company and a portion of our assets are located outside the United States. As a result, it may be difficult or impossible for you to bring an action against us in the United States in the event that you believe that your rights have been infringed under U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands may render you unable to enforce a judgment against our assets. We have been advised by our Cayman Islands legal counsel, Maples and Calder (Cayman) LLP, that the courts of the Cayman Islands are unlikely (i) to recognize or enforce against us judgments of courts of the United States predicated upon the civil liability provisions of the securities laws of the United States or any State; and (ii) in original actions brought in the Cayman Islands, to impose liabilities against us predicated upon the civil liability provisions of the securities laws of the United States or any State, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, and or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "projection," "seek," "should," "will" or "would," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this prospectus under the headings "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in this prospectus under the headings "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business," may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Forward-looking statements contained in this prospectus include, but are not limited to, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Risk Exchange's prospects, its potential for expansion to new Members and offerings beyond the
specialty insurance market, as well as the future prospects of our overall business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to grow our business profitably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial strength;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of Members that we expect to retain and our membership growth prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to continue enhancing our technology-based solutions and gain internal efficiencies and effective
controls that promote the utility of the analytics we provide to Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to leverage our information systems to enhance the benefits available to our Members through our
Risk Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to continue to attract risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the performance of our Members and risk capital partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to accurately assess and manage the underwriting risk we retain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the competitive environment in the specialty insurance industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in government laws and regulations, including insurance regulatory laws, and how the enforcement
thereof may affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding our projected growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increased expenses associated with being a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether we will be considered a passive foreign investment company for U.S. tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the additional regulatory, legal and operational risks that may arise in connection with our expansion into
new geographies and how such risks might materially affect our business, results of operations, financial condition, and prospects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors detailed under heading "Risk Factors" beginning on page 28.

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Given the risks and uncertainties set forth in this prospectus, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this prospectus are not guarantees of future performance and our actual results of operations, financial condition, and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained in this prospectus. In addition, even if our results of operations, financial condition and liquidity, and events in the industry in which we operate, are consistent with the forward-looking statements contained in this prospectus, they may not be predictive of results or developments in future periods.

Any forward-looking statement that we make in this prospectus speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this prospectus.

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**USE OF PROCEEDS** 

We estimate that the net proceeds to us from our sale of Class A common shares in this offering will be $355.1 million, based on the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

We will not receive any of the proceeds from the sale of Class A common shares by the selling shareholders named in this prospectus. The selling shareholders will receive $155.7 million in net proceeds from the offering, based on the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions payable by the selling shareholders (or $233.7 million if the underwriters exercise in full their option to purchase additional Class A common shares).

Each $1.00 increase or decrease in the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, the net proceeds that we receive from this offering by $19.2 million, assuming that the number of Class A common shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions payable by us. Similarly, each increase or decrease of 1.0 million in the number of Class A common shares offered by us would increase or decrease, as applicable, the net proceeds that we receive from this offering by $18.0 million, assuming the assumed initial public offering price remains the same and after deducting estimated underwriting discounts and commissions payable by us.

The principal purposes of this offering are to fund the redemption of our Class C convertible preference shares if the holders do not elect to convert such preference shares to common shares at the time of the offering, increase our capitalization and financial flexibility, create a public market for our Class A common shares, and enable access to the public equity markets for us and our shareholders. We intend to use $175.3 million of the net proceeds from this offering to fund the redemption of our Class C convertible preference shares if the holders do not elect to convert such preference shares to common shares at the time of the offering, $25.0 million to fund a one-time termination fee upon the successful completion of this offering to an affiliate of Altamont Capital, see "Certain Relationships and Related-Party Transactions—Altamont Capital" with the remainder for general corporate purposes, including the continued growth of our business. Additionally, we may use a portion of the net proceeds to purchase products, services, or technologies, or acquire or invest in businesses. These businesses may include, but are not limited to, MGAs, insurance intermediaries, insurance companies, technology companies, and service providers in our ecosystem. We have not specifically identified any such businesses, including the seven Owned Members in which we own a call option to purchase some portion of their outstanding equity.

We cannot specify with certainty the particular uses of the net proceeds that we will receive from this offering or the amounts we actually spend on the uses set forth above. Pending the use of proceeds from this offering as described above, we plan to invest the net proceeds that we receive in this offering in short-term and intermediate-term interest-bearing obligations, investment-grade investments, certificates of deposit or direct or guaranteed obligations of the U.S. government. Our management will have broad discretion in the application of the net proceeds from this offering and investors will be relying on the judgment of our management regarding the application of the proceeds.

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**DIVIDEND POLICY** 

We do not currently pay dividends on any of our common shares and we currently intend to retain all available funds and any future earnings for use in the operation of our business. We may, however, pay cash dividends on our common shares, including our Class A common shares, in the future. Any future determination to pay dividends will be made at the discretion of our Board of Directors and will depend upon many factors, including our financial condition, earnings, legal and regulatory requirements, restrictions in our debt agreements and other factors our Board of Directors deems relevant.

Additionally, we are a holding company that transacts the majority of our business through operating subsidiaries. Consequently, our ability to pay dividends to shareholders is largely dependent on receipt of dividends and other distributions from our subsidiaries. Applicable insurance laws restrict the ability of our insurance and reinsurance company subsidiaries to declare shareholder dividends and require insurance companies to maintain specified levels of statutory capital and surplus. Insurance regulators have broad powers to prevent reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. State insurance regulatory authorities that have jurisdiction over the payment of dividends by our insurance and reinsurance company subsidiaries may in the future adopt statutory provisions more restrictive than those currently in effect. See "Regulation—Insurance Regulation—Restrictions on Paying Dividends."

Our ability to pay dividends may also be restricted by the terms of the Credit Agreement (as defined in "Certain Indebtedness"), or any future credit agreement or any future debt or preferred equity securities of us or our subsidiaries. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Shares—Because we do not expect to pay dividends in the foreseeable future after this offering, you must rely on price appreciation of our Class A common shares for return on your investment."

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**CAPITALIZATION** 

The following table sets forth our cash, cash equivalents and restricted cash and total capitalization as of March 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis, derived from our financial statements included elsewhere in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an as adjusted basis, giving effect to the conversion of all of our outstanding Class A convertible
preference shares and Class B convertible preference shares into Class A common shares and Class B common shares (as applicable), the redemption of the Class C convertible preference shares (on the basis that the projected value of the
redemption is in excess of the conversion value at the date of the initial public offering), and the Accelerant Holdings LP Distribution as if it had occurred on March 31, 2025 (which includes the recognition of the profits interest
compensation expense to certain officers and employees that was triggered upon the initial public offering as described below), based on the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial
public offering price range set forth on the cover page of this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an as further adjusted basis, giving effect to the adjustments set forth above and the receipt of the
estimated net proceeds from our sale and issuance by us of 20,276,280 of our Class A common shares in this offering, at the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering
price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions, and estimated offering expenses payable by us.

The as further adjusted information set forth in the table below is illustrative only and will be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing. You should read this table together with our consolidated financial statements and related notes, and the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" that are included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Actual** | **Adjusted** | **As further**<br>**Adjusted<sup>(1)</sup>** |
|  | **($ in millions)** | **($ in millions)** | **($ in millions)** |
|  Cash, cash equivalents and restricted cash | $1290.7 | $1115.4 | $1470.5 |
|  Debt | 121.5 | 121.5 | 121.5 |
|  Redeemable preference shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2024: 66,411) | 104.4 |  |  |
|  Shareholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2024: 250,457 and 2023: 249,582) | 236.7 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2024: 150,231 and 2023: 149,707) | 145.1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A and Class B common shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 127.2 | 1649.0 | 2004.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (176.3) | (1387.2) | (1.387.2) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (11.2) | (11.2) | (11.2) |
|  Non-controlling interests | 28.5 | 28.5 | 28.5 |
|  Total equity | 454.4 | 279.1 | 634.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capitalization | $575.9 | $400.6 | $755.7 |

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(1) Each $1.00 increase (decrease) in the assumed initial public offering price of $19.00 per Class A common
share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, would increase (decrease) each of cash and

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cash equivalents, additional paid-in-capital, total equity and total capitalization on a pro forma as adjusted basis by approximately $19.2 million, assuming that the number of Class A common shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Each increase (decrease) of 1.0 million shares in the number of Class A common shares sold in this offering, as set forth on the cover page of this prospectus, would increase (decrease) each of cash and cash equivalents, additional paid-in-capital, total equity, and total capitalization on a pro forma as adjusted basis by approximately $18.0 million, assuming an initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and estimated offering expenses payable by us. <br>

If the underwriters' option to purchase additional Class A common shares from us were exercised in full, as further adjusted cash and cash equivalents, additional paid-in capital, total equity and total capitalization outstanding as of March 31, 2025 would be the same as above (as the Company will not sell any Class A common shares in connection with the underwriters' option to purchase additional Class A common shares).

The as adjusted and as further adjusted columns in the table above are based on 101,143,134 Class A common shares (after giving effect to the conversion of all our outstanding Class A convertible preference shares and Class B convertible preference shares and the Accelerant Holdings LP Distribution) outstanding as of March 31, 2025, and excludes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 16,976,602 Class A common shares issuable upon the exercise of options outstanding under our 2023 Plan as of
March 31, 2025, at a weighted average exercise price of $21.23 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 35,000,000 Class A common shares reserved for future issuance under our 2023 Plan as described in
"Executive Compensation—Equity Compensation Plans and Other Benefit Plans—Share Incentive Plan" of which: (i) 2,381,858 Class A common shares will be issuable upon the vesting of restricted share units granted in connection
with the consummation of this offering (as described in the fourth bullet of this paragraph); and (ii) 28,908,880 Class A common shares will be issuable upon the exercise of common share options granted in connection with the consummation of
this offering under the 2023 Plan (as described in the fifth bullet of this paragraph. The number of shares subject to common share options is fixed by reference to the initial public offering price and a change in the initial public offering price
will have a corresponding impact on the number of shares subject to common share options granted in connection with the consummation of this offering. For additional information see "Unaudited Pro Forma Financial Information Compensation-Based
Expense Upon the Completion of this Offering");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1,000,000 Class A common shares reserved for future issuance under the ESPP, which will become effective in
connection with this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2,381,858 Class A common shares issuable upon the vesting of restricted share units granted in connection with
the consummation of this offering under the 2023 Plan, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this
prospectus), vesting with respect to 25% of the Class A common shares subject to the awards on the one-year anniversary of the grant date and in 6.25% quarterly installments through the four-year anniversary of the grant date. For additional
information see "Unaudited Pro Forma Financial Information—Compensation–Based Expense Upon the Completion of this Offering"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 28,908,880 Class A common shares issuable upon the exercise of common share options granted in connection with
the consummation of this offering under the 2023 Plan, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this
prospectus), consisting of (i) common share options with respect to 9,236,398 Class A common shares with an exercise price established on the date of grant equal to the greater of $22.49 or the initial public offering price and (ii) common share
options with respect to 19,672,482 Class A common shares with an exercise price equal to the initial public offering price, in each case, vesting with respect to 25% of the Class A common shares subject to the awards on the one-year anniversary of
the grant date and in 6.25% quarterly installments through the four-year anniversary of the grant date. The number of Class A common shares subject to the option share

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awards is fixed by reference to the initial public offering price and a change in the initial public offering price will have a corresponding impact on the number of shares subject to common share options granted in connection with the consummation of this offering. For additional information see "Unaudited Pro Forma Financial Information—Compensation–Based Expense Upon the Completion of this Offering." <br>

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**UNAUDITED PRO FORMA FINANCIAL INFORMATION** 

We have derived the unaudited pro forma financial data of Accelerant Holdings LP, our predecessor, from its financial statements for the year ended December 31, 2024 and three months ended March 31, 2025 to give effect to the pro forma adjustments related to the Accelerant Holdings LP Distribution and the conversion of all of our outstanding classes of convertible preference shares as if all such transactions had been completed as of March 31, 2025 for the balance sheet and as of January 1, 2024 for the results of operations.

We based the pro forma adjustments on available information and on assumptions that we believe are reasonable under the circumstances to reflect, on a pro forma basis, the impact of the relevant transactions on the historical financial information of Accelerant Holdings LP and Accelerant Holdings, which is a consolidated subsidiary of Accelerant Holdings LP. See the notes to unaudited pro forma financial information below for a discussion of pro forma adjustments made. The unaudited pro forma financial information does not purport to be indicative of our results of operations or financial position had the relevant transactions occurred on the dates assumed and does not project our results of operations or financial position for any future period or date.

The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of the operating results that would have occurred if this offering, the Accelerant Holdings LP Distribution and the conversion of all of our outstanding classes of convertible preference shares had been completed as of the dates set forth above, nor is it indicative of our future results. Additionally, the unaudited pro forma financial information does not give effect to the potential impact of any anticipated synergies, operating efficiencies, or cost savings that may result.

The unaudited pro forma financial information should be read together with "Capitalization" and our historical financial statements and related notes incorporated by reference in this prospectus, as well as accompanying notes to the unaudited consolidated pro forma financial statements.

**Compensation-Based Expense Upon Completion of this Offering** 

Immediately prior to the consummation of this offering, we intend to effect the Accelerant Holdings LP Distribution, pursuant to which Accelerant Holdings LP will distribute all existing common shares in the Company that it owns to the holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interest represented by those limited partnership interests. The existing common shares will then be re-designated into 74,761,258 Class A common shares and 91,423,835 Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association, assuming an initial public offering price of $19.00 per Class A common share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus. In connection with this, assuming an initial public offering price of $19.00, the midpoint of the range set forth on the cover of this prospectus, we expect to recognize a non-cash compensation expense of $1.22 billion related to the settlement of all outstanding profits interest awards through the distribution of 63,729,915 Class A common shares of the Company to certain officers and employees of the Company that fully vest upon the successful consummation of this offering. The profits interest awards will be settled by way of distribution of shares of the Company held by Accelerant Holdings LP to the officers and employees of the Company.

The $1.22 billion non-cash compensation expense is reflected within the pro forma adjustments below. Because the value of the profits interests awards will be determined by reference to the initial public offering price in this offering, a change in the assumed initial public offering price would have a corresponding impact on quantum of stock compensation expense recognized at the time of the Accelerant Holdings LP Distribution.

In addition, we expect to grant restricted share units and common share options in connection with the consummation of the offering, by reference to the initial public offering price.

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The following table describes (i) the pro forma compensation expense at the time of the Accelerant Holdings LP Distribution, (ii) the number of restricted share unit awards and common share option awards granted in connection with the initial public offering and (iii) the estimated stock compensation expense associated with the grant of the awards described in clause (ii), each at the initial public offering prices for the Class A common shares shown below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***($ amounts in millions)*** | **$18.00** | **$19.00** | **$20.00** | **$21.00** | **$22.00** | **$23.00** |
|  Pro forma stock compensation expense associated with Accelerant Holdings LP distribution | $1140.0 | $1219.4 | $1299.1 | $1379.5 | $1460.0 | $1540.4 |
|  New restricted share unit awards | 2381858 | 2381858 | 2381858 | 2381858 | 2381858 | 2381858 |
|  New common share option awards with an exercise price equal to the initial public offering price | 20714057 | 19672482 | 18346043 | 16969157 | 15739604 | 14634938 |
|  New common share option awards with an exercise price equal to the greater of $22.49 or the initial public offering price | 9236398 | 9236398 | 9236398 | 9236398 | 9236398 | 9236398 |

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**Accelerant Holdings LP (predecessor) to Accelerant Holdings (registrant)** 

**Unaudited Pro Forma Condensed Consolidated Balance Sheet** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(expressed in millions of U.S. dollars, except share data)*** | **Accelerant<br>Holdings LP<br>(predecessor)** | **AHLP<br>Distribution** | **Elimination<br>of AHLP<br>specific<br>balances** | **Conversion of<br>convertible<br>preference<br>shares** | **Accelerant<br>Holdings<br>(registrant)** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments | $64.2 | $— | $— | $— | $64.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value | 582.7 |  |  |  | 582.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 8.9 |  |  |  | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 47.0 |  |  |  | 47.0 |
|  **Total investments** | **702.8** | **—** | **—** | **—** | **702.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 1290.9 | (51.8) <sup>(a)</sup> | (0.2) <sup>(d)</sup> |  | 1238.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable, (net of $2.7 allowance) | 863.3 |  |  |  | 863.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 |  |  |  | 1708.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1266.5 |  |  |  | 1266.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 370.2 |  |  |  | 370.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 56.3 |  |  |  | 56.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 114.9 |  |  |  | 114.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 86.9 |  |  |  | 86.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 253.4 |  | 2.2 <sup>(d)</sup> |  | 255.6 |
|  **Total assets** | $**6713.9** | $**(51.8)** | $**2.0** | $**—** | $**6664.1** |
|  **Liabilities and equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 1513.1 |  |  |  | 1513.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1986.4 |  |  |  | 1986.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1186.4 |  |  |  | 1186.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 194.6 |  |  |  | 194.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 854.8 |  |  |  | 854.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 195.1 |  |  |  | 195.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 |  |  |  | 121.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 210.7 |  | (1.1) <sup>(d)</sup> |  | 209.6 |
|  **Total liabilities** | $**6262.6** | $**—** | $**(1.1)** | $**—** | $**6261.5** |
|  **Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share, issued and outstanding of 100; amounts are recorded at liquidation preference | $51.8 | $(51.8) <sup>(a)</sup> | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerant Holdings LP partners' common shares: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share (issued and outstanding of 8,491,134,079) | $110.6 | $(110.6) <sup>(b)</sup> | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share (issued and outstanding of 693,970,910) | 12.1 | (12.1) <sup>(b)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerant Holdings Class A and B common shares (par value $0.000001 per share, 166,185,094 shares issued and outstanding) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital |  | 1342.1 &nbsp;&nbsp;&nbsp;&nbsp;<sup>(b)</sup> | (57.4) <sup>(d)</sup> | 496.3 <sup>(e)</sup> | 1781.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (12.9) | — &nbsp;&nbsp;&nbsp;&nbsp;<sup>(c)</sup> | 1.7 <sup>(d)</sup> |  | (11.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (206.7) | (1219.4) <sup>(c)</sup> | 30.4 <sup>(d)</sup> |  | (1395.7) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity** | **(96.9)** | **—** | **(25.3)** | **496.3** | **374.1** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: convertible preference shares of Accelerant Holdings | 486.2 |  |  | (486.2) <sup>(e)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: other interests | 10.2 |  | 28.4 <sup>(d)</sup> | (10.1) <sup>(e)</sup> | 28.5 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total non-controlling interests** | **496.4** | **—** | **28.4** | **(496.3)** | **28.5** |
|  **Total equity** | **451.3** | **(51.8)** | **3.1** | **—** | **402.6** |
|  **Total liabilities and equity** | $**6713.9** | $**(51.8)** | $**2.0** | $**—** | $**6664.1** |

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP (predecessor) to Accelerant Holdings (registrant)** 

**Unaudited Pro Forma Condensed Consolidated Statements of Operations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(expressed in millions of U.S. dollars)*** | **Accelerant<br>Holdings LP<br>(predecessor)** | **AHLP<br>Distribution** | **Elimination of<br>AHLP<br>specific<br>balances** | **Conversion of<br>convertible<br>preference<br>shares** | **Accelerant<br>Holdings<br>(registrant)** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $70.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 |  |  |  | 28.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 |  |  |  | 63.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 |  |  |  | 12.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 |  |  |  | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 1.7 |  |  |  | 1.7 |
|  **Total revenues** | **178.0** | **—** | **—** | **—** | **178.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 |  |  |  | 45.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 |  |  |  | 17.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 70.0 |  | (0.1)<sup>(f)</sup> |  | 69.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 |  |  |  | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 |  |  |  | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 |  |  |  | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 |  |  |  | 14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange gains | 2.9 |  | 0.2 <sup>(f)</sup> |  | 3.1 |
|  **Total expenses** | **162.4** |  | **0.1** | **—** | **162.5** |
|  **Income before income taxes** | **15.6** | —  | **(0.1)** | **—** | **15.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) |  |  |  | (7.7) |
|  **Net income** | **7.9** |  | **(0.1)** | **—** | **7.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net income attributable to non-controlling interests | (1.3) |  |  |  | (1.3) |
|  **Net income attributable to entity** | $**6.6** | $**—** | $**(0.1)** | $**—** | $**6.5** |
|  **Net income attributable to Accelerant Holdings per Class A and B common shares\*:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | $0.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | $0.03 |
|  **Weighted-average Class A and B common shares outstanding:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | 166185094 <sup>(g)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | 205273147 <sup>(g)</sup> |

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP (predecessor) to Accelerant Holdings (registrant)** 

**Unaudited Pro Forma Condensed Consolidated Statements of Operations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(expressed in millions of U.S. dollars)*** | **Accelerant<br>Holdings LP<br>(predecessor)** | **AHLP<br>Distribution** | **Elimination of<br>AHLP<br>specific<br>balances** | **Conversion of<br>convertible<br>preference<br>shares** | **Accelerant<br>Holdings<br>(registrant)** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;249.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $249.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 |  |  |  | 226.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 |  |  |  | 66.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 39.1 |  | (0.2)<sup>(f)</sup> |  | 38.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 1.9 |  |  |  | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 |  |  |  | 19.0 |
|  **Total revenues** | **602.8** | **—** | **(0.2)** | **—** | **602.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 |  |  |  | 167.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 |  |  |  | 81.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.9 |  | (0.4)<sup>(f)</sup> |  | 227.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 |  |  |  | 13.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 |  |  |  | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 |  |  |  | 26.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 | 1219.4 <sup>(c)</sup> |  |  | 1266.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange gains | (4.8) |  | (0.3)<sup>(f)</sup> |  | (5.1) |
|  **Total expenses** | **571.3** | **1219.4** | **(0.7)** | **—** | **1790.0** |
|  **Income (loss) before income taxes** | **31.5** | **(1219.4)** | **0.5** | **—** | **(1187.4)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) |  |  |  | (9.1) |
|  **Net income (loss)** | **22.4** | **(1219.4)** | **0.5** | **—** | **(1196.5)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net loss attributable to non-controlling interests | 4.3 |  |  |  | 4.3 |
|  **Net income (loss) attributable to entity** | $**26.7** | $**(1219.4)** | $**0.5** | $**—** | $**(1192.2)** |
|  **Net loss attributable to Accelerant Holdings per Class A and B common shares\*:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | $(7.18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | $(7.18) |
|  **Weighted-average Class A and B common shares outstanding:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  |  |  | 165982094 <sup>(g)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  |  |  | 165982094 <sup>(g)</sup> |

---

**Notes to the Unaudited Pro Forma Financial Information** 

\* The original net income attributable to Accelerant Holdings per common share is presented in Accelerant Holdings' consolidated statements of operations for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively included within our condensed consolidated interim financial statements and annual consolidated financial statements included elsewhere in this prospectus. 

(a) AHLP distribution adjustment to reflect the anticipated redemption of AHLP's Class D shares at the
time of the initial public offering.

(b) Cancellation of Accelerant Holdings LP common shares in the total amount of $122.7 million in exchange for
common shares of Accelerant Holdings following the re-designation of existing common shares following the Accelerant Holdings LP Distribution.

(c) Adjustment for a non-cash compensation expense of $1.22 billion related to the settlement of all outstanding
profits interest awards to certain officers and employees of the Company that fully vest upon the successful consummation of this offering. The profits interest awards will be settled by way of the distribution of common shares of the Company owned
by Accelerant Holdings LP to the holders of the profits interest awards, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated

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initial public offering price range on the cover page of this prospectus). For additional information see "Unaudited Pro Forma Financial Information—Compensation-Based Expense Upon the Completion of this Offering."

(d) Adjustments for Accelerant Holdings LP specific account balances that are not attributable to Accelerant
Holdings (the accumulated deficit adjustments relate to $22.2 million of accretion adjustments from redeemable preferred shares and $8.2 million of accumulated deficit since inception, which are offset within additional paid-in capital).

(e) Conversion of Accelerant Holdings outstanding Class A convertible preference shares, Class B
convertible preference shares and Class C convertible preference shares to Accelerant Holdings common shares and warrants that will be reclassified to additional paid-in capital at the time of the initial public offering. Such shares and
warrants were previously included as non-controlling interests within the Accelerant Holdings LP financial statements as they were issued by Accelerant Holdings. The classification of all classes of our convertible preference shares is described in
Note 2 to our consolidated financial statements, which consists of the Class A and Class B convertible preference shares as permanent equity and the Class C convertible preference shares as mezzanine or temporary equity (given the
nature of both redemption and conversion features of the Class C convertible preference shares that are not available to other holders of equally or more subordinated equity instruments of the Company). We deemed the Class C convertible
preference shares probable of conversion to common shares when considering both the expected timing and nature of events giving rise to the redemption or conversion rights of the holders of such Class C convertible preference shares at the date
of issuance. However, variability in the timing or pricing of the offering could result in the holders electing to redeem their shares as described in the notes to our consolidated financial statements (refer to Notes 2 and 16 to our annual
consolidated financial statements included elsewhere in this prospectus for additional information).

(f) Adjustments for specific Accelerant Holdings LP transactions that are not attributable to the operating
results of Accelerant Holdings.

(g) The pro forma basic and diluted shares were derived from the Accelerant Holdings consolidated financial
statements, as adjusted for i) the 83.6690-for-1 share subdivision of the Company's common and preference shares approved by the Company's Board of Directors in preparation for this offering; and ii) (for the year ended
December 31, 2024) to reflect the anti-dilutive nature of certain potential common shares (due to the pro forma basis net loss attributable to the entity). Refer to Note 12 to our condensed consolidated interim financial statements and
Note 22 to our annual consolidated financial statements included elsewhere in this prospectus for additional information.

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**DILUTION** 

If you invest in our Class A common shares in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per common share and the pro forma as adjusted net tangible book value per common share immediately after this offering. Dilution in pro forma as adjusted net tangible book value per share to new investors represents the difference between the amount per share paid by purchasers of our Class A common shares in this offering and the pro forma as adjusted net tangible book value per common share immediately after completion of this offering.

Net tangible book value per share is determined by dividing our total tangible assets less our total liabilities and redeemable convertible preference shares by the number of our common shares outstanding. Our historical net tangible book value as of March 31, 2025, was $148.2 million, or $0.74 per share, after giving effect to the conversion of all Class B common shares into Class A common shares. Our pro forma net tangible book value as of March 31, 2025 excludes any potential redemptions of Class C convertible preference shares that were issued in December 2024 if the holders do not elect to convert such preference shares to common shares at the time of this offering.

After giving effect to the sale by us of 20,276,280 Class A common shares and the sale by the selling shareholders of 8,671,088 Class A common shares in this offering at the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, the conversion of all Class B common shares into Class A common shares, based on the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions, and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of March 31, 2025, would have been $432.4 million, or $2.17 per share. This represents an immediate increase in pro forma as adjusted net tangible book value of $1.43 per share of Class A common shares and $1.43 per share of Class B common shares and an immediate dilution in pro forma as adjusted net tangible book value of $16.83 per share to investors purchasing our Class A common shares in this offering. The following table illustrates this dilution:

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| | | |
|:---|:---|:---|
|  Assumed initial public offering price per common share |  | $19.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical net tangible book value per share as of March 31, 2025 | $0.74 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase per share attributable to the pro forma adjustments from new investors purchasing Class A common shares as described above | 1.43 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma as adjusted net tangible book value per share immediately after this offering |  | 2.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilution in pro forma as adjusted net tangible book value per share to new Class A common share investors in this offering |  | $16.83 |

---

Each $1.00 increase (decrease) in the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, would increase (decrease) our pro forma as adjusted net tangible book value after this offering by approximately $19.0 million, or $0.10 per share, and would increase (decrease) the dilution per share to new investors purchasing our Class A common shares in this offering by $0.90 per share, assuming that the number of Class A common shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and estimated offering expenses payable by us. Each increase (decrease) of 1.0 million shares in the number of Class A common shares sold in this offering, as set forth on the cover page of this prospectus, would increase (decrease) our pro forma as adjusted net tangible book value after this offering by approximately $18.0 million, or $0.08 per share, and would increase (decrease) the dilution per share to new investors by $(0.08) per share, assuming that the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover

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page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and estimated offering expenses payable by us.

The following table presents, on a pro forma basis as of March 31, 2025, after giving effect to (i) the re-designation of shares following the Accelerant Holdings LP Distribution and (ii) the sale by us of Class A common shares in this offering (assuming the conversion of all Class B common shares into Class A common shares) based on the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, the difference between the existing shareholders and the investors purchasing Class A common shares in this offering with respect to the number of Class A common shares purchased from us, the total consideration paid or to be paid to us, and the average price per share paid or to be paid to us, before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. As the table shows, new investors purchasing common stock in this offering will pay an average price per share substantially higher than our existing stockholders paid.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Average<br>Price Per<br>Share** |
|  | **Number** | **Percent** | **Amount** | **Percent** | |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
|  Existing shareholders | 191039194 | 86.8% | $460654 | 45.6% | $2.41 |
|  New investors | 28947368 | 13.2 | 549999 | 54.4 | 19.00 |
|  Total | 219986563 | 100.0% | $1010654 | 100.0% |  |

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Each $1.00 increase (decrease) in the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, would increase (decrease) the total consideration paid by new investors and average price per share paid by new investors by $28.9 million and $0.13 per share, respectively, assuming that the number of Class A common shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions, and estimate offering expenses payable by us. Each increase (decrease) of 1.0 million shares in the number of shares sold in this offering, as set forth on the cover page of this prospectus, would increase (decrease) the total consideration paid by new investors and average price per share paid by new investors by $19.0 million and $0.07 per share, respectively, assuming that the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

If the underwriters exercise in full their option to purchase 4,342,105 additional Class A common shares at the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, the pro forma as adjusted net tangible book value per share after this offering would be $2.17 per share and the dilution to new investors in this offering would be $16.83 per share. If the underwriters exercise such option in full, the number of shares held by new investors will increase to 33,289,473 Class A common shares, or approximately 32.9% of the total number of Class A common shares outstanding after this offering.

The number of Class A common shares and Class B common shares that will be outstanding after this offering is based on 219,986,563 Class A common shares (after giving effect to the re-designation of shares following the Accelerant Holdings LP Distribution and assuming the conversion of all Class B common shares into Class A common shares) outstanding as of March 31, 2025, based on the assumed initial public offering price of $19.00 per share, which is the midpoint of the estimated initial public offering range set forth on the cover page of this prospectus, and excludes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 16,976,602 Class A common shares issuable upon the exercise of options outstanding under our 2023 Plan as of
March 31, 2025, at a weighted average exercise price of $21.23 per share;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 35,000,000 Class A common shares reserved for future issuance under our 2023 Plan as described in
"Executive Compensation—Equity Compensation Plans and Other Benefit Plans—Share Incentive Plan" of which: (i) 2,381,858 Class A common shares will be issuable upon the vesting of restricted share units granted in connection with
the consummation of this offering under the 2023 Plan (as described in the fourth bullet of this paragraph); and (ii) 28,908,880 Class A common shares will be issuable upon the exercise of common share options granted in connection with the
consummation of this offering under the 2023 Plan (as described in the fifth bullet of this paragraph). The number of shares subject to common share options is fixed by reference to the initial public offering price and a change in the initial
public offering price will have a corresponding impact on the number of shares subject to common share options granted in connection with the consummation of this offering. For additional information see "Unaudited Pro Forma Financial
Information—Compensation-Based Expense Upon the Completion of this Offering;")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1,000,000 Class A common shares reserved for future issuance under the ESPP, which will become effective in
connection with this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2,381,858 Class A common shares issuable upon the vesting of restricted share units granted in connection with
the consummation of this offering under the 2023 Plan, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this
prospectus), vesting with respect to 25% of the Class A common shares subject to the awards on the one-year anniversary of the grant date and in 6.25% quarterly installments through the four-year anniversary of the grant date. For
additional information see "Unaudited Pro Forma Financial Information—Compensation-Based Expense Upon the Completion of this Offering;" and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 28,908,880 Class A common shares issuable upon the exercise of common share options granted in connection with
the consummation of this offering under the 2023 Plan, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this
prospectus), consisting of (i) common share options with respect to 9,236,398 Class A common shares with an exercise price established on the date of grant equal to the greater of $22.49 or the initial public offering price and (ii) common
share options with respect to 19,672,482 Class A common shares with an exercise price equal to the initial public offering price, in each case, vesting with respect to 25% of the Class A common shares subject to the awards on the one-year
anniversary of the grant date and in 6.25% quarterly installments through the four-year anniversary of the grant date. The number of Class A common shares subject to the option share awards is fixed by reference to the initial public offering price
and a change in the initial public offering price will have a corresponding impact on the number of shares subject to common share options granted in connection with the consummation of this offering. For additional information see "Unaudited
Pro Forma Financial Information—Compensation-Based Expense Upon the Completion of this Offering."

To the extent any options are granted and exercised in the future, there may be additional economic dilution to new investors.

In addition, we may choose to raise additional capital due to market conditions or strategic considerations, even if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital through the sale of equity, as Class A common shares, or other securities that are convertible into our Class A common shares, such as convertible debt securities, the issuance of these securities could result in further dilution to our shareholders.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following discussion and analysis of our financial condition and our results of operations should be read in conjunction with the sections titled "Prospectus Summary — Summary Accelerant Holdings Historical Consolidated Financial Data" and "Unaudited Pro Forma Financial Information," and our consolidated annual financial statements and related notes thereto, our condensed consolidated interim financial statements and related notes thereto and other information included elsewhere in this prospectus. This management's discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections titled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" included elsewhere in this prospectus. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.* 

**Basis of Presentation** 

Accelerant Holdings LP, a Cayman Islands exempted limited partnership formed in 2018 and our current controlling parent entity, is the ultimate parent company of the Accelerant group of companies. In December 2021, we initiated a series of reorganization transactions pursuant to which our company, Accelerant Holdings, was established and became the primary holding company of the Accelerant group of companies. This reorganization has been accounted for as a transaction between entities under common control and is expected to be completed upon the distribution by Accelerant Holdings LP of 1,986,221 of our existing common shares to holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interests represented by those limited partnership interests. This distribution will occur immediately prior to the consummation of this offering. The existing common shares will then be re-designated into 74,761,259 Class A common shares and 91,423,836 Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range on the cover page of this prospectus). We refer to this distribution as the Accelerant Holdings LP Distribution. After the consummation of this offering, Accelerant Holdings LP will be dissolved.

Prior to the completion of the Accelerant Holdings LP Distribution, Accelerant Holdings LP is considered under applicable SEC rules and guidance to be our predecessor entity. Accordingly, the consolidated annual financial statements of each of Accelerant Holdings and Accelerant Holdings LP are included elsewhere in this prospectus. However, the assets and liabilities and operating results of Accelerant Holdings LP are insignificant in relation to the financial statements of Accelerant Holdings and as such, the financial information referenced within this prospectus, including that presented in this section, is that of Accelerant Holdings unless otherwise specified.

**Overview of Accelerant** 

We operate a data-driven risk exchange that connects selected specialty insurance underwriters (the "Sellers" on our platform) with risk capital partners (the "Buyers" on our platform). Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

The Accelerant Risk Exchange simplifies the traditional insurance value chain, which is fragmented, costly, and inflexible. Legacy technology, excessive intermediation, and misaligned incentives cause data leakage, high costs, and wasted resources for participants. Our technology powered platform addresses these issues by connecting specialty underwriters, typically MGAs (our "Members"), and risk capital partners, including insurers, reinsurers, and institutional investors (our "risk capital partners"). On the "supply side" of our Risk Exchange, we deliver a full service offering to our Members that includes insights and analytics, distribution management, operational resources, and the commitment of stable underwriting capacity. Our offerings free our Members to focus on growing their businesses through their core expertise of profitable underwriting. On the "demand side" of our Risk

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Exchange, we offer risk capital partners an attractive, validated, and diversified portfolio of specialty insurance premium that may otherwise be difficult to access elsewhere. Risk capital partners who provide capacity through our Risk Exchange pay us recurring fees to source, manage, and monitor risks on their behalf. The Risk Exchange portfolio's strong returns to date promote confidence from these risk capital partners in the quality of the portfolio's risk exposure, leading to better pricing and faster execution for our Members, which, in turn, empowers our Members to focus on profitable underwriting performance and growth.

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of March 31, 2025, we had 232 Members and 96 risk capital partners on our platform and we have grown Exchange Written Premium at a 217% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

***Our Members ("Supply Side" of the Risk Exchange)***

We view the Members sourcing and underwriting policies as the "supply side" of our Risk Exchange. The vast majority of our Members are independent third parties, in which Accelerant has no ownership stake. We refer to these Members as "Independent Members." Each Independent Member enters into a long-term contract with Accelerant where it agrees to underwrite certain types of policies through the Risk Exchange. Generally, these contracts are five years in duration and subject to annual renewal, with Accelerant retaining a right to terminate early for performance reasons. For a large majority of the gross written premium produced by Independent Members, Accelerant has an exclusive arrangement to write such policy types with the Independent Member. Additionally, Accelerant has the right of first refusal to offer new products an Independent Member may launch on the Risk Exchange.

The remaining Members consist of "Owned Members" and "Mission Members." Owned Members are Members in which we either have a minority ownership interest or controlling equity interest. Typically, our investments in Owned Members take the form of an initial minority ownership interest and a contractual call option for a controlling equity ownership interest over time. In all but two instances, these investments took place within 40 weeks after an MGA had been a Member on the platform. Mission Members are Members started within Mission Underwriters, our MGA incubation platform. With Mission Underwriters, we support entrepreneurial specialty underwriters with start-up capital and operational tools and resources to form their own MGAs that are then jointly owned by Mission Underwriters and the specialty underwriters. Our primary means of identifying such underwriters is our reliance on the Accelerant management team's knowledge of the specialty insurance markets, which includes reliance on certain historical metrics (such as loss ratios) from their underwriting track records at reputable incumbent institutions and, generally, prospective Mission Underwriters' reputations among the industry, leveraging our experience and tenure in the space. Such knowledge includes an awareness of high-quality underwriters in these markets. Mission Underwriters attracts specialty underwriters with its independence, turnkey back office, and equity incentivization combined with the overall Accelerant value proposition. We supplement this market awareness with arrangements with a number of specialist recruiters that seek out underwriters that match our desired profile. While our ongoing recruitment efforts will continue to be important as we grow, we do not currently expect any associated recruitment costs to increase materially over time. Mission Underwriters owns the majority of the MGAs that it helped to create, with meaningful equity shared with management teams based on the performance of their MGA.

The gross premium written by Independent Members and placed through the Risk Exchange is referred to as "Independent Premium." The gross premium written by Mission Members and Owned Members and placed through the Risk Exchange is referred to as "Owned Premium." Historically, Independent Premium has comprised the large majority of Exchange Written Premium, and we expect this trend to continue over time.

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**Members and Exchange Written Premium Detail** 

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2024** | **March 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** | **December 31, 2022** | **December 31, 2022** |
| ***($ in millions)*** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of**<br>**Members** | **Exchange<br>Written<br>Premium** | **# of<br>Members** | **Exchange**<br>**Written<br>Premium** |
|  Independent Members | 185 | $713.9 | 126 | $413.9 | 170 | $2180.4 | 114 | $1146.3 | 70 | $803.7 |
|  Mission Members | 31 | 173.9 | 27 | 81.1 | 30 | 530.5 | 25 | 311.6 | 15 | 191.1 |
|  Owned Members | 16 | 97.4 | 17 | 88.8 | 17 | 397.5 | 16 | 329.4 | 16 | 205.9 |
|  **Total**  | **232** | $**985.2** | **170** | $**583.8** | **217** | $**3108.4** | **155** | $**1787.3** | **101** | $**1200.7** |

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***Our Risk Capital Partners ("Demand Side" of the Risk Exchange)***

We view our risk capital partners, who appoint Accelerant to source, monitor, and manage portfolios of insurance policies supplied by Members on their behalf, as the "demand" side of our Risk Exchange. Currently, our risk capital partners include third-party insurance companies, reinsurance companies, and institutional investors. As of March 31, 2025, 13 Risk Exchange Insurers accessed gross premium written directly from the Risk Exchange (on a primary insurance basis) rather than via reinsurance from Accelerant Underwriting, accounting for 19% of the premium written on the Risk Exchange for the three months ended March 31, 2025.

We refer to gross premium written directly on behalf of Risk Exchange Insurers as "Third-Party Direct Written Premium." All premiums written by Accelerant Underwriting, including that which is ultimately reinsured to institutional investors and third-party reinsurers, is referred to as "Accelerant GWP." We expect the premium placed with Risk Exchange Insurers will increase in coming years and as a result, the contribution from Third-Party Direct Written Premium will continue to increase. This will lead to less overall revenue growth in our Underwriting segment, but more direct commission income within our Exchange Services segment. The business mix shift should lead to higher and more consistent consolidated profitability margins. We believe that the indicators of financial success across the platform will continue to be Exchange Written Premium growth and consolidated profitability.

For Accelerant Underwriting, we have historically targeted reinsuring approximately 90% of its gross premium written to institutional investors and third-party reinsurers, with Accelerant retaining approximately 10% of the risk associated with these gross premiums written, which we believe is a strategic asset and demonstrates alignment with our risk capital partners. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

***Our Business Model***

We operate our business across three reportable segments – Exchange Services, which is the core offering of Accelerant, as well as MGA Operations and Underwriting. Exchange Services and MGA Operations are both fee-based businesses. Underwriting captures the net ceding commission income from reinsurers and Flywheel Re and net underwriting profit from retained business that is written or assumed by Accelerant Underwriting companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange Services: The Exchange Services segment includes the revenue and expenses associated with our Risk
Exchange. It consists of the Risk Exchange, our operating platform that incorporates all of our technology, data ingestion, and agency operations that serve the needs of our Members and risk capital partners. Risk capital partners writing premiums
directly through the Risk Exchange pay us a fixed-percentage, volume-based fee for sourcing, managing and monitoring the business they write, which is netted by the amount the Risk Exchange pays in
performance-based commissions to Members.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• MGA Operations: MGA Operations includes results from Mission Members and Owned Members. This segment reports
all revenue and expenses from Mission Members as well as Owned Members in which we have ownership positions large enough to be consolidated and equity method income for those in which we have a minority equity ownership interest. The largest
component of the segment is our investment in the 31 Mission Members as of March 31, 2025, which operate in the U.S., UK, and EEA. This segment also includes 16 Owned Members as of March 31, 2025, of which, nine are majority-owned and
controlled by us and therefore consolidated in our financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Underwriting: Our Underwriting segment includes all revenue and expenses associated with our Accelerant
Underwriting companies (each of which solely operates through the Risk Exchange) and reinsurance company. We view the Underwriting segment as a strategic asset and source of operational flexibility that we use to align incentives with current and
prospective risk capital partners. Our Accelerant Underwriting companies earn premiums and pay losses from business sourced and retained through the Risk Exchange. Our Accelerant Underwriting companies pay commissions to the Risk Exchange as
consideration to access this business on market-consistent terms with Risk Exchange Insurers. This is offset by the ceding commission we receive from several third-party reinsurers including Flywheel Re, a reinsurance sidecar, for ceding premium and
losses to them. The performance of our Underwriting segment will vary with the performance of the portfolio reinsured to third-party risk capital partners. We expect the portion of Risk Exchange premium underwritten by Accelerant Underwriting
companies to decrease over time, relative to other segments, as Risk Exchange Insurers increase in number and grow their premium written through our Risk Exchange.

A high-level view of our business model is included below (based on activity for the trailing twelve months ended March 31, 2025):

![LOGO](g543111g08k08.jpg)

<sup>(1)</sup> Calculated as Exchange Services segment direct commission income divided by Exchange Written Premium.

<sup>(2)</sup> Calculated as MGA Operations segment direct commission income, net investment income ($4.4 million) and net realized gains on investments ($3.3 million) divided by Exchange Written Premium attributable to Mission Members and Owned Members. 

(3) Calculated as net earned premium and the amortization of deferred excess ceding commission income, reduced by
net losses and the amortization of DAC, plus net investment income and net realized gains and net unrealized gains (losses) on investments expressed as a percentage of total Underwriting gross earned premium, excluding operating expenses.

**Key Factors that Could Affect Our Performance** 

***Ability to Maintain and Grow Our Member Base***

We believe there is a significant opportunity to attract new Members to the Risk Exchange and grow our existing Members. This is impacted by our ability to continue to deliver a holistic and compelling value

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proposition. We believe that existing and prospective Members will continue to be drawn to the Risk Exchange, and the growth of Members facilitated by our strong Member-centric service model, high value-add data and analytics capabilities, and ability to provide stable multi-year capacity.

***Access to Third-Party Capital Providers to Support Members***

Our future revenue growth also depends, in part, on our ability to expand our relationships with new and existing third-party capital providers to meet the growth of gross premiums sourced by our Members. We believe that the low-hazard, low-limit specialty business that we source from our Members will continue to attract these third-party risk capital partners. Since 2019, we have grown our risk capital partners from two to 96 as of March 31, 2025. As of March 31, 2025, we had 13 Risk Exchange Insurers, many of whom continue to express interest in increasing their allocations and outpacing the premium volume exchanged on our platform.

***Sourcing a Portfolio with Sustainable Loss Ratios*** 

Our ability to maintain the support of risk capital partners depends, in part, on maintaining an attractive ratio of gross premiums to gross losses and gross commissions that risk capital partners pay to the Risk Exchange. We believe the historic quality of the portfolio written by our Members is reflected by the gross loss ratios of 53.3% and 52.1% for the three months ended March 31, 2025 and 2024, respectively. We intend to leverage our data and analytics capability and our team of expert underwriters to continue to produce a portfolio with increasing diversification and attractive risk/return characteristics for our risk capital partners.

***Investing in Technology Platform Capabilities*** 

We continue to invest in our Risk Exchange to add capabilities and enhance the overall user experience of Risk Exchange participants and deepen our analytical and underwriting insights. Our ability to successfully attract high-quality specialty underwriters and risk capital depends on our ability to continue to develop value from our technology platform. We may choose to increase our level of investment in technology from past levels to enhance the platform capabilities and our competitive position. We believe that our ability to deliver platform capabilities that our Risk Exchange participants perceive as unique will continue in the future.

***Compensation-Based Expense Upon Completion of this Offering*** 

Immediately prior to the consummation of this offering, we intend to effect the Accelerant Holdings LP Distribution, pursuant to which Accelerant Holdings LP will distribute all existing common shares in the Company that it owns to the holders of existing limited partnership interests of Accelerant Holdings LP in proportion to the economic interest represented by those limited partnership interests. The existing common shares will then be re-designated into 74,761,259 Class A common shares and 91,423,836 Class B common shares (as applicable) immediately following the effectiveness of our amended and restated memorandum and articles of association, assuming an initial public offering price of $19.00 per Class A common share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus. In connection with this, we expect to recognize compensation expense between $1,140 million and $1,240 million at the time of the Accelerant Holdings LP Distribution for the value of the new Class A common shares and Class B common shares of the Company, assuming an initial public offering price of $19.00 per Class A common share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus. This number is fixed by reference to the initial public offering price and a change in the initial public offering price will have a corresponding impact on the amount of compensation expense in connection with the consummation of this offering. See "Unaudited Pro Forma Financial Information—Compensation-Based Expense Upon Completion of this Offering." In each reporting period subsequent to the Accelerant Holdings LP Distribution, we expect to recognize a non-cash compensation expense equal to the value of the restricted common shares of the Company that vested and became unrestricted during each such reporting period. This compensation expense will be material to the Company's income in future periods.

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***Costs of Being a Public Company*** 

To operate as a public company, we will be required to continue to implement changes in certain aspects of our business and develop, manage, and train employees to comply with ongoing public company requirements. We will also incur new expenses as a public company, including public reporting obligations, proxy statements, stockholder meetings, stock exchange fees, transfer agent fees, SEC and FINRA filing fees and offering expenses. These expenses will have the effect of reducing our profit.

**Key Components of Our Results of Operations** 

**Revenue** 

***Ceding commission income***

We cede a significant portion of the premiums written on behalf of Accelerant Underwriting companies to third-party reinsurance companies or institutional investors through Flywheel Re. This generates positive ceding commissions which are recorded as a reimbursement for (and reduction of) the acquisition costs related to the reinsurance portion of the ceded insurance business. Ceding commissions that are in excess of the proportionate share of the DAC of the business ceded are deferred and amortized over the same period in which the related premium is earned. The amortization of this excess ceding commission income is recorded as "Ceding commission income" in the consolidated statements of operations within revenue. Certain ceding commissions are subject to sliding scale adjustments based on the actual loss experience of covered insurance contracts, which can result in the need for us to refund previous commissions received, resulting in a reduction of income in the determined period. These adjustments often occur well after the ceding commissions are earned based on the development of insurance liabilities. In such instances, commission adjustments are not subject to deferral and are instead recorded directly as income or loss when determined. Accordingly, in all cases, we adjust ceding commissions as of the reporting date for our best estimate of loss experience for reinsured insurance policies.

***Direct commission income***

Accounting treatment of direct commissions received in the Exchange Services and the MGA Operations segments depend on whether the direct commission is being paid on an intercompany basis or by a third party.

Direct commissions paid by one Accelerant entity to another (referred to as "intercompany basis") are required to be eliminated in consolidation pursuant to generally accepted accounting principles. These include fees paid by Accelerant Underwriting companies to the Risk Exchange, as well as commissions paid by the Risk Exchange to Mission Members and/or to Owned Members. These intercompany direct commissions are recognized under "Direct commission income" in our consolidated statements of operations under the segment to which they relate, and are fully recognized by the segment when the services and related performance obligations are completed.

While these intercompany basis commissions are all eliminated on a consolidated basis, we nevertheless derive a significant economic benefit from these commissions. Unlike third parties, which bear the costs of the services performed by the Risk Exchange in the form of cash payments, we do not bear the cost of such services once fully eliminated, resulting in less commission amortization expense over the insurance policy term. This has the practical effect of increasing consolidated earnings as the corresponding premiums are earned. Direct commission income paid by third parties in the Exchange Services or MGA Operations segments are fully recognized in the current period under "Direct commission income" in the statement of operations, to the extent that the underlying services and performance obligations to which they relate have been performed. As more business is written by Risk Exchange Insurers, we expect a higher proportion of direct commission income to be recognized on a consolidated basis (instead of being subject to elimination on an intercompany business basis, as discussed above).

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***Net earned premiums***

Net earned premiums represent the earned portion of gross written premiums ("GWP") sourced from Accelerant Underwriting companies, less the portion of our GWP that is ceded to third-party reinsurers under our quota share and excess of loss reinsurance agreements. Premiums are earned in proportion to the amount of insurance protection provided over the term of the insurance contract. Unearned premiums represent the portion of premiums written applicable to the unexpired term of the related policy.

***Net investment income***

Net investment income represents interest earned from fixed maturity securities, short-term securities and other investments. Dividends on equity securities and other investments are also included in net investment income. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in net investment income, net of investment management and custody fees. The principal factors that influence net investment income are the size of our investment portfolio and the yield on that portfolio.

We have certain unconsolidated investments within our MGA Operations segment and we account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments within net investment income, or the measurement alternative accounted for at fair value based on observable price changes or impairment. Any decline in value of equity method investments considered by management to be other than temporary is charged to income in the period in which it is determined.

***Net realized and unrealized gains (losses) on investments***

Our equity securities primarily consist of interests in investment funds that primarily invest in debt securities. The equity securities are measured at fair value with changes in fair value recognized in net realized and unrealized gains (losses) on investments. Realized gains and losses on disposition of investments are based on specific identification of investments sold.

We hold other investments such as limited partnership and private equity investments in operating entities whereby we elected the measurement alternative to carry such investments at cost, less any impairment and to mark to fair value when observable prices in identical or similar investments from the same issuer occur with changes in fair value recognized in net unrealized gains on investments.

**Expenses** 

***Losses and loss adjustment expenses***

The reserves for losses and loss adjustment expenses ("LAE") include estimates for unpaid claims and claim expenses on reported losses as well as estimates of losses incurred but not reported ("IBNR"). These reserves represent our best estimates of the unpaid portion of ultimate costs of all reported and unreported losses incurred through the balance sheet date, and these estimates are based upon the assumption that past developments are an appropriate indicator of future events, among other factors. The reserves are based on individual claims, case reserves and other estimates reported, as well as actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses are estimates and may vary materially from the amounts provided in the consolidated financial statements. These estimates are reviewed regularly. As experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in our consolidated statements of operations in the period in which they become known and are accounted for as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

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***Amortization of deferred acquisition costs***

Policy acquisition costs represent the costs directly related to the successful acquisition of new and renewal insurance contracts. The costs are deferred and amortized over the same period in which the related premiums are earned. These costs principally consist of commissions, fees, brokerage, premium tax expenses, and direct agency costs. The amounts presented within the consolidated balance sheets pertain to the DAC associated with the retained portion of insurance policies we issue, as the acquisition costs associated with the ceded portion of the insurance policies are offset by ceding commissions received from our reinsurance providers. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable deferred policy acquisition costs, if any, are expensed in the period identified.

***General and administrative expenses***

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses and are expensed as incurred. Generally, we expect our distribution, underwriting, and claims operating expenses to be most closely tied to growth of our membership and Risk Exchange premium volume. However, these and other functions within the Risk Exchange and our other segments have large, fixed-cost components that we believe will increase operating leverage as gross premiums continue to grow.

***Technology and development operating expenses***

Technology and development operating expenses consist primarily of salaries and associated costs of the ongoing development, maintenance and administration of the Risk Exchange technology. Our costs have been significant as we have focused on the development of our technology. We expect that our technology and development costs will continue to increase for at least the next several years as we continue to dedicate substantial investment to the development of technologies facilitating our Risk Exchange.

During the three months ended March 31, 2025, we invested $6.5 million in our Risk Exchange-specific technology and development, including $3.5 million of capitalized costs. Once a software development project has reached the application development stage, certain internal, external, direct and indirect costs are subject to capitalization. Generally, costs are capitalized until the technology is available for its intended use. Subsequent costs incurred for the development of future upgrades and enhancements, which are expected to result in additional functionality, are also subject to capitalization.

***Interest expenses***

Interest expenses primarily relate to amounts paid on the Company's debt financing obligations, including amortized debt issuance costs.

***Depreciation and amortization***

Depreciation and amortization expenses primarily relate to amortization of capitalized technology development costs, as well as amortization of intangible assets associated with acquisitions of businesses (including investments in Owned Members).

***Other expenses***

Other expenses represent costs related to our non-core business operations primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to share-based compensation, and legal and advisory costs in connection with corporate development activities, including mergers and acquisitions, capital raising activities and entity formations that support our growing business.

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***Income tax expense***

The provision for income tax consists of current and deferred tax expense. The calculation of current and deferred tax expense is based on tax rates and tax laws which have been enacted in the reporting period. Deferred tax assets and liabilities, result from temporary differences between the amounts recorded in the consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns.

As of March 31, 2025, we had net deferred tax assets of $45.1 million and also apply full valuation allowances to certain of our deferred tax assets of unutilized net operating losses ("NOLs") and outside basis differences in partnership investments. The NOLs and outside basis differences predominantly arose from start-up losses on certain operating locations that drove significant taxable losses in the early stages of operations for which profitability has yet to be established.

**Key Operating and Financial Metrics** 

We regularly review key operating and financial metrics to evaluate our business, measure our performance, identify trends in our business, prepare financial projections and make strategic decisions. Our key operating and financial metrics include operational, GAAP and non-GAAP financial measures which are useful in evaluating our performance and our GAAP financial results discussed below.

As further discussed in "—Segment Information—Consolidation and Elimination Adjustments" our consolidated results are subject to consolidation and elimination adjustments with respect to transactions among the businesses within our segments, notably between the Risk Exchange and Accelerant-owned insurance companies. We view the Adjusted EBITDA generated by our segments as representative of the economics that each would generate if they were independent companies and if the intersegment transactions were with third parties.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**March 31,** | **Three Months**<br>**Ended**<br>**March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions, unless indicated)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Number of members | 232 | 170 | 217 | 155 | 101 |
|  Number of MGA Operations members | 47 | 44 | 47 | 41 | 31 |
|  Net revenue retention | 157% | 130% | 153% | 133% | 173% |
|  Exchange written premium<sup>(2)</sup> | $985.2 | $583.8 | $3108.4 | $1787.3 | $1200.7 |
|  Accelerant direct written premium<sup>(2)</sup> | 81% | 91% | 84% | 90% | 100% |
|  Third-party direct written premium<sup>(2)</sup> | 19% | 9% | 16% | 10% | —% |
|  Accelerant-retained exchange premium<sup>(2)</sup> | 8% | 11% | 8% | 11% | 15% |
|  Total revenues | $178.0 | $128.1 | $602.6 | $344.0 | $219.0 |
|  Revenue growth rate | 39% | 77% | 75% | 57% | 118% |
|  Non-GAAP financial measures<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA<sup>(1)</sup> | $42.8 | $27.5 | $113.0 | $36.1 | $(39.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA margin<sup>(1)</sup> | 24% | 21% | 19% | 10% | (18)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Organic revenue growth rate<sup>(1)</sup> | 38% | 77% | 75% | 57% | 113% |

---

(1) Refer to "—Reconciliation of Non-GAAP financial
measures" section for details on how non-GAAP measures are defined and reconciled to GAAP measures.

(2) See the definitions of Exchange Written Premium, Accelerant Direct Written Premium, Third-Party Direct
Written Premium, and Accelerant-Retained Exchange Premium below for explanation of calculations and metrics.

***Number of Members***

We define the number of Members as those under contract with our Risk Exchange as of the period end date. We view the number of Members as an important metric to assess our financial performance because Member growth drives our revenue from fees, commissions, and net retained premiums; expands brand

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awareness and our market penetration; and generates additional data to continue to attract more risk capital and accelerate the compounding momentum of our platform.

As of March 31, 2025, we had 232 Members. These Members wrote $985.2 million of Exchange Written Premium for the three months ended March 31, 2025. Of our 232 Members, 31 are Mission Members, 16 are Owned Members, and 185 are Independent Members. Of the $985.2 million in Exchange Written Premium for the three months ended March 31, 2025, 81% was written by Accelerant Underwriting as Accelerant Direct Written Premium and 19% was written by our 13 Risk Exchange Insurers as Third-Party Direct Written Premium. Accelerant Underwriting historically reinsures approximately 90% of Accelerant GWP to third-party reinsurers, including approximately 27% to Flywheel Re, a reinsurance sidecar.

***Number of MGA Operations Members***

We define the number of MGA Operations members as the number of Mission Members and Owned Members under contract with the Risk Exchange as of the period end date.

***Net Revenue Retention***

We define Net Revenue Retention, expressed as a percentage, as the current period's Exchange Written Premium for Members that were actively writing Exchange Written Premium in the comparable period divided by these same Members' prior-period Exchange Written Premium. This measure demonstrates an aggregate measure of the net growth of Exchange Written Premium from previously onboarded Members.

***Exchange Written Premium***

We define Exchange Written Premium as the total GWP written through the Accelerant Risk Exchange, including both gross premiums written on behalf of Accelerant Underwriting companies and written directly on behalf of Risk Exchange Insurers.

***Accelerant Direct Written Premium***

We define Accelerant Direct Written Premium, expressed as a percentage of Exchange Written Premium, as the GWP written directly by Accelerant Underwriting companies, the majority of which we cede directly to third-party risk capital partners through our reinsurance arrangements.

***Third-Party Direct Written Premium***

We define Third-Party Direct Written Premium, expressed as a percentage of Exchange Written Premium, as the GWP written directly with our Risk Exchange Insurers.

***Accelerant-Retained Exchange Premium***

We define Accelerant-Retained Exchange Premium, expressed as a percentage, as Accelerant GWP net of ceded written premium for the trailing twelve month period, divided by total Exchange Written Premium for the trailing twelve month period. This represents the percentage of total Exchange Written Premium that Accelerant-owned insurance companies retain. We expect Accelerant-Retained Exchange Premium to decrease over time as Third-party Direct Written Premium increases.

Accelerant Underwriting reinsured 92% of Accelerant GWP to third-party reinsurers during the three months ended March 31, 2025, consistent with our historical reinsurance targets. Approximately 27% of our Accelerant GWP was ceded to Flywheel Re, a reinsurance sidecar, during the three months ended March 31, 2025.

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***Total Revenues***

Total revenues consist of the following items: Ceding commission income; Direct commission income; Net earned premiums; Net investment income; Net realized gains (losses) on investments and Net unrealized gains on investments.

**Reconciliation of Non-GAAP financial measures** 

***Adjusted EBITDA and Adjusted Net Income (Loss)***

Adjusted EBITDA and Adjusted Net Income (Loss) are non-GAAP measures, which we believe should be used to evaluate our financial performance by excluding certain items that are related to our non-core business operations and therefore are not considered to be directly attributable to our underlying operating performance. Adjusted EBITDA and Adjusted Net Income (Loss) are internal performance measures used in the management of our operations. We believe that disclosing Adjusted EBITDA and Adjusted Net Income (Loss) enables investors, analysts, rating agencies and other users of our financial information to more easily analyze our underlying business performance. Adjusted EBITDA and Adjusted Net Income (Loss) should not be used as substitutes for net income (loss), and other companies may define Adjusted EBITDA and Adjusted Net Income (Loss) differently than we do.

We define Adjusted EBITDA as GAAP net income (loss) less the impact of depreciation and amortization, interest expenses, income tax expenses and the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other expenses: Represents costs related to our non-core business operations primarily related to our global
enterprise resource planning system and integrated financial reporting systems, charges related to share-based compensation, and legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital
raising activities and entity formations that support our growing business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net foreign currency exchange gains (losses): The functional currency for each of our operating subsidiaries
is generally the currency of the local operating environment. Transactions in currencies other than the local operation's functional currency are remeasured into the functional currency, and the resulting foreign exchange gains or losses are
reflected in net foreign currency exchange gains (losses).

We define Adjusted Net Income (Loss) as GAAP net income (loss) less the impact of other expenses and the tax effect of the adjustments for other expenses.

***Adjusted EBITDA Margin***

We define Adjusted EBITDA Margin, a non-GAAP financial measure, as Adjusted EBITDA divided by total revenue. Adjusted EBITDA Margin is an internal performance measure used in the management of our operations.

Adjusted EBITDA and Adjusted EBITDA Margin should not be considered substitutes for the reported results prepared in accordance with GAAP and should not be considered in isolation or as alternatives to GAAP net income or net (loss) as indicators of our financial performance. Although we use Adjusted EBITDA and Adjusted EBITDA Margin as financial measures to assess the performance of our business, such use is limited because it does not include certain material costs necessary to operate our business. Our presentation of Adjusted EBITDA and Adjusted EBITDA Margin should not be construed as indications that our future results will be unaffected by unusual or non-recurring items. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of our most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures on a consolidated basis.

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The following table provides a reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Net income (loss) | $7.8 | $2.1 | $22.9 | $(64.1) | $(95.6) |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses <sup>(1)</sup> | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of adjustments to net income (loss) <sup>(2)</sup> | (0.8) | (0.9) | (3.6) | (5.1) | (3.0) |
|  **Adjusted net income (loss)** | **21.2** | **9.8** | **66.7** | **(18.1)** | **(65.0)** |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back tax effect of adjustments to net income (loss) | 0.8 | 0.9 | 3.6 | 5.1 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 7.7 | 9.9 | 9.1 | 20.2 | 11.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Adjusted EBITDA** | $**42.8** | $**27.5** | $**113.0** | $**36.1** | $**(39.3)** |
|  Total revenues | 178.0 | 128.1 | 602.6 | 344.0 | 219.0 |
|  **Adjusted EBITDA Margin** | **24%** | **21%** | **19%** | **10%** | **(18)%** |

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<sup>(1)</sup> Other expenses for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022 consisted of the following:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2022** |
|  System development non-operating costs | $4.6 | $2.7 | $14.7 | $22.9 | $11.4 |
|  Professional costs related to corporate development activities | 3.6 | 2.6 | 13.1 | 16.2 | 5.6 |
|  Share-based compensation | 2.4 | 2.2 | 8.4 | 4.8 |  |
|  Mission profits interests expense | 1.6 |  | 7.0 |  |  |
|  Securities issuance costs related to potential securities offering |  |  |  |  | 8.7 |
|  Flywheel Re formation costs |  |  |  |  | 4.8 |
|  Individually insignificant costs | 2.0 | 1.1 | 4.2 | 7.2 | 3.1 |
|  **Total other expenses** | $**14.2** | $**8.6** | $**47.4** | $**51.1** | $**33.6** |

---

<sup>(2)</sup> The tax effect of other expenses adjustments to net income (loss) for each period presented were calculated using the statutory tax rates for each of our legal entities where the expenses were incurred, including certain non-taxing jurisdictions. The statutory tax rates used in the calculations were adjusted in instances where our legal entities have applied full valuation allowances to their respective deferred tax assets of unutilized NOLs. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the expenses were incurred in each year. 

We provide a reference to Adjusted EBITDA for the trailing twelve months ended March 31, 2025 herein. The GAAP to non-GAAP reconciliation for this period can be derived using amounts presented above for the year ended December 31, 2024 less amounts reported for the three months ended March 31, 2024 to arrive at the nine months ended December 31, 2024, which can be added to the results for the three months ended March 31, 2025 to arrive at the trailing twelve months ended March 31, 2025.

***Organic Revenue Growth Rate***

We define organic revenue growth rate, a non-GAAP financial measure, as the percentage change in revenue, as compared to the same period for the prior year, adjusted for revenue attributable to recent

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acquisitions of Owned Members that we now consolidate that occurred during the most recent period of comparison. We believe this measure is useful to management and investors in evaluating the internally generated growth of the business based on our ability to attract new Members and grow the business of existing Members.

The following table provides a reconciliation of total revenue to Organic Revenue Growth Rate for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months**<br>**Ended March 31,** | **Three Months**<br>**Ended March 31,** | **Years Ended** <br>**December 31,** | **Years Ended** <br>**December 31,** | **Years Ended** <br>**December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Total revenue | $178.0 | $128.1 | $602.6 | $344.0 | $219.0 |
|  Less: Revenue from consolidated Owned Members acquired during the period | (1.0) |  | (0.8) |  | (4.9) |
|  Organic revenue | $177.0 | $128.1 | $601.8 | $344.0 | $214.1 |
|  Total revenue growth rate <sup>(1)(2)</sup> | 39% | 77% | 75% | 57% | 118% |
|  **Organic revenue growth rate** <sup>(1)(2)</sup> | **38%** | **77%** | **75%** | **57%** | **113%** |

---

(1) Total revenue growth rate and Organic Revenue Growth Rate for the year ended December 31, 2022 was calculated
using GAAP revenue for the year ended December 31, 2021 of $100.6 million.

(2) Revenues of $0.8 million for the year ended December 31, 2023 related to the legacy business of our
Canadian insurer, which we acquired in the fourth quarter of 2023, are included in this calculation as they do not relate to the acquisition of Owned Members.

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**Condensed Consolidated Results of Operations** 

The following tables reflect our consolidated results of operations and compare the three months ended March 31, 2025 to 2024, the year ended December 31, 2024 to 2023 and the year ended December 31, 2023 to 2022, respectively, in the format that Accelerant's management team uses to analyze our financial performance. This information is derived from our consolidated financial statements prepared in accordance with GAAP and included elsewhere in this prospectus.

**Comparison of the Three Months Ended March 31, 2025 and 2024** 

**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations Summary** 

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) |
|  **Total revenues** | **178.0** | **128.1** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) |
|  **Total expenses** | **162.5** | **116.1** |
|  **Income before income taxes** | **15.5** | **12.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) |
|  **Net income** | **7.8** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for: Net (income) loss attributable to non-controlling interests | (1.3) | 5.0 |
|  **Net income attributable to Accelerant** | $**6.5** | $**7.1** |

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**<u>Comparison of the Three Months Ended March 31, 2025 and 2024</u>**

***Ceding Commission Income***

Ceding commission income of $70.7 million for the three months ended March 31, 2025 increased $5.7 million from the three months ended March 31, 2024 due to the growth in the premium base and amounts ceded to reinsurers, partially offset by changes in the mix of premiums we ceded to reinsurers by geography resulting in lower average ceding commission income. Ceding commission income for the three months ended March 31, 2024 included a reduction of $2.5 million due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. There were no net sliding scale commission adjustments recognized during the three months ended March 31, 2025.

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The following table presents the amounts of ceding commissions deferred and amortized:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $193.0 | $120.4 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 73.2 | 69.2 |
|  Amortization of deferred excess ceding commissions to income | (70.7) | (65.0) |
|  Foreign currency translation | (0.9) | 3.4 |
|  **Balance as of March 31,** | **$194.6** | $**128.0** |

---

The amortization of the excess deferred ceding commissions is recorded as "Ceding commission income" in our consolidated statements of operations.

***Direct Commission Income***

Direct commission income of $28.1 million for the three months ended March 31, 2025 increased $16.5 million compared to the three months ended March 31, 2024 primarily due to commissions from third-party Risk Exchange business and increased volume in our Exchange Services and MGA Operations segments on business written with unaffiliated entities during the three months ended March 31, 2025.

Additionally, the portion of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) increased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is further discussed below under "—Segment Information—Consolidation and Elimination Adjustments."

***Net Earned Premium***

GWP of $874.0 million for the three months ended March 31, 2025 increased by $322.9 million from the three months ended March 31, 2024 primarily due to new and existing Member growth. Since March 31, 2024, we have added 62 new Members, bringing the total number of Members to 232 as of March 31, 2025. This Member growth was driven by our continued expansion across the U.S., Europe and Canada markets.

Net written premium of $72.4 million for the three months ended March 31, 2025 increased by $16.8 million from the three months ended March 31, 2024 as a result of GWP growth. We expect this retained portion of Exchange Written Premium in the aggregate to decrease over time as Risk Exchange insurers continue to increase in number and grow their retention.

Net earned premium of $63.0 million for the three months ended March 31, 2025 increased by $19.0 million from the three months ended March 31, 2024 as a result of the increased net written premium described above.

The table below shows the amount of premium written on a gross and net basis, as well as earned premium for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross written premiums | $874.0 | $551.1 |
|  Ceded written premiums | (801.6) | (495.5) |
|  **Net written premiums** | $**72.4** | $**55.6** |
|  **Net earned premiums** | $**63.0** | $**44.0** |

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***Net Investment Income***

Net investment income of $12.2 million for the three months ended March 31, 2025 increased $4.3 million compared to the three months ended March 31, 2024 primarily due to the significant increase in total average investments when comparing the periods. Refer to Note 4 in our interim condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 for additional information.

***Net Realized Gains On Investments***

Net realized gains on investments of $2.3 million increased $1.9 million compared to the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Refer to Note 4 in our interim condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 for additional information.

***Net Unrealized Gains On Investments***

Net unrealized gains on investments were $1.7 million for the three months ended March 31, 2025 compared to net unrealized losses of $0.8 million for the three months ended March 31, 2024. Refer to Note 4 in our interim condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 for additional information.

***Loss and Loss Adjustment Expenses***

Net loss and LAE of $45.2 million increased $16.5 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 due to the increase in our net earned premium base from $44.0 million to $63.0 million for the three months ended March 31, 2025 as compared to 2024. Gross incurred losses and LAE increased $148.1 million or 63%, while ceded losses and LAE increased $131.6 million or 64% under our external reinsurance program. Our net loss ratio differs from the gross loss ratio (53.3% and 52.1% for the three months ended March 31, 2025 and 2024, respectively) due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses.

During the three months ended March 31, 2025, we recorded net incurred catastrophe losses and LAE of approximately $2.0 million related to a series of wildfires in Southern California which took place in January 2025 and impacted our property book of business. These losses were approximately $40.0 million before ceded losses and LAE to our quota share and excess of loss reinsurance treaties of approximately $38.0 million.

See "—Segment Information—Comparison of the Three Months Ended March 31, 2025 and 2024—Underwriting" below for further information regarding our loss and loss adjustment expenses for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross incurred loss and LAE | $382.8 | $234.7 |
|  Ceded incurred loss and LAE | (337.6) | (206.0) |
|  **Net incurred loss and LAE** | $**45.2** | $**28.7** |
|  **Net loss ratio** | **71.7%** | **65.2%** |

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***Amortization of Deferred Acquisition Costs***

Amortization of deferred acquisition costs of $17.1 million for the three months ended March 31, 2025 decreased by $5.7 million compared to the three months ended March 31, 2024 due to the amortization of DAC from the decrease in our retention rate of net earned premium, as well as acquisition costs as a percentage of premiums. The following table presents the amounts of acquisition costs deferred and amortized for insurance business retained by us:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $60.7 | $53.0 |
|  Direct commissions and other acquisition costs on retained business | 12.7 | 23.3 |
|  Amortization of deferred acquisition costs | (17.1) | (22.8) |
|  Foreign currency translation losses |  | (0.7) |
|  **Balance as of March 31,** | $**56.3** | $**52.8** |

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***General and Administrative Expenses***

General and administrative expenses of $69.9 million increased by $23.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 due to our continued expansion and overall growth. The year-over-year increase primarily related to employee compensation and benefit costs driven by growth in headcount to support our growth across all markets. Other administrative expenses increased year-over-year primarily due to information technology support services, advertising and marketing costs, and travel-related expenses.

The following table presents the components of general and administrative expenses:

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| | | |
|:---|:---|:---|
|  | **Three Months<br>Ended<br>March 31,** | **Three Months<br>Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Employee compensation and benefits | $49.0 | $38.2 |
|  Consulting and professional fees | 13.3 | 9.3 |
|  Other administrative expenses (adjustments), net | 7.6 | (1.0) |
|  **Total general and administrative expenses** | **$69.9** | $**46.5** |

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***Technology and Development Operating Expenses***

Technology and development operating expenses of $3.0 million increased $0.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 as we continued to invest in the technology and development of our Risk Exchange. We capitalize qualifying Risk Exchange software development costs and amortize them over the estimated useful life of the platform, which are included in "Depreciation and Amortization" below.

***Interest Expenses***

Interest expenses of $2.6 million decreased $0.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily driven by a decrease in interest rates.

***Depreciation & Amortization***

Depreciation and amortization expenses of $7.4 million increased $2.5 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to increased amortization of a larger balance of capitalized information technology development costs.

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***Other Expenses***

Other expenses of $14.2 million increased $5.6 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily related to an increase of $1.9 million in system development non-operating expenses, including certain costs associated with supporting the development of accounting and financial reporting systems and Mission's policy administration system, an increase of $1.6 million of Mission profit interests expense, an increase of $1.0 million in professional costs related to corporate development activities, an increase of $0.3 million in share-based compensation expense, and an increase of $0.8 million in individually insignificant costs.

***Net Foreign Exchange Losses (Gains)***

Net foreign exchange losses were $3.1 million for the three months ended March 31, 2025 compared to net foreign exchange gains of $1.0 million for the three months ended March 31, 2024. The year-over-year change was primarily driven by fluctuations in the British Pound to U.S. Dollar exchange rate that impacted certain of our loss and LAE reserves denominated in British Pounds which were held in an entity with a U.S. Dollar functional currency.

***Income Tax Expense***

Income tax expense of $7.7 million decreased $2.2 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, while the consolidated effective tax rates ("ETRs") were 49.7% and 82.5%, respectively. However, the comparability of our tax expense and ETRs is often challenged due to the mix of taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions.

In March 2025, the Board of Directors of Accelerant Holdings and certain intermediary holding companies (together, the "Holding Companies") approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK. Upon becoming UK tax residents, the Holding Companies began to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain U.S. subsidiaries under the U.S.-UK tax treaty. In addition, the aggregate income (loss) of the Holding Companies became subject to UK income tax effective as of the March 2025 date of change to UK tax residency. To the extent that the Holding Companies have incremental income it will generate additional UK tax expense and, conversely, to the extent that there are any incremental losses, income tax benefits will be generated to the extent that there is current or projected taxable income available in our UK operations. Over the remainder of 2025, we expect incremental benefits to emerge due to the Holding Companies' projected expense base and, therefore, our effective tax rate ("ETR") for the year ended December 31, 2025 is expected to fall below those reported in previous years when such expenses were incurred in the Cayman Islands (a zero tax rate jurisdiction).

The relationship of our income tax expense to pre-tax income (loss) is atypical because our taxable income has predominately been generated in the U.S., UK, Ireland, and Puerto Rico resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other jurisdictions where we have generated cumulative operating losses, however, in each of those cases, a valuation allowance has been recorded against the corresponding deferred tax assets (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

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The composition of our ETRs among our tax-paying and non-tax paying entities, which demonstrates the non-tax paying entities' effect on the total ETR, were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2025** | **Three Months Ended<br>March 31, 2024** | **Three Months Ended<br>March 31, 2024** | **Three Months Ended<br>March 31, 2024** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $49.5 | $(34.0) | $15.5 | $35.6 | $(23.6) | $12.0 |
|  Income tax expense | (7.7) |  | (7.7) | (9.9) |  | (9.9) |
|  **Effective tax rate** | **15.6%** | **—** | **49.7%** | **27.8%** | **—** | **82.5%** |

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**Comparison of the Years Ended December 31, 2024 and 2023** 

**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations Summary** 

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $249.5 | $164.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 | 105.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 | 37.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 38.9 | 19.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 1.9 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 | 17.3 |
|  **Total revenues** | **602.6** | **344.0** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 | 80.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 | 49.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.5 | 169.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 | 8.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 | 10.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 | 51.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses  | (5.1) | 3.5 |
|  **Total expenses** | **570.6** | **387.9** |
|  **Income (loss) before income taxes** | **32.0** | **(43.9)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) | (20.2) |
|  **Net income (loss)** | **22.9** | **(64.1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to non-controlling interests | 4.3 | 15.3 |
|  **Net income (loss) attributable to Accelerant** | $**27.2** | $**(48.8)** |

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***Ceding Commission Income***

Ceding commission income of $249.5 million for the year ended December 31, 2024 increased $85.3 million from the prior year as we continued to grow our premium base and the amount ceded to reinsurers. Ceding commission income for the years ended December 31, 2024 and 2023 included reductions of $15.5 million and $19.1 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts.

The following table presents the amounts of ceding commissions deferred and amortized:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Balance as of January 1, | $120.4 | $84.5 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 318.7 | 202.7 |
|  Amortization of deferred excess ceding commission to income | (249.5) | (164.2) |
|  Foreign currency translation | 3.4 | (2.6) |
|  **Balance as of December 31,** | $**193.0** | $**120.4** |

---

The amortization of the excess deferred ceding commissions is recorded as "Ceding commission income" in our consolidated statements of operations.

***Direct Commission Income***

Direct commission income of $66.7 million for the year ended December 31, 2024 increased $29.1 million compared to the prior year primarily due to commissions from third-party Risk Exchange business and increased volume in our Exchange Services and MGA Operations segments on business written with unaffiliated entities during the year ended December 31, 2024.

Additionally, the portion of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) increased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is further discussed below under "—Segment Information—Consolidation and Elimination Adjustments."

***Net Earned Premium***

GWP of $2.91 billion for the year ended December 31, 2024 increased by $1.21 billion from the prior year primarily due to new and existing Member growth. Since December 31, 2023, we have added 62 new Members, bringing the total number of Members to 217 as of December 31, 2024. This Member growth was driven by our continued expansion within the U.S. market, maintenance of our Member growth in Europe, and our recent expansion into Canada.

Net written premium of $254.6 million for the year ended December 31, 2024 increased by $63.7 million from the prior year as a result of GWP growth. We expect this retained portion of Exchange Written Premium in the aggregate to decrease over time as third-party insurance companies, writing directly on the Risk Exchange on a primary basis, continue to increase in number and grow their retention.

Net earned premium of $226.6 million for the year ended December 31, 2024 increased by $121.5 million from the prior year as a result of the increased net written premium described above.

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The table below shows the amount of premium written on a gross and net basis, as well as earned premium for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Gross written premiums | $2906.3 | $1697.8 |
|  Ceded written premiums | (2651.7) | (1506.9) |
|  **Net written premiums** | $**254.6** | $**190.9** |
|  **Net earned premiums** | $**226.6** | $**105.1** |

---

***Net Investment Income***

Net investment income of $38.9 million for the year ended December 31, 2024 increased $19.6 million compared to the prior year primarily due to the significant increase in investments. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Realized Gains On Investments***

Net realized gains on investments of $1.9 million increased $1.4 million compared to the year ended December 31, 2024 as compared to 2023. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Unrealized Gains On Investments***

Net unrealized gains on investments of $19.0 million increased $1.7 million compared to the year ended December 31, 2024 as compared to 2023. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Losses and Loss Adjustment Expenses***

Net loss and LAE of $167.3 million increased $87.0 million for the year ended December 31, 2024 as compared to the prior year due to the increase in our net earned premium base from $105.1 million to $226.6 million for the years ended December 31, 2024 and 2023, respectively. Gross incurred losses and LAE increased $534.9 million or 79%, while ceded losses and LAE increased $447.9 million or 75% under our external reinsurance program. Our net loss ratio differs from the gross loss ratio (54.3% and 51.3% for the years ended December 31, 2024 and 2023, respectively) due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. See "—Segment Information—Comparison of the Years Ended December 31, 2024 and 2023—Underwriting" below for further information regarding our loss and loss adjustment expenses for the year ended December 31, 2024 compared to the prior year.

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Gross incurred loss and LAE | $1212.1 | $677.2 |
|  Ceded incurred loss and LAE | (1044.8) | (596.9) |
|  **Net incurred loss and LAE** | $**167.3** | $**80.3** |
|  **Net loss ratio** | **73.8%** | **76.4%** |

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***Amortization of Deferred Acquisition Costs***

Amortization of deferred acquisition costs of $81.4 million for the year ended December 31, 2024 increased by $31.5 million compared to the prior year due to the amortization of DAC from the increase in net earned premium. The following table presents the amounts of acquisition costs deferred and amortized for insurance business retained by us:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Balance as of January 1, | $53.0 | $26.6 |
|  Direct commissions and other acquisition costs on retained business | 89.5 | 75.6 |
|  Amortization of deferred acquisition costs | (81.4) | (49.9) |
|  Foreign currency translation losses | (0.4) | 0.7 |
|  **Balance as of December 31,** | $**60.7** | $**53.0** |

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***General and Administrative Expenses***

General and administrative expenses of $227.5 million increased by $58.3 million for the year ended December 31, 2024 as compared to the prior year due to our continued expansion and overall growth. The year-over-year increase primarily related to employee compensation and benefit costs driven by growth in headcount to support our growth across all markets, while consulting, professional and other expenses also increased at a rate notably less than our overall increase in premium and revenue growth.

The following table presents the components of general and administrative expenses:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  | **2024** | **2023** |
|  Employee compensation and benefits | $157.0 | $118.9 |
|  Consulting and professional fees | 42.4 | 29.8 |
|  Other administrative expenses (adjustments), net | 28.1 | 20.5 |
|  **Total general and administrative expenses** | $**227.5** | $**169.2** |

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***Technology and Development Operating Expenses***

Technology and development operating expenses of $13.4 million increased $4.9 million for the year ended December 31, 2024 as compared to the prior year as we continued to invest in the technology and development of our Risk Exchange. We capitalize qualifying Risk Exchange software development costs and amortize them over the estimated useful life of the platform, which are included in "Depreciation and Amortization" below.

***Interest Expenses***

Interest expenses of $12.1 million increased $1.2 million for the year ended December 31, 2024 as a result of higher interest rates compared to the prior year.

***Depreciation and Amortization***

Depreciation and amortization expenses of $26.6 million increased $12.1 million for the year ended December 31, 2024 as compared to the prior year primarily due to increased amortization of capitalized information technology development costs.

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***Other Expenses***

Other expenses of $47.4 million decreased $3.7 million for the year ended December 31, 2024 as compared to the prior year, primarily related to a decrease of $8.2 million in system development non-operating expenses, including certain costs associated with supporting the development and implementation of accounting and financial reporting systems, a decrease of $3.1 million in professional costs related to corporate development activities, and a decrease of $3.0 million in individually insignificant costs, partially offset by an increase of $7.0 million of Mission profit interests expense and an increase of $3.6 million in share-based compensation expense.

***Net Foreign Exchange (Gains) Losses***

Net foreign exchange gains were $5.1 million for the year ended December 31, 2024 compared to the net foreign exchange losses of $3.5 million for the year ended December 31, 2023. The experience for the year ended December 31, 2024 was primarily driven by a reduction in certain of our loss and LAE reserves denominated in British Pounds, while the experience for the year ended December 31, 2023 was primarily driven by foreign exchange losses on our Euro-denominated debt facility, which was held in an entity with a U.S. Dollar functional currency.

***Income Tax Expense***

Income tax expense of $9.1 million decreased $11.1 million for the year ended December 31, 2024 as compared to the prior year, while the consolidated ETRs were 28.4% and (46.0)%, respectively. However, the comparability of our tax expense and ETRs is often challenged due to the mix of taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions. In addition, tax expense and ETRs in 2024 were impacted to a lesser extent by valuation allowance adjustments during the year.

During 2024, a tax benefit of $14.6 million was recorded to reflect the adjustment of certain valuation allowances in the UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations.

The relationship of our income tax expense to our pre-tax income (loss) is atypical because our taxable income has predominately been generated in the U.S., UK and Ireland resulting in income tax expense in those jurisdictions (which we refer to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other countries with cumulative operating losses, however, in each case a valuation allowance has been recorded against the corresponding deferred tax assets in those jurisdictions (we refer to entities in these two types of jurisdictions as "non-tax paying entities").

Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

As noted in the table below, and especially for the year ended December 31, 2023, the ETR for the tax paying entities generally appears normal, while the aggregate or total tax ETR appears unusual because of the losses that do not receive offsetting tax benefits. The taxes in 2024 for the tax paying entities were also impacted by a tax benefit of $14.6 million that was recorded to reflect the adjustment of certain valuation allowances in the

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UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations. There were several other items impacting the ETRs in both periods (refer to the ETR reconciliation included in Note 10 to our consolidated annual financial statements for additional information).

Our ETR were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $142.3 | $(110.3) | $32.0 | $90.3 | $(134.2) | $(43.9) |
|  Income tax expense | (9.1) |  | (9.1) | (20.2) |  | (20.2) |
|  **Effective tax rate** | **6.4%** | **—** | **28.4%** | **22.4%** | **—** | **(46.0)%** |

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**Comparison of the Years Ended December 31, 2023 and 2022** 

**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations Summary** 

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 17.3 | 0.3 |
|  **Total revenues** | **344.0** | **219.0** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | 3.5 | 1.4 |
|  **Total expenses** | **387.9** | **303.3** |
|  **Loss before income taxes** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (20.2) | (11.3) |
|  **Net loss** | **(64.1)** | **(95.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to non-controlling interests | 15.3 | 3.9 |
|  **Net loss attributable to Accelerant** | $**(48.8)** | $**(91.7)** |

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***Ceding Commission Income***

Ceding commission income of $164.2 million for the year ended December 31, 2023 increased $119.9 million from the prior year as we continued to grow our premium base while decreasing the amount of business we retained in 2023, as noted below in our discussion of Net Earned Premium. Ceding commission income for the year ended 2023 and 2022 included reductions of $19.1 million and $29.0 million for net sliding scale adjustments resulting from the loss experience of covered insurance contracts for commissions previously received on business written in prior periods.

The following table presents the amounts of ceding commissions deferred and amortized:

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Balance as of January 1, | $84.5 | $30.2 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 202.7 | 98.6 |
|  Amortization of deferred excess ceding commissions to income | (164.2) | (44.3) |
|  Foreign currency translation | (2.6) |  |
|  **Balance as of December 31,** | $**120.4** | $**84.5** |

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The amortization of the excess deferred ceding commissions is recorded as "Ceding commission income" in our consolidated statements of operations.

***Direct Commission Income***

Direct commission income of $37.6 million for the year ended December 31, 2023 increased $3.1 million compared to the prior year primarily due to commissions from third-party Risk Exchange business and increased volume in our MGA Operations segment on business written with unaffiliated entities during the year ended December 31, 2023. Direct commission income for 2023 also included $4.8 million of negative commission income adjustments related to the effect of sliding scale commissions from adverse development on legacy run-off business written in 2020 and 2019 as compared to favorable sliding scale commission adjustments from the same business of $5.9 million in 2022.

Additionally, the portion of our business between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) increased year-over-year. However, all transactions between affiliated entities are fully eliminated in our consolidated results of operations. A discussion of the impact of consolidation and elimination adjustments is included below under "—Segment Information—Consolidation and Elimination Adjustments."

***Net Earned Premium***

GWP of $1.70 billion for the year ended December 31, 2023 increased by $498.0 million from the prior year primarily due to new and existing Member growth. We added 54 new Members during 2023, bringing the total number of Members to 155 as of December 31, 2023. This Member growth was driven by our continued expansion within the U.S. market, maintenance of our Member growth in Europe, and expansion into Canada in the fourth quarter of 2023.

Net written premium of $190.9 million for the year ended December 31, 2023 increased by $4.9 million from the prior year. This result was primarily due to lowering our Accelerant-Retained Exchange Premium, calculated as the ratio of net written premium to Exchange Written Premium, to 11% for the year ended December 31, 2023, as compared to 15% in the prior year, as a result of our expansion of limits in our quota share reinsurance programs, as well as our purchase of increased excess of loss reinsurance in 2023 to further limit our loss exposures.

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Net earned premium of $105.1 million for the year ended December 31, 2023 decreased by $36.1 million from the prior year due to the effect of a reinsurance endorsement executed during the fourth quarter of 2023. During the year ended December 31, 2023, we and certain of our reinsurers agreed to an endorsement of quota share agreements covering the 2020 and 2021 treaty years that increased the gross written premium caps that had previously been exceeded during the year ended December 31, 2022. These reinsurers increased their participation on existing reinsurance treaties in exchange for additional ceded premium. Excluding the year-over-year effect of this endorsement, our net earned premium increased consistent with the growth in net written premium for the year ended December 31, 2023 as compared to the prior year.

The table below shows the amount of premium written on a gross and net basis of Accelerant Underwriting, as well as earned premium for the respective periods:

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| | | |
|:---|:---|:---|
|  | **Years Ended**<br>**December 31,** | **Years Ended**<br>**December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Gross written premiums | $1697.8 | $1199.8 |
|  Ceded written premiums | (1506.9) | (1013.8) |
|  **Net written premiums** | $**190.9** | $**186.0** |
|  **Net earned premiums** | $**105.1** | $**141.2** |

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***Net Investment Income***

Net investment income of $19.3 million for the year ended December 31, 2023 increased $16.7 million compared to the year ended December 31, 2022 due to the significant increase in total average investments. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Realized Gains (Losses) On Investments***

Net realized gains (losses) on investments of $0.5 million decreased $4.4 million compared to the year ended December 31, 2022. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Net Unrealized Gains On Investments***

Net unrealized gains on investments of $17.3 million increased $17.0 million compared to the year ended December 31, 2022. Refer to Note 4 to our consolidated annual financial statements for additional information.

***Losses and Loss Adjustment Expenses***

Net loss and LAE decreased $19.2 million for the year ended December 31, 2023 as compared to the prior year primarily due to the reduction in our net earned premium base to $105.1 million from $141.2 million for the years ended December 31, 2023 and 2022, respectively. Net incurred losses and LAE for the year ended December 31, 2023 also included a partially offsetting $4.8 million gain from a reinsurance commutation transaction. Gross incurred losses and LAE increased $245.4 million or 57%, while ceded losses and LAE increased $264.6 million or 80% given our targeted increase in the use of external reinsurance. Our net loss ratio differs from the gross loss ratio (51.3% and 55.5% for the years ended December 31, 2023 and 2022, respectively) due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. See "—Segment Information—Comparison of the Years Ended December 31, 2023 and 2022—Underwriting" below for further information regarding our loss and loss adjustment expenses for the year ended December 31, 2023 compared to the prior year.

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In December 2023, we entered into a loss portfolio transfer ("LPT") reinsurance contract that provides retroactive reinsurance protection for our retained insurance exposure prior to June 2022, including reserves we reassumed in a contemporaneous commutation agreement. This presented us with an opportunity to pursue an LPT at attractive terms that significantly reduces our exposure on those historical reserves. We determined that the LPT does not transfer significant insurance risk and therefore requires deposit accounting. Refer to "— Reinsurance" section for additional details on this transaction.

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Gross incurred loss and LAE | $677.2 | $431.8 |
|  Ceded incurred loss and LAE | (596.9) | (332.3) |
|  **Net incurred loss and LAE** | $**80.3** | $**99.5** |
|  **Net loss ratio**  | **76.4%** | **70.5%** |

---

***Amortization of Deferred Acquisition Costs***

Amortization of DAC of $49.9 million for the year ended December 31, 2023 increased by $14.9 million compared to the same period in the prior year due to the amortization of DAC from higher prior year retained business partially being offset by lower retained business in the current year. The following table presents the amounts of acquisition costs deferred and amortized for insurance business retained by us:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Balance as of January 1, | $26.6 | $15.0 |
|  Direct commissions and other acquisition costs on retained business | 75.6 | 46.6 |
|  Amortization of deferred acquisition costs | (49.9) | (35.0) |
|  Foreign currency translation | 0.7 |  |
|  **Balance as of December 31,** | $**53.0** | $**26.6** |

---

***General and Administrative Expenses***

General and administrative expenses of $169.2 million increased by $53.6 million for the year ended December 31, 2023 as compared to the prior year due to our continued U.S. market expansion and overall growth. The year-over-year increase primarily related to employee compensation and benefit costs driven by growth in headcount and continued investments to support Mission's growth, as well as other costs associated with supporting our maturation and continued growth, including consulting and professional fees.

The following table presents the components of general and administrative expenses:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2023** | **2022** |
|  Employee compensation and benefits | $118.9 | $93.2 |
|  Consulting and professional fees | 29.8 | 16.6 |
|  Other expenses | 20.5 | 5.8 |
|  **Total general and administrative expenses** | $**169.2** | $**115.6** |

---

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***Technology and Development Operating Expenses***

Technology and development operating expenses of $8.5 million increased $0.3 million for the year ended December 31, 2023 as compared to the prior year as we invested in the technology and development of our Risk Exchange. We capitalize qualifying Risk Exchange software development costs and amortize them over the estimated useful life of the platform, which are included in "— Depreciation and Amortization" below.

***Interest Expenses***

Interest expenses of $10.9 million increased $6.7 million for the year ended December 31, 2023 as a result of an increase in average debt outstanding during 2023 as compared to 2022, which included a $20 million further drawdown under the debt facility during 2023.

***Depreciation and Amortization***

Depreciation and amortization expenses of $14.5 million increased $8.7 million for the year ended December 31, 2023 as compared to the prior year primarily due to an increase of $8.4 million of amortization of capitalized information technology development costs.

***Other Expenses***

Other expenses of $51.1 million increased $17.5 million for the year ended December 31, 2023 as compared to the prior year, primarily related to an increase of $11.5 million in system development non-operating costs, including certain Risk Exchange costs and costs associated with supporting the development and implementation of accounting and financial reporting systems, an increase of $10.6 million in professional costs related to corporate development activities, an increase of $4.8 million in share-based compensation expense, and an increase of $4.1 million in individually insignificant costs. These increases were partially offset by the absence of the 2022 expense of $8.7 million of previously deferred costs related to a potential securities issuance that were expensed when we suspended our efforts due to adverse equity market conditions in 2022 and $4.8 million of corporate development costs related to the formation of Flywheel Re.

***Net Foreign Exchange Losses***

Net foreign exchange losses were $3.5 million and $1.4 million for the years ended December 31, 2023 and 2022. The experience for the year ended December 31, 2023 was primarily driven by foreign exchange losses on our Euro-denominated debt facility, while the experience for the year ended December 31, 2022 was primarily driven by foreign exchange losses related to revaluation of certain portfolios denominated in British Pounds, partially offset by foreign exchange gains on our Euro-denominated debt facility, which was held in an entity with a U.S. Dollar functional currency.

***Income Tax Expense***

Income tax expense of $20.2 million increased $8.9 million for the year ended December 31, 2023 as compared to the prior year, while the consolidated ETRs were (46.0)% and (13.4)%, respectively. The incurrence of the tax expense despite our consolidated pre-tax net loss for the years ended December 31, 2023 and 2022 is a result of our mix of taxable income in certain jurisdictions (which we refer to as "tax-paying entities") and losses in others that are subject to zero-tax rates or full valuation allowances (which we refer to as "tax-paying entities"). As noted in the table below, the ETR for the tax paying entities appears normal, while the aggregate or total ETR appears unusual due to the effects of the losses that do not receive offsetting tax benefits. There were several other items impacting the ETRs in both periods (refer to the ETR reconciliation included in Note 10 to our consolidated annual financial statements for additional information).

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Our ETRs were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities <sup>(1)</sup>** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities <sup>(1)</sup>** | **Total** |
|  Income (loss) before income taxes | $90.3 | $(134.2) | $(43.9) | $47.9 | $(132.2) | $(84.3) |
|  Income tax expense | (20.2) |  | (20.2) | (11.3) |  | (11.3) |
|  **Effective tax rate** | **22.4%** | **—** | **(46.0)%** | **23.6%** | **—** | **(13.4)%** |

---

(1) Consists of our corporate and reinsurance entities based in the Cayman Islands, where there is no corporate
income tax rate, as well as other jurisdictions in which we have generated losses for which tax benefits are not recorded.

**Segment Information** 

We have three reportable segments, which align to the nature of the services we offer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Exchange Services* –** Our Exchange Services segment includes the fees paid by Risk
Exchange Insurers and Accelerant Underwriting for sourcing, managing and monitoring the portfolio of business written by Members reduced by the expenses associated with providing these services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***MGA Operations* –** Our MGA Operations segment includes the fees earned by Mission
Members and Owned Members, predominantly for originating and underwriting a portfolio of insurance policies, reduced by the expenses associated with providing those services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Underwriting* –** Our Underwriting segment includes the revenue from net earned
premium, investment income and the ceding commission paid to us by our third-party reinsurers and institutional investors, reduced by net incurred losses, the amortization of DAC and the general and administrative costs of operating our insurance
and reinsurance companies.

Corporate functions, including holding company expenses, are included in Corporate and Other and our consolidation and eliminations adjustments for intersegment activity are shown separately from our reportable segments.

We consider the segment presentations of our Exchange Services, MGA Operations and Underwriting segments prior to elimination to be the best way to evaluate our business and how these business components would be presented if they were standalone operations. Such presentation is also representative of the results that would be generated from third parties as we build additional third-party insurance relationships through our Risk Exchange.

The following includes the financial results of our three reportable segments for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022. Corporate functions and certain other businesses and operations are included in Corporate and Other.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $19.2 | $19.2 | $— | $51.5 | $70.7 |
|  Direct commission income Affiliated entities | 59.0 | 31.5 |  | 90.5 |  | (90.5) |  |
|  Unaffiliated entities | 11.2 | 16.9 |  | 28.1 |  |  | 28.1 |
|  Net earned premiums |  |  | 63.0 | 63.0 |  |  | 63.0 |
|  Net investment income | 0.6 | 0.9 | 10.0 | 11.5 | 0.7 |  | 12.2 |
|  Net realized gains on investments |  | 2.0 | 0.3 | 2.3 |  |  | 2.3 |

---

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  Net unrealized gains on investments |  |  |  |  | 1.7 |  | 1.7 |
|  **Segment revenues** | **70.8** | **51.3** | **92.5** | **214.6** | **2.4** | **(39.0)** | **178.0** |
|  Losses and loss adjustment expenses |  |  | 45.2 | 45.2 |  |  | 45.2 |
|  Amortization of deferred acquisition costs |  |  | 24.8 | 24.8 |  | (7.7) | 17.1 |
|  General and administrative expenses<sup>(2)</sup> <sup>(3)</sup> | 20.8 | 31.2 | 11.5 | 63.5 | 14.5 | (8.1) | 69.9 |
|  Technology and development operating expenses | 3.0 |  |  | 3.0 |  |  | 3.0 |
|  **Adjusted EBITDA** | $**47.0** | $**20.1** | $**11.0** | $**78.1** | $**(12.1)** | $**(23.2)** | $**42.8** |
|  Interest expenses |  |  |  |  |  |  | (2.6) |
|  Depreciation and amortization |  |  |  |  |  |  | (7.4) |
|  Other expenses <sup>(4)</sup> |  |  |  |  |  |  | (14.2) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.1) |
|  **Income before income taxes** |  |  |  |  |  |  | $**15.5** |

---

(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) 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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $13.9 | $21.3 | $6.2 | $41.4 |
|  Consulting and professional fees | 3.8 | 3.3 | 2.6 | 9.7 |
|  Other administrative expenses | 3.1 | 6.6 | 2.7 | 12.4 |
|  **Total general and administrative expenses** | $**20.8** | $**31.2** | $**11.5** | $**63.5** |

---

(3) 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.

(4) Other expenses for the three months ended March 31, 2025 consist of $4.6 million of system development
non-operating expenses, $3.6 million of professional costs related to corporate development activities, $2.4 million of share-based compensation, $1.6 million of Mission profits sharing expense and $2.0 million of individually insignificant costs.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and<br>Other<sup>(1)</sup>** | **Consolidation**<br>**and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $29.8 | $29.8 | $— | $35.2 | $65.0 |
|  Direct commission income |  |  |  |  |  |  |  |
|  Affiliated entities | 36.5 | 20.5 |  | 57.0 |  | (57.0) |  |
|  Unaffiliated entities | 5.0 | 6.6 |  | 11.6 |  |  | 11.6 |
|  Net earned premiums |  |  | 44.0 | 44.0 |  |  | 44.0 |
|  Net investment income | 0.1 | 0.7 | 7.1 | 7.9 |  |  | 7.9 |

---

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and<br>Other<sup>(1)</sup>** | **Consolidation**<br>**and<br>elimination<br>adjustments** | **Total** |
|  Net realized gains on investments |  |  | 0.4 | 0.4 |  |  | 0.4 |
|  Net unrealized losses on investments |  |  | (0.8) | (0.8) |  |  | (0.8) |
|  **Segment revenues** | **41.6** | **27.8** | **80.5** | **149.9** | **—** | **(21.8)** | **128.1** |
|  Losses and loss adjustment expenses |  |  | 28.7 | 28.7 |  |  | 28.7 |
|  Amortization of deferred acquisition costs |  |  | 29.2 | 29.2 |  | (6.4) | 22.8 |
|  General and administrative expenses <sup>(3)</sup> <sup>(4)</sup> | 11.7 | 24.7 | 15.5 | 51.9 | 3.5 | (8.9) | 46.5 |
|  Technology and development operating expenses | 2.6 |  |  | 2.6 |  |  | 2.6 |
|  **Adjusted EBITDA** | $**27.3** | $**3.1** | $**7.1** | $**37.5** | $**(3.5)** | $**(6.5)** | $**27.5** |
|  Interest expenses |  |  |  |  |  |  | (3.0) |
|  Depreciation and amortization |  |  |  |  |  |  | (4.9) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (8.6) |
|  Net foreign exchange gains |  |  |  |  |  |  | 1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**12.0** |

---

(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 to our interim condensed consolidated financial statements.

(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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $8.7 | $18.0 | $9.2 | $35.9 |
|  Consulting and professional fees | 1.9 | 1.7 | 6.0 | 9.6 |
|  Other administrative expenses | 1.1 | 5.0 | 0.3 | 6.4 |
|  **Total general and administrative expenses** | $**11.7** | $**24.7** | $**15.5** | $**51.9** |

---

(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 March 31, 2024 consists of $2.7 million of system development
non-operating costs, $2.6 million of professional costs related to corporate development activities, $2.2 million of share-based compensation, and $1.1 million of individually insignificant costs.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income<sup>(2)</sup> | $— | $— | $82.0 | $82.0 | $— | $167.5 | $249.5 |
|  Direct commission income Affiliated entities | 199.7 | 99.4 |  | 299.1 |  | (299.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 21.9 | 44.8 |  | 66.7 |  |  | 66.7 |

---

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  Net earned premiums |  |  | 226.6 | 226.6 |  |  | 226.6 |
|  Net investment income | 1.1 | 4.2 | 32.6 | 37.9 | 1 |  | 38.9 |
|  Net realized gains on investments |  | 1.3 | 0.6 | 1.9 |  |  | 1.9 |
|  Net unrealized (losses) gains on investments |  |  | (0.7) | (0.7) | 19.7 |  | 19 |
|  **Segment revenues** | **222.7** | **149.7** | **341.1** | **713.5** | **20.7** | **(131.6)** | **602.6** |
|  Losses and loss adjustment expenses |  |  | 167.3 | 167.3 |  |  | 167.3 |
|  Amortization of deferred acquisition costs |  |  | 104.2 | 104.2 |  | (22.8) | 81.4 |
|  General and administrative expenses<sup>(3)</sup><sup>(4)</sup> | 51.6 | 105.6 | 90.5 | 247.7 | 36.5 | (56.7) | 227.5 |
|  Technology and development operating expenses | 13.4 |  |  | 13.4 |  |  | 13.4 |
|  **Adjusted EBITDA** | $**157.7** | $**44.1** | $**(20.9)** | $**180.9** | $**(15.8)** | $**(52.1)** | $**113.0** |
|  Interest expenses |  |  |  |  |  |  | (12.1) |
|  Depreciation and amortization |  |  |  |  |  |  | (26.6) |
|  Other expenses<sup>(5)</sup> |  |  |  |  |  |  | (47.4) |
|  Net foreign exchange gains |  |  |  |  |  |  | 5.1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**32.0** |

---

(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 9 to our consolidated annual financial statements.

(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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $26.5 | $74.3 | $30.8 | $131.6 |
|  Consulting and professional fees | 5.6 | 8.8 | 15.0 | 29.4 |
|  Other administrative expenses | 19.5 | 22.5 | 44.7 | 86.7 |
|  **Total general and administrative expenses** | $**51.6** | $**105.6** | $**90.5** | $**247.7** |

---

(4) The consolidation and elimination adjustments for general and administrative expenses consist of i)
$30.8 million of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation; and ii) $25.9 million of fees for platform services
provided by the Risk Exchange that are expensed by Underwriting and recorded as revenue by Exchange Services. There are offsetting adjustments as components of the other consolidation and elimination adjustments.

(5) Other expenses for the year ended December 31, 2024 consist of $14.7 million of system development non-operating expenses, $13.1 million of professional costs related to corporate development activities, $8.4 million of share-based compensation, $7.0 million of Mission profits sharing expense, and
$4.2 million of individually insignificant costs.

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##### [**Table of Contents**](#toc)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income<sup>(2)</sup> | $— | $— | $78.4 | $78.4 | $— | $85.8 | $164.2 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 107.7 | 76.9 |  | 184.6 |  | (184.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 14.5 | 23.1 |  | 37.6 |  |  | 37.6 |
|  Net earned premiums |  |  | 105.1 | 105.1 |  |  | 105.1 |
|  Net investment income | 1.1 | 2.8 | 12.1 | 16.0 | 3.3 |  | 19.3 |
|  Net realized gains on investments |  |  | 0.5 | 0.5 |  |  | 0.5 |
|  Net unrealized gains on investments |  | 9.3 | 5.2 | 14.5 | 2.8 |  | 17.3 |
|  **Segment revenues** | **123.3** | **112.1** | **201.3** | **436.7** | **6.1** | **(98.8)** | **344.0** |
|  Losses and loss adjustment expenses |  |  | 80.3 | 80.3 |  |  | 80.3 |
|  Amortization of deferred acquisition costs |  |  | 68.4 | 68.4 |  | (18.5) | 49.9 |
|  General and administrative expenses<sup>(3)</sup><sup>(4)</sup> | 27.7 | 80.6 | 56.0 | 164.3 | 31.7 | (26.8) | 169.2 |
|  Technology and development operating expenses | 8.5 |  |  | 8.5 |  |  | 8.5 |
|  **Adjusted EBITDA** | $**87.1** | $**31.5** | $**(3.4)** | $**115.2** | $**(25.6)** | $**(53.5)** | $**36.1** |
|  Interest expenses |  |  |  |  |  |  | (10.9) |
|  Depreciation and amortization |  |  |  |  |  |  | (14.5) |
|  Other expenses<sup>(5)</sup> |  |  |  |  |  |  | (51.1) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.5) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(43.9)** |

---

(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 9 to our consolidated annual financial statements.

(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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $12.2 | $55.8 | $30.8 | $98.8 |
|  Consulting and professional fees | 2.5 | 5.9 | 11.7 | 20.1 |
|  Other administrative expenses | 13.0 | 18.9 | 13.5 | 45.4 |
|  **Total general and administrative expenses** | $**27.7** | $**80.6** | $**56.0** | $**164.3** |

---

(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 consist of $22.9 million of system development non-operating costs, $16.2 million of professional costs related to corporate development activities, $4.8 million of share-based compensation, and $7.2 million of individually insignificant
costs.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission (adjustments) income<sup>(2)</sup> | $— | $— | $(12.2) | $(12.2) | $— | $56.5 | $44.3 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 84.4 | 41.8 |  | 126.2 |  | (126.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 17.4 | 17.1 |  | 34.5 |  |  | 34.5 |
|  Net earned premiums | *—* |  | 141.2 | 141.2 |  |  | 141.2 |
|  Net investment income | 0.1 | 1 | 1.5 | 2.6 |  |  | 2.6 |
|  Net realized losses on investments |  |  | (3.9) | (3.9) |  |  | (3.9) |
|  Net unrealized (losses) gains on investments |  |  | (3.2) | (3.2) | 3.5 |  | 0.3 |
|  **Segment revenues** | **101.9** | **59.9** | **123.4** | **285.2** | **3.5** | **(69.7)** | **219.0** |
|  Losses and loss adjustment expenses |  |  | 99.5 | 99.5 |  |  | 99.5 |
|  Amortization of deferred acquisition costs |  |  | 58 | 58 |  | (23.0) | 35 |
|  General and administrative expenses<sup>(3)(4)</sup> | 18.1 | 52.6 | 47.1 | 117.8 | 12.9 | (15.1) | 115.6 |
|  Technology and development operating expenses | 8.2 |  |  | 8.2 |  |  | 8.2 |
|  **Adjusted EBITDA** | $**75.6** | $**7.3** | $**(81.2)** | $**1.7** | $**(9.4)**  | $**(31.6)** | $**(39.3)** |
|  Interest expenses |  |  |  |  |  |  | (4.2) |
|  Depreciation and amortization |  |  |  |  |  |  | (5.8) |
|  Other expenses<sup>(5)</sup> |  |  |  |  |  |  | (33.6) |
|  Net foreign exchange losses |  |  |  |  |  |  | (1.4) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**<br>(84.3** **)** |

---

(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 9 to our consolidated annual financial statements.

(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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80.3 |
|  Consulting and professional fees | 2.1 | 4.9 | 9.7 | 16.7 |
|  Other administrative expenses | 5.9 | 8.7 | 6.2 | 20.8 |
|  **Total general and administrative expenses** | $**18.1** | $**52.6** | $**47.1** | $**117.8** |

---

(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 consist of $11.4 million of system development non-operating costs, $8.7 million of
previously deferred costs related to a potential securities issuance that were expensed when we suspended those efforts due to adverse equity market conditions in 2022, $5.6 million of professional costs related to corporate development
activities, $4.8 million of costs related to the formation of Flywheel Re, and $3.1 million of other individually insignificant costs.

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**<sup>\*</sup>Non-GAAP financial measures** 

The following table provides a consolidated summary of our consolidated financial statement results including net income (loss) to Adjusted EBITDA, including the impacts of the consolidation and elimination adjustments, for the three months ended March 31, 2025 and 2024 and for the years ended December 31, 2024, 2023 and 2022. The nature of transactions among the businesses within our segments has been extensive, notably those between our Risk Exchange and Accelerant-owned insurance companies as we have scaled our business model and look to attract third party insurers to our Risk Exchange and growing network of Members. We therefore view the Adjusted EBITDA generated by our segments as representative of the economics that each would generate if they were independent companies and if the intersegment transactions were with third parties.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 | 38.9 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 2.3 | 0.4 | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **178.0** | **128.1** | **602.6** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 | 227.5 | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Total expenses** | **162.5** | **116.1** | **570.6** | **387.9** | **303.3** |
|  **Income (loss) before income taxes** | **15.5** | **12.0** | **32.0** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | $**7.8** | $**2.1** | $**22.9** | $**(64.1)** | $**(95.6)** |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses <sup>(1)</sup> | 14.2 | 8.6 | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect of adjustments to net income (loss) <sup>(2)</sup> | (0.8) | (0.9) | (3.6) | (5.1) | (3.0) |
|  **Adjusted net income (loss)** | **21.2** | **9.8** | **66.7** | **(18.1)** | **(65.0)** |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add back tax effect of adjustments to net income (loss) | 0.8 | 0.9 | 3.6 | 5.1 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 7.7 | 9.9 | 9.1 | 20.2 | 11.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) | (5.1) | 3.5 | 1.4 |
|  **Adjusted EBITDA** | $**42.8** | $**27.5** | $**113.0** | $**36.1** | $**(39.3)** |

---

(1) Other expenses for the three months ended March 31, 2025 and 2024 and for the years ended
December 31, 2024, 2023 and 2022 consisted of the following:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months<br>Ended March 31,** | **Three Months<br>Ended March 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2022** |
|  System development non-operating costs | $4.6 | $2.7 | $14.7 | $22.9 | $11.4 |
|  Professional costs related to corporate development activities | 3.6 | 2.6 | 13.1 | 16.2 | 5.6 |
|  Share-based compensation | 2.4 | 2.2 | 8.4 | 4.8 |  |
|  Mission profit interests expense | 1.6 |  | 7.0 |  |  |
|  Securities issuance costs related to potential securities offering |  |  |  |  | 8.7 |
|  Flywheel Re formation costs |  |  |  |  | 4.8 |
|  Individually insignificant costs | 2.0 | 1.1 | 4.2 | 7.2 | 3.1 |
|  **Total other expenses** | $**14.2** | $**8.6** | $**47.4** | $**51.1** | $**33.6** |

---

(2) The tax effect of other expenses adjustments to net income (loss) for each period presented were calculated
using the statutory tax rates for each of our legal entities where the expenses were incurred, including certain non-taxing jurisdictions. The statutory tax rates used in the calculations were adjusted in instances where our legal entities have
applied full valuation allowances to their respective deferred tax assets of unutilized NOLs. As such, the tax effect for the respective years varies based on the jurisdictional mix of where the expenses were incurred in each year.

**Comparison of the Three Months Ended March 31, 2025 and 2024** 

***Exchange Services***

As noted above, our segment results are presented prior to elimination and, as such, a portion of Exchange Services direct commission income revenue was generated from transactions with Accelerant Underwriting, which is eliminated upon consolidation. Additionally, a portion of Exchange Services revenue is generated by activity with MGA Operations that is also eliminated upon consolidation, as further described below. In total, Exchange Services direct commission income from Accelerant-affiliated entities accounted for 84% and 88% of the segment's direct commission income for the three months ended March 31, 2025 and 2024, respectively.

Exchange Services revenue grew by $29.2 million to $70.8 million or 70% for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. This growth is attributable to direct commission income and was driven by an increase in Members from 170 to 232 and Net Revenue Retention of 157% by continuing Members that drove Exchange Written Premium to $985.2 million for the three months ended March 31, 2025 from $583.8 million for the three months ended March 31, 2024. Third-Party Direct Written Premium from our 13 Risk Exchange Insurers comprised 19% of the total Exchange Written Premium for the three months ended March 31, 2025 compared to 9% for the three months ended March 31, 2024. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. The increase in direct commission income from affiliated entities accounted for $22.5 million of the year-over-year growth in revenue.

Combined general and administrative and technology and development operating expenses for the segment increased to $23.8 million the three months ended March 31, 2025 from $14.3 million for the three months ended March 31, 2024, largely driven by the expansion and scaling to support the growth of the Risk Exchange.

We added to the talent and headcount of our data science, product and technology teams to expand our platform offering. We expect the expenses associated with these areas will not vary directly with the size of the Exchange Written Premium once we have built the desired capabilities. We also added to our distribution, underwriting and claims teams, which are expected to grow more in line with the overall number of Members or size of the portfolio.

Adjusted EBITDA of $47.0 million grew $19.7 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, as higher Exchange Written Premium volumes (an increase of $401.4 million or 69%) at stable underlying margins were partially offset by higher year-over-year Member profit commission accruals, along with the increase in expenses noted above.

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The Adjusted EBITDA margin for the segment for the three months ended March 31, 2025 of 66% was flat compared to the three months ended March 31, 2024 as a result of the increased revenues being offset by the cost of investments we are making in our Risk Exchange capabilities.

***MGA Operations***

As noted above, our segment results are presented prior to elimination and, as such, a portion of MGA Operations direct commission income revenue was generated from transactions between Accelerant-affiliated entities, which are eliminated upon consolidation. MGA Operations direct commission income from Accelerant Underwriting accounted for 65% and 76% of the segment's direct commission income for the three months ended March 31, 2025 and 2024, respectively.

MGA Operations revenue grew by $23.5 million to $51.3 million for the three months ended March 31, 2025, resulting from a $21.3 million increase in direct commission income. The increase in direct commission income was driven primarily by Net Revenue Retention of 139% during the period for Mission Members and Owned Members. As of March 31, 2025, we had 47 total Members in MGA Operations consisting of 16 Owned Members and 31 Mission Members. This was an increase of three Members from March 31, 2024. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. Revenue for the three months ended March 31, 2025 includes $2.0 million in net realized gains on investments related to the valuation of one of our Owned Members, which was previously one of our equity method investments, upon acquiring a controlling interest in the Owned Member during the three months ended March 31, 2025.

The Adjusted EBITDA margin for the segment increased to 39% for the three months ended March 31, 2025 (from 11% in the prior period) due to an increase in direct commission income, partially offset by an increase in general and administrative expenses as the segment continues to scale its operations.

MGA Operations Adjusted EBITDA of $20.1 million increased by $17.0 million for the three months ended March 31, 2025, due to a $21.3 million increase in direct commission income, which included an $18.7 million increase from Mission Underwriters, as well as an increase from our Owned Members of $2.5 million primarily due to organic growth, and an increase of $2.0 million in net realized gains on investments, partially offset by a $6.5 million increase in general and administrative expenses. The increase in general and administrative expenses was driven by the continued investment in Mission Underwriters which contributed $4.4 million of the year-over-year increase, primarily due to investments in newly acquired owned MGAs.

***Underwriting***

The Underwriting segment revenues of $92.5 million for the three months ended March 31, 2025 grew by 15%, from $80.5 million for the three months ended March 31, 2024. Net earned premium of $63.0 million for the three months ended March 31, 2025 increased by $19.0 million from $44.0 million for the three months ended March 31, 2024 due to our gross written premium growth during the three months ended March 31, 2025. Revenues also benefited from a $2.9 million increase in net investment income due to year-over-year growth in average investment portfolio size and a $0.6 million increase in net unrealized gains on investments. Ceding commission income decreased by $10.6 million over the comparative period as ceding commission income for the three months ended March 31, 2024 due to changes in the mix of premiums we ceded to reinsurers by geography resulting in lower average ceding commission income.

The gross loss ratio on the gross premiums earned was 53.3% and 52.1% for the three months ended March 31, 2025 and 2024, respectively, with our net loss ratio (after impacts of our reinsurance programs) of 71.7% and 65.2%, for the three months ended March 31, 2025 and 2024, respectively. Our net loss ratio differs from the gross loss ratio due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which

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inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. While the cost of the excess of loss reinsurance that we incur is reflected in our earned premiums, any reimbursements for such excess of loss reinsurance in the form of the ceding commissions we receive from risk capital partners are not reflected in either our gross or net loss ratio.

During the three months ended March 31, 2025, we recorded net catastrophe losses and LAE of $2.0 million related to the January 2025 wildfires in Southern California. These losses were $40.0 million before ceded losses and LAE to our quota share and excess of loss reinsurance treaties of $38.0 million.

The components of our Underwriting segment gross and net loss ratios are set forth in the tables below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded -<br>Excess of Loss &<br>Other** | **Net** |
|  Earned premium | $718.8 | $(620.4) | $(35.4) | $63.0 |
|  Losses and loss adjustment expenses | 382.8 | (327.2) | (10.4) | 45.2 |
|  **Loss ratio** | **53.3%** | **52.7%** | **29.4%** | **71.7%** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded -<br>Excess of Loss &<br>Other** | **Net** |
|  Earned premium | $450.7 | $(388.9) | $(17.8) | $44.0 |
|  Losses and loss adjustment expenses | 234.7 | (205.8) | (0.2) | 28.7 |
|  **Loss ratio** | **52.1%** | **52.9%** | **1.1%** | **65.2%** |

---

Adjusted EBITDA for the Underwriting segment of $11.0 million for the three months ended March 31, 2025 increased $3.9 million as compared to Adjusted EBITDA of $7.1 million for the three months ended March 31, 2024. The increase in Adjusted EBITDA was driven by the aforementioned increase in revenue and decrease in operating expenses of $4.0 million due to improved operating leverage as the segment continues to reach operational maturity, partially offset by the impact of the California wildfires.

***Corporate and Other***

Corporate and Other includes the general and administrative expenses and investment results of our holding companies. Adjusted EBITDA loss from Corporate and Other of $12.1 million for the three months ended March 31, 2025 increased by $8.6 million as compared to the three months ended March 31, 2024 primarily due to increased costs to support the growth of the business, as partially offset by aggregate realized investment gain and investment income of $2.4 million.

***Consolidation and Elimination Adjustments***

As noted above, our business includes transactions that occur among our various segments. Our Accelerant-owned insurance companies within our Underwriting segment accounted for the majority of our Exchange Written Premium during the three months ended March 31, 2025 and 2024 as we built out our business model and proved the value proposition for the connection of our Members and the Risk Exchange. We expect the amount of premium written with Risk Exchange Insurers to grow significantly over time. Similarly, Mission Members and Owned Members transact with our Risk Exchange in the sourcing of business. Our equity ownership interests in Mission Members and Owned Members allow us to participate in those commissions earned that otherwise would be paid to third parties or our Independent Members. The transactions among these

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entities must be eliminated in consolidation as they represent transactions among entities under common control. However, there are considerable benefits to these intercompany transactions, as we retain associated economics rather than incurring costs otherwise paid to third parties, thereby lowering our expense base.

The impacts to our financial statements can be observed in the consolidation and elimination adjustments column within our presentation of segments above. The following represents an explanation of the various components of activity for the three months ended March 31, 2025 and 2024.

*Impacts to direct commission income for Exchange Services and MGA Operations* 

Revenue generated from transactions between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) of $90.5 million and $57.0 million for the three months ended March 31, 2025 and 2024, respectively, were eliminated, reflected by a corresponding offsetting entry in the consolidation and elimination adjustments column above. We present the segment results on a standalone basis, as if they were transactions with third parties, to assess their individual performance as well as to derive insight on the results we expect in the future as more business is sourced from Risk Exchange Insurers.

*Impacts to ceding commission income and amortization of deferred acquisition costs* 

The operating results of our Underwriting segment presented above include the full commissions paid to Exchange Services in the form of deferred acquisition costs. These costs are required to be capitalized and then amortized over the related policy term. Ceding commissions received from third-party reinsurers are first offset against the deferred acquisition costs for the business ceded, with any resulting excess ceding commissions amortized over the corresponding policy term as ceding commission income. These two factors result in the Underwriting segment incurring higher amortization of DAC expense and lower ceding commission income due to the presentation of the segment's operating results on a standalone basis. Commissions paid to affiliates are eliminated, resulting in lower consolidated deferred acquisition costs. This elimination increased the amount of ceding commission income (adjustments to increase ceding commission income by $51.5 million and $35.2 million for the three months ended March 31, 2025 and 2024, respectively) and lowered amortization of deferred acquisition costs (adjustments to decrease amortization expense by $7.7 million and $6.4 million for the three months ended March 31, 2025 and 2024, respectively).

*Impacts to general and administrative expenses* 

There are various allocations of costs between the operating segments which are similarly eliminated in consolidation. These eliminations were $8.1 million and $8.9 million for the three months ended March 31, 2025 and 2024, respectively.

**Comparison of the Years Ended December 31, 2024 and 2023**

***Exchange Services***

As noted above, our segment results are presented prior to elimination and, as such, a portion of Exchange Services direct commission income revenue was generated from transactions with Accelerant Underwriting, which is eliminated upon consolidation. Additionally, a portion of Exchange Services revenue is generated by activity with MGA Operations that is also eliminated upon consolidation, as further described below. In total, Exchange Services direct commission income from Accelerant-affiliated entities accounted for 90% and 88% of the segment's direct commission income for the years ended December 31, 2024 and 2023, respectively.

Exchange Services revenue grew by $99.4 million to $222.7 million or 81% for the year ended December 31, 2024 as compared to 2023. This growth is attributable to direct commission income and was driven by an increase in Members from 155 to 217 and Net Revenue Retention of 153% by continuing Members that drove

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Exchange Written Premium to $3.11 billion for the year ended December 31, 2024 from $1.79 billion for the year ended December 31, 2023. Third-Party Direct Written Premium from our 13 Risk Exchange Insurers comprised 16% of the total Exchange Written Premium for the year ended December 31, 2024. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. The increase in direct commission income from affiliated entities accounted for $92.0 million of the year-over-year growth in revenue.

Expenses for the segment increased to $65.0 million the year ended December 31, 2024 from $36.2 million for the year ended December 31, 2023, largely driven by the expansion and year-over-year scaling to support the growth of the Risk Exchange.

We added to the talent and headcount of our data science, product and technology teams to expand our platform offering. We expect the expenses associated with these areas will not vary directly with the size of the Exchange Written Premium once we have built the desired capabilities. We also added to our distribution, underwriting and claims teams, which are expected to grow more in line with the overall number of Members or size of the portfolio.

Adjusted EBITDA of $157.7 million grew $70.6 million for the year ended December 31, 2024 as compared to 2023, as higher Exchange Written Premium volumes (an increase of $1.32 billion or 74%) at improved underlying margins primarily due to our increased Third-Party Direct Written Premium were partially offset by higher year-over-year Member profit commission accruals, along with the increase in general and administrative expenses noted above.

The Adjusted EBITDA margin of 71% for the segment for the year ended December 31, 2024 was flat compared to prior year as a result of the increased revenues being offset by the cost of investments we are making in our Risk Exchange capabilities.

***MGA Operations***

As noted above, our segment results are presented prior to elimination and, as such, a portion of MGA Operations direct commission income revenue was generated from transactions between Accelerant-affiliated entities, which are eliminated upon consolidation. MGA Operations direct commission income from Accelerant Underwriting accounted for 69% and 77% of the segment's direct commission income for the years ended December 31, 2024 and 2023, respectively.

MGA Operations revenue grew by $37.6 million to $149.7 million for the year ended December 31, 2024, resulting from a $44.2 million increase relating to direct commission income, offset by a decrease in investment returns, which is net investment income and net realized and unrealized gains on investments, of $6.6 million primarily related to a net realized gain recognized in the prior year. The increase in direct commission income was driven primarily by strong Net Revenue Retention of 130% during the period for Mission Members and Owned Members. As of December 31, 2024, we had 47 total Members in MGA Operations consisting of 17 Owned Members and 30 Mission Members. This was an increase of six Members from December 31, 2023. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied.

The Adjusted EBITDA margin for the segment increased to 29% for the year ended December 31, 2024 (from 28% in the prior period) due to an increase in direct commission income, partially offset by an increase in general and administrative expenses as the segment continues to scale its operations. On average, we expect our Mission Members to be profitable in 18 months from the date of becoming a Member.

MGA Operations Adjusted EBITDA of $44.1 million increased by $12.6 million for the year ended December 31, 2024, due to a $44.2 million increase in direct commission income, which included a $10.9 million

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increase from our Owned Members due to organic growth, as well as growth in Mission Underwriters, which contributed $33.3 million to the increase in direct commission income, partially offset by a $25.0 million increase in general and administrative expenses as well as a decrease in investment returns of $6.6 million. The increase in general and administrative expenses was driven by the continued investment in Mission Underwriters which contributed $20.2 million of the year-over-year increase, primarily due to investments in newly acquired owned MGAs.

***Underwriting***

The Underwriting segment revenues of $341.1 million for the year ended December 31, 2024 grew by 69%, from $201.3 million for 2023. Net earned premium of $226.6 million for the year ended December 31, 2024 increased by $121.5 million from $105.1 million for 2023 due to our gross written premium growth during the year ended December 31, 2024. This overall premium growth had an associated positive impact on ceding commission income which increased $3.6 million over the comparative period. The remaining increase in revenue related to a $20.5 million increase in net investment income due to year-over-year improvements in market conditions and larger portfolio size, partially offset by a $5.9 million negative variance in net unrealized gains on investments.

The gross loss ratio on the gross premiums earned was 54.3% and 51.3% for the years ended December 31, 2024 and 2023, respectively, with our net loss ratio (after impacts of our reinsurance programs) of 73.8% and 76.4%, for the years ended December 31, 2024 and 2023, respectively. Our net loss ratio differs from the gross loss ratio due to decisions that we make regarding the amount of excess of loss reinsurance secured (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. While the cost of the excess of loss reinsurance that we incur is reflected in our earned premiums, any reimbursements for such excess of loss reinsurance in the form of the ceding commissions we receive from risk capital partners are not reflected in either our gross or net loss ratio.

The components of our Underwriting segment gross and net loss ratios are set forth in the tables below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Gross** | **Ceded - Quota**<br>**Share** | **Ceded -<br>Excess of Loss**<br>**& Other** | **Net** |
|  Earned premium | $2231.6 | $(1916.3) | $(88.7) | $226.6 |
|  Losses and loss adjustment expenses | 1212.1 | (1022.8) | (22.0) | 167.3 |
|  **Loss ratio** | **54.3%** | **53.4%** | **24.8%** | **73.8%** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded -<br>Excess of Loss<br>& Other** | **Net** |
|  Earned premium | $1319.4 | $(1149.7) | $(64.6) | $105.1 |
|  Losses and loss adjustment expenses | 677.2 | (589.3) | (7.6) | 80.3 |
|  **Loss ratio** | **51.3%** | **51.3%** | **11.8%** | **76.4%** |

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Adjusted EBITDA loss for the Underwriting segment of $20.9 million for the year ended December 31, 2024 increased $17.5 million as compared to an Adjusted EBITDA loss of $3.4 million for 2023. The increase in Adjusted EBITDA loss is driven by updated loss estimates and development and the related negative impact to sliding scale commissions primarily relating to EU and UK liability risks for the 2022 underwriting year for members that have either been discontinued or are now subject to significant responsive underwriting actions, as

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well as increased general and administrative expenses due to scaling of operations to support growth across our business model. Partially offsetting this decline was a $14.7 million improvement in investment returns driven by year-over-year market outperformance.

***Corporate and Other***

Corporate and Other includes the general and administrative expenses and investment results of our holding companies.

Adjusted EBITDA loss from Corporate and Other of $15.8 million for the year ended December 31, 2024 decreased by $9.8 million as compared to 2023 primarily due to investment gains related to our combined investments in the equity and warrants of an emerging technology enabled third-party administrator (that also provides services to certain of our Members).

***Consolidation and Elimination Adjustments***

As noted above, our business includes transactions that occur among our various segments. Our Accelerant-owned insurance companies within our Underwriting segment accounted for the majority of our Exchange Written Premium during the years ended December 31, 2024 and 2023 as we built out our business model and proved the value proposition for the connection of our Members and the Risk Exchange. We expect the amount of premium written with Risk Exchange Insurers to grow significantly over time. Similarly, Mission Members and Owned Members transact with our Risk Exchange in the sourcing of business. Our equity ownership interests in Mission Members and Owned Members allow us to participate in those commissions earned that otherwise would be paid to third parties or our Independent Members. The transactions among these entities must be eliminated in consolidation as they represent transactions among entities under common control. However, there are considerable benefits to these intercompany transactions, as we retain associated economics rather than incurring costs otherwise paid to third parties, thereby lowering our expense base.

The impacts to our financial statements can be observed in the consolidation and elimination adjustments column within our presentation of segments above. The following represents an explanation of the various components of activity for the years ended December 31, 2024 and 2023.

*Impacts to direct commission income for Exchange Services and MGA Operations* 

Revenue generated from transactions between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) of $299.1 million and $184.6 million for the years ended December 31, 2024 and 2023, respectively, were eliminated, reflected by a corresponding offsetting entry in the consolidation and elimination adjustments column above. We present the segment results on a standalone basis, as if they were transactions with third parties, to assess their individual performance as well as to derive insight on the results we expect in the future as more business is sourced from Risk Exchange Insurers.

*Impacts to ceding commission income and amortization of deferred acquisition costs* 

The operating results of our Underwriting segment presented above include the full commissions paid to Exchange Services in the form of deferred acquisition costs. These costs are required to be capitalized and then amortized over the related policy term. Ceding commissions received from third-party reinsurers are first offset against the deferred acquisition costs for the business ceded, with any resulting excess ceding commissions amortized over the corresponding policy term as ceding commission income. These two factors result in the Underwriting segment incurring higher amortization of DAC expense and lower ceding commission income due to the presentation of the segment's operating results on a standalone basis. Commissions paid to affiliates are eliminated, resulting in lower consolidated deferred acquisition costs. This elimination increased the amount of ceding commission income (adjustments to increase ceding commission income by $167.5 million and

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$85.8 million for the years ended December 31, 2024 and 2023, respectively) and lowered amortization of deferred acquisition costs (adjustments to decrease amortization expense by $22.8 million and $18.5 million for the years ended December 31, 2024 and 2023, respectively).

*Impacts to general and administrative expenses* 

There are various allocations of costs between the operating segments which are similarly eliminated in consolidation. These eliminations were $56.7 million and $26.8 million for the years ended December 31, 2024 and 2023, respectively.

**Comparison of the Years Ended December 31, 2023 and 2022** 

***Exchange Services***

As noted above, our segment results are presented prior to elimination and, as such, a portion of Exchange Services direct commission income revenue was generated from transactions with Accelerant Underwriting, which is eliminated upon consolidation. Additionally, a portion of Exchange Services revenue is generated by activity with MGA Operations that is also eliminated upon consolidation, as further described below. In total, Exchange Services direct commission income from Accelerant-affiliated entities accounted for 88% and 83% of the segment's direct commission income for the years ended December 31, 2023 and 2022, respectively.

Exchange Services revenue grew by $21.4 million to $123.3 million or 21% for the year ended December 31, 2023 as compared to the prior year. This growth is mostly attributable to direct commission income and was driven by an increase in Members from 101 to 155 and Net Revenue Retention of 133% by continuing Members that drove Exchange Written Premium to $1.79 billion for the year ended December 31, 2023 from $1.20 billion for the year ended December 31, 2022. Third-Party Direct Written Premium from our five Risk Exchange Insurers comprised 10% of the total Exchange Written Premium for the year ended December 31, 2023. Direct commission income for 2023 also included $4.8 million of negative commission income adjustments related to the effect of sliding scale commissions from adverse development on legacy run-off business written in 2020 and 2019 as compared to favorable sliding scale commission adjustments from the same business of $5.9 million in 2022. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. The increase in direct commission income from affiliated entities accounted for $23.3 million of the year-over-year growth in revenue.

General and administrative expenses for the segment increased to $27.7 million for the year ended December 31, 2023 from $18.1 million for the year ended December 31, 2022, largely driven by the expansion and year-over-year scaling to support the growth in the U.S. market and across the Risk Exchange.

We added to the talent and headcount of our data science, product and technology teams to expand our platform offering. We expect the expenses associated with these areas will not vary directly with the size of the Exchange Written Premium once we have built the desired capabilities. We also added to our distribution, underwriting and claims teams, which are expected to grow more in line with the overall number of Members or size of the portfolio.

Adjusted EBITDA of $87.1 million grew $11.5 million for the year ended December 31, 2023 as compared to the same period in the prior year, as higher Exchange Written Premium volumes (an increase of $586.6 million or 49%) at stable underlying margins were partially offset by higher year-over-year Member profit commission accruals, along with the increase in general and administrative expenses noted above.

The Adjusted EBITDA margin for the segment for the year ended December 31, 2023 was 71%, slightly lower than 74% in 2022, reflecting the investments we are making in our Risk Exchange capabilities.

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***MGA Operations***

As noted above, our segment results are presented prior to elimination and, as such, a portion of MGA Operations direct commission income revenue was generated from transactions between Accelerant-affiliated entities, which are eliminated upon consolidation. MGA Operations direct commission income from Accelerant Underwriting accounted for 77% and 71% of the segment's direct commission income for the years ended December 31, 2023 and 2022, respectively.

MGA Operations revenue grew by $52.2 million to $112.1 million for the year ended December 31, 2023, with $35.1 million of the period-over-period increase relating to direct commission income from affiliated entities. The increase was driven primarily by strong Net Revenue Retention of 155% during the year for Mission Members and Owned Members. As of December 31, 2023, we had 41 total Members in MGA Operations consisting of 16 Owned Members and 25 Mission Members. This was an increase of 10 Members from 2022. Revenues are recognized in accordance with written premium when the performance obligations underlying the services have been satisfied. Revenue for the year ended December 31, 2023 includes a $9.3 million investment gain related to the valuation of one of the Owned Members which we account for under the measurement alternative.

The Adjusted EBITDA margin for the segment increased to 28% for the year ended December 31, 2023 (from 12% in the prior year) due to the growth in revenue outpacing the increase in general and administrative expenses, as the segment continues to scale in its operations.

MGA Operations Adjusted EBITDA of $31.5 million grew $24.2 million for the year ended December 31, 2023, due to the $9.3 million investment gain noted above and a $41.1 million increase in direct commission income, which included a $17.3 million increase from our Owned Members due to organic growth, as well as significant growth in Mission Underwriters, which contributed $23.8 million to the increase in direct commission income, partially offset by a $28.0 million increase in general and administrative expenses driven by the continued investment in Mission Underwriters, which contributed $19.7 million of the increase in general and administrative expenses primarily driven by investments in newly formed MGAs. As new teams of specialty underwriters leave their former insurance company employers to start Mission Members, there is an amount of formation expenses required to stand their products up on Mission's policy administration system.

***Underwriting***

The Underwriting segment revenues of $201.3 million for the year ended December 31, 2023 grew by 63%, from $123.4 million for the same period in the prior year. Net earned premium of $105.1 million for the year ended December 31, 2023 decreased by $36.1 million from $141.2 million for the prior year, as we decreased the amount of business we retained in 2023 as explained above. This decrease in premium retention had an associated positive impact on ceding commission income, which increased $90.6 million over the comparative period. The remaining increase in revenue related to increases in net investment income and net realized and unrealized gains on investments due to year-over-year improvements in market conditions.

The gross loss ratio on the gross premiums earned was 51.3% and 55.5% for the years ended December 31, 2023 and 2022, respectively, with our net loss ratio (after impacts of our reinsurance programs) of 76.4% and 70.5%, for the years ended December 31, 2023 and 2022, respectively. Our net loss ratio differs from the gross loss ratio due to decisions that we make regarding the amount of excess of loss reinsurance we obtain (since this will reduce the amount of retained premiums we have). The decision to engage such reinsurance, which inures to the benefit of our risk capital partners, supports our management of downside risk to large losses. While the cost of the excess of loss reinsurance that we incur is reflected in our earned premiums, any reimbursements for such excess of loss reinsurance in the form of the ceding commissions we receive from risk capital partners are not reflected in either our gross or net loss ratio.

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**The components of our Underwriting segment gross and net loss ratios are set forth in the tables below:** 

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|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded - Excess<br>of Loss &<br>Other** | **Net** |
|  Earned premium | $1319.4 | $(1149.7) | $(64.6) | $105.1 |
|  Losses and loss adjustment expenses | 677.2 | (589.3) | (7.6) | 80.3 |
|  **Loss ratio** | **51.3%** | **51.3%** | **11.8%** | **76.4%** |

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|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Gross** | **Ceded - Quota<br>Share** | **Ceded - Excess<br>of Loss &<br>Other** | **Net** |
|  Earned premium | $778.6 | $(601.4) | $(36.0) | $141.2 |
|  Losses and loss adjustment expenses | 431.8 | (314.4) | (17.9) | 99.5 |
|  **Loss ratio** | **55.5%** | **52.3%** | **49.7%** | **70.5%** |

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Adjusted EBITDA loss for the Underwriting segment of $3.4 million for the year ended December 31, 2023 decreased $77.8 million as compared to the prior year. The improvement in Adjusted EBITDA loss included a $23.4 million relative improvement in investment returns driven by year-over-year market performance, and the year ended December 31, 2022 included a $34.1 million impact of updated loss estimates and development primarily relating to one large European Member for the 2020 underwriting year and the related negative impact to sliding scale commissions. Ceding commission income for the year ended December 31, 2023 included a reduction of $19.1 million for net sliding scale adjustments resulting from the loss experience of covered insurance contracts. The year-over-year comparison also benefited from the impact to ceding commission income associated with decreasing our premium retention, as noted above. These improvements were partially offset by an $8.9 million increase in general and administrative expenses due to scaling of operations to support growth in the U.S. market and across the Accelerant business model.

***Corporate and Other***

Corporate and Other includes the general and administrative expenses and investment results of our holding companies.

Adjusted EBITDA loss from Corporate and Other of $25.6 million for the year ended December 31, 2023 increased by $16.2 million as compared to the same period in the prior year, driven by increases in headcount to support growth of the organization, partially offset by investment income and unrealized gains on investments.

***Consolidation and Elimination Adjustments***

As noted above, our business includes transactions that occur among our various segments. Our owned insurance companies within our Underwriting segment accounted for a majority of our Exchange Written Premium during the years ended December 31, 2023 and 2022 as we built out our business model and proved the value proposition for the connection of our Members and the Risk Exchange. We expect the amount of premium written with Risk Exchange Insurers to grow significantly over time. Similarly, Mission Members and Owned Members transact with our Risk Exchange in the sourcing of business. Our equity ownership interests in Mission Members and Owned Members allow us to participate in those commissions earned that otherwise would be paid to third parties or our Independent Members. The transactions among these entities must be eliminated in consolidation as they represent transactions among entities under common control. However, there are considerable benefits to these intercompany transactions, as we retain associated economics rather than incurring costs otherwise paid to third parties, lowering our expense base.

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The impacts to our financial statements can be observed in the consolidation and elimination adjustments column within our presentation of segments above. The following represents an explanation of the various components of activity for the years ended December 31, 2023 and 2022.

*Impacts to direct commission income for Exchange Services and MGA Operations* 

Revenue generated from transactions between Accelerant-affiliated entities (including from Underwriting to Exchange Services and Exchange Services to MGA Operations) of $184.6 million and $126.2 million for the years ended December 31, 2023 and 2022, respectively, were eliminated, reflected by a corresponding offsetting entry in the consolidation and elimination adjustments column above. We present the segment results on a standalone basis, as if they were transactions with third parties, to assess their individual performance as well as to derive insight on the results we expect in the future as more business is sourced from Risk Exchange Insurers.

*Impacts to ceding commission income and amortization of deferred acquisition costs* 

The operating results of our Underwriting segment presented above include the full commissions paid to Exchange Services in the form of DAC. These costs are required to be capitalized and then amortized over the related policy term. Ceding commissions received from third-party reinsurers are first offset against the DAC for the business ceded, with any resulting excess ceding commissions amortized over the corresponding policy term as ceding commission income. These two factors result in the Underwriting segment incurring higher amortization of DAC expense and lower ceding commission income due to the presentation of the segment's operating results on a standalone basis. Commissions paid to affiliates are eliminated, resulting in lower consolidated DAC. This elimination increased the amount of ceding commission income (adjustments to increase ceding commission income by $85.8 million and $56.5 million for the years ended December 31, 2023 and 2022, respectively) and lowered amortization of DAC (adjustments to decrease amortization expense by $18.5 million and $23.0 million for the years ended December 31, 2023 and 2022, respectively).

*Impacts to general and administrative expenses* 

There are various allocations of costs between the operating segments which are similarly eliminated in consolidation. These eliminations were $26.8 million and $15.1 million for the years ended December 31, 2023 and 2022, respectively.

**Liquidity and Capital Resources** 

***General***

Liquidity is a measure of a company's ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations. Accelerant Holdings' insurance and reinsurance operations are subject to regulation and supervision in each of the jurisdictions where they are domiciled and licensed to conduct business. See "Regulation." Generally, regulatory authorities have broad supervisory and administrative powers over such matters as licenses, standards of solvency, premium rates, policy forms, investments, security deposits, methods of accounting, form and content of financial statements, reserves for unpaid loss and LAE, reinsurance, minimum capital and surplus requirements, dividends and other distributions to shareholders, periodic examinations, and annual and other report filings. In general, such regulation is for the protection of policyholders rather than shareholders. Accelerant Holdings supports its liquidity needs with available liquid cash resources and short duration, high-quality fixed income portfolios.

***Sources and uses of funds***

Accelerant Holdings is a holding company with no substantial operations of its own and its assets consist primarily of its investments in subsidiaries. Its cash needs primarily consist of the payment of corporate expenses,

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interest payments on senior notes and strategic investment opportunities (i.e., into MGA Operations). We may receive cash through (1) issuance of mezzanine equity, permanent equity or debt securities, (2) loans from banks, (3) corporate service fees from our Exchange Services, MGA Operations and Underwriting segments, (4) payments from subsidiaries pursuant to our consolidated tax allocation agreements, and (5) dividends from subsidiaries within the Exchange Services, MGA Operations and Underwriting segments. We may use the proceeds from these sources to support business growth, invest in Member MGAs and Mission Underwriters, pay taxes, and for other business purposes.

The Exchange Services and MGA Operations segments generate cash from net commission income from the services provided to both affiliates and third parties.

Cash generated by our insurance and reinsurance operating subsidiaries is used primarily to settle loss and LAE, reinsurance premiums, acquisition costs, interest expense, taxes, and general and administrative expenses. The underwriting segment generates liquidity, as premiums are received in advance of the time that losses are paid.

We file a consolidated federal income tax return for our U.S. subsidiaries, and under our corporate tax allocation agreement, each participant is charged or refunded taxes according to the amount that the participant would have paid or received had it filed on a separate return basis with the Internal Revenue Service.

As of March 31, 2025, we had $1.99 billion in investments, cash, cash equivalents and restricted cash, compared to $1.88 billion as of December 31, 2024. As of March 31, 2025, we had $340.5 million within current accounts and money-market accounts of non-regulated entities, primarily our agencies servicing the Risk Exchange and holding companies, included within the total cash and investments, compared to $266.7 million as of December 31, 2024.

**Financial Condition** 

***Equity***

As of March 31, 2025 and December 31, 2024, total equity was $454.4 million and $427.0 million, respectively. The change as of March 31, 2025 compared to December 31, 2024 was primarily due to acquisition of non-controlling interests of $11.0 million from our step-acquisition of a subsidiary company, other comprehensive income of $8.5 million, net income of $7.8 million, and share-based compensation of $2.4 million, partially offset by dividends paid to non-controlling interests of $2.3 million.

***Cash, Cash Equivalents and Restricted Cash***

As of March 31, 2025 and December 31, 2024, we had cash and cash equivalents balances of $1.29 billion and $1.27 billion, respectively. As of March 31, 2025, we had restricted cash and cash equivalents balances of $52.7 million. Cash and cash equivalents are comprised of amounts in interest-bearing deposit accounts with financial institutions insured by the FDIC up to $250 thousand per account. Restricted cash and cash equivalents are comprised of cash and money market funds that have been contributed toward trusts. Generally, our cash and cash equivalents in interest-bearing deposit accounts may exceed FDIC insurance limits exposing us to credit risk in the event of default by the financial institutions. We believe the risk of loss from such an event of default is minimal, however, we periodically review the financial stability of these institutions.

***Investment Portfolio***

Our invested assets consist of fixed maturity securities, short-term investments, equity method investments, equity securities, and other investments. As of March 31, 2025, 83% of our investments were comprised of $582.7 million of available for sale fixed maturity securities. Also included in our investments were $8.9 million of equity method investments, $64.2 million of short-term investments available for sale, at fair value, and $47.0 million of other investments.

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Our investment portfolio has consistently maintained high credit quality and short duration investments that are positioned for capital preservation. We primarily invest in liquid, short-and medium-term securities, investment-grade fixed income, bond fund investment vehicles with low duration and volatility with the primary objectives of matching assets with liabilities and covering near-term obligations. We limit our exposure to alternative investments. As of March 31, 2025, our cash and fixed income and short-term investments portfolio represented 97% of our total portfolio. 88% of our fixed income and short-term investments carried an S&P fixed income rating of "A" or higher, the balance of which was rated "BBB", and maintained a duration of 2.8 years.

In 2023, we executed a partial investment management transition from Mercer Investments LLC ("Mercer") and Loomis, Sayles & Company, L.P. ("Loomis"), the previous subadvisors on the U.S. portfolio, to Wellington Management Company ("Wellington"), with the full transition of all of our global assets under management to Wellington completed during the first half of 2024. The investment management expenses were $0.2 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

The material terms of the Mercer and Loomis contracts were as follows: fees of 25 basis points of assets under management; no minimum asset under management requirements; no minimum term of agreement; and termination by either party with 30 days notice.

The material terms of the Wellington contract are as follows: fees of 12 basis points for the first $200.0 million of assets under management, on a reducing tier basis to 7 basis points for assets under management of $1.0 billion or greater; no minimum asset under management requirements; no minimum term of agreement; we can terminate this agreement at any time; and Wellington can terminate with three months notice or with immediate effect if required by a competent regulatory authority or law.

The following table summarizes the components of our total investments and cash, cash equivalents and restricted cash as of March 31, 2025, December 31, 2024 and 2023:

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|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Fair value** | **% of total** | **Fair value** | **% of total** | **Fair value** | **% of total** |
|  Short-term investments | $64.2 | 3% | $64.8 | 3% | $8.0 | 1% |
|  Fixed maturity securities | 582.7 | 29% | 479.5 | 25% | 86.5 | 8% |
|  Equity securities |  | —% |  | —% | 116.7 | 11% |
|  Equity method investments | 8.9 | —% | 18.2 | 1% | 15.7 | 2% |
|  Other investments | 47.0 | 2% | 45.3 | 2% | 25.5 | 2% |
|  Cash, cash equivalents and restricted cash | 1290.7 | 66% | 1273.0 | 69% | 775.4 | 76% |
|  **Total investments and cash, cash equivalents and restricted cash** | $**1993.5** | **100%** | $**1880.8** | **100%** | $**1027.8** | **100%** |

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*Fixed maturity securities and Short-term investments* 

At March 31, 2025, December 31, 2024 and 2023, the fair values of fixed maturity and short-term investments were as follows:

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|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Fair value** | **% of total** | **Fair value** | **% of total** | **Fair value** | **% of total** |
|  Corporate | $223.3 | 35% | $174.0 | 32% | $30.6 | 32% |
|  U.S. government and agency | 155.5 | 24% | 128.2 | 24% | 32.1 | 34% |
|  Non-U.S. government and agency | 174.6 | 27% | 158.6 | 29% | 2.6 | 3% |
|  Residential mortgage-backed | 45.6 | 7% | 43.0 | 8% | 18.4 | 19% |
|  Commercial mortgage-backed | 21.1 | 3% | 18.4 | 3% | 2.8 | 3% |
|  Other asset-backed securities | 26.8 | 4% | 22.1 | 4% | 8.0 | 9% |
|  **Total fixed maturity and short-term investments** | $**646.9** | **100%** | $**544.3** | **100%** | $**94.5** | **100%** |

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The following table summarizes the credit quality of fixed maturity and short-term investments as of March 31, 2025, December 31, 2024 and 2023:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| **Rating** | **Fair value** | **% of total** | **Fair value** | **% of total** | **Fair value** | **% of total** |
|  AAA | $133.5 | 21% | $110.1 | 20% | $11.9 | 13% |
|  AA | 310.0 | 48% | 276.1 | 51% | 47.6 | 50% |
|  A | 126.8 | 20% | 92.6 | 17% | 20.4 | 22% |
|  BBB  | 76.6 | 11% | 65.5 | 12% | 14.6 | 15% |
|  **Total fixed maturity and short-term investments** | $**646.9** | **100%** | $**544.3** | **100%** | $**94.5** | **100%** |

---

The amortized cost and fair values of fixed maturity and short-term investments by contractual maturity were as follows:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Amortized<br>cost** | **Fair<br>value** | **% of<br>total** | **Amortized<br>cost** | **Fair<br>value** | **% of<br>total** | **Amortized<br>cost** | **Fair<br>value** | **% of<br>total** |
|  Due in one year or less | $114.2 | $114.4 | 18% | $105.6 | $104.6 | 19% | $18.6 | $18.6 | 20% |
|  Due after one year through five years | 342.6 | 343.7 | 53% | 277.0 | 275.0 | 51% | 45.6 | 45.6 | 48% |
|  Due after five years through ten years | 89.2 | 88.3 | 14% | 76.4 | 75.0 | 14% | 1.1 | 1.1 | 1% |
|  Due after ten years | 7.4 | 7.0 | 1% | 6.5 | 6.2 | 1% |  |  | —% |
|  Residential mortgage-backed | 46.0 | 45.6 | 7% | 44.4 | 43.0 | 8% | 19.0 | 18.4 | 19% |
|  Commercial mortgage-backed | 20.9 | 21.1 | 3% | 18.6 | 18.4 | 3% | 2.8 | 2.8 | 3% |
|  Other asset-backed securities | 26.7 | 26.8 | 4% | 22.1 | 22.1 | 4% | 8.0 | 8.0 | 9% |
|  **Total** | $**647.0** | $**646.9** | **100%** | $**550.6** | $**544.3** | **100%** | $**95.1** | $**94.5** | **100%** |

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*Equity securities* 

Our investment in equity securities consists of mutual funds that primarily invest in high-quality debt securities and were as follows as of December 31, 2023 (there were no equity security holdings as of March 31, 2025 or December 31, 2024):

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2023** |
|  **Equity securities, at fair value** | $**116.7** |

---

The following table summarizes the credit quality of equity securities as of December 31, 2023:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2023** | **December 31, 2023** |
| **Rating** | **Fair value** | **% of<br>Total<br>equity<br>securities** |
|  AAA | $11.6 | 10% |
|  AA | 16.9 | 14% |
|  A | 41.2 | 35% |
|  BBB | 37.6 | 32% |
|  BB and lower | 9.4 | 9% |
|  **Total equity securities** | $**116.7** | **100%** |

---

The following tables summarize the concentration by sector and industry of equity securities as of December 31, 2023:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2023** | **December 31, 2023** |
| **Sector** | **Fair value** | **% of<br>Total<br>equity<br>securities** |
|  Financials | $59.7 | 53% |
|  Government | 17.9 | 18% |
|  Healthcare | 6.8 | 4% |
|  Consumer Discretionary | 4.9 | 3% |
|  Industrials | 4.9 | 3% |
|  Consumer Staples | 5.5 | 3% |
|  Information Technology | 3.1 | 2% |
|  Utilities | 3.8 | 2% |
|  Communication Services | 3.3 | 3% |
|  Other | 6.8 | 9% |
|  **Total equity securities** | $**116.7** | **100%** |

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2023** | **December 31, 2023** |
| **Industry** | **Fair value** | **% of<br>Total<br>equity<br>securities** |
|  Banks | $43.8 | 38% |
|  Government | 17.9 | 15% |
|  Financial Services | 13.8 | 12% |
|  Food, Beverage & Tobacco | 4.4 | 4% |
|  Health Care Equipment & Services | 4.6 | 4% |
|  Utilities | 3.8 | 3% |
|  Insurance | 2.1 | 2% |
|  Extraterritorial Organizations | 3.8 | 3% |
|  Telecommunication Services | 2.3 | 2% |
|  Commercial & Professional Services | 2.0 | 2% |
|  Capital Goods | 2.3 | 2% |
|  Consumer Services | 2.3 | 2% |
|  Technology Hardware, Storage & Peripherals | 1.4 | 1% |
|  Pharmaceuticals, Biotechnology & Life Sciences | 2.2 | 2% |
|  Other | 10.0 | 8% |
|  **Total equity securities** | $**116.7** | **100%** |

---

Our largest individual mutual funds of an individual issuer in equity securities as of December 31, 2023 was $14.4 million comprised of mutual funds holding high-quality UK government bonds, representing 12.3% and 6.0% of total equity securities and total equity, respectively.

In early 2024, we repositioned our investment mix to consist primarily of high-quality fixed maturity investments instead of equity securities.

**Cash Flows** 

Our most significant source of cash inflow is from premiums received from our insureds, which, for most policies, we receive at the beginning of the coverage period. Our most significant cash outflow is for claims that arise when a policyholder incurs an insured loss. Because the payment of claims occurs after the receipt of the premium, with the potential for a multi-year timeline, we invest the cash in various investment securities that earn interest and dividends. We also use cash to pay commissions to brokers, as well as to pay for ongoing operating expenses such as salaries, consulting services and taxes. As described under "Reinsurance" below, we use reinsurance to manage the risk that we take on our policies. We cede, or pay out, part of the premiums we receive to our reinsurers and collect cash back when losses subject to our reinsurance coverage are paid.

Our cash flows for the three months ended March 31, 2025 and 2024 were:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Cash, cash equivalents and restricted cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $91.8 | $144.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | (89.7) | (90.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | (2.3) | (1.9) |
|  Effect of foreign currency rate change on cash, cash equivalents and restricted cash | 17.9 | (2.6) |
|  **Net change in cash, cash equivalents, and restricted cash** | $**17.7** | $**49.5** |

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***Operating Activities***

We believe that claim payments will be sufficiently supported by annual positive cash flows from operating activities. However, should operating cash flows be insufficient to fund claim payment obligations, we would use alternative internal funding sources from cash and cash equivalent balances, liquidation of portfolio investments and potential external sources, such as credit facilities. Our fixed portfolio is weighted towards conservative, high-quality securities. Management expects that, if necessary, the full value of cash, cash equivalents, short-term and fixed income investments could be available in two to three business days under normal market conditions.

Net cash proceeds from operating activities for the three months ended March 31, 2025 and 2024 were $91.8 million and $144.3 million, respectively. The year-over-year decrease in cash provided by operating activities is primarily attributable to timing differences within our insurance and reinsurance activities partially offsetting cash generated by the growth of our Risk Exchange.

***Investing Activities***

Our portfolio is weighted towards conservative, high-quality securities as well as cash and cash equivalent investments, such as money market funds. We also hold investments in alternative securities that typically report on a consistent lag basis whereby their valuation may change in response to future financial performance of the investees.

For the three months ended March 31, 2025, net cash used in investing activities was $89.7 million, which is primarily related to purchases of high-quality fixed maturity securities, partially offset by sales and maturities of fixed maturity securities.

For the three months ended March 31, 2024, net cash used in investing activities was $90.3 million, which is primarily related to the repositioning of our investment portfolio through the divestment of our mutual funds into separately managed portfolios mainly investing in high-quality fixed maturity securities during the period, as well as net purchases of short-term investments.

***Financing Activities***

Net cash used in financing activities for the three months ended March 31, 2025 and 2024 was $2.3 million and $1.9 million, respectively, and primarily related to dividends paid to non-controlling interests.

Our cash flows for the years ended December 31, 2024, 2023 and 2022 were:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Cash, cash equivalents and restricted cash provided by (used in): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $785.7 | $290.0 | $67.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | (380.1) | (12.6) | (147.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | 110.3 | 10.3 | 256.0 |
|  Effect of foreign currency rate change on cash, cash equivalents and restricted cash | (18.3) | 4.1 | (15.5) |
|  **Net change in cash, cash equivalents, and restricted cash** | $**497.6** | $**291.8** | $**160.3** |

---

***Operating Activities***

We believe that claim payments will be sufficiently supported by annual positive cash flows from operating activities. However, should operating cash flows be insufficient to fund claim payment obligations, we would use

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alternative internal funding sources from cash and cash equivalent balances, liquidation of portfolio investments and potential external sources, such as credit facilities. Our fixed portfolio is weighted towards conservative, high-quality securities. Management expects that, if necessary, the full value of cash, cash equivalents, short-term and fixed income investments could be available in two to three business days under normal market conditions.

Net cash proceeds from operating activities for the years ended December 31, 2024, 2023 and 2022 were $785.7 million, $290.0 million and $67.5 million, respectively. The year-over-year increases from operating activities are primarily attributable to our significant growth and our insurance and reinsurance activities.

***Investing Activities***

Our portfolio is weighted towards conservative, high-quality securities as well as cash and cash equivalent investments, such as money market funds. We also hold investments in alternative securities that typically report on a consistent lag basis whereby their valuation may change in response to future financial performance of the investees. For the year ended December 31, 2024, net cash used in investing activities was $380.1 million, which is primarily related to the repositioning of the portfolio by divestment of mutual funds and subsequent purchase of separately managed portfolios mainly investing in high-quality fixed maturity securities during the period, as we repositioned our investment mix.

For the year ended December 31, 2023, net cash used in investing activities was $12.6 million, which is primarily related to the increase in purchases of equity securities during the period resulting from increased premium volume, as well as increased investing in short-term and fixed income investments in response to rising interest rates.

For the year ended December 31, 2022, net cash used in investing activities was $147.7 million, which is primarily related to the increase in purchases of equity securities during the period resulting from increased premium volume, as well as increased investing in short-term and fixed income investments in response to rising interest rates.

***Financing Activities***

Net cash provided by financing activities for the years ended December 31, 2024, 2023 and 2022 was $110.3 million, $10.3 million and $256.0 million, respectively.

The year-over-year increase in net cash provided by financing activities for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily due to the issuance of $114.5 million of convertible preference shares and contingently issuable warrants during the year ended December 31, 2024. Additionally, we issued debt of $49.7 million during the year ended December 31, 2024 as compared to $20.0 million during the year ended December 31, 2023, partially offset by the repayment of debt of $50.4 million during the year ended December 31, 2024 as compared to $2.0 million during the year ended December 31, 2023.

The year-over-year decrease in net cash provided by financing activities for the year ended December 31, 2023 as compared to the year ended December 31, 2022 was primarily due to the elevated level of capital raising activity during the year ended December 31, 2022, which included $204.8 million in net proceeds related to the issuance of preference shares compared to $0.7 million of such activity for the year ended December 31, 2023. Additionally, we issued debt of $20.0 million during the year ended December 31, 2023 as compared to $54.1 million during the year ended December 31, 2022.

**Supplemental non-cash activity information** 

For the year ended December 31, 2024, we had non-cash financing activities consisting of the issuance of common shares with a fair value of $7.0 million as consideration for the acquisition of all the outstanding

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common equity ownership interest in Mission, together with the issuance of convertible preference shares as an anti-dilutive measure to existing shareholders for no consideration. For further information on the Mission acquisition, refer to Note 6 of our annual consolidated financial statements.

For the year ended December 31, 2023, we had non-cash operating activities related to a loss portfolio transfer reinsurance contract and a commutation agreement. Refer to Note 8 of our annual consolidated financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022 for further detail regarding these reinsurance transactions.

For the year ended December 31, 2022, we had non-cash financing activities consisting of the issuance of 2,500 Class A convertible preference shares to a related party consisting of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by the related party by way of a $0.5 million loan funded by us. In addition, non-controlling interest increased by $2.3 million due to our acquisition of subsidiaries.

**Reinsurance** 

As part of our strategy to engage with risk capital partners, we offer quota share reinsurance contracts to these partners. We also purchase excess of loss reinsurance contracts for the business that we retain to further limit our exposure to potential large losses. Our reinsurance is primarily contracted under quota-share reinsurance treaties and excess of loss treaties. In quota-share reinsurance, the reinsurer agrees to assume a specified percentage of the ceding company's losses arising out of a defined class of business in exchange for a corresponding percentage of premiums, net of a ceding commission. In excess of loss reinsurance, the reinsurer agrees to assume all or a portion of the ceding company's losses, in excess of a specified amount. In excess of loss reinsurance, the premium payable to the reinsurer is negotiated by the parties based on their assessment of the amount of risk being ceded to the reinsurer because the reinsurer does not share proportionately in the ceding company's losses.

We employ disciplined and principles-based reserving practices with effective controls and oversight. We actively manage risk through reinsurance, partnering primarily with reinsurers that maintain "A-" or better A.M. Best financial strength ratings, possess a history of strong credit quality or that fully collateralize their recoverables, all of which ensures high-quality recoverable assets and minimizes counterparty risk. We believe our high-quality balance sheet provides the foundation for consistently delivering financial performance and returns.

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. We evaluate the financial condition of our reinsurers and monitor concentration of credit risk arising from our exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, we have received letters of credit from certain reinsurers that are not authorized as reinsurers under U.S. state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of March 31, 2025, 56% were with reinsurers having an A.M. Best rating of "A-" (excellent) or better, and we require reinsurance recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables. The credit valuation allowance was $0.5 million and $0.4 million as of March 31, 2025 and December 31, 2024, respectively.

We cede a significant portion of our insurance business to our unconsolidated collateralized reinsurance sidecar vehicle, Flywheel Re. Flywheel Re is a Cayman Islands special purpose reinsurance company that provides committed multi-year collateralized quota share capacity, capitalized by long-term institutional investors.

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***Reinsurance transactions***

<u>*Loss portfolio transfer:*</u> Effective December 2023, certain of our insurance subsidiaries entered into a loss portfolio transfer reinsurance contract ("LPT"). Under the terms of the LPT, the reinsurance counterparty will reinsure all of our retained loss reserves (subject to certain minor exclusions) on policies written prior to June 2022, subject to a limit of $152.1 million. The terms of the LPT provide coverage on net loss reserves of $122.9 million as of the reference date in consideration for a premium of $136.5 million. The LPT includes an adjustment feature whereby we will receive a return of premium equal to the amount of all aggregate losses below $130.3 million, as determined on December 31, 2029. The provisions of the LPT include limitations on the timing of payments in relation to incurred losses, as well as limits on the extent of losses in relation to total premiums paid, which collectively do not technically qualify as a transfer of significant insurance risk for accounting purposes and therefore requires deposit accounting. As such, at inception, we recorded a deposit asset in Reinsurance recoverables within the consolidated balance sheet equal to the premium consideration paid, less an amount of $6.2 million of premium to be retained by the reinsurer (irrespective of the experience of the contract) that is reported within Other assets.

The overall premium will be held in a trust account to secure the reinsurance counterparty's obligations under the LPT. The funds withheld by us will be credited with interest at a fixed annual rate that will inure to the benefit of the reinsurer. The corresponding gross liability is reported within Funds held under reinsurance.

For the three months ended March 31, 2025 and the year ended December 31, 2024, we reduced the deposit assets by $5.3 million and $47.4 million, respectively, attributed to actual recoveries. The deposit asset reported as of March 31, 2025, is comprised of expected recoveries of $77.6 million, net of accretion, calculated using the interest method.

<u>*Commutation:*</u> In December 2023, we completed a commutation agreement that amended two whole account quota share reinsurance agreements that covered policies written from July 2020 to June 2022. A gain of $4.8 million was recognized on the commutation agreement, representing the excess of the total consideration of $83.6 million net of total liabilities reassumed of $78.8 million. The gain is included in Losses and loss adjustment expenses within our 2023 consolidated statement of operations.

<u>*Endorsements of existing quota share agreements:*</u> In November 2023, we and certain of our reinsurance counterparties agreed to endorsements of our quota share agreements covering treaty years of 2020 and 2021, which increased the contractual limits placed on their share of written premium and resulted in an increase in ceded written premiums of $27.8 million for the year ended December 31, 2023.

**Contractual Obligations and Commitments** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
| ***Payment Due by Period ($ millions)*** | **Total** | **Less than one<br>year** | **1-3 years** | **3-5 years** | **After 5 years** |
|  Senior unsecured debt due 2029<sup>(1)</sup> | $165.5 | $11.1 | $28.0 | $126.4 | $— |
|  Long-term unfunded investment commitments<sup>(2)</sup> | 9.2 | 9.2 |  |  |  |
|  Estimated claims and claim-related commitments<sup>(3)</sup> | 1513.1 | 497.4 | 523.1 | 239.1 | 253.5 |
|  **Total** | $**1687.8** | $**517.7** | $**551.1** | $**365.5** | $**253.5** |

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(1) Amounts presented include estimated interest payments.

(2) We have invested in limited partnership agreements and can be called to fulfill the obligations at any time.

(3) Estimated timing of claim payments are based on historical payment patterns and exclude reinsurance
recoveries. Claims payments do not have a contractual maturity and, as such, the amount and timing of associated cash flows may vary significantly from the amounts presented.

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***Regulated deposits and restricted assets***

Certain companies in the Group are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of both March 31, 2025 and December 31, 2024, which are included in the "Fixed maturity securities available for sale, at fair value" in the consolidated balance sheets.

In addition, we have pledged cash and cash equivalents of $52.7 million, short-term investments of $17.3 million and fixed maturity securities of $33.6 million as of March 31, 2025 in favor of certain ceding companies to collateralize obligations. As of December 31, 2024, we had pledged cash and cash equivalents of $47.3 million, short-term investments of $17.2 million and fixed maturity securities of $33.0 million in favor of certain ceding companies to collateralize obligations.

***Reserves for losses and loss adjustment expenses***

Reserves for losses and LAE represent our best estimate of the ultimate cost of settling reported and unreported claims and related expenses. The estimation of loss and LAE reserves is based on various complex and subjective judgments. Actual losses and settlement expenses paid may deviate, perhaps substantially, from the reserve estimates reflected in our consolidated financial statements. Similarly, the timing for payment of our estimated losses is not fixed and is not determinable on an individual or aggregate basis due to the uncertainty inherent in the process of estimating such payments.

See Note 2 and Note 6 to our condensed consolidated interim financial statements and Note 2 and Note 13 to our consolidated annual financial statements included elsewhere in this prospectus for a discussion of estimates and assumptions related to the reserves for unpaid losses and LAE.

***Reinsurance recoverables***

Reinsurance recoverables on reserves for losses and LAE are reported separately as assets, instead of being netted with the related liabilities, since reinsurance does not discharge us of our liability to policyholders. The method for determining reinsurance recoverables for unpaid losses and LAE involves reviewing actuarial estimates of gross unpaid losses and LAE to determine our ability to cede unpaid losses and loss adjustment expenses under our existing reinsurance contracts.

See Note 7 to our condensed consolidated interim financial statements and Note 8 to our consolidated annual financial statements included elsewhere in this prospectus for a discussion of reinsurance recoverables and payables.

***Debt***

During the third quarter of 2024, we entered into the Credit Agreement (as defined below), which replaced the prior credit agreement among us, the guarantors party thereto, Bank of Montreal, as administrative agent, and the lenders party thereto (the "Prior Credit Agreement"). We amended our syndicated loan agreement related to our senior unsecured debt facility including Euro and U.S. dollar denominated components with an original May 2026 maturity date (the "senior notes").

Under the terms of the Credit Agreement, we refinanced the syndicated loan facility by extending the maturity date of the senior notes to September 2029 and borrowing $51.5 million to repay the Euro component, such that the aggregate outstanding principal balance of the senior notes remained $125 million under a new single U.S. dollar denominated facility. In addition, the credit agreement was amended to add a $50.0 million revolving credit facility (all of which was unutilized and available as of March 31, 2025).

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The senior notes are senior unsecured obligations and include a delayed draw term loan feature that allows us to withdraw predefined amounts of the approved total U.S. Dollar aggregate principal amount. Under the Credit Agreement, we have the option of obtaining additional term loans or increasing the revolving commitments up to an aggregate principal amount of $75.0 million, subject to meeting certain conditions, and only if the applicable incremental lenders agree to provide such additional term loans or revolving commitments.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the applicable interest rate has been reset. The interest rate is subject to a sliding scale based on our consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated on based on a 360-day year of twelve 30-day months. Interest expense for the three months ended March 31, 2025 and 2024 was $2.6 million and $3.0 million, respectively.

Subject to conditions of optional prepayment, we may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts prepaid may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of March 31, 2025, we were in compliance with all such covenants.

See "Description of Certain Indebtedness," Note 9 of our interim consolidated financial statements and Note 14 of our annual consolidated financial statements for further details regarding our debt obligations.

***Capital maintenance agreements***

We have established capital maintenance agreements with our insurance subsidiaries which obligates us to make capital contributions to its subsidiaries to maintain surplus with a prudent buffer above minimum statutory and regulatory capital requirements. These requirements are set by our Board of Directors. During the three months ended March 31, 2025, we made capital contributions of $11.0 million to ANIC and $8.7 million to AIUK.

**Ratings** 

Ratings by independent agencies are an important factor in establishing the competitive position of insurance companies and reinsurance companies and are important to our ability attract Members and third-party capital providers. Rating organizations continually review the financial positions of insurers and reinsurers. These ratings reflect the rating agency's views regarding balance sheet strength, operating performance, business profile and enterprise risk management. It is not an evaluation directed toward the protection of investors or a recommendation to buy, sell or hold our shares. Our insurance and reinsurance operating subsidiaries are assigned financial strength ratings by A.M. Best as follows:

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| | | |
|:---|:---|:---|
|  | **Rating** | **Outlook** |
|  Accelerant Insurance Europe SA | "A-" (Excellent) | Stable |
|  Accelerant Specialty Insurance Company ("ASIC") | "A-" (Excellent) | Stable |
|  Accelerant National Insurance Company ("ANIC") | "A-" (Excellent) | Stable |
|  Accelerant Re (Cayman) Ltd. | "A-" (Excellent) | Stable |
|  Accelerant Insurance UK Limited ("AIUK") | "A-" (Excellent) | Stable |
|  Accelerant Insurance Company of Canada ("AICC") | "A-" (Excellent) | Stable |
|  Accelerant Re I.I. (Puerto Rico) ("ARPR") | "A-" (Excellent) | Stable |

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These ratings reflect A.M. Best's opinion of the ability of Accelerant Holdings and respective subsidiaries to pay claims and are not evaluations directed to security holders. A.M. Best maintains a letter-scale rating system ranging from "A++" (Superior) to "F" (in liquidation). "A–" is the fourth highest of 16 financial strength ratings assigned by A.M. Best, as last updated June 4, 2025. These ratings are subject to periodic review and may be revised downward or revoked at the sole discretion of A.M. Best.

**Off-Balance Sheet Arrangements** 

We do not have any off-balance sheet arrangements, as defined by applicable regulations of the SEC, which are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.

**Critical Accounting Policies and Estimates** 

Our consolidated financial statements are prepared in conformity with U.S. GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on our historical experience and on various other assumptions that we believe are reasonable after weighing up all relevant information. Actual results may differ from those estimates.

The accounting policies listed below involve significant estimates, and therefore are critical in understanding our financial performance and operational results. For additional information, refer to Note 2 to our consolidated annual financial statements included elsewhere in this prospectus.

***Unpaid Loss and Loss Adjustment Expenses***

We record loss reserves for our unpaid loss and LAE, which involves significant judgment and complex estimation processes. It represents management's best estimate of the unpaid portion of ultimate costs, of all reported and unreported loss incurred through the balance sheet date and is based upon the assumption that past developments are an appropriate indicator of future events among other factors. The reserves are based on individual claims, case reserves and other reserves estimates reported, as well as actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses may vary materially from the amounts provided in the consolidated financial statements. These estimates are reviewed regularly and as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in the consolidated statements of operations in the period in which they become known and are accounted for as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

The process of establishing unpaid losses and LAE can be complex and is subject to considerable uncertainty, as it requires the use of informed estimates and judgments based on circumstances known at the date of accrual. These estimates and judgments are based on numerous factors and may be revised as additional experience and other data become available and are reviewed and as new or improved methodologies are developed. The adequacy of the reserves may be impacted by future trends in claims severity, frequency, payment patterns and other factors. These variables are affected by both external and internal events, including but not limited to, changes in the economic cycle, inflation, natural or human-made catastrophes and legislative changes.

The main risks and uncertainties are associated with limited historical data and new and evolving estimation processes. As such, we supplement our analysis using a combination of third-party data provided by Members and industry benchmark data as the basis for the selection of expected reporting patterns. We expect to

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continuously increase the use of our own data and experience as we accumulate such information over time. In addition, we incorporate our estimates of future trends in various factors such as loss frequency and severity in the evaluation process.

We review loss reserves in-depth every six months or more frequently depending on the facts and circumstances, with a high-level actual versus expected ("AvE") analysis done in between the in-depth reviews. During in-depth reviews, all estimates are reviewed and adjusted as our own experience develops and market conditions change. During the high level AvE analysis we make changes for any material developments over the period (e.g., large losses, catastrophic events or significant market changes).

Total IBNR reserves are determined by subtracting payments and case reserves implied from the ultimate loss and LAE estimates. Ultimate loss and LAE are estimated utilizing generally accepted actuarial loss reserving methods. Our reserving methods include the Chain Ladder, Bornheutter-Ferguson and Initial Expected Loss Ratio methods. Reportable catastrophe losses are analyzed and reserved separately using a frequency and severity approach. The underlying premise of the Chain Ladder method is that future claims are best estimated using past development pattern, whereas the Bornheutter-Ferguson method employs a combination of past claims development and prior estimates of ultimate losses based on expected loss ratio. The methods all involve aggregating paid and case-incurred loss data by underwriting year and development month, segmented into Members and products or lines of business as deemed appropriate and material. The ultimate loss selections for each year tend to be based upon the Chain Ladder results for the older years and the Bornheutter-Ferguson method for the most recent years.

Because we have limited data to assess our own claims experience given the recently formed nature of the business, we use industry and peer-group data, in addition to our own data, as a basis for selecting our expected paid and reporting patterns.

Inflation rates in all major economic regions and the imposition (or threatened imposition) of tariffs add to the uncertainty of the future claim cost. Actuarial models base future emergence on historic experience, with adjustments for current trends, and the appropriateness of these assumptions has therefore involved more uncertainty in recent periods. We expect there will be impacts to the timing of loss emergence and ultimate loss ratios for certain underwritten coverages. The industry is experiencing new issues, including a backlog of civil court cases in most states, the extension of certain statutes of limitations and the impact on insureds from a significant reduction in economic activity. Our recorded reserves include consideration of these factors, but legislative, regulatory, or judicial actions could result in loss reserve deficiencies and reduce earnings in future periods.

The two categories of our loss reserves include case reserves and IBNR reserves. Our gross reserves for losses and LAE at March 31, 2025 and December 31, 2024 were $1.51 billion and $1.29 billion, 63% and 60% of which relates to IBNR, respectively. Our reserves for losses and loss adjustment expenses, net of reinsurance, at March 31, 2025 and December 31, 2024 were $246.6 million and $224.9 million, 54% and 52% of which relates to IBNR, respectively.

The following table summarizes our reserves for unpaid losses and loss adjustment expenses, on a gross basis and net of reinsurance, as of March 31, 2025 and December 31, 2024:

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross** | **% of<br>Total** | **Net** | **% of<br>Total** | **Gross** | **% of<br>Total** | **Net** | **% of<br>Total** |
|  Case Reserves | $555.3 | 37% | $113.9 | 46% | $514.4 | 40% | $107.5 | 48% |
|  IBNR | 957.8 | 63% | 132.7 | 54% | 780.0 | 60% | 117.4 | 52% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** | $**1513.1** | **100%** | $**246.6** | **100%** | $**1294.4** | **100%** | $**224.9** | **100%** |

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Case reserves are established for the individual claims that have been reported to us. Based on the information available and the status of the claims, case reserves are established by TPAs, who have the authority of handling

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smaller claims (typically up to $250 thousand) or our claims teams, for large losses, through standard claim handling practices and professional judgment. As mentioned above, the estimates may be refined, and the ultimate value of claims liability may be adjusted either upward or downward as more information becomes available.

In case of catastrophes or other large losses, the additional IBNR in relation to those claims is estimated by the joint work of the claims, portfolio management, and actuarial teams, and those estimates are used in the final estimates provided to the finance team for recognition within our financial statements. Our internal threshold for catastrophe losses is $10 million of gross losses. We have had seven such events since inception: European flooding (July 2021), Storm Arwen (November 2021), Storm Eunice (February 2022) and Hurricane Ian (September 2022), U.S. winter storms (January 2024), Hurricane Helene (September 2024) and California wildfires (January 2025). In aggregate, these events led to approximately $10 million of net incurred losses. While we write insurance products in each of these potentially impacted areas, we also maintain significant reinsurance coverage such that our net exposure is limited. For example, the most recent California wildfires resulted in $40 million of gross losses and only $2 million of net losses. Similarly, for the 2024 and other treaty years, our U.S. property catastrophe excess of loss retention for a modeled gross occurrence is expected to significantly reduce our net exposure to insignificant levels as part of our business model to limit our exposure to insurance risk.

In addition to the assumptions used in our data and reserves methodology, we used the following estimates to determine our unpaid loss and LAE: development patterns where we use Members' experience and/or applicable industry information; inflation assumptions for each class of business and territory; rate changes as provided by Members and underwriting changes as evidence leading to the rate changes; business mix changes for various Members; large loss load calculated from historic average performance or similar class of business; and selected loss ratio that is representative.

**The tables below represent the aggregated impact from potential deviations from our recorded reserve as of March 31, 2025 and December 31, 2024:** 

Sensitivity factors are applied to our most recent underwriting year and we believe these potential changes will not have a material impact on our liquidity. An increase in the gross loss of 3% in the most recent underwriting year would equate to an increase in the net loss and LAE reserve of $8.5 million.

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|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| **Sensitivity**<br> **(in millions)** | **Sensitivity for<br>Ultimate Loss<br>and LAE<br>Sensitivity<br>Factor** | **Net Loss and<br>LAE Reserve** | **Increase/<br>(Decrease) in<br>Net Loss and<br>LAE Reserve** |
|  Increase | +3% | $255.1 | $8.5 |
|  Increase | +2% | 252.2 | 5.6 |
|  Increase | +1% | 249.4 | 2.8 |
|  Actual (Base Case) | 0% | 246.6 |  |
|  Decrease | -1% | 243.8 | (2.8) |
|  Decrease | -2% | 241.0 | (5.6) |
|  Decrease | -3% | 238.1 | (8.5) |

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|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Sensitivity**<br> **(in millions)** | **Sensitivity for<br>Ultimate Loss<br>and LAE<br>Sensitivity<br>Factor** | **Net Loss and<br>LAE Reserve** | **Increase/<br>(Decrease) in<br>Net Loss and<br>LAE Reserve** |
|  Increase | +3% | $230.9 | $6.0 |
|  Increase | +2% | 228.9 | 4.0 |
|  Increase | +1% | 226.9 | 2.0 |
|  Actual (Base Case) | 0% | 224.9 |  |
|  Decrease | -1% | 222.9 | (2.0) |
|  Decrease | -2% | 220.9 | (4.0) |
|  Decrease | -3% | 218.9 | (6.0) |

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***Reinsurance Recoverable on Unpaid Losses***

In our Underwriting segment, we cede a large proportion of our GWP under various reinsurance contracts. These reinsurance agreements transfer portions of the underlying risk of the business that we underwrite and a share of premium to reinsurers, but they do not release or diminish our obligation to pay claims covered by the insurance policies. We are still primarily liable to the insured whether or not the reinsurer is able to meet its contractual obligations.

The quantum of ceded loss recoveries from our reinsurers are subject to uncertainty as our calculation of such amounts rely on similar estimates and methodologies as are used in estimating our gross loss reserves.

Additionally, there is a risk that one or more of our reinsurers may be unwilling or unable to pay their share of reinsurance recoverables. This risk is mitigated by placing our reinsurance with a diverse panel of reinsurers that are all either rated "A-" or better by A.M. Best or provide collateral to us to maximize the probability that reinsurance recoverables will be realized. We regularly monitor the financial condition of our reinsurers and we generally have special termination rights in our reinsurance treaties in the event of deterioration in the reinsurers' credit worthiness, generally if the A.M. Best rating falls below "A-" or there is a reduction in the capital and surplus of the reinsurer of more than 20% of their prior year end capital and surplus. Despite these arrangements, there is a risk that a reduction in one or more reinsurers' ability or willingness to pay our reinsurance recoverables could have a materially negative impact on our liquidity.

***Impacts of Loss Ratio Estimates and Actual Loss Experience on Sliding Scale Commissions Impacting our Ceding Commission Income***

As disclosed in Note 2 of our consolidated annual financial statements included elsewhere in this prospectus we cede a significant portion of our premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period. Certain of our reinsurance arrangements are subject to sliding scale commission amounts pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts.

The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions may vary based on the volume of ceded premium and the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions).

The change in ceding commissions will result in a change to the deferred ceding commission liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the

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extent that the underlying premium has been earned. As such, the sliding scale commissions act as a substantive participation in the underlying loss experience of the underlying insurance contracts.

Our typical reinsurance treaties' commissions vary based on the volume of ceded premium and the ratio of ceded loss to ceded premium. As that ratio decreases, the amount of commission increases. As of March 31, 2025, the commission is 50% of ceded premium at a 40% gross loss ratio and a minimum of 34% of ceded premium at gross loss ratios of 67% and above. The adjustment between the points is largely linear. We expect commissions of 43% of ceded premium at a gross loss ratio of 50%. There were no significant adverse adjustments to reinsurance commissions due to prior year claims experience during the three months ended March 31, 2025.

Our process for calculating changes in ceding commissions from our reinsurers is linked to the results of our actuarial reserving process for loss and loss adjustment expense reserves, which is updated each reporting period. On a quarterly basis, our actuaries produce an actuarial central estimate of the gross and net loss reserves for all contracts bound as of the evaluation date. The calculations also include estimates of loss-sensitive contingent terms such as sliding scale ceding commissions. Calculations are done on a contract-by-contract basis and reflect the most recent premium and loss information available at the evaluation date.

***Valuation Allowance on Deferred Income Taxes***

Deferred tax assets and liabilities result from temporary differences between the amounts recorded in the consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns. We recognize deferred tax assets to the extent we believe it is probable that future profits will be available to utilize these tax benefits. As of March 31, 2025, we had net deferred tax assets of $45.1 million.

A valuation allowance is set up for the portion of the asset that is more likely than not unrealizable, which reduces the total deferred tax asset to only the amount that we expect to realize. This allowance is assessed at each balance sheet date and is based on all available information including significant judgments related to the likely timing and level of forecasted taxable profits based on assumptions about future macroeconomic and Company-specific conditions and the associated future tax planning strategies. We subject the forecasts to stresses of key assumptions and evaluate the effect on tax attribute utilization. In performing our assessment of recoverability, we consider tax laws governing the utilization of net operating losses, capital losses and tax credit carryforwards in each applicable jurisdiction. The tax laws are subject to change, resulting in incremental uncertainty in our assessment of recoverability, along with the future tax planning strategies. If the actual taxable income in future periods differ from our forecast, it could impact our financial position in either a materially positive or a materially negative way. As of March 31, 2025, our valuation allowance was $44.5 million. We intend to evaluate the realizability of our deferred tax asset quarterly through the assessment of the need for such a valuation allowance.

**Election Under the Jumpstart Our Business Startups Act of 2012** 

We currently qualify as an "emerging growth company" as defined in the Jumpstart Our Business Act of 2012, or the JOBS Act. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements that are applicable to other public companies that do not qualify as emerging growth companies. Accordingly, we are provided with the option to adopt new or revised accounting guidance either (i) within the same period as those otherwise applicable to non-emerging growth companies or (ii) within the same time period as private companies.

We have elected to adopt new or revised accounting guidance within the same time period as private companies, unless we determine it is preferable to take advantage of early adoption provisions offered within the applicable guidance. We may take advantage of this provision for up to five years or such earlier time when we are no longer an emerging growth company and, as such, we expect to remain an emerging growth company at least through December 31, 2025. Therefore, our consolidated financial statements may not be comparable to those of companies that comply with new or revised accounting pronouncements as of public company effective dates.

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**Quantitative and Qualitative Disclosures about Market Risk** 

Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in credit spreads, interest rates, equity markets prices, foreign currency exchange rates, and other relevant market rates and prices.

***Credit Risk***

Credit risk is the potential loss resulting from adverse changes in an issuer's ability to repay its debt obligations. We have exposure to credit risk as a holder of fixed-maturity securities. We manage this credit risk through diversification in terms of instruments by issuer, geographic region and related industry. At March 31, 2025 and December 31, 2024, approximately 87% of our fixed maturity investment portfolio was rated "A" or better and 100% was classified as investment-grade.

***Interest Rate Risk***

Interest rate risk is the risk that we will incur economic losses due to adverse changes in interest rates. The primary market risk to the investment portfolio is interest rate risk associated with investments in fixed-maturity securities. Fluctuations in interest rates have a direct effect on the market valuation of these securities. When market interest rates rise, the fair value of our fixed-maturity securities decreases. Conversely, as interest rates fall, the fair value of our fixed-maturity securities increases. We manage this interest rate risk by investing in securities with varied maturity dates and by matching the duration of our investment portfolio to the duration of our loss and LAE reserves. Expressed in years, duration is the weighted average payment period of cash flows, where the weighting is based on the present value of the cash flows. We set duration targets for our fixed-maturity investment portfolios after consideration of the estimated duration of our liabilities and other factors. The effective weighted-average duration of the portfolio was 3.0 years as of March 31, 2025.

We had available for sale fixed-maturity securities with a fair value of $582.7 million and $479.5 million at March 31, 2025 and December 31, 2024, respectively, that were subject to interest rate risk. The table below illustrates the sensitivity of the fair value of our fixed-maturity securities to selected hypothetical changes in interest rates as of March 31, 2025 and December 31, 2024.

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|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Fair Value** | **Estimated Change in<br>Fair Value** | **Fair Value** | **Estimated Change in<br>Fair Value** |
|  200 basis point increase | $547.6 | $(35.1) | $449.8 | $(29.7) |
|  100 basis point increase | 565.1 | (17.6) | 464.6 | (14.9) |
|  No change | 582.7 |  | 479.5 |  |
|  100 basis point decrease | 600.3 | 17.6 | 494.4 | 14.9 |
|  200 basis point decrease | 617.8 | 35.1 | 509.2 | 29.7 |

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Changes in interest rates will have an immediate effect on comprehensive income and stockholders' equity but will not ordinarily have an immediate effect on net income. Actual results may differ from the hypothetical change in market rates assumed in this disclosure. This sensitivity analysis does not reflect the results of any action that we may take to mitigate such hypothetical losses in fair value.

***Equity Risk***

Equity risk represents the potential economic losses due to adverse changes in equity security prices. Our equity securities consist of interests in highly rated, highly liquid, investment funds. We manage equity price risk of our equity portfolio primarily through asset allocation techniques, and fund selection within a given portfolio.

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***Foreign Currency Exchange Risk***

Foreign currency exchange-rate risk is the risk that we will incur losses on a U.S. dollar basis due to adverse changes in foreign currency exchange rates. In the ordinary course of business, we hold non-U.S. dollar denominated assets and liabilities, which are valued using period-end exchange rates. Non-U.S. dollar denominated foreign revenues and expenses are valued using average exchange rates over the period.

The following table summarizes the estimated effects of a hypothetical 10% increase and decrease in the value of the U.S. dollar against select foreign currencies would have had on the carrying value of our net assets as of March 31, 2025 and December 31, 2024:

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|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **10% increase** | **10% decrease** | **10% increase** | **10% decrease** |
|  British Pound to U.S. Dollar | $0.9 | $(0.9) | $1.0 | $(1.0) |
|  Euro to U.S. Dollar | 7.3 | (7.3) | 5.7 | (5.7) |
|  Canadian Dollar to U.S. Dollar | 2.2 | (2.2) | 2.0 | (2.0) |

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**Mission Acquisition** 

On May 1, 2024, Accelerant Option Holdings LLC ("Option Holdings") exercised its call option to acquire all of the equity interests of Mission US for an exercise price of $119 thousand. Subsequently, on May 1, 2024, Accelerant Holdings acquired such equity interests, by merger, and subsequently contributed them to Mission Worldwide Holdings. As consideration, Accelerant Holdings issued 6,938 common shares to Accelerant Holdings LP, which was equal to the value of Mission US. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Company's Class A and Class B convertible preference shares at the time of such investments were made had relied on the inclusion of Mission Underwriters within the Company's results of operations, holders of the Company's Class A and B convertible preference shares received an additional 875 Class A convertible preference shares and 525 Class B convertible preference shares in aggregate, respectively, in each case without further consideration being paid. The total value of the common shares issued to Option Holdings was $7.0 million. Concurrently with Accelerant Holdings' acquisition of Mission US, Accelerant Holdings exercised its call option to acquire all of the equity of Mission Holdings Europe Ltd. ("Mission Europe") for €1.17 thousand, which together with Mission US became wholly-owned subsidiaries of Mission Worldwide Holdings, a subsidiary of Accelerant Holdings.

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**FOUNDERS' LETTER** 

Something had to change. It was 2018, in Stockholm, and we had just watched a talented underwriter at an MGA, a real expert in his field, struggle to underwrite a risk because of incredibly slow transaction times, short term contracts, poor data, lagging technology, and emotionally-driven decision making – the components of an adversarial specialty insurance value chain. It was an experience familiar to us through our decades-long careers at MGAs, brokers, insurers, and reinsurers.

Our long and varied experience at many points in the value chain allowed us to see what needed to change. We knew that in the insurance industry a massive amount of premium is exchanged every year – with every premium dollar passing through a complex network of parties and transactions. The complexity inhibited efficiency resulting in a market that was costly for both producers and capital providers. Information that could support higher-quality underwriting and pricing was lost in a long and complex chain of transactions.

We began talking to industry players we respected, asking for their ideas, and inviting them to join us. Before long we had a core team of experienced men and women who were determined to revolutionize the industry. With this team of experts, we launched Accelerant.

Accelerant was founded on a few core beliefs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technology was and continues to bring increasing specialization to the insurance industry's value chain
enabling a new type of entrepreneurial underwriter to succeed amid the incumbents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A modern data and technology platform, aimed at delivering analytics and insights across the value chain
through a market network, would transform the industry – and defy its history of myopia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capturing and leveraging data that historically got lost in the chain would enable underwriters to improve the
quality of their portfolios leading to better results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An organization built on excellence and a foundation of accountable experts would be able to produce results
that were orders of magnitude faster for buyers and sellers in the insurance marketplace than the status quo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A culture that inspired maximum effort and collaboration every day would engender growth, creativity, and
success for all stakeholders in the marketplace.

Six years in, we are more certain now than ever of our core beliefs and their potential to transform the insurance industry. We built Accelerant as a Risk Exchange, providing services to specialty insurance underwriters – MGAs – and the risk capital supporting their business, collecting fees for those services. We anticipated a surge in specialty markets as insureds demanded products more tailored to their exposures. We expected a proliferation of MGAs gaining significant market share, as the best underwriters escape legacy carriers to be entrepreneurs. We believed risk capital would arrive in ways no longer hamstrung by regulation and inertia. We anticipated institutional investors' desire to enter the specialty market with their enormous size and focus on pure economics. And we designed Accelerant as a platform where these specialists could connect and transfer risk. Though we anticipated many things and hoped that our vision would deliver much-needed improvements to our industry, we could not have imagined how much our prescience would resonate.

Uniquely, the Accelerant team includes three key pillars of expertise. Technology and product professionals, seasoned in the SaaS world, are building our Risk Exchange platform, adding speed and transparency not seen elsewhere in the industry. Our colleagues with capital markets experience design structures for institutional investors to gain access to our specialty portfolio and attractive, uncorrelated financial returns in a unique way. Our colleagues from the insurance industry have unusually diverse sets of experience, representing all aspects of the legacy value chain – from retail broker to reinsurer. Although each expert in each of the pillars has his or her specialty, no one pillar is siloed, rather all three pillars work collaboratively. The free interchange of ideas following from the collaborative interaction among the varied disciplines not previously assembled under a single roof has enabled Accelerant to build a truly novel and disruptive platform.

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The three pillars combine in our Risk Exchange and together they have powered significant growth to date, from both specialty underwriting Members and risk capital partners and, we expect, will do so well into the future. As of March 31, 2025, we serve 232 specialty underwriters across 22 countries, with a hand-selected cadre of specialists committed to delivering best-in-class solutions in their niche markets. Their ingenuity and entrepreneurial spirit are the impetus behind the success of the Risk Exchange. Our bench strength is unusually deep for a company of our youth, with a very flat structure of experienced experts who have the authority – and responsibility – to meet our Members' needs. The success of our Members and the attractive portfolios we source, manage, and monitor as part of the Risk Exchange has drawn 96 risk capital partners to our platform as of March 31, 2025.

Over the past six years, we've channeled our combination of expertise, audacity, and vision to methodically put the pieces in place to build our market network. With the Risk Exchange and our core beliefs as our bedrock, we hope to drive the insurance industry to do better and be better: Making it possible to exchange risk simply, efficiently, and fairly, so that it works better, for everyone.

We hope that you share our excitement for what is to come and that you will join us on our journey.

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| ![LOGO](g543111g01m28.jpg)  | ![LOGO](g543111g02m28.jpg)  | ![LOGO](g543111g03m28.jpg)  |

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Jeff Radke, Chris Lee-Smith and Frank O'Neill

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**BUSINESS** 

**Our Vision** 

To become the preeminent specialty insurance marketplace connecting underwriters and risk capital in a transparent and modern way.

**Company Overview** 

We operate a data-driven risk exchange that connects selected specialty insurance underwriters (the "Sellers" on our platform) with risk capital partners (the "Buyers" on our platform). Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

The Accelerant Risk Exchange simplifies the traditional insurance value chain, which is fragmented, costly, and inflexible. Legacy technology, excessive intermediation, and misaligned incentives cause data leakage, high costs, and wasted resources for participants. Our technology powered platform addresses these issues by connecting specialty underwriters, typically MGAs (our "Members"), and risk capital partners, including insurers, reinsurers, and institutional investors (our "risk capital partners"). On the "supply side" of our Risk Exchange, we deliver a full service offering to our Members that includes insights and analytics, distribution management, operational resources, and the commitment of stable underwriting capacity. Our offerings free our Members to focus on growing their businesses through their core expertise of profitable underwriting. On the "demand side" of our Risk Exchange, we offer risk capital partners an attractive, validated, and diversified portfolio of specialty insurance premium that may otherwise be difficult to access elsewhere. Risk capital partners who provide capacity through our Risk Exchange pay us recurring fees to source, manage, and monitor risks on their behalf. The Risk Exchange portfolio's strong returns to date promote confidence from these risk capital partners in the quality of the portfolio's risk exposure, leading to better pricing and faster execution for our Members, which, in turn, empowers our Members to focus on profitable underwriting performance and growth.

By harnessing our proprietary technology, access to data, and industry experience, we believe we have created the future marketplace of the specialty insurance industry. As of March 31, 2025, we had 232 Members and 96 risk capital partners on our platform and we have grown Exchange Written Premium at a 217% compounded annual growth rate since inception. As we mature and continue to scale our business, we expect our annual growth rate to moderate.

Our Risk Exchange is designed to be simpler, easier, and faster than legacy models for transferring risk. Inaccurate and incomplete underlying policy data plagues the traditional insurance value chain and prevents underwriters from deriving meaningful and actionable information. Our purpose-built Risk Exchange is underpinned by proprietary technology that ingests Member policy data and third-party data from disparate and complex data environments and pools it into a single, digestible dataset with over 21 thousand unique attributes and over 79 million rows of data as of March 31, 2025. This information enables automated portfolio monitoring and delivers actionable insights to underwriters and capital providers across the Risk Exchange, helping us drive lower-than-average loss ratios compared to the broader industry, optimized pricing, and accelerated growth.

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![LOGO](g543111g06g06.jpg)

We believe that our Members' success makes us the destination of choice for the industry's best specialty underwriters. We deliver distribution management and operational, actuarial, regulatory, and stable capital support to our Members, and our holistic offering promotes our Members' growth and better underwriting performance. On average, our Members grow gross premiums written through the Risk Exchange by 52% in their first two years, or at an annual rate of 39% on a weighted-average basis at low-to-mid 50-percentage loss ratios, on average. For the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, our gross loss ratio was 53%, 54% and 51%, respectively. We received an independent third-party Net Promoter Score of 89 (out of 100) from our Members (based on a survey result), which we believe will attract a robust pipeline of potential future Members.

We focus on MGAs with strong underwriting track records and specialty underwriting expertise who predominately underwrite low-limit, low-hazard, specialty commercial risks. We conduct a thorough diligence process when selecting new Members for our Risk Exchange. We carefully construct the Risk Exchange portfolio to maximize diversification and predictability. Our Members had a weighted-average gross written loss ratio of approximately 50% for business written through the Risk Exchange in underwriting year 2024, and the majority of Members' weighted-average gross loss ratios for underwriting year 2024 are within eight points of the weighted average, creating a low-volatility portfolio. Since our inception, we have declined approximately 90% of prospective new Members (representing self-reported premiums of $18 billion in aggregate) that we believe did not fit within our model, reflecting our selective invitation to only the best MGAs to join our Risk Exchange.

Our commitment to selecting the best Members, optimizing Member performance and providing full data transparency has attracted a growing and diverse set of high-quality risk capital partners. We started with two risk capital partners in 2019, growing the number to 28 in 2020, 46 in 2021, 60 in 2022, 66 in 2023, and 96 in 2024. These risk capital partners include insurance and reinsurance companies, as well as institutional investors contributing capital to Flywheel Re, a reinsurance sidecar, who are attracted to the uncorrelated, attractive return profile of the risk that they can access through the Risk Exchange. Reinsurance companies and institutional investors in Flywheel Re access the Risk Exchange by reinsuring business from Accelerant Underwriting. Starting in 2023, five third-party insurance companies joined our platform and began accessing the Risk Exchange directly. In 2024, eight more third-party insurance companies joined, and over time we believe that the majority of our Risk Exchange premium will be written by new and existing third-party insurance company partners. The depth and breadth of risk capital partners supports our operational flexibility and our growing Member base. It also allows us to maintain a capital light model.

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The Risk Exchange is our fee-based core business. At opposite ends of the Risk Exchange, we operate our MGA Operations and Underwriting segments, further enhancing our value proposition. Our MGA Operations segment includes our MGA incubator, Mission Underwriters, which has supported the formation of 31 MGAs. Mission Underwriters expands our addressable market to include underwriters presently employed by traditional insurance companies looking to form their own MGAs. In addition to Mission Members, the MGA Operations segment also captures the financial contributions of 16 Members in which we own an equity ownership interest (our "Owned Members"). Our selective equity participation allows us to make attractive investments in, and further align with, Members, enabling us to capture some of the value we help create. In nearly every instance (with only two exceptions), the MGAs in which we have invested were already Members at the time of our investment. On average, our investment in a Member has taken place nine months after the MGA became a Member. In total, we own an equity ownership interest, either directly or through Mission, in 47 of our 232 Members, and we expect our Owned Members and Mission Members in aggregate to remain a minority portion of our total Members. For the trailing twelve months ended March 31, 2025, these Members contributed $1.03 billion, in Exchange Written Premium, or 29% of our total Exchange Written Premium for that period.

Our Underwriting segment captures the portion of the Risk Exchange portfolio written by Accelerant Underwriting and the corresponding underwriting profit realized on retained business. We have historically targeted to reinsure 90% of premiums written and reinsured by Accelerant Underwriting through the Risk Exchange to risk capital partners, with Accelerant retaining approximately 10%. We expect this retained portion of Risk Exchange premium in the aggregate to decrease over time. We view our Underwriting segment as a strategic asset and source of operational flexibility that we use to broaden the risk capital pool, align incentives with current and prospective risk capital partners and expedite the onboarding of new Members and the launch of new products.

As of December 31, 2019, we had 12 Members, writing 60 products across seven countries, and two risk capital partners. As of March 31, 2025, we have grown our platform to 232 Members, writing over 500 specialty insurance products across 22 countries, on behalf of 96 risk capital partners. Since the launch of our platform, only one Member has elected to leave the Risk Exchange based on mutual agreement. In all, we have experienced less than a 1% churn rate in the period from inception of the Risk Exchange through March 31, 2025. We have grown total Exchange Written Premium to $3.5 billion for the trailing twelve months ended March 31, 2025, while achieving a gross loss ratio of 53% for the three months ended March 31, 2025, 54% for 2024 and 51% for 2023. We have grown our revenues by 57% from $219 million for the year ended December 31, 2022 to $344 million for the year ended December 31, 2023, by 75% from $344 million for the year ended December 31, 2023 to $603 million for the year ended December 31, 2024, and by 39% from $128 million for the three months ended March 31, 2024 to $178 million for the three months ended March 31, 2025. Our Organic Revenue Growth Rate over the same periods was 57%, 75%, and 38%, respectively. In 2022 and 2023, we incurred net losses of $96 million and $64 million, respectively, reflecting increased investment into our business. For the year ended December 31, 2024, we reported net income of $23 million. We reported net income of $8 million and $2 million for the three months ended March 31, 2025 and 2024, respectively. Our Adjusted EBITDA was $128 million for the trailing twelve months ended March 31, 2025. We generated positive Adjusted EBITDA in 2024 and 2023 of $113 million and $36 million, respectively, which followed Adjusted EBITDA losses of $39 million in 2022. For reconciliations of total revenue to Organic Revenue Growth Rate and net income (loss) to Adjusted EBITDA, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP financial measures."

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![LOGO](g543111g01k10.jpg)

*Our History* 

Accelerant was founded in 2018 by three industry veterans with over 100 years of collective experience in the insurance and reinsurance industries. They experienced first-hand the structural inefficiencies and fragmentation of the insurance market. There were too many intermediaries operating across siloed entities, resulting in a lack of customer prioritization and excess costs. Antiquated technology, poor data quality, and insufficient transparency has led to information asymmetries, inaccurate pricing, misaligned incentives, and inconsistent capital availability. Our founders were determined to build a platform to solve these issues. By democratizing data and aligning incentives in a single platform, Accelerant strives to deliver better outcomes for all Risk Exchange participants.

In late 2018, we launched operations in Europe, followed quickly by the formation of our first insurance company in 2019. We believed that controlling our own insurance company would kickstart our marketplace initially and provide our Members with the support and service to empower them to focus on profitably growing their businesses. We established relationships with risk capital partners that valued our disciplined approach to sourcing, managing, and monitoring specialty risk. They indirectly provided capacity through reinsurance to support our Members' growing premium base while we maintained our capital-efficient, distribution-focused business model. Simultaneously, we built portfolio analytics and automated monitoring to augment the quality of the portfolio and the underwriting insights that support it. By the end of 2020, we had expanded our footprint into the United States.

Recognizing the significant opportunity to attract underwriting teams out of traditional insurance companies, where underwriters had limited upside, our affiliates launched Mission Underwriters in 2021. Mission Underwriters, our MGA incubator, provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters seeking to launch their own MGAs. By the end of 2021, there were five Mission Members that wrote $28 million of GWP in 2021 and grew to 31 Mission Members writing $623 million of GWP for the trailing twelve months ended March 31, 2025. With respect to technology, we made significant enhancements in 2021 to our data ingestion engine, allowing us to ingest Member data from disparate and complex data environments and to augment it with third-party data.

In 2022, we formed Flywheel Re, a reinsurance sidecar, to facilitate the participation of institutional investors in the Risk Exchange portfolio, offering them specialty insurance risk and returns that are uncorrelated with broader financial markets. We believe Flywheel Re incorporates a structure that provides multi-year underwriting capacity to support the Risk Exchange platform portfolio as it grows. We expect Flywheel Re's future cash flows and investor returns to be dependent on the loss performance of the underlying portfolio of specialty insurance business the vehicle reinsures and, therefore, relatively uncorrelated with movements or trends in the broader financial markets. While the initial Flywheel Re reinsurance treaty expired in June 2025, we raised additional capital from new and existing institutional investors, extending and upsizing Flywheel Re in June 2025.

In 2023, we further evolved the Risk Exchange by allowing third-party insurance companies to join and access the Risk Exchange directly, as well as benefit from our profitable, thoughtfully sourced, managed, and monitored

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specialty risk portfolio. For the trailing twelve months ended March 31, 2025, Risk Exchange Insurers contributed 18% of total Exchange Written Premium, reflecting strong demand for our unique value proposition. If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period.

As part of our strategy to engage with Risk Exchange Insurers, we offer quota share reinsurance contracts to these partners or help them establish reinsurance relationships with other risk capital partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for Risk Exchange Insurers to write and retain an increasing percentage of our Exchange Written Premium and the capital requirements of our enterprise to further decline over time.

**Our Revenue Model** 

We generate revenue through three separate operating segments: Exchange Services, MGA Operations, and Underwriting.

Our Exchange Services segment generates revenue through a fixed-percentage, volume-based fee that our risk capital partners pay to us for sourcing, managing, and monitoring the portfolio of business written by Members.

Our MGA Operations segment includes both Mission Underwriters' consolidated results and those of Owned Members in which we have an equity ownership interest. We generate commission revenue from those Owned and Mission Members that we consolidate and equity income from those Owned Members in which we have a non-controlling equity ownership interest. For the years ended December 31, 2024, 2023 and 2022, Net Revenue Retention for our MGA Operations segment was 153%, 155%, and 237%, respectively.

Our Underwriting segment captures the net commissions from reinsurers and the net underwriting result from retained business that is written and assumed by Accelerant Underwriting companies. It includes revenue through net earned premiums, ceding commission income (representing the excess ceding commissions from reinsurers over DAC amortized over the insurance policy term), and net investment income. Net earned premium represents the earned proportion of our premiums that we retain in our statutory entities. As Accelerant cedes a significant portion of its premiums written to third-party reinsurance companies, including Flywheel Re, this generates ceding commissions that are offset against the acquisition costs related to the insurance contracts subject to the reinsurance. The excess of the ceding commissions compared to the acquisition costs form a significant source of revenue that is amortized over the related insurance policy terms.

**Our Market Opportunity** 

We operate within the approximately $2 trillion global P&C insurance market. In Accelerant's core geographies, the United States, Europe, Australia, and Canada, total estimated P&C premiums represented $1.4 trillion in 2022. Today, Accelerant is focused on the specialty P&C insurance market, which includes risks that are either more complex or niche than standard P&C risks and thus require unique underwriting expertise. We estimate that the specialty P&C insurance market represented approximately $252 billion of annual premium in these core geographies in 2022.

Specialty underwriters are the "supply side" of risk in our core market. MGAs are growing underwriting market share given their relative outperformance in innovation and product design. According to Conning, the MGA market in the U.S. alone was estimated to represent over $100 billion of premiums in 2023, having grown by more than 100% from $50 billion in 2018. As the specialty insurance market has continued to mature, MGAs have captured increasingly greater market share in specific underwriting niches because they can better attract top underwriting talent and have more flexible, modern technology. Insurance companies that provide coverage

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to the ultimate insureds, and the institutional investors and reinsurers that provide reinsurance to those insurance companies, serve as the "demand side" of the market. Our Risk Exchange sits in the middle, serving both the "supply-side" and the "demand-side" of this market. We also directly participate on the "supply side" through our MGA Operations segment and on the "demand side" through our Underwriting segment.

As the industry continues to grow, the specialty insurance market is experiencing multiple structural shifts which we believe will continue to drive opportunities for our Risk Exchange:

*Key "Supply-Side" Drivers:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increasing Number of Specialty Underwriters Looking to Start MGAs:*** Specialty underwriters are
often stifled at traditional insurance companies, burdened by outdated technology and misaligned incentives. They are increasingly looking to join or form new MGAs. This has been reinforced by the broader acknowledgement by market participants and
insurance regulators of the important role that MGAs play in the value chain. Talented underwriters seek entrepreneurial environments with autonomous decision making, better equity upside, and modern technology. The Accelerant solution provides
existing MGAs with flexibility and greater control over their businesses. We deliver distribution management and operational, actuarial, regulatory, and stable capital support. We do this for both established MGAs, as well as underwriters looking to
form new MGAs through Mission Underwriters, which supplies start-up financing, in addition to turnkey, end-to-end technology and operational support. The accelerated formation of new MGAs continues to grow the market opportunity, producing a broader
potential Member base for Accelerant and gives participants on our Risk Exchange access to previously unavailable market niches.  **** ** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Increased Need for Specialty Insurance Products:*** A variety of broad-based, fundamental shifts

AI, machine learning, and data analytics. Historically, the required technological and data capabilities could only be assembled within monolithic insurance companies. However, yesterday's mainframe now operates on every underwriter's
smartphone. By breaking down cost barriers, an increasingly distributed technology architecture has paved the way for entrepreneurial underwriters outside traditional insurance companies to introduce new products and processes to the market.

*Key "Demand-Side" Drivers:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Heightened Demand for Low-Volatility Risk:*** Historically,
attractive specialty, small-to-medium-sized enterprise ("SME") insurance risk has been retained by a small number of
Primary Insurance Companies, and therefore, inaccessible to many insurers, reinsurers, and institutional investors. This risk portfolio typically has a lower-volatility loss signature as compared to the P&C industry at large, given the smaller
size and complexity of the insureds' business models. Accelerant makes this otherwise difficult-to-access portfolio of specialty risk available to a broad range of
risk capital partners. Furthermore, we construct our portfolio to have low exposure to natural catastrophe risk. Concerns around changes in climate and challenges with evaluating these risks have driven risk capital partners to search for
lower-volatility risks to insure, such as those written through the Risk Exchange. Risk capital partners consistently identify the diversifying impact of our low-volatility portfolio as a primary driver for
joining the Risk Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Modern Technology Promotes Cost-Effective Access to SME Policies:*** **  Legacy insurance
companies find accessing the SME market to be uneconomical, as their cost-to-service is high relative to premium volumes. Outdated processes result in onerously high
expense ratios that make it uneconomical to service smaller dollar policies, despite the attractive low loss ratios these policies often produce. We historically have a four percentage point general and administrative expense advantage versus our

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estimate of the market. Our proprietary technology removes these performance barriers through superior data collection, ingestion, and analytics. Our technology helps underwriters make better-informed underwriting and strategic decisions. Our Risk Exchange provides cost-effective access to this attractive segment for legacy insurers and reinsurers. We expect this to continue to attract more Risk Exchange Insurers directly onto the platform and increase the portion of the Risk Exchange premiums written by Risk Exchange Insurers relative to Accelerant-owned insurance companies. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Alternative Capital Increasingly Desires Non-Financially Correlated Returns:*** There is growing demand from institutional investors for the type of risk in our portfolio. Institutional investors value the returns associated with underwriting that exhibits a low correlation with financial market
conditions. In addition, the low volatility of the Risk Exchange portfolio further enhances this diversification. Historically, these institutional investors were limited to investing in short-term, narrow property catastrophe-focused opportunities.
Accelerant meets investor demand for opportunities to participate more broadly across the specialty P&C insurance market. Flywheel Re delivers superior diversification in a capital-efficient structure that allows investors to access attractive
returns across a large number of insurance products and across multiple underwriting periods.

**The Accelerant Advantage** 

Accelerant operates a data-driven risk exchange connecting specialty insurance underwriters with risk capital partners. Our Risk Exchange reduces information asymmetries and operational barriers present in the traditional insurance value chain by leveraging proprietary technology to share actionable high-fidelity data and insights with platform participants.

In a market characterized by multiple layers of intermediation, complexity, and ineffective technology and use of data, our competitive advantage is supported by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Data-Driven Insights and Technology:*** The traditional insurance value chain is beset by
inaccurate and incomplete data on underlying policies. Underwriters are unable to derive meaningful and actionable information that supports underwriting performance and risk capital partners lack high confidence in risk exposure and performance.
Based on our Members' experience, we estimate that a small fraction of the policyholder data that is collected at the start of the insurance value chain is typically shared with the end capital provider. We believe this resulting information
asymmetry leads to a market with artificially high prices and depressed volumes. We built Accelerant to solve these problems.

Our proprietary ingestion tools allow us to capture insurance data from disparate and complex data environments. We collect Member exposure data from both structured and unstructured environments and combine it into a single dataset that, as of March 31, 2025, consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from over one thousand unique data mappings. On average, in the first quarter of 2025, we ingested 8.9 million additional rows per month into our growing dataset. This high-fidelity, high-quality data is combined with third-party data and made available to both Members and risk capital partners in an actionable form. We believe that our digital capabilities and workflow tools will lead to better data, better analytics, and reduced effort at scale.

Our proprietary technology allows underwriters to select risks with the benefit of platform-driven insights and for our risk capital partners to gain transparency into the portfolio of risks they are assuming.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Member-Centric Culture:*** Accelerant is organized around its Members, seamlessly providing them
with the services they require to succeed, including distribution management and operational, actuarial, regulatory, and stable capital support. Key to our service model is the assignment of a dedicated expert support team to each Member, including
relationship managers, claims adjusters, actuaries, underwriters, and data scientists. The legacy insurance industry tends to organize around product silos, connecting

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multiple disjointed nodes across several organizations. This results in a highly fragmented value chain which introduces high costs, large data loss, and structural fragility. We work with Members to launch new product offerings in approximately 14 weeks, compared to what we believe is the industry standard of six to 12 months. We provide our Members with a dedicated team of experts, which includes underwriting and data managers, alongside regular consultations to drive performance enhancement. We have protocols in place to ensure that we do not compete with our Members. Such protocols center around bespoke product uniqueness for each Member, transparency of Member competition and non-favoritism, and channel definition. This creates a dynamic that further differentiates us from the legacy market. There may be potential Members that are less interested in becoming a Member because of our investment in other Members that are perceived to be competitors, but based on our experience, we believe the likelihood of this is low. Our Member-centric culture and the breadth of our capabilities allow us to attract and retain what we believe to be the industry's best underwriters in their respective specialties. <br>

We provide Members with long-term capital and operational support so that they can plan for the longer term and focus on their core businesses. We believe taking a longer-term view promotes faster, more profitable and more durable growth for Members. In exchange for a five-year capacity commitment from us, our Members provide us with exclusivity agreements on a rolling, five-year basis. We provide Members with data and analytics, portfolio management, assistance with product expansion, and widening distribution networks. Our commitment to supporting our Members' growth is evidenced by our Net Revenue Retention of 157% for the trailing twelve months ended March 31, 2025 and third-party generated NPS score of 89 in 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Disciplined Approach to Sourcing, Managing, and Monitoring Risk:*** Our methodology of carefully
sourcing, managing, and monitoring risk enables us to develop our portfolio of specialty risk. We source prospective new Members through our industry network and market referrals and make selections based on their loss ratio track records. Our
current focus is predominantly on commercial, low-limit SME lines of business. Our existing portfolio of products consists of commercial combined, property owners and professional indemnity products together
with other coverage products. Each of our Members typically specializes in a particular commercial niche (e.g., Pacific Northwestern bowling alleys or Norwegian cold storage facilities). We and they aim to provide the full suite of insurance
products the SME owner would need or seek to obtain in each niche. We take a disciplined approach to managing and monitoring risk in collaboration with Members that combines our data insights with advice from insurance industry veterans. We meet
with each Member monthly to review their portfolio performance, and our technology stack enables us to derive data-driven insights that uncover hidden opportunities and potential vulnerabilities in a Member's portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Diverse, High-Quality Risk Capital Partners:*** Maintaining long-term relationships with our risk
capital partners is a key component of our business and revenue model. Whether they participate on the Risk Exchange directly or through reinsurance, we have partnered with a broad group of high-quality risk capital partners who are attracted to the
Risk Exchange by the portfolio's consistent and profitable underwriting performance. We have grown the number of risk capital partners on our platform from two in 2019 to 28 in 2020 to 96 as of March 31, 2025. Our existing risk capital
partners include blue chip insurance and reinsurance companies with substantial balance sheets that have the capacity to support the pace of our growth and could singularly support our entire portfolio today. Continued strong demand from risk
capital is an important contributing factor to our robust Member pipeline. Additionally, we intend to continue to increase the portion of the Risk Exchange premiums written directly and retained by Risk Exchange Insurers and reduce the portion
written by Accelerant Underwriting, which will shift even more of our revenue model to being fee-based.

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**Our Growth Strategy** 

Since inception, we have grown Exchange Written Premium at a 217% compounded annual growth rate. We believe we will continue to maintain strong revenue growth based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Growing Existing Members' Businesses*:** Our Members are the key to our success –
when they succeed, we succeed. We believe our existing Members will continue to expand as they capture greater market share, introduce new products, and enter new regions. Accelerant's exclusivity arrangements and rights of first refusal on new
product launches promote new product growth on the Risk Exchange. Accelerant's long-term five-year capacity commitment allows our Members to plan for the future with confidence, focusing on new opportunities, rather than sourcing underwriting
capacity. These factors have led to our Members growing premiums written on the Risk Exchange by over 39% annually on a weighted-average basis. Additionally, not all products written by our Members are written through the Risk Exchange. In 2023, in
Europe and the U.S., approximately 59% and 58%, respectively, of Members used both the Risk Exchange and other third-party capital providers to secure their capacity. We believe this presents a significant opportunity for the Risk Exchange to
increase its wallet share and capture even more of those Members' premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Attracting New Members:*** Adding new Members to our platform has been a significant source of
growth historically, and we expect this to continue in the future. We began with three Members in 2018 and had 232 as of March 31, 2025. Our expert client-facing service model, proprietary technology offering, and long-term capacity attract
prospective Members to our Risk Exchange. We had over 300 additional MGAs in our evaluation pipeline as of March 31, 2025, which collectively reported $2.5 billion in annual premiums. We expect our comprehensive diligence process when
selecting members as well as our growing Member base and increasingly diversified portfolio to drive further interest from additional risk capital partners and, in turn, reinforce the Risk Exchange's value proposition to existing and
prospective Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding Our Product Portfolio:*** Our portfolio is focused on low-volatility, low-severity SME commercial risks. This market segment within our focal lines of business and geographies is large, estimated at $117 billion of
premium for 2022, giving us considerable room to expand. We intend to prudently expand into selected additional lines of business, bringing our estimated serviceable market to $252 billion. As we continue to scale, we believe there are
specialty underwriters that excel in larger-market commercial, commercial auto, workers' compensation, and specialty personal lines whom we can attract to our Risk Exchange while maintaining the same high-quality portfolio. We will always
endeavor to attract the highest quality underwriting talent to our Member base, notwithstanding the niche or line of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Geographic Expansion:*** As of March 31, 2025, 40% of our total Members were in Europe,
including the UK, 50% in the U.S., and 10% in Canada. We intend to grow with our existing product portfolio by adding additional countries to our operation. Our geographic expansions to date have been successful and we believe our operating
footprint and globally integrated technology platform position us well to capitalize on opportunities in new countries. In the near-term, we believe that Australia and continued expansion in Canada represent attractive growth opportunities given
their combination of high MGA penetration and similar structural challenges present in their legacy insurance marketplaces. We are always evaluating other global expansion opportunities as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Expanding to New Member Types*:** To date, our Members have been MGAs primarily focused on
specialty insurance. We have been successful in addressing these clients' needs, and we believe there are other sizable Member types which have similar structural challenges that would benefit from a relationship with us. In particular, captive
insurance companies constitute a $176 billion global market and face similar challenges as our existing specialty Members. Captives represent entities engaged in self-insurance, either standalone (e.g., single business) or as a group of related
insureds forming a jointly owned insurance vehicle. Captives have identified inflexible and unreliable insurers, poor data transparency, high expenses, and slow response times as key challenges to their operations – each of

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which our platform could address. From our perspective, the aligned incentives inherent in the captive model result in more attractive risk than other markets. As of March 31, 2025, we had nine Members engaging in captive business.

Along with the opportunity to provide retail brokers access to the suite of products offered by our Members, we believe we can expand our existing partnerships with retail P&C insurance brokers that have specific areas of expertise and could enhance their economics by establishing a joint venture MGA with Accelerant. Our Mission Underwriters business will help facilitate this venture, which will begin with the establishment of a new MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Deepening and Broadening Relationships with Risk Capital Partners:*** We have diverse, stable, and
high-quality risk capital relationships, including 13 Risk Exchange Insurers operating directly on the Risk Exchange, 79 third-party reinsurance companies, and four institutional investors contributing capital to Flywheel Re as of March 31,
2025. Our existing risk capital partners maintain substantial balance sheets and have the capacity to support our current and anticipated future growth. While we do not need to add any other risk capital partners to keep pace with our growth, we
expect to continue to expand the number of risk capital partnerships in response to the growing demand for our value proposition, which will drive increased competition for low-volatility, low-severity risk, providing enhanced terms and more favorable economics for the Risk Exchange. Writing more premium directly with Risk Exchange Insurers will shift even more of our revenue model to being fee-based.

**Our Technology and Data Platform** 

Our proprietary, purpose-built technology and data platform is a critical part of executing our vision for the Risk Exchange, which is to provide greater transparency and shared information across the entire value chain.

Underpinning the Risk Exchange's value proposition for our Members, are our data and technology capabilities that we believe are unmatched in the industry. We ingest and combine data from a variety of sources (e.g., policy and claims systems), augment it with third-party data, and analyze that information for the benefit of all Risk Exchange participants. Accelerant captures all available data on risk exposures and claims – we do not have to leave data behind because of technological limitations. By ingesting structured and unstructured data, we can preserve data that is often lost across the insurance value chain. As of March 31, 2025, our dataset consisted of over 21 thousand unique attributes across more than 79 million rows of proprietary data from one thousand unique data mappings, and we have ingested an average of 8.9 million additional rows per month in 2025. Once ingested, data is validated, transformed, and governed into robust and tailored underwriting intelligence that is available to Members and risk capital partners alike. We use several third-party technologies and services, including LLMs, to support this data ingestion, our analytics, and the Risk Exchange as a whole. As a result, our Risk Exchange lessens information asymmetries, enabling trust between Buyers and Sellers on our platform.

Our Members and risk capital partners derive significant value from our data and analytics platform and their specific needs and usage patterns continuously evolve. We seek to regularly enhance the delivery and functionality of our data and analytical capabilities utilizing workflow tools and our cloud-native, digital platform that offers Risk Exchange participants a single, secure place to operate. Examples of our data and analytics advantage include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Accelerant Risk Indexing:** We generate a proprietary risk score on individual risks to improve selection
and pricing for select Members today. By introducing third-party data in the form of distance to the nearest pub and area crime incidents, we helped a Member improve their gross loss ratio by 5.3% when back testing the Member's data, which is a
significant improvement to the underwriting profit for our risk capital partners. We expect to compound these data-driven inputs continuously to make our portfolio stronger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **Claims Recovery Model:** We employ an LLM to analyze our Accelerant-sanitized data and help identify the
claims with the highest likelihood for subrogation (i.e., recovery) in the United Kingdom.

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Thus far, we have improved our subrogation rate from 0.5% of claims to approximately 2% of claims, leading to an estimated 1% improvement in gross loss ratio, assuming a portfolio gross loss ratio of 50%, which is a significant improvement for our risk capital partners. As our model continues to develop and train, we aim to further reduce subrogation rates and derive other actionable insights. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) **Underwriting Referrals:** Our platform centralizes underwriting referrals, which we believe is more
efficient than email-based referrals and also leads to faster decision-making. We receive over 4,300 referrals from our Members or would-be Members each month. We believe referrals with a decision within 48 hours are necessary for 90% of the
commercial market, so speed and consistency of response are highly valuable. We are told by Members that our platform saves them approximately 30 minutes per referral, which when combined with our unique selling proposition of a 69-day average
Member onboarding cycle can drive growth and opportunity.

We have assembled a team of over 150 highly skilled engineers, data scientists, product managers and designers whose collective expertise spans a broad range of technical areas. As of March 31, 2025, these team members represented 32% of the Accelerant workforce. We continue to make significant investments in the development of our data, analytics, and AI.

**Our Operating Segments** 

We operate our business across three operating segments – Exchange Services, which is the core offering of Accelerant, MGA Operations, and Underwriting.

***Exchange Services***

The Exchange Services segment is our core business, our Risk Exchange – the Accelerant technology, data ingestion, and agency operations that serve the needs of our Members and risk capital partners. We derive revenue in this segment from contractually fixed fees based on premium volume, paid by risk capital partners for sourcing, monitoring, and managing their risk portfolios.

The Risk Exchange benefits from a powerful network effect. We believe that as more Members join Accelerant's platform, more experience data is collected and ingested, driving better underwriting intelligence, industry-leading loss ratios, more scale and more efficiency. We believe this will continue to drive more interest from institutional investors, insurance companies, and reinsurers who will find the Risk Exchange to be a highly differentiated and low friction way to access a very attractive portfolio of business. We believe that the increase in capital attracted to the Risk Exchange will provide more optionality and capacity stability, drawing more specialty underwriters to the Risk Exchange and further amplifying the network effect.

For the trailing twelve months ended March 31, 2025, the Risk Exchange placed $3.5 billion of Exchange Written Premium, representing 73% period-over-period growth compared to the trailing twelve months ended March 31, 2024. We expect this segment will become an increasing majority of the earnings reported within our consolidated financial statements.

***MGA Operations***

Our MGA Operations segment captures the economics of both Mission Members and Owned Members in which Accelerant has a minority equity ownership interest, reflecting such earnings as equity method income, or in which Accelerant has a controlling stake, reflecting such earnings fully within our consolidated results. Mission Underwriters represents the largest component of this segment. Mission Underwriters provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters looking to launch their own MGAs. We own the majority of every MGA that Mission Underwriters helps to create, with meaningful equity shared with management teams based on the performance of their MGA. Mission Underwriters allows Accelerant to directly capitalize on the industry trend of specialized underwriting talent leaving traditional insurance companies to start their own independent platforms. Mission Underwriters expands our addressable market.

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MGA Operations also provides us with the opportunity to make attractive, long-term investments in existing Members, driving alignment of interest, as well as enabling Accelerant to participate in the value the Risk Exchange creates for MGAs.

Owned Members that were already Members prior to investment in Accelerant have grown premium with Accelerant by 57% on an average basis for the comparable months in the 12-months post-acquisition. To date, we have invested in 16 MGAs (which we call "Owned Members"), most of the time acquiring a minority stake, twelve months after the MGA has been a Member on our platform, with a call option to allow us to take a majority stake over time.

The MGA Operations segment included activity from 47 Members who collectively produced GWP of $1.03 billion for the trailing twelve months ended March 31, 2025 (the 16 Owned Members within this group produced $407 million of GWP).

***Underwriting***

Our Underwriting segment contains all revenue and expenses associated with Accelerant Underwriting. We view our owned insurers and reinsurer as strategic assets and sources of operating flexibility. As we began operations, our owned insurance companies promoted alignment with our risk capital partners by demonstrating our steadfast focus on sourcing the most attractive specialty risk. Our reinsurer and institutional investor risk capital partners access premium on the Risk Exchange through reinsurance from Accelerant Underwriting and from the quota share arrangements Accelerant Re Cayman writes with our Risk Exchange Insurers. For the trailing twelve months ended March 31, 2025, 92% of premiums written by Accelerant Underwriting were ultimately reinsured to third-party risk capital partners. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

For the three months ended March 31, 2025, the Underwriting segment had retained net written premiums and net earned premiums of $72.4 million and $63.0 million, respectively. In the future, as third-party risk capital partners increasingly directly access the Risk Exchange, we expect revenue in the Underwriting segment to grow more slowly than in the Risk Exchange segment.

**Our Members *("Supply Side" of our Risk Exchange)*** 

Our Members are experienced specialty underwriters that produce attractive loss ratios. The Members with whom we partner are typically MGAs with $10 to $40 million in premium, a headcount of 15 to 30 employees, and an average tenure of 15 years, operating independently of insurance companies, with delegated authority to underwrite risk on an insurance company's behalf. We select Members that have an impressive track record of underwriting low-volatility, low-limit, low-hazard risks. The quality of the portfolio written by our Members is highlighted by our gross loss ratio of 53%, 54%, and 51% for the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, respectively. Through our rigorous vetting process, we review prospective Members across a range of areas including underwriting, actuarial, compliance, claims, technology, and key talent. Typical criteria we use in screening for new prospective Members include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3-to-5-year underwriting track record, either as a standalone MGA or as part of larger organization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Predominantly commercial, low-limit SME risk focus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Underwriter-led culture with focus on maintaining profitable business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Typical annual premium volumes of $3 million to $100 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Robust data capture capabilities that can be shared with our Risk Exchange

When our Members join the Risk Exchange, we onboard them typically within 14 weeks, and sometimes in as little as two weeks. The speed to market we provide is reinforced by our expert service model and technology capabilities.

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Our commitment to our Members and the quality of the Risk Exchange portfolio continues long after a Member is onboarded. We are in weekly contact with our Members to understand their primary needs and identify action plans quickly. We regularly conduct formal reviews (usually monthly) on each Member's performance and strategies. These reviews are informed by the high-fidelity data we ingest and transform into actionable insights. Our Members receive a five-year capacity commitment which is renewed annually. This multi-year capacity commitment enables them to focus on underwriting performance and to scale efficiently. As part of the capacity commitment, the Risk Exchange becomes the exclusive network of capacity providers for the Member for the product being written through the Risk Exchange and Accelerant receives a right of first refusal with respect to any new product that they may launch. We retain the right to cancel any Member capacity commitment if we view underwriting performance to be deteriorating without the prospect of remediation action to be able to improve performance. To date, the Company has terminated its agreement with 12 Members—seven after they proved unable to scale new products, four because of poor underwriting performance or breached authority, and one that was sold to a third party. Three additional Members have merged into another Member.

Our Members' weighted average annual growth rate of premiums written on the Risk Exchange of 39% per year, which includes both growth of existing products on our platform and our Members launching new products on our platform, underscores the accelerating growth of Members when they work with Accelerant.

![LOGO](g543111g03g03.jpg)

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Our Member base is highly diversified across both geographic regions and the products and classes of business they write. Our largest member accounted for 8% of our Exchange Written Premium for the trailing twelve months ended March 31, 2025.

![LOGO](g543111g03k12.jpg)

(1) Excludes Mission Members.

The above Member information is as of March 31, 2025, and the above premium information is for the trailing twelve months ended March 31, 2025.

**Member Case Studies** 

We believe these case studies are reflective of the value proposition of our platform to all our Members and have included them here to demonstrate how our Risk Exchange generates value for Members. When we onboard new Members, we expect them to be self-sustaining businesses, but we seek to enhance their performance through our platform, network, and expert service model.

*Member A* 

Member A, a UK-based MGA specializing in high-net-worth households, among other markets, joined Accelerant as a Member in early 2020.

In 2021, in the course of our meetings with the Member, our data analytics platform identified signs of performance deterioration in a number of products translating to increasing loss ratios. The platform further calculated expected claims by product. The analytics, together with the expert underwriters at the Member and at Accelerant, led us to identify the coverages presenting the highest risks, calculate expected claims, and ultimately determine that certain policies were underpriced.

We developed a remediation plan that included exiting some poor-performing products, redesigning the coverage provided in other products where our analytics indicated this was required, and taking targeted rate actions in other products, leveraging our tools to design pricing changes to retain the best insureds and avoid the worst. We reviewed the progress against this plan through regular check-ins with the Member and our ongoing data oversight.

This Member's loss ratio has shown significant improvement, declining from over 100% for underwriting year 2020 to 49.6% for underwriting year 2024.

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*Member B* 

Member B, a U.S.-based MGA joined as a Member in January 2021. At that time, Member B was writing approximately $10 million in GWP through a single product focused on a specific type of agricultural risk.

Member B was evaluating growth opportunities to diversify its portfolio. With our help, Member B introduced two additional products in its underwriting portfolio. Facilitated by our data analytics, Member B also engaged in targeted rate change, property exposure management, and claims management that increased portfolio profitability. Within our Risk Exchange Member community, Member B has been actively collaborating with other Members on best practices for distribution, underwriting, and claims management.

Within two years of joining the platform, Member B nearly doubled its annual premiums (consistent with other Members who joined during a similar time period) and considerably reduced its loss ratio (to a greater extent than other Members who joined during a similar time period).

**Our Risk Capital Partners *("Demand Side" of our Risk Exchange)*** 

Premium generated from Members is centrally managed by our Risk Exchange and placed with a diverse stable of high-quality risk capital partners or Accelerant Underwriting. Our risk capital partners include 13 Risk Exchange insurance companies, 79 third-party reinsurers, and four institutional investors contributing capital to Flywheel Re as of March 31, 2025.

The majority of the Risk Exchange's business that is placed with our reinsurers and institutional investor partners is written directly by Accelerant-owned insurance companies within the U.S., Canada and Europe. The risk is then reinsured, save for a small retention, to Accelerant Re Cayman, our Cayman-incorporated reinsurance company. Reinsurers and institutional investors access the business pooled at Accelerant Re Cayman via quota share, excess of loss, and stop-loss reinsurance arrangements. In 2022, capital from institutional investors was raised to establish Flywheel Re and support business assumed by Flywheel Re during a multi-year risk period ending in June 2025. The reinsurance treaty we entered into with Flywheel Re at its inception was for an initial three-year term, expiring in June 2025. Additional capital was raised from institutional investors in June 2025 to support business assumed by Flywheel Re during a multi-year risk period scheduled to end in March 2028. Flywheel Re is a special purpose reinsurance entity that participates in the Risk Exchange portfolio on a multi-year basis. We expect Flywheel Re to become a larger part of our risk capital offering as this source of risk capital adds diversification, predictability, and stability to the "demand side" of our platform. The participation of institutional investors and reinsurers also diversifies our sources of risk capital and introduces competitive tension that regulates the cost of capital. Our reinsurer and institutional investor risk capital partners comprise highly rated, third-party reinsurers, the significant majority holding an "A-" or better rating from A.M. Best or acting on a collateralized basis, and are sufficiently capitalized to support our planned growth over the years, subject to their appetite. Our largest reinsurance relationship represented 14% of Exchange Written Premium for the three months ended March 31, 2025.

The balance of the Risk Exchange's business is written by third-party insurance companies, in which we do not have an equity stake or any form of ownership and which access the Risk Exchange directly and authorize Accelerant agencies and brokers to source, manage, and monitor the risk. Risk Exchange Insurers that join the Accelerant Risk Exchange can select the business they write based on product and geography. We do not have an equity stake or any form of ownership interest in any of our risk capital partners, including Flywheel Re, but one of our Risk Exchange Insurers, Hadron (an insurer newly formed in 2023), is sponsored by our equity sponsor, Altamont Capital. See "Certain Relationships and Related-Party Transactions—Hadron." We actively manage the portfolios of the Risk Exchange Insurers to ensure both their own portfolios and those across the platform remain well-balanced from a relative volatility and expected profit perspective. Through March 31, 2025, 13 third-party insurance companies have directly joined the Risk Exchange and contributed 19%, 16%, and 10% of Exchange Written Premium for the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023,

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respectively. If all of our new and existing Risk Exchange Insurers had been participating on the Risk Exchange for the trailing twelve months ended March 31, 2025, then those Risk Exchange Insurers would have written 30% of our Exchange Written Premium over that period with the balance contributed by Accelerant Underwriting.

As part of our strategy to engage with risk capital partners, we offer quota share reinsurance contracts to these partners. Risk Exchange Insurers will often reinsure a significant portion of the acquired policies while gaining experience with the Risk Exchange. Our target is for premiums written and retained by Risk Exchange Insurers to represent a significant portion of the overall Exchange Written Premiums over the next several years and the capital requirements of our enterprise to decline.

For the trailing twelve months ended March 31, 2025, our Exchange Premium written by risk capital type was as follows:

![LOGO](g543111g00p05.jpg)

Risk Exchange Insurers may seek our help in securing reinsurance capacity given the breadth of our relationships. In these instances, we can help them establish reinsurance relationships with other risk capital partners as well as reinsure an agreed-upon portion of premium at Accelerant Underwriting. We maintain a capital-efficient Underwriting segment, with 92% of premium written by Accelerant Underwriting during the trailing twelve months ended March 31, 2025 reinsured to risk capital partners via quota share and excess of loss arrangements. Third-party reinsurers and institutional investors reinsured 69% and 23% of Accelerant GWP, respectively, during the trailing twelve months ended March 31, 2025. For the trailing twelve months ended March 31, 2025, Accelerant-Retained Exchange Premium represented 8% of Exchange Written Premium.

To bolster the risk profile of the Risk Exchange portfolio, we buy inuring excess of loss protection from third-party reinsurers to mitigate the impact of significant loss events. We secure this as additional volatility protection across the entire portfolio, enhancing the value and predictability of our portfolio to risk capital partners.

**Risk Management** 

The Company maintains an enterprise risk management framework to address existing as well as emerging risks that could impact us, and our performance. The framework:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is embedded in both the organizational structure and strategic oversight process, supported by appropriate
internal control policies and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is supported by information systems that appropriately capture underwriting, investment, and operational data
and provide relevant, accurate, and timely information to the applicable business functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has incorporated techniques necessary to identify, measure, respond to, monitor, and report, on an individual
and aggregate level, all material risks;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provides for periodic reviews of the operating environment to ensure material risks are assessed and
monitored, and appropriate actions are taken to manage exposures and adverse developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• specifies objectives, risk appetite and risk tolerance levels, and appropriate delegation of oversight,
reporting, and operating responsibilities across all functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provides for reporting systems that are appropriate to the Company's business activities taking into
consideration any outsourcing of responsibilities and safeguarding of assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• documents all significant policies and procedures associated with the framework.

**Claims** 

We have experienced claims teams, consisting of 39 in-house claims professionals with cross-jurisdictional experience. Claims are primarily handled by TPAs, with claims authorization up to $250 thousand per claim (as adjusted for applicable currency). Claims in excess of authorized levels involve oversight from our claims professionals. TPAs are selected by the Risk Exchange with input from the Member and based on the TPA's specific insurance expertise in the product type as well as the TPA firm's ability and willingness to transfer claims data. This is unusual in the specialty market and disqualifies some TPAs from handling Risk Exchange business. We make claims data and case-specific actions available to our Members and risk capital partners, enabling them to quickly understand and respond to claims and market trends, which ultimately results in efficient claims management and overall portfolio performance.

**Competition** 

The specialty insurance industry consists of many markets and sub-markets around the world, each with distinct products, services, and regulatory considerations. It is fragmented by layers of intermediation and served by a broad range of incumbents tackling only small portions of the specialty insurance value chain.

We believe our competition includes a broad range of business types, addressing only one piece of our value proposition rather than delivering a holistic solution similar to ours. Incumbents serving specialty underwriters today include the Lloyd's market, local insurers, and fronting companies. We believe that traditional insurance companies' and industry participants' cost structures, approaches to compliance issues, and transactional approach towards MGAs combine to deter the potential success of MGAs. Incumbents also tend to move slowly in onboarding MGAs, to be less focused on delivering service and support, and may look for opportunities to quickly replace MGAs with their own direct distribution. Many fronting companies often have short-lived, brittle, and single-program reinsurance relationships that they require MGAs to source themselves. We believe that very few of these incumbents provide the data transparency or tools that fuel an MGA's success.

Existing and newer industry participants may attempt to replicate our business model, but we believe that the competitive moat around Accelerant remains very wide.

Traditional insurance companies and industry participants are organized around product silos and their technology is typically hampered by legacy systems which are not easily replaced due to regulatory requirements. Traditional insurers tend to have distribution channels that compete directly with MGAs, and that they are unwilling to solely focus on MGAs. Traditional reinsurers also have large balance sheets burdened by significant loss reserves. These companies rely on underwriting income today to earn a return on the capital required to support these loss reserves, making it unlikely they would share a large portion of their stable and profitable premium with other risk capital partners.

Fronting companies generally do not have the technological resources or the expertise required to monitor the business they allow others to write on their behalf. The fronting business model is generally low-cost, providing only the bare essential regulatory reporting capabilities to the transaction, generally requiring the

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underwriters to arrange their own program-specific reinsurance. We believe a significant shift in business model would be required for fronting companies to provide the breadth of services that we provide to participants on the Risk Exchange.

We believe technology-first or "insurtech" companies have also struggled to be successful in our market. While superior technology is an important capability to be successful, these companies often struggle without a team of insurance industry experts to manage underwriting results, regulators and rating agencies.

Brokers and other intermediaries generally also lack experience with underwriting, regulators and rating agencies. Additionally, they have not generally made investments in technology that allow them to understand the exposures of the business they intermediate, and their focus has been more on sales-generating data.

Altogether we believe we have created a differentiated specialty insurance platform due to factors including but not limited to our data and technology capability, regulatory barriers, rating agency requirements, and capacity access.

**Intellectual Property** 

We rely on a combination of copyright, trademark, trade dress and trade secret laws in the U.S. and other jurisdictions, as well as confidentiality procedures and contractual restrictions, to establish and protect our intellectual property and proprietary rights. These laws, procedures, and restrictions provide only limited protection.

We have registered "Accelerant" and the logo design for Accelerant, "Mission Underwriters" and the logo design for Mission Underwriters, and numerous of our other brand names and logos as trademarks in the U.S. and other jurisdictions. We have also registered numerous internet domain names related to our business. We also rely on common-law trademark protection to protect other types of our intellectual property.

We enter into agreements with our employees, contractors, clients, partners and other parties with whom we do business to limit access to and disclosure of our proprietary information. We cannot assure you that the steps we have taken will be sufficient or effective to prevent the unauthorized access, use, copying or the reverse engineering of our proprietary information, including by third parties who may use our proprietary information to develop products and services that compete with ours. Moreover, others may independently develop products or services that are competitive with ours or that infringe on, misappropriate or otherwise violate our intellectual property and proprietary rights, and policing the unauthorized use of our intellectual property and proprietary rights can be difficult. The enforcement of our intellectual property and proprietary rights also depends on any legal actions we may bring against any such parties being successful, but these actions are costly, time-consuming and may not be successful, even when our rights have been infringed, misappropriated or otherwise violated.

Furthermore, effective copyright, trademark, trade dress and trade secret protection may not be available in every country in which our products are available, as the laws of some countries do not protect intellectual property and proprietary rights to as great an extent as the laws of the U.S. In addition, the legal standards relating to the validity, enforceability and scope of protection of intellectual property and proprietary rights are uncertain and still evolving.

Companies in the insurance industry may own large numbers of copyrights, trademarks and other intellectual property and proprietary rights, and these companies and entities have and may in the future request license agreements, threaten litigation or file suit against us based on allegations of infringement, misappropriation or other violations of their intellectual property and proprietary rights.

**Information Security** 

We face external threats to our information technology systems and data, including the possibility of system failure, attempts to steal our customer data, ransomware, phishing and other cyberattacks. We designed our

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technology infrastructure to function through disruptions, including significant disruptions, and replicate our data in real time to a third-party cloud disaster recovery site for use in the event of a major system failure. We also back-up our data (immutable) daily for system restoration if needed. Additional actions we take to prevent disruptions to our systems and data include: actively monitoring Cybersecurity and Infrastructure Security Agency's cybersecurity directives, taking immediate action on any vulnerability identified in a directive; continuous vulnerability scans on all network attached devices, at all locations, with patching applied whenever needed; leverage context based authentication and authorization methods; requiring two-factor authentication for access to any of our systems; conducting regular human risk management activities including training simulated phishing and communications; implementing endpoint detection agents for threat detection and response; performing tabletop scenarios to practice responses to breaches involving our cybersecurity insurance partners and retained security consultants; and performing annual penetration testing. We regularly review our security breach posture and regularly implement updated processes, best practices and tools.

**Product and Feature Development** 

We aim to continuously improve our platforms and to develop new features for our Risk Exchange participants. Our product development philosophy is centered on continuous innovation in creating products that are designed to place our users, their businesses and the interactions with us at the core of the product experience.

***Digital Platform***

Our platform is a single, secure place for our Risk Exchange participants to operate. Risk Exchange participants will leverage the digital platform to increase their productivity and drive business results via portfolio insights, analytical and workflow tools. Members also have access to a virtual community through our platform to drive network effects across the ecosystem of Risk Exchange participants. In select instances, the virtual community has created cross-sell opportunities amongst Members. Through the offerings of the virtual community, Members have already been able to achieve tangible economic benefits from the relationships they have cultivated within our network.

***Data, Analytics & AI***

Our Data platform is designed to capture and ingest data from a variety of sources from Member bordereaux files to third-party data and other source systems via API. Incoming data is validated, transformed, and governed before being leveraged by our SaaS platform where Members and Risk Exchange Insurers can consume analytics and insights. Members have access to consolidated, easy to consume portfolio dashboards that show the overall performance of their book of business across GWP versus plan, retention, rate change, claims analysis and loss emergence. Members are able to drill into details of the summary metrics to understand performance against plan over time using the high-quality data that we have captured and cleansed. In addition, Members can build and manage custom reports by selecting and filtering on data fields that are most relevant to their business.

***Architecture***

Legacy technology creates challenges for insurers and MGAs, who are increasingly looking for modern solutions as the industry shifts to a cloud-based model. Our platform was built from the ground up to take advantage of the cloud and modern data technologies. Accelerant's Data and digital platforms are all deployed on Amazon Web Services public cloud infrastructure in one region and three availability zones. Our microservice architecture allows for flexible scaling and rapid development as we evolve our architecture.

***Research and Development***

Our research and development organization is responsible for the design, development, testing, and delivery of new technologies, features, integrations, and improvements of our platform. It is also responsible for operating

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and scaling our platform, including the underlying public cloud infrastructure. Our research and development organization consists of teams specializing in software engineering, product management, product design, data engineering and machine learning engineering. We intend to continue to invest in our research and development capabilities to expand our platform.

**Employees and Culture** 

Our culture is the foundation of everything we do. Our employees are our greatest asset, and we strive to foster a productive, cross-border working environment that embodies our core values. We firmly believe in transparency, teamwork, sharing individual and team successes, and building a resilient, entrepreneurial, and productive workforce of the future.

**At Accelerant, we are:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Member-centric

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A team of experts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fast and Wise

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Aggressively transparent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Building for the future

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Innovative and flexible

**We believe:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In putting authority and accountability as close to the customer as possible

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The only success is shared success

**We commit to:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assume positive intent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maximum sustainable effort. Every day.

Our remote-first working environment enables us to attract and engage top industry talent not only in our core geographies – the U.S., the UK, Europe, and Canada – but also on a global stage. We are committed to cultivating and preserving a diverse and inclusive workforce that reflects the cultures and communities of our global footprint. As of March 31, 2025, we have 490 Accelerant Exchange Services, Underwriting and Corporate employees around the world, and an additional 245 Mission employees. We also engage temporary employees and contractors directly or through third-party vendors and agencies.

We are conscious that in a remote working environment, effective and transparent communication is a business imperative. Every week, our founders host global "All Hands" meetings virtually to share key business updates, successes, and initiatives and to welcome new hires. At the department level, teams host similar meetings on a regular basis.

Our key differentiators are not only our talent and expertise, but also the creativity and execution we deliver on behalf of our Members and risk capital partners. Our method of attracting and retaining the best people is matched only by our entrepreneurial spirit and passion for excellence. This is made possible by our colleagues feeling empowered and involved, as demonstrated by our high employee retention and engagement. In our 2022, 2023, and 2024 employee surveys, completed by 184, 238, and 369 of our employees, respectively, employees reported an average satisfaction rate of 85%.

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Lastly, every employee has a financial stake in our success. In keeping with our value of "the only success is shared success," employees that have been with the organization for a minimum period are expected to have an interest in our equity performance.

**Facilities** 

We currently lease small office spaces in certain locations including Atlanta, New York City, Colorado Springs, Bermuda, Grand Cayman, Brussels, Dublin, London and Malta, including a lease with a co-working company providing access to multiple locations across the U.S. Substantially all of our employees work remotely. We maintain our corporate headquarters in the Cayman Islands. As we expand, we believe suitable additional or substitute space will be leased as and when needed.

**Legal Proceedings** 

Other than in the ordinary course of our business operations, we are not currently party to any civil or government investigation. We do not expect that the ultimate outcome of any of the currently ongoing legal proceedings, individually or collectively, would have a material adverse effect on our business, financial condition, results of operations, or prospects. However, the results of litigation and arbitration are inherently unpredictable, and the possibility exists that the ultimate resolution of matters to which we are or could become subject could result in a material adverse effect on our business, financial condition, results of operations or prospects.

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**REGULATION** 

**Insurance Regulation** 

<u>United States Regulation</u> 

*Insurance Regulation in General* 

We are regulated by insurance regulatory authorities in the states and countries in which we conduct insurance-related business activities. In the U.S., authority for the regulation, supervision and administration of the business of insurance in each state is generally delegated to a state insurance commissioner who oversees a regulatory body responsible for the supervision of the business of insurance. In addition, the NAIC, comprised of the insurance commissioners of each U.S. jurisdiction, develops or amends model statutes and regulations that, in turn, most states adopt.

In general, such insurance laws and regulations are designed to protect the interests of policyholders, consumers, and claimants rather than shareholders or other investors. State regulatory authorities generally have broad administrative power relating to, among other matters, setting capital and surplus requirements, licensing of insurers and insurance producers, review and approval of product forms and rates, establishing standards for reserve adequacy, statutory accounting methods, statutory financial reports, regulating certain transactions with affiliates, and prescribing types and amounts of investments.

The U.S. state-based insurance regulatory system is in a constant state of change, as state governmental agencies and legislatures adapt to market and political circumstances. In recent years, the state insurance regulatory framework has come under increased federal scrutiny, and some state legislatures have considered or enacted laws that alter and, in many cases, increase, state authority to regulate insurance companies and insurance holding company systems. Further, the NAIC and some state insurance regulators are re-examining existing laws and regulations specifically focusing on issues relating to the solvency of insurance companies, interpretations of existing laws and the development of new laws. Although the federal government does not directly regulate the business of insurance, federal initiatives often affect the insurance industry in a variety of ways. In addition, the FIO was established within the U.S. Department of the Treasury by the Dodd-Frank Act in July 2010. The FIO monitors all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system, although the FIO has no express regulatory authority over insurance companies or other insurance industry participants.

*Required Licensing* 

Our business activities are subject to licensing requirements and extensive regulation under the laws of the various states and countries in which we operate. Regulatory authorities in the states or countries in which our operating subsidiaries conduct business may require individual or company licensing to act as insurers, producers, brokers, agents, TPAs, MGAs, reinsurance intermediaries, or adjusters.

Under the laws of most states in the United States, regulatory authorities have relatively broad discretion with respect to granting, renewing, and revoking insurer, producer, broker, and agent licenses to transact business in the state or country. The operating terms may vary according to the licensing requirements of the particular state, which may require that a firm operate in that jurisdiction through a local corporation. Our subsidiaries must comply with laws and regulations of the jurisdictions in which they do business. These laws and regulations are enforced by federal and state agencies in the United States.

All insurance is written through licensed agents and brokers. In jurisdictions in which we operate on a surplus lines basis, surplus lines brokers are generally required to certify that a certain number of licensed admitted insurers had been offered and declined to write a particular risk prior to placing that risk with us or that the coverage is otherwise unavailable from an admitted carrier.

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Accelerant Holdings is the ultimate parent company for three insurance company subsidiaries located in the United States. ASIC is domiciled in the state of Arkansas and operates on a surplus lines basis; ANIC is domiciled as an admitted carrier in the State of Delaware to transact certain lines of P&C; and Accelerant Re I.I. is domiciled in Puerto Rico as an international insurance company and is authorized to transact property and casualty reinsurance in Puerto Rico. Several states impose heightened regulation on non-domestic insurers that write a significant portion of the insurers' premium in that state. When a foreign insurer meets the specified threshold, these states consider the insurer to be "commercially domiciled," triggering that heightened regulation. All of Accelerant's insurance carrier subsidiaries' licenses are in good standing, and, pursuant to applicable state and national laws and regulations, will continue in force unless otherwise suspended, revoked or otherwise terminated, subject to certain conditions.

ANIC currently operates on an admitted basis in all fifty states and the District of Columbia and must maintain an insurance license in each state in which it transacts the business of insurance. ASIC currently operates on a surplus lines basis in all fifty states and the District of Columbia. While ASIC does not have to apply for and maintain a license in those states (with the exception of its domiciliary state of Arkansas), it is subject to maintaining eligibility standards or approval under each particular state's surplus lines laws to be included as an approved surplus lines carrier. In states in which ASIC operates on a surplus line basis, it has freedom from rate and form filing requirements for the majority of its business. This means that ASIC can implement changes to policy forms, underwriting guidelines, or rates for a product on an immediate basis without regulatory approval. Accelerant Re I.I. will reinsure U.S. risks, including Puerto Rican risk, as well as international risks.

AUM is the full-service U.S. program management affiliate of Accelerant. AUM is a MGU domiciled in the state of Georgia and provides a full suite of data-driven, underwriting-led program management services to multiple Risk Exchange Insurers, including ASIC and ANIC. AUM provides the Risk Exchange Insurers with extensive platform services, such as due diligence and onboarding, actuarial services, product development support, underwriting management, claims management, data analytics, regulatory compliance support, and enterprise risk management support. See "Business—Our Business—MGA Operations."

AUM receives delegated binding authority from the Risk Exchange Insurers to serve as the MGU for their portfolio programs pursuant to Binding Authority Agreements. Through the Binding Authority Agreements, the portfolio programs, platform services, and each party's roles and responsibilities are fully detailed.

Typically, AUM further delegates its binding authority to its sub-agent Members, which includes our affiliated sub-agent, Mission Underwriting Managers, LLC (MUM), and other sub-agents in which Accelerant may own a majority or minority interest. These Members administer various insurance programs on behalf of AUM and Risk Exchange Insurers in accordance with AUM's specific direction in addition to policies and procedures outlined in the AUM's sub-agent contract(s).

AUM, MUM, or other sub-agents could be subject to regulation under state MGA laws and regulations. Regulation as an MGA under various state laws can be triggered by providing certain services to Risk Exchange Insurers and/or providing such services with respect to a material percentage of the Risk Exchange Insurers premium volume.

*Policy Form and Premium Rate Regulation* 

All states regulate in some manner insurance policy forms and premium rates used by admitted companies. This form of regulation is most prevalent for personal lines such as private passenger automobile and homeowners, but also extends to various forms of commercial insurance. In most cases, form and rate regulation requires an insurer to file any new or revised policy forms and rates prior to their use in the market. In many cases, the form or rate cannot be used until after it has been approved by the state. This process can be time consuming in some states and for some lines of insurance.

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*Managing General Agent Act* 

Some of our business activities are subject to regulation under state MGA laws which require licensure or registration of agents that manage all or part of an insurer's business operations and produce and underwrite a certain amount of the insurer's business and either adjust or pay a certain amount of the insurer's claims or negotiate reinsurance on behalf of an insurer. Such regulations dictate that the acts of an MGA are considered to be the acts of the insurer on whose behalf it is acting, and therefore, an MGA may be subject to regulatory examination as if it were the insurer. Further, such regulations impose requirements on the terms that must be included in contracts between an insurer and its MGA.

*Excess and Surplus Lines Compliance* 

The E&S market generally provides insurance for businesses that are unable to obtain coverage from admitted insurance carriers because of their high or complex risk profile or the unique nature or size of the risk. The surplus lines transaction is facilitated through a licensed and regulated surplus lines broker. It is the licensed surplus lines broker that is responsible for:

(i) electing an eligible surplus lines insurer;

(ii) reporting the surplus lines transaction to insurance regulators;

(iii) remitting the premium tax due on the transaction to state tax authorities; and

(iv) assuring compliance with all the requirements of the surplus lines codes.

State surplus lines laws, or laws pertaining to non-admitted insurance business, require that surplus lines brokers comply with diligent search/exempt commercial purchaser laws and affidavit/document filing requirements, as well as requiring the collection and paying of any taxes, stamping fees, assessment fees, and other applicable charges on such business. Surplus lines brokers are often subject to special licensing, surplus lines tax, and/or due diligence requirements by the home state of the insured. Fines for failing to comply with these surplus lines requirements, specifically for failing to comply with the surplus lines licensing or due diligence requirements, vary by state but can range to several hundred thousand dollars.

*Fiduciary Funds* 

Insurance authorities in the United States have also enacted laws and regulations governing the investment of funds which are held in a fiduciary capacity for others. These laws and regulations generally require the segregation of these fiduciary funds and limit the types of permissible investments.

*Broker Compensation* 

Some states permit insurance agents to charge policy fees, while other states prohibit this practice. In recent years, several states considered new legislation or regulations regarding the compensation of brokers by carriers. The proposals ranged in nature from new disclosure requirements to new duties on insurance agents and brokers in dealing with clients.

*Insurance Holding Company Regulation* 

We operate as an insurance holding company system and are subject to the insurance holding company laws of Arkansas, Delaware and Puerto Rico. These states' laws require that each insurance company in the holding company system must register with the respective department of insurance and furnish information concerning the operations of companies within the holding company system that may materially affect the operations, management or financial condition of the insurers within the system that are domiciled in that state. These laws also provide that all transactions among members of a holding company system must be fair and reasonable.

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Transactions between insurance subsidiaries and their parents and affiliates generally must be disclosed to the state regulators, and notice to or prior approval from the department of insurance generally is required for any material or extraordinary transaction.

*Changes of Control* 

Before a person can acquire control of a U.S. domestic insurance insurer, prior written approval must be obtained from the insurance commissioner of the state where the insurer is domiciled, or the acquiror must make a disclaimer of control filing with the department of insurance for such state and obtain approval thereon. Prior to granting approval of an application to acquire control of a domestic insurer, the domiciliary state insurance commissioner will consider a number of factors, including the financial strength of the proposed acquiror, the acquiror's plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control.

Generally, state insurance statutes provide that control over a domestic insurer is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the outstanding voting securities of the domestic insurer. This statutory presumption of control may be rebutted by showing that control does not in fact exist. The state regulators, however, may find that "control" exists in circumstances in which a person owns or controls less than 10 percent of the voting securities of the domestic insurer. See "Risk Factors—Our principal shareholders have substantial influence over our company. Their interests may not be aligned with the interests of our other shareholders, and they could prevent or cause a change of control or other transactions."

*Restrictions on Paying Dividends* 

We are a holding company with no business operations of our own. Consequently, our ability to pay dividends to shareholders and meet our debt payment obligations is largely dependent on dividends and other distributions from our insurance carrier subsidiaries. Applicable state insurance laws restrict the ability of our insurance carrier subsidiaries to declare stockholder dividends. Applicable state insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus. Dividend payments are further limited to that part of policyholder surplus which is derived from net profits on an insurer's business. Insurance regulators have broad powers to prevent reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. State insurance regulatory authorities that have jurisdiction over the payment of dividends by our insurance carrier subsidiaries may in the future adopt statutory provisions more restrictive than those currently in effect. In addition, dividends and other distributions from our subsidiaries may be subject to incremental income or withholding taxes, which may reduce the amount of cash available for distribution to our shareholders.

*Investment Regulation* 

Accelerant Holdings' U.S. insurance companies are subject to Arkansas, Delaware and Puerto Rico laws which require diversification of our investment portfolios and limits on the amount of investments in certain categories. Failure to comply with these laws and regulations would cause non-conforming investments to be treated as non-admitted assets for purposes of measuring statutory surplus and, in some instances, would require us to sell those investments.

*Restrictions on Cancellation, Non-renewal or Withdrawal* 

Many states have laws and regulations that limit the ability of an insurance company licensed by that state to exit a market. Some states prohibit an insurer from withdrawing from one or more lines of business in the state except pursuant to a plan approved by the state insurance regulator, which may disapprove a plan that may lead to market disruption. Some state statutes may explicitly or by interpretation apply these restrictions to insurers operating on a surplus lines basis.

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*Licensing of Our Employees and Adjusters* 

In certain states in which we operate, insurance adjusters are required to be licensed and must fulfill annual continuing education requirements. AUM contracts with third-party administrators for claims administration services, including adjustment of claims. Such third-party administrators must maintain required adjuster licenses to provide such claims administration services to AUM. In addition, AUM maintains insurance producer agency licenses and surplus lines insurance producer agency licenses in all states in which it operates. Also, two of AUM's employees maintain requisite individual insurance producer licenses and surplus lines insurance producer licenses for the states in which AUM operates.

*Enterprise Risk and Other Recent Developments* 

The insurance holding company laws of Arkansas, Delaware and Puerto Rico explicitly address "enterprise" risk – the risk that an activity, circumstance, event or series of events involving one or more affiliates of an insurer will, if not remedied promptly, be likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole – and require annual reporting of potential enterprise risk as well as access to information to allow the state insurance regulator to assess such risk. In addition, such laws require that any person divesting control over an insurer must provide 30 days' notice to the regulator and the insurer (with an exception for cases where a Form A is being filed).

In addition, the insurance holding company laws of Arkansas, Delaware and Puerto Rico require domestic insurers to maintain a risk management framework and establish a legal requirement for domestic insurers to conduct an Own Risk and Solvency Assessment in accordance with the NAIC's Own Risk and Solvency Assessment ("ORSA") Guidance Manual. These laws provide that domestic insurers or their insurance group must regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual process. In addition, at least once a year, an insurer's domiciliary regulator may request that an insurer submit an ORSA summary report, or any combination of reports that together contain the information described in the ORSA Guidance Manual, with respect to the insurer and the insurance group of which it is a member. At the end of 2024, both ANIC and ASIC submitted ORSA reports for the year 2023 to the Delaware and Arkansas departments of insurance, respectively.

*Federal Regulation* 

The U.S. federal government's oversight of the insurance industry was expanded under the Dodd-Frank Act. Prior to the enactment of the Dodd-Frank Act in July 2010, the U.S. federal government's regulation of the insurance industry was essentially limited to certain insurance products, such as flood insurance, multi-peril crop insurance and reinsurance of losses from terrorism. As part of the overall federal financial regulatory reform package contained in the Dodd-Frank Act, Congress has legislated reforms in the reinsurance and surplus lines sectors.

The Dodd-Frank Act also incorporates the Non-Admitted and Reinsurance Reform Act of 2010 ("NRRA"), which became effective on July 21, 2011. Among other things, the NRRA establishes national uniform standards on how states may regulate and tax surplus lines insurance and sets national standards concerning the regulation of reinsurance. In particular, the NRRA gives regulators in the home state of an insured exclusive authority to regulate and tax surplus lines insurance transactions, and regulators in a ceding insurer's state of domicile have the sole responsibility for regulating the balance sheet credit that the ceding insurer may take for reinsurance recoverables.

The Dodd-Frank Act also established the FIO in the U.S. Department of the Treasury and vested the FIO with the authority to monitor all aspects of the insurance sector, monitor the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, and to represent the United States on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (the "IAIS"). In addition, the FIO serves as an advisory member of the

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Financial Stability Oversight Council, assists the secretary of the U.S. Department of the Treasury with administration of the Terrorism Risk Insurance Program, and advises the secretary of the U.S. Department of the Treasury on important national and international insurance matters. In addition, the FIO has the ability to recommend to the Financial Stability Oversight Council the designation of an insurer as "systemically important" and therefore subject to regulation by the Federal Reserve as a bank holding company.

In limited circumstances, the FIO can declare a state insurance law or regulation "preempted," but this can be done only after extensive consultation with state insurance regulators, the Office of the U.S. Trade Representative and key insurance industry players (in trade associations representing insurers and intermediaries). Additionally, the FIO must publish a notice regarding the basis for the preemption in the Federal Register, allowing a reasonable opportunity for comments. The FIO cannot preempt state antitrust laws governing rate making, underwriting, sales practices or coverage requirements. No later than September 30th of each year, the FIO must submit an annual report to Congress explaining any use of the preemption authority during the prior year.

In addition, a number of federal laws affect and apply to the insurance industry, including various privacy laws and the economic and trade sanctions implemented by the Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury. OFAC maintains and enforces economic sanctions against certain foreign countries and groups and prohibits U.S. persons from engaging in certain transactions with certain persons or entities. OFAC has imposed civil penalties on persons, including insurance and reinsurance companies, arising from violations of its economic sanctions program.

*Trade Practices* 

The manner in which insurance companies and insurance agents and brokers conduct the business of insurance is regulated by state statutes in an effort to prohibit practices that constitute unfair methods of competition or unfair or deceptive acts or practices. Prohibited practices include, but are not limited to, disseminating false information or advertising, unfair discrimination, rebating and false statements. We establish business policies to make our employee-agents and other sales personnel aware of these prohibitions, and we require them to conduct their activities in compliance with these statutes.

*Unfair Claims Practices* 

Generally, insurance companies, adjusting companies and individual claims adjusters are prohibited by state statutes from engaging in unfair claims practices. Unfair claims practices include, but are not limited to, misrepresenting pertinent facts or insurance policy provisions; failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies; and attempting to settle a claim for less than the amount to which a reasonable person would have believed such person was entitled. We established business policies to make our employee-adjusters and other claims personnel aware of these prohibitions, and requires them to conduct their activities in compliance with these statutes.

*Quarterly and Annual Financial Reporting* 

As a basis of accounting, SAP was developed to monitor and regulate the solvency of insurance companies. In developing SAP, insurance regulators were primarily concerned with ensuring an insurer's ability to pay all its current and future obligations to policyholders. As a result, statutory accounting focuses on conservatively valuing an insurer's assets and liabilities, generally in accordance with standards specified by the insurer's domiciliary state. The values for assets, liabilities and equity reflected in financial statements prepared in accordance with GAAP are usually different from those reflected in financial statements prepared under SAP.

In keeping with the intent to assure policyholder protection, SAP emphasizes solvency considerations. For a summary of the SAP capital and surplus and net income (loss) relating to our insurance subsidiaries, see Note 23 to our 2024 audited consolidated annual financial statements included elsewhere in this prospectus.

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*Credit for Reinsurance* 

State insurance laws permit U.S. insurance companies, as ceding insurers, to take financial statement credit for reinsurance that is ceded, so long as the assuming reinsurer satisfies the state's credit for reinsurance laws. There are several different ways in which the credit for reinsurance laws may be satisfied by an assuming reinsurer, including being licensed in the state, being accredited in the state, or maintaining certain types of qualifying collateral. We ensure that our material reinsurers satisfy applicable regulatory requirements to enable us to take full financial statement credit for such reinsurance.

Under reinsurance credit rules established under the Dodd-Frank Act, a U.S. ceding insurer need not satisfy the reinsurance credit rules of any nondomestic state if the following two conditions are met: (1) the ceding insurer's domestic state is NAIC-accredited or has financial solvency requirements substantially similar to the requirements necessary for NAIC accreditation, and (2) the ceding insurer's domestic state recognizes credit for reinsurance for its ceded risk.

*Periodic Financial and Market Conduct Examinations* 

Insurance regulatory authorities have broad administrative powers to regulate trade practices and to restrict or revoke licenses to transact business and to levy fines and monetary penalties against insurers and insurance agents and brokers found to be in violation of applicable laws and regulations. As part of their routine regulatory oversight processes, state insurance regulatory authorities conduct periodic on-site visits and examinations of the financial affairs and market conduct condition of our insurance company subsidiaries, including their financial condition, their relationships and transactions with affiliates and their dealings with policyholders, on average no less than every five years for domiciled insurance companies, and as deemed necessary to conduct special or targeted examinations to address particular concerns or issues at any time. These examinations are generally carried out in cooperation with the insurance departments of two or three other states under guidelines promulgated by the NAIC. The results of these examinations can give rise to regulatory orders requiring remedial, injunctive or other corrective action. In May 2024, ASIC's domiciliary regulator, Arkansas, commenced such a financial examination in conjunction with ANIC's domiciliary regulator, Delaware. The scope of the examination was January 1, 2020, through December 31, 2023. Delaware and Arkansas both issued their examination reports in May 2025. The examinations did not result in any remedial, injunctive or other corrective actions. Accelerant Re I.I. was formed in August 2024 and has not been subject to a financial examination.

Various state insurance departments also periodically examine non-domestic insurance companies conducting business in their states. The purpose of these periodic examinations is to evaluate compliance with state insurance laws and regulations and to determine if the companies' operations are consistent with the public interest of the policyholders resident in the state conducting the examination. In particular, state insurance laws and regulations include numerous provisions governing the marketplace activities of insurers, including provisions governing the form and content of disclosure to consumers, illustrations, advertising, sales practices and complaint handling. State regulatory authorities generally enforce these provisions through periodic market conduct examinations.

*Risk-Based Capital* 

RBC laws are designed to assess the minimum amount of capital that an insurance company needs to support its overall business operations and to ensure that it has an acceptably low likelihood of becoming financially impaired. State insurance regulators use RBC to set capital requirements, considering the size and degree of risk taken by the insurer and taking into account various risk factors including asset risk, credit risk, underwriting risk and interest rate risk. As the ratio of an insurer's total adjusted capital and surplus decreases relative to its RBC, the RBC laws provide for increasing levels of regulatory intervention culminating with mandatory control of the operations of the insurer by the domiciliary insurance department at the so-called mandatory control level.

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The Arkansas, Delaware and Puerto Rico Departments of Insurance have adopted a version of the NAIC Risk-Based Capital for Insurers Model Act, which requires annual reporting by their domiciled insurers to ensure maintenance of the minimum amount of RBC necessary for an insurer to support its overall business operations. Insurers falling below the calculated RBC threshold may be subject to varying degrees of regulatory action. Failure to maintain RBC at the required levels could adversely affect our ability to maintain the regulatory approvals necessary to conduct our business. However, as of March 31, 2025, ASIC, ANIC and Accelerant Re I.I. have each maintained RBC levels in excess of amounts that would require any corrective actions.

*Group Capital Calculation* 

In December 2020, the NAIC adopted a group capital calculation ("GCC") tool that uses an RBC aggregation methodology for all entities within an insurance holding company system, including non-U.S. entities. The goal is to provide U.S. regulators with a method to aggregate the available capital and the minimum capital of each entity in a group in a way that applies to all groups regardless of their structure. In December 2020, the NAIC also adopted amendments to the holding company system model laws to require, subject to certain exceptions, the ultimate controlling person of every insurer subject to the holding company registration requirement to file an annual GCC with its lead state regulator. The filing requirement becomes effective when the holding company act amendments are adopted by the state where and insurance group's lead state regulator is located. The holding company amendments have been adopted in Arkansas and Delaware, but have yet to be adopted in Puerto Rico. The NAIC has stated that the GCC is a regulatory tool and does not constitute a capital requirement or standard, but there can be no guarantee that will remain the case.

<u>United Kingdom Regulation</u> 

*Entities and Overview* 

The PRA and the FCA regulate insurance companies and reinsurance companies and the FCA regulates firms carrying on insurance distribution activities operating in the UK under the Financial Services and Markets Act 2000 ("FSMA"). Our insurance entity in the UK is AIUK, which is a non-life insurer. AIUK is authorized by the PRA and regulated by the PRA and the FCA. Following the UK's departure from the European Union ("Brexit"), a transition period (from January 31, 2020 to December 31, 2020) followed during which the Solvency II Directive and the Delegated Regulation (as defined in "*Entities and Overview – Solvency II*") were adopted into UK law by operation of the UK's European Union (Withdrawal) Act 2018, and amended to reflect Brexit (the "UK Solvency II Regulations"). AIUK is subject to the rules and regulations of the UK Solvency II Regulations. In addition, AIUK is subject to the IDD (as defined in "*European Union – The IDD*"), as adopted into English law, the prudential rules of the PRA and the conduct rules of the FCA.

Our authorized insurance intermediaries in the UK are: (i) Mission Underwriting UK Limited ("Mission UK"); (ii) Warranty Services Limited ("WSL"); and Euna Underwriting Limited ("EUNA").

Mission UK, WSL and EUNA are each solo-regulated by the FCA and are therefore subject to the prudential and conduct rules of the FCA. In addition, Mission UK, WSL and EUNA are subject to the rules and guidance of the IDD, as adopted into English law. We also have the following appointed representatives ("AR") in our group: Accelerant Agency (UK) Limited; Ignite Specialty Risk Limited; Mission UK Series 1 Limited; Mission UK Series 3 Limited; Mission UK Series 4 Limited; Mission UK Series 9 Limited; and Ventis Specialty Limited. An AR is not itself an authorized firm but is able to undertake regulated activities on behalf of a firm that is directly authorized by a relevant regulator (known as a "principal firm"), through entry into a contract with a principal firm which permits, or requires, the AR to carry on certain regulated activities. Accordingly, an AR is only able to undertake the regulated activities that its principal firm is authorized to undertake and is subject to any further restrictions contained in the contract between itself and its principal firm. Accelerant Agency (UK) Limited's principal firm is ES Risks Limited, which is authorized and regulated by the FCA as an insurance intermediary. Ignite Specialty Risk Limited's, Mission UK Series 1 Limited's, Mission UK Series 3 Limited's, Mission UK Series 4 Limited's, Mission UK Series 9 Limited's

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and Ventis Specialty Limited's principal firm is Mission UK. Mission UK provides its ARs with, among others, finance, technology, marketing and regulatory support. Mission UK is intended to operate an incubator model under which regulated businesses for which it takes responsibility will be moved into separate entities which will be its ARs.

The model operated by Mission UK depends on "cell" underwriting businesses being able to operate in separate legal entities as ARs of Mission UK, which takes on full regulatory responsibility for their activities. Mission UK is exposed to liability for any breaches by the cell ARs and is required to carry comprehensive professional indemnity insurance for their activities. Principal firms' ability to monitor and supervise their ARs continues to be an area of focus for the FCA, which has introduced stricter rules including enhanced oversight requirements on principal firms, and annual self-assessment, review, and reporting requirements. In addition, it has stated that it will continue to strengthen its scrutiny of authorizations and approvals for ARs and supervise high risk principals more assertively.

The Accelerant group of companies also has a position in three other insurance intermediaries in the UK authorized by the FCA: a minority position in LRMS Insurance Services Limited (19.5%); and a majority position in (i) NBS Underwriting Limited (80.5%) and (ii) Corniche Underwriting Limited (80.5%).

Our European insurance entity ("Accelerant Insurance Europe SA") and our European insurance intermediary ("Accelerant Agency Limited") received authorization for their UK third country branches in 2023 (with Accelerant Insurance Europe SA having previously operated in the UK under the Temporary Permissions Regime ("TPR")) on a "Services (UK) of an Overseas Firm" basis and Accelerant Agency Limited Having previously operated in the UK under the TPR on a "Branch (UK) of an Overseas Firm" basis).

As part of the UK's preparations for Brexit, the UK Government established the TPR for companies based in the EEA. The TPR allowed EEA-based firms that were passporting into the UK at the end of the transition period (December 31, 2020) to continue operating in the UK within the scope of their previous passport permission, for a limited period after the end of the transition period. During this limited period, such companies had to seek full authorization by the PRA or the FCA in the UK, if required, to continue to access the UK market.

Accelerant Insurance Europe SA/NV UK Branch ("Accelerant Insurance Europe UK") is authorized by the PRA and subject to regulation by the FCA and limited regulation by the PRA in the UK, in addition to any regulation by the NBB in Belgium. See "—European Union Regulation—Entities and Overview" for further detail.

Accelerant Agency Limited UK Branch ("Accelerant Agency UK") is authorized and regulated by the FCA in addition to any regulation by the Central Bank of Ireland ("CBI") in Ireland. See "—European Union Regulation—Entities and Overview" for further detail.

The PRA has two primary objectives: (i) to promote the safety and soundness of the firms it regulates; and (ii) (specifically for insurers) contribute to securing an appropriate degree of protection for insurance policyholders. The FCA's strategic objective is to ensure relevant markets function well. It also has three operational objectives: (i) to protect consumers from bad conduct; (ii) to protect the integrity of the UK financial system; and (iii) to promote effective competition in the interests of consumers. In addition, both regulators are tasked with a new secondary objective of facilitating the international competitiveness of the economy of the UK and its growth in the medium to long term. The PRA also has an additional secondary objective that is focused on facilitating effective competition in the markets for services provided by PRA-authorized persons in carrying on regulated activities. The PRA has responsibility for the prudential regulation of banks and insurers, while the FCA has responsibility for the conduct of business regulation in the wholesale and retail markets. The PRA and the FCA therefore adopt separate methods of assessing regulated firms. As insurers, AIUK and Accelerant Insurance Europe UK are subject to assessment by the PRA, whereas Accelerant Agency UK, Mission UK, WSL, EUNA and those insurance intermediaries in which the Accelerant group of companies has a position in are subject to assessment by the FCA (as insurance intermediaries).

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*Financial Services Compensation Scheme* 

The Financial Services Compensation Scheme ("FSCS") is a scheme established under FSMA which allows eligible customers of regulated firms (including insurers and insurance intermediaries) to seek compensation if that regulated firm were to become insolvent. The FSCS is funded by annual levies that regulated firms (such as AIUK and Accelerant Insurance Europe UK) are required to pay. Both AIUK and Accelerant Insurance Europe UK pay an amount relative to the size of their FSCS-exposed portfolios of business.

*Change in Control* 

Under FSMA, prior approval from the PRA and/or FCA is required before any person or entity, together with its associates, acquires "control" of or increases its control over a regulated firm, or over the parent undertaking of a regulated firm. In relation to AIUK (which is an insurer authorized by the PRA), in summary, a "controller" is defined for these purposes as a person who holds (either alone or in concert with others) 10% or more of the shares or voting power in the relevant PRA-authorized firm or its parent undertaking, or holds significant influence over the management of such PRA-authorized firm by virtue of their shareholding or voting power. Thereafter, the prior approval of the PRA is required if any person or entity (or two or more acting in concert) proposes to acquire shares or voting power in a PRA-authorized firm or the parent undertaking of a PRA-authorized firm, such that they cross one of the following shareholding or voting power thresholds: (i) 20% or more but less than 30%; (ii) 30% or more but less than 50%; or (iii) 50% or more. In relation to Mission UK, WSL and EUNA (which are FCA-authorized insurance intermediaries), the test for control is similar, but, there is only one relevant control threshold of 20% or more.

Any person or entity deemed to be a "controller" is required to have completed and submitted a notification to the relevant regulator and to have received approval from the PRA (for a PRA-authorized firm) or the FCA (for an FCA-authorized firm) before actually acquiring control. The relevant regulator then has a 60 working day review period from the date it acknowledges a complete notification to: (i) determine whether to approve the change in control unconditionally; (ii) approve the change in control subject to conditions; or (iii) object to the change in control. However, the relevant regulator has the ability to invoke an interruption of the review period if it requires further information. Depending on where the controller is based, the relevant regulator can invoke an interruption period of up to 30 working days.

Overseas branches (such as Accelerant Insurance Europe UK and Accelerant Agency UK) do not require pre-approval for changes in control. The appropriate procedure of the home state regulator should have been followed and the branch then needs to notify the relevant regulator that the change has happened. In addition, ARs (such as Accelerant Agency (UK) Limited) do not require pre-approval for changes in control, however, its principal firm should notify the relevant regulator of such changes.

*Restrictions on the Payment of Dividends* 

Under English law, all companies are restricted from declaring a dividend to their shareholders unless they have "profits available for distribution." The determination of whether a company has profits available for distribution is based on its accumulated realized profits and other distributable reserves, less its accumulated realized losses. UK insurance regulatory laws do not currently prohibit the payment of dividends, but the PRA's and/or the FCA's rules require that authorized insurance companies, insurance intermediaries and other regulated entities maintain certain solvency margins at all times and this would restrict the payment of a dividend by AIUK, WSL, EUNA and Mission UK, for example.

*Conduct of Business and the FCA's Consumer Duty (the "Duty")* 

The FCA's Insurance: Conduct of Business Sourcebook of the FCA Handbook ("ICOBS"), which was amended with effect from October 1, 2018 to implement the IDD pre-Brexit, outlines high-level standards that apply to all non-investment insurance product sales, such as that of AIUK from an establishment in the UK, and regulates the standard of day-to-day conduct of business. The overall aim of ICOBS is to ensure that customers within its scope are treated fairly, and are provided with clear, fair information when insurance policies are sold.

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One of the general rules under ICOBS is that the firm must act honestly, fairly, and professionally in accordance with the best interests of its customer. To help achieve this, ICOBS rules include, among others, the provision of certain information about the company to clients, meeting certain standards of product disclosure, ensuring that promotional materials are clear, fair and not misleading, assessing suitability when advising on certain products, management of conflicts of interest and claims, reporting appropriately to clients, and providing certain protections in relation to client assets. Rules in ICOBS will apply, broadly, to the business of insurance carriers and insurance intermediaries (referred to as insurance distribution) providing direct general and "pure protection" insurance policies. Pure protection contracts are long term insurance policies with no surrender value, or where the consideration consists of a single premium and the surrender value does not exceed that premium. ICOBS applies to such businesses with retail customers, which means it will not apply to "contracts of large risk" sold to commercial customers or other contracts of large risk where the risk is located outside the UK. Nor does it apply to activities connected to the distribution of group insurance policies or the extension of these policies to new members. ICOBS therefore applies to a broad range of "non-large risk" commercial business, as well as to consumers.

AIUK and Accelerant Insurance Europe UK each delegate underwriting and claims authority to Accelerant Agency UK. A binding authority agreement between the parties sets out the nature and extent of the underwriting and claims authority delegated by one intra-group party to the other and includes a number of provisions that ensure the relationship between the parties is conducted on an arm's length basis.

The Duty aims to have a material impact on how financial service sector companies, including insurance companies and insurance intermediaries, interact with retail customers and set higher standards of care to retail customers over the lifecycle of their products. The rules build on existing product governance and pricing rules and require AIUK, and the other group companies subject to UK regulation by the FCA, to define, monitor, and evidence how their business models, actions and culture are delivering good customer outcomes in the four areas of products and services, price and value, consumer understanding and consumer support. For general and pure protection business, the Duty applies to broadly the same types of customers as ICOBS, and non-large commercial customers as well as consumers. The implementation of the Duty is a major area of focus for the FCA, which has made it clear that it will use the full range of supervisory tools available to it to compel the delivery of better outcomes for consumers across these areas. The UK general insurance market has already seen significant interventions in relation to specific products and business lines where the FCA believes retail customers are not receiving fair value and/or that commissions levels received by distributors cannot be justified by the services they provide.

AIUK, Accelerant Insurance Europe SA (including Accelerant Insurance Europe UK), Accelerant Agency Limited (including Accelerant Agency UK), EUNA, Mission UK and WSL are subject to the FCA's Duty rules. A number of activities were undertaken in order to ensure compliance with the Duty. These included enhancements to the complaint management process, development of a Duty dashboard (to be provided to the Boards of the regulated entities on a quarterly basis), development of a revised annex to the binding authority agreements entered into with MGAs (setting out an enhanced schedule of responsibilities applicable to each co-manufacturer of an insurance product(s)) and the appointment of a board-level Duty champion for each of the regulates entities (with effect from the end of February 2025, the FCA no longer expects firms to have a Duty champion at Board level; however, they can retain the role should they wish to do so). A product oversight group involving representatives from AIUK, Accelerant Insurance Europe SA, Accelerant Insurance Europe UK, Accelerant Agency Limited and Accelerant Agency UK, meet quarterly to consider a range of product governance-related matters, including Duty, fair value assessments and the approval of new insurance products and significant adaptations to existing insurance products.

*ESG* 

ESG and sustainability continue to be an area of focus for both the PRA and the FCA. The regulators have indicated that ESG will remain a supervisory priority and firms (such as AIUK) are required to comply with certain ESG-related requirements. In particular, the PRA's supervisory statement SS3/19 requires AIUK to:

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(i) fully embed consideration of climate-related risks into its governance arrangements; (ii) incorporate climate-related financial risks into existing risk management practices; (iii) utilize scenario analysis to inform strategy setting; (iv) carry out a risk assessment and risk identification; and (v) develop and maintain an appropriate approach to the disclosure of climate-related financial risks. The PRA's letter to CEOs in January 2025 outlined its insurance supervision priorities for 2025, including a planned consultation on updating SS3/19. The update aims to help firms enhance their climate-related financial risk management. AIUK is also required to allocate responsibility for managing climate-related risk to a senior manager under the Senior Managers and Certification Regime (the "SM&CR").

In September 2023, the PRA and the FCA issued a joint consultation paper (CP23/20 and CP18/23) on diversity and inclusion. The proposals build on the ideas discussed in the regulators' joint discussion paper which was published by the PRA, the FCA, and the Bank of England in July 2021. In March 2025, the FCA and PRA stated that they had no plans to take their work on diversity and inclusion forward, in light of the broad range of feedback received, expected legislative developments and to avoid additional burdens on firms. The FCA confirmed alongside this announcement that it would continue to prioritize its work on tackling non-financial misconduct in firms and intends to set out its next steps on this topic by the end of June 2025.

In November 2023, the FCA published a policy statement (PS23/16) which sets out its final rules and guidance on the sustainability disclosure requirements and investment labels regime. As part of this regime, the FCA introduced, among other things, a general 'anti-greenwashing' rule, which is applicable to all FCA-regulated firms, and requires firms, when communicating with UK clients in relation to a product or service, or communicating or approving a financial promotion to a person in the UK, to ensure, among other things, that any references in such communications to the sustainability characteristics of the product or service are fair, clear and not misleading. The 'anti-greenwashing' rule came into force on May 2024 and the FCA also published guidance (FG 24/3) on the expectations for FCA-regulated firms subject to the 'anti-greenwashing rule' which took effect at the same time.

*Operational Resilience* 

AIUK and Accelerant Insurance Europe UK are subject to certain regulatory requirements issued by the PRA and the FCA relating to operational resilience. The framework relating to operational resilience aims to ensure that financial services firms are able to prevent, adapt to, respond to, recover from and learn from operational disruptions. The operational resilience regime, which became effective in March 2022, requires firms to identify their important business services, map and assess the resources that support them (including people, processes, technology, facilities and third-party service providers), set impact tolerances for maximum acceptable disruption and perform scenario testing to assess their ability to remain within those tolerances. Firms had to demonstrate their ability to operate within their impact tolerances by the end of March 2025.

The PRA's supervisory statement: "Operational resilience: Impact tolerances for important business services" (SS1/21) sets out its expectations for the operational resilience of firms' important business services. AIUK and Accelerant Insurance Europe UK have ensured that their systems and controls specifically identify and prioritize "important business services," and consider and monitor whether they have dedicated appropriate resources to ensure that they have sufficient operational resilience in the event of any potential material disruption to the services provider (for example, by preparing and maintaining a business continuity or disaster recovery plan covering such circumstances).

*Key Functions and SM&CR* 

UK Solvency II Regulations require that all persons who effectively run the insurance undertakings and insurance intermediaries or have other key functions are at all times fit (i.e, their professional qualifications, knowledge and experience are adequate to enable sound and prudent management) and proper (*i.e*, they are of good repute and integrity) and are notified to the relevant supervisory authority.

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The UK's framework to ensuring the standards of such persons is the SM&CR. The SM&CR aims to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence. The SM&CR consists of three parts: (i) the Senior Managers Regime ("SMR"); (ii) the Certification Regime and (iii) the Conduct Rules. The application of the SM&CR depends on the individual's role and level of seniority in a business. The SMR is for the most senior individuals in a company who perform key roles (referred to as Senior Management Functions, "SMFs") in a company and require FCA or PRA approval before starting their role. The Certification Regime covers specific functions that are not SMFs and therefore do not require FCA or PRA prior approval, but for which the regulated firms must check and certify individuals holding these roles at least annually as fit and proper. The Conduct Rules set the minimum standards of individual behavior applicable to all staff working in financial services apart from those in purely ancillary roles, and require individuals to act with integrity, due skill, care and diligence, be open and cooperative with the FCA, the PRA and other regulators, pay due regards to the interests of customers and treat them fairly and observe proper standards of market conduct. The FCA and the PRA have published a joint discussion paper (DP23/3 and DP1/23) on the review of the SM&CR. The discussion paper considers the effectiveness, scope, and proportionality of the regulatory regime and aims to identify ways to improve the regime to help it work better for firms and regulators. His Majesty's Treasury (the "Treasury") has, in parallel, launched a Call for Evidence and is also seeking feedback on the SM&CR. The PRA and the FCA are considering the responses and continuing to work together with the Treasury to decide next steps (which may result in changes to the SM&CR). More specific conduct rules apply to individuals who hold SMFs.

*Reports and Returns* 

Under the UK Solvency II Regulations, AIUK is required to submit quarterly and annual filings with the PRA, including an annual Solvency and Financial Condition Report ("SFCR"), which must also be posted on the Accelerant Group's website. In addition, AIUK must submit an annual ORSA to the PRA. The ORSA report is produced annually and provides a summary of all of the activities and processes during the preceding year to assess and report on risks and ensure that overall solvency needs are met at all times, including a forward-looking assessment. It also explains the linkages between business strategy, business planning and capital and risk management processes.

In addition, AIUK has recently received approval from the PRA for a modification to the PRA Rulebook - Group Supervision 20.1 and 20.2 - (referred to as an "Other Methods Waiver"), permitting AIUK to use "other methods" to achieve the objectives of group supervision. Under this arrangement, AIUK is required to provide the PRA, annually, with a Group SCR and Own Funds calculation (at the level of Accelerant Holdings) and the consolidated financial statements for Accelerant Holdings. It is also required to provide the PRA with prior notification of: (i) a payment or extraction from AIUK or its UK holding company, Accelerant Underwriting Holdings Limited, to any undertaking in the worldwide group situated outside of the UK and Gibraltar; (ii) any material intra-group transaction involving the transfer of economic benefits, or the assumption of liabilities from AIUK or Accelerant Underwriting Holdings Limited to an undertaking(s) in the worldwide group situated outside the UK and Gibraltar; and (iii) any proposed changes to, or replacement of, any external debt agreements affecting AIUK or Accelerant Underwriting Holdings Limited.

Accelerant Insurance Europe UK is also required to submit quarterly and annual filings with the PRA, including an annual branch ORSA. Both AIUK and Accelerant Insurance Europe UK are required to submit quarterly and annual filings to the FCA providing information relating to, among others, pricing information, product sales, and complaints. UK authorized insurance intermediaries are also subject to ongoing monitoring and annual reporting obligations. Accordingly, EUNA, Mission UK and WSL are required to submit quarterly and annual reports to the FCA which provide information relating to their controllers and close links, client money and assets, accounts, market data, product sales data, remuneration data and reporting complaints.

*Future developments in the UK Solvency II Regulations – Further Reforms Post-Brexit* 

In June 2023, the Financial Services and Markets Act 2023 ("FSMA 2023") received royal assent. FSMA 2023 provides a framework for the revocation of retained EU law in financial services (including the UK

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Solvency II Regulations). Since the transition period, the UK Solvency II Regulations and the IDD (as defined in "European Union — The IDD") have undergone various reviews on its application in the UK. The response to the UK Government's review published in July 2021 anticipated changes to the UK's Solvency II framework which was mirrored by the PRA's quantitative and qualitative studies in 2021.

Following the release of His Majesty's the Treasury's (the " Treasury") consultation paper in April 2022, it published its response in November 2022 which set out the UK Government's final reform package on the UK Solvency II framework. It proposed to introduce a more simple, clear and tailored regime by: (i) cutting the risk margin; (ii) maintaining the existing measure of fundamental spread whilst allowing the use of notched rating, including investment flexibility; (iii) cutting the unnecessary burdens on firms imposed by some of the EU rules adopted by the UK in order to facilitate innovation and vibrant markets; and (iv) removing requirements for foreign insurers with branches in the UK from calculating branch capital requirements and holding of local assets to cover them.

In June 2023, the Treasury published draft legislation focusing on changes to the risk margin and the PRA issued the first of two consultations (the second was published at the end of September 2023) covering reform proposals for insurers relating to investment flexibility and the matching adjustment ("MA"), including to eligibility rules, new attestation requirements and certain changes to its calculation, reporting and risk management. The legislation implementing the changes to the risk margin, the *Insurance and Reinsurance Undertakings (Prudential Requirements) (Risk Margin) Regulations 2023*, came into effect on December 31, 2023. The PRA will publish regular reports on the MA framework alongside the PRA Annual Report, covering application review timelines and decision rates, with the first report to be published in 2025. The other reforms forming part of "Solvency UK" became effective in December 2024. These reforms include the removal of branch capital requirements for third-country branches. This includes both the Solvency Capital Requirement ("SCR") and the Minimum Capital Requirement ("MCR"), as well as the need to establish a branch risk margin to comply with ongoing supervision rules. In November 2024, the PRA published its final Policy Statement containing PRA rules and policy materials on Solvency UK (Policy Statement 15/24). The PRA has stated that these reforms and restatement of rules provide a new regulatory framework for maintaining the safety and soundness of insurance firms and protecting their policyholders, and that the PRA will continue to evolve its prudential regulatory framework for the insurance sector in 2025 and beyond. The rules and policy materials became effective in December 2024.

The Treasury has announced its plans to repeal the IDD delegated acts and for the requirements of the regulations to be included in the FCA's Handbook. In response, the FCA published a consultation paper (CP23/19) in September 2023 on the future regulatory framework for the IDD seeking feedback on its proposals for transferring part of the regulatory requirements on insurance firms from current legislation into its rules. The FCA subsequently published a policy statement (PS23/18) in December 2023 providing feedback to the responses the FCA received to the consultation paper along with its final rules. The rule changes came into force in April 2024.

In October 2023, the PRA published a consultation paper (CP21/23) on the PRA's approach to the authorization and supervision of insurance branches, which included its proposed approach to assessing risks of third country branches, reinsurance arrangements of third country branches, as well as other expectations such as reporting requirements. More recently, the PRA published a policy statement along with its final rules on the assessment of risk in respect of third country branches.

In February 2025, the PRA published their "approach to policy" in which they set out their approach to advancing their primary and secondary objectives, international engagement and collaboration, creating and maintaining their prudential policy framework and maintaining an accessible, efficient and clear Rulebook.

The group is monitoring closely the proposed reforms to the UK Solvency II framework and the approach adopted by the PRA and FCA to advancing their secondary objectives of facilitating the international

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competitiveness of the economy in the UK (including, in particular, the financial services sector) and its growth in the medium to long term and welcomes the prospect of further improved efficiencies in the UK regulatory landscape.

*Future developments in the UK Solvency II Regulations – Remaining Competitive in the International Market* 

In January 2022, the UK Parliament, via its Industry and Regulators Committee (the "Committee"), launched an inquiry into the UK insurance and reinsurance industry and, specifically, into the regulation of the London market, the UK's market for commercial and wholesale specialty risks. The inquiry reviewed the extent to which regulatory policy is well-designed and proportionately applied, the possibilities for optimizing policy following Brexit, the roles of the current UK regulators, such as the FCA and the Bank of England, as well as the appropriateness of regulation. Following its inquiry, the Committee outlined industry concerns regarding a perceived lack of proportionality in the regulation of the London market by the PRA and FCA, which was described as overly burdensome and demanding. The Committee explained the industry's concerns that an overly inflexible culture within the UK regulators may inhibit new forms of business within the UK's commercial reinsurance industry.

*S166 Skilled Person Review* 

"Skilled Person" reviews have become an increasing feature of the UK financial services regulatory landscape in recent years. Under section 166 of FSMA the FCA and the PRA have wide powers to require a financial services firm to commission skilled person reports into any aspect of the firm's business.

As part of a routine year-end statutory audit it was identified by the external auditor that AIUK's treatment of deferred taxes and their method of valuation of a subsidiary company adopted in the Solvency II Balance Sheet were incorrect resulting in AIUK's SCR coverage ratio falling to below 100% at half-year 2021. The PRA was subsequently notified and in response requested that AIUK engage a Skilled Person to review its Solvency II Balance Sheet (for the period from year-end 2020 to half-year 2022) and the governance, risk management and control framework for the preparation of the Solvency II Balance Sheet.

AIUK retained Barnett Waddingham LLP to perform a Skilled Person review and to prepare a Skilled Person report. This review identified a number of recommendations to be addressed and completed. These recommendations were addressed by AIUK's senior management, with oversight provided by the AIUK Board. AIUK's internal auditors, Grant Thornton UK LLP ("Grant Thornton"), undertook validation work on those items. Grant Thornton's validation report received a rating of "good," reflecting AIUK's diligence in closing the actions in a timely manner and is indicative of the overall good governance of the process.

AIUK's Board has determined that, except for ongoing effectiveness, there are no remaining actions for AIUK's management to undertake in this area. Following this, a copy of the validation report prepared by Grant Thornton was shared with the PRA, with no follow up information requested or actions required.

<u>European Union Regulation</u> 

*Entities and Overview* 

*Accelerant Insurance* 

*Europe SA* 

Our European insurance undertaking is Accelerant Insurance Europe SA. Accelerant Insurance Europe SA is a licensed non-life insurer established in Belgium (authorized by the NBB and regulated by the NBB and the Financial Services and Markets Authority). It is subject to: (i) the European Directive 2009/138/EC (as amended, the "Solvency II Directive") and the Commission Delegated Regulation (EU) 2015/35 (as amended, the

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"Delegated Regulation") (together referred to as the "Solvency II framework") which is the prudential regime for reinsurance undertakings in the EEA; and (ii) the Insurance Distribution Directive (Directive (EU) 2016/97) (the "IDD"), as implemented throughout the EEA.

Accelerant Insurance Europe SA also has a UK third-country branch, Accelerant Insurance Europe UK, which is authorized by the PRA and subject to regulation by the FCA and limited regulation by the PRA. See "—United Kingdom Regulation—Entities and Overview" for further detail.

The relevant EEA supervisory body for insurers, the European Insurance and Occupational Pensions Authority ("EIOPA") has limited supervisory powers in EEA Member States, however it plays an important role in drafting and issuing technical standards and preparing guidance relating to various European directives and regulations. EIOPA aims to accomplish efficient and harmonized financial supervision across the European Union.

The Solvency II framework provides rules and regulations relating to, inter alia, Accelerant Insurance Europe SA's authorization requirements (including the European "passport" regime which is further detailed under *"Passporting – Freedom of Establishment and Freedom of Services*"), its minimum own funds and solvency and its governance. Governance requirements include the need to ensure sound business operations, establishment of mandatory key functions (being actuarial, compliance, internal audit and risk management) and requirements relating to Accelerant Insurance Europe SA's management board members, supervisory board members, and other key personnel (together, "Relevant Persons").

In accordance with Solvency II and NBB requirements, Relevant Persons within Accelerant Insurance Europe SA are subject to an assessment of their fitness and propriety both prior to their appointment and on an ongoing basis, to ensure they have the required professional qualifications, knowledge, skills, experience and integrity to discharge their duties and obligations. In addition, the Branch Manager and Compliance Officer of Accelerant Insurance Europe UK are subject to the SM&CR introduced in the UK with the aim of reducing harm to consumers and strengthening market integrity by making individuals performing certain key functions more accountable for their conduct and competence.

Furthermore, Accelerant Insurance European SA is also subject to the Belgian Law of March 13, 2016 on the legal status and supervision of insurance companies or reinsurance companies; the Belgian Law of April 4, 2014 on Insurances; the Belgian Overarching Governance System Circular and all implementing Belgian Royal Decrees, Circulars and Communications (the "Belgian Local Rules") and the lower rules and regulations promulgated thereunder as well as national regulations and local conduct of business requirements.

*Irish Intermediaries* 

Accelerant Agency Limited is registered as an insurance intermediary by the CBI under the European Union (Insurance Distribution) Regulations 2018 ("Irish IDD Regulations") which transposed the IDD in Ireland. The Irish IDD Regulations follow the text of the IDD closely. Accelerant Agency Limited and Resolution Underwriting Holdings (Ireland) Limited (to be renamed Mission Underwriting Europe Limited) are the two insurance intermediaries registered by the CBI under the Irish IDD Regulations in which the Accelerant group of companies has a 100% holding, with Accelerant Agency Limited having one tied insurance intermediary: Mission Services Ireland Limited (in which the Accelerant Group has a 100% holding). The Accelerant group of companies also has holdings of less than 100% in the following insurance intermediaries registered by the CBI under the Irish IDD Regulations as follows: (i) Corniche Underwriting (EU) Limited (80.5%); (ii) LRMS (Europe) Ltd (19%); (iii) NBS Commercial Limited (80.5%); (iv) REV Risk Management (Europe) Limited (19.5%); and (v) UBI Courtage Limited (77.58%). Accelerant Agency Limited and the six other insurance intermediaries/tied insurance intermediaries detailed above are hereinafter referred to as the "Irish Intermediaries".

Mission Services Ireland Limited ("MSIL") is a tied insurance intermediary of Accelerant Agency Limited. A tied insurance intermediary may only be appointed if it is of good repute and possesses the appropriate general,

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commercial and professional knowledge and competence to enable it to deliver to the client or potential client the proposed services of the entity for whom it acts (e.g. Accelerant Agency Limited). Accelerant Agency Limited remains fully and unconditionally responsible for any act or omission on the part of MSIL when acting on its behalf.

Accelerant Agency Limited engages in claims management activities which come within the definition of "insurance distribution" in the IDD and so comes within the scope of the requirements set out in the IDD and the Irish IDD Regulations (see "IDD" below for further detail).

Accelerant Agency Limited also has a third country branch in the UK, Accelerant Agency Limited UK Branch, which is authorized and regulated by the FCA. See "—United Kingdom Regulation—Entities and Overview" for further detail. EIOPA produced a Supervisory Statement on the use of governance arrangements in third countries to perform functions or activities (the "Supervisory Statement"). See "3. Guidelines" below for further detail. As a result of Brexit, the provisions of the Supervisory Statement apply in relation to the UK branch of Accelerant Agency Limited as it is a third country branch.

A Fitness and Probity Regime was introduced by the CBI under the Central Bank Reform Act 2010 ("2010 Act") and accompanying guidelines and standards issued by the CBI under the powers provided to it under the 2010 Act. The Fitness and Probity Regime was introduced to ensure that individuals performing Controlled Functions ("CF") and Pre-Approval Controlled Functions ("PCF") within a regulated financial service provider are competent and capable, honest, ethical and of integrity. In accordance with the Fitness and Probity Regime, individuals performing PCF and CF roles are subject to an assessment of their fitness and probity both prior to their appointment and on an ongoing basis. The appointment of individuals to PCF positions requires the prior sanction of the CBI. The appointment of individuals to CF positions does not require the prior sanction of the CBI and is instead made by the regulated financial service provider itself having assessed the compliance of the individual with the requirements of the Fitness and Probity Regime.

In early March 2023, the Central Bank (Individual Accountability Framework) Act 2023 ("IAF Act") was signed into law and introduced, among other requirements, a senior executive accountability regime (applicable to certain firms from July 1, 2024), certain obligations on individuals performing CF and PCF roles in relation to expected standards of conduct, additional obligations on individuals performing PCF roles and various enhancements to the Fitness and Probity Regime. For the Irish intermediaries (such as Accelerant Agency Limited), certain elements of the IAF Act are applicable, with the exception of the senior executive accountability regime which is not currently applicable to insurance intermediaries. Training on the new requirements is provided to individuals within Accelerant Agency Limited and MSIL performing CF and PCF roles on at least an annual basis. Additionally, relevant policies, procedures and other documents have been updated, where required, to reflect the new requirements. In addition, the Branch Manager of Accelerant Agency Limited's UK third country branch is subject to the SM&CR introduced in the UK.

The Consumer Protection Code 2012 (as amended) ("CPC") applies to the Irish Intermediaries with respect to the regulated activities they undertake with customers (in particular, consumers) in Ireland. The CPC sets out principles of fairness which must be adhered to including with respect to premium handling, provision of information, customer suitability, post-sale information, processing of claims and rebates and complaints resolution (amongst others). A revised CPC was published in March 2025 and will take effect in March 2026. The existing CPC will continue to apply until then. The modernized CPC will focus on emerging risks to consumer interests arising from digitalization as well as issues around dealing with vulnerable customers and climate risk. There are additional requirements applicable to contracts with consumers in the Consumer Insurance Contracts Act 2019, which among other things, sets out the duties of consumers as to disclosure when they enter into an insurance contract. Furthermore, the Consumer Rights Act 2022 introduces a "blacklist" of terms that will not be permitted in a consumer insurance contract. Starting in June 2025, the provisions of the European Union (Accessibility Requirements of Products and Services) Regulations 2023 will apply to the Irish Intermediaries insofar as they provide e-commerce services. These regulations implement the European Accessibility Act in Ireland and require the incorporation of certain accessibility requirements for persons with disabilities on e-commerce platforms.

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All of the Irish Intermediaries are Irish incorporated companies subject to the provisions of the Companies Act 2014 (as amended) of Ireland which is the key piece of Irish company law and includes requirements regarding board meetings, shareholder meetings, directors' duties, minority interests, distribution of company assets, requirements to maintain books of account and other fundamental requirements of Irish incorporated companies.

Subject to certain regulatory notification requirements both Accelerant Insurance Europe SA and Accelerant Agency Limited can provide services, or establish a branch, in any other Member State of the EEA (which is detailed below in "*Passporting – Freedom of Establishment and Freedom of Services*"). Although, in doing so, they may become subject to the laws of such Member States with respect to the conduct of business in such Member State (i.e., general good provisions), company law registrations and other matters, but will remain respectively subject to financial and operational supervision by the NBB and CBI only.

*Solvency II* 

The Solvency II framework is built on a three-pillar structure: (i) quantitative requirements (such as asset and liability valuation and capital requirements); (ii) qualitative requirements (including governance and risk management of the business and the ORSA); and (iii) supervisory reporting and public disclosure requirements.

The main features of the Solvency II framework include: (i) market consistency (i.e., assets and liabilities to be valued at the amount for which they can be exchanged, transferred or settled in the market); (ii) risk-based (i.e., higher risks will lead to higher capital requirements to cover for unexpected losses); (iii) proportionality (i.e., regulatory requirements will be applied in a proportionate manner to the nature, scale and complexity of the risks inherent to the business of the insurance and reinsurance undertakings); and (iv) group supervision (i.e., supervisors will increase coordination and exchange of information amongst them to improve cross-border supervision of insurance and reinsurance groups).

The Solvency II legislation is implemented on the following three levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Solvency II Directive

The Solvency II Directive, which entered into force in January 2016, lays down the general principles which underpin the uniform rules applicable to insurers and reinsurers and their activities and services. The main objective of the Solvency II Directive is to provide adequate protection of policyholders and beneficiaries as well as to facilitate financial stability and fair and stable markets.

The Solvency II Directive comprises of six titles which cover: (i) taking up and pursuit of direct insurance and reinsurance activities; (ii) provisions for specific types of insurance and reinsurance; (iii) supervision of group undertakings; (iv) reorganization and winding up of undertakings; (v) other provisions; and (vi) transitional and final provisions.

As previously mentioned, one of the pillars of the Solvency II framework is the adequacy of quantitative requirements. To measure this, the Solvency II Directive prescribes the SCR, the Minimum Capital Requirement and a standard formula which are intended to reflect the risk profile of most insurance and reinsurance undertakings. However, where the standardized approach does not adequately reflect the specific risk profile of an undertaking, other measures such as governance requirements (as opposed to quantitative requirements) are permitted and prescribed under the Solvency II Directive.

The Solvency II Directive makes a distinction between life and non-life insurance activities and prohibits insurance undertakings from being authorized to carry out the two simultaneously except for certain activities of limited risk profile. Accelerant Insurance Europe SA only carries out non-life insurance activities under the definition of the Solvency II Directive. The distinction between the two types, as well as the requirement to keep the management of the two types separate (where an insurance undertaking is authorized to carry out both) is to identify and manage the specific risks arising from each type of insurance and reinsurance obligations in relation to the perils covered and processes used in the conduct of business.

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The Solvency II Directive also provides a framework on the supervision and exercise of solvency of insurance and reinsurance undertakings in a group. This allows legal and regulatory oversight of the insurance and reinsurance undertaking of the group company as a whole and facilitates the coordination of supervision through a group supervisor, which is a designated supervisory authority of the Member State(s) concerned.

In order to take account of the international aspects of reinsurance, the Solvency II Directive does not prohibit EEA insurers from obtaining reinsurance from reinsurers licensed outside the EEA. Article 172 of the Solvency II Directive provides that reinsurance contracts concluded by insurance undertakings in the EEA with reinsurers having their head office in a country whose solvency regime has been determined to be equivalent to Solvency II, shall be treated in the same manner as reinsurance contracts with undertakings in the EEA authorized under Solvency II. Post Brexit, the UK has become a third country and as the UK Solvency II Regulations look to undergo reforms, this raises the question as to whether the amended regime in the UK will be given equivalence status by the EU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Delegated Regulation

The Solvency II Directive is further accompanied by the Delegated Regulation which implements technical standards set by the European Commission based on the EIOPA issued guidelines. The Delegated Regulation provides more granular requirements which uphold the overarching principles of the Solvency II Directive and together form the fundamental legal framework of the insurance and reinsurance market in the EEA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Guidelines

EIOPA issues guidelines and recommendations addressed to national competent authorities or insurance undertakings to help establish consistent, efficient and effective supervisory practices and to ensure common and consistent application of European Union law. Even though the guidelines are not legally binding on addressees, competent authorities and financial institutions are required to make every effort to comply with them and competent authorities must follow a "comply or explain" process.

*EIOPA Third Country Branch Supervisory Statement* 

In February 2023, EIOPA issued the EIOPA Third Country Branch Supervisory Statement on the use by EEA-authorized insurance undertakings and intermediaries of governance arrangements (such as branches) in third countries to perform functions or activities in respect of EEA policyholders and risks (the "Supervisory Statement").

In principle, Solvency II and the IDD do not prevent EEA head office insurance undertakings and intermediaries having a branch in a third country (e.g., the UK) through which they conduct regulated activity in respect of EEA risks. In contrast, as a result of Brexit, UK head-office insurance undertakings and intermediaries are no longer able to use their UK licenses to carry on underwriting and other regulated activities in respect of EEA risks. Many UK-based insurance and insurance intermediary groups therefore now include insurance undertakings and/or intermediaries which have a head office in, and are licensed in, an EEA jurisdiction (e.g., Belgium or Ireland) and a third country branch in the UK.

However, whether such structures comply with EU insurance and insurance distribution regulation has come under scrutiny from the EU. In the EIOPA Third Country Branch Supervisory Statement, EIOPA noted that the purpose of a branch should primarily be to serve the market in which it was established. EIOPA stated that branches established in third countries with the sole objective of conducting regulated activities in the EEA should be avoided, and that a third-country branch should not conduct a disproportionate amount of its business aimed at, or in, the EEA (compared with business in the local market of the branch). EIOPA has also stated that where an EEA-based insurance distribution firm establishes a third-country branch, the licensed entity must ensure that this is met with adequate governance policies and procedures, in order to ensure that the licensed entity, including the branch, is able to comply with all applicable EEA requirements.

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The CBI issued a newsletter in September 2023 to insurance stakeholders in which it reminded regulated firms with a third country branch of the key provisions in the Supervisory Statement and to review their current business models considering the Supervisory Statement. The CBI requires the provisions of the Supervisory Statement to be complied with in full.

The UK third-country branches of both Accelerant Insurance Europe SA and Accelerant Agency Limited were established to enable both regulated entities to continue to access the UK market and to support various UK based MGAs involved in underwriting and distributing a range of insurance products in the UK, with the structure and organization of both Accelerant Insurance Europe SA and Accelerant Agency Limited such that an appropriate level of corporate substance (proportionate to the nature scale and complexity of their activities within the EEA) is maintained at the level of their respective head offices.

The UK third-country branches of both Accelerant Insurance Europe SA and Accelerant Agency Limited are each supported by a UK-based team of experienced individuals with expertise in areas including underwriting, distribution, and claims. This enables the UK third-country branch of Accelerant Insurance Europe SA to delegate underwriting and claims authority to the UK third-country branch of Accelerant Agency Limited, which, in turn, delegates underwriting and claims authority to carefully selected UK-based MGAs – responsible for distributing and administering insurance products – and carefully selected UK-based third-party administrators – responsible for handling claims.

Certain activities are also outsourced by Accelerant Insurance Europe SA, Accelerant Agency Limited and their respective UK third-country branches to Accelerant Services (UK) Limited – an intra-group service company – under a Master Services Agreement. These support services include: risk management; compliance; legal; human resources; actuarial (Pricing); analytics and insights; product management; information technology; finance; and technical Accounting.

Day-to-day oversight of the support services provided by Accelerant Services (UK) Limited is monitored by senior individuals within Accelerant Insurance Europe SA, Accelerant Agency Limited, and their respective UK third-country branches. Additional oversight is provided in accordance with the requirements of the third-party risk management framework applicable to Accelerant Insurance Europe SA, Accelerant Agency Limited and their respective UK third-country branches.

*Future Developments* 

In its review of the Solvency II Directive, EIOPA provided an opinion to the European Commission in December 2020 that whilst the Solvency II framework works well and does not require fundamental change, some improvements were needed in three key areas: (i) balanced updating of the regulatory framework; (ii) recognition of the economic situation; and (iii) completing the regulatory toolbox.

In response to the European Commission's review of the Solvency II Directive in July 2020 which highlighted the rules regarding long term guarantee measures, solvency and minimal capital requirements and supervision of insurance companies across the EEA Member States, the European Commission set out a proposal to amend the Solvency II Directive in September 2021 which would in effect lower regulatory obligations of small and low-risk insurance companies, take into account long-term and climate change risks and enhance supervision at group and cross border level. Echoing such proposed changes, the European Parliamentary Research Service ("EPRS") published a briefing in January 2023 on a proposal to amend the Solvency II Directive, particularly regarding capital requirements and valuation of insurance liabilities and cross border supervision as well as clarifications on the proportionality principle.

In December 2023, the European Council (the "Council") announced that it had reached a provisional agreement with the European Parliament (the "Parliament") on amendments to the Solvency II Directive. In January 2024, the texts of the provisional agreements were published by the Council. The Council formally

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adopted the amendments on November 5, 2024 and the amendments are expected to take effect in the final quarter of 2026. Under the amendments adopted to Solvency II, group supervisors will have enhanced direct powers against insurance holding companies which can include restricting or prohibiting distributions or interest payments to shareholders where (among other circumstances) the insurance holding company has failed to ensure that the group complies with the requirements of Solvency II.

In addition to the above Solvency II Directive reform proposals, the European Commission continues to promote the development of the Insurance Recovery and Resolution Directive ("IRRD"). The proposal aims to harmonize national laws on recovery and resolution of reinsurance undertakings. Political agreement on the IRRD was reached by the Council and the Parliament in December 2023 and the Council formally adopted the IRRD in November 2024. The IRRD is expected take effect in the final quarter of 2026.

*ESG* 

In August 2021, two delegated regulations (the "EC Regulations") amending sectoral legislation, including the Solvency II Directive and the IDD, were published by the European Commission. The EC Regulations focus on the integration of sustainability into key activities, including product oversight and governance, risk management and suitability assessment procedures. The EC Regulations applied from August 2022.

The Commission Delegated Regulation (EU) 2021/1256 of April 21, 2022 amending the Delegated Regulation introduces obligations for reinsurance undertakings to manage "sustainability risks" and ensure sustainability factors are taken into account in risk assessments.

Companies in scope of the Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464, the "CSRD"), which includes EU companies with over €50 million in turnover, at least 250 employees and/or assets exceeding €25 million, as well as certain non-EU companies, and undertakings wherever situated that are listed on an EU regulated market, are required to publish sustainability-related disclosures against common reporting standards adopted by the European Commission in annual financial statements. The reporting requirements are being phased in over the next few years, with the largest companies required to report in respect of financial years starting on or after January 1, 2024. Under a simplification package (the "Omnibus Package") proposed by the European Commission in February 2025 (but not yet implemented), additional firms subject to the reporting requirements in respect of their 2025 or 2026 financial years will have those requirements postponed to 2027 and 2028, respectively.

In July 2024, the Corporate Sustainability Due Diligence Directive ("CSDDD") entered into force. The CSDDD requires in-scope companies to engage in a thorough due-diligence process encompassing identification, assessment, prevention and mitigation of negative impacts on human rights and the environment. To mitigate adverse impacts on human rights and the environment, a broad range of elements must be addressed, including child labour, forced labour, greenhouse gas emissions and deforestation. Importantly, as the law currently stands, in-scope companies are required to examine and document findings beyond their immediate operations, encompassing the activities of both upstream and, for certain in-scope companies, downstream business partners. The categories of companies to which CSDDD applies is determined on the basis of (i) the number of employees and worldwide revenue for EU companies and (ii) revenues within the EU for non-EU companies.

In February 2025, the European Commission published an "Omnibus Package" of proposed measures designed to simplify the key EU laws on corporate sustainability reporting, due diligence and trade, including a number of proposed amendments to the application dates and requirements for sustainability reporting and due diligence under the CSRD and CSDDD, respectively. As part of these measures, a "stop the clock" directive proposes to delay the application dates of CSRD and CSDDD for the second and third wave of companies due to be phased in; and a "substantive directive" aims to significantly reduce the number of companies in scope of CSRD and reduce the number of mandatory obligations on in-scope companies in both CSRD and CSDDD. The "stop the clock" directive was adopted and entered into force in April 2025. Member States have until December 31, 2025 to transpose the directive. The "substantive directive" has not yet been adopted.

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*The IDD* 

The IDD applies to both Accelerant Insurance Europe SA and Accelerant Agency Limited. The IDD regulates the way insurance products are designed and sold both by insurance intermediaries (e.g., Accelerant Agency Limited and the other Irish Intermediaries) and directly by insurance undertakings (e.g., Accelerant Insurance Europe SA). The provisions set out in the IDD mainly relate to registration requirements for undertakings engaging in regulated activity coming within the scope of the IDD, professional indemnity requirements, standards of product disclosure, promotional materials and product governance and oversight. Local regulations and conduct of business rules implemented in each of the European Member States in which Accelerant Insurance Europe SA/NV and Accelerant Agency Limited do business supplement the requirements set out in the IDD. 

*Passporting – Freedom of Services and Freedom of Establishment* 

Subject to certain regulatory notification requirements, both Accelerant Insurance Europe SA and Accelerant Agency Limited can provide services, or establish a branch, in any other Member State of the EEA subject to the laws and regulations of the home Member State, as well as local rules of the host Member State(s). Both Accelerant Insurance Europe SA and Accelerant Agency Limited have benefited from the passporting regime on both a freedom of services ("FoS") and freedom of establishment ("FoE") basis. Accelerant Insurance Europe SA has branches in Italy, Greece, Spain, and Ireland and is in the process of establishing a branch in Luxembourg. It provides services in Austria, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. Accelerant Agency Limited provides services in all EEA Member States (and it has no branches in the EEA). In Ireland, Accelerant Insurance Europe SA is authorized to conduct business under both the FoE and FoS regimes.

*Italy* 

Insurance companies incorporated and authorized in accordance with the laws of an EEA Member State ("EEA Insurance Companies") are allowed to provide their services in Italy on a FoS and/or FoE basis. In Italy, Accelerant Insurance Europe SA is authorized to conduct business under both the FoE and FoS regimes.

In both cases, the relevant entity is required to comply with the notification procedures between the supervisory authorities of the competent Home Member State and the Italian Supervisory Authority on insurance companies (which is the Institute for the Supervision of Insurance – "IVASS").

An EEA Insurance Company operating through the establishment of a branch is required to appoint a branch manager, to be domiciled at the branch office and granted with mandate powers to: (i) represent the insurance undertaking before courts and all Italian authorities; and (ii) enter into and execute any agreement or deed relating to the activities carried out by the EEA Insurance Company in Italy. Should the general representative be a legal person, its office must be registered in Italy and it must appoint a natural person as its representative to be domiciled in Italy and granted with the powers described above.

EEA Insurance Companies operating in Italy are required to duly comply with general good provisions, and, in particular with conduct of business rules enacted to protect policyholders and other beneficiaries of insurance benefits.

IVASS is entitled to take appropriate measures in respect of EEA Insurance Companies whose operation in Italy is detrimental to the general interests of the policyholders and with the aim of granting the proper functioning of the Italian insurance and reinsurance market.

Accelerant has a minority ownership position in one MGA in Italy.

*Greece* 

EEA Insurance Companies can conduct business in Greece on a FoS and/or FoE basis. The relevant supervisory authorities of their home Member States are responsible for the prudential and financial supervision

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of these undertakings, while the Greek supervisory authority on private insurance (which is the Bank of Greece – "BoG") monitors their compliance with the applicable legislation on the taking-up and pursuit of insurance and reinsurance business. The BoG is entitled to require the remedy of any irregularities detected in compliance with applicable legislation on the taking-up and pursuit of insurance and reinsurance business and to take appropriate emergency measures to prevent or penalize such irregularities, including the power to prevent insurance and reinsurance undertakings from continuing to conclude and/or distribute new insurance contracts within Greece.

In order to conduct business in Greece, undertakings incorporated in another EEA Member State must comply with the required notification procedure performed between the supervisory authorities of their state of origin and the host state (i.e., the BoG). The rules on the establishment and operation of insurance and reinsurance undertakings are set forth in Law 4364/2016 (Government Gazette 13 A) that incorporates into the Greek legislation the corresponding provisions of the Solvency II Directive. Special consideration should be given to Chapter 8 of Law 4364/2016 regarding the right of establishment and the freedom to provide services. Moreover, insurance and reinsurance conducting cross-border business in Greece, either through a branch or under the FoS, are required to comply with the general good provisions designated by the BoG such provisions being:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) articles 5, paragraph 7, second subparagraph (transaction relations between insurance distributors and between
themselves and their customers), 19, paragraph 4, first and second subparagraphs (special register and single information point) and 28, paragraph 3 (general information provided by the insurance intermediary or insurance undertaking) of Law
4583/2018 transposing into Greek legislation the IDD (Directive (EU) 2016/97 on insurance distribution);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) various provisions of Law 4364/2016, regulating: the obligation of foreign insurance undertakings providing
MTPL insurance in Greece via freedom to provide services to participate in the 'Auxiliary Fund (providing) insurance of liability arising out of motor accidents' as well as in the Motor Insurers Bureau and to appoint a special
representative (article 120); the measures that the BoG can take against foreign undertakings which breach applicable legislation (article 123); advertising of foreign insurance undertakings' services (article 124); the indirect taxes imposed
on insurance contracts concluded under freedom to provide services and the obligation for appointment of a tax representative (article 125); the law applicable on the insurance contract (article 145); the delivery of the insurance contract along
with a certificate of insurance to the policyholder in cases of compulsory insurances as well as the time-frame set for the reimbursement of the insurance premium collected by insurance intermediaries to the insurance undertaking (article 146,
paragraphs 1 and 2); BoG's right to request from insurance undertakings any information necessary for the conduct of its supervision, including the conveyance of their insurance terms (article 148, paragraph 3, b); the information which must be
pre-contractually given to policyholders of non-life insurances (arts. 150-151 of Law 4364/2016); the obligations of loss adjusters with which the insurance undertaking co-operates (article 259); the requirements that the claims representative (that
must be appointed by all insurance undertakings engaging in class 10 of non-life insurance, which is the MTPL insurance) and the legal representative of the Greek branches of EEA and third countries' insurance undertakings must meet (articles
255 and 261, respectively);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the provisions of the Presidential Decree 237/1986 on the MTPL insurance which is relevant to
Accelerant's activities insofar as it engages in motor vehicle liability insurance, the pursuit of which is included in Accelerant's scheme of operations notified to the supervisory authority of its home Member State (Belgium) and
communicated to the BoG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) the provisions of Law 3651/2008 (as well as of Law 4512/2018 amending the latter), setting requirements for
the provision of road assistance services, which is also relevant to Accelerant's activities to the extent that it conducts insurance falling within the scope of class 18 'Assistance' of non-life insurances, the pursuit of which is
included in Accelerant's scheme of operations notified to the supervisory authority of its home Member State (Belgium) and communicated to the BoG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) the decision No. 87/05.04.2016 of the BoG's Executive Committee detailing the settlement and payment of
insurance money in cases of MTPL insurance; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) the decision No. 88/05.04.2016 of the BoG's Executive Committee regarding the procedures that insurance
undertakings must have in place for the examination of policyholders' complaints.

Accelerant has a minority ownership position in one MGA in Greece.

In Greece, Accelerant Insurance Europe SA was initially authorized to provide insurance under the FoS regime, with a Greek branch now also established.

*Spain* 

EEA Insurance Companies may conduct business in Spain on a FoS and/or FoE basis. In order to conduct such business in Spain, EEA Insurance Companies must comply with the required notification procedures between the supervisory authorities of the state of origin and the Spanish insurance and reinsurance regulator (*Dirección General de Seguros y Fondos de Pensiones*) ("DGSFP").

EEA Insurance Companies which operate in Spain under the FoE regime and/or under the FoS regime must comply with certain Spanish general good provisions and the applicable market behaviour provisions set out in Title III, Chapter VII of Spanish Law 20/2015, of 14 July, on the regulation, supervision and solvency of reinsurance entities. Likewise, they shall also submit to the DGSFP, on the same terms as Spanish insurance companies, all the documents required by the DGSFP in order to check whether they comply in Spain with the Spanish legal provisions applicable to them. A non-exhaustive list of the Spanish general good provisions applicable to insurance undertakings incorporated in EEA Member States is available in the DGSFP's website.

In Spain, Accelerant Insurance Europe SA is authorized to conduct business under the FoE regime (having established a Spanish branch for such purposes) and under the FoS regime.

Accelerant has a majority ownership position in two MGAs in Spain.

*Ireland* 

Insurance undertakings or insurance intermediaries authorized in an EEA Member State may carry on business in Ireland either under the FoE (through a branch) or under the freedom to provide services. Responsibility for the prudential supervision of these undertakings lies with the relevant supervisory authorities of the home Member State. Insurance undertakings or insurance intermediaries operating in Ireland on this basis are required to duly comply with general good rules, and, in particular with conduct of business rules enacted to protect policyholders and other beneficiaries of insurance benefits provisions (e.g., The Consumer Protection Code 2012 (as amended)).

In Ireland, Accelerant Insurance Europe SA is authorized to conduct business under both the FoE and FoS regimes.

*Changes of Control* 

*Belgium* 

Before a person or entity (or two or more persons acting in concert) can acquire a direct or indirect holding in Accelerant Insurance Europe SA, which represents 10% or more of the capital or of the voting rights, or which makes it possible to exercise a significant influence over the management of Accelerant Insurance Europe SA ("Qualifying Holding"), prior written approval/non-objection must be obtained from the NBB. Thereafter, the prior approval/non-objection of the NBB must be sought by any person or entity (or two or more persons acting in concert) proposing to, directly or indirectly, increase a Qualifying Holding such that the holding would reach or exceed 20%, 30% or 50% (each a "Prescribed Percentage") of the share capital or voting rights in Accelerant Insurance Europe SA; or a holding such that Accelerant Insurance Europe SA would become a subsidiary of the acquiror.

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Prior to granting approval for the acquisition of a Qualifying Holding, the NBB will consider a number of factors, including the financial strength of the proposed acquiror, the proposed acquiror's reputation (including its integrity and professional competence) and the proposed acquiror's plans for the future operations of Accelerant Insurance Europe SA. ****The NBB has a total of 82 working days (where the proposed acquiror is based in the EEA) and 92 working days (where the proposed acquiror is based outside the EEA) to review the application and provide its approval/non-objection.

In addition, the NBB must be notified in advance (no approval is required) of a proposed, direct or indirect, disposal of a Qualifying Holding or a reduction in holding such that the direct or indirect holding or capital or voting rights in Accelerant Insurance Europe SA would fall below a Prescribed Percentage, or such that Accelerant Insurance Europe SA would cease to be a subsidiary of the acquiror.

Furthermore, a person or entity (or two or more persons acting in concert) who has acquired, directly or indirectly, a holding in Accelerant Insurance Europe SA, or who has increased, directly or indirectly, its holding in Accelerant Insurance Europe SA, such that the holding reaches or exceeds the threshold of 5% of the share capital or voting rights in Accelerant Insurance Europe SA, without however holding a Qualifying Holding, is required to notify the NBB in writing within 10 working days of the acquisition or increase of the holding. The same notification is required from any person or entity (or two or more persons acting in concert) who has ceased to hold, directly or indirectly, a holding of more than 5% in the share capital or voting rights in Accelerant Insurance Europe SA.

The aforementioned notification requirements also apply where the proportion of share capital or voting rights held in Accelerant Insurance Europe SA reaches, exceeds or, as the case may be, is reduced below the thresholds referred to above (including Qualifying Holdings and Prescribed Percentages) as a result of a situation involving a change in the level of a holding which is not the consequence of an acquisition or disposal, in particular the existence of multiple voting rights or the acquisition of own shares by Accelerant Insurance Europe SA.

*Ireland* 

In relation to Accelerant Agency Limited, there is no pre-approval requirement under Irish law on a change of control. However, Accelerant Agency Limited will be required to notify the CBI without unreasonable delay where it becomes aware of a change of control.

*Restrictions on Paying Dividends* 

*Belgium* 

Under the Belgian Code of Companies and Associations ("BCCA"), no distribution (e.g., payment of dividends) may be made where the net assets in Accelerant Insurance Europe SA, as shown in the annual accounts, are, or would become, as a result of such a distribution, less than the amount of the paid-up capital or, if this amount is greater, the called-up capital, increased by all the reserves which the law or Accelerant Insurance Europe SA's articles of association do not allow to distribute. The "net assets" are defined as the total amount of the assets minus the provisions, the liabilities and, except in exceptional cases to be stated and justified in the notes to the financial statements, the unamortized amounts of incorporation and expansion costs and research and development costs.

Moreover, should the NBB become aware that Accelerant Insurance Europe SA is not operating in accordance with the applicable legislative framework, or where it would have indications that Accelerant Insurance Europe SA might no longer operate in accordance with such legislative framework within the next twelve months, the NBB may prohibit or limit the payment of dividends as long as Accelerant Insurance Europe SA has not remedied the situation.

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*Ireland* 

Under Irish company law, Accelerant Agency Limited is permitted to make distributions only out of profits available for distribution. Irish insurance regulatory laws do not prohibit the payment of dividends by insurance intermediaries.

*Regulatory Reports and Returns* 

*Belgium* 

Under the Solvency II framework, Accelerant Insurance Europe SA is required to submit quarterly and annual filings with the NBB, including an annual SFCR. In addition, Accelerant Insurance Europe SA must submit an annual ORSA report to the NBB. The ORSA report provides a summary of all the activities and processes during the preceding year to assess and report on risks and ensure that overall solvency needs are met at all times, including a forward-looking assessment. It also explains the linkages between business strategy, business planning and capital and risk management processes.

*Ireland* 

Insurance intermediaries are subject to ongoing prudential monitoring of their compliance with the registration requirements, which includes holding an adequate policy of professional indemnity insurance. In order for the CBI to carry out its supervisory functions, it requires insurance intermediaries such as Accelerant Agency Limited to complete and submit an annual return which includes information relating to the insurance intermediary's finances, ownership, professional indemnity insurance and compliance with conduct of business rules.

*Financial Compensation Schemes* 

*Ireland* 

The Insurance Compensation Fund is a scheme established under the Irish Insurance Act 1964 (as amended) which allows eligible customers of non-life insurers (including non-life insurers authorized in any EU member state who are selling to Irish customers) to seek compensation if that firm were to become insolvent. The fund is funded by an annual levy calculated on the basis of the amount of premium earned by a non-life insurer in respect of policies that cover risks in Ireland.

*Belgium* 

In Belgium, there is no general insurance compensation scheme in respect of non-life insurance, but only the Belgian Common Guarantee Fund (Fonds Commun de Garantie Belge/ Belgisch Gemeenschappelijk Waarborgfonds) which is limited to compensation in the framework of compulsory motor vehicle liability insurance. This scheme is established under the Belgian Law of November 21, 1989 on compulsory motor vehicle liability insurance (as amended). It allows an injured party to seek compensation directly from the scheme in certain circumstances including if the insurance undertaking which has an obligation to indemnify were to become insolvent. The fund is funded by the payment of an annual levy and participations in the coverage of the claims reserves according to each affiliates' share in the motor third party liability insurance market in Belgium. Accelerant Insurance Europe SA is authorized to provide motor third party liability insurance but does not currently provide this coverage in the Belgian market.

*Greece* 

In Greece, there is not a single body or Financial Compensation Scheme entrusted with the duty to provide compensation to insureds of all classes of non-life insurances, in case of insolvency of an insurance undertaking. However, specifically in case of insolvency of the insurance undertaking covering the civil liability of the driver

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of the damaging vehicle, the "Auxiliary Fund (providing) insurance of liability arising out of motor accidents" provides compensation to injured third parties. In the event of Accelerant Insurance Europe SA's insolvency, in the first place, the "Auxiliary Fund" would be obliged to reimburse third parties injured in car accidents caused by drivers insured by Accelerant Insurance Europe SA against their liability arising out of the use of motor vehicles (class 10 of non-life insurances regarding MTPL insurance, according to the Solvency II Directive's classification). Upon reimbursing the injured third parties, the "Auxiliary Fund" would be entitled to claim full reimbursement of the sum paid from the Belgian Guarantee Fund, that is the Compensation Body of Accelerant's home Member State.

*Italy* 

In Italy, Law no. 213 of December 30, 2023 introduced the obligation for companies incorporated in Italy or foreign companies with a permanent establishment in Italy, registered in the Italian Companies Register, to enter into insurance contracts covering damages to certain tangible assets directly caused by natural disasters and catastrophic events.

In this context, SACE S.p.A., an Italian insurance company controlled by the Italian Ministry of Economy and Finance, has established a guarantee scheme in favor of those insurers and reinsurers authorized to cover these natural catastrophe risks in Italy that are required to provide such insurance coverages. According to this guarantee scheme, SACE will cover the compensations for the occurrence of these events up to 50% for a total amount not exceeding the ceiling established by the 2024 Budget Law, equal to €5 billion for 2025.

*Spain* 

In Spain, certain types of insurance contracts (even if they are concluded under the FoE regime or under the FoS regime) are subject to premium surcharges in favour of the Spanish Insurance Compensation Consortium (Consorcio de Compensación de Seguros) ("CCS") in order to fund the exercise of the CCS' functions in the Spanish insurance sector (among others, the coverage of extraordinary risks not covered by insurance companies, compulsory vehicle insurance, combined agricultural insurance and the liquidation of insolvent Spanish insurance undertakings). The CCS is a public business organization that is attached to the Spanish Ministry of Economy, Trade and Enterprises, through the DGSFP.

The insurance contracts which are subject to surcharge in favour of the CCS are those contracts which fall under any of the following insurance business lines: (i) land vehicles, railway vehicles, wilderness fires and events, other damage to property and for miscellaneous pecuniary losses; (ii) civil liability in land motor vehicles; (iii) life (in contracts that guarantee exclusively or primarily the risk of death); and (iv) accidents (in contracts guaranteeing the risk of death or providing financial compensation for permanent invalidity or temporary incapacity).

It should be noted that Spanish law does not apply to the liquidation of insurance undertakings of other EEA Member States or of its branches in Spain. In this regard, the CCS does not have any faculties with regard to the insolvency or liquidation of insurance undertakings of other EEA Member States (for example, Accelerant Insurance Europe SA) or of their branches in Spain.

<u>Cayman Islands Insurance Regulation</u> 

Accelerant Re Cayman holds a Class B(iii) Insurance License issued in accordance with the terms of The Insurance Act, 2010 (as amended) of the Cayman Islands (the "Act"), and is regulated by the Cayman Islands Monetary Authority ("CIMA"). As the holder of a Class B(iii) Insurance License, Accelerant Re Cayman is permitted to undertake insurance business in accordance with its business plan approved by CIMA.

Accelerant Re Cayman is subject to minimum capital and surplus requirements, and its failure to meet such requirements could subject it to regulatory action. Pursuant to The Insurance (Capital and Solvency) (Classes B, C and

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D Insurers) Regulations, 2012 (the "Capital and Solvency Regulations"), Accelerant Re Cayman is required to maintain the statutory minimum capital requirement (as defined under the Capital and Solvency Regulations) and prescribed capital requirement (as defined under the Capital and Solvency Regulations), and a minimum margin of solvency equal to or in excess of the total prescribed capital requirement. Any failure to meet the applicable requirements or minimum statutory capital requirements could subject the company to further examination or corrective action by CIMA, including restrictions on dividend payments, limitations on the company's writing of additional business or engaging in finance activities, supervision or liquidation.

CIMA may at any time direct Accelerant Re Cayman, in relation to a policy, a line of business or the entire business, to cease or refrain from committing an act or pursing a course of conduct and to perform such acts as in the opinion of CIMA are necessary to remedy or ameliorate the situation. Furthermore, CIMA may require a licensee to take steps to rectify any matters, suspend the license or revoke the license if, CIMA is of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a licensee is or appears to be likely to become unable to meet its obligations as they fall due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a licensee is carrying on its business in a manner detrimental to the general public interest or to the
interests of its creditors or policy holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the activities of any member of the licensee's insurance group are detrimental to those interests of the
licensee's creditors as well as its policy holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a licensee has contravened the Act or the Anti-Money Laundering Regulations (2023 Revision) of the Cayman
Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the licensee has failed to comply with a condition of its license or with the requirements of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the direction and/or management of a licensee's business has not been conducted in a fit and proper
manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a person holding a position as a director, manager or officer of a licensee's business is not a fit and
proper person to hold the respective position; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any person holding or acquiring control or ownership of a licensee is not a fit and proper person to have such
control or ownership.

Failures to comply with a direction given by CIMA may be punishable by a fine of up to five hundred thousand Cayman Islands dollars ($600 thousand based on the Cayman Islands' exchange rate of CI$0.83 per $1.00 as of March 31, 2025) or imprisonment for a term of 10 years or both, and a fine of an additional ten thousand Cayman Islands dollars ($12 thousand) (as of March 31, 2025) for every day after conviction on which the offense so continues.

Whenever CIMA believes that a licensee is or may become unable to meet its obligations as they fall due, is carrying on business in a manner likely to be detrimental to the public interest or to the interest of its creditors or policyholders, has contravened the terms of the Act, or has otherwise behaved in such a manner so as to CIMA to call into question the licensee's fitness, CIMA may take one of a number of steps, including requiring the licensee immediately to take steps to rectify the matter; suspending the license of the licensee pending a full inquiry into the licensee's affairs; revoking the license; imposing conditions with respect to decisions made by the licensee, including the suspension of voting rights or nullification of votes cast; imposing conditions, or further conditions, upon the license and amending or revoking any such condition; requiring the substitution or removal of any director, manager or officer of the licensee; at the expense of the licensee; appointing a person to advise the licensee on the proper conduct of its affairs; at the expense of the licensee, appointing a receiver or person to assume control of the licensee's affairs who shall have all the powers necessary to administer the affairs of the licensee including power to terminate the insurance business of the licensee; and requiring such action to be taken by the licensee as CIMA considers necessary.

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In addition, as a Cayman Islands exempted company, Accelerant Re Cayman may not carry on business or trade locally in the Cayman Islands except in furtherance of its business outside the Cayman Islands and is prohibited from soliciting the public of the Cayman Islands to subscribe for any of its securities or debt. The company is further required to file a return with the Registrar of Companies in January of each year and to pay an annual registration fee at that time.

The Cayman Islands has no exchange controls restricting dealings in currencies or securities.

<u>Canada Insurance Regulation</u> 

Accelerant Insurance Company of Canada (formerly operated under the name Omega General Insurance Company, "Accelerant Insurance Canada") is subject to federal, as well as provincial and territorial, regulation in Canada in the provinces and territories in which Accelerant Insurance Canada underwrites insurance and reinsurance. The Office of the Superintendent of Financial Institutions ("OSFI") is the federal regulatory body that, under the Insurance Companies Act (Canada), prudentially regulates federal Canadian and non-Canadian insurance and reinsurance companies operating in Canada. Accelerant Insurance Canada is licensed to carry on insurance business by OSFI and in each province and territory.

Accelerant Agency Canada Ltd ("Accelerant Agency Canada") is required to register with the relevant regulatory authority in each province and territory in which it operates in Canada. There is also a requirement for a principal broker, acting on behalf of Accelerant Agency Canada, to be licensed in each province and territory in which Accelerant Agency Canada operates. Accelerant Agency Canada and its principal broker are both registered or licensed to carry on insurance business in each province and territory in Canada.

Under the Insurance Companies Act (Canada), Accelerant Insurance Canada is required to maintain an adequate amount of capital in Canada, calculated in accordance with a test promulgated by OSFI called the Minimum Capital Test. OSFI has implemented a risk-based methodology for assessing insurance and reinsurance companies operating in Canada known as its "Supervisory Framework." In applying the Supervisory Framework, OSFI considers the inherent risks of the business and the quality of risk management for each significant activity of each operating entity. Under the Insurance Companies Act (Canada), approval of the Minister of Finance (Canada) is required in connection with certain acquisitions of shares of, or control of, Canadian insurance companies such as Accelerant Insurance Canada, and notice to and/or approval of OSFI is required in connection with the payment of dividends by or redemption of shares by Canadian insurance companies such as Accelerant Insurance Canada.

Accelerant Insurance Canada is also subject to Canadian provincial and territorial insurance legislation and regulation, governing market conduct, including pricing, underwriting, coverage and claim conduct, in varying degrees by province/territory and by product line.

**Privacy** 

Accelerant is subject to various data privacy laws and regulations, as applicable in the jurisdictions in which it operates. The Company regularly monitors emerging and evolving legislation in the various jurisdictions and implements the necessary processes to maintain the integrity and confidentiality of personal information.

<u>United States Privacy Laws</u> 

Federal law and the laws of many states require financial institutions to protect the security and confidentiality of all personal information processed by such financial institutions, to notify the relevant individuals about their policies and practices relating to collection and disclosure of customer information, and their policies relating to protecting the security and confidentiality of that information and to notify regulators and individuals in the event of certain data breaches. Federal law and the laws of many states also regulate disclosures and disposal of customer information. Congress, state legislatures, and regulatory authorities are expected to consider additional regulation relating to privacy and other aspects of customer information.

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Additionally, in response to the growing threat of cyber-attacks in the insurance industry, certain jurisdictions have begun to consider new cybersecurity measures, including the adoption of cybersecurity regulations which, among other things, would require insurance companies to establish and maintain a cybersecurity program and implement and maintain cybersecurity policies and procedures. On October 24, 2017, the NAIC adopted its Insurance Data Security Model Law, intended to serve as model legislation for states to enact in order to govern cybersecurity and data protection practices of insurers, insurance agents, and other licensed entities registered under state insurance laws. As of February 1, 2025, a version of the model law has been adopted by more than 25 states, such as Indiana and Iowa, but it is not an NAIC accreditation standard. The New York State Department of Financial Services ("NYSDFS") issued Cybersecurity Regulations for Financial Services Companies that require certain parts of Accelerant's insurance operations to, among other things, establish and maintain a cybersecurity policy, a cybersecurity breach incident response process, and to designate a Chief Information Security Officer.

The Gramm-Leach-Bliley Act ("GLBA") and the Fair Credit Reporting Act ("FCRA") impose privacy and information security requirements on financial institutions, including obligations to protect and safeguard consumers' nonpublic personal information and creditworthiness information, respectively, and limitations on the use and sharing of such information. The GLBA requires administrative, technical, and physical safeguards to ensure the security, confidentiality, integrity, and proper disposal of nonpublic personal information, and the FCRA imposes similar information security requirements regarding the protection of creditworthiness information. The FCRA limits an entity's ability to disclose creditworthiness information to affiliates and nonaffiliates unless certain notice requirements are met and the consumer does not elect to prevent or "opt out" of the disclosure, and it limits an entity's ability to use creditworthiness information except for certain authorized purposes. The GLBA limits a financial institution's disclosure of nonpublic personal information to unaffiliated third parties unless certain notice requirements are met and the consumer does not elect to prevent or "opt out" of the disclosure. The GLBA requires that financial institutions provide privacy notices to their customers. Certain states have implemented certain requirements of the GLBA, through adoption of the NAIC Privacy of Consumer Financial and Health Information Regulation and the NAIC Standards for Safeguarding Customer Information Model Regulation.

Many states have enacted privacy and data security laws that impose compliance obligations beyond those imposed by the GLBA, including obligations to protect sensitive personal information, as well as to notify state regulators including the state Attorneys General of data security incidents.

The California Consumer Privacy Act, amended by the California Privacy Rights Act ("CCPA") in 2020, enhances privacy rights and consumer protection for residents of California. Subject to certain exceptions, the CCPA requires companies operating in California to determine the types of personal information retained on California residents; to provide detailed privacy notices to individuals from whom personal information is collected that informs such individuals of the purpose of this information collection and whether such information is shared with third parties; to develop systems allowing such companies to respond efficiently to requests by California residents seeking to determine what information such companies possess or requesting deletion of their information; and to ensure that service providers and other third parties to whom these companies provide such personal information adhere to certain contractual requirements. Regulations have been issued and are forthcoming by the California Privacy Protection Agency ("CPPA"). CCPA imposes requirements relating to data minimization and correction and provides residents with additional rights over their personal information, including the right to opt-out of the use of their personal information in online behavioral advertising and to opt-out of certain types of consumer profiling. The CPPA, that has administrative enforcement authority over CCPA and other California privacy laws and oversees CCPA rulemaking.

Several states have enacted comprehensive data privacy laws that require in scope businesses to disclose information about their privacy practices and give state residents rights to access, delete, and correct their personal information and to opt out of the use of their information for targeted advertising, profiling that results in the provision or denial of decisions including insurance services, and from having their personal information sold to third parties. Most of these laws broadly exempt entities covered by the GLBA or insurers more generally; other laws such as the CCPA only exempt personal information that is subject to the GLBA and some

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types of data subject to FCRA. These exemptions under the CCPA do not apply to the statute's private right of action, which provides for statutory damages, for an unauthorized access and exfiltration, theft, or disclosure of certain types of personal information as a result of the violation of a duty to maintain reasonable security procedures and practices. Additionally, the CCPA applies to the personal information of California residents collected in the employment, job applicant, and business-to-business settings. Violations of the CCPA and similar state privacy laws can result in civil or administrative penalties, and compliance with the evolving state privacy laws may lead to increased legal risks and compliance investments.

There also has been increased scrutiny, including from state regulators, regarding the use of "big data" techniques, and some state laws impose additional restrictions on automated decision-making. These laws and regulations have emerged not only from generally applicable privacy laws, but also from insurance-specific regulatory bodies. The NAIC has established a dedicated working group, known as the Big Data and Artificial Intelligence (H) Working Group, to consider big data issues, such as the lack of transparency and potential for bias in algorithms used to synthesize big data. This Working Group released a Memo and Report regarding its AI survey for life insurance in December 2023. Moreover, in December 2023, the NAIC also adopted a new model bulletin entitled "Use of Algorithms, Predictive Models, and AI Systems by Insurers." The AI Bulletin also sets forth state insurance regulators' expectations on how insurers should govern the use of such technologies by or on behalf of the insurer to make or support such decisions. State insurance regulators have started to adopt versions of the AI Bulletin and have released bulletins discussing the types of information that regulators may request during an investigation or examination of an insurer in regard to AI systems.

As a result of increased innovation and technology in the insurance sector, the NAIC is monitoring technology developments that impact the state insurance regulatory framework and has developed or is developing regulatory guidance, as appropriate. For example: (1) the NAIC has adopted amendments to the anti-rebating provisions of the NAIC's Unfair Trade Practices Act to address new technologies that are being deployed to add value to existing insurance products and services; (2) the NAIC has adopted guiding principles related to AI, its use in the insurance sector, and its impact on consumer protection and privacy, marketplace dynamics and the state-based insurance regulatory framework; and (3) the NAIC's Privacy Protections (H) Working Group is in the process of developing a new model law to replace the NAIC's Insurance Information and Privacy Protection Model Act and the NAIC's Privacy of Consumer Financial and Health Information Regulation with one new model law. Further, the NAIC and state insurance regulators have been focused on addressing unfair discrimination in the use of consumer data and technology, and some states have passed laws or introduced legislation targeting unfair discrimination practices. Several states have also issued guidance regarding the use of big data technology in compliance with anti-discrimination laws.

State regulators, most notably state departments of insurance, have also taken a more active role in regulating the insurance industry's use of big data and AI. For example, on June 30, 2022, the California Department of Insurance released Bulletin 2022-5, which placed certain limitations on the use of AI and alternative data sets by the insurance industry. Bulletin 2022-5, among other things, explained that insurance companies must avoid discrimination that can result from the use of AI as well as big data for activities such as underwriting, marketing, rating, processing claims, and investigating suspected fraud concerning any insurance transaction that impacts California residents. The Colorado Commissioner of Insurance issued final enabling regulations to Colorado's algorithmic accountability in insurance statute, which went into effect on November 14, 2023; the regulations are aimed at addressing the potential for unfair bias against certain protected classes. Additional states are also taking action, which may result in further non-uniform legislation impacting how data, algorithms, models, automated decision-making tools and AI in general can or should be used across insurance practices. Moreover, U.S. States, including Colorado, Utah and California, have passed comprehensive general AI legislation, and many other states are considering such legislation to govern and manage risk of the development and deployment of AI technologies.

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<u>UK Privacy and Data Protection Laws</u> 

The main law regulating the processing of personal information (i.e., data which identifies an individual or from which an individual is identifiable) in the UK is the General Data Protection Regulation ("UK GDPR"). Following Brexit, the European Union General Data Protection Regulation 2016/679 ("EU GDPR") no longer applies directly in the UK, but it has been implemented into UK national law through the UK GDPR and the UK Data Protection Act 2018 ("DPA2018"). Accelerant is subject to the applicable requirements of the UK GDPR and DPA2018 where processing personal information in the context of the activities of Accelerant's UK establishment, and where processing personal information of individuals in the UK by an Accelerant establishment outside the UK where the processing is related to the provision of our services and products within the UK, or the monitoring of UK individuals' behavior in the UK.

The UK GDPR requirements, by virtue of the EU GDPR pre-Brexit and by virtue of the UK GDPR post-Brexit, apply in the UK since May 25, 2018. The UK GDPR imposes a number of obligations on controllers and processors and provides for rights for data subjects including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accountability and transparency requirements, which require controllers to demonstrate and record compliance
with the UK GDPR and to provide more detailed information to data subjects regarding processing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhanced requirements for obtaining valid consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to consider data protection as any new products or services are developed and to limit the amount
of personal information processed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to comply with data protection rights of data subjects including a right of access to and
rectification of personal information, obtain restriction of processing or to object to processing of personal information and a right to ask for a copy of personal information to be provided to a third-party in a useable format and erasing personal
information in certain circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to implement technical and organizational security measures to safeguard personal information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to report certain personal data breaches to the relevant supervisory authority without undue delay
(and no later than 72 hours where feasible).

In addition, the EU GDPR prohibits the transfer of personal information from the EEA to a country outside the EEA (including, since Brexit, the UK) that the European Commission does not recognize as having "adequate" data protection in place, unless a data transfer mechanism in accordance with the EU GDPR (such as standard contractual clauses or "SCCs") has been put in place, or unless a derogation can be relied upon under the EU GDPR. Please see more detail below under "EU Privacy and Data Protection Laws."

In June 2021, the European Commission adopted an adequacy decision for the UK, which allows for the transfer of personal information from the EEA to the UK without the need for a data transfer mechanism to be put in place. The UK also recognizes the EU as an adequate jurisdiction, meaning that transfers of personal information from the UK to the EU do not require a data transfer mechanism. For transfers of personal information from the EU to the U.S., the European Commission has adopted the EU-U.S. Data Privacy Framework ("DPF") to legitimize transfers to entities in the U.S. that have certified to the DPF (please see more detail below under "EU Privacy and Data Protection laws").

The UK GDPR imposes similar restrictions to the EU GDPR on transfers of personal information from the UK to third countries outside the UK that the UK does not consider adequate. As indicated above, the UK recognizes the EU as "adequate." The UK Government has published its own form of the EU SCCs, known as the International Data Transfer Agreement and an International Data Transfer Addendum to the new EU SCCs. The UK Information Commissioner's Office ("ICO") has also published its own version of the TIA, although

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entities may choose to adopt either the EU or UK-style TIA. Further, in September 2023, the UK Secretary of State for Science, Innovation and Technology established a UK-U.S. data bridge (i.e., a UK equivalent of the Adequacy Decision) and adopted UK regulations to implement the UK-U.S. data bridge ("UK Adequacy Regulations"). Personal data can therefore be transferred from the UK under the UK-U.S. data bridge through the UK extension to the DPF to organizations self-certified under the UK extension to the DPF.

The EU and UK GDPR both provide for fines for serious breaches of up to the higher of 4% of annual worldwide turnover or €20 million (under the EU GDPR) or £17.5 million (under the UK GDPR).

In addition to the GDPR, data privacy related to electronic communications (including, the use of cookies and the sending of direct marketing) is regulated by the UK Privacy and Electronic Communications Regulations ("PECR"). The UK ICO is responsible for enforcing PECR and has the power to take various types of enforcement action, including criminal prosecution and non-criminal enforcement (such as monetary penalties of up to £500 thousand issued against the organization or its directors).

Compliance with the UK GDPR and PECR may cause Accelerant to incur substantial operational and compliance costs and may otherwise impact business practices. Further, there is a risk that the compliance measures will not be implemented correctly or that individuals within the business will not be fully compliant with the new measures. The UK ICO is competent to independently interpret, apply, and enforce the UK GDPR and PECR, and despite any compliance measures implemented, it is not excluded that Accelerant may be faced with significant administrative, monetary, and other sanctions, civil or criminal action, as well as reputational damage which may have a material adverse effect on the operations, financial condition, and prospects of the business.

<u>UK Cybersecurity, AI and Digital Data Laws</u> 

Cybersecurity requirements are laid down in various UK laws, the key ones being **(i)** the UK GDPR (which requires controllers and processors when processing personal information to implement appropriate technical and organizational measures to ensure a level of security appropriate to the data protection risk) and **(ii)** the UK Network and Information Systems Regulation 2018 ("NIS Regulations").

The UK GDPR does not provide for a specific set of cybersecurity requirements or measures to be implemented, but rather expects a controller/processor to take appropriate action in accordance with the then-current risk, the state of the art, the costs of implementation and the nature, scope, context and purposes of the processing. The UK GDPR however does explicitly require that controllers notify personal data breaches, within the meaning of the UK GDPR, without undue delay and in any event within 72 hours after becoming aware of it, to the UK ICO, unless the breach is unlikely to result in a risk to the rights and freedoms of individuals. In addition, controllers are required to notify the individuals concerned of any personal data breach without undue delay when the personal data breach is likely to result in a high risk to the rights and freedoms of individuals. Processors are required to notify the controller without undue delay after becoming aware of a personal data breach.

The NIS Regulations apply to "operators of essential services" ("OES") and "relevant digital service providers" ("RDSP") and it was announced in January 2022, that the NIS Regulations will be updated to also cover "managed service providers" ("MSP") and potentially other digital service providers as well. The NIS Regulations require that appropriate and proportionate technical and organizational measures are implemented to manage the risk of network and information systems, and impose requirements related to incident handling and notification in relation to incidents with significant disruptive effect. The UK ICO is the competent authority to enforce the NIS Regulations and may issue fines of up to £17 million and take other action following non-compliance.

In addition, the UK is developing a number of new digital data, cybersecurity, and AI laws akin to the ones being developed in the EU (see "EU Privacy and Data Protection Laws" below). For instance, the UK Financial

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Services and Markets Act ("FSMA") which contains a number of requirements similar in scope and impact to the EU DORA (as defined below) and the UK Online Safety Act ("OSA") which is similar in scope and impact to the EU DSA (as defined below). In relation to AI, the UK has adopted a "soft law" approach to AI regulation meaning it has not adopted formal legislation to regulate AI but has adopted soft law guidelines in the form of a White Paper (although the UK government has confirmed it will introduce AI legislation in 2025). Accelerant is assessing the scope of application, impact, and risk of these proposed UK laws on Accelerant's business and will continue to assess this moving forward.

<u>EEA Privacy and Data Protection Laws</u> 

In the EEA, the EU GDPR is the key legislation to govern personal information processing activities and has the same scope of application as set out above for the UK GDPR. The EU GDPR has been implemented into EEA Member State law, which supplements the EU GDPR. Accelerant is subject to the applicable requirements of the EU GDPR and applicable EEA Member State implementing legislation where processing personal information in the context of the activities of Accelerant's EEA establishments, and where processing personal information of individuals in the EEA by an Accelerant establishment outside the EEA where the processing is related to the provision of our services and products within the EEA, or the monitoring of EEA individuals' behavior in the EEA.

The EU GDPR has applied since May 2018, and imposes a number of obligations on controllers and processors and provides for rights for data subjects including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accountability and transparency requirements, which require controllers to demonstrate and record compliance
with the GDPR and to provide more detailed information to data subjects regarding processing of their personal data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhanced requirements for obtaining valid consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to consider data protection as any new products or services are developed and to limit the amount
of personal information processed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to comply with data protection rights of data subjects including a right of access to and
rectification of personal information, obtain restriction of processing or to object to processing of personal information and a right to ask for a copy of personal information to be provided to a third-party in a useable format and erasing personal
information in certain circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to implement technical and organizational security measures to safeguard personal information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obligations to report certain personal data breaches to the relevant supervisory authority without undue delay
(and no later than 72 hours where feasible).

In addition, the EU GDPR prohibits the international transfer of personal information from the EEA to a country outside the EEA that the European Commission does not recognize as having "adequate" data protection in place, unless a data transfer mechanism in accordance with the EU GDPR (such as SCCs) has been put in place, or unless a derogation can be relied upon under the EU GDPR.

In July 2023, the European Commission adopted its Final Implementing Decision granting the U.S. adequacy (the "Adequacy Decision") for EU-U.S. transfers of personal data for entities self-certified to the EU-U.S. Data Privacy Framework ("DPF"). Entities relying on EU SCCs for transfers to the U.S. are also able to rely on the analysis in the Adequacy Decision as support for their TIA regarding the U.S. laws assessment.

The EU GDPR provides for fines for serious breaches of up to the higher of 4% of annual worldwide turnover or €20 million. The EU GDPR identifies a list of factors to consider when determining the level of fines to impose (including the nature, gravity, and duration of the infringement). Data subjects also have a right to compensation for financial or non-financial losses (e.g., distress). EEA Member State data protection authorities are responsible for enforcing the EU GDPR.

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In addition to the EU GDPR, data privacy related to electronic communications (including, the use of cookies and the sending of direct marketing) is regulated in the EU by the EU ePrivacy Directive, as implemented into EU Member State national legislation. National competent authorities are responsible for enforcing the ePrivacy Directive as implemented into national law. Enforcement action, including maximum fines and other penalties, are also provided for in EEA Member State law.

Compliance with the EU GDPR and ePrivacy Directive may cause Accelerant to incur substantial operational and compliance costs and may otherwise impact business practices. Further, there is a risk that the compliance measures will not be implemented correctly or that individuals within the business will not be fully compliant with the new measures. The EEA Member State authorities are competent to independently interpret, apply, and enforce the EU GDPR and ePrivacy Directive, and despite any compliance measures implemented, it is not excluded that Accelerant may be faced with significant administrative, monetary, and other sanctions, civil or criminal action, as well as reputational damage which may have a material adverse effect on the operations, financial condition, and prospects of the business.

<u>EEA Cybersecurity, AI and Digital Data Laws</u> 

Similar to the UK, EU cybersecurity requirements are at present mainly provided for in (i) the EU GDPR (which requires controllers and processors when processing personal information to implement appropriate technical and organizational measures to ensure a level of security appropriate to the data protection risk) and (ii) the EU Network and Information Systems Security 2 Directive ("NISD2") as implemented into EU Member State legislation.

The EU GDPR does not provide for a specific set of cybersecurity requirements or measures to be implemented, but rather expects a controller/processor to take appropriate action in accordance with the then-current risk, the state of the art, the costs of implementation and the nature, scope, context and purposes of the processing. The EU GDPR however does explicitly require that controllers notify personal data breaches, as described above.

On January 17, 2023, the revised EU Network and Information Systems Security 2 Directive ("NISD2") entered into force and takes full effect following implementation into national EU Member State law (for which the deadline was set at October 17, 2024). NISD2 imposes more stringent cybersecurity and incident reporting requirements on entities operating in so-called "essential" or "important" entities which include ICT managed service providers ("MSP") and cloud service providers.

NISD2 empowers the EU Member States to define all rules regarding penalties applicable to infringements, provided that they are effective, proportionate, and dissuasive. Rather than establishing a maximum, NISD2 states that any maximum fine which national implementing legislation provides for should at least be set at €10 million or 2% of total worldwide turnover, whichever is higher, where essential entities are concerned. Other sanctions may include (i) a temporary suspension to provide services in the EU (by suspending relevant authorizations/ certifications), (ii) an order to make public certain elements of the infringement and/or inform customers, and (iii) injunctions to immediately cease infringing conduct. Importantly, NISD2 also provides that senior members of staff can be held personally liable, and they can be faced personally with administrative fines or be temporarily suspended from exercising managerial functions at the legal representative or chief executive officer level.

In addition, in the EEA a number of new laws related to AI, digital data, and cybersecurity have recently entered into force, are expected to enter into force in the foreseeable future, or have been proposed and are being considered.

The EU Digital Operational Resilience Act ("DORA") took effect in January 2025. DORA applies to Accelerant Insurance Europe SA and Accelerant Agency Limited, both in relation to their EEA insurance activities as well as in relation to their service offering of information and communication technology ("ICT")

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services to other financial entities in the EEA such as insurance undertakings. DORA imposes regulatory obligations to reinforce the digital operational resilience of entities operating in the financial services industry, including the insurance industry, and to adequately manage and remediate the risk related to the engagement of ICT third-party service providers.

The obligations imposed by DORA on financial entities including insurance undertakings and certain insurance intermediaries include, among others, a governance and control framework to ensure effective and prudent management of ICT risk, measures to adequately protect ICT systems, to detect anomalous activities, and to ensure timely incident response and recovery, the establishment of an ICT incident management framework, and a framework to assess and address risk related to the engagement of ICT third-party service providers. DORA only imposes direct regulatory obligations on ICT third-party service providers that are considered "critical" within the meaning of DORA – which mainly relate to having in place measures to manage risk related to ICT security, such as to ensure data security and the physical security of premises, facilities and data centers, the implementation of ICT business continuity, incident response and recovery policies, and the prompt reporting of ICT incidents to financial entities. Non-critical ICT third-party service providers are only indirectly impacted by DORA, by virtue of the mandatory contractual terms that DORA requires financial entities to implement with ICT third-party service providers.

DORA does not provide for minimum or maximum monetary sanctions but empowers EEA Member State competent authorities to enforce DORA and determine the appropriate sanction – on the basis of the factors set out in DORA, including that the penalty must be, e.g., aligned with the gravity and duration of the infringement. Such a sanction could be of administrative or criminal nature, and DORA also provides that individual members of the management body can be held personally liable for any non-compliance with DORA.

On November 16, 2022, the EU Digital Services Act ("DSA") entered into force and became fully applicable on February 17, 2024. The DSA applies, among others, to providers of intermediary services including online platform services. The DSA mainly imposes new content moderation obligations to online platform service providers in relation to the content that is generated, stored, and hosted by the platform's users.

The DSA provides for administrative monetary fines of up to 6% of annual worldwide turnover and establishes a private right of action on the basis of infringements of the DSA. The DSA is enforced at the national EU Member State level.

The EU has developed a standalone law to govern the offering and use of AI systems in the EU (the "AI Act") which entered into force in August 2024 and will gradually enter into application (and become enforceable) as set out below. The AI Act imposes regulatory requirements onto AI system providers, importers, distributors, product manufacturers and users ("deployers") of AI systems, in accordance with the level of risk involved with the AI system ("unacceptable", "high", "limited", and "minimal" risk). Unacceptable-risk AI systems are banned from being offered and used in the EU, and high-risk AI systems are subject to a set of regulatory requirements under the AI Act including to establish quality and post-marketing monitoring and risk assessment systems, requirements related to the training of AI systems and training data, and requirements related to human oversight. Limited-risk AI systems are subject mainly to transparency requirements only and minimal-risk AI systems are not subject to obligations under the AI Act. In the AI Act's text, general-purpose AI models have also been made subject to a number of specific requirements – mostly akin to the requirements that apply to high-risk AI systems under the AI Act.

The AI Act will become enforceable in a gradual manner - depending on the regulatory requirement in question, and ranging from six to 36 months following entry into force of the AI Act (i.e., between February 2, 2025 to August 2, 2027). Non-compliance with the AI Act may be subject to regulatory fines of up to the higher of €35 million or 7% of annual worldwide turnover. In parallel, in December 2024, the EU Product Liability Directive, which regulates non-contractual and non-fault based liability for defective products, including digital products and AI, entered into force.

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<u>Canada Privacy and Data Protection Laws</u> 

In Canada, the *Personal Information Protection and Electronic Documents Act* ("PIPEDA") governs privacy matters at the federal level. It applies to federally regulated organizations and to commercial activities in all Canadian provinces in which there is no controlling provincial privacy law. Alberta, British Columbia, and Quebec have enacted their own private sector privacy laws, which apply to the processing activities undertaken by organizations operating within their respective jurisdictions.

PIPEDA and its provincial counterparts share similarities with the GDPR, particularly but not only, in terms of accountability obligations. However, unlike the GDPR, Canadian privacy laws are primarily consent-based, which means that processing of personal information can only proceed on the basis of consent (which can be express or implied), unless a statutory exception (from having to obtain consent) applies. PIPEDA and its provincial counterparts impose a number of obligations on accountable organizations (similar to the concept of "controller" under the GDPR) and service providers (similar to the concept of "processor" under the GDPR). These laws also confer certain rights on data subjects (individuals) similar to those provided for under the GDPR, such as the right to access and right to request correction of their personal information, though the scope of such rights is more limited than under the GDPR.

<u>Cayman Islands Data Protection Laws</u> 

We have certain duties under the Data Protection Act (As Revised) of the Cayman Islands, (the "DPA"), based on internationally accepted principles of data privacy. The DPA establishes a data protection framework for the processing, storage and protection of personal data that shares several similarities with the UK and EU GDPR due to the Cayman Islands' aim to align with global data protection standards and practices.

*Privacy Notice* 

This privacy notice puts our shareholders on notice that through your investment into us you will provide us with certain personal information which constitutes personal data within the meaning of the DPA, or personal data.

*Investor Data* 

We will collect, use, disclose, retain and secure personal data to the extent reasonably required only and within the parameters that could be reasonably expected during the normal course of business. We will only process, disclose, transfer or retain personal data to the extent legitimately required to conduct our activities of on an ongoing basis or to comply with legal and regulatory obligations to which we are subject. We will only transfer personal data in accordance with the requirements of the DPA, and will apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction or damage to the personal data.

In our use of this personal data, we will be characterized as a "data controller" for the purposes of the DPA, while our affiliates and service providers who may receive this personal data from us in the conduct of our activities may either act as our "data processors" for the purposes of the DPA or may process personal information for their own lawful purposes in connection with services provided to us.

We may also obtain personal data from other public sources. Personal data includes, without limitation, the following information relating to a shareholder and/or any individuals connected with a shareholder as an investor: name, residential address, email address, contact details, corporate contact information, signature, nationality, place of birth, date of birth, tax identification, credit history, correspondence records, passport number, bank account details, source of funds details and details relating to the shareholder's investment activity.

*Who this Affects* 

If you are a natural person, this will affect you directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships) that provides us with personal data

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on individuals connected to you for any reason in relation your investment in us, this will be relevant for those individuals and you should transit the content of this Privacy Notice to such individuals or otherwise advise them of its content.

*How We May Use a Shareholder's Personal Data* 

We may, as the data controller, collect, store and use personal data for lawful purposes, including, in particular: (i) where this is necessary for the performance of our rights and obligations under any agreements; (ii) where this is necessary for compliance with a legal and regulatory obligation to which we are or may be subject (such as compliance with anti-money laundering and Foreign Account Tax Compliance Act and Common Reporting Standard requirements); and/or (iii) where this is necessary for the purposes of our legitimate interests and such interests are not overridden by your interests, fundamental rights or freedoms.

Should we wish to use personal data for other specific purposes (including, if applicable, any purpose that requires your consent), we will contact you.

*Why We May Transfer Your Personal Data* 

In certain circumstances we may be legally obliged to share personal data and other information with respect to your shareholding with the relevant regulatory authorities such as the Cayman Islands Monetary Authority or the Tax Information Authority. They, in turn, may exchange this information with foreign authorities, including tax authorities.

We anticipate disclosing personal data to persons who provide services to us and their respective affiliates (which may include certain entities located outside the U.S., the Cayman Islands or the European Economic Area), who will process your personal data on our behalf.

*The Data Protection Measures We Take* 

Any transfer of personal data by us or our duly authorized affiliates and/or delegates outside of the Cayman Islands shall be in accordance with the requirements of the DPA.

We and our duly authorized affiliates and/or delegates shall apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of personal data, and against accidental loss or destruction of, or damage to, personal data.

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**PRINCIPAL AND SELLING SHAREHOLDERS** 

The following table sets forth information regarding the beneficial ownership of our Class A common shares and our Class B common shares as of June 30, 2025, after giving effect to the re-designation of shares following the Accelerant Holdings LP Distribution by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person or entity who is known by us to beneficially own more than 5% of our outstanding Class A common
shares or our Class B common shares (including any securities convertible or exchangeable within 60 days into Class A common shares or our Class B common shares, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of the selling shareholders in this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors and named executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group.

In accordance with the rules of the SEC, beneficial ownership includes voting or investment power with respect to securities and includes the shares issuable pursuant to share options that are exercisable within 60 days of June 30, 2025, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range on the cover page of this prospectus). Shares issuable pursuant to share options are deemed outstanding for computing the percentage of the person holding such options but are not outstanding for computing the percentage of any other person. Holders of our Class B common shares are entitled to convert their Class B common shares on a one-for-one basis for Class A common shares at any time at the option of the holder. Accordingly, for the purposes of this table, each holder of Class B common shares is deemed to be the beneficial owner of an equal number of Class A common shares (in addition to any other Class A common shares beneficially owned by such holder), which is reflected in the tables below under the columns "Number of Class A Common Shares" and "Percentage" for the Class A common shares. The number of Class A common shares outstanding after this offering includes 20,276,280 Class A common shares being offered for sale by us and the selling shareholders in this offering. The percentage of beneficial ownership prior to this offering is based on 80,866,854 Class A common shares and 118,843,429 Class B common shares outstanding as of June 30, 2025. The percentage of beneficial ownership after this offering assumes both no exercise and full exercise of the underwriters' option to purchase up to an additional 4,342,105 Class A common shares from and the selling shareholders. Unless otherwise indicated, the address for each listed shareholder is: c/o Accelerant Holdings, 1 Tollgate Business Park, Tollgate West, Colchester C03 8AB, United Kingdom. To our knowledge, except as indicated in the footnotes to this table and pursuant to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all of their Class A common shares and Class B common shares.

The following table does not reflect any Class A common shares that may be purchased pursuant to our directed share program described under "Underwriters – Directed Share Program."

The voting rights of the principal holders of our Class A common shares do not differ from the voting rights of the other holders of shares of our Class A common shares.

Because the number of Class A and Class B common shares distributed in the Accelerant Holdings LP Distribution as well as the proportion of shares being sold by the each of the selling stockholders in this offering will be determined by reference to the initial public offering price in this offering, a change in the assumed initial public offering price would have a corresponding impact on the amount of shares sold by each selling stockholder group. All numbers in the tables below are based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range on the cover page of this prospectus).

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** | **Class A Common Shares Beneficially Owned After this<br>Offering <sup>(1)(2)</sup>** |
|  | **Class A**<br>**Common Shares Beneficially<br>Owned Before this<br>Offering** | **Class A**<br>**Common Shares Beneficially<br>Owned Before this<br>Offering** | | **Assuming<br>No Exercise of the Option to<br>Purchase Additional Class A<br>Common Shares** | **Assuming<br>No Exercise of the Option to<br>Purchase Additional Class A<br>Common Shares** | **Assuming**<br>**Full Exercise of the Option to<br>Purchase Additional Class<br>A**<br>**Common Shares** | **Assuming**<br>**Full Exercise of the Option to<br>Purchase Additional Class<br>A**<br>**Common Shares** |
| **Name of Beneficial Owner** | **Number of<br>Class A<br>Common**<br>**Shares** | **Percentage** |<br>**Number<br>of Class A<br>Common<br>Shares<br>Being<br>Offered** | **Number of<br>Class A**<br>**Common<br>Shares** | **Percentage** | **Number of**<br>**Class A**<br>**Common**<br>**Shares** | **Percentage** |
|  **5% Shareholders:** |  |  |  |  |  |  |  |
|  ACP Insurance Management, LLC<sup>(3)</sup> | 103431939 | 51.7% |  | 100480382 | 45.7% | 96138277 | 43.7% |
|  ACP Accelerant Holdings LP<sup>(3)</sup> | 91423836 | 45.8% |  | 91423836 | 41.6% | 87473095 | 39.8% |
|  Eldridge Accelerant Funding, LLC<sup>(4)</sup> | 10495279 | 5.3% | 3574708 | 6920571 | 3.1% | 6920571 | 3.1% |
|  **Directors and Named Executive Officers:** |  |  |  |  |  |  |  |
|  Jeff Radke<sup>(5)</sup> | 28303183 | 14.2% |  | 28303183 | 12.9% | 28303183 | 12.9% |
|  Christopher Lee-Smith<sup>(6)</sup> | 17242344 | 8.6% |  | 17242344 | 7.8% | 17242344 | 7.8% |
|  Frank O'Neill<sup>(7)</sup> | 7069020 | 3.5% |  | 7069020 | 3.2% | 7069020 | 3.2% |
|  Nancy Hasley | 1880313 | \* |  | 1880313 | \* | 1880313 | \* |
|  Kunal Arora |  |  |  |  |  |  |  |
|  Samuel Gaynor |  |  |  |  |  |  |  |
|  Wendy Harrington | 6297 | \* |  | 6297 | \* | 6297 | \* |
|  Paul Little |  |  |  |  |  |  |  |
|  Karen Meriwether |  |  |  |  |  |  |  |
|  Keoni Schwartz<sup>(3)</sup> |  |  |  |  |  |  |  |
|  Michael Searles |  |  |  |  |  |  |  |
|  **All executive officers and directors as a group<br>(13 persons)** | 55039452 | 27.5% |  | 55039452 | 25.0% | 55039452 | 25.0% |
|  **Other Selling Shareholders:** |  |  |  |  |  |  |  |
|  Entities affiliated with, or managed or advised by, Barings LLC<sup>(8)</sup> | 6257735 | 3.1% | 2144823 | 4112912 | 1.9% | 4112912 | 1.9% |
|  ACP Accelerant Co-Invest, LLC<sup>(3)</sup> | 5427971 | 2.7% |  | 5427971 | 2.5% | 5193409 | 2.4% |
|  ACP Accelerant Investment Holding Company, Ltd.<sup>(3)</sup> | 2951557 | 1.5% | 2951557 |  |  |  |  |
|  ACP Accelerant Investment Holding Company II, Ltd.<sup>(3)</sup> | 3628575 | 1.8% |  | 3628575 | 1.6% | 3471772 | 1.6% |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** | **Class B Common Shares Beneficially Owned After this Offering <sup>(1)</sup>** |
|  | **Class B Common Shares**<br>**Beneficially Owned before this**<br>**Offering** | **Class B Common Shares**<br>**Beneficially Owned before this**<br>**Offering** | **Class B Common Shares**<br>**Beneficially**<br>**Owned After this**<br>**Offering** | **Class B Common Shares**<br>**Beneficially**<br>**Owned After this**<br>**Offering** |
|  | **Number of Class B<br>Common Shares** | **Percentage** | **Number of Class B<br>Common Shares** | **Percentage** |
|  **<u>Name of Beneficial Owner</u>** |  |  |  |  |
|  **5% Shareholders:** |  |  |  |  |
|  ACP Insurance Management, LLC<sup>(3)</sup> | 103431939 | 87.0% | 96138277 | 80.9% |
|  ACP Accelerant Holdings LP<sup>(3)</sup> | 91423836 | 76.9% | 87473095 | 73.6% |
|  Eldridge Accelerant Funding, LLC<sup>(4)</sup> | 10495279 | 8.8% | 6920571 | 5.8% |
|  **Other Selling Shareholders:** |  |  |  |  |
|  Entities affiliated with, or managed or advised by, Barings LLC<sup>(8)</sup> | 6257735 | 5.3% | 4112912 | 3.5% |
|  ACP Accelerant Co-Invest, LLC<sup>(3)</sup> | 5427971 | 4.6% | 5193409 | 4.4% |
|  ACP Accelerant Investment Holding Company, Ltd.<sup>(3)</sup> | 2951557 | 2.5% |  |  |
|  ACP Accelerant Investment Holding Company II, Ltd.<sup>(3)</sup> | 3628575 | 3.1% | 3471772 | 2.9% |

---

\* Represents beneficial ownership of less than 1%. 

(1) Gives effect to the re-designation of shares following the Accelerant Holdings LP Distribution to take place
immediately prior to the consummation of this offering.

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(2) Pursuant to our amended and restated memorandum and articles of association, each holder of our Class B
common shares shall have the right to convert each of its shares of Class B common shares into one Class A common share, at any time, upon notice to us. Additionally, Class B common shares will automatically convert into Class A common shares, on a
one-for-one basis, upon transfer (other than a permitted transfer) of Class B common shares; or upon the earlier of (i) the time Class B common shareholders cease to own 50% of the Class B common shares owned by such holders, in aggregate,
immediately upon the closing of this offering or (ii) three years, after which time (in each case) there will be a single class of common shares with one vote per share. Other than Altamont Capital and any of its affiliates, no holder of common
shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded.

(3) Includes 91,423,836 shares held directly by ACP Accelerant Holdings, LP, which is a selling shareholder
in this offering, 5,427,971 shares held directly by ACP Accelerant Co-Invest, LLC, 2,951,557 shares held directly by ACP Accelerant Investment Holding Company, Ltd. and 3,628,575 shares held directly by ACP Accelerant Investment Holding
Company II, Ltd. ACP Accelerant Holdings, LP is the sole owner of ACP Accelerant Investment Holding Company, Ltd. and ACP Accelerant Investment Holding Company II, Ltd. Each of (i) ACP Insurance Management, LLC, as the general partner of ACP
Accelerant Holdings, LP and the managing member of ACP Accelerant Co-Invest, LLC, and (ii) Keoni Schwartz, as the sole owner and managing member of ACP Insurance Management, LLC, may be deemed to have voting and dispositive power over these shares,
but disclaim beneficial ownership over these shares except to the extent of their respective pecuniary interest therein, if any. The business address of each of ACP Accelerant Holdings, LP, ACP Insurance Management, LLC, ACP Accelerant Co-Invest,
LLC, ACP Accelerant Investment Holding Company, Ltd., ACP Accelerant Investment Holding Company II, Ltd. and Keoni Schwartz is 400 Hamilton Avenue, Suite 230, Palo Alto, CA 94301.

(4) Mr. Todd Boehly is the indirect controlling member of Eldridge Accelerant Funding, LLC, and, in such
capacity, may be deemed to have voting and dispositive power over the securities held by Eldridge Accelerant Funding, LLC. The address for Eldridge Accelerant Funding, LLC is 65 East 55th Street, Floor 29, New York, NY 10022.

(5) Mr. Radke has pledged all Class A common shares owned by him as security to a financial institution.

(6) Mr. Lee-Smith has pledged all Class A common shares owned by him as security to a financial institution.

(7) Mr. O'Neill has pledged all Class A common shares owned by him as security to a financial institution.

(8) Consists of 558,462 of our Class B common shares held by Barings BDC, Inc.; 348,473 of our Class B common
shares held by Barings Capital Investment Corporation; 558,462 of our Class B common shares held by Barings Private Credit Corporation; 250,999 of our Class B common shares held by Barings Global Special Situations Credit Fund 4 (Delaware),
L.P.; 1,422,330 of our Class B common shares held by Barings Global Special Situations Credit 4 (LUX) S.à r.l.; 322,124 of our Class B common shares held by Barings Capital Solutions Perpetual (DE) Series LLC – Series A; 339,078 of our
Class B common shares held by Barings Capital Solutions Perpetual (CA) Series LLC – Series A; 378,468 of our Class B common shares held by Barings Capital Solutions Perpetual (LUX) Series LLC – Series A; and 2,079,340 of our Class B common
shares held by Martello Re Limited. Barings LLC is an investment adviser registered with the SEC, acts as the investment adviser and/or sub-investment adviser to the entities, funds and accounts included in the prior sentence, and therefore has the
power to vote and dispose of the aggregate of such Class B common shares. Barings LLC expressly disclaims beneficial ownership of any securities reported herein except to the extent Barings LLC exercises voting or dispositive power with respect
to such securities. Bryan High is a managing director of the investment team at Barings LLC that manages the Class B common shares held, as applicable, by such Barings' advised and/or sub-advised entities, funds and accounts. Each of Barings
LLC and Mr. High expressly disclaims beneficial ownership of any securities reported herein except to the extent Barings LLC and Mr. High exercises voting or dispositive power with respect to such securities. The business address of Barings LLC and
Mr. High is 300 South Tryon, Suite 2500, Charlotte, NC 28202.

The number of Class A and Class B common shares distributed in the Accelerant Holdings LP Distribution as well as the proportion of shares being sold by the each of the selling shareholders in this offering will be determined by reference to the initial public offering price in this offering. The following table shows the percentage of the 4,342,105 shares sold by the selling shareholders at the initial public offering prices for the Class A common shares shown below:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | $18.0 | $19.0 | $20.0 | $21.0 | $22.0 |
|  Entities advised by or affiliated with Altamont Capital | 35.9% | 34.0% | 32.3% | 30.8% | 29.4% |
|  Eldridge Accelerant Funding, LLC | 40.0% | 41.2% | 42.3% | 43.3% | 44.1% |
|  Entities affiliated with, or managed or advised by, Barings LLC | 24.0% | 24.7% | 25.4% | 26.0% | 26.5% |
|  Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |

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**CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS** 

The following is a description of transactions since January 1, 2022 to which we were a party in which the amount involved exceeded or will exceed $120 thousand, and in which any of our executive officers, directors, or holders of more than 5% of any class of our voting securities, or an immediate family member thereof, had or will have a direct or indirect material interest.

**Related-Party Transaction Policy** 

We have established a written related-party transaction policy that provides procedures for the review of transactions in excess of $120 thousand in any year between us and any covered person having a direct or indirect material interest with certain exceptions. Covered persons include any executive officers, directors, or holders of more than 5% of any class of our voting securities, or an immediate family member thereof. Any such related-party transactions shall require advance approval by a majority of our independent directors or by our audit committee.

**Mission Underwriters** 

Mission Underwriters is our MGA incubator, with operating entities in the U.S., the UK and EU, and provides start-up financing, underwriting capacity, and turnkey operational support to entrepreneurial underwriters seeking to launch their own MGAs. Mission US and Mission Europe were funded principally by loans we advanced in the form of subordinated debt and other working capital arrangements. In 2021, we supported the launch of Mission Underwriters in the U.S. by providing $7.9 million in start-up financing and certain back-office support. In 2022, we supported the launch of Mission Underwriters in the EU by providing $7.8 million in start-up financing and certain back-office support.

On May 1, 2024, Option Holdings exercised its call option to acquire all of the equity interests of Mission US for an exercise price of $119 thousand. Subsequently, on May 1, 2024, Accelerant Holdings acquired such equity interests, by merger, and contributed them to Mission Worldwide Holdings. As consideration, Accelerant Holdings issued 6,938 common shares to Accelerant Holdings LP which was equal to the value of Mission US. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Company's Class A and Class B convertible preference shares at the time such investments were made had relied on the inclusion of Mission Underwriters within the Company's results of operations, holders of the Company's Class A and B convertible preference shares received an additional 875 Class A convertible preference shares and 525 Class B convertible preference shares in aggregate, respectively, in each case without further consideration being paid. The total value of the common shares issued to Option Holdings was $7.0 million. Concurrently with Accelerant Holdings' acquisition of Mission US, Accelerant Holdings exercised its call option to acquire all of the equity of Mission Europe for €1.17 thousand, which together with Mission US became wholly-owned subsidiaries of Mission Worldwide Holdings, a subsidiary of Accelerant Holdings.

**Accelerant Holdings LP Fund Transfers** 

In September 2021 and December 2021, respectively, Accelerant Holdings LP subscribed for interests in certain investment funds, as a consequence of which Accelerant Holdings LP held a limited partnership interest in each of those funds (the "Interests"). Effective June 2022, Accelerant Holdings LP transferred and assigned to Accelerant Holdings all of Accelerant Holdings LP's rights and obligations with respect to the Interests as set out in those partnership and related ancillary agreements.

**Reserv** 

The Company is an investor in certain funds invested in Reserv, a Delaware company operating as a TPA ("Reserv"). Jeff Radke, our CEO, serves as a director of Reserv. In addition, our Head of Claims invested in Reserv, purchasing a less than 0.1% interest in Reserv. Commencing in the fourth quarter 2022 Reserv was engaged by an Accelerant Member to provide TPA services to it.

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Pursuant to a warrant dated June 23, 2022, we are entitled to purchase shares of Reserv at a purchase price of $0.66667 per share, equal to up to 10% of Reserv's fully diluted capitalization (including the conversion of all of Reserv's outstanding convertible securities, options and shares reserved under any stock option plan). The warrant is exercisable upon the earliest of (i) an initial public offering by Reserv, (ii) the acquisition of Reserv or (iii) June 23, 2027. The number of shares issuable is dependent on Reserv's achievement of certain cumulative revenue target milestones in a series of three tranches.

**Hadron** 

Hadron Specialty Insurance Company ("Hadron US") is a U.S. based and Arkansas-domiciled E&S carrier in formation. Hadron UK Holdings Limited ("Hadron UK" and, together with Hadron US, "Hadron") is a private company limited by shares and formed under the laws of England and Wales. Sponsored by Altamont Capital, Hadron is a fronting organization focused on connecting specialty underwriting and distribution with reinsurance capacity. We are Hadron's first strategic partner. In connection with the establishment of Hadron in 2023, we advanced funds to Hadron of $577 thousand, which amount settled, by way of reimbursement, in the fourth quarter of 2023. Keoni Schwartz and Sam Gaynor, both members of our Board of Directors, serve on the board of directors of Hadron Holdings GP. For the three months ended March 31, 2025, Hadron insured $122.9 million of Risk Exchange premium.

**Augment** 

Augment Risk Services, LLC ("Augment"), a Delaware limited liability company, is a Florida reinsurance intermediary broker sponsored by Altamont Capital, with a focus on designing and placing tailored risk capital and reinsurance solutions. The Company engages Augment to broker certain of its reinsurance coverage with third-party reinsurers on the Risk Exchange. Augment has received $4.1 million, $14.7 million and $0.8 million in brokerage commission from those third-party reinsurers for coverage placed during the three months ended March 31, 2025, and the years ended December 31, 2024 and 2023, respectively. Accelerant expects to continue to utilize Augment to broker subsequent third-party reinsurance placements in the future.

**Tribute Specialty** 

In February 2023, Mission US agreed to invest up to $1.5 million as part of seed capital funding in Tribute Specialty Holdings, LLC, a Delaware limited liability company ("Tribute"). Under the terms of the transaction, Mission US owns 100% of the Class A Units of Tribute, which represents approximately 36% of the voting power; Protecdiv Tribute Holdings, LLC ("Protecdiv") owns 100% of the Class B Units of Tribute, which represents approximately 45% of the voting power; and Tribute management will own 100% of the Class M Units of Tribute, which represents approximately 17% of the voting power. In early 2025, the Tribute board determined the likelihood of the venture achieving meaningful revenue was remote, and thus determined to wind down operations in the foreseeable future. On or about April 11, 2025, Mission US sold its interests in Tribute to Protecdiv for nominal consideration.

One of our directors, Paul Little, is a director and officer of Protecdiv's ultimate parent company, Protecdiv, Inc., in which he is employed as Protecdiv, Inc.'s Chief Operating Officer and owns 5% of the equity of Protecdiv, Inc. Mr. Little serves as Secretary of Tribute and is a manager on the Board of Managers of Tribute.

**Indica Limited** 

During the years ended December 31, 2022 and 2021, we made payments of $0.4 million and $2.3 million, respectively, to Indica Consulting Ltd. ("Indica Limited"), a services company wholly-owned and controlled by Jeff Radke, the CEO, for corporate services received. These corporate services involved overseeing all aspects of our business, including developing and executing our business strategy, managing our business operations and affairs, and implementing the directives of our Board of Directors. We did not incur any expenses or make any payments to Indica Limited in 2023, 2024 or during the three months ended March 31, 2025.

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**Accelerant Holdings LP** 

During the year ended December 31, 2022, we provided $3.3 million of short-term financing to Accelerant Holdings LP (there was no such short-term financing provided for the years ended December 31, 2024 and 2023). As of March 31, 2025, December 31, 2024 and 2023, the outstanding balance of the short-term financing to Accelerant Holdings LP was $7.3 million, $7.6 million and $7.1 million, respectively. The balance held is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

We had accounts payable with Accelerant Holdings LP of $0.7 million and $0.9 million, primarily relating to legal costs, for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively (there was no accounts payable as of December 31, 2023).

**Altamont Capital** 

During the three months ended March 31, 2025 and the years ended December 31, 2024, 2023 and 2022, the Company incurred expenses with Altamont Capital for legal, advisory and out of pocket expenses of $2.1 million, $0.2 million, $2.8 million and $3.7 million, respectively. The Company incurred such expenses with Altamont Capital for providing financial, managerial, and operational advice to the Company in connection with our day-to-day operations, including, but not limited to, the development and implementation of strategies for improving the operating, marketing and financial performance of the Company and our subsidiaries. Additionally, Altamont Capital advised on the negotiation and consummation of agreements necessary to provide the Company with financing which supported acquisition transactions involving the Company and our subsidiaries. A Management Services Agreement between Accelerant Holdings LP and Altamont Capital Management, LLC, dated February 19, 2019 (the "MSA") sets out terms on which, among other things, the Company has compensated Altamont Capital Management, LLC for its services. During July 2025, the Company agreed to pay Altamont Capital a one-time termination fee of $25 million upon the successful consummation of this offering, at which point the MSA will be terminated.

**Accelerant Risk Exchange, LLC** 

As of February 2025, Accelerant Risk Exchange LLC ("Accelerant Risk Exchange") employs Jeff Radke, our Co-Founder and Chief Executive Officer, and Dave Gronski, our Head of Actuarial. The Accelerant Risk Exchange is comprised of Common Units held by Accelerant Holdings (Cayman) Ltd., Series A Preferred Units and Series B Preferred Units (together, the "Preferred Units"). Their employment by the Accelerant Risk Exchange is paid through (i) cash base salary and (ii) quarterly dividends on the Preferred Units, which through the first two quarters of 2025 equaled $360,065 for Mr. Radke and $175,000 for Mr. Gronski.

The Preferred Units rank senior to the Common Units, have no voting rights or other rights to participate in management, and are entitled to receive distributions from the current profits of the Company, if any, as determined by the Accelerant Risk Exchange Board of Managers. The Preferred Units are also redeemable at any time. The members of the Board of Managers of the Accelerant Risk Exchange are Jeff Radke, Dave Gronski and Matt Sternberg, our Chief Operating Officer, Risk Exchange.

**Preference Share Issuances** 

<u>December 2024 Class C Convertible Preference Share Issuance</u> 

In December 2024, the Company issued an aggregate amount of 66,411 shares of Class C convertible preference shares for $125.2 million of gross proceeds (the "December 2024 Class C Convertible Preference Share Issuance"). The following table summarizes purchases of our Class C convertible preference shares in the December 2024 Class C Preference Share Issuance by our executive officers, directors and beneficial owners of more than 5% of any class of our voting securities and their affiliated entities. Other than as set forth below, none of our executive officers or directors or beneficial owners of more than 5% of any class of our voting securities purchased shares of our Class C convertible preference shares in the December 2024 Class C Convertible

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Preference Share Issuance. The Class C convertible preference shares are convertible to common shares subject to the occurrence of an initial public offering or other defined liquidation event. The Class C convertible preference shares also include a redemption feature, which may be exercised at the holders' option, as well as contingently issuable detachable warrants to acquire additional common shares if the initial public offering or liquidation event does not occur within two years following the Class C convertible preference shares date of issuance (the "Class C Issuance Date"). If an initial public offering or liquidation event occurs within two years following the Class C Issuance Date, the warrants will not be issued. However, if an initial public offering or liquidation event does not occur by the second anniversary of the Class C Issuance Date, holders of such shares will receive 58,331 detachable warrants (42,902 warrants with an exercise price approximating 75% of the independently determined fair value of the Company as of the Class C Issuance Date (such reference valuation, the "Issuance Date Valuation") plus 15,429 warrants with an exercise price approximating 150% of the Issuance Date Valuation). The Company negotiated the securities' multi-year redemption, conversion and warrant features to address capital requirements associated with the Company's high growth trends and the uncertainty of the timing and success of any initial public offering or liquidation event.

A determination of whether to redeem or convert the Class C convertible preference shares will be in the discretion of the individual investors and may depend on the highest economic value realizable to them at the date of the initial public offering or liquidation event. If holders elect to convert, they will receive a number of our Class A common shares and Class B common shares, as applicable, equivalent in value to the number of Class C Convertible Preference Shares subject to conversion. If holders elect to redeem, they will receive 1.4 times and 1.5 times, respectively, their initial investment within the first one and two years following the December 2024 Class C Convertible Preference Share Issuance. After the second year, the value of the redemption will change in accordance with the accreted liquidation preference rates as defined below.

The Class C convertible preference shares are subject to an accumulating annual accreted liquidation preference equal to the greater of 12.5% or SOFR plus 750 basis points (subject to adjustment over time and never to exceed 17.0%). The holders of the Class C convertible preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class C convertible preference shares has not appreciated to equal the sum of the initial investment plus the aggregate accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

---

| | | |
|:---|:---|:---|
| **Name** | **Shares of Class C Convertible Preference Shares** | **Total Purchase Price** |
|  Barings and affiliated entities | 37129.70725 | $70000000 |
|  Eldridge Accelerant Funding, LLC | 11934.54876 | $22500000 |
|  ACP Accelerant Co-Invest, LLC | 10873.69998 | $20500000 |
|  MW XO Digital Finance Fund HoldCo, LTD | 2652.12195 | $5000000 |
|  Deer Park and affiliated entities | 1591.27317 | $3000000 |
|  Chris Lee-Smith | 742.59414 | $1400000 |
|  Nancy Hasley | 265.21219 | $500000 |
|  Frank O'Neill | 265.21219 | $500000 |

---

<u>December 2022 Class B Convertible Preference Share Issuance</u> 

In December 2022, the Company issued an aggregate amount of 148,803 shares of Class B convertible preference shares for $150.2 million of gross proceeds (the "December 2022 Class B Convertible Preference Share Issuance"). The following table summarizes purchases of our Class B convertible preference shares in the December 2022 Class B Preference Share Issuance by our executive officers, directors and beneficial owners of more than 5% of any class of our voting securities and their affiliated entities. Other than as set forth below, none of our executive officers or directors or beneficial owners of more than 5% of any class of our voting securities purchased shares of our Class B convertible preference shares in the December 2022 Class B Convertible

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Preference Share Issuance. The Class B convertible preference shares will convert into our Class A common shares and Class B common shares. The Class B convertible preference shares are subject to an accumulating annual accreted liquidation preference of 16%. The holders of the Class B convertible preference shares may withhold consent to an initial public offering or liquidation event if the value of the convertible preference shares have not appreciated to the sum of the initial investment and the aggregate accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

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| | | |
|:---|:---|:---|
| **Name**  | **Shares of Class B Convertible Preference Shares** | **Total Purchase Price** |
|  Barings and affiliated entities | 49530.35321 | $50000000 |
|  ACP Accelerant Co-Invest, LLC | 37147.76490 | $37500000 |
|  Deer Park and affiliated entities | 29718.2119 | $30000000 |
|  ACP Accelerant Investment Holding Company II, Ltd. | 22500.57376 | $22713924 |
|  MW XO Digital Finance Fund Holdco, LTD | 9906.07064 | $10000000 |
|  Nancy Hasley | 12.76175 | $12883 |

---

<u>January 2022 Class A Convertible Preference Share Issuances</u> 

In January 2022, occurring in two closings, the Company issued an aggregate amount of 66,866 Class A convertible preference shares for $66.9 million of gross proceeds (the "January 2022 Class A Convertible Preference Share Issuances"). The following table summarizes purchases of our Class A convertible preference share in the January 2022 Class A Convertible Preference Share Issuances by our executive officers, directors and beneficial owners of more than 5% of any class of our voting securities and their affiliated entities. Other than as set forth below, none of our executive officers or directors or beneficial owners of more than 5% of any class of our voting securities purchased shares of our Class A convertible preference shares in the January 2022 Class A Convertible Preference Share Issuances. 2,500 of these Class A convertible preference shares consisted of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by way of a $0.5 million loan funded by the Company. The Class A convertible preference shares will convert into our Class A common shares and Class B common shares. The Class A convertible preference shares are subject to an accumulating annual accreted liquidation preference of 8%. The holders of the Class A convertible preference shares may withhold consent to an initial public offering or liquidation event if the value of the convertible preference shares have not appreciated to the sum of the initial investment and the aggregate accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

---

| | | |
|:---|:---|:---|
| **Name**  | **Shares of Class A Convertible Preference Shares** | **Total Purchase Price** |
|  ACP Accelerant Co-Invest, LLC | 27500.0000 | $27500000 |
|  Barings and affiliated entities | 25000.0000 | $25000000 |
|  Nancy Hasley | 190.0000 | $190000 |
|  Frank O'Neill | 94.9886 | $94988 |
|  Wendy Harrington | 75.0000 | $75000 |

---

**Flywheel Re** 

Flywheel Re, an unconsolidated sidecar vehicle, was formed in 2022. In August 2022, entities affiliated with Barings LLC, along with other third-party investors, purchased an initial amount of preference shares from Flywheel Re and committed to purchase additional amounts of preference shares subject to certain conditions. The entities affiliated with Barings LLC purchased approximately 12,810,990 preference shares for a purchase price of $12.8 million in August 2022. The reinsurance treaty we entered into with Flywheel Re at its inception was for an initial three-year term, expiring in June 2025.

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In June 2025, upsized capital was raised from institutional investors, including entities affiliated with Barings LLC, to support business assumed by Flywheel Re during a multi-year risk period scheduled to end in March 2028. In connection with the June 2025 capital raise, the entities affiliated with Barings LLC committed to contribute up to $105 million in capital to support Flywheel Re over a three-year period.

The Company supported the formation of Flywheel Re and the subsequent capital raise through activities limited to engaging lead counsel and investment bankers and marketing the vehicle to prospective investors. In connection with each capital raise, the Company entered into quota share agreements, under which it cedes certain insured risks to Flywheel Re. The terms of the quota share agreements are consistent with our third-party coverage.

**2WJ, LLC** 

In connection with our acquisition of a majority position of one of our Members, 2WJ, LLC ("ARU") in May 2021, one of our subsidiaries entered into an amended and restated limited liability company agreement (the "Agreement") with ARU and the minority unitholder, There's A Way, LLC ("TAW"), under which we granted TAW an option, exercisable upon the later to occur of (i) May 2025 (four years following the date of the Agreement) and (ii) a change of control of Accelerant Holdings LP, to sell the remaining interests of ARU to us. Upon the closing of this offering, the Company expects TAW to exercise its option. The value of the option is equal to ARU's trailing twelve month EBITDA (as defined by GAAP) multiplied by 15. Further, as consideration for our purchase of the remaining interests of ARU, we expect to issue approximately 1,833,481 Class A common shares in satisfaction of this obligation that could occur approximately one to four weeks after the consummation of this offering.

**Directed Share Program** 

At our request, the underwriters have reserved up to 5% of the Class A common shares to be offered by this prospectus for sale, at the initial public offering price to all of our employees, including certain former and expected future employees, who are not our partners.

**Registration Rights Agreement** 

In connection with this offering, we intend to enter into a registration rights agreement with holders of our common shares, including Altamont Capital. The registration rights agreement will provide the holders with demand registration rights, including shelf registration rights, in respect of any of our Class A common shares beneficially owned by them, subject to certain conditions. In addition, in the event that we register additional Class A common shares for sale to the public following the completion of this offering, we will be required to give notice of such registration to each such member of the party to the agreement of our intention to effect such a registration, and, subject to certain limitations, include Class A common shares beneficially owned by them in such registration. We will be required to bear the registration expenses, other than underwriting- discounts and commissions and transfer taxes, associated with any registration of shares pursuant to the agreement. The registration rights agreement contains certain restrictions on the transfer of our Class A common shares including (i) transfers to any person, or affiliate of such person, engaged in a competitive business without the prior consent of our Board of Directors and (ii) transfers to one of our affiliates or to any person who would become our affiliate as a result of such transfer, unless the transferee agrees in writing to be bound by the terms of the registration rights agreement or we otherwise consent. The agreement will include customary indemnification provisions in favor of each shareholder and any person who is or might be deemed a control person, (within the meaning of the Securities Act and the Exchange Act) and related parties against certain losses and liabilities (including reasonable costs of investigation and legal expenses) arising out of or based upon any filing or other disclosure made by us under the securities laws relating to any such registration.

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**MANAGEMENT** 

**Executive Officers and Directors** 

The following table sets forth information about who we expect to serve as our executive officers and our directors, including their ages as of the date of this prospectus. With respect to our directors, each biography includes information regarding the experience, qualifications, attributes, or skills that caused our Board of Directors to determine that such person should serve as a director of our company.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  **Executive Officers** |  |  |
|  Jeff Radke<sup>(2)</sup> | 57 | Co-Founder, Chief Executive Officer and Director |
|  Christopher Lee-Smith | 57 | Co-Founder, Head of Distribution and Director |
|  Jay Green | 47 | Chief Financial Officer |
|  Nancy Hasley<sup>(3)</sup> | 71 | Group General Counsel and Director |
|  Frank O'Neill | 52 | Co-Founder, Chief Underwriting Officer |
|  Matthew Sternberg | 39 | Chief Operating Officer, Risk Exchange |
|  **Directors**  |  |  |
|  Kunal Arora\*<sup>(1)(2)(3)</sup> | 32 | Director |
|  Samuel Gaynor<sup>(2)(3)</sup> | 39 | Director |
|  Wendy Harrington\*<sup>(1)</sup> | 59 | Director |
|  Paul Little\*<sup>(3)</sup> | 65 | Director |
|  Karen Meriwether\*<sup>(1)</sup> | 72 | Director |
|  Keoni Schwartz<sup>(2)</sup> | 45 | Director |
|  Michael Searles\*<sup>(1)(2)(3)</sup> | 39 | Director |

---

(1) Member of the audit committee.

(2) Member of the compensation committee.

(3) Member of our nominating and corporate governance committee.

\* Independent director for purposes of NYSE corporate governance listing requirements.

The following is a brief biography of each of our expected executive officers and our directors. We believe our Board of Directors should be comprised of a diverse group of individuals with sophistication and experience in many substantive areas that impact our business. We believe experience, qualifications and skills in the following areas are most important: accounting, finance, and capital structure; strategic planning and leadership of complex organizations; expertise and experience in the insurance and related industries; legal/regulatory and government affairs; personnel management; and board practices of other major corporations. We believe that all of our current Board members possess the professional and personal qualifications necessary for service on our Board of Directors, and have highlighted particularly noteworthy attributes for each Board member in the individual biographies below.

***Jeff Radke*** has served as a director and our Co-Founder since October 2021, and will be formally appointed as our Chief Executive Officer prior to the consummation of this offering, a role in which he has served since October 2021. Additionally, Mr. Radke has served as the President of Accelerant US Holdings, LLC since July 2020, and as the President of Accelerant US Services Company Holdings, LLC, Accelerant US Services Company, LLC, and Accelerant US Distribution Holdings, LLC since September 2020 and has been an employee of Mission Underwriting Services, LLC since April 2021. From July 2019 to December 2021, he was involved with Accelerant Services (Malta) Limited and from May 2022 to November 2022, worked at Accelerant Re Cayman. Prior to founding our Company, Mr. Radke served as the Head of Strategic Initiatives at Indica Limited and Argo Group from August 2016 to March 2018. Additionally, he has served as a director of Indica Limited since January 2006. We believe Mr. Radke is qualified to serve on our Board of Directors due to his experience in the insurance industry.

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***Christopher Lee-Smith*** has served as a director and our Co-Founder since October 2021, and will be appointed as our Global Head of Distribution prior to the consummation of this offering. Mr. Lee-Smith held the role of Group Head of Distribution at our parent entity from 2018 to 2021. Before Accelerant, Mr. Lee-Smith served as the Global Head of Alternative Distribution of Argo Group from 2017 to July 2018. We believe Mr. Lee-Smith is qualified to serve on our Board of Directors due to his experience in the insurance industry.

***Nancy Hasley*** serves as our Group General Counsel, a role she assumed for the Accelerant group of companies in October 2019, and as a member of the Board of Directors since October 2021. Prior to joining our Company, Ms. Hasley practiced law in London at Keystone Law (2018/2019) and prior thereto was a Partner at Sidley Austin LLP from 2002 to 2018, first in the New York office and subsequently in the London office of the firm where she advised on transactions, including mergers and acquisitions and capital raising, in the insurance and reinsurance industries. We believe Ms. Hasley is qualified to serve on our Board of Directors due to her extensive legal experience in the insurance industry.

***Jay Green*** serves as our Chief Financial Officer, a role he assumed for the Accelerant group of companies in November 2022. Prior to joining our Company, Mr. Green worked as a Managing Director at Goldman Sachs & Co. LLC in structured finance investment banking from June 2020 to October 2022, and from April 2015 to September 2018. Additionally, Mr. Green worked as Managing Director at Guy Carpenter & Company in insurance-linked securities from October 2018 to May 2020.

***Frank O'Neill*** has served as a director of AIUK and our Co-Founder since September 2021 and will be appointed as our Chief Underwriting Officer prior to the consummation of this offering, a role in which he has served since September 2018. Prior to joining our Company, Mr. O'Neill served as the Chief Executive Officer of Swiss RE UK & Ireland from February 2016 to August 2018. We believe Mr. O'Neill is qualified to serve on our Board of Directors due to his experience in the reinsurance industry.

***Matthew Sternberg*** will be appointed as our Chief Operating Officer, Risk Exchange, prior to the consummation of this offering, a role in which he has served since April 2023. Prior to joining our Company, Mr. Sternberg worked at Boston Consulting Group from September 2012 to April 2023, where he was a Managing Director and Partner and co-led the firm's North American insurance practice.

***Kunal Arora*** has served as a director since July 2025. Mr. Arora currently serves as a Managing Director of Eldridge Industries, LLC, where he has worked since January 2016. Additionally, Mr. Arora currently serves as a director of Cutover, DPL Financial Partners, LLC, Koho Financial Inc., SamCart, Inc., Seek Data Holdings, LLC and Velocity Global Holdings, LLC. We believe Mr. Arora is qualified to serve on our Board of Directors due to his experience operating and investing in a variety of market sectors.

***Samuel Gaynor*** has served as a director since October 2021 and as a member of our Compensation Committee since May 2023. Mr. Gaynor currently serves as Managing Director of Altamont Capital, where he has worked since January 2011. In addition, Mr. Gaynor currently serves as a director for a number of companies, including the following companies in the insurance sector: ACP Insurance Finance, Inc., Fleming Holdings, LLC and Hadron Holdings GP. We believe Mr. Gaynor is qualified to serve on our Board of Directors due to his experience on the boards of reinsurance and capital solutions providers and his experience in the private equity industry.

***Wendy Harrington*** has served as a director since October 2021. Ms. Harrington was most recently the Chief Marketing Officer of CoreViva, Inc., a position she held from March 2025 to April 2025. Prior to joining CoreViva, Ms. Harrington was an Executive Vice President at the Teachers Insurance and Annuity Association of America from June 2019 through December 2023 where she held the positions of Chief Information Officer, Chief Data and AI Officer, and Head of Nuveen Labs and served as a director for TIAA Kaspick, LLC, and TIAA Trust, N.A. Previously, Ms. Harrington served in a variety of leadership roles including Chief Marketing Officer for Franklin Templeton Investments, Chief Operating Officer for Fiduciary Trust, and Associate

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Principal for McKinsey & Company as well as a director for several private companies. We believe Ms. Harrington is qualified to serve on our Board of Directors due to her experience developing data, analytics and AI practices within the insurance industry and general marketing experience.

***Paul Little*** has served as a director since August 2022. Mr. Little is currently the Chief Operating Officer and serves as a director at Protecdiv, Inc., positions he has held since January 2019. Prior to joining Protecdiv, Inc., Mr. Little was the Founder and President of Maxfield Holdings Inc., a consulting firm specializing in risk management, from January 2016 through December 2018. We believe Mr. Little is qualified to serve on our Board of Directors due to his experience in the insurance and reinsurance brokerage industries, advising on risk management practices and his status as an audit committee financial expert.

***Keoni Schwartz*** has served as a director since October 2021 and as a member of our Compensation Committee since May 2023. Mr. Schwartz currently serves as Co-Founder and Managing Director of Altamont Capital, where he has worked since helping to launch the firm in May 2010. In addition, Mr. Schwartz currently serves as a director for a number of companies, including the following companies in the insurance sector: ACP Insurance Finance, Inc., Kuvare, Fleming Holdings, LLC and Hadron Holdings GP. We believe Mr. Schwartz is qualified to serve on our Board of Directors due to his experience on the boards of other insurance portfolio companies and his experience in the private equity industry.

***Michael Searles*** has served as a director and as a member of our Audit and Compensation Committees since June 2023. Mr. Searles currently serves as a Managing Director of Barings LLC, a role he has held since April 2018. Prior to joining Barings, Mr. Searles served as Principal of Octagon Credit Investors LLC, an asset management firm. We believe Mr. Searles is qualified to serve on our Board of Directors due to his experience in the asset management industry and status as an audit committee financial expert.

***Karen Meriwether*** has served as a director since January 2025 and was previously the non-director Chair of our Audit Committee since May 2023. Previously, Ms. Meriwether served as Executive Vice President and Chief Financial Officer at Southwest Business Corporation ("SWBC"), a role she had from March 2017 through September 2022. During this time, Ms. Meriwether also served on the audit committees of SWBC and SWBC Life Insurance Company. We believe Ms. Meriwether is qualified to serve on our Board of Directors due to her experience in the financial services and insurance industries and her status as an audit committee financial expert.

**Classified Board of Directors** 

Our amended and restated memorandum and articles of association will provide for our Board of Directors to be divided into three classes with members of each class serving staggered three-year terms.

Only one class of directors will be elected at each annual general meeting of shareholders, with directors in other classes continuing for the remainder of their respective three-year terms. Our directors will be divided among the three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class I directors are Michael Searles, Kunal Arora and Karen Meriwether, and their terms will expire
at our annual general meeting in 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class II directors are Keoni Schwartz, Wendy Harrington and Nancy Hasley, and their terms will expire
at our annual general meeting in 2027; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class III directors are Jeff Radke, Samuel Gaynor, Paul Little and Christopher Lee-Smith, and their
terms will expire at our annual general meeting in 2028

Our directors hold office until their successors have been elected and qualified or until the earlier of their death, resignation or removal. Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors.

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The classification of our Board of Directors may have the effect of delaying or preventing changes of control of our company.

**Controlled Company Status** 

Upon the completion of this offering, Altamont Capital will own 100,480,382 of our Class B common shares, representing 79.2% of the combined voting power of our common shares outstanding after this offering (or approximately 77.4% of the combined voting power of our common shares if the underwriters' option to purchase additional shares is exercised in full), based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering range set forth on the cover page of this prospectus). Accordingly, we will be a "controlled company" for purposes of the NYSE listing requirements. As such, we will be exempt from the obligation to comply with certain corporate governance requirements, including the requirements that a majority of our Board of Directors consists of independent directors, and that we have nominating and compensation committees that are each composed entirely of independent directors. These exemptions do not modify the requirement for a fully independent audit committee, which is permitted to be phased-in as follows: (1) one independent committee member at the time of our initial public offering; (2) a majority of independent committee members within 90 days of our initial public offering; and (3) all independent committee members within one year of our initial public offering. Similarly, once we are no longer a "controlled company," we must comply with the independent board committee requirements as they relate to the nominating and compensation committees, on the same phase-in schedule as set forth above, with the trigger date being the date we are no longer a "controlled company" as opposed to our initial public offering date. Additionally, we will have 12 months from the date we cease to be a "controlled company" to have a majority of independent directors on our Board of Directors. Additionally, other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled in excess thereof shall be disregarded.

**Corporate Governance Guidelines** 

Our Board of Directors is responsible for overseeing the management of Accelerant Holdings. Prior to the closing of this offering, our Board of Directors will adopt the Corporate Governance Guidelines which will set forth our governance principles relating to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• director independence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• director qualifications and responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• board structure and meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• management succession; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the performance evaluation of our Board of Directors and Chief Executive Officer.

Our Corporate Governance Guidelines will be available in the Investor Relations section of our website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

**Committees of our Board** 

***Audit Committee***

We have established an audit committee of the Board of Directors. The audit committee's duties include, but are not limited to, assisting the Board of Directors with its oversight and monitoring responsibilities regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the integrity of the company's consolidated financial statements and financial and accounting processes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with the audit, accounting and internal controls requirements by the company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the independent auditor's qualifications, independence and performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the performance of the internal accounting and financial controls of the company and its subsidiaries
(including monitoring and reporting by subsidiaries) and the function of the internal audit departments of the company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's legal and regulatory compliance and ethical standards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• procedures to receive, retain and treat complaints regarding accounts; internal accounting controls or
auditing matters and to receive confidential and anonymous submission by employees of concerns regarding questionable accounting or auditing matters.

Members of our audit committee also review the company's financial disclosure and public filings.

Our audit committee will be comprised of Wendy Harrington, Karen Meriwether, Kunal Arora and Michael Searles. Karen Meriwether will be the chair of the audit committee. We believe all audit committee members will each qualify as independent directors according to the rules and regulations of the SEC and the listing rules of the NYSE with respect to audit committee membership.

We also believe that Karen Meriwether will qualify as an "audit committee financial expert," as such term is defined in the rules and regulations of the SEC. Our Board of Directors has approved a written charter under which the audit committee will operate. Upon the effectiveness of the registration statement of which this prospectus forms a part, a copy of the charter of our audit committee will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

***Compensation Committee***

We have established a compensation committee of the Board of Directors. In connection with this offering, our Board of Directors will adopt a compensation committee charter which provides that the purposes of the compensation committee are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approve annually corporate goals and objectives, including financial and other performance targets,
relevant to chief executive officer and executive officer compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approve annually corporate goals and objectives, including financial and other performance targets,
relevant to compensation paid to the other executive officers and key employees of the company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review, approve and, when necessary, make recommendations to the Board of Directors regarding the
company's compensation plans, including with respect to incentive compensation plans and share-based plans, policies and programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and administer the company's share incentive plans and any other share-based plan and any
incentive-based plan of the company and its subsidiaries, including approving grants and/or awards of restricted stock, stock options and other forms of equity-based compensation under any such plans to executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approve, for the chief executive officer, when and if appropriate, employment agreements, severance
agreements, consulting agreements and change in control or termination agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prepare the compensation committee report required to be included in an annual report or proxy statement, as
required by applicable SEC and NYSE rules;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review periodically the company's compensation plans, policies and programs to assess whether such
policies encourage excessive or inappropriate risk-taking or earnings manipulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• once the Company is no longer an emerging growth company, review the results of any advisory stockholder votes
on executive compensation and consider whether to recommend adjustments to the company's executive compensation policies and practices as a result of such vote; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitor compliance with share ownership guidelines for the chief executive officer and other executive
officers of the Company.

Our compensation committee will be comprised of Sam Gaynor, Keoni Schwartz, Jeff Radke, Kunal Arora and Michael Searles. Sam Gaynor will be the chair of the compensation committee.

Upon the effectiveness of the registration statement of which this prospectus forms a part, a copy of the charter of our compensation committee will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

***Nominating and Corporate Governance Committee***

In connection with this offering, our Board of Directors will adopt a nominating and corporate governance committee charter which provides that the purposes of the nominating and corporate governance committee are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify, evaluate and recommend individuals qualified to become members of our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• select, or recommend that our Board of Directors select, the director nominees to stand for election at each
annual general meeting of shareholders of the company or any subsidiary or to fill vacancies on our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• develop and recommend to our Board of Directors a set of corporate governance guidelines applicable to the
company and its subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• oversee the annual performance evaluation of our Board of Directors and its committees and management.

The nominating and corporate governance committee also recommends directors eligible to serve on all committees of our Board of Directors. The nominating and corporate governance committee also reviews and evaluates all shareholder director nominees.

Our nominating and corporate governance committee will be comprised of Sam Gaynor, Paul Little, Kunal Arora, Nancy Hasley and Michael Searles. Paul Little will be the chair of the nominating and corporate governance committee.

Upon the effectiveness of the registration statement of which this prospectus forms a part, a copy of the charter of our nominating and corporate governance committee will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

**Director Independence** 

To qualify as "independent" under NYSE listing standards and the rules and regulations of the SEC, a director must meet objective criteria set forth in NYSE listing standards, and the Board of Directors must affirmatively determine that the director has no material relationship with us (either directly or as a partner, stockholder or officer of an organization that has a relationship with us) that would interfere with his or her exercise of independent judgment in carrying out his or her responsibilities as a director. The NYSE independence criteria include that the director must not be our employee and must not have engaged in various types of business dealings with us.

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The Board of Directors will review all direct and indirect business relationships between each director (including his or her immediate family) and us, as well as each director's relationships with charitable organizations, to assess director independence as defined in the listing standards of the NYSE. The Board of Directors has determined that each of Kunal Arora, Michael Searles, Wendy Harrington, Paul Little and Karen Meriwether are independent under the rules of the SEC and the NYSE.

**Compensation Committee Interlocks and Insider Participation** 

None of the members of the compensation committee who presently serve, or in the past year have served, on the compensation committee has interlocking relationships as defined by the SEC or had any relationships with us which would require disclosure under the SEC rules relating to certain relationships and related-party transactions.

**Code of Business Conduct and Ethics** 

In connection with this offering, we will adopt a code of business conduct and ethics applicable to our principal executive, financial and accounting officers and all persons performing similar functions. Upon the effectiveness of the registration statement of which this prospectus forms a part, our code of business conduct and ethics will be available on our principal corporate website at www.accelerant.ai. Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

**2024 Director Compensation** 

The table below sets forth the compensation that was awarded to, earned by, or paid to our non-employee directors for services to us during the fiscal year ended December 31, 2024. Mr. Radke is not separately compensated for his service on our Board of Directors and his compensation as our Chief Executive Officer for 2024 is included in the "2024 Summary Compensation Table" below.

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| | | | |
|:---|:---|:---|:---|
| **Name<sup>(1)(2)</sup>** | **Fees<br>Earned or<br>Paid in<br>Cash ($)<sup>(3)</sup>** | **Stock<br>Awards<br>($)<sup>(4)</sup>** | **Total ($)** |
|  Todd Boehly<sup>(5)</sup> |  | – |  |
|  Samuel Gaynor<sup>(6)</sup> |  | – |  |
|  Wendy Harrington<sup>(4)</sup> | 100000 | – | 100000 |
|  Paul Little | 100000 | – | 100000 |
|  Karen Meriwether | 118000 | – | 118000 |
|  Keoni Schwartz<sup>(6)</sup> |  | – |  |
|  Michael Searles<sup>(7)</sup> |  | – |  |

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(1) Nancy Hasley, who also serves as our Group General Counsel, is not included in this table because she does
not receive additional compensation for her service on our Board of Directors.

(2) Kunal Arora is not included in this table because he joined our Board of Directors in 2025.

(3) The amounts reported in this column reflect cash fees earned during the reporting year.

(4) None of our non-employee directors received a grant of profits interests or other incentive equity award in
2024, and none of our non-employee directors, other than Ms. Harrington, held outstanding profits interests or other equity awards as of December 31, 2024. As of December 31, 2024, Ms. Harrington held 10,882,806 outstanding profits interest units.

(5) Todd Boehly, who is employed by Eldridge, served on our Board of Directors in 2024 and did not receive
separate compensation for his services as a director.

(6) Neither of Messrs. Gaynor nor Schwartz, each of whom is employed by Altamont Capital, receives separate
compensation for his services as a director.

(7) Mr. Searles, who is employed by Barings, does not receive separate compensation for his services as a
director.

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During 2024, our non-employee and non-affiliated directors received cash compensation for their service on our Board of Directors pursuant to engagement agreements we entered into with such directors as further described below. During 2024, none of our non-employee directors received a grant of profits interests or other incentive equity awards. Following this offering, we expect that our non-employee director compensation program will evolve to reflect our status as a public company and market practices. In connection with this offering, Ms. Harrington, Mr. Little and Ms. Meriwether will each receive restricted share units with respect to 9,211 Class A common shares.

***Board Engagement Agreements***

*Wendy Harrington* 

The Company entered into a board engagement agreement with Wendy Harrington in July 2021 (the "Harrington Engagement Agreement"). The Harrington Engagement Agreement sets forth the terms and conditions of Ms. Harrington's appointment as a member of the Board of Directors. The Harrington Engagement Agreement provides Ms. Harrington with an aggregate cash fee of $100 thousand per year for her service on the Board of Directors, including service on various committees of the Board of Directors. In addition, pursuant to the Harrington Engagement Agreement, Ms. Harrington received profits interests in May 2022 worth 1.5% of each of the then-authorized Class C-1 and C-3 profits interests pools in Accelerant Holdings LP, with 20% of the units vested on the date of grant, 20% of the units vesting on the first anniversary of the date of grant, and, following the first anniversary of the date of grant, five percent of the units vesting in quarterly increments thereafter, subject to Ms. Harrington's continued service through the applicable vesting date. The profits interests fully vest upon a change of control. This offering will not constitute a change of control under the terms of the profits interests.

*Paul Little* 

The Company entered into a board engagement agreement with Paul Little in August 2022 (the "Little Engagement Agreement"). The Little Engagement Agreement sets forth the terms and conditions of Mr. Little's appointment as a member of the Board of Directors and as a member of the board of directors of Accelerant Holdings GP (the "GP Board" and, together with the Board of Directors, the "Boards"). The Little Engagement Agreement provides Mr. Little with an aggregate cash fee of $100 thousand per year for his service on the Boards, including service on various committees of the Boards.

*Karen Meriwether* 

The Company entered into a board engagement agreement with Karen Meriwether in May 2023 (the "Meriwether Engagement Agreement"). The Meriwether Engagement Agreement sets forth the terms and conditions of Ms. Meriwether's appointment as chair of the Board of Director's audit committee. The Meriwether Engagement Agreement provides Ms. Meriwether with an aggregate cash fee of $118 thousand per year for her service as chair of the audit committee of the Board of Directors.

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**EXECUTIVE COMPENSATION** 

The following is a discussion of compensation arrangements of our named executive officers. This discussion contains forward-looking statements that are based on our current plans, considerations, expectations and determinations regarding future compensation programs. Actual compensation programs that we adopt may differ materially from currently planned programs as summarized in this discussion. As an "emerging growth company" (as defined in the JOBS Act), we are not required to include a Compensation Discussion and Analysis and have elected to comply with the scaled disclosure requirements applicable to emerging growth companies.

**Overview** 

Prior to May 2023, compensation decisions for our executive officers were made by our Board of Directors, which has historically been constituted by a majority of representatives of our equity sponsor, Altamont Capital. In setting the compensation of the executive officers other than the Company's Chief Executive Officer, our Board of Directors considered the input of the Chief Executive Officer with respect to each executive officer. Beginning in May 2023, compensation decisions have been made by the compensation committee of our Board of Directors. Following this offering, we expect that compensation decisions for our executive officers will continue to be made by the compensation committee and that our executive compensation program will evolve to reflect our status as a public company and market practices. The compensation committee has engaged Frederic W. Cook & Co., Inc., an independent compensation consultant, to assist it in its evaluation of our executive compensation program.

Our current executive compensation program is intended to align executive compensation with our business objectives and to enable us to attract, retain and reward executive officers who contribute to our long-term success. New hire executive officers' compensation is primarily determined based on the negotiations of the parties as well as our historical compensation practices. For 2024, the material elements of our executive compensation program were base salary and annual cash bonus. In addition, our executive officers hold legacy profits interests in Accelerant Holdings LP.

This section provides a discussion of the compensation paid or awarded to our Chief Executive Officer and our two other most highly compensated executive officers serving as of December 31, 2024. We refer to these individuals as our "named executive officers." For 2024, our named executive officers were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Jeff Radke, Co-Founder and Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Christopher Lee-Smith, Co-Founder and Head of Distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Frank O'Neill, Co-Founder and Chief Underwriting Officer.

***Compensation of Named Executive Officers***

<u>Base Salary</u>. Base salaries are intended to provide a level of compensation sufficient to attract and retain an effective management team, when considered in combination with the other components of our executive compensation program. Following this offering, it is intended that the relative levels of base salary for our named executive officers will reflect each executive officer's scope of responsibility and accountability with us. Historically, including for the year ended December 31, 2024, compensation was established in the context of our status as a "start-up" company. Please see the "Salary" column in the 2024 Summary Compensation Table for the base salary amounts earned by each named executive officer in 2024.

As of December 31, 2024, the base salaries for Messrs. Radke, Lee-Smith and O'Neill were $1,102,534, £497,820 (or $636,314), and £497,776 (or $636,257), respectively, increased from 2023 base salaries of $1,070,130, £480,000 (or $597,072), and £480,000 (or $597,072), respectively. The amounts reported for Messrs. Lee-Smith and O'Neill have been converted using a 12-month average rate of exchange.

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<u>Annual Cash Bonus</u>. Our named executive officers are eligible to receive annual incentive compensation based on a qualitative assessment of corporate performance. Each named executive officer has a target annual incentive opportunity. For 2024, the target annual incentive opportunities for our named executive officers were $556,468 for Mr. Radke, £599,040 (or $762,806) for Mr. Lee-Smith (increased from his original 2024 target of £288,000 (or $357,120) to recognize his performance) and £249,000 (or $317,836) for Mr. O'Neill. The amounts of any annual incentives earned are determined after the end of the year, based on a qualitative assessment of performance against the corporate plan. For 2024, the annual bonus program did not include pre-established performance goals and was instead based on a qualitative assessment of the Company's performance. For 2024, our Board of Directors approved payouts under our annual cash bonus program representing 360%, 100% and 161% of Messrs. Radke's, Lee-Smith's, and O'Neill's 2024 target annual incentive opportunity, respectively. Please see the "Bonus" column in the 2024 Summary Compensation Table for the amount of annual bonuses earned by each named executive officer in respect of 2024.

<u>Profits Interests</u>. We believe that members of senior management should hold a personally significant interest in the equity of the Company to align their interests with the interests of our stakeholders. As described below, we implemented this management investment philosophy by establishing a "profits-interest program." "Profits-interest programs" are common practice in portfolio companies of private equity firms and, in the case of profits interests granted to Company employees, including our named executive officers, allow participants to share in increases in the equity value of the Company. Profits interests were granted with a pre-defined "participation threshold" based on the value assigned to a limited partnership interest ("LP Interests") in Accelerant Holdings LP, the parent entity of the Company, at the time of the profits interest grant. The profits interests only share in equity appreciation above the participation threshold. This places the profits interests in a secondary position to the LP Interests in that in any event in which the equity is valued and distributed, holders of the profits interests receive a distribution only if an amount at least equal to the participation threshold has first been allocated to the LP Interests. The LP Interests and profits interests share equally in valuation amounts, if any, above the participation threshold.

Our named executive officers currently hold time-based profits interests in Accelerant Holdings LP. Each of Messrs. Radke, Lee-Smith, and O'Neill received one or more loans, each in the form of a promissory note, from Accelerant Holdings LP, which was used to cover the subscription price for such profits interests. During 2024, the loans accrued at an interest rate of 2.25%, determined on an arm's length basis. Mr. O'Neill repaid his outstanding aggregate principal loan amount in full in December 2024. As of December 31, 2024, Messrs. Radke and Lee-Smith had outstanding aggregate principal loan amounts of $2,686,599 and $1,046,692, respectively. The loans were repaid in full by Messrs. Radke and Lee-Smith prior to this offering.

Immediately prior to the consummation of this offering, following the re-designation of existing common shares following the Accelerant Holdings LP Distribution, holders of the profits interests will receive Class A common shares of the Company, with the number of shares received intended to preserve the economic value of the profits interests prior to the consummation of the offering. Any Class A common shares issued in exchange for unvested profits interests will be issued as restricted Class A common shares, subject to the same vesting conditions as the exchanged profits interests. ****Based on an assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering range set forth on the cover page of this prospectus), no restricted Class A common shares will be issued to holders of unvested profits interests. During 2024, none of our named executive officers received additional grants of profits interests and, as of March 31, 2025, all of their outstanding profits interests had fully vested. Please see the "Outstanding Equity Awards at 2024 Fiscal Year-End" for a summary of the unvested profits interests held by each of our named executive officers as of December 31, 2024.

In connection with this offering, our employees, including our named executive officers, are expected to receive new equity awards with respect to an aggregate of 2,381,858 Class A common shares subject to restricted share units and 28,908,880 Class A common shares subject to common share options, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering

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price range set forth on the cover page of this prospectus), with 25% of the Class A common shares subject to the awards vesting on the one-year anniversary of the grant date and the remaining shares vesting in 6.25% quarterly installments through the four-year anniversary of the grant date.

Specifically, our named executive officers are expected to receive the following common share option awards depending on the following initial public offering prices.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **$18.00** | **$19.00** | **$20.00** | **$21.00** | **$22.00** |
|  | **Options** | **Options** | **Options** | **Options** | **Options** |
|  Jeff Radke | 10429341 | 9831417 | 9069964 | 8279552 | 7573717 |
|  Christopher Lee-Smith | 3459329 | 3261002 | 3008434 | 2746261 | 2512141 |
|  Frank O'Neill | 1111781 | 1048041 | 966870 | 882611 | 807368 |

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**2024 Summary Compensation Table** 

The following table shows information regarding the compensation of our named executive officers for services performed in the years ended December 31, 2024 and December 31, 2023.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus<br>($)<sup>(1)</sup>** | **All Other<br>Compensation<br>($)<sup>(2)</sup>** | **Total ($)** |
| &nbsp;&nbsp;&nbsp;&nbsp; Jeff Radke,<br> *Co-Founder and Chief Executive Officer* | 2024<br> 2023 | 1102534<br> 1070130 | 2000000<br> 1070130 | — <br> 25365 | 3102534<br> 2165625 |
| &nbsp;&nbsp;&nbsp;&nbsp; Christopher Lee-Smith,<br> *Head of Distribution<sup>(3)</sup>* | 2024<br> 2023 | 632231<br> 596884 | 762806<br> 733329 | 360<br> 26021 | 1395397<br> 1356234 |
| &nbsp;&nbsp;&nbsp;&nbsp; Frank O'Neill,<br> *Chief Underwriting Officer<sup>(3)</sup>* | 2024<br> 2023 | 632175<br> 596388 | 511396<br> 305554 | — <br> 8177 | 1143571<br> 910119 |

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(1) Amounts in this column represent annual cash incentives paid based on a qualitative assessment of performance
against the 2024 corporate plan. These bonuses were paid in 2025 based on 2024 performance.

(2) The amount in this column represents a statutory bonus required under Malta law with respect to Mr. Lee-Smith for 2024.

(3) Compensation amounts for Mr. Lee-Smith and Mr. O'Neill were paid in British pounds and have been
converted to U.S. Dollars. Amounts reported in the "Salary" column have been converted using a 12-month average rate of exchange. Amounts reported in the "Bonus" and "All Other Compensation" columns have been converted
using the spot rate of exchange at the time of payment.

**Outstanding Equity Awards at 2024 Fiscal Year-End** 

The following table presents information regarding the outstanding equity awards held by each of the named executive officers as of December 31, 2024, consisting of Class A3, C1 and C3 awards held by Mr. Radke and Class C1 and C3 awards held by each of Mr. Lee-Smith and Mr. O'Neill. None of the named executive officers held any equity awards other than profits interests as of that date.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Vesting Commencement Date** | **Number of Units That<br>Have Not Vested (#)<sup>(1)</sup>** | **Market Value of Units<br>That Have Not Vested ($)<sup>(2)</sup>** |
|  Jeff Radke | March 18, 2021 | 200 | 31244690 |
|  | March 18, 2021 | 66666 | 10737658 |
|  Christopher Lee-Smith | March 18, 2021 | 32000 | 5154128 |
|  Frank O'Neill | March 18, 2021 | 10666 | 1717935 |

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(1) The profits interests are 20% vested on the date of grant and vested as to 20% on the first anniversary of
the vesting commencement date. Following the first anniversary of the vesting commencement date, the profits interests vest in quarterly increments of five percent with a total of 20% vesting annually thereafter, subject to the holder's
continued employment through the applicable vesting date. All profits

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interests fully vest upon a change of control. This offering will not constitute a change of control under the terms of the profits interests. All of the profits interests reflected in this table were vested as of March 31, 2025 in accordance with the terms of the underlying agreements.

(2) Because the Company's equity was not publicly traded as of December 31, 2024, there was no
ascertainable public market value for the profits interests as of such date. The values reported in this table represent the liquidation value associated with the profits interests and are based on an estimate of fair market value, using the
midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus.

**Employment Agreements, Severance and Change in Control Agreements** 

We previously entered into employment agreements with each of Messrs. Radke, Lee-Smith, and O'Neill. These agreements set forth the initial terms and conditions of each executive's employment with us, including his base salary and target annual bonus opportunity and eligibility for standard employee benefit plan participation. In connection with this offering, we entered into an amended and restated employment agreement with each of the named executive officers that sets forth the terms of such executive's employment following this offering, including his base salary and annual bonus target levels.

***Jeff Radke***

The Company entered into an employment agreement with Mr. Radke, the Company's Co-Founder and Chief Executive Officer, in April 2022 (the "Radke Employment Agreement"). The terms of the Radke Employment Agreement provided for the employment of Mr. Radke as Chief Executive Officer at a base salary of $1,070,130 per year, which was subsequently increased to $1,102,534 for 2024, subject to annual increases to remain consistent with the compensation of similarly situated chief executive officers at the discretion of our Board of Directors. In addition, pursuant to the Radke Employment Agreement, Mr. Radke was entitled to participate in the Company's discretionary annual bonus arrangement with a target annual bonus opportunity of 50% of his base salary. The Radke Employment Agreement also included non-competition, non-solicitation and confidentiality provisions. The Radke Employment Agreement could have been terminated upon 12 months' written notice from either the Company or Mr. Radke, with the Company having the election to pay Mr. Radke a cash payment in lieu of such notice or to place Mr. Radke on garden leave.

In connection with this offering, we entered into an amended and restated employment agreement with Mr. Radke that sets forth the terms of his employment following this offering, including his base compensation and annual bonus target level (the "Restated Radke Employment Agreement"). The terms of the Restated Radke Employment Agreement provide that Mr. Radke will be employed as the Chief Executive Officer of the Company and of Accelerant Risk Exchange, his primary employer, and will receive combined base compensation of $1,146,323 per year, subject to annual increases based upon review by our compensation committee. Such base compensation will be payable in the form of a base salary of $175,000 from the Company and, in consideration of his performance of services with respect to the Accelerant Risk Exchange, a base salary of $175,000 from the Accelerant Risk Exchange and dividends of $796,323 on 5 Series A Preferred Units of Accelerant Risk Exchange (the "Series A Preferred Units"), which were granted to Mr. Radke in January 2025 in connection with his entering into the Restated Radke Employment Agreement. In addition, pursuant to the Restated Radke Employment Agreement, Mr. Radke is entitled to participate in the Company's and Accelerant Risk Exchange's discretionary annual bonus arrangements with a target annual bonus opportunity of 150% of his combined base compensation. Any such bonus will be paid, to the maximum extent possible, by the Accelerant Risk Exchange in the form of dividends on Mr. Radke's Series A Preferred Units. Pursuant to the Restated Radke Employment Agreement, Mr. Radke is also entitled to participate in the equity incentive program maintained for senior executive officers of the Company and its subsidiaries, and equity vehicles determined by our compensation committee for each year of participation thereunder. Mr. Radke is also entitled to reimbursement of attorneys' fees arising out of the negotiation of the Restated Radke Employment Agreement.

Under the terms of the Restated Radke Employment Agreement, in the event Mr. Radke is terminated by us without "cause" or he terminates his employment for "good reason", Mr. Radke would become entitled to

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receive: (i) an aggregate amount equal to the sum of (A) two times Mr. Radke's then-current base compensation plus (B) his target annual bonus for the year of termination paid over 12 months; and (ii) up to 18 months of reimbursement for COBRA premiums. If Mr. Radke is terminated due to death or disability, he would be entitled to his pro rata annual bonus for the year of such termination. In connection with Mr. Radke's entry into the Restated Radke Employment Agreement, Mr. Radke entered into a Restrictive Covenant Agreement which subjects Mr. Radke to certain non-competition, non-solicitation and confidentiality provisions.

***Christopher Lee-Smith***

The Company entered into an employment agreement with Mr. Lee-Smith, the Company's Co-Founder and Head of Distribution, in April 2020 (the "Lee-Smith Employment Agreement"). The Lee-Smith Employment Agreement provided Mr. Lee-Smith with a total salaried amount of £350,000 per year, which was subsequently increased to £497,820 for 2024, £499,200 beginning January 1, 2025 through March 31, 2025 and £519,168 beginning April 1, 2025, subject to annual review by Accelerant Holdings GP's board of directors. Such amount was inclusive of allowances for the following expatriate benefits relating to his assignment in Malta: (A) relocation expenses; (B) housing expenses; (C) travel expenses for Mr. Lee-Smith and his immediate family; (D) a company car; (E) a monthly stipend; (F) medical expenses and medical insurance; and (G) an education allowance for Mr. Lee-Smith's children. The Lee-Smith Employment Agreement also included non-competition, non-solicitation and confidentiality provisions. The Lee-Smith Employment Agreement could have been terminated upon 12 months' written notice from either the Company or Mr. Lee-Smith, with the Company having the election to pay Mr. Lee-Smith a cash payment in lieu of such notice or to place Mr. Lee-Smith on garden leave.

In connection with this offering, we entered into an amended and restated employment agreement with Mr. Lee-Smith that sets forth the terms of his employment following this offering, including his base compensation and annual bonus target level (the "Restated Lee-Smith Employment Agreement"). The terms of the Restated Lee-Smith Employment Agreement provide that Mr. Lee-Smith will be employed by the Company in the position of Head of Distribution, and will receive a base compensation of £777,434 per year, subject to annual increases based upon review by our compensation committee. In addition, pursuant to the Restated Lee-Smith Employment Agreement, Mr. Lee-Smith is entitled to participate in the Company's discretionary annual bonus arrangements with a target annual bonus opportunity of 100% of his base compensation. Pursuant to the Restated Lee-Smith Employment Agreement, Mr. Lee-Smith is also entitled to participate in the equity incentive program maintained for senior executive officers of the Company and its subsidiaries. Mr. Lee-Smith is also entitled to reimbursement of attorneys' fees arising out of the negotiation of the Restated Lee-Smith Employment Agreement.

Under the terms of the Restated Lee-Smith Employment Agreement, in the event Mr. Lee-Smith is terminated by us without "cause" or he terminates his employment for "good reason," Mr. Lee-Smith would become entitled to receive: (i) an aggregate amount equal to the sum of (A) two times Mr. Lee-Smith's then-current base compensation plus (B) his target annual bonus for the year of termination paid over 12 months; and (ii) up to 18 months of reimbursement for COBRA premiums. If Mr. Lee-Smith is terminated due to death or disability, he would be entitled to his pro rata annual bonus for the year of such termination. In connection with Mr. Lee-Smith's entry into the Restated Lee-Smith Employment Agreement, Mr. Lee-Smith entered into a Restrictive Covenant Agreement which subjects Mr. Lee-Smith to certain non-competition, non-solicitation and confidentiality provisions.

***Frank O'Neill***

The Company entered into an employment agreement with Mr. O'Neill, the Company's Co-Founder and Chief Underwriting Officer, in April 2022 (the "O'Neill Employment Agreement"). The terms of the O'Neill Employment Agreement provided for the employment of Mr. O'Neill as Chief Underwriting Officer at a total salaried amount of £480,000, which was subsequently increased to £497,776 for 2024, £499,200 beginning January 1, 2025 through March 31, 2025 and £519,168 beginning April 1, 2025, subject to annual review by

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Accelerant Holdings GP's board of directors. Such amount was inclusive of allowances for the following expatriate benefits relating to his assignment in Guernsey: (A) relocation and housing expenses; (B) travel expenses for Mr. O'Neill and his immediate family; (C) a company car; (D) a monthly stipend; (E) medical expenses and medical insurance; and (F) an education allowance for Mr. O'Neill's children. In addition, pursuant to the O'Neill Employment Agreement, Mr. O'Neill was entitled to participate in the Company's discretionary annual bonus arrangement with a target annual bonus opportunity of 50% of his base salary. The O'Neill Employment Agreement also included non-competition, non-solicitation and confidentiality provisions. The O'Neill Employment Agreement could have been terminated upon six months' written notice from either the Company or Mr. O'Neill, with the Company having the election to pay Mr. O'Neill a cash payment in lieu of such notice or to place Mr. O'Neill on garden leave.

In connection with this offering, we entered into an amended and restated employment agreement with Mr. O'Neill that sets forth the terms of his employment following this offering, including his base compensation and annual bonus target level (the "Restated O'Neill Employment Agreement"). The terms of the Restated O'Neill Employment Agreement provide that Mr. O'Neill will be employed by the Company in the position of Chief Underwriting Officer, and will receive a base compensation of £777,434 per year, subject to annual increases based upon review by our compensation committee. In addition, pursuant to the Restated O'Neill Employment Agreement, Mr. O'Neill is entitled to participate in the Company's discretionary annual bonus arrangements with a target annual bonus opportunity of 100% of his base compensation. Pursuant to the Restated O'Neill Employment Agreement, Mr. O'Neill is also entitled to participate in the equity incentive program maintained for senior executive officers of the Company and its subsidiaries. Mr. O'Neill is also entitled to reimbursement of attorneys' fees arising out of the negotiation of the Restated O'Neill Employment Agreement.

Under the terms of the Restated O'Neill Employment Agreement, in the event Mr. O'Neill is terminated by us without "cause" or he terminates his employment for "good reason," Mr. O'Neill would become entitled to receive: (i) an aggregate amount equal to the sum of (A) two times Mr. O'Neill's then-current base compensation plus (B) his target annual bonus for the year of termination paid over 12 months; and (ii) up to 18 months of reimbursement for COBRA premiums. If Mr. O'Neill is terminated due to death or disability, he would be entitled to his pro rata annual bonus for the year of such termination. In connection with Mr. O'Neill's entry into the Restated O'Neill Employment Agreement, Mr. O'Neill entered into a Restrictive Covenant Agreement which subjects Mr. O'Neill to certain non-competition, non-solicitation and confidentiality provisions.

**Retirement Plan** 

Our U.S. employees are eligible to participate in a 401(k) plan, which allows eligible employees an opportunity to save for retirement. Participants may defer up to 99% of cash compensation up to the maximum amount allowed under the Internal Revenue Code. Under the terms of the 401(k) plan, we match 100% of each participant's contributions up to the first 5% of his or her eligible compensation. None of our named executive officers were eligible to participate in the 401(k) plan in 2024.

**Clawback Policy** 

In connection with this offering, we previously adopted a clawback policy to comply with the requirements of the Dodd-Frank Act and applicable listing standards. In general, this policy requires the Company to recoup from certain current and former executive officers of the Company erroneously-awarded incentive-based compensation in the event of certain required accounting restatements, regardless of any misconduct or fault on the part of the executive officer. The clawback policy will become effective upon the effectiveness of this offering.

**Equity Compensation Plans and Other Benefit Plans** 

***Profits Interests***

As described above, our named executive officers currently hold profits interests in Accelerant Holdings LP, the parent entity of the Company. The profits interests are governed by the A&R Securityholders Deed for

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Accelerant Holdings LP. Immediately prior to the consummation of this offering, holders of the profits interests will receive Class A common shares of the Company, with the number of shares received intended to preserve the economic value of the profits interests prior to the consummation of the offering. Any Class A common shares issued in exchange for unvested profits interests will be issued as restricted Class A common shares, subject to the same vesting conditions as the exchanged profits interests. Based on an assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus), no restricted Class A common shares will be issued to holders of unvested profits interests.

***Share Incentive Plan***

Our Board of Directors adopted in 2021, and our shareholders approved in 2023, the Company's Share Incentive Plan which was amended and restated in connection with this offering (as amended and restated, the "2023 Plan").

The purposes of the 2023 Plan are (i) to align the interests of the Company's shareholders and the recipients of awards under the 2023 Plan by increasing the proprietary interest of such recipients in the Company's growth and success, (ii) to advance the interests of the Company by attracting and retaining non-employee directors, officers, other employees, consultants, independent contractors and agents and (iii) to motivate such persons to act in the long-term best interests of the Company and its shareholders. The material terms of the 2023 Plan are as follows. The following summary is not a complete description of all provisions of the 2023 Plan and is qualified in its entirety by reference to the 2023 Plan, which will be filed as an exhibit to the registration statement of which this prospectus is a part.

*Eligibility.* Officers, other employees, non-employee directors, consultants, independent contractors and agents, and persons expected to become officers, other employees, non-employee directors, consultants, independent contractors and agents of us and our subsidiaries are eligible to receive awards under the 2023 Plan, provided such persons are eligible to receive awards of our Class A common shares that are registered on a Form S-8 registration statement. Participants will also consist of persons who receive restricted Class A common shares in substitution for unvested profits interests and similar awards with respect to Accelerant Holdings LP in connection with the transactions relating to this offering (the "Replacement Awards").

*Class A Common Shares Subject to the 2023 Plan.* Subject to adjustment as described below, the number of Class A common shares available for all awards under the 2023 Plan is 51,976,602 (representing a new authorization of 35,000,000 and 16,976,602 Class A common shares subject to option share awards outstanding as of the date of this prospectus) (including, without limitation, incentive stock options, but excluding the Replacement Awards and other substitute awards). The number of shares available under the 2023 Plan will increase annually on the first day of each calendar year, beginning with the calendar year ending December 31, 2026, and continuing until (and including) the calendar year ending December 31, 2035, with such annual increase equal to the lesser of (i) 3% of the number of shares issued on December 31 of the immediately preceding fiscal year and (ii) an amount determined by our Board of Directors). To the extent an equity award granted under the 2023 Plan other than a substitute award expires, terminates, is cancelled or forfeited, or is settled in cash, the shares subject to such award will become available for future grant under the 2023 Plan. In addition, to the extent shares subject to an award granted under the 2023 Plan are withheld to satisfy a participant's tax withholding obligation upon the net exercise or net settlement of an option or stock-settled share appreciation right award or to pay the purchase price or the withholding taxes relating to an award, such shares will become available for future grant under the 2023 Plan. Shares that may be delivered under the 2023 Plan may be authorized but unissued shares, treasury shares, or previously issued shares acquired by us.

*Plan Administration.* Our compensation committee administers the 2023 Plan. Subject to the terms of the 2023 Plan, our compensation committee has the authority to select eligible persons for participation in the 2023 Plan, determine the form, amount and timing of each award to such persons and, if applicable, the number of

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Class A common shares subject to an award, the number of share appreciation rights, the number of restricted stock units, the dollar value subject to a performance award, the purchase price or base price associated with the award, the time and conditions of exercise or settlement of the award and all other terms and conditions of the award, including, without limitation, the form of the agreement evidencing the award. The compensation committee may also take action such that (i) any or all outstanding options and share appreciation rights become exercisable in part or in full, (ii) all or a portion of the restriction period applicable to any outstanding awards will lapse, (iii) all or a portion of the performance period applicable to any outstanding awards will lapse, and (iv) the performance measures (if any) applicable to any outstanding awards will be deemed to be satisfied at the target, maximum or any other level. The compensation committee also has the authority, subject to the terms of the 2023 Plan, to interpret the 2023 Plan and the application thereof and establish rules and regulations it deems necessary or desirable for the administration of the 2023 Plan. The compensation committee may delegate some or all of its power and authority under the 2023 Plan to our Board of Directors (or any members thereof) or, subject to applicable law, to a subcommittee of our Board of Directors, a member of our Board of Directors, our chief executive officer or other executive officer as the compensation committee deems appropriate.

*Director Limits*. The aggregate value of cash compensation and the grant date fair value of shares that may be awarded or granted during any fiscal year to any non-employee director, for his or her services as a non-employee director, shall not exceed $1,000,000; provided, however, that this limit will not apply to distributions of previously deferred compensation under a deferred compensation plan maintained by the Company or compensation received by the director in his or her capacity as an executive officer or employee of the Company.

*Incentive Stock Options, Share Options and Share Appreciation Rights.* Our compensation committee may grant incentive stock options, nonqualified share options, and share appreciation rights under the 2023 Plan. Other than with respect to substitute awards, the exercise price of incentive stock options, nonqualified share options and share appreciation rights under the 2023 Plan will be determined by the compensation committee, but must not be less than 100% of the closing price of a common share on the date of grant (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported). The term of an option or share appreciation right may not exceed ten years; provided, however, that an incentive stock option granted to an employee who owns more than 10% of all of our classes of stock, or of certain of our affiliates, may not have a term in excess of five years, and must have an exercise price of at least 110% of the closing price of a common share on the date of grant (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported). Subject to the provisions of the 2023 Plan, the compensation committee will determine the remaining terms of the options and share appreciation rights (e.g., vesting). The compensation committee has the discretion, without shareholder approval, to (i) reduce the purchase price or base price of any previously granted option or share appreciation right, (ii) cancel any previously granted option or share appreciation right in exchange for another option or share appreciation right with a lower purchase price or base price or (iii) cancel any previously granted option or share appreciation right in exchange for cash or another award if the purchase price of such option or the base price of such share appreciation right exceeds the closing price of a common share on the date of such cancellation (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported).

*Share Awards.* Our compensation committee may grant restricted shares, restricted share units, or other share awards under the 2023 Plan. The compensation committee will determine the number of shares subject to the award, any vesting conditions applicable to the award, and the nature of any performance measures. Unless otherwise specified in the award agreement, the recipient of restricted shares will have voting rights and be entitled to receive dividends with respect to his or her restricted shares. The recipient of restricted share units will not have voting rights prior to settlement of the award, but his or her award agreement may provide for the receipt of dividend equivalents. Our compensation committee may grant other share awards that are based on or related to our Class A common shares, such as awards of Class A common shares granted as a bonus and not subject to any vesting conditions, deferred share units, share purchase rights, and Class A common shares issued in lieu of our obligations to pay cash under any compensatory plan or arrangement.

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*Performance Awards.* Our compensation committee may grant performance awards, which are awards that vest subject to the achievement of performance criteria. Our compensation committee will determine the value of any performance award, the vesting conditions applicable to the award and the nature of the performance measures, and whether the award is denominated or settled in cash or in Class A common shares. The performance goals applicable to a particular award will be determined by our compensation committee at the time of grant.

*Transferability of Awards.* The 2023 Plan generally does not allow awards to be transferred other than by will or the laws of inheritance following the participant's death, and awards generally may only be exercised or settled during the lifetime of the participant, only by the participant. However, an award agreement may permit a participant to transfer an award to a family member to a trust or entity established by the participant for estate planning purposes, to a charitable organization, or pursuant to a domestic relations order, in each case, without consideration. A participant may also designate a beneficiary who will receive outstanding awards upon the participant's death.

*Certain Adjustments.* In the event of any equity restructuring that causes the per share value of our Class A common shares to change, such as a stock dividend, share subdivision, spinoff, rights offering, or recapitalization through an extraordinary cash dividend, the compensation committee will make appropriate adjustments to the number and class of securities available under the 2023 Plan, the terms of each outstanding award (including the number and class of securities subject to each outstanding award and, if applicable, the purchase price or base price per share). In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the compensation committee to prevent dilution or enlargement of rights of participants.

*Change in Control.* Subject to the terms of the applicable award agreement, upon a "change in control" (as defined in the 2023 Plan), our Board of Directors may, in its discretion, (i) require that some or all outstanding options and share appreciation rights will become exercisable in full or in part, that the restriction period and/or performance period applicable to some or all outstanding restricted stock awards and restricted stock unit awards will lapse in full or in part and/or that the performance measures applicable to some or all outstanding awards will be deemed to be satisfied, (ii) require that shares of stock of the corporation resulting from such a change in control, or a parent corporation thereof, or other property be substituted for some or all of our Class A common shares subject to an outstanding award, and/or (iii) require that any outstanding awards, in whole or in part, be surrendered to us by the holder and be immediately cancelled by us in exchange for a cash payment, shares of stock of the corporation resulting from or succeeding us, other property or a combination of cash, such shares of stock or other property, in each case, with a value equal to the fair market value of the aggregate number of Class A common shares subject to the surrendered award (whether or not vested) less the purchase price or base price (if any), if applicable (or, for performance awards denominated in cash, the value of the surrendered performance award to the extent the performance measures have been satisfied or are deemed satisfied pursuant to clause (i) above).

*Clawback.* Awards granted under the 2023 Plan and any cash payment or shares of our Class A common shares delivered pursuant to an award are subject to forfeiture, recovery, or other action pursuant to the applicable award agreement, our Policy on Recoupment of Incentive Compensation or any other clawback or recoupment policy that we may adopt.

*Plan Termination and Amendment.* Our Board of Directors (and, subject to applicable law, the compensation committee) has the authority to amend, modify, or terminate the 2023 Plan or any award, subject to any requirement of shareholder approval required by law or stock exchange rules and provided that no amendment may materially impair a participant's rights without the participant's consent. Our 2023 Plan will terminate on the ten-year anniversary of its approval by our shareholders, as amended and restated, unless we terminate it earlier.

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***2025 Employee Stock Purchase Plan***

In connection with this offering, our Board of Directors will adopt and our current stockholders expect to approve the 2025 Employee Stock Purchase Plan, or the ESPP, to be effective upon the completion of this offering. The ESPP includes two components: (i) a component intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and (ii) a component that does not qualify as an "employee stock purchase plan" under Section 423 of the Code. The following summary describes what we expect to be the material terms of the ESPP. This summary is not a complete description of all provisions of the ESPP and is qualified in its entirety by reference to the ESPP, which will be filed as an exhibit to the registration statement of which this prospectus is a part.

*Eligibility.* Generally, all of our employees (including those of our consolidated subsidiaries, other than those subsidiaries excluded from participation by our Board of Directors or compensation committee) are eligible to participate in the ESPP.

*Stock Subject to the ESPP.* 1,000,000 of our Class A common shares, subject to adjustment for stock splits, share subdivisions, stock dividends, share consolidations or other changes in our Class A common shares, have been reserved for issuance under the ESPP. Subject to the adjustment provisions contained in the ESPP, the maximum number of shares of our Class A common shares available under the ESPP will automatically increase on the first trading day in January of each calendar year, commencing in 2026 and continuing until (and including) 2035, by an amount equal to the lesser of 1% of the shares of our Class A common shares issued and outstanding on December 31 of the immediately preceding calendar year, 1,000,000 Class A common shares or such lesser amount as is determined by our Board of Directors.

*Plan Administration.* The ESPP will be administered by the compensation committee or a designee of the compensation committee.

*Offering Periods.* The ESPP permits employees to purchase our Class A common shares through payroll deductions during six-month offering periods.

*Payroll Deductions and Other Limits.* Participants may authorize payroll deductions of a specific percentage of compensation of up to 15%, with such deductions being accumulated for six-month purchase periods beginning on the first business day of each offering period and ending on the last business day of each offering period. No employee may participate in an offering period if the employee owns 5% or more of the total combined voting power or value of our stock or the stock of any of our subsidiaries. No participant may purchase more than 5,000 Class A common shares during any offering period. No participant will be granted an option under the ESPP that permits the participant's rights to purchase shares under all employee stock purchase plans of us or our subsidiaries to accrue at a rate that exceeds $25,000 in fair market value for each calendar year in which such option is outstanding at any time, determined in accordance with Section 423 of the Code.

*Purchase Price.* Under the terms of the ESPP, the purchase price per share with respect to an offering period will equal the lesser of (i) 85% of the closing price of a common share on the first business day of such offering period (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported) and (ii) 85% of the closing price of a common share on the last business day of such offering period (or, if no closing price is reported on that date, the closing price on the next preceding date on which a closing price was reported), although the compensation committee has discretion to change the purchase price with respect to future offering periods, subject to the terms of the ESPP.

*Corporate Transactions.* In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding option under the ESPP will be assumed or an equivalent option substituted by the successor corporation or a parent or subsidiary of the successor corporation, unless our Board of Directors determines, in the exercise of its sole discretion, in

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lieu of such assumption or substitution, to either terminate all outstanding options and return to each participant the payroll deductions credited to such participant's purchase account or to provide for the offering period in progress to end on a date prior to the consummation of such sale or merger. In the event of the proposed dissolution or liquidation of the Company, the offering period then in progress would terminate immediately prior to the consummation of such proposed action, unless otherwise provided by our Board of Directors, and our Board of Directors may either provide for the purchase of shares as of the date on which such offering period terminates or return to each participant the payroll deductions credited to such participant's purchase account.

*Termination and Amendment.* The ESPP may be amended by our Board of Directors or the compensation committee but may not be amended without prior stockholder approval to the extent required by Section 423 of the Code. The ESPP shall continue in effect until the earlier of (i) the termination of the ESPP by our Board of Directors or the compensation committee pursuant to the terms of the ESPP and (ii) the ten-year anniversary of the effective date of the ESPP, with no new offering periods commencing on or after such ten-year anniversary.

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**DESCRIPTION OF CERTAIN INDEBTEDNESS** 

Set forth below is a summary of the terms of the agreements governing certain of our outstanding indebtedness as of the date of this prospectus. This summary is not a complete description of all of the terms of the agreements. The agreements setting forth the terms and conditions of certain of our outstanding indebtedness are filed as exhibits to the registration statement of which this prospectus forms a part.

**Bank of Montreal Credit Facilities** 

On September 26, 2024 (the "Effective Date"), we entered into a second amended and restated credit agreement, among us, the guarantors party thereto, Bank of Montreal, as administrative agent (the "Agent"), and the lenders party thereto (the "Credit Agreement"), providing for a $125.0 million term loan facility (the "Term Loan Facility") and a $50.0 million revolving credit facility (the "Revolving Facility" and together with the Term Loan Facility, the "Credit Facilities"), each of which matures on September 26, 2029. The Term Loan Facility was fully drawn on the Effective Date.

Also on September 26, 2024, various of our subsidiaries entered into a second amended and restated guaranty in favor of the Agent, for the benefit of the lenders, guaranteeing payment of our obligations under the Credit Facilities.

Borrowings under the Credit Agreement are made in U.S. Dollars and bear interest, at our option, at either (a) the ABR (as defined in the Credit Agreement) or (b) the Term SOFR rate plus 0.10%, in each case, plus an applicable spread ranging from 2.25% to 2.75% for ABR Loans and 3.25% to 3.75% for SOFR Loans. In addition to the applicable interest rate, the Credit Agreement includes a commitment fee ranging from 0.45% to 0.55% per annum for the unused portion of the aggregate commitments under the Revolving Facility. Both the spread applicable to the interest rate and the commitment fee are dependent on our Consolidated Senior Debt to Capitalization Ratio (as defined in the Credit Agreement), calculated as of the last day of the most recently ended fiscal period for which financial statements were furnished to the Agent.

At the end of each interest period of, at our option, one, three or six months (each, an "Interest Period") for each Loan, we may elect to continue such Loans on the same or different principal amount and/or Interest Period. We may elect to continue such Loans, to convert SOFR Loans to ABR Loans or ABR Loans to SOFR Loans, or we may elect to designate such Loans as any combination of ABR Loans and SOFR Loans.

The Loans may be prepaid in whole or in part without premium or penalty (but subject to breakage fees) and in the case of loans under the Term Loan Facility (the "Term Loans") such prepaid amounts may not be reborrowed. The aggregate original principal amount of the Term Loans have to be repaid quarterly in 0.625% installments for one year following the fourth full fiscal quarter after the Effective Date and then at 1.25% until the maturity date. Interest for each Loan is due (a) on the last day of the applicable Interest Period, (b) with each prepayment of principal, and (c) at maturity. All computations of fees and interest (other than interest accruing on ABR Loans at times when the ABR is based on the Prime Rate) are calculated based on a 360-day year and the actual number of days elapsed. All computations of fees and interest accruing on ABR Loans at times when the ABR is based on the Prime Rate are calculated based on a 365-day year (or 366 days in a leap year).

Under the Credit Agreement, we have the option of obtaining additional term loans or increasing the revolving commitments up to an aggregate principal amount of $75.0 million, subject to meeting certain conditions, and only if the applicable incremental lenders agree to provide such additional term loans or revolving commitments. Proceeds of the additional term loans or revolving loans may be used for general corporate purposes.

The Credit Agreement contains affirmative and negative covenants typical of loan agreements of this type, including, among others, limitations on the incurrence of additional indebtedness, liens, dividends and

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distributions in respect of, and repurchases and redemptions of, our capital stock, investments, transactions with affiliates, certain asset sales, changes in our business, organizational documents and fiscal year compliance with the financial covenants (including required maintenance of consolidated net worth and limitations on our consolidated senior debt to capitalization ratio, consolidated total debt to capitalization ratio and consolidated adjusted EBITDA to consolidated interest expenses ratio). We were in compliance with all such covenants as of March 31, 2025.

Events of default under the Credit Agreement are generally typical for loan agreements of this type.

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**DESCRIPTION OF SHARE CAPITAL** 

**General** 

Accelerant Holdings was incorporated in the Cayman Islands in October 2021 with registered number 381680. Our affairs are governed by our memorandum and articles of association and the Cayman Companies Act and the common law of the Cayman Islands.

In connection with this offering, we will amend and restate our memorandum and articles of association. Copies of the forms of our memorandum and articles of association are filed as exhibits to the registration statement of which this prospectus forms a part. Material provisions of our memorandum and articles of association and relevant sections of Cayman Islands law are summarized under "Material Differences in Corporate Law." The following description of our share capital and memorandum and articles of association is qualified in its entirety by the provisions of our memorandum and articles of association.

**Authorized and Outstanding Share Capital** 

As of March 31, 2025, excluding the effects of the retroactive adjustment of the 83.6690-for-1 share subdivision declared by our Board on July 14, 2025 reflected throughout this registration statement, our authorized share capital consisted of 3,486,859 shares, par value $0.0001, of which there were: (i) 3,019,667 Common Shares, par value $0.0001, (ii) 216,020 Class A Convertible Preference Shares, par value $0.0001, (iii) 34,439 Class A-1 Convertible Preference Shares, par value $0.0001, (iv) 150,232 Class B Convertible Preference Shares, par value $0.0001, (v) 1 Class B-1 Convertible Preference Share, par value $0.0001, (vi) 40,774 Class C Convertible Preference Shares, par value $0.0001 and (vii) 25,726 Class C-1 Convertible Preference Shares, par value $0.0001. Upon the completion of this offering, our authorized share capital will consist of (i) 500,000,000 Class A common shares, par value $0.0000011951862 per share, (ii) 140,000,000 Class B common shares, par value $0.0000011951862 per share and (iii) 100,000,000 preference shares, par value $0.0000011951862 per share.

Upon the completion of this offering, based on the number of common shares outstanding as of March 31, 2025, we will have 101,143,134 Class A common shares and 118,843,429 Class B common shares issued and outstanding, after giving effect to the issuance of Class A common shares in this offering, assuming the conversion of all outstanding Accelerant Holdings preference shares into an aggregate of 6,105,595 Class A common shares and 27,419,593 Class B common shares immediately upon the closing of this offering, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range on the cover page of this prospectus) and assuming no exercise by the underwriters of their option to purchase additional Class A common shares.

**Class A Common Shares** 

Holders of Class A common shares are entitled to cast one vote for each share on all matters submitted to a vote of shareholders, including the election of directors. The holders of Class A common shares are entitled to receive ratably such dividends, if any, as may be declared by our directors out of funds legally available therefore. We have not in the past paid and do not expect for the foreseeable future to pay, dividends on our common shares, including our Class A common shares. Instead, we anticipate that all of our earnings, if any, in the foreseeable future will be used for working capital and other general corporate purposes. Any future determination to pay dividends will be at the discretion of our Board of Directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements and contractual restrictions. Such holders do not have any preemptive or other rights to subscribe for additional Class A common shares. All holders of Class A common shares are entitled to share ratably in any assets for distribution to shareholders upon our liquidation, dissolution or winding up.

There are no conversion, redemption, or sinking fund provisions applicable to the Class A common shares.

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**Class B Common Shares** 

Holders of Class B common shares are entitled to cast ten votes for each share on all matters submitted to a vote of shareholders, including the election of directors. The holders of Class B common shares are entitled to receive ratably such dividends, if any, as may be declared by our directors out of funds legally available therefore. We have not in the past paid and do not expect for the foreseeable future to pay, dividends on our common shares, including our Class B common shares. Instead, we anticipate that all of our earnings, if any, in the foreseeable future will be used for working capital and other general corporate purposes. Any future determination to pay dividends will be at the discretion of our Board of Directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements and contractual restrictions. Such holders do not have any preemptive or other rights to subscribe for additional Class B common shares. All holders of Class B common shares are entitled to share ratably in any assets for distribution to shareholders upon our liquidation, dissolution or winding up.

There are no redemption or sinking fund provisions applicable to the Class B common shares.

*Combined Voting Power of Class A common shares and Class B common shares* 

Holders of Class A common shares and Class B common shares will vote together as a single class on all matters requiring approval by our shareholders unless otherwise required by law.

Upon the consummation of this offering, assuming no exercise of the underwriters' option to purchase additional Class A common shares, holders of our Class A common shares will hold approximately 6.4% of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold approximately 93.6% of the combined voting power of our outstanding common shares.

If the underwriters' option to purchase additional shares of our Class A common shares is exercised in full, holders of our Class A common shares will hold approximately 8.4% of the combined voting power of our outstanding common shares, and holders of our Class B common shares will hold approximately 91.6% of the combined voting power of our outstanding common shares. Other than Altamont Capital and any of its affiliates, no holder of common shares or any of its affiliates shall be permitted to exceed the Voting Power Threshold, and any votes to which such holder would otherwise be entitled to in excess thereof shall be disregarded.

*Transfer of Class B Common Shares* 

Each Class B common share shall automatically, without any further action, convert into one Class A common share immediately following a transfer to any person other than a Class B holder or a "Permitted Transferee," as defined in our memorandum and articles of association to include an Affiliate of the Class B holder or one or more trustees of a trust established for the benefit of the Class B holder or an Affiliate. Such conversion shall occur automatically without the need for any further action by the holders of such shares and whether or not the certificates representing such shares (if any) are surrendered to the Company or its transfer agent; provided, however, that the Company shall not be obligated to issue certificates evidencing the Class A common shares issuable upon such conversion unless the certificates evidencing such Class B common shares are either delivered to the Company or its transfer agent, or the holder notifies the Company that such certificates have been lost, stolen or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificates. Upon the occurrence of such automatic conversion of the Class B common shares, the holder of Class B common shares so converted shall surrender the certificates representing such shares (if any) at the offices of the Company or its transfer agent.

"Affiliate" means (i) in the case of a natural person, such person's parents, parents-in-law, spouse, children or grandchildren, a trust for the benefit of any of the foregoing, a company, partnership or any natural person or entity wholly or jointly owned by such person or any of the foregoing, and (ii) in the case of a corporation,

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partnership or other entity or any natural person or entity which directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity. The term "control" shall mean the ownership, directly or indirectly, of shares possessing more than fifty per cent (50%) of the voting power of the corporation, or the partnership or other entity (other than, in the case of a corporation, shares having such power only by reason of the happening of a contingency), or having the power to control the management or elect a majority of members to the board of directors or equivalent decision-making body of such corporation, partnership or other entity.

*Conversion of Class B Common Shares* 

In addition to the automatic conversion of Class B common shares upon transfer as described above, a Class B holder has the right to call upon the Company to effect a conversion of all or any of their Class B common shares into Class A common shares on a one-to-one basis. Additionally, if at any time following the consummation of this offering the holders of the Class B common shares immediately prior to the consummation of this offering hold less than 50% of the total Class B common shares then in issue, then all Class B common shares then in issue shall automatically convert into Class A common shares. In any event, all of the Class B common shares will automatically convert into Class A common shares as of the date which is the third anniversary of the consummation of this offering.

**Preference Shares** 

Pursuant to our articles of association to be in effect upon the completion of this offering, our Board of Directors will be authorized, without any action by our shareholders, to designate and issue preference shares in one or more classes and to designate the powers, preferences and rights of each class, which may be greater than the rights of our common shares. It is not possible to state the actual effect of the issuance of any shares of preference shares upon the rights of holders of our common shares until the Board of Directors determines the specific rights of the holders of such preference shares. However, the effects might include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairing dividend rights of our common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diluting the voting power of our common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairing the liquidation rights of our common shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delaying or preventing a change of control of us without further action by our shareholders.

Upon the completion of this offering, all existing Class A convertible preference shares and Class B convertible preference shares will be converted to Class A common shares or Class B common shares, as applicable. Holders of Class C convertible preference shares may elect to convert to Class A common shares or Class B common shares, as applicable, at the time of the offering. While we anticipate that holders of the Class C convertible preference shares will elect to convert to Class A common shares or Class B common shares, as applicable, variability in the timing or pricing of this offering may result in holders electing to redeem their Class C convertible preference shares. The share capital will be redesignated in the amended and restated memorandum and articles of association to eliminate Class A convertible preference shares and Class B convertible preference shares (and Class C convertible preference shares, if applicable) as separate share classes, and we have no present plan to issue any of our preference shares following this offering.

**Limitations on the Right to Own or Vote Shares** 

As a Cayman Islands company, we may not hold our own shares as a shareholder, save for shares that are redeemed or repurchased by us or surrendered by a shareholder and held as treasury shares. We may not exercise any voting or other rights in respect of treasury shares nor may any dividend be declared or paid or other distribution be made in respect of treasury shares. However, bonus shares may be issued in respect of treasury shares although they will, in turn, be treated as treasury shares.

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**Limitations on Transfer of Shares** 

Our articles of association give our directors, at their discretion, the right to decline to register any transfers of shares that are not fully paid-up shares.

**Changes in Share Capital** 

We may, from time to time, by ordinary resolution passed by a majority of the votes cast by shareholders present at a shareholder meeting entitled to vote on such resolution, or passed by a unanimous written consent of shareholders entitled to vote for so long as we are a controlled company, increase our share capital by such sum, to be allocated among shares of such par value, as the resolution shall prescribe. The new shares shall be subject to the same provisions with reference to the payment of calls, liens, transfers, transmissions, forfeitures and otherwise as the shares in the original share capital. We may by ordinary resolution passed at a shareholder meeting by a majority of the votes cast by shareholders present at such meeting and entitled to vote on such resolution, or passed by a unanimous written consent of shareholders entitled to vote for so long as we are a controlled company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase our share capital by such sum as the ordinary resolution may provide, provided that, subject to
certain exceptions, no increase in the authorized number of Class B common shares shall be effective without an ordinary resolution of the holders of the majority of the Class A common shares voting as a separate class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidate our share capital into shares of larger par value than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sub-divide our share capital into shares of smaller par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• divide our shares into multiple classes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cancel any shares which, at the date of the passing of the resolution, have not been issued and diminish the
amount of the shares so cancelled.

We may by special resolution passed by at least two-thirds of the votes cast by shareholders present at a shareholder meeting and entitled to vote on such resolution, or passed by a unanimous written consent of shareholders entitled to vote for so long as we are a controlled company, reduce our share capital to the extent not representing shares in issue or following court application and consent, reduce our share capital in relation to shares in issue or any capital redemption reserve fund maintained in accordance with the Cayman Companies Act.

**Business Opportunities** 

Our articles of association, to the maximum extent permitted from time to time by Cayman Islands law, renounce any interest or expectancy that we have in, or any right to be offered an opportunity to participate in, any business opportunities that are from time to time presented to Altamont Capital, Eldridge Industries, LLC or Barings LLC or their respective affiliates or any of their directors, partners, principals, officers, members, manager and/or employees who is also a director or officer ("Exempted Persons") other than to those directors who are employed by us or our subsidiaries, unless the business opportunity is expressly offered to such person in his or her capacity as a director or officer.

Our articles of association provide that, to the maximum extent permitted from time to time by Cayman Islands law, none of the Exempted Persons, or any director who is not employed by us or any of his or her affiliates, will have any duty to refrain from (1) engaging in similar lines of business in which we or our affiliates are presently engaged or propose to engage or (2) otherwise competing with us or our affiliates. In addition, our articles of association provide that, to the maximum extent permitted from time to time by Cayman Islands law, in the event that any Exempted Person or any nonemployee director acquires knowledge of a potential transaction or other business opportunity, such person will have no duty to communicate or offer such transaction or business opportunity to us or any of our affiliates and they may take any such opportunity for themselves

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itself, himself or herself or offer it to another person or entity unless the business opportunity is expressly offered to such person in his or her capacity as our director. Our articles of association provide that, such document may only be amended with the consent of Altamont Capital, for so long as Altamont Capital beneficially owns at least 50% of the voting power of our outstanding shares.

**Registration Rights** 

For information about registration rights, please see "Certain Relationships and Related-Party Transactions—Registration Rights Agreement."

**Authorized but Unissued Shares** 

Upon completion of this offering, we will have 398,856,866 Class A common shares, 21,156,571 Class B common shares and 100,000,000 preference shares remaining authorized but unissued. Issuance of these shares will dilute your percentage ownership in us.

**Transfer Agent and Registrar** 

The transfer agent and registrar for our Class A common shares is Computershare Trust Company, N.A. Its address is 150 Royall Street, Canton, Massachusetts 02021.

**Listing** 

Our Class A common shares have been approved for listing, subject to official notice of issuance, on the NYSE under the symbol "ARX."

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**MATERIAL DIFFERENCES IN CORPORATE LAW** 

**Differences in Corporate Law** 

We are incorporated under the laws of the Cayman Islands. The Cayman Companies Act is modeled after the corporate legislation of the United Kingdom but does not follow recent United Kingdom statutory enactments, and differs from laws applicable to United States corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions of the Cayman Companies Act applicable to us and the laws applicable to companies incorporated in the State of Delaware and their shareholders.

This discussion does not purport to be a complete statement of the rights of holders of our Class A common shares under applicable Cayman Islands law and our amended and restated memorandum and articles of association or the rights of holders of the common stock of a typical corporation under applicable Delaware law and a typical certificate of incorporation and bylaws.

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|  | **Delaware** | **Cayman Islands** |
|  Title of Organizational Documents | Certificate of Incorporation<br> Bylaws | Memorandum of Association<br> Articles of Association |
|  Duties of Directors | Under Delaware law, the business and affairs of a corporation are managed by or under the direction of its board of directors. In exercising their powers, directors are charged with a fiduciary duty of care to protect the interests of the corporation and a fiduciary duty of loyalty to act in the best interests of its shareholders. The duty of care requires that directors act in an informed and deliberative manner and inform themselves, prior to making a business decision, of all material information reasonably available to them. The duty of care also requires that directors exercise care in overseeing and investigating the conduct of the corporation's employees. The duty of loyalty may be summarized as the duty to act in good faith, not out of self-interest, and in a manner which the director reasonably believes to be in the best interests of the shareholders. | As a matter of Cayman Islands law, directors of Cayman Islands companies owe fiduciary duties to their respective companies to, amongst other things, act in good faith in their dealings with or on behalf of the company and exercise their powers and fulfill the duties of their office honestly. This duty has four essential elements:<br>a duty to act in good faith in what the directors bona fide consider to be the best interests of the company (and in this regard, it should be noted that the duty is owed to the company and not to associate companies, subsidiaries or holding companies);<br>a duty not to personally profit from opportunities that arise from the office of director;<br>a duty of trusteeship of the company's assets;<br>a duty to avoid conflicts of interest; and<br>a duty to exercise powers for the purpose for which such powers were conferred.<br>A director of a Cayman Islands company also owes the company a |

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|  | **Delaware** | **Cayman Islands** |
|  |  | duty to act with skill, care and diligence. A director need not exhibit in the performance of his or her duties a greater degree of skill than may reasonably be expected from a person of his or her knowledge and experience. However, Cayman Islands law permits the duty to avoid conflicts of interest to be modified by a company's articles of association. |
|  Limitations on Personal Liability of Directors and Officers | Subject to the limitations described below, a certificate of incorporation may provide for the elimination or limitation of the personal liability of a director or officer to the corporation or its shareholders for monetary damages for a breach of fiduciary duty as a director or officer.<br>Such provision cannot limit liability for breach of loyalty, bad faith, intentional misconduct, unlawful payment of dividends, or unlawful share purchase or redemption. In addition, the certificate of incorporation cannot limit liability for any act or omission occurring prior to the date when such provision becomes effective. | The Cayman Companies Act has no equivalent provision to Delaware law regarding the limitation of director's liability. However, as a matter of public policy, Cayman Islands law will not allow the limitation of a director's liability to the extent that the liability is a consequence of the director committing a crime or of the director's own actual fraud, dishonesty or willful default. |
|  Indemnification of Directors, Officers, Agents, and Others | A corporation has the power to indemnify any director, officer, employee, or agent of corporation who was, is, or is threatened to be made a party who acted in good faith and in a manner he believed to be in the best interests of the corporation, and if with respect to a criminal proceeding, had no reasonable cause to believe his conduct would be unlawful, against amounts actually and reasonably incurred. | Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against the consequences of committing a crime, or against the indemnified person's own actual fraud, willful deceit, or dishonesty. |
|  Interested Directors | Under Delaware law, subject to provisions in the certificate of incorporation, a transaction in which a director who has an interest in such transaction would not be voidable if (i) the material facts as to such interested director's relationship or | Our articles of association contain provisions that permit a director to vote on a transaction in which he or she is interested provided he or she discloses such interest to the board of directors. |

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|  | **Delaware** | **Cayman Islands** |
|  | interests are disclosed or are known to the board of directors and the board in good faith authorizes the transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum, (ii) such material facts are disclosed or are known to the shareholders entitled to vote on such transaction and the transaction is specifically approved in good faith by vote of the shareholders, or (iii) the transaction is fair as to the corporation as of the time it is authorized, approved or ratified. Under Delaware law, a director could be held liable for any transaction in which such director derived an improper personal benefit. |  |
|  Voting Requirements | The certificate of incorporation may include a provision requiring supermajority approval by the directors or shareholders for any corporate action.<br>In addition, under Delaware law, certain business combinations involving interested shareholders require approval by a supermajority of the non-interested shareholders. | For the protection of shareholders, certain matters must be approved by special resolution of the shareholders as a matter of Cayman Islands law, including alteration of the memorandum or articles of association, appointment of inspectors to examine company affairs, reduction of share capital (subject, in relevant circumstances, to court approval), change of name, authorization of a plan of merger or consolidation or voluntary winding up of the company.<br>The Cayman Companies Act requires that a special resolution be passed by a super majority of two-thirds or such higher percentage as set forth in the articles of association, of shareholders being entitled to vote and do vote in person or by proxy at a general meeting, or by unanimous written consent of shareholders. |
|  Voting for Directors | Under Delaware law, unless otherwise specified in the certificate of incorporation or bylaws of the corporation, directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. | The Cayman Companies Act defines "special resolutions" only. A company's articles of association can therefore tailor the definition of "ordinary resolutions" as a whole, or with respect to specific provisions. Our articles of association provide that with respect to the election of directors, an ordinary resolution shall be passed by |

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|  | **Delaware** | **Cayman Islands** |
|  |  | a majority of the votes cast by such members as being entitled to vote in person or by proxy. |
|  Cumulative Voting | No cumulative voting for the election of directors unless so provided in the certificate of incorporation. | No cumulative voting for the election of directors unless so provided in the articles of association. |
|  Directors' Powers<br>Regarding Bylaws | The certificate of incorporation may grant the directors the power to adopt, amend, or repeal bylaws. | The memorandum and articles of association may only be amended by a special resolution of the shareholders. |
|  Nomination and Removal of Directors and Filling Vacancies on Board | Shareholders may generally nominate directors if they comply with advance notice provisions and other procedural requirements in company bylaws. Holders of a majority of the shares may remove a director with or without cause, except in certain cases involving a classified board or if the company uses cumulative voting. Unless otherwise provided for in the certificate of incorporation, directorship vacancies are filled by a majority of the directors elected or then in office. | Election and removal of directors and filling of board vacancies are governed by the terms of the articles of association. Our articles of association provide that our directors shall be divided into three classes each serving a three year term. The shareholders shall elect directors of the relevant class by ordinary resolution at each annual general meeting. Our articles of association also provide that shareholders may only remove directors for cause and with a special resolution of two-thirds. Under our articles of association and subject to the Registration Rights Agreement, vacancies on the board are generally filled by the vote of a majority of the directors elected or then in office. |
|  Mergers and Similar Arrangements | Under Delaware law, with certain exceptions, a merger, consolidation, exchange or sale of all or substantially all the assets of a corporation must be approved by the board of directors and a majority of the outstanding shares entitled to vote thereon. Under Delaware law, a shareholder of a corporation participating in certain major corporate transactions may, under certain circumstances, be entitled to appraisal rights pursuant to which such shareholder may receive cash in the amount of the fair value of the shares held by such shareholder (as determined by a court) in lieu of the consideration such shareholder would otherwise receive in the transaction.<br>Delaware law also provides that a parent corporation, by resolution of its board of directors, may merge with | The Cayman Companies Act provides for mergers and consolidations where two or more companies are being formed into a single entity. The legislation makes a distinction between a "consolidation" and a "merger." In a consolidation, a new entity is formed from the combination of each participating company, and the separate consolidating parties, as a consequence, cease to exist and are each stricken by the Registrar of Companies. In a merger, one company remains as the surviving entity, having in effect absorbed the other merging parties that are then stricken and cease to exist.<br>Two or more Cayman-registered companies may merge or consolidate. Cayman-registered companies may |

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| **Delaware** | **Cayman Islands** |
| any subsidiary, of which it owns at least 51% of each class of capital stock without a vote by shareholders of such subsidiary. Upon any such merger, dissenting shareholders do not have appraisal rights if (1) the merger consideration received for the shares consists solely of stock of the surviving company that is listed on a national securities exchange or held of record by more than 2,000 holders, (2) in cash in lieu of fraction shares or (3) any combination of (1) and (2). | also merge or consolidate with foreign companies provided that the laws of<br> the foreign jurisdiction permit such merger or consolidation.<br>Under the Cayman Companies Act, a plan of merger or consolidation shall be authorized by each constituent company by way of (i) a special resolution of the members of each such constituent company; and (ii) such other authorization, if any, as may be specified in such constituent company's articles of association.<br>Shareholder approval is not required where a parent company registered in the Cayman Islands seeks to merge with one or more of its subsidiaries registered in the Cayman Islands and a copy of the plan of merger is given to every member of each subsidiary company to be merged unless that member agrees otherwise.<br>Where the merger or consolidation involves a foreign company, the procedure is similar, save that with respect to the foreign company, the director of the Cayman Islands company is required to make a declaration to the effect that, having made due enquiry, he is of the opinion that the requirements set out below have been met: (i) that the merger or consolidation is permitted or not prohibited by the constitutional documents of the foreign company and by the laws of the jurisdiction in which the foreign company is incorporated, and that those laws and any requirements of those constitutional documents have been or will be complied with; (ii) that no petition or other similar proceeding has been filed and remains outstanding or order made or resolution adopted to wind up or liquidate the foreign company in any jurisdictions; (iii) that no receiver, trustee, administrator, or other similar person has been appointed in any jurisdiction and is acting in respect of |

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| **Delaware** | **Cayman Islands** |
|  | the foreign company, its affairs or its property or any part thereof; (iv) that no scheme, order, compromise, or other similar arrangement has been entered into or made in any jurisdiction whereby the rights of creditors of the foreign company are and continue to be suspended or restricted.<br>Where the surviving company is the Cayman Islands company, the director of the Cayman Islands company is further required to make a declaration to the effect that, having made due enquiry, he is of the opinion that the requirements set out below have been met: (i) that the foreign company is able to pay its debts as they fall due and that the merger or consolidated is bona fide and not intended to defraud unsecured creditors of the foreign company; (ii) that in respect of the transfer of any security interest granted by the foreign company to the surviving or consolidated company (a) consent or approval to the transfer has been obtained, released or waived; (b) the transfer is permitted by and has been approved in accordance with the constitutional documents of the foreign company; and (c) the laws of the jurisdiction of the foreign company with respect to the transfer have been or will be complied with; (iii) that the foreign company will, upon the merger or consolidation becoming effective, cease to be incorporated, registered or exist under the laws of the relevant foreign jurisdiction; and (iv) that there is no other reason why it would be against the public interest to permit the merger or consolidation.<br>Secured creditors must consent to the merger although application can be made to the Grand Court of the Cayman Islands to proceed if such secured creditor does not grant its consent to the merger. Where a foreign company wishes to merge with a Cayman company, consent or approval |

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| **Delaware** | **Cayman Islands** |
|  | to the transfer of any security interest granted by the foreign company to the resulting Cayman entity in the transaction is required, unless otherwise released or waived by the secured party. If the merger plan is approved, it is then filed with the Cayman Islands General Registry along with a declaration by a director of each company. The Registrar of Companies will then issue a certificate of merger which shall be prima facie evidence of compliance with all requirements of the Cayman Companies Act in respect of the merger or consolidation. The surviving entity remains active while the other company or companies are automatically dissolved. Where the above procedures are adopted, the Cayman Companies Act provides for a right of dissenting shareholders to be paid a payment of the fair value of his shares upon their dissenting to the merger or consolidation if they follow a prescribed procedure.<br>Cayman companies may also be restructured or amalgamated under supervision of the Grand Court of the Cayman Islands by way of a "scheme of arrangement." This option is not used with any frequency because a business transaction can be achieved through other means, such as a share capital exchange, merger (as described above), asset acquisition or control, through contractual arrangements, of an operating business. In the event that a business transaction is sought pursuant to a scheme of arrangement it would require the approval of a majority, in number, of each class of shareholders and creditors with whom the arrangement is to be made and who must in addition represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a |

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| **Delaware** | **Cayman Islands** |
|  | meeting, or meeting summoned for that purpose.<br>The convening of the meetings and subsequently the terms of the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder would have the right to express to the Court the view that the transaction ought not be approved, the Court can be expected to approve the arrangement if it satisfies itself that:<br>the company is not proposing to act illegally or beyond the scope of its authority and the statutory provisions as to majority vote have been complied with;<br>the shareholders and creditors (as applicable) have been fairly represented at the meeting in question; and<br>the arrangement is such as a businessman would reasonably approve; and the arrangement is not one that would more properly be sanctioned under some other provision of the Cayman Companies Act or that would amount to a "fraud on the minority" (a legal concept, different than "fraud" in the sense of dishonesty).<br>When a takeover offer is made and accepted by holders of 90% of the shares to whom the offer is made within four months, the offeror may, within a two-month period, compulsorily require the holders of the remaining shares to transfer such shares to the offeror on the terms of the offer. An objection may be made to the Grand Court of the Cayman Islands by any dissenting shareholder but is unlikely to succeed unless there is evidence of fraud, bad faith or collusion.<br>If the arrangement and reconstruction are thus approved, any dissenting shareholders would have no rights comparable to appraisal rights, which |

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|  | **Delaware** | **Cayman Islands** |
|  |  | would otherwise ordinarily be available to dissenting shareholders of United States corporations, providing rights to receive payment in cash for the judicially determined value of the shares.<br>|
|  Shareholder Suits | Class actions and derivative actions generally are available to shareholders under Delaware law for, among other things, breach of fiduciary duty, corporate waste and actions not taken in accordance with applicable law. In such actions, the court generally has discretion to permit the winning party to recover attorneys' fees incurred in connection with such action. | The rights of shareholders under Cayman Islands law are not as extensive as those under Delaware law. Class actions are generally not available to shareholders under Cayman Islands laws and our Cayman Islands counsel is not aware of a significant number of such reported actions having been brought in Cayman Islands courts. Derivative actions have been brought in the Cayman Islands courts and the Cayman Islands courts have confirmed the availability for such actions. In principle, we will normally be the proper plaintiff in any claim based on a breach of duty owed to us and a claim against (for example) our officers and directors usually may not be brought by a shareholder. However, the Cayman Islands courts would ordinarily be expected to follow English case law precedent, which would permit a shareholder to commence an action in the company's name to remedy a wrong done to it where the act complained of is alleged to be beyond the company's corporate power or is illegal or would result in the violation of its memorandum of association or articles of association or where the individual rights of the plaintiff shareholder have been infringed or are about to be infringed. Furthermore, consideration would be given by the court to acts that are alleged to constitute a "fraud on the minority" or where an act requires the approval of a greater percentage of shareholders than actually approved it. The winning party in such an action generally would be able to recover a portion of attorney's fees incurred in connection with such action. |

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|  | **Delaware** | **Cayman Islands** |
|  Inspection of Corporate Records | Under Delaware law, shareholders of a Delaware corporation have the right during normal business hours to inspect for any proper purpose, and to obtain copies of list(s) of shareholders and other books and records of the corporation and its subsidiaries, if any, to the extent the books and records of such subsidiaries are available to the corporation. | Shareholders of a Cayman Islands exempted company have no general right under Cayman Islands law to inspect or obtain copies of a list of shareholders or other corporate records of the company (other than copies of the memorandum and articles of association and any special resolutions passed by such company, and the registers of mortgages and charges of such company). However, these rights may be provided in the company's articles of association. |
|  Shareholder Proposals | Unless provided in the corporation's certificate of incorporation or bylaws, Delaware law does not include a provision restricting the manner in which shareholders may bring business before a meeting. | The Cayman Companies Act does not provide shareholders any right to bring business before a meeting or requisition a general meeting. However, these rights may be provided in the company's articles of association.<br>Our articles of association establish advance notice procedures with respect to shareholder proposals and the nomination of candidates for election as directors, other than nominations pursuant to the Registration Rights Agreement. Shareholders at a general meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of our board or by a shareholder who was a shareholder of record on both the record date for the meeting and the date of giving the notice of such business, who is entitled to vote at the meeting and who has given timely written notice, in proper form, of the shareholder's intention to bring that business before the meeting. Although our articles of association will not give our board the power to approve or disapprove shareholder nominations of candidates or proposals regarding other business to be conducted at a general meeting, our articles of association may have the effect of precluding the conduct of certain business at a meeting if the proper |

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|  | **Delaware** | **Cayman Islands** |
|  |  | procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the Company. |
|  Approval of Corporate Matters by Written Consent | Delaware law permits shareholders to take action by written consent signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting of shareholders. | The Cayman Companies Act allows a special resolution to be passed in writing if signed by all the voting shareholders and authorized by the articles of association.<br>Our articles of association authorize such written consents but we believe that the unanimity requirement will make this option impractical after the consummation of this offering. |
|  Calling of Special Shareholders Meetings | Delaware law permits the board of directors or any person who is authorized under a corporation's certificate of incorporation or bylaws to call a special meeting of shareholders. | The Cayman Companies Act does not have provisions governing the proceedings of shareholders meetings which are usually provided in the articles of association.<br>Our articles of association do not allow shareholders to call extraordinary general meetings. Extraordinary general meetings may only be called by a majority of the directors on our board or by the chairman of our board. |

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our Class A common shares, and there can be no assurance that a significant public market for our Class A common shares will develop or be sustained after this offering. Future sales of substantial amounts of our Class A common shares in the public market (including securities convertible into or redeemable, exchangeable or exercisable for Class A common shares) or the perception that such sales may occur, or the availability of such shares for sale in the public market after this offering could adversely affect the prevailing market price of our Class A common shares. Furthermore, because substantially all of our Class A common shares and Class B common shares outstanding prior to the completion of this offering (including securities convertible into or redeemable, exchangeable, or exercisable for our Class A common shares or Class B common shares) will be subject to the contractual and legal restrictions on resale described below, the sale of a substantial amount of Class A common shares in the public market after these restrictions lapse could materially adversely affect the prevailing market price of our Class A common shares and our ability to raise equity capital in the future.

Upon the completion of this offering, based on the assumed initial public offering price of $19.00 per share (which is the midpoint of the estimated initial public offering price range on the cover page of this prospectus), we expect to have 101,143,134 Class A common shares outstanding and 118,843,429 Class B common shares outstanding, assuming the conversion of all outstanding Accelerant Holdings preference shares into an aggregate of 6,105,595 Class A common shares and 27,419,593 Class B common shares immediately upon the closing of this offering and no exercise of outstanding options, an 83.6690-for-1 share subdivision, which became effective on July 14, 2025 and assuming that the underwriters have not exercised their option to purchase additional Class A common shares.

All of the Class A common shares sold in this offering will be freely transferable without restriction or further registration under the Securities Act by persons other than "affiliates," as that term is defined in Rule 144 under the Securities Act, except that any Class A common shares purchased by our directors will be subject to the lock-up agreements described below.

Generally, the balance of our outstanding Class A common shares will be deemed "restricted securities" within the meaning of Rule 144 under the Securities Act, subject to the limitations and restrictions that are described below. Class A common shares purchased by our affiliates or by our directors, officers and employees in the directed share program will be "restricted securities" under Rule 144. Restricted securities may be sold in the public market only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which rules are summarized below.

As a result of the lock-up and market standoff agreements described below and the provisions of our Registration Rights Agreement described in the section titled "Description of Share Capital—Registration Rights," and subject to the provisions of Rule 144 or Rule 701, Class A common shares will be available for sale in the public market as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning on the date of this prospectus, all 28,947,368 Class A common shares sold in this offering will be
immediately available for sale in the public market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning 180 days after the date of this prospectus, 197.7 million additional Class A common
shares and shares convertible into Class A common shares may become eligible for sale in the public market upon the satisfaction of certain conditions as set forth in the section titled "—Lock-Up Agreements," of which 149.6 million shares would be held by affiliates and subject to the volume and other restrictions of Rule 144, as described below.

Upon the expiration of the lock-up agreements described below, 180 days after the date of this prospectus, and subject to the provisions of Rule 144, an additional 197.7 million Class A common shares, including 117.2 million Class A common shares issuable upon the conversion of our outstanding Class B common shares

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will be available for sale in the public market. The sale of these restricted securities is subject, in the case of shares held by affiliates, to the volume restrictions contained in those rules.

**Lock-up Agreements** 

We, the selling shareholders, and all of our directors and executive officers, and certain holders of our Class A common shares and securities exercisable for or convertible into our Class A common shares (including our Class B common shares) outstanding immediately on the closing of this offering, have agreed that, without the prior written consent of Morgan Stanley & Co. LLC, we and they will not, subject to limited exceptions, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale, or otherwise dispose of or hedge any of our Class A common shares, any options, or any securities convertible into, or exchangeable for or that represent the right to receive our Class A common shares for a period of 180 days after the date of this prospectus. Certain of our executive officers and employees have pledged their Class A common shares to lenders as collateral for lending facilities. A total of 199.4 million Class A common shares and shares convertible into Class A common shares, or 99.9% of our outstanding Class A common shares and shares convertible into Class A common shares, are subject to such agreements. The lock-up restrictions and specified exemptions are described in more detail under "Underwriting."

In addition to the restrictions contained in the lock-up agreements described above, we have entered into agreements with certain security holders, including our Registration Rights Agreement, that contain or will contain market stand-off provisions imposing restrictions on the ability of such security holders to offer, sell, or transfer our equity securities for a period of 180 days following the date of this prospectus.

**Rule 144** 

In general, under Rule 144 as in effect on the date of this prospectus, beginning 90 days after the completion of this offering, a person (or persons whose Class A common shares are required to be aggregated) who is an affiliate and who has beneficially owned our Class A common shares for at least six months is entitled to sell in any three-month period a number of Class A common shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of our Class A common shares then outstanding, which will equal 1,011,431 Class A common
shares immediately after completion of this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume in our Class A common shares on the NYSE during the four calendar weeks
preceding the filing of a notice on Form 144 with respect to such a sale.

Sales by our affiliates under Rule 144 are also subject to manner of sale provisions and notice requirements and to the availability of current public information about us. An "affiliate" is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, an issuer.

Under Rule 144, a person (or persons whose shares are aggregated) who is not deemed to have been an affiliate of ours at any time during the 90 days preceding a sale, and who has beneficially owned the shares proposed to be sold for at least six months (including the holding period of any prior owner other than an affiliate), would be entitled to sell those shares subject only to availability of current public information about us, and after beneficially owning such shares for at least 12 months, would be entitled to sell an unlimited number of shares without restriction. To the extent that our affiliates sell their Class A common shares, other than pursuant to Rule 144 or a registration statement, the purchaser's holding period for the purpose of effecting a sale under Rule 144 commences on the date of transfer from the affiliate.

**Rule 701** 

In general, under Rule 701 as in effect on the date of this prospectus, any of our employees, directors, officers, consultants, or advisors who purchased Class A common shares from us in reliance on Rule 701 in connection with

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a compensatory stock or option plan or other written agreement before the effective date of this offering, or who purchased Class A common shares from us after that date upon the exercise of options granted before that date, are eligible to resell such Class A common shares 90 days after the effective date of this offering in reliance upon Rule 144. If such person is not an affiliate, such sale may be made subject only to current public information provisions of Rule 144. If such a person is an affiliate, such sale may be made under Rule 144 without compliance with the holding period requirement, but subject to the other Rule 144 restrictions described above.

**Stock Plans** 

We intend to file one or more registration statements on Form S-8 under the Securities Act to register all Class A common shares issued or issuable under our equity incentive plans. Any such Form S-8 registration statements will automatically become effective upon filing. Accordingly, Class A common shares registered under such registration statements will be available for sale in the open market following the expiration of the applicable lock-up period. We expect that the initial registration statement on Form S-8 will cover approximately 48,267,340 Class A common shares. Class A common shares issued under our equity incentive plans after the effective date of the applicable Form S-8 registration statement will be eligible for resale in the public market without restriction, subject to Rule 144 limitations applicable to affiliates and the lock-up agreements described above. See "Executive Compensation—Equity Compensation Plans and Other Benefit Plans" for a description of our equity compensation plans.

**Registration Rights** 

Following this offering, some of our Class B shareholders will, under some circumstances, have the right to require us to register their shares for future sale. See "Certain Relationships and Related-Party Transactions—Registration Rights Agreement" and "Description of Share Capital—Registration Rights." If the offer and sale of these Class A common shares are registered, the Class A common shares will be freely tradable without restriction under the Securities Act, subject to certain transfer restrictions described in "Certain Relationships and Related-Party Transactions—Registration Rights Agreement" and subject to the Rule 144 limitations applicable to affiliates, and a large number of Class A common shares may be sold into the public market.

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**CERTAIN MATERIAL TAX CONSIDERATIONS** 

**U.S. Federal Income Tax Considerations** 

The following is a general discussion of the material U.S. federal income tax considerations relating to the ownership and disposition of our Class A common shares purchased in this offering. Statements herein regarding the beliefs, expectations and intentions of Accelerant and its subsidiaries represent the view of management and do not represent the opinions of counsel. The discussion is based on the Code, U.S. Treasury regulations, judicial decisions and administrative pronouncements, all as currently in effect. Such authorities are subject to change, possibly with retroactive effect. Any such change could result in U.S. federal income tax consequences that are materially different from those described below. Moreover, any change after this offering in any of the factual matters set forth in this prospectus or in the conduct, practices or activities of Accelerant and its subsidiaries may affect the considerations discussed below. We are under no obligation to update the discussion to reflect future changes in law or changes in any of the foregoing factual matters that may later come to our attention.

This discussion does not address all aspects of U.S. federal income taxation that may be relevant to all prospective investors, some of which, such as dealers in securities, banks, thrifts or other financial institutions, insurance companies, regulated investment companies, tax-exempt organizations, U.S. expatriates, persons that hold our Class A common shares as part of a straddle, conversion transaction or hedge, persons deemed to sell our Class A common shares under the constructive sale provisions of the Code, investors that are subject to the alternative minimum tax, investors whose functional currency is not the U.S. dollar, investors that are treated as partnerships for U.S. federal income tax purposes, investors that are treated as S corporations for U.S. federal income tax purposes, investors that are subject to section 451(b) of the Code, investors that are not the beneficial owners of our Class A common shares, and investors that own, actually or under applicable constructive ownership rules, 10% or more of our Class A common shares, may be subject to special rules. This discussion deals only with holders who purchase our Class A common shares in connection with this offering and hold our Class A common shares as a capital asset (within the meaning of Section 1221 of the Code). If an entity treated as a partnership for U.S. federal income tax purposes holds our Class A common shares, the U.S. federal income tax treatment of a partner of the partnership will depend on the status of the partner and the activities of the partnership. If you are a partner of a partnership holding Class A common shares, you are urged to consult your tax advisor regarding the consequences to you of the partnership's ownership and disposition of our Class A common shares.

This discussion does not address any U.S. federal tax laws other than the U.S. federal income tax laws and laws governing excise tax on insurance and reinsurance premiums, any U.S. state or local tax laws or any non-U.S. tax laws. You are encouraged to consult your tax advisors concerning the overall tax consequences arising in your own particular situation under U.S. federal, state, local and non-U.S. laws from the ownership and disposition of our Class A common shares. The conclusions expressed in the discussion below are not binding on the IRS or any court, and there is no assurance that the IRS or a court would not reach a contrary conclusion. No ruling has been or will be sought from the IRS regarding any matter discussed in this prospectus.

***Taxation of Accelerant and Its Subsidiaries***

In general, a non-U.S. corporation is subject to U.S. federal income tax on its taxable income which is effectively connected with the conduct of a trade or business in the United States, including a branch profits tax based upon its after-tax effectively connected earnings and profits, with certain adjustments. Accelerant and its non-U.S. subsidiaries intend to limit their U.S. activities so that they are not considered to be engaged in a U.S. trade or business. No definitive standards, however, are provided by the Code, U.S. Treasury regulations or court decisions regarding when a foreign corporation is engaged in the conduct of a U.S. trade or business. Because the law is unclear, and the determination is highly factual and must be made annually, there can be no assurance that the IRS will not contend that Accelerant or any its non-U.S. subsidiaries treated as a corporation for U.S. federal income tax purposes is engaged in a U.S. trade or business. If any such entity were found to be so engaged, it

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would be subject to U.S. federal income tax on income effectively connected with the conduct of such a U.S. trade or business at regular corporate rates (currently 21%), and it may be subject to a 30% branch profits tax on its after-tax effectively connected earnings and profits. A non-U.S. corporation is generally entitled to deductions and credits only if it timely files a U.S. federal income tax return. Accelerant and certain of its non-U.S. subsidiaries have in the past filed, and intend to continue to file, such returns on a protective basis for each tax year. It is possible that a tax treaty could mitigate certain of the foregoing tax consequences to the extent that a non-U.S. subsidiary does not have business profits attributable to a permanent establishment in the United States. However, no assurances can be provided that benefits under any such treaty will be available.

Accelerant's U.S. corporate subsidiaries will generally be subject to U.S. federal income tax at regular corporate rates (currently 21%).

**Net Investment Income** 

Non-U.S. insurance companies carrying on an insurance business within the United States are treated under the Code as having a certain minimum amount of effectively connected net investment income, determined in accordance with a formula that depends, in part, on the amount of U.S. risk insured or reinsured by such companies. If, contrary to our intention, a Non-U.S. Carrier is considered to be engaged in the conduct of an insurance business in the United States and is not entitled to benefits under an applicable tax treaty, a significant portion of such Non-U.S. Carrier's investment income could be subject to U.S. federal income tax.

**Withholding Tax** 

Non-U.S. corporations not engaged in a trade or business in the United States generally are subject to a 30% U.S. federal income tax (imposed on a gross basis and generally collected by withholding) on certain "fixed or determinable annual or periodical gains, profits and income" from sources within the United States. Such income includes amounts treated as dividends from U.S. corporations and certain interest on investments but does not include insurance premiums paid with respect to a contract that is subject to the excise tax described below. We believe that we and the entities through which we hold our U.S. subsidiaries are eligible for a 5% rate of withholding on dividends under the U.S.-UK Tax Treaty unless we have owned shares representing at least 80% of the voting power of a U.S. subsidiary paying a dividend for the 12-month period ending on the date the dividend was declared, in which case there would be no U.S. withholding on such dividend under the U.S.-UK Tax Treaty. We intend to manage our affairs in a manner that is intended to allow such entities to qualify for such reduction in or exemption from U.S. withholding tax under the U.S.-UK Tax Treaty. However, no assurances can be made that (i) we will qualify for benefits under the U.S.-UK Tax Treaty, (ii) the U.S.-UK Tax Treaty will provide relief from this potential withholding tax or (iii) we would qualify for similar relief under another tax treaty if benefits under the U.S.-UK Tax Treaty were unavailable, in each case, for a taxable year that includes a distribution from our U.S. subsidiaries. We may therefore be limited in our ability to move cash efficiently from our U.S. subsidiaries or to make distributions with respect to our Class A common shares.

**Excise Tax** 

The United States imposes an excise tax on insurance and reinsurance premiums paid to non-U.S. insurers or reinsurers with respect to risks located in the United States. The applicable tax rates are 4% for P&C premiums and 1% for reinsurance premiums. The person who pays the premium to the non-U.S. insurer or reinsurer is customarily responsible for the excise tax. If, however, the tax is not paid by the purchaser of the insurance or reinsurance, the non-U.S. insurer may be held liable for the tax. Accordingly, if our Non-U.S. Carriers insure or reinsure U.S. risks, and their counterparty were not to pay this excise tax, our Non-U.S. Carriers could be held liable for it.

**The Base Erosion and Anti-Abuse Tax** 

The BEAT is a tax imposed on certain U.S. companies that make deductible payments to related non-U.S. companies. The BEAT is generally equal to the excess of a 10% tax on the taxpayer's "modified taxable income"

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over the taxpayer's regular tax liability (reduced by certain credits), with "modified taxable income" being computed without regard to certain deductions for "base erosion payments". The tax on "modified taxable income" also increases from 10% to 10.5% for taxable years beginning after 2025. The BEAT applies to deductions arising out of "any premium or other consideration" paid or accrued to a related foreign reinsurer. Both our U.S. and non-U.S. ceding companies reinsure business to Accelerant affiliates. We have structured our internal reinsurance in a manner intended to ensure that Accelerant Re Cayman (our non-U.S. reinsurer) reinsures business only from other non-U.S. ceding companies for U.S. federal income tax purposes. There can be no assurances our structuring efforts will be successful. If we are not able to structure our internal reinsurance in this manner, or the IRS were to successfully assert that Accelerant Re Cayman reinsures our U.S. ceding companies for U.S. federal income tax purposes, we could be required to pay additional tax.

**Recharacterization of Tax Items** 

Under Section 845 of the Code, the IRS may allocate income, deductions, assets, reserves, credits and any other items related to a reinsurance agreement among certain related parties, recharacterize such items, or make any other adjustment, in order to reflect the proper source, character or amount of the items for each party. In addition, if a reinsurance contract has a significant tax avoidance effect on any party to the contract, the IRS may make adjustments with respect to such party to eliminate the tax avoidance effect. No regulations have been issued under Section 845 of the Code. Accordingly, the application of such provisions to our operations is uncertain, and we cannot predict what effect, if any, such provisions may have on our subsidiaries.

***Taxation of U.S. Holders***

For purposes of this discussion, you are a "U.S. Holder" if, for U.S. federal income tax purposes, you are treated as a beneficial owner of our Class A common shares and you are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a citizen or individual resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or
organized in or under the laws of the United States, any state therein or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust if either (1) a court within the United States is able to exercise primary jurisdiction over the
administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (2) the trust has a valid election in effect under applicable Treasury regulations to be treated as a "United
States person" (as defined in Section 7701(a)(30) of the Code).

**Taxation of Distributions** 

As discussed above under "Dividend Policy", we do not expect to make distributions on our Class A common shares in the near future. In the event that we do make distributions of cash or other property, subject to the discussions below relating to the potential application of the PFIC, CFC and RPII provisions, distributions on our Class A common shares will constitute "dividends" for U.S. federal income tax purposes to the extent paid out of Accelerant's current or accumulated earnings and profits (each as determined under U.S. federal income tax principles). To the extent that distributions on our Class A common shares exceed Accelerant's earnings and profits, the distributions will be treated as a tax-free return of capital that will reduce (but not below zero) your tax basis in the Class A common shares and thereafter as capital gain from the sale or exchange of our Class A common shares. Accelerant's earnings and profits generally will not include the earnings and profits of its subsidiaries until such amounts are distributed to Accelerant.

Dividends paid with respect to our Class A common shares to a U.S. Holder that is treated for U.S. federal income tax purposes as an individual, a trust or an estate (a "non-corporate U.S. Holder") will be treated as "qualified dividend income" taxed at the preferential rates applicable to long-term capital gain if (i) our Class A

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common shares are readily tradable on an established securities market in the United States (such as the NYSE, on which we expect our Class A common shares to be traded) or we qualify for benefits under the U.S.-UK Tax Treaty, (ii) Accelerant is not a PFIC for the taxable year during which the dividend is paid and was not a PFIC for the immediately preceding taxable year, (iii) the U.S. Holder owns the Class A common shares for more than 60 days in the 121-day period beginning 60 days before the date on which the Class A common shares become ex-dividend (and does not enter into certain risk-limiting transactions with respect to the Class A common shares), (iv) the U.S. Holder is not under an obligation to make related payments with respect to positions in substantially similar or related property, and (v) the U.S. Holder does not take the dividends into account as investment income for purposes of deducting investment interest. Dividends you receive from Accelerant that are not treated as "qualified dividend income" will be taxed at ordinary income rates.

Special rules may apply to any "extraordinary dividend." Generally, a dividend with respect to a Class A common share will be an extraordinary dividend if the amount of such dividend equals or exceeds 10% of your adjusted tax basis (or fair market value in certain circumstances) in such common share (subject to certain aggregation rules). In addition, extraordinary dividends include dividends received within a one-year period that, in the aggregate, equal or exceed 20% of your adjusted tax basis (or fair market value). If you receive an extraordinary dividend on a Class A common share that is treated as qualified dividend income and you are a non-corporate U.S. Holder, then any loss recognized by you from a subsequent sale or exchange of such Class A common share will be treated as a long-term capital loss to the extent of such dividend.

Dividends paid with respect to our Class A common shares to a non-corporate U.S. Holder may also be subject to an additional 3.8% tax on net investment income, described below.

**Passive Foreign Investment Company Rules** 

In general, a non-U.S. corporation will be a PFIC during a taxable year if (i) 75% or more of its gross income constitutes passive income or (ii) 50% or more of its assets produce, or are held for the production of, passive income. For these purposes, passive income generally includes interest, dividends and other investment income. However, under the Insurance Exception, income derived in the active conduct of an insurance business by a "qualifying insurance corporation" is not treated as passive income. In addition, passive income does not include income of a QDIC. The PFIC provisions also contain a look-through rule under which a non-U.S. corporation will be treated as if it received directly its proportionate share of the income, and held its proportionate share of the assets, of another corporation if it owns at least 25% of the value of the stock of such other corporation. Accelerant does not expect to be considered a PFIC for the current taxable year or any subsequent taxable year. However, because this determination is made annually at the end of each taxable year and is dependent on a number of factors, there can be no assurance that Accelerant will not be a PFIC in any taxable year. Moreover, our Non-U.S. Carriers will need to be considered engaged in the active conduct of an insurance business and have applicable insurance liabilities that exceed a certain percentage of their total assets to qualify for the Insurance Exception, among other requirements. It is possible that a Non-U.S. Carrier does not satisfy such requirements in a given taxable year, in which case such Non-U.S. Carrier may be treated as a PFIC and the PFIC status of Accelerant could be adversely affected as a result.

If Accelerant is characterized as a PFIC for a taxable year, a U.S. Holder that receives an "excess distribution" on our Class A common shares or recognizes a gain on the disposition of our Class A common shares generally will determine its U.S. federal income tax on such amounts by (1) allocating the excess distribution or gain ratably to each day in the U.S. Holder's holding period for the Class A common shares, (2) including in gross income as ordinary income for the current year the amounts allocated to the current year or to years before Accelerant became a PFIC, and (3) increasing the current year's tax by the "deferred tax amount," which is determined by multiplying the amounts allocated to each of the other taxable years by the highest rate of tax in effect for such taxable year (for the applicable class of taxpayers) to calculate the increases in taxes for each prior year, calculating an interest charge (at the rate applicable to underpayments of U.S. federal income tax for the relevant period) for the deemed deferral of such taxes from each prior year to the current year, and

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combining such increases in taxes and interest charges. In general, a U.S. person that owns shares in a PFIC is treated as receiving an "excess distribution" from the PFIC if the distributions received by the U.S. person with respect to such shares in a taxable year exceed 125% of the average annual distributions received by the U.S. person in the three preceding taxable years (or, if shorter, the U.S. person's holding period for the shares). Accordingly, if Accelerant were a PFIC or, with respect to a particular U.S. Holder, were treated as a PFIC for the taxable year in which we paid a dividend or for the prior taxable year, the preferential dividend rates discussed above applicable to "qualified dividend income" paid to certain non-corporate U.S. Holders would not apply. In addition, a U.S. Holder would be treated as owning a proportionate amount of any shares Accelerant owns, directly or indirectly by application of certain attribution rules, in other PFICs (including the Non-U.S. Carriers if they do not qualify for the Insurance Exception and are treated as PFICs) and would be subject to the PFIC rules on a separate basis with respect to its indirect interests in any such PFICs.

In the event that Accelerant is characterized as a PFIC, a U.S. Holder may be able to mitigate certain of the negative tax consequences described above if the U.S. Holder makes a "qualified electing fund" election or "mark-to-market" election with respect to the Class A common shares. A "qualified electing fund" election would generally be expected to subject an electing U.S. Holder to tax on a current basis with respect such U.S. Holder's pro rata share of Accelerant's ordinary earnings and net capital gain regardless of whether Accelerant makes any distributions. In addition, an electing U.S. Holder's basis in its Class A common shares generally would increase to reflect the tax on undistributed income, and subsequent distributions of previously taxed income would first reduce such U.S. Holder's basis in its Class A common shares and would not be subject to tax to the extent of such basis. However, such election may itself have negative tax consequences to a U.S. Holder. If a PFIC realizes a net loss in a particular year, under the "qualified electing fund" rules, that loss will not pass through to the U.S. Holder nor will it be netted against the income of any other PFIC with respect to which a "qualified electing fund" election has been made. Moreover, the loss also cannot be carried forward to offset income of the PFIC in subsequent years. In addition, if a U.S. Holder makes a "qualified electing fund" election with respect to Accelerant and some or all of its lower-tier PFICs, a U.S. Holder will not be entitled to offset losses of Accelerant against income or gain of any lower-tier PFIC or losses of a lower-tier PFIC against income or gain of Accelerant or other lower-tier PFICs. U.S. Holders should consult with their tax advisors regarding the availability and advisability of such elections (including a retroactive "qualified electing fund" election). Further, there is no assurance that we will provide information necessary for U.S. Holders to make "qualified electing fund" elections.

In lieu of making a "qualified electing fund" election, a U.S. Holder may be able to mitigate certain of the negative tax consequences described above if the U.S. Holder makes a "mark-to-market" election with respect to the Class A common shares, provided that the Class A common shares are "regularly traded" on a "qualified exchange." In general, the Class A common shares would be treated as "regularly traded" for the year of this offering if more than a de minimis quantity of our Class A common shares were traded on a qualified exchange on one-sixth of the days remaining in the calendar quarter in which this offering occurs and on at least 15 days during each remaining calendar quarter. The NYSE, on which our Class A common shares are expected to be listed, is a qualified exchange for this purpose. Once made, the election cannot be revoked without the consent of the IRS unless the shares cease to be regularly traded on a qualified exchange. If a U.S. Holder makes the mark-to-market election, such U.S. Holder will generally recognize as ordinary income any excess of the fair market value of such U.S. Holder's Class A common shares at the end of each taxable year over their adjusted tax basis, and will recognize an ordinary loss in respect of any excess of the adjusted tax basis of the Class A common shares over their fair market value at the end of the taxable year (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). If a U.S. Holder makes the election, such U.S. Holder's tax basis in its Class A common shares will be adjusted to reflect these income or loss amounts. Any gain recognized on the sale or other disposition of our Class A common shares in a year when Accelerant is a PFIC will be treated as ordinary income and any loss will be treated as an ordinary loss (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). This election cannot be made with respect to any of our non-U.S. subsidiaries that are PFICs, if any. Accordingly, a U.S. Holder may continue to be subject to tax under the PFIC excess distribution rules with respect to any lower-tier PFICs notwithstanding a mark-to-market election for our Class A common shares.

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In addition, a U.S. Holder may be required to comply with other reporting requirements, regardless of the number of shares held, and whether or not a "qualified electing fund" or "mark-to-market" election is made.

The PFIC rules could have a material adverse effect on the taxation of U.S. Holders, and U.S. Holders are therefore urged to consult their own tax advisors about the application of the PFIC rules, the advisability and availability of any elections (including a retroactive qualified electing fund election), and the additional reporting requirements described below.

**Controlled Foreign Corporation Considerations** 

For taxable years beginning before January 1, 2026, each 10% U.S. Shareholder of a non-U.S. corporation that is a CFC at any time during a taxable year must include in its gross income for U.S. federal income tax purposes its pro rata share of the CFC's subpart F income and tested income (with various adjustments) with respect to any shares that such 10% U.S. Shareholder owns in such non-U.S. corporation (directly or indirectly through certain entities) on the last day in the non-U.S. corporation's taxable year on which it is a CFC, even if the subpart F income or tested income is not distributed. For taxable years beginning after December 31, 2025, a 10% U.S. Shareholder of a non-U.S. corporation that is a CFC at any time during a taxable year must include in its gross income for U.S. federal income tax purposes its pro rata share of the CFC's "subpart F income" and "tested income" (with various adjustments) with respect to any shares that such 10% U.S. Shareholder owns in such non-U.S. corporation (directly or indirectly through certain entities) during that taxable year, even if the subpart F income or tested income is not distributed. A "10% U.S. Shareholder" generally is a U.S. person that owns (directly, indirectly through non-U.S. entities or by attribution by application of the constructive ownership rules of section 958(b) of Code (i.e., "constructively")) at least 10% of the total combined voting power or value of all classes of stock of a non-U.S. corporation. Subpart F income of a CFC generally includes "foreign personal holding company income" (such as interest, dividends and other types of passive income), as well as insurance and reinsurance income (including underwriting and investment income), and tested income is generally any income of the CFC other than subpart F income and certain other categories of income. An entity treated as a foreign corporation for U.S. federal income tax purposes is generally considered a CFC if 10% U.S. Shareholders own (directly, indirectly through non-U.S. entities or constructively), in the aggregate, more than 50% of the total combined voting power of all classes of stock of that non-U.S. corporation or more than 50% of the total value of all stock of that non-U.S. corporation. However, for purposes of taking into account insurance income, these 50% thresholds are generally reduced to 25%. Further, special rules apply for purposes of taking into account any RPII of a non-U.S. corporation, as described below.

Whether Accelerant is a CFC for a taxable year will depend upon facts regarding our direct and indirect shareholders, about which we have limited information. Accordingly, no assurance can be provided that Accelerant will not be a CFC. Further, for taxable years beginning before January 1, 2026 regardless of whether Accelerant is a CFC, most or all of our non-U.S. subsidiaries (to the extent treated as corporations for U.S. federal income tax purposes) are generally treated as CFCs because our U.S. subsidiaries generally are treated as constructively owning the stock of our non-U.S. subsidiaries. For taxable years beginning after December 31, 2025, the relevant "downward attribution" rule will no longer apply, and therefore our non-U.S. subsidiaries will generally be treated as CFCs only if Accelerant is treated as a CFC. Accordingly, any 10% U.S. Shareholders of Accelerant may be required to include in gross income for U.S. federal income tax purposes for each taxable year their pro rata shares of all or a portion of the subpart F income and tested income generated by our non-U.S. subsidiaries (with various adjustments), regardless of whether any distributions are made to them.

Also for taxable years of non-U.S. corporations beginning after December 31, 2025, a non-U.S. corporation will be treated as an FCFC if it is not a CFC and "Foreign Controlled United States Shareholders" (as defined below) collectively own, directly, indirectly through certain entities or constructively (by application of the rules set forth in Section 958(b) of the Code, generally applying to options, family members, partnerships, estates, trusts or corporations, other than Section 958(b)(4), generally prohibiting the attribution to U.S. partnerships, estates, trusts and corporations stock owned by non-U.S. partners, beneficiaries or shareholders), more than 50% of the

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total combined voting power or total value of the corporation's stock. Under Section 951B(b) of the Code, any United States person (as defined in Section 957(c) of the Code) who owns directly, indirectly through certain entities or constructively (by application of the rules described in the preceding sentence) 50% or more of the total combined voting power or value of all classes of stock of the non-U.S. corporation will be considered to be a "Foreign Controlled United States Shareholder". In general, the rules described above with respect to United States Shareholders of CFCs also apply to Foreign Controlled United States Shareholders of FCFCs.

If Accelerant or a non-U.S. subsidiary is a CFC, the rules relating to PFICs discussed above generally would not apply to a 10% U.S. Shareholder of Accelerant or such subsidiary, respectively.

Each prospective U.S. Holder should consult its own tax advisor to determine whether its ownership of Class A common shares will cause it to become a 10% U.S. Shareholder with respect to Accelerant or its non-U.S. subsidiaries, and the effect of such a classification.

**Related Person Insurance Income Considerations** 

Special rules apply with respect to a CFC that earns RPII. For purposes of taking into account RPII, an entity treated as a foreign corporation for U.S. federal income tax purposes will be considered a CFC (a "RPII CFC") if, on any day of its taxable year, U.S. persons who own any of its stock (directly or indirectly through certain entities, each such person, a "RPII Shareholder") in the aggregate own (directly, indirectly through certain entities or constructively) 25% or more of the total combined voting power of all classes of its voting stock, or 25% or more of the total value of all of its stock.

The RPII of a RPII CFC is certain insurance and reinsurance income (including underwriting and investment income) attributable to a policy of insurance or reinsurance with respect to which the person (directly or indirectly) insured is a "RPII Shareholder" or a "related person" to a RPII Shareholder. Generally, a person is a related person to a RPII Shareholder if the person controls or is controlled by the RPII Shareholder, or if the person is controlled by the same person or persons who control the RPII Shareholder. Control is defined for these purposes as direct or indirect ownership of more than 50% of the value or voting power of the stock of a person treated as a corporation for U.S. federal income tax purposes or more than 50% of the value of the beneficial interests in a person treated as a partnership, trust, or estate for U.S. federal income tax purposes. Certain attribution rules apply for purposes of determining control.

The RPII rules will not apply with respect to a Non-U.S. Carrier for a taxable year if (1) at all times during its taxable year less than 20% of the total combined voting power of all classes of such Non-U.S. Carrier's voting stock and less than 20% of the total value of all of its stock is owned (directly or indirectly) by persons who are (directly or indirectly) insured under any policy of insurance or reinsurance issued by such Non-U.S. Carrier or who are related persons to any such person or (2) its RPII (determined on a gross basis) is less than 20% of its insurance income (as so determined) for the taxable year, determined with certain adjustments.

Our Non-U.S. Carriers generally provide reinsurance to our other subsidiaries and affiliates. If such other subsidiaries or affiliates were treated as related (as defined above) to a RPII Shareholder, or our Non-U.S. Carriers reinsured risks of our RPII Shareholders, earnings from such reinsurance would constitute RPII. However, we do not believe any of our subsidiaries or affiliates will be treated as "related" to a RPII Shareholder based on the expected ownership of our shares, nor do we anticipate that our Non-U.S. Carriers will reinsure the risks of our RPII Shareholders in any material amount. Based on the foregoing, we do not expect U.S. Holders to have RPII inclusions. Nonetheless, we cannot provide assurances that our Non-U.S. Carriers will not recognize RPII due to uncertainty about the future ownership of our shares and the complexity of certain attribution rules that apply for purposes of determining whether a RPII Shareholder would be considered to have control of and, therefore, be related to our subsidiaries or affiliates for purposes of the RPII rules, or that we will qualify for either of the RPII exceptions above in the event that our Non-U.S. Carriers recognize RPII.

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If a Non-U.S. Carrier does not qualify for either of the exceptions described above, then for taxable years beginning before January 1, 2026 a RPII Shareholder that owns, directly or indirectly through certain entities, any of the Class A common shares on the last day of such Non-U.S. Carrier's taxable year will be required to include in gross income the RPII Shareholder's pro rata share of such Non-U.S. Carrier's RPII for the entire taxable year, whether or not distributed, even if that RPII Shareholder did not own Class A common shares throughout the taxable year. If a Non-U.S. Carrier does not qualify for either of the exceptions described above, for taxable years beginning after January 1, 2026, then a RPII Shareholder that owns, directly or indirectly through certain entities, any of the Class A common shares at any time during such Non-U.S. Carrier's taxable year will be required to include in gross income the RPII Shareholder's pro rata share of such Non-U.S. Carrier's RPII for the entire taxable year, whether or not distributed, even if that RPII Shareholder did not own Class A common shares throughout the taxable year. The RPII Shareholder's share of the RPII for the taxable year will be determined as if all RPII were distributed proportionately only to RPII Shareholders on such last day of the taxable year, but limited by each such RPII Shareholder's share of such Non-U.S. Carrier's current year earnings and profits as reduced by the RPII Shareholder's share, if any, of certain prior-year deficits in earnings and profits. The RPII Shareholder may exclude from income the amount of any distributions by Accelerant of earnings and profits attributable to amounts which are, or have been, included in the gross income of the RPII Shareholder. A RPII Shareholder will not be able to exclude from income the amount of any distributions by Accelerant of earnings and profits attributable to RPII amounts which have been included in the gross income of any previous RPII Shareholders of the Class A common shares owned, directly or indirectly through certain entities, by such RPII Shareholder if the RPII Shareholder is unable to identify the previous RPII Shareholders and demonstrate the amount of RPII that had previously been included in the gross income of the previous RPII Shareholders.

The meaning of various RPII provisions and their application is uncertain. Certain Treasury regulations interpreting the RPII provisions exist only in proposed form, and it is unclear whether the IRS will adopt the proposed Treasury regulations or what changes or clarifications might ultimately be made to the proposed Treasury regulations. Any changes to the proposed Treasury regulations governing RPII, or any interpretation or application of the RPII rules by the IRS, the courts or otherwise, might have retroactive effect. Finally, there can be no assurance that the amount of RPII inclusions, if any, reported by us to a U.S. Holder will not be subject to adjustment based upon subsequent IRS examination.

Each U.S. Holder should consult its own tax advisor regarding the effects of these uncertainties and regarding the effects that the RPII provisions may have on it and on its investment in the Class A common shares.

**Basis Adjustments Under the PFIC, CFC, and RPII Provisions** 

A U.S. Holder's tax basis in its Class A common shares will be increased by the amount of income that such U.S. Holder is required to include under the PFIC rules (assuming a "qualified electing fund" or "mark-to-market" election is made), CFC rules and RPII rules. A U.S. Holder's tax basis in its Class A common shares will be reduced by the amount of any distributions on the Class A common shares of previously taxed income that is excluded from the U.S. Holder's gross income. If such distributions exceed the U.S. Holder's tax basis in its Class A common shares, the excess will be treated as gain from the sale or exchange of its Class A common shares (see discussion below).

**Disposition of Class A Common Shares** 

Subject to the above discussion of the PFIC rules and the below discussion relating to the potential application of Section 1248 of the Code, U.S. Holders will recognize capital gain or loss on the sale or other taxable disposition of the Class A common shares. If the holding period for the Class A common shares sold or otherwise disposed of exceeds one year, any gain recognized by a non-corporate U.S. Holder will be subject to tax at a maximum U.S. federal income tax rate of 20% and may also be subject to an additional 3.8% tax imposed on certain net investment income, as discussed below. With certain exceptions, any gain will be U.S. source gain and generally will be passive category income for foreign tax credit limitation purposes. The deductibility of capital losses is subject to limitations.

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Under Section 1248 of the Code, if a U.S. Holder sells or exchanges Class A common shares and the U.S. Holder owned (directly, indirectly through certain entities or constructively) 10% or more of the total combined voting power of the voting stock of Accelerant when Accelerant was a CFC at any time during the 5-year period ending on the date of the sale or exchange, then any gain recognized on the sale or exchange of the stock will be treated as a dividend to the extent of Accelerant's earnings and profits (determined under U.S. federal income tax principles) attributable to the stock accumulated during the period that the U.S. Holder held stock of Accelerant while Accelerant was a CFC (with certain adjustments). Whether Accelerant will be treated as a CFC will depend on its ownership following this offering. In addition, whether a U.S. Holder is treated as owning 10% or more of the total combined voting power of the voting stock of Accelerant is uncertain due to the complexity of the attribution rules contained in the Code. Accordingly, there can be no assurance that Section 1248 of the Code will not apply to a sale or exchange of our Class A common shares by a U.S. Holder.

Section 953(c)(7) of the Code provides that the rules of Section 1248 of the Code will also apply to the sale or exchange of shares in a non-U.S. corporation by a U.S. person (regardless of whether the person is a 10% U.S. Shareholder) if the non-U.S. corporation would be taxed under the provisions of the Code applicable to U.S. insurance companies if it were a U.S. corporation and the non-U.S. corporation is (or would be but for certain exceptions) treated as a RPII CFC. If Section 1248 of the Code applies under such circumstances, gain on the disposition of shares in the non-U.S. corporation may be recharacterized as a dividend to the extent of the U.S. person's share of the corporation's undistributed earnings and profits that were accumulated during the period that the U.S. person owned the shares (possibly whether or not those earnings and profits are attributable to RPII).

Accelerant does not directly engage in an insurance or reinsurance business, but the Non-U.S. Carriers do. The current Treasury regulations do not address whether the provisions of Section 953(c)(7) of the Code may apply with respect to the sale of stock in a non-U.S. corporation that is not a RPII CFC but has a non-U.S. subsidiary that is a RPII CFC and that would be taxed under the provisions of the Code applicable to U.S. insurance companies if it were a U.S. corporation. Accordingly, there can be no assurance that the IRS will not interpret these rules, or that the Treasury regulations will not be amended, to apply ordinary income treatment to a sale, exchange or other disposition of the Class A common shares on account of Accelerant's ownership of the Non-U.S. Carriers.

Each U.S. Holder should consult its own tax advisor regarding the tax consequences of these rules on a sale, exchange or other disposition of the Class A common shares.

**Tax-Exempt U.S. Holders** 

A tax-exempt U.S. Holder that owns (directly, indirectly through certain entities or constructively) any shares of stock in a CFC is generally required to treat as UBTI the portion of any amount of subpart F insurance income (including RPII) that such tax-exempt U.S. Holder is required to include in its gross income if such insurance income would be treated as UBTI if derived directly by such tax-exempt U.S. Holder. In addition, a tax-exempt U.S. Holder is expected to recognize UBTI if the Class A common shares owned by such U.S. Holder are considered debt-financed property. Each U.S. Holder that is a tax-exempt entity should consult its own tax advisor regarding the effects that the UBTI provisions may have on it and on its investment in the Class A common shares.

**Foreign Tax Credit** 

Distributions on our Class A common shares that are treated as a dividends and current income inclusions under the PFIC, CFC and RPII rules generally will constitute income from sources outside the United States and generally will be categorized for U.S. foreign tax credit purposes as "passive category income" or, in the case of some U.S. Holders, as "general category income." If, however, 50% or more (by vote or value) of Accelerant's shares are treated as being owned by U.S. persons, the amount of any current income inclusions under the PFIC, CFC and RPII rules and dividends (including any gain from the sale, exchange or other disposition of Class A

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common shares that is treated as a dividend under Section 1248 of the Code) constituting income from sources outside the United States may be limited to the amount attributable to Accelerant's income from sources outside the United States. Thus, it may not be possible for U.S. Holders to utilize excess foreign tax credits to reduce U.S. federal income tax on such income. The rules relating to U.S. foreign tax credits are very complex, and each U.S. Holder should consult its own tax advisor regarding the application of such rules.

**Net Investment Income Tax** 

A 3.8% tax is imposed on all or a portion of the net investment income of certain individuals with modified adjusted gross income of over $200,000 ($250,000 in the case of joint filers) and the undistributed net investment income of certain estates and trusts. For these purposes, "net investment income" will include a U.S. Holder's share of dividends and gain on the sale or other taxable disposition of our Class A common shares. Unless a U.S. Holder elects otherwise or holds its Class A common shares in connection with certain trades or businesses, the CFC and PFIC provisions generally will not apply for purposes of determining a U.S. Holder's net investment income.

**Reporting Requirements for U.S. Holders** 

Form 926 – A U.S. Holder who transfers cash to Accelerant in exchange for Class A common shares may be required to file Form 926 (Return by a U.S. Transferor of Property to a Foreign Corporation) with the IRS if (1) immediately after the transfer, such U.S. Holder holds, directly or indirectly, at least 10% of the total voting power or the total value of Accelerant, or (2) the amount of cash transferred by such U.S. Holder (or certain related persons) during the 12-month period ending on the date of the transfer exceeds $100,000.

Form 5471 – A U.S. Holder who is a 10% U.S. Shareholder or RPII Shareholder of Accelerant or certain of our non-U.S. corporate subsidiaries will be required to file Form 5471 (Information Return of U.S. Persons with Respect to Certain Foreign Corporations) with the IRS for one or more taxable years with respect to Accelerant or such subsidiary, as applicable. This information return requires certain disclosures concerning the filing shareholder, other 10% U.S. Shareholders and Accelerant or such subsidiary, as applicable.

Form 8621 – A U.S. person that is a shareholder of a PFIC is required to file Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund) with the IRS. If Accelerant is a PFIC in any year, U.S. Holders may be required to file Forms 8621 with the IRS with respect to Accelerant and any PFICs owned by Accelerant, directly or indirectly by application of certain attribution rules.

Form 8992 – A 10% U.S. Shareholder of a CFC generally is required to file Form 8992 (U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI)) with the IRS.

Potential investors are urged to consult their tax advisors for advice regarding reporting on Forms 926, 5471, 8621 and 8992 and any other reporting requirements that may apply to their acquisition, ownership or disposition of our Class A common shares. Accelerant is not obligated to provide U.S. Holders with the information necessary to satisfy such reporting requirements. Failure to properly file such forms, if required, may result in the imposition of substantial penalties and an extension of the statute of limitations for the assessment of any U.S. federal income tax with respect to any tax return, event or period to which the information required to be reported on such forms relates.

***Taxation of Non-U.S. Holders***

For purposes of this discussion, you are a "Non-U.S. Holder" if you are a beneficial owner of our Class A common shares, you are not a U.S. Holder and you are not treated as a partnership for U.S. federal income tax purposes.

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**Distributions on Our Class A Common Shares** 

If Accelerant makes distributions on its Class A common shares, the distributions will be dividends for U.S. federal income tax purposes to the extent paid out of Accelerant's current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. Dividends on Class A common shares will not be subject to U.S. federal income tax unless the dividends are effectively connected with the Non-U.S. Holder's conduct of a U.S. trade or business (and, if an income tax treaty applies, the dividends are attributable to a U.S. permanent establishment or fixed base maintained by such Non-U.S. Holder in the United States).

To the extent distributions exceed Accelerant's current and accumulated earnings and profits, they will generally constitute a return of capital that will first reduce a Non-U.S. Holder's basis in the Class A common shares, but not below zero, and then will be treated as gain from the sale or exchange of the Class A common shares (discussed below).

**Dispositions of Our Class A Common Shares** 

A Non-U.S. Holder will generally not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our Class A common shares unless (1) such gain is effectively connected with the Non-U.S. Holder's conduct of a U.S. trade or business (and, if an income tax treaty applies, the gain is attributable to a U.S. permanent establishment or fixed base maintained by such Non-U.S. Holder in the United States) or (2) the Non-U.S. Holder is an individual who is present in the United States for a period or periods aggregating 183 days or more during the calendar year in which such sale or other taxable disposition occurs and certain other conditions are met.

Gain described in clause (1) immediately above will be subject to U.S. federal income tax in the manner described below under "Effectively Connected Income." During each taxable year, a Non-U.S. Holder described in clause (2) immediately above will be subject to tax at a 30% rate (or such lower rate specified by an applicable income tax treaty) on the net gain derived from the sale or other taxable disposition, which may be offset by capital losses of the Non-U.S. Holder during the taxable year allocated to U.S. sources.

**Effectively Connected Income** 

Any dividend with respect to, or gain recognized upon the sale or other taxable disposition of, our Class A common shares that is effectively connected with a trade or business carried on by a Non-U.S. Holder within the United States (and, if an income tax treaty applies, is attributable to a permanent establishment or fixed base maintained by such Non-U.S. Holder in the United States) will be subject to U.S. federal income tax, based on the Non-U.S. Holder's net effectively connected income, generally in the same manner as if the Non-U.S. holder were a U.S. person for U.S. federal income tax purposes. If a dividend or gain is effectively connected with a U.S. trade or business of a Non-U.S. Holder that is a corporation for U.S. federal income tax purposes, such corporate Non-U.S. Holder may also be subject to a "branch profits tax" at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty), subject to certain adjustments. Non-U.S. Holders should consult their tax advisers regarding any applicable tax treaties that may provide for different rules.

**Information Reporting and Backup Withholding** 

Payments of dividends and sales proceeds that are made to a U.S. Holder within the United States or through certain U.S.-related financial intermediaries generally are subject to information reporting, and may be subject to backup withholding, unless (i) the U.S. Holder is a corporation or other exempt recipient or (ii) in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding. A Non-U.S. Holder may be required to provide a certification on an applicable IRS Form W-8 to establish an exemption from such information reporting and backup withholding.

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The amount of any backup withholding from a payment to a U.S. Holder or Non-U.S. Holder will be allowed as a credit against the U.S. Holder's or Non-U.S. Holder's U.S. federal income tax liability and may entitle it to a refund, provided that the required information is timely furnished to the IRS.

THIS SUMMARY IS FOR GENERAL INFORMATION PURPOSES ONLY, AND IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSTRUED TO BE, LEGAL OR TAX ADVICE TO ANY PARTICULAR HOLDER. PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR TAX ADVISORS WITH REGARD TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS, AS WELL AS THE APPLICATION OF U.S. NON-INCOME TAX LAWS AND THE LAWS OF ANY STATE, LOCAL OR NON-U.S. JURISDICTION, IN LIGHT OF THEIR PARTICULAR SITUATION.

**Cayman Islands Tax Considerations** 

The following summary contains a description of certain Cayman Islands tax consequences of the acquisition, ownership and disposition of our Class A common shares, but it does not purport to be a comprehensive description of all the tax considerations that may be relevant to a decision to purchase our Class A common shares. The summary is based upon the tax laws of Cayman Islands and regulations thereunder as of the date hereof, which are subject to change.

If you are considering the purchase of our Class A common shares, you should consult your own tax advisors concerning the particular tax consequences to you of the purchase, ownership and disposition of our Class A common shares, as well as the consequences to you arising under the laws of your country of citizenship, residence, or domicile.

The following is a discussion of certain Cayman Islands income tax consequences of an investment in our Class A common shares. The discussion is a general summary of present law, which is subject to prospective and retroactive change. It is not intended to be tax advice, does not consider any investor's particular circumstances, and does not consider tax consequences other than those arising under Cayman Islands law.

***Under Existing Cayman Islands Laws***

Payments of dividends and capital in respect of our Class A common shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of interest and principal or a dividend or capital to any holder of our Class A common shares, as the case may be, nor will gains derived from the disposal of our Class A common shares be subject to Cayman Islands income or corporation tax. The Cayman Islands currently have no income, corporation, or capital gains tax and no estate duty, inheritance tax, or gift tax.

No stamp duty is payable in respect of the issue of Class A common shares or on an instrument of transfer in respect of an common share.

The Company has been incorporated under the laws of the Cayman Islands as an exempted company with limited liability and, as such, has applied for and received an undertaking from the Financial Secretary of the Cayman Islands in the following form:

The Tax Concessions Act

(As Revised)

Undertaking as to Tax Concessions

In accordance with Section 6 of the Tax Concessions Act (As Revised) the Financial Secretary undertakes with Accelerant Holdings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that no Law which is hereafter enacted in the Islands imposing any tax to be levied on profits, income, gains, or appreciations shall apply to us the Company or our operations; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in addition, that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax shall be payable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on or in respect of the shares, debentures or other obligations of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by way of the withholding in whole or part, of any relevant payment as defined in Section 6(3) of the Tax Concessions Act (As Revised).

These concessions shall be for a period of twenty years from June 27, 2023.

**United Kingdom Tax Considerations** 

The following section is intended only as a general guide and does not purport to be a complete analysis of all potential UK tax consequences of acquiring, holding and disposing of Class A common shares. It is based on current UK tax law and on the current published practice of HMRC (which is not a statement of law and which may not be binding on HMRC), as of the date of this prospectus, both of which are subject to change at any time, possibly with retrospective effect. It is intended to address only certain UK tax consequences of the acquisition, holding and disposal of ordinary shares by persons who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) are not resident in the UK for UK tax purposes (and, in the case of individuals, are not temporarily non-resident) ("Non-UK Holders");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) are the absolute beneficial owners of their Class A common shares (and any dividends paid on them); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) hold their Class A common shares as investments and not in connection with a trade or business carried on to any extent in the UK

This section does not address the UK tax consequences which may be relevant to certain classes of holders of Class A common shares, such as: market makers, intermediaries, traders, brokers or dealers in securities; financial institutions; insurance companies; investment companies; collective investment schemes; charities or tax-exempt organizations; pension schemes; trustees; persons who are connected with the Company or any member of a group of which the Company forms part; persons holding their Class A common shares as part of hedging or conversion transactions; and persons who have (or are deemed to have) acquired their Class A common shares by virtue of an office or employment or who have been officers or employees of the Company or a company forming part of a group of which the Company forms part.

This section is written on the basis that the Company is not resident in any jurisdiction for tax purposes other than the UK and does not (and will not) directly or indirectly derive 75% or more of its value from UK real estate.

The following is intended as a general guide and is not intended to be, nor should it be considered to be, legal or tax advice to any particular prospective subscriber for, or purchaser of, Class A common shares. Accordingly, prospective subscribers for, or purchasers of, Class A common shares should consult their own tax advisors with respect to the UK tax consequences of the acquisition, ownership and disposal of Class A common shares in their specific circumstances.

***Taxation of Dividends Paid on Class A Common Shares***

<u>Withholding Tax</u> 

Dividends paid by the Company in respect of Class A common shares will not be subject to any withholding or deduction at source for or on account of UK tax.

<u>Income Tax</u>

An individual Non-UK Holder should not be chargeable to UK income tax on dividends received from the Company, unless he or she carries on (whether solely or in partnership) any trade, profession, or vocation in the UK through a branch or agency in the UK in connection with which his or her Class A common shares are held.

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<u>Corporation Tax</u> 

A corporate Non-UK Holder should not be subject to UK corporation tax on dividends received from the Company, unless it carries on a trade in the UK through a permanent establishment in the UK to which its Class A common shares are attributable. A corporate Non-UK Holder who is carrying on a trade in the UK through a permanent establishment in the UK to which its Class A common shares are attributable will be subject to UK corporation tax on any dividend received from the Company, unless the dividend qualifies for exemption and certain conditions are met (including anti-avoidance conditions). Whether the dividend qualifies for exemption will depend on the circumstances of the particular corporate Non-UK Holder, although it is generally expected that dividends paid by the Company would normally qualify.

***Taxation of Disposal of Class A Common Shares***

A Non-UK Holder who does not carry on a trade in the UK through a branch or agency in the UK (in the case of individual Non-UK Holders) or a permanent establishment in the UK (in the case of corporate Non-UK Holders) to which the Class A common shares are attributable should not be liable for UK tax on capital gains realized on a sale or other disposal of Class A common shares.

***UK Stamp Duty and Stamp Duty Reserve Tax ("SDRT")***

This section is intended as a general guide to the current position relating to UK stamp duty and SDRT and applies to any holders of Class A common shares irrespective of whether they are resident in the UK for UK tax purposes. It is written on the basis that HMRC regards the Depository Trust Company ("DTC") as a clearance service for the purposes of UK stamp duty and SDRT and that no applicable election under section 97A(1) Finance Act 1986 has been made.

<u>Issuance of Class A Common Shares</u> 

No stamp duty or SDRT should be payable on the issuance of Class A common shares by the Company.

<u>Transfer of Class A Common Shares within the facilities of DTC</u> 

A transfer of Class A common shares within the facilities of DTC should not attract a charge to UK stamp duty or SDRT provided there is no written instrument of transfer.

<u>Transfer of Class A Common Shares outside the facilities of DTC</u> 

If Class A common shares are withdrawn from the facilities of DTC, the UK stamp duty and SDRT treatment of a subsequent transfer of such Class A common shares outside the facilities of DTC is discussed below.

As the Company is not incorporated in the UK, no SDRT should be payable on the transfer of, or an agreement to transfer, Class A common shares provided that the Class A common shares are not registered in a register kept in the UK by or on behalf of the Company and are not paired with any shares issued by a UK incorporated company. It is not intended that such a register will be kept in the UK or that the Class A common shares will be so paired.

A transfer of Class A common shares should not attract a charge to UK stamp duty provided the relevant instrument of transfer is executed and retained outside the UK and does not relate to any property situated in the UK or to any matter or thing done or to be done in the UK. If the relevant instrument of transfer is executed in the UK or relates to any property situated, or to any matter or thing done or to be done, in the UK, then UK stamp duty will technically be payable at the rate of 0.5% of the consideration for the transfer (rounded up to the nearest

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£5). However, an exemption may be available if the amount or value of the consideration for such transfer is £1,000 or less. Further, even where an instrument of transfer is technically subject to UK stamp duty, such stamp duty may not need to be paid in practice unless it is necessary to rely on the instrument of transfer for legal purposes (for example, to register a change of ownership or in litigation in a UK court) and provided that the Class A common shares are not registered in a register kept in the UK. As a practical matter, therefore, a purchaser of Class A common shares may generally not have to pay UK stamp duty on a mandatory basis.

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**UNDERWRITERS** 

Under the terms and subject to the conditions in an underwriting agreement dated the date of this prospectus, the underwriters named below, for whom Morgan Stanley & Co. LLC is acting as representative, have severally agreed to purchase, and we and the selling shareholders have agreed to sell to them, severally, the number of Class A common shares indicated below:

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| | |
|:---|:---|
| **Name** | **Number of**<br> **Class A**<br> **Common<br>Shares** |
|  Morgan Stanley & Co. LLC |  |
|  Goldman Sachs & Co. LLC |  |
|  BMO Capital Markets Corp. |  |
|  RBC Capital Markets, LLC |  |
|  Wells Fargo Securities, LLC |  |
|  Piper Sandler & Co. |  |
|  William Blair & Company, L.L.C. |  |
|  Raymond James & Associates, Inc. |  |
|  TD Securities (USA) LLC |  |
|  Citizens JMP Securities, LLC |  |
|  FTP Securities LLC |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 28947368 |

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The underwriters and the representative are collectively referred to as the "underwriters" and the "representative," respectively. The underwriters are offering the Class A common shares subject to their acceptance of the shares from us and the selling shareholders subject to prior sale. The underwriting agreement provides that the obligations of the several underwriters to pay for and accept delivery of the Class A common shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the Class A common shares by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below.

The underwriters initially propose to offer part of the Class A common shares directly to the public at the offering price listed on the cover page of this prospectus and part to certain dealers at a price that represents a concession not in excess of $ per share under the public offering price. After the initial offering of the Class A common shares, the offering price and other selling terms may from time to time be varied by the representative.

Certain of the selling shareholders have granted to the underwriters an option, exercisable for 30 days from the date of this prospectus, to purchase up to a maximum of 4,342,105 additional Class A common shares at the public offering price listed on the cover page of this prospectus, less underwriting discounts and commissions. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, made in connection with the offering of the Class A common shares offered by this prospectus. To the extent the option is exercised, each underwriter will become obligated, subject to certain conditions, to purchase about the same percentage of the additional Class A common shares as the number listed next to the underwriter's name in the preceding table bears to the total number of Class A common shares listed next to the names of all underwriters in the preceding table.

The following table shows the per share and total public offering price, underwriting discounts and commissions, and proceeds before expenses to us and the selling shareholders. These amounts are shown

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assuming both no exercise and full exercise of the underwriters' option to purchase up to a maximum of 4,342,105 additional Class A common shares.

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| | | | |
|:---|:---|:---|:---|
|  | | **Total** | **Total** |
|  |<br>**Per**<br>**Share** | **No Exercise** | **Full<br>Exercise** |
|  Public offering price | $| $| $|
|  Underwriting discounts and commissions to be paid by: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Us | $| $| $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The selling shareholders | $| $| $|
|  Proceeds, before expenses, to us | $| $| $|
|  Proceeds, before expenses, to the selling shareholders | $| $| $|

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The estimated offering expenses payable by us, exclusive of the underwriting discounts and commissions, are approximately $9.0 million. We have agreed to reimburse the underwriters for expenses relating to clearance of this offering with the Financial Industry Regulatory Authority up to $40,000.

The underwriters have informed us that they do not intend sales to discretionary accounts to exceed 5% of the total number of Class A common shares offered by them.

Our Class A common shares have been approved for listing, subject to official notice of issuance, on the New York Stock Exchange under the trading symbol "ARX."

We, the selling shareholders, and all directors and officers and the holders of all of our outstanding Class A common shares have agreed that, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the underwriters, we and they will not, and will not publicly disclose an intention to, during the period ending 180 days after the date of this prospectus (the "restricted period"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any Class A common shares or any securities convertible into or exercisable or exchangeable for Class A common
shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• file any registration statement with the Securities and Exchange Commission relating to the offering of any
Class A common shares or any securities convertible into or exercisable or exchangeable for Class A common shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the Class A common shares,

whether any such transaction described above is to be settled by delivery of Class A common shares or such other securities, in cash or otherwise. In addition, we and each such person agree that, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the underwriters, we or such other person will not, during the restricted period, make any demand for, or exercise any right with respect to, the registration of any Class A common shares or any security convertible into or exercisable or exchangeable for Class A common shares.

The restrictions described in the immediately preceding paragraph do not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the sale of shares to the underwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers of shares as a bona fide gift or bona fide estate planning purposes, by will, testament or intestate
succession;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers of shares by operation of law, court order or regulatory agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers to any immediate family member or affiliate or the shareholder, director or officer, or any trust
for the benefit of the shareholder, director or officer or their affiliates;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a corporation, partnership, limited liability company, or other business entity, transfers (i)
to another corporation, partnership, limited liability, trust or other business entity controlling, controlled by, managed or managed by or under common control with an affiliate corporate or business entity or (ii) as part of a distribution or
other transfer to general or limited partners, members or shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance by the Company of Class A common shares upon the vesting, settlement or exercise of restricted
stock units, options, warrants or other rights to purchase Class A common shares outstanding on the date of this prospectus, including for the payment of exercise price and tax withholding and remittance payments due as a result of the vesting,
settlement or exercise of such restricted stock units, options, warrants or rights, of which the underwriters have been advised in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• distributions by the Company of Class A common shares or other securities to limited partners or stockholders
of a holder of lock-up securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers pursuant to a bona fide third-party tender offer, take-over bid, merger, amalgamation, consolidation
or other similar transaction made to all holders of the Company's securities and approved by the Board of Directors involving a change of control; provided that in the event that such transaction is not completed, such lock-up securities would
remain subject to the terms of the lock-up agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transactions by any person other than us relating to Class A common shares or other securities acquired in
open market transactions after the completion of the offering of the shares; provided that no filing under Section 16(a) of the Exchange Act, is required or voluntarily made in connection with subsequent sales of the Class A common shares or
other securities acquired in such open market transactions, unless such filing indicates that such transaction was made in connection with a bona fide gift;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• facilitating the establishment of a trading plan on behalf of a shareholder, officer or director of the
Company pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Class A common shares, provided that (i) such plan does not provide for the transfer of Class A common shares during the
restricted period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by the Company regarding the establishment of such plan, such announcement or filing shall include a
statement to the effect that no transfer of Class A common shares may be made under such plan during the restricted period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to the Company only, the issuance of Class A common shares in exchange for approximately $35
million of units issued under the limited liability company agreement of ARU, dated as of May 4, 2021; provided that in the case of any such issuance, the transferee agrees to be bound in writing by the terms of the lock-up agreement at the time of
such transfer (See "Certain Relationships and Related-Party Transactions–2WJ, LLC" for more information); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of certain lock-up parties, a pledge of a security interest in any lock-up securities to certain
lending institutions as collateral or security for any loan, advance or extension of credit existing on the date of this prospectus and the transfer of such lock-up securities to such lending institution upon foreclosure of such lock-up securities;
provided that in the case of any such transfer, the transferee agrees to be bound in writing by the terms of the lock-up agreement at the time of such transfer.

Morgan Stanley & Co. LLC, in its sole discretion, may release the Class A common shares and other securities subject to the lock-up agreements described above in whole or in part at any time.

In the event a release from a lock-up agreement is granted to any officer, director, or holder of greater than 1% of the Company's total outstanding Class A common shares, other holders of lock-up securities will have pro rata release rights on the same terms; provided, however that pro rata release rights will not be applied in connection with any such release (i) to the extent that all such releases granted constitute in the aggregate an amount less than 1% of the Company's total outstanding Class A common shares and no releases are granted to

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any officer, director, or shareholder subject to Section 16 reporting under the Exchange Act; (ii) granted in connection with an underwritten primary or secondary offering during the restricted period; or (iii) in the case of a release granted due to an emergency or hardship of a holder of lock-up securities in the judgment of Morgan Stanley & Co. LLC.

In order to facilitate the offering of the Class A common shares, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of the Class A common shares. Specifically, the underwriters may sell more shares than they are obligated to purchase under the underwriting agreement, creating a short position. A short sale is covered if the short position is no greater than the number of shares available for purchase by the underwriters under the underwriters' option to purchase additional Class A common shares. The underwriters can close out a covered short sale by exercising their option to purchase additional Class A common shares or purchasing shares in the open market. In determining the source of shares to close out a covered short sale, the underwriters will consider, among other things, the open market price of shares compared to the price available under their option to purchase additional Class A common shares. The underwriters may also sell shares in excess of the option to purchase additional Class A common shares, creating a naked short position. The underwriters must close out any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the Class A common shares in the open market after pricing that could adversely affect investors who purchase in this offering. As an additional means of facilitating this offering, the underwriters may bid for, and purchase, Class A common shares in the open market to stabilize the price of the Class A common shares. These activities may raise or maintain the market price of the Class A common shares above independent market levels or prevent or retard a decline in the market price of the Class A common shares. The underwriters are not required to engage in these activities and may end any of these activities at any time.

We, the selling shareholders, and the underwriters have agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act.

A prospectus in electronic format may be made available on websites maintained by one or more underwriters, or selling group members, if any, participating in this offering. The representative may agree to allocate a number of Class A common shares to underwriters for sale to their online brokerage account holders. Internet distributions will be allocated by the representative to underwriters that may make Internet distributions on the same basis as other allocations.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various financial advisory and investment banking services for us, for which they received or will receive customary fees and expenses. Goldman Sachs Bank Europe SE, an affiliate of Goldman Sachs & Co. LLC, one of the underwriters in this offering, has entered into lending facilities with Christopher Lee-Smith, our Co-Founder, Head of Distribution and a member of our Board of Directors and Frank O'Neill, our Co-Founder and Chief Underwriting Officer (together, the "Loans"). The loan to Mr. Lee-Smith is secured by a pledge of approximately 17,242,344 Class A common shares beneficially owned by Mr. Lee-Smith. The loan to Mr. O'Neill is secured by a pledge of approximately 7,069,020 Class A common shares beneficially owned by Mr. O'Neill. As a result of an amendment to each of the Loans that will be effective upon the effectiveness of the registration statement relating to this offering, the maturity date of each of the loans is March 31, 2026. In the case of nonpayment at maturity or another event of default (including but not limited to the borrower's inability to satisfy a margin call, which may be instituted by the lender following certain declines in our stock price, whether before or after the expiration of the lock-up period described above but subject to the limitations set forth below), Goldman Sachs Bank Europe SE may exercise its rights under the loan agreements to obtain shares pledged to cover the amount due under the Loans.

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Wells Fargo Bank N.A., an affiliate of Wells Fargo Securities, LLC, one of the underwriters in this offering, has entered into a lending facility with Jeff Radke, our Chief Executive Officer and a member of our Board of Directors which will be initially drawn on or about the consummation of this offering. The loan to Mr. Radke is secured by a pledge of his Class A common shares. In the case of nonpayment at maturity or another event of default (including but not limited to the borrower's inability to satisfy a margin call, which may be instituted by the lender following certain declines in our stock price, whether before or after the expiration of the lock-up period described above), Wells Fargo Bank N.A. may exercise its rights under the loan agreements to obtain shares pledged to cover the amount due under Mr. Radke's loan.

In addition, affiliates of certain of the other underwriters act as arrangers and lenders under the Credit Facilities. See "Description of Certain Indebtedness."

In addition, in the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve our securities and instruments. The underwriters and their respective affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such securities and instruments.

**Pricing of the Offering** 

Prior to this offering, there has been no public market for our Class A common shares. The initial public offering price was determined by negotiations between us, the selling shareholders, and the representative. Among the factors considered in determining the initial public offering price were our future prospects and those of our industry in general, our sales, earnings and certain other financial and operating information in recent periods, and the price-earnings ratios, price-sales ratios, market prices of securities, and certain financial and operating information of companies engaged in activities similar to ours.

**Directed Share Program** 

At our request, the underwriters have reserved up to 5% of the Class A common shares offered hereby, at the initial public offering price, to offer to our directors, officers, employees, business associates and related persons. Except for any shares acquired by our directors, officers and employees, shares purchased pursuant to the directed share program will not be subject to lock-up agreements with the underwriters. The underwriters will receive the same underwriting discount on any shares purchased pursuant to this program as they will on any other shares sold to the public in this offering. The number of Class A common shares available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus.

**Selling Restrictions** 

***European Economic Area***

In relation to each Member State of the European Economic Area (each, a "Relevant State"), no shares have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the shares which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation, except that offers of shares may be made to the public in that Relevant State at any time under the following exemptions under the Prospectus Regulation:

(a) to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation;

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(b) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2
of the Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

(c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of shares shall require us or any representative to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

***United Kingdom***

No shares have been offered or will be offered pursuant to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the shares that has either (i) been approved by the Financial Conduct Authority or (ii) is to be treated as if it had been approved by the Financial Conduct Authority in accordance with the transitional provisions in Article 74 (transitional provisions) of the Prospectus Amendment etc (EU Exit) Regulations 2019/1234, except that offers of shares may be made to the public in the United Kingdom at any time under the following exemptions under the UK Prospectus Regulation:

(a) to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus
Regulation;

(b) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2
of the UK Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

(c) in any other circumstances falling within Section 86 of the FSMA,

provided that no such offer of shares shall require us or any representative to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

***Canada***

The Class A common shares may be sold in Canada only to: (i) purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 *Prospectus Exemptions* or subsection 73.3(1) of the *Securities Act* (Ontario), and are permitted clients, as defined in National Instrument 31-103 *Registration Requirements, Exemptions and Ongoing Registrant Obligations* (which we refer to as the permitted client sales); and (ii) certain eligible accredited investors, pursuant to the directed share program described under "Underwriters—Directed Share Program", using a Canadian Offering Memorandum prepared for that purpose. Any resale of the Class A common shares must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

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Pursuant to section 3A.3 of National Instrument 33-105 *Underwriting Conflicts* (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with the permitted client sales made in this offering.

***Hong Kong***

The contents of this prospectus have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this prospectus, you should obtain independent professional advice. Please note that (i) the Class A common shares may not be offered or sold in Hong Kong, by means of this prospectus or any document other than to "professional investors" within the meaning of Part I of Schedule 1 of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) (the "SFO")) and any rules made thereunder, or in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong) (the "CO")) or which do not constitute an offer or invitation to the public for the purpose of the CO or the SFO, and (ii) no advertisement, invitation or document relating to the Class A common shares may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere) which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to the shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" within the meaning of the SFO and any rules made thereunder.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the securities may not be circulated or distributed, nor may the securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), (ii) to a relevant person, or any person pursuant to Section 275(1A), and in accordance with the conditions, specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

***Brazil***

The offer of securities described in this prospectus will not be carried out by means that would constitute a public offering in Brazil under Law No. 6,385, of December 7, 1976, as amended, under the CVM Rule (Instrução) No. 400, of December 29, 2003. The offer and sale of the securities have not been and will not be registered with the Comissão de Valores Móbilearios in Brazil. The securities have not been offered or sold, and will not be offered or sold in Brazil, except in circumstances that do not constitute a public offering or distribution under Brazilian laws and regulations.

***Australia***

This prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not constitute a disclosure document or a prospectus under Chapter 6D.2 of the Corporations Act 2001
(Cth) (the "Corporations Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has not been, and will not be, lodged with the Australian Securities and Investments Commission (the
"ASIC") as a disclosure document for the purposes of the Corporations Act and does not purport to include the information required of a disclosure document for the purposes of the Corporations Act; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may only be provided in Australia to select investors who are able to demonstrate that they fall within one or
more of the categories of investors, available under section 708 of the Corporations Act (Exempt Investors).

The Class A common shares may not be directly or indirectly offered for subscription or purchased or sold, and no invitations to subscribe for or buy the Class A common shares may be issued, and no draft or definitive offering memorandum, advertisement or other offering material relating to any Class A common shares may be distributed in Australia, except where disclosure to investors is not required under Chapter 6D of the Corporations Act or is otherwise in compliance with all applicable Australian laws and regulations. By submitting an application for the Class A common shares, you represent and warrant to us that you are an Exempt Investor.

As any offer of Class A common shares under this document will be made without disclosure in Australia under Chapter 6D.2 of the Corporations Act, the offer of those securities for resale in Australia within 12 months may, under section 707 of the Corporations Act, require disclosure to investors under Chapter 6D.2 if none of the exemptions in section 708 applies to that resale. By applying for the shares of Class A common shares you undertake to us that you will not, for a period of 12 months from the date of issue of the shares of Class A common shares, offer, transfer, assign or otherwise alienate those shares of Class A common shares to investors in Australia except in circumstances where disclosure to investors is not required under Chapter 6D.2 of the Corporations Act or where a compliant disclosure document is prepared and lodged with ASIC.

***China***

This prospectus will not be circulated or distributed in the People's Republic of China (the "PRC"), and the Class A common shares will not be offered or sold and will not be offered or sold to any person for re-offering or resale directly or indirectly to any residents of the PRC except pursuant to any applicable laws and regulations of the PRC. Neither this prospectus nor any advertisement or other offering material may be distributed or published in the PRC, except under circumstances that will result in compliance with applicable laws and regulations.

***France***

Neither this prospectus nor any other offering material relating to the Class A common shares offered by this prospectus has been or will be submitted to the clearance procedures of the Autorité des Marchés Financiers or of the competent authority of another member state of the European Economic Area and notified to the Autorité des Marchés Financiers. The Class A common shares has not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France. Neither this prospectus nor any other offering material relating to the Class A common shares has been or will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) released, issued, distributed, or caused to be released, issued, or distributed to the public in France; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) used in connection with any offer for subscription or sale of the notes to the public in France.

Such offers, sales and distributions will be made in France only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to qualified investors (investisseurs qualifiés) and/or to a restricted circle of investors (cercle
restreint d'investisseurs), in each case acting for their own account, or otherwise in circumstances in which no offer to the public occurs, all as defined in and in accordance with Articles L.411-2, D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and D.764-1 of the French Code monétaire et financier;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to investment services providers authorized to engage in portfolio management on behalf of third parties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in a transaction that, in accordance with Article L.411-2-I-1° -or-2° -or 3° of the
French Code monétaire et inancier and Article 211-2 of the General Regulations (Règlement Général) of the Autorité des Marchés Financiers, does not constitute a public
offer (offre au public).

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The Class A common shares may not be distributed directly or indirectly to the public except in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French Code monétaire et financier and applicable regulations thereunder.

***Kuwait***

The Class A common shares have not been authorized or licensed for offering, marketing or sale in the State of Kuwait. The distribution of this prospectus and the offering and sale of the Class A common shares in the State of Kuwait is restricted by law unless a license is obtained from the Kuwait Ministry of Commerce and Industry in accordance with Law 31 of 1990. Persons into whose possession this prospectus comes are required by us and the international underwriters to inform themselves about and to observe such restrictions. Investors in the State of Kuwait who approach us or any of the international underwriters to obtain copies of this prospectus are required by us and the international underwriters to keep such prospectus confidential and not to make copies thereof or distribute the same to any other person and are also required to observe the restrictions provided for in all jurisdictions with respect to offering, marketing and the sale of the Class A common shares.

***Qatar***

The Class A common shares described in this prospectus have not been, and will not be, offered, sold, or delivered, at any time, directly or indirectly in the State of Qatar in a manner that would constitute a public offering. This prospectus has not been, and will not be, registered with or approved by the Qatar Financial Markets Authority or Qatar Central Bank and may not be publicly distributed. This prospectus is intended for the original recipient only and must not be provided to any other person. It is not for general circulation in the State of Qatar and may not be reproduced or used for any other purpose.

***Saudi Arabia***

This document may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Offers of Securities Regulations as issued by the board of the Saudi Arabian Capital Market Authority (the "CMA"), pursuant to resolution number 2-11-2004 dated 4 October 2004 as amended by resolution number 1-28-2008, as amended. The CMA does not make any representation as to the accuracy or completeness of this document and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this document. Prospective purchasers of the Class A common shares offered hereby should conduct their own due diligence on the accuracy of the information relating to the Class A common shares. If you do not understand the contents of this document, you should consult an authorized financial adviser.

***Switzerland***

The Class A common shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (the "SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document does not constitute a prospectus within the meaning of, and has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the Class A common shares or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, us, or the Class A common shares have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of Class A common shares will not be supervised by, the Swiss Financial Market Supervisory Authority, and the offer of Class A common shares has not been and

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will not be authorized under the Swiss Federal Act on Collective Investment Schemes (the "CSA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of Class A common shares.

***United Arab Emirates***

The Class A common shares have not been and are not being publicly offered, sold, promoted, or advertised in the United Arab Emirates (including the Dubai International Financial Center (the "DIFC")) other than in compliance with the laws of the United Arab Emirates (and the DIFC) governing the issue, offering and sale of securities. Further, this prospectus does not constitute a public offer of securities in the United Arab Emirates (including the DIFC) and is not intended to be a public offer. This prospectus has not been approved by or filed with the Central Bank of the United Arab Emirates, the Securities and Commodities Authority or the Dubai Financial Services Authority.

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**LEGAL MATTERS** 

The validity of our Class A common shares and certain other matters of Cayman Islands law will be passed upon for us by Maples and Calder (Cayman) LLP. Certain other matters will be passed upon for us by Sidley Austin LLP. A partner of Sidley Austin LLP beneficially owns less than 1% of our outstanding Class A common shares. Certain legal matters in connection with this offering will be passed upon for the underwriters by Conyers Dill & Pearman LLP and Ropes & Gray LLP, New York, New York.

**EXPERTS** 

The consolidated financial statements of Accelerant Holdings and its subsidiaries as of December 31, 2024 and 2023 and for each of the three years in the period ended December 31, 2024 included in this prospectus have been so included in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in accounting and auditing.

The consolidated financial statements of Accelerant Holdings LP and its subsidiaries as of December 31, 2024 and 2023 and for each of the three years in the period ended December 31, 2024 included in this prospectus have been so included in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act with respect to the Class A common shares to be sold in this offering. As allowed by SEC rules, this prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules that are part of the registration statement. For further information with respect to us and our Class A common shares offered hereby, you should refer to the registration statement, including all amendments, supplements, schedules, and exhibits thereto.

Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement.

The SEC maintains a website that contains reports, proxy statements, and other information about companies like us, who file electronically with the SEC. The address of that website is http://www.sec.gov.

Upon the effectiveness of the registration statement, we will be subject to the reporting, proxy, and information requirements of the Exchange Act, and will be required to file periodic reports, proxy statements, and other information with the SEC. These periodic reports, proxy statements and other information will be available on the website of the SEC referred to above, as well as on our website, www.accelerant.ai. The contents of, or other information accessible through, our website are not part of this prospectus, and you should not consider the contents of our website in making an investment decision with respect to our Class A common shares. You may also request copies of those documents, at no cost to you, by contacting us at the following address:

Accelerant Holdings

c/o Accelerant Re (Cayman) Ltd.

Unit 106, Windward 3, Regatta Office Park,

West Bay Road, Grand Cayman

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**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS** 

---

| | |
|:---|:---|
| **Accelerant Holdings Consolidated Financial Statements:** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin543111_10011) | F-4 |
|  [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_10012) | F-5 |
|  [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_10013) | F-6 |
|  [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_10014) | F-7 |
|  [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_10015) | F-8 |
|  [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_10016) | F-9 |
|  [Notes to Consolidated Financial Statements](#fin543111_10017) | F-11 |
|  [Financial Statement Schedules](#fin543111_10018) | F-67 |
| **Accelerant Holdings Condensed Consolidated Interim Financial Statements:** |  |
|  [Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (unaudited)](#fin543111_201) | F-79 |
|  [Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_51) | F-80 |
|  [Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_52) | F-81 |
|  [Condensed Consolidated Statements of Equity for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_53) | F-82 |
|  [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_54) | F-83 |
|  [Notes to Condensed Consolidated Financial Statements](#fin543111_55)(unaudited) | F-85 |
| **Accelerant Holdings LP Consolidated Financial Statements:** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin543111_10091) | F-109 |
|  [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_10092) | F-110 |
| [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_10093) | F-111 |
|  [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_10094) | F-112 |
|  [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_10095) | F-113 |
|  [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_10096) | F-114 |
|  [Notes to Consolidated Financial Statements](#fin543111_10097) | F-116 |
| [Financial Statement Schedules](#fin543111_10098) | F-172 |
| **Accelerant Holdings LP Condensed Consolidated Interim Financial Statements:** |  |
|  [Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (unaudited)](#fin543111_801) | F-184 |
|  [Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_61) | F-185 |
|  [Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_62) | F-186 |
|  [Condensed Consolidated Statements of Equity ended March 31, 2025 and 2024 (unaudited)](#fin543111_63) | F-187 |
|  [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)](#fin543111_64) | F-188 |
|  [Notes to Condensed Consolidated Financial Statements (unaudited)](#fin543111_65) | F-190 |

---

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##### [**Table of Contents**](#toc)
![LOGO](g543111g67r24.jpg)

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
| **Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm](#fin543111_501) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_502) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_503) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_504) | F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_505) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_506) | F-9 |
|  **Notes to Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_507) | F-11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_508) | F-11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_509) | F-24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_510) | F-31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_511) | F-35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Variable interest entities](#fin543111_512) | F-36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Revenue from contracts with customers](#fin543111_513) | F-38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Reinsurance](#fin543111_514) | F-39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Deferred acquisition costs and deferred ceding commissions](#fin543111_515) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Income taxes](#fin543111_516) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Goodwill, other intangible assets and capitalized technology development costs](#fin543111_517) | F-45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Other assets](#fin543111_518) | F-47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Unpaid losses and loss adjustment expenses](#fin543111_519) | F-48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Debt](#fin543111_520) | F-53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Accounts payable and other liabilities](#fin543111_521) | F-54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Equity](#fin543111_522) | F-54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Business acquisitions](#fin543111_523) | F-56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 18. Related party transactions](#fin543111_524) | F-59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 19. Commitments and contingencies](#fin543111_525) | F-59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 20. Employee benefits and profit interests plans](#fin543111_526) | F-60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 21. Share-based compensation](#fin543111_527) | F-61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 22. Earnings per share](#fin543111_528) | F-62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 23. Dividend restrictions and statutory financial information](#fin543111_529) | F-63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 24. Subsequent events](#fin543111_530) | F-66 |
| **Financial Statement Schedules** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[I. Summary of investments other than investments in related parties as of December 31, 2024](#fin543111_531) | F-67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[II. Condensed financial information of parent only as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_532) | F-68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[III. Supplementary insurance information as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_533) | F-73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[IV. Reinsurance for the years ended December 31, 2024, 2023 and 2022](#fin543111_534) | F-74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[V. Valuation and qualifying accounts for the years ended December 31, 2024, 2023 and 2022](#fin543111_535) | F-75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[VI. Supplementary information concerning property/casualty insurance operations as of and for the years ended December 31, 2024, 2023 and 2022](#fin543111_536) | F-76 |

---

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##### [**Table of Contents**](#toc)
**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors and Shareholders of Accelerant Holdings

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Accelerant Holdings and its subsidiaries (the "Company") as of December 31, 2024 and 2023, and the related consolidated statements of operations, of comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

March 27, 2025, except for the effects of the common and preference share subdivision discussed in Note 1 to the financial statements, as to which the date is July 14, 2025.

We have served as the Company's auditor since 2021.

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Balance Sheets** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| ***(expressed in millions of US dollars, except share data)*** |  |  |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2024: $65.0 and 2023: $8.0) | $64.8 | $8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2024: $485.6 and 2023: $87.1) | 479.5 | 86.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value (cost 2023: $115.2) |  | 116.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 18.2 | 15.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 45.3 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **607.8** | **252.4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash <sup>(1)</sup> | 1273.0 | 775.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2024: $2.4 and 2023: $2.7) <sup>(1)</sup> | 791.9 | 479.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1558.4 | 920.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1069.5 | 605.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 364.3 | 374.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 60.7 | 53.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net <sup>(1)</sup> | 64.0 | 51.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs <sup>(1)</sup> | 83.6 | 69.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets <sup>(1)</sup> | 221.7 | 156.0 |
|  **Total assets** | $**6094.9** | $**3737.2** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1803.2 | 1152.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1109.0 | 482.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 193.0 | 120.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 746.9 | 544.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable <sup>(1)</sup> | 201.8 | 127.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.4 | 120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities <sup>(1)</sup> | 198.2 | 130.9 |
|  **Total liabilities** | **5667.9** | **3450.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 19) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2024: 5,555,546) | **104.4** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2024: 20,955,497 and 2023: 20,882,303) | 236.7 | 236.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2024: 12,569,691 and 2023: 12,525,788) | 145.1 | 145.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (par value $0.000001 per share, issued and outstanding 2024: 166,185,094 and 2023: 165,604,641)  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 124.8 | 146.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (19.5) | (7.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (182.8) | (210.0) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Accelerant shareholders' equity** | **304.3** | **310.5** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** | **18.3** | **(23.8)** |
|  **Total equity** | **427.0** | **286.7** |
|  **Total liabilities and equity** | $**6094.9** | $**3737.2** |

---

<sup>(1)</sup> See Note 6 for details of balances as of December 31, 2023 that were associated with consolidated variable interest entities.

*See accompanying notes to the consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Operations** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Revenues** | **Revenues** | **Revenues** | **Revenues** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 38.9 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **602.6** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.5 | 169.2 | 115.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 | 10.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 | 51.1 | 33.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (5.1) | 3.5 | 1.4 |
|  **Total expenses** | **570.6** | **387.9** | **303.3** |
|  **Income (loss) before income taxes** | **32.0** | **(43.9)** | **(84.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | **22.9** | **(64.1)** | **(95.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net loss attributable to non-controlling interests | 4.3 | 15.3 | 3.9 |
|  **Net income (loss) attributable to Accelerant** | $**27.2** | $**(48.8)** | $**(91.7)** |
|  **Net income (loss) attributable to Accelerant per common share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.16 | $(0.29) | $(0.55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.14 | $(0.29) | $(0.55) |
|  **Weighted-average common shares outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 165982094 | 165604641 | 165604641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 199663694 | 165604641 | 165604641 |

---

*See accompanying notes to the consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Comprehensive Income (Loss)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $22.9 | $(64.1) | $(95.6) |
|  **Other comprehensive (loss) income, net of tax:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (4.9) | 1.8 | (17.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (losses) gains on fixed maturity securities | (5.7) | 1.4 | (1.6) |
|  **Other comprehensive (loss) income, net of tax** | **(10.6)** | **3.2** | **(18.7)** |
|  **Total comprehensive income (loss)** | **12.3** | **(60.9)** | **(114.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive loss attributable to non-controlling interests | 2.9 | 15.5 | 3.6 |
|  **Comprehensive income (loss) attributable to Accelerant** | $**15.2** | $**(45.4)** | $**(110.7)** |

---

*See accompanying notes to the consolidated financial statements.* 

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Consolidated Statements of Equity** 

**Years Ended December 31, 2024, 2023 and 2022** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(expressed in millions of US<br>dollars)*** | **Class C<br>convertible<br>preference<br>shares** | **Class A<br>convertible<br>preference<br>shares** | **Class B<br>convertible<br>preference<br>shares** | **Additional<br>paid-in<br>capital** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Accelerant<br>shareholders'<br>equity** | **Non-controlling<br>interests** | **Total<br>equity** |
|  **Balance, January 1, 2022** | $**—** | $**173.8** | $**—** | $**145.5** | $**8.1** | $**(69.5)** | $**257.9** | $**(1.8)** | $**256.1** |
|  Net loss |  |  |  |  |  | (91.7) | (91.7) | (3.9) | (95.6) |
|  Other comprehensive income (loss) |  |  |  |  | (19.0) |  | (19.0) | 0.3 | (18.7) |
|  Issuance of convertible preference shares <sup>(1)</sup> |  | 62.9 | 144.4 |  |  |  | 207.3 |  | 207.3 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (1.8) | (1.8) |
|  Issuance of non-controlling interests |  |  |  |  |  |  |  | 2.7 | 2.7 |
|  **Balance, December 31, 2022** | $**—** | $**236.7** | $**144.4** | $**145.5** | $**(10.9)** | $**(161.2)** | $**354.5** | $**(4.5)** | $**350.0** |
|  Net loss |  |  |  |  |  | (48.8) | (48.8) | (15.3) | (64.1) |
|  Other comprehensive income (loss) |  |  |  |  | 3.4 |  | 3.4 | (0.2) | 3.2 |
|  Issuance of convertible preference shares |  |  | 0.7 |  |  |  | 0.7 |  | 0.7 |
|  Share-based compensation |  |  |  | 4.8 |  |  | 4.8 |  | 4.8 |
|  Acquisition of non-controlling interests in subsidiaries |  |  |  | (4.1) |  |  | (4.1) | (1.4) | (5.5) |
|  Issuance of non-controlling interests |  |  |  |  |  |  |  | 0.5 | 0.5 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (2.9) | (2.9) |
|  **Balance, December 31, 2023** | $**—** | $**236.7** | $**145.1** | $**146.2** | $**(7.5)** | $**(210.0)** | $**310.5** | $**(23.8)** | $**286.7** |
|  Net income (loss) |  |  |  |  |  | 27.2 | 27.2 | (4.3) | 22.9 |
|  Other comprehensive (loss) income |  |  |  |  | (12.0) |  | (12.0) | 1.4 | (10.6) |
|  Issuance of convertible preference shares and contingently issuable detachable warrants  | 104.4 |  |  | 10.1 |  |  | 10.1 |  | 114.5 |
|  Acquisition of non-controlling interests in previously consolidated variable interest entities <sup>(2)</sup> |  |  |  | (39.9) |  |  | (39.9) | 39.9 |  |
|  Share-based compensation |  |  |  | 8.4 |  |  | 8.4 |  | 8.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (3.5) | (3.5) |
|  Issuance of non-controlling interests <sup>(3)</sup> |  |  |  |  |  |  |  | 8.6 | 8.6 |
|  **Balance, December 31, 2024** | $**104.4** | $**236.7** | $**145.1** | $**124.8** | $**(19.5)** | $**(182.8)** | $**304.3** | $**18.3** | $**427.0** |

---

<sup>(1)</sup> Issuance of convertible preference shares included net cash proceeds of $204.8 million and $2.5 million related to a non-cash financing activity consisting of the issuance of 209,172 Class A convertible preference shares to a related party. For further information, refer to Note 16. 

<sup>(2)</sup> For further information related to this acquisition and the corresponding issuance of convertible preference and common shares, refer to Note 6.

<sup>(3)</sup> Refer to Note 17 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings** 

**Consolidated Statements of Cash Flows** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $22.9 | $(64.1) | $(95.6) |
|  **Adjustments to reconcile net income (loss) to net cash provided by operating activities:** |  |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net income (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized (gains) losses on investments | (1.9) | (0.5) | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains on investments | (19.0) | (17.3) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (2.3) | (2.9) | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 8.4 | 4.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax (benefits) expenses | (40.9) | 0.3 | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on commutation |  | (4.8) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (5.1) | 3.5 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (5.7) | (0.5) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 1.6 | 0.8 | 0.1 |
|  **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (319.0) | (221.8) | (114.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (648.3) | (285.7) | (376.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (471.0) | (252.9) | (180.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 7.5 | (162.0) | (74.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs <sup>(1)</sup> | (8.2) | (19.3) | (16.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 540.3 | 326.7 | 241.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 674.8 | 377.0 | 422.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 636.4 | 215.2 | 105.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 68.4 | 32.6 | 59.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 203.0 | 303.4 | 100.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 72.5 | 105.0 | 6.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | 44.7 | (62.0) | (13.3) |
|  **Net cash provided by operating activities** | **785.7** | **290.0** | **67.5** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 114.8 | 88.6 | 126.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 84.3 | 41.5 | 14.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 0.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 18.6 | 10.7 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | (46.9) | (201.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (500.7) | (73.8) | (56.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | (4.3) | (0.9) | (9.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | (0.4) | (0.6) | (6.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | (56.5) | (0.7) | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of subsidiaries, net of cash acquired | (0.5) | 2.8 | (1.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (34.4) | (32.6) | (26.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (1.3) | (0.7) | 0.6 |
|  **Net cash used in investing activities** | **(380.1)** | **(12.6)** | **(147.7)** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of convertible preference shares, net of issuance costs <sup>(2)</sup> | 114.5 | 0.7 | 204.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debt, net of issuance costs | 49.7 | 20.0 | 54.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt | (50.4) | (2.0) | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of non-controlling interests in subsidiaries |  | (5.5) | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (3.5) | (2.9) | (1.8) |
|  **Net cash provided by financing activities** | **110.3** | **10.3** | **256.0** |
|  **Net increase in cash, cash equivalents and restricted cash** | **515.9** | **287.7** | **175.8** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (18.3) | 4.1 | (15.5) |
|  Cash, cash equivalents and restricted cash at beginning of year | 775.4 | 483.6 | 323.3 |
|  **Cash, cash equivalents and restricted cash at end of year** | $**1273.0** | $**775.4** | $**483.6** |

---

<sup>(1)</sup> Deferred acquisition costs are reduced by the ceding commissions recorded as a reimbursement for acquisition costs of insurance contracts subject to reinsurance.

<sup>(2)</sup> Issuance of convertible preference shares is net of issuance expenses of $10.7 million, $0.2 million and $9.8 million for the years ended December 31, 2024, 2023 and 2022. The 2024 issuance of preference shares included contingently issuable detachable warrants. 

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**Accelerant Holdings** 

**Consolidated Statements of Cash Flows (continued)** 

*See accompanying notes to the consolidated financial statements.* 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Supplemental cash flows information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $11.1 | $10.1 | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 45.5 | 20.2 | 21.1 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1225.7 | 775.4 | 482.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents | 47.3 |  | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1273.0** | $**775.4** | $**483.6** |

---

***<u>Supplemental non-cash activity information:</u>***

For the year ended December 31, 2024, we had non-cash financing activities consisting of the issuance of common shares with a fair value of $7.0 million as consideration for the acquisition of all the outstanding common equity ownership interest in Mission, together with the issuance of convertible preference shares as an anti-dilutive measure to existing shareholders for no consideration. For further information on the Mission acquisition, refer to Note 6.

For the year ended December 31, 2023, we had non-cash operating activities related to a loss portfolio transfer reinsurance contract and a commutation agreement. See Note 8 for further detail regarding these reinsurance transactions.

For the year ended December 31, 2022, we had non-cash financing activities consisting of the issuance of 209,172 Class A convertible preference shares to a related party consisting of 167,338 shares issued in settlement of an outstanding payable balance of $2.0 million and 41,834 shares purchased by the related party by way of a $0.5 million loan funded by us. In addition, non-controlling interest increased by $2.3 million due to our acquisition of subsidiaries.

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings** 

**Notes to Consolidated Financial Statements** 

**1. Nature of business and basis of presentation** 

***Nature of business***

Accelerant Holdings, together with its subsidiary companies ("Accelerant", "we", "us", "our" or the "Company"), connects selected specialty insurance underwriters ("Members") with risk capital partners through its data-driven risk exchange (the "Risk Exchange"). The Company, together with its risk capital partners, provide property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). The Company focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

The Company is the primary operating holding company of the Accelerant group of companies (the "Group"). The ultimate parent company of the Group is Accelerant Holdings LP ("Holdings LP"), a Cayman exempted limited partnership entity.

***Basis of presentation***

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities. Certain prior year comparative information has been reclassified to conform to the current presentation.

***Common and preference share subdivision***

In connection with preparing for its initial public offering, the Company's Board of Directors approved amendments to the authorized share capital of the Company, which were subsequently approved by the Company's shareholders and became effective on July 14, 2025. Pursuant to these amendments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a 83.6690-for-1 share subdivision of the Company's common and preference shares was approved; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the authorized number of common shares and preference shares were increased to 252,652,430 and 39,089,474,
respectively.

All share and per share amounts in the consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to such share subdivision.

**2. Summary of significant accounting policies** 

***Principles of consolidation***

The consolidated financial statements include all the controlled subsidiaries, generally through a greater than 50% ownership of voting rights and voting interests ("VOE"), and variable interest entities ("VIEs") of which we are the primary beneficiary. Non-controlling interests consist of equity that is not attributable directly or indirectly to us. Equity investments in entities that are not consolidated in which we have significant influence over the operating and financial policies are accounted for under the equity method. All significant intercompany balances and transactions have been eliminated in consolidation.

***Variable interest entities***

VIEs are required to be consolidated by the entity deemed to be the primary beneficiary which is defined as the investor that has the power to direct the activities of the VIE and will absorb a portion of the VIEs expected losses or residual returns that could potentially be significant to the VIE.

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To determine whether the Company has a variable interest in a VIE, we analyze whether we are the primary beneficiary of the VIE by considering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's purpose and design, including the risks the VIE intended to pass through to its variable interest
holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's capital structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the terms between the VIE and its variable interest holders and other parties involved with the VIE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the power to direct the activities of the VIE, including those that most
significantly impact the VIE's economic performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the obligation to absorb losses or the right to receive benefits from the
VIE, particularly those that could potentially be significant to the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any relevant related party relationships.

We reassess our determination of whether we are the primary beneficiary of a VIE upon changes in facts and circumstances that could potentially change our assessment (i.e., reconsideration events).

***Foreign operations remeasurement and translation***

The functional currency for each of our operating subsidiaries is generally the currency of the local operating environment. Transactions in currencies other than the local operation's functional currency are remeasured into the functional currency and the resulting foreign exchange gains or losses are reflected in our consolidated statements of operations. Functional currency assets and liabilities are translated into our reporting currency, US dollars, using period end exchange rates and the related translation adjustments are recorded as a separate component of other comprehensive (loss) income within shareholders' equity. Amounts included in our consolidated statements of operations are translated using the applicable exchange rates existing during the annual period.

***Business combinations***

The acquisition method of accounting is used to account for all business combinations. The consideration transferred for the acquisition of an entity is comprised of the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair values of the assets transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liabilities incurred to the former owners of the acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equity interests issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any asset or liability resulting from additional consideration arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any pre-existing equity interest (non-controlling interest upon consolidation) in the subsidiary.

Identifiable assets acquired (including intangible assets) and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. We recognize any non-controlling interests in the acquired entity at fair value. Acquisition-related costs are expensed as incurred.

Goodwill for business combinations is recorded as the excess of the consideration transferred, over the fair value of the net identifiable assets acquired.

***Use of estimates***

The preparation of consolidated financial statements in conformity with US GAAP requires us to make estimates and assumptions which affect the reported amounts of assets and liabilities at the date of our consolidated

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financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our consolidated financial statements include, but are not limited to, unpaid losses and loss adjustment expenses ("LAE"), reinsurance recoverables on unpaid losses, direct and ceding commission income subject to sliding scale adjustments based on actual and expected loss ratios of the underlying insurance policies, valuation allowance on deferred income taxes, fair values of investments, valuation allowance for expected credit losses, recoverability of goodwill and other intangible assets, and useful economic lives of intangible assets.

***Premiums***

Premiums are generally recorded as written upon inception of the policy, less cancellations. Premiums written are based on contract and policy terms. Premiums are primarily earned in proportion to the amount of insurance protection provided over the term of the insurance contract. Unearned premiums represent the portion of premiums written applicable to the unexpired term of the related policy.

A premium deficiency occurs if the sum of anticipated losses and loss adjustment expenses and deferred acquisition costs ("DAC") exceed the sum of anticipated investment income and unearned premiums. A premium deficiency is recorded by charging any deferred acquisition costs to expenses to the extent required to eliminate the deficiency. If the premium deficiency exceeds deferred acquisition costs, then a liability is accrued for the excess deficiency. No such deficiency has been recognized as of and for the years ended December 31, 2024, 2023 and 2022.

***Deferred policy acquisition costs***

Policy acquisition costs represent the costs directly related to the successful acquisition of new and renewal insurance contracts. The costs are deferred and amortized over the same period in which the related premiums are earned. The costs principally consist of commissions, brokerage, premium tax expenses and direct agency costs. The amounts presented within our consolidated balance sheets pertain to the DAC associated with the retained portion of insurance policies we issue, as the acquisition costs associated with the ceded portion of the insurance policies are offset by ceding commissions received from our reinsurance providers. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable deferred policy acquisition costs are expensed in the period identified.

***Ceding commission income***

We cede a significant portion of our premiums written to reinsurance companies. This generates ceding commissions which are recorded as a reimbursement for (and reduction of) the pro-rata share of the acquisition costs related to the insurance contracts subject to the reinsurance. Ceding commissions that are more than the proportionate amount of the DAC of the business ceded are deferred and amortized over the same period in which the related premium is earned. The amortization of the excess deferred ceding commissions is recorded as a component of "Ceding commission income" within our consolidated statements of operations.

Certain ceding commissions are subject to sliding scale adjustments based on the actual loss experience of covered insurance contracts. These adjustments often occur well after the ceding commissions are earned based on the development of longer-tail insurance liabilities. In those instances, the commission adjustments are recorded directly as income or loss when determined because they are no longer subject to deferral as the underlying policy periods have ended. Accordingly, in all cases, we adjust ceding commissions as of the reporting date for our best estimate of loss experience for reinsured insurance contracts. Total ceding commission income earned was $249.5 million, $164.2 million and $44.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

***Direct commission income***

The Company operates its Risk Exchange (within the Exchange Services segment - refer to Note 3), its own insurance agencies (that place insurance coverage through a network of MGAs, including independent, partially

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owned and wholly owned MGAs) and (re)insurance companies. The Risk Exchange generates revenue primarily through commission paid by affiliated and third-party insurance carriers for various agency services and fees paid by third-party reinsurance brokers for placement services.

Our insurance agencies operate through a network of MGAs and third-party claim administrators ("TPAs") that execute various activities on behalf of the Risk Exchange in return for commissions. Transactions among third-parties are reflected in our financial statements, while commissions and other amounts paid by and among wholly-owned entities are eliminated in consolidation.

The Exchange Services segment recognizes revenue as direct commission income on a net basis, with its commission income offset by the commission expense paid to MGAs, reflecting that Exchange Services acts in an agency capacity on behalf of the insurance companies in connection with its performance obligations for underwriting, binding, and placement of insurance coverage.

Exchange Services also acts in a principal capacity for the post-placement obligations such as supporting the adjudication of large claims through management of various third-party administrators which perform claims handling and settlement services.

We estimate the stand-alone selling price for each separate performance obligation and allocates the total commission income between the performance obligations. The commissions allocated to the performance obligation of underwriting, binding and placement of insurance coverage are earned upon the effective date of the insurance policy, while the corresponding price allocated to post-placement obligations are recognized over time as the performance obligations are fulfilled on a straight-line basis.

Commissions paid by third-party insurance carriers are also subject to certain contractual clauses that give rise to variable consideration as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions received are subject to adjustment based on the loss experience in the underlying policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions are also subject to return if there are cancellations of the underlying policies.

Commission revenue is only recognized to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. A commission refund liability is estimated for the potential return of commissions.

*<u>Legacy business:</u>* Prior to Accelerant's commencement of underwriting activities in mid-2020, we contracted with other (re)insurance companies in exchange for direct commission income. Such legacy business is subject to sliding scale commissions based on loss experience for the subject insurance policies (whereby favorable development will result in incremental commission income and adverse development will result in a reversal of commission income). For the years ended December 31, 2024, 2023 and 2022, total commission (reversals) income due to (adverse) favorable development related to the Company's legacy business was $(9.6) million, $(5.1) million and $6.9 million, respectively. The total commission refund liability associated with this arrangement was $38.8 million and $29.8 million as of December 31, 2024 and 2023, respectively.

The premiums written under the legacy business were fully reinsured with a third-party reinsurance company, which in turn was subject to a quota share retrocession arrangement that included a requirement to post collateral and funds withheld. As of December 31, 2024 and 2023, there were $18.2 million and $20.0 million, respectively, of aggregate funds withheld and collateral under the retrocession contract recognized as an asset within the Company's balance sheet. The balances are reviewed periodically and are adjusted where required, in line with the claims settlement payments and related experience of the retrocession contract.

***General and administrative expenses***

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses and are expensed as incurred.

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***Technology and development operating expenses***

Technology and development operating expenses consist primarily of salaries and associated costs of the ongoing development, maintenance and administration of the Risk Exchange technology.

***Other expenses***

Other expenses represent costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to stock-based compensation, legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formation costs that support our growing business.

***Income taxes***

The provision for income tax recognized in our consolidated statements of operations consists of current and deferred tax. The calculation of current and deferred tax is based on tax rates and tax laws which have been enacted in the reporting period. The deferred tax assets and liabilities result from temporary differences between the amounts recorded in our consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns.

Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income. This is assessed based on forecasted future operating results, adjusted for significant non-taxable income and expenses, and specific limits on the use of any unused tax losses or credits. A valuation allowance against deferred tax assets is recorded, if it is more likely than not, that all, or some portion of, the benefits related to these deferred tax assets will not be realized.

Deferred tax liabilities are generally recognized in full, with limited exceptions. Potential tax implications of repatriation from our unremitted earnings that are indefinitely reinvested are driven by facts at the time of distribution. Therefore, it is not practicable to estimate the income tax liabilities that might be incurred if such earnings were remitted. We review all tax positions and determine whether our position is more likely than not to be sustained, upon examination by regulatory authorities. Recognized income tax positions are measured at the largest amount, which has a greater than 50 percent likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

We classify all interest and penalties (if any) related to uncertain tax positions as income tax expense. We did not incur any interest and penalties related to uncertain tax positions, for the years ended December 31, 2024, 2023 and 2022. We did not have any unrecognized tax benefits associated with any uncertain tax positions for the year ended December 31, 2024.

***Cash, cash equivalents and restricted cash***

Cash consists primarily of cash on hand and bank deposits. Cash equivalents are short-term, highly liquid investments that mature within three months from the date of acquisition and are stated at amortized cost, which approximates fair value. Our restricted cash balances are held in segregated accounts and are legally restricted as to withdrawal or usage.

***Investments***

Short-term investments consist of investments with a maturity greater than three months to one year from the date of purchase and are carried at fair value.

Investments in fixed maturity securities consist of bonds with a maturity of greater than one year from the date of purchase. The amortized cost basis of fixed maturity securities is adjusted for the amortization of premiums and

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accretion of discounts. This amortization or accretion is included in periodic income in our consolidated statements of operations. Our investments in fixed maturity securities are considered available-for-sale and are carried at fair value. Changes in the fair value of available-for-sale investments are recognized as a separate component of shareholders' equity (other comprehensive income (loss)) until realized. Fair value of these investments is estimated using prices obtained from third-party pricing services, where available.

Our equity securities consist of interests in investment funds that primarily invest in debt securities. Equity securities are measured at fair value with changes in fair value recognized in "Net unrealized gains on investments" in our consolidated statements of operations. Dividends on equity securities and other investments are included in "Net investment income" on the ex-dividend date in our consolidated statements of operations. Realized gains and losses on disposition of investments are based on specific identification of investments sold on the trade date. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in "Net investment income," net of investment management and custody fees, in our consolidated statements of operations.

We have certain unconsolidated investments where we have significant influence over the operating and financial policies of the investee. We account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments in our results for the period in "Net investment income" in our consolidated statements of operations. Any decline in value of equity method investments we consider to be other-than temporary is charged to income in the period in which it is determined.

Other investments include investments in limited partnership and private equity investments in operating entities, as well as associated warrants to acquire additional ownership interests, whereby we elected the measurement alternative to carry such investments at cost, less any impairment and to mark to fair value when observable prices in identical or similar investment from the same issuer occur. The Company recorded $19.8 million, $12.1 million and $3.5 million of income related to these investments for the years ended December 31, 2024, 2023 and 2022, respectively.

We have elected to classify distributions received from equity method investees using the cumulative earnings approach where distributions received are considered returns on investment and are classified as cash inflows from operating activities unless the amount of cumulative distributions received exceed cumulative earnings and are thereby determined to be returns of investment (that would then be classified as cash inflows from investing activities). Any distribution from investments accounted for under the measurement alternative are classified as investing activities.

***Fair value measurement***

Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date, in the principal or most advantageous market for the asset or liability, in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions, and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These

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measurements may be made when there is little, if any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measurement in its entirety. <br>

We perform valuations for financial reporting purposes. Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of maximizing the use of market-based information.

We use prices from independent pricing vendors to determine fair value estimates of investment funds, which are based on quoted prices in an active market and are disclosed as Level 1. Our internal price validation procedures and review of fair value methodology documentation provided by independent pricing vendors has not historically resulted in adjustments to the prices obtained from the pricing service. The independent pricing services used by our vendors obtain actual transaction prices for securities that have quoted prices in active markets. We derive the fair value of fixed maturity securities principally from market price data for identical assets from exchange or dealer markets and from market observable inputs such as interest rates and yield curves that are observable at commonly quoted intervals and are disclosed as Level 2. Rights to acquire equity interests, including warrants, are disclosed as Level 3 due to the use of significant unobservable inputs. We use valuation techniques that rely on internally developed models and reported values from investment managers rather than quoted prices or observable market data. The market for these investments is illiquid and there is no active market.

***Premiums receivable***

Premiums receivable include insurance premiums that are both amounts currently due and not yet due from policyholders as well as amounts due from agents. The balance is reported net of a valuation allowance for expected credit losses. Such allowance is based upon ongoing review of amounts outstanding, the length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. As of December 31, 2024 and 2023, we had valuation allowance for expected credit losses of $2.4 million and $2.7 million, respectively.

***Goodwill and other intangible assets***

Goodwill represents the excess of acquisition costs over the net fair value of identifiable assets acquired and liabilities assumed in a business combination at the date of acquisition. Goodwill is allocated to reporting units based on the expected benefit from the business combination. Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. If the goodwill asset is determined to be impaired, it is written down in the period in which the determination is made.

We perform our annual goodwill impairment assessment as of October 1 each year, or more frequently if indicators of impairment exist. For goodwill impairment testing, we have the option to first assess qualitative factors to determine whether it is more likely than not (i.e., more than a 50 percent probability) that the fair value of the reporting unit is greater than the carrying amount. If our assessment indicates less than a 50 percent probability that the fair value of a reporting unit is greater than the carrying value or otherwise we elect to bypass the qualitative assessment, we quantitatively estimate the reporting unit's fair value. If the carrying value of the reporting unit exceeds its estimated fair value, we recognize an impairment loss for the amount by which the reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit.

We determine the fair value of the reporting units using the income approach or the market approach. Under the income approach, we estimate the fair value of a reporting unit based on the present value of estimated future

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cash flows. We prepare cash flow projections based on our estimates of revenue growth rates and operating margins, taking into consideration the historical performance and the current macroeconomic industry and market conditions. Under the market approach, we estimate fair value based on market multiples of earnings, derived from comparable publicly traded companies, with similar characteristics as the reporting unit.

Other intangible assets include finite-lived intangible assets that relate to customer relationships and trademarks. Finite-lived intangible assets are recognized at fair value on the acquisition date and amortized over their estimated useful lives. Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives, generally five to fifteen years, and are reviewed for impairment when events and circumstances indicate that their carrying value may not be recoverable. Estimated useful lives of finite-lived intangible assets are required to be reassessed on at least an annual basis.

Other indefinite-lived intangible assets relate to insurance licenses and are not amortized. We test such assets for impairment annually as of October 1 or more frequently when events and circumstances indicate that their carrying value may not be recoverable.

***Capitalized technology development costs***

We develop internal-use software and implements cloud-computing arrangement software. We capitalize certain of those costs based on the nature of the development activities being performed, including coding, software installation, testing and significant upgrades or enhancements to existing software that result in additional functionality. Costs capitalized to develop internal-use software are amortized using the straight-line method over the estimated useful life, which we generally estimate to be five years, beginning when the software is substantially complete and ready for its intended use. Costs capitalized to implement cloud computing arrangements, are amortized over the term of the hosting arrangement using the straight-line method. Costs associated with activities not described above are expensed as incurred.

We periodically assess the capitalized software's estimated useful lives and potential impairment indicators when there is risk such costs may not be recoverable.

***Unpaid losses and loss adjustment expenses***

Our reserves for losses and LAE include estimates for unpaid claims and claim expenses on reported losses as well as an estimate of losses incurred but not reported ("IBNR"). It represents our best estimate of the unpaid portion of ultimate costs, of all reported and unreported loss incurred through the balance sheet date and is based upon the assumption that past developments are an appropriate indicator of future events amongst other factors. The reserves are based on individual claims, case reserves and other reserves estimates reported, as well as our actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses may vary materially from the amounts provided in our consolidated financial statements. These estimates are reviewed regularly and as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in our consolidated statements of operations in the period in which they become known and we account for them as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

The process of establishing unpaid losses and LAE can be complex and is subject to considerable uncertainty, as it requires the use of informed estimates and judgments based on circumstances known at the date of accrual. Our estimates and judgments are based on numerous factors and may be revised as additional experience and other data become available and are reviewed as new or improved methodologies are developed. The adequacy of the reserves may be impacted by future trends in claims severity, frequency, payment patterns and other factors. These variables are affected by both external and internal events, including but not limited to, changes in the economic cycle, inflation, natural or human-made catastrophes and legislative changes.

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Total IBNR reserves are determined by subtracting payments and case reserves implied from the ultimate loss and LAE estimates. Ultimate loss and LAE are estimated utilizing generally accepted actuarial loss reserving methods. The reserving methods we employ include the Chain Ladder, Bornheutter-Ferguson and Initial Expected Loss Ratio methods. Reportable catastrophe losses are analyzed and reserved separately using a frequency and severity approach. The methods all involve aggregating paid and case-incurred loss data by underwriting year and development month, segmented into MGAs and products or lines of business as deemed appropriate and material. Our ultimate loss selections for each year tend to be based upon the Chain Ladder results for the older years and the Bornheutter-Ferguson method for the most recent years.

Because we have limited data to assess our own claims experience given the recently formed nature of our business, we use industry and peer-group data, in addition to our own data, as a basis for selecting our expected paid and reporting patterns.

The recorded reserves represent our best estimate of ultimate liabilities, based on currently known facts, current law, current technology, and reasonable assumptions where facts are not known. Due to the significant uncertainties and related judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

***Reinsurance recoverables and payables***

Our insurance companies use reinsurance to mitigate exposure to losses arising from direct insurance policies, limit liability on specific risks and catastrophes and to stabilize loss experience. We also utilize reinsurance to manage capital (both regulatory and operational) and solvency and as a mechanism to pool risks to maximize diversity of the portfolio.

We purchase various types of reinsurance, including excess of loss contracts (that protect against losses above stipulated amounts) together with quota share contracts (to provide cover for adverse losses on a total portfolio basis). Certain of these reinsurance contracts include risk limiting features, such as loss limits, sliding scale commissions and reinstatement provisions. Risk tolerance is set based on a low probability of exceeding loss limitations. We closely monitor our exposures against the available reinsurance to ensure adequate protection. The impact of the sliding scale commission adjustments following adverse loss experience (resulting in a return of ceding commission to the reinsurers and therefore an offset to the benefit of reinsured losses) could be material to the Company.

Premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Amounts applicable to reinsurance ceded for unearned premiums are reported as Ceded unearned premiums in our consolidated balance sheet.

Certain reinsurance contracts we purchase are retroactive (and take the form of a loss portfolio transfer), whereby the reinsurer agrees to reimburse us because of past insurable events. When a reinsurance contract does not transfer significant insurance risk, we account for the premium paid (net of any amount of premium that will be retained by the reinsurer) as a deposit asset in reinsurance recoverables within our consolidated balance sheets. The amount of the initial deposit asset is adjusted in subsequent reporting periods by calculating an effective yield on the deposit based on actual and expected future payments. Such adjustments are reported as interest income within "Net investment income" in our consolidated statements of operations.

Reinsuring loss exposures does not relieve our obligation to policyholders in the event of nonperformance by the reinsurers, thus a credit and / or dispute exposure exists to the extent that any reinsurer is unable to meet the obligation assumed in the reinsurance agreements. To mitigate this exposure to reinsurer insolvencies, we evaluate the financial condition of our reinsurers and typically hold collateral in the form of funds withheld, trusts and letters of credit, as security under the reinsurance agreements.

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Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the insured business. Reinsurance premiums, commissions, and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts.

We assess our reinsurance assets for recoverability on a regular basis. If there is objective evidence that the reinsurance asset is not recoverable due to reinsurer insolvency, a contractual dispute, or other reasons, we reduce the carrying amount of the reinsurance asset to our recoverable amount and recognizes that loss in our consolidated statements of operations.

We may periodically enter commutation agreements with our reinsurers. Such agreements result in the termination of all or part of a reinsurance agreement whereby we would assume the obligation to insure the previous loss reserves subject to the reinsurance agreement in exchange for cash or other consideration. Upon execution of a commutation agreement, we reassume the risk of liabilities for losses previously ceded to the reinsurer, while the reinsurer is generally released of our obligations under the commuted (legally extinguished) portions of the reinsurance agreement. Our insurance subsidiaries that originally ceded the insurance business account for a commutation by eliminating their existing reinsurance recoverable and recognizing a gain or loss for the difference between the consideration received and the previously recognized reinsurance recoverable.

*<u>Flywheel Re:</u>* We have entered into a quota share agreement, where we cede certain insured risks to Flywheel Re Ltd. ("Flywheel Re"). Flywheel Re is a Class C Insurer licensed in the Cayman Islands and is a special purpose reinsurance company that provides multi-year collateralized quota share capacity to Accelerant, backed by long-term institutional investors. Flywheel Re is not consolidated in our consolidated financial statements because we i) do not have the power over the activities that most significantly impact Flywheel Re's economic performance, and ii) it is wholly-owned by third-party investors. Each investor group in Flywheel Re purchased preferred shares in a segregated portfolio owned solely by such investor group. The purchase price of the preferred shares was then pledged as collateral to Accelerant Re (Cayman) Ltd. ("Accelerant Re"), the cedent to Flywheel Re under each applicable reinsurance agreement. Accelerant Re cedes premium and losses in accordance with the terms of the applicable reinsurance agreement, to Flywheel Re and all investors are obligated to accept such premium and losses over the course of three underwriting years. Our reinsurance arrangements with Flywheel Re have been contracted on an arm's-length basis.

***Funds held under reinsurance***

Certain of our reinsurance contracts provide for an arrangement where, rather than making a cash payment or transferring investments for ceded premiums written, we hold the related amounts as assets to collateralize the reinsurer's obligations and establish corresponding funds held under reinsurance liabilities.

***Concentrations of credit risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Cash and cash equivalents are held with financial institutions of high quality. For equity securities and fixed maturity securities, we manage our credit risk through diversification in terms of instruments by issuer, geographic region and related industry.

The ceding of insurance through our reinsurance partners does not legally discharge us from our primary liability for the full amount of the policy coverage. We will be required to pay the loss and bear the collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement. To minimize exposure to significant losses from reinsurance insolvencies, we evaluate the financial condition of our reinsurers and monitor both individual, and concentrations of, credit risk. Refer to Note 8 for more information on how we manage credit risk related to our reinsurance recoverables.

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***Segment information***

Accelerant's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer ("CEO"). The CODM has authority and executive oversight over operating decisions and resource allocations such as significant business strategy decisions, capital expenditures, the budget and forecasting processes and all new material ventures and contracts. Additionally, the CODM drives the execution of these activities and reviews operating results to assess performance and makes resource allocation decisions. Each segment has a segment manager who reports directly to the CODM.

Adjusted EBITDA, a non-GAAP financial measure, is the primary measure of segment profit and loss reviewed by the CODM and is intended to measure the performance of segments, which the CODM utilizes to allocate our resources. We define Adjusted EBITDA as net income (loss) adjusted to remove the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses. We believe the exclusion of the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses is pertinent to understanding Accelerant's performance attributable to our core operating activities, as well as comparability to prior periods and peers. Segment Adjusted EBITDA also excludes certain costs that are not allocated to segments because they are separately managed at the consolidated corporate level. The unallocated costs primarily include general and administrative expenses such as those incurred in the legal and accounting functions.

Refer to Note 3 for more information on our segments.

**Convertible preference shares** 

We have issued convertible preference shares that are evaluated for features that may result in their characterization as permanent equity, temporary equity (often referred to as "mezzanine equity"), or a liability.

We record the Class A and Class B preference shares at their respective fair values on the dates of issuance, net of issuance costs, within permanent equity. Such convertible preference shares are subject to actual liquidation or deemed liquidation events, such as an initial public offering of common shares of the Company, or a sale of the Company. Our Class A and Class B shares are recorded as a component of permanent equity because, while they are subject to redemption on the occurrence of any such liquidation events, all of the holders of equally or more subordinated equity instruments of the Company are also entitled to receive the same form of consideration (for example, cash or shares) upon the occurrence of the event that gives rise to the redemption (that is, all classes of shares subordinate to the Class A and Class B preference shares would also be entitled to be redeemed).

Our Class C preference shares were issued with contingently issuable detachable warrants that only become exercisable on the non-occurrence of an initial public offering or other liquidation event within two years of issuance of the Class C preference shares. Such warrants are equity-linked instruments and are considered issued for accounting purposes. We recorded the Class C preference shares and contingently issuable detachable warrants at their relative fair values on the date of issuance, net of issuance costs, within temporary equity and additional paid in capital, respectively. The Class C preference shares are recorded in temporary equity as they contain redemption rights that are contingent upon the occurrence of actual liquidation or deemed liquidation events of the Company, such as an initial public offering of common shares of the Company, or a sale of the Company, that are not solely within the Company's control, and that such redemption rights are not available to other holders of equally or more subordinated equity instruments of the Company. We deemed the Class C preference shares probable of conversion to common shares when considering both the expected timing and nature of events giving rise to the redemption or conversion rights of the holders of such Class C preference shares at the date of issuance. In subsequent periods, if the Class C preference shares are not converted to common shares and the condition for redemption is met, we will recognize the redemption value immediately. The difference in redemption value from carrying value will be reflected as a deemed dividend and an increase of the Class C preference shares, as well as a corresponding reduction to additional paid in capital and earnings per

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share. The Class C preference shares would then be subject to cash settlement. If the warrants are never issued, there is no adjustment to the previous amounts in additional paid in capital. If the warrants are issued and are subsequently exercised for common shares, the amount of consideration paid for the exercise price becomes a component of incremental additional paid in capital and par value of the common shares when such common shares are issued in exchange for the warrants.

**Contingent liabilities** 

We record contingent liability provisions when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

**Earnings per share** 

Our basic earnings per share is based on the weighted average number of common shares outstanding and excludes potentially dilutive securities such as convertible securities.

Our diluted earnings per share is based on the weighted average number of common shares and common share equivalents outstanding calculated using the if-converted method for all potentially dilutive convertible securities. When the effect of dilutive securities would be anti-dilutive, we exclude these securities from the calculation of diluted earnings per share.

**Share-based compensation** 

Share options we have awarded to employees are measured at fair value at each grant date. We calculate the fair value of the share options using a weighted-average of values derived using the Black-Scholes and Hull-White option-pricing models. The Hull-White model is a trinomial lattice model that incorporates the impact of expected employee exercise behavior to estimate the option value.

Use of such option-pricing models requires us to make several assumptions, including the value of our common shares, estimated equity volatility and expected term to exercise. We evaluate all assumptions employed in the valuation of the share option awards as of each grant date. We estimate volatility based upon comparison to certain publicly traded companies. We determine an expected option term for each hypothetical scenario based on contractual term and exercise probability assumptions, as we do not have sufficient historical data to develop an estimate based upon participant behavior. We use a risk-free interest rate equal to the US treasury bond yield with an equivalent period as the expected option term.

We recognize share-based compensation expense over the requisite service period for awards using the straight-line method and recognize forfeitures as they occur.

***Recent accounting pronouncements***

***Recently adopted accounting pronouncements***

*<u>Measurement of credit losses:</u>* On January 1, 2023, we adopted Accounting Standards Update ("ASU") 2016-13, *Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments*, issued by the Financial Accounting Standards Board ("FASB") in June 2016. The ASU replaced the "incurred loss" approach that was previously applied to determine credit losses with an "expected loss" model for financial instruments measured at amortized cost. The expected loss model changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, premiums receivable and reinsurance recoverables. Our valuation

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allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Financial assets, as well as available for sale securities, are now presented on the financial statements net of the valuation allowance.

We analyzed our reinsurance recoverables, including the current credit quality and credit outlook for reinsurers with at-risk uncollateralized receivable balances. In assessing premium receivables, which are short-term in nature, we assessed customer balances leveraging our current process for analyzing collectability of premium receivables. The adoption of the ASU did not have a material impact on our consolidated financial statements and disclosures and no adjustment to the beginning balance of retained earnings was required upon adoption.

*<u>Segment Reporting:</u>* In November 2023, the FASB issued ASU 2023-07, *Segment Reporting, Improvements to Reportable Segment Disclosures*. to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profits or losses in assessing segment performance. We adopted ASU 2023-07 in our annual financial statements for the year ended December 31, 2024, which was applied retrospectively to all prior periods presented. Refer to Note 3 for the expanded segment disclosures.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued an ASU requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

*<u>Income Tax:</u>* In December 2023, the FASB issued an ASU to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

**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 the CODM assesses performance of the business and makes decisions on the allocation of resources.

***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 and that facilitate the exchange of risk. Insurance companies that join the Risk Exchange pay Accelerant a fixed volume-based fee for sourcing, managing, and monitoring the business they write, and the Risk Exchange pays commissions to Members for the distribution services provided to both consolidated affiliates and third parties. We eliminate net commissions, 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 VOE). For further information on our acquisition of Mission and the related issuance of convertible preference and common shares, refer to Note 6.

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.

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***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. 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 years ended December 31, 2024, 2023 and 2022. Corporate functions and certain other businesses and operations are included in Corporate and Other.

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**Financial information by segment:** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $82 | $82 | $— | $167.5 | $249.5 |
|  Net earned premiums |  |  | 226.6 | 226.6 |  |  | 226.6 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 199.7 | 99.4 |  | 299.1 |  | (299.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 21.9 | 44.8 |  | 66.7 |  |  | 66.7 |
|  Net investment income | 1.1 | 4.2 | 32.6 | 37.9 | 1 |  | 38.9 |
|  Net realized gains on investments |  | 1.3 | 0.6 | 1.9 |  |  | 1.9 |
|  Net unrealized (losses) gains on investments |  |  | (0.7) | (0.7) | 19.7 |  | 19 |
|  **Segment revenues** | **222.7** | **149.7** | **341.1** | **713.5** | **20.7** | **(131.6)** | **602.6** |
|  Losses and loss adjustment expenses |  |  | 167.3 | 167.3 |  |  | 167.3 |
|  Amortization of deferred acquisition costs |  |  | 104.2 | 104.2 |  | (22.8) | 81.4 |
|  General and administrative expenses <sup>(3) (4)</sup> | 51.6 | 105.6 | 90.5 | 247.7 | 36.5 | (56.7) | 227.5 |
|  Technology and development operating expenses | 13.4 |  |  | 13.4 |  |  | 13.4 |
|  **Adjusted EBITDA** | $**157.7** | $**44.1** | $**(20.9)** | $**180.9** | $**(15.8)** | $**(52.1)** | $**113.0** |
|  Interest expenses |  |  |  |  |  |  | (12.1) |
|  Depreciation and amortization |  |  |  |  |  |  | (26.6) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (47.4) |
|  Net foreign exchange gains |  |  |  |  |  |  | 5.1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**32.0** |

---

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

<sup>(2)</sup> 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 9.

<sup>(3)</sup> 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: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $26.5 | $74.3 | $30.8 | $131.6 |
|  Consulting and professional fees | 5.6 | 8.8 | 15.0 | 29.4 |
|  Other administrative expenses | 19.5 | 22.5 | 44.7 | 86.7 |
|  **Total general and administrative expenses** | $**51.6** | $**105.6** | $**90.5** | $**247.7** |

---

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##### [**Table of Contents**](#toc)
<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of i) $30.8 million of expenses attributable to Exchange Services and MGA Operations that form components of acquisition costs of insurance policies that would be capitalized in consolidation; and ii) $25.9 million of fees for platform services provided by the Risk Exchange that are expensed by Underwriting and recorded as revenue by Exchange Services. There are offsetting adjustments as components of the other consolidation and elimination adjustments. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2024 consist of $14.7 million of system development non-operating expenses, $13.1 million of professional costs related to corporate development activities, $8.4 million of share-based compensation, $7.0 million of Mission profits sharing expense and $4.2 million of individually insignificant costs. 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $78.4 | $78.4 |  | $85.8 | $164.2 |
|  Net earned premiums |  |  | 105.1 | 105.1 |  |  | 105.1 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 107.7 | 76.9 |  | 184.6 |  | (184.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 14.5 | 23.1 |  | 37.6 |  |  | 37.6 |
|  Net investment income | 1.1 | 2.8 | 12.1 | 16.0 | 3.3 |  | 19.3 |
|  Net realized gains on investments |  |  | 0.5 | 0.5 |  |  | 0.5 |
|  Net unrealized gains on investments |  | 9.3 | 5.2 | 14.5 | 2.8 |  | 17.3 |
|  **Segment revenues** | **123.3** | **112.1** | **201.3** | **436.7** | **6.1** | **(98.8)** | **344.0** |
|  Losses and loss adjustment expenses |  |  | 80.3 | 80.3 |  |  | 80.3 |
|  Amortization of deferred acquisition costs |  |  | 68.4 | 68.4 |  | (18.5) | 49.9 |
|  General and administrative expenses <sup>(3) (4)</sup> | 27.7 | 80.6 | 56.0 | 164.3 | 31.7 | (26.8) | 169.2 |
|  Technology and development operating expenses | 8.5 |  |  | 8.5 |  |  | 8.5 |
|  **Adjusted EBITDA** | $**87.1** | $**31.5** | $**(3.4)** | $**115.2** | $**(25.6)** | $**(53.5)** | $**36.1** |
|  Interest expenses |  |  |  |  |  |  | (10.9) |
|  Depreciation and amortization |  |  |  |  |  |  | (14.5) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (51.1) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.5) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(43.9)** |

---

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

<sup>(2)</sup> 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 9.

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##### [**Table of Contents**](#toc)
<sup>(3)</sup> 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: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $12.2 | $55.8 | $30.8 | $98.8 |
|  Consulting and professional fees | 2.5 | 5.9 | 11.7 | 20.1 |
|  Other administrative expenses | 13.0 | 18.9 | 13.5 | 45.4 |
|  **Total general and administrative expenses** | $**27.7** | $**80.6** | $**56.0** | $**164.3** |

---

<sup>(4)</sup> 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. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2023 consists of $22.9 million of system development non-operating costs, $16.2 million of professional costs related to corporate development activities, $4.8 million of share-based compensation, and $7.2 million of individually insignificant costs. 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission (adjustments) income <sup>(2)</sup> | $— | $— | $(12.2) | $(12.2) | $— | $56.5 | $44.3 |
|  Net earned premiums |  |  | 141.2 | 141.2 |  |  | 141.2 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 84.4 | 41.8 |  | 126.2 |  | (126.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 17.4 | 17.1 |  | 34.5 |  |  | 34.5 |
|  Net investment income | 0.1 | 1 | 1.5 | 2.6 |  |  | 2.6 |
|  Net realized losses on investments |  |  | (3.9) | (3.9) |  |  | (3.9) |
|  Net unrealized (losses) gains on investments |  |  | (3.2) | (3.2) | 3.5 |  | 0.3 |
|  **Segment revenues** | **101.9** | **59.9** | **123.4** | **285.2** | **3.5** | **(69.7)** | **219.0** |
|  Losses and loss adjustment expenses |  |  | 99.5 | 99.5 |  |  | 99.5 |
|  Amortization of deferred acquisition costs |  |  | 58 | 58 |  | (23.0) | 35 |
|  General and administrative expenses <sup>(3) (4)</sup> | 18.1 | 52.6 | 47.1 | 117.8 | 12.9 | (15.1) | 115.6 |
|  Technology and development operating expenses | 8.2 |  |  | 8.2 |  |  | 8.2 |
|  **Adjusted EBITDA** | $**75.6** | $**7.3** | $**(81.2)** | $**1.7** | $**(9.4)** | $**(31.6)** | $**(39.3)** |
|  Interest expenses |  |  |  |  |  |  | (4.2) |
|  Depreciation and amortization |  |  |  |  |  |  | (5.8) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (33.6) |
|  Net foreign exchange losses |  |  |  |  |  |  | (1.4) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(84.3)** |

---

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

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##### [**Table of Contents**](#toc)
<sup>(2)</sup> 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 9.

<sup>(3)</sup> 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: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $10.1 | $39.0 | $31.2 | $80.3 |
|  Consulting and professional fees | 2.1 | 4.9 | 9.7 | 16.7 |
|  Other administrative expenses | 5.9 | 8.7 | 6.2 | 20.8 |
|  **Total general and administrative expenses** | $**18.1** | $**52.6** | $**47.1** | $**117.8** |

---

<sup>(4)</sup> 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. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2022 consists of $11.4 million of system development non-operating costs, $8.7 million of previously deferred costs related to a potential securities issuance that were expensed when we suspended those efforts due to adverse equity market conditions in 2022, $5.6 million of professional costs related to corporate development activities, $4.8 million of costs related to the formation of Flywheel Re, and $3.1 million of other 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 years ended December 31, 2024, 2023 and 2022.

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##### [**Table of Contents**](#toc)
The following table presents our revenues by geography:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $151.2 | $98.3 | $249.5 |
|  Net earned premiums | 165.3 | 61.3 | 226.6 |
|  Direct commission income | 41.9 | 24.8 | 66.7 |
|  Net investment income | 21.0 | 17.9 | 38.9 |
|  Net realized gains on investments |  | 1.9 | 1.9 |
|  Net unrealized gains (losses) on investments | 19.8 | (0.8) | 19.0 |
|  **Total revenues** | $**399.2** | $**203.4** | $**602.6** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $81.5 | $82.7 | $164.2 |
|  Net earned premiums | 77.9 | 27.2 | 105.1 |
|  Direct commission income | 18.6 | 19.0 | 37.6 |
|  Net investment income | 11.6 | 7.7 | 19.3 |
|  Net realized gains on investments | 0.2 | 0.3 | 0.5 |
|  Net unrealized gains on investments | 12.1 | 5.2 | 17.3 |
|  **Total revenues** | $**201.9** | $**142.1** | $**344.0** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income (adjustments) <sup>(1)</sup> | $48.3 | $(4.0) | $44.3 |
|  Net earned premiums | 46.0 | 95.2 | 141.2 |
|  Direct commission income | 2.0 | 32.5 | 34.5 |
|  Net investment income | 1.3 | 1.3 | 2.6 |
|  Net realized losses on investments |  | (3.9) | (3.9) |
|  Net unrealized gains (losses) on investments | 3.4 | (3.1) | 0.3 |
|  **Total revenues** | $**101.0** | $**118.0** | $**219.0** |

---

<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the years ended December 31, 2024, 2023 and 2022 resulting from the loss experience of covered insurance contracts, refer to Note 9.

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##### [**Table of Contents**](#toc)
**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $30.6 | $0.3 | $(0.3) | $30.6 |
|  US government and agency | 32.2 | 0.2 | (0.3) | 32.1 |
|  Non-US government and agency | 2.5 | 0.1 |  | 2.6 |
|  Residential mortgage-backed | 19.0 | 0.1 | (0.7) | 18.4 |
|  Commercial mortgage-backed | 2.8 |  |  | 2.8 |
|  Other asset-backed securities | 8.0 |  |  | 8.0 |
|  **Total fixed maturity and short-term investments** | $**95.1** | $**0.7** | $**(1.3)** | $**94.5** |

---

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##### [**Table of Contents**](#toc)
The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $6.9 | $(0.1) | $7.2 | $(0.2) | $14.1 | $(0.3) |
|  US government and agency | 9.5 | (0.3) | 1.1 |  | 10.6 | (0.3) |
|  Residential mortgage-backed | 4.3 | (0.2) | 6.9 | (0.5) | 11.2 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**20.7** | $**(0.6)** | $**15.2** | $**(0.7)** | $**35.9** | $**(1.3)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at December 31, 2024 and 2023 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $105.6 | $104.6 |
|  Due after one year through five years | 277.0 | 275.0 |
|  Due after five years through ten years | 76.4 | 75.0 |
|  Due after ten years | 6.5 | 6.2 |
|  Residential mortgage-backed | 44.4 | 43.0 |
|  Commercial mortgage-backed | 18.6 | 18.4 |
|  Other asset-backed securities | 22.1 | 22.1 |
|  **Total** | $**550.6** | $**544.3** |

---

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

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##### [**Table of Contents**](#toc)
***Equity securities, at fair value***

Our investments in equity securities consisted of mutual funds that primarily invest in high-grade debt securities and were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Equity securities, at fair value** | $**—**  | $**116.7** |

---

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused TPA that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

Details regarding our equity method investments were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs | 19.0% - 20.0 | $11.0 | 19.0% - 20.0 | $12.7 |
|  Other | 9.4% - 15.0 | 7.2 | 9.4% | 3.0 |
|  **Equity method investments** |  | $**18.2** |  | $**15.7** |

---

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of December 31, 2024, we had unfunded commitments of $2.0 million to our equity method investees.

For the years ended December 31, 2024 and 2023, we received dividends from equity method investees of $1.7 million and $0.8 million, respectively. For the year ended December 31, 2022, we did not receive any dividends from equity method investees.

Details regarding the carrying value of our other investments portfolio were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $26.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 19.1 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  | 0.3 |
|  **Other investments** | $**45.3** | $**25.5** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and

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##### [**Table of Contents**](#toc)
that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

For the year ended December 31, 2024, we recorded $19.8 million of income as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2023, we recorded $12.1 million of income, net of $0.2 million of impairments, as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2022, we recorded $3.5 million of income as a component of unrealized gains following observable prices related to these investments. We have recognized cumulative income as a component of unrealized gains of $35.4 million, net of $0.2 million of impairments, associated with investments accounted for under the measurement alternative from inception of the related investments.

***Net investment income***

Investment income and expenses were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from equity method investments | $2.3 | $2.9 | $1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on fixed maturity investments | 14.8 | 2.9 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on cash and cash equivalents | 22.4 | 13.8 | 0.8 |
|  **Gross investment income** | **39.5** | **19.6** | **3.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment expenses | (0.6) | (0.3) | (0.4) |
|  **Net investment income** | $**38.9** | $**19.3** | $**2.6** |

---

***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Net realized gains on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.2 | $0.4 | $(1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on equity securities sold during the year | 0.5 | 0.1 | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 1.2 |  |  |
|  **Net realized gains (losses) on investments** | $**1.9** | $**0.5** | $**(3.9)** |
|  **Net unrealized gains (losses) on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (losses) gains on equity securities held at the reporting date | (0.8) | 5.2 | (3.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 8.0 | 3.0 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 11.8 | 9.1 |  |
|  Net unrealized gains on other investments | 19.8 | 12.1 | 3.5 |
|  **Net unrealized gains on investments** | $**19.0** | $**17.3** | $**0.3** |
|  **Net realized and unrealized gains (losses) on investments** | $**20.9** | $**17.8** | $**(3.6)** |

---

<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

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##### [**Table of Contents**](#toc)
***Regulated deposits and restricted assets***

Certain subsidiaries of the Company are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of both December 31, 2024 and 2023, which are included in the "Fixed maturity securities available for sale, at fair value" in our consolidated balance sheets.

In addition, we have pledged cash and cash equivalents of $47.3 million, short-term investments of $17.2 million and fixed maturity securities of $33.0 million as of December 31, 2024 in favor of certain ceding companies to collateralize obligations. There were no such pledged assets as of December 31, 2023.

**5. Fair value measurements** 

***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $174.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | **—** | **544.3** | **—** | **544.3** |
|  **Total assets measured at fair value** | $**—** | $**544.3** | $**—** | $**544.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $30.6 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $30.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 32.1 |  | 32.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 2.6 |  | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 2.8 |  | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 8.0 |  | 8.0 |
|  **Total fixed maturity and short-term investments** | **—** | **94.5** | **—** | **94.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value | 116.7 |  |  | 116.7 |
|  **Total assets measured at fair value** | $**116.7** | $**94.5** | $**—** | $**211.2** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the years ended December 31, 2024, 2023 and 2022.

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##### [**Table of Contents**](#toc)
***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $14.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 11.0 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  |  | 0.3 | 0.3 |
|  **Total** | $**—** | $**—** | $**25.5** | $**25.5** |

---

***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>:* As further described in Note 14, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of December 31, 2024 and 2023. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of December 31, 2024 and 2023.

**6. Variable interest entities** 

***VIEs***

In the normal course of our business activities, we enter into relationships with various entities that are deemed to be VIEs. A VIE is an entity that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has equity investors that lack characteristics of a controlling financial interest (including the ability to
control activities of the entity, the obligation to absorb the entity's expected losses and the right to receive the entity's expected residual returns); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lacks sufficient equity to finance its own activities without additional subordinated financial support.

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##### [**Table of Contents**](#toc)
We consolidate a VIE when we determine that we are the primary beneficiary of that VIE. This analysis includes a review of the VIE's capital structure, related contractual relationships and terms, nature of the VIE's operations and purpose, nature of the VIE's interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders.

We are the primary beneficiary if we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the power to direct activities of the VIE that most significantly impact the economic performance of the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to
receive benefits from the VIE that could potentially be significant to the VIE.

***Mission***

Mission, formed in 2021, operates in the US (Mission Underwriting Holdings, LLC, or "Mission US") and in the EU (Mission Holdings Europe Ltd. or "Mission EU"). Each of Mission US and Mission EU operates, pursuant to local licenses as required by its jurisdiction of organization, to support experienced underwriters by providing insurance regulatory, technical infrastructure and product development expertise to them. Each Mission entity was funded principally with loans advanced by the Company in the form of subordinated debt and other working capital arrangements, although at the time of formation ACP Holdings LP ("ACP Holdings") provided the initial equity capital and until 2024 held all the equity of each of Mission US and Mission EU. Also at the time of formation of Mission US and Mission EU, ACP Holdings granted us an option to acquire each of Mission US and Mission EU.

On May 1, 2024, we closed on our acquisition of each of Mission US and Mission EU which we initiated by exercising our options. As described in more detail below, Mission was previously a consolidated VIE given financial support and variable interest considerations. Because Mission was previously consolidated within the Company's financial statements, the exercise of the call option was accounted for as an equity transaction.

The consideration we paid to Accelerant Holdings LP took the form of 580,454 common shares in the Company. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Company's Class A and Class B convertible preference shares at the time such investments were made had relied on the inclusion of Mission within our results of operations, holders of the Company's Class A and B convertible preference shares received an additional 73,194 shares and 43,904 shares, respectively, in each case without further consideration being paid. The total consideration had a fair value of $7.0 million.

The excess fair value of the consideration we paid as compared to the carrying value of the acquired non-controlling interest in Mission is reflected as a reduction in additional paid-in capital of $39.9 million, with a corresponding increase of non-controlling interests of $39.9 million in our consolidated statements of equity for the year ended December 31, 2024.

Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Company.

Prior to May 1, 2024, Mission was determined to be a VIE, as it lacked sufficient equity at risk and was primarily financed with our subordinated debt. As a result of this determination, we assessed whether we were the primary beneficiary and, thus, would be required to consolidate Mission. We were exposed to a significant amount of income and losses of Mission and we had the substantive power to direct the activities that most significantly impacted Mission. On this basis, we had determined that we were the primary beneficiary of Mission and consolidated it.

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##### [**Table of Contents**](#toc)
The following table presents the total assets and total liabilities (after elimination of intercompany balances) associated with our variable interest in Mission as reported in our consolidated balance sheets as of December 31, 2023.

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2023** |
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | $30.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | 49.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 0.9 |
|  **Assets of consolidated VIEs** | $**107.5** |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | $4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 18.2 |
|  **Liabilities of consolidated VIEs** | $**22.3** |

---

**7. Revenue from contracts with customers** 

The following table presents our revenues from contracts with third parties by geographical market. All revenue from contracts with customers is generated by our Exchange Services and MGA Operations segments, specifically by owned MGAs that provide insurance products and services to third party insurers that is not subject to elimination in consolidation. The tables below also include the revenues from our legacy business referenced in Note 2.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $41.9 | $16.6 | $58.5 |
|  Loss experience adjustments |  | (9.6) | (9.6) |
|  Other revenue |  | 17.8 | 17.8 |
|  **Direct commission income** | $**41.9** | $**24.8** | $**66.7** |
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $18.6 | $10.8 | $29.4 |
|  Loss experience adjustments |  | (4.8) | (4.8) |
|  Other revenue |  | 13.0 | 13.0 |
|  **Direct commission income** | $**18.6** | $**19.0** | $**37.6** |
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $2.0 | $13.9 | $15.9 |
|  Loss experience adjustments |  | 5.9 | 5.9 |
|  Other revenue |  | 12.7 | 12.7 |
|  **Direct commission income** | $**2.0** | $**32.5** | $**34.5** |

---

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##### [**Table of Contents**](#toc)
**8. Reinsurance** 

We enter into reinsurance agreements to limit our exposure to large losses and to enable us to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

We use extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage our exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align our interests with those of our reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Written premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2640.0 | $1608.3 | $1200.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 266.3 | 89.5 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2651.7) | (1506.9) | (1013.8) |
|  **Net written premiums** | $**254.6** | $**190.9** | $**186.0** |
|  **Earned premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2103.7 | $1304.5 | $779.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 127.9 | 14.9 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2005.0) | (1214.3) | (637.4) |
|  **Net earned premiums** | $**226.6** | $**105.1** | $**141.2** |
|  **Loss and LAE:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $1136.1 | $669.6 | $433.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.0 | 7.6 | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (1044.8) | (596.9) | (332.3) |
|  **Net loss and LAE** | $**167.3** | $**80.3** | $**99.5** |

---

***Reinsurance transactions***

*<u>Loss portfolio transfer</u>:* Effective December 2023, certain of our insurance subsidiaries entered into a loss portfolio transfer reinsurance contract ("LPT"). The reinsurance counterparty reinsures all of the Company's retained loss reserves (subject to certain minor exclusions) on policies written prior to June 2022, subject to a limit of $152.1 million. The terms of the LPT provide coverage on net loss reserves of $122.9 million as of the reference date in consideration for a premium of $136.5 million. The LPT includes an adjustment feature whereby we will receive a return of premium equal to the amount of all aggregate losses below $130.3 million, as determined on December 31, 2029. The provisions of the LPT include limitations on the timing of payments in relation to incurred losses, as well as limits on the extent of losses in relation to total premiums paid, which collectively do not technically qualify as a transfer of significant insurance risk for accounting purposes and therefore requires deposit accounting. At inception, we recorded a deposit asset of $130.3 million equal to the $136.5 million premium consideration paid, less the $6.2 million premium to be retained by the reinsurer (irrespective of the experience of the contract) included in "Other assets" within our consolidated balance sheets.

The overall premium is held in a trust account to secure the reinsurance counterparty's obligations under the LPT. The funds withheld are credited with interest at a fixed annual rate that inures to the benefit of the reinsurer. The corresponding gross liability is reported within Funds held under reinsurance.

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For the year ended December 31, 2024, we reduced the deposit assets by $47.4 million attributed to actual recoveries. The deposit asset reported as of December 31, 2024, is comprised of expected recoveries of $82.9 million, net of accretion, calculated using the interest method.

*<u>Commutation</u>*: In December 2023, we completed a commutation agreement that amended two whole account quota share reinsurance agreements that covered policies written from July 2020 to June 2022. A gain of $4.8 million was recognized on the commutation agreement, representing the excess of the total consideration of $83.6 million net of total liabilities reassumed of $78.8 million. The gain is included in Losses and loss adjustment expenses within our 2023 consolidated statement of operations.

*<u>Endorsements of existing quota share agreements</u>*: In November 2023, the Company and certain of our reinsurance counterparties agreed to endorsements of our quota share agreements covering treaty years of 2020 and 2021, which increased the contractual limits placed on their share of written premium and resulted in an increase in ceded written premiums of $27.8 million for the year ended December 31, 2023.

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Reinsurance recoverables on unpaid losses and LAE | $1069.5 | $605.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | 281.4 | 162.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 82.9 | 130.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commutation consideration receivable |  | 81.3 |
|  **Total other reinsurance recoverables** | **364.3** | **374.5** |
|  **Reinsurance recoverables** | $**1433.8** | $**980.0** |

---

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. We evaluate the financial condition of our reinsurers and monitor concentration of credit risk arising from our exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, we have received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of December 31, 2024, 59% were with reinsurers having an A.M. Best rating of A- (excellent) or better. We require reinsurance recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables.

As of December 31, 2024 and 2023, all reinsurance recoverables with non-rated reinsurers were over collateralized and, accordingly, required no credit valuation allowance. The credit valuation allowance associated with reinsurance recoverables with reinsurers having an A.M. Best rating of A- or better was $0.4 million and $0.3 million as of December 31, 2024 and 2023, respectively.

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**9. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by Accelerant:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $53.0 | $26.6 | $15.0 |
|  Direct commissions and other acquisition costs on retained business | 89.5 | 75.6 | 46.6 |
|  Amortization of deferred acquisition costs | (81.4) | (49.9) | (35.0) |
|  Foreign currency translation | (0.4) | 0.7 |  |
|  **Balance as of December 31,** | $**60.7** | $**53.0** | $**26.6** |

---

The following table presents the amounts of ceding commissions deferred and amortized:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $120.4 | $84.5 | $30.2 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 318.7 | 202.7 | 98.6 |
|  Amortization of deferred excess ceding commissions to income | (249.5) | (164.2) | (44.3) |
|  Foreign currency translation | 3.4 | (2.6) |  |
|  **Balance as of December 31,** | $**193.0** | $**120.4** | $**84.5** |

---

As disclosed in Note 2, we cede a significant portion of our premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

Certain of our reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commissions will result in a change to the deferred ceding commission liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the years ended December 31, 2024, 2023 and 2022 included reductions of $15.5 million, $19.1 million and $29.0 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts.

**10. Income taxes** 

During 2024, the Company and its subsidiaries operated businesses in Bermuda, Belgium, the Cayman Islands, Canada, France, Greece, Italy, Ireland, Malta, Puerto Rico, Spain, Sweden, UK, and US. Under current law of the Cayman Islands and Bermuda, we are not subject to any corporate income taxes.

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The Company is incorporated, and is an exempted company, in the Cayman Islands. The US, UK and EU are the most significant regions contributing to the overall taxation of the Company for the years ended December 31, 2024, 2023 and 2022.

The components of income taxes attributable to operations by jurisdiction were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Income (loss) before income taxes:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $71.2 | $13.3 | $(52.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 45.9 | (17.0) | (20.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (85.1) | (40.2) | (12.1) |
|  **Income (loss) before income taxes** | $**32.0** | $**(43.9)** | $**(84.3)** |
|  **Current income tax expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $36.1 | $6.6 | $4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 13.1 | 13.2 | 12.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 0.8 | 0.1 |  |
|  **Total current income tax expense** | **50.0** | **19.9** | **17.1** |
|  **Deferred income tax (benefit) expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $(23.9) | $1.2 | $(5.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | (16.6) | (0.9) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (0.4) |  |  |
|  **Total deferred income tax (benefit) expense** | **(40.9)** | **0.3** | **(5.8)** |
|  **Income tax expense** | $**9.1** | $**20.2** | $**11.3** |

---

Our expected income tax expense (benefit) has been computed as the sum of the income (loss) before income taxes in each jurisdiction, multiplied by the jurisdiction's applicable statutory tax rate. The applicable statutory tax rates by jurisdiction were as follows: Bermuda (0.0%), Belgium (25.0%), the Cayman Islands (0.0%), Canada (26.5%), France (25.0%), Greece (22.0%), Italy (27.9%), Ireland (12.5%), Malta (35.0%), Puerto Rico (4.0%), Spain (25.0%), Sweden (20.6%), UK (25.0%), and US (21.0%).

Our actual income tax expense (benefit) differs from each jurisdiction's statutory tax rate applied to the applicable income (loss) before income taxes in each jurisdiction due to the tax effects of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** |
| ***(in millions)*** | **Income<br>before**<br>**income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** |
|  Income tax expense computed at statutory tax rate applied to the subcomponents of income (loss) by jurisdiction | $32 | $24 | $(43.9) | $(0.1) | $(84.3) | $(16.1) |
|  Tax effects of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance |  | (9.7) |  | 16.4 |  | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision to return adjustment |  | (2.0) |  | (0.7) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible expenses |  | 1.9 |  | 2.2 |  | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-taxable income |  | (2.6) |  | (0.8) |  | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US state income taxes |  | 1.5 |  | 1.6 |  | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in entity tax status |  | (5.2) |  |  |  | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable gain on intercompany transfer |  | 1 |  | 2.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 0.2 |  | (0.7) |  | 0.2 |
|  **Total** | $**32.0** | $**9.1** | $**(43.9)** | $**20.2** | $**(84.3)** | $**11.3** |

---

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The relationship of our income tax expense to our pre-tax income (loss) can be atypical because our taxable income has predominately been generated in the US, UK and Ireland, resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities"). Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other countries with cumulative operating losses, however, in each case a valuation allowance has been recorded against the corresponding deferred tax assets in those jurisdictions (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

The composition of our effective tax rates among our tax-paying and non-tax paying entities that demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2024** | **2023** | **2023** | **2023** | **2022** | **2022** | **2022** |
| ***(in millions)*** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $142.3 | $(110.3) | $32.0 | $90.3 | $(134.2) | $(43.9) | $47.9 | $(132.2) | $(84.3) |
|  Income tax expense | (9.1) |  | (9.1) | (20.2) |  | (20.2) | (11.3) |  | (11.3) |
|  **Effective tax rate** | **6.4%** | **—** | **28.4%** | **22.4%** | **—** | **(46.0)%** | **23.6%** | **—** | **(13.4)%** |

---

***Deferred taxes***

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our ability to realize deferred tax assets depends on our ability to generate sufficient taxable income of the same character, within the carryback and carryforward periods permitted within each tax jurisdiction. In assessing future taxable income, we considered all sources of taxable income available to realize our deferred assets, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carry back years and prudent and feasible tax-planning strategies.

We concluded that a valuation allowance of $45.4 million is required as of December 31, 2024. For territories where no valuation allowance is required as of December 31, 2024, we are of the opinion that it is more-likely-than-not that sufficient taxable income will be earned for which the deferred tax assets can be utilized.

During the third quarter of 2024, a tax benefit of $14.6 million was recorded to reflect the adjustment of certain valuation allowances in the UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group, as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations. As noted in the rate reconciliation above, this benefit was offset by $4.9 million of additional valuation allowances, resulting in a net $9.7 million tax benefit recorded during 2024. The additional valuation allowances were primarily related to operating losses and net deferred tax assets in jurisdictions that we are unable to recognize benefits from due to a history of recurring losses.

If changes occur in the assumptions underlying our tax planning strategies or in the scheduling of the reversal of our deferred tax liabilities, the valuation allowance may need to be adjusted in the future.

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The net deferred tax asset comprises the tax effects of temporary differences related to the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Deferred tax assets:** |  |  |
|  Net operating loss | $32.9 | $29.8 |
|  Deferred ceding commission | 49.2 | 21.7 |
|  Unearned premiums | 2.6 | 2.5 |
|  Accrued compensation | 2.0 | 1.3 |
|  Intangible assets | 4.4 | 0.4 |
|  Outside basis difference in partnership investments | 7.4 |  |
|  Other | 4.3 | 3.5 |
|  Deferred tax assets before valuation allowance | 102.8 | 59.2 |
|  Valuation allowance | (45.4) | (46.5) |
|  **Deferred tax assets net of valuation allowance** | **57.4** | **12.7** |
|  **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | (7.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | (2.3) |
|  **Total deferred tax liabilities** | **(7.2)** | $**(2.3)** |
|  **Net deferred tax assets** | $**50.2** | $**10.4** |

---

The amount and timing of realizing the benefits of our net operating loss carryforwards depend on future taxable income and limitations imposed by tax laws. As of December 31, 2024, our net operating loss carryforwards were as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2024** | **Deferred tax assets on<br>net operating loss** |
|  **Net operating loss carryforwards by jurisdiction:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Belgium <sup>(1)</sup> | $107.8 | $27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | 9.2 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Malta <sup>(1)</sup> | 4.2 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK | 7.7 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All other | 2.4 | 0.6 |
|  **Total deferred tax asset on net operating losses** |  | $**32.9** |

---

<sup>(1)</sup> Jurisdictions where the net operating loss has a full valuation allowance.

We did not incur any interest and penalties related to uncertain tax positions for the years ended December 31, 2024, 2023 and 2022. We did not have any accruals for uncertain tax positions nor any unrecognized uncertain tax benefits as of December 31, 2024.

The Company and its subsidiaries file income tax returns in their respective jurisdictions. We are not currently under audit for income taxes in any jurisdiction. The statute of limitations remains open in various jurisdictions from 2019 and forward.

For the year ended December 31, 2024, we consider our earnings within each jurisdiction to be indefinitely reinvested, and as such, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax.

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Should the subsidiaries distribute current or accumulated earnings and profits in the form of dividends or otherwise, we may be subject to withholding taxes in certain jurisdictions. The cumulative amount that would be subject to withholding tax, if distributed, is not practicable to compute.

Under the Organization for Economic Co-operation and Development (OECD) / G20 Inclusive Framework, 140 countries agreed to enact a two-pillar solution to address the digitalization of the economy. The OECD's Pillar Two Model Rules introduce global changes to the international tax framework. Large multinational businesses with greater than €750 million total revenue are required to pay a minimum effective tax rate under Pillar Two of 15% on income arising in each jurisdiction where they operate. The proposed rules took effect for tax years beginning on January 1, 2024 in many jurisdictions. We are subject to these rules given our gross earned premiums are more than €750 million and the minimum tax is treated as a period cost. The Pillar Two minimum tax expense for the current year ended December 31, 2024 was $0.7 million.

**11. Goodwill, other intangible assets and capitalized technology development costs** 

***Goodwill***

We have assigned goodwill to our reporting units for impairment testing purposes. As of December 31, 2024, we have two reporting units with goodwill - Owned Members within the MGA Operations segment and Underwriting (whereby the operating unit for impairment testing was at the operating segment level).

A roll forward of goodwill by reportable segment as of and for the years ended December 31, 2024, 2023 and 2022 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **Underwriting** | **MGA Operations** | **Total** |
|  **Balance as of January 1, 2022** | $**1.4** | $**11.2** | $**12.6** |
|  Acquisition of business <sup>(1)</sup> |  | 8.7 | 8.7 |
|  Measurement period adjustments | (0.9) |  | (0.9) |
|  Foreign currency translation | (0.2) | (1.9) | (2.1) |
|  **Balance as of December 31, 2022** | $**0.3** | $**18.0** | $**18.3** |
|  Acquisition of business <sup>(1)</sup> | 1.2 | 0.8 | 2.0 |
|  Foreign currency translation |  | 0.4 | 0.4 |
|  **Balance as of December 31, 2023** | $**1.5** | $**19.2** | $**20.7** |
|  Acquisition of business <sup>(1)</sup> |  | 10.8 | 10.8 |
|  Foreign currency translation | (0.1) | (0.5) | (0.6) |
|  **Balance as of December 31, 2024** | $**1.4** | $**29.5** | $**30.9** |

---

<sup>(1)</sup> Refer to Note 17 for additional information pertaining to business combinations and related goodwill determination.

We performed a qualitative assessment of its goodwill for impairment as of the years ended December 31, 2024, 2023 and 2022 and in each case we determined that it was more likely than not that the estimated fair value of the reporting units with goodwill exceed their respective carrying values.

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***Other intangible assets***

Our other intangible assets, acquired in connection with its business combination activities, accumulated amortization and their carrying amounts were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $29.6 | $(8.9) | $20.7 |
|  Licenses and other | 13.0 | (0.6) | 12.4 |
|  **Total** | $**42.6** | $**(9.5)** | $**33.1** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $24.9 | $(6.4) | $18.5 |
|  Licenses and other | 12.7 | (0.4) | 12.3 |
|  **Total** | $**37.6** | $**(6.8)** | $**30.8** |

---

Included in the gross carrying amounts of Licenses and other was $11.0 million of indefinite-lived licenses as of December 31, 2024 and 2023. We performed a qualitative assessment for impairment and the useful lives of its indefinite and finite lived intangible assets, as applicable, and we determined there were no impairments or need to change the useful lives of the finite lived intangibles assets as of December 31, 2024 and 2023.

***Capitalized technology development costs***

Our capitalized technology development costs, accumulated amortization and their carrying amounts are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $117.1 | $(33.5) | $83.6 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $84.1 | $(15.0) | $69.1 |

---

There was no change in estimated useful lives of other intangible assets and capitalized technology development costs for the years ended December 31, 2024, 2023 and 2022. The weighted-average remaining useful life is 7.4 years for customer relationships and 3.7 years for capitalized technology development costs. For the year ended December 31, 2024, we recorded an impairment of $3.5 million of capitalized technology development costs, which is included in the "Depreciation and amortization" in our consolidated statements of operations. There was no impairment of other intangible assets and capitalized technology development costs for the year ended December 31, 2023. Depreciation and amortization presented in our consolidated statements of operations were $26.6 million, $14.5 million and $5.8 million for the years ended December 31, 2024, 2023 and 2022, respectively, the majority of which represents amortization expenses of other intangible assets and capitalized technology development costs.

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As of December 31, 2024, estimated amortization expenses of other intangible assets and capitalized technology development costs to be recognized by the Company over the next five years are as follows:

---

| | |
|:---|:---|
|  | **Estimated<br>amortization<br>expenses** |
| **Years Ended December 31,** | ***(in millions)*** |
| 2025 | $26.8 |
| 2026 | 27.0 |
| 2027 | 25.1 |
| 2028 | 13.6 |
| 2029 | 6.4 |

---

**12. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Prefunded claim settlement accounts <sup>(1)</sup> | $58.6 | $66.0 |
|  Net deferred tax assets (refer to Note 10) <sup>(2)</sup> | 51.6 | 10.4 |
|  Commission income receivable | 28.3 | 17.4 |
|  Funds withheld by reinsurers | 18.2 | 20.0 |
|  Deferred offering costs <sup>(3)</sup> | 16.0 | 12.4 |
|  Prepaid expenses | 11.8 | 4.2 |
|  Related party receivables (refer to Note 18) | 7.6 | 7.1 |
|  Prepaid retrocession premium (refer to Note 8) | 5.3 | 6.2 |
|  Other | 24.3 | 12.3 |
|  **Total** | $**221.7** | $**156.0** |

---

<sup>(1)</sup> This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis. 

<sup>(2)</sup> Total net deferred tax assets presented in Note 10 are $50.2 million. However, net deferred tax assets may not be offset with net deferred tax liabilities from different tax jurisdictions. As of December 31, 2024, one of our tax jurisdictions had $1.4 million of net deferred tax liabilities, which is included in "Accounts payable and other liabilities" in our consolidated balance sheets. All other jurisdictions had aggregate net deferred tax assets of $51.6 million. 

<sup>(3)</sup> As of the date of completion of these financial statements, the Company is preparing for its planned initial public offering. In the event that the Company postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

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**13. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $772.5 | $415.4 | $182.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Reinsurance recoverables, beginning of year | 605.5 | 333.4 | 144.3 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **167.0** | **82.0** | **37.7** |
|  Acquired reserves from business combinations |  | 6.1 |  |
|  Reserves reassumed under commutation agreement <sup>(1)</sup> |  | 74.7 |  |
|  Incurred losses and LAE related to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 152.2 | 75.4 | 94.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 15.1 | 4.9 | 4.8 |
|  **Total incurred losses and LAE** | **167.3** | **80.3** | **99.5** |
|  Paid losses and LAE: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (28.8) | (32.2) | (32.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (76.8) | (49.0) | (20.6) |
|  **Total paid losses and LAE** | **(105.6)** | **(81.2)** | **(53.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange adjustments | (3.8) | 5.1 | (1.9) |
|  **Net reserve for unpaid losses and LAE, end of year** | **224.9** | **167.0** | **82.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE, end of year | 1069.5 | 605.5 | 333.4 |
|  **Gross reserve for unpaid losses and LAE, end of year** | $**1294.4** | $**772.5** | $**415.4** |

---

<sup>(1)</sup> Amount is presented net of a $4.1 million settlement of net receivables from the counterparty upon commutation. 

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

The increase in incurred losses and LAE ("adverse development") attributable to prior accident years of $15.1 million for the year ended December 31, 2024 primarily related to the EU and UK general liability and property portfolio for Members that we have either discontinued or subject to significant responsive underwriting actions.

Adverse development attributable to prior accident years of $4.9 million for the year ended December 31, 2023 was primarily driven by $2.8 million of adverse development on certain UK legacy discontinued business, including from a previous acquisition, in addition to $2.1 million related to US commercial auto reserves.

Adverse development attributable to prior accident years of $4.8 million incurred during the year ended December 31, 2022 primarily related to adverse development associated with one large MGA with UK commercial property and liability exposures. Such losses do not include the impacts of negative sliding scale commission adjustments resulting from increased loss estimates that we recognize as a component of ceding commission income. For further information, refer to Note 9.

***Lines of business***

Due to the nature of business written and the distribution channels used by Accelerant, (i.e., specialist and tailor-made products sold via MGAs), we perform day-to-day monitoring and oversight of the performance at the

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individual MGA level, with splits into lines of business or products where appropriate. This granular and detailed analysis and monitoring is designed to provide appropriate oversight over the delegated business and timely detection of any trends. We analyze the performance within three main lines of business, namely Property, Liability and Other.

Property losses are generally reported, settled and paid within a short period of time from the date of loss. However, property can be impacted by catastrophe losses which can be more complex than non-catastrophe property claims due to factors such as difficulty accessing impacted areas and other physical, legal and regulatory impediments, potentially extending the period it takes to settle and pay claims.

Our Liability insurance products generally cover exposures where most claims are reported without a significant time lag. However, since facts and information are frequently not complete at the time claims are reported to us, and because protracted litigation is sometimes involved, it can be several years before the ultimate value of these claims is determined.

Our Other category primarily encompasses motor, marine and surety business. We perform this aggregation solely for reporting purposes considering the materiality of these sub-segments.

***Foreign currency***

We translate the loss development for operations outside of the US for all accident years using the constant currency exchange rates as of December 31, 2024. Although this approach requires adjusting all prior accident year information for use in the tables, the changes in exchange rates do not impact incurred and paid loss development trends.

The following is information about incurred and paid losses development as of December 31, 2024, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities included within the net incurred loss amounts.

***Incurred loss and allocated loss adjustment expense ("ALAE"), net of reinsurance***

The following tables represent our incurred loss and ALAE, net of reinsurance, less cumulative paid claims and ALAE by business line as of December 31, 2024, net of reinsurance, as well as cumulative claims frequency and the total IBNR liabilities plus expected development on reported claims included within the net incurred claims amount. We have adjusted these tables for accident years 2019 through 2022 to present the retrospective effects of the commutation reinsurance transaction described in Note 8.

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***Property***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | | |
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| 2019 | $1.1 | $1.3 | $1.3 | $1.2 | $1.4 | $1.4 | $— | 3529 |
| 2020 |  | 17.7 | 19.0 | 17.5 | 23.2 | 22.7 |  | 12319 |
| 2021 |  |  | 10.9 | 14.6 | 23.7 | 23.4 |  | 12906 |
| 2022 |  |  |  | 59.0 | 77.8 | 85.6 | 0.1 | 17776 |
| 2023 |  |  |  |  | 45.7 | 41.3 | 1.3 | 16572 |
| 2024 |  |  |  |  |  | 71.1 | 34.8 | 15662 |
|  |  |  |  |  | **Total** | $**245.5** |  |  |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** |
| 2019 | $— | $0.3 | $0.3 | $0.5 | $0.8 | $1.4 |
| 2020 |  | 1.7 | 11.7 | 15.4 | 18.8 | 22.5 |
| 2021 |  |  | 1.7 | 13.3 | 17.6 | 22.9 |
| 2022 |  |  |  | 28.3 | 47.9 | 83.0 |
| 2023 |  |  |  |  | 29.2 | 36.8 |
| 2024 |  |  |  |  |  | 17.6 |
|  |  |  |  |  | **Total** | $**184.2** |
|  **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | $**61.3** |

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***Liability***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | | |
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| 2019 | $0.4 | $0.4 | $0.4 | $0.4 | $1.3 | $1.5 | $— | 2001 |
| 2020 |  | 6.4 | 7.3 | 7.1 | 9.8 | 12.7 | 0.6 | 2522 |
| 2021 |  |  | 9.5 | 10.8 | 15.5 | 19.4 | 2.0 | 5061 |
| 2022 |  |  |  | 29.8 | 46.5 | 51.2 | 12.7 | 8142 |
| 2023 |  |  |  |  | 25.0 | 22.4 | 9.4 | 9339 |
| 2024 |  |  |  |  |  | 47.2 | 28.8 | 8913 |
|  |  |  |  |  | **Total** | $**154.4** |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of<br>reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019<br>(unaudited)** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** |
| 2019 | $— | $0.1 | $0.1 | $0.2 | $1.2 | $1.2 |
| 2020 |  | 0.5 | 4.2 | 5.4 | 7.4 | 7.6 |
| 2021 |  |  | 0.6 | 1.9 | 4.0 | 5.4 |
| 2022 |  |  |  | 2.6 | 10.7 | 11.3 |
| 2023 |  |  |  |  | 1.7 | 3.4 |
| 2024 |  |  |  |  |  | 4.0 |
|  |  |  |  |  | **Total** | $**32.9** |
|  **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | $**121.5** |

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***Other***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | ***(in millions, except for number of claims)*** | | |
|  | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **Incurred claims and claims adjustment expenses, net of<br>reinsurance** | **December 31, 2024** | **December 31, 2024** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| **Accident year** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** | **IBNR plus<br>expected<br>development<br>on reported<br>claims** | **Cumulative<br>number of<br>reported<br>claims** |
| 2020 | $0.2 | $0.2 | $0.2 | $0.9 | $0.8 | $— | 4306 |
| 2021 |  | 7.0 | 9.4 | 18.3 | 18.5 | 1.3 | 9276 |
| 2022 |  |  | 5.8 | 21.9 | 21.0 | 2.2 | 20383 |
| 2023 |  |  |  | 9.2 | 9.9 | 2.8 | 30937 |
| 2024 |  |  |  |  | 31.9 | 16.4 | 33774 |
|  |  |  |  | **Total** | $**82.1** |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** | **Cumulative paid claims and allocated claims adjustment<br>expenses, net of reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2020<br>(unaudited)** | **2021<br>(unaudited)** | **2022<br>(unaudited)** | **2023<br>(unaudited)** | **2024** |
| 2020 | $— | $0.1 | $0.1 | $0.4 | $0.8 |
| 2021 |  | 2.9 | 5.6 | 11.1 | 15.7 |
| 2022 |  |  | 2.1 | 4.3 | 16.4 |
| 2023 |  |  |  | 1.4 | 4.9 |
| 2024 |  |  |  |  | 7.1 |
|  |  |  |  | **Total** | $**44.9** |
|  **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | **Unpaid losses and ALAE, net of reinsurance** | $**37.2** |

---

The reconciliation of our net incurred and paid development tables to the liability for unpaid losses and LAE in our consolidated balance sheets is as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2024** |
|  **Net outstanding liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | $61.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 121.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 37.2 |
|  **Liabilities for unpaid losses and ALAE, net of reinsurance** | **220.0** |
|  **Reinsurance recoverables on unpaid claims** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | 295.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 592.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 181.4 |
|  **Total reinsurance recoverables on unpaid losses and LAE** | **1069.5** |
|  **Unallocated LAE** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 3.0 |
|  **Total unallocated LAE** | **4.9** |
|  **Total unpaid losses and LAE** | $**1294.4** |

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***Claims duration***

The following table presents the historical average annual percentage payout, net of reinsurance on an accident year basis at the same level of disaggregation as presented in the claims development tables above. Given we established operations in 2019, the typical full payout pattern to 100% is not yet available.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses<br>and ALAE, net of reinsurance as of December 31, 2024<br>(unaudited) <sup>(1)</sup>** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** |
|  Property | 15% | 20% | 12% | 12% | 10% | 30% |
|  Liability | 6% | 17% | 7% | 12% | 45% | 3% |
|  Other | 8% | 10% | 18% | 21% | 24% |  |

---

<sup>(1)</sup> Average annual percentage payout is calculated using a paid loss and ALAE development pattern based on an actuarial analysis of the paid loss and ALAE movements by accident year for each disaggregation category. Our average annual percentage payouts shown have been scaled to align with historical expected total payment development after 6 years. 

**14. Debt** 

We had the following senior unsecured debt outstanding as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Senior unsecured debt | $125.0 | $123.3 |
|  Less: unamortized debt issuance costs | (3.6) | (3.0) |
|  **Senior unsecured debt** | $**121.4** | $**120.3** |

---

The following table presents estimated future repayments of long-term debt as of December 31, 2024, excluding the debt issuance costs which will be amortized over the remaining term:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
| ***(in millions)*** | **Total** | **2025** | **2026** | **2027** | **2028** | **2029** |
|  **Senior unsecured debt** | $125.0 | $0.8 | $3.1 | $5.9 | $5.7 | $109.5 |

---

During the third quarter of 2024, we amended our syndicated loan agreement related to our senior unsecured debt facility including Euro and US dollar denominated components with an original May 2026 maturity date (the "senior notes").

Under the terms of the amended credit agreement, we refinanced the syndicated loan facility by extending the maturity date of the senior notes to September 2029 and borrowing $51.5 million to repay the Euro component, such that the aggregate outstanding principal balance of the senior notes remained $125 million under a new single US dollar denominated facility. In addition, the credit agreement was amended to add a $50 million revolving credit facility (all of which was unutilized and available as of December 31, 2024).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows us to withdraw predefined amounts of the approved total US Dollar aggregate principal amount. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the

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applicable interest rate has been reset. The interest rate is subject to a sliding scale based on our consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the years ended December 31, 2024, 2023 and 2022 was $12.1 million, $10.9 million and $4.2 million, respectively.

Subject to conditions of optional prepayment, we may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts we prepay may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of December 31, 2024, we were in compliance with all such covenants.

**15. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Premium tax payables | $53.7 | $36.0 |
|  Deposit liabilities <sup>(1)</sup> | 43.9 |  |
|  Commission refund liabilities | 38.8 | 29.8 |
|  Trade payables | 13.8 | 9.5 |
|  Accrued expenses and other | 48.0 | 55.6 |
|  **Total** | $**198.2** | $**130.9** |

---

<sup>(1)</sup> During the third quarter of 2024, we assumed loss and loss adjustment expense reserves in a novation transaction with an unaffiliated insurer who additionally provided coverage for adverse development on the novated loss reserves. We accounted for the arrangement using deposit accounting because the contract did not transfer significant insurance risk. 

**16. Equity** 

***Common shares:***

As of December 31, 2024 and 2023, there are 252,652,430 and 243,237,830 shares authorized, respectively, with a par value of $0.000001 per share. As of December 31, 2024 and 2023, there were 166,185,094 and 165,604,641 shares, respectively, issued and outstanding.

The Company's common shares confer upon its holders the following rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right to participate and vote in the Company's general meetings, whether regular or extraordinary. Each
share entitles its holder, when attending and participating in the voting in person or via agent or letter, to one vote;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right to share in the distribution of dividends, whether in cash or in the form of bonus share, the
distribution of assets or any other distribution pro-rata to the par value of the shares held by them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right to share in the distribution of the Company's excess assets upon liquidation pro-rata to the par value of the shares held by them.

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***Preference shares:***

Convertible preference shares authorized, issued and outstanding as of December 31, 2024 consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 20,955,646 Class A shares authorized, 20,955,497 issued and outstanding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 12,569,841 Class B shares authorized, 12,569,691 issued and outstanding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 5,563,987 Class C shares authorized, 5,556,546 issued and outstanding

Convertible preference shares authorized, issued and outstanding at December 31, 2023 consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 20,882,353 Class A shares authorized, 20,882,303 issued and outstanding

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 12,525,914 Class B shares authorized, 12,525,788 issued and outstanding

<u>Class</u> <u>C preference share issuance in 2024</u>: In 2024, we issued 4,460,196 Class C convertible preference shares to third-party investors for $100.5 million of gross proceeds, 909,791 Class C convertible preference shares to the owners of the immediate parent entity for $20.5 million of gross proceeds, and 186,558 Class C convertible preference shares to certain executives of the Company for $4.2 million gross proceeds. There was a total of 5,556,545 Class C preference shares issued and total net proceeds of $114.5 million, after giving effect to $10.7 million in issuance costs.

<u>Common share, Class</u> <u>A preference share and Class</u> <u>B preference share issuance in 2024</u>: As referenced in Note 6, there were 580,454 common shares, 73,194 Class A preference shares and 43,904 Class B preference shares issued in connection with our acquisition of the equity interests in Mission.

<u>Class</u> <u>B preference share issuance in 2023</u>: In February 2023, we issued 56,961 Class B convertible preference shares to third-party investors for $0.7 million gross proceeds and 18,635 Class B convertible preference shares to certain executives of the Company for $0.2 million gross proceeds. The total capital raised in 2023 was $0.7 million, net of $0.2 million in issuance costs.

<u>Class</u> <u>B preference share issuance in 2022</u>: In 2022, we issued 7,459,477 Class B convertible preference shares to third-party investors for $90.0 million of gross proceeds as well as 4,990,715 Class B convertible preference shares to the owners of the immediate parent entity for $60.2 million of gross proceeds.

<u>Class</u> <u>A preference share issuance in 2022</u>: In 2022, we issued 3,012,083 Class A convertible preference shares to third-party investors for $36.0 million in gross proceeds as well as 2,300,897 Class A convertible preference shares to the owners of the immediate parent company for $27.5 million in gross proceeds. We also issued 209,172 Class A convertible preference shares to a related party in settlement of an outstanding loan balance of $2.5 million. In addition, in 2022, 72,477 Class A convertible preference shares were issued to certain executives of the Company for $0.9 million gross proceeds.

The total capital raised in 2022 was $207.3 million, net of $9.8 million in issuance costs. Total cash proceeds from the 2022 offerings were $204.8 million (representing the $207.3 million total capital less the $2.5 million non-cash settlement of the outstanding loan balance).

The Class A and Class B preference shares are convertible to common shares upon an initial public offering of the Company, as well as in the case of other defined liquidation events. In the case of such an initial public offering or a liquidation event, all other equity holders of the Company will also participate and receive the same form of consideration. The Class A and Class B preference shares are subject to an accreted liquidation preference of 8% and 16%, respectively. The holders of the Class A and Class B preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class A and Class B preference shares have not appreciated to the sum of the initial investment and the accreted liquidation preference. In such circumstance, the Company may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

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The Class C preference shares are convertible to common shares subject to the occurrence of an initial public offering or other defined liquidation event. The Class C preference shares also include a redemption feature, which may be exercised at the holders' option, as well as contingently issuable detachable warrants to acquire additional common shares if the initial public offering or liquidation event does not occur within two years following the Class C preference shares date of issuance (the "Class C Issuance Date"). If an initial public offering or liquidation event occurs within two years following the Class C Issuance Date, the warrants will not be issued. However, if an initial public offering or liquidation event does not occur by the second anniversary of the Class C Issuance Date, holders of such shares will receive 4,880,495 detachable warrants (3,589,566 warrants with an exercise price approximating 75% of the independently determined fair value of the Company as of the Class C Issuance Date (such reference valuation, the "Issuance Date Valuation") plus 1,290,929 warrants with an exercise price approximating 150% of the Issuance Date Valuation.

If a holder of Class C preference shares elects to convert Class C preference shares to common shares, the holder will receive Class A or Class B common shares, as applicable, equivalent to the same number of the Class C preference shares subject to conversion. If a holder of the Class C preference shares elects, prior to the first anniversary of the Class C Issuance Date, to redeem such holder's shares for cash, the holder will receive 1.4 times such holder's initial investment; and if such an election is made following the first anniversary of the Class C Issuance Date, but prior to the second anniversary thereof, the holder will receive 1.5 times such holder's initial investment. After the second anniversary of the Class C Issuance Date, the value of the redemption right will change in accordance with the accreted liquidation preference rates as defined in the following paragraph.

The Class C convertible preference shares are subject to an accumulating annual accreted liquidation preference equal to the greater of 12.5% or SOFR plus 750 basis points (subject to adjustment over time and never to exceed 17.0%). The holders of the Class C preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class C preference shares has not appreciated to equal the sum of the initial investment plus the aggregate accreted liquidation preference. In such circumstance, we may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

**17. Business acquisitions** 

During the years ended December 31, 2024, 2023 and 2022, we made several acquisitions that were individually not material. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. Our purchase price allocation related to the 2024 acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. We may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). We recorded goodwill from these acquisitions, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of the acquisitions after their respective closing dates. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of the Company. The acquisition-related costs incurred for the acquisitions which occurred during the years ended December 31, 2024, 2023 and 2022 were $0.3 million, $1.2 million and $0.7 million, respectively.

***2024 Activity*:** 

The following represents a summary of the acquisitions that occurred during 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In May 2024, we closed on our acquisition of each of Mission US and Mission EU which we initiated by exercising
our options. Mission was previously a consolidated VIE given financial support and

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variable interest considerations. Because Mission was previously consolidated within our financial statements, the exercise of the call option was accounted for as an equity transaction. Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Company. For further information on the Mission acquisition, refer to Note 6. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2024, our consolidated subsidiary Ayax Acquisition Co. Ltd acquired an additional 32% of the
outstanding share capital of Ayax Specialty, S.L ("Ayax"), a Spanish MGA specializing in the insurance of surety risks, in exchange for $17.5 million of total consideration (consisting of cash of $5.6 million, our existing equity
interest of $3.3 million and the non-controlling interests of $8.6 million). The additional 32% interest increased our ownership in Ayax from 19% to 51%. Previously, we accounted for our investment in
Ayax as an equity method investment. Following the completion of the step acquisition, we gained majority ownership and control of Ayax and consolidated it. Our previously held equity interest was remeasured to fair value at the step acquisition
date. Accordingly, we recorded a revaluation gain of $2.4 million within "Net realized gains (losses) on investments" in our consolidated statements of operations.

The following table provides our preliminary purchase accounting financial information for the Ayax acquisition:

---

| | |
|:---|:---|
| ***(in millions)*** | **2024** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $5.1 |
|  Other identifiable intangible assets | 5.3 |
|  Premiums receivable | 1.1 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **12.0** |
|  **Liabilities assumed:** |  |
|  Insurance balances payable | 3.0 |
|  Accounts payable and other liabilities | 2.3 |
|  **Total liabilities assumed** | **5.3** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.7** |
|  Goodwill | 10.8 |
|  **Total acquisition consideration** | $**17.5** |

---

<sup>(1)</sup> Total net cash paid for the interest in Ayax was $0.5 million, net of cash acquired (consisting of the $5.6 million payment net of the $5.1 million cash acquired). 

***2023 Activity:***

The following represents a summary of the acquisitions that occurred during 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital Markets Underwriting Limited ("CMU"): In June 2023, our consolidated subsidiary Nationwide
Broker Services Limited acquired a 70% ownership stake in CMU for consideration of $0.9 million. CMU is a UK-based MGA and cover holder at Lloyd's (representing a company authorized to enter into
insurance contracts on behalf of a Lloyd's syndicate in accordance with the terms of a binding authority contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Omega Insurance Holdings, Inc ("Omega"): In October 2023, our consolidated subsidiary Omega Acquisition
Co Ltd. purchased all the common shares of Omega Insurance Holdings Inc. (subsequently renamed Accelerant Canada Holdings, Inc.) for consideration of $9.5 million. Accelerant Canada Holdings, Inc. owns all the common shares of Omega General
Insurance Company (subsequently renamed Accelerant Insurance Company of Canada) and Focus Group Inc (subsequently renamed Accelerant Canada Services). Our acquisition of Omega will support Accelerant's continued international expansion,
specifically into the Canadian market.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• American Eagle Underwriting Managers, LLC ("American Eagle"): In November 2023, our consolidated
subsidiary, Mission UH Holdings LLC acquired all the ownership interests of American Eagle for consideration of $2.4 million. American Eagle is a US-based MGA and cover holder at Lloyd's.

The following table provides certain financial information for these acquisitions:

---

| | |
|:---|:---|
| ***(in millions)*** | **2023** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $15.2 |
|  Investments | 6.8 |
|  Premiums receivable | 12.1 |
|  Ceded unearned premiums | 12.2 |
|  Reinsurance recoverables <sup>(1)</sup> | 11.4 |
|  Other identifiable intangible assets | 1.6 |
|  Other assets | 1 |
|  **Total assets acquired** | **60.3** |
|  **Liabilities assumed:** |  |
|  Unpaid losses and loss adjustment expenses | 16.8 |
|  Unearned premiums | 13.2 |
|  Insurance balances payable | 13.5 |
|  Accounts payable and other liabilities | 6 |
|  **Total liabilities assumed** | **49.5** |
|  **Total identifiable net assets acquired <sup>(2)</sup>** | **10.8** |
|  Goodwill | 2 |
|  **Total acquisition consideration** | $**12.8** |

---

<sup>(1)</sup> Reinsurance recoverables acquired include $10.7 million of reinsurance recoverables on unpaid losses and LAE and $0.7 million of reinsurance recoverables on paid losses and LAE. 

<sup>(2)</sup> The acquisitions of the entities resulted in net cash and cash equivalents received of $2.8 million, representing the $12.4 million cash payment for the acquisition compared to net of cash and cash equivalents acquired of $15.2 million. Total acquisition consideration consisted of the cash payment and $0.4 million of non-controlling interests. 

***2022 Activity:***

The following summarizes our acquisitions that occurred during 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2022, we acquired 77.6% of the share capital of United Brokers International Limited ("UBI")
for consideration of $10.3 million. The consideration transferred consisted of $4.4 million of cash, $4.6 million of deferred consideration and $1.3 million of non-controlling interest. UBI
is a UK and Ireland based MGA that specializes in the insurance of construction risks in France.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In March 2022, we acquired 78.1% of the share capital of *Servicios Profesionales de Suscripcion de Riesgos Iberia S.L.* ("SSR Iberia") for consideration of $4.7 million. The consideration transferred consisted of $3.7 million of cash and $1.0 million of non-controlling interest. SSR
Iberia is a Spain based MGA that specializes in the insurance of construction and real estate development risks.

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The following table provides certain financial information for these acquisitions:

---

| | |
|:---|:---|
| ***(in millions)*** | **2022** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $6.4 |
|  Other identifiable intangible assets | 4.9 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **11.8** |
|  **Liabilities assumed:** |  |
|  Commissions payable | 0.3 |
|  Accounts payable and other liabilities | 5.2 |
|  **Total liabilities assumed** | **5.5** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.3** |
|  Goodwill | 8.7 |
|  **Total acquisition consideration** | $**15.0** |

---

<sup>(1)</sup> Total cash paid for acquisitions, net of cash acquired, was $1.7 million representing the $8.1 million cash payment for the acquisition compared to cash and cash equivalents acquired of $6.4 million. Total acquisition consideration consisted of the cash payment, $4.6 million of deferred consideration and $2.3 million of non-controlling interests. 

***Purchase of additional non-controlling interests in previously consolidated entities:***

During 2023, we purchased $5.5 million of non-controlling interests related to previously consolidated entities in which an existing majority ownership and controlling interest was held. The purchase of such non-controlling interests was reflected as a reduction of the previously outstanding non-controlling interests and additional paid in capital presented within our consolidated statement of shareholders' equity and as a financing outflow within our consolidated statement of cash flows.

**18. Related party transactions** 

As of December 31, 2024 and 2023, the outstanding balance of short-term financing by the Company to Accelerant Holdings LP was $7.6 million and $7.1 million, respectively. This balance is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

As of December 31, 2024, we had accounts payable of $0.9 million to Accelerant Holdings LP, primarily related to legal costs.

For the years ended December 31, 2024, 2023 and 2022, we incurred $0.2 million, $2.8 million and $3.7 million, respectively, of advisory fees and expenses with Altamont Capital Management LLC, an affiliate.

We incurred expenses of $0.4 million during the year ended December 31, 2022 as compensation for services rendered by Jeff Radke, CEO of Accelerant, via Indica Limited, a services company of which he is the sole shareholder. Payments made to the CEO during 2022 principally consisted of a cash performance bonus accrued by the Company in connection with services rendered during 2021. The CEO became a direct employee of Accelerant in April 2022.

**19. Commitments and contingencies** 

***Litigation***

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

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Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

***Unfunded investment commitments***

As of December 31, 2024, we had unfunded commitments of $2.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**20. Employee benefits and profit interests plans** 

***Employee benefit plan***

We operate a defined contribution post-employment plan. A defined contribution plan is a benefit plan under which the Company pays fixed contributions into a separate entity. We have no legal or constructive obligations to pay further contributions if the entity, typically taking the form of a fund, does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

We pay contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The contributions are recognized as employee benefit expenses when they are due. Expenses related to the plans were $4.6 million, $2.8 million and $1.4 million for the years ended December 31, 2024, 2023 and 2022, respectively, which are included in the "General and administrative expenses" within our consolidated statements of operations.

***Cash bonus plan***

We have a deferred compensation plan that entitles every employee, subject to certain qualifying criteria, to a cash bonus equal to a multiple of such employee's salary less applicable taxes upon the occurrence of a qualifying liquidity event. The amount of the cash bonus for an eligible employee will be dependent upon the valuation of the Company if the qualifying liquidity event occurs and is subject to adjustment if an employee's length of service is less than two years. All payments will be determined at the discretion of the Company's Board of Directors. Any future liability recognized for this plan will be recognized at fair value at the date of initial recognition and then subsequently updated at each reporting period. Such amount will be material to our operating results in any future period.

We did not recognize any compensation cost for the cash bonus plan during the years ended December 31, 2024, 2023 and 2022 as the cash bonus payments were not probable.

***Profits interest awards***

Accelerant Holdings LP and Mission have issued profits interest awards to certain officers and employees of the Company in the form of partnership shares and incentive units. The awards require achievement of certain return thresholds and continuous service for the officers and employees to receive distributions. The awards do not represent an equity interest for accounting purposes in the Company, the Company's parent, or its subsidiaries. These units are accounted for as deferred compensation and compensation cost is measured according to the value of expected benefits as of each reporting date. Profits interest awards are subject to vesting over a continuous service period and forfeiture upon a recipient voluntarily resigning, in the normal course of business, regardless of such employee's length of service or vested units. Since the awards are subject to forfeiture upon termination for no value, the awards represent a deferred compensation liability rather than equity classified stock compensation. Compensation cost will be recorded to the extent payment is reasonably estimable and probable, as well as considering service requirements. Any future liability recognized for these awards will be recognized at the fair value of the awards at the date of initial recognition and then subsequently updated at each reporting period. Such amounts will be material to the Company's operating results in any future period.

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We recognized $7.0 million of compensation expenses during the year ended December 31, 2024 attributable to the Mission profits interest awards as certain return thresholds and continuous services requirements were met for specific components of the business. There were no Mission profits interest awards compensation expenses for the years ended December 31, 2023 and 2022.

We did not recognize any compensation cost for the Accelerant Holdings LP profits interest awards during the years ended December 31, 2024, 2023 and 2022 as the distributions were not probable.

***Potential distribution of common shares of the Company in the event of an initial public offering***

In the event of an initial public offering of the Company, Accelerant Holdings LP intends to distribute common shares of the Company that are currently held by Accelerant Holdings LP to the holders of existing profits interests awards in Accelerant Holdings LP in proportion to the economic interests represented by those profits interest awards. The distribution of common shares would be made upon the consummation of an initial public offering to holders of vested profits interest awards of Accelerant Holdings LP, and of restricted common shares of the Company to holders of unvested profits interest awards. After making such distribution, Accelerant Holdings LP will be liquidated and dissolved. The number of common shares of the Company that holders of profits interests awards of Accelerant Holdings LP will receive upon the completion of the distribution will be dependent upon the implied market value of the Company at the time of the initial public offering. The Company would then recognize compensation expense at such time for the value of the new unrestricted common shares of the Company distributed to holders of vested profits interest awards of Accelerant Holdings LP, and in each subsequent reporting period for the value of the restricted common shares of the Company that vest and become unrestricted during each such reporting period. The compensation expense will be material to our income in future periods.

**21. Share-based compensation** 

***Share options granted to employees***

During 2024, we granted 6,501,246 options to certain of our employees (which followed the grants during 2023 of 8,681,158 stock option awards, net of forfeitures) under our employee share incentive plan. The contractual term of the option awards is ten years from the grant date. The vesting terms of the option awards varied based on the date of the respective employee's date of service commencement such that a portion of the awards was typically vested as of the grant date. The vesting periods per each of the awards varied from two to four years (with either quarterly or annual partial vesting periods over those two to four year full vesting periods).

The fair value of each share option award granted was estimated on the date of grant using the following option pricing model assumptions:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Weighted average expected term (years) | 1.2 - 10.0 | 0.5 - 10.0 |
|  Risk-free interest rate | 3.82% - 4.87% | 4.14% - 5.40% |
|  Expected volatility | 31% - 38% | 32% - 37% |
|  Expected dividend yield | 0% | 0% |

---

Based on application of the Hull-White valuation method (widely used in the determination of option fair value), we estimate the expected term of the share options granted, assuming that employees exercise their options, on average, when the stock price over strike price reaches a threshold of 2.20. The risk-free interest rate is based on observed interest rates appropriate for the term of our stock options. Expected volatility is based on companies at a comparable stage, as well as companies in the same or similar industry. The dividend yield assumption is based on the Company's historical and expected future dividend payouts and may be subject to change in the future.

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The following table summarizes the activity related to share option awards for the year ended December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term (Years)** | **Aggregate<br>Intrinsic<br>Value** | **Aggregate<br>Fair Value** |
|  Outstanding as of December 31, 2023 | 8681158 | $19.30 | 8.7 | $— | $1.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 6501246 | 19.30 | 9.5 |  | 4.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercise |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (165832) | 19.30 |  |  |  |
|  **Outstanding as of December 31, 2024** | **15016572** | $**19.30** | **9.1** | $**—** | $**2.84** |
|  Options exercisable as of December 31, 2024 | 5572061 | $19.30 | 8.8 | $— | $1.96 |
|  Options unvested as of December 31, 2024 | 9444511 | $19.30 | 9.2 | $— | $3.33 |

---

For the years ended December 31, 2024 and 2023, share-based compensation expense from share option awards granted was $8.4 million and $4.8 million, respectively, which is included in "Other expenses" in our consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of December 31, 2024 and 2023 was $29.6 million and $9.6 million, respectively. The weighted average remaining requisite service period as of December 31, 2024 is 1.6 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**22. Earnings per share** 

The following table sets forth the computation of basic and diluted net earnings per common share:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions, except share data)*** | **2024** | **2023** | **2022** |
|  **Numerator:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to Accelerant common shareholders | $27.2 | $(48.8) | $(91.7) |
|  **Denominator:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - basic | 165982094 | 165604641 | 165604641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive common shares | 33681600 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - diluted | 199663694 | 165604641 | 165604641 |
|  **Net income (loss) attributable to Accelerant per common share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.16 | $(0.29) | $(0.55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.14 | $(0.29) | $(0.55) |

---

During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted income (loss) per common share computation as the effect of including potentially dilutive securities would be anti-dilutive. For the years ended December 31, 2024 and 2023, all share option awards granted to employees would have an anti-dilutive effect on net income (loss) per share under the treasury stock method, as the average estimated common share price is less than the corresponding option exercise price. For the years

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ended December 31, 2023 and 2022, all the Company's preference stock, consisting of the Class A and Class B convertible preference shares, were excluded from the computation of diluted net loss per share as the effect would have been anti-dilutive.

We excluded the following potential common shares outstanding as of each period end from the computation of diluted net loss per share attributable to Accelerant per common share as the effect would have been anti-dilutive:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2023** | **2022** |
|  **Convertible preference shares issued and outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A |  | 20882303 | 20882304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B |  | 12525788 | 12450192 |
|  **Share options granted and outstanding** | 15016572 | 8681158 |  |
|  **Total** | **15016572** | **42089249** | **33332496** |

---

In the event of an initial public offering, Accelerant Holdings LP intends to distribute common shares of the Company that are currently held by Accelerant Holdings LP to the holders of existing profits interest awards of Accelerant Holdings LP. The quantity of common shares that may be distributed is currently indeterminable as the amount holders will receive will be dependent upon the implied market value of the Company at the time of the initial public offering.

**23. Dividend restrictions and statutory financial information** 

Subject to the Cayman Islands Companies Act, the Articles of the Company, and except for rights attaching to the shares by contract, the directors may resolve to pay dividends and other distributions on shares in issue and authorize payment of the dividends or other distributions out of the funds of the Company lawfully available. No dividend or other distribution shall be paid except out of the realized or unrealized profits of the Company or as otherwise permitted by law.

The Articles of the Company establish mechanisms and the order of priority for the payment of dividends but, generally, dividends shall be paid pro rata among the Class A Convertible Preference Shareholders, the Class B Convertible Preference Shareholders, the Class C Redeemable Preference Shareholders and the Common Shareholders, participating equally on an as-converted basis in accordance with the applicable conversion rate.

Our subsidiaries are subject to certain regulatory restrictions on the distribution of capital and payment of dividends in the jurisdictions in which they operate, as described below. The restrictions are generally based on net income or levels of capital and surplus as determined in accordance with the relevant statutory accounting principles. Failure of these subsidiaries to comply with their applicable regulatory requirements could result in restrictions on any distributions of capital or retained earnings or stricter regulatory oversight of the subsidiaries.

Our ability to pay dividends and make other forms of distributions may also be limited by repayment obligations and financial covenants in our outstanding loan facility agreements. During the years ended December 31, 2024, 2023 and 2022, no dividends were declared or paid by the Company to its shareholders. Certain subsidiaries of the Company paid dividends of $3.5 million, $2.9 million and $1.8 million to non-controlling interests during the years ended December 31, 2024, 2023 and 2022, respectively.

**Subsidiary statutory financial information and dividend restrictions** 

Our (re)insurance subsidiaries prepare their statutory financial statements in accordance with statutory accounting practices prescribed or permitted by local regulators. Statutory and local accounting differs from

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US GAAP, including in the treatment of investments, acquisition costs and deferred income taxes, amongst other items.

The statutory capital and surplus amounts as of December 31, 2024 and 2023 and statutory net income (loss) amounts for the years ended December 31, 2024, 2023 and 2022 for our insurance companies and intermediaries based in the EU, UK, US and Canada and reinsurance companies based in Bermuda and the Cayman Islands are summarized in the table below, which includes information relating to acquisitions from the year of acquisition:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | | | |
|  | **Required** | **Required** | **Actual** | **Actual** | **Statutory Income (Loss)** | **Statutory Income (Loss)** | **Statutory Income (Loss)** |
| ***(in millions)*** | **2024** | **2023** | **2024 <sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2024<sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2022** |
|  EU - Belgium | $43.8 | $56.6 | $103.8 | $99.8 | $3.5 | $(52.9) | $(45.1) |
|  EU - Ireland | 7 | 6.5 | 62.3 | 53 | 54.9 | 46.4 | 44.2 |
|  US | 124.9 | 86.3 | 166.7 | 100.7 | 12.1 | (9.1) | (15.7) |
|  UK | 43.8 | 13 | 69.6 | 12.9 | (4.8) | (3.2) | (3.2) |
|  Canada | 5.5 | 5.7 | 13.8 | 12.9 | 1.8 | (0.8) |  |
|  Cayman Islands | 5.5 | 7.7 | 78.5 | 91 | (7.8) | (3.3) | (24.9) |
|  Bermuda <sup>(3)</sup> | 1 | 1 | 3.1 | 4.7 | (1.3) |  | (4.0) |

---

<sup>(1)</sup> The 2024 amounts reflect our best estimate of the statutory capital and surplus and net income as of the date of completion of these consolidated financial statements. 

<sup>(2)</sup> The amounts have been revised to reflect the final statutory capital and surplus as well as statutory net loss for 2023 as reported in the statutory financial statements. We do not view the differences from previously disclosed amounts to be qualitatively or quantitatively material to the consolidated financial statements. However, the revised amounts are being provided for the purposes of comparability with the amounts presented as of and for the year ended December 31, 2024. 

<sup>(3)</sup> Accelerant Re Ltd had not written any reinsurance business and was not making use of its license with the Bermuda Monetary Authority ("BMA"). Accelerant Re Ltd's board of directors therefore decided to voluntarily surrender such license and Accelerant Re Ltd was deregistered by the BMA in December 2023. We continue to own a segregated account with an entity that remains subject to BMA regulation. 

Certain material aspects of these laws and regulations as they relate to solvency, dividends and capital and surplus are summarized below.

***EU - Belgium***

Our Belgium insurance subsidiary (Accelerant Insurance Europe SA/NV) is regulated by the National Bank of Belgium ("NBB") pursuant to the Belgium Insurance Act of 2014. This subsidiary is obligated to maintain a minimum solvency margin based on the Solvency II regulations. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

The amount of dividends that this subsidiary is permitted to distribute is restricted to retained earnings, the current year profit and legal reserves (as defined). Dividends must be approved by the NBB before distribution. Solvency and capital requirements for this subsidiary are based on the Solvency II framework and must continue to be met following any distribution.

***EU - Ireland***

Our European insurance intermediary (Accelerant Agency Limited) is registered as an insurance intermediary by the Central Bank of Ireland ("CBI") under the European Union (Insurance Distribution) Regulations, 2018 ("IDD"). This subsidiary also has a UK third branch (Accelerant Agency Limited UK Branch) which is

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authorized and regulated by the Financial Conduct Authority ("FCA"). The FCA's applicable regulations require that a firm must at all times ensure that it is able to meet its liabilities as they fall due and at all times maintain capital resources equal to or in excess of its relevant capital resources requirement. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

***U.S.***

Our U.S. insurance subsidiaries are required to maintain minimum levels of solvency and liquidity as determined by law, and to comply with Risk-Based Capital ("RBC") requirements and licensing rules as required by each U.S. insurer's domiciliary state, and the states in which they operate. RBC is used to evaluate the adequacy of capital and surplus maintained by our U.S. insurance subsidiaries in relation to three major risk areas associated with asset risk, insurance risk and other risks. For both of our U.S. insurance subsidiaries, there are no prescribed or permitted statutory accounting practices that differ from the statutory accounting principles established by National Association of Insurance Commissioners and adopted by the US state regulators. Dividends must be approved by the insurance commissioner in the state of domicile before distribution. As of December 31, 2024 and 2023, our U.S. insurance subsidiaries exceeded their required levels of RBC.

***UK***

Our UK based insurance subsidiary is regulated by the Prudential Regulatory Authority ("PRA") and the FCA. Our UK based insurance subsidiary is required to maintain adequate financial resources in accordance with the requirements of the PRA. Insurers must comply with both a Minimum Capital Requirement ("MCR") and a Solvency Capital Requirement ("SCR") calculated using the Solvency II standard formula. The calculation of the MCR and SCR is based on, among other things, the type and amount of insurance business written and claims paid by the insurance company. The PRA's rules require our UK insurance subsidiary to obtain regulatory approval for any proposed payment of a dividend. The UK Regulator considers the MCR and SCR when assessing requests to make distributions. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

***Canada***

Our insurance subsidiary based in Canada is regulated for solvency purposes by the Office of the Superintendent of Financial Institutions ("OSFI") under the provisions of the Insurance Companies Act (Canadian Act). Our Canadian subsidiary is committed to establishing and maintaining an internal targeted capital ratio that is set above OSFI's supervisory target capital ratio. The internal targeted capital ratio is the level of capital based on the subsidiary's Own Risk and Solvency Assessment ("ORSA") that is necessary to cover the risks specified in the Minimum Capital Test Guideline (as defined) as well as other risks of the insurer. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

***Cayman Islands***

After evaluating the business and liquidity needs of our Cayman Islands reinsurance subsidiary, the directors may, from time to time, declare dividends to the shareholders. Such dividends shall only be paid out of our Cayman Islands reinsurance subsidiary's retained earnings and any paid-in capital in excess of par, provided that, after giving effect to each such dividend, the remaining capital is in excess of any capital requirements as prescribed by our Cayman Islands reinsurance subsidiary's Board and/or the regulator, the Cayman Islands Monetary Authority ("CIMA"). Prior notification of the payment of such dividends will be given to CIMA. Further, our Cayman Islands reinsurance subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes from time to time subject to approval from our Cayman Islands subsidiary's Board and, thereafter, prior written approval from CIMA. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

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***Bermuda***

Redemption or repurchase of securities may only be paid for out of paid-up capital and profits of our Bermuda subsidiary available for dividends, or from the proceeds of a fresh issue of securities. Any premium payable on redemption may only be paid out of our Bermuda subsidiary's share premium account, profits available for dividends or out of the contributed surplus account. (A Bermuda company may only pay dividends out of profits, but distributions to shareholders can be made out of any contributed surplus). Further, our Bermuda subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes subject to approval from our Bermuda subsidiary's Board.

**24. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was March 27, 2025. Based upon this review, other than as described below, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

***Acquisition of an MGA***

In January 2025, our consolidated subsidiary Corniche Acquisition Co. Ltd. acquired a controlling interest in the outstanding common shares of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes in the insurance of risks related to the recycling industry, for $56 million of consideration such that it owns 80.5% of Corniche's common shares. Previously, the investment in Corniche was accounted for as an equity method investment. Following the completion of the step acquisition, we remeasured our previously held equity interest to fair value at the acquisition date and we expect to record a gain of $2.1 million within "Net realized gains on investments" in the first quarter 2025.

***Tax residency***

On March 25, 2025, the Board of Directors of each of Accelerant Holdings and its subsidiary, Accelerant Holdings (Cayman) Ltd., (together, the "Holding Companies"), approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK, in each case determining that the Holdings Companies would be centrally managed and controlled from the UK on a prospective basis. "Central management and control" means that the strategic policy and direction of a company will be set from within the UK. Such actions are distinguished from decisions of a more day-to-day, operational nature. Becoming UK tax residents will enable the Holding Companies to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. The Company does not expect any material impact to current or deferred taxes upon the change of tax residency of the Holdings Companies. Status as a UK tax resident has no implications for the day-to-day management and operations of the Holding Companies which will remain sited in the Cayman Islands.

***Events subsequent to original issuance of financial statements (unaudited)***

We evaluated subsequent events and transactions through July 14, 2025, the date these financial statements were available to be reissued. Based upon this review, other than the common and preference share subdivision discussed in Note 1, no material subsequent events were identified that would have required adjustment or disclosure in the financial statements.

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**Schedule I** 

**Accelerant Holdings** 

**Summary of Investments Other Than Investments in Related Parties** 

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Cost** | **Fair value** | **Amount at which<br>shown in the<br>balance sheet** |
|  **Type of Investment** |  |  |  |
|  Fixed maturity and short-term investments available for sale, at fair value <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $175.5 | $174.0 | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency | 128.9 | 128.2 | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency | 161.1 | 158.6 | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed | 44.4 | 43.0 | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed | 18.6 | 18.4 | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities | 22.1 | 22.1 | 22.1 |
|  Total | 550.6 | 544.3 | 544.3 |
|  Other investments, at fair value | 10.0 | 45.3 | 45.3 |
|  **Total** | $**560.6** | $**589.6** | $**589.6** |

---

<sup>(1)</sup> Original cost of fixed maturities is reduced by repayments and adjusted for amortization of premiums or accretion of discounts.

------

##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Balance Sheets - Parent Company Only** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions, except number of shares and per share amounts)*** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | $4.2 | $3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 31.7 | 11.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **35.9** | **14.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 7.8 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in subsidiaries | 490.8 | 411.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 17.5 | 13.1 |
|  **Total assets** | $**552.0** | $**439.6** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | $121.4 | $120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 10.1 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payables and other liabilities | 11.8 | 7.5 |
|  **Total liabilities** | **143.3** | **129.1** |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2024: 5,556,546) | **104.4** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Shareholder's equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2024: 20,955,497 and 2023: 20,882,303) | 236.7 | 236.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2024: 12,569,691 and 2023: 12,525,788) | 145.1 | 145.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (par value $0.000001 per share, issued and outstanding 2024: 166,185,094 and 2023: 165,604,641) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 124.8 | 146.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (19.5) | (7.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (182.8) | (210.0) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total shareholders' equity** | **304.3** | **310.5** |
|  **Total equity** | **408.7** | **310.5** |
|  **Total liabilities and equity** | $**552.0** | $**439.6** |

---

*See accompanying notes to the Condensed Financial Information of Registrant.* 

------

##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Statements of Operations - Parent Company Only** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $0.7 | $0.9 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.8 | 2.8 | 3.4 |
|  **Total revenues** | **20.5** | **3.7** | **3.4** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 5.8 | 9.6 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.6 | 10.3 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.0 | 2.1 | 14.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 0.5 | 1.4 | (2.8) |
|  **Total expenses** | **32.9** | **23.4** | **18.3** |
|  **Loss before taxes** | **(12.4)** | **(19.7)** | **(14.9)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax benefit |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net loss before equity in undistributed earnings of subsidiaries** | **(12.4)** | **(19.7)** | **(14.9)** |
|  Equity in income (losses) of subsidiaries | 39.6 | (29.1) | (76.8) |
|  **Net income (loss)** | $**27.2** | $**(48.8)** | $**(91.7)** |

---

*See accompanying notes to the Condensed Financial Information of Registrant.* 

------

##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Statements of Comprehensive Income (Loss) - Parent Company Only** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $27.2 | $(48.8) | $(91.7) |
|  Other comprehensive (loss) income relating to subsidiaries, net of tax | (12.0) | 3.4 | (19.0) |
|  **Comprehensive income (loss)** | $**15.2** | $**(45.4)** | $**(110.7)** |

---

*See accompanying notes to the Condensed Financial Information of Registrant.* 

------

##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings** 

**Condensed Financial Information of Registrant** 

**Statements of Cash Flows - Parent Company Only** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $27.2 | $(48.8) | $(91.7) |
|  **Adjustments to reconcile net income (loss) to net cash used in operating activities:** |  |  |  |
|  **Non-cash revenues, expenses, gains and losses included in income (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity in undistributed net (income) loss of subsidiaries | (39.6) | 29.1 | 76.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains on investments | (19.8) | (2.8) | (3.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (0.7) | (0.9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 8.4 | 4.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 0.5 | 1.4 | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1.2 | 0.3 |  |
|  **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 8.8 | 1 | (4.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | 0.3 | (12.1) | 4.6 |
|  **Net cash used in operating activities** | **(13.7)** | **(28.0)** | **(20.6)** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | (0.8) | (0.9) | (1.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | (0.1) | (0.6) | (5.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions to subsidiaries | (91.9) |  | (219.3) |
|  **Net cash used in investing activities** | **(92.8)** | **(1.5)** | **(225.5)** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of convertible preference shares, net of issuance costs <sup>(1)</sup> | 114.5 | 0.7 | 204.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debt, net of issuance costs | 49.7 | 20 | 54.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt | (50.4) | (2.0) | (1.5) |
|  **Net cash provided by financing activities** | **113.8** | **18.7** | **257.4** |
|  **Net increase in cash, cash equivalents and restricted cash** | **7.3** | **(10.8)** | **11.3** |
|  Cash, cash equivalents and restricted cash at beginning of the year | 0.5 | 11.3 |  |
|  **Cash, cash equivalents and restricted cash at end of the year** | $**7.8** | $**0.5** | $**11.3** |

---

<sup>(1)</sup> Issuance of convertible preference shares is net of issuance expenses of $10.7 million, $0.2 million and $9.8 million for the years ended December 31, 2024, 2023 and 2022. 

---

| | | | |
|:---|:---|:---|:---|
|  **Supplemental cash flows information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $11.1 | $10.1 | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid |  |  |  |

---

*See accompanying notes to the Condensed Financial Information of Registrant.* 

------

##### [**Table of Contents**](#toc)
**Notes to the Condensed Financial Information of Registrant - Parent Company Only** 

The Condensed Financial Information of Accelerant Holdings (the Registrant) should be read in conjunction with the consolidated financial statements and the accompanying notes thereto of Accelerant Holdings and subsidiaries as of December 31, 2024 and 2023 and for each of the three years ended December 31, 2024 (the "Consolidated Financial Statements").

The Registrant's investments in consolidated subsidiaries are stated at cost plus equity in losses or undistributed income of consolidated subsidiaries.

For additional information regarding Net realized and unrealized gains on investments for the years ended December 31, 2024, 2023 and 2022, refer to Note 4 to the Consolidated Financial Statements.

For additional information regarding the Registrant's Senior unsecured debt, including estimated future repayments of long-term debt as of December 31, 2024 and 2023, refer to Note 14 to the Consolidated Financial Statements.

For additional information regarding the Registrant's issuance of Class C convertible preference shares for the year ended December 31, 2024, refer to Note 16 to the Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Schedule III** 

**Accelerant Holdings** 

**Supplementary Insurance Information** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **Deferred<br>acquisition<br>costs** | **Unpaid<br>losses and<br>loss<br>adjustment<br>expenses** | **Unearned<br>premiums** | **Net<br>written<br>premiums** | **Net<br>earned<br>premiums** | **Net<br>investment<br>income** | **Losses and<br>loss<br>adjustment<br>expenses** | **Amortization<br>of deferred<br>acquisition<br>costs** | **Other<br>operating<br>expenses <sup>(1)</sup>** |
| **2024** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $65 |
|  MGA Operations |  |  |  |  |  | 4.2 |  |  | 105.6 |
|  Underwriting | 83.4 | 1294.4 | 1803.2 | 254.6 | 226.6 | 32.6 | 167.3 | 104.2 | 90.5 |
|  Corporate and Other |  |  |  |  |  | 1 |  |  | 36.5 |
|  Consolidation and elimination adjustments | (22.7) |  |  |  |  |  |  | (22.8) | (56.7) |
|  **Total** | $**60.7** | $**1294.4** | $**1803.2** | $**254.6** | $**226.6** | $**38.9** | $**167.3** | $**81.4** | $**240.9** |
| **2023** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $36.2 |
|  MGA Operations |  |  |  |  |  | 2.8 |  |  | 80.6 |
|  Underwriting | 71.9 | 772.5 | 1152.1 | 190.9 | 105.1 | 12.1 | 80.3 | 68.4 | 56 |
|  Corporate and Other |  |  |  |  |  | 3.3 |  |  | 31.7 |
|  Consolidation and elimination adjustments | (18.9) |  |  |  |  |  |  | (18.5) | (26.8) |
|  **Total** | $**53.0** | $**772.5** | $**1152.1** | $**190.9** | $**105.1** | $**19.3** | $**80.3** | $**49.9** | $**177.7** |
| **2022** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $0.1 | $— | $— | $26.3 |
|  MGA Operations |  |  |  |  |  | 1 |  |  | 52.6 |
|  Underwriting | 34.3 | 415.4 | 743.6 | 186 | 141.2 | 1.5 | 99.5 | 58 | 47.1 |
|  Corporate and Other |  |  |  |  |  |  |  |  | 12.9 |
|  Consolidation and elimination adjustments | (7.7) |  |  |  |  |  |  | (23.0) | (15.1) |
|  **Total** | $**26.6** | $**415.4** | $**743.6** | $**186.0** | $**141.2** | $**2.6** | $**99.5** | $**35.0** | $**123.8** |

---

<sup>(1)</sup> Consolidated Other operating expenses consists of general and administration expenses of $227.5 million, $169.2 million, and $115.6 million and technology and development operating expenses of $13.4 million, $8.5 million, and $8.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. 

------

##### [**Table of Contents**](#toc)
**Schedule IV** 

**Accelerant Holdings** 

**Reinsurance** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Gross<br>amount** | **Ceded to other<br>companies** | **Assumed from<br>other companies** | **Net<br>amount** | **Percentage of amount<br>assumed to net** |
|  **Year Ended December 31, 2024** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | $2103.7 | $(2005.0) | $127.9 | $226.6 | 56.4% |
|  **Total premium earned** | $**2103.7** | $**(2005.0)** | $**127.9** | $**226.6** | 56.4% |
|  **Year Ended December 31, 2023** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 1304.5 | (1214.3) | 14.9 | 105.1 | 14.2% |
|  **Total premium earned** | $**1304.5** | $**(1214.3)** | $**14.9** | $**105.1** | 14.2% |
|  **Year Ended December 31, 2022** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 779.5 | (637.4) | (0.9) | 141.2 | (0.6)% |
|  **Total premium earned** | $**779.5** | $**(637.4)** | $**(0.9)** | $**141.2** | (0.6)% |

---

------

##### [**Table of Contents**](#toc)
**Schedule V** 

**Accelerant Holdings** 

**Valuation and Qualifying Accounts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Balance at<br>beginning of<br>year** | **Charged to<br>costs and<br>expenses** | **Charged to<br>other<br>accounts** | **(Deductions)** | **Foreign<br>currency<br>translation<br>adjustment** | **Balance at<br>the end of<br>year** |
| **2024** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | $46.5 | $(9.7) | $8.6 | $— | $— | $45.4 |
|  Allowance for premiums receivable | 2.7 |  |  | (0.3) |  | 2.4 |
|  Allowance for reinsurance recoverables | 0.3 | 0.1 |  |  |  | 0.4 |
| **2023** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 35.2 | 11.6 | (0.3) |  |  | 46.5 |
|  Allowance for premiums receivable | 1.8 | 0.9 |  |  |  | 2.7 |
|  Allowance for reinsurance recoverables |  | 0.3 |  |  |  | 0.3 |
| **2022** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 6.9 | 25.4 |  |  | 2.9 | 35.2 |
|  Allowance for premiums receivable | 1.3 | 0.5 |  |  |  | 1.8 |

---

------

##### [**Table of Contents**](#toc)
**Schedule VI** 

**Accelerant Holdings** 

**Supplementary Information Concerning Property/Casualty Insurance Operations** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | | | | | | | | **Losses and loss<br>adjustment<br>expenses** | **Losses and loss<br>adjustment<br>expenses** | | |
| **Affiliation with<br>Registrant** |<br>**Deferred<br>policy<br>acquisition<br>costs** | **Unpaid<br>losses and<br>loss<br>adjustment<br>expenses** | **Discount,<br>if any** |<br>**Unearned<br>premiums** |<br>**Written<br>premiums** |<br>**Net<br>earned<br>premiums** |<br>**Net<br>investment<br>income** | **Current<br>year** | **Prior<br>years** |<br>**Amortization<br>of deferred<br>acquisition<br>costs** |<br>**Paid claims<br>and claim<br>adjustment<br>expenses** |
|  Consolidated subsidiaries |  |  |  |  |  |  |  |  |  |  |  |
| 2024 | $60.7 | $1294.4 | $— | $1803.2 | $254.6 | $226.6 | $38.9 | $152.2 | $15.1 | $81.4 | $105.6 |
| 2023 | 53.0 | 772.5 |  | 1152.1 | 190.9 | 105.1 | 19.3 | 75.4 | 4.9 | 49.9 | 81.2 |
| 2022 | 26.6 | 415.4 |  | 743.6 | 186.0 | 141.2 | 2.6 | 94.7 | 4.8 | 35.0 | 53.3 |

---

------

##### [**Table of Contents**](#toc)
![LOGO](g543111g95u25.jpg)

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
| **Condensed Consolidated Interim Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Interim Financial Statements](#fin543111_201) | F-79 |
|  **Notes to the Condensed Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_202) | F-85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_203) | F-85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_204) | F-87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_205) | F-91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_206) | F-95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Unpaid losses and loss adjustment expenses](#fin543111_207) | F-98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Reinsurance](#fin543111_208) | F-98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Deferred acquisition costs and deferred ceding commissions](#fin543111_209) | F-100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Debt](#fin543111_210) | F-101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Business acquisitions](#fin543111_211) | F-101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Share-based compensation](#fin543111_212) | F-103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Earnings per share](#fin543111_213) | F-103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Income taxes](#fin543111_214) | F-104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Other assets](#fin543111_215) | F-105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Accounts payable and other liabilities](#fin543111_216) | F-105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Related party transactions](#fin543111_217) | F-106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Commitments and contingencies](#fin543111_218) | F-106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 18. Subsequent events](#fin543111_219) | F-106 |

---

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Balance Sheets (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
| ***(expressed in millions of US dollars, except share data)*** | | |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2025: $63.9 and 2024: $65.0) | $64.2 | $64.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2025: $583.1 and 2024: $485.6) | 582.7 | 479.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 8.9 | 18.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 47.0 | 45.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **702.8** | **607.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 1290.7 | 1273.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2025: $2.7 and 2024: $2.4) | 863.3 | 791.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 | 1558.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1266.5 | 1069.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 370.2 | 364.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 56.3 | 60.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net  | 114.9 | 64.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 86.9 | 83.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets  | 255.6 | 221.7 |
|  **Total assets** | $**6715.9** | $**6094.9** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1513.1 | $1294.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1986.4 | 1803.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1186.4 | 1109.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 194.6 | 193.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 854.8 | 746.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 195.1 | 201.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 | 121.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 209.6 | 198.2 |
|  **Total liabilities** | **6261.5** | **5667.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 17) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C convertible preference shares (issued and outstanding 2025 and 2024: 5,556,546) | **104.4** | **104.4** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible preference shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A (issued and outstanding 2025 and 2024: 20,955,497) | 236.7 | 236.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B (issued and outstanding 2025 and 2024: 12,569,691) | 145.1 | 145.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (par value $0.000001 per share, issued and outstanding 2025 and 2024: 166,185,094) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 127.2 | 124.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (11.2) | (19.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (176.3) | (182.8) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Accelerant shareholders' equity** | **321.5** | **304.3** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** | **28.5** | **18.3** |
|  **Total equity** | **454.4** | **427.0** |
|  **Total liabilities and equity** | $**6715.9** | $**6094.9** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Operations (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Revenues** | **Revenues** | **Revenues** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) |
|  **Total revenues** | **178.0** | **128.1** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 69.9 | 46.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) |
|  **Total expenses** | **162.5** | **116.1** |
|  **Income before income taxes** | **15.5** | **12.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) |
|  **Net income** | **7.8** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net (income) loss attributable to non-controlling interests | (1.3) | 5.0 |
|  **Net income attributable to Accelerant** | $**6.5** | $**7.1** |
|  **Net income attributable to Accelerant per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.04 | $0.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.03 | $0.04 |
|  **Weighted-average common shares outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 166185094 | 165604641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 205273147 | 199012732 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  Net income | $7.8 | $2.1 |
|  **Other comprehensive income, net of tax:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 2.5 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities | 4.8 | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments for losses recognized in net income | 1.2 |  |
|  **Other comprehensive income, net of tax** | **8.5** | **—** |
|  **Total comprehensive income** | **16.3** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive (income) loss attributable to non-controlling interests | (1.5) | 5.0 |
|  **Comprehensive income attributable to Accelerant** | $**14.8** | $**7.1** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Equity (unaudited)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(expressed in millions of US<br>dollars)*** | **Class C<br>convertible<br>preference<br>shares** | **Class A<br>convertible<br>preference<br>shares** | **Class B<br>convertible<br>preference<br>shares** | **Additional<br>paid-in<br>capital** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Accelerant<br>shareholders'<br>equity** | **Non-controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2025** |  |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2025** | $**104.4** | $**236.7** | $**145.1** | $**124.8** | $**(19.5)** | $**(182.8)** | $**304.3** | $**18.3** | $**427.0** |
|  Net income |  |  |  |  |  | 6.5 | 6.5 | 1.3 | 7.8 |
|  Other comprehensive income |  |  |  |  | 8.3 |  | 8.3 | 0.2 | 8.5 |
|  Share-based compensation |  |  |  | 2.4 |  |  | 2.4 |  | 2.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (2.3) | (2.3) |
|  Issuance of non-controlling interests <sup>(1)</sup> |  |  |  |  |  |  |  | 11.0 | 11.0 |
|  **Balance, March 31, 2025** | $**104.4** | $**236.7** | $**145.1** | $**127.2** | $**(11.2)** | $**(176.3)** | $**321.5** | $**28.5** | $**454.4** |

---

<sup>(1)</sup> Refer to Note 10 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(expressed in millions of US<br>dollars)*** | **Class C<br>convertible<br>preference<br>shares** | **Class A<br>convertible<br>preference<br>shares** | **Class B<br>convertible<br>preference<br>shares** | **Additional<br>paid-in<br>capital** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Accelerant<br>shareholders'<br>equity** | **Non-controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2024** |  |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2024** | $**—** | $**236.7** | $**145.1** | $**146.2** | $**(7.5)** | $**(210.0)** | $**310.5** | $**(23.8)** | $**286.7** |
|  Net income (loss) |  |  |  |  |  | 7.1 | 7.1 | (5.0) | 2.1 |
|  Share-based compensation |  |  |  | 2.2 |  |  | 2.2 |  | 2.2 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  |  | (1.6) | (1.6) |
|  **Balance, March 31, 2024** | $**—** | $**236.7** | $**145.1** | $**148.4** | $**(7.5)** | $**(202.9)** | $**319.8** | $**(30.4)** | $**289.4** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Cash Flows (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $7.8 | $2.1 |
|  **Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net income:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gains on investments | (2.3) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gains) losses on investments | (1.7) | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (0.5) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 2.4 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax expenses (benefits) | 0.3 | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 3.1 | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (1.8) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 0.2 | 0.3 |
|  **Changes in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (55.7) | (10.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (138.0) | (90.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (188.7) | (33.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | (2.0) | (34.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 4.3 | (2.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 194.2 | 102.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 155.0 | 95.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 66.6 | 112.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 7.5 | 8.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 108.0 | 57.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | (8.6) | (13.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | (65.7) | (48.6) |
|  **Net cash provided by operating activities** | **91.8** | **144.3** |
|  **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 114.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 26.4 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 15.8 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (126.9) | (161.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | 2.5 | (45.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (6.6) | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (0.9) | (2.6) |
|  **Net cash used in investing activities** | **(89.7)** | **(90.3)** |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt |  | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (2.3) | (1.4) |
|  **Net cash used in financing activities** | **(2.3)** | **(1.9)** |
|  **Net increase in cash, cash equivalents and restricted cash** | **(0.2)** | **52.1** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 17.9 | (2.6) |
|  Cash, cash equivalents and restricted cash at beginning of period | 1273.0 | 775.4 |
|  **Cash, cash equivalents and restricted cash at end of period** | $**1290.7** | $**824.9** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Condensed Consolidated Statements of Cash Flows (unaudited) (continued)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Supplemental cash flows information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $2.6 | $2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 3.3 | 2.0 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1238.0 | 823.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents | 52.7 | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1290.7** | $**824.9** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings** 

**Notes to Condensed Consolidated Financial Statements (unaudited)** 

**1. Nature of business and basis of presentation** 

Accelerant Holdings, together with its subsidiary companies ("Accelerant", "we", "us", "our" or the "Company"), connects selected specialty insurance underwriters ("Members") with risk capital partners through its data-driven risk exchange (the "Risk Exchange"). The Company, together with its risk capital partners, provides property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). The Company focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

These unaudited condensed consolidated interim financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") for interim financial information. Accordingly, they do not include all of the financial information and note disclosures required by US GAAP for complete consolidated financial statements. The condensed consolidated interim financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities.

In our opinion, these unaudited condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature necessary to fairly state our financial position as of March 31, 2025, our results of operations and cash flows for the three months ended March 31, 2025 and 2024. The results of operations for any interim period are not necessarily indicative of results for the full year.

These unaudited condensed consolidated financial statements and related notes should be read in conjunction with our consolidated financial statements and related notes included in our annual financial statements for the year ended December 31, 2024. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP.

***Common and preference share subdivision***

In connection with preparing for its initial public offering, the Company's Board of Directors approved amendments to the authorized share capital of the Company, which were subsequently approved by the Company's shareholders and became effective on July 14, 2025. Pursuant to these amendments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a 83.6690-for-1 share subdivision of the Company's common and preference shares was approved; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the authorized number of common shares and preference shares were increased to 252,652,430 and 39,089,474,
respectively.

All share and per share amounts in the consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to such share subdivision.

**2. Summary of significant accounting policies** 

There were no material changes to our significant accounting policies from those that were disclosed in our annual consolidated financial statements as of and for the year ended December 31, 2024.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued ASU 2024-03 *Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40)*

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##### [**Table of Contents**](#toc)
 *— Disaggregation of Income Statement Expenses,* requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard.

*<u>Income Tax:</u>* In December 2023, the FASB issued ASU 2023-09 *Income Taxes (Topic 740) — Improvements to Income Tax Disclosures*, to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard on our disclosures as well as the period in which we will adopt.

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##### [**Table of Contents**](#toc)
**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 the CODM assesses performance of the business and makes decisions on the allocation of resources.

***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. 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 deferred acquisition costs ("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.

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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 months ended March 31, 2025 and 2024. Corporate functions and certain other businesses and operations are included in Corporate and Other.

**Financial information by segment:** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $19.2 | $19.2 | $— | $51.5 | $70.7 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 59.0 | 31.5 |  | 90.5 |  | (90.5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 11.2 | 16.9 |  | 28.1 |  |  | 28.1 |
|  Net earned premiums |  |  | 63.0 | 63.0 |  |  | 63.0 |
|  Net investment income | 0.6 | 0.9 | 10.0 | 11.5 | 0.7 |  | 12.2 |
|  Net realized gains on investments |  | 2.0 | 0.3 | 2.3 |  |  | 2.3 |
|  Net unrealized gains on investments |  |  |  |  | 1.7 |  | 1.7 |
|  **Segment revenues** | **70.8** | **51.3** | **92.5** | **214.6** | **2.4** | **(39.0)** | **178.0** |
|  Losses and loss adjustment expenses |  |  | 45.2 | 45.2 |  |  | 45.2 |
|  Amortization of deferred acquisition costs |  |  | 24.8 | 24.8 |  | (7.7) | 17.1 |
|  General and administrative expenses <sup>(2) (3)</sup> | 20.8 | 31.2 | 11.5 | 63.5 | 14.5 | (8.1) | 69.9 |
|  Technology and development operating expenses | 3.0 |  |  | 3.0 |  |  | 3.0 |
|  **Adjusted EBITDA** | $**47.0** | $**20.1** | $**11.0** | $**78.1** | $**(12.1)** | $**(23.2)** | $**42.8** |
|  Interest expenses |  |  |  |  |  |  | (2.6) |
|  Depreciation and amortization |  |  |  |  |  |  | (7.4) |
|  Other expenses <sup>(4)</sup> |  |  |  |  |  |  | (14.2) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.1) |
|  **Income before income taxes** |  |  |  |  |  |  | $**15.5** |

---

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

<sup>(2)</sup> 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: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $13.9 | $21.3 | $6.2 | $41.4 |
|  Consulting and professional fees | 3.8 | 3.3 | 2.6 | 9.7 |
|  Other administrative expenses | 3.1 | 6.6 | 2.7 | 12.4 |
|  **Total general and administrative expenses** | $**20.8** | $**31.2** | $**11.5** | $**63.5** |

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<sup>(3)</sup> 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. 

<sup>(4)</sup> Other expenses for the three months ended March 31, 2025 consist of $4.6 million of system development non-operating expenses, $3.6 million of professional costs related to corporate development activities, $2.4 million of share-based compensation, $1.6 million of Mission profits sharing expense and $2.0 million of individually insignificant costs. 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $29.8 | $29.8 |  | $35.2 | $65 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 36.5 | 20.5 |  | 57 |  | (57.0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 5 | 6.6 |  | 11.6 |  |  | 11.6 |
|  Net earned premiums |  |  | 44 | 44 |  |  | 44 |
|  Net investment income | 0.1 | 0.7 | 7.1 | 7.9 |  |  | 7.9 |
|  Net realized gains on investments |  |  | 0.4 | 0.4 |  |  | 0.4 |
|  Net unrealized losses on investments |  |  | (0.8) | (0.8) |  |  | (0.8) |
|  **Segment revenues** | **41.6** | **27.8** | **80.5** | **149.9** | **—** | **(21.8)** | **128.1** |
|  Losses and loss adjustment expenses |  |  | 28.7 | 28.7 |  |  | 28.7 |
|  Amortization of deferred acquisition costs |  |  | 29.2 | 29.2 |  | (6.4) | 22.8 |
|  General and administrative expenses <sup>(3) (4)</sup> | 11.7 | 24.7 | 15.5 | 51.9 | 3.5 | (8.9) | 46.5 |
|  Technology and development operating expenses | 2.6 |  |  | 2.6 |  |  | 2.6 |
|  **Adjusted EBITDA** | $**27.3** | $**3.1** | $**7.1** | $**37.5** | $**(3.5)** | $**(6.5)** | $**27.5** |
|  Interest expenses |  |  |  |  |  |  | (3.0) |
|  Depreciation and amortization |  |  |  |  |  |  | (4.9) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (8.6) |
|  Net foreign exchange gains |  |  |  |  |  |  | 1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**12.0** |

---

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

<sup>(2)</sup> 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.

<sup>(3)</sup> 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: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $8.7 | $18.0 | $9.2 | $35.9 |
|  Consulting and professional fees | 1.9 | 1.7 | 6.0 | 9.6 |
|  Other administrative expenses | 1.1 | 5.0 | 0.3 | 6.4 |
|  **Total general and administrative expenses** | $**11.7** | $**24.7** | $**15.5** | $**51.9** |

---

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##### [**Table of Contents**](#toc)
<sup>(4)</sup> 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. 

<sup>(5)</sup> Other expenses for the three months ended March 31, 2024 consists of $2.7 million of system development non-operating costs, $2.6 million of professional costs related to corporate development activities, $2.2 million of share-based compensation and $1.1 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 months ended March 31, 2025 and 2024.

Our revenues by geography were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $49.0 | $21.7 | $70.7 |
|  Direct commission income | 14.0 | 14.1 | 28.1 |
|  Net earned premiums | 15.1 | 47.9 | 63.0 |
|  Net investment income | 7.4 | 4.8 | 12.2 |
|  Net realized gains on investments | 0.2 | 2.1 | 2.3 |
|  Net unrealized gains on investments | 1.7 |  | 1.7 |
|  **Total revenues** | $**87.4** | $**90.6** | $**178.0** |

---

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $30.2 | $34.8 | $65.0 |
|  Direct commission income | 5.5 | 6.1 | 11.6 |
|  Net earned premiums | 25.6 | 18.4 | 44.0 |
|  Net investment income | 3.9 | 4.0 | 7.9 |
|  Net realized gains on investments |  | 0.4 | 0.4 |
|  Net unrealized losses on investments |  | (0.8) | (0.8) |
|  **Total revenues** | $**65.2** | $**62.9** | $**128.1** |

---

<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the three months ended March 31, 2025 and 2024 resulting from the loss experience of covered insurance contracts, refer to Note 8.

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**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $223.3 | $1.3 | $(1.3) | $223.3 |
|  US government and agency | 154.9 | 0.9 | (0.3) | 155.5 |
|  Non-US government and agency | 175.2 | 0.9 | (1.5) | 174.6 |
|  Residential mortgage-backed | 46.0 | 0.3 | (0.7) | 45.6 |
|  Commercial mortgage-backed | 20.9 | 0.2 |  | 21.1 |
|  Other asset-backed securities | 26.7 | 0.1 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**647.0** | $**3.7** | $**(3.8)** | $**646.9** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

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The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $75.9 | $(1.3) | $— | $— | $75.9 | $(1.3) |
|  US government and agency | 31.7 | (0.1) | 4.7 | (0.2) | 36.4 | (0.3) |
|  Non-US government and agency | 76.7 | (1.5) |  |  | 76.7 | (1.5) |
|  Residential mortgage-backed | 15.0 | (0.2) | 3.4 | (0.5) | 18.4 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**199.3** | $**(3.1)** | $**8.1** | $**(0.7)** | $**207.4** | $**(3.8)** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at March 31, 2025 and December 31, 2024 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $114.2 | $114.4 |
|  Due after one year through five years | 342.6 | 343.7 |
|  Due after five years through ten years | 89.2 | 88.3 |
|  Due after ten years | 7.4 | 7.0 |
|  Residential mortgage-backed | 46.0 | 45.6 |
|  Commercial mortgage-backed | 20.9 | 21.1 |
|  Other asset-backed securities | 26.7 | 26.8 |
|  **Total** | $**647.0** | $**646.9** |

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The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused third-party claim administrator ("TPA") that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

Details regarding our equity method investments were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs <sup>(1)</sup> | 19.0% - 20.0% | $2.2 | 19.0% - 20.0% | $11.0 |
|  Other | 9.4% - 15.0% | 6.7 | 9.4% - 15.0% | 7.2 |
|  **Equity method investments** |  | $**8.9** |  | $**18.2** |

---

<sup>(1)</sup> During the first quarter of 2025, we acquired a controlling interest in an MGA subsidiary that we previously accounted for as an equity method investment. Refer to Note 10 for additional information.

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of March 31, 2025, we had unfunded commitments of $7.0 million to our equity method investees.

For the three months ended March 31, 2025 and 2024, we received dividends from equity method investees of $0.9 million and $0.2 million, respectively.

Details regarding the carrying value of our other investments portfolio were as follows:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $27.9 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds | 19.1 | 19.1 |
|  **Other investments** | $**47.0** | $**45.3** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

For the three months ended March 31, 2025, there were no impairments and we recorded $1.7 million of income as a component of unrealized gains following observable prices related to these investments. For the three months ended March 31, 2024, there were no impairments and no observable transaction prices based on orderly transaction prices for the identical or similar investments of the same issuer.

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We have recognized cumulative income as a component of unrealized gains of $37.1 million, net of cumulative impairments of $0.2 million associated with investments accounted for under the measurement alternative from inception of the related investments.

As of March 31, 2025, we had unfunded commitments of $2.2 million to venture funds.

***Net investment income***

Investment income and expenses were as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on cash and cash equivalents | $6.6 | $5.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on fixed maturity investments | 5.3 | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from equity method investments | 0.5 | 0.3 |
|  **Gross investment income** | **12.4** | **8.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment expenses | (0.2) | (0.1) |
|  **Net investment income** | $**12.2** | $**7.9** |

---

***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Net realized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.3 | $(0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity securities sold during the period |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 2.0 |  |
|  **Net realized gains on investments** | **2.3** | **0.4** |
|  **Net unrealized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized losses on equity securities held at the reporting date |  | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 1.7 |  |
|  **Net unrealized gains (losses) on investments** | **1.7** | **(0.8)** |
|  **Net realized and unrealized gains (losses) on investments** | $**4.0** | $**(0.4)** |

---

<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

***Regulated deposits and restricted assets***

Certain subsidiaries of the Company are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of March 31, 2025 and December 31, 2024, which are included in the "Fixed maturity securities available for sale, at fair value" in our condensed consolidated balance sheets.

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The following table represents the restricted assets we have pledged in favor of certain ceding companies to collateralized obligations:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Short-term investments | $17.3 | $17.2 |
|  Fixed maturity securities | 33.6 | 33.0 |
|  Cash and cash equivalents | 52.7 | 47.3 |
|  **Total** | $**103.6** | $**97.5** |

---

**5. Fair value measurements** 

Assets recorded at fair value in our condensed consolidated balance sheets are measured and classified in accordance with a fair value hierarchy consisting of three "levels" based on the observability of valuation inputs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These measurements may be made when there is little, if
any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.

There were no material changes to valuation methodologies of assets measured at fair value.

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***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $223.3 | $— | $223.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 155.5 |  | 155.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 174.6 |  | 174.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 45.6 |  | 45.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 21.1 |  | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 26.8 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**—** | $**646.9** | $**—** | $**646.9** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $174.0 | $— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | $**—** | $**544.3** | $**—** | $**544.3** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the three months ended March 31, 2025 and for the year ended December 31, 2024.

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##### [**Table of Contents**](#toc)
***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our condensed consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $— | $— | $27.9 | $27.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**47.0** | $**47.0** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $— | $— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

---

***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>:* As further described in Note 9, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of March 31, 2025 and December 31, 2024. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of March 31, 2025 and December 31, 2024.

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##### [**Table of Contents**](#toc)
**6. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Reinsurance recoverables, beginning of year | 1069.5 | 605.5 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **224.9** | **167.0** |
|  Incurred losses and LAE related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years |  |  |
|  **Total incurred losses and LAE** | **45.2** | **28.7** |
|  Paid losses and LAE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (1.9) | (2.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (26.7) | (21.0) |
|  **Total paid losses and LAE** | **(28.6)** | **(23.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange adjustments | 5.1 | (4.4) |
|  **Net reserve for unpaid losses and LAE, end of period** | **246.6** | **168.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE, end of period | 1266.5 | 695.0 |
|  **Gross reserve for unpaid losses and LAE, end of period** | $**1513.1** | $**863.3** |

---

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

**7. Reinsurance** 

We enter into reinsurance agreements to limit our exposure to large losses and to enable us to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

We use extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage our exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align our interests with those of our reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

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The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Written premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $800.8 | $532.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 73.2 | 18.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (801.6) | (495.5) |
|  **Net written premiums** | $**72.4** | $**55.6** |
|  **Earned premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $642.1 | $436.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.7 | 14.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (655.8) | (406.7) |
|  **Net earned premiums** | $**63.0** | $**44.0** |
|  **Loss and LAE:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $365.5 | $227.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 17.3 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (337.6) | (206.0) |
|  **Net loss and LAE** | $**45.2** | $**28.7** |

---

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Reinsurance recoverables on unpaid losses and LAE | $1266.5 | $1069.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | 292.6 | 281.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 77.6 | 82.9 |
|  **Total other reinsurance recoverables** | **370.2** | **364.3** |
|  **Reinsurance recoverables** | $**1636.7** | $**1433.8** |

---

For the three months ended March 31, 2025, we reduced the deposit assets by $5.3 million attributed to actual recoveries. The deposit asset reported as of March 31, 2025, is comprised of expected recoveries of $77.6 million, net of accretion, calculated using the interest method.

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. We evaluate the financial condition of our reinsurers and monitor concentration of credit risk arising from our exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, we have received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of March 31, 2025, 56% were with reinsurers having an A.M. Best rating of A- (excellent) or better, and we require reinsurance

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recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables. The credit valuation allowance was $0.5 million and $0.4 million as of March 31, 2025 and December 31, 2024, respectively.

**8. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by Accelerant:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $60.7 | $53.0 |
|  Direct commissions and other acquisition costs on retained business | 12.7 | 23.3 |
|  Amortization of deferred acquisition costs | (17.1) | (22.8) |
|  Foreign currency translation |  | (0.7) |
|  **Balance as of March 31,** | $**56.3** | $**52.8** |

---

The following table presents the amounts of ceding commission deferred and amortized:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $193.0 | $120.4 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 73.2 | 69.2 |
|  Amortization of deferred excess ceding commission to income | (70.7) | (65.0) |
|  Foreign currency translation | (0.9) | 3.4 |
|  **Balance as of March 31,** | $**194.6** | $**128.0** |

---

We cede a significant portion of our premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

Our contractual acquisition costs are expressed as a percentage of the underlying premiums by type of insurance policy. Certain agreements with our Members include sliding scale adjustments to acquisition cost based on the actual loss experience of the insurance contracts they write, such that our ultimate acquisition cost inversely changes relative to the loss ratio (i.e., adverse experience in the loss ratio will result in a reduction in the related acquisition cost and, conversely, any favorable experience in the loss ratio will result in an increase in the acquisition cost).

Certain of our reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commission will result in a change to the deferred ceding commissions liability to the extent that the underlying premiums are unearned and,

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conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the three months ended March 31, 2024 included reductions of $2.5 million due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. There was no net sliding scale commission adjustment during the three months ended March 31, 2025.

**9. Debt** 

We had the following senior unsecured debt outstanding as of March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Senior unsecured debt | $125.0 | $125.0 |
|  Less: unamortized debt issuance costs | (3.5) | (3.6) |
|  **Senior unsecured debt** | $**121.5** | $**121.4** |

---

We have a senior unsecured syndicated US dollar denominated loan facility with a September 2029 maturity date with an aggregate outstanding principal balance of $125 million. The credit agreement includes a $50 million revolving credit facility (which was unutilized and available as of March 31, 2025).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows us to withdraw predefined amounts. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the applicable interest rate has been reset. The interest rate is subject to a sliding scale based on our consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the three months ended March 31, 2025 and 2024 was $2.6 million and $3.0 million, respectively.

Subject to conditions of optional prepayment, we may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts we prepay may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of March 31, 2025, we were in compliance with all such covenants.

**10. Business acquisitions** 

In January 2025, our consolidated subsidiary Corniche Acquisition Co. Ltd. acquired an additional 61% of the outstanding share capital of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes in the insurance of risks related to the recycling industry, in exchange for $56.2 million of consideration consisting of i) $17.1 million of cash paid at acquisition, and an additional $17.1 million of cash to be paid over two equal installments due in June 2025 and January 2026 that is reflected as a payable within "Accounts payable and other liabilities" in our condensed consolidated balance sheets as of March 31, 2025); ii) our previously held equity interest of $11.0 million; and iii) the non-controlling interests of $11.0 million. The acquisition of the additional 61% interest increased our ownership in Corniche from 19.5% to 80.5%. Previously, we accounted for the investment in Corniche as an equity method investment. Following the completion of the step acquisition, we remeasured our previously held equity interest to fair value at the step acquisition date. Accordingly, we recorded a revaluation gain of $2.0 million within "Net realized gains on investments" in our condensed consolidated statements of operations.

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The fair value of the assets acquired and liabilities assumed and non-controlling interest was estimated using an income approach. Key assumptions included market-observable inputs and management's estimates of nominal cash flows. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. Our purchase price allocation related to the acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. We may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). We recorded goodwill from this acquisition, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of this acquisition after the respective closing date. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of the Company. The acquisition-related costs incurred during the three months ended March 31, 2025 were $0.7 million.

The following table provides our preliminary purchase accounting financial information for the Corniche acquisition:

---

| | |
|:---|:---|
| ***(in millions)*** | **2025** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $16.2 |
|  Other identifiable intangible assets | 21.6 |
|  Premiums receivable | 7.0 |
|  Other assets | 0.4 |
|  **Total assets acquired** | **45.2** |
|  **Liabilities assumed:** |  |
|  Accounts payable and other liabilities | 16.7 |
|  **Total liabilities assumed** | **16.7** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **28.5** |
|  Goodwill | 27.7 |
|  **Total acquisition consideration** | $**56.2** |

---

<sup>(1)</sup> Total net cash paid to date for the interest in Corniche was $0.9 million, net of cash acquired (consisting of the $17.1 million initial payment at acquisition date net of the $16.2 million cash acquired). As noted above, this does not include cash payments of $17.1 million that will be due in two installments through January 2026. 

A roll forward of goodwill and other intangible assets, net as of and for the three months ended March 31, 2025 is as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **Goodwill and other<br>intangible assets, net** |
|  Balance as of January 1, 2025 | $64.0 |
|  Goodwill from acquisition of business | 27.7 |
|  Other intangible assets from acquisition of business | 21.6 |
|  Amortization of other intangible assets | (1.2) |
|  Foreign currency translation | 2.8 |
|  **Balance as of March 31, 2025** | $**114.9** |

---

We did not have any business acquisitions during the three months ended March 31, 2024.

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**11. Share-based compensation** 

***Share options granted***

No options have been granted during the first quarter of 2025. The following table summarizes the activity related to share option awards for the three months ended March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term (Years)** | **Aggregate<br>Intrinsic<br>Value** | **Aggregate<br>Fair Value** |
|  Outstanding as of January 1, 2025 | 15016572 | $19.30 | 9.1 | $— | $2.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled | (77394) | 19.30 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (187921) | 19.30 |  |  |  |
|  **Outstanding as of March 31, 2025** | **14751257** | $**19.30** | **8.8** | $**—** | $**2.81** |
|  Options exercisable as of March 31, 2025 | 6412892 | $19.30 | 8.6 | $— | $2.10 |
|  Options unvested as of March 31, 2025 | 8338365 | $19.30 | 9.0 | $— | $3.35 |

---

The weighted average grant-date fair value of share options granted during the three months ended March 31, 2024 was $3.52.

For the three months ended March 31, 2025 and 2024, share-based compensation expense from share option awards granted was $2.4 million and $2.2 million, respectively, which is included in "Other expenses" in our condensed consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of March 31, 2025 and December 31, 2024 was $26.1 million and $29.6 million, respectively. The weighted average remaining requisite service period as of March 31, 2025 is 1.5 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**12. Earnings per share** 

The following table sets forth the computation of basic and diluted net earnings per common share:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in millions, except share data)*** | **2025** | **2024** |
|  **Numerator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to Accelerant common shareholders | $6.5 | $7.1 |
|  **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - basic | 166185094 | 165604641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilutive common shares <sup>(1)</sup> | 39088053 | 33408091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted-average common shares outstanding - diluted | 205273147 | 199012732 |
|  **Net income attributable to Accelerant per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.04 | 0.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.03 | $0.04 |

---

<sup>(1)</sup> Potential dilutive common shares consist of all of our convertible preference shares and certain of our share-based compensation options described in Note 11. The potential common shares excluded from the calculation of potential diluted shares outstanding were 14,744,899 and 11,478,379 shares for the three months ended March 31, 2025 and 2024, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. Such potential common shares solely related to share options granted and outstanding described in Note 11. 

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In the event of an initial public offering, Accelerant Holdings LP intends to distribute common shares of the Company that are currently held by Accelerant Holdings LP to the holders of existing profits interest awards of Accelerant Holdings LP. The quantity of common shares that may be distributed is currently indeterminable as the amount holders will receive will be dependent upon the implied market value of the Company at the time of the initial public offering.

**13. Income taxes** 

For the three months ended March 31, 2025 and 2024, our effective tax rates were 49.7% and 82.5%, respectively. We use the estimated annual effective tax rate method for calculating our tax provision in interim periods, which reflects our best estimate of the effective tax rate expected for the full year. The effective tax rates in both periods were impacted by taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions.

In March 2025, the Board of Directors of Accelerant Holdings and certain intermediary holding companies (together, the "Holding Companies") approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK. Upon becoming UK tax residents, the Holding Companies began to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. In addition, the aggregate income (loss) of the Holding Companies became subject to UK income tax effective as of the March 2025 date of change to UK tax residency. To the extent that the Holding Companies have incremental income it will generate additional UK tax expense and, conversely, to the extent that there are any incremental losses income tax benefits will be generated to the extent that there is current or projected taxable income available in our UK operations. Over the remainder of 2025, we expect incremental benefits to emerge due to the Holding Companies' projected expense base and, therefore, our effective tax rate for the year ended December 31, 2025 is expected to fall below those reported in previous years when such expenses were incurred in the Cayman Islands (a zero tax rate jurisdiction).

The relationship of our income tax expense to pre-tax income (loss) is atypical because our taxable income has predominately been generated in the US, UK, Ireland, and Puerto Rico resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other jurisdictions where we have generated cumulative operating losses, however, in each of those cases, a valuation allowance has been recorded against the corresponding deferred tax assets (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

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Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

The composition of our effective tax rates among our tax-paying and non-tax paying entities, which demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $49.5 | $(34.0) | $15.5 | $35.6 | $(23.6) | $12.0 |
|  Income tax expense | (7.7) |  | (7.7) | (9.9) |  | (9.9) |
|  **Effective tax rate** | **15.6%** | **—** | **49.7%** | **27.8%** | **—** | **82.5%** |

---

**14. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Prefunded claim settlement accounts <sup>(1)</sup> | $89.5 | $58.6 |
|  Net deferred tax assets | 50.3 | 51.6 |
|  Commission income receivable | 28.5 | 28.3 |
|  Funds withheld by reinsurers | 18.5 | 18.2 |
|  Deferred offering costs <sup>(2)</sup> | 17.2 | 16.0 |
|  Prepaid expenses | 11.2 | 11.8 |
|  Related party receivables (refer to Note 16) | 7.2 | 7.6 |
|  Prepaid retrocession premium | 5.1 | 5.3 |
|  Other | 28.1 | 24.3 |
|  **Total** | $**255.6** | $**221.7** |

---

<sup>(1)</sup> This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis. 

<sup>(2)</sup> As of the date of completion of these financial statements, the Company is preparing for its planned initial public offering. In the event that the Company postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

**15. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Premium tax payables | $48.0 | $53.7 |
|  Commission refund liabilities | 40.1 | 38.8 |
|  Deposit liabilities | 29.5 | 43.9 |
|  Trade payables | 17.1 | 13.8 |
|  Corporation tax payable | 9.0 | 4.4 |
|  Accrued expenses and other | 65.9 | 43.6 |
|  **Total** | $**209.6** | $**198.2** |

---

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**16. Related party transactions** 

As of March 31, 2025 and December 31, 2024, the outstanding balance of short-term financing by the Company to Accelerant Holdings LP was $7.3 million and $7.6 million, respectively. This balance is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

As of March 31, 2025 and December 31, 2024, we had accounts payable of $0.7 million and $0.9 million, respectively, to Accelerant Holdings LP, primarily related to legal costs.

For the three months ended March 31, 2025 and 2024, we incurred $2.1 million and $0.1 million, respectively, of advisory fees and expenses with Altamont Capital Management LLC, an affiliate.

**17. Commitments and contingencies** 

***Litigation***

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

***Unfunded investment commitments***

As of March 31, 2025, we had unfunded commitments of $9.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**18. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was May 16, 2025. Based upon this review, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

***Events subsequent to original issuance of financial statements***

We evaluated subsequent events and transactions through July 14, 2025, the date these financial statements were available to be reissued. Based upon this review, other than the common and preference share subdivision discussed in Note 1, no material subsequent events were identified that would have required adjustment or disclosure in the financial statements.

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![LOGO](g543111g44i14.jpg)

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**Accelerant Holdings LP** 

**Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
|  **Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm](#fin543111_1) | F-109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2024 and 2023](#fin543111_2) | F-110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022](#fin543111_3) | F-111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022](#fin543111_4) | F-112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022](#fin543111_5) | F-113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022](#fin543111_6) | F-114 |
|  **Notes to Consolidated Financial Statements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_7) | F-116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_8) | F-116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_9) | F-129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_10) | F-136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_11) | F-141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Variable interest entities](#fin543111_12) | F-142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Revenue from contracts with customers](#fin543111_13) | F-144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Reinsurance](#fin543111_14) | F-145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Deferred acquisition costs and deferred ceding commissions](#fin543111_15) | F-147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Income taxes](#fin543111_16) | F-147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Goodwill, other intangible assets and capitalized technology development costs](#fin543111_17) | F-151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Other assets](#fin543111_18) | F-153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Unpaid losses and loss adjustment expenses](#fin543111_19) | F-154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Debt](#fin543111_20) | F-159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Accounts payable and other liabilities](#fin543111_21) | F-160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Equity](#fin543111_22) | F-160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Business acquisitions](#fin543111_23) | F-163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 18. Related party transactions](#fin543111_24) | F-166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 19. Commitments and contingencies](#fin543111_25) | F-166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 20. Employee benefits and profit interests plans](#fin543111_26) | F-166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 21. Share-based compensation](#fin543111_27) | F-167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 22. Dividend restrictions and statutory financial information](#fin543111_28) | F-168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 23. Subsequent events](#fin543111_29) | F-171 |
|  **Financial Statement Schedules** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[I.](#fin543111_30) [Summary of investments other than investments in related parties as of December 31, 2024](#fin543111_30) | F-172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[II.](#fin543111_31) [Condensed financial information of parent only as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_31) | F-173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[III.](#fin543111_32) [Supplementary insurance information as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022](#fin543111_32) | F-178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[IV.](#fin543111_33) [Reinsurance for the years ended December 31, 2024, 2023 and 2022](#fin543111_33) | F-179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[V.](#fin543111_34) [Valuation and qualifying accounts for the years ended December 31, 2024, 2023 and 2022](#fin543111_34) | F-180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[VI.](#fin543111_35) [Supplementary information concerning property/casualty insurance operations as of and for the years ended December 31, 2024, 2023 and 2022](#fin543111_35) | F-181 |

---

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**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors of Accelerant Holdings and Shareholders of Accelerant Holdings LP

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Accelerant Holdings LP and its subsidiaries (the "Partnership") as of December 31, 2024 and 2023, and the related consolidated statements of operations, of comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

March 27, 2025

We have served as the Partnership's auditor since 2021.

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**Accelerant Holdings LP** 

**Consolidated Balance Sheets** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(expressed in millions of US dollars, except share data)*** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2024: $65.0 and 2023: $8.0) | $64.8 | $8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2024: $485.6 and 2023: $87.1) | 479.5 | 86.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities, at fair value (cost 2023: $115.2) |  | 116.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 18.2 | 15.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 45.3 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **607.8** | **252.4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash <sup>(1)</sup> | 1273.2 | 775.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2024: $2.4 and 2023: $2.7) <sup>(1)</sup> | 791.9 | 479.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1558.4 | 920.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1069.5 | 605.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 364.3 | 374.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 60.7 | 53.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net <sup>(1)</sup> | 64.0 | 51.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs <sup>(1)</sup> | 83.6 | 69.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets <sup>(1)</sup> | 219.1 | 154.1 |
|  **Total assets** | $**6092.5** | $**3735.7** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1803.2 | 1152.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1109.0 | 482.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 193.0 | 120.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 746.9 | 544.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable <sup>(1)</sup> | 201.8 | 127.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.4 | 120.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities <sup>(1)</sup> | 198.8 | 132.0 |
|  **Total liabilities** | **5668.5** | **3451.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 19) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share: shares authorized, issued and outstanding of 100; amounts are recorded at liquidation preference | **50.2** | **44.1** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partners' common shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share, shares authorized, issued and outstanding of 8,491,134,079 | $110.6 | $110.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share: shares authorized, issued and outstanding of 693,970,910 | 12.1 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (21.0) | (9.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (211.7) | (232.3) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity** | **(110.0)** | **(118.7)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: convertible preference shares of consolidated subsidiary | 486.2 | 381.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: other interests | (2.4) | (23.1) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total non-controlling interests** | **483.8** | **358.7** |
|  **Total equity** | **424.0** | **284.1** |
|  **Total liabilities and equity** | $**6092.5** | $**3735.7** |

---

<sup>(1)</sup> See Note 6 for details of balances as of December 31, 2023 that were associated with consolidated variable interest entities.

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Consolidated Statements of Operations** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $249.5 | $164.2 | $44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 226.6 | 105.1 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 66.7 | 37.6 | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 39.1 | 19.3 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on investments | 1.9 | 0.5 | (3.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on investments | 19.0 | 17.3 | 0.3 |
|  **Total revenues** | **602.8** | **344.0** | **219.0** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 167.3 | 80.3 | 99.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 81.4 | 49.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 227.9 | 169.2 | 116.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 13.4 | 8.5 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 12.1 | 10.9 | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 47.4 | 51.1 | 33.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (4.8) | 3.5 | 1.7 |
|  **Total expenses** | **571.3** | **387.9** | **304.1** |
|  **Income (loss) before income taxes** | **31.5** | **(43.9)** | **(85.1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (9.1) | (20.2) | (11.3) |
|  **Net income (loss)** | **22.4** | **(64.1)** | **(96.4)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net loss attributable to non-controlling interests | 4.3 | 15.3 | 3.9 |
|  **Net income (loss) attributable to Accelerant Holdings LP** | $**26.7** | $**(48.8)** | $**(92.5)** |

---

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Consolidated Statements of Comprehensive Income (Loss)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $22.4 | $(64.1) | $(96.4) |
|  **Other comprehensive (loss) income, net of tax:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (4.8) | 1.8 | (18.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (losses) gains on fixed maturity securities | (5.7) | 1.4 | (1.6) |
|  **Other comprehensive (loss) income, net of tax** | **(10.5)** | **3.2** | **(19.6)** |
|  **Total comprehensive income (loss)** | **11.9** | **(60.9)** | **(116.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive loss attributable to non-controlling interests | 2.9 | 15.5 | 3.6 |
|  **Comprehensive income (loss) attributable to Accelerant Holdings LP** | $**14.8** | $**(45.4)** | $**(112.4)** |

---

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Consolidated Statements of Equity** 

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class D<br>redeemable<br>preference<br>shares** | **Common shares** | **Common shares** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-**<br>**controlling<br>interests** | **Total<br>equity** |
| ***(expressed in millions of US dollars)*** | **Class D<br>redeemable<br>preference<br>shares** | **Class A1** | **Class A2** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-**<br>**controlling<br>interests** | **Total<br>equity** |
|  **Balance, December 31, 2021** | $**34.0** | $**110.6** | $**12.1** | $**7.4** | $**(80.9)** | $**49.2** | $**172.0** | $**255.2** |
|  Net loss |  |  |  |  | (92.5) | (92.5) | (3.9) | (96.4) |
|  Other comprehensive (loss) income |  |  |  | (19.9) |  | (19.9) | 0.3 | (19.6) |
|  Capital contributions |  |  |  |  |  |  |  |  |
|  Accretion on preference shares | 4.8 |  |  |  | (4.8) | (4.8) |  |  |
|  Issuance of convertible preference shares by consolidated subsidiary <sup>(1)</sup> |  |  |  |  |  |  | 207.3 | 207.3 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (1.8) | (1.8) |
|  Issuance of non-controlling interests |  |  |  |  |  |  | 2.7 | 2.7 |
|  **Balance, December 31, 2022** | $**38.8** | $**110.6** | $**12.1** | $**(12.5)** | $**(178.2)** | $**(68.0)** | $**376.6** | $**347.4** |
|  Net loss |  |  |  |  | (48.8) | (48.8) | (15.3) | (64.1) |
|  Other comprehensive income |  |  |  | 3.4 |  | 3.4 | (0.2) | 3.2 |
|  Accretion of preference shares | 5.3 |  |  |  | (5.3) | (5.3) |  |  |
|  Issuance of convertible preference shares by consolidated subsidiary |  |  |  |  |  |  | 0.7 | 0.7 |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 4.8 | 4.8 |
|  Acquisition of non-controlling interests in subsidiaries |  |  |  |  |  |  | (5.5) | (5.5) |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (2.9) | (2.9) |
|  Issuance of non-controlling interests |  |  |  |  |  |  | 0.5 | 0.5 |
|  **Balance, December 31, 2023** | $**44.1** | $**110.6** | $**12.1** | $**(9.1)** | $**(232.3)** | $**(118.7)** | $**358.7** | $**284.1** |
|  Net loss |  |  |  |  | 26.7 | 26.7 | (4.3) | 22.4 |
|  Other comprehensive income |  |  |  | (11.9) |  | (11.9) | 1.4 | (10.5) |
|  Accretion of preference shares | 6.1 |  |  |  | (6.1) | (6.1) |  |  |
|  Issuance of convertible preference shares and contingently issuable detachable warrants by consolidated subsidiary <sup>(2)</sup> |  |  |  |  |  |  | 114.5 | 114.5 |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 8.4 | 8.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (3.5) | (3.5) |
|  Issuance of non-controlling interests <sup>(3)</sup> |  |  |  |  |  |  | 8.6 | 8.6 |
|  **Balance, December 31, 2024** | $**50.2** | $**110.6** | $**12.1** | $**(21.0)** | $**(211.7)** | $**(110.0)** | $**483.8** | $**424.0** |

---

<sup>(1)</sup> Issuance of convertible preference shares included net cash proceeds of $204.8 million and $2.5 million related to a non-cash financing activity consisting of the issuance of 2,500 Class A convertible preference shares to a related party. For further information, refer to Note 16. 

<sup>(2)</sup> Issuance of convertible preference shares was $104.4 million and contingently issuable detachable warrants of $10.1 million on a relative fair value basis, net of acquisition costs of $10.7 million. 

<sup>(3)</sup> Refer to Note 17 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Consolidated Statements of Cash Flows** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $22.4 | $(64.1) | $(96.4) |
|  **Adjustments to reconcile net income (loss) to net cash provided by operating activities:** |  |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized (gains) losses on investments | (1.9) | (0.5) | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains on investments | (19.0) | (17.3) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (2.3) | (2.9) | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 8.4 | 4.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 26.6 | 14.5 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax (benefits) expenses | (40.9) | 0.3 | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on commutation |  | (4.8) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange (gains) losses | (4.8) | 3.5 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (5.7) | (0.5) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 1.6 | 0.4 | 0.1 |
|  **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (319.0) | (221.8) | (114.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (648.3) | (285.7) | (376.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (471.0) | (252.9) | (180.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 7.5 | (162.0) | (74.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs <sup>(1)</sup> | (8.2) | (19.3) | (16.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 540.3 | 326.7 | 241.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 674.8 | 377.0 | 422.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 636.4 | 215.2 | 105.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 68.4 | 32.6 | 59.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 203.0 | 303.4 | 100.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 72.5 | 105.0 | 6.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | 44.7 | (61.7) | (14.5) |
|  **Net cash provided by operating activities** | **785.5** | **289.9** | **65.7** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities | 114.8 | 88.6 | 126.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 84.3 | 41.5 | 14.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 0.3 |  | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 18.6 | 10.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | (46.9) | (201.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (500.7) | (73.8) | (56.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | (4.3) | (0.6) | (9.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | (0.4) | (0.6) | (6.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | (56.5) | (0.7) | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of subsidiaries, net of cash acquired | (0.5) | 2.8 | (1.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (34.4) | (32.6) | (26.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (1.3) | (0.1) | 0.6 |
|  **Net cash used in investing activities** | **(380.1)** | **(11.7)** | **(147.5)** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests - issuance of preference shares, net of issuance costs <sup>(2)</sup> | 114.5 | 0.7 | 204.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of debt, net of issuance costs | 49.7 | 20.0 | 54.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt | (50.4) | (2.0) | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of non-controlling interests in subsidiaries |  | (5.5) | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (3.5) | (2.9) | (1.8) |
|  **Net cash provided by financing activities** | **110.3** | **10.3** | **254.7** |
|  **Net increase in cash, cash equivalents and restricted cash** | **515.7** | **288.5** | **172.9** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (18.3) | 3.3 | (14.6) |
|  Cash, cash equivalents and restricted cash at beginning of year | 775.8 | 484.0 | 325.7 |
|  **Cash, cash equivalents and restricted cash at end of year** | $**1273.2** | $**775.8** | $**484.0** |

---

<sup>(1)</sup> Deferred acquisition costs are reduced by the ceding commissions recorded as a reimbursement for acquisition costs of insurance contracts subject to reinsurance.

<sup>(2)</sup> Issuance of convertible preference shares related to non-controlling interests are net of issuance expenses of $10.7 million, $0.2 million and $9.8 million for the years ended December 31, 2024, 2023 and 2022. The 2024 issuance of preference shares included contingently issuable detachable warrants. 

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Consolidated Statements of Cash Flows (continued)** 

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(expressed in millions of US dollars)*** | **2024** | **2023** | **2022** |
|  **Supplemental cash flows information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $11.1 | $10.1 | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 45.5 | 20.2 | 21.1 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1225.9 | 775.8 | 482.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents  | 47.3 |  | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1273.2** | $**775.8** | $**484.0** |

---

***<u>Supplemental non-cash activity information:</u>***

The Partnership is the ultimate parent of the Accelerant Holdings group of companies ("Accelerant Holdings" or the "Group"). For the year ended December 31, 2023, the Group had non-cash operating activities related to a loss portfolio transfer reinsurance contract and a commutation agreement. See Note 8 for further detail regarding these reinsurance transactions.

For the year ended December 31, 2022, the Group had non-cash financing activities consisting of the issuance of 2,500 Class A convertible preference shares to a related party consisting of 2,000 shares issued in settlement of an outstanding payable balance of $2.0 million and 500 shares purchased by the related party by way of a $0.5 million loan funded by Accelerant Holdings. In addition, non-controlling interest increased by $2.3 million due to the Group's acquisition of subsidiaries.

*See accompanying notes to the consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Notes to Consolidated Financial Statements** 

**1. Nature of business and basis of presentation** 

***Nature of business***

Accelerant Holdings LP ("AHLP") is a Cayman Islands exempted limited partnership, formed in December 2018 with capital provided by initial investors, which included entities affiliated with Altamont Capital Partners, a private equity firm, as well as certain members of the Partnership's executive management team. AHLP is the ultimate parent of the Accelerant Holdings group of companies ("Accelerant Holdings" or the "Group"). Accelerant Holdings, together with its risk capital partners, provide property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). AHLP, together with its subsidiary companies ("we","us","our" or the "Partnership") focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

Accelerant Holdings is the primary operating holding company of the Group.

Accelerant Holdings (Cayman) Ltd ("Accelerant Cayman") is a holding company incorporated in the Cayman Islands and is the entity which owns the underlying operating group companies engaged in the Accelerant business.

***Basis of presentation***

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities. Certain prior year comparative information has been reclassified to conform to the current presentation.

Earnings per share is not presented within these financial statements on the basis that AHLP, as predecessor of Accelerant Holdings, will not be issuing any securities in the public market and it will be dissolved in connection with the initial public offering of Accelerant Holdings as the successor and intended registrant.

**2. Summary of significant accounting policies** 

***Principles of consolidation***

The consolidated financial statements include all the controlled subsidiaries, generally through a greater than 50% ownership of voting rights and voting interests ("VOE"), and variable interest entities ("VIEs") of which we are the primary beneficiary. Non-controlling interests consist of equity that is not attributable directly or indirectly to us. Equity investments in entities that are not consolidated in which we have significant influence over the operating and financial policies are accounted for under the equity method. All significant intercompany balances and transactions have been eliminated in consolidation.

***Variable interest entities***

VIEs are required to be consolidated by the entity deemed to be the primary beneficiary which is defined as the investor that has the power to direct the activities of the VIE and will absorb a portion of the VIEs expected losses or residual returns that could potentially be significant to the VIE.

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To determine whether the Partnership or its consolidated subsidiaries have a variable interest in a VIE, we analyze whether we are the primary beneficiary of the VIE by considering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's purpose and design, including the risks the VIE intended to pass through to its variable interest
holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the VIE's capital structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the terms between the VIE and its variable interest holders and other parties involved with the VIE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the power to direct the activities of the VIE, including those that most
significantly impact the VIE's economic performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• which variable interest holders have the obligation to absorb losses or the right to receive benefits from the
VIE, particularly those that could potentially be significant to the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any relevant related party relationships.

We reassess our determination of whether we are the primary beneficiary of a VIE upon changes in facts and circumstances that could potentially change our assessment (i.e., reconsideration events).

***Foreign operations remeasurement and translation***

The functional currency for each of our operating subsidiaries is generally the currency of the local operating environment. Transactions in currencies other than the local operation's functional currency are remeasured into the functional currency and the resulting foreign exchange gains or losses are reflected in our consolidated statements of operations. Functional currency assets and liabilities are translated into our reporting currency, US dollars, using period end exchange rates and the related translation adjustments are recorded as a separate component of other comprehensive (loss) income in partners' equity. Amounts included in our consolidated statements of operations are translated using the applicable exchange rates existing during the annual period.

***Business combinations***

The acquisition method of accounting is used to account for all business combinations. The consideration transferred for the acquisition of an entity is comprised of the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair values of the assets transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liabilities incurred to the former owners of the acquired business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equity interests issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any asset or liability resulting from additional consideration arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of any pre-existing equity interest (non-controlling interest upon consolidation) in the subsidiary.

Identifiable assets acquired (including intangible assets) and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. We recognize any non-controlling interests in the acquired entity at fair value. Acquisition-related costs are expensed as incurred.

Goodwill for business combinations is recorded as the excess of the consideration transferred, over the fair value of the net identifiable assets acquired.

***Use of estimates***

The preparation of consolidated financial statements in conformity with US GAAP requires us to make estimates and assumptions which affect the reported amounts of assets and liabilities at the date of our consolidated

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financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our consolidated financial statements include, but are not limited to, unpaid losses and loss adjustment expenses ("LAE"), reinsurance recoverables on unpaid losses, direct and ceding commission income subject to sliding scale adjustments based on actual and expected loss ratios of the underlying insurance policies, valuation allowance on deferred income taxes, fair values of investments, valuation allowance for expected credit losses, recoverability of goodwill and other intangible assets, and useful economic lives of intangible assets.

***Premiums***

Premiums are generally recorded as written upon inception of the policy, less cancellations. Premiums written are based on contract and policy terms. Premiums are primarily earned in proportion to the amount of insurance protection provided over the term of the insurance contract. Unearned premiums represent the portion of premiums written applicable to the unexpired term of the related policy.

A premium deficiency occurs if the sum of anticipated losses and loss adjustment expenses and deferred acquisition costs ("DAC") exceed the sum of anticipated investment income and unearned premiums. A premium deficiency is recorded by charging any deferred acquisition costs to expenses to the extent required to eliminate the deficiency. If the premium deficiency exceeds deferred acquisition costs, then a liability is accrued for the excess deficiency. No such deficiency has been recognized as of and for the years ended December 31, 2024, 2023 and 2022.

***Deferred policy acquisition costs***

Policy acquisition costs represent the costs directly related to the successful acquisition of new and renewal insurance contracts. The costs are deferred and amortized over the same period in which the related premiums are earned. The costs principally consist of commissions, brokerage, premium tax expenses and direct agency costs. The amounts presented within our consolidated balance sheets pertain to the DAC associated with the retained portion of insurance policies the Group issues, as the acquisition costs associated with the ceded portion of the insurance policies are offset by ceding commissions received from the Group's reinsurance providers. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income, including investment income. Unrecoverable deferred policy acquisition costs are expensed in the period identified.

**Ceding commission income** 

The Group cedes a significant portion of its premiums written to reinsurance companies. This generates ceding commissions which are recorded as a reimbursement for (and reduction of) the pro-rata share of the acquisition costs related to the insurance contracts subject to the reinsurance. Ceding commissions that are more than the proportionate amount of the DAC of the business ceded are deferred and amortized over the same period in which the related premium is earned. The amortization of the excess deferred ceding commissions is recorded as a component of "Ceding commission income" our the consolidated statements of operations.

Certain ceding commissions are subject to sliding scale adjustments based on the actual loss experience of covered insurance contracts. These adjustments often occur well after the ceding commissions are earned based on the development of longer-tail insurance liabilities. In those instances, the commission adjustments are recorded directly as income or loss when determined because they are no longer subject to deferral as the underlying policy periods have ended. Accordingly, in all cases, the Group adjusts ceding commissions as of the reporting date for its best estimate of loss experience for reinsured insurance contracts. Total ceding commission income earned was $249.5 million, $164.2 million and $44.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

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***Direct commission income***

The Group operates its Risk Exchange (within the Exchange Services segment - refer to Note 3), its own insurance agencies (that place insurance coverage through a network of MGAs, including independent, partially owned and wholly owned MGAs) and (re)insurance companies. The Risk Exchange generates revenue primarily through commission paid by affiliated and third-party insurance carriers for various agency services and fees paid by third-party reinsurance brokers for placement services.

The Group's insurance agencies operate through a network of MGAs and third-party claim administrators ("TPAs") that execute various activities on behalf of the Risk Exchange in return for commissions. Transactions among third-parties are reflected in the Group's financial statements, while commissions and other amounts paid by and among wholly-owned entities are eliminated in consolidation.

The Exchange Services segment recognizes revenue as direct commission income on a net basis, with its commission income offset by the commission expense paid to MGAs, reflecting that Exchange Services acts in an agency capacity on behalf of the insurance companies in connection with its performance obligations for underwriting, binding, and placement of insurance coverage.

Exchange Services also acts in a principal capacity for the post-placement obligations such as supporting the adjudication of large claims through management of various third-party administrators which perform claims handling and settlement services.

The Group estimates the stand-alone selling price for each separate performance obligation and allocates the total commission income between the performance obligations. The commissions allocated to the performance obligation of underwriting, binding and placement of insurance coverage are earned upon the effective date of the insurance policy, while the corresponding price allocated to post-placement obligations are recognized over time as the performance obligations are fulfilled on a straight-line basis.

Commissions paid by third-party insurance carriers are also subject to certain contractual clauses that give rise to variable consideration as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions received are subject to adjustment based on the loss experience in the underlying policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commissions are also subject to return if there are cancellations of the underlying policies.

Commission revenue is only recognized to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. A commission refund liability is estimated for the potential return of commissions.

*<u>Legacy business:</u>* Prior to the Group's commencement of underwriting activities in mid-2020, the Group contracted with other (re)insurance companies in exchange for direct commission income. Such legacy business is subject to sliding scale commissions based on loss experience for the subject insurance policies (whereby favorable development will result in incremental commission income and adverse development will result in a reversal of commission income). For the years ended December 31, 2024, 2023 and 2022, total commission (reversals) income due to (adverse) favorable development related to the Group's legacy business was $(9.6) million, $(5.1) million and $6.9 million, respectively. The total commission refund liability associated with this arrangement was $38.8 million and $29.8 million as of December 31, 2024 and 2023, respectively.

The premiums written under the legacy business were fully reinsured with a third-party reinsurance company, which in turn was subject to a quota share retrocession arrangement that included a requirement to post collateral and funds withheld. As of December 31, 2024 and 2023, there were $18.2 million and $20.0 million, respectively, of aggregate funds withheld and collateral under the retrocession contract recognized as an asset within our balance sheet. The balances are reviewed periodically and are adjusted where required, in line with the claims settlement payments and related experience of the retrocession contract.

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***General and administrative expenses***

General and administrative expenses primarily consist of salaries, employee benefits and other general operating expenses and are expensed as incurred.

***Technology and development operating expenses***

Technology and development operating expenses consist primarily of salaries and associated costs of the ongoing development, maintenance and administration of the Risk Exchange technology.

***Other expenses***

Other expenses represent costs related to our non-core business operations, primarily related to our global enterprise resource planning system and integrated financial reporting systems, charges related to stock-based compensation, legal and advisory costs in connection with corporate development activities including mergers and acquisitions, capital raising activities and entity formation costs that support our growing business.

***Income taxes***

The provision for income tax recognized in our consolidated statements of operations consists of current and deferred tax. The calculation of current and deferred tax is based on tax rates and tax laws which have been enacted in the reporting period. The deferred tax assets and liabilities result from temporary differences between the amounts recorded in our consolidated financial statements and the tax basis of assets and liabilities used in the various jurisdictional tax returns.

Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income. This is assessed based on forecasted future operating results, adjusted for significant non-taxable income and expenses, and specific limits on the use of any unused tax losses or credits. A valuation allowance against deferred tax assets is recorded, if it is more likely than not, that all, or some portion of, the benefits related to these deferred tax assets will not be realized.

Deferred tax liabilities are generally recognized in full, with limited exceptions. Potential tax implications of repatriation from our unremitted earnings that are indefinitely reinvested are driven by facts at the time of distribution. Therefore, it is not practicable to estimate the income tax liabilities that might be incurred if such earnings were remitted. We review all tax positions and determine whether our position is more likely than not to be sustained, upon examination by regulatory authorities. Recognized income tax positions are measured at the largest amount, which has a greater than 50 percent likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

We classify all interest and penalties (if any) related to uncertain tax positions as income tax expense. We did not incur any interest and penalties related to uncertain tax positions, for the years ended December 31, 2024, 2023 and 2022. We did not have any unrecognized tax benefits associated with any uncertain tax positions for the year ended December 31, 2024.

***Cash, cash equivalents and restricted cash***

Cash consists primarily of cash on hand and bank deposits. Cash equivalents are short-term, highly liquid investments that mature within three months from the date of acquisition and are stated at amortized cost, which approximates fair value. The Group's restricted cash balances are held in segregated accounts and are legally restricted as to withdrawal or usage.

***Investments***

Short-term investments consist of investments with a maturity greater than three months to one year from the date of purchase and are carried at fair value.

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Investments in fixed maturity securities consist of bonds with a maturity of greater than one year from the date of purchase. The amortized cost basis of fixed maturity securities is adjusted for the amortization of premiums and accretion of discounts. This amortization or accretion is included in periodic income in our consolidated statements of operations. Our investments in fixed maturity securities are considered available-for-sale and are carried at fair value. Changes in the fair value of available-for-sale investments are recognized as a separate component of partners' equity (other comprehensive income (loss)) until realized. Fair value of these investments is estimated using prices obtained from third-party pricing services, where available.

Our equity securities consist of interests in investment funds that primarily invest in debt securities. Equity securities are measured at fair value with changes in fair value recognized in "Net unrealized gains on investments" in our consolidated statements of operations. Dividends on equity securities and other investments are included in "Net investment income" on the ex-dividend date in our consolidated statements of operations. Realized gains and losses on disposition of investments are based on specific identification of investments sold on the trade date. Interest, dividend income and amortization of fixed maturity market premiums and discounts related to these securities are recorded in "Net investment income," net of investment management and custody fees, in our consolidated statements of operations.

We have certain unconsolidated investments where we have significant influence over the operating and financial policies of the investee. We account for these investments under the equity method, whereby we record our proportionate share of income or loss from such investments in our results for the period in "Net investment income" in our consolidated statements of operations. Any decline in value of equity method investments we consider to be other-than temporary is charged to income in the period in which it is determined.

Other investments include investments in limited partnership and private equity investments in operating entities, as well as associated warrants to acquire additional ownership interests, whereby we elected the measurement alternative to carry such investments at cost, less any impairment and to mark to fair value when observable prices in identical or similar investment from the same issuer occur. The Partnership recorded $19.8 million, $12.1 million and $3.5 million of income related to these investments for the years ended December 31, 2024, 2023 and 2022, respectively.

We have elected to classify distributions received from equity method investees using the cumulative earnings approach where distributions received are considered returns on investment and are classified as cash inflows from operating activities unless the amount of cumulative distributions received exceed cumulative earnings and are thereby determined to be returns of investment (that would then be classified as cash inflows from investing activities). Any distribution from investments accounted for under the measurement alternative are classified as investing activities.

***Fair value measurement***

Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date, in the principal or most advantageous market for the asset or liability, in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions, and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These measurements may be made when there is little, if
any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.

We perform valuations for financial reporting purposes. Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of maximizing the use of market-based information.

We use prices from independent pricing vendors to determine fair value estimates of investment funds, which are based on quoted prices in an active market and are disclosed as Level 1. Our internal price validation procedures and review of fair value methodology documentation provided by independent pricing vendors has not historically resulted in adjustments to the prices obtained from the pricing service. The independent pricing services used by our vendors obtain actual transaction prices for securities that have quoted prices in active markets. We derive the fair value of fixed maturity securities principally from market price data for identical assets from exchange or dealer markets and from market observable inputs such as interest rates and yield curves that are observable at commonly quoted intervals and are disclosed as Level 2. Rights to acquire equity interests, including warrants, are disclosed as Level 3 due to the use of significant unobservable inputs. We use valuation techniques that rely on internally developed models and reported values from investment managers rather than quoted prices or observable market data. The market for these investments is illiquid and there is no active market.

***Premiums receivable***

Premiums receivable include insurance premiums that are both amounts currently due and not yet due from policyholders as well as amounts due from agents. The balance is reported net of a valuation allowance for expected credit losses. Such allowance is based upon ongoing review of amounts outstanding, the length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. As of December 31, 2024 and 2023, the Group had valuation allowance for expected credit losses of $2.4 million and $2.7 million, respectively.

***Goodwill and other intangible assets***

Goodwill represents the excess of acquisition costs over the net fair value of identifiable assets acquired and liabilities assumed in a business combination at the date of acquisition. Goodwill is allocated to reporting units based on the expected benefit from the business combination. Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. If the goodwill asset is determined to be impaired, it is written down in the period in which the determination is made.

We perform our annual goodwill impairment assessment as of October 1 each year, or more frequently if indicators of impairment exist. For goodwill impairment testing, we have the option to first assess qualitative factors to determine whether it is more likely than not (i.e., more than a 50 percent probability) that the fair value of the reporting unit is greater than the carrying amount. If our assessment indicates less than a 50 percent probability that the fair value of a reporting unit is greater than the carrying value or otherwise we elect to bypass the qualitative assessment, we quantitatively estimate the reporting unit's fair value. If the carrying value of the reporting unit exceeds its estimated fair value, we recognize an impairment loss for the amount by which the reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit.

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We determine the fair value of the reporting units using the income approach or the market approach. Under the income approach, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. We prepare cash flow projections based on our estimates of revenue growth rates and operating margins, taking into consideration the historical performance and the current macroeconomic industry and market conditions. Under the market approach, we estimate fair value based on market multiples of earnings, derived from comparable publicly traded companies, with similar characteristics as the reporting unit.

Other intangible assets include finite-lived intangible assets that relate to customer relationships and trademarks. Finite-lived intangible assets are recognized at fair value on the acquisition date and amortized over their estimated useful lives. Finite-lived intangible assets are amortized using the straight-line method over their estimated useful lives, generally five to fifteen years, and are reviewed for impairment when events and circumstances indicate that their carrying value may not be recoverable. Estimated useful lives of finite-lived intangible assets are required to be reassessed on at least an annual basis.

Other indefinite-lived intangible assets relate to insurance licenses and are not amortized. We test such assets for impairment annually as of October 1 or more frequently when events and circumstances indicate that their carrying value may not be recoverable.

***Capitalized technology development costs***

We develop internal-use software and implements cloud-computing arrangement software. We capitalize certain of those costs based on the nature of the development activities being performed, including coding, software installation, testing and significant upgrades or enhancements to existing software that result in additional functionality. Costs capitalized to develop internal-use software are amortized using the straight-line method over the estimated useful life, which we generally estimate to be five years, beginning when the software is substantially complete and ready for its intended use. Costs capitalized to implement cloud computing arrangements, are amortized over the term of the hosting arrangement using the straight-line method. Costs associated with activities not described above are expensed as incurred.

We periodically assess the capitalized software's estimated useful lives and potential impairment indicators when there is risk such costs may not be recoverable.

***Unpaid losses and loss adjustment expenses***

The reserves for losses and LAE include estimates for unpaid claims and claim expenses on reported losses as well as an estimate of losses incurred but not reported ("IBNR"). It represents management's best estimate of the unpaid portion of ultimate costs, of all reported and unreported loss incurred through the balance sheet date and is based upon the assumption that past developments are an appropriate indicator of future events amongst other factors. The reserves are based on individual claims, case reserves and other reserves estimates reported, as well as actuarial estimates of ultimate losses.

Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled. Ultimate losses may vary materially from the amounts provided in our consolidated financial statements. These estimates are reviewed regularly and as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any, are reflected in our consolidated statements of operations in the period in which they become known and we account for them as changes in estimates. The unpaid losses and LAE are presented on an undiscounted basis.

The process of establishing unpaid losses and LAE can be complex and is subject to considerable uncertainty, as it requires the use of informed estimates and judgments based on circumstances known at the date of accrual. Our estimates and judgments are based on numerous factors and may be revised as additional experience and other data become available and are reviewed as new or improved methodologies are developed. The adequacy of the

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reserves may be impacted by future trends in claims severity, frequency, payment patterns and other factors. These variables are affected by both external and internal events, including but not limited to, changes in the economic cycle, inflation, natural or human-made catastrophes and legislative changes.

Total IBNR reserves are determined by subtracting payments and case reserves implied from the ultimate loss and LAE estimates. Ultimate loss and LAE are estimated utilizing generally accepted actuarial loss reserving methods. The reserving methods employed by the Group include the Chain Ladder, Bornheutter-Ferguson and Initial Expected Loss Ratio methods. Reportable catastrophe losses are analyzed and reserved separately using a frequency and severity approach. The methods all involve aggregating paid and case-incurred loss data by underwriting year and development month, segmented into MGAs and products or lines of business as deemed appropriate and material. The ultimate loss selections for each year tend to be based upon the Chain Ladder results for the older years and the Bornheutter-Ferguson method for the most recent years.

Because the Group has limited data to assess its own claims experience given the recently formed nature of the business, the Group uses industry and peer-group data, in addition to its own data, as a basis for selecting its expected paid and reporting patterns.

The recorded reserves represent the best estimate of ultimate liabilities, based on currently known facts, current law, current technology, and reasonable assumptions where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

***Reinsurance recoverables and payables***

The Group's insurance companies use reinsurance to mitigate exposure to losses arising from direct insurance policies, limit liability on specific risks and catastrophes and to stabilize loss experience. The Group also utilizes reinsurance to manage capital (both regulatory and operational) and solvency and as a mechanism to pool risks to maximize diversity of the portfolio.

The Group purchases various types of reinsurance, including excess of loss contracts (that protect against losses above stipulated amounts) together with quota share contracts (to provide cover for adverse losses on a total portfolio basis). Certain of these reinsurance contracts include risk limiting features, such as loss limits, sliding scale commissions and reinstatement provisions. Risk tolerance is set based on a low probability of exceeding loss limitations. The Group closely monitors its exposures against the available reinsurance to ensure adequate protection. The impact of the sliding scale commission adjustments following adverse loss experience (resulting in a return of ceding commission to the reinsurers and therefore an offset to the benefit of reinsured losses) could be material to the Group.

Premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Amounts applicable to reinsurance ceded for unearned premiums are reported as Ceded unearned premiums in our consolidated balance sheet.

Certain reinsurance contracts purchased by the Group are retroactive (and take the form of a loss portfolio transfer), whereby the reinsurer agrees to reimburse the Group because of past insurable events. When a reinsurance contract does not transfer significant insurance risk, the Group accounts for the premium paid (net of any amount of premium that will be retained by the reinsurer) as a deposit asset in reinsurance recoverables within our consolidated balance sheets. The amount of the initial deposit asset is adjusted in subsequent reporting periods by calculating an effective yield on the deposit based on actual and expected future payments. Such adjustments are reported as interest income within "Net investment income" in our consolidated statements of operations.

Reinsuring loss exposures does not relieve the Group from its obligation to policyholders in the event of nonperformance by the reinsurers, thus a credit and / or dispute exposure exists to the extent that any reinsurer is

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unable to meet the obligation assumed in the reinsurance agreements. To mitigate this exposure to reinsurer insolvencies, the Group evaluates the financial condition of its reinsurers and typically holds collateral, in the form of funds withheld, trusts and letters of credit, as security under the reinsurance agreements.

Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the insured business. Reinsurance premiums, commissions, and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts.

The Group assesses its reinsurance assets for recoverability on a regular basis. If there is objective evidence that the reinsurance asset is not recoverable due to reinsurer insolvency, a contractual dispute, or other reasons, the Group reduces the carrying amount of the reinsurance asset to its recoverable amount and recognizes that loss in our consolidated statements of operations.

The Group may periodically enter commutation agreements with its reinsurers. Such agreements result in the termination of all or part of a reinsurance agreement whereby the Group would assume the obligation to insure the previous loss reserves subject to the reinsurance agreement in exchange for cash or other consideration. Upon execution of a commutation agreement, the Group reassumes the risk of liabilities for losses previously ceded to the reinsurer, while the reinsurer is generally released of its obligations under the commuted (legally extinguished) portions of the reinsurance agreement. The Group's insurance subsidiaries that originally ceded the insurance business account for a commutation by eliminating their existing reinsurance recoverable and recognizing a gain or loss for the difference between the consideration received and the previously recognized reinsurance recoverable.

*<u>Flywheel Re:</u>* The Group has entered into a quota share agreement, where it cedes certain insured risks to Flywheel Re Ltd. ("Flywheel Re"). Flywheel Re is a Class C Insurer licensed in the Cayman Islands and is a special purpose reinsurance company that provides multi-year collateralized quota share capacity to the Group backed by long-term institutional investors. Flywheel Re is not consolidated in the Group's consolidated financial statements because the Group i) does not have the power over the activities that most significantly impact Flywheel Re's economic performance, and ii) it is wholly-owned by third-party investors. Each investor group in Flywheel Re purchased preferred shares in a segregated portfolio owned solely by such investor group. The purchase price of the preferred shares was then pledged as collateral to Accelerant Re (Cayman) Ltd. ("Accelerant Re"), the cedent to Flywheel Re under each applicable reinsurance agreement. Accelerant Re cedes premium and losses in accordance with the terms of the applicable reinsurance agreement, to Flywheel Re and all investors are obligated to accept such premium and losses over the course of three underwriting years. The Group's reinsurance arrangements with Flywheel Re have been contracted on an arm's-length basis.

***Funds held under reinsurance***

Certain of the Group's reinsurance contracts provide for an arrangement where, rather than making a cash payment or transferring investments for ceded premiums written, The Group holds the related amounts as assets to collateralize the reinsurer's obligations and establishes corresponding funds held under reinsurance liabilities.

***Concentrations of credit risk***

Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of cash and cash equivalents. Cash and cash equivalents are held with financial institutions of high quality. For equity securities and fixed maturity securities, we manage our credit risk through diversification in terms of instruments by issuer, geographic region and related industry.

The ceding of insurance through the Group's reinsurance partners does not legally discharge the Group from its primary liability for the full amount of the policy coverage. The Group will be required to pay the loss and bear

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the collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement. To minimize exposure to significant losses from reinsurance insolvencies, The Group evaluates the financial condition of its reinsurers and monitors both individual, and concentrations of, credit risk. Refer to Note 8 for more information on how the Group manages credit risk related to its reinsurance recoverables.

***Segment information***

The Partnership's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer ("CEO") of the Group. The CODM has authority and executive oversight over operating decisions and resource allocations such as significant business strategy decisions, capital expenditures, the budget and forecasting processes and all new material ventures and contracts. Additionally, the CODM drives the execution of these activities and reviews operating results to assess performance and makes resource allocation decisions. Each segment has a segment manager who reports directly to the CODM.

Adjusted EBITDA, a non-GAAP financial measure, is the primary measure of segment profit and loss reviewed by the CODM and is intended to measure the performance of segments, which the CODM utilizes to allocate our resources. We define Adjusted EBITDA as net income (loss) adjusted to remove the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses. We believe the exclusion of the impact of interest, income taxes, depreciation, amortization, net foreign currency exchange gains (losses) and other expenses is pertinent to understanding our performance attributable to our core operating activities, as well as comparability to prior periods and peers. Segment Adjusted EBITDA also excludes certain costs that are not allocated to segments because they are separately managed at the consolidated corporate level. The unallocated costs primarily include general and administrative expenses such as those incurred in the legal and accounting functions.

Refer to Note 3 for more information on our segments.

***Partners' redeemable preference shares***

AHLP has issued various financial instruments, including convertible preference shares. The preference shares are evaluated for mandatorily redeemable and potential liability classification. We accounts for instruments containing redemption rights that are either within the control of the preference shareholder or subject to redemption upon the occurrence of uncertain events not solely within our control within mezzanine equity. Any instruments containing holder redemption rights or that are deemed probable of redemption are remeasured to their maximum redemption value as of each reporting date.

***Convertible preference shares***

Accelerant Holdings has issued convertible preference shares that are evaluated for features that may result in their characterization as permanent equity, temporary equity (often referred to as "mezzanine equity"), or a liability.

The Class A and Class B preference shares are recorded at their respective fair values on the dates of issuance, net of issuance costs, within permanent equity. Such convertible preference shares are subject to actual liquidation or deemed liquidation events, such as an initial public offering of common shares of Accelerant Holdings, or a sale of Accelerant Holdings. The Class A and Class B shares are recorded as a component of permanent equity because, while they are subject to redemption on the occurrence of any such liquidation events, all of the holders of equally or more subordinated equity instruments of Accelerant Holdings are also entitled to receive the same form of consideration (for example, cash or shares) upon the occurrence of the event that gives rise to the redemption (that is, all classes of shares subordinate to the Class A and Class B preference shares would also be entitled to be redeemed).

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The Class C preference shares were issued with contingently issuable detachable warrants that only become exercisable on the non-occurrence of an initial public offering or other liquidation event within two years of issuance of the Class C preference shares. Such warrants are equity-linked instruments and are considered issued for accounting purposes. The Class C preference shares and contingently detachable issuable warrants at their relative fair values on the date of issuance, net of issuance costs, within temporary equity and additional paid in capital, respectively. The Class C preference shares are recorded in temporary equity as they contain redemption rights that are contingent upon the occurrence of actual liquidation or deemed liquidation events of Accelerant Holdings, such as an initial public offering of common shares of Accelerant Holdings, or a sale of Accelerant Holdings, that are not solely within Accelerant Holdings' control, and that such redemption rights are not available to other holders of equally or more subordinated equity instruments of Accelerant Holdings. The Class C preference shares were deemed probable of conversion to common shares when considering both the expected timing and nature of events giving rise to the redemption or conversion rights of the holders of such Class C preference shares at the date of issuance. In subsequent periods, if the Class C preference shares are not converted to common shares and the condition for redemption is met, Accelerant Holdings will recognize the redemption value immediately. The difference in redemption value from carrying value will be reflected as a deemed dividend and an increase of the Class C preference shares, as well as a corresponding reduction to additional paid in capital and earnings per share. The Class C preference shares would then be subject to cash settlement. If the warrants are never issued, there is no adjustment to the previous amounts in additional paid in capital. If the warrants are issued and are subsequently exercised for common shares, the amount of consideration paid for the exercise price becomes a component of incremental additional paid in capital and par value of the common shares when such common shares are issued in exchange for the warrants.

We reflect these shares as non-controlling interests within our financial statements as the convertible preference shares were issued by Accelerant Holdings, as a consolidated subsidiary, not Accelerant Holdings LP.

***Contingent liabilities***

We record contingent liability provisions when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

**Share-based compensation** 

Share options we have awarded to employees are measured at fair value at each grant date. We calculate the fair value of the share options using a weighted-average of values derived using the Black-Scholes and Hull-White option-pricing models. The Hull-White model is a trinomial lattice model that incorporates the impact of expected employee exercise behavior to estimate the option value.

Use of such option-pricing models requires us to make several assumptions, including the value of our common shares, estimated equity volatility and expected term to exercise. We evaluate all assumptions employed in the valuation of the share option awards as of each grant date. We estimate volatility based upon comparison to certain publicly traded companies. We determine an expected option term for each hypothetical scenario based on contractual term and exercise probability assumptions, as we do not have sufficient historical data to develop an estimate based upon participant behavior. We use a risk-free interest rate equal to the US treasury bond yield with an equivalent period as the expected option term.

We recognize share-based compensation expense over the requisite service period for awards using the straight-line method and recognize forfeitures as they occur.

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***Recent accounting pronouncements***

***Recently adopted accounting pronouncements***

*<u>Measurement of credit losses:</u>* On January 1, 2023, we adopted Accounting Standards Update ("ASU") 2016-13, *Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments*, issued by the Financial Accounting Standards Board ("FASB") in June 2016. The ASU replaced the "incurred loss" approach that was previously applied to determine credit losses with an "expected loss" model for financial instruments measured at amortized cost. The expected loss model changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, premiums receivable and reinsurance recoverables. Our valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Financial assets, as well as available for sale securities, are now presented on the financial statements net of the valuation allowance.

We analyzed our reinsurance recoverables, including the current credit quality and credit outlook for reinsurers with at-risk uncollateralized receivable balances. In assessing premium receivables, which are short-term in nature, we assessed customer balances leveraging our current process for analyzing collectability of premium receivables. The adoption of the ASU did not have a material impact on our consolidated financial statements and disclosures and no adjustment to the beginning balance of retained earnings was required upon adoption.

*<u>Segment Reporting:</u>* In November 2023, the FASB issued ASU 2023-07, *Segment Reporting, Improvements to Reportable Segment Disclosures*. to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profits or losses in assessing segment performance. We adopted ASU 2023-07 in our annual financial statements for the year ended December 31, 2024, which was applied retrospectively to all prior periods presented. Refer to Note 3 for the expanded segment disclosures.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued an ASU requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

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*<u>Income Tax:</u>* In December 2023, the FASB issued an ASU to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively.

**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 the CODM assesses performance of the business and makes decisions on the allocation of resources.

***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 and that facilitate the exchange of risk. Insurance companies that join the Risk Exchange pay Accelerant a fixed volume-based fee for sourcing, managing, and monitoring the business they write, and the Risk Exchange pays commissions to Members for the distribution services provided to both consolidated affiliates and third parties. We eliminate net commissions, 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

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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 VOE). For further information on our acquisition of Mission, refer to Note 6.

The Owned Members reporting unit comprises MGAs in which the Partnership 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. 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 years ended December 31, 2024, 2023 and 2022. Corporate functions and certain other businesses and operations are included in Corporate and Other.

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##### [**Table of Contents**](#toc)
***Financial information by segment:***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $82.0 | $82.0 | $— | $167.5 | $249.5 |
|  Net earned premiums |  |  | 226.6 | 226.6 |  |  | 226.6 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 199.7 | 99.4 |  | 299.1 |  | (299.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 21.9 | 44.8 |  | 66.7 |  |  | 66.7 |
|  Net investment income | 1.1 | 4.2 | 32.6 | 37.9 | 1.2 |  | 39.1 |
|  Net realized gains on investments |  | 1.3 | 0.6 | 1.9 |  |  | 1.9 |
|  Net unrealized (losses) gains on investments |  |  | (0.7) | (0.7) | 19.7 |  | 19.0 |
|  **Segment revenues** | **222.7** | **149.7** | **341.1** | **713.5** | **20.9** | **(131.6)** | **602.8** |
|  Losses and loss adjustment expenses |  |  | 167.3 | 167.3 |  |  | 167.3 |
|  Amortization of deferred acquisition costs |  |  | 104.2 | 104.2 |  | (22.8) | 81.4 |
|  General and administrative expenses <sup>(3) (4)</sup> | 51.6 | 105.6 | 90.5 | 247.7 | 36.9 | (56.7) | 227.9 |
|  Technology and development operating expenses | 13.4 |  |  | 13.4 |  |  | 13.4 |
|  **Adjusted EBITDA** | $**157.7** | $**44.1** | $**(20.9)** | $**180.9** | $**(16.0)** | $**(52.1)** | $**112.8** |
|  Interest expenses |  |  |  |  |  |  | (12.1) |
|  Depreciation and amortization |  |  |  |  |  |  | (26.6) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (47.4) |
|  Net foreign exchange gains |  |  |  |  |  |  | 4.8 |
|  **Income before income taxes** |  |  |  |  |  |  | $**31.5** |

---

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

<sup>(2)</sup> 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 9.

<sup>(3)</sup> 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: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $26.5 | $74.3 | $30.8 | $131.6 |
|  Consulting and professional fees | 5.6 | 8.8 | 15.0 | 29.4 |
|  Other administrative expenses | 19.5 | 22.5 | 44.7 | 86.7 |
|  **Total general and administrative expenses** | $**51.6** | $**105.6** | $**90.5** | $**247.7** |

---

<sup>(4)</sup> The consolidation and elimination adjustments for general and administrative expenses consist of i) $30.8 million of expenses attributable to Exchange Services and MGA Operations that form components 

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of acquisition costs of insurance policies that would be capitalized in consolidation; and ii) $25.9 million of fees for platform services provided by the Risk Exchange that are expensed by Underwriting and recorded as revenue by Exchange Services. There are offsetting adjustments as components of the other consolidation and elimination adjustments.

<sup>(5)</sup> Other expenses for the year ended December 31, 2024 consist of $14.7 million of system development non-operating expenses, $13.1 million of professional costs related to corporate development activities, $8.4 million of share-based compensation, $7.0 million of Mission profits sharing expense and $4.2 million of individually insignificant costs. 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $78.4 | $78.4 | $— | $85.8 | $164.2 |
|  Net earned premiums |  |  | 105.1 | 105.1 |  |  | 105.1 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 107.7 | 76.9 |  | 184.6 |  | (184.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 14.5 | 23.1 |  | 37.6 |  |  | 37.6 |
|  Net investment income | 1.1 | 2.8 | 12.1 | 16.0 | 3.3 |  | 19.3 |
|  Net realized gains on investments |  |  | 0.5 | 0.5 |  |  | 0.5 |
|  Net unrealized gains on investments |  | 9.3 | 5.2 | 14.5 | 2.8 |  | 17.3 |
|  **Segment revenues** | **123.3** | **112.1** | **201.3** | **436.7** | **6.1** | **(98.8)** | **344.0** |
|  Losses and loss adjustment expenses |  |  | 80.3 | 80.3 |  |  | 80.3 |
|  Amortization of deferred acquisition costs |  |  | 68.4 | 68.4 |  | (18.5) | 49.9 |
|  General and administrative expenses <sup>(3) (4)</sup> | 27.7 | 80.6 | 56.0 | 164.3 | 31.7 | (26.8) | 169.2 |
|  Technology and development operating expenses | 8.5 |  |  | 8.5 |  |  | 8.5 |
|  **Adjusted EBITDA** | $**87.1** | $**31.5** | $**(3.4)** | $**115.2** | $**(25.6)** | $**(53.5)** | $**36.1** |
|  Interest expenses |  |  |  |  |  |  | (10.9) |
|  Depreciation and amortization |  |  |  |  |  |  | (14.5) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (51.1) |
|  Net foreign exchange losses |  |  |  |  |  |  | (3.5) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(43.9)** |

---

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

<sup>(2)</sup> 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 9.

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##### [**Table of Contents**](#toc)
<sup>(3)</sup> 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: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $12.2 | $55.8 | $30.8 | $98.8 |
|  Consulting and professional fees | 2.5 | 5.9 | 11.7 | 20.1 |
|  Other administrative expenses | 13.0 | 18.9 | 13.5 | 45.4 |
|  **Total general and administrative expenses** | $**27.7** | $**80.6** | $**56.0** | $**164.3** |

---

<sup>(4)</sup> 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. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2023 consists of $22.9 million of system development non-operating costs, $16.2 million of professional costs related to corporate development activities, $4.8 million of share-based compensation, and $7.2 million of individually insignificant costs. 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other<sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  Revenues |  |  |  |  |  |  |  |
|  Ceding commission (adjustments) income <sup>(2)</sup> | $— | $— | $(12.2) | $(12.2) | $— | $56.5 | $44.3 |
|  Net earned premiums |  |  | 141.2 | 141.2 |  |  | 141.2 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 84.4 | 41.8 |  | 126.2 |  | (126.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 17.4 | 17.1 |  | 34.5 |  |  | 34.5 |
|  Net investment income | 0.1 | 1 | 1.5 | 2.6 |  |  | 2.6 |
|  Net realized losses on investments |  |  | (3.9) | (3.9) |  |  | (3.9) |
|  Net unrealized (losses) gains on investments |  |  | (3.2) | (3.2) | 3.5 |  | 0.3 |
|  **Segment revenues** | **101.9** | **59.9** | **123.4** | **285.2** | **3.5** | **(69.7)** | **219.0** |
|  Losses and loss adjustment expenses |  |  | 99.5 | 99.5 |  |  | 99.5 |
|  Amortization of deferred acquisition costs |  |  | 58 | 58 |  | (23.0) | 35 |
|  General and administrative expenses <sup>(3) (4)</sup> | 18.1 | 52.6 | 47.1 | 117.8 | 13.4 | (15.1) | 116.1 |
|  Technology and development operating expenses | 8.2 |  |  | 8.2 |  |  | 8.2 |
|  **Adjusted EBITDA** | $**75.6** | $**7.3** | $**(81.2)** | $**1.7** | $**(9.9)** | $**(31.6)** | $**(39.8)** |
|  Interest expenses |  |  |  |  |  |  | (4.3) |
|  Depreciation and amortization |  |  |  |  |  |  | (5.8) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (33.5) |
|  Net foreign exchange losses |  |  |  |  |  |  | (1.7) |
|  **Loss before income taxes** |  |  |  |  |  |  | $**(85.1)** |

---

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##### [**Table of Contents**](#toc)
<sup>(1)</sup> Corporate and Other includes shared services and other activities, which represent business activities that do not meet the definition of a reportable segment.

<sup>(2)</sup> 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 9.

<sup>(3)</sup> 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: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $10.1 | $39.0 | $31.2 | $80.3 |
|  Consulting and professional fees | 2.1 | 4.9 | 9.7 | 16.7 |
|  Other administrative expenses | 5.9 | 8.7 | 6.2 | 20.8 |
|  **Total general and administrative expenses** | $**18.1** | $**52.6** | $**47.1** | $**117.8** |

---

<sup>(4)</sup> 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. 

<sup>(5)</sup> Other expenses for the year ended December 31, 2022 consists of $11.4 million of system development non-operating costs, $8.7 million of previously deferred costs related to a potential securities issuance that were expensed when the Group suspended those efforts due to adverse equity market conditions in 2022, $5.6 million of professional costs related to corporate development activities, $4.8 million of costs related to the formation of Flywheel Re, and $3.1 million of other 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 years ended December 31, 2024, 2023 and 2022.

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The following table presents our revenues by geography:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $151.2 | $98.3 | $249.5 |
|  Net earned premiums | 165.3 | 61.3 | 226.6 |
|  Direct commission income | 41.9 | 24.8 | 66.7 |
|  Net investment income | 21.2 | 17.9 | 39.1 |
|  Net realized gains on investments |  | 1.9 | 1.9 |
|  Net unrealized gains (losses) on investments | 19.8 | (0.8) | 19.0 |
|  **Total revenues** | $**399.4** | $**203.4** | $**602.8** |

---

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $81.5 | $82.7 | $164.2 |
|  Net earned premiums | 77.9 | 27.2 | 105.1 |
|  Direct commission income | 18.6 | 19.0 | 37.6 |
|  Net investment income | 11.6 | 7.7 | 19.3 |
|  Net realized gains on investments | 0.2 | 0.3 | 0.5 |
|  Net unrealized gains on investments | 12.1 | 5.2 | 17.3 |
|  **Total revenues** | $**201.9** | $**142.1** | $**344.0** |

---

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income (adjustments) <sup>(1)</sup> | $48.3 | $(4.0) | $44.3 |
|  Net earned premiums | 46.0 | 95.2 | 141.2 |
|  Direct commission income | 2.0 | 32.5 | 34.5 |
|  Net investment income | 1.3 | 1.3 | 2.6 |
|  Net realized losses on investments |  | (3.9) | (3.9) |
|  Net unrealized gains (losses) on investments | 3.4 | (3.1) | 0.3 |
|  **Total revenues** | $**101.0** | $**118.0** | $**219.0** |

---

<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the years ended December 31, 2024, 2023 and 2022 resulting from the loss experience of covered insurance contracts, refer to Note 9.

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**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair value** |
|  Corporate | $30.6 | $0.3 | $(0.3) | $30.6 |
|  US government and agency | 32.2 | 0.2 | (0.3) | 32.1 |
|  Non-US government and agency | 2.5 | 0.1 |  | 2.6 |
|  Residential mortgage-backed | 19.0 | 0.1 | (0.7) | 18.4 |
|  Commercial mortgage-backed | 2.8 | **—** |  | 2.8 |
|  Other asset-backed securities | 8.0 | **—** |  | 8.0 |
|  **Total fixed maturity and short-term investments** | $**95.1** | $**0.7** | $**(1.3)** | $**94.5** |

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The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $6.9 | $(0.1) | $7.2 | $(0.2) | $14.1 | $(0.3) |
|  US government and agency | 9.5 | (0.3) | 1.1 |  | 10.6 | (0.3) |
|  Residential mortgage-backed | 4.3 | (0.2) | 6.9 | (0.5) | 11.2 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**20.7** | $**(0.6)** | $**15.2** | $**(0.7)** | $**35.9** | $**(1.3)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at December 31, 2024 and 2023 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $105.6 | $104.6 |
|  Due after one year through five years | 277.0 | 275.0 |
|  Due after five years through ten years | 76.4 | 75.0 |
|  Due after ten years | 6.5 | 6.2 |
|  Residential mortgage-backed | 44.4 | 43.0 |
|  Commercial mortgage-backed | 18.6 | 18.4 |
|  Other asset-backed securities | 22.1 | 22.1 |
|  **Total** | $**550.6** | $**544.3** |

---

The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

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***Equity securities, at fair value***

Our investments in equity securities consisted of mutual funds that primarily invest in high-grade debt securities and were as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Equity securities, at fair value** | $**—** | $**116.7** |

---

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused TPA that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

Details regarding our equity method investments were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs | 19.0% - 20.0 | $11.0 | 19.0% - 20.0 | $12.7 |
|  Other | 9.4% - 15.0 | 7.2 | 9.4% | 3.0 |
|  **Equity method investments** |  | $**18.2** |  | $**15.7** |

---

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of December 31, 2024, we had unfunded commitments of $2.0 million to our equity method investees.

For the years ended December 31, 2024 and 2023, we received dividends from equity method investees of $1.7 million and $0.8 million, respectively. For the year ended December 31, 2022, we did not receive any dividends from equity method investees.

Details regarding the carrying value of our other investments portfolio were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $26.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 19.1 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  | 0.3 |
|  **Other investments** | $**45.3** | $**25.5** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

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##### [**Table of Contents**](#toc)
For the year ended December 31, 2024, we recorded $19.8 million of income as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2023, we recorded $12.1 million of income, net of $0.2 million of impairments, as a component of unrealized gains following observable prices related to these investments. For the year ended December 31, 2022, we recorded $3.5 million of income as a component of unrealized gains following observable prices related to these investments. We have recognized cumulative income as a component of unrealized gains of $35.4 million, net of $0.2 million of impairments, associated with investments accounted for under the measurement alternative from inception of the related investments.

***Net investment income***

Investment income and expenses were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Income from equity method investments | $2.3 | $2.9 | $1.0 |
|  Interest on fixed maturity investments | 14.8 | 2.9 | 1.2 |
|  Interest on cash and cash equivalents | 22.6 | 13.8 | 0.8 |
|  **Gross investment income** | **39.7** | **19.6** | **3.0** |
|  Investment expenses | (0.6) | (0.3) | (0.4) |
|  **Net investment income** | $**39.1** | $**19.3** | $**2.6** |

---

***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Net realized gains on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.2 | $0.4 | $(1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on equity securities sold during the year | 0.5 | 0.1 | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 1.2 |  |  |
|  **Net realized gains (losses) on investments** | $**1.9** | $**0.5** | $**(3.9)** |
|  **Net unrealized gains (losses) on investments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (losses) gains on equity securities held at the reporting date | (0.8) | 5.2 | (3.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund | 8.0 | 3.0 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 11.8 | 9.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on other investments | 19.8 | 12.1 | 3.5 |
|  **Net unrealized gains on investments** | $**19.0** | $**17.3** | $**0.3** |
|  **Net realized and unrealized gains (losses) on investments** | $**20.9** | $**17.8** | $**(3.6)** |

---

<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

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##### [**Table of Contents**](#toc)
***Regulated deposits and restricted assets***

Certain companies in the Group are required to maintain assets on deposit with various regulatory authorities to support the Group's insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of both December 31, 2024 and 2023, which are included in the "Fixed maturity securities available for sale, at fair value" in our consolidated balance sheets.

In addition, the Group has pledged cash and cash equivalents of $47.3 million, short-term investments of $17.2 million and fixed maturity securities of $33.0 million as of December 31, 2024 in favor of certain ceding companies to collateralize obligations. There were no such pledged assets as of December 31, 2023.

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##### [**Table of Contents**](#toc)
***5. Fair value measurements***

***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $174.0 | $— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | **—** | **544.3** | **—** | **544.3** |
|  **Total assets measured at fair value** | $**—** | $**544.3** | $**—** | $**544.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  **Fixed maturity and short-term investments:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $30.6 | $— | $30.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 32.1 |  | 32.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 2.6 |  | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 2.8 |  | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 8.0 |  | 8.0 |
|  **Total fixed maturity and short-term investments** | **—** | **94.5** | **—** | **94.5** |
|  Equity securities, at fair value | 116.7 |  |  | 116.7 |
|  **Total assets measured at fair value** | $**116.7** | $**94.5** | $**—** | $**211.2** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the years ended December 31, 2024, 2023 and 2022.

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##### [**Table of Contents**](#toc)
***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $— | $— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $— | $— | $14.2 | $14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture fund |  |  | 11.0 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate |  |  | 0.3 | 0.3 |
|  **Total** | $**—** | $**—** | $**25.5** | $**25.5** |

---

***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>****:*** As further described in Note 14, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of December 31, 2024 and 2023. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of December 31, 2024 and 2023.

**6. Variable interest entities** 

***VIEs***

In the normal course of our business activities, we enter into relationships with various entities that are deemed to be VIEs. A VIE is an entity that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has equity investors that lack characteristics of a controlling financial interest (including the ability to
control activities of the entity, the obligation to absorb the entity's expected losses and the right to receive the entity's expected residual returns); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lacks sufficient equity to finance its own activities without additional subordinated financial support.

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##### [**Table of Contents**](#toc)
We consolidate a VIE when we determine that we are the primary beneficiary of that VIE. This analysis includes a review of the VIE's capital structure, related contractual relationships and terms, nature of the VIE's operations and purpose, nature of the VIE's interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders.

We are the primary beneficiary if we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the power to direct activities of the VIE that most significantly impact the economic performance of the VIE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to
receive benefits from the VIE that could potentially be significant to the VIE.

***Mission***

Mission, formed in 2021, operates in the US (Mission Underwriting Holdings, LLC, or "Mission US") and in the EU (Mission Holdings Europe Ltd. or "Mission EU"). Each of Mission US and Mission EU operates, pursuant to local licenses as required by its jurisdiction of organization, to support experienced underwriters by providing insurance regulatory, technical infrastructure and product development expertise to them. Each Mission entity was funded principally with loans advanced by the Group in the form of subordinated debt and other working capital arrangements, although at the time of formation ACP Holdings LP ("ACP Holdings") provided the initial equity capital and until 2024 held all the equity of each of Mission US and Mission EU. Also at the time of formation of Mission US and Mission EU, ACP Holdings granted the Group an option to acquire each of Mission US and Mission EU.

On May 1, 2024, the Group closed on its acquisition of each of Mission US and Mission EU which the Group initiated by exercising its options. As described in more detail below, Mission was previously a consolidated VIE given financial support and variable interest considerations. Because Mission was previously consolidated within the Group's financial statements, the exercise of the call option was accounted for as an equity transaction.

The consideration paid by the Group to Accelerant Holdings LP took the form of 6,938 common shares in Accelerant Holdings. Additionally, as an anti-dilutive measure, and in recognition of the fact that the holders of the Group's Class A and Class B convertible preference shares at the time such investments were made had relied on the inclusion of Mission within the Group's results of operations, holders of the Group's Class A and B convertible preference shares received an additional 875 shares and 525 shares, respectively, in each case without further consideration being paid. The total consideration had a fair value of $7.0 million.

The excess fair value of the consideration paid by Accelerant Holdings as compared to the carrying value of the acquired non-controlling interest in Mission is reflected as a reduction in additional paid-in capital of Accelerant Holdings of $39.3 million, with a corresponding increase of non-controlling interests of $39.9 million in the Group's consolidated statements of equity for the year ended December 31, 2024. Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Group.

However, since the interests in Mission were acquired using shares issued by Accelerant Holdings, they are classified as Non-controlling interests: other interests in our consolidated balance sheets.

Prior to May 1, 2024, Mission was determined to be a VIE, as it lacked sufficient equity at risk and was primarily financed with the Group's subordinated debt. As a result of this determination, the Group assessed whether it was the primary beneficiary and, thus, would be required to consolidate Mission. The Group was exposed to a significant amount of income and losses of Mission and the Group had the substantive power to direct the activities that most significantly impacted Mission. On this basis, the Group had determined that it was the primary beneficiary of Mission and consolidated it.

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##### [**Table of Contents**](#toc)
The following table presents the total assets and total liabilities (after elimination of intercompany balances) associated with the Partnership's variable interest in Mission as reported in our consolidated balance sheets as of December 31, 2023.

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2023** |
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | $30.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | 49.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 0.9 |
|  **Assets of consolidated VIEs** | $**107.5** |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | $4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 18.2 |
|  **Liabilities of consolidated VIEs** | $**22.3** |

---

**7. Revenue from contracts with customers** 

The following table presents our revenues from contracts with third parties by geographical market. All revenue from contracts with customers is generated by our Exchange Services and MGA Operations segments, specifically by owned MGAs that provide insurance products and services to third party insurers that is not subject to elimination in consolidation. The tables below also include the revenues from our legacy business referenced in Note 2.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $41.9 | $16.6 | $58.5 |
|  Loss experience adjustments |  | (9.6) | (9.6) |
|  Other revenue |  | 17.8 | 17.8 |
|  **Direct commission income** | $**41.9** | $**24.8** | $**66.7** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $18.6 | $10.8 | $29.4 |
|  Loss experience adjustments |  | (4.8) | (4.8) |
|  Other revenue |  | 13.0 | 13.0 |
|  **Direct commission income** | $**18.6** | $**19.0** | $**37.6** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Direct commission income | $2.0 | $13.9 | $15.9 |
|  Loss experience adjustments |  | 5.9 | 5.9 |
|  Other revenue |  | 12.7 | 12.7 |
|  **Direct commission income** | $**2.0** | $**32.5** | $**34.5** |

---

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##### [**Table of Contents**](#toc)
**8. Reinsurance** 

The Group enters into reinsurance agreements to limit its exposure to large losses and to enable it to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

The Group uses extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage its exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align the Group's interests with those of its reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Written premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2640.0 | $1608.3 | $1200.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 266.3 | 89.5 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2651.7) | (1506.9) | (1013.8) |
|  **Net written premiums** | $**254.6** | $**190.9** | $**186.0** |
|  **Earned premiums:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $2103.7 | $1304.5 | $779.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 127.9 | 14.9 | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (2005.0) | (1214.3) | (637.4) |
|  **Net earned premiums** | $**226.6** | $**105.1** | $**141.2** |
|  **Loss and LAE:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $1136.1 | $669.6 | $433.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.0 | 7.6 | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (1044.8) | (596.9) | (332.3) |
|  **Net loss and LAE** | $**167.3** | $**80.3** | $**99.5** |

---

***Reinsurance transactions***

*<u>Loss portfolio transfer</u>:* Effective December 2023, certain of the Group's insurance subsidiaries entered into a loss portfolio transfer reinsurance contract ("LPT"). The reinsurance counterparty reinsures all of the Group's retained loss reserves (subject to certain minor exclusions) on policies written prior to June 2022, subject to a limit of $152.1 million. The terms of the LPT provide coverage on net loss reserves of $122.9 million as of the reference date in consideration for a premium of $136.5 million. The LPT includes an adjustment feature whereby the Group will receive a return of premium equal to the amount of all aggregate losses below $130.3 million, as determined on December 31, 2029. The provisions of the LPT include limitations on the timing of payments in relation to incurred losses, as well as limits on the extent of losses in relation to total premiums paid, which collectively do not technically qualify as a transfer of significant insurance risk for accounting purposes and therefore requires deposit accounting. At inception, the Group recorded a deposit asset of $130.3 million equal to the $136.5 million premium consideration paid, less the $6.2 million premium to be retained by the reinsurer (irrespective of the experience of the contract) included in "Other assets" within our consolidated balance sheets.

The overall premium is held in a trust account to secure the reinsurance counterparty's obligations under the LPT. The funds withheld are credited with interest at a fixed annual rate that inures to the benefit of the reinsurer. The corresponding gross liability is reported within Funds held under reinsurance.

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##### [**Table of Contents**](#toc)
For the year ended December 31, 2024, the Group reduced the deposit assets by $47.4 million attributed to actual recoveries. The deposit asset reported as of December 31, 2024, is comprised of expected recoveries of $82.9 million, net of accretion, calculated using the interest method.

*<u>Commutation</u>*: In December 2023, the Group completed a commutation agreement that amended two whole account quota share reinsurance agreements that covered policies written from July 2020 to June 2022. A gain of $4.8 million was recognized on the commutation agreement, representing the excess of the total consideration of $83.6 million net of total liabilities reassumed of $78.8 million. The gain is included in Losses and loss adjustment expenses within our 2023 consolidated statement of operations.

*<u>Endorsements of existing quota share agreements</u>*: In November 2023, the Group and certain of its reinsurance counterparties agreed to endorsements of our quota share agreements covering treaty years of 2020 and 2021, which increased the contractual limits placed on their share of written premium and resulted in an increase in ceded written premiums of $27.8 million for the year ended December 31, 2023.

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Reinsurance recoverables on unpaid losses and LAE | 1069.5 | 605.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | $281.4 | $162.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 82.9 | 130.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commutation consideration receivable |  | 81.3 |
|  **Total other reinsurance recoverables** | **364.3** | **374.5** |
|  **Reinsurance recoverables** | $**1433.8** | $**980.0** |

---

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. The Group evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from its exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, the Group has received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of December 31, 2024, 59% were with reinsurers with an A.M. Best rating of A- (excellent) or better. The Group requires reinsurance recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables.

As of December 31, 2024 and 2023, all reinsurance recoverables with non-rated reinsurers were over collateralized and, accordingly, required no credit valuation allowance. The credit valuation allowance associated with reinsurance recoverables with reinsurers having an A.M. Best rating of A- or better was $0.4 million and $0.3 million as of December 31, 2024 and 2023, respectively.

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##### [**Table of Contents**](#toc)
**9. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by the Group:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $53.0 | $26.6 | $15.0 |
|  Direct commissions and other acquisition costs on retained business | 89.5 | 75.6 | 46.6 |
|  Amortization of deferred acquisition costs | (81.4) | (49.9) | (35.0) |
|  Foreign currency translation | (0.4) | 0.7 |  |
|  **Balance as of December 31,** | $**60.7** | $**53.0** | $**26.6** |

---

The following table presents the amounts of ceding commissions deferred and amortized:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Balance as of January 1, | $120.4 | $84.5 | $30.2 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 318.7 | 202.7 | 98.6 |
|  Amortization of deferred excess ceding commissions to income | (249.5) | (164.2) | (44.3) |
|  Foreign currency translation | 3.4 | (2.6) |  |
|  **Balance as of December 31,** | $**193.0** | $**120.4** | $**84.5** |

---

As disclosed in Note 2, the Group cedes a significant portion of its premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

Certain of the Group's reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commissions will result in a change to the deferred ceding commission liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the years ended December 31, 2024, 2023 and 2022 included reductions of $15.5 million, $19.1 million and $29.0 million, respectively, due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts.

**10. Income taxes** 

During 2024, the Partnership and its subsidiaries operated businesses in Bermuda, Belgium, the Cayman Islands, Canada, France, Greece, Italy, Ireland, Malta, Puerto Rico, Spain, Sweden, UK, and US. Under current law of the Cayman Islands and Bermuda, we are not subject to any corporate income taxes.

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The Partnership is registered in the Cayman Islands as an exempted limited partnership. Accelerant Holdings is incorporated, and is an exempted company, in the Cayman Islands. The US, UK and EU are the most significant regions contributing to the overall taxation of the Partnership for the years ended December 31, 2024, 2023 and 2022.

The components of income taxes attributable to operations by jurisdiction were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Income (loss) before income taxes:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $71.2 | $13.3 | $(52.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 45.9 | (17.0) | (20.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (85.6) | (40.2) | (12.9) |
|  **Income (loss) before income taxes** | $**31.5** | $**(43.9)** | $**(85.1)** |
|  **Current income tax expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $36.1 | $6.6 | $4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | 13.1 | 13.2 | 12.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 0.8 | 0.1 |  |
|  **Total current income tax expense** | **50.0** | **19.9** | **17.1** |
|  **Deferred income tax (benefit) expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | $(23.9) | $1.2 | $(5.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK and EU | (16.6) | (0.9) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (0.4) |  |  |
|  **Total deferred income tax (benefit) expense** | **(40.9)** | **0.3** | **(5.8)** |
|  **Income tax expense** | $**9.1** | $**20.2** | $**11.3** |

---

Our expected income tax expense (benefit) has been computed as the sum of the income (loss) before income taxes in each jurisdiction, multiplied by the jurisdiction's applicable statutory tax rate. The applicable statutory tax rates by jurisdiction were as follows: Bermuda (0.0%), Belgium (25.0%), the Cayman Islands (0.0%), Canada (26.5%), France (25.0%), Greece (22.0%), Italy (27.9%), Ireland (12.5%), Malta (35.0%), Puerto Rico (4.0%), Spain (25.0%), Sweden (20.6%), UK (25.0%), and US (21.0%).

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Our actual income tax expense (benefit) differs from each jurisdiction's statutory tax rate applied to the applicable income (loss) before income taxes in each jurisdiction due to the tax effects of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** |
| ***(in millions)*** | **Income<br>before**<br>**income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** | **Loss<br>before<br>income<br>taxes** | **Income<br>tax**<br>**expense<br>(benefit)** |
|  Income tax expense computed at statutory tax rate applied to the subcomponents of income (loss) by jurisdiction | $31.5 | $24 | $(43.9) | $(0.1) | $(85.1) | $(16.1) |
|  Tax effects of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowance |  | (9.7) |  | 16.4 |  | 25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision to return adjustment |  | (2.0) |  | (0.7) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible expenses |  | 1.9 |  | 2.2 |  | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-taxable income |  | (2.6) |  | (0.8) |  | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US state income taxes |  | 1.5 |  | 1.6 |  | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in entity tax status |  | (5.2) |  |  |  | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable gain on intercompany transfer |  | 1 |  | 2.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 0.2 |  | (0.7) |  | 0.2 |
|  **Total** | $**31.5** | $**9.1** | $**(43.9)** | $**20.2** | $**(85.1)** | $**11.3** |

---

The relationship of our income tax expense to its pre-tax income (loss) can be atypical because our taxable income has predominately been generated in the US, UK and Ireland, resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities"). Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other countries with cumulative operating losses, however, in each case a valuation allowance has been recorded against the corresponding deferred tax assets in those jurisdictions (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

The composition of our effective tax rates among our tax-paying and non-tax paying entities that demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2024** | **2023** | **2023** | **2023** | **2022** | **2022** | **2022** |
| ***(in millions)*** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-<br>paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $142.3 | $(110.8) | $31.5 | $90.3 | $(134.2) | $(43.9) | $47.9 | $(133.0) | $(85.1) |
|  Income tax expense | (9.1) |  | (9.1) | (20.2) |  | (20.2) | (11.3) |  | (11.3) |
|  **Effective tax rate** | **6.4%** | **—** | **28.9%** | **22.4%** | **—** | **(46.0)%** | **23.6%** | **—** | **(13.3)%** |

---

***Deferred taxes***

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our ability to realize deferred tax assets depends on our ability to generate sufficient taxable income of the same character, within the carryback and carryforward periods permitted within each tax jurisdiction. In assessing future taxable income, we considered all sources of taxable income available to realize our deferred assets, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carry back years and prudent and feasible tax-planning strategies.

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We concluded that a valuation allowance of $45.4 million is required as of December 31, 2024. For territories where no valuation allowance is required as of December 31, 2024, we are of the opinion that it is more-likely-than-not that sufficient taxable income will be earned for which the deferred tax assets can be utilized.

During the third quarter of 2024, a tax benefit of $14.6 million was recorded to reflect the adjustment of certain valuation allowances in the UK related to the integration of the UK Branch of Accelerant Insurance Europe Limited, which is domiciled in Belgium, within our UK tax group, as well as underlying improvement in the UK Branch's operations. The UK Branch had previously been reported as a component of our overall Belgian operations, which record full valuation allowances due to recurring operating losses attributable to its underwriting operations. As noted in the rate reconciliation above, this benefit was offset by $4.9 million of additional valuation allowances, resulting in a net $9.7 million tax benefit recorded during 2024. The additional valuation allowances were primarily related to operating losses and net deferred tax assets in jurisdictions that we are unable to recognize benefits from due to a history of recurring losses.

If changes occur in the assumptions underlying our tax planning strategies or in the scheduling of the reversal of our deferred tax liabilities, the valuation allowance may need to be adjusted in the future.

The net deferred tax asset comprises the tax effects of temporary differences related to the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  **Deferred tax assets:** |  |  |
|  Net operating loss | $32.9 | $29.8 |
|  Deferred ceding commission | 49.2 | 21.7 |
|  Unearned premiums | 2.6 | 2.5 |
|  Accrued compensation | 2.0 | 1.3 |
|  Intangible assets | 4.4 | 0.4 |
|  Outside basis difference in partnership investments | 7.4 |  |
|  Other | 4.3 | 3.5 |
|  Deferred tax assets before valuation allowance | 102.8 | 59.2 |
|  Valuation allowance | (45.4) | (46.5) |
|  **Deferred tax assets net of valuation allowance** | **57.4** | **12.7** |
|  **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | (7.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | (2.3) |
|  **Total deferred tax liabilities** | **(7.2)** | $**(2.3)** |
|  **Net deferred tax assets** | $**50.2** | $**10.4** |

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The amount and timing of realizing the benefits of our net operating loss carryforwards depend on future taxable income and limitations imposed by tax laws. As of December 31, 2024, our net operating loss carryforwards were as follows:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2024** | **Deferred tax assets on<br>net operating loss** |
|  **Net operating loss carryforwards by jurisdiction:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Belgium <sup>(1)</sup> | $107.8 | $27.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US | 9.2 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Malta <sup>(1)</sup> | 4.2 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UK | 7.7 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All other | 2.4 | 0.6 |
|  **Total deferred tax asset on net operating losses** |  | $**32.9** |

---

<sup>(1)</sup> Jurisdictions where the net operating loss has a full valuation allowance.

We did not incur any interest and penalties related to uncertain tax positions for the years ended December 31, 2024, 2023 and 2022. We did not have any accruals for uncertain tax positions nor any unrecognized uncertain tax benefits as of December 31, 2024.

The Partnership and its subsidiaries file income tax returns in their respective jurisdictions. We are not currently under audit for income taxes in any jurisdiction. The statute of limitations remains open in various jurisdictions from 2019 and forward.

For the year ended December 31, 2024, we consider our earnings within each jurisdiction to be indefinitely reinvested, and as such, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax. Should the subsidiaries distribute current or accumulated earnings and profits in the form of dividends or otherwise, we may be subject to withholding taxes in certain jurisdictions. The cumulative amount that would be subject to withholding tax, if distributed, is not practicable to compute.

Under the Organization for Economic Co-operation and Development (OECD) / G20 Inclusive Framework, 140 countries agreed to enact a two-pillar solution to address the digitalization of the economy. The OECD's Pillar Two Model Rules introduce global changes to the international tax framework. Large multinational businesses with greater than €750 million total revenue are required to pay a minimum effective tax rate under Pillar Two of 15% on income arising in each jurisdiction where they operate. The proposed rules took effect for tax years beginning on January 1, 2024 in many jurisdictions. We are subject to these rules given our gross earned premiums are more than €750 million and the minimum tax is treated as a period cost. The Pillar Two minimum tax expense for the current year ended December 31, 2024 was $0.7 million.

**11. Goodwill, other intangible assets and capitalized technology development costs** 

***Goodwill***

We have assigned goodwill to our reporting units for impairment testing purposes. As of December 31, 2024, we have two reporting units with goodwill - Owned Members within the MGA Operations segment and Underwriting (whereby the operating unit for impairment testing was at the operating segment level).

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A roll forward of goodwill by reportable segment as of and for the years ended December 31, 2024, 2023 and 2022 are as follows:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **Underwriting** | **MGA Operations** | **Total** |
|  **Balance as of January 1, 2022** | $**1.4** | $**11.2** | $**12.6** |
|  Acquisition of business <sup>(1)</sup> |  | 8.7 | 8.7 |
|  Measurement period adjustments | (0.9) |  | (0.9) |
|  Foreign currency translation | (0.2) | (1.9) | (2.1) |
|  **Balance as of December 31, 2022** | $**0.3** | $**18.0** | $**18.3** |
|  Acquisition of business <sup>(1)</sup> | 1.2 | 0.8 | 2.0 |
|  Foreign currency translation |  | 0.4 | 0.4 |
|  **Balance as of December 31, 2023** | $**1.5** | $**19.2** | $**20.7** |
|  Acquisition of business <sup>(1)</sup> |  | 10.8 | 10.8 |
|  Foreign currency translation | (0.1) | (0.5) | (0.6) |
|  **Balance as of December 31, 2024** | $**1.4** | $**29.5** | $**30.9** |

---

<sup>(1)</sup> Refer to Note 17 for additional information pertaining to business combinations and related goodwill determination.

We performed a qualitative assessment of its goodwill for impairment as of the years ended December 31, 2024, 2023 and 2022 and in each case we determined that it was more likely than not that the estimated fair value of the reporting units with goodwill exceed their respective carrying values.

***Other intangible assets***

Our other intangible assets, acquired in connection with its business combination activities, accumulated amortization and their carrying amounts were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $29.6 | $(8.9) | $20.7 |
|  Licenses and other | 13.0 | (0.6) | 12.4 |
|  **Total** | $**42.6** | $**(9.5)** | $**33.1** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Customer relationships | $24.9 | $(6.4) | $18.5 |
|  Licenses and other | 12.7 | (0.4) | 12.3 |
|  **Total** | $**37.6** | $**(6.8)** | $**30.8** |

---

Included in the gross carrying amounts of Licenses and other was $11.0 million of indefinite-lived licenses as of December 31, 2024 and 2023. We performed a qualitative assessment for impairment and the useful lives of its indefinite and finite lived intangible assets, as applicable, and we determined there were no impairments or need to change the useful lives of the finite lived intangibles assets as of December 31, 2024 and 2023.

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***Capitalized technology development costs***

Our capitalized technology development costs, accumulated amortization and their carrying amounts are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $117.1 | $(33.5) | $83.6 |

---

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| ***(in millions)*** | **Gross carrying<br>amount** | **Accumulated<br>amortization** | **Net carrying<br>amount** |
|  Capitalized technology development costs | $84.1 | $(15.0) | $69.1 |

---

There was no change in estimated useful lives of other intangible assets and capitalized technology development costs for the years ended December 31, 2024, 2023 and 2022. The weighted-average remaining useful life is 7.4 years for customer relationships and 3.7 years for capitalized technology development costs. For the year ended December 31, 2024, we recorded an impairment of $3.5 million of capitalized technology development costs, which is included in the "Depreciation and amortization" in our consolidated statements of operations. There was no impairment of other intangible assets and capitalized technology development costs for the year ended December 31, 2023. Depreciation and amortization presented in our consolidated statements of operations were $26.6 million, $14.5 million and $5.8 million for the years ended December 31, 2024, 2023 and 2022, respectively, the majority of which represents amortization expenses of other intangible assets and capitalized technology development costs.

As of December 31, 2024, estimated amortization expenses of other intangible assets and capitalized technology development costs to be recognized by the Partnership over the next five years are as follows:

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| | |
|:---|:---|
|  | **Estimated<br>amortization<br>expenses** |
| **Years Ended December 31,** | ***(in millions)*** |
| 2025 | $26.8 |
| 2026 | 27.0 |
| 2027 | 25.1 |
| 2028 | 13.6 |
| 2029 | 6.4 |

---

**12. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Prefunded claim settlement accounts <sup>(1)</sup> | $58.6 | $66.0 |
|  Net deferred tax assets (refer to Note 10) <sup>(2)</sup> | 51.6 | 10.4 |
|  Commission income receivable | 28.3 | 17.4 |
|  Funds withheld by reinsurers | 18.2 | 20.0 |
|  Deferred offering costs <sup>(3)</sup> | 16.0 | 12.4 |
|  Prepaid expenses | 11.8 | 4.2 |
|  Prepaid retrocession premium (refer to Note 8) | 5.3 | 6.2 |
|  Other | 29.3 | 17.5 |
|  **Total** | $**219.1** | $**154.1** |

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| | |
|:---|:---|
| <sup>(1</sup><sup>)</sup> | This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis.  |

---

<sup>(2)</sup> Total net deferred tax assets presented in Note 10 are $50.2 million. However, net deferred tax assets may not be offset with net deferred tax liabilities from different tax jurisdictions. As of December 31, 2024, one of our tax jurisdictions had $1.4 million of net deferred tax liabilities, which is included in "Accounts payable and other liabilities" in our consolidated balance sheets. All other jurisdictions had aggregate net deferred tax assets of $51.6 million. 

<sup>(3)</sup> As of the date of completion of these financial statements, the Group is preparing for its planned initial public offering. In the event that the Group postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

**13. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $772.5 | $415.4 | $182.0 |
|  Less: Reinsurance recoverables, beginning of year | 605.5 | 333.4 | 144.3 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **167.0** | **82.0** | **37.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquired reserves from business combinations |  | 6.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserves reassumed under commutation agreement <sup>(1)</sup> |  | 74.7 |  |
|  Incurred losses and LAE related to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 152.2 | 75.4 | 94.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 15.1 | 4.9 | 4.8 |
|  **Total incurred losses and LAE** | **167.3** | **80.3** | **99.5** |
|  Paid losses and LAE: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (28.8) | (32.2) | (32.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (76.8) | (49.0) | (20.6) |
|  **Total paid losses and LAE** | **(105.6)** | **(81.2)** | **(53.3)** |
|  Foreign exchange adjustments | (3.8) | 5.1 | (1.9) |
|  **Net reserve for unpaid losses and LAE, end of year** | **224.9** | **167.0** | **82.0** |
|  Reinsurance recoverables on unpaid losses and LAE, end of year | 1069.5 | 605.5 | 333.4 |
|  **Gross reserve for unpaid losses and LAE, end of year** | $**1294.4** | $**772.5** | $**415.4** |

---

<sup>(1)</sup> Amount is presented net of a $4.1 million settlement of net receivables from the counterparty upon commutation. 

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

The increase in incurred losses and LAE ("adverse development") attributable to prior accident years of $15.1 million for the year ended December 31, 2024 primarily related to the EU and UK general liability and

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property portfolio for Members that we have either discontinued or subject to significant responsive underwriting actions.

Adverse development attributable to prior accident years of $4.9 million for the year ended December 31, 2023 was primarily driven by $2.8 million of adverse development on certain UK legacy discontinued business, including from a previous acquisition, in addition to $2.1 million related to US commercial auto reserves.

Adverse development attributable to prior accident years of $4.8 million incurred during the year ended December 31, 2022 primarily related to adverse development associated with one large MGA with UK commercial property and liability exposures. Such losses do not include the impacts of negative sliding scale commission adjustments resulting from increased loss estimates that we recognize as a component of ceding commission income. For further information, refer to Note 9.

**Lines of business** 

Due to the nature of business written and the distribution channels used by the Group, (i.e., specialist and tailor-made products sold via MGAs), we perform day-to-day monitoring and oversight of the performance at the individual MGA level, with splits into lines of business or products where appropriate. This granular and detailed analysis and monitoring is designed to provide appropriate oversight over the delegated business and timely detection of any trends. The Group analyzes the performance within three main lines of business, namely Property, Liability and Other.

Property losses are generally reported, settled and paid within a short period of time from the date of loss. However, property can be impacted by catastrophe losses which can be more complex than non-catastrophe property claims due to factors such as difficulty accessing impacted areas and other physical, legal and regulatory impediments, potentially extending the period it takes to settle and pay claims.

Our Liability insurance products generally cover exposures where most claims are reported without a significant time lag. However, since facts and information are frequently not complete at the time claims are reported to us, and because protracted litigation is sometimes involved, it can be several years before the ultimate value of these claims is determined.

Our Other category primarily encompasses motor, marine and surety business. We perform this aggregation solely for reporting purposes considering the materiality of these sub-segments.

**Foreign currency** 

We translate the loss development for operations outside of the US for all accident years using the constant currency exchange rates as of December 31, 2024. Although this approach requires adjusting all prior accident year information for use in the tables, the changes in exchange rates do not impact incurred and paid loss development trends.

The following is information about incurred and paid losses development as of December 31, 2024, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities included within the net incurred loss amounts.

**Incurred loss and allocated loss adjustment expense ("ALAE"), net of reinsurance** 

The following tables represent our incurred loss and ALAE, net of reinsurance, less cumulative paid claims and ALAE by business line as of December 31, 2024, net of reinsurance, as well as cumulative claims frequency and the total IBNR liabilities plus expected development on reported claims included within the net incurred claims amount. We have adjusted these tables for accident years 2019 through 2022 to present the retrospective effects of the commutation reinsurance transaction described in Note 8.

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**Property** 

***(in millions, except for number of claims)***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| 2019 | $1.1 | $1.3 | $1.3 | $1.2 | $1.4 | $1.4 | $— | 3529 |
| 2020 |  | 17.7 | 19.0 | 17.5 | 23.2 | 22.7 |  | 12319 |
| 2021 |  |  | 10.9 | 14.6 | 23.7 | 23.4 |  | 12906 |
| 2022 |  |  |  | 59.0 | 77.8 | 85.6 | 0.1 | 17776 |
| 2023 |  |  |  |  | 45.7 | 41.3 | 1.3 | 16572 |
| 2024 |  |  |  |  |  | 71.1 | 34.8 | 15662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**245.5** |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses,**<br>**net of reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** |
| 2019 | $— | $0.3 | $0.3 | $0.5 | $0.8 | $1.4 |
| 2020 |  | 1.7 | 11.7 | 15.4 | 18.8 | 22.5 |
| 2021 |  |  | 1.7 | 13.3 | 17.6 | 22.9 |
| 2022 |  |  |  | 28.3 | 47.9 | 83.0 |
| 2023 |  |  |  |  | 29.2 | 36.8 |
| 2024 |  |  |  |  |  | 17.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**184.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Unpaid losses and ALAE, net of reinsurance** |  |  |  |  |  | $**61.3** |

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**Liability** 

***(in millions, except for number of claims)***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
| | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | <br> **Years Ended December 31,** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| 2019 | $0.4 | $0.4 | $0.4 | $0.4 | $1.3 | $1.5 | $— | 2001 |
| 2020 |  | 6.4 | 7.3 | 7.1 | 9.8 | 12.7 | 0.6 | 2522 |
| 2021 |  |  | 9.5 | 10.8 | 15.5 | 19.4 | 2.0 | 5061 |
| 2022 |  |  |  | 29.8 | 46.5 | 51.2 | 12.7 | 8142 |
| 2023 |  |  |  |  | 25.0 | 22.4 | 9.4 | 9339 |
| 2024 |  |  |  |  |  | 47.2 | 28.8 | 8913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**154.4** |  |  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** | **Cumulative paid claims and allocated claims adjustment expenses, net of**<br>**reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2019**<br>**(unaudited)** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** |
| 2019 | $— | $0.1 | $0.1 | $0.2 | $1.2 | $1.2 |
| 2020 |  | 0.5 | 4.2 | 5.4 | 7.4 | 7.6 |
| 2021 |  |  | 0.6 | 1.9 | 4.0 | 5.4 |
| 2022 |  |  |  | 2.6 | 10.7 | 11.3 |
| 2023 |  |  |  |  | 1.7 | 3.4 |
| 2024 |  |  |  |  |  | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  |  | $**32.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Unpaid losses and ALAE, net of reinsurance** |  |  |  |  |  | $**121.5** |

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**Other** 

***(in millions, except for number of claims)***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **Incurred claims and claims adjustment**<br>**expenses, net of reinsurance** | **December 31, 2024** | **December 31, 2024** |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| ***Accident year*** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** | **IBNR plus**<br>**expected**<br>**development**<br>**on reported**<br>**claims** | **Cumulative**<br>**number of**<br>**reported**<br>**claims** |
| 2020 | $0.2 | $0.2 | $0.2 | $0.9 | $0.8 | $— | 4306 |
| 2021 |  | 7.0 | 9.4 | 18.3 | 18.5 | 1.3 | 9276 |
| 2022 |  |  | 5.8 | 21.9 | 21.0 | 2.2 | 20383 |
| 2023 |  |  |  | 9.2 | 9.9 | 2.8 | 30937 |
| 2024 |  |  |  |  | 31.9 | 16.4 | 33774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  | $**82.1** |  |  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** | **Cumulative paid claims and allocated claims**<br>**adjustment expenses, net of reinsurance** |
| ***(in millions)*** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **Accident year** | **2020**<br>**(unaudited)** | **2021**<br>**(unaudited)** | **2022**<br>**(unaudited)** | **2023**<br>**(unaudited)** | **2024** |
| 2020 | $— | $0.1 | $0.1 | $0.4 | $0.8 |
| 2021 |  | 2.9 | 5.6 | 11.1 | 15.7 |
| 2022 |  |  | 2.1 | 4.3 | 16.4 |
|  |  |  |  | 1.4 | 4.9 |
|  |  |  |  |  | **7.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** |  |  |  |  | $**44.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Unpaid losses and ALAE, net of reinsurance** |  |  |  |  | $**37.2** |

---

The reconciliation of our net incurred and paid development tables to the liability for unpaid losses and LAE in our consolidated balance sheets is as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **December 31, 2024** |
|  **Net outstanding liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | $61.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 121.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 37.2 |
|  **Liabilities for unpaid losses and ALAE, net of reinsurance** | **220.0** |
|  **Reinsurance recoverables on unpaid claims** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property | 295.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liability | 592.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 181.4 |
|  **Total reinsurance recoverables on unpaid losses and LAE** | **1069.5** |
|  **Unallocated LAE** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | 3.0 |
|  **Total unallocated LAE** | **4.9** |
|  **Total unpaid losses and LAE** | $**1294.4** |

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**Claims duration** 

The following table presents the historical average annual percentage payout, net of reinsurance on an accident year basis at the same level of disaggregation as presented in the claims development tables above. Given we established operations in 2019, the typical full payout pattern to 100% is not yet available.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** | **Average annual percentage payout of incurred losses and ALAE, net**<br>**of reinsurance as of December 31, 2024 (unaudited) <sup>(1)</sup>** |
|  | **Year 1** | **Year 2** | **Year 3** | **Year 4** | **Year 5** | **Year 6** |
|  Property | 15% | 20% | 12% | 12% | 10% | 30% |
|  Liability | 6% | 17% | 7% | 12% | 45% | 3% |
|  Other | 8% | 10% | 18% | 21% | 24% |  |

---

<sup>(1)</sup> Average annual percentage payout is calculated using a paid loss and ALAE development pattern based on an actuarial analysis of the paid loss and ALAE movements by accident year for each disaggregation category. Our average annual percentage payouts shown have been scaled to align with historical expected total payment development after 6 years. 

**14. Debt** 

The Group had the following senior unsecured debt outstanding as of December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Senior unsecured debt | $125.0 | $123.3 |
|  Less: unamortized debt issuance costs | (3.6) | (3.0) |
|  **Senior unsecured debt** | $**121.4** | $**120.3** |

---

The following table presents estimated future repayments of long-term debt as of December 31, 2024, excluding the debt issuance costs which will be amortized over the remaining term:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
| ***(in millions)*** | **Total** | **2025** | **2026** | **2027** | **2028** | **2029** |
|  Senior unsecured debt | $125.0 | $0.8 | $3.1 | $5.9 | $5.7 | $109.5 |

---

During the third quarter of 2024, the Group amended its syndicated loan agreement related to its senior unsecured debt facility including Euro and US dollar denominated components with an original May 2026 maturity date (the "senior notes").

Under the terms of the amended credit agreement, the Group refinanced the syndicated loan facility by extending the maturity date of the senior notes to September 2029 and borrowing $51.5 million to repay the Euro component, such that the aggregate outstanding principal balance of the senior notes remained $125 million under a new single US dollar denominated facility. In addition, the credit agreement was amended to add a $50 million revolving credit facility (all of which was unutilized and available as of December 31, 2024).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows the Group to withdraw predefined amounts of the approved total US Dollar aggregate principal amount. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the

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applicable interest rate has been reset. The interest rate is subject to a sliding scale based on the Group's consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the years ended December 31, 2024, 2023 and 2022 was $12.1 million, $10.9 million and $4.2 million, respectively.

Subject to conditions of optional prepayment, the Group may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts prepaid may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of December 31, 2024, the Group was in compliance with all such covenants.

**15. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions)*** | **2024** | **2023** |
|  Premium tax payables | $53.7 | $36.0 |
|  Deposit liabilities <sup>(1)</sup> | 43.9 |  |
|  Commission refund liabilities | 38.8 | 29.8 |
|  Trade payables | 13.8 | 9.6 |
|  Accrued expenses and other | 48.6 | 56.6 |
|  **Total** | $**198.8** | $**132.0** |

---

<sup>(1)</sup> During the third quarter of 2024, the Group assumed loss and loss adjustment expense reserves in a novation transaction with an unaffiliated insurer who additionally provided coverage for adverse development on the novated loss reserves. We accounted for the arrangement using deposit accounting because the contract did not transfer significant insurance risk. 

**16. Equity** 

**Partnership equity and interests structure** 

Financial interests (investments) in the Partnership are held by the Limited Partners through different classes of partnership interests (referenced as ordinary shares herein) with a par value issued to the security holder at the time of the capital contribution (or grant date in the case of incentive awards). Each class of shares conveys specific rights to the security holder aligned to the holders' relationship to the Partnership. Limited Partners are comprised of Altamont Capital Partners, various co-investors and managers (employees) of the Partnership group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class A shares (A1 and A2) were issued for consideration equal to capital contributions made and are held by
the initial Limited Partner (Class A1 shares) (initial and subsequent issuances) and the co-investors (Class A2 shares)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Class D shares were issued for specific capital raises to support the Partnership's and its subsidiary
companies' periodic capital needs.

The sole General Partner (Accelerant Holdings GP) holds a voting interest only and does not hold any ordinary shares.

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AHLP has also issued various profit interests awards from 2019 to 2022, consisting of Class A3, Class B and Class C1, C2, C3 and C4 awards to certain officers and employees within the consolidated group of companies in the form of partnership shares and incentive units. Such awards are not considered equity of the Partnership.

**Distributions** 

AHLP may make discretionary interim distributions of income or final liquidation distributions of equity of the Partnership to the Limited Partners or the holders of the profit interests awards in accordance with a defined payment structure. Specifically, the distributions may occur whereby each security holder receives a pro rata portion of their respective share class pool to the extent the applicable share class payment threshold has been met. There were no distributions paid during the years ended December 31, 2024, 2023 and 2022.

**Partners' redeemable preference shares** 

<u>Class</u> <u>D:</u> The Partnership has issued and outstanding 100 Class D limited partnership interests at December 31, 2024 and 2023 with a value of $301,248 per limited partnership interest. The Class D limited partnership interests are classified as preference shares due to the rights attaching to them in liquidation and distributions where they are preferred over other limited partnership interests. The Class D interests received a fixed distribution at an annual rate of 14% from their original issuance date through May 2022, and 13% thereafter, compounding quarterly, which interest rates correspond to the liquidation preference. Any unpaid distributions accrue until redemption, which may be triggered in the discretion of the holder of the Class D interests upon the repayment, or default, of the debt that was used to fund the purchase of the Class D limited partnership interests. The underlying debt has a maturity date in May 2027. Accrual of the liquidation preference of the Class D interests will continue for the same period that such debt is outstanding. The consolidated financial statements reflect the ongoing adjustment of the Class D limited partnership interests in order to reflect the liquidation preference (maximum redemption value) as of each reporting date, with a corresponding offset to the Partnership's accumulated deficit.

**Partners' common shares** 

<u>Class</u> <u>A1:</u> There are 8,491,134,079 Class A1 common shares issued and outstanding at December 31, 2024 and 2023 with a par value of $0.01 per share.

<u>Class</u> <u>A2:</u> There are 693,970,910 Class A2 common shares issued and outstanding at December 31, 2024 and 2023 with a par value of $0.02 per share.

The common shares are all held by limited partners as either the primary or co-investors and confer upon its holders the right to participate and vote in accordance with the limited partnership agreement and the right to participate in a share of any distributions (as described above) or dividends.

**Non-controlling interests** 

**Convertible preference shares of consolidated subsidiary** 

<u>Class</u> <u>C preference share issuance in 2024</u>: In 2024, Accelerant Holdings issued 53,308 Class C convertible preference shares to third-party investors for $100.5 million of gross proceeds, 10,874 Class C convertible preference shares to Altamont Capital Partners for $20.5 million of gross proceeds and 2,229 Class C convertible preference shares to certain executives of the Partnership's subsidiary companies for $4.2 million gross proceeds. There was a total of 66,411 Class C preference shares issued and total net proceeds of $114.5 million, after giving effect to $10.7 million in issuance costs.

<u>Class</u> <u>A preference share and Class</u> <u>B preference share issuance in 2024</u>: As referenced in Note 6, there were 875 Class A preference shares and 525 Class B preference in connection with Accelerant Holdings' acquisition of the equity interests in Mission.

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<u>Class</u> <u>B preference share issuance in 2023</u>: In February 2023, Accelerant Holdings issued 681 Class B convertible preference shares to third-party investors for $0.7 million gross proceeds and 223 Class B convertible preference shares to certain executives of the Partnership's subsidiary companies for $0.2 million gross proceeds. The total capital raised in 2023 was $0.7 million, net of $0.2 million in issuance costs.

<u>Class</u> <u>B preference share issuance in 2022</u>: In 2022, Accelerant Holdings issued 89,155 Class B convertible preference shares to third-party investors for $90.0 million of gross proceeds as well as 59,648 Class B convertible preference shares to Altamont Capital Partners for $60.2 million of gross proceeds.

<u>Class</u> <u>A preference share issuance in 2022:</u> In 2022, Accelerant Holdings issued 36,000 Class A convertible preference shares to third-party investors for $36.0 million in gross proceeds as well as 27,500 Class A convertible preference shares to Altamont Capital Partners for $27.5 million in gross proceeds. Accelerant Holdings also issued 2,500 Class A convertible preference shares to a related party in settlement of an outstanding loan balance of $2.5 million. In addition, in 2022, 866 Class A convertible preference shares were issued to certain executives of the Partnership's subsidiary companies for $0.9 million gross proceeds.

The total capital raised in 2022 was $207.3 million, net of $9.8 million in issuance costs. Total cash proceeds from the 2022 offerings were $204.8 million (representing the $207.3 million total capital less the $2.5 million non-cash settlement of the outstanding loan balance).

The Class A and Class B preference shares are convertible to common shares upon an initial public offering of Accelerant Holdings, as well as in the case of other defined liquidation events. In the case of such an initial public offering or a liquidation event, all other equity holders of Accelerant Holdings will also participate and receive the same form of consideration. The Class A and Class B preference shares are subject to an accreted liquidation preference of 8% and 16%, respectively. The holders of the Class A and Class B preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class A and Class B preference shares have not appreciated to the sum of the initial investment and the accreted liquidation preference. In such circumstance, Accelerant Holdings may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

The Class C preference shares are convertible to common shares subject to the occurrence of an initial public offering or other defined liquidation event. The Class C preference shares also include a redemption feature, which may be exercised at the holders' option, as well as contingently issuable detachable warrants to acquire additional common shares if the initial public offering or liquidation event does not occur within two years following the Class C preference shares date of issuance (the "Class C Issuance Date"). If an initial public offering or liquidation event occurs within two years following the Class C Issuance Date, the warrants will not be issued. However, if an initial public offering or liquidation event does not occur by the second anniversary of the Class C Issuance Date, holders of such shares will receive 58,331 detachable warrants (42,902 warrants with an exercise price approximating 75% of the independently determined fair value of Accelerant Holdings as of the Class C Issuance Date (such reference valuation, the "Issuance Date Valuation") plus 15,429 warrants with an exercise price approximating 150% of the Issuance Date Valuation.

If a holder of Class C preference shares elects to convert Class C preference shares to common shares, the holder will receive Class A or Class B common shares, as applicable, equivalent to the same number of the Class C preference shares subject to conversion. If a holder of the Class C preference shares elects, prior to the first anniversary of the Class C Issuance Date, to redeem such holder's shares for cash, the holder will receive 1.4 times such holder's initial investment; and if such an election is made following the first anniversary of the Class C Issuance Date, but prior to the second anniversary thereof, the holder will receive 1.5 times such holder's initial investment. After the second anniversary of the Class C Issuance Date, the value of the redemption right will change in accordance with the accreted liquidation preference rates as defined in the following paragraph.

The Class C convertible preference shares are subject to an accumulating annual accreted liquidation preference equal to the greater of 12.5% or SOFR plus 750 basis points (subject to adjustment over time and never to exceed

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17.0%). The holders of the Class C preference shares may withhold consent to an initial public offering or liquidation event if the value of the Class C preference shares has not appreciated to equal the sum of the initial investment plus the aggregate accreted liquidation preference. In such circumstance, Accelerant Holdings may elect to pay dividends to reduce the value of the accreted liquidation preference to the value of the initial public offering or liquidation event, as the case may be.

**Other interests** 

For the years ended December 31, 2024, 2023 and 2022, other non-controlling interests consist of the non-controlling interest in other companies with a total attributed net loss to such non-controlling interests of $4.3 million, $15.3 million and $3.9 million, respectively.

**17. Business acquisitions** 

During the years ended December 31, 2024, 2023 and 2022, the Group made several acquisitions that were individually not material. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. Our purchase price allocation related to the 2024 acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. The Group may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). The Group recorded goodwill from these acquisitions, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of the acquisitions after their respective closing dates. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of AHLP. The acquisition-related costs incurred for the acquisitions which occurred during the years ended December 31, 2024, 2023 and 2022 were $0.3 million, $1.2 million and $0.7 million, respectively.

**2024 Activity:** 

The following represents a summary of the acquisitions that occurred during 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In May 2024, the Group closed on its acquisition of each of Mission US and Mission EU which the Group initiated
by exercising its options. Mission was previously a consolidated VIE given financial support and variable interest considerations. Because Mission was previously consolidated within the Group's financial statements, the exercise of the call
option was accounted for as an equity transaction. Upon completion of the acquisition, Mission became a VOE and a wholly-owned subsidiary of the Group. For further information on the Mission acquisition, refer to Note 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2024, the Group's subsidiary Ayax Acquisition Co. Ltd acquired an additional 32% of the
outstanding share capital of Ayax Specialty, S.L ("Ayax"), a Spanish MGA specializing in the insurance of surety risks, in exchange for $17.5 million of total consideration (consisting of cash of $5.6 million, the Group's
existing equity interest of $3.3 million and the non-controlling interests of $8.6 million). The additional 32% interest increased the Group's ownership in Ayax from 19% to 51%. Previously, the
investment in Ayax was accounted for as an equity method investment. Following the completion of the step acquisition, in which the Group gained majority ownership and control of Ayax, it was consolidated. The Group's previously held equity
interest was remeasured to fair value at the step acquisition date. Accordingly, we recorded a revaluation gain of $2.4 million within "Net realized gains (losses) on investments" in our consolidated statements of operations.

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The following table provides our preliminary purchase accounting financial information for the Ayax acquisition:

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| | |
|:---|:---|
| ***(in millions)*** | **2024** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $5.1 |
|  Other identifiable intangible assets | 5.3 |
|  Premiums receivable | 1.1 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **12.0** |
|  **Liabilities assumed:** |  |
|  Insurance balances payable | 3.0 |
|  Accounts payable and other liabilities | 2.3 |
|  **Total liabilities assumed** | **5.3** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.7** |
|  Goodwill | 10.8 |
|  **Total acquisition consideration** | $**17.5** |

---

<sup>(1)</sup> Total net cash paid for the interest in Ayax was $0.5 million, net of cash acquired (consisting of the $5.6 million payment net of the $5.1 million cash acquired). 

**2023 Activity:** 

The following represents a summary of the acquisitions that occurred during *2023*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital Markets Underwriting Limited ("CMU"): In June 2023, the Group's consolidated
subsidiary Nationwide Broker Services Limited acquired a 70% ownership stake in CMU for consideration of $0.9 million. CMU is a UK-based MGA and cover holder at Lloyd's (representing a company
authorized to enter into insurance contracts on behalf of a Lloyd's syndicate in accordance with the terms of a binding authority contract).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Omega Insurance Holdings, Inc ("Omega"): In October 2023, the Group's consolidated
subsidiary Omega Acquisition Co Ltd. purchased all the common shares of Omega Insurance Holdings Inc. (subsequently renamed Accelerant Canada Holdings, Inc.) for consideration of $9.5 million. Accelerant Canada Holdings, Inc. owns all the
common shares of Omega General Insurance Company (subsequently renamed Accelerant Insurance Company of Canada) and Focus Group Inc (subsequently renamed Accelerant Canada Services). Our acquisition of Omega will support Accelerant's continued
international expansion, specifically into the Canadian market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• American Eagle Underwriting Managers, LLC ("American Eagle"): In November 2023, the Group's
consolidated subsidiary, Mission UH Holdings LLC acquired all the ownership interests of American Eagle for consideration of $2.4 million. American Eagle is a US-based MGA and cover holder at
Lloyd's.

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The following table provides certain financial information for these acquisitions:

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| | |
|:---|:---|
| ***(in millions)*** | **2023** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $15.2 |
|  Investments | 6.8 |
|  Premiums receivable | 12.1 |
|  Ceded unearned premiums | 12.2 |
|  Reinsurance recoverables <sup>(1)</sup> | 11.4 |
|  Other identifiable intangible assets | 1.6 |
|  Other assets | 1 |
|  **Total assets acquired** | **60.3** |
|  **Liabilities assumed:** |  |
|  Unpaid losses and loss adjustment expenses | 16.8 |
|  Unearned premiums | 13.2 |
|  Insurance balances payable | 13.5 |
|  Accounts payable and other liabilities | 6 |
|  **Total liabilities assumed** | **49.5** |
|  **Total identifiable net assets acquired <sup>(2)</sup>** | **10.8** |
|  Goodwill | 2 |
|  **Total acquisition consideration** | $**12.8** |

---

<sup>(1)</sup> Reinsurance recoverables acquired include $10.7 million of reinsurance recoverables on unpaid losses and LAE and $0.7 million of reinsurance recoverables on paid losses and LAE. 

<sup>(2)</sup> The acquisitions of the entities resulted in net cash and cash equivalents received of $2.8 million, representing the $12.4 million cash payment for the acquisition compared to net of cash and cash equivalents acquired of $15.2 million. Total acquisition consideration consisted of the cash payment and $0.4 million of non-controlling interests. 

**2022 Activity:** 

The following summarizes the acquisitions that occurred during 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2022, the Group acquired 77.6% of the share capital of United Brokers International Limited
("UBI") for consideration of $10.3 million. The consideration transferred consisted of $4.4 million of cash, $4.6 million of deferred consideration and $1.3 million of non-controlling interest. UBI is a UK and Ireland based MGA that specializes in the insurance of construction risks in France.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In March 2022, the Group acquired 78.1% of the share capital of *Servicios Profesionales de Suscripcion de Riesgos Iberia S.L.* ("SSR Iberia") for consideration of $4.7 million. The consideration transferred consisted of $3.7 million of cash and $1.0 million of non-controlling interest.
SSR Iberia is a Spain based MGA that specializes in the insurance of construction and real estate development risks.

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The following table provides certain financial information for these acquisitions:

---

| | |
|:---|:---|
| ***(in millions)*** | **2022** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $6.4 |
|  Other identifiable intangible assets | 4.9 |
|  Other assets | 0.5 |
|  **Total assets acquired** | **11.8** |
|  **Liabilities assumed:** |  |
|  Commissions payable | 0.3 |
|  Accounts payable and other liabilities | 5.2 |
|  **Total liabilities assumed** | **5.5** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **6.3** |
|  Goodwill | 8.7 |
|  **Total acquisition consideration** | $**15.0** |

---

<sup>(1)</sup> Total cash paid for acquisitions, net of cash acquired, was $1.7 million representing the $8.1 million cash payment for the acquisition compared to cash and cash equivalents acquired of $6.4 million. Total acquisition consideration consisted of the cash payment, $4.6 million of deferred consideration and $2.3 million of non-controlling interests. 

**18. Related party transactions** 

We have loans receivable from certain of the directors of the Partnership. At December 31, 2024 and 2023 the value of the loans receivable were $3.7 million and $2.8 million, respectively. Interest will accrue on the outstanding principal balance at a floating per annum rate equal to the greater of (i) the Prime Rate minus one percent (1.0%) and (ii) two and one quarter of one percent (2.25%). Interest will be due and payable on the repayment date. There is no fixed repayment date.

**19. Commitments and contingencies** 

**Litigation** 

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

**Unfunded investment commitments** 

As of December 31, 2024, we had unfunded commitments of $2.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**20. Employee benefits and profit interests plans** 

**Employee benefit plans** 

The Group operates a defined contribution post-employment plan. A defined contribution plan is a benefit plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the entity, typically taking the form of a fund, does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

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We pay contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The contributions are recognized as employee benefit expenses when they are due. Expenses related to the plans were $4.6 million, $2.8 million and $1.4 million for the years ended December 31, 2024, 2023 and 2022, respectively, which are included in the "General and administrative expenses" within our consolidated statements of operations.

**Cash bonus plan** 

The Group has a deferred compensation plan that entitles every employee, subject to certain qualifying criteria, to a cash bonus equal to a multiple of such employee's salary less applicable taxes upon the occurrence of a qualifying liquidity event. The amount of the cash bonus for an eligible employee will be dependent upon the valuation of the Group if the qualifying liquidity event occurs and is subject to adjustment if an employee's length of service is less than two years. All payments will be determined at the discretion of the Group Board of Directors. Any future liability recognized for this plan will be recognized at fair value at the date of initial recognition and then subsequently updated at each reporting period. Such amount will be material to our operating results in any future period.

There was no compensation cost for the cash bonus plan recognized by the Group during the years ended December 31, 2024, 2023 and 2022 as the cash bonus payments were not probable.

**Profit interests awards** 

AHLP and Mission have issued profits interest awards to certain officers and employees within our consolidated group of companies in the form of partnership shares and incentive units. As referenced in Note 16, the Partnership's profits interest awards consist of Class A3, Class B and Class C1, C2, C3 and C4 awards.

The awards require achievement of certain return thresholds and continuous service for the officers and employees to receive distributions. The awards do not represent an equity interest for accounting purposes in the Partnership or its subsidiaries. These units are accounted for as deferred compensation and compensation cost is measured according to the value of expected benefits as of each reporting date. Profits interest awards are subject to vesting over a continuous service period and forfeiture upon a recipient voluntarily resigning, in the normal course of business, regardless of such employee's length of service or vested units. Since the awards are subject to forfeiture upon termination for no value, the awards represent a deferred compensation liability rather than equity classified stock compensation. Compensation cost will be recorded to the extent payment is reasonably estimable and probable, as well as considering service requirements. Any future liability recognized for these awards will be recognized at the fair value of the awards at the date of initial recognition and then subsequently updated at each reporting period. Such amounts will be material to the Partnership's operating results in any future period.

The Group recognized $7.0 million of compensation expenses during the year ended December 31, 2024 attributable to the Mission profits interest awards as certain return thresholds and continuous services requirements were met for specific components of the business. There were no Mission profits interest awards compensation expenses for the years ended December 31, 2023 and 2022.

We did not recognize any compensation cost for the Accelerant Holdings LP profits interest awards during the years ended December 31, 2024, 2023 and 2022 as the distributions were not probable.

**21. Share-based compensation** 

**Share options granted to employees** 

During 2024, the Group granted 77,702 options to certain of its employees (which followed the grants during 2023 of 103,756 stock option awards, net of forfeitures) under its employee share incentive plan. The contractual

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term of the option awards is ten years from the grant date. The vesting terms of the option awards varied based on the date of the respective employee's date of service commencement such that a portion of the awards was typically vested as of the grant date. The vesting periods per each of the awards varied from two to four years (with either quarterly or annual partial vesting periods over those two to four year full vesting periods).

The fair value of each share option award granted was estimated on the date of grant using the following option pricing model assumptions:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Weighted average expected term (years) | 1.2 - 10.0 | 0.5 - 10.0 |
|  Risk-free interest rate | 3.82% - 4.87 | 4.14% - 5.40 |
|  Expected volatility | 31% - 38 | 32% - 37 |
|  Expected dividend yield | 0% | 0% |

---

Based on application of the Hull-White valuation method (widely used in the determination of option fair value), we estimate the expected term of the share options granted, assuming that employees exercise their options, on average, when the stock price over strike price reaches a threshold of 2.20. The risk-free interest rate is based on observed interest rates appropriate for the term of the Group's stock options. Expected volatility is based on companies at a comparable stage, as well as companies in the same or similar industry. The dividend yield assumption is based on the Group's historical and expected future dividend payouts and may be subject to change in the future.

The following table summarizes the activity related to share option awards for the year ended December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of**<br>**Options** | **Weighted-**<br>**Average**<br>**Exercise Price** | **Weighted-**<br>**Average**<br>**Remaining**<br>**Contractual**<br>**Term (Years)** | **Aggregate**<br>**Intrinsic**<br>**Value** | **Aggregate**<br>**Fair Value** |
|  Outstanding as of December 31, 2023 | 103756 | $1615.12 | 8.7 | $– $| 140.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 77702 | 1615.12 | 9.5 | – | 361.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercise |  |  |  | – |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled |  |  |  | – |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (1982) | 1615.12 |  | – |  |
|  **Outstanding as of December 31, 2024** | **179476** | $**1615.12** | **9.1** | $– **$** | **237.45** |
|  Options exercisable as of December 31, 2024 | 66597 | $1615.12 | 8.8 | $– $| 163.96 |
|  Options unvested as of December 31, 2024 | 112880 | $1615.12 | 9.2 | $– $| 278.35 |

---

For the years ended December 31, 2024 and 2023, share-based compensation expense from share option awards granted was $8.4 million and $4.8 million, respectively, which is included in "Other expenses" in our consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of December 31, 2024 and 2023 was $29.6 million and $9.6 million, respectively. The weighted average remaining requisite service period as of December 31, 2024 is 1.6 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**22. Dividend restrictions and statutory financial information** 

Subject to the Cayman Islands Exempted Limited Partnership Act (As Revised), the Second Amended and Restated Exempted Limited Partnership Agreement of the Partnership and the Amended and Restated Securityholders' Deed (the "Securityholders' Deed") between the General Partner and each of the Limited Partners, the board of directors of the General Partner may resolve to make distributions to the Limited Partners and authorize payment of the distributions out of the funds of the Partnership lawfully available.

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The Securityholders' Deed establishes mechanisms and the order of priority for the payment of distributions but, generally, distributions shall be paid pro rata among the holders of each class of interest.

Our subsidiaries are subject to certain regulatory restrictions on the distribution of capital and payment of dividends in the jurisdictions in which they operate, as described below. The restrictions are generally based on net income or levels of capital and surplus as determined in accordance with the relevant statutory accounting principles. Failure of these subsidiaries to comply with their applicable regulatory requirements could result in restrictions on any distributions of capital or retained earnings or stricter regulatory oversight of the subsidiaries.

Our ability to make distributions may also be limited by repayment obligations and financial covenants in our outstanding loan facility agreements. During the years ended December 31, 2024, 2023 and 2022, no distributions were declared or paid by AHLP to the Limited Partners. Certain of our subsidiaries paid dividends of $3.5 million, $2.9 million and $1.8 million to non-controlling interests during the years ended December 31, 2024, 2023 and 2022, respectively.

**Subsidiary statutory financial information and dividend restrictions** 

Our (re)insurance subsidiaries prepare their statutory financial statements in accordance with statutory accounting practices prescribed or permitted by local regulators. Statutory and local accounting differs from US GAAP, including in the treatment of investments, acquisition costs and deferred income taxes, amongst other items.

The statutory capital and surplus amounts as of December 31, 2024 and 2023 and statutory net income (loss) amounts for the years ended December 31, 2024, 2023 and 2022 for our insurance companies and intermediaries based in the EU, UK, US and Canada and reinsurance companies based in Bermuda and the Cayman Islands are summarized in the table below, which includes information relating to acquisitions from the year of acquisition:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | **Statutory Capital and Surplus** | | | |
|  | **Required** | **Required** | **Actual** | **Actual** | **Statutory Income (Loss)** | **Statutory Income (Loss)** | **Statutory Income (Loss)** |
| ***(in millions)*** | **2024** | **2023** | **2024 <sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2024 <sup>(1)</sup>** | **2023<sup>(2)</sup>** | **2022** |
|  EU - Belgium | $43.8 | $56.6 | $103.8 | $99.8 | $3.5 | $(52.9) | $(45.1) |
|  EU - Ireland | 7 | 6.5 | 62.3 | 53 | 54.9 | 46.4 | 44.2 |
|  US | 124.9 | 86.3 | 166.7 | 100.7 | 12.1 | (9.1) | (15.7) |
|  UK | 43.8 | 13 | 69.6 | 12.9 | (4.8) | (3.2) | (3.2) |
|  Canada | 5.5 | 5.7 | 13.8 | 12.9 | 1.8 | (0.8) |  |
|  Cayman Islands | 5.5 | 7.7 | 78.5 | 91 | (7.8) | (3.3) | (24.9) |
|  Bermuda <sup>(3)</sup> | 1 | 1 | 3.1 | 4.7 | (1.3) |  | (4.0) |

---

<sup>(1)</sup> The 2024 amounts reflect our best estimate of the statutory capital and surplus and net income as of the date of completion of these consolidated financial statements. 

<sup>(2)</sup> The amounts have been revised to reflect the final statutory capital and surplus as well as statutory net loss for 2023 as reported in the statutory financial statements. We do not view the differences from previously disclosed amounts to be qualitatively or quantitatively material to the consolidated financial statements. However, the revised amounts are being provided for the purposes of comparability with the amounts presented as of and for the year ended December 31, 2024. 

<sup>(3)</sup> Accelerant Re Ltd had not written any reinsurance business and was not making use of its license with the Bermuda Monetary Authority ("BMA"). Accelerant Re Ltd's board of directors therefore decided to voluntarily surrender such license and Accelerant Re Ltd was deregistered by the BMA in December 2023. We continue to own a segregated account with an entity that remains subject to BMA regulation. 

Certain material aspects of these laws and regulations as they relate to solvency, dividends and capital and surplus are summarized below.

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**EU — Belgium** 

Our Belgium insurance subsidiary (Accelerant Insurance Europe SA/NV) is regulated by the National Bank of Belgium ("NBB") pursuant to the Belgium Insurance Act of 2014. This subsidiary is obligated to maintain a minimum solvency margin based on the Solvency II regulations. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

The amount of dividends that this subsidiary is permitted to distribute is restricted to retained earnings, the current year profit and legal reserves (as defined). Dividends must be approved by the NBB before distribution. Solvency and capital requirements for this subsidiary are based on the Solvency II framework and must continue to be met following any distribution.

**EU — Ireland** 

Our European insurance intermediary (Accelerant Agency Limited) is registered as an insurance intermediary by the Central Bank of Ireland ("CBI") under the European Union (Insurance Distribution) Regulations, 2018 ("IDD"). This subsidiary also has a UK third branch (Accelerant Agency Limited UK Branch) which is authorized and regulated by the Financial Conduct Authority ("FCA"). The FCA's applicable regulations require that a firm must at all times ensure that it is able to meet its liabilities as they fall due and at all times maintain capital resources equal to or in excess of its relevant capital resources requirement. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

**U.S.** 

Our U.S. insurance subsidiaries are required to maintain minimum levels of solvency and liquidity as determined by law, and to comply with Risk-Based Capital ("RBC") requirements and licensing rules as required by each U.S. insurer's domiciliary state, and the states in which they operate. RBC is used to evaluate the adequacy of capital and surplus maintained by our U.S. insurance subsidiaries in relation to three major risk areas associated with asset risk, insurance risk and other risks. For both of our U.S. insurance subsidiaries, there are no prescribed or permitted statutory accounting practices that differ from the statutory accounting principles established by National Association of Insurance Commissioners and adopted by the US state regulators. Dividends must be approved by the insurance commissioner in the state of domicile before distribution. As of December 31, 2024 and 2023, our U.S. insurance subsidiaries exceeded their required levels of RBC.

**UK** 

Our UK based insurance subsidiary is regulated by the Prudential Regulatory Authority ("PRA") and the FCA. Our UK based insurance subsidiary is required to maintain adequate financial resources in accordance with the requirements of the PRA. Insurers must comply with both a Minimum Capital Requirement ("MCR") and a Solvency Capital Requirement ("SCR") calculated using the Solvency II standard formula. The calculation of the MCR and SCR is based on, among other things, the type and amount of insurance business written and claims paid by the insurance company. The PRA's rules require our UK insurance subsidiary to obtain regulatory approval for any proposed payment of a dividend. The UK Regulator considers the MCR and SCR when assessing requests to make distributions. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

**Canada** 

Our insurance subsidiary based in Canada is regulated for solvency purposes by the Office of the Superintendent of Financial Institutions ("OSFI") under the provisions of the Insurance Companies Act (Canadian Act). Our Canadian subsidiary is committed to establishing and maintaining an internal targeted capital ratio that is set above OSFI's supervisory target capital ratio. The internal targeted capital ratio is the level of capital based on the subsidiary's Own Risk and Solvency Assessment ("ORSA") that is necessary to cover the risks specified in the Minimum Capital Test Guideline (as defined) as well as other risks of the insurer. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

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**Cayman Islands** 

After evaluating the business and liquidity needs of our Cayman Islands reinsurance subsidiary, the directors may, from time to time, declare dividends to the shareholders. Such dividends shall only be paid out of our Cayman Islands reinsurance subsidiary's retained earnings and any paid-in capital in excess of par, provided that, after giving effect to each such dividend, the remaining capital is in excess of any capital requirements as prescribed by our Cayman Islands reinsurance subsidiary's Board and/or the regulator, the Cayman Islands Monetary Authority ("CIMA"). Prior notification of the payment of such dividends will be given to CIMA. Further, our Cayman Islands reinsurance subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes from time to time subject to approval from our Cayman Islands subsidiary's Board and, thereafter, prior written approval from CIMA. As of December 31, 2024 and 2023, this subsidiary held capital in excess of the applicable requirements.

**Bermuda** 

Redemption or repurchase of securities may only be paid for out of paid-up capital and profits of our Bermuda subsidiary available for dividends, or from the proceeds of a fresh issue of securities. Any premium payable on redemption may only be paid out of our Bermuda subsidiary's share premium account, profits available for dividends or out of the contributed surplus account. (A Bermuda company may only pay dividends out of profits, but distributions to shareholders can be made out of any contributed surplus). Further, our Bermuda subsidiary may consider providing loans or may otherwise extend credit to certain of its affiliated companies for non-investment purposes subject to approval from our Bermuda subsidiary's Board.

**23. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was March 27, 2025. Based upon this review, other than as described below, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

***Acquisition of an MGA***

In January 2025, the Group's subsidiary Corniche Acquisition Co. Ltd. acquired a controlling interest in the outstanding common shares of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes in the insurance of risks related to the recycling industry, for $56 million of consideration such that it owns 80.5% of Corniche's common shares. Previously, the investment in Corniche was accounted for as an equity method investment. Following the completion of the step acquisition, the Group remeasured its previously held equity interest to fair value at the acquisition date and we expect to record a gain of $2.1 million within "Net realized gains on investments" in the first quarter 2025.

***Tax residency***

On March 25, 2025, the Board of Directors of each of Accelerant Holdings and its subsidiary, Accelerant Holdings (Cayman) Ltd., (together, the "Holding Companies"), approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK, in each case determining that the Holdings Companies would be centrally managed and controlled from the UK on a prospective basis. "Central management and control" means that the strategic policy and direction of a company will be set from within the UK. Such actions are distinguished from decisions of a more day-to-day, operational nature. Becoming UK tax residents will enable the Holding Companies to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. The Company does not expect any material impact to current or deferred taxes upon the change of tax residency of the Holdings Companies. Status as a UK tax resident has no implications for the day-to-day management and operations of the Holding Companies which will remain sited in the Cayman Islands.

------

##### [**Table of Contents**](#toc)
**Schedule I** 

**Accelerant Holdings LP** 

**Summary of Investments Other Than Investments in Related Parties** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Cost** | **Fair value** | **Amount at**<br>**which shown**<br>**in the balance**<br>**sheet** |
|  **Type of Investment** |  |  |  |
|  Fixed maturity and short-term investments available for sale, at fair value <sup>(1)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $175.5 | $174.0 | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency | 128.9 | 128.2 | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency | 161.1 | 158.6 | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed | 44.4 | 43.0 | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed | 18.6 | 18.4 | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities | 22.1 | 22.1 | 22.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 550.6 | 544.3 | 544.3 |
|  Other investments, at fair value | 10.0 | 45.3 | 45.3 |
|  **Total** | $**560.6** | $**589.6** | $**589.6** |

---

<sup>(1)</sup> Original cost of fixed maturities is reduced by repayments and adjusted for amortization of premiums or accretion of discounts.

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##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Balance Sheets — Parent Company Only** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in millions, except number of shares and per share amounts)*** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 0.2 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from related parties | 0.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 4.9 | 5.2 |
|  **Total assets** | $**5.6** | $**5.6** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated losses in subsidiaries | 56.6 | 72.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 7.2 | 6.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payables and other liabilities | 1.6 | 1.6 |
|  **Total liabilities** | $**65.4** | $**80.2** |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share: shares authorized, issued and outstanding of 100; amounts are recorded at liquidation preference <sup>(2)</sup> | $**50.2** | $**44.1** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partners' common shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share, shares authorized, issued and outstanding of 8,491,134,079 | 110.6 | 110.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share: shares authorized, issued and outstanding of 693,970,910 | 12.1 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive losses | (21.0) | (9.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (211.7) | (232.3) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity <sup>(1)</sup>** | **(110.0)** | **(118.7)** |
|  **Total Equity** | **(59.8)** | **(74.6)** |
|  **Total liabilities and equity** | $**5.6** | $**5.6** |

---

<sup>(1)</sup> The Partners' convertible preference shares and convertible preference shares owned by non-Partners are considered non-controlling interests as the convertible preference shares were issued by a consolidated subsidiary and not Accelerant Holdings LP. Refer to Note 16 of the Consolidated Financial Statements for additional information. 

<sup>(2)</sup> See Note 16 of the Consolidated Financial Statements for details regarding the Class D shares and liquidation preference.

*See accompanying notes to the Condensed Financial Information of Predecessor.* 

------

##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Statements of Operations — Parent Company Only** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $0.2 | $0.1 | $— |
|  **Total revenues** | **0.2** | **0.1** | **—** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 0.4 | 0.2 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses |  |  | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses |  |  | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses | 0.3 |  | 0.3 |
|  **Total expenses** | **0.7** | **0.2** | **0.8** |
|  **Loss (income) before taxes** | **(0.5)** | **(0.1)** | **(0.8)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense |  |  |  |
|  **Net (loss) income before equity in undistributed earnings of subsidiaries** | **(0.5)** | **(0.1)** | **(0.8)** |
|  Equity in undistributed earnings of subsidiaries | 27.2 | (48.7) | (91.7) |
|  **Net income (loss)** | $**26.7** | $**(48.8)** | $**(92.5)** |

---

*See accompanying notes to the Condensed Financial Information of Predecessor.* 

------

##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Statements of Comprehensive Income (Loss) — Parent Company Only** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023** | **2022** |
|  Net income (loss) | $26.7 | $(48.8) | $(92.5) |
|  Other comprehensive (loss) income, net of tax | (11.9) | 3.4 | (19.9) |
|  **Comprehensive income (loss)** | **14.8** | **(45.4)** | **(112.4)** |

---

*See accompanying notes to the Condensed Financial Information of Predecessor.* 

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##### [**Table of Contents**](#toc)
**Schedule II** 

**Accelerant Holdings LP** 

**Condensed Financial Information of Predecessor** 

**Statements of Cash Flows — Parent Company Only** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **2024** | **2023<sup>(1)</sup>** | **2022** |
|  **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $26.7 | $(48.8) | $(92.5) |
|  **Adjustments to reconcile net income (loss) to net cash used in operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-cash revenues, expenses, gains and losses included in income (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity in undistributed earnings of subsidiaries | (27.2) | 48.7 | 91.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 0.3 |  | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Changes in operating assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to related parties | 0.1 | 0.4 | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | (0.1) | 0.5 | (4.7) |
|  **Net cash (used in) provided by operating activities** | **(0.2)** | **0.8** | **(0.1)** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of other investments |  |  | 0.3 |
|  **Net cash provided by investing activities** | **—** | **—** | **0.3** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt |  |  | (1.3) |
|  **Net cash used in financing activities** | **—** | **—** | **(1.3)** |
|  **Net increase in cash, cash equivalents and restricted cash** | (0.2) | 0.8 | (1.1) |
|  Effect of foreign currency rate change on cash, cash equivalents and restricted cash |  | (0.8) | (0.9) |
|  Cash, cash equivalents and restricted cash at beginning of the year | 0.4 | 0.4 | 2.4 |
|  **Cash, cash equivalents and restricted cash at end of the year** | $**0.2** | $**0.4** | $**0.4** |

---

<sup>(1)</sup> Disclosed amounts were revised to reflect the correction of certain errors, primarily related to the nearly equal and offsetting amounts of payment of debt (previously reported as $72.2 million) and the effect of foreign currency rate change on cash, cash equivalents and restricted cash (previously reported as $(71.3) million). In addition, equity in undistributed earnings of subsidiaries; other; and other assets, accounts payable and other liabilities were revised from previously reported amounts of $48.0 million, $0.3 million and $(0.8) million, respectively. We note that the information prescribed within Schedule II, Condensed financial information of registrant, pursuant to Regulation S-X 7-05 is required for registrants and was voluntarily provided for Accelerant Holdings LP (predecessor to the intended registrant, Accelerant Holdings). In considering such factors and no impact on overall cash flows or period end balances, we have concluded that the errors were immaterial to the previously issued financial statements. However, such disclosed amounts are being revised to enhance comparability among the periods. 

**Supplemental cash flow information:** 

For the years ended December 31, 2024, 2023 and 2022, Accelerant Holdings LP did not pay any interest on debt or income taxes.

*See accompanying notes to the Condensed Financial Information of Predecessor.* 

------

##### [**Table of Contents**](#toc)
**Notes to the Condensed Financial Information of Predecessor—Parent Company Only** 

The Condensed Financial Information of Accelerant Holdings LP (the Predecessor) should be read in conjunction with the consolidated financial statements and the accompanying notes thereto of Accelerant Holdings LP and subsidiaries as of December 31, 2024 and 2023 and for each of the three years ended December 31, 2024 (the "Consolidated Financial Statements").

The Predecessor's investments in consolidated subsidiaries are stated at cost plus equity in losses or undistributed income of consolidated subsidiaries.

The Partners' convertible preference shares and convertible preference shares owned by non-Partners, are considered non-controlling interests as the convertible preference shares were issued by a consolidated subsidiary and not Accelerant Holdings LP. Refer to Note 16 of the Consolidated Financial Statements for additional information.

------

##### [**Table of Contents**](#toc)
**Schedule III** 

**Accelerant Holdings LP** 

**Supplementary Insurance Information** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***(in millions)*** | **Deferred**<br>**acquisition**<br>**costs** | **Unpaid losses**<br>**and loss**<br>**adjustment**<br>**expenses** | **Unearned**<br>**premiums** | **Net written**<br>**premiums** | **Net**<br>**earned**<br>**premiums** | **Net**<br>**investment**<br>**income** | **Losses and**<br>**loss**<br>**adjustment**<br>**expenses** | **Amortization**<br>**of deferred**<br>**acquisition**<br>**costs** | **Other**<br>**operating**<br>**expenses <sup>(1)</sup>** |
| **2024** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $65 |
|  MGA Operations |  |  |  |  |  | 4.2 |  |  | 105.6 |
|  Underwriting | 83.4 | 1294.4 | 1803.2 | 254.6 | 226.6 | 32.6 | 167.3 | 104.2 | 90.5 |
|  Corporate and Other |  |  |  |  |  | 1.2 |  |  | 36.9 |
|  Consolidation and elimination adjustments | (22.7) |  |  |  |  |  |  | (22.8) | (56.7) |
|  **Total** | $**60.7** | $**1294.4** | $**1803.2** | $**254.6** | $**226.6** | $**39.1** | $**167.3** | $**81.4** | $**241.3** |
| **2023** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $1.1 | $— | $— | $36.2 |
|  MGA Operations |  |  |  |  |  | 2.8 |  |  | 80.6 |
|  Underwriting | 71.9 | 772.5 | 1152.1 | 190.9 | 105.1 | 12.1 | 80.3 | 68.4 | 56 |
|  Corporate and Other |  |  |  |  |  | 3.3 |  |  | 31.7 |
|  Consolidation and elimination adjustments | (18.9) |  |  |  |  |  |  | (18.5) | (26.8) |
|  **Total** | $**53.0** | $**772.5** | $**1152.1** | $**190.9** | $**105.1** | $**19.3** | $**80.3** | $**49.9** | $**177.7** |
| **2022** |  |  |  |  |  |  |  |  |  |
|  Exchange Services | $— | $— | $— | $— | $— | $0.1 | $— | $— | $26.3 |
|  MGA Operations |  |  |  |  |  | 1 |  |  | 52.6 |
|  Underwriting | 34.3 | 415.4 | 743.6 | 186 | 141.2 | 1.5 | 99.5 | 58 | 47.1 |
|  Corporate and Other |  |  |  |  |  |  |  |  | 13.4 |
|  Consolidation and elimination adjustments | (7.7) |  |  |  |  |  |  | (23.0) | (15.1) |
|  **Total** | $**26.6** | $**415.4** | $**743.6** | $**186.0** | $**141.2** | $**2.6** | $**99.5** | $**35.0** | $**124.3** |

---

<sup>(1)</sup> Consolidated Other operating expenses consists of general and administration expenses of $227.9 million, $169.2 million, and $116.1 million and technology and development operating expenses of $13.4 million, $8.5 million, and $8.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. 

------

##### [**Table of Contents**](#toc)
**Schedule IV** 

**Accelerant Holdings LP** 

**Reinsurance** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Gross**<br>**amount** | **Ceded to other**<br>**companies** | **Assumed from**<br>**other companies** | **Net**<br>**amount** | **Percentage of**<br>**amount assumed to**<br>**net** |
|  **Year Ended December 31, 2024** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | $2103.7 | $(2005.0) | $127.9 | $226.6 | 56.4% |
|  **Total premium earned** | $**2103.7** | $**(2005.0)** | $**127.9** | $**226.6** | 56.4% |
|  **Year Ended December 31, 2023** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 1304.5 | (1214.3) | 14.9 | 105.1 | 14.2% |
|  **Total premium earned** | $**1304.5** | $**(1214.3)** | $**14.9** | $**105.1** | 14.2% |
|  **Year Ended December 31, 2022** |  |  |  |  |  |
|  Premium earned: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and casualty | 779.5 | (637.4) | (0.9) | 141.2 | (0.6)% |
|  **Total premium earned** | $**779.5** | $**(637.4)** | $**(0.9)** | $**141.2** | (0.6)% |

---

------

##### [**Table of Contents**](#toc)
**Schedule V** 

**Accelerant Holdings LP** 

**Valuation and Qualifying Accounts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Balance at**<br>**beginning of year** | **Charged to costs<br>and expenses** | **Charged to**<br>**other accounts** | **(Deductions)** | **Foreign**<br>**currency**<br>**translation**<br>**adjustment** | **Balance at the**<br>**end of year** |
| **2024** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | $46.5 | $(9.7) | $8.6 | $— | $— | $45.4 |
|  Allowance for premiums receivable | 2.7 |  |  | (0.3) |  | 2.4 |
|  Allowance for reinsurance recoverables | 0.3 | 0.1 |  |  |  | 0.4 |
| **2023** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 35.2 | 11.6 | (0.3) |  |  | 46.5 |
|  Allowance for premiums receivable | 1.8 | 0.9 |  |  |  | 2.7 |
|  Allowance for reinsurance recoverables |  | 0.3 |  |  |  | 0.3 |
| **2022** |  |  |  |  |  |  |
|  Valuation allowance for deferred tax assets | 6.9 | 25.4 |  |  | 2.9 | 35.2 |
|  Allowance for premiums receivable | 1.3 | 0.5 |  |  |  | 1.8 |

---

------

##### [**Table of Contents**](#toc)
**Schedule VI** 

**Accelerant Holdings LP** 

**Supplementary Information Concerning Property/Casualty Insurance Operations** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | | | | | | | | **Losses and loss<br>adjustment expenses** | **Losses and loss<br>adjustment expenses** | | |
| **Affiliation with**<br> **Registrant** | **Deferred**<br>**policy**<br>**acquisition**<br>**costs** | **Unpaid**<br>**losses and**<br>**loss**<br>**adjustment**<br>**expenses** | **Discount,**<br>**if any** | **Unearned**<br>**premiums** | **Written**<br>**premiums** | **Net**<br>**earned**<br>**premiums** | **Net**<br>**investment**<br>**income** | **Current**<br>**year** | **Prior**<br>**years** | **Amortization**<br>**of deferred**<br>**acquisition**<br>**costs** | **Paid**<br>**claims and<br>claim**<br>**adjustment**<br>**expenses** |
|  Consolidated subsidiaries |  |  |  |  |  |  |  |  |  |  |  |
| 2024 | $60.7 | $1294.4 | $— | $1803.2 | $254.6 | $226.6 | $39.1 | $152.2 | $15.1 | $81.4 | $105.6 |
| 2023 | 53.0 | 772.5 |  | 1152.1 | 190.9 | 105.1 | 19.3 | 75.4 | 4.9 | 49.9 | 81.2 |
| 2022 | 26.6 | 415.4 |  | 743.6 | 186.0 | 141.2 | 2.6 | 94.7 | 4.8 | 35.0 | 53.3 |

---

------

##### [**Table of Contents**](#toc)
![LOGO](g543111g17i82.jpg)

------

##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Financial Statements** 

**Index** 

---

| | |
|:---|:---|
|  | **Page** |
|  **[Condensed Consolidated Interim Financial Statements:](#fin543111_800)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Consolidated Interim Financial Statements](#fin543111_801) | F-184 |
|  **[Notes to the Condensed Consolidated Financial Statements:](#fin543111_802)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 1. Nature of business and basis of presentation](#fin543111_803) | F-190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 2. Summary of significant accounting policies](#fin543111_804) | F-190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 3. Segment information](#fin543111_805) | F-191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 4. Investments](#fin543111_806) | F-196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 5. Fair value measurements](#fin543111_807) | F-200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 6. Unpaid losses and loss adjustment expenses](#fin543111_808) | F-202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 7. Reinsurance](#fin543111_809) | F-202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 8. Deferred acquisition costs and deferred ceding commissions](#fin543111_810) | F-204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 9. Debt](#fin543111_811) | F-205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 10. Business acquisitions](#fin543111_812) | F-205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 11. Share-based compensation](#fin543111_813) | F-207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 12. Income taxes](#fin543111_814) | F-207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 13. Other assets](#fin543111_815) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 14. Accounts payable and other liabilities](#fin543111_816) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 15. Related party transactions](#fin543111_817) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 16. Commitments and contingencies](#fin543111_818) | F-209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Note 17. Subsequent events](#fin543111_819) | F-210 |

---

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**Accelerant Holdings LP** 

**Condensed Consolidated Balance Sheets (unaudited)** 

---

| | | |
|:---|:---|:---|
| ***(expressed in millions of US dollars, except share data)*** | **March 31, 2025** | **December 31, 2024** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments available for sale, at fair value (amortized cost 2025: $63.9 and 2024: $65.0) | $64.2 | $64.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities available for sale, at fair value (amortized cost 2025: $583.1 and 2024: $485.6) | 582.7 | 479.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity method investments | 8.9 | 18.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 47.0 | 45.3 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total investments** | **702.8** | **607.8** |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | 1290.9 | 1273.2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable (net of allowance 2025: $2.7 and 2024: $2.4) | 863.3 | 791.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | 1708.7 | 1558.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | 1266.5 | 1069.5 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | 370.2 | 364.3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 56.3 | 60.7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangible assets, net | 114.9 | 64.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development costs | 86.9 | 83.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | 253.4 | 219.1 |
|  **Total assets** | $**6713.9** | $**6092.5** |
|  **Liabilities and equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | $1513.1 | $1294.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 1986.4 | 1803.2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 1186.4 | 1109.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 194.6 | 193.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 854.8 | 746.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | 195.1 | 201.8 |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt | 121.5 | 121.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities | 210.7 | 198.8 |
|  **Total liabilities** | **6262.6** | **5668.5** |
| &nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 16) |  |  |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Partners' redeemable preference shares** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D par value $301,248 per share: shares authorized, issued and outstanding of 100; amounts are recorded at liquidation preference | **51.8** | **50.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Partners' common shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A1 par value $0.01 per share, shares authorized, issued and outstanding of 8,491,134,079 | $110.6 | $110.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A2 par value $0.02 per share: shares authorized, issued and outstanding of 693,970,910 | 12.1 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (12.9) | (21.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (206.7) | (211.7) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total partners' equity** | **(96.9)** | **(110.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-controlling interests** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: convertible preference shares of consolidated subsidiary | 486.2 | 486.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests: other interests | 10.2 | (2.4) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total non-controlling interests** | **496.4** | **483.8** |
|  **Total equity** | **451.3** | **424.0** |
|  **Total liabilities and equity** | $**6713.9** | $**6092.5** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Operations (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceding commission income | $70.7 | $65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct commission income | 28.1 | 11.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earned premiums | 63.0 | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 12.2 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on investments | 2.3 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on investments | 1.7 | (0.8) |
|  **Total revenues** | **178.0** | **128.1** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred acquisition costs | 17.1 | 22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 70.0 | 46.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and development operating expenses | 3.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | 2.6 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 14.2 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 2.9 | (1.0) |
|  **Total expenses** | **162.4** | **116.1** |
|  **Income before income taxes** | **15.6** | **12.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | (7.7) | (9.9) |
|  **Net income** | **7.9** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for net (income) loss attributable to non-controlling interests | (1.3) | 5.0 |
|  **Net income attributable to Accelerant Holdings LP** | $**6.6** | $**7.1** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  Net income | $7.9 | $2.1 |
|  **Other comprehensive income, net of tax:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 2.3 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) on fixed maturity securities | 4.8 | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments for losses recognized in net income | 1.2 |  |
|  **Other comprehensive income, net of tax** | **8.3** | **—** |
|  **Total comprehensive income** | **16.2** | **2.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for comprehensive (income) loss attributable to non-controlling interests | (1.5) | 5.0 |
|  **Comprehensive income attributable to Accelerant Holdings LP** | $**14.7** | $**7.1** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Equity (unaudited)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class D<br>redeemable<br>preference<br>shares** | **Common shares** | **Common shares** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
| ***(expressed in millions of US dollars)*** | **Class D<br>redeemable<br>preference<br>shares** | **Class A1** | **Class A2** | **Accumulated<br>other<br>comprehensive<br>loss** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2025** |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2025** | $**50.2** | $**110.6** | $**12.1** | $**(21.0)** | $**(211.7)** | $**(110.0)** | $**483.8** | $**424.0** |
|  Net income |  |  |  |  | 6.6 | 6.6 | 1.3 | 7.9 |
|  Other comprehensive income |  |  |  | 8.1 |  | 8.1 | 0.2 | 8.3 |
|  Accretion on preferred shares | 1.6 |  |  |  | (1.6) | (1.6) |  |  |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 2.4 | 2.4 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (2.3) | (2.3) |
|  Issuance of non-controlling interests <sup>(1)</sup> |  |  |  |  |  |  | 11.0 | 11.0 |
|  **Balance, March 31, 2025** | $**51.8** | $**110.6** | $**12.1** | $**(12.9)** | $**(206.7)** | $**(96.9)** | $**496.4** | $**451.3** |

---

<sup>(1)</sup> Refer to Note 10 for information related to the acquisition of a controlling interest in a subsidiary which gave rise to recognition of a non-controlling interest in consolidation.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class D<br>redeemable<br>preference<br>shares** | **Common shares** | **Common shares** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
| ***(expressed in millions of US dollars)*** | **Class D<br>redeemable<br>preference<br>shares** | **Class A1** | **Class A2** | **Accumulated<br>other<br>comprehensive<br>(loss) income** | **Accumulated<br>deficit** | **Total<br>Partners'<br>Equity** | **Non-<br>controlling<br>interests** | **Total<br>equity** |
|  **Three Months Ended March 31, 2024** |  |  |  |  |  |  |  |  |
|  **Balance, January 1, 2024** | $**44.1** | $**110.6** | $**12.1** | $**(9.1)** | $**(232.3)** | $**(118.7)** | $**358.7** | $**284.1** |
|  Net income (loss) |  |  |  |  | 7.1 | 7.1 | (5.0) | 2.1 |
|  Accretion of preference shares | 1.5 |  |  |  | (1.5) | (1.5) |  |  |
|  Share-based compensation on consolidated subsidiary |  |  |  |  |  |  | 2.2 | 2.2 |
|  Dividends paid to non-controlling interests |  |  |  |  |  |  | (1.6) | (1.6) |
|  **Balance, March 31, 2024** | $**45.6** | $**110.6** | $**12.1** | $**(9.1)** | $**(226.7)** | $**(113.1)** | $**354.3** | $**286.8** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Cash Flows (unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $7.9 | $2.1 |
|  **Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |
|  **Non-cash revenues, expenses, gains and losses included in net income:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gains on investments | (2.3) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gains) losses on investments | (1.7) | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings from equity method investments | (0.5) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 2.4 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 7.4 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax expenses (benefits) | 0.3 | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net foreign exchange losses (gains) | 2.9 | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discount on fixed maturity securities and short-term investments | (1.8) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 0.2 | 0.4 |
|  **Changes in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable | (55.7) | (10.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded unearned premiums | (138.0) | (90.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE | (188.7) | (33.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other reinsurance recoverables | (2.0) | (34.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 4.3 | (2.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid losses and loss adjustment expenses | 194.2 | 102.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 155.0 | 95.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to reinsurers | 66.6 | 112.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred ceding commissions | 7.5 | 8.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funds held under reinsurance | 108.0 | 57.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance balances payable | (8.6) | (13.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets, accounts payable and other liabilities | (65.6) | (49.0) |
|  **Net cash provided by operating activities** | **91.8** | **144.0** |
|  **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 114.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | 26.4 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maturities of fixed maturity securities | 15.8 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed maturity securities | (126.9) | (161.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short-term investments | 2.5 | (45.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized technology development expenditures | (6.6) | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (0.9) | (2.4) |
|  **Net cash used in investing activities** | **(89.7)** | **(90.1)** |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt |  | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interest | (2.3) | (1.4) |
|  **Net cash used in financing activities** | **(2.3)** | **(1.9)** |
|  **Net increase in cash, cash equivalents and restricted cash** | **(0.2)** | **52.0** |
|  Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 17.9 | (2.6) |
|  Cash, cash equivalents and restricted cash at beginning of period | 1273.2 | 775.8 |
|  **Cash, cash equivalents and restricted cash at end of period** | $**1290.9** | $**825.2** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Condensed Consolidated Statements of Cash Flows (unaudited) (continued)** 

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(expressed in millions of US dollars)*** | **2025** | **2024** |
|  **Supplemental cash flows information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt paid | $2.6 | $2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | 3.3 | 2.0 |
|  **Reconciliation to Consolidated Balance Sheets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1238.2 | 823.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash and cash equivalents  | 52.7 | 1.6 |
|  **Total cash, cash equivalents and restricted cash** | $**1290.9** | $**825.2** |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Accelerant Holdings LP** 

**Notes to Condensed Consolidated Financial Statements (unaudited)** 

**1. Nature of business and basis of presentation** 

Accelerant Holdings LP ("AHLP") is a Cayman Islands exempted limited partnership, formed in December 2018 with capital provided by initial investors, which included entities affiliated with Altamont Capital Partners, a private equity firm, as well as certain members of the Partnership's executive management team. AHLP is the ultimate parent of the Accelerant Holdings group of companies ("Accelerant Holdings" or the "Group"). Accelerant Holdings, together with its risk capital partners, provides property and casualty insurance to policyholders via its network of Members, which are typically Managing General Agents ("MGAs"). AHLP, together with its subsidiary companies ("we", "us", "our" or the "Partnership") focuses on small-to-medium sized commercial clients primarily in the United States ("US"), Europe ("EU"), Canada and the United Kingdom ("UK").

Accelerant Holdings is the primary operating holding company of the Group.

Accelerant Holdings (Cayman) Ltd ("Accelerant Cayman") is a holding company incorporated in the Cayman Islands and is the entity which owns the underlying operating group companies engaged in the Accelerant business.

These unaudited condensed consolidated interim financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") for interim financial information. Accordingly, they do not include all of the financial information and note disclosures required by US GAAP for complete consolidated financial statements. The condensed consolidated interim financial statements are presented in US Dollars and all amounts are in millions, except for the number of shares, per share amounts and the number of securities.

In our opinion, these unaudited condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature necessary to fairly state our financial position as of March 31, 2025, our results of operations and cash flows for the three months ended March 31, 2025 and 2024. The results of operations for any interim period are not necessarily indicative of results for the full year.

These unaudited condensed consolidated financial statements and related notes should be read in conjunction with our consolidated financial statements and related notes included in our annual financial statements for the year ended December 31, 2024. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP.

**2. Summary of significant accounting policies** 

There were no material changes to our significant accounting policies from those that were disclosed in our annual consolidated financial statements as of and for the year ended December 31, 2024.

***Future application of accounting standards***

*<u>Disaggregation of Income Statement Expenses:</u>* In November 2024, the FASB issued ASU 2024-03 *Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses,* requiring new interim and annual disclosures that provide transparency about the components of expenses included in the income statement and enhance an investor's ability to forecast future performance. The standard requires disclosure of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts of employee compensation, depreciation, intangible asset amortization, and certain other costs
included in each relevant expense caption as well as the inclusion of certain amounts already required to be disclosed under existing US GAAP in the same disclosure;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total amount of selling expenses and, in annual reporting periods, an entity's definition of selling
expenses.

The standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard.

*<u>Income Tax:</u>* In December 2023, the FASB issued ASU 2023-09 *Income Taxes (Topic 740) — Improvements to Income Tax Disclosures*, to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of specific categories in the rate reconciliation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of additional information for reconciling items that meet a quantitative
threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
federal (national), state, and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure, on an annual basis, of the amount of income taxes paid (net of refunds received) disaggregated by
individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated
between domestic and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national),
state, and foreign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the nature and estimate of the range of the reasonably possible change
in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Elimination of the requirement to disclose the cumulative amount of each type of temporary difference when a
deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The standard is effective for public companies for annual periods beginning after December 15, 2024 (and December 15, 2025 for nonpublic companies), with early adoption permitted. The standard will be applied on a prospective basis with the option to apply the standard retrospectively. This standard will not have any impact to the amounts recorded within our consolidated financial statements, but will result in expanded disclosures. We are assessing the impact of this standard on our disclosures as well as the period in which we will adopt.

**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 the CODM assesses performance of the business and makes decisions on the allocation of resources.

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***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 Partnership 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. 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 deferred acquisition costs ("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).

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The following includes the financial results of our three reportable segments for the three months ended March 31, 2025 and 2024. Corporate functions and certain other businesses and operations are included in Corporate and Other.

***Financial information by segment:***

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income | $— | $— | $19.2 | $19.2 | $— | $51.5 | $70.7 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 59.0 | 31.5 |  | 90.5 |  | (90.5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 11.2 | 16.9 |  | 28.1 |  |  | 28.1 |
|  Net earned premiums |  |  | 63.0 | 63.0 |  |  | 63.0 |
|  Net investment income | 0.6 | 0.9 | 10.0 | 11.5 | 0.7 |  | 12.2 |
|  Net realized gains on investments |  | 2.0 | 0.3 | 2.3 |  |  | 2.3 |
|  Net unrealized gains on investments |  |  |  |  | 1.7 |  | 1.7 |
|  **Segment revenues** | **70.8** | **51.3** | **92.5** | **214.6** | **2.4** | **(39.0)** | **178.0** |
|  Losses and loss adjustment expenses |  |  | 45.2 | 45.2 |  |  | 45.2 |
|  Amortization of deferred acquisition costs |  |  | 24.8 | 24.8 |  | (7.7) | 17.1 |
|  General and administrative expenses <sup>(2) (3)</sup> | 20.8 | 31.2 | 11.5 | 63.5 | 14.6 | (8.1) | 70.0 |
|  Technology and development operating expenses | 3.0 |  |  | 3.0 |  |  | 3.0 |
|  **Adjusted EBITDA** | $**47.0** | $**20.1** | $**11.0** | $**78.1** | $**(12.2)** | $**(23.2)** | $**42.7** |
|  Interest expenses |  |  |  |  |  |  | (2.6) |
|  Depreciation and amortization |  |  |  |  |  |  | (7.4) |
|  Other expenses <sup>(4)</sup> |  |  |  |  |  |  | (14.2) |
|  Net foreign exchange losses |  |  |  |  |  |  | (2.9) |
|  **Income before income taxes** |  |  |  |  |  |  | $**15.6** |

---

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

<sup>(2)</sup> 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: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $13.9 | $21.3 | $6.2 | $41.4 |
|  Consulting and professional fees | 3.8 | 3.3 | 2.6 | 9.7 |
|  Other administrative expenses | 3.1 | 6.6 | 2.7 | 12.4 |
|  **Total general and administrative expenses** | $**20.8** | $**31.2** | $**11.5** | $**63.5** |

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<sup>(3)</sup> 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. 

<sup>(4)</sup> Other expenses for the three months ended March 31, 2025 consist of $4.6 million of system development non-operating expenses, $3.6 million of professional costs related to corporate development activities, $2.4 million of share-based compensation, $1.6 million of Mission profits sharing expense and $2.0 million of individually insignificant costs. 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **Exchange<br>Services** | **MGA<br>Operations** | **Underwriting** | **Total<br>Segments** | **Corporate<br>and Other <sup>(1)</sup>** | **Consolidation<br>and<br>elimination<br>adjustments** | **Total** |
|  **Revenues** |  |  |  |  |  |  |  |
|  Ceding commission income <sup>(2)</sup> | $— | $— | $29.8 | $29.8 | $— | $35.2 | $65 |
|  Direct commission income |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated entities | 36.5 | 20.5 |  | 57 |  | (57.0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities | 5 | 6.6 |  | 11.6 |  |  | 11.6 |
|  Net earned premiums |  |  | 44 | 44 |  |  | 44 |
|  Net investment income | 0.1 | 0.7 | 7.1 | 7.9 |  |  | 7.9 |
|  Net realized gains on investments |  |  | 0.4 | 0.4 |  |  | 0.4 |
|  Net unrealized losses on investments |  |  | (0.8) | (0.8) |  |  | (0.8) |
|  **Segment revenues** | **41.6** | **27.8** | **80.5** | **149.9** | **—** | **(21.8)** | **128.1** |
|  Losses and loss adjustment expenses |  |  | 28.7 | 28.7 |  |  | 28.7 |
|  Amortization of deferred acquisition costs |  |  | 29.2 | 29.2 |  | (6.4) | 22.8 |
|  General and administrative expenses <sup>(3) (4)</sup> | 11.7 | 24.7 | 15.5 | 51.9 | 3.5 | (8.9) | 46.5 |
|  Technology and development operating expenses | 2.6 |  |  | 2.6 |  |  | 2.6 |
|  **Adjusted EBITDA** | $**27.3** | $**3.1** | $**7.1** | $**37.5** | $**(3.5)** | $**(6.5)** | $**27.5** |
|  Interest expenses |  |  |  |  |  |  | (3.0) |
|  Depreciation and amortization |  |  |  |  |  |  | (4.9) |
|  Other expenses <sup>(5)</sup> |  |  |  |  |  |  | (8.6) |
|  Net foreign exchange gains |  |  |  |  |  |  | 1 |
|  **Income before income taxes** |  |  |  |  |  |  | $**12.0** |

---

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

<sup>(2)</sup> 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.

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<sup>(3)</sup> 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: 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Exchange Services** | **MGA Operations** | **Underwriting** | **Total** |
|  Employee compensation and benefits | $8.7 | $18.0 | $9.2 | $35.9 |
|  Consulting and professional fees | 1.9 | 1.7 | 6.0 | 9.6 |
|  Other administrative expenses | 1.1 | 5.0 | 0.3 | 6.4 |
|  **Total general and administrative expenses** | $**11.7** | $**24.7** | $**15.5** | $**51.9** |

---

<sup>(4)</sup> 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. 

<sup>(5)</sup> Other expenses for the three months ended March 31, 2024 consists of $2.7 million of system development non-operating costs, $2.6 million of professional costs related to corporate development activities, $2.2 million of share-based compensation and $1.1 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 months ended March 31, 2025 and 2024.

Our revenues by geography were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $49.0 | $21.7 | $70.7 |
|  Direct commission income | 14.0 | 14.1 | 28.1 |
|  Net earned premiums | 15.1 | 47.9 | 63.0 |
|  Net investment income | 7.4 | 4.8 | 12.2 |
|  Net realized gains on investments | 0.2 | 2.1 | 2.3 |
|  Net unrealized gains on investments | 1.7 |  | 1.7 |
|  **Total revenues** | $**87.4** | $**90.6** | $**178.0** |

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** | **Three Months Ended March 31, 2024** |
| ***(in millions)*** | **North America** | **UK and EU** | **Total** |
|  Ceding commission income <sup>(1)</sup> | $30.2 | $34.8 | $65.0 |
|  Direct commission income | 5.5 | 6.1 | 11.6 |
|  Net earned premiums | 25.6 | 18.4 | 44.0 |
|  Net investment income | 3.9 | 4.0 | 7.9 |
|  Net realized gains on investments |  | 0.4 | 0.4 |
|  Net unrealized losses on investments |  | (0.8) | (0.8) |
|  **Total revenues** | $**65.2** | $**62.9** | $**128.1** |

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<sup>(1)</sup> For further information on the impacts of sliding scale commission adjustments on our ceding commission income for the three months ended March 31, 2025 and 2024 resulting from the loss experience of covered insurance contracts, refer to Note 8.

**4. Investments** 

***Unrealized gains and losses on available for sale fixed maturity and short-term investments, at fair value***

The amortized cost, gross unrealized gains, gross unrealized losses and fair values of fixed maturity and short-term investments, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $223.3 | $1.3 | $(1.3) | $223.3 |
|  US government and agency | 154.9 | 0.9 | (0.3) | 155.5 |
|  Non-US government and agency | 175.2 | 0.9 | (1.5) | 174.6 |
|  Residential mortgage-backed | 46.0 | 0.3 | (0.7) | 45.6 |
|  Commercial mortgage-backed | 20.9 | 0.2 |  | 21.1 |
|  Other asset-backed securities | 26.7 | 0.1 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**647.0** | $**3.7** | $**(3.8)** | $**646.9** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Amortized<br>cost** | **Gross<br>unrealized<br>gains** | **Gross<br>unrealized<br>losses** | **Fair<br>value** |
|  Corporate | $175.5 | $0.8 | $(2.3) | $174.0 |
|  US government and agency | 128.9 | 0.1 | (0.8) | 128.2 |
|  Non-US government and agency | 161.1 | 0.5 | (3.0) | 158.6 |
|  Residential mortgage-backed | 44.4 | 0.1 | (1.5) | 43.0 |
|  Commercial mortgage-backed | 18.6 |  | (0.2) | 18.4 |
|  Other asset-backed securities | 22.1 | 0.1 | (0.1) | 22.1 |
|  **Total fixed maturity and short-term investments** | $**550.6** | $**1.6** | $**(7.9)** | $**544.3** |

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The following table summarizes, for all our available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $75.9 | $(1.3) | $— | $— | $75.9 | $(1.3) |
|  US government and agency | 31.7 | (0.1) | 4.7 | (0.2) | 36.4 | (0.3) |
|  Non-US government and agency | 76.7 | (1.5) |  |  | 76.7 | (1.5) |
|  Residential mortgage-backed | 15.0 | (0.2) | 3.4 | (0.5) | 18.4 | (0.7) |
|  **Total fixed maturity and short-term investments** | $**199.3** | $**(3.1)** | $**8.1** | $**(0.7)** | $**207.4** | $**(3.8)** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Less than 12 months** | **Less than 12 months** | **12 Months or more** | **12 Months or more** | **Total** | **Total** |
| ***(in millions)*** | **Fair<br>value** | **Gross<br>unrealized<br>losses** | **Fair<br>value** | **Gross**<br>**unrealized**<br>**losses** | **Fair**<br>**value** | **Gross**<br>**unrealized**<br>**losses** |
|  Corporate | $85.4 | $(2.2) | $6.5 | $(0.1) | $91.9 | $(2.3) |
|  US government and agency | 66.3 | (0.6) | 4.7 | (0.2) | 71.0 | (0.8) |
|  Non-US government and agency | 93.5 | (3.0) |  |  | 93.5 | (3.0) |
|  Residential mortgage-backed | 29.0 | (0.8) | 5.1 | (0.7) | 34.1 | (1.5) |
|  Commercial mortgage-backed | 13.2 | (0.2) | 0.5 |  | 13.7 | (0.2) |
|  Other asset-backed securities | 12.1 | (0.1) |  |  | 12.1 | (0.1) |
|  **Total fixed maturity and short-term investments** | $**299.5** | $**(6.9)** | $**16.8** | $**(1.0)** | $**316.3** | $**(7.9)** |

---

We did not recognize the unrealized losses in earnings on these fixed maturity and short-term investments at March 31, 2025 and December 31, 2024 because we determined that such losses were due to non-credit factors that are temporary in nature. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

***Contractual maturity***

The amortized cost and fair values of our fixed maturity and short-term investments by contractual maturity were as follows:

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Amortized cost** | **Fair value** |
|  Due in one year or less | $114.2 | $114.4 |
|  Due after one year through five years | 342.6 | 343.7 |
|  Due after five years through ten years | 89.2 | 88.3 |
|  Due after ten years | 7.4 | 7.0 |
|  Residential mortgage-backed | 46.0 | 45.6 |
|  Commercial mortgage-backed | 20.9 | 21.1 |
|  Other asset-backed securities | 26.7 | 26.8 |
|  **Total** | $**647.0** | $**646.9** |

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The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties.

***Equity method and other investments***

We have made investments in private equity funds focused on insurance technology ventures, certain MGAs that form part of our distribution network and a technology focused third-party claim administrator ("TPA") that provides services to certain of our Members. Such strategic investments are generally accounted for using the equity method of accounting and are included as equity method investments in the financial statements or, in cases where we have elected the measurement alternative, accounted for at fair value based on observable price changes or impairment within Other investments.

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Details regarding our equity method investments were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Ownership %** | **Carrying value** | **Ownership %** | **Carrying value** |
|  MGAs <sup>(1)</sup> | 19.0% - 20.0% | $2.2 | 19.0% - 20.0% | $11.0 |
|  Other | 9.4% - 15.0% | 6.7 | 9.4% - 15.0% | 7.2 |
|  **Equity method investments** |  | $**8.9** |  | $**18.2** |

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<sup>(1)</sup> During the first quarter of 2025, we acquired a controlling interest in an MGA subsidiary that we previously accounted for as an equity method investment. Refer to Note 10 for additional information.

In applying the equity method of accounting, we record investments initially at cost and subsequently adjust their carrying value based on our proportionate share of the net income or loss of the investment. As permitted by the applicable accounting guidance, we generally record such investments on a one-to-three-month lag. Our maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in our consolidated balance sheet and any unfunded commitments. As of March 31, 2025, we had unfunded commitments of $7.0 million to our equity method investees.

For the three months ended March 31, 2025 and 2024, we received dividends from equity method investees of $0.9 million and $0.2 million, respectively.

Details regarding the carrying value of our other investments portfolio were as follows:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  **Investment type:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $27.9 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds | 19.1 | 19.1 |
|  **Other investments** | $**47.0** | $**45.3** |

---

We have elected the measurement alternative to carry private equity investments in venture funds, ordinary stocks, warrants and stock options of MGAs and TPAs that qualify for the equity method basis of accounting and that do not have a readily determinable fair value, at cost, less any impairment. If observable prices in identical or similar investments from the same issuer are observed, we measure the equity investment at fair value as of the date that such observable transaction occurs.

For the three months ended March 31, 2025, there were no impairments and we recorded $1.7 million of income as a component of unrealized gains following observable prices related to these investments. For the three months ended March 31, 2024, there were no impairments and no observable transaction prices based on orderly transaction prices for the identical or similar investments of the same issuer.

We have recognized cumulative income as a component of unrealized gains of $37.1 million, net of cumulative impairments of $0.2 million associated with investments accounted for under the measurement alternative from inception of the related investments.

As of March 31, 2025, we had unfunded commitments of $2.2 million to venture funds.

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***Net investment income***

Investment income and expenses were as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Interest on cash and cash equivalents | $6.6 | $5.0 |
|  Interest on fixed maturity investments | 5.3 | 2.7 |
|  Income from equity method investments | 0.5 | 0.3 |
|  **Gross investment income** | **12.4** | **8.0** |
|  Investment expenses | (0.2) | (0.1) |
|  **Net investment income** | $**12.2** | $**7.9** |

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***Net realized and unrealized gains (losses) on investments***

The following table presents net realized and unrealized gains (losses) on our investments:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Net realized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) on fixed maturity and short-term investments | $0.3 | $(0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity securities sold during the period |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains on equity method investments | 2.0 |  |
|  **Net realized gains on investments** | $**2.3** | $**0.4** |
|  **Net unrealized gains (losses) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized losses on equity securities held at the reporting date |  | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments <sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | 1.7 |  |
|  **Net unrealized gains (losses) on investments** | $**1.7** | $**(0.8)** |
|  **Net realized and unrealized gains (losses) on investments** | $**4.0** | $**(0.4)** |

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<sup>(1)</sup> Amounts correspond to income arising from our equity investments accounted for under the measurement alternative (as described above). 

***Regulated deposits and restricted assets***

Certain subsidiaries of the Group are required to maintain assets on deposit with various regulatory authorities to support our insurance and reinsurance operations. Securities on deposit for regulatory and other purposes were $4.9 million as of March 31, 2025 and December 31, 2024, which are included in the "Fixed maturity securities available for sale, at fair value" in our condensed consolidated balance sheets.

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The following table represents the restricted assets we have pledged in favor of certain ceding companies to collateralized obligations:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Short-term investments | $17.3 | $17.2 |
|  Fixed maturity securities | 33.6 | 33.0 |
|  Cash and cash equivalents | 52.7 | 47.3 |
|  **Total** | $**103.6** | $**97.5** |

---

**5. Fair value measurements** 

Assets recorded at fair value in our condensed consolidated balance sheets are measured and classified in accordance with a fair value hierarchy consisting of three "levels" based on the observability of valuation inputs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Financial assets and liabilities for which inputs are observable and are obtained from reliable
quoted prices in active markets for identical assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Financial assets and liabilities for which values are based on quoted prices in markets that are
not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Financial assets and liabilities for which values are based on prices or valuation techniques that
require inputs that are both unobservable and significant to the overall fair value measurement. The valuation of Level 3 assets and liabilities requires the greatest degree of judgment. These measurements may be made when there is little, if
any, market activity for the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, we consider factors specific to the asset. In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.

There were no material changes to valuation methodologies of assets measured at fair value.

***Fair value measurements on a recurring basis***

Our financial assets and liabilities measured at fair value on a recurring basis by level were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $223.3 | $— | $223.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 155.5 |  | 155.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 174.6 |  | 174.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 45.6 |  | 45.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 21.1 |  | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 26.8 |  | 26.8 |
|  **Total fixed maturity and short-term investments** | $**—** | $**646.9** | $**—** | $**646.9** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Fixed maturity and short-term investments measured at fair value:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate | $— | $174.0 | $— | $174.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US government and agency |  | 128.2 |  | 128.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-US government and agency |  | 158.6 |  | 158.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed |  | 43.0 |  | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed |  | 18.4 |  | 18.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset-backed securities |  | 22.1 |  | 22.1 |
|  **Total fixed maturity and short-term investments** | $**—** | $**544.3** | $**—** | $**544.3** |

---

There were no transfers between Level 1, Level 2, or Level 3 for the three months ended March 31, 2025 and for the year ended December 31, 2024.

***Fair value measurements on a non-recurring basis***

We measure the fair value of certain assets on a non-recurring basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include our investments in limited partnerships reported in "Other investments" in our condensed consolidated balance sheets.

The following table presents assets measured at fair value on a non-recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs and TPAs | $— | $— | $27.9 | $27.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**47.0** | $**47.0** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***(in millions)*** | **Quoted prices in<br>active markets for<br>identical assets<br>Level 1** | **Significant other<br>observable**<br>**Level 2** | **Significant<br>unobservable<br>inputs**<br>**Level 3** | **Estimated fair<br>value** |
|  **Assets measured at fair value:** |  |  |  |  |
|  Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MGAs | $— | $— | $26.2 | $26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Venture funds |  |  | 19.1 | 19.1 |
|  **Total** | $**—** | $**—** | $**45.3** | $**45.3** |

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***Fair value information about financial instruments not measured at fair value***

Our estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts) is discussed below:

*<u>Debt</u>****:*** As further described in Note 9, given the frequency with which the variable interest rates on our senior unsecured debt reset, the carrying value of our debt measured at amortized cost approximates its fair value as of March 31, 2025 and December 31, 2024. The debt is classified as Level 2.

*<u>Remaining financial assets and liabilities</u>:* Our remaining financial assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature, approximates their fair value as of March 31, 2025 and December 31, 2024.

**6. Unpaid losses and loss adjustment expenses** 

Activity in unpaid losses and loss adjustment expenses ("LAE") reserve is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Gross reserve for unpaid losses and LAE, beginning of year | $1294.4 | $772.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Reinsurance recoverables, beginning of year | 1069.5 | 605.5 |
|  **Net reserve for unpaid losses and LAE, beginning of year** | **224.9** | **167.0** |
|  Incurred losses and LAE related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | 45.2 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years |  |  |
|  **Total incurred losses and LAE** | **45.2** | **28.7** |
|  Paid losses and LAE: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current accident year | (1.9) | (2.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior accident years | (26.7) | (21.0) |
|  **Total paid losses and LAE** | **(28.6)** | **(23.0)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange adjustments | 5.1 | (4.4) |
|  **Net reserve for unpaid losses and LAE, end of period** | **246.6** | **168.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on unpaid losses and LAE, end of period | 1266.5 | 695.0 |
|  **Gross reserve for unpaid losses and LAE, end of period** | $**1513.1** | $**863.3** |

---

Reserves for losses and LAE represent our estimated indemnity cost and related adjustment expenses necessary to administer and settle claims. Our estimates are based upon individual case estimates for reported claims set by our claims specialists, adjusted with actuarial estimates for any further expected development on reported claims and for losses that have been incurred, but not yet reported.

**7. Reinsurance** 

The Group enters into reinsurance agreements to limit its exposure to large losses and to enable it to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

The Group uses extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage its exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align the Group's interests with those of its reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

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The impact of reinsurance on earned premiums and loss and loss adjustment expenses is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  **Written premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $800.8 | $532.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 73.2 | 18.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (801.6) | (495.5) |
|  **Net written premiums** | $**72.4** | $**55.6** |
|  **Earned premiums:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $642.1 | $436.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 76.7 | 14.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (655.8) | (406.7) |
|  **Net earned premiums** | $**63.0** | $**44.0** |
|  **Loss and LAE:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct | $365.5 | $227.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assumed | 17.3 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ceded | (337.6) | (206.0) |
|  **Net loss and LAE** | $**45.2** | $**28.7** |

---

***Reinsurance recoverables***

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances are as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Reinsurance recoverables on unpaid losses and LAE | $1266.5 | $1069.5 |
|  Other reinsurance recoverables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverables on paid losses and LAE | 292.6 | 281.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposit assets | 77.6 | 82.9 |
|  **Total other reinsurance recoverables** | **370.2** | **364.3** |
|  **Reinsurance recoverables** | $**1636.7** | $**1433.8** |

---

For the three months ended March 31, 2025, the Group reduced the deposit assets by $5.3 million attributed to actual recoveries. The deposit asset reported as of March 31, 2025, is comprised of expected recoveries of $77.6 million, net of accretion, calculated using the interest method.

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. The Group evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from its exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, the Group has received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of March 31, 2025, 56% were with reinsurers having an A.M. Best rating of A- (excellent) or better, and the Group requires reinsurance

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recoverables with reinsurers that are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables. The credit valuation allowance was $0.5 million and $0.4 million as of March 31, 2025 and December 31, 2024, respectively.

**8. Deferred acquisition costs and deferred ceding commissions** 

The following table presents the amounts of policy acquisition costs deferred and amortized for insurance business retained by the Group:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $60.7 | $53.0 |
|  Direct commissions and other acquisition costs on retained business | 12.7 | 23.3 |
|  Amortization of deferred acquisition costs | (17.1) | (22.8) |
|  Foreign currency translation |  | (0.7) |
|  **Balance as of March 31,** | $**56.3** | $**52.8** |

---

The following table presents the amounts of ceding commission deferred and amortized:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| ***(in millions)*** | **2025** | **2024** |
|  Balance as of January 1, | $193.0 | $120.4 |
|  Deferral of excess ceding commission income over deferred acquisition costs | 73.2 | 69.2 |
|  Amortization of deferred excess ceding commission to income | (70.7) | (65.0) |
|  Foreign currency translation | (0.9) | 3.4 |
|  **Balance as of March 31,** | $**194.6** | $**128.0** |

---

The Group cedes a significant portion of its premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

The Group's contractual acquisition costs are expressed as a percentage of the underlying premiums by type of insurance policy. Certain agreements with our Members include sliding scale adjustments to acquisition cost based on the actual loss experience of the insurance contracts they write, such that our ultimate acquisition cost inversely changes relative to the loss ratio (i.e., adverse experience in the loss ratio will result in a reduction in the related acquisition cost and, conversely, any favorable experience in the loss ratio will result in an increase in the acquisition cost).

Certain of the Group's reinsurance arrangements are subject to sliding scale adjustments pursuant to the agreements with various reinsurers based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected

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contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commission will result in a change to the deferred ceding commissions liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the three months ended March 31, 2024 included reductions of $2.5 million due to net sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. There was no net sliding scale commission adjustment during the three months ended March 31, 2025.

**9. Debt** 

The Group had the following senior unsecured debt outstanding as of March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Senior unsecured debt | $125.0 | $125.0 |
|  Less: unamortized debt issuance costs | (3.5) | (3.6) |
|  **Senior unsecured debt** | $**121.5** | $**121.4** |

---

The Group has a senior unsecured syndicated US dollar denominated loan facility with a September 2029 maturity date with an aggregate outstanding principal balance of $125 million. The credit agreement includes a $50 million revolving credit facility (which was unutilized and available as of March 31, 2025).

The senior notes are senior unsecured obligations and include a delayed draw term loan ("DDTL") feature that allows the Group to withdraw predefined amounts. Incremental facilities up to an additional $75 million are available to draw upon request, subject to the agreement of the lenders.

Partial quarterly repayments of the aggregate principal amount are required until the maturity date. Interest payments on the senior notes are due at the end of each period, being a certain month or quarter during which the applicable interest rate has been reset. The interest rate is subject to a sliding scale based on the Group's consolidated senior debt to capitalization ratio and varies between a 3.4% and 4.0% spread in addition to the Secured Overnight Financing Rate ("SOFR"). Interest is calculated based on a 360-day year of twelve 30-day months. Interest expense for the three months ended March 31, 2025 and 2024 was $2.6 million and $3.0 million, respectively.

Subject to conditions of optional prepayment, the Group may voluntarily prepay the senior notes at any time and from time to time, prior to the maturity date without penalty. Any prepayment, in whole or in part, shall include any accrued and unpaid interest thereon to, but excluding, the prepayment date. Any amounts the Group prepay may not be reborrowed.

The senior notes contain certain restrictive and maintenance covenants customary for facilities of this type, including restrictions on minimum consolidated net worth, maximum leverage levels and a minimum interest coverage ratio. As of March 31, 2025, the Group was in compliance with all such covenants.

**10. Business acquisitions** 

In January 2025, the Group's consolidated subsidiary Corniche Acquisition Co. Ltd. acquired an additional 61% of the outstanding share capital of Corniche Underwriting Ltd. ("Corniche"), a UK based MGA that specializes

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in the insurance of risks related to the recycling industry, in exchange for $56.2 million of consideration consisting of i) $17.1 million of cash paid at acquisition, and an additional $17.1 million of cash to be paid over two equal installments due in June 2025 and January 2026 that is reflected as a payable within "Accounts payable and other liabilities" in our condensed consolidated balance sheets as of March 31, 2025); ii) the Group's previously held equity interest of $11.0 million; and iii) the non-controlling interests of $11.0 million. The acquisition of the additional 61% interest increased our ownership in Corniche from 19.5% to 80.5%. Previously, the Group accounted for the investment in Corniche as an equity method investment. Following the completion of the step acquisition, the Group remeasured its previously held equity interest to fair value at the step acquisition date. Accordingly, the Group recorded a revaluation gain of $2.0 million within "Net realized gains on investments" in our condensed consolidated statements of operations.

The fair value of the assets acquired and liabilities assumed and non-controlling interest was estimated using an income approach. Key assumptions included market-observable inputs and management's estimates of nominal cash flows. The purchase consideration was allocated to the estimated fair value of the tangible and identifiable intangible assets acquired less liabilities assumed at the date of the acquisition. The Group's purchase price allocation related to the acquisitions is provisional and could change in subsequent periods to reflect new information obtained about the facts and circumstances that existed as of the acquisition date, which if known, would have affected the measurement of the amounts recognized as of the acquisition date. The Group may recognize measurement period adjustments to the provisional amounts in future periods, but no later than one year from the closing date (referred to as the "measurement period"). The Group recorded goodwill from this acquisition, primarily attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes.

Our consolidated financial statements include the results of this acquisition after the respective closing date. Revenue, net income, as well as pro forma information is not presented as such results of operations would not be materially different to the actual results of operations of AHLP. The acquisition-related costs incurred during the three months ended March 31, 2025 were $0.7 million.

The following table provides our preliminary purchase accounting financial information for the Corniche acquisition:

---

| | |
|:---|:---|
| ***(in millions)*** | **2025** |
|  **Assets acquired:** |  |
|  Cash and cash equivalents | $16.2 |
|  Other identifiable intangible assets | 21.6 |
|  Premiums receivable | 7.0 |
|  Other assets | 0.4 |
|  **Total assets acquired** | **45.2** |
|  **Liabilities assumed:** |  |
|  Accounts payable and other liabilities | 16.7 |
|  **Total liabilities assumed** | **16.7** |
|  **Total identifiable net assets acquired <sup>(1)</sup>** | **28.5** |
|  Goodwill | 27.7 |
|  **Total acquisition consideration** | $**56.2** |

---

<sup>(1)</sup> Total net cash paid to date for the interest in Corniche was $0.9 million, net of cash acquired (consisting of the $17.1 million initial payment at acquisition date net of the $16.2 million cash acquired). As noted above, this does not include cash payments of $17.1 million that will be due in two installments through January 2026. 

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A roll forward of goodwill and other intangible assets, net as of and for the three months ended March 31, 2025 is as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **Goodwill and other<br>intangible assets, net** |
|  Balance as of January 1, 2025 | $64.0 |
|  Goodwill from acquisition of business | 27.7 |
|  Other intangible assets from acquisition of business | 21.6 |
|  Amortization of other intangible assets | (1.2) |
|  Foreign currency translation | 2.8 |
|  **Balance as of March 31, 2025** | $**114.9** |

---

The Group did not have any business acquisitions during the three months ended March 31, 2024.

**11. Share-based compensation** 

***Share options granted***

No options have been granted during the first quarter of 2025. The following table summarizes the activity related to share option awards for the three months ended March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term (Years)** | **Aggregate<br>Intrinsic<br>Value** | **Aggregate<br>Fair Value** |
|  Outstanding as of January 1, 2025 | 179476 | $1615.12 | 9.1 | $— | $237.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canceled | (925) | 1615.12 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (2246) | 1615.12 |  |  |  |
|  **Outstanding as of March 31, 2025** | **176305** | $**1615.12** | **8.8** | $**—** | $**234.78** |
|  Options exercisable as of March 31, 2025 | 76646 | $1615.12 | 8.6 | $— | $175.92 |
|  Options unvested as of March 31, 2025 | 99659 | $1615.12 | 9.0 | $— | $280.05 |

---

The weighted average grant-date fair value of share options granted during the three months ended March 31, 2024 was $294.90.

For the three months ended March 31, 2025 and 2024, share-based compensation expense from share option awards granted was $2.4 million and $2.2 million, respectively, which is included in "Other expenses" in our condensed consolidated statements of operations.

The unrecognized compensation cost related to unvested share option awards as of March 31, 2025 and December 31, 2024 was $26.1 million and $29.6 million, respectively. The weighted average remaining requisite service period as of March 31, 2025 is 1.5 years, over which period the total cost will be amortized as compensation expense within the financial statements.

**12. Income taxes** 

For the three months ended March 31, 2025 and 2024, our effective tax rate was 49.4% and 82.5%, respectively. We use the estimated annual effective tax rate method for calculating our tax provision in interim periods, which reflects our best estimate of the effective tax rate expected for the full year. The effective tax rates in both periods

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were impacted by taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions.

In March 2025, the Board of Directors of Accelerant Holdings and certain intermediary holding companies (together, the "Holding Companies") approved a change in the Holding Companies' tax residency from the Cayman Islands to the UK. Upon becoming UK tax residents, the Holding Companies began to benefit from operational efficiencies including, but not limited to, lower withholding tax rates applicable to dividend distributions from certain US subsidiaries under the US-UK tax treaty. In addition, the aggregate income (loss) of the Holding Companies became subject to UK income tax effective as of the March 2025 date of change to UK tax residency. To the extent that the Holding Companies have incremental income it will generate additional UK tax expense and, conversely, to the extent that there are any incremental losses income tax benefits will be generated to the extent that there is current or projected taxable income available in our UK operations. Over the remainder of 2025, we expect incremental benefits to emerge due to the Holding Companies' projected expense base and, therefore, our effective tax rate for the year ended December 31, 2025 is expected to fall below those reported in previous years when such expenses were incurred in the Cayman Islands (a zero tax rate jurisdiction).

The relationship of our income tax expense to pre-tax income (loss) is atypical because our taxable income has predominately been generated in the US, UK, Ireland, and Puerto Rico resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as "tax-paying entities").

Meanwhile, we have incurred operating losses in zero tax rate jurisdictions (such as in our corporate and reinsurance entities in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other jurisdictions where we have generated cumulative operating losses, however, in each of those cases, a valuation allowance has been recorded against the corresponding deferred tax assets (entities in these two types of jurisdictions are referred to as "non-tax paying entities").

Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.

The composition of our effective tax rates among our tax-paying and non-tax paying entities, which demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| ***(in millions)*** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** | **Tax-paying<br>entities** | **Non-tax<br>paying<br>entities** | **Total** |
|  Income (loss) before income taxes | $49.5 | $(33.9) | $15.6 | $35.6 | $(23.6) | $12.0 |
|  Income tax expense | (7.7) |  | (7.7) | (9.9) |  | (9.9) |
|  **Effective tax rate** | **15.6%** | **—** | **49.4%** | **27.8%** | **—** | **82.5%** |

---

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##### [**Table of Contents**](#toc)
**13. Other assets** 

Other assets consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Prefunded claim settlement<br>accounts <sup>(1)</sup> | $89.5 | $58.6 |
|  Net deferred tax assets | 50.3 | 51.6 |
|  Commission income receivable | 28.5 | 28.3 |
|  Funds withheld by reinsurers | 18.5 | 18.2 |
|  Deferred offering costs <sup>(3)</sup> | 17.2 | 16.0 |
|  Prepaid expenses | 11.2 | 11.8 |
|  Prepaid retrocession premium | 5.1 | 5.3 |
|  Other | 33.1 | 29.3 |
|  **Total** | $**253.4** | $**219.1** |

---

<sup>(1)</sup> This balance represents amounts paid to third party administrators in advance of the notification of specific claims to enable the future settlement of such claims on an efficient and timely basis. 

<sup>(2)</sup> As of the date of completion of these financial statements, the Group is preparing for its planned initial public offering. In the event that the Group postpones the planned offering of securities to which these deferred costs relate and such postponement is determined to be other than short-term, the deferred offering costs will be charged to expense in the period that determination is reached. 

**14. Accounts payable and other liabilities** 

Accounts payable and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **March 31, 2025** | **December 31, 2024** |
|  Premium tax payables | $48.0 | $53.7 |
|  Commission refund liabilities | 40.1 | 38.8 |
|  Deposit liabilities | 29.5 | 43.9 |
|  Trade payables | 17.2 | 13.8 |
|  Corporation tax payable | 9.0 | 4.4 |
|  Accrued expenses and other | 66.9 | 44.2 |
|  **Total** | $**210.7** | $**198.8** |

---

**15. Related party transactions** 

We have loans receivable from certain of the directors of the Partnership. At March 31, 2025 and December 31, 2024 the value of the loans receivable were $3.9 million and $3.7 million, respectively. Interest will accrue on the outstanding principal balance at a floating per annum rate equal to the greater of (i) the Prime Rate minus one percent (1.0%) and (ii) two and one quarter of one percent (2.25%). Interest will be due and payable on the repayment date. There is no fixed repayment date.

**16. Commitments and contingencies** 

***Litigation***

We are occasionally a party to routine contractual disputes impacting receivables, claims (re)insurance contracts or litigation incidental to our business. We do not believe that we are a party to any pending legal proceeding that is likely to have a material adverse effect on our business, financial condition, or results of operations.

Contingencies arise in the normal conduct of our operations and are not expected to have a material effect on our financial condition or results of operations. However, adverse outcomes are possible and could negatively affect our financial condition and results of operations.

------

##### [**Table of Contents**](#toc)
***Unfunded investment commitments***

As of March 31, 2025, we had unfunded commitments of $9.2 million in respect of our limited partnership investments. Refer to Note 4 for additional information.

**17. Subsequent events** 

We evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that these financial statements were available to be issued, which was May 16, 2025. Based upon this review, we did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

------

##### [**Table of Contents**](#toc)
![LOGO](g543111dsp04.jpg)

Accelerant Where true partnership exists

------

##### [**Table of Contents**](#toc)
*28,947,368 Class A Common Shares*![LOGO](g543111g14m98.jpg)

*PRELIMINARY PROSPECTUS* 

*Morgan Stanley* 

*Goldman Sachs & Co. LLC* 

*BMO Capital Markets* 

*RBC Capital Markets* 

*Wells Fargo Securities* 

*Piper Sandler* 

*William Blair* 

*Raymond James* 

*TD Securities* 

*Citizens Capital Markets* 

*FT Partners* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*, 2025* 

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##### [**Table of Contents**](#toc)
**PART II.** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13.** **Other Expenses of Issuance and Distribution** <br>

The following table sets forth all the costs and expenses, other than underwriting discounts and commissions, payable in connection with the sale of our Class A common shares being registered hereby. Except as otherwise noted, the registrant will pay all of the costs and expenses set forth in the following table. All amounts shown below are estimates, except the SEC registration fee, the FINRA filing fee and the stock exchange listing fee:

---

| | |
|:---|:---|
|  | Amount |
|  SEC registration fee | $101933 |
|  FINRA filing fee | 100369 |
|  NYSE listing fee | 325000 |
|  Printing and engraving expenses | 2500000 |
|  Legal fees and expenses | 5000000 |
|  Accounting fees and expenses | 500000 |
|  Transfer agent and registrar fees | 6000 |
|  Miscellaneous expenses | 466698 |
|  Total | $9000000 |

---

**Item 14.** **Indemnification of Directors and Officers** <br>

Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences or committing a crime. Our amended and restated articles of association will provide for indemnification of officers and directors to the maximum extent permitted by law for losses, damages, costs and expenses incurred in their capacities as such, except through their own actual fraud and dishonesty or willful default.

We intend to enter into indemnification agreements with each of our directors and officers pursuant to which we will agree to indemnify our directors and officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or officer.

We also expect to maintain standard policies of insurance that provide coverage (1) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (2) to us with respect to indemnification payments that we may make to such directors and officers.

**Item 15.** **Recent Sales of Unregistered Securities** <br>

In the preceding three years, the registrant has sold and issued the following securities that were not registered under the Securities Act:

**Option, Restricted Stock Unit and Common Share Issuances** 

Since January 1, 2022, the Company granted employees options to purchase an aggregate of 16,976,602 common shares under our Share Incentive Plan, consisting of (i) options granted during 2023 and 2024 to purchase an aggregate of 13,608,005 common shares at an exercise price of $19.30 per common share, and (ii) options granted during 2025 to purchase an aggregate of 3,368,596 common shares at an exercise price of $30.54 per common share.

------

##### [**Table of Contents**](#toc)
Since January 1, 2022, we have not granted any restricted stock units to our employees.

**Preference Share Issuances** 

In December 2024, the Company issued 4,646,724 Class C convertible preference shares for $104.7 million of gross proceeds as well as 909,816 Class C convertible preference shares to the owners of the immediate parent company for $20.5 million of gross proceeds.

In December 2022, the Company issued 7,459,507 Class B convertible preference shares for $90.0 million of gross proceeds as well as 4,990,687 Class B convertible preference shares to the owners of the immediate parent company for $60.2 million of gross proceeds.

In three issuances in January and March of 2022, the Company issued a total of 5,594,609 Class A convertible preference shares to employees and third-party investors for $66.9 million of gross proceeds. In January 2022, the Company issued 2,300,897 Class A convertible preference shares to the owners of Accelerant Holdings LP for $27.5 million of gross proceeds. The Company also issued 209,172 Class A convertible preference shares to a related-party consisting of 167,338 shares issued in settlement of an outstanding payable balance of $2.0 million and 41,834 shares purchased by the related-party by way of a $0.5 million loan funded by the Company. In addition, in January 2022, 72,457 Class A convertible preference shares were issued to certain executives of the Company for $0.9 million of gross proceeds.

None of the foregoing transactions involved any underwriters, underwriting discounts or commissions, or any public offering. We believe the offers, sales, and issuances of the above securities were exempt from registration under the Securities Act (or Regulation D or Regulation S promulgated thereunder) by virtue of Section 4(a)(2) of the Securities Act because the issuance of securities to the recipients did not involve a public offering, or in reliance on Rule 701 because the transactions were pursuant to compensatory benefit plans or contracts relating to compensation as provided under such rule. The recipients of the securities in each of these transactions represented their intentions to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were placed upon the share certificates issued in these transactions. All recipients had adequate access, through their relationships with us, to information about us. The sales of these securities were made without any general solicitation or advertising.

**Item 16.** **Exhibits and Financial Statement Schedules** <br>

The exhibits filed herewith are set forth on the Index to Exhibits filed as a part of this Registration Statement beginning on page II-2 hereof.

**INDEX TO EXHIBITS** 

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 1.1 | [Form of Underwriting Agreement.](d543111dex11.htm) |
| 3.1\*\* | [Certificate of Incorporation dated as of October 7, 2021.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex31.htm) |
| 3.2\*\* | [Second Amended and Restated Memorandum and Articles of Association dated as of May 19, 2023.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex32.htm) |
| 3.3\*\* | [Third Amended and Restated Memorandum and Articles of Association dated as of December 30, 2024.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex33.htm) |
| 3.4 | [Form of Fourth Amended and Restated Memorandum and Articles of Association of Accelerant Holdings to be effective prior to the completion of this offering.](d543111dex34.htm) |
| 3.5\*\* | [Second Amended and Restated Shareholders Agreement dated December 18, 2024.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex35.htm) |
| 4.1\*\* | [Specimen Common Share Certificate of Accelerant Holdings.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex41.htm) |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 5.1 | [Opinion of Maples and Calder (Cayman) LLP, Cayman Islands Legal Counsel to the Registrant.](d543111dex51.htm) |
| 10.1\*\* | [Form of Indemnification Agreement between Accelerant Holdings and each of its directors and executive officers.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex101.htm) |
| 10.2+\*\* | [Employment Agreement, by and between Jeff Radke and Accelerant Holdings, dated , 2025.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex102.htm) |
| 10.3+\*\* | [Employment Agreement, by and between Christopher Lee-Smith and Accelerant Holdings, dated July 12, 2025.](http://www.sec.gov/Archives/edgar/data/0001997350/000119312525159018/d543111dex103.htm) |
| 10.4+\*\* | [Employment Agreement, by and between Frank O'Neill and Accelerant Holdings, dated July 11, 2025.](http://www.sec.gov/Archives/edgar/data/0001997350/000119312525159018/d543111dex104.htm) |
| 10.5+ | [2023 Accelerant Share Incentive Plan.](d543111dex105.htm) |
| 10.6+ | [Employee Share Purchase Plan.](d543111dex106.htm) |
| 10.7\*\* | [Credit Agreement, dated January 29, 2021, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex108.htm) |
| 10.8\*\* | [Guaranty Agreement, dated as of January 29, 2021, by and among Accelerant Holdings and its subsidiaries, as guarantors, and Bank of Montreal, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex109.htm) |
| 10.9\*\* | [Amended and Restated Guaranty Agreement, dated as of May 11, 2022, by and among Accelerant Holdings and its subsidiaries, as guarantors, and Bank of Montreal, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1010.htm) |
| 10.10\*\* | [Second Amended and Restated Guaranty Agreement, dated as of September 26, 2024, by and among Accelerant Holdings and its subsidiaries, as guarantors, and Bank of Montreal, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1011.htm) |
| 10.11\*\* | [Amended and Restated Credit Agreement, dated as of May 11, 2022, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1012.htm) |
| 10.12\*\* | [First Amendment to Amended and Restated Credit Agreement, dated as of November 30, 2023, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1013.htm) |
| 10.13\*\* | [Second Amended and Restated Credit Agreement, dated September 26, 2024, by and among Accelerant Holdings, the parties named therein as guarantors and lenders and Bank of Montreal, as administrative agent.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1014.htm) |
| 10.14 | [Registration Rights Agreement between Accelerant Holdings and the Common Shareholders, to be dated as of the closing date of this offering.](d543111dex1014.htm) |
| 10.15\*\* | [Class A Convertible Preferred Shares Securities Purchase Agreement dated December 28, 2021.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1016.htm) |
| 10.16\*\* | [Class A Convertible Preferred Shares Securities Purchase Agreement dated January 7, 2022.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1017.htm) |
| 10.17\*\* | [Class A Convertible Preferred Shares Securities Purchase Agreement dated January 31, 2022.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1018.htm) |
| 10.18\*\* | [Class A Convertible Preferred Shares Securities Purchase Agreement dated March 30, 2022.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1019.htm) |
| 10.19\*\* | [Class B Convertible Preferred Shares Securities Purchase Agreement dated December 28, 2022.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1020.htm) |
| 10.20\*\* | [Class C Convertible Preferred Shares Securities Purchase Agreement dated December 18, 2024](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1021.htm). |
| 10.21#\*\* | [Investment Management Agreement, dated as of April 20, 2021, by and among Accelerant Insurance Europe SA and Mercer Global Investments Europe Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1022.htm) |
| 10.22#\*\* | [Side Letter to the Investment Management Agreement with Mercer Global Investments Europe Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1023.htm) |

---

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 10.23#\*\* | [Investment Management Agreement (Germany), dated as of October 2, 2023, by and among Accelerant Insurance Europe SA and Wellington Management Europe GmbH.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1024.htm) |
| 10.24#\*\* | [Investment Management Agreement, dated as of August 14, 2023, by and among Accelerant Re (Cayman) Ltd. and Wellington Management Company LLP.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1025.htm) |
| 10.25#\*\* | [Engagement Letter, dated as of August 16, 2022, between Accelerant Re (Cayman) Ltd. and Mercer Global Investments Europe Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1026.htm) |
| 10.26#\*\* | [Engagement Letter, dated May 13, 2022, between Accelerant Re Ltd and Mercer Global Investments Europe Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1027.htm) |
| 10.27#\*\* | [Investment Management Agreement, dated as of July 20, 2022, by and among Accelerant Re Ltd and Mercer Global Investments Europe Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1028.htm) |
| 10.28#\*\* | [Engagement Letter, dated as of April 5, 2022, between Guarantee Protection Insurance Limited and Mercer Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1029.htm) |
| 10.29#\*\* | [Investment Management Agreement, dated as of May 31, 2022, by and among Guarantee Protection Insurance Limited and Mercer Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1030.htm) |
| 10.30#\*\* | [Investment Management Agreement (UK), dated as of October 2, 2023, by and among Accelerant Insurance UK Limited and Wellington Management International Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1031.htm) |
| 10.31#\*\* | [Investment Services Agreement, dated as of February 3, 2021, by and among Accelerant Specialty Insurance Company and Mercer Investments LLC.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1032.htm) |
| 10.32#\*\* | [Second Amendment to Investment Services Agreement, dated as of January 21, 2022, by and among Accelerant Specialty Insurance Company, Accelerant National Insurance Company and Mercer Investments LLC.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1033.htm) |
| 10.33#\*\* | [Investment Management Agreement, dated as of August 8, 2023, by and among Accelerant Specialty Insurance Company and Wellington Management Company LLP.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1034.htm) |
| 10.34#\*\* | [Investment Management Agreement, dated as of August 8, 2023, by and among Accelerant National Insurance Company and Wellington Management Company LLP.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1035.htm) |
| 10.35#\*\* | [Investment Management Agreement (UK), dated as of October 2, 2023, by and among Accelerant Insurance SA/NV UK Branch and Wellington Management International Limited.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1036.htm) |
| 10.36#\*\* | [Investment Management Agreement, dated as of December 1, 2023 by and among Omega General Insurance Company and Wellington Management Canada.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex1037.htm) |
| 10.37+ | [Form of Option Award Agreement.](d543111dex1037.htm) |
| 10.38+ | [Form of Restricted Share Unit Agreement.](d543111dex1038.htm) |
| 21.1\*\* | [List of Subsidiaries of Accelerant Holdings.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111dex211.htm) |
| 23.1 | [Consent of PricewaterhouseCoopers LLP (Accelerant Holdings).](d543111dex231.htm) |
| 23.2 | [Consent of PricewaterhouseCoopers LLP (Accelerant Holdings LP).](d543111dex232.htm) |
| 23.3 | [Consent of Maples and Calder (Cayman) LLP (included in Exhibit 5.1).](d543111dex51.htm) |
| 24.1\*\* | [Power of Attorney, dated June 30, 2025.](http://www.sec.gov/Archives/edgar/data/1997350/000119312525152889/d543111ds1.htm#ii543111_500) |
| 24.2\*\* | [Power of Attorney, dated July 15, 2025.](http://www.sec.gov/Archives/edgar/data/0001997350/000119312525159018/d543111dex242.htm) |
| 107\*\* | [Filing Fee Table.](http://www.sec.gov/Archives/edgar/data/0001997350/000119312525159018/d543111dexfilingfees.htm) |

---

# Portions of this exhibit have been redacted in accordance with Item 601(b)(10)(iv) of Regulation S-K.

+ Denotes management contract or compensatory plan or arrangement.

\* To be filed by amendment.

\*\* Previously filed.

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##### [**Table of Contents**](#toc)
**Item 17.** **Undertakings** <br>

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in George Town, Cayman Islands, on this 18th day of July, 2025.

---

| | |
|:---|:---|
| **Accelerant Holdings** | **Accelerant Holdings** |
| By: | /s/ Jeff Radke |
| Name: | Jeff Radke |
| Title: | Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Jeff Radke | Chief Executive Officer (Principal Executive Officer) and Director | July 18, 2025 |
|  Jeff Radke | Chief Executive Officer (Principal Executive Officer) and Director | July 18, 2025 |
| /s/ Jay Green | Chief Financial Officer (Principal Financial and Principal Accounting Officer) | July 18, 2025 |
|  Jay Green | Chief Financial Officer (Principal Financial and Principal Accounting Officer) | July 18, 2025 |
| \* | Director | July 18, 2025 |
|  Kunal Arora | Director | July 18, 2025 |
| \* | Director | July 18, 2025 |
|  Samuel Gaynor | Director | July 18, 2025 |
| \* | Director | July 18, 2025 |
|  Wendy Harrington | Director | July 18, 2025 |
| \* | Director | July 18, 2025 |
|  Nancy Hasley | Director | July 18, 2025 |
| \* | Director | July 18, 2025 |
|  Christopher Lee-Smith | Director | July 18, 2025 |

---

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##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| \* | Director | July 18, 2025 |
|  Paul Little | Director | July 18, 2025 |
|  \*<br> Karen Meriwether | Director | July 18, 2025 |
|  \*<br> Keoni Schwartz | Director | July 18, 2025 |
| \* | Director | July 18, 2025 |
|  Michael Searles | Director | July 18, 2025 |
| /s/ Jay Green | Authorized Representative in the United States | July 18, 2025 |
|  Jay Green | Authorized Representative in the United States | July 18, 2025 |

---

The undersigned, by signing his name hereto, does sign and execute this Amendment No. 2 to the registration statement on Form S-1 pursuant to a Power of Attorney executed on behalf of the above-indicated directors of the registrant and previously filed on behalf of the registrant.

---

| | |
|:---|:---|
| \* By | /s/ Jeff Radke |
|  | Jeff Radke |
|  | Attorney-in-fact |

---

## Exhibit 1.1

**Exhibit 1.1** 

**[•] Shares** 

**ACCELERANT HOLDINGS** 

**CLASS A COMMON SHARES, PAR VALUE $0.0000011951862 PER SHARE** 

**UNDERWRITING AGREEMENT** 

[•], 2025

------

[•], 2025

Morgan Stanley & Co. LLC

1585 Broadway

New York, New York 10036

Ladies and Gentlemen:

Accelerant Holdings, a Cayman Islands exempted company (the "**Company**"), proposes to issue and sell to the several Underwriters named in Schedule II hereto (the "**Underwriters**"), and certain shareholders of the Company (the "**Selling Shareholders**") named in Schedule I hereto severally propose to sell to the several Underwriters, an aggregate of [•] Class A common shares, par value $0.0000011951862 per share of the Company (the "**Firm Shares**"), of which [•] Class A common shares are to be issued and sold by the Company and [•] Class A common shares are to be sold by the Selling Shareholders, each Selling Shareholder selling the amount set forth opposite such Selling Shareholder's name in Schedule I hereto.

The Company and the Selling Shareholders also propose to sell to the several Underwriters not more than an additional [•] shares of the Company's Class A common shares, par value $0.0000011951862 per share (the "**Additional Shares**"), of which [•] Class A common shares are to be issued and sold by the Company and [•] Class A common shares are to be sold by the Selling Shareholders, each Selling Shareholder selling the amount set forth opposite such Selling Shareholder's name in Schedule I hereto, if and to the extent that Morgan Stanley & Co. LLC ("**Morgan Stanley**"), as representative of the offering, shall have determined to exercise, on behalf of the Underwriters, the right to purchase such common shares granted to the Underwriters in Section 3 hereof. The Firm Shares and the Additional Shares are hereinafter collectively referred to as the "**Shares**." The Class A common shares, par value $0.0000011951862 per share, of the Company to be outstanding after giving effect to the sales contemplated hereby are hereinafter referred to as the "**Common Shares**." The Company and the Selling Shareholders are hereinafter sometimes collectively referred to as the "**Sellers**."

The Company has filed with the Securities and Exchange Commission (the "**Commission**") a registration statement on Form S-1 (File No. 333-288435), including a preliminary prospectus, relating to the Shares. The registration statement as amended at the time it becomes effective, including the information (if any) deemed to be part of the registration statement at the time of effectiveness pursuant to Rule 430A under the Securities Act of 1933, as amended (the "**Securities Act**"), is hereinafter referred to as the "**Registration Statement**"; the prospectus in the form first used to confirm sales of Shares (or in the form first made available to the Underwriters by the Company to meet requests of purchasers pursuant to Rule 173 under the Securities Act) is hereinafter referred to as the "**Prospectus**." If the Company has filed an abbreviated registration statement to register additional Common Shares pursuant to Rule 462(b) under the Securities Act (a "**Rule 462 Registration Statement**"), then any reference herein to the term "**Registration Statement**" shall be deemed to include such Rule 462 Registration Statement.

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For purposes of this Agreement, "**free writing prospectus**" has the meaning set forth in Rule 405 under the Securities Act, "**preliminary prospectus**" shall mean each prospectus used prior to the effectiveness of the Registration Statement, and each prospectus that omitted information pursuant to Rule 430A under the Securities Act that was used after such effectiveness and prior to the execution and delivery of this Agreement, "**Time of Sale Prospectus**" means the preliminary prospectus contained in the Registration Statement at the time of its effectiveness together with the documents, pricing information and the free writing prospectus, if any, set forth in Schedule III hereto, and "**broadly available road show**" means a "bona fide electronic road show" as defined in Rule 433(h)(5) under the Securities Act that has been made available without restriction to any person. As used herein, the terms "Registration Statement," "preliminary prospectus," "Time of Sale Prospectus" and "Prospectus" shall include the documents, if any, incorporated by reference therein as of the date hereof. For purposes of this Agreement, "**Selling Shareholder Information**" shall mean information relating to such Selling Shareholder furnished to the Company in writing by or on behalf of such Selling Shareholder pursuant to Items 7 and 11(m) of Form S-1 expressly for use therein, which information with respect to any Selling Shareholder is limited to the name and address of such Selling Shareholder, the number of Shares owned by such Selling Shareholder before and after the offering contemplated hereby and the other information relating to such Selling Shareholder (other than percentages) that appears in the table and corresponding footnotes under the caption "Principal and Selling Shareholders" and, if such Selling Shareholder is an executive officer or director of the Company (including any person who is named in the Registration Statement or any Prospectus or any amendment or supplement thereto as a person who is to become a director of the Company at a future date), the biographical information of such Selling Shareholder as set forth under the caption "Management" in the Registration Statement or any Prospectus in the Registration Statement, the Time of Sale Prospectus, the Prospectus or any amendment or supplement thereto.

Morgan Stanley has agreed to reserve a portion of the Shares to be purchased by it under this Agreement for sale to certain of the Company's eligible users, certain members of its board of directors, and friends and family members of certain of the Company's employees and directors, each as identified by the Company (collectively, "**Participants**"), as set forth in each of the Time of Sale Prospectus and the Prospectus under the heading "Underwriters" (the "**Directed Share Program**"). The Shares to be sold by Morgan Stanley and its affiliates pursuant to the Directed Share Program, at the direction of the Company, are referred to hereinafter as the "**Directed Shares**". Any Directed Shares not confirmed for purchase by any Participant by the deadline established by Morgan Stanley in consultation with the Company will be offered to the public by the Underwriters as set forth in the Prospectus. The Company agrees and confirms that references to "affiliates" of Morgan Stanley that appear in this Agreement shall be understood to include Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *Representations and Warranties of the Company*. The Company represents and warrants to and agrees with each of the Underwriters that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registration Statement has become effective; no stop order suspending the effectiveness of the Registration Statement is in effect, and no proceedings for such purpose or pursuant to Section 8A under the Securities Act are pending before or threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) The Registration Statement, when it became effective, did not contain and, as amended or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) the Registration Statement and the Prospectus comply and, as amended or supplemented, if applicable, will comply in all material respects with the applicable requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder, (iii) the Time of Sale Prospectus does not, and at the time of each sale of the Shares in connection with the offering when the Prospectus is not yet available to prospective purchasers and at the Closing Date (as defined in Section 5), the Time of Sale Prospectus, as then amended or supplemented by the Company, if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, (iv) each broadly available road show, if any, when considered together with the Time of Sale Prospectus, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and (v) the Prospectus, does not contain and, as amended or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not apply to statements or omissions in the Registration Statement, the Time of Sale Prospectus or the Prospectus based upon information relating to any Underwriter furnished to the Company in writing by such Underwriter through Morgan Stanley expressly for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company is not an "ineligible issuer" in connection with the offering pursuant to Rules 164, 405 and 433 under the Securities Act. Any free writing prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each free writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or referred to by the Company complies or will comply in all material respects with the applicable requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Except for the free writing prospectuses, if any, identified in Schedule III hereto, and electronic road shows, if any, each furnished to Morgan Stanley before first use, the Company has not prepared, used or referred to, and will not, without Morgan Stanley's prior consent, prepare, use or refer to, any free writing prospectus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has been duly incorporated, is validly existing as a company in good standing under the laws of the jurisdiction of its incorporation, has the corporate power and authority to own or lease its property and to conduct its business as described in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each subsidiary of the Company has been duly incorporated, organized or formed, is validly existing as a corporation or other business entity in good standing under the laws of the jurisdiction of its incorporation, organization or formation (to the extent that such concepts are applicable in such jurisdiction), has the corporate or other business entity power and authority to own or lease its property and to conduct its business as described in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction (to the extent the concept of good standing is applicable in such jurisdiction) in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing (to the extent that such concepts are applicable in such jurisdiction) would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole; all of the issued shares of capital stock or other equity interests of each subsidiary of the Company have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement has been duly authorized, executed and delivered by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The authorized share capital of the Company conforms in all material respects as to legal matters to the description thereof contained in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Common Shares (including the Shares to be sold by the Selling Shareholders) issued and outstanding prior to the issuance of the Shares to be sold by the Company have been duly authorized and are validly issued, fully paid and non-assessable. Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus, there are no outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any shares or other equity interest in the Company, or any contract, commitment, agreement, understanding or arrangement of any kind relating to the issuance of any shares of the Company or any such subsidiary, any such convertible or exchangeable securities or any such rights, warrants or options.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Shares have been duly authorized and, when issued, delivered and paid for in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable, and the issuance of the Shares will not be subject to any preemptive or similar rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The execution and delivery by the Company of, and the performance by the Company of its obligations under, this Agreement will not contravene (i) any provision of applicable law, (ii) the memorandum and articles of association of the Company, (iii) any agreement or other instrument binding upon the Company or any of its subsidiaries that is material to the Company and its subsidiaries, taken as a whole, or (iv) any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company or any subsidiary, except in the case of clause (iv), where such contravention would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, and no consent, approval, authorization or order of, or qualification with, any governmental body, agency or court is required for the performance by the Company of its obligations under this Agreement, except such as may be required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) There has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Time of Sale Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) There are no legal or governmental proceedings pending or, to the Company's knowledge, threatened to which the Company or any of its subsidiaries is a party or to which any of the properties of the Company or any of its subsidiaries is subject (i) other than proceedings accurately described in all material respects in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus and proceedings that would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, or on the power or ability of the Company to perform its obligations under this Agreement or to consummate the transactions contemplated by each of the Registration Statement, the Time of Sale Prospectus and the Prospectus, or (ii) that are required to be described in the Registration Statement, the Time of Sale Prospectus or the Prospectus and are not so described; and there are no statutes, regulations, contracts or other documents,

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to which the Company is subject or by which the Company is bound, that are required to be described in the Registration Statement, the Time of Sale Prospectus or the Prospectus or to be filed as exhibits to the Registration Statement that are not described in all material respects or filed as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Each preliminary prospectus filed as part of the Registration Statement as originally filed or as part of any amendment thereto, or filed pursuant to Rule 424 under the Securities Act, complied when so filed in all material respects with the applicable requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company is not, and after giving effect to the offering and sale of the Shares and the application of the proceeds thereof as described in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus will not be, required to register as an "investment company" as such term is defined in the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Company and each of its subsidiaries, taken as a whole, (i) are in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants ("**Environmental Laws**"), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) There is and has been no failure on the part of the Company or any of the Company's directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, including Section 402 related to loans. ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus, there are no contracts, agreements or understandings between the Company and any person granting such person the right to require the Company to file a registration statement under the Securities Act with respect to any securities of the Company or to require the Company to include such securities with the Shares registered pursuant to the Registration Statement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) (i) None of the Company or any of its subsidiaries or affiliates, or any director, officer, or employee thereof, nor, to the Company's knowledge, any agent of the Company or of any of its subsidiaries or affiliates, has taken or will take any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment, giving or receipt of money, property, gifts or anything else of value, directly or indirectly, to any government official (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) ("**Government Official**") in order to improperly influence official action or to any person in violation of (a) the U.S. Foreign Corrupt Practices Act of 1977, (b) the UK Bribery Act 2010, and (c) any other applicable law, regulation, order, decree or directive having the force of law and relating to bribery or corruption (collectively, the "**Anti-Corruption Laws**"); (ii) the Company and each of its subsidiaries and affiliates have conducted their business in compliance with Anti-Corruption Laws and have instituted and maintained and will continue to maintain policies and procedures reasonably designed to promote and achieve compliance with such laws and with the representations and warranties contained herein; and (iii) neither the Company nor any of its affiliates will use, directly or indirectly, the proceeds of the offering in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value to any person in violation of any Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The operations of the Company and each of its subsidiaries are and have been conducted at all times in material compliance with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act of 1970, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions where the Company and its subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, and regulations issued, administered or enforced by any governmental agency having jurisdiction over the Company and its subsidiaries (collectively, the "**Anti-Money Laundering Laws**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) (i) None of the Company, any of its subsidiaries, or any director, officer, employee thereof, or, to the Company's knowledge, any agent, affiliate or representative of the Company or any of its subsidiaries, is an individual or entity ("**Person**") that is, or is owned or controlled by one or more Persons that are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the subject of any sanctions administered or enforced by the U.S. Department of the Treasury's Office of Foreign Assets Control, the United Nations Security Council, the European Union, His Majesty's Treasury, or any other relevant sanctions authority (collectively, "**Sanctions**"), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) located, organized or resident in a country or territory that is the subject of comprehensive territorial Sanctions (including, without limitation, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, or any other Covered Region of Ukraine identified pursuant to Executive Order 14065, Crimea, Cuba, Iran, North Korea and Syria).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of its subsidiaries have not since April 24, 2019, engaged in, are not now engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to fund or facilitate any money laundering or terrorist financing activities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in any other manner that will result in a violation of any Anti-Corruption Laws, Anti-Money Laundering Laws, or Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company and its subsidiaries have conducted and will conduct their business in compliance with the Anti-Corruption Laws, the Anti-Money Laundering Laws, and Sanctions, and no investigation, inquiry, action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Anti-Corruption Laws, the Anti-Money Laundering Laws or Sanctions is pending or, to the knowledge of the Company, threatened. The Company and its subsidiaries and affiliates have instituted and maintained and will continue to maintain policies and procedures reasonably designed to promote and achieve compliance with the Anti-Corruption Laws, the Anti-Money Laundering Laws, Sanctions, and with the representations and warranties contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Subsequent to the respective dates as of which information is given in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus, (i) the Company and its subsidiaries, taken as a whole, have not incurred any material liability or obligation, direct or contingent, nor entered into any material transaction; (ii) the Company has not purchased any of its outstanding capital stock, nor declared, paid or otherwise made any dividend or distribution of any kind on its capital stock other than ordinary and customary dividends; and (iii) there has not been any material change in the capital stock, short-term debt or long-term debt of the Company and its subsidiaries, taken as a whole, except in the case of any of (i), (ii) and (iii) as described in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Company and each of its subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries, taken as a whole, in each case free and clear of all liens, encumbrances and defects except such as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and its subsidiaries; and any real property and buildings held under lease by the Company and its subsidiaries are held by them under valid, subsisting and, enforceable leases with such exceptions as are not material and would not reasonably be expected to materially interfere with the use made and proposed to be made of such property and buildings by the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) (i) The Company and its subsidiaries own or have a valid license to all patents, inventions, copyrights, know how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks and trade names (collectively, "**Intellectual Property Rights**") used in or reasonably necessary to the conduct of their businesses as described in the Registration Statement; (ii) the Intellectual Property Rights owned by the Company and its subsidiaries and, to the Company's knowledge, the Intellectual Property Rights licensed to the Company and its subsidiaries, are valid, subsisting and enforceable, and there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others challenging the validity, scope or enforceability of any such Intellectual Property Rights; (iii) neither the Company nor any of its subsidiaries has received any notice alleging any infringement, misappropriation or other violation of Intellectual Property Rights which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a material adverse effect on the Company and its subsidiaries, taken as a whole; (iv) to the Company's knowledge, no third party is infringing, misappropriating or otherwise violating, or has infringed, misappropriated or otherwise violated, any Intellectual Property Rights owned by the Company; (v) neither the Company nor any of its subsidiaries infringes, misappropriates or otherwise violates, or has infringed, misappropriated or otherwise violated, any Intellectual Property Rights of any third party, except as would not reasonably be expected to be material to the Company and its subsidiaries, taken as a whole; (vi) all employees or contractors engaged in the development of Intellectual Property Rights on behalf of the Company or any subsidiary of the Company have executed an invention assignment agreement whereby such employees or contractors presently assign all of their right, title and interest in and to such Intellectual Property Rights to the Company or the applicable subsidiary, and to the Company's knowledge no such agreement has been breached or violated; and (vii) the Company and its subsidiaries use, and have used, commercially reasonable efforts to appropriately maintain all information intended to be maintained as a trade secret.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) (i) The Company and its subsidiaries use and have used any and all software and other materials distributed under a "free," "open source," or similar licensing model (including but not limited to the MIT License, Apache License, GNU General Public License, GNU Lesser General Public License and GNU Affero General Public License) ("**Open Source Software**") in compliance with all license terms applicable to such Open Source Software; and (ii) neither the Company nor any of its subsidiaries uses or distributes or has used or distributed any Open Source Software in any manner that requires or has required (A) the Company or any of its subsidiaries to permit reverse engineering of any software code or other technology owned by the Company or any of its subsidiaries or (B) any software code or other technology owned by the Company or any of its subsidiaries to be (1) disclosed or distributed in source code form, (2) licensed for the purpose of making derivative works or (3) redistributed at no charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) (i) The Company and each of its subsidiaries have complied and are presently in compliance with all internal and external privacy policies, contractual obligations, applicable industry and self-regulatory standards, applicable laws, statutes, judgments, orders, rules and regulations of any court or arbitrator or other governmental or regulatory authority and any other legal obligations, in each case, relating to the collection, use, transfer, import, export, storage, protection, disposal, disclosure and other processing by the Company or any of its subsidiaries of personal, personally identifiable, household, sensitive, confidential or regulated data or information (**"Data Security Obligations**", and such data and information, "**Data**"); (ii) the Company has not received any notification of or complaint regarding and is unaware of any other facts that, singly or in the aggregate, would reasonably indicate non-compliance with any Data Security Obligation; and (iii) there is no action, suit or proceeding by or before any court or governmental agency, authority or body pending or, to the Company's knowledge, threatened alleging the Company's non-compliance with any Data Security Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) The Company and each of its subsidiaries have taken reasonable technical and organizational measures necessary to protect the security, confidentiality, integrity and availability of their information technology systems and Data used in connection with the operation of the Company's and its subsidiaries' businesses consistent with all Data Security Obligations applicable to the Company and its subsidiaries. Without limiting the foregoing, the Company and its subsidiaries have used reasonable efforts to establish and maintain, and have established, maintained, implemented and complied with, reasonable information technology, information security, cyber security and data protection controls, written policies and procedures, including but not limited to oversight, access controls, encryption, technological and physical safeguards and business continuity/disaster recovery and security plans that are designed to protect against and prevent (i) breach, destruction, loss, unauthorized distribution, use, access, disablement, misappropriation or modification, or other compromise or misuse of or relating to any information technology system or Data used in

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connection with the operation of the Company's and its subsidiaries' businesses; (ii) phishing, ransomware, denial of service (DoS), or other cyberattack that results in a monetary loss or a business disruption; or (iii) other act or omission that compromises the security, integrity or confidentiality of Data, and anything else that constitutes a breach for the purposes of Data Security Obligations ("**Breach**"). There has been no such material Breach, and the Company and its subsidiaries have not been notified of and have no knowledge of any event or condition that would reasonably be expected to result in any such material Breach. The Company and its subsidiaries have not notified, or been required by applicable law, governmental agency, authority or body, or other Data Security Obligation to notify, any person of any Breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) No material labor dispute with the employees of the Company or any of its subsidiaries exists, or, to the knowledge of the Company, is imminent; and the Company is not aware of any existing, threatened or imminent labor disturbance by the employees of any of its principal suppliers manufacturers or contractors that would, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) The Company and each of its subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; neither the Company nor any of its subsidiaries has been refused any insurance coverage sought or applied for; and neither the Company nor any of its subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) The Company and each of its subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, and neither the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) The financial statements included in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus, together with the related schedules and notes thereto, comply as to form in all material respects with the applicable accounting requirements of the Securities Act and present fairly in all material respects the consolidated financial position of the Company

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and its subsidiaries as of the dates shown and its results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity with generally accepted accounting principles in the United States ("**U.S. GAAP**") applied on a consistent basis throughout the periods covered thereby except for any normal year-end adjustments in the Company's quarterly financial statements. The other financial information included in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus has been derived from the accounting records of the Company and its consolidated subsidiaries and presents fairly in all material respects the information shown thereby. All disclosures in the Registration Statement, the Time of Sale Prospectus and the Prospectus regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission) comply with Item 10(e) of Regulation S-K, to the extent applicable. The pro forma financial statements and the related notes thereto included in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus present fairly the information shown therein, have been prepared in accordance with the Commission's rules and guidelines with respect to pro forma financial statements and have been properly compiled on the bases described therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to therein. The statistical, industry-related and market-related data included in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus are based on or derived from sources which the Company reasonably and in good faith believes are reliable and accurate and such data is consistent with the sources from which they are derived, in each case in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) PricewaterhouseCoopers LLP, who have conducted an audit of the 2024, 2023 and 2022 consolidated financial statements of the (i) Company and its subsidiaries and (ii) Accelerant Holdings LP and its subsidiaries and delivered its audit reports with respect to such consolidated financial statements and related financial statement schedules filed with the Commission as part of the Registration Statement and included in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus, is an independent registered public accounting firm with respect to the Company within the meaning of the Securities Act and the applicable rules and regulations thereunder adopted by the Commission and the Public Company Accounting Oversight Board (United States).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with U.S. GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable

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intervals and appropriate action is taken with respect to any differences. Since the end of the Company's most recent audited fiscal year, there has been (i) no material weakness in the Company's internal control over financial reporting (whether or not remediated) and (ii) no change in the Company's internal control over financial reporting that has materially adversely affected, or is reasonably likely to materially adversely affect, the Company's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus, the Company has not sold, issued or distributed any Common Shares during the six-month period preceding the date hereof, including any sales pursuant to Rule 144A under, or Regulation D or S of, the Securities Act, other than shares issued pursuant to employee benefit plans, qualified stock option plans or other employee compensation plans or pursuant to outstanding options, rights or warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) The Company and each of its subsidiaries have filed all federal, state, local and foreign tax returns required to be filed through the date of this Agreement or have requested extensions thereof (except where the failure to file would not, singly or in the aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole) and have paid all taxes required to be paid thereon (except for cases in which the failure to file or pay would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, or, except as currently being contested in good faith and for which reserves required by U.S. GAAP have been created in the financial statements of the Company), and no tax deficiency has been determined adversely to the Company or any of its subsidiaries which, singly or in the aggregate, has had (nor does the Company nor any of its subsidiaries have any notice or knowledge of any tax deficiency which would reasonably be expected to be determined adversely to the Company or its subsidiaries and which would reasonably be expected to have) a material adverse effect on the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) From the time of initial confidential submission of the Registration Statement to the Commission through the date hereof, the Company has been and is an "emerging growth company," as defined in Section 2(a) of the Securities Act (an "**Emerging Growth Company**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) Each of the Company's subsidiaries that is required to be organized or licensed as an insurance company (each, an "**Insurance Subsidiary**") is licensed as an insurance or reinsurance company in its jurisdiction of organization and is duly licensed or authorized as an insurer or reinsurer in each jurisdiction outside its jurisdiction of organization where it is required to be so licensed or authorized to conduct its business as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus. Each Insurance Subsidiary has made all required filings under applicable insurance statutes in each jurisdiction where such filings are required, except in each case

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where the failure to do so would not, singly or in the aggregate, reasonably be expected to have a material adverse effect. Each Insurance Subsidiary has all other necessary authorizations, approvals, orders, consents, certificates, permits, registrations and qualifications ("**Authorizations**") of and from all insurance regulatory authorities necessary to conduct its existing business as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, except where the failure to have such Authorizations would not, singly or in the aggregate, reasonably be expected to have a material adverse effect. No Insurance Subsidiary has received notification from any insurance regulatory authority to the effect that any additional Authorizations are needed to be obtained by any Insurance Subsidiary in any case where the failure to obtain such additional Authorizations would reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole. Except as otherwise described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, no insurance regulatory authority having jurisdiction over an Insurance Subsidiary has issued any order or decree impairing, restricting or prohibiting (i) the payment of dividends by such Insurance Subsidiary, other than those restrictions applicable to insurance or reinsurance companies under such jurisdiction generally, or (ii) the continuation of the business of such Insurance Subsidiary in all respects as presently conducted, except in the case of this clause (ii), where such orders or decrees would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) All ceded reinsurance and retrocession agreements to which the Company or any of the Insurance Subsidiaries is a party are in full force and effect, except where the failure to be in full force and effect would not, singly or in the aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole. Neither the Company nor any of the Insurance Subsidiaries has received any written notice from any of the other parties to such agreements that such party intends not to perform such agreement, and neither the Company nor such Insurance Subsidiaries have any reason to believe that any of the other parties to such agreements will be unable to perform such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) The Company (i) has not alone engaged in any Testing-the-Waters Communication with any person other than Testing-the-Waters Communications with the consent of Morgan Stanley with entities that are reasonably believed to be qualified institutional buyers within the meaning of Rule 144A under the Securities Act or institutions that are reasonably believed to be accredited investors within the meaning of Rule 501 under the Securities Act and (ii) has not authorized anyone other than Morgan Stanley to engage in Testing-the-Waters Communications. The Company reconfirms that Morgan Stanley has been authorized to act on its behalf in undertaking Testing-the-Waters Communications. The Company has not distributed any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Securities Act other than those listed on Schedule V hereto. "**Testing-the-Waters Communication**" means any communication with potential investors undertaken in reliance on Section 5(d) or Rule 163B of the Securities Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) As of the time of each sale of the Shares in connection with the offering when the Prospectus is not yet available to prospective purchasers, none of (A) the Time of Sale Prospectus, (B) any free writing prospectus, when considered together with the Time of Sale Prospectus, and (C) any individual Testing-the-Waters Communication, when considered together with the Time of Sale Prospectus, included, includes or will include an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished to the Company in writing by or on behalf of any such Underwriter through Morgan Stanley expressly for use therein, or any Selling Shareholder Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries, on the one hand, and the directors, officers, stockholders, customers, suppliers or other affiliates of the Company or any of its subsidiaries, on the other, that is required by the Securities Act to be described in each of the Registration Statement and the Prospectus and that is not so described in such documents and the Time of Sale Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) The statements in the Registration Statement, the Time of Sale Prospectus and the Prospectus under the headings "Description of Capital Stock" and "Business" insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are fair and accurate summaries of such legal matters, agreements, documents or proceedings and present the information required to be shown in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) No mandatory stamp, documentary, issuance, registration, transfer or other similar taxes or duties (which similar taxes do not include, for the avoidance of doubt, net income taxes) are payable by or on behalf of the Underwriters, the Company or any of its subsidiaries in Bermuda, Belgium, the Cayman Islands, Canada, Italy, Ireland, Malta, Spain, Sweden, the United Kingdom and the United States or to any taxing authority thereof or therein in connection with (i) the execution or delivery of this Agreement, (ii) the creation, allotment and issuance of the Shares, (iii) the initial sale and delivery of the Shares to the Underwriters or purchasers procured by the Underwriters, or (iv) the resale, transfer and delivery of the shares by the Underwriters in the manner contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) Subject to the qualifications, limitations, exceptions and assumptions set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus, and further based on the current and anticipated value of the Company's assets, the current and anticipated composition of its income and assets, projections as to the value of its assets, and the expected market price of the Company's Common Shares, the Company does not expect to be a "**passive foreign investment company**" for its current taxable year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) It is not necessary under the laws of the Cayman Islands (i) to enable the Underwriters to enforce their rights under this Agreement, *provided* that they are not otherwise engaged in business in the Cayman Islands, or (ii) solely by reason of the execution, delivery or consummation of this Agreement, for any of the Underwriters to be qualified or entitled to carry out business in the Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) This Agreement is in proper form under the laws of the Cayman Islands for the enforcement thereof against the Company, and to ensure the legality, validity, enforceability or admissibility into evidence in the Cayman Islands of this Agreement, except that, Cayman Islands stamp duty would be required to be paid before this Agreement could be admitted into evidence before the courts of the Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) The courts of the Cayman Islands would recognize as a valid judgment any final monetary judgment obtained against the Company in the courts of the State of New York provided that, such judgment: (i) is given by a foreign court of competent jurisdiction; (ii) imposes on the judgment debtor a liability to pay a liquidated sum for which the judgment has been given; (iii) is final; (iv) is not in respect of taxes, a fine or a penalty; and (v) was not obtained in a manner and is not of a kind the enforcement of which is contrary to natural justice or the public policy of the Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) Neither the Company nor any of its subsidiaries nor any of its or their properties or assets has any immunity from the jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) under the laws of the Cayman Islands. The irrevocable and unconditional waiver and agreement of the Company contained in Section 21(a) not to plead or claim any such immunity in any legal action, suit or proceeding based on this Agreement is valid and binding under the laws of the Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) The choice of law of the State of New York as the governing law of this Agreement is a valid choice of law under the laws of the Cayman Islands and will be honored by the courts of the Cayman Islands *provided that* such choice of law has been made in good faith and will be upheld by the courts of the State of New York as a matter of law in the State of New York. The Company has the power to submit, and pursuant to Section 21(a) has, to the extent permitted by law, legally, validly, effectively and irrevocably submitted, to the jurisdiction of the Specified Courts (as defined in Section 21(a)), and has the power to designate, appoint and empower, and pursuant to Section 21(b), has legally, validly and effectively designated, appointed and empowered an agent for service of process in any suit or proceeding based on or arising under this Agreement in any of the Specified Courts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) The Registration Statement, the Prospectus, the Time of Sale Prospectus and any preliminary prospectus comply, and any amendments or supplements thereto will comply, with any applicable laws or regulations of foreign jurisdictions in which the Prospectus, the Time of Sale Prospectus, or any preliminary prospectus, as amended or supplemented, if applicable, are distributed in connection with the Directed Share Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) No consent, approval, authorization or order of, or qualification with, any governmental body or agency, other than those obtained, is required in connection with the offering of the Directed Shares in any jurisdiction where the Directed Shares are being offered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) The Company has not offered, or caused Morgan Stanley or any Morgan Stanley Entity as defined in Section 12 to offer, Shares to any person pursuant to the Directed Share Program with the specific intent to unlawfully influence (i) a customer or supplier of the Company to alter the customer's or supplier's level or type of business with the Company or (ii) a trade journalist or publication to write or publish favorable information about the Company or its products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *Representations and Warranties of the Selling Shareholders*. Each Selling Shareholder, severally and not jointly, represents and warrants to and agrees with each of the Underwriters that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement has been duly authorized, executed and delivered by or on behalf of such Selling Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution and delivery by such Selling Shareholder of, and the performance by such Selling Shareholder of its obligations under, this Agreement will not contravene (i) any provision of applicable law, or (ii) the certificate of incorporation or by-laws of such Selling Shareholder (if such Selling Shareholder is a corporation), or (iii) any agreement or other instrument binding upon such Selling Shareholder or (iv) any judgment, order or decree of any governmental body, agency or court having jurisdiction over such Selling Shareholder, except in the case of clauses (i), (iii) and (iv) as would not, individually or in the aggregate, have a material adverse effect on the ability of such Selling Shareholder to consummate the transactions contemplated by this Agreement, and no consent, approval, authorization or order of, or qualification with, any governmental body, agency or court is required for the performance by such Selling Shareholder of its obligations under this Agreement of such Selling Shareholder, except such as have been obtained and made under the Securities Act or such as may be required by the Financial Industry Regulatory Authority, the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), or applicable securities or Blue Sky laws of the various states in connection with the offer and sale of the Shares, or where the failure to obtain any such consent, approval, authorization, order or qualification would not, individually or in the aggregate, have a material adverse effect on the ability of such Selling Shareholder to consummate the transactions contemplated by this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Such Selling Shareholder has, and on the Closing Date will have, valid title to, or a valid "security entitlement" within the meaning of Section 8-501 of the New York Uniform Commercial Code (the "**UCC**") in respect of, the Shares to be sold by such Selling Shareholder free and clear of all security interests, claims, liens, equities or other encumbrances and the legal right and power, and all authorization and approval required by law, to enter into this Agreement and to sell, transfer and deliver the Shares to be sold by such Selling Shareholder or a security entitlement in respect of such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon payment for the Shares to be sold by such Selling Shareholder pursuant to this Agreement, delivery of such Shares, as directed by the Underwriters, to Cede & Co. ("**Cede**") or such other nominee as may be designated by the Depository Trust Company ("**DTC**"), registration of such Shares in the name of Cede or such other nominee and the crediting of such Shares on the books of DTC to securities accounts of the Underwriters (assuming that neither DTC nor any such Underwriter has notice of any adverse claim (within the meaning of Section 8-105 of the UCC) to such Shares), (A) DTC shall be a "protected purchaser" of such Shares within the meaning of Section 8-303 of the UCC, (B) under Section 8-501 of the UCC, the Underwriters will acquire a valid security entitlement in respect of such Shares and (C) no action based on any "adverse claim", within the meaning of Section 8-102 of the UCC, to such Shares may be asserted against the Underwriters with respect to such security entitlement; for purposes of this representation, such Selling Shareholder may assume that when such payment, delivery and crediting occur, (x) such Shares will have been registered in the name of Cede or another nominee designated by DTC, in each case on the Company's share registry in accordance with its certificate of incorporation, bylaws and applicable law, (y) DTC will be registered as a "clearing corporation" within the meaning of Section 8-102 of the UCC and (z) appropriate entries to the accounts of the several Underwriters on the records of DTC will have been made pursuant to Section 8-501 of the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Such Selling Shareholder is not prompted to sell the Shares to be sold by such Selling Shareholder hereunder by any information concerning the Company or any subsidiary of the Company which is not set forth in the Registration Statement, the Time of Sale Prospectus or the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) The Registration Statement, when it became effective, did not contain and, as amended or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) the Time of Sale Prospectus does not, and at the time of each sale of the Shares in connection with the offering when the Prospectus is not yet available to

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prospective purchasers and at the Closing Date (as defined in Section 5), the Time of Sale Prospectus, as then amended or supplemented by the Company, if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, (iii) each broadly available road show, if any, when considered together with the Time of Sale Prospectus, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and (iv) the Prospectus does not contain and, as amended or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph apply solely to the extent such statements or omissions are made in reliance upon and in conformity with Selling Shareholder Information relating to such Selling Shareholder and do not apply to statements or omissions in the Registration Statement, the Time of Sale Prospectus or the Prospectus based upon information relating to any Underwriter furnished to the Company in writing by such Underwriter through Morgan Stanley expressly for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) None of such Selling Shareholder, any of its subsidiaries, or any director, officer, employee, agent, affiliate, or representative of such Selling Shareholder or any of its subsidiaries is a Person that is, or is owned or controlled by one or more Persons that are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the subject of any Sanctions, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) located, organized or resident in a country or territory that is the subject of comprehensive territorial Sanctions (including, without limitation, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, or any other Covered Region of Ukraine identified pursuant to Executive Order 14065, Crimea, Cuba, Iran, North Korea and Syria).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Selling Shareholder and each of its subsidiaries and affiliates have not since April 24, 2019, engaged in, are not now engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Such Selling Shareholder will not, directly or indirectly, knowingly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions, except to the extent permitted for a Person required to comply with Sanctions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to fund or facilitate any money laundering or terrorist financing activities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in any other manner that will result in a violation of any Anti-Corruption Laws, Anti-Money Laundering Laws, or Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Selling Shareholder represents and warrants that it is not (i) an employee benefit plan subject to Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), (ii) a plan or account subject to Section 4975 of the Internal Revenue Code of 1986, as amended or (iii) an entity deemed to hold "plan assets" of any such plan or account under Section 3(42) of ERISA, 29 C.F.R. 2510.3-101, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) No stamp, documentary, issuance, registration, transfer, withholding, capital gains, income or other taxes or duties are payable by or on behalf of the Underwriters, the Company or any of its subsidiaries in Bermuda, Belgium, the Cayman Islands, Canada, Italy, Ireland, Malta, Spain, Sweden, the United Kingdom and the United States or to any taxing authority thereof or in connection with (i) the execution, delivery or consummation of this Agreement, (ii) the sale and delivery of the Shares to the Underwriters or purchasers procured by the Underwriters, or (iii) the resale and delivery of the Shares by the Underwriters in the manner contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Such Selling Shareholder has the power to submit, and pursuant to Section 21(a) has, to the extent permitted by law, legally, validly, effectively and irrevocably submitted, to the jurisdiction of the Specified Courts (as defined in Section 21(a)), and has the power to designate, appoint and empower, and pursuant to Section 21(c), has legally, validly and effectively designated, appointed and empowered an agent for service of process in any suit or proceeding based on or arising under this Agreement in any of the Specified Courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *Agreements to Sell and Purchase*. Each Seller, severally and not jointly, hereby agrees to sell to the several Underwriters, and each Underwriter, upon the basis of the representations and warranties herein contained, but subject to the terms and conditions hereinafter stated, agrees, severally and not jointly, to purchase from such Seller at $[•] a share (the "**Purchase Price**") the number of Firm Shares (subject to such adjustments to eliminate fractional shares as Morgan Stanley may determine) that bears the same proportion to the number of Firm Shares to be sold by such Seller as the number of Firm Shares set forth in Schedule II hereto opposite the name of such Underwriter bears to the total number of Firm Shares.

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On the basis of the representations and warranties contained in this Agreement, and subject to its terms and conditions, the Company and the Selling Shareholders agree to sell to the Underwriters the Additional Shares, and the Underwriters shall have the right to purchase, severally and not jointly, up to [•] Additional Shares at the Purchase Price, provided, however, that the amount paid by the Underwriters for any Additional Shares shall be reduced by an amount per share equal to any dividends declared by the Company and payable on the Firm Shares but not payable on such Additional Shares. Morgan Stanley may exercise this right on behalf of the Underwriters in whole or from time to time in part by giving written notice to the Company not later than 30 days after the date of this Agreement. Any exercise notice shall specify the number of Additional Shares to be purchased by the Underwriters and the date on which such shares are to be purchased. Each purchase date must be at least one business day after the written notice is given and may not be earlier than the closing date for the Firm Shares or later than ten business days after the date of such notice. Additional Shares may be purchased as provided in Section 5 hereof solely for the purpose of covering over-allotments made in connection with the offering of the Firm Shares. On each day, if any, that Additional Shares are to be purchased (an "**Option Closing Date**"), each Underwriter agrees, severally and not jointly, to purchase the number of Additional Shares (subject to such adjustments to eliminate fractional shares as Morgan Stanley may determine) that bears the same proportion to the total number of Additional Shares to be purchased on such Option Closing Date as the number of Firm Shares set forth in Schedule II hereto opposite the name of such Underwriter bears to the total number of Firm Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *Terms of Public Offering*. The Sellers are advised by Morgan Stanley that the Underwriters propose to make a public offering of their respective portions of the Shares as soon after the Registration Statement and this Agreement have become effective as in Morgan Stanley's judgment is advisable. The Sellers are further advised by Morgan Stanley that the Shares are to be offered to the public initially at $[•] a share (the "**Public Offering Price**") and to certain dealers selected by Morgan Stanley at a price that represents a concession not in excess of $[•] a share under the Public Offering Price, and that any Underwriter may allow, and such dealers may reallow, a concession, not in excess of $[•] a share, to any Underwriter or to certain other dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *Payment and Delivery*. Payment for the Firm Shares to be sold by each Seller shall be made to such Seller in Federal or other funds immediately available in New York City against issue or transfer (as applicable) and delivery of such Firm Shares for the respective accounts of the several Underwriters at 10:00 a.m., New York City time, on [•], 2025, or at such other time on the same or such other date, not later than [•], 2025, as shall be designated in writing by Morgan Stanley. The time and date of such payment are hereinafter referred to as the "**Closing Date**."

Payment for any Additional Shares shall be made to the applicable Seller in Federal or other funds immediately available in New York City against issue or transfer (as applicable) and delivery of such Additional Shares for the respective accounts of the several Underwriters at 10:00 a.m., New York City time, on the date specified in the corresponding notice described in Section 3 or at such other time on the same or on such other date, in any event not later than [•], 2025, as shall be designated in writing by Morgan Stanley.

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The Firm Shares and Additional Shares shall be registered in such names and in such denominations as Morgan Stanley shall request in writing not later than one full business day prior to the Closing Date or the applicable Option Closing Date, as the case may be. The Firm Shares and Additional Shares shall be issued or transferred (as applicable) and delivered to Morgan Stanley on the Closing Date or an Option Closing Date, as the case may be, for the respective accounts of the several Underwriters. The Purchase Price payable by the Underwriters shall be reduced by (i) any non-refundable transfer taxes paid by, or on behalf of, the Underwriters in connection with the transfer of the Shares to the Underwriters duly paid and (ii) any withholding required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *Conditions to the Underwriters' Obligations*. The obligations of the Sellers to sell the Shares to the Underwriters and the several obligations of the Underwriters to purchase and pay for the Shares on the Closing Date are subject to the condition that the Registration Statement shall have become effective not later than [•] (New York City time) on the date hereof.

The several obligations of the Underwriters are subject to the following further conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no order suspending the effectiveness of the Registration Statement shall be in effect, and no proceeding for such purpose or pursuant to Section 8A under the Securities Act shall be pending before or threatened by the Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any of the securities of the Company, any of its subsidiaries, or its parent or affiliates by any "nationally recognized statistical rating organization," as such term is defined in Section 3(a)(62) of the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Time of Sale Prospectus that, in Morgan Stanley's judgment, is material and adverse and that makes it, in Morgan Stanley's judgment, impracticable to market the Shares on the terms and in the manner contemplated in the Time of Sale Prospectus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Underwriters shall have received on the Closing Date a certificate, dated the Closing Date and signed by an executive officer of the Company, to the effect set forth in Sections 6(a)(i), 6(a)(ii) and 6(a)(iii) above and to the effect that the representations and warranties of the Company contained in this Agreement are true and correct as of the Closing Date and that the Company has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date.

The officer signing and delivering such certificate may rely upon the best of his or her knowledge as to proceedings threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Underwriters shall have received on the Closing Date an opinion of Maples and Calder (Cayman) LLP, Cayman Islands counsel for the Company, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Underwriters shall have received on the Closing Date an opinion letter (including certain negative assurances) of Sidley Austin LLP, counsel for the Company, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Underwriters shall have received on the Closing Date an opinion of Sidley Austin LLP, counsel for certain of the Selling Shareholders, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Underwriters shall have received on the Closing Date an opinion of Debevoise & Plimpton LLP, New York counsel for certain of the Selling Shareholders, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Underwriters shall have received on the Closing Date two opinions of Richards, Layton & Finger, P.A., Delaware counsel for certain of the Selling Shareholders, each dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Underwriters shall have received on the Closing Date an opinion of Conyers Dill & Pearman LLP, Bermuda counsel for certain of the Selling Shareholders, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Underwriters shall have received on the Closing Date an opinion of Dechert LLP, Maryland counsel for certain of the Selling Shareholders, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Underwriters shall have received on the Closing Date an opinion of Linklaters LLP, Luxembourg counsel for certain of the Selling Shareholders, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Underwriters shall have received on the Closing Date an opinion of Maples and Calder (Cayman) LLP, Cayman Islands counsel for certain of the Selling Shareholders, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Underwriters shall have received on the Closing Date an opinion of Walkers (Cayman) LLP, Cayman Islands counsel for certain of the Selling Shareholders, dated the Closing Date, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Underwriters shall have received on the Closing Date an opinion and negative assurance letter of Ropes & Gray LLP, counsel for the Underwriters, dated the Closing Date in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Underwriters shall have received on the Closing Date an opinion letter of Conyers Dill & Pearman LLP, Cayman counsel for the Underwriters, dated the Closing Date in form and substance reasonably satisfactory to Morgan Stanley.

With respect to the negative assurance letters to be delivered pursuant to Sections 6(d) and 6(m) above, Sidley Austin LLP and Ropes & Gray LLP may state that their opinions and beliefs are based upon their participation in the preparation of the Registration Statement, the Time of Sale Prospectus and the Prospectus and any amendments or supplements thereto and review and discussion of the contents thereof, but are without independent check or verification, except as specified.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Underwriters shall have received, on each of the date hereof and the Closing Date, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a letter dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Underwriters, from PricewaterhouseCoopers LLP, independent public accountants, containing statements and information of the type ordinarily included in accountants' "comfort letters" to underwriters with respect to the consolidated financial statements and certain financial information regarding the Company contained in the Registration Statement, the Time of Sale Prospectus and the Prospectus; *provided* that the letter delivered on the Closing Date shall use a "cut-off date" not earlier than the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a letter dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Underwriters, from PricewaterhouseCoopers LLP, independent public accountants, containing statements and information of the type ordinarily included in accountants' "comfort letters" to underwriters with respect to the consolidated financial statements and certain financial information regarding Accelerant Holdings LP contained in the Registration Statement, the Time of Sale Prospectus and the Prospectus; *provided* that the letter delivered on the Closing Date shall use a "cut-off date" not earlier than the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a certificate, dated the date hereof or the Closing Date, as the case may be, addressed to the Underwriters, of the Company's chief financial officer with respect to certain financial data contained in the Time of Sale Prospectus and Prospectus, providing "management comfort" with respect to such information, in form and substance reasonably satisfactory to Morgan Stanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) certificates of officers of the Selling Shareholders in form and substance reasonably satisfactory to Morgan Stanley as to the accuracy of the representations and warranties of the Selling Shareholders herein at and as of the Closing Date, as to the performance by each of the Selling Shareholders of all of their respective obligations hereunder to be performed at or prior to the Closing Date, and as to such other matters as the Morgan Stanley may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The lock-up agreements in substantially the form attached hereto as Exhibit A (the "**Lock-up Agreements**") between Morgan Stanley and the Persons listed on Schedule IV hereto shall be in full force and effect on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The several obligations of the Underwriters to purchase Additional Shares hereunder are subject to the delivery to Morgan Stanley on the applicable Option Closing Date of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate, dated the Option Closing Date and signed by an executive officer of the Company, confirming that the certificate delivered on the Closing Date pursuant to Section 6(b) hereof remains true and correct as of such Option Closing Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an opinion and negative assurance letter of Sidley Austin LLP, outside counsel for the Company, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(d) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an opinion of Maples and Calder (Cayman) LLP, Cayman Islands counsel for the Company, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(c) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an opinion of Sidley Austin LLP, outside counsel for certain of the Selling Shareholders, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(e) hereof; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) an opinion of Debevoise & Plimpton LLP, New York counsel for certain of the Selling Shareholders, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(f) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) two opinions of Richards, Layton & Finger, P.A., Delaware counsel for certain of the Selling Shareholders, each dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(g) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) an opinion of Conyers Dill & Pearman LLP, Bermuda counsel for certain of the Selling Shareholders, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(h) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) an opinion of Dechert LLP, Maryland counsel for certain of the Selling Shareholders, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(i) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) an opinion of Linklaters LLP, Luxembourg counsel for certain of the Selling Shareholders, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(j) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) an opinion of Maples and Calder (Cayman) LLP, Cayman Islands counsel for certain of the Selling Shareholders, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(k) hereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) an opinion of Walkers (Cayman) LLP, Cayman Islands counsel for certain of the Selling Shareholders, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(l) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) an opinion and negative assurance letter of Ropes & Gray LLP, counsel for the Underwriters, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(m) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) an opinion of Conyers Dill & Pearman LLP, Cayman counsel for the Underwriters, dated the Option Closing Date, relating to the Additional Shares to be purchased on such Option Closing Date and otherwise to the same effect as the opinion required by Section 6(n) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) two letters dated the Option Closing Date, in form and substance satisfactory to the Underwriters, from PricewaterhouseCoopers LLP, independent public accountants, substantially in the same form and substance as the letters furnished to the Underwriters pursuant to Section 6(o)(i) and Section 6(o)(ii) hereof; *provided* that the letter delivered on the Option Closing Date shall use a "cut-off date" not earlier than two business days prior to such Option Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) a certificate, dated the Option Closing Date and addressed to the Underwriters, of its chief financial officer with respect to certain financial data contained in the Time of Sale Prospectus and Prospectus, providing "management comfort" with respect to such information, in form and substance reasonably satisfactory to Morgan Stanley;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) certificates of officers of the Selling Shareholders in form and substance reasonably satisfactory to Morgan Stanley as to the accuracy of the representations and warranties of the Selling Shareholders herein at and as of the Option Closing Date, as to the performance by each of the Selling Shareholders of all of their respective obligations hereunder to be performed at or prior to the Option Closing Date, and as to such other matters as the Morgan Stanley may reasonably request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) such other documents as Morgan Stanley may reasonably request with respect to the good standing of the Company, the due authorization and issuance of the Additional Shares to be sold on such Option Closing Date and other matters related to the issuance of such Additional Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *Covenants of the Company*. The Company covenants with each Underwriter as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To furnish, if requested, to Morgan Stanley, without charge, three signed copies of the Registration Statement (including exhibits thereto) and for delivery to each other Underwriter a conformed copy of the Registration Statement (without exhibits thereto) and to furnish to Morgan Stanley in New York City, without charge, prior to 10:00 a.m. New York City time on the business day next succeeding the date of this Agreement and during the period mentioned in Section 7(e) or 7(f) below, as many copies of the Time of Sale Prospectus, the Prospectus and any supplements and amendments thereto or to the Registration Statement as Morgan Stanley may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Before amending or supplementing the Registration Statement, the Time of Sale Prospectus or the Prospectus, to furnish to Morgan Stanley a copy of each such proposed amendment or supplement and not to file any such proposed amendment or supplement to which Morgan Stanley reasonably objects, and to file with the Commission within the applicable period specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such Rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To furnish to Morgan Stanley a copy of each proposed free writing prospectus to be prepared by or on behalf of, used by, or referred to by the Company and not to use or refer to any proposed free writing prospectus to which Morgan Stanley reasonably objects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Not to take any action that would result in an Underwriter or the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of the Underwriter that the Underwriter otherwise would not have been required to file thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Time of Sale Prospectus is being used to solicit offers to buy the Shares at a time when the Prospectus is not yet available to prospective purchasers and any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Time of Sale Prospectus in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if any event shall occur or condition exist as a result of which the Time of Sale Prospectus conflicts with the information contained in the Registration Statement then on file, or if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the Time of Sale Prospectus to comply with applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to any dealer upon request, either amendments or supplements to the Time of Sale Prospectus so that the statements in the Time of Sale Prospectus as so amended or supplemented will not, in the light of the circumstances when the Time of Sale Prospectus is delivered to a prospective purchaser, be misleading or so that the Time of Sale Prospectus, as amended or supplemented, will no longer conflict with the Registration Statement, or so that the Time of Sale Prospectus, as amended or supplemented, will comply with applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If, during such period after the first date of the public offering of the Shares as in the opinion of counsel for the Underwriters the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) of the Securities Act) is required by law to be delivered in connection with sales by an Underwriter or dealer, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus in order to make the statements therein, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) of the Securities Act) is delivered to a purchaser, not misleading, or if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the Prospectus to comply with applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to the dealers (whose names and addresses Morgan Stanley will furnish to the Company) to which Shares may have been sold by Morgan Stanley on behalf of the Underwriters and to any other dealers upon request, either amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented will not, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) of the Securities Act) is delivered to a purchaser, be misleading or so that the Prospectus, as amended or supplemented, will comply with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To endeavor to qualify the Shares for offer and sale under the securities or Blue Sky laws of such jurisdictions as Morgan Stanley shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To make generally available to the Company's security holders and to Morgan Stanley as soon as practicable an earnings statement covering a period of at least twelve months beginning with the first fiscal quarter of the Company occurring after the date of this Agreement which shall satisfy the provisions of Section 11(a) of the Securities Act and the rules and regulations of the Commission thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To comply with all applicable securities and other laws, rules and regulations in each jurisdiction in which the Directed Shares are offered in connection with the Directed Share Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) If any Seller is not a U.S. person for U.S. federal income tax purposes, the Company will deliver to each Underwriter (or its agent), on or before the Closing Date, (i) a certificate with respect to the Company's status as a "United States real property holding corporation," dated not more than thirty (30) days prior to the Closing Date, as described in Treasury Regulations Sections 1.897-2(h) and 1.1445-2(c)(3), and (ii) proof of delivery to the Internal Revenue Service ("**IRS**") of the required notice, as described in Treasury Regulations 1.897-2(h)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company will promptly notify Morgan Stanley if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion of the distribution of the Shares within the meaning of the Securities Act and (ii) completion of the Restricted Period (as defined herein) referred to in Section 3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) If at any time following the distribution of any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Securities Act there occurred or occurs an event or development as a result of which such Testing-the-Waters Communication included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company will promptly notify Morgan Stanley and will promptly amend or supplement, at its own expense, such Testing-the-Waters Communication to eliminate or correct such untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company shall pay, and shall indemnify and hold the Underwriters harmless against, any stamp, issue, registration, documentary, sales, transfer, income, capital gains or other similar taxes or duties imposed under the laws of Cayman Islands or any political sub-division or taxing authority thereof or therein that is payable in connection with (i) the execution, delivery, consummation or enforcement of this Agreement, (ii) the creation, allotment and issuance of the Shares, (iii) the sale and delivery of the Shares to the Underwriters or purchasers procured by the Underwriters, or (iv) the resale, transfer and delivery of the Shares by the Underwriters in the manner contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company also covenants with each Underwriter that, without the prior written consent of Morgan Stanley on behalf of the Underwriters, it will not, and will not publicly disclose an intention to, during the period ending 180 days after the date of the Prospectus (the "**Restricted Period**"), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Shares, whether any such transaction described in clause (1) or (2) above is to be settled by transfer and delivery of Common Shares or such other securities, in cash or otherwise or (3) file any registration statement with the Commission relating to the offering of any Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares.

The restrictions contained in the preceding paragraph shall not apply to (A) the Shares to be sold hereunder, (B) the issuance by the Company of Common Shares upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof as described in each of the Time of Sale Prospectus and Prospectus, (C) facilitating the establishment of a trading plan on behalf of a shareholder, officer or director of the Company pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Common Shares, *provided* that (i)

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such plan does not provide for the transfer of Common Shares during the Restricted Period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by the Company regarding the establishment of such plan, such announcement or filing shall include a statement to the effect that no transfer of Common Shares may be made under such plan during the Restricted Period or (D) the issuance of Common Shares in exchange for units issued under the limited liability company agreement of 2WJ, LLC ("**ARU**"), dated as of May 4, 2021 (the "**ARU LLCA**"), provided that the issuance of any such securities pursuant to this clause (D) shall not exceed $35 million of Common Shares, an amount calculated pursuant to Section 8.1(b) of the ARU LLCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) If Morgan Stanley, in its sole discretion, agrees to release or waive the restrictions on the transfer of Shares set forth in a Lock-up Agreement for an officer or director of the Company and provides the Company with notice of the impending release or waiver at least three business days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release substantially in the form of Exhibit B hereto through a major news service at least two business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *Covenants of the Sellers*. Each Seller, severally and not jointly, covenants with each Underwriter as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Seller will deliver to each Underwriter (or its agent), prior to or at the Closing Date, a properly completed and executed IRS Form W-9 or an IRS Form W-8, as appropriate, together with all required attachments to such form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Seller will deliver to each Underwriter (or its agent), on or prior to the date of execution of this Agreement, a properly completed and executed Certification Regarding Beneficial Owners of Legal Entity Customers, together with copies of identifying documentation, and each Seller undertakes to provide such additional supporting documentation as each Underwriter may reasonably request in connection with the verification of the foregoing Certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All sums payable by the Company or the Selling Shareholders under this Agreement shall be paid free and clear of and without deductions or withholdings of any present or future taxes or duties, unless the deduction or withholding is required by law, in which case the Company or the Selling Shareholder, as the case may be, shall pay such additional amount as will result in the receipt by each Underwriter of the full amount that would have been received had no deduction or withholding been made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All sums payable to an Underwriter shall be considered exclusive of any value added or similar taxes. Where the Company or, as the case may be, a Selling Shareholder is obliged to pay value added or similar tax on any amount payable hereunder to an Underwriter, the Company or the Selling Shareholder, as the case may be, shall in addition to the sum payable hereunder pay an amount equal to any applicable value added or similar tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. *Expenses*. Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, the Company agrees to pay or cause to be paid all expenses incident to the performance of the Sellers' obligations under this Agreement, including: (i) the fees, disbursements and expenses of the Company's counsel (including U.S. and Cayman Islands counsel and any other local and special counsel), the Company's accountants and counsel for the Selling Shareholders in connection with the registration and delivery of the Shares under the Securities Act and all other fees or expenses in connection with the preparation and filing of the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, the Prospectus, any free writing prospectus prepared by or on behalf of, used by, or referred to by the Company and amendments and supplements to any of the foregoing, including all printing costs associated therewith, and the mailing and delivering of copies thereof to the Underwriters and dealers, in the quantities hereinabove specified, (ii) all costs and expenses related to the transfer and delivery of the Shares to the Underwriters, including any transfer or other taxes payable thereon, (iii) the reasonably incurred cost of printing or producing any Blue Sky or Legal Investment memorandum in connection with the offer and sale of the Shares under state securities laws and all expenses in connection with the qualification of the Shares for offer and sale under state securities laws as provided in Section 7(g) hereof, including filing fees and the reasonable fees and disbursements of counsel for the Underwriters in connection with such qualification and in connection with the Blue Sky or Legal Investment memorandum (provided that the amount payable by the Company with respect to the fees and disbursements of counsel for the Underwriters pursuant to clause (iii) shall not exceed $15,000), (iv) all filing fees and the reasonably incurred fees and disbursements of counsel to the Underwriters incurred in connection with the review and qualification of the offering of the Shares by the Financial Industry Regulatory Authority (provided that the amount payable by the Company with respect to the fees and disbursements of counsel for the Underwriters pursuant to clause (iv) shall not exceed $40,000), (v) all fees and expenses in connection with the preparation and filing of the registration statement on Form 8-A relating to the Common Shares and all costs and expenses incident to listing the Shares on the New York Stock Exchange, (vi) the cost of printing certificates representing the Shares, (vii) the costs and charges of any transfer agent, registrar or depositary, (viii) the costs and expenses of the Company relating to investor presentations on any "road show" undertaken in connection with the marketing of the offering of the Shares, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging expenses of the representatives and officers of the Company and any such consultants, and the cost of any

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aircraft chartered in connection with the road show provided, however, that the Underwriters shall pay or reimburse the Company half of the cost of any aircraft chartered in connection with the road show, (ix) the document production charges and expenses associated with printing this Agreement, (x) any stamp duties, similar taxes or duties or other taxes, if any, incurred by Morgan Stanley in connection with the Directed Share Program, and (xi) all other costs and expenses incident to the performance of the obligations of the Company hereunder for which provision is not otherwise made in this Section. It is understood, however, that except as provided in this Section, Section 11 entitled "Indemnity and Contribution", Section 12 entitled "Directed Share Program Indemnification" and the last paragraph of Section 14 below, the Underwriters will pay all of their costs and expenses, including fees and disbursements of their counsel, stock transfer taxes payable on resale of any of the Shares by them and any advertising expenses connected with any offers they may make.

The provisions of this Section shall not supersede or otherwise affect any agreement that the Sellers may otherwise have for the allocation of such expenses among themselves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. *Covenants of the Underwriters*. Each Underwriter, severally and not jointly, covenants with the Company not to take any action that would result in the Company being required to file with the Commission under Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of such Underwriter that otherwise would not be required to be filed by the Company thereunder, but for the action of the Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. *Indemnity and Contribution*. (a) The Company agrees to indemnify and hold harmless each Underwriter, each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any Underwriter within the meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any amendment thereof, any preliminary prospectus, the Time of Sale Prospectus or any amendment or supplement thereto, any issuer free writing prospectus as defined in Rule 433(h) under the Securities Act, any Company information that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act, any "road show" as defined in Rule 433(h) under the Securities Act (a "road show"), the Prospectus or any amendment or supplement thereto, or any Testing-the-Waters Communication or arise out of, or are based upon, any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages or liabilities that arise out of, or are based upon, any such untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Underwriter furnished to the Company in writing by such Underwriter through Morgan Stanley expressly for use therein, it being understood and agreed that the only such information furnished by the Underwriters through Morgan Stanley consists of the information described as such in paragraph (c) below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Selling Shareholder, severally and not jointly, agrees to indemnify and hold harmless each Underwriter, each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any Underwriter within the meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any amendment thereof, any preliminary prospectus, the Time of Sale Prospectus or any amendment or supplement thereto, any issuer free writing prospectus as defined in Rule 433(h) under the Securities Act, any Company information that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act, any road show, the Prospectus or any amendment or supplement thereto, or any Testing-the-Waters Communication or arise out of, or are based upon, any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but in each case only with reference to the Selling Shareholder Information relating to such Selling Shareholder and to the extent made in reliance upon and in conformity with any Selling Shareholder Information furnished in writing by or on behalf of such Selling Shareholder expressly for use in the Registration Statement or any amendment thereof, any preliminary prospectus, the Time of Sale Prospectus or any amendment or supplement thereto, any issuer free writing prospectus as defined in Rule 433(h) under the Securities Act, any Company information that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act, any road show, the Prospectus or any amendment or supplement thereto, or any Testing-the-Waters Communication; provided that the liability under this subsection of each Selling Shareholder shall be limited to an amount equal to the aggregate net proceeds (after deducting underwriting discounts and commissions, but before deducting expenses) of the Shares sold by such Selling Shareholder under this Agreement (with respect to each Selling Shareholder, the "**Selling Shareholder Proceeds**") less any amounts such Selling Shareholder actually pays pursuant to the contribution provisions of Section 11(e) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company, the Selling Shareholders, the directors of the Company, the officers of the Company who sign the Registration Statement and each person, if any, who controls the Company or any Selling Shareholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any amendment thereof, any preliminary prospectus, the Time of Sale Prospectus or any amendment or

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supplement thereto, any issuer free writing prospectus as defined in Rule 433(h) under the Securities Act, any Company information that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act, any road show or the Prospectus or any amendment or supplement thereto, or arise out of, or are based upon, any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but only with reference to information relating to such Underwriter furnished to the Company in writing by such Underwriter expressly for use in the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, any issuer free writing prospectus, road show or the Prospectus or any amendment or supplement thereto or any Testing-the-Waters Communication, it being understood and agreed upon that only such information furnished by such Underwriter consists of the following information in the Registration Statement, the Time of Sale Prospectus and the Prospectus or any amendment or supplement thereto on behalf of each Underwriter: the concession and reallowance figures appearing in the first sentence in the third paragraph under the caption "Underwriters" and the information contained in the eleventh paragraph under the caption "Underwriters" relating to price stabilization and short positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to Section 11(a), 11(b) or 11(c), such person (the "**indemnified party**") shall promptly notify the person against whom such indemnity may be sought (the "**indemnifying party**") in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and shall pay the reasonably incurred fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for (i) the fees and expenses of more than one separate firm (in addition to any local counsel) for all Underwriters and all persons, if any, who control any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act or who are affiliates of any Underwriter within the meaning of Rule 405 under the Securities Act, (ii) the fees and expenses of more than one separate firm (in addition to any local counsel) for the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either such Section and (iii) the fees and expenses of more than one separate firm (in addition to any local

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counsel) for all Selling Shareholders and all persons, if any, who control any Selling Shareholder within the meaning of either such Section, and that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the Underwriters and such control persons and affiliates of any Underwriters, such firm shall be designated in writing by Morgan Stanley. In the case of any such separate firm for the Company, and such directors, officers and control persons of the Company, such firm shall be designated in writing by the Company. In the case of any such separate firm for the Selling Shareholders and such control persons of any Selling Shareholders, such firm shall be designated in writing by the Selling Shareholders. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent the indemnification provided for in Section 11(a), 11(b) or 11(c) is unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party or parties on the other hand from the offering of the Shares or (ii) if the allocation provided by clause 11(e)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 11(e)(i) above but also the relative fault of the indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Sellers on the one hand and the Underwriters on the other hand in connection with the offering of the Shares shall be deemed to be in the

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same respective proportions as the net proceeds from the offering of the Shares (after deducting underwriting discounts and commissions but before deducting other offering expenses) received by each Seller and the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate Public Offering Price of the Shares. The relative fault of the Sellers on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Sellers or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Underwriters' respective obligations to contribute pursuant to this Section 11 are several in proportion to the respective number of Shares they have purchased hereunder, and not joint. The liability of each Selling Shareholder under the contribution agreement contained in this paragraph shall be limited to an amount equal to the Selling Shareholder Proceeds of such Selling Shareholder less any amounts that such Selling Shareholder actually pays pursuant to Section 11(b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Sellers and the Underwriters agree that it would not be just or equitable if contribution pursuant to this Section 11 were determined by *pro rata* allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 11(e). The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities referred to in Section 11(e) shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 11, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The remedies provided for in this Section 11 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The indemnity and contribution provisions contained in this Section 11 and the representations, warranties and other statements of the Company and the Selling Shareholders contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Underwriter, any person controlling any Underwriter or any affiliate of any Underwriter, by or on behalf of any Selling Shareholder or any person controlling any Selling Shareholder, or by or on behalf of the Company, its officers or directors or any person controlling the Company and (iii) acceptance of and payment for any of the Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. *Directed Share Program Indemnification*. (a) The Company agrees to indemnify and hold harmless Morgan Stanley, each person, if any, who controls Morgan Stanley within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and each affiliate of Morgan Stanley within the meaning of Rule 405 of the Securities Act ("**Morgan Stanley Entities**") from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the consent of the Company for distribution to Participants in connection with the Directed Share Program or arise out of, or are based upon, any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) that arise out of, or are based upon, the failure of any Participant to pay for and accept delivery of Directed Shares that the Participant agreed to purchase; or (iii) related to, arising out of, or in connection with the Directed Share Program, other than losses, claims, damages or liabilities (or expenses relating thereto) that are finally judicially determined to have resulted from the bad faith or gross negligence of Morgan Stanley Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case any proceeding (including any governmental investigation) shall be instituted involving any Morgan Stanley Entity in respect of which indemnity may be sought pursuant to Section 12(a), the Morgan Stanley Entity seeking indemnity, shall promptly notify the Company in writing and the Company, upon request of the Morgan Stanley Entity, shall retain counsel reasonably satisfactory to the Morgan Stanley Entity to represent the Morgan Stanley Entity and any others the Company may designate in such proceeding and shall pay the reasonably incurred, documented fees and disbursements of such counsel related to such proceeding. In any such proceeding, any Morgan Stanley Entity shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Morgan Stanley Entity unless (i) the Company shall have agreed in writing to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the Company and the Morgan Stanley Entity and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. The Company shall not, in respect of the legal expenses of the Morgan Stanley Entities in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonably incurred fees and expenses of more than one separate firm (in addition to any local counsel) for all Morgan Stanley Entities. Any such separate firm for the Morgan Stanley Entities shall be designated in writing by Morgan Stanley. The Company shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Company agrees to indemnify the Morgan Stanley Entities from and against any loss or liability by reason of such settlement or judgment.

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Notwithstanding the foregoing sentence, if at any time a Morgan Stanley Entity shall have requested the Company to reimburse it for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the Company agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by the Company of the aforesaid request and (ii) the Company shall not have reimbursed the Morgan Stanley Entity in accordance with such request prior to the date of such settlement. The Company shall not, without the prior written consent of Morgan Stanley, effect any settlement of any pending or threatened proceeding in respect of which any Morgan Stanley Entity is or could have been a party and indemnity could have been sought hereunder by such Morgan Stanley Entity, unless such settlement includes an unconditional release of the Morgan Stanley Entities from all liability on claims that are the subject matter of such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent the indemnification provided for in Section 12(a) is unavailable to a Morgan Stanley Entity or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then the Company in lieu of indemnifying the Morgan Stanley Entity thereunder, shall contribute to the amount paid or payable by the Morgan Stanley Entity as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Morgan Stanley Entities on the other hand from the offering of the Directed Shares or (ii) if the allocation provided by clause 12(c)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 12(c)(i) above but also the relative fault of the Company on the one hand and of the Morgan Stanley Entities on the other hand in connection with any statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Morgan Stanley Entities on the other hand in connection with the offering of the Directed Shares shall be deemed to be in the same respective proportions as the net proceeds from the offering of the Directed Shares (before deducting expenses) and the total underwriting discounts and commissions received by the Morgan Stanley Entities for the Directed Shares, bear to the aggregate Public Offering Price of the Directed Shares. If the loss, claim, damage or liability is caused by an untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, the relative fault of the Company on the one hand and the Morgan Stanley Entities on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement or the omission or alleged omission relates to information supplied by the Company or by the Morgan Stanley Entities and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company and the Morgan Stanley Entities agree that it would not be just or equitable if contribution pursuant to this Section 12 were determined by pro rata allocation (even if the Morgan Stanley Entities were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 12(c). The amount paid or payable by the Morgan Stanley Entities as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by the Morgan Stanley Entities in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 12, no Morgan Stanley Entity shall be required to contribute any amount in excess of the amount by which the total price at which the Directed Shares distributed to the public were offered to the public exceeds the amount of any damages that such Morgan Stanley Entity has otherwise been required to pay. The remedies provided for in this Section 12 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The indemnity and contribution provisions contained in this Section 12 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Morgan Stanley Entity or the Company, its officers or directors or any person controlling the Company and (iii) acceptance of and payment for any of the Directed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. *Termination*. The Underwriters may terminate this Agreement by notice given by Morgan Stanley to the Company and the Selling Shareholders, if after the execution and delivery of this Agreement and prior to or on the Closing Date or any Option Closing Date, as the case may be, (i) trading generally shall have been suspended or materially limited on, or by, as the case may be, any of the New York Stock Exchange or the Nasdaq Global Select Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii) trading of any securities of the Company shall have been suspended on any exchange or in any over-the-counter market, (iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (iv) any moratorium on commercial banking activities shall have been declared by Federal or New York State or relevant foreign country authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis that, in Morgan Stanley's judgment, is material and adverse and which, singly or together with any other event specified in this clause (v), makes it, in Morgan Stanley's judgment, impracticable or inadvisable to proceed with the offer, sale or delivery of the Shares on the terms and in the manner contemplated in the Time of Sale Prospectus or the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. *Effectiveness; Defaulting Underwriters*. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

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If, on the Closing Date or an Option Closing Date, as the case may be, any one or more of the Underwriters shall fail or refuse to purchase Shares that it has or they have agreed to purchase hereunder on such date, and the aggregate number of Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase is not more than one-tenth of the aggregate number of the Shares to be purchased on such date, the other Underwriters shall be obligated severally in the proportions that the number of Firm Shares set forth opposite their respective names in Schedule II bears to the aggregate number of Firm Shares set forth opposite the names of all such non-defaulting Underwriters, or in such other proportions as Morgan Stanley may specify, to purchase the Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date; *provided* that in no event shall the number of Shares that any Underwriter has agreed to purchase pursuant to this Agreement be increased pursuant to this Section 14 by an amount in excess of one-ninth of such number of Shares without the written consent of such Underwriter. If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Firm Shares and the aggregate number of Firm Shares with respect to which such default occurs is more than one-tenth of the aggregate number of Firm Shares to be purchased on such date, and arrangements satisfactory to Morgan Stanley, the Company and the Selling Shareholders for the purchase of such Firm Shares are not made within 36 hours after such default, this Agreement shall terminate without liability on the part of any non-defaulting Underwriter, the Company or the Selling Shareholders. In any such case either Morgan Stanley or the relevant Sellers shall have the right to postpone the Closing Date, but in no event for longer than seven days, in order that the required changes, if any, in the Registration Statement, in the Time of Sale Prospectus, in the Prospectus or in any other documents or arrangements may be effected. If, on an Option Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Additional Shares and the aggregate number of Additional Shares with respect to which such default occurs is more than one-tenth of the aggregate number of Additional Shares to be purchased on such Option Closing Date, the non-defaulting Underwriters shall have the option to (i) terminate their obligation hereunder to purchase the Additional Shares to be sold on such Option Closing Date or (ii) purchase not less than the number of Additional Shares that such non-defaulting Underwriters would have been obligated to purchase in the absence of such default. Any action taken under this paragraph shall not relieve any defaulting Underwriter from liability in respect of any default of such Underwriter under this Agreement.

If this Agreement shall be terminated by the Underwriters, or any of them, because of any failure or refusal on the part of any Seller to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason any Seller shall be unable to perform its obligations under this Agreement, the Sellers will reimburse the Underwriters or such Underwriters as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the fees and disbursements of their counsel) reasonably incurred by such Underwriters in connection with this Agreement or the offering contemplated hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. *Entire Agreement*. (a) This Agreement represents the entire agreement between the Company and the Selling Shareholders, on the one hand, and the Underwriters, on the other, with respect to the preparation of any preliminary prospectus, the Time of Sale Prospectus, the Prospectus, the conduct of the offering, and the purchase and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company and each Selling Shareholder acknowledge that in connection with the offering of the Shares: (i) the Underwriters have acted at arm's length, are not agents of, and owe no fiduciary duties to, the Company, any of the Selling Shareholders or any other person, (ii) the Underwriters owe the Company and each Selling Shareholder only those duties and obligations set forth in this Agreement, any contemporaneous written agreements and prior written agreements (to the extent not superseded by this Agreement), if any, (iii) the Underwriters may have interests that differ from those of the Company and each Selling Shareholder, and (iv) none of the activities of the Underwriters in connection with the transactions contemplated herein constitutes a recommendation, investment advice, or solicitation of any action by the Underwriters with respect to any entity or natural person. The Company and each Selling Shareholder waive to the full extent permitted by applicable law any claims it may have against the Underwriters arising from an alleged breach of fiduciary duty in connection with the offering of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Selling Shareholder further acknowledges and agrees that, although the Underwriters may provide certain Selling Shareholders with certain Regulation Best Interest and Form CRS disclosures or other related documentation in connection with the offering, the Underwriters are not making a recommendation to any Selling Shareholder to participate in the offering or sell any Shares at the Purchase Price, and nothing set forth in such disclosures or documentation is intended to suggest that any Underwriter is making such a recommendation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. *Recognition of the U.S. Special Resolution Regimes*. (a) In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

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For purposes of this Section, a "**BHC Act Affiliate**" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k). "**Covered Entity**" means any of the following: (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). "**Default Right**" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. "**U.S. Special Resolution Regime**" means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. *Counterparts*. This Agreement may be signed in two or more counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to this Agreement or any document to be signed in connection with this Agreement shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, and the parties hereto consent to conduct the transactions contemplated hereunder by electronic means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. *Applicable Law*. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. *Headings*. The headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. *Notices.* All communications hereunder shall be in writing and effective only upon receipt and if to the Underwriters shall be delivered, mailed or sent to Morgan Stanley in care of Morgan Stanley & Co. LLC, 1585 Broadway, New York, New York 10036, Attention: Equity Syndicate Desk, with a copy to the Legal Department; if to the Company shall be delivered, mailed or sent to Accelerant Holdings c/o Accelerant Re (Cayman) Ltd., Unit 106, Windward 3, Regatta Office Park, West Bay Road, Grand Cayman; and if to the Selling Shareholders shall be delivered, mailed or sent to [___].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. *Submission to Jurisdiction; Appointment of Agents for Service*. (a) The Company and each of the Selling Shareholders irrevocably submits to the non-exclusive jurisdiction of any New York State or United States Federal court sitting in The City of New York (the "**Specified Courts**") over any suit, action or proceeding arising out of or relating to this Agreement, the Time of Sale Prospectus, the Prospectus, the Registration Statement or the offering of the Shares (each, a "**Related Proceeding**"). The Company and each of the Selling Shareholders irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any Related Proceeding brought in such a court and any claim that any such Related Proceeding brought in such a court has been brought in an inconvenient forum. To the extent that the Company and each of the Selling Shareholders has or hereafter may acquire any immunity (on the grounds of sovereignty or otherwise) from the jurisdiction of any court or from any legal process with respect to itself or its property, the Company and each of the Selling Shareholders irrevocably waives, to the fullest extent permitted by law, such immunity in respect of any such suit, action or proceeding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company hereby irrevocably appoints The Corporation Trust Company, with offices at 1209 Orange Street, Wilmington, DE 19801 as its agent for service of process in any Related Proceeding and agrees that service of process in any such Related Proceeding may be made upon it at the office of such agent. The Company waives, to the fullest extent permitted by law, any other requirements of or objections to personal jurisdiction with respect thereto. The Company represents and warrants that such agent has agreed to act as the Company's agent for service of process, and the Company agrees to take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each of the Selling Shareholders not incorporated, organized or formed in Delaware hereby irrevocably appoints Corporation Service Company, with offices at 251 Little Falls Drive, Wilmington, Delaware 19808 as its agent for service of process in any Related Proceeding and agrees that service of process in any such Related Proceeding may be made upon it at the office of such agent. Each of the Selling Shareholders waives, to the fullest extent permitted by law, any other requirements of or objections to personal jurisdiction with respect thereto. Each of the Selling Shareholders represents and warrants that such agent has agreed to act as the Selling Shareholders' agent for service of process, and Each of the Selling Shareholders agrees to take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. *Judgment Currency*. If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder into any currency other than United States dollars, the parties hereto agree, to the fullest extent permitted by law, that the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Underwriters could purchase United States dollars with such other currency in The City of New York on the business day preceding that on which final judgment is given. The obligation of the Company or any Selling Shareholder with respect to any sum due from it to any Underwriter or any person controlling any Underwriter shall, notwithstanding any judgment in a currency other than United States dollars, not be discharged until the first business day following receipt by such Underwriter or controlling person of any sum in such other currency, and only to the extent that such Underwriter or controlling person may in accordance with normal banking procedures purchase United States dollars with such other currency. If the United States dollars so purchased are less than the sum originally due to such Underwriter or controlling person hereunder, the Company and each of the Selling Shareholders agrees as a separate obligation and notwithstanding any such judgment, to indemnify such Underwriter or controlling person against such loss. If the United States dollars so purchased are greater than the sum originally due to such Underwriter or controlling person hereunder, such Underwriter or controlling person agrees to pay to the Company or the relevant Selling Shareholder(s), as applicable, an amount equal to the excess of the dollars so purchased over the sum originally due to such Underwriter or controlling person hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. *Taxes.* If any sum payable by the Company or a Selling Shareholder under this Agreement is subject to tax in the hands of an Underwriter or taken into account as a receipt in computing the taxable income of that Underwriter (excluding net income taxes on underwriting commissions payable hereunder), the sum payable to the Underwriter under this Agreement shall be increased to such sum as will ensure that the Underwriter shall be left with the sum it would have had in the absence of such tax.

[*Signature Page Follows*]

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| Accelerant Holdings | Accelerant Holdings |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| By: [Selling Shareholder] | By: [Selling Shareholder] |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| Accepted as of the date hereof | Accepted as of the date hereof |
| Morgan Stanley & Co. LLC | Morgan Stanley & Co. LLC |
|  Acting severally on behalf of themselves and the several Underwriters named in Schedule II hereto | Acting severally on behalf of themselves and the several Underwriters named in Schedule II hereto |
| By: | Morgan Stanley & Co. LLC |
| By: |  |
|  | Name: |
|  | Title: |

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**SCHEDULE I** 

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| | | |
|:---|:---|:---|
| **Selling Shareholder** | **Number of Firm**<br>**Shares To Be Sold** | **Number of Additional**<br>**Shares To Be Sold** |
| [___] | [___] | [___] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total: | [___] | [___] |

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**SCHEDULE II** 

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| | |
|:---|:---|
| **Underwriter** | **Number of Firm Shares**<br>**To Be Purchased** |
|  Morgan Stanley & Co. LLC |  |
|  Goldman Sachs & Co. LLC |  |
|  BMO Capital Markets Corp. |  |
|  RBC Capital Markets, LLC |  |
|  Wells Fargo Securities, LLC |  |
|  Piper Sandler & Co. |  |
|  William Blair & Company, L.L.C. |  |
|  Raymond James & Associates, Inc. |  |
|  TD Securities (USA) LLC |  |
|  Citizens JMP Securities, LLC |  |
|  Financial Technology Partners, LLC |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total: |  |

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**SCHEDULE III** 

**Time of Sale Prospectus** 

1. Preliminary Prospectus issued [date]

2. [identify all free writing prospectuses filed by the Company under Rule 433(d) of the Securities Act]

3. [any free writing prospectus containing a description of terms that does not reflect final terms, if the Time
of Sale Prospectus does not include a final term sheet]

4. [orally communicated pricing information such as price per share and size of offering if a Rule 134 pricing
term sheet is used at the time of sale instead of a pricing term sheet filed by the Company under Rule 433(d) as a free writing prospectus]

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**SCHEDULE IV** 

[__]

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**SCHEDULE V** 

**Written Testing-the-Water Communications** 

1. [__]

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**EXHIBIT A** 

**FORM OF LOCK-UP AGREEMENT** 

_________, 2025

Morgan Stanley & Co. LLC

1585 Broadway

New York, NY 10036

Ladies and Gentlemen:

The undersigned understands that Morgan Stanley & Co. LLC ("**Morgan Stanley**") proposes to enter into an Underwriting Agreement (the "**Underwriting Agreement**") with Accelerant Holdings, a Cayman Islands exempted company (the "**Company**"), providing for the public offering (the "**Public Offering**") by the several Underwriters, including Morgan Stanley (the "**Underwriters**"), of [ ] Class A common shares (the "**Shares**") of the Company, par value $0.0000011951862 per share (the "**Common Shares**"). Capitalized terms used but not defined herein shall have the definitions attributed to them in the Underwriting Agreement.

To induce the Underwriters that may participate in the Public Offering to continue their efforts in connection with the Public Offering, the undersigned hereby agrees that, without the prior written consent of Morgan Stanley on behalf of the Underwriters, it will not, will not cause any direct or indirect affiliate to, and will not publicly disclose an intention to, during the period commencing on the date hereof and ending 180 days after the date of the final prospectus (the "**Restricted Period"**) relating to the Public Offering (the "**Prospectus**"), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Shares beneficially owned (as such term is used in Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**")), by the undersigned or any other securities so owned convertible into or exercisable or exchangeable for Common Shares or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Shares, whether any such transaction described in clause (1) or (2) above is to be settled by transfer and delivery of Common Shares or such other securities, in cash or otherwise. The foregoing sentence shall not apply to (a) transactions relating to Common Shares or other securities acquired in open market transactions after the completion of the Public Offering, *provided* that no filing under Section 16(a) of the Exchange Act shall be required or shall be made during the Restricted Period in connection with subsequent sales of Common Shares or other securities acquired in such open market transactions; (b) transfers of Common Shares or any security convertible into Common Shares as a bona fide gift or

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for bona fide estate planning purposes, by will or other testamentary document or intestate succession; (c) transfers or other distributions as a result of the operation of law, or pursuant to an order of a court (including a domestic violence order, divorce settlement, divorce decree or separation agreement) or regulatory agency; (d) transfers to any immediate family member of the undersigned, or any of its affiliates (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended), or any trust for the direct or indirect benefit of the undersigned or any of its affiliates, *provided* that any such transfer shall not involve a disposition for value; (e) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity, (i) transfers or other distributions to another corporation, partnership, limited liability company, trust or other business that is an affiliate of the undersigned, or to any investment fund or other entity controlling, controlled by, managing or managed by or under common control with the undersigned or affiliates of the undersigned, or (ii) transfers or other distributions to general or limited partners, managers, members, affiliates or shareholders of, or other holders of equity interests in, the undersigned; (f) transfers to the Company in connection with the vesting, settlement, or exercise of restricted stock units, options, warrants or other rights to purchase Common Shares, including for the payment of exercise price and tax withholding and remittance payments due as a result of the vesting, settlement, or exercise of such restricted stock units, options, warrants or rights, *provided* that any such Common Shares received upon such exercise, vesting or settlement shall be subject to the terms of this agreement, and provided further that any such restricted stock units, options, warrants or rights are held by the undersigned pursuant to an agreement or equity awards granted under a stock incentive plan or other equity award or other arrangement, each such agreement, plan or arrangement which is described in the Registration Statement, the Time of Sale Prospectus and the Prospectus; (g) distributions of Common Shares or any security convertible into or exercisable or exchangeable for Common Shares to limited partners or shareholders of the undersigned; *provided* that in the case of any transfer or distribution pursuant to clause (b), (c), (d), (e) or (g), (i) each donee or distributee shall sign and deliver a lock-up agreement substantially in the form of this agreement and (ii) no filing under Section 16(a) of the Exchange Act, reporting a reduction in beneficial ownership of Common Shares, shall be required or shall be voluntarily made during the Restricted Period (other than any Form 5 filing after the end of the calendar year in which such transaction occurs to the extent required during the Restricted Period), unless such filing indicates that such transfer was made in connection with a bona fide gift; (h) pursuant to a bona fide third-party tender offer, take-over bid, merger, amalgamation, consolidation or other similar transaction made to all holders of the Company's securities and approved by the board of directors involving a change of control of the Company (for purposes hereof, "change of control" shall mean the transfer (whether by tender offer, take-over bid, merger, amalgamation, consolidation or other similar transaction), in one transaction or a series of related transactions, to a person or group of affiliated persons, of shares of capital stock if, after such transaction, such person or group of affiliated persons would hold more than 50% of the outstanding voting securities of the Company (or the surviving entity)); *provided* that in the event that the tender offer, take-over bid, merger, amalgamation, consolidation or other such transaction is not completed, the undersigned's Common Shares shall remain subject to the terms of this agreement; (i) facilitating the establishment of a trading plan on behalf of a

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shareholder, officer or director of the Company pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Common Shares; *provided* that (i) such plan does not provide for the transfer of Common Shares during the Restricted Period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by or on behalf of the undersigned or the Company regarding the establishment of such plan during the Restricted Period, such announcement or filing shall include a statement to the effect that no transfer of Common Shares may be made under such plan during the Restricted Period; or (j) with the prior written consent of Morgan Stanley on behalf of the Underwriters. In addition, the undersigned agrees that, without the prior written consent of Morgan Stanley on behalf of the Underwriters, it will not, and it will not direct or permit its controlled affiliates to, during the Restricted Period, make any demand for or exercise any right with respect to, the registration of any Common Shares or any security convertible into or exercisable or exchangeable for Common Shares. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's Common Shares except in compliance with the foregoing restrictions.

In the event that a release is granted to any officer or director of the Company or any Major Holder (as defined below) other than the undersigned relating to the lock-up restrictions set forth above for Common Shares (a "**Discretionary Release**"), the same pro rata percentage of Common Shares held by the undersigned (the "**Pro-rata Release**") shall be immediately released from any remaining lock-up restrictions set forth herein, on the same terms and conditions and subject to the same restrictions applicable to such Discretionary Release; provided, however, that such Pro-rata Release shall not be applied in connection with any Discretionary Release (a) to the extent the number of Common Shares released pursuant to all such Discretionary Releases granted to all parties by Morgan Stanley constitute in the aggregate an amount less than or equal to one percent (1%) of the Company's total outstanding Common Shares (determined as of the closing date of the Public Offering for, and giving effect to, the Public Offering) and no releases are granted to any officer or director of the Company or to any shareholder subject to Section 16 reporting with respect to the Company under the Exchange Act; (b) granted in connection with any underwritten primary or secondary public offering (an "**Underwritten Sale**") of Common Shares during the Restricted Period; or (c) granted upon a determination by Morgan Stanley that a natural person who is a record or beneficial owner of any Common Shares or other securities should be granted an early Discretionary Release due to circumstances of an emergency or hardship. For purposes of this agreement, "Major Holder" means any shareholder that beneficially owns (as such term is used in Rule 13d-3 of the Exchange Act), as of immediately prior to the consummation of the Public Offering, more than one percent (1%) of the outstanding Common Shares, calculated on an as-converted, fully-diluted basis; *provided* that, for purposes of determining the beneficial ownership of a shareholder, all Common Shares beneficially owned by investment funds affiliated with such shareholder shall be aggregated.

If the undersigned is an officer or director of the Company, the undersigned further agrees that the foregoing restrictions shall be equally applicable to any issuer-directed Shares the undersigned may purchase in the Public Offering.

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If the undersigned is an officer or director of the Company, (i) Morgan Stanley agrees that, at least three business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Common Shares, Morgan Stanley will notify the Company of the impending release or waiver, and (ii) the Company has agreed in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver. Any release or waiver granted by Morgan Stanley hereunder to any such officer or director shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if (a) the release or waiver is effected solely to permit a transfer not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described in this agreement to the extent and for the duration that such terms remain in effect at the time of the transfer.

The undersigned acknowledges and agrees that the foregoing precludes the undersigned from engaging in any hedging, pledging or other transaction designed or intended, or which could reasonably be expected to lead to or result in, a sale or disposition of any Common Shares, or any securities convertible into or exercisable or exchangeable for Common Shares during the Restricted Period, even if any such sale or disposition transaction or transactions would be made or executed by or on behalf of someone other than the undersigned.

The undersigned understands that the Company and the Underwriters are relying upon this agreement in proceeding toward consummation of the Public Offering. The undersigned further understands that this agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives, successors and assigns.

The undersigned acknowledges and agrees that the Underwriters have not provided any recommendation or investment advice nor have the Underwriters solicited any action from the undersigned with respect to the Public Offering of the Shares and the undersigned acknowledges and agrees that it has been given the opportunity to consult its own legal, accounting, financial, regulatory and tax advisors to the extent deemed appropriate. The undersigned further acknowledges and agrees that, although the Underwriters may provide certain Regulation Best Interest and Form CRS disclosures or other related documentation to you in connection with the Public Offering, the Underwriters are not making a recommendation to the undersigned to participate in the Public Offering or sell any Shares at the price determined in the Public Offering, and nothing set forth in such disclosures or documentation is intended to suggest that any Underwriter is making such a recommendation. The undersigned further acknowledges and agrees that none of the Underwriters has made any recommendation or provided any investment or other advice to the undersigned with respect to this agreement or the subject matter hereof, and the undersigned acknowledges and agrees that it has been given the opportunity to consult its own legal, accounting, financial, regulatory, tax and other advisors with respect to this agreement and the subject matter hereof to the extent the undersigned has deemed appropriate.

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Whether or not the Public Offering actually occurs depends on a number of factors, including market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement, the terms of which are subject to negotiation between the Company and the Underwriters. This agreement shall automatically terminate and the undersigned shall automatically be released from all of his, her or its obligations hereunder upon the earliest of: (i) August 15, 2025, if the Public Offering shall not have occurred on or before that date (provided that the Company may, by written notice to the undersigned prior to such date, extend such for a period of up to three additional months), (ii) prior to the execution of the Underwriting Agreement by the parties thereto, the Company notifies Morgan Stanley in writing that it does not intend to proceed with the Public Offering, (iii) for any reason the Underwriting Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the Shares to be sold thereunder, or (iv) the registration statement related to the Public Offering is withdrawn.

This agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without regard to the conflict of laws principles thereof.

Very truly yours,

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| | | |
|:---|:---|:---|
| **IF AN INDIVIDUAL:** | **IF AN ENTITY:** | **IF AN ENTITY:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *(duly authorized signature)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *(please print complete name of entity)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *(please print complete name of entity)* |
| Name:<u> </u> | By: |  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *(duly authorized signature)* |
|  | Name: |  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *(please print full name)* |
|  | Title: |  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *(please print full title)* |
| Address: | Address: | Address: |
| Email: | Email: | Email: |

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**EXHIBIT B** 

**FORM OF WAIVER OF LOCK-UP** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**_____________, 20__** 

[Name and Address of

Officer or Director

Requesting Waiver]

Dear Mr./Ms. [Name]:

This letter is being delivered to Morgan Stanley & Co. LLC ("**Morgan Stanley**") in connection with the offering by Accelerant Holdings (the "**Company**") of _____ Class A common shares, $__ par value per share (the "**Common Shares**"), of the Company and the lock-up agreement dated ____, 20__ (the "**Lock-up Agreement**"), executed by you in connection with such offering, and your request for a [waiver] [release] dated ____, 20__, with respect to ____ Common Shares (the "**Shares**").

Morgan Stanley hereby agrees to [waive] [release] the transfer restrictions set forth in the Lock-up Agreement, but only with respect to the Shares, effective _____, 20__; provided, however, that such [waiver] [release] is conditioned on the Company announcing the impending [waiver] [release] by press release through a major news service at least two business days before effectiveness of such [waiver] [release]. This letter will serve as notice to the Company [and the Selling Shareholders] of the impending [waiver] [release].

Except as expressly [waived] [released] hereby, the Lock-up Agreement shall remain in full force and effect.

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| |
|:---|
| Very truly yours, |
| Morgan Stanley & Co. LLC |

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| | |
|:---|:---|
| Acting severally on behalf of themselves and the several Underwriters named in Schedule I hereto | Acting severally on behalf of themselves and the several Underwriters named in Schedule I hereto |
| By: |  |
|  | Name: |
|  | Title: |

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cc: Company

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**FORM OF PRESS RELEASE** 

Accelerant Holdings

_____, 2025

Accelerant Holdings (the "**Company**") announced today that Morgan Stanley & Co. LLC, the lead book-running manager in the Company's recent public sale of _____ Class A common shares is [waiving][releasing] a lock-up restriction with respect to ____ Class A common shares in the Company held by certain officers or directors of the Company. The [waiver][release] will take effect on ____, 2025, and the shares may be sold on or after such date.

**This press release is not an offer for sale of the securities in the United States or in any other jurisdiction where such offer is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended.**

## Exhibit 3.4

**Exhibit 3.4** 

**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED** 

**MEMORANDUM AND ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(ADOPTED BY SPECIAL RESOLUTION DATED** [**22 JULY 2025**] **AND EFFECTIVE ON** [\*]**)**

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**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED** 

**MEMORANDUM OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(ADOPTED BY SPECIAL RESOLUTION DATED 22 JULY 2025 AND EFFECTIVE ON** [\*]**)**

1 The name of the Company is Accelerant Holdings.

2 The Registered Office of the Company shall be at the offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place as the Directors may decide.

3 The objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by the laws of the Cayman Islands.

4 Subject to the following provisions of this Memorandum, the Company shall have and be capable of exercising all the functions of a natural person of full capacity irrespective of any question of corporate benefit, as provided by Section 27(2) of the Companies Act.

5 Nothing in this Memorandum shall permit the Company to carry on a business for which a licence is required under the laws of the Cayman Islands unless duly licensed.

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| | |
|:---|:---|
| 6 | The Company shall not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the Company carried on outside the Cayman Islands; provided that nothing in this clause shall be construed as to prevent the Company effecting and concluding contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands.  |

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| | |
|:---|:---|
| 7 | The liability of each Member is limited to the amount unpaid on such Member's shares.  |

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| | |
|:---|:---|
| 8 | The authorised share capital of the Company is US$956.14896 divided into 500,000,000 Class A common shares of a par value of US$0.0000011951862 per share and 140,000,000 Class B common shares of a par value of US$0.0000011951862 per share and 100,000,000 preference shares of a par value of US$0.0000011951862 per share.  |

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9 The Company has the power to register by way of continuation as a body corporate limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

10 Capitalised terms that are not defined in this Amended and Restated Memorandum of Association bear the same meaning as those given in the Amended and Restated Articles of Association of the Company.

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**THE COMPANIES ACT (AS REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED** 

**ARTICLES OF ASSOCIATION** 

**OF** 

**ACCELERANT HOLDINGS** 

**(ADOPTED BY SPECIAL RESOLUTION DATED 22 JULY 2025 AND EFFECTIVE ON** [\*]**)**

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| | |
|:---|:---|
| **1** | **Interpretation**  |

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1.1 In the Articles Table A in the First Schedule to the Statute does not apply and, unless there is something in
the subject or context inconsistent therewith:

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| | |
|:---|:---|
| **"Affiliate"** | means (i) in the case of a natural person, such person's parents, parents-in-law, spouse, children or grandchildren, a trust for the benefit of any of the foregoing, a company, partnership or any natural person or entity wholly or jointly owned by such person or any of the foregoing, and (ii) in the case of a corporation, partnership or other entity or any natural person or entity which directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity. The term "control" shall mean the ownership, directly or indirectly, of shares possessing more than fifty per cent (50%) of the voting power of the corporation, or the partnership or other entity (other than, in the case of a corporation, shares having such power only by reason of the happening of a contingency), or having the power to control the management or elect a majority of members to the board of directors or equivalent decision-making body of such corporation, partnership or other entity. |
| **"Altamont Entities"** | means Altamont Capital Partners and any Affiliate thereof. |

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| | |
|:---|:---|
| **"Applicable Law"** | means, with respect to any person, all provisions of laws, statutes, ordinances, rules, regulations, permits, certificates, judgments, decisions, decrees or orders of any governmental authority applicable to such person. |
| **"Articles"** | means the Amended and Restated Articles of Association of the Company, as from time to time altered or added to in accordance with the Statute and the Articles. |
| **"Audit Committee"** | means the audit committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |
| **"Auditor"** | means the person for the time being performing the duties of auditor of the Company (if any). |
| **"Business Day"** | means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorised or obligated by law to close in New York City. |
| **"Class A Common Shares"** | class A common shares in the capital of the Company having the rights provided for in these Articles; |
| **"Class B Common Shares"** | class B common shares in the capital of the Company having the rights provided for in these Articles; |
| **"Clearing House"** | means a clearing house recognised by the laws of the jurisdiction in which the Shares (or depositary receipts therefor) are listed or quoted on a stock exchange or interdealer quotation system in such jurisdiction. |
| **"Common Shares"** | Class A Common Shares, Class B Common Shares and shares of such other classes as may from time to time be designated by the Directors pursuant to these Articles as being common shares for the purposes of Article 4.2; |
| **"Company"** | means the above named company. |
| **"Company's Website"** | means the website of the Company, the address or domain name of which has been notified to Members. |
| **"Compensation Committee"** | means the compensation committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |

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| | |
|:---|:---|
| **"Controlled Company"** | has the meaning given to it in the rules of the Designated Stock Exchange. |
| **"Designated Stock Exchange"** | means any United States national securities exchange on which the securities of the Company are listed for trading, including the New York Stock Exchange. |
| **"Directors"** | means the directors for the time being of the Company. |
| **"Dividend"** | means any dividend (whether interim or final) resolved to be paid on shares pursuant to the Articles. |
| **"electronic communication"** | means a communication sent by electronic means, including electronic posting to the Company's Website, transmission to any number, address or internet website (including the website of the Securities and Exchange Commission) or other electronic delivery methods as otherwise decided and approved by the Directors. |
| **"electronic record"** | has the same meaning as in the Electronic Transactions Act. |
| **"Electronic Transactions Act"** | means the Electronic Transactions Act (As Revised) of the Cayman Islands. |
| **"Exchange Act"** | means the United States Securities Exchange Act of 1934, as amended, or any similar federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. |
| **"Independent Director"** | has the same meaning as in the rules and regulations of the Designated Stock Exchange or in Rule 10A-3 under the Exchange Act, as the case may be. |
| **"IPO"** | means the Company's initial public offering of securities. |
| **"Member"** | has the same meaning as in the Statute. |
| **"Memorandum of Association"** | means the amended and restated memorandum of association of the Company. |

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| | |
|:---|:---|
| **"Nominating and Corporate Governance Committee"** | means the nominating and corporate governance committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. |
| **"Officer"** | means a person appointed to hold an office in the Company. |
| **"Ordinary Resolution"** | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. |
| **"Preference Share"** | means a preference share in the share capital of the Company designated as preference share, and having the rights provided for in the Articles. |
| **"Register of Members"** | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. |
| **"Registered Office"** | means the registered office for the time being of the Company. |
| **"Representative"** | means a representative of the Underwriters. |
| **"Seal"** | means the common seal of the Company and includes every duplicate seal. |
| **"Securities and Exchange Commission"** | means the United States Securities and Exchange Commission. |
| **"Securities Act"** | means the Securities Act of 1933 of the United States of America, as amended, or any similar federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. |
| **"Share"** | means any share in the capital of the Company, including the Common Shares, Preference Shares and shares of other classes. |

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| | |
|:---|:---|
| **"signed"** | means a signature or representation of a signature affixed by mechanical means or an electronic symbol or process attached to or logically associated with an electronic communication and executed or adopted by a person with the intent to sign the electronic communication. |
| **"Special Resolution"** | has the same meaning as in the Statute, and includes a unanimous written resolution. |
| **"Statute"** | means the Companies Act (As Revised) of the Cayman Islands. |
| **"Treasury Share"** | means a share held in the name of the Company as a treasury share in accordance with the Statute. |
| **"Underwriter"** | means an underwriter of the IPO from time to time and any successor underwriter. |
| **"Voting Power Threshold"** | means ownership or control, or deemed ownership or control, of more than 9.9% of the aggregate voting power exercisable at a general meeting of the Company. |

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In the Articles, save where the context requires otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number include the plural number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the masculine gender include the feminine gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing persons include corporations as well as any other legal or natural person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "written" and "in writing" include all modes of representing or reproducing words in
visible form, including in the form of an electronic record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "shall" shall be construed as imperative and "may" shall be construed as permissive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) references to provisions of any law or regulation shall be construed as references to those provisions as
amended, modified, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any phrase introduced by the terms "including", "include", "in particular" or any
similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the term "and/or" is used to mean both "and" as well as "or." The use of
"and/or" in certain contexts in no respects qualifies or modifies the use of the terms "and" or "or" in others. The term "or" shall not be interpreted to be exclusive and the term "and" shall not be
interpreted to require the conjunctive (in each case, unless the context otherwise requires);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) headings are inserted for reference only and shall be ignored in construing the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any requirements as to delivery under the Articles include delivery in the form of an electronic record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any requirements as to execution or signature under the Articles including the execution of the Articles
themselves can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) sections 8 and 19(3) of the Electronic Transactions Act shall not apply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the term "clear days" in relation to the period of a notice means that period excluding the day when
the notice is received or deemed to be received and the day for which it is given or on which it is to take effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the term "holder" in relation to a Share means a person whose name is entered in the Register of
Members as the holder of such Share.

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| | |
|:---|:---|
| **2** | **Formation Expenses**  |

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The Directors may pay, out of the capital or any other monies of the Company, all expenses incurred in or about the formation and establishment of the Company including the expenses of registration.

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| | |
|:---|:---|
| **3** | **Issue of Shares and other Securities**  |

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3.1 Subject to the provisions, if any, in the Memorandum (and to any direction that may be given by the Company in
general meeting), Articles 3.6 and 3.7 and, where applicable, the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, and
without prejudice to any rights attached to any existing Shares, the Directors may, in their absolute discretion and without approval of the holders of Common Shares, allot, issue, grant options over or otherwise dispose of Shares (including
fractions of a Share) with or without preferred, deferred or other rights or restrictions, whether in regard to Dividends or other distributions, voting, return of capital or otherwise, any or all of which may be greater than the powers and rights
associated with the Common Shares, to such persons, at such times and on such other terms as they think proper, which shall be conclusively evidenced by their approval of the terms thereof, and may also (subject to the Statute and the Articles) vary
such rights.

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3.2 In particular and without prejudice to the generality of Article 3.1, the Directors are hereby empowered
to authorise by resolution or resolutions from time to time and without the approval of Members to re-designate authorised but unissued Class B Common Shares from time to time as authorised shares of another class.

3.4 The Company shall not issue Shares in bearer form and shall only issue Shares as fully paid.

3.5 Notwithstanding Article 3.1, at any time when there are Class A Common Shares in issue, Class B
Common Shares may only be issued to a Permitted Holder and solely (i) as contemplated in Articles 4.7 or 40; or (ii) pursuant to a Business Combination involving the issuance of Class B Common Shares as full or partial consideration.

3.6 Directors shall at all times reserve a number of authorised but unissued Class A Common Shares as to
permit the conversion from time to time of all of the then-outstanding Class B Common Shares pursuant to Article 4.4.

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| | |
|:---|:---|
| **4** | **Class A Common Shares and Class B Common Shares**  |

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4.1 Holders of Class A Common Shares and Class B Common Shares have the right to receive notice of,
attend, speak and vote at general meetings of the Company. Holders of Class A Common Shares and Class B Common Shares shall at all times vote together as one class on all resolutions submitted to a vote by the Members in general meetings.
Each Class A Common Share shall entitle the holder to one (1) vote on all matters subject to a vote at general meetings of the Company, and each Class B Common Share shall entitle the holder to ten votes on all matters subject to a
vote at general meetings of the Company, provided that where the voting power of any holder of Class A or Class B Common Shares other than the Altamont Entities would otherwise exceed (i.e., but for this Article 4.1) the Voting Power
Threshold for any matter, the voting rights of the Class A or Class B Common Shares owned or controlled by such holder shall be ratably reduced so as not to exceed Voting Power Threshold in respect of any vote on such matter.

4.2 Without prejudice to any special rights conferred thereby on the holders of any other shares or class of shares
established pursuant to the Memorandum and/or these Articles from time to time, holders of Common Shares shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be entitled to such dividends as the Directors may from time to time declare;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the event of a winding-up or dissolution of the Company, whether
voluntary or involuntary or for the purposes of a reorganisation or otherwise or upon any distribution of capital, be entitled to the surplus assets of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) generally be entitled to enjoy all of the rights attaching to shares.

4.3 In no event shall Class A Common Shares be convertible into Class B Common Shares.

4.4 Class B Common Shares shall be convertible into Class A Common Shares as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  ***Right of Conversion*** . Class B Common Shares shall be convertible into the same number of
Class A Common Shares, on a share-to-share basis, in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a holder of Class B Common Shares has the right to call upon the Company to effect a conversion of all or
any of their Class B Common Shares which right shall be exercised, at any time after issue and without payment of any additional sum, by notice in writing given to the Company (and which conversion shall be effected by the Company promptly upon
delivery of the said notice);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a Class B Common Share shall automatically convert into a Class A Common Share immediately and
without further action by the holder upon the registration of any transfer of a Class B Common Share (whether or not for value and whether or not the certificate(s) (if any) representing such Class B Common Share are surrendered to the
Company) in the Register of Members, other than the following permitted transfers ()"**Permitted Transfer**" and the transferee, a "**Permitted Transferee** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a transfer (i) to the holder of Class B Common Shares, and/or (ii) to an Affiliate of a holder
of the Class B Common Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a transfer to one or more trustees of a trust established for the benefit of the holder or an Affiliate of the
holder of the Class B Common Share;

For the avoidance of doubt, the creation of any pledge, charge, encumbrance or other security interest or third party right of whatever description on any Class B Common Shares to secure a holder's contractual or legal obligations shall not be deemed to be a transfer unless and until any such pledge, charge, encumbrance or other third party right is enforced and results in such third party (or its nominee) holding legal title to the related Class B Common Shares, in which case all the related Class B Common Shares shall be automatically and immediately converted into the same number of Class A Common Shares; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if at any time following the consummation of the IPO, the holders of the Class B Common Shares immediately
prior to the consummation of the IPO hold less than 50% of the total Class B Common Shares then outstanding, the Class B Common Shares then in issue shall automatically and immediately convert into Class A Common Shares and no
Class B Common Shares shall be issued by the Company thereafter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if on the date which is the third anniversary of the consummation of the IPO there are any Class B Common
Shares in issue, all of the Class B Common Shares then in issue shall automatically and immediately convert into Class A Common Shares and no Class B Common Shares shall be issued by the Company thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)  ***Mechanics of Conversion*** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Before any holder of Class B Common Shares shall be entitled to convert such Class B Common Shares
into Class A Common Shares pursuant to sub-paragraph 4.4(a) (1) above, the holder shall, if available, surrender the certificate or certificates therefor (if any), duly endorsed (where applicable),
at the registered office of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Upon the occurrence of one of the bases of conversion provided for in paragraph 4.4(a) above, the Company shall
enter or procure the entry of the name of the relevant holder of Class B Common Shares as the holder of the relevant number of Class A Common Shares resulting from the conversion of the Class B Common Shares in, and make any other
necessary and consequential changes to, the Register of Members and shall procure that certificate(s) in respect of the relevant Class A Common Shares, together with a new certificate for any unconverted Class B Common Shares comprised in
the certificate(s) surrendered by the holder of the Class B Common Shares, are issued to the holders of the Class A Common Shares and Class B Common Shares, as the case may be, if so requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any conversion of Class B Common Shares into Class A Common Shares pursuant to this Article 4 shall
be effected by means of the compulsory redemption without notice of Class B Common Shares of a holder and, on behalf of such holder, automatic application of such redemption proceeds in paying for such new Class A Common Shares into which
the Class B Common Shares have been converted or exchanged at a price per Class B Common Share necessary to give effect to a conversion or exchange calculated on the basis that the Class A Common Shares to be issued as part of the
conversion or exchange will be issued at par.

4.5 No subdivision of Class A Common Shares into shares of an amount smaller than the nominal or par value of
such shares at the relevant time shall be effected unless Class B Common Shares are concurrently and similarly subdivided in the same proportion and the same manner, and no subdivision of Class B Common Shares into shares of an amount
smaller than the nominal or par value of such shares at the relevant time shall be effected unless Class A Common Shares are concurrently and similarly subdivided in the same proportion and the same manner.

4.6 No consolidation of Class A Common Shares into shares of an amount larger than the nominal or par value of
such shares at the relevant time shall be effected unless Class B Common Shares are concurrently and similarly consolidated in the same proportion and the same manner, and no consolidation of Class B Common Shares into shares of an amount
larger than the nominal or par value of such shares at the relevant time may be effected unless Class A Common Shares are concurrently and similarly consolidated in the same proportion and the same manner.

4.7 In the event that a dividend or other distribution is paid by the issue of Class A Common Shares or
Class B Common Shares or rights to acquire Class A Common Shares or Class B Common Shares (i) holders of Class A Common Shares shall receive Class A Common Shares or rights to acquire Class A Common Shares, as the
case may be; and (ii) holders of Class B Common Shares shall receive Class B Common Shares or rights to acquire Class B Common Shares, as the case may be.

4.8 Save and except for voting rights and conversion rights and as otherwise set out in this Article 4,
Class A Common Shares and the Class B Common Shares shall rank pari passu and shall have the same rights, preferences, privileges and restrictions and share ratably and otherwise be identical in all respects as to all matters.

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| | |
|:---|:---|
| **5** | **Preference Shares**  |

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5.1 Preference Shares may be issued from time to time in one or more series, each of such series to have such
voting powers (full or limited or without voting powers), designations, preferences and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof as are stated and expressed, or in any
resolution or resolutions providing for the issue of such series adopted by the Directors as hereinafter provided.

5.2 Authority is hereby granted to the Directors, subject to the provisions of the Memorandum, the Articles and
applicable law, to create one or more series of Preference Shares and, with respect to each such series, to fix by resolution or resolutions, without any further vote or action by the Members of the Company providing for the issue of such series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of Preference Shares to constitute such series and the distinctive designation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the dividend rate on the Preference Shares of such series, the dividend payment dates, the periods in respect
of which dividends are payable ()"**Dividend Periods** "), whether such dividends shall be cumulative and, if cumulative, the date or dates from which dividends shall accumulate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) whether the Preference Shares of such series shall be convertible into, or exchangeable for, Shares of any
other class or classes or any other series of the same or any other class or classes of Shares and the conversion price or prices or rate or rates, or the rate or rates at which such exchange may be made, with such adjustments, if any, as shall be
stated and expressed or provided in such resolution or resolutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the preferences, if any, and the amounts thereof, which the Preference Shares of such series shall be entitled
to receive upon the winding up of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the voting power, if any, of the Preference Shares of such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) transfer restrictions and rights of first refusal with respect to the Preference Shares of such series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) such other terms, conditions, special rights and provisions as may seem advisable to the Directors.

5.3 Notwithstanding the fixing of the number of Preference Shares constituting a particular series upon the
issuance thereof, the Directors at any time thereafter may authorise the issuance of additional Preference Shares of the same series subject always to the Statute and the Memorandum of Association.

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5.4 No dividend shall be declared and set apart for payment on any series of Preference Shares in respect of any
Dividend Period unless there shall likewise be or have been paid, or declared and set apart for payment, on all Preference Shares of each other series entitled to cumulative dividends at the time outstanding which rank senior or equally as to
dividends with the series in question, dividends rateably in accordance with the sums which would be payable on the said Preference Shares through the end of the last preceding Dividend Period if all dividends were declared and paid in full.

5.5 If, upon the winding up of the Company, the assets of the Company distributable among the holders of any one or
more series of Preference Shares which (a) are entitled to a preference over the holders of the Common Shares upon such winding up; and (b) rank equally in connection with any such distribution, shall be insufficient to pay in full the
preferential amount to which the holders of such Preference Shares shall be entitled, then such assets, or the proceeds thereof, shall be distributed among the holders of each such series of the Preference Shares rateably in accordance with the sums
which would be payable on such distribution if all sums payable were discharged in full.

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| | |
|:---|:---|
| **6** | **Register of Members**  |

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6.1 The Company shall maintain or cause to be maintained the Register of Members in accordance with the Statute,
provided that for so long as the securities of the Company are listed for trading on the Designated Stock Exchange, title to such securities may be evidenced and transferred in accordance with the laws applicable to and the rules and regulations of
the Designated Stock Exchange.

6.2 The Directors may determine that the Company shall maintain one or more branch registers of Members in
accordance with the Statute. The Directors may also determine which register of Members shall constitute the principal register and which shall constitute the branch register or registers, and to vary such determination from time to time.

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| | |
|:---|:---|
| **7** | **Closing Register of Members or Fixing Record Date**  |

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7.1 For the purpose of determining Members entitled to notice of, or to vote at any meeting of Members or any
adjournment thereof, or Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose, the Directors may, after notice has been given by advertisement in an appointed
newspaper or any other newspaper or by any other means in accordance with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under
Applicable Law, provide that the Register of Members shall be closed for transfers for a stated period which shall not in any case exceed forty days.

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7.2 In lieu of, or apart from, closing the Register of Members, the Directors may fix in advance or arrears a date
as the record date for any such determination of Members entitled to notice of, or to vote at any meeting of the Members or any adjournment thereof, or for the purpose of determining the Members entitled to receive payment of any Dividend or other
distribution, or in order to make a determination of Members for any other purpose.

7.3 If the Register of Members is not so closed and no record date is fixed for the determination of Members
entitled to notice of, or to vote at, a meeting of Members or Members entitled to receive payment of a Dividend or other distribution, the date on which notice of the meeting is sent or the date on which the resolution of the Directors resolving to
pay such Dividend or other distribution is passed, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Article,
such determination shall apply to any adjournment thereof.

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|:---|:---|
| **8** | **Certificates for Shares**  |

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8.1 A Member shall only be entitled to a share certificate if the Directors resolve that share certificates shall
be issued. Share certificates representing Shares, if any, shall be in such form as the Directors may determine. Share certificates shall be signed by one or more Directors or other persons authorised by the Directors. The Directors may authorise
certificates to be issued with the authorised signature(s) affixed by mechanical process. All certificates for Shares shall be consecutively numbered or otherwise identified and shall specify the Shares to which they relate. All certificates
surrendered to the Company for transfer shall be cancelled and, subject to the Articles, no new certificate shall be issued until the former certificate representing a like number of relevant Shares shall have been surrendered and cancelled.

8.2 The Company shall not be bound to issue more than one certificate for Shares held jointly by more than one
person and delivery of a certificate to one joint holder shall be a sufficient delivery to all of them.

8.3 If a share certificate is defaced, worn out, lost or destroyed, it may be renewed on such terms (if any) as to
evidence and indemnity and on the payment of such expenses reasonably incurred by the Company in investigating evidence, as the Directors may prescribe, and (in the case of defacement or wearing out) upon delivery of the old certificate.

8.4 Every share certificate sent in accordance with the Articles will be sent at the risk of the Member or other
person entitled to the certificate. The Company will not be responsible for any share certificate lost or delayed in the course of delivery.

8.5 Share certificates shall be issued within the relevant time limit as prescribed by the Statute, if applicable,
or as the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law may from time to time determine, whichever is shorter, after
the allotment or, except in the case of a Share transfer which the Company is for the time being entitled to refuse to register and does not register, after lodgement of a Share transfer with the Company.

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| | |
|:---|:---|
| **9** | **Transfer of Shares**  |

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9.1 Subject to the terms of the Articles, any Member may transfer all or any of their Shares by an instrument of
transfer provided that such transfer complies with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. If the Shares in
question were issued in conjunction with rights, options or warrants issued pursuant to the Articles on terms that one cannot be transferred without the other, the Directors shall refuse to register the transfer of any such Share without evidence
satisfactory to them of the like transfer of such option or warrant.

9.2 The instrument of transfer of any Share shall be in writing in the usual or common form or in a form prescribed
by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law or in any other form approved by the Directors and shall be
executed by or on behalf of the transferor (and if the Directors so require, signed by or on behalf of the transferee) and may be under hand or, if the transferor or transferee is a Clearing House or its nominee(s), by hand or by machine imprinted
signature or by such other manner of execution as the Directors may approve from time to time. The transferor shall be deemed to remain the holder of a Share until the name of the transferee is entered in the Register of Members.

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| | |
|:---|:---|
| **10** | **Redemption, Repurchase and Surrender of Shares, Treasury Shares**  |

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10.1 Subject to the provisions, if any, in the Articles, the Memorandum, applicable law, including the Statute, and
the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, the Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue Shares on terms that they are to be redeemed or are liable to be redeemed at the option of the Company or
the Member on such terms and in such manner as the Directors may, before the issue of such Shares, determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase its own Shares (including any redeemable Shares) in such manner and on such other terms as the
Directors may agree with the relevant Member, provided that the manner of purchase is in accordance with any applicable requirements imposed from time to time by the Designated Stock Exchange, the Securities and Exchange Commission and/or any other
competent regulatory authority or otherwise under Applicable Law;

10.2 For the avoidance of doubt, redemptions, repurchases and surrenders of Shares in the circumstances described in
the Article above shall not require further approval of the Members.

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10.3 The Company may make a payment in respect of the redemption or purchase of its own Shares in any manner
permitted by the Statute, including out of capital.

10.4 The Directors may accept the surrender for no consideration of any fully paid Share.

10.5 The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall
be held as a Treasury Share.

10.6 The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think
proper (including, without limitation, for nil consideration).

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| | |
|:---|:---|
| **11** | **Variation of Rights of Shares**  |

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11.1 Subject to Article 3.1, if at any time the share capital of the Company is divided into different classes of
Shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued Shares
of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two thirds of the
issued Shares of that class, or with the sanction of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting of the holders of the Shares of that class. For the avoidance of doubt, the Directors reserve
the right, notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of Shares of the relevant class. To any such meeting all the provisions of the Articles relating to general meetings shall
apply *mutatis mutandis*, except that the necessary quorum shall be one person holding or representing by proxy at least the majority of the issued Shares of the class and that any holder of Shares of the class present in person or by proxy may
demand a poll.

11.2 For the purposes of a separate class meeting, the Directors may treat two or more or all the classes of Shares
as forming one class of Shares if the Directors consider that such class of Shares would be affected in the same way by the proposals under consideration, but in any other case shall treat them as separate classes of Shares.

11.3 The rights conferred upon the holders of the Shares of any class issued with preferred or other rights shall
not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking in priority to or pari passu therewith.

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| | |
|:---|:---|
| **12** | **Commission on Sale of Shares**  |

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The Company may, in so far as the Statute permits, pay a commission to any person in consideration of that person subscribing or agreeing to subscribe (whether absolutely or conditionally) or procuring or agreeing to procure subscriptions (whether absolutely or conditionally) for any Shares. Such commissions may be satisfied by the payment of cash and/or the issue of fully or partly paid-up Shares. The Company may also on any issue of Shares pay such brokerage as may be lawful.

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| | |
|:---|:---|
| **13** | **Non Recognition of Trusts**  |

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The Company shall not be bound by or compelled to recognise in any way (even when notified) any equitable, contingent, future or partial interest in any Share, or (except only as is otherwise provided by the Articles or the Statute) any other rights in respect of any Share other than an absolute right to the entirety thereof in the holder.

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| | |
|:---|:---|
| **14** | **Lien on Shares**  |

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14.1 The Company shall have a first and paramount lien on all Shares (whether fully paid-up or not) registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities or engagements to or with the Company (whether presently payable or not) by such Member or
their estate, either alone or jointly with any other person, whether a Member or not, but the Directors may at any time declare any Share to be wholly or in part exempt from the provisions of this Article. The registration of a transfer of any such
Share shall operate as a waiver of the Company's lien thereon. The Company's lien on a Share shall also extend to any amount payable in respect of that Share.

14.2 The Company may sell, in such manner as the Directors think fit, any Shares on which the Company has a lien, if
a sum in respect of which the lien exists is presently payable, and is not paid within 14 clear days after notice has been received or deemed to have been received by the holder of the Shares, or to the person entitled to it in consequence of the
death or bankruptcy of the holder, demanding payment and stating that if the notice is not complied with the Shares may be sold.

14.3 To give effect to any such sale the Directors may authorise any person to execute an instrument of transfer of
the Shares sold to, or in accordance with the directions of, the purchaser. The purchaser or their nominee shall be registered as the holder of the Shares comprised in any such transfer, and they shall not be bound to see to the application of the
purchase money, nor shall their title to the Shares be affected by any irregularity or invalidity in the sale or the exercise of the Company's power of sale under the Articles.

14.4 The net proceeds of such sale after payment of costs, shall be applied in payment of such part of the amount in
respect of which the lien exists as is presently payable and any balance shall (subject to a like lien for sums not presently payable as existed upon the Shares before the sale) be paid to the person entitled to the Shares at the date of the sale.

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| | |
|:---|:---|
| **15** | **Call on Shares**  |

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15.1 Subject to the terms of the allotment and issue of any Shares, the Directors may make calls upon the Members in
respect of any monies unpaid on their Shares (whether in respect of par value or premium), and each Member shall (subject to receiving at least 14 clear days' notice specifying the time or times of payment) pay to the Company at the time or
times so specified the amount called on the Shares. A call may be revoked or postponed, in whole or in part, as the Directors may determine. A call may be required to be paid by instalments. A person upon whom a call is made shall remain liable for
calls made upon them notwithstanding the subsequent transfer of the Shares in respect of which the call was made.

15.2 A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call
was passed.

15.3 The joint holders of a Share shall be jointly and severally liable to pay all calls in respect thereof.

15.4 If a call remains unpaid after it has become due and payable, the person from whom it is due shall pay interest
on the amount unpaid from the day it became due and payable until it is paid at such rate as the Directors may determine (and in addition all expenses that have been incurred by the Company by reason of such non-payment), but the Directors may waive payment of the interest or expenses wholly or in part.

15.5 An amount payable in respect of a Share on issue or allotment or at any fixed date, whether on account of the
par value of the Share or premium or otherwise, shall be deemed to be a call and if it is not paid all the provisions of the Articles shall apply as if that amount had become due and payable by virtue of a call.

15.6 The Directors may issue Shares with different terms as to the amount and times of payment of calls, or the
interest to be paid.

15.7 The Directors may, if they think fit, receive an amount from any Member willing to advance all or any part of
the monies uncalled and unpaid upon any Shares held by that Member, and may (until the amount would otherwise become payable) pay interest at such rate as may be agreed upon between the Directors and the Member paying such amount in advance.

15.8 No such amount paid in advance of calls shall entitle the Member paying such amount to any portion of a
Dividend or other distribution payable in respect of any period prior to the date upon which such amount would, but for such payment, become payable.

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| | |
|:---|:---|
| **16** | **Forfeiture of Shares**  |

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16.1 If a call or instalment of a call remains unpaid after it has become due and payable the Directors may give to
the person from whom it is due not less than 14 clear days' notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non-payment. The notice shall specify where payment is to be made and shall state that if the notice is not complied with the Shares in respect of which the call was made will be liable to be forfeited.

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16.2 If the notice is not complied with, any Share in respect of which it was given may, before the payment required
by the notice has been made, be forfeited by a resolution of the Directors. Such forfeiture shall include all Dividends, other distributions or other monies payable in respect of the forfeited Share and not paid before the forfeiture.

16.3 A forfeited Share may be sold, re-allotted or otherwise disposed of on
such terms and in such manner as the Directors think fit and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the
purposes of its disposal a forfeited Share is to be transferred to any person the Directors may authorise some person to execute an instrument of transfer of the Share in favour of that person.

16.4 A person any of whose Shares have been forfeited shall cease to be a Member in respect of them and shall
surrender to the Company for cancellation the certificate for the Shares forfeited and shall remain liable to pay to the Company all monies which at the date of forfeiture were payable by that person to the Company in respect of those Shares
together with interest at such rate as the Directors may determine, but that person's liability shall cease if and when the Company shall have received payment in full of all monies due and payable by them in respect of those Shares.

16.5 A certificate in writing under the hand of one Director or Officer that a Share has been forfeited on a
specified date shall be conclusive evidence of the facts stated in it as against all persons claiming to be entitled to the Share. The certificate shall (subject to the execution of an instrument of transfer) constitute a good title to the Share and
the person to whom the Share is sold or otherwise disposed of shall not be bound to see to the application of the purchase money, if any, nor shall their title to the Share be affected by any irregularity or invalidity in the proceedings in
reference to the forfeiture, sale or disposal of the Share.

16.6 The provisions of the Articles as to forfeiture shall apply in the case of non payment of any sum which, by the
terms of issue of a Share, becomes payable at a fixed time, whether on account of the par value of the Share or by way of premium as if it had been payable by virtue of a call duly made and notified.

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| | |
|:---|:---|
| **17** | **Transmission of Shares**  |

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17.1 If a Member dies, the survivor or survivors (where they were a joint holder) or their legal personal
representatives (where they were a sole holder), shall be the only persons recognised by the Company as having any title to the deceased Member's Shares. The estate of a deceased Member is not thereby released from any liability in respect of
any Share, for which that Member was a joint or sole holder.

17.2 Any person becoming entitled to a Share in consequence of the death or bankruptcy, liquidation or dissolution
of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by that person to the Company, either to become the holder of such Share or to have
some person nominated by them registered as the holder of such Share. If they elect to have another person registered as the holder of such Share they shall sign an instrument of transfer of that Share to that person. The Directors shall, in either
case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before their death or bankruptcy, liquidation or dissolution, as the case may be.

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17.3 A person becoming entitled to a Share by reason of the death or bankruptcy or liquidation or dissolution of a
Member (or in any other case than by transfer) shall be entitled to the same Dividends, other distributions and other advantages to which they would be entitled if they were the holder of such Share. However, they shall not, before becoming a Member
in respect of a Share, be entitled in respect of it to exercise any right conferred by membership in relation to general meetings of the Company and the Directors may at any time give notice requiring any such person to elect either to be registered
or to have some person nominated by them be registered as the holder of the Share (but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the
relevant Member before their death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within 90 days of being received or deemed to be received (as determined
pursuant to the Articles) the Directors may thereafter withhold payment of all Dividends, other distributions, bonuses or other monies payable in respect of the Share until the requirements of the notice have been complied with.

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| | |
|:---|:---|
| **18** | **Alteration of Capital**  |

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18.1 The Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its share capital by such sum as the Ordinary Resolution shall prescribe and with such rights,
priorities and privileges annexed thereto, as the Company in general meeting may determine, provided that no increase in the authorised number of Class B Common Shares shall be effective without an Ordinary Resolution of the holders of the majority
of the Class A Common Shares voting as a separate class, unless such increase in the authorised number of Class B Common Shares is required in connection with the consummation of a Business Combination involving the issuance of Class B Common Shares
to one or more Permitted Holders as full or partial consideration, in which case no separate Ordinary Resolution of the holders of the majority of the Class A Common Shares voting as a separate class shall be required to such increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of larger amount than its existing Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of its paid-up Shares into stock, and reconvert that
stock into paid-up Shares of any denomination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by subdivision of its existing Shares or any of them divide the whole or any part of its share capital into
Shares of smaller amount than is fixed by the Memorandum or into Shares without par value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel any Shares that at the date of the passing of the Ordinary Resolution have not been taken or agreed to
be taken by any person and diminish the amount of its share capital by the amount of the Shares so cancelled.

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18.2 All new Shares created in accordance with the provisions of the preceding Article shall be subject to the same
provisions of the Articles with reference to the payment of calls, liens, transfer, transmission, forfeiture and otherwise as the Shares in the original share capital.

18.3 Subject to the provisions of the Statute and the provisions of the Articles as regards the matters to be dealt
with by Ordinary Resolution, the Company may by Special Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) change its name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) alter or add to the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) alter or add to the Memorandum with respect to any objects, powers or other matters specified therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reduce its share capital or any capital redemption reserve fund.

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|:---|:---|
| **19** | **Offices and Places of Business**  |

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Subject to the provisions of the Statute, the Company may by resolution of the Directors change the location of its Registered Office. The Company may, in addition to its Registered Office, maintain such other offices or places of business as the Directors determine.

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|:---|:---|
| **20** | **General Meetings**  |

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20.1 All general meetings of the Company other than annual general meetings shall be called extraordinary general
meetings.

20.2 For so long as the Company's securities are traded on a Designated Stock Exchange, the Company shall in
each year hold a general meeting as its annual general meeting at such time and place as may be determined by the Directors.

20.3 Extraordinary general meetings may be called by a majority of the Directors or by the chairperson of the board
of Directors. If an extraordinary general meeting is called by the Directors, such extraordinary general meeting shall be held at such time and place as may be determined by the Directors, and if an extraordinary general meeting is called by the
chairperson of the board of Directors, such extraordinary general meeting shall be held at such time and place as may be determined by the chairperson of the board of Directors.

20.4 A person may participate at a general meeting by conference telephone or other communications equipment by
means of which all the persons participating in the meeting can communicate with each other. Participation by a person in a general meeting in this manner is treated as presence in person at that meeting.

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|:---|:---|
| **21** | **Notice of General Meetings**  |

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21.1 At least ten clear days' notice shall be given of any general meeting. Every notice shall specify the
place, the day and the hour of the meeting and the general nature of the business to be conducted at the general meeting and shall be given in the manner hereinafter mentioned or in such other manner if any as may be prescribed by the Company,
provided that a general meeting of the Company shall, whether or not the notice specified in this Article has been given and whether or not the provisions of the Articles regarding general meetings have been complied with, be deemed to have been
duly convened if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual general meeting, by all the Members (or their proxies) entitled to attend and vote
thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an extraordinary general meeting, by the Members (or their proxies) having a right to attend and
vote at the meeting, together holding not less than a majority of the Shares giving that right.

21.2 The notice convening an annual general meeting shall specify the meeting as such, and the notice convening a
meeting to pass a Special Resolution shall specify the intention to propose the resolution as a Special Resolution. Notice of every general meeting shall be given to all Members other than such as, under the provisions hereof or the terms of issue
of the Shares they hold, are not entitled to receive such notice from the Company.

21.3 In cases where instruments of proxy are sent out with a notice of general meeting, the accidental omission to
send such instrument of proxy to, or the non-receipt of any such instrument of proxy by, any person entitled to receive notice shall not invalidate any resolution passed or any proceeding at any such meeting.

21.4 No business may be transacted at any general meeting, other than business that is either (A) specified in
the notice of meeting (or any supplement thereto) given by or at the direction of the Directors (or any duly authorised committee thereof), (B) otherwise properly brought before an annual general meeting by or at the direction of the Directors (or
any duly authorised committee thereof), (C) otherwise properly brought before an annual general meeting by any Member of the Company who (1) is a Member of record on both (x) the date of the giving of the notice by such Member provided for
in this Article and (y) the record date for the determination of Members entitled to vote at such annual general meeting and (2) complies with the notice procedures set forth in this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other applicable requirements, for business to be brought properly before an annual general
meeting by a Member, such Member must have given timely notice thereof in proper written form to the Secretary of the Company and comply with Article 21.4(c) and (f).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All notices of general meetings shall be sent or otherwise given in accordance with this Article not less than
ten (10) nor more than sixty (60) days before the date of the meeting. The notice shall specify the place, date and hour of the meeting and (i) in the case of an extraordinary general meeting, the purpose or purposes for which the
meeting is called (no business other than that specified in the notice may be transacted) or (ii) in the case of the annual general meeting, those matters which the Directors, at the time of giving the notice, intends to present for action by
the members (but any proper matter may be presented at the meeting for such action). The notice of any meeting at which Directors are to be elected shall include the name of any nominee or nominees who, at the time of the notice, the Directors
intend to present for election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For matters other than for the nomination for election of a Director to be made by a Member, to be timely, such
Member's notice shall be delivered to the Company at the principal executive offices of the Company not less than ninety (90) days and not more than one hundred twenty (120) days prior to the one-year anniversary of the preceding year's annual general meeting; provided, however, that if the Company's annual general meeting occurs on a date more than thirty (30) days earlier or later
than the Company's prior year's annual general meeting, then the Directors shall determine a date a reasonable period prior to the Company's annual general meeting by which date the Members notice must be delivered and publicise such
date in a filing pursuant to the Exchange Act, or via press release. Such publication shall occur at least ten (10) days prior to the date set by the Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To be in proper written form, a Member's notice to the Company must set forth as to such matter such
Member proposes to bring before the annual general meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reasonably brief description of the business desired to be brought before the annual general meeting,
including the text of the proposal or business, and the reasons for conducting such business at the annual general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the name and address, as they appear on the Company's Register of Members, of the Member proposing such
business and any Member Associated Person (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the class or series and number of shares of the Company that are held of record or are beneficially owned by
such Member or any Member Associated Person and any derivative positions held or beneficially held by the Member or any Member Associated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) whether and the extent to which any hedging or other transaction or series of transactions has been entered
into by or on behalf of such Member or any Member Associated Person with respect to any securities of the Company, and a description of any other agreement, arrangement or understanding (including any short position or any borrowing or lending of
Shares), the effect or intent of which is to mitigate loss to, or to manage the risk or benefit from share price changes for, or to increase or decrease the voting power of, such Member or any Member Associated Person with respect to any securities
of the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any material interest of the Member or a Member Associated Person in such business, including a reasonably
detailed description of all agreements, arrangements and understandings between or among any of such Members or between or among any proposing Members and any other person or entity (including their names) in connection with the proposal of such
business by such Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a statement as to whether such Member or any Member Associated Person will deliver a proxy statement and form
of proxy to holders of at least the percentage of the Company's voting Shares required under rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or
otherwise under Applicable Law to carry the proposal.

For purposes of this Article 21.4(d), a "**Member Associated Person**" of any Member shall mean (x) any Affiliate; or person acting in concert with, such Member, (y) any beneficial owner of shares of the Company owned of record or beneficially by such Member and on whose behalf the proposal or nomination, as the case may be, is being made, or (z) any person controlling, controlled by or under common control with such person referred to in the preceding clauses (x) and (y).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition to any other applicable requirements, for a nomination for election of a Director to be made by a
Member of the Company (other than Directors to be nominated by any series of Preference Shares, voting separately as a class), such Member must (A) be a Member of record on both (x) the date of the giving of the notice by such Member
provided for in this Article and (y) the record date for the determination of Members entitled to vote at such annual general meeting, and on each such date beneficially own more than 5% of the issued Common Shares (unless otherwise provided in
the Exchange Act or the rules and regulations of the Securities and Exchange Commission) and (B) have given timely notice thereof in proper written form to the Secretary of the Company. If a Member is entitled to vote only for a specific class
or category of directors at a meeting of the Members, such Member's right to nominate one or more persons for election as a director at the meeting shall be limited to such class or category of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To be timely for purposes of Article 21.4(e), a Member's notice shall be delivered to or mailed and
received at the principal executive offices of the Company not less than ninety (90) nor more than one hundred twenty (120) days prior to the meeting; provided, however, that in the event less than one hundred thirty (130) days'
notice or prior public disclosure of the date of the meeting is given or made to Members, notice by the Member to be timely must be so received not later than the close of business on the tenth
(10<sup>th</sup>) day following the earlier of the day on which such notice of the date of the meeting was mailed or such public disclosure was made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To be in proper written form for purposes of Article 21.4(f), a Nominating Member's notice to the
Secretary must be set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as to each Nominating Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the information that is requested in Article 21.4(d)(ii)-(vi); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any other information relating to such Member that would be required to be disclosed pursuant to the rules and
regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as to each person whom the Member proposes to nominate for election as a director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all information that would be required by Article 21.4(d)(ii)-(vi) if such nominee was a Nominating Member,
except such information shall also include the business address and residence address of the person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal occupation or employment of the person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all information relating to such person that is required to be disclosed in solicitations of proxies for
appointment of directors in an election contest, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act or any successor provisions thereto, and any other information relating to the person that would be required to
be disclosed pursuant to the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a description of all direct and indirect compensation and other material monetary arrangements and
understandings during the past three years, and any other material relationship, between or among any Nominating Member and their Affiliates and associates, on the one hand, and each proposed nominee, their respective Affiliates and associates, on
the other hand, including, without limitation, all information that would be required to be disclosed pursuant to Item 404 under Regulation S-K of the Exchange Act if such Nominating Member were the
"registrant" for purposes of such rule and the proposed nominee were a director or executive officer of such registrant.

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Such notice must be accompanied by a written consent of each proposed nominee to being named as a nominee and to serve as a director if elected. The Company may require any proposed nominee to furnish such other information as may be reasonably required by the Company to determine the eligibility of such proposed nominee to serve as an independent director of the Company in accordance with the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Unless otherwise provided by the terms of the Articles, any series of Preference Shares or any agreement among
Members or other agreement approved by the Directors, only persons who are nominated in accordance with the procedures set forth above shall be eligible to serve as Directors. If the chairperson of a general meeting determines that a proposed
nomination was not made in compliance with the Articles, they shall declare to the general meeting that nomination is defective and such defective nomination shall be disregarded. Notwithstanding the foregoing provisions of the Articles, if the
Nominating Member (or a qualified representative of the Nominating Member) does not appear at the general meeting to present the nomination, such nomination shall be disregarded.

21.5 The Directors shall have power at any time and from time to time to appoint any person to be a Director, either
as a result of a casual vacancy or as an additional Director, subject to the maximum number (if any) imposed by the Directors.

21.6 The Company may by Ordinary Resolution appoint any person to be a Director.

21.7 Subject to the Articles, a Director shall hold office until the expiry of their term as contemplated by Article
28.2 or, until such time as they vacate office in accordance with Article 31.

21.8 No person shall be eligible for election as a director of the Company unless nominated in accordance with the
procedures set forth in this Article. If the chairperson of an annual general meeting determines that a nomination was not made in accordance with the foregoing procedures, the chairperson shall declare to the meeting that the nomination was
defective and such defective nomination shall be disregarded. This Article 21 shall not apply to any nomination of a director in an election in which only the holders of one or more series of Preference Shares of the Company are entitled to vote
(unless otherwise provided in the terms of such series of Preference Shares).

21.9 The accidental omission to give notice of a meeting to or the non-receipt of a notice of a meeting by any Member shall not invalidate the proceedings at any meeting.

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|:---|:---|
| **22** | **Proceedings at General Meetings**  |

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22.1 No business shall be transacted at any general meeting unless a quorum of Members is present at the time when
the meeting proceeds to business. Members holding in aggregate not less than a simple majority of all voting share capital of the Company in issue present in person or by proxy and entitled to vote shall be a quorum. A person may participate at a
general meeting by conference telephone or other communications equipment by means of which all the persons participating in

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the meeting can communicate with each other. Participation by a person in a general meeting in this manner is treated as presence in person at that meeting. If, however, such quorum is not present or represented at any general meeting, then either (i) the chairperson of the meeting or (ii) the Members entitled to vote thereat, present in person or represented by proxy, shall have power to adjourn the meeting.

22.2 When a meeting is adjourned to another time and place, unless the Articles otherwise require, notice need not
be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting the Company may transact any business that might have been transacted at the original meeting.
If the adjournment is for more than thirty (30) days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each Member of record entitled to vote at the meeting.

22.3 A determination of the Members of record entitled to notice of or to vote at a general meeting shall apply to
any adjournment of such meeting unless the Directors fix a new record date for the adjourned meeting, but the Directors shall fix a new record date if the meeting is adjourned for more than thirty (30) days from the date set for the original
meeting.

22.4 The chairperson of the board of Directors shall preside as chairperson at every general meeting of the Company.
If at any meeting the chairperson of the board of Directors is not present within fifteen minutes after the time appointed for holding the meeting or is unwilling to act as chairperson, the Directors present shall elect one of their number as
chairperson of the meeting or if all the Directors present decline to take the chair, the Members present shall choose one of their own number to be the chairperson of the meeting.

22.5 At any general meeting a resolution put to the vote of the meeting shall be decided on a poll.

22.6 A poll shall be taken in such manner as the chairperson directs, and the result of the poll shall be deemed to
be the resolution of the meeting.

22.7 In the case of an equality of votes, the chairperson of the meeting shall not be entitled to a second or
casting vote.

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|:---|:---|
| **23** | **Votes of Members**  |

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23.1 Subject to any rights and restrictions for the time being attached to any class or classes of Shares, every
Member present in person and every person representing a Member by proxy at a general meeting of the Company shall have one vote for each Share registered in such Member's name in the Register of Members. No cumulative voting shall be allowed.

23.2 In the case of joint holders the vote of the senior holder who tenders a vote, whether in person or by proxy
(or, in the case of a corporation or other non-natural person, by its duly authorised representative or proxy), shall be accepted to the exclusion of the votes of the other joint holders, and seniority shall
be determined by the order in which the names of the holders stand in the Register of Members.

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23.3 A Member of unsound mind, or in respect of whom an order has been made by any court, having jurisdiction in
lunacy, may vote, whether on a show of hands or on a poll, by their committee, receiver, *curator bonis*, or other person on such Member's behalf appointed by that court, and any such committee, receiver, *curator bonis* or other
person may vote by proxy.

23.4 No person shall be entitled to vote at any general meeting unless they are registered as a Member on the record
date for such meeting nor unless all calls or other monies then payable by them in respect of Shares have been paid.

23.5 No objection shall be raised as to the qualification of any voter except at the general meeting or adjourned
general meeting at which the vote objected to is given or tendered and every vote not disallowed at the meeting shall be valid. Any objection made in due time in accordance with this Article shall be referred to the chairperson whose decision shall
be final and conclusive.

23.6 On a poll or on a show of hands votes may be cast either personally or by proxy (or in the case of a
corporation or other non-natural person by its duly authorised representative or proxy). A Member may appoint more than one proxy or the same proxy under one or more instruments to attend and vote at a
meeting. Where a Member appoints more than one proxy the instrument of proxy shall state which proxy is entitled to vote on a show of hands and shall specify the number of Shares in respect of which each proxy is entitled to exercise the related
votes.

23.7 On a poll, a Member holding more than one Share need not cast the votes in respect of their Shares in the same
way on any resolution and therefore may vote a Share or some or all such Shares either for or against a resolution and/or abstain from voting a Share or some or all of the Shares and, subject to the terms of the instrument appointing the proxy, a
proxy appointed under one or more instruments may vote a Share or some or all of the Shares in respect of which they are appointed either for or against a resolution and/or abstain from voting a Share or some or all of the Shares in respect of which
they are appointed.

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|:---|:---|
| **24** | **Proxies**  |

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24.1 The instrument appointing a proxy shall be in writing and shall be executed under the hand of the appointor or
of their attorney duly authorised in writing, or, if the appointor is a corporation or other non-natural person, under the hand of its duly authorised representative. A proxy need not be a Member.

24.2 The Directors may, in the notice convening any meeting or adjourned meeting, or in an instrument of proxy sent
out by the Company, specify the manner by which the instrument appointing a proxy shall be deposited and the place and the time (being not later than the time appointed for the commencement of the meeting or adjourned meeting to which the proxy
relates) at which the instrument appointing a proxy shall be deposited. In the absence of any such direction from the Directors in the notice convening any meeting or adjourned meeting or in an instrument of proxy sent out by the Company, the
instrument appointing a proxy shall be deposited physically at the Registered Office not less than 48 hours before the time appointed for the meeting or adjourned meeting to commence at which the person named in the instrument proposes to vote.

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24.3 The chairperson may in any event at their discretion declare that an instrument of proxy shall be deemed to
have been duly deposited. An instrument of proxy that is not deposited in the manner permitted, or which has not been declared to have been duly deposited by the chairperson, shall be invalid.

24.4 The instrument appointing a proxy may be in any usual or common form (or such other form as the Directors may
approve) and may be expressed to be for a particular meeting or any adjournment thereof or generally until revoked. An instrument appointing a proxy shall be deemed to include the power to demand or join or concur in demanding a poll.

24.5 Votes given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous
death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the Share in respect of which the proxy is given unless notice in writing of such death, insanity, revocation or
transfer was received by the Company at the Registered Office before the commencement of the general meeting, or adjourned meeting at which it is sought to use the proxy.

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|:---|:---|
| **25** | **Corporate Members**  |

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Any corporation or other non-natural person which is a Member may in accordance with its constitutional documents, or in the absence of such provision by resolution of its directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of the Company or of any class of Members, and the person so authorised shall be entitled to exercise the same powers on behalf of the corporation which they represent as the corporation could exercise if it were an individual Member.

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|:---|:---|
| **26** | **Clearing Houses**  |

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If a clearing house or depository (or its nominee) is a Member it may, by resolution of its directors, other governing body or authorised individual(s) or by power of attorney, authorise such person or persons as it thinks fit to act as its representative or representatives at any general meeting of the Company or at any general meeting of any class of Members; provided that, if more than one person is so authorised, the authorisation shall specify the number and class of Shares in respect of which each such person is so authorised. A person so authorised pursuant to this provision shall be entitled to exercise the same powers on behalf of the clearing house (or its nominee) which they represent as that clearing house (or its nominee) could exercise if it were an individual member of the Company holding the number and class of Shares specified in such authorisation.

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|:---|:---|
| **27** | **Shares that May Not be Voted**  |

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Shares in the Company that are beneficially owned by the Company shall not be voted, directly or indirectly, at any meeting and shall not be counted in determining the total number of outstanding Shares at any given time.

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|:---|:---|
| **28** | **Directors**  |

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28.1 There shall be a board of Directors consisting of such number of Directors as fixed by the Directors from time
to time (but not less than one Director), unless increased or decreased from time to time by the Directors or the Company in general meeting. So long as Shares are listed on the Designated Stock Exchange, the board of Directors shall include at
least such number of "independent directors" as the relevant rules applicable to the listing of any Shares on the Designated Stock Exchange require (subject to any applicable exceptions for Controlled Companies).

28.2 The Directors shall be divided into three (3) classes designated as Class I, Class II and
Class III, respectively. Directors shall be assigned to each class in accordance with a resolution or resolutions adopted by the Directors. At the 2025 annual general meeting of Members, the term of office of the Class I Directors shall
expire and Class I Directors shall be elected for a full term of three (3) years. At the 2026 annual general meeting of Members, the term of office of the Class II Directors shall expire and Class II Directors shall be elected
for a full term of three (3) years. At the 2027 annual general meeting of Members, the term of office of the Class III Directors shall expire and Class III Directors shall be elected for a full term of three (3) years. At each
succeeding annual general meeting of Members, Directors shall be elected for a full term of three (3) years to succeed the Directors of the class whose terms expire at such annual general meeting. Notwithstanding the foregoing provisions of
this Article, each Director shall hold office until the expiration of their term, until their successor shall have been duly elected and qualified or until their earlier death, resignation or removal. No decrease in the number of Directors
constituting the Directors shall shorten the term of any incumbent Director.

28.3 The Directors by the affirmative vote of a simple majority of the remaining Directors present and voting at a
meeting of the Directors, even if less than a quorum, shall have the power from time to time and at any time to appoint any person as a Director to fill a casual vacancy on the board of Directors or as an addition to the existing board of Directors,
subject to the Articles, the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law; provided that any vacancy not filled by
the Directors may be filled by the Members by Ordinary Resolution at the next annual general meeting or extraordinary general meeting called for that purpose; provided further, that whenever the holders of any class or classes of stock or series
thereof are entitled to elect one or more Directors by the provisions of the Articles, vacancies and newly created directorships of such class or classes or series may be filled by a majority of the Directors elected by such class or classes or
series thereof then in office, or by a sole remaining Director so elected or by the Members holding such class or classes of Shares or series thereof in accordance with the Articles. Any Director so appointed shall hold office until the expiration
of the term of such class of Directors or until their earlier death, resignation or removal.

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28.4 A director may be removed from office by the Members by Special Resolution only for cause ("cause"
for removal of a Director shall be deemed to exist only if (a) the Director whose removal is proposed has been convicted of a felony by a court of competent jurisdiction and such conviction is no longer subject to direct appeal; (b) such
Director has been found by the affirmative vote of a majority of the Directors then in office at any regular or special meeting of the board of Directors called for that purpose, or by a court of competent jurisdiction, to have been guilty of wilful
misconduct in the performance of such Director's duties to the Company in a matter of substantial importance to the Company; or (c) such Director has been adjudicated by a court of competent jurisdiction to be mentally incompetent, which
mental incompetency directly affects such director's ability to perform their obligations as a Director) at any time before the expiration of their term notwithstanding anything in the Articles or in any agreement between the Company and such
Director (but without prejudice to any claim for damages under such agreement). If the board of Directors makes a determination that removal of a Director by the Members by Special Resolution is in the best interests of the Company the above

at which such Director is removed or by the affirmative vote of a simple majority of the remaining Directors present and voting at a meeting of the Directors, subject to the Articles, the rules and regulations of the Designated Stock Exchange, the
Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. A Director appointed to fill a vacancy in accordance with this Article shall be of the same Class of Director as the Director
they replaced and the term of such appointment shall terminate in accordance with that Class of Director.

28.5 The Directors may, from time to time, and except as required by the rules and regulations of the Designated
Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law, adopt, institute, amend, modify or revoke the corporate governance policies or initiatives, which shall be
intended to set forth the policies of the Company and the Directors on various corporate governance related matters, as the Directors shall determine by resolution from time to time.

28.6 A Director shall not be required to hold any Shares in the Company by way of qualification. A Director who is
not a member of the Company shall nevertheless be entitled to receive notice of and to attend and speak at general meetings of the Company and all classes of shares of the Company.

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|:---|:---|
| **29** | **Directors' Fees and Expenses**  |

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29.1 The Directors may receive such remuneration as the Directors may from time to time determine. The Directors may
be entitled to be repaid all traveling, hotel and incidental expenses reasonably incurred or expected to be incurred by that Director in attending meetings of the Directors or committees of the Directors or general meetings or separate meetings of
any class of securities of the Company or otherwise in connection with the discharge of their duties as a Director.

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29.2 Any Director who performs services which in the opinion of the Directors go beyond the ordinary duties of a
Director may be paid such extra remuneration (whether by way of salary, commission, participation in profits or otherwise) as the Directors may determine and such extra remuneration shall be in addition to or in substitution for any ordinary
remuneration provided for, by or pursuant to any other Article.

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|:---|:---|
| **30** | **Powers and Duties of Directors**  |

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30.1 Subject to the provisions of the Statute, the Memorandum and the Articles and to any resolutions made in a
general meeting, the business of the Company shall be managed by the Directors, who may pay all expenses incurred in setting up and registering the Company and may exercise all powers of the Company. No resolution made by the Company in a general
meeting shall invalidate any prior act of the Directors that would have been valid if that resolution had not been made.

30.2 The Directors may delegate any of their powers, authorities and discretions, including the power to sub-delegate, to any committees consisting of such member or members of their body as they think fit (including, without limitation, the Audit Committee, the Compensation Committee and the Nominating and Corporate
Governance Committee (provided that the Compensation Committee and the Nominating and Corporate Governance Committee may be combined into a single committee)), subject to Article 30.7; provided that any committee so formed shall include amongst its
members at least two Directors unless otherwise required by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law;
provided further that no committee shall have the power of authority to (a) recommend to the Members an amendment of the Articles (except that a committee may, to the extent authorised in the resolution or resolutions providing for the issuance
of Shares adopted by the Directors as provided under the laws of the Cayman Islands, fix the designations and any of the preferences or rights of such Shares relating to dividends, redemption, dissolution, any distribution of assets of the Company
or the conversion into, or the exchange of such Shares for, Shares of any other class or classes or any other series of the same or any other class or classes of shares of the Company); (b) adopt an agreement of merger or consolidation;
(c) recommend to the Members the sale, lease or exchange of all or substantially all of the Company's property and assets; (d) recommend to the Members a dissolution of the Company or a revocation of a dissolution; (e) recommend
to the Members an amendment of the Memorandum of Association of the Company; or (f) declare a dividend or authorise the issuance of Shares unless the resolution establishing such committee (or the charter of such committee approved by the
Directors) or the Memorandum of Association or the Articles so provide.  **** ** Any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the Directors. The Directors may
also delegate to any Director holding any executive office such of their powers as they consider desirable to be exercised by them. Any such delegation may be made subject to any conditions the Directors may impose, and either collaterally with or
to the exclusion of their own powers, and may be revoked or altered.

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30.3 The Directors may from time to time and at any time by power of attorney or otherwise appoint any company, firm
or person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys of the Company for such purposes and with such powers, authorities and discretion (not exceeding those vested in or exercisable
by the Directors under the Articles) and for such period and subject to such conditions as they may think fit, and any such power of attorney may contain such provisions for the protection and convenience of persons dealing with any such attorney as
the Directors may think fit, and may also authorise any such attorney to delegate all or any of the powers, authorities and discretion vested in them.

30.4 The Directors may from time to time provide for the management of the affairs of the Company in such manner as
they shall think fit and the provisions contained in the following paragraphs shall be without prejudice to the general powers conferred by this paragraph.

30.5 The Directors from time to time and at any time may establish any advisory committees, local boards or agencies
for managing any of the affairs of the Company and may appoint any persons to be members of such advisory committees or local boards and may appoint any managers or agents of the Company and may fix the remuneration of any of the aforesaid.

30.6 The Directors from time to time and at any time may delegate to any such advisory committee, local board,
manager or agent any of the powers, authorities and discretions for the time being vested in the Directors and may authorise the members for the time being of any such local board, or any of them to fill up any vacancies therein and to act
notwithstanding vacancies and any such appointment or delegation may be made on such terms and subject to such conditions as the Directors may think fit and the Directors may at any time remove any person so appointed and may annul or vary any such
delegation, but no person dealing in good faith and without notice of any such annulment or variation shall be affected thereby.

30.7 The Directors may adopt formal written charters for committees and, if so adopted, shall review and assess the
adequacy of such formal written charters on an annual basis. Each of these committees shall be empowered to do all things necessary to exercise the rights of such committee set forth in the Articles and shall have such powers as the Directors may
delegate pursuant to the Articles and as required by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law. Each of the
Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee, if established, shall, subject to Article 30.2, consist of such number of Directors as the Directors shall from time to time determine (or such
minimum number as may be required from time to time by the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law). For so long
as any class of Shares is listed on the Designated Stock Exchange, the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee shall be made up of such number of Independent Directors as is required from
time to time by the rules and regulations of the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law.

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30.8 Any such delegates as aforesaid may be authorised by the Directors to sub-delegate all or any of the powers, authorities, and discretions for the time being vested to them.

30.9 The Directors may elect, by the affirmative vote of a majority of the Directors then in office, a chairperson.
The chairperson of the board of Directors may be a director or an officer of the Company. Subject to the provisions of the Articles and the direction of the Directors, the chairperson of the board of Directors shall perform all duties and have all
powers which are commonly incident to the position of chairperson of a board or which are delegated to them by the Directors, preside at all general meetings and meetings of the Directors at which they are present and have such powers and perform
such duties as the Directors may from time to time prescribe.

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|:---|:---|
| **31** | **Vacation of Office of Directors**  |

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Subject to the Articles, the office of a Director shall be vacated if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Director gives notice in writing to the Company that they resign the office of Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Director dies, becomes bankrupt or makes any arrangement or composition with their creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Director is found to be or becomes of unsound mind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is prohibited by applicable law or the Designated Stock Exchange, the Securities and Exchange Commission and/or
any other competent regulatory authority or otherwise under Applicable Law from being a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Director, without special leave of absence from the Directors, is absent from meetings of the Directors for
six consecutive months and the Directors resolve that their office be vacated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Director shall be removed from office pursuant to the Articles.

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|:---|:---|
| **32** | **Proceedings of Directors**  |

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32.1 Subject to the Articles, the Directors may meet together for the dispatch of business, adjourn, and otherwise
regulate their meetings and proceedings as they think fit. Such meetings may be held at any place within or outside the Cayman Islands that has been designated by the Directors. In the absence of such a designation, meetings of the Directors shall
be held at the principal executive office of the Company. Questions arising at any meeting of the Directors shall be decided by the method set forth in Article 32.4.

32.2 The chairperson of the board of Directors or the Secretary on request of a Director, may, at any time summon a
meeting of the Directors by twenty-four (24) hour notice to each Director in person, by telephone, facsimile, electronic email, or in such other manner as the Directors may from time to time determine, which notice shall set forth the general
nature of the business to be considered

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unless notice is waived by all the Directors either at, before or after the meeting is held. Notice of a meeting need not be given to any Director (i) who signs a waiver of notice or a consent to holding the meeting or an approval of the minutes thereof, whether before or after the meeting, or (ii) who attends the meeting without protesting, prior thereto or at its commencement, the lack of notice to such Directors. All such waivers, consents, and approvals shall be filed with the corporate records or made part of the minutes of the meeting. A waiver of notice need not specify the purpose of any regular or special meeting of the Directors.

32.3 A Director or Directors may participate in any meeting of the Directors, or of any committee appointed by the
Directors of which such Director or Directors are members, by means of telephone or similar communication equipment by way of which all persons participating in such meeting can hear each other and such participation shall be deemed to constitute
presence in person at the meeting.

32.4 The quorum necessary for the transaction of the business of the Directors shall be a majority of the authorised
number of Directors. If at any time there is only a sole Director, the quorum shall be one (1) Director. Every act or decision done or made by a majority of the Directors present at a duly held meeting at which a quorum is present shall be
regarded as the act of the Directors, subject to the provisions of the Articles and other applicable law. In the case of an equality of votes, the chairperson shall not have an additional tie-breaking vote.

32.5 A meeting of the Directors may be held by means of telephone or teleconferencing or any other
telecommunications facility provided that all participants are thereby able to communicate immediately by voice with all other participants.

32.6 Subject to the Articles, a Director who is in any way, whether directly or indirectly, interested in a contract
or proposed contract with the Company shall declare the nature of their interest at a meeting of the Directors. A general notice given to the Directors by any Director to the effect that they are a member of any specified company or firm and is to
be regarded as interested in any contract which may thereafter be made with that company or firm shall be deemed a sufficient declaration of interest in regard to any contract so made. A Director may vote in respect of any contract or proposed
contract or arrangement notwithstanding that they may be interested therein and if they do so their vote shall be counted and they may be counted in the quorum at any meeting of the Directors at which any such contract or proposed contract or
arrangement shall come before the meeting for consideration.

32.7 A Director may hold any other office or place of profit under the Company (other than the office of auditor) in
conjunction with their office of Director for such period and on such terms (as to remuneration and otherwise) as the Directors may determine and no Director or intending Director shall be disqualified by their office from contracting with the
Company either with regard to their tenure of any such other office or place of profit or as vendor, purchaser or otherwise, nor shall any such contract or arrangement entered into by or on behalf of the Company in which any Director is in any way
interested, be liable to be avoided, nor shall any Director so contracting or being so interested be liable to account to the Company for any profit realised by any such contract or

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arrangement by reason of such Director holding that office or of the fiduciary relation thereby established. A Director, notwithstanding their interest, may be counted in the quorum present at any meeting whereat that or any other Director is appointed to hold any such office or place of profit under the Company or whereat the terms of any such appointment are arranged and they may vote on any such appointment or arrangement. Any Director who enters into a contract or arrangement or has a relationship that is reasonably likely to be implicated under this Article 32.7 or that would reasonably be likely to affect a Director's status as an "Independent Director" under the rules and regulations of the Designated Stock Exchange, Designated Stock Exchange, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law shall disclose the nature of their interest in any such contract or arrangement in which they are interested or any such relationship.

32.8 Any Director may act by themselves or their firm in a professional capacity for the Company, and that Director
or their firm shall be entitled to reasonable expense reimbursement consistent with the Company's policies in connection with such Director's service in their official capacity; provided that nothing herein contained shall authorise a
Director or their firm to act as auditor to the Company.

32.9 The Directors shall cause minutes to be made in books kept for the purpose of recording:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all appointments of officers made by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the names of the Directors present at each meeting of the Directors and of any committee of the Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all resolutions and proceedings at all meetings of the Company, and of the Directors and of committees of
Directors.

32.10 When the chairperson of a meeting of the Directors signs the minutes of such meeting the same shall be deemed
to have been duly held notwithstanding that all the Directors have not actually come together or that there may have been a technical defect in the proceedings.

32.11 A resolution signed by all the Directors shall be as valid and effectual as if it had been passed at a meeting
of the Directors duly called and constituted. When signed, a resolution may consist of several documents each signed by one or more of the Directors.

32.12 The continuing Directors may act notwithstanding any vacancy in their body but if and so long as their number
is reduced below the number fixed by or pursuant to the Articles as the necessary quorum of Directors, the continuing Directors may act for the purpose of increasing the number, or of summoning a general meeting of the Company, but for no other
purpose.

32.13 A committee appointed by the Directors may elect a chairperson of its meetings. If no such chairperson is
elected, or if at any meeting the chairperson is not present within five minutes after the time appointed for holding the same, the members present may choose one of their number to be chairperson of the meeting.

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32.14 A committee appointed by the Directors may meet and adjourn as it thinks proper. Questions arising at any
meeting shall be determined by a majority of votes of the committee members present and in case of an equality of votes the chairperson shall not have a second or casting vote.

32.15 Meetings and actions of committees of the Directors shall be governed by, and held and taken in accordance
with, the provisions of Article 32.1 (place of meetings), Article 32.2 (notice), Article 32.3 (telephonic meetings), and Article 32.4 (quorum), with such changes in the context of the Articles as are necessary to substitute the committee and its
members for the Directors; provided, however, that the time of regular meetings of committees may be determined either by resolution of the Directors or by resolution of the committee, that special meetings of committees may also be called by
resolution of the Directors, and that notice of special meetings of committees shall also be given to all alternate members, who shall have the right to attend all meetings of the committee. The Directors may adopt rules for the government of any
committee not inconsistent with the provisions of the Articles.

32.16 All acts done by any meeting of the Directors or of a committee of Directors, or by any person acting as a
Director, shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Director or person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such person
had been duly appointed and was qualified to be a Director.

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| | |
|:---|:---|
| **33** | **Presumption of Assent**  |

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A Director of the Company who is present at a meeting of the Directors at which action on any Company matter is taken shall be presumed to have assented to the action taken unless their dissent or abstention shall be entered in the Minutes of the meeting or unless they shall file their written dissent or abstention from such action with the person acting as the chairperson or Secretary of the meeting before the adjournment thereof or shall forward such dissent or abstention by registered post to such person immediately after the adjournment of the meeting. Such right to dissent or abstain shall not apply to a Director who voted in favour of such action.

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| | |
|:---|:---|
| **34** | **Dividends, Distributions and Reserve**  |

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34.1 Subject to any rights and restrictions for the time being attached to any class or classes of Shares and the
Articles, the Directors may from time to time declare dividends (including interim dividends) and other distributions on Shares in issue and authorise payment of the same out of the funds of the Company lawfully available therefor. All dividends
unclaimed for one (1) year after having been declared may be invested or otherwise made use of by the Directors for the benefit of the Company until claimed. Subject to any applicable unclaimed property or other laws, any dividend unclaimed
after a period of six (6) years from the date of declaration shall be forfeited and shall revert to the Company. The payment by the Directors of any unclaimed dividend or other sums payable on or in respect of a Share into a separate account
shall not constitute the Company a trustee in respect thereof.

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34.2 The Directors may, before recommending or declaring any dividend, set aside out of the funds legally available
for distribution such sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors be applicable for meeting contingencies, or for equalising dividends or for any other purpose to which those funds be properly
applied and pending such application may, at the like discretion, either be employed in the business of the Company or be invested in such investments (other than shares of the Company) as the Directors may from time to time think fit. The Directors
shall establish an account to be called the "Share Premium Account" and shall carry to the credit of such account from time to time a sum equal to the amount or value of the premium paid on the issue of any share in the Company. Unless
otherwise provided by the provisions of the Articles, the Directors may apply the share premium account in any manner permitted by the Statute and the rules and regulations of the Designated Stock Exchange, the Securities and Exchange Commission
and/or any other competent regulatory authority or otherwise under Applicable Law. The Company shall at all times comply with the provisions of the Articles, the Statute and the rules and regulations of the Designated Stock Exchange, the Securities
and Exchange Commission and/or any other competent regulatory authority or otherwise under Applicable Law in relation to the share premium account.

34.3 Any dividend may be paid by cheque or warrant sent through the post to the registered address of the Member or
person entitled thereto, or in the case of joint holders, to any one of such joint holders at their registered address or to such person and such address as the Member or person entitled, or such joint holders as the case may be, may direct. Every
such cheque or warrant shall be made payable to the order of the person to whom it is sent or to the order of such other person as the Member or person entitled, or such joint holders as the case may be, may direct. Notwithstanding the foregoing,
dividends may also be paid electronically to the account of the Members or persons entitled thereto or in such other manner approved by the Directors.

34.4 The Directors when paying dividends to the Members in accordance with the foregoing provisions may make such
payment either in cash or in specie.

34.5 No dividend shall be paid otherwise than out of profits or, subject to the restrictions of the Statute, the
share premium account.

34.6 Subject to the rights of persons, if any, entitled to Shares with special rights as to dividends, all dividends
shall be declared and paid according to the amounts paid or credited as fully paid on the Shares, but if and so long as nothing is paid up on any of the Shares in the Company dividends may be declared and paid according to the amounts of the Shares.
No amount paid on a Share in advance of calls shall, while carrying interest, be treated for the purposes of this Article as paid on the Share.

34.7 If several persons are registered as joint holders of any Share, any of them may give effectual receipts for
any dividend or other moneys payable on or in respect of the Share.

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34.8 No dividend shall bear interest against the Company.

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| | |
|:---|:---|
| **35** | **Book of Accounts**  |

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35.1 The books of account relating to the Company's affairs shall be kept in such manner as may be determined
from time to time by the Directors.

35.2 The books of account shall be kept at such place or places as the Directors think fit, and shall always be open
to the inspection of the Directors.

35.3 Except as provided in Article 35.2, the Directors shall from time to time determine whether and to what extent
and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of Members not being Directors, and no Member (not being a Director) shall have any right of
inspecting any account or book or document of the Company except as conferred by Statute or authorised by the Directors.

35.4 The accounts relating to the Company's affairs shall be audited in such manner and with such financial
year end as may be determined from time to time by the Directors or failing any determination as aforesaid shall not be audited.

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| | |
|:---|:---|
| **36** | **Audit**  |

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36.1 The Directors or, if authorised to do so, the Audit Committee of the Directors, may appoint an auditor of the
Company who shall hold office until removed from office by a resolution of the Directors and may fix their remuneration.

36.2 Every auditor of the Company shall have a right of access at all times to the books and accounts and vouchers
of the Company and shall be entitled to require from the Directors and officers of the Company such information and explanation as may be necessary for the performance of the duties of the auditors.

36.3 Auditors shall, if so required by the Directors, make a report on the accounts of the Company during their
tenure of office at the next annual general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an ordinary company, and at the next extraordinary general meeting following their
appointment in the case of a company which is registered with the Registrar of Companies as an exempted company, and at any other time during their term of office, upon request of the Directors or any general meeting of the Members.

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| | |
|:---|:---|
| **37** | **Seal**  |

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37.1 The Company may, if the Directors so determine, have a Seal. The Seal shall only be used by the authority of
the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal has been affixed shall be signed by at least one person who shall be either a Director or some officer of the Company or other person
appointed by the Directors for the purpose.

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37.2 The Company may have for use in any place or places outside the Cayman Islands a duplicate Seal or Seals each
of which shall be a fax of the common Seal of the Company and, if the Directors so determine, with the addition on its face of the name of every place where it is to be used.

37.3 A Director or officer, representative or attorney of the Company may without further authority of the Directors
affix the Seal over their signature alone to any document of the Company required to be authenticated by them under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever.

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| | |
|:---|:---|
| **38** | **Officers**  |

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Subject to the Articles, the Directors may from time to time appoint any person, whether or not a director of the Company, to hold the office of the Chief Executive Officer, the President, the Chief Financial Officer, one or more Vice Presidents or such other officers as the Directors may think necessary for the administration of the Company, for such term and at such remuneration (whether by way of salary or commission or participation in profits or partly in one way and partly in another), and with such powers and duties as the Directors may think fit.

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| | |
|:---|:---|
| **39** | **Register of Directors and Officers**  |

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The Company shall cause to be kept in one or more books at its office a Register of Directors and Officers in which there shall be entered the full names and addresses of the Directors and Officers and such other particulars as required by the Statute. The Company shall send to the Registrar of Companies in the Cayman Islands a copy of such register, and shall from time to time notify the said Registrar of any change that takes place in relation to such Directors and Officers as required by the Statute.

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| | |
|:---|:---|
| **40** | **Capitalisation of Profits**  |

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Subject to the Statute and the Articles, the Directors may capitalise any sum standing to the credit of any of the Company's reserve accounts (including a share premium account or a capital redemption reserve fund) or any sum standing to the credit of profit and loss account or otherwise available for distribution and to appropriate such sum to Members in the proportions in which such sum would have been divisible amongst them had the same been a distribution of profits by way of dividend and to apply such sum on their behalf in paying up in full unissued Shares for allotment and distribution credited as fully paid up to and amongst them in the proportion aforesaid. In such event the Directors shall do all acts and things required to give effect to such capitalisation, with full power to the Directors to make such provisions as they think fit for the case of Shares becoming distributable in fractions (including provisions whereby the benefit of fractional entitlements accrue to the Company rather than to the Members concerned). The Directors may authorise any person to enter on behalf of all of the Members interested into an agreement with the Company providing for such capitalisation and matters incidental thereto and any agreement made under such authority shall be effective and binding on all concerned.

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| | |
|:---|:---|
| **41** | **Notices**  |

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41.1 Except as otherwise provided in the Articles, any notice or document may be served by the Company or by the
person entitled to give notice to any Member either personally, by facsimile, by email or by sending it through the post in a prepaid letter or via a recognised courier service, fees prepaid, addressed to the Member at their address as appearing in
the Register of Members or, to the extent permitted by all applicable laws and regulations, by electronic means by transmitting it to any electronic number or address or website supplied by the Member to the Company or by placing it on the
Company's Website, provided that, (i) with respect to notification via electronic means, the Company has obtained the Member's prior express positive confirmation in writing to receive or otherwise have made available to them notices
in such fashion, and (i) with respect to posting to Company's Website, notification of such posting is provided to such Member. In the case of joint holders of a Share, all notices shall be given to that one of the joint holders whose name
stands first in the Register of Members in respect of the joint holding, and notice so given shall be sufficient notice to all the joint holders.

41.2 An affidavit of the mailing or other means of giving any notice of any general meeting, executed by the
Secretary, Assistant Secretary or any transfer agent of the Company giving the notice, shall be prima facie evidence of the giving of such notice.

41.3 Any Member present, either personally or by proxy, at any meeting of the Company shall for all purposes be
deemed to have received due notice of such meeting and, where required, of the purposes for which such meeting was convened.

41.4 Any notice or other document, if served by (a) post, shall be deemed to have been served when the letter
containing the same is posted, or (b) facsimile or email, shall be deemed to have been served upon confirmation of successful transmission, or (c) recognised courier service, shall be deemed to have been served when the letter containing
the same is delivered to the courier service and in proving such service it shall be sufficient to provide that the letter containing the notice or documents was properly addressed and duly posted or delivered to the courier, or (d) electronic
means as provided herein shall be deemed to have been served and delivered on the day on which it is successfully transmitted or at such later time as may be prescribed by any applicable laws or regulations.

41.5 Any notice or document delivered or sent to any Member in accordance with the terms of the Articles shall
notwithstanding that such Member be then dead or bankrupt, and whether or not the Company has notice of their death or bankruptcy, be deemed to have been duly served in respect of any Share registered in the name of such Member as sole or joint
holder, unless their name shall at the time of the service of the notice or document, have been removed from the Register of Members as the holder of the Share, and such service shall for all purposes be deemed a sufficient service of such notice or
document on all persons interested (whether jointly with or as claiming through or under them) in the Share.

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41.6 Notice of every general meeting shall be given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Members who have supplied to the Company an address for the giving of notices to them, except that in case
of joint holders, the notice shall be sufficient if given to the joint holder first named in the Register of Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Director.

41.7 No other person shall be entitled to receive notices of general meetings.

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| | |
|:---|:---|
| **42** | **Information**  |

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42.1 No Member shall be entitled to require discovery of any information in respect of any detail of the
Company's trading or any information which is or may be in the nature of a trade secret or secret process which may relate to the conduct of the business of the Company and which in the opinion of the Directors would not be in the interests of
the members of the Company to communicate to the public.

42.2 The Directors shall be entitled (but not required, except as provided by law) to release or disclose any
information in its possession, custody or control regarding the Company or its affairs to any of its Members including, without limitation, information contained in the Register of Members and transfer books of the Company.

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| | |
|:---|:---|
| **43** | **Indemnity**  |

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43.1 The Company shall indemnify every Director and officer of the Company or any predecessor to the Company (which
for the avoidance of doubt, shall not include auditors of the Company), together with every former Director and former officer of the Company or any predecessor to the Company, and may indemnify any person (other than current and former Directors
and officers) (any such Director, officer or other person, an "**Indemnified Person** "), out of the assets of the Company against any liability, action, proceeding, claim, demand, costs, damages or expenses, including legal expenses,
whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions in connection with the Company other than such liability (if any) that they may incur by reason of their own actual fraud, wilful
neglect or wilful default. No Indemnified Person shall be liable to the Company for any loss or damage incurred by the Company as a result (whether direct or indirect) of the carrying out of their functions unless that liability arises through the
actual fraud, wilful neglect or wilful default of such Indemnified Person. No person shall be found to have committed actual fraud wilful neglect or wilful default under this Article unless or until a court of competent jurisdiction shall have made
a finding to that effect. Each Member agrees to waive any claim or right of action they might have, whether individually or by or in the right of the Company, against any Director on account of any action taken by such Director, or the failure of
such Director to take any action in the performance of their duties with or for the Company; provided that such waiver shall not extend to any matter in respect of any actual fraud, wilful neglect or wilful default which may attach to such Director.

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43.2 The Company shall advance to each Indemnified Person reasonable attorneys' fees and other costs and
expenses incurred in connection with the defence of any action, suit, proceeding or investigation involving such Indemnified Person for which indemnity will or could be sought. In connection with any advance of any expenses hereunder, the
Indemnified Person shall execute an undertaking to repay the advanced amount to the Company if it shall be determined by final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification pursuant to this
Article. If it shall be determined by a final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification with respect to such judgment, costs or expenses, then such party shall not be indemnified with
respect to such judgment, costs or expenses and any advancement shall be returned to the Company (without interest) by the Indemnified Person.

43.3 The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director or
other officer of the Company against any liability which, by virtue of any rule of law, would otherwise attach to such person in respect of any negligence, default, breach of duty or breach of trust of which such person may be guilty in relation to
the Company.

43.4 Neither any amendment nor repeal of the Articles set forth under this heading of "**Indemnity** "
(the "**Indemnification Articles** "), nor the adoption of any provision of the Company's Articles or Memorandum of Association inconsistent with the Indemnification Articles, shall eliminate or reduce the effect of the
Indemnification Articles, in respect of any matter occurring, or any action or proceeding accruing or arising or that, but for these Indemnification Articles, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent
provision.

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|:---|:---|
| **44** | **Financial Year**  |

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Unless the Directors otherwise prescribe, the financial year of the Company shall end on December 31 in each year and shall begin on the day following.

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| | |
|:---|:---|
| **45** | **Winding Up**  |

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45.1 If the Company shall be wound up the liquidator shall apply the assets of the Company in satisfaction of
creditors' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any Shares, in a winding up:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the assets available for distribution amongst the Members shall be insufficient to repay the whole of the
Company's issued share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the Members in proportion to the par value of the Shares held by them; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the assets available for distribution amongst the Members shall be more than sufficient to repay the whole
of the Company's issued share capital at the commencement of the winding up, the surplus shall be distributed amongst the Members in proportion to the par value of the Shares held by them at the commencement of the winding up subject to a
deduction from those Shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise.

45.2 If the Company shall be wound up the liquidator may, subject to the rights attaching to any Shares and with the
sanction of a Special Resolution of the Company and any other sanction required by the Statute, divide amongst the Members in kind the whole or any part of the assets of the Company (whether such assets shall consist of property of the same kind or
not) and may for that purpose value any assets and determine how the division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like sanction, vest the whole or any part of such assets in
trustees upon such trusts for the benefit of the Members as the liquidator, with the like sanction, shall think fit, but so that no Member shall be compelled to accept any asset upon which there is a liability.

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| | |
|:---|:---|
| **46** | **RESERVED**  |

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| | |
|:---|:---|
| **47** | **Registration by Way of Continuation**  |

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Subject to the Articles, the Company may by Special Resolution resolve to be registered by way of continuation in a jurisdiction outside the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing. In furtherance of a resolution adopted pursuant to this Article, the Directors may cause an application to be made to the Registrar of Companies to deregister the Company in the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing and may cause all such further steps as they consider appropriate to be taken to effect the transfer by way of continuation of the Company.

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| | |
|:---|:---|
| **48** | **Mergers and Consolidations**  |

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The Company shall, with the approval of a Special Resolution, have the power to merge or consolidate with one or more constituent companies (as defined in the Statute), upon such terms as the Directors may determine.

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| | |
|:---|:---|
| **49** | **Business Opportunities**  |

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49.1 To the fullest extent permitted by Applicable Law, no individual serving as a Director or an Officer
(" **Management**") shall have any duty, except and to the extent expressly assumed by contract, to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as the Company. To the
fullest extent permitted by Applicable Law, the Company renounces any interest or expectancy of the Company in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for
Management, on the one hand, and the Company, on the other. Except to the extent expressly

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assumed by contract, to the fullest extent permitted by Applicable Law, Management shall have no duty to communicate or offer any such corporate opportunity to the Company and shall not be liable to the Company or its Members for breach of any fiduciary duty as a Member, Director and/or Officer solely by reason of the fact that such party pursues or acquires such corporate opportunity for itself or themself, directs such corporate opportunity to another person, or does not communicate information regarding such corporate opportunity to the Company.

49.2 Except as provided elsewhere in this Article, the Company hereby renounces any interest or expectancy of the
Company in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for both the Company and Management, about which a Director and/or Officer who is also a member of Management
acquires knowledge.

49.3 To the extent a court might hold that the conduct of any activity related to a corporate opportunity that is
renounced in this Article to be a breach of duty to the Company or its Members, the Company hereby waives, to the fullest extent permitted by Applicable Law, any and all claims and causes of action that the Company may have for such activities. To
the fullest extent permitted by Applicable Law, the provisions of this Article apply equally to activities conducted in the future and that have been conducted in the past.

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| | |
|:---|:---|
| **50** | **Exclusive Jurisdiction and Forum**  |

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50.1 Unless the Company consents in writing to the selection of an alternative forum, the courts of the Cayman
Islands shall have exclusive jurisdiction over any claim or dispute arising out of or in connection with the Memorandum, the Articles or otherwise related in any way to each Member's shareholding in the Company, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any derivative action or proceeding brought on behalf of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any action asserting a claim of breach of any fiduciary or other duty owed by any current or former Director,
Officer or other employee of the Company to the Company or the Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any action asserting a claim arising pursuant to any provision of the Statute, the Memorandum or the Articles;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any action asserting a claim against the Company governed by the "Internal Affairs Doctrine" (as such
concept is recognised under the laws of the United States of America).

50.2 Each Member irrevocably submits to the exclusive jurisdiction of the courts of the Cayman Islands over all such
claims or disputes.

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50.3 Without prejudice to any other rights or remedies that the Company may have, each Member acknowledges that
damages alone would not be an adequate remedy for any breach of the selection of the courts of the Cayman Islands as exclusive forum and that accordingly the Company shall be entitled, without proof of special damages, to the remedies of injunction,
specific performance or other equitable relief for any threatened or actual breach of the selection of the courts of the Cayman Islands as exclusive forum.

U.S. Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any claim for which the federal district courts of the United States of America are, as a matter of the laws of the United States, the sole and exclusive
forum for determination of such a claim.

## Exhibit 5.1

**Exhibit 5.1**![LOGO](g543111snap3.jpg)

Our ref SMC/795764/83745666v1

Accelerant Holdings

PO Box 309, Ugland House

Grand Cayman

KY1-1104

Cayman Islands

18 July 2025

**Accelerant Holdings** 

We have acted as counsel as to Cayman Islands law to Accelerant Holdings (the "**Company**") in connection with the Company's registration statement on Form S-1, including all amendments or supplements thereto filed with the United States Securities and Exchange Commission (the "**Commission**") under the United States Securities Act of 1933, as amended (the "**Securities Act**") (including its exhibits, the "**Registration Statement**") for the purposes of registering with the Commission under the Securities Act, the offering and sale to the public of up to 33,289,473 Class A common shares of a par value of US$0.0000011951862 each of the Company (the "**Shares**") comprising (i) 20,276,280 Shares to be to be issued by the Company; and (ii) up to 13,013,193 Shares held by the selling shareholders as named therein (the "**Selling Shareholders**").

This opinion letter is given in accordance with the terms of the Legal Matters section of the Registration Statement.

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| | |
|:---|:---|
| **1** | **Documents Reviewed**  |

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We have reviewed originals, copies, drafts or conformed copies of the following documents:

1.1 The certificate of incorporation dated 6 October 2021 and the amended and restated memorandum and articles
of association of the Company as registered or adopted on 30 December 2024 (the "**Memorandum and Articles** ").

1.2 The minutes (the "**Minutes**") of the meeting of the board of directors of the Company held on
30 June 2025 (the "**Meeting**") and the corporate records of the Company maintained at its registered office in the Cayman Islands.

1.3 The written resolution of the requisite majority of shareholders of the Company dated 14 July 2025 (the
" **Shareholder Resolutions** ").

1.4 The register of members of the Company dated 18 July 2025 (the "**Register of Members** ").

![LOGO](g543111snap4.jpg)

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1.5 A certificate of good standing with respect to the Company issued by the Registrar of Companies (the
" **Certificate of Good Standing** ").

1.6 A certificate from a director of the Company a copy of which is attached to this opinion letter (the
" **Director's Certificate** ").

1.7 The Registration Statement.

1.8 A draft of the underwriting agreement between the Company and Morgan Stanley & Co. LLC, as
representative of the several underwriters named on Schedule II thereto.

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| | |
|:---|:---|
| **2** | **Assumptions**  |

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The following opinions are given only as to, and based on, circumstances and matters of fact existing and known to us on the date of this opinion letter. These opinions only relate to the laws of the Cayman Islands which are in force on the date of this opinion letter. In giving the following opinions, we have relied (without further verification) upon the completeness and accuracy, as at the date of this opinion letter, of the Director's Certificate and the Certificate of Good Standing. We have also relied upon the following assumptions, which we have not independently verified:

2.1 Copies of documents, conformed copies or drafts of documents provided to us are true and complete copies of, or
in the final forms of, the originals.

2.2 All signatures, initials and seals are genuine.

2.3 There is no contractual or other prohibition or restriction (other than as arising under Cayman Islands law)
binding on the Company prohibiting or restricting it from entering into and performing its obligations under the Registration Statement.

2.4 No invitation has been or will be made by or on behalf of the Company to the public in the Cayman Islands to
subscribe for any of the Shares.

2.5 There is nothing under any law (other than the laws of the Cayman Islands) which would or might affect the
opinions set out below. Specifically, we have made no independent investigation of the laws of the State of New York.

2.6 The Company has received or will receive money or money's worth in consideration for the issue of the
Shares and none of the Shares were or will be issued for less than par value.

Save as aforesaid we have not been instructed to undertake and have not undertaken any further enquiry or due diligence in relation to the transaction the subject of this opinion letter.

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| | |
|:---|:---|
| **3** | **Opinions**  |

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Based upon, and subject to, the foregoing assumptions and the qualifications set out below, and having regard to such legal considerations as we deem relevant, we are of the opinion that:

3.1 The Company has been duly incorporated as an exempted company with limited liability and is validly existing
and in good standing with the Registrar of Companies under the laws of the Cayman Islands.

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3.2 The Shares to be offered and issued by the Company as contemplated by the Registration Statement have been duly
authorised for issue, and when issued by the Company against payment in full of the consideration as set out in the Registration Statement and in accordance with the terms set out in the Registration Statement, such Shares will be validly issued,
fully paid and non-assessable. As a matter of Cayman Islands law, a share is only issued when it has been entered in the register of members (shareholders).

3.3 The Shares to be sold by the Selling Shareholders have been duly authorised, legally issued as fully paid and
non-assessable.

3.4 The authorised share capital of the Company is US$348.6859, consisting of 291,741,904.263226 shares of a
nominal or par value of US$0.0000011951862 each, of which: (i) 252,652,430.402498 shares are designated as Common Shares of a nominal or par value of US$0.0000011951862 each (the "**Common Shares** "), (ii) 18,074,171.0975242 shares are
designated as Class A Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class A Convertible Preference Shares** "), (iii) 2,881,475.68941596 shares are designated as Class A-1 Convertible
Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class A 1 Convertible Preference Shares** "), (iv) 12,569,756.8388263 shares are designated as Class B Convertible Preference Shares of a nominal or par value
of US$0.0000011951862 each (the "**Class B Convertible Preference Shares** "), (v) 83.66897092 shares are designated as Class B-1 Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class B-1 Convertible Preference Shares** "), (vi) 3,411,518.62017614 shares are designated as Class C Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class C Convertible Preference Shares**") and
(vii) 2,152,467.94581477 shares are designated as Class C-1 Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class C-1 Convertible Preference Shares** ").

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| | |
|:---|:---|
| **4** | **Qualifications**  |

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The opinions expressed above are subject to the following qualifications:

4.1 To maintain the Company in good standing with the Registrar of Companies under the laws of the Cayman Islands,
annual filing fees must be paid and returns made to the Registrar of Companies within the time frame prescribed by law.

4.2 Under Cayman Islands law, the register of members (shareholders) is *prima facie* evidence of title to
shares and this register would not record a third party interest in such shares. However, there are certain limited circumstances where an application may be made to a Cayman Islands court for a determination on whether the register of members
reflects the correct legal position. Further, the Cayman Islands court has the power to order that the register of members maintained by a company should be rectified where it considers that the register of members does not reflect the correct legal
position. As far as we are aware, such applications are rarely made in the Cayman Islands and there are no circumstances or matters of fact known to us on the date of this opinion letter which would properly form the basis for an application for an
order for rectification of the register of members of the Company, but if such an application were made in respect of the Shares, then the validity of such shares may be subject to re-examination by a Cayman
Islands court.

4.3 In this opinion letter the phrase "non-assessable" means,
with respect to the issuance of shares, that a shareholder shall not, in respect of the relevant shares and in the absence of a contractual arrangement, or an obligation pursuant to the memorandum and articles of association, to the contrary, have
any obligation to make further contributions to the Company's assets (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a
court may be prepared to pierce or lift the corporate veil).

4.4 We express no opinion as to the meaning, validity or effect of any references to foreign (i.e. non-Cayman Islands) statutes, rules, regulations, codes, judicial authority or any other promulgations and any references to them in the Registration Statement.

We express no view as to the commercial terms of the Registration Statement or whether such terms represent the intentions of the parties and make no comment with regard to warranties or representations that may be made by the Company.

We hereby consent to the filing of this opinion letter as an exhibit to the Registration Statement and to the reference to our firm under the heading "Legal Matters" in the prospectus included in the Registration Statement. In providing our consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the Rules and Regulations of the Commission thereunder.

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The opinions in this opinion letter are strictly limited to the matters contained in the opinions section above and do not extend to any other matters. We have not been asked to review and we therefore have not reviewed any of the ancillary documents relating to the Shares and express no opinion or observation upon the terms of any such document.

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This opinion letter is addressed to you and may be relied upon by you, your counsel and purchasers of the Shares pursuant to the Registration Statement. This opinion letter is limited to the matters detailed herein and is not to be read as an opinion with respect to any other matter.

Yours faithfully

/s/ Maples and Calder (Cayman) LLP

Maples and Calder (Cayman) LLP

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Accelerant Holdings

PO Box 309, Ugland House

Grand Cayman KY1-1104

Cayman Islands

18 July 2025

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| | |
|:---|:---|
| To: | Maples and Calder (Cayman) LLP |
|  | PO Box 309, Ugland House |
|  | Grand Cayman |
|  | KY1-1104 |
|  | Cayman Islands |

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Dear Sirs

**Accelerant Holdings** (the "**Company**")

I, the undersigned, being a director of the Company, am aware that you are being asked to provide an opinion letter (the "**Opinion**") in relation to certain aspects of Cayman Islands law. Unless otherwise defined herein, capitalised terms used in this certificate have the respective meanings given to them in the Opinion. I hereby certify that:

1 The Memorandum and Articles remain in full force and effect and are unamended.

2 The Company has not entered into any mortgages or charges over its property or assets other than those entered in the register of mortgages and charges of the Company.

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| | |
|:---|:---|
| 3 | The Minutes are a true and correct record of the proceedings of the Meeting, which was duly convened and held, and at which a quorum was present throughout, in each case, in the manner prescribed in the Memorandum and Articles. The resolutions set out in the Minutes were duly passed in the manner prescribed in the Memorandum and Articles (including, without limitation, with respect to the disclosure of interests (if any) by directors of the Company) and have not been amended, varied or revoked in any respect.  |

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4 The Shareholder Resolutions were duly passed in the manner prescribed in the Memorandum and Articles and have not been amended, varied or revoked in any respect.

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| | |
|:---|:---|
| 5 | The shareholders of the Company (the "**Shareholders**") have not restricted the powers of the directors of the Company in any way.  |

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| | |
|:---|:---|
| 6 | The authorised share capital of the Company is US$348.6859, consisting of 291,741,904.263226 shares of a nominal or par value of US$0.0000011951862 each, of which: (i) 252,652,430.402498 shares are designated as Common Shares of a nominal or par value of US$0.0000011951862 each (the "**Common Shares**"), (ii) 18,074,171.0975242 shares are designated as Class A Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class A Convertible Preference Shares**"), (iii) 2,881,475.68941596 shares are designated as Class A-1 Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class A 1 Convertible Preference Shares**"), (iv) 12,569,756.8388263 shares are designated as Class B Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class B Convertible Preference Shares**"), (v) 83.66897092 shares are designated as Class B-1 Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class B-1 Convertible Preference Shares**"), (vi) 3,411,518.62017614 shares are designated as Class C Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class C Convertible Preference Shares**") and (vii) 2,152,467.94581477 shares are designated as Class C-1 Convertible Preference Shares of a nominal or par value of US$0.0000011951862 each (the "**Class C-1 Convertible Preference Shares**").  |

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| | |
|:---|:---|
| 7 | The minute book and corporate records of the Company as maintained at its registered office in the Cayman Islands and made available to you are complete and accurate in all material respects, and all minutes and resolutions filed therein represent a complete and accurate record of all meetings of the Shareholders and directors (or any committee thereof) of the Company (duly convened in accordance with the Memorandum and Articles) and all resolutions passed at the meetings or passed by written resolution or consent, as the case may be.  |

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| | |
|:---|:---|
| 8 | Prior to, at the time of, and immediately following the approval of the transactions the subject of the Registration Statement the Company was, or will be, able to pay its debts as they fell, or fall, due and has entered, or will enter, into the transactions the subject of the Registration Statement for proper value and not with an intention to defraud or wilfully defeat an obligation owed to any creditor or with a view to giving a creditor a preference.  |

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| | |
|:---|:---|
| 9 | Each director of the Company considers the transactions contemplated by the Registration Statement to be of commercial benefit to the Company and has acted in good faith in the best interests of the Company, and for a proper purpose of the Company, in relation to the transactions which are the subject of the Opinion.  |

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| | |
|:---|:---|
| 10 | To the best of my knowledge and belief, having made due inquiry, the Company is not the subject of legal, arbitral, administrative or other proceedings in any jurisdiction. Nor have the directors or Shareholders taken any steps to have the Company struck off or placed in liquidation, nor have any steps been taken to wind up the Company. Nor has any receiver been appointed over any of the Company's property or assets.  |

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I confirm that you may continue to rely on this certificate as being true and correct on the day that you issue the Opinion unless I shall have previously notified you in writing personally to the contrary.

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| | |
|:---|:---|
| Signature: | /s/ Samuel Gaynor |
| Name: | Samuel Gaynor |
| Title: | Director |

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## Exhibit 10.5

**Exhibit 10.5** 

**ACCELERANT SHARE INCENTIVE PLAN** 

**(As Amended and Restated on <u> </u>, 2025)** 

**I. INTRODUCTION** 

**1.1 Purposes**. The purposes of the Accelerant Share Incentive Plan (this "<u>Plan</u>") are (i) to align the interests of the Company's shareholders and the recipients of awards under this Plan by increasing the proprietary interest of such recipients in the Company's growth and success, (ii) to advance the interests of the Company by attracting and retaining Non-Employee Directors, officers, other employees, consultants, independent contractors and agents and (iii) to motivate such persons to act in the long-term best interests of the Company and its shareholders.

**1.2 Certain Definitions.**

**"<u>Agreement</u>"** shall mean the written or electronic agreement evidencing an award hereunder between the Company and the recipient of such award.

**"<u>Board</u>"** shall mean the Board of Directors of the Company.

**"<u>Change in Control</u>"** shall have the meaning set forth in <u>Section</u> <u>5.8(b)</u>.

**"<u>Code</u>"** shall mean the Internal Revenue Code of 1986, as amended.

**"<u>Committee</u>"** shall mean the Compensation Committee of the Board, or a subcommittee thereof, or such other committee designated by the Board, in each case, consisting of two or more members of the Board, each of whom is intended to be (i) a "Non-Employee Director" within the meaning of Rule 16b-3 under the Exchange Act and (ii) "independent" within the meaning of the rules of the New York Stock Exchange or, if Common Shares are not listed on the New York Stock Exchange, within the meaning of the rules of the principal stock exchange on which the Common Shares are then traded.

**"<u>Common Shares</u>"** shall mean the Common Shares, par value US$0.0000011951862 per share, of the Company, and all rights appurtenant thereto.

**"<u>Company</u>"** shall mean Accelerant Holdings, an exempted company incorporated with limited liability under the laws of the Cayman Islands, or any successor thereto.

**"<u>Data</u>"** shall have the meaning set forth in <u>Section</u> <u>5.15</u>.

**"<u>Exchange Act</u>"** shall mean the Securities Exchange Act of 1934, as amended.

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**"<u>Fair Market Value</u>"** shall mean the closing transaction price of a Common Share as reported on the New York Stock Exchange on the date as of which such value is being determined or, if the Common Shares are not listed on the New York Stock Exchange, the closing transaction price of a Common Share on the principal national stock exchange on which the Common Shares are traded on the date as of which such value is being determined or, if there shall be no reported transactions for such date, on the next preceding date for which transactions were reported; <u>provided</u>, <u>however</u>, that if the Common Shares are not listed on a national stock exchange or if Fair Market Value for any date cannot be so determined, Fair Market Value shall be determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion, shall at such time deem appropriate and in compliance with Section 409A of the Code; <u>provided</u>, <u>further</u>, in the case of grants made in connection with the Initial Public Offering, Fair Market Value shall mean a price per share that is no less than the price per share at which Common Shares are initially offered for sale to the public by the Company's underwriters in the Initial Public Offering.

**"<u>Free-Standing SAR</u>"** shall mean an SAR which is not granted in tandem with, or by reference to, an option, which entitles the holder thereof to receive, upon exercise, Common Shares (which may be Restricted Shares) or, to the extent set forth in the applicable Agreement, cash or a combination thereof, with an aggregate value equal to the excess of the Fair Market Value of one (1) Share on the date of exercise over the base price of such SAR, multiplied by the number of such SARs which are exercised.

**"<u>Incentive Share Option</u>"** shall mean an option to purchase Common Shares that meets the requirements of Section 422 of the Code, or any successor provision, which is intended by the Committee to constitute an Incentive Share Option.

**"<u>Initial Public Offering</u>"** shall mean the initial public offering of the Company registered on Form S-1 (or any successor form under the Securities Act of 1933, as amended).

**"<u>Non-Employee Director</u>"** shall mean any director of the Company who is not an officer or employee of the Company or any Subsidiary.

**"<u>Nonqualified Share Option</u>"** shall mean an option to purchase Common Shares which is not an Incentive Share Option.

**"<u>Other Share Award</u>"** shall mean an award granted pursuant to <u>Section</u> <u>3.4</u> of the Plan.

**"<u>Performance Award</u>"** shall mean a right to receive an amount of cash, Common Shares, or a combination of both, contingent upon the attainment of specified Performance Measures within a specified Performance Period.

**"<u>Performance Measures</u>"** shall mean the criteria and objectives, established by the Committee, which shall be satisfied or met (i) as a condition to the grant or exercisability of all or a portion of an option or SAR or (ii) during the applicable Restriction Period or Performance Period as a condition to the vesting of the holder's interest, in the case of a Restricted Shares Award, of the Common Shares subject to such award, or, in the case of a Restricted Share Unit Award, Other Share Award or Performance Award, to the holder's receipt of the Common Shares

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subject to such award or of payment with respect to such award. One or more of the following business criteria for the Company, on a consolidated basis, and/or for specified Subsidiaries, business or geographical units or operating areas of the Company (except with respect to the total shareholder return and earnings per share criteria) or individual basis, may be used by the Committee in establishing Performance Measures under this Plan: the attainment by a Common Share of a specified Fair Market Value for a specified period of time; increase in shareholder value; earnings per share; return on or net assets; return on equity; return on investments; return on capital or invested capital; total shareholder return; earnings or income of the Company before or after taxes and/or interest; earnings before interest, taxes, depreciation and amortization ("<u>EBITDA</u>"); EBITDA margin; operating income; revenues; operating expenses, attainment of expense levels or cost reduction goals; market share; cash flow, cash flow per share, cash flow margin or free cash flow; interest expense; economic value created; gross profit or margin; operating profit or margin; net cash provided by operations; price-to-earnings growth; and strategic business criteria, consisting of one or more objectives based on meeting specified goals relating to market penetration, customer acquisition, business expansion, cost targets, customer satisfaction, reductions in errors and omissions, reductions in lost business, management of employment practices and employee benefits, supervision of litigation, supervision of information technology, quality and quality audit scores, efficiency, commercial launch of new products, completion of projects, and closing of acquisitions, divestitures, financings or other transactions, or such other goals as the Committee may determine whether or not listed herein. Each such goal may be determined on a pre-tax or post-tax basis or on an absolute or relative basis, and may include comparisons based on current internal targets, the past performance of the Company (including the performance of one or more Subsidiaries, divisions, or operating units) or the past or current performance of other companies or market indices (or a combination of such past and current performance). In addition to the ratios specifically enumerated above, performance goals may include comparisons relating to capital (including, but not limited to, the cost of capital), shareholders' equity, shares outstanding, assets or net assets, sales, or any combination thereof. In establishing a Performance Measure or determining the achievement of a Performance Measure, the Committee may provide that achievement of the applicable Performance Measures may be amended or adjusted to include or exclude components of any Performance Measure, including, without limitation, foreign exchange gains and losses, asset write-downs, acquisitions and divestitures, change in fiscal year, unbudgeted capital expenditures, special charges such as restructuring or impairment charges, debt refinancing costs, extraordinary or noncash items, unusual, infrequently occurring, nonrecurring or one-time events affecting the Company or its financial statements or changes in law or accounting principles. Performance Measures shall be subject to such other special rules and conditions as the Committee may establish at any time.

**"<u>Performance Period</u>"** shall mean any period designated by the Committee during which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Performance Measures applicable to an award shall be measured and (ii) the conditions to vesting applicable to an award shall remain in effect.

**"<u>Person</u>"** shall have the meaning set forth in <u>Section</u> <u>5.8</u>.

**"<u>Restricted Shares</u>"** shall mean Common Shares which are subject to a Restriction Period and which may, in addition thereto, be subject to the attainment of specified Performance Measures within a specified Performance Period.

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**"<u>Restricted Shares Award</u>"** shall mean an award of Restricted Shares under this Plan.

**"<u>Restricted Share Unit</u>"** shall mean a right to receive one (1) Common Share or, in lieu thereof and to the extent set forth in the applicable Agreement, the Fair Market Value of such Common Share in cash, which shall be contingent upon the expiration of a specified Restriction Period and which may, in addition thereto, be contingent upon the attainment of specified Performance Measures within a specified Performance Period.

**"<u>Restricted Share Unit Award</u>"** shall mean an award of Restricted Share Units under this Plan.

**"<u>Restriction Period</u>"** shall mean any period designated by the Committee during which (i) the Common Shares subject to a Restricted Shares Award may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or the Agreement relating to such award, or (ii) the conditions to vesting applicable to a Restricted Share Unit Award or Other Share Award shall remain in effect.

**"<u>SAR</u>"** shall mean a Share appreciation right which may be a Free-Standing SAR or a Tandem SAR.

**"<u>Share Award</u>"** shall mean a Restricted Shares Award, Restricted Share Unit Award or Other Share Award.

**"<u>Subsidiary</u>"** shall mean any corporation, limited liability company, partnership, joint venture or similar entity in which the Company owns, directly or indirectly, an equity interest possessing more than 50% of the combined voting power of the total outstanding equity interests of such entity.

**"<u>Substitute Award</u>"** shall mean an award granted under this Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, including a merger, combination, consolidation or acquisition of property or stock, or upon the substitution of Restricted Shares Awards for outstanding profits interests and similar awards with respect to Accelerant Holdings LP in connection with the Initial Public Offering; <u>provided</u>, <u>however</u>, that in no event shall the term "Substitute Award" be construed to refer to an award made in connection with the cancellation and repricing of an option or SAR.

**"<u>Tandem SAR</u>"** shall mean an SAR which is granted in tandem with, or by reference to, an option (including a Nonqualified Share Option granted prior to the date of grant of the SAR), which entitles the holder thereof to receive, upon exercise of such SAR and surrender for cancellation of all or a portion of such option, Common Shares (which may be Restricted Shares) or, to the extent set forth in the applicable Agreement, cash or a combination thereof, with an aggregate value equal to the excess of the Fair Market Value of one (1) Common Share on the date of exercise over the base price of such SAR, multiplied by the number of Common Shares subject to such option, or portion thereof, which is surrendered.

**"<u>Tax Date</u>"** shall have the meaning set forth in <u>Section</u> <u>5.5</u>.

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**"<u>Ten Percent Holder</u>"** shall have the meaning set forth in <u>Section</u> <u>2.1(a)</u>.

**1.3 Administration**. This Plan shall be administered by the Committee. Any one or a combination of the following awards may be made under this Plan to eligible persons: (i) options to purchase Common Shares in the form of Incentive Share Options or Nonqualified Share Options; (ii) SARs in the form of Tandem SARs or Free-Standing SARs; (iii) Share Awards in the form of Restricted Shares, Restricted Share Units or Other Share Awards; and (iv) Performance Awards. The Committee shall, subject to the terms of this Plan, select eligible persons for participation in this Plan and determine the form, amount and timing of each award to such persons and, if applicable, the number of Common Shares subject to an award, the number of SARs, the number of Restricted Share Units, the dollar value subject to a Performance Award, the purchase price or base price associated with the award, the time and conditions of exercise or settlement of the award and all other terms and conditions of the award, including, without limitation, the form of the Agreement evidencing the award. The Committee may, in its sole discretion and for any reason at any time, take action such that (i) any or all outstanding options and SARs shall become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable to any outstanding awards shall lapse, (iii) all or a portion of the Performance Period applicable to any outstanding awards shall lapse and (iv) the Performance Measures (if any) applicable to any outstanding awards shall be deemed to be satisfied at the target, maximum or any other level. The Committee shall, subject to the terms of this Plan, interpret this Plan and the application thereof, establish rules and regulations it deems necessary or desirable for the administration of this Plan and may impose, incidental to the grant of an award, conditions with respect to the award, such as limiting competitive employment or other activities. All such interpretations, rules, regulations and conditions shall be conclusive and binding on all parties.

The Committee may delegate some or all of its power and authority hereunder to the Board (or any members thereof) or, subject to applicable law, to a subcommittee of the Board, a member of the Board, the Chief Executive Officer or other executive officer of the Company as the Committee deems appropriate; <u>provided</u>, <u>however</u>, that the Committee may not delegate its power and authority to a member of the Board, the Chief Executive Officer or other executive officer of the Company with regard to the selection for participation in this Plan of an officer, director or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an award to such an officer, director or other person.

No member of the Board or Committee, and neither the Chief Executive Officer nor any other executive officer to whom the Committee delegates any of its power and authority hereunder, shall be liable for any act, omission, interpretation, construction or determination made in connection with this Plan in good faith, and the members of the Board and the Committee and the Chief Executive Officer or other executive officer shall be entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including attorneys' fees) arising therefrom to the full extent permitted by law (except as otherwise may be provided in the Company's Certificate of Incorporation and/or By-laws) and under any directors' and officers' liability insurance that may be in effect from time to time.

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**1.4 Eligibility**. Participants in this Plan shall consist of such officers, other employees, Non- Employee Directors, consultants, independent contractors, agents, and persons expected to become officers, other employees, Non-Employee Directors, consultants, independent contractors and agents of the Company and its Subsidiaries as the Committee in its sole discretion may select from time to time, provided such persons are eligible to receive awards of Common Shares that are registered on a Form S-8 registration statement. Participants shall also consist of persons to whom Restricted Shares Awards are granted in substitution for unvested profits interests and similar awards with respect to Accelerant Holdings LP in connection with the transactions relating to the Initial Public Offering. The Committee's selection of a person to participate in this Plan at any time shall not require the Committee to select such person to participate in this Plan at any other time. Except as otherwise provided for in an Agreement, for purposes of this Plan, references to employment by the Company shall also mean employment by a Subsidiary, and references to employment shall include service as a Non-Employee Director, consultant, independent contractor or agent. The Committee shall determine, in its sole discretion, the extent to which a participant shall be considered employed during an approved leave of absence. The aggregate value of cash compensation and the grant date fair value of Shares that may be awarded or granted during any fiscal year of the Company to any Non-Employee Director, for his or her services as a Non-Employee Director, shall not exceed $1,000,000; provided, however, that this limit shall not apply to distributions of previously deferred compensation under a deferred compensation plan maintained by the Company or compensation received by the director in his or her capacity as an executive officer or employee of the Company.

**1.5 Shares Available**. Subject to adjustment as provided in <u>Section</u> <u>5.7</u> and to all other limits set forth in this Plan, 35,000,000 Shares shall initially be available for all awards under this Plan (including, without limitation, Incentive Share Options but excluding Substitute Awards). The number of Shares in the aggregate which may be issued under the Plan in connection with Incentive Share Options shall be subject to adjustment as provided in <u>Section</u> <u>5.7</u>. The number of Shares available under the Plan shall increase annually on the first day of each calendar year, beginning with the calendar year ending December 31, 2026, and continuing until (and including) the calendar year ending December 31, 2035, with such annual increase equal to the lesser of (i) 3% of the number of Shares issued on December 31 of the immediately preceding fiscal year and (ii) an amount determined by the Board. The number of Shares that remain available for future grants under the Plan shall be reduced by the sum of the aggregate number of Shares that become subject to outstanding options, outstanding Free-Standing SARs, outstanding Share Awards and outstanding Performance Awards denominated in Common Shares, other than Substitute Awards.

To the extent that Common Shares subject to an outstanding option, SAR, Share Award or Performance Award granted under the Plan, other than Substitute Awards, are not issued or delivered by reason of (i) the expiration, termination, cancellation or forfeiture of such award (excluding Common Shares subject to an option cancelled upon settlement in Common Shares of a related Tandem SAR or Common Shares subject to a Tandem SAR cancelled upon exercise of a related option) or (ii) the settlement of such award in cash, then such Common Shares shall again be available under this Plan. In addition, Common Shares subject to an award under this Plan shall again be available for issuance under this Plan if such Common Shares are (x) Common Shares that were subject to an option or stock-settled SAR and were not issued or delivered upon the net settlement or net exercise of such option or SAR or (y) Common Shares

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delivered to or withheld by the Company to pay the purchase price or the withholding taxes related to an outstanding award. Notwithstanding the foregoing, Common Shares repurchased by the Company on the open market with the proceeds of an option exercise shall not again be available for issuance under this Plan.

The number of Common Shares available for awards under this Plan shall not be reduced by (i) the number of Common Shares subject to Substitute Awards or (ii) available shares under a shareholder approved plan of a company or other entity which was a party to a corporate transaction with the Company (as appropriately adjusted to reflect such corporate transaction) which become subject to awards granted under this Plan (subject to applicable stock exchange requirements).

Common Shares to be delivered under this Plan shall be made available from authorized and unissued Common Shares, or authorized and issued Common Shares reacquired and held as treasury shares or otherwise or a combination thereof.

**II. SHARE OPTIONS AND SHARE APPRECIATION RIGHTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Share Options**. The Committee may, in its discretion, grant options to purchase Common Shares to such eligible persons as may be selected by the Committee. Each option, or portion thereof, that is not an Incentive Share Option, shall be a Nonqualified Share Option. To the extent that the aggregate Fair Market Value (determined as of the date of grant) of Common Shares with respect to which options designated as Incentive Share Options are exercisable for the first time by a participant during any calendar year (under this Plan or any other plan of the Company, or any parent or Subsidiary) exceeds the amount (currently $100,000) established by the Code, such options shall constitute Nonqualified Share Options. Options shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Common Shares and Purchase Price</u>. The number of Common Shares subject to an option and the purchase price per Common Share purchasable upon exercise of the option shall be determined by the Committee; <u>provided</u>, <u>however</u>, that the purchase price per Common Share purchasable upon exercise of an option shall not be less than 100% of the Fair Market Value of a Common Share on the date of grant of such option; <u>provided</u> <u>further</u>, that if an Incentive Share Option shall be granted to any person who, at the time such option is granted, owns capital stock possessing more than 10 percent of the total combined voting power of all classes of capital stock of the Company (or of any parent or Subsidiary) (a "<u>Ten Percent Holder</u>"), the purchase price per Common Share shall not be less than the price (currently 110% of Fair Market Value) required by the Code in order to constitute an Incentive Share Option.

Notwithstanding the foregoing, in the case of an option that is a Substitute Award, the purchase price per share of the Common Shares subject to such option may be less than 100% of the Fair Market Value per Common Share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the Shares subject to the Substitute Award, over (b) the aggregate purchase price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the

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transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate purchase price of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Option Period and Exercisability</u>. The period during which an option may be exercised shall be determined by the Committee; <u>provided</u>, <u>however</u>, that no option shall be exercised later than 10 years after its date of grant; <u>provided</u> <u>further</u>, that if an Incentive Share Option shall be granted to a Ten Percent Holder, such option shall not be exercised later than five (5) years after its date of grant. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an option or to the exercisability of all or a portion of an option. The Committee shall determine whether an option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An exercisable option, or portion thereof, may be exercised only with respect to whole Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Method of Exercise</u>. An option may be exercised (i) by giving written notice to the Company specifying the number of whole Common Shares to be purchased and accompanying such notice with payment therefor in full (or arrangement made for such payment to the Company's satisfaction) either (A) in cash or check, (B) by delivery (either actual delivery or by attestation procedures established by the Company) of Common Shares having a Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise, (C) authorizing the Company to withhold whole Common Shares which would otherwise be delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such obligation, (D) in cash by a broker-dealer acceptable to the Company to whom the participant has submitted an irrevocable notice of exercise, (E) such other methods permitted by applicable law, or (F) a combination of the foregoing, in each case, to the extent set forth in the Agreement relating to the option, (ii) if applicable, by surrendering to the Company any Tandem SARs which are cancelled by reason of the exercise of the option and (iii) by executing such documents as the Company may reasonably request. Any fraction of a Common Share which would be required to pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash by the participant. No Common Shares shall be issued and no certificate representing Common Shares shall be delivered until the full purchase price therefor and any withholding taxes thereon, as described in <u>Section</u> <u>5.5</u>, have been paid (or arrangement made for such payment to the Company's satisfaction).

**2.2 Share Appreciation Rights**. The Committee may, in its discretion, grant SARs to such eligible persons as may be selected by the Committee. The Agreement relating to an SAR shall specify whether the SAR is a Tandem SAR or a Free-Standing SAR.

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SARs shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of SARs and Base Price</u>. The number of SARs subject to an award shall be determined by the Committee. Any Tandem SAR related to an Incentive Share Option shall be granted at the same time that such Incentive Share Option is granted. The base price of a Tandem SAR shall be the purchase price per Common Share of the related option. The base price of a Free- Standing SAR shall be determined by the Committee; <u>provided</u>, <u>however</u>, that such base price shall not be less than 100% of the Fair Market Value of a Common Share on the date of grant of such SAR (or, if earlier, the date of grant of the option for which the SAR is exchanged or substituted).

Notwithstanding the foregoing, in the case of an SAR that is a Substitute Award, the base price per share of the Common Shares subject to such SAR may be less than 100% of the Fair Market Value per Common Share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the Common Shares subject to the Substitute Award, over (b) the aggregate base price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate base price of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Period and Exercisability</u>. The period for the exercise of an SAR shall be determined by the Committee; <u>provided</u>, <u>however</u>, that (i) no Tandem SAR shall be exercised later than the expiration, cancellation, forfeiture or other termination of the related option and (ii) no Free-Standing SAR shall be exercised later than 10 years after its date of grant. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an SAR or to the exercisability of all or a portion of an SAR. The Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and in part or in full at any time. An exercisable SAR, or portion thereof, may be exercised, in the case of a Tandem SAR, only with respect to whole Common Shares and, in the case of a Free-Standing SAR, only with respect to a whole number of SARs. If an SAR is exercised for Restricted Shares, a certificate or certificates representing such Restricted Shares shall be issued in accordance with <u>Section</u> <u>3.2(c)</u>, or such Shares shall be transferred to the holder in book entry form with restrictions on the shares duly noted, and the holder of such Restricted Shares shall have such rights of a shareholder of the Company as determined pursuant to <u>Section</u> <u>3.2(d)</u>. Prior to the exercise of a share-settled SAR, the holder of such SAR shall have no rights as a shareholder of the Company with respect to the Common Shares subject to such SAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Method of Exercise</u>. A Tandem SAR may be exercised (i) by giving written notice to the Company specifying the number of whole SARs which are being exercised, (ii) by surrendering to the Company any options which are cancelled by reason of the exercise of the Tandem SAR and (iii) by executing such documents as the Company may reasonably request. A Free-Standing SAR may be exercised (A) by giving written notice to the Company specifying the whole number of SARs which are being exercised and (B) by executing such documents as the Company may reasonably request. No Common Shares shall be issued and no certificate representing Common Shares shall be delivered until any withholding taxes thereon, as described in <u>Section</u> <u>5.5</u>, have been paid (or arrangement made for such payment to the Company's satisfaction).

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**2.3 <u>Termination of Employment or Service</u>**. All of the terms relating to the exercise, cancellation or other disposition of an option or SAR (i) upon a termination of employment with or service to the Company of the holder of such option or SAR, as the case may be, whether by reason of termination, resignation, disability, retirement, death or any other reason, or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

**2.4 <u>Repricing</u>**. The Committee shall have the discretion, without the approval of the shareholders of the Company, to (i) reduce the purchase price or base price of any previously granted option or SAR, (ii) cancel any previously granted option or SAR in exchange for another option or SAR with a lower purchase price or base price or (iii) cancel any previously granted option or SAR in exchange for cash or another award if the purchase price of such option or the base price of such SAR exceeds the Fair Market Value of a Common Share on the date of such cancellation.

**2.5 <u>No Dividend Equivalents</u>.** Notwithstanding anything in an Agreement to the contrary, the holder of an option or SAR shall not be entitled to receive dividend equivalents with respect to the number of Common Shares subject to such option or SAR.

**III. SHARE AWARDS** 

**3.1 Share Awards**. The Committee may, in its discretion, grant Share Awards to such eligible persons as may be selected by the Committee. The Agreement relating to a Share Award shall specify whether the Share Award is a Restricted Shares Award, a Restricted Share Unit Award or, in the case of an Other Share Award, the type of award being granted.

**3.2 Terms of Restricted Shares Awards**. Restricted Shares Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares and Other Terms</u>. The number of Common Shares subject to a Restricted Shares Award and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Shares Award shall be determined by the Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Forfeiture</u>. The Agreement relating to a Restricted Shares Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of the Common Shares subject to such award (i) if the holder of such award remains continuously in the employment of the Company during the specified Restriction Period or (ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the Common Shares subject to such award (x) if the holder of such award does not remain continuously in the employment of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Share Issuance</u>. During the Restriction Period, the Common Shares of Restricted Shares shall be held by a custodian in book entry form with restrictions on such Common Shares duly noted or, alternatively, a certificate or certificates representing a Restricted Shares Award shall be registered in the holder's name and may bear a legend, in addition to any legend which may be required pursuant to <u>Section</u> <u>5.6</u>, indicating that the ownership of the Common Shares represented by such certificate is subject to the restrictions, terms and conditions of this Plan and the Agreement relating to the Restricted Shares Award. All such certificates shall be deposited with the Company, together with stock powers or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate, which would permit transfer to the Company of all or a portion of the Common Shares subject to the Restricted Shares Award in the event such award is forfeited in whole or in part. Upon termination of any applicable Restriction Period (and the satisfaction or attainment of applicable Performance Measures), subject to the Company's right to require payment of any taxes in accordance with <u>Section</u> <u>5.5</u>, the restrictions shall be removed from the requisite number of any Common Shares that are held in book entry form, and all certificates evidencing ownership of the requisite number of Common Shares shall be delivered to the holder of such award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Rights with Respect to Restricted Shares Awards</u>. Unless otherwise set forth in the Agreement relating to a Restricted Shares Award, and subject to the terms and conditions of a Restricted Shares Award, the holder of such award shall have all rights as a stockholder of the Company, including, but not limited to, voting rights, the right to receive dividends and the right to participate in any capital adjustment applicable to all holders of Common Shares; <u>provided</u>, <u>however</u>, that a distribution or dividend with respect to Common Shares other than Common Shares subject to Substitute Awards, including a regular cash dividend, shall be deposited with the Company and shall be subject to the same restrictions as the Common Shares with respect to which such distribution was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section 83(b) Election</u>. If a participant makes an election under Section 83(b) of the Code (or a comparable provision of the laws of another jurisdiction) to be taxed with respect to the Restricted Shares as of the date of transfer of the Restricted Shares rather than as of the date or dates upon which such participant would otherwise be taxable under Section 83(a) of the Code, such participant shall be required to deliver a copy of such election to the Company promptly after filing such election with the Internal Revenue Service along with proof of the timely filing thereof.

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**3.3 Terms of Restricted Share Unit Awards.** Restricted Share Unit Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares and Other Terms</u>. The number of Common Shares subject to a Restricted Share Unit Award, including the number of shares that are earned upon the attainment of any specified Performance Measures, and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Share Unit Award shall be determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Forfeiture</u>. The Agreement relating to a Restricted Share Unit Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such Restricted Share Unit Award (i) if the holder of such award remains continuously in the employment of the Company during the specified Restriction Period or (ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the Common Shares subject to such award (x) if the holder of such award does not remain continuously in the employment of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement of Vested Restricted Share Unit Awards</u>. The Agreement relating to a Restricted Share Unit Award shall specify (i) whether such award may be settled in Common Shares or cash or a combination thereof and (ii) whether the holder thereof shall be entitled to receive, on a current or deferred basis, dividend equivalents, and, if determined by the Committee, interest on, or the deemed reinvestment of, any deferred dividend equivalents, with respect to the number of Common Shares subject to such award. Any dividend equivalents with respect to Restricted Share Units shall be subject to the same vesting conditions as the underlying awards. Prior to the settlement of a Restricted Share Unit Award, the holder of such award shall have no rights as a shareholder of the Company with respect to the Common Shares subject to such award.

**3.4 Other Share Awards**. Subject to the limitations set forth in the Plan, the Committee is authorized to grant other awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Common Shares, including without limitation Common Shares granted as a bonus and not subject to any vesting conditions, dividend equivalents, deferred share units, Common Share purchase rights and Common Shares issued in lieu of obligations of the Company to pay cash under any compensatory plan or arrangement, subject to such terms as shall be determined by the Committee. The Committee shall determine the terms and conditions of such awards, which may include the right to elective deferral thereof, subject to such terms and conditions as the Committee may specify in its discretion. Any distribution, dividend or dividend equivalents with respect to Other Share Awards shall be subject to the same vesting conditions as the underlying awards.

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**3.5 Termination of Employment or Service.** All of the terms relating to the satisfaction of Performance Measures and the termination of the Restriction Period or Performance Period relating to a Share Award, or any forfeiture and cancellation of such award (i) upon a termination of employment with or service to the Company of the holder of such award, whether by reason of termination, resignation, disability, retirement, death or any other reason, or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

**IV. PERFORMANCE AWARDS** 

**4.1 Performance Awards**. The Committee may, in its discretion, grant Performance Awards to such eligible persons as may be selected by the Committee.

**4.2 Terms of Performance Awards.** Performance Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Value of Performance Awards and Performance Measures</u>. The method of determining the value of the Performance Award and the Performance Measures and Performance Period applicable to a Performance Award shall be determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting and Forfeiture</u>. The Agreement relating to a Performance Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such Performance Award if the specified Performance Measures are satisfied or met during the specified Performance Period and for the forfeiture of such award if the specified Performance Measures are not satisfied or met during the specified Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement of Vested Performance Awards</u>. The Agreement relating to a Performance Award shall specify whether such award may be settled in Common Shares (including Restricted Shares) or cash or a combination thereof. If a Performance Award is settled in Restricted Shares, such Restricted Shares shall be issued to the holder in book entry form or a certificate or certificates representing such Restricted Shares shall be issued in accordance with <u>Section</u> <u>3.2(c)</u> and the holder of such Restricted Shares shall have such rights as a shareholder of the Company as determined pursuant to <u>Section</u> <u>3.2(d)</u>. Any dividends or dividend equivalents with respect to a Performance Award shall be subject to the same vesting restrictions as such Performance Award. Prior to the settlement of a Performance Award in Common Shares, including Restricted Shares, the holder of such award shall have no rights as a shareholder of the Company.

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**4.3 Termination of Employment or Service**. All of the terms relating to the satisfaction of Performance Measures and the termination of the Performance Period relating to a Performance Award, or any forfeiture and cancellation of such award (i) upon a termination of employment with or service to the Company of the holder of such award, whether by reason of termination, resignation, disability, retirement, death or any other reason, or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

**V. GENERAL** 

**5.1 Effective Date and Term of Plan**. This Plan was originally adopted on May 29, 2023 and became effective as of such date. This Plan, as amended and restated, was submitted to shareholders of the Company for approval on ______ __, 2025 and became effective as of the date of such approval (the "Amended and Restated Effective Date"). This Plan shall terminate on the 10th anniversary of the Amended and Restated Effective Date, unless terminated earlier by the Board. Termination of this Plan shall not affect the terms or conditions of any award granted prior to termination.

Awards hereunder may be made at any time prior to the termination of this Plan, provided that no Incentive Share Option may be granted later than 10 years after the date on which the Plan, as amended and restated, was approved by the Board.

**5.2 Amendments**. The Board or, subject to applicable law, the Committee may amend, modify, or terminate this Plan or any Agreement as it shall deem advisable; <u>provided</u>, <u>however</u>, that no amendment to the Plan or any Agreement shall be effective without the approval of the Company's shareholders if (i) shareholder approval is required by applicable law, rule or regulation, including any rule of the New York Stock Exchange or any other stock exchange on which the Common Shares are then traded, or (ii) such amendment seeks to modify the Non-Employee Director compensation limit set forth in <u>Section</u> <u>1.3</u>; provided further, that no amendment may materially impair the rights of a holder of an outstanding award without the consent of such holder. Notwithstanding anything herein to the contrary, the Board may amend the Plan or any Agreement at any time without the consent of a holder of an outstanding award to company with applicable law, including Section 409A of the Code.

**5.3 Agreement**. Each award under this Plan shall be evidenced by an Agreement setting forth the terms and conditions applicable to such award. No award shall be valid until an Agreement is executed by the Company and, to the extent required by the Company, executed or electronically accepted by the recipient of such award. Upon such execution or acceptance and delivery of the Agreement to the Company within the time period specified by the Company, such award shall be effective as of the effective date set forth in the Agreement.

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**5.4 Non-Transferability.** No award shall be transferable other than by will, the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or, to the extent expressly permitted in the Agreement relating to such award, to the holder's family members, a trust or entity established by the holder for estate planning purposes, a charitable organization designated by the holder or pursuant to a domestic relations order, in each case, without consideration. Except to the extent permitted by the foregoing sentence or the Agreement relating to an award, each award may be exercised or settled during the holder's lifetime only by the holder or the holder's legal representative or similar person. Except as permitted by the second preceding sentence, no award may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any award, such award and all rights thereunder shall immediately become null and void.

**5.5 Tax Withholding**. The Company shall have the right to require, prior to the issuance or delivery of any Common Shares or the payment of any cash pursuant to an award made hereunder, payment by the holder of such award of any federal, state, local or other taxes which may be required to be withheld or paid in connection with such award. An Agreement may provide that (i) the Company shall withhold whole Common Shares which would otherwise be delivered to a holder, having an aggregate Fair Market Value determined as of the date the obligation to withhold or pay taxes arises in connection with an award (the "<u>Tax Date</u>"), or withhold an amount of cash which would otherwise be payable to a holder, in the amount necessary to satisfy any such obligation or (ii) the holder may satisfy any such obligation by any of the following means: (A) a cash or check payment to the Company; (B) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of previously owned whole Common Shares having an aggregate Fair Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation; (C) authorizing the Company to withhold whole Common Shares which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to a holder, in either case equal to the amount necessary to satisfy any such obligation; (D) a cash payment by a broker-dealer acceptable to the Company to whom the participant has submitted an irrevocable notice of exercise or sale, (E) such other methods permitted by applicable law, or (F) a combination of the foregoing, in each case to the extent set forth in the Agreement relating to the award. Common Shares to be delivered or withheld may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate (or, if permitted by the Company, such other rate as will not cause adverse accounting consequences under the accounting rules then in effect, and is permitted under applicable Internal Revenue Service withholding rules). Any fraction of a Common Share which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the holder.

**5.6 Restrictions on Shares**. Each award made hereunder shall be subject to the requirement that if at any time the Company determines that the listing, registration or qualification of the Common Shares subject to such award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the delivery of shares thereunder, such shares

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shall not be delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company may require that certificates evidencing Common Shares delivered pursuant to any award made hereunder bear a legend indicating that the sale, transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder.

**5.7 Adjustment**. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation — Stock Compensation or any successor or replacement accounting standard) that causes the per share value of Common Shares to change, such as a stock dividend, stock split, spinoff, rights offering or recapitalization through an extraordinary cash dividend, the number and class of securities available under this Plan, the terms of each outstanding option and SAR (including the number and class of securities subject to each outstanding option or SAR and the purchase price or base price per share), the terms of each outstanding Share Award (including the number and class of securities subject thereto), and the terms of each outstanding Performance Award (including the number and class of securities subject thereto, if applicable), shall be appropriately adjusted by the Committee, such adjustments to be made in the case of outstanding options and SARs in accordance with Section 409A of the Code. In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights of participants. In either case, the decision of the Committee regarding any such adjustment shall be final, binding and conclusive.

**5.8 Change in Control**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of the applicable Agreements, in the event of a "Change in Control," the Board, as constituted prior to the Change in Control, may, in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) require that (i) some or all outstanding options and SARs shall become exercisable in full or in part,
either immediately or upon a subsequent termination of employment, (ii) the Restriction Period applicable to some or all outstanding Share Awards shall lapse in full or in part, either immediately or upon a subsequent termination of employment,
(iii) the Performance Period applicable to some or all outstanding awards shall lapse in full or in part, and (iv) the Performance Measures applicable to some or all outstanding awards shall be deemed to be satisfied at the target, maximum
or any other level;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) require that shares of capital stock of the corporation resulting from or succeeding to the business of the
Company pursuant to such Change in Control (or a parent corporation thereof) or other property be substituted for some or all of the Common Shares subject to an outstanding award, with an appropriate and equitable adjustment to such award as
determined by the Board in accordance with <u>Section</u> <u>5.7</u>; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) require outstanding awards, in whole or in part, to be surrendered to the Company by the holder, and to be
immediately cancelled by the Company, and to provide for the holder to receive (i) a cash payment in an amount equal to (A) in the case of an option or an SAR, the aggregate number of Common Shares then subject to the portion of such
option or SAR surrendered, whether or not vested or exercisable, multiplied by the excess, if any, of the Fair Market Value of a Common Share as of the date of the Change in Control, over the purchase price or base price per share of a Common Share
subject to such option or SAR; <u>provided</u>, <u>however</u>, that if the purchase price or base price per share of a Common Share subject to such option or SAR exceeds the Fair Market Value of a Common Share as of the date of the Change in
Control, such option or SAR may be cancelled for no consideration, (B) in the case of a Share Award or a Performance Award denominated in Common Shares, the number of Common Shares then subject to the portion of such award surrendered to the
extent the Performance Measures applicable to such award have been satisfied or are deemed satisfied pursuant to <u>Section</u> <u>5.8(a)(i)</u>, whether or not vested, multiplied by the Fair Market Value of a Common Share as of the date
of the Change in Control, and (C) in the case of a Performance Award denominated in cash, the value of the Performance Award then subject to the portion of such award surrendered to the extent the Performance Measures applicable to such award
have been satisfied or are deemed satisfied pursuant to <u>Section</u> <u>5.8(a)(i)</u>; (ii) shares of capital stock of the corporation resulting from or succeeding to the business of the Company pursuant to such Change in Control (or a
parent corporation thereof) or other property, having a fair market value not less than the amount determined under clause (i) above; or (iii) a combination of the payment of cash pursuant to clause (i) above and the issuance of
shares or other property pursuant to clause (ii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Plan, a "<u>Change in Control</u>" shall be deemed to have occurred under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Change in Ownership of the Company</u>. A change in the ownership of the Company which occurs on the date
that any one person, or more than one person acting as a group (" <u>Person</u> "), acquires ownership of the shares of the Company that, together with the shares held by such Person, constitutes more than fifty percent (50%) of the total
voting power of the shares of the Company (an " <u>Acquisition</u> "); <u>provided</u>, <u>however</u>, that for purposes of this subsection, the acquisition of additional shares by any one Person, who is

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considered to own more than fifty percent (50%) of the total voting power of the shares of the Company will not be considered an Acquisition; <u>provided</u>, <u>further</u>, that any change in the ownership of the shares of the Company as a result of a private financing of the Company that is approved by the Board also will not be considered an Acquisition. Further, if the members of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company's voting shares immediately prior to the change in ownership, direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the shares of the Company or of the ultimate parent entity of the Company, such event shall not be considered an Acquisition under this <u>Section</u> <u>5.8(b)(1)</u>. For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Change in Effective Control of the Company</u>. If the Company has a class of securities registered pursuant
to Section 12 of the Exchange Act, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by directors whose appointment or election
is not endorsed by a majority of the members of the Board prior to the date of the appointment or election; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened
election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be a director who has been endorsed by a majority of the
members of the Board. For purposes of this <u>Section</u> <u>5.8(b)(2)</u>, if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be
considered an Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Change in Ownership of a Substantial Portion of the Company's Assets</u>. A change in the ownership of
a substantial portion of the Company's assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from
the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; <u>provided</u>, <u>however</u>, that for purposes of this subsection (c), the following will not constitute a change in the ownership of a substantial portion of the Company's assets: (A) a transfer to an entity that is controlled by the Company's
members immediately after the transfer, or

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(B) a transfer of assets by the Company to: (1) a member of the Company (immediately before the asset transfer) in exchange for or with respect to the Company's shares, an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding shares of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (b)(3). For purposes of this <u>Section</u> <u>5.8(b)(3)</u>, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets;

<u>provided</u>, that with respect to any nonqualified deferred compensation that becomes payable on account of the Change in Control, the transaction or event described in clause (1), (2) or (3) also constitutes a "change in control event," as defined in Treasury Regulation §1.409A-3(i)(5) if required in order for the payment not to violate Section 409A of the Code.

For purposes of this <u>Section</u> <u>5.8</u>, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of shares, or similar business transaction with the Company.

Further and for the avoidance of doubt, the following transactions will not constitute an Acquisition: (i) a transaction if its sole purpose is to change the jurisdiction of the Company's incorporation; (ii) a transaction if its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities immediately before such transaction; or (iii) any disposition of securities in the Company by Accelerant Holdings LP or any affiliates thereof or affiliated funds pursuant to an Initial Public Offering or any secondary offering of the Company's equity.

In addition, a "Person," as used in this <u>Section</u> <u>5.8</u>, shall not include (w) the Company or any of its Affiliates; (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries; (y) an underwriter temporarily holding securities pursuant to an offering of such securities; or (z) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.

**5.9 Deferrals.** The Committee may determine that the delivery of Common Shares or the payment of cash, or a combination thereof, upon the settlement of all or a portion of any award made hereunder shall be deferred, or the Committee may, in its sole discretion, approve deferral elections made by holders of awards. Deferrals shall be for such periods and upon such terms as the Committee may determine in its sole discretion, subject to the requirements of Section 409A of the Code.

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**5.10 No Right of Participation, Employment or Service**. Unless otherwise set forth in an employment agreement, no person shall have any right to participate in this Plan. Neither this Plan nor any award made hereunder shall confer upon any person any right to continued employment by or service with the Company, any Subsidiary or any affiliate of the Company or affect in any manner the right of the Company, any Subsidiary or any affiliate of the Company to terminate the employment or service of any person at any time without liability hereunder.

**5.11 Rights as Shareholder**. No person shall have any right as a shareholder of the Company with respect to any Common Shares or other equity security of the Company which is subject to an award hereunder unless and until such person becomes a stockholder of record with respect to such Common Shares or equity security.

**5.12 Designation of Beneficiary**. To the extent permitted by the Company, a holder of an award may file with the Company a written designation of one or more persons as such holder's beneficiary or beneficiaries (both primary and contingent) in the event of the holder's death or incapacity. To the extent an outstanding option or SAR granted hereunder is exercisable, such beneficiary or beneficiaries shall be entitled to exercise such option or SAR pursuant to procedures prescribed by the Company. Each beneficiary designation shall become effective only when filed in writing with the Company during the holder's lifetime on a form prescribed by the Company. The spouse of a married holder domiciled in a community property jurisdiction shall join in any designation of a beneficiary other than such spouse. The filing with the Company of a new beneficiary designation shall cancel all previously filed beneficiary designations. If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder predecease the holder, then each outstanding award held by such holder, to the extent vested or exercisable, shall be payable to or may be exercised by such holder's executor, administrator, legal representative or similar person.

**5.13 Awards Subject to Clawback.** The awards granted under this Plan and any cash payment or Common Shares delivered pursuant to such an award are subject to forfeiture, recovery by the Company or other action pursuant to the applicable Agreement or any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the Company has adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

**5.14 Section 409A**. This Plan is intended to comply with the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent. To the extent that any award is subject to Section 409A of the Code, it shall be paid in a manner that will comply with Section 409A of the Code, including proposed, temporary or final regulations or any other guidance issued by the Secretary of the Treasury and the Internal Revenue Service with respect thereto. Notwithstanding anything herein to the contrary, any provision in this Plan that is inconsistent with Section 409A of the Code shall be deemed to be amended to comply with Section 409A of the Code and to the extent such provision cannot be amended to comply therewith, such provision shall be null and void. The Company shall have no liability to a participant, or any other party, if an award that is intended to be exempt from, or compliant with, Section 409A of the Code is not so exempt or compliant or for any action

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taken by the Committee or the Company and, in the event that any amount or benefit under this Plan becomes subject to penalties under Section 409A of the Code, responsibility for payment of such penalties shall rest solely with the affected participants and not with the Company. Notwithstanding any contrary provision in this Plan or an Agreement, any payment(s) of "nonqualified deferred compensation" (within the meaning of Section 409A of the Code) that are otherwise required to be made under this Plan to a "specified employee" (as defined under Section 409A of the Code) as a result of such employee's separation from service (other than a payment that is not subject to Section 409A of the Code) shall be delayed for the first six (6) months following such separation from service (or, if earlier, the date of death of the specified employee) and shall instead be paid (in a manner set forth in the Agreement) upon expiration of such delay period.

**5.15 Data Privacy.** As a condition for receiving any award under the Plan, each participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data as described in this <u>Section</u> <u>5.15</u> by and among the Company and its Subsidiaries and affiliates exclusively for implementing, administering and managing the participant's participation in the Plan. The Company and its Subsidiaries and affiliates may hold certain personal information about a participant, including the participant's name, address and telephone number; birthdate; social security, insurance or other identification number; salary; nationality; job title(s); any Common Shares held in the Company or its Subsidiaries and affiliates; and award details, to implement, manage and administer the Plan and awards (the "<u>Data</u>"). The Company and its Subsidiaries and affiliates may transfer the Data amongst themselves as necessary to implement, administer and manage a participant's participation in the Plan, and the Company and its Subsidiaries and affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration and management. These recipients may be located in the participant's country, or elsewhere, and the participant's country may have different data privacy laws and protections than the recipients' country. By accepting an award, each participant authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the participant's participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the participant may elect to deposit any Common Shares. The Data related to a participant will be held only as long as necessary to implement, administer, and manage the participant's participation in the Plan. A participant may, at any time, view the Data that the Company holds regarding such participant, request additional information about the storage and processing of the Data regarding such participant, recommend any necessary corrections to the Data regarding the participant or refuse or withdraw the consents in this <u>Section</u> <u>5.15</u> in writing, without cost, by contacting the local human resources representative. The Company may cancel participant's ability to participate in the Plan and, in the Committee's sole discretion, the participant may forfeit any outstanding awards if the participant refuses or withdraws the consents in this <u>Section</u> <u>5.15</u>.

**5.16 Limitations Applicable to Section 16 Persons.** Notwithstanding any other provision of the Plan, the Plan and any award granted or awarded to any individual who is then subject to Section 16 of the Exchange Act shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3 of the Exchange Act and any amendments thereto) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan and awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

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**5.17 Prohibition on Executive Officer Loans.** Notwithstanding any other provision of the Plan to the contrary, no participant who is a director or an "executive officer" of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to make payment with respect to any awards granted under the Plan, or continue any extension of credit with respect to such payment, with a loan from the Company or a loan arranged by the Company in violation of Section 13(k) of the Exchange Act.

**5.18 Governing Law.** This Plan, **e**ach award hereunder and the related Agreement, and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the Code, the choice of law specified in the related Agreement or the laws of the United States, shall be governed by the laws of the Cayman Islands and construed in accordance therewith without giving effect to principles of conflicts of laws.

**5.19 Foreign Employees.** Without amending this Plan, the Committee may grant awards to eligible persons who are foreign nationals and/or reside outside of the United States on such terms and conditions different from those specified in this Plan as may in the judgment of the Committee be necessary or desirable to foster and promote achievement of the purposes of this Plan and, in furtherance of such purposes the Committee may make such modifications, amendments, procedures, and subplans, and may attach such country-specific appendices, as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which the Company or its Subsidiaries operates or has employees.

## Exhibit 10.6

**Exhibit 10.6** 

**ACCELERANT HOLDINGS** 

**2025 EMPLOYEE STOCK PURCHASE PLAN** 

**ADOPTED BY THE BOARD OF DIRECTORS:** 

**APPROVED BY THE SHAREHOLDERS:** 

**TERMINATION DATE:** 

**1. PURPOSE.** The purpose of the Accelerant Holdings 2025 Employee Stock Purchase Plan (this "Plan") is to provide eligible Employees of the Company and Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company through payroll deductions or other contributions in order to enhance such employees' sense of participation in the affairs of the Company. This Plan shall apply to Offering Periods beginning on or after the effective date of the initial public offering of the Shares, as determined by the Committee (as defined below).

This Plan includes two components: (a) a component intended to qualify as an "employee stock purchase plan" under Section 423 of the Code (the "423 Component"), the provisions of which shall be construed so as to extend and limit participation in a uniform and nondiscriminatory manner consistent with the requirements of Section 423 of the Code; and (b) a component that does not qualify as an "employee stock purchase plan" under Section 423 of the Code (the "Non-423 Component"), under which options shall be granted pursuant to rules, procedures or sub-plans adopted by the Committee designed to achieve tax, securities laws or other objectives for eligible Employees, the Company and its Participating Subsidiaries. Except as otherwise provided in this Plan, the Non-423 Component will operate and be administered in the same manner as the 423 Component.

**2. DEFINITIONS.** As used herein, the terms set forth below have the meanings assigned to them in this Section 2 and shall include the plural as well as the singular.

***"1933 Act"*** means the Securities Act of 1933, as amended.

***"1934 Act"*** means the Securities Exchange Act of 1934, as amended.

***"Board"*** means the Board of Directors of the Company.

***"Business Day"*** shall mean a day on which the NYSE is open for trading.

***"Brokerage Account"*** means the account in which the Purchased Shares are held.

***"Code"*** means the Internal Revenue Code of 1986, as amended.

***"Committee"*** means the Compensation Committee of the Board, or the designee of the Compensation Committee.

***"Company"*** means Accelerant Holdings, a Cayman Islands exempted company limited by shares, or any successor thereto.

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***"Compensation"*** means, unless otherwise determined by the Committee in advance of an Offering Period, base pay, commissions, overtime, and vacation, holiday and sick pay. Compensation does not include: (1) income related to share option awards, share grants and other equity incentive awards, (2) expense reimbursements, (3) relocation-related payments, (4) benefit plan payments (including but not limited to short-term disability pay, long-term disability pay, maternity pay, military pay, tuition reimbursement and adoption assistance), (5) accrued but unpaid compensation for a deceased Participant, (6) income from non-cash and fringe benefits, (7) severance payments, (8) annual, quarterly, monthly and other cash bonuses, and (9) other forms of compensation not specifically listed herein.

***"Employee"*** means any individual who is a common law employee of the Company or any other Participating Subsidiary. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company or the Participating Subsidiary, as appropriate, and only to the extent permitted under Section 423 of the Code with respect to the 423 Component. For purposes of the Plan, an individual who performs services for the Company or a Participating Subsidiary pursuant to an agreement (written or oral) that classifies such individual's relationship with the Company or a Participating Subsidiary as other than a common law employee shall not be considered an "employee" with respect to any period preceding the date on which a court or administrative agency issues a final determination that such individual is an "employee."

***"Enrollment Date"*** means the first Business Day of each Offering Period.

***"Exercise Date"*** means the last Business Day of each Offering Period (or, if determined by the Committee, the Purchase Period if different from the Offering Period).

***"Fair Market Value"*** on or as of any date means the official closing price for a Share as reported on the NYSE on the relevant valuation date or, if no official closing price is reported on such date, on the preceding day on which an official closing price is reported on the NYSE; or, if the Shares are no longer listed on the NYSE, the closing price for Shares as reported on the official website for such other exchange on which the Shares are listed.

***"NYSE"*** means the New York Stock Exchange.

***"Offering Period"*** means every six-month period beginning each May 1<sup>st</sup> and November 1<sup>st</sup> or such other period designated by the Committee; provided that in no event shall an Offering Period exceed twenty-seven (27) months, with the commencement of the first Offering Period to be determined by the Committee. Notwithstanding anything herein to the contrary, the Committee may establish an Offering Period with multiple Purchase Periods within such Offering Period.

***"Option"*** means an option granted under this Plan that entitles a Participant to purchase Shares.

***"Participant"*** means an Employee who satisfies the requirements of Sections 3 and 5 of the Plan.

***"Participating Subsidiary"*** means each Subsidiary other than those that the Committee or the Board has excluded from participation in the Plan.

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***"Plan"*** means this Accelerant Holdings 2025 Employee Stock Purchase Plan, as amended from time to time.

***"Purchase Account"*** means the account used to purchase Shares through the exercise of Options under the Plan.

***"Purchase Period"*** means the period designated by Committee during which payroll deductions or other contributions of the Participants are accumulated under the Plan. A Purchase Period may coincide with an entire Offering Period or there may be multiple Purchase Periods within an Offering Period, as determined by the Committee prior to the commencement of the applicable Offering Period.

***"Purchase Price"*** shall be the lesser of: (i) 85% of the Fair Market Value of a Share on the applicable Enrollment Date for an Offering Period and (ii) 85% of the Fair Market Value of a Share on the applicable Exercise Date; provided, however, that the Committee may determine a different per share Purchase Price with respect to future Offering Periods provided that such per share Purchase Price is communicated to Participants prior to the beginning of such Offering Period and provided that in no event shall such per share Purchase Price be less than the lesser of (i) 85% of the Fair Market Value of a Share on the applicable Enrollment Date or (ii) 85% of the Fair Market Value of a Share on the Exercise Date.

***"Purchased Shares"*** means the full Shares issued or delivered pursuant to the exercise of Options under the Plan.

***"Shares"*** means the common shares of the Company.

***"Subsidiary"*** means an entity, domestic or foreign, of which not less than 50% of the voting equity is held by the Company or a Subsidiary, whether or not such entity now exists or is hereafter organized or acquired by the Company or a Subsidiary; provided such entity is also a "subsidiary" within the meaning of Section 424 of the Code.

***"Termination Date"*** means (i) the date on which a Participant terminates employment or on which the Participant ceases to provide services to the Company or a Subsidiary as an employee or as otherwise required under Section 423 with respect to the 423 Component or (ii) subject to Section 423 of the Code with respect to the 423 Component, the date on which the Participant's employment is determined to have been terminated for purposes of the Plan by the Committee. The Termination Date specifically does not include any period following that date which the Participant may be eligible for or in receipt of other payments from the Company including in lieu of notice or termination or severance pay or as wrongful dismissal damages.

**3.** **ELIGIBILITY .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Only Employees of the Company or a Participating Subsidiary shall be eligible to be granted Options under the Plan and, in no event may a Participant be granted an Option under the Plan following his or her Termination Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an Option under the 423 Component of the Plan if (i) immediately after the grant, such Employee (or any other person whose shares would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding Options or options to purchase shares possessing 5% or more of the total combined voting power or value of all classes of shares of the Company or of any of its Subsidiaries or (ii) such Option would permit his or her rights to purchase shares under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate that exceeds $25,000 of the Fair Market Value of such shares (determined at the time each such Option is granted) for each calendar year in which such Option is outstanding at any time. Except as otherwise determined by the Committee prior to the commencement of an Offering Period, no Participant may purchase more than 5,000 Shares during any Offering Period.

**4. EXERCISE OF AN OPTION.** Options shall be exercised on behalf of Participants in the Plan every Exercise Date, using payroll deductions that have accumulated in the Participants' Purchase Accounts during the immediately preceding Purchase Period or that have been retained from a prior Purchase Period pursuant to Section 8 hereof.

**5.** **PARTICIPATION .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise determined by the Committee prior to the commencement of an Offering Period and in accordance with Section 423 of the Code with respect to the 423 Component, an Employee shall be eligible to participate on the first Enrollment Date that occurs after such Employee's first date of employment with the Company or a Participating Subsidiary; provided, that such Employee properly completes and submits an election form by the deadline prescribed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An Employee who does not become a Participant on the first Enrollment Date on which he or she is eligible may thereafter become a Participant on any subsequent Enrollment Date by properly completing and submitting an election form by the deadline prescribed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Payroll deductions for a Participant shall commence on the first payroll date following the Enrollment Date and shall end on the last payroll date in the Purchase Period to which such authorization is applicable, unless sooner terminated by the Participant as provided in Section 12 hereof.

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**6. PAYROLL DEDUCTIONS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Participant shall elect to have payroll deductions made during a Purchase Period equal to no less than 1% of the Participant's Compensation up to a maximum of 15% (or such greater amount as the Committee establishes from time to time). The amount of such payroll deductions shall be in whole percentages, with such deductions being accumulated during the applicable Purchase Period. All payroll deductions made by a Participant shall be credited to his or her Purchase Account. A Participant may not make any additional payments into his or her Purchase Account. Notwithstanding the foregoing or any provisions to the contrary in the Plan, the Committee may allow participants to make other contributions under the Plan via cash, check, or other means instead of payroll deductions if payroll deductions are not permitted under applicable local law, and for any Offering Period under the 423 Component, the Committee determines that such other contributions are permissible under Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise determined by the Committee prior to the commencement of an Offering Period, a Participant may not increase the rate of payroll deductions during an Offering Period. Except as otherwise determined by the Committee prior to the commencement of an Offering Period, a Participant may decrease the rate of payroll deductions during an Offering Period by properly completing and submitting an election change form in accordance with the procedures prescribed by the Committee and/or any other forms required by the Committee and by following any other procedures as may be established by the Committee, in which case the new rate shall become effective as soon as administratively practicable after the Participant elects such change and shall continue for the remainder of the Offering Period unless changed as described below. Such change in the rate of payroll deductions may be made at any time during an Offering Period, but not more than one (1) change may be made effective during any Offering Period, except that a Participant may elect at any time during an Offering Period, regardless of whether the Participant previously decreased his or her contribution percentage, to reduce his or her contribution percentage to 0% and such change shall become effective as soon as administratively practicable after the Participant elects such change and shall continue for the remainder of the Offering Period unless changed as described below. A Participant may change his or her payroll deduction percentage under subsection (a) above for any subsequent Offering Period by properly completing and submitting an election change form in accordance with the procedures prescribed by the Committee. The change in amount shall be effective as of the first Enrollment Date following the date of filing of the election change form. Unless otherwise determined by the Committee prior to the commencement of an Offering Period, a payroll deduction election will automatically apply to the next Offering Period, unless otherwise cancelled or changed by the Participant prior to the commencement of such Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a Participant's payroll deductions may be decreased to 0% at any time during an Offering Period. Payroll deductions shall recommence at the rate provided in such Participant's election form at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the Participant as provided in Section 12 hereof.

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**7. GRANT OF OPTION.** On the applicable Enrollment Date, each Participant in an Offering Period shall be granted an Option to purchase on the applicable Exercise Date a number of full Shares determined by dividing such Participant's payroll deductions accumulated prior to such Exercise Date and retained in the Participant's Purchase Account as of the applicable Exercise Date by the applicable Purchase Price.

**8. EXERCISE OF OPTION.** A Participant's Option for the purchase of Shares shall be exercised automatically on the Exercise Date, and the maximum number of Shares subject to the Option shall be purchased for such Participant at the applicable Purchase Price with the accumulated payroll deductions in his or her Purchase Account. If the Fair Market Value of a Share on the first day of the current Offering Period in which a participant is enrolled is higher than the Fair Market Value of a Share on the first day of any subsequent Offering Period, the Company may establish procedures to automatically enroll such participant in the subsequent Offering Period and any funds accumulated in a participant's account prior to the first day of such subsequent Offering Period will be applied to the purchase of Shares on the Exercise Date immediately prior to the first day of such subsequent Offering Period. A participant does not need to file any forms with the Company to be automatically enrolled in the subsequent Offering Period.

Except as otherwise determined by the Committee prior to the commencement of an Offering Period, no fractional Shares shall be purchased; any payroll deductions accumulated in a Participant's Purchase Account which are not sufficient to purchase a full Share shall be retained in the Purchase Account for the next subsequent Purchase Period, subject to earlier withdrawal by the Participant as provided in Section 12 hereof. All other payroll deductions accumulated in a Participant's Purchase Account and not used to purchase Shares on an Exercise Date shall be distributed to the Participant. During a Participant's lifetime, a Participant's Option is exercisable only by him or her. The Company shall satisfy the exercise of all Participants' Options for the purchase of Shares through (a) the issuance of authorized but unissued Shares, (b) the transfer of treasury Shares, (c) the purchase of Shares on behalf of the applicable Participants on the open market through an independent broker and/or (d) a combination of the foregoing.

**9. ISSUANCE OF SHARES.** The Shares purchased by each Participant shall be issued in book entry form and shall be considered to be issued and outstanding to such Participant's credit once the Participant has been registered as the holder of such Shares under applicable law. The Committee may permit or require that Shares be deposited directly in a Brokerage Account with one or more brokers designated by the Committee or to one or more designated agents of the Company, and the Committee may use electronic or automated methods of share transfer. The Committee may require that Shares be retained with such brokers or agents for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such Shares, and may also impose a transaction fee with respect to a sale of Shares issued to a Participant's credit and held by such a broker or agent. The Committee may permit Shares purchased under the Plan to participate in a dividend reinvestment plan or program maintained by the Company, and establish a default method for the payment of dividends.

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**10. APPROVAL BY SHAREHOLDERS.** Notwithstanding the above, the Plan is expressly made subject to the approval of the shareholders of the Company within 12 months before or after the date the Plan is adopted by the Board. Such shareholder approval shall be obtained in the manner and to the degree required under applicable Cayman law and U.S. federal and state law. If the Plan is not so approved by the shareholders within 12 months before or after the date the Plan is adopted by the Board, this Plan shall not come into effect.

**11.** **ADMINISTRATION .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Powers and Duties of the Committee</u>. The Plan shall be administered by the Committee. Subject to the provisions of the Plan, Section 423 of the Code and the regulations thereunder with respect to the 423 Component, the Committee shall have the discretionary authority to determine the time and frequency of granting Options, the duration of Offering Periods and Purchase Periods, the terms and conditions of the Options and the number of Shares subject to each Option. The Committee shall also have the discretionary authority to do everything necessary and appropriate to administer the Plan, including, without limitation, interpreting the provisions of the Plan (but any such interpretation shall not be inconsistent with the provisions of Section 423 of the Code with respect to the 423 Component). All actions, decisions and determinations of, and interpretations by the Committee with respect to the Plan shall be final and binding upon all Participants and upon their executors, administrators, personal representatives, heirs and legatees. No member of the Board or the Committee shall be liable for any action, decision, determination or interpretation made in good faith with respect to the Plan or any Option granted hereunder. With respect to the 423 Component, an Offering Period shall be administered so as to ensure that all Participants have the same rights and privileges as provided by Section 423(b)(5) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Administrator</u>. The Company, Board or the Committee may engage the services of a brokerage firm or financial institution to perform certain ministerial and procedural duties under the Plan including, but not limited to, mailing and receiving notices contemplated under the Plan, determining the number of Purchased Shares for each Participant, maintaining or causing to be maintained the Purchase Account and the Brokerage Account, disbursing funds maintained in the Purchase Account or proceeds from the sale of Shares through the Brokerage Account, and filing with the appropriate tax authorities proper tax returns and forms (including information returns) and providing to each Participant statements as required by law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification</u>. Each person who is or shall have been (a) a member of the Board, (b) a member of the Committee, or (c) an officer or employee of the Company to whom authority was delegated in relation to this Plan, shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit or proceeding against him or her; provided, however, that he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability or expense is a result of his or her own willful misconduct or except as expressly provided by applicable law.

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The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's memorandum and articles of association, any contract with the Company, as a matter of law, or otherwise, or of any power that the Company may have to indemnify them or hold them harmless.

**12. WITHDRAWAL.** A Participant may withdraw from the Plan by properly completing and submitting to the Company a withdrawal form in accordance with the procedures prescribed by the Committee, which must be submitted prior to the date specified by the Committee before the last day of the applicable Offering Period. Upon withdrawal, any payroll deductions credited to the Participant's Purchase Account prior to the effective date of the Participant's withdrawal from the Plan will be returned to the Participant. No further payroll deductions for the purchase of Shares will be made during subsequent Offering Periods, unless the Participant properly completes and submits an election form, by the deadline prescribed by the Company. A Participant's withdrawal from an offering will not have any effect upon his or her eligibility to participate in the Plan or in any similar plan that may hereafter be adopted by the Company.

**13. TERMINATION OF EMPLOYMENT.** On the Termination Date of a Participant for any reason prior to the applicable Exercise Date, whether voluntary or involuntary, and including termination of employment due to retirement, death or as a result of liquidation, dissolution, sale, merger or a similar event affecting the Company or a Participating Subsidiary, the corresponding payroll deductions credited to his or her Purchase Account will be returned to him or her or, in the case of the Participant's death, to the person or persons entitled thereto under Section 16, and his or her Option will be automatically terminated.

**14. INTEREST.** No interest shall accrue on the payroll deductions of a Participant in the Plan.

**15.** **SHARES .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The shares subject to Options shall be common shares of the Company as traded on the NYSE or on such other exchange as the Shares may be listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to adjustment for stock splits, share subdivisions, stock dividends, share consolidations or other changes in capitalization of the Company as provided in Section 18 hereof, the maximum number of Shares which shall be made available for sale under the Plan shall be 1,000,000 Shares. In addition, subject to adjustments upon changes in capitalization of the Company as provided in Section 18 hereof, the maximum number of Shares which shall be made available for sale under the Plan shall automatically increase on the first trading day in January of each calendar year, commencing in 2026, and continuing until (and including) the calendar year ending December 31, 2035, with such annual increase equal to the lesser of (i) 1,000,000 Shares, (ii) 1% of the number of Shares issued and outstanding on December 31 of the immediately preceding calendar year, and (iii) an amount determined by the Board. If, on a given Exercise Date, the number of Shares with respect to which Options are to be exercised exceeds the number of Shares then available under the Plan, the Committee shall make a pro rata allocation of the Shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Participant shall have no interest or voting right in Shares covered by his or her Option until such Option has been exercised and the Participant has become a holder of record of Shares acquired pursuant to such exercise.

**16. DESIGNATION OF BENEFICIARY.** The Committee may permit Participants to designate beneficiaries to receive any Purchased Shares or payroll deductions, if any, in the Participant's accounts under the Plan in the event of such Participant's death. Beneficiary designations shall be made in accordance with procedures prescribed by the Committee. If no properly designated beneficiary survives the Participant, the Purchased Shares and payroll deductions, if any, will be distributed to the Participant's estate.

**17. ASSIGNABILITY OF OPTIONS.** Neither payroll deductions credited to a Participant's Purchase Account nor any rights with regard to the exercise of an Option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 16 hereof) by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an Offering Period in accordance with Section 12 hereof.

**18.** **ADJUSTMENT OF NUMBER OF SHARES SUBJECT TO OPTIONS .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adjustment</u>. Subject to any required action by the shareholders of the Company, the maximum number of securities available for purchase under the Plan, as well as the price per security and the number of securities covered by each Option under the Plan which has not yet been exercised shall be appropriately adjusted in the event of any stock split, share subdivision, stock dividend, share consolidation, combination or reclassification of the Shares, or any other increase or decrease in the number of Shares effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board or the Committee, whose determination in that respect shall be final, binding and conclusive. If any such adjustment would result in a fractional security being available under the Plan, such fractional security shall be disregarded. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Option. With respect to the 423 Component, the Options granted pursuant to the Plan shall not be adjusted in a manner that causes the Options to fail to qualify as options issued pursuant to an "employee stock purchase plan" within the meaning of Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dissolution or Liquidation</u>. In the event of the proposed dissolution or liquidation of the Company, any Offering Period then in progress will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board, and the Board may either provide for the purchase of Shares as of the date on which such Offering Period terminates or return to each Participant the payroll deductions credited to such Participant's Purchase Account.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Merger or Asset Sale</u>. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding Option shall be assumed or an equivalent option substituted by the successor corporation or a parent or subsidiary of the successor corporation, unless the Board determines, in the exercise of its sole discretion, that in lieu of such assumption or substitution, to either terminate all outstanding Options and return to each Participant the payroll deductions credited to such Participant's Purchase Account or to provide for the Offering Period in progress to end on a date prior to the consummation of such sale or merger.

**19.** **AMENDMENTS OR TERMINATION OF THE PLAN .** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board or the Committee may at any time and for any reason amend, modify, suspend, discontinue or terminate the Plan without notice; provided that no Participant's existing rights in respect of existing Options are adversely affected thereby. To the extent necessary to comply with Section 423 of the Code (or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a manner and to such a degree as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without shareholder consent and without regard to whether any Participant rights may be considered to have been "adversely affected," the Board or the Committee shall be entitled to change the Purchase Price, Offering Periods, Purchase Periods, eligibility requirements, limit or increase the frequency and/or number of changes in the amount withheld during a Purchase Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in an amount less than or greater than the amount designated by a Participant in order to adjust for delays or mistakes in the Company's processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Shares for each Participant properly correspond with amounts withheld from the Participant's Compensation, and establish such other limitations or procedures as the Board or the Committee determines in its sole discretion advisable which are consistent with the Plan; provided, however, that changes to (i) the Purchase Price, (ii) the Offering Period, (iii) the Purchase Period, (iv) the maximum percentage of Compensation that may be deducted pursuant to Section 6(a) or (v) the maximum number of Shares that may be purchased in a Purchase Period, shall not be effective until communicated to Participants in a reasonable manner, with the determination of such reasonable manner in the sole discretion of the Board or the Committee.

**20. NO OTHER OBLIGATIONS.** The receipt of an Option pursuant to the Plan shall impose no obligation upon the Participant to purchase any Shares covered by such Option. Nor shall the granting of an Option pursuant to the Plan constitute an agreement or an understanding, express or implied, on the part of the Company to employ the Participant for any specified period.

**21. NOTICES AND COMMUNICATION.** Any notice or other form of communication which the Company or a Participant may be required or permitted to give to the other shall be provided through such means as designated by the Committee, including but not limited to any paper or electronic method.

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**22. CONDITION UPON ISSUANCE OF SHARES.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the 1933 Act and the 1934 Act and the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

**23. GENERAL COMPLIANCE.** The Plan will be administered and Options will be exercised in compliance with the 1933 Act, 1934 Act and all other applicable securities laws and Company policies, including without limitation, any insider trading policy of the Company.

**24. TERM OF THE PLAN.** The Plan shall become effective upon the earlier to occur of (i) its adoption by the Board and (ii) its approval by the shareholders of the Company (the earlier of such events, the "Effective Date"), and shall continue in effect until the earlier of (A) the termination of the Plan pursuant to Section 19 hereof; and (B) the ten-year anniversary of the Effective Date, with no new Offering Periods commencing on or after such ten-year anniversary.

**25. GOVERNING LAW.** The Plan and all Options granted hereunder shall be construed in accordance with and governed by the laws of Delaware without reference to choice of law principles and subject in all cases to the Code and the regulations thereunder.

**26. NON-U.S. PARTICIPANTS.** To the extent permitted under Section 423 of the Code, without the amendment of the Plan, the Company may provide for the participation in the Plan by Employees who are subject to the laws of foreign countries or jurisdictions on such terms and conditions different from those specified in the Plan as may in the judgment of the Company be necessary or desirable to foster and promote achievement of the purposes of the Plan and, in furtherance of such purposes the Company may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply with provisions of laws of other countries or jurisdictions in which the Company or the Participating Subsidiaries operate or have employees. Each subplan shall constitute a separate "offering" under this Plan in accordance with Treas. Reg. §1.423-2(a) and, to the extent inconsistent with the requirements of Section 423, any such subplan shall be considered part of the Non-423 Component, and rights granted thereunder shall not be required by the terms of the Plan to comply with Section 423 of the Code.

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**27. SECTION 409A OF THE CODE.** The 423 Component is exempt from the application of Section 409A of the Code, and any ambiguities herein shall be interpreted to so be exempt from Section 409A of the Code. The Non-423 Component is intended to be exempt from the application of Section 409A of the Code under the short-term deferral exception and any ambiguities shall be construed and interpreted in accordance with such intent. In furtherance of the foregoing and notwithstanding any provision in the Plan to the contrary, if the Committee determines that an Option granted under the Plan may be subject to Section 409A of the Code or that any provision in the Plan would cause an Option under the Plan to be subject to Section 409A of the Code, the Committee may amend the terms of the Plan and/or of an outstanding Option granted under the Plan, or take such other action the Committee determines is necessary or appropriate, in each case, without the participant's consent, to exempt any outstanding Option or future Option that may be granted under the Plan from or to allow any such Options to comply with Section 409A of the Code, but only to the extent any such amendments or action by the Committee would not violate Section 409A of the Code. Notwithstanding the foregoing, the Company shall have no liability to a participant or any other party if the Option under the Plan that is intended to be exempt from or compliant with Section 409A of the Code is not so exempt or compliant or for any action taken by the Committee with respect thereto.

## Exhibit 10.14

**Exhibit 10.14** 

**ACCELERANT HOLDINGS** 

**REGISTRATION RIGHTS AGREEMENT** 

**[•], 2025** 

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**REGISTRATION RIGHTS AGREEMENT**, dated as of [•], 2025 (this "<u>Agreement</u>"), among **ACCELERANT HOLDINGS**, a Cayman Islands exempted company (the "<u>Company</u>") and the shareholders of the Company, as listed in **<u>Schedule 1</u>**.

**PREAMBLE** 

**WHEREAS**, the Company and certain Shareholders (as defined herein) previously entered into the Second Amended and Restated Shareholders Agreement, dated December 18, 2024 (the "<u>Shareholders Agreement</u>"), by and among the Company and the investors listed therein.

**WHEREAS**, pursuant to Section 6.2 of the Shareholders Agreement, in connection with a Qualified Initial Public Offering (as defined in the Shareholders Agreement), the Company is obligated to take such actions as are required to enter into a registration rights agreement with certain holders of common shares of the Company (the "<u>Pre-IPO Common Shares</u>").

**WHEREAS**, in connection with the IPO (as defined herein) and the issuance of equity securities of the Company to certain Shareholders, the parties hereto desire to enter into this Agreement.

**NOW, THEREFORE**, in consideration of the premises and mutual covenants and obligations hereinafter set forth, the Company and the Shareholders hereby agree as follows:

Section 1. <u>Definitions</u>.

As used in this Agreement, the following terms shall have the following meanings:

"<u>Affiliate</u>" means, with respect to any Person, (a) any director, officer, limited or general partner, member or shareholder holding 5% or more of the outstanding capital stock or other equity interests of such Person, (b) any spouse, parent, sibling or descendant of such Person (or a spouse, parent, sibling or descendant of a Person specified in clause (a) above relating to such Person), (c) any other Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, (d) a pooled investment vehicle organized by such Person (or an Affiliate thereof) the investments of which are controlled by such Person, (e) an investment fund organized by such Person for the benefit of such Person's (or its Affiliates') partners, officers or employees or their dependents, and (f) a successor trustee or nominee for, or a successor by re-organization of, a trust the direct or indirect principal beneficiary/ies of which is any of such Person, its Affiliates or any of their respective partners, officers or employees or their dependents. The term "control" includes, without limitation, the possession, directly or indirectly, of the power to direct the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

"<u>Board</u>" means the Board of Directors of the Company.

"<u>Commission</u>" means the Securities and Exchange Commission or any other agency at the time administering the Securities Act.

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"<u>Common Shares</u>" means each class of common shares of the Company or equivalent class of common shares of a successor entity (including any subsidiary or parent company that is the issuer in an IPO (as defined below), including any company holding all of the voting rights in the Company but with respect to which the Common Shares become exchangeable for such company's common shares).

"<u>Competitive Business</u>" means any business engaged in insurance underwriting services with specialty underwriters, insurers, reinsurers and institutional investors anywhere in the world.

"<u>Demand Registration</u>" has the meaning ascribed to such term in Section 2(a).

"<u>Demanding Holders</u>" has the meaning ascribed to such term in Section 2(a).

"<u>Eligible Shareholders</u>" means the holders of Registrable Shares that are funds and accounts managed or advised by Barings LLC, including Barings BDC, Inc., Barings Capital Investment Corporation, Barings Capital Solutions Perpetual Fund (CA) Series LLC – Series A, Barings Capital Solutions Perpetual (DE) Series LLC – Series A, Barings Capital Solutions Perpetual (LUX) Series LLC – Series A, Barings Private Credit Corporation, Barings Global Special Situations Credit Fund 4 (Delaware), L.P., Barings Global Special Situations Credit 4 (LUX) S. a R.L., Barings SPDF 1 Series LLC, CELF SPV LLC, Martello Re Limited, MassMutual Ascend Life Insurance Company, and Massachusetts Mutual Life Insurance Company, and those managed or advised by Eldridge Industries LLC, including Eldridge Accelerant Funding, LLC and Hawk Trail, LLC.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in effect from time to time.

"<u>FINRA</u>" means the Financial Industry Regulatory Authority.

"<u>Free Writing Prospectus</u>" means a free writing prospectus as defined in Rule 405 under the Securities Act.

"<u>Information</u>" has the meaning ascribed to such term in Section 7(a)(ix).

"<u>Inspectors</u>" has the meaning ascribed to such term in Section 7(a)(ix).

"<u>IPO</u>" means the consummation of the sale by one or more Persons in a public offering of common equity of the Company effected by way of an offer for sale, a new issue of shares, an introduction, a placing or otherwise that (a) is led by a nationally recognized financial institution reasonably acceptable to the Board, (b) is registered on a Form S-1 or Form S-4 registration statement (or a comparable form of registration statement) under the Securities Act (or applicable securities law) and (c) following which such publicly-offered common equity is listed on the New York Stock Exchange, The Nasdaq National Market or another applicable nationally recognized securities exchange.

"<u>Issuer Free Writing Prospectus</u>" means an issuer free writing prospectus as defined in Rule 433 under the Securities Act.

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"<u>Lockup Period</u>" has the meaning ascribed to such term in Section 5.

"<u>Majority Demanding Holders</u>" means, with respect to a particular Demand Registration, the holders of more than 50% of the Registrable Shares proposed to be included in such registration.

"<u>Majority Holders</u>" means holders holding 51% of the Registrable Shares held by all holders of Registrable Shares.

"<u>Material Transaction</u>" means any material transaction or event in which the Company or any of its subsidiaries proposes to engage or is engaged or is subject to, including a purchase or sale of assets or securities, financing, merger, tender offer or any other transaction that would require disclosure pursuant to the Exchange Act, and with respect to which the Board reasonably has determined in good faith that compliance with this Agreement may reasonably be expected to either materially interfere with the Company's or such subsidiary's ability to consummate such transaction in a timely fashion or require the Company to disclose material, non-public information prior to such time as it would otherwise be required to be disclosed.

"<u>Other Shares</u>" means at any time those Common Shares which do not constitute Primary Shares or Registrable Shares hereunder.

"<u>Person</u>" means a natural person, a partnership, a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and any other entity and any federal, state, municipal, foreign or other government, governmental department, commission, board, bureau, agency or instrumentality, or any private or public court or tribunal.

"<u>Primary Shares</u>" means at any time authorized but unissued common equity of the Company, including but not limited to, the Common Shares.

"<u>Records</u>" has the meaning ascribed to such term in Section 7(a)(ix).

"<u>Registrable Shares</u>" means (i) Common Shares (including any other securities which by their terms are exercisable or exchangeable for or convertible into Common Shares), (ii) any other class or classes of common equity or other securities of the Company into which such Common Shares have been converted, exchanged or exercised or are convertible, exchangeable or exercisable or (iii) any Common Shares or other class or classes of common equity or other securities of the Company that are issued as a dividend or other distribution with respect to, or in exchange for, or in replacement of, the securities referenced in clauses (i) and (ii), including, for the avoidance of doubt, any such Common Shares or other securities acquired after the date of this Agreement. As to any particular Registrable Shares, once issued, such Registrable Shares shall cease to be Registrable Shares when (A) they have been registered under the Securities Act, the registration statement in connection therewith has been declared effective and they have been disposed of pursuant to such effective registration statement (unless the Transferee is an Affiliate of the Company or would become one immediately following such Transfer), (B) they are sold or distributed pursuant to Rule 144 in a single transaction by such party to this Agreement without limitation or being subject to the current public reporting condition, (C) they shall have ceased to be outstanding, (D) they are sold in a private transaction in which the transferor's rights under this Agreement are not validly assigned in accordance with this Agreement or (E) they are no longer subject to the registration rights hereunder, as a result of the termination of this Agreement with respect to the holder thereof pursuant to Section 15.

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"<u>Registration Date</u>" means the date upon which the registration statement relating to an IPO shall have been declared effective.

"<u>Rule 144</u>" means Rule 144 promulgated under the Securities Act or any successor rule thereto or any complementary rule thereto (such as Rule 144A).

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect from time to time.

"<u>Share Capital Change</u>" has the meaning given to it in Section 2(a).

"<u>Shareholder</u>" means each holder of Pre-IPO Common Shares of the Company as set out in Schedule 1. For purposes of this Agreement, the term Shareholder shall be deemed to include any Transferee of the Shareholder pursuant to a Transfer, provided such Transfer is conducted in accordance with Section 17 hereof and such Transferee signs a joinder to this Agreement as contemplated in Section 17 hereof.

"<u>Shareholders Agreement</u>" means the Second Amended and Restated Shareholders Agreement, dated December 18, 2024, among the Company, the holders of Pre-IPO Common Shares and other persons from time to time party thereto, as may be modified, supplemented or amended from time to time.

"<u>Subsequent Lockup Period</u>" has the meaning ascribed to such term in Section 5.

"<u>Subsequent Offering</u>" means any registration of common equity of the Company subsequent to an IPO.

"<u>Subsequent Registration Date</u>" means the date upon which the registration statement relating to the registration of any Subsequent Offering becomes effective.

"<u>Suspension Period</u>" has the meaning ascribed to such term in Section 8.

"<u>Transfer</u>" means, to sell, transfer, assign, pledge, hypothecate, encumber in any way or otherwise dispose of Registrable Shares (including any economic or voting interests with respect to such Registrable Shares and including by way of hedging and other derivative transaction that limits or eliminates economic risk), either voluntarily or involuntarily and with or without consideration.

"<u>Transferee</u>" means any Person (other than the Company) who acquires, by way of Transfer, Registrable Shares from the Shareholder.

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Section 2. <u>Priority Demand Registration and Demand Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 2(c), following the IPO, if (i) a secondary offering did not occur in connection with an IPO or (ii) the Eligible Shareholders participating in the secondary offering in connection with the IPO did not receive aggregate gross proceeds from that secondary offering equal to at least 50% of the aggregate amount of capital invested by the Eligible Shareholders for their Registrable Shares, Eligible Shareholders will have priority demand registration rights with respect to secondary offerings of Common Shares until the aggregate gross proceeds received from secondary offerings by such Eligible Shareholders following the IPO is equal to: (A) 50% of the aggregate amount of capital invested by Eligible Shareholders for their Registrable Shares minus (B) the aggregate gross proceeds from any secondary offering in connection with the IPO. The "priority" demand registration rights contemplated by this section will entitle any demand made by an Eligible Shareholder to "trump" any conflicting demand made by any other Demanding Holders (as defined below) but will not prevent other Demanding Holders otherwise exercising demand registration rights that do not conflict with this Section 2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 2(c), at any time after an IPO, certain Demanding Holders, as set forth below, may request that the Company effect the registration of Registrable Shares under the Securities Act, and the Company shall promptly use its reasonable best efforts to effect the registration under the Securities Act of such shares (a "<u>Demand Registration</u>"). Each of (i) the holders of Registrable Shares (A) holding (together with its Affiliates) at least ten percent (10%) of the Company's then-issued and outstanding Common Shares shall have the right to request two (2) annual Demand Registrations at the Company's expense and (B) holding (together with its Affiliates) at least five percent (5%) but less than ten percent (10%) of the Company's then-issued and outstanding Common Shares, will be entitled to request one (1) annual Demand Registration at the Company's expense (collectively, the "<u>Demanding Holders</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything contained in this Section 2 to the contrary, the Company shall not be obligated to effect any registration under the Securities Act except in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Demanding Holder may request more than two (2) Demand Registrations in any twelve (12) month period and, in no event shall (A) the Company be required to effect more than four (4) Demand Registrations in any twelve (12) month period; <u>provided</u>, <u>however</u>, if the Demanding Holders are unable to sell at least a majority of the Registrable Shares to be included in any registration pursuant to Section 2 as a result of an underwriter's cutback pursuant to Section 2(c)(iii), then such registration shall not count as a requested registration for purposes of this Section 2(c)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company may delay the filing or effectiveness of any registration statement for a period of up to sixty (60) days after the date of a request for registration pursuant to Section 2(a) if at the time of such request: (W) the Company is engaged, or has fixed plans to engage within sixty (60) days of the time of such request, in a firm commitment underwritten public offering of Primary Shares in which the holders of Registrable Shares have been or will be permitted to include all the Registrable Shares so requested to be registered pursuant to Section 3, (X) the Board reasonably determines that such registration and offering would interfere with any Material Transaction, (Y) such registration would require the public disclosure of material non-

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public information, which the Company, in the good faith judgment of the Board, has a bona fide business purpose for not disclosing publicly and the Board determines, as a result, that it is in the best interest of the Company to defer the filing or initial effectiveness, or suspend use of such registration statement at such time, or (Z) within the last forty-five (45) days the Company has completed a firm commitment underwritten public offering of Primary Shares in which the holders of Registrable Shares have been permitted to include all Registrable Shares so requested to be registered; provided, that the Company shall not initiate any delay within one hundred eighty (180) days after the end of any other delay or for periods exceeding, in the aggregate, ninety (90) days during any 12-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any registration pursuant to this Section 2, (A) upon the receipt of the written request for registration of Registrable Shares under the Securities Act by any Demanding Holder, the Company shall reasonably promptly give notice of such registration request, in accordance with the provisions of Section 3 hereunder, to each Shareholder and shall offer to and shall include in such proposed registration any Registrable Shares requested to be included in such proposed registration by each Shareholder, provided that such Shareholder responds in writing to the Company's notice within fifteen (15) days after delivery by the Company of such notice (which response shall specify the number of Registrable Shares such Shareholder is requesting to include in such registration), and (B) the Company may include in such registration any Primary Shares or Other Shares; <u>provided</u>, <u>however</u>, that if the managing underwriter advises the Company that the inclusion of all Registrable Shares, Primary Shares and/or Other Shares proposed to be included in such registration would interfere with the successful marketing (including pricing) of the Registrable Shares proposed to be included in such registration, then, the number of Registrable Shares, Primary Shares and/or Other Shares proposed to be included in such registration shall be included in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) first the Registrable Shares (or, if necessary, such Registrable Shares pro rata among the Shareholders thereof based upon the number of Registrable Shares requested to be registered by each such Shareholder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) second, the Primary Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) third, the Other Shares (or, if necessary, such Other Shares pro rata among the Shareholders thereof based upon the number of Other Shares requested to be registered by each Shareholder thereof or otherwise being registered);

*provided*, that at the election of the Company, (i) following good faith consultation with the Demanding Holders, any registration pursuant to this Section 2 may be converted into a registration pursuant to Section 3 (in which event, such registration shall not be deemed to be a Demand Registration requested under Section 2) or (ii) with the consent of all the Demanding Holders, the Primary Shares may be set at the same priority level as the Registrable Shares thereby being cutback on a pro rata basis based upon the number of Registrable Shares and Primary Shares requested to be included in such registration statement by the Shareholders and the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company shall not be obligated to effect any registration under the Securities Act requested by any Demanding Holder if the anticipated gross offering price of all Registrable Shares to be included therein would be expected to be less than $25,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If any holders of the Registrable Shares requesting to be included in a registration pursuant to Section 2(b) so elect, the offering of such Registrable Shares pursuant to such registration shall be in the form of an underwritten offering. The Company shall select one or more nationally recognized firms of investment bankers reasonably acceptable to the Majority Demanding Holders to act as the lead managing underwriter or underwriters in connection with such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) At any time before the registration statement covering such Registrable Shares becomes effective, the Demanding Holder may request the Company to withdraw or to not file the registration statement. Upon delivery of a notice by the Demanding Holder to such effect, the Company shall cease all efforts to secure effectiveness of the applicable registration statement and the Demanding Holder shall be deemed to have used one of their registration rights under Section 2(b), unless such request of withdrawal was caused by, or made in response to, (A) a material adverse effect or a similar event related to the business, properties, condition, or operations of the Company not known (without imputing the knowledge of any other Person to such holders) by the Demanding Holders at the time their Demand Registration request was made, or other material facts not known to such Demanding Holders at the time their Demand Registration request was made, or (B) a material adverse change in the financial markets; <u>provided</u>, <u>however</u>, that such withdrawn registration shall not count as a requested registration pursuant to Section 2(b) for purposes of Section 2(c)(i) above if the Company shall have been reimbursed (in the absence of any agreement to the contrary, pro rata by the Demanding Holders) for all out-of-pocket expenses incurred by the Company in connection with such withdrawn registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) No Demand Registration shall be deemed to have occurred for purposes of Section 2(b) if (x) the registration statement relating thereto (A) does not become effective, (B) is not maintained effective for the period required pursuant to Section 7(a)(i), or (C) the offering of the Registrable Shares pursuant to such registration statement is subject to a stop order, injunction or similar order or requirement of the Commission during such period, (y) more than 90% of the Registrable Shares requested by the Demanding Holder to be included in such registration are not so included pursuant to Section 2(c)(iii) or (z) the conditions to closing specified in any underwriting agreement, purchase agreement or similar agreement entered into in connection with the registration relating to such request are not satisfied (other than as a result of a material default or breach thereunder by such Demanding Holder or its Affiliates) or otherwise waived by such Demanding Holder; provided that the Company's obligation to pay expenses pursuant to Section 9 shall still apply.

Section 3. <u>Piggyback Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Company at any time proposes for any reason to register Primary Shares or Other Shares under the Securities Act (other than on Form S-4 or Form S-8 promulgated under the Securities Act (or any successor forms thereto)), it shall give written notice to each Shareholder of Registrable Shares of its intention to so register such Primary Shares or Other Shares at least 15 days before the initial filing of the registration statement related thereto and, upon the request,

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delivered to the Company within seven (7) days after delivery of any such notice by the Company, of the Shareholders to include in such registration Registrable Shares (or Registrable Shares as a result of conversion, exchange or exercise) (which request shall specify the number of Registrable Shares (or Registrable Shares as a result of conversion, exchange or exercise) proposed to be included in such registration), the Company shall include all such Registrable Shares (or Registrable Shares as a result of conversion, exchange or exercise) that are requested by such Shareholders to be included in such registration on the same terms and conditions as the securities otherwise being sold in such registration; <u>provided</u>, <u>however</u>, that (x) with respect to the IPO, the Board, in its discretion, shall have the right to exclude all Shareholders from participating in such IPO or limit the participation by such Shareholders pro rata to a specified percentage of their respective Registrable Shares and (y) with respect to any registration (including the IPO), if the managing underwriter advises the Company that the inclusion of all Registrable Shares requested to be included in such registration would interfere with the successful marketing (including pricing) of the Primary Shares or Other Shares proposed to be registered by the Company, then the number of Primary Shares, Registrable Shares and Other Shares proposed to be included in such registration shall be included in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, the Primary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second, the Registrable Shares (or, if necessary, such Registrable Shares pro rata among the Shareholders thereof based upon the number of Registrable Shares requested to be registered by each such Shareholder); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) third, the Other Shares (or, if necessary, such Other Shares pro rata among the Shareholders thereof based upon the number of Other Shares requested to be registered by each Shareholder thereof or otherwise being registered).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 3 prior to the effectiveness of such registration, whether or not any Shareholder has elected to include securities in such registration. Any Shareholder who has elected to include securities in such registration shall be permitted to withdraw from such registration (other than the IPO) by written notice to the Company if the price to the public at which the Registrable Shares are proposed to be sold will be less than 90% of the average closing price of the class of the Company's securities being sold in the offering during the 10 trading days preceding the date on which the notice of such offering was given pursuant to Section 3(a).

Section 4. <u>Registrations on Form S-3</u>.

At all times following the IPO, the Company shall use its reasonable best efforts to qualify for registration on Form S-3 (or any successor form to Form S-3 regardless of its designation). If the Company is entitled to file a registration statement on Form S-3 (or any successor form to Form S-3 regardless of its designation) to register Registrable Shares, then the Company shall be entitled to use such form to register any Registrable Shares.

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Section 5. <u>"</u><u>Market Standoff</u><u>"</u> <u>Agreement</u>.

In connection with the IPO or Subsequent Offering (as applicable), each Shareholder agrees and each executive officer of the Company and directors of the Company at the time shall agree that, he or it shall not sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of, any Common Shares (other than (i) as may be disposed of through a trading plan adopted by any executive officer or director of the Company pursuant to Rule 10b5-1 under the Exchange Act, which plan has been established and is in effect prior to the commencement of the relevant Lockup Period (as defined below), (ii) Common Shares acquired in or after such IPO or Subsequent Offering, as applicable, or (iii) as otherwise excepted from the transfer restrictions set forth in any lockup agreement executed with the underwriter of such IPO or Subsequent Offering) without the prior written consent of the Company, (i) with respect to an IPO, for a period (the "<u>Lockup Period</u>") designated by the Company in writing to the holders of Common Shares, which period shall begin not more than seven (7) days prior to the Registration Date and shall not last more than 180 days after the Registration Date (or if the relevant Shareholder holds less than 10% of the Common Shares at such time, the lesser of such period and any shorter period requested by the managing underwriter), and to execute an agreement reflecting the foregoing as may be reasonably requested by the Company at the time of the IPO and (ii) with respect to a Subsequent Offering that such Shareholder participates in, for a period (the "<u>Subsequent Lockup Period</u>" together with the Lockup Period, the "<u>Lockup Periods</u>") designated by the Company in writing to the holders of Common Shares, which period shall begin not more than seven (7) days prior to the Subsequent Registration Date and shall not last more than 90 days after the Subsequent Registration Date (or if any Shareholder holds less than 10% of the Common Shares at such time, the lesser of such period and any shorter period requested by the managing underwriter), and to execute an agreement reflecting the foregoing as may be reasonably requested by the Company at the time of the Subsequent Offering. No Person subject to this Section 5 shall be released from all or any of its obligations under this Section 5 or any other agreement, arrangement or understanding entered into pursuant to this Section 5 unless all other Persons subject to the same obligation are also similarly released on a pro rata basis based on the number of Registrable Shares then held. This Section 5 will cease to apply to a Shareholder once such Shareholder no longer holds any Registrable Shares. The underwriters in connection with an IPO or Subsequent Offering are intended third-party beneficiaries of this Section 5 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Shareholder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with an IPO or Subsequent Offering that are consistent with this Section 5 or that are necessary to give further effect thereto. If any Subsequent Offering shall be an underwritten offering, the Company will not effect any public sale or distribution of Primary Shares or Other Shares (other than on Form S-4 or Form S-8 promulgated under the Securities Act (or any successor forms thereto)) for its own account during the Subsequent Lockup Period.

Section 6. <u>Transfer Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No holder of Registrable Shares may knowingly Transfer, in one transaction or a series of related transactions, Common Shares to a Person engaged in a Competitive Business or an Affiliate of such Person, without the prior consent of the Board; <u>provided</u>, <u>however</u>, that the foregoing restriction shall not apply to any Transfer in an underwritten offering or on-market through a broker/dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No holder of Registrable Shares may knowingly Transfer Registrable Shares to an Affiliate of the Company or to a Person who would become an Affiliate after such Transfer unless such Affiliate signs a joinder to this Agreement or the Company agrees to such Transfer; provided, however, that the foregoing restriction shall not apply to any Transfer in an underwritten offering or on-market through a broker/dealer.

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Section 7. <u>Preparation and Filing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If and whenever the Company is under an obligation pursuant to the provisions of this Agreement to effect the registration of any Registrable Shares, the Company shall, as expeditiously as practicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) use its reasonable best efforts to cause a registration statement that registers such Registrable Shares to become and remain effective until the earlier of (x) one hundred and eighty (180) days following the date such registration statement became effective and (y) the date on which all of such Registrable Shares have been disposed of; <u>provided</u> that such period shall be extended for a period of time equal to the period the Demanding Holder refrains from selling any securities included in such registration statement at the request of the Company or an underwriter of the Company pursuant to the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) furnish, at least five business days before filing a registration statement that registers such Registrable Shares, a prospectus relating thereto or any amendments or supplements relating to such a registration statement or prospectus, to one counsel selected by the Majority Demanding Holders ("<u>Shareholders' Counsel</u>"), copies of all such documents proposed to be filed (it being understood that such five-business-day period need not apply to successive drafts of the same document proposed to be filed so long as such successive drafts are supplied to the Shareholders' Counsel in advance of the proposed filing by a period of time that is customary and reasonable under the circumstances);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for the period required under Section 7(a)(i) and to comply with the provisions of the Securities Act with respect to the sale or other disposition of such Registrable Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) notify the Shareholders' Counsel (and with respect to clause (b) or (c) below, the holders of Registrable Shares included in such registration) in writing (a) of the receipt by the Company of any notification with respect to any comments by the Commission with respect to such registration statement or prospectus or any amendment or supplement thereto or any request by the Commission for the amending or supplementing thereof or for additional information with respect thereto, (b) of the receipt by the Company of any notification with respect to the issuance by the Commission of any stop order suspending the effectiveness of such registration statement or prospectus or any amendment or supplement thereto or the initiation or threatening of any proceeding for that purpose and (c) of the receipt by the Company of any notification with respect to the suspension of the qualification of such Registrable Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use its reasonable best efforts to register or qualify such Registrable Shares under such other securities or blue sky laws of such jurisdictions as the Majority Demanding Holders reasonably request and do any and all other acts and things which may be reasonably necessary or advisable to enable the Shareholders to consummate the disposition in such jurisdictions of the Registrable Shares included in a registration; <u>provided</u>, <u>however</u>, that the Company will not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required to do so but for this clause (v);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) furnish to the holders of Registrable Shares such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as such holders may reasonably request in order to facilitate the public sale or other disposition of such Registrable Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) without limiting subsection (v) above, use its best efforts to cause such Registrable Shares to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the holders of such Registrable Shares to consummate the disposition of such Registrable Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) notify the holders of Registrable Shares included in a registration on a timely basis at any time when a prospectus relating to such Registrable Shares or any document related thereto includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing and prepare and furnish to the holders of Registrable Shares included in such registration a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the offerees of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) make available upon reasonable notice and during normal business hours, for inspection by the Majority Demanding Holders, any underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other agent retained by the Majority Demanding Holders or underwriter (collectively, the "<u>Inspectors</u>"), all pertinent financial and other records, pertinent documents and properties of the Company (collectively, the "<u>Records</u>"), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors and employees to supply all information (together with the Records, the "<u>Information</u>") reasonably requested by any such Inspector in connection with such registration statement. Any of the Information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, shall not be disclosed by the Inspectors unless (A) the disclosure of such Information is necessary to avoid or correct a material misstatement or omission in the registration statement, (B) the release of such Information is ordered pursuant to a subpoena or other order from a court or governmental agency or authority of competent jurisdiction, (C) such Information has been made generally available to the public through no breach of the nondisclosure obligations of the Inspectors or their Affiliates or (D) such disclosure is required to be made under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) use its reasonable best efforts to prevent the issuance of an order suspending the effectiveness of a registration statement, and if one is issued, use its best efforts to obtain the withdrawal of any order suspending the effectiveness of a registration statement at the earliest possible moment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) use its reasonable best efforts to obtain from its independent certified public accountants "comfort letters" in customary form and at customary times and covering matters of the type customarily covered by comfort letters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) use its reasonable best efforts to obtain from its counsel an opinion or opinions in customary form (which shall also be addressed to the holders selling Registrable Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) enter into such customary agreements (including, if applicable, an underwriting agreement in customary form, including customary representations, warranties, covenants and indemnities) and take such customary action as the underwriters may reasonably request in order to expedite or facilitate the disposition of Registrable Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) not later than the effective date of the applicable registration statement, provide a CUSIP number for all Registrable Shares and as applicable provide the applicable transfer agent with printed certificates for the Registrable Shares which are in a form eligible for deposit with The Depository Trust Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) provide and cause to be maintained a transfer agent and registrar (which may be the same entity and which may be the Company) for such Registrable Shares (and in connection therewith, if required by the Company's transfer agent, the Company will, as soon as reasonably practicable, use its commercially reasonable efforts to cause an opinion of counsel in customary form as to the effectiveness of the registration statement or the availability of Rule 144 to be delivered to and maintained with such transfer agent, together with any other authorizations, certificates and directions required by the transfer agent which authorize and direct the transfer agent to transfer such Registrable Shares without any legend upon sale by the Shareholders or the underwriter or managing underwriter of an underwritten offering of Registrable Shares, if any, of such Registrable Shares under the registration statement or pursuant to Rule 144 and to deposit such Registrable Shares with The Depository Trust Company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) promptly issue to any underwriter to which the holders of Registrable Shares may sell shares in such offering certificates evidencing such Registrable Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) in connection with an underwritten offering, participate, to the extent reasonably requested by the managing underwriter for the offering, in customary efforts to sell Registrable Shares being offered, and cause such steps to be taken to ensure good faith participation of senior management officers of the Company in "road shows" as is customary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) use its reasonable best efforts to list such Registrable Shares on any national securities exchange on which any Common Shares are listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) cooperate with each holder and each underwriter, if any, participating in the disposition of such Registrable Shares and their respective counsel in connection with any filings required to be made with FINRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission and make available to its securityholders, as soon as reasonably practicable, earnings statements covering a period of 12 months beginning with the first day of the Company's first full calendar quarter after the effective date of the subject registration statement; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) otherwise use its reasonable best efforts to take all other steps necessary to effect the registration of such Registrable Shares contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each holder of the Registrable Shares, upon receipt of any notice from the Company of any event of the kind described in Section 7(a)(viii) hereof, shall forthwith discontinue disposition of the Registrable Shares pursuant to the registration statement covering such Registrable Shares until such holder's receipt of the copies of the supplemented or amended prospectus contemplated by Section 7(a)(viii) hereof, and, if so directed by the Company, such holder shall deliver to the Company all copies, other than permanent file copies then in such holder's possession, of the prospectus covering such Registrable Shares at the time of receipt of such notice. For the avoidance of doubt, the period during which the disposition of the Registrable Shares is discontinued pursuant to the foregoing sentence or pursuant to Section 9 hereof shall not count towards the period set forth in Section 8(a)(i) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall not permit any officer, director, underwriter, broker or any other Person acting on behalf of the Company to use any Free Writing Prospectus in connection with the registration statement covering Registrable Shares, without the prior written consent of the Majority Demanding Holders which consent shall not be unreasonably withheld or delayed. Any consent to the use of a Free Writing Prospectus included in an underwriting agreement to which the Majority Demanding Holders are parties shall be deemed to satisfy the requirement of such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company agrees not to file or make any amendment to any registration statement with respect to any Registrable Shares, or any amendment of or supplement to a related prospectus or any Free Writing Prospectus used in connection therewith, that refers to any Shareholder covered thereby by name, or otherwise identifies such Shareholder as the holder of any securities of the Company, without the consent of such Shareholder, such consent not to be unreasonably withheld or delayed, unless and to the extent such disclosure is required by law, in which case the Company shall provide written notice to such Shareholder no less than five business days prior to the filing of such amendment to any registration statement or amendment of or supplement to the prospectus or any Free Writing Prospectus.

Section 8. <u>Suspension</u>.

Notwithstanding anything in this Agreement to the contrary, the Company may, by notice in writing to each holder of Registrable Shares to which a prospectus relates, require each such holder of Registrable Shares to suspend, for up to sixty (60) days (the "<u>Suspension Period</u>"), the use of any prospectus included in a registration statement filed under this Agreement if (i) a Material Transaction or (ii) an event or circumstance that would require the public disclosure of material non-public information, which the Company, in the good faith judgment of the Board, has a bona fide business purpose for not disclosing publicly, exists that would require an amendment to such registration statement or supplement to such prospectus (including any such amendment or supplement made through incorporation by reference to a report filed under Section 13 of the Exchange Act); <u>provided</u>, that the Company shall not initiate any suspension within one

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hundred eighty (180) days after the end of any other suspension or for periods exceeding, in the aggregate, ninety (90) days during any 12-month period. The period during which such prospectus must remain effective pursuant to Section 7 shall be extended by a period equal to the Suspension Period. The Company may (but shall not be obligated to) withdraw the effectiveness of any registration statement subject to this provision.

Section 9. <u>Expenses</u>.

All expenses incurred by the Company in the performance of or compliance with this Agreement and all reasonable fees and disbursements of one lead counsel (and special and local counsel as required), not to exceed Seventy-Five Thousand Dollars ($75,000) in the aggregate to the holders of Registrable Shares to represent such Persons in connection with such registration, which counsel shall be selected by the Majority Demanding Holders, will be borne by the Company, regardless of whether a registration statement becomes effective.

Section 10. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with any registration of any Registrable Shares under the Securities Act pursuant to this Agreement, the Company shall indemnify and hold harmless the holders of Registrable Shares, each of such holder's officers, directors, employees, members, partners, and advisors and their respective Affiliates, each underwriter, broker or any other person acting on behalf of the holders of Registrable Shares and each other Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act against any losses, claims, damages, liabilities, expenses (including reasonable costs of investigation and legal expenses) or actions joint or several (or actions in respect thereof), to which any of the foregoing persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or allegedly untrue statement of a material fact contained in the registration statement under which such Registrable Shares were registered under the Securities Act, any preliminary prospectus, Issuer Free Writing Prospectus, or final prospectus contained therein or otherwise filed with the Commission, any amendment or supplement thereto or any document incident to registration or qualification of any Registrable Shares, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or, with respect to any prospectus, necessary to make the statements therein in light of the circumstances under which they were made not misleading, or any violation by the Company of the Securities Act or state securities or blue sky laws applicable to the Company or relating to action or inaction required of the Company in connection with such registration or qualification under such state securities or blue sky laws; and shall promptly reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage, liability or action; <u>provided</u>, <u>however</u>, that the Company shall not be liable in any such case to any holder of Registrable Shares to the extent that any such loss, claim, damage, liability or action (including any legal or other expenses incurred) arises out of or is based upon a materially untrue statement or omission made in said registration statement, preliminary prospectus, Issuer Free Writing Prospectus, final prospectus, amendment, supplement or document incident to registration or qualification of any Registrable Shares in reliance upon and in conformity with written information furnished to the Company by such holder of Registrable Shares specifically for use in the preparation thereof; <u>provided</u>, <u>further</u>, that the indemnification shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld or delayed).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any registration of Registrable Shares under the Securities Act pursuant to this Agreement, to the extent permitted by applicable law, each holder of Registrable Shares shall severally (based on the percentage of the securities included in such registration that were owned by such holder) and not jointly indemnify and hold harmless (in the same manner and to the same extent as set forth in Section 10(a)) the Company, each director of the Company, each officer of the Company who shall sign such registration statement, each underwriter, broker or other person acting on behalf of the holders of Registrable Shares and each person who controls any of the foregoing persons within the meaning of the Securities Act with respect to any violation thereof, in each case, to the extent (and only to the extent) that such violation occurs in reliance upon and in conformity with written information furnished to the Company or such underwriter by such holder of Registrable Shares specifically for use in connection with the preparation of such registration statement, preliminary prospectus, Issuer Free Writing Prospectus, final prospectus, amendment, supplement or document; <u>provided</u>, <u>however</u>, that the maximum amount of liability in respect of such indemnification shall be limited, in the case of each holder of Registrable Shares, to an amount equal to the net proceeds actually received by such holder from the sale of Registrable Shares effected pursuant to such registration (less the aggregate amount of any damages which such holder has otherwise been required to pay in respect of such loss, claim, damage, liability or action or any substantially similar loss, claim, damage, liability or action arising from the sale of such Registrable Shares); <u>provided</u>, <u>further</u>, that the indemnification shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the such holder (which consent shall not be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing involving a claim referred to in this Section 10, such indemnified party will, if a claim in respect thereof is made against an indemnifying party, give written notice to the latter of the commencement of such action, suit, proceeding, investigation or threat. The failure of any indemnified party to notify an indemnifying party of any such action shall not (unless and to the extent that such failure shall have a material adverse effect on the indemnifying party) relieve the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and to assume the defense thereof, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof; <u>provided</u>, <u>however</u>, that if representation of the indemnified party by the counsel retained by the indemnifying party would be inappropriate due to an actual or potential conflict of interest between such indemnified party and any other party represented by such counsel in such proceeding, the indemnified party shall have the right to retain its own counsel and the indemnifying party shall reimburse such indemnified party and any Person controlling such indemnified party for that portion of the fees and expenses of any counsel retained by the

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indemnified party which is reasonably related to the matters covered by the indemnity agreement provided hereunder. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one lead counsel (plus appropriate local and special counsel) to represent the indemnified party with respect to such claim. Whether or not such defense is assumed by the indemnifying party, such indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld or delayed). Without the prior written consent of the indemnified party, the indemnifying party shall not consent to entry of any judgment or enter into any settlement that (x) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release, in form and substance reasonably satisfactory to the indemnified party, from all liability in respect of such claim or litigation for which such indemnified party would be entitled to indemnification hereunder or (y) involves the imposition of equitable remedies or the imposition of any obligations on the indemnified party or adversely affects such indemnified party other than as a result of financial obligations for which such indemnified party would be entitled to indemnification hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant hereto were determined by <u>pro</u> <u>rata</u> allocation or by any other method or allocation which does not take account of the equitable considerations referred to herein. The parties agree that the maximum amount of contribution by any holder of Registrable Shares shall not, in any event, exceed an amount equal to the net proceeds actually received by such holder from the sale of Registrable Shares effected pursuant to the applicable registration statement (less the aggregate amount of any damages which such holder has otherwise been required to pay in respect of any loss, claim, damage, liability or action or any substantially similar loss, claim, damage, liability or action arising from the sale of such Registrable Shares). No person guilty or liable of fraudulent misrepresentation shall be entitled to contribution from any person. No selling Shareholder shall be liable for contribution under this Section 10(d), except under such circumstances as such selling Shareholder would have been liable for indemnification under this Section 10 if such indemnification were enforceable under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent that any holder of Registrable Shares is, or would be expected to be, deemed to be an underwriter of Registrable Shares pursuant to any Commission comments or policies or any court of law or otherwise, the Company agrees that (x) the indemnification and contribution provisions contained in this Section 10 shall be applicable to the benefit of such holder in its role as deemed underwriter in addition to its capacity as a holder of Registrable Shares (so

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long as the amount for which any other holder is or becomes responsible does not exceed the amount for which such holder would be responsible if the holder were not deemed to be an underwriter of Registrable Shares) and (y) such holder and its representatives shall be entitled to conduct the due diligence which would normally be conducted in connection with an offering of securities registered under the Securities Act, including receipt of customary opinions and comfort letters.

Section 11. <u>Underwriting Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provisions of this Agreement, to the extent that in connection with a proposed sale of Registrable Shares which have been registered with the Commission pursuant to this Agreement, the holders of Registrable Shares shall enter into an underwriting agreement or similar agreement that contains customary provisions covering one or more issues addressed in such Sections of this Agreement, the provisions contained in such Sections of this Agreement addressing such issue or issues shall be of no force or effect with respect to such registration, but this provision shall not apply to the Company if the Company is not a party to the underwriting agreement or similar agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any proposed sale through an underwritten offering of Registrable Shares which have been registered with the Commission pursuant to this Agreement through an underwritten offering, the Company shall negotiate in good faith and enter into a reasonable and customary underwriting agreement with the underwriters thereof. The Company shall be entitled to receive customary indemnities from lead underwriters, selling brokers, dealer managers and similar security industry professionals participating in the distribution, to the same extent as provided above with respect to the information so furnished in writing by such Persons specifically for inclusion in any prospectus or registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No underwriting agreement (or other agreement in connection with a proposed sale of Registrable Shares) shall require any holder of Registrable Shares to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such holder, the ownership of such holder's Registrable Shares and such holder's intended method or methods of disposition and any other representation required by law or to furnish any indemnity to any Person which is broader than the indemnity furnished by such holder hereunder unless, in each case and to the extent a holder is allowed by applicable law, the Majority Demanding Holders have agreed to such representations, warranties or other agreements, in which case, such additional representations, warranties and other agreements shall be limited in scope to the additional representations, warranties and other agreements that the Majority Demanding Holders agree to provide.

Section 12. <u>Information by Holder</u>.

Each Shareholder shall furnish to the Company such written information regarding such Person and the distribution proposed by any holder of Registrable Shares as the Company may reasonably request in writing and as shall be reasonably required in connection with any registration referred to in this Agreement.

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Section 13. <u>Exchange Act Compliance</u>.

From the Registration Date or such earlier date as a registration statement filed by the Company pursuant to the Exchange Act relating to any class of the Company's securities shall have become effective, the Company shall comply with all of the reporting requirements of the Exchange Act applicable to it and shall comply with all other public information reporting requirements of the Commission and take such further action as any holder of Registrable Shares may reasonably request, which are conditions to the availability of Rule 144. The Company shall cooperate with the parties to this Agreement in supplying such information as may be necessary such Persons to complete and file any information reporting forms presently or hereafter required by the Commission as a condition to the availability of Rule 144.

Section 14. <u>No Conflict of Rights; Future Rights</u>.

Unless otherwise consented to by the Majority Holders, the Company shall not, after the date hereof, grant any registration rights which conflict with or impair the rights granted to each Shareholder hereby. If at any time following the date hereof, the Company grants to any present or future shareholder of the Company rights which in any manner cause or participate in any registration statement of the Company that, in the reasonable judgment of any other Shareholder, are superior to or conflict with the rights granted to the Shareholders hereby, such grant shall be null, void and <u>ultra</u> <u>vires</u>.

Section 15. <u>Termination</u>.

This Agreement shall terminate and be of no further force or effect with respect to a Shareholder when there shall no longer be any Registrable Shares outstanding with respect to such Shareholder.

Section 16. <u>Benefits of Agreement; Third Party Beneficiaries</u>.

Except as provided herein, this Agreement shall bind and inure to the benefit of the Company, each Shareholder, and subject to Section 17, the respective successors and assigns of the Company and its Shareholders.

Section 17. <u>Assignment</u>.

Each Shareholder may assign its rights hereunder to any permitted purchaser or transferee of Registrable Shares; <u>provided</u>, <u>however</u>, that such purchaser or transferee shall, as a condition to the effectiveness of such assignment, be required to execute a counterpart to this Agreement agreeing to be treated as a holder of Registrable Shares whereupon such purchaser or transferee shall have the benefits of, and shall be subject to the restrictions contained in, this Agreement as if such purchaser or transferee was originally a party hereto. The Company may not assign any rights hereunder without the consent of the holders of a majority of the Registrable Shares.

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Section 18. <u>Entire Agreement</u>.

This Agreement, and the other writings referred to herein or delivered pursuant hereto, contain the entire agreement among the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or understandings with respect thereto.

Section 19. <u>Notices</u>.

All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or sent by telecopy, nationally-recognized overnight courier or first class registered or certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by such party to the other parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Company, to:

Accelerant Holdings

c/o Accelerant Re (Cayman) Ltd.

Unit 106, Windward 3, Regatta Office Park

West Bay Road, Grand Cayman

Attention: Nancy Hasley

With a copy to: David Pelsue

and a copy to (which shall not constitute notice):

Sidley Austin LLP

787 Seventh Avenue

New York, New York 10019

Attention: Samir Gandhi/Robert Ryan

Telephone: (212) 839-5300

Email: sgandhi@sidley.com; rryan@sidley.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any Shareholder, to its address as set forth in the register of the Company.

All such notices, requests, consents and other communications shall be deemed to have been delivered (a) in the case of personal delivery or delivery by telecopy, on the date of such delivery, (b) in the case of dispatch by nationally-recognized overnight courier, on the second business day following such dispatch and (c) in the case of mailing, on the five business day after the posting thereof.

Section 20. <u>Modifications; Amendments; Waivers</u>.

The terms and provisions of this Agreement may not be modified or amended except pursuant to a writing signed by the Company and each Shareholder; <u>provided</u>, <u>however</u>, that the Majority Holders may approve any modification or amendment solely to add a party to this Agreement. Any waiver of any provision of this Agreement requested by any party hereto must be granted in advance, in writing by the party granting such waiver.

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Section 21. <u>Counterparts; Facsimile Signatures</u>.

This Agreement may be executed in any number of original or facsimile counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. Each party hereto understands and agrees that any portable document format (PDF) file or other reproduction of its signature on any counterpart shall be equal to and enforceable as its original signature and that any such reproduction shall be a counterpart hereof that is fully enforceable in any court or arbitral panel of competent jurisdiction.

Section 22. <u>Headings</u>.

The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Agreement.

Section 23. <u>Governing Law; Consent to Jurisdiction and Venue; Waiver of Jury Trial</u>.

This Agreement (and all non-contractual obligations arising from or in connection with it) shall be governed by and construed in accordance with Delaware law and each of the parties irrevocably submits to the exclusive jurisdiction of the federal or state courts located in Delaware as regards any claim, dispute or matter (including any non-contractual claim, dispute or matter) arising out of or relating to this Agreement or any of the documents to be executed pursuant to this Agreement.

Section 24. <u>Severability</u>.

It is the desire and intent of the parties that the provisions of this Agreement be enforced to the fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, in the event that any provision of this Agreement would be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

\* \* \* \*

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**IN WITNESS WHEREOF**, the parties hereto have executed this Registration Rights Agreement on the date first written above.

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| |
|:---|
| **<u>COMPANY</u>:** |
|  **ACCELERANT HOLDINGS** |
| By: |
|  Name: [•] |
|  Title: [•] |

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**ACCELERANT HOLDINGS REGISTRATION RIGHTS AGREEMENT** 

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IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement on the date first written above.

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| |
|:---|
| **<u>SHAREHOLDER</u>:** |
| **[•]** |
|  By: [•] |
|  By: |
|  Name: [•] |
|  Title: [•] |

---

**ACCELERANT HOLDINGS REGISTRATION RIGHTS AGREEMENT** 

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IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement on the date first written above.

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| |
|:---|
| **<u>SHAREHOLDER</u>:** |
| **[•]** |
|  By: [•] |
|  By: |
|  Name: [•] |
|  Title: [•] |

---

**ACCELERANT HOLDINGS REGISTRATION RIGHTS AGREEMENT** 

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IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement on the date first written above.

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| |
|:---|
| **<u>SHAREHOLDER</u>:** |
| **[•]** |
|  By: [•] |
|  By: |
|  Name: [•] |
|  Title: [•] |

---

**ACCELERANT HOLDINGS REGISTRATION RIGHTS AGREEMENT** 

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IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement on the date first written above.

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| |
|:---|
| **<u>SHAREHOLDER</u>:** |
| **[•]** |
|  By: [•] |
|  By: |
|  Name: [•] |
|  Title: [•] |

---

**ACCELERANT HOLDINGS REGISTRATION RIGHTS AGREEMENT** 

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IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement on the date first written above.

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| |
|:---|
| **<u>SHAREHOLDER</u>:** |
| **[•]** |
|  By: [•] |
|  By: |
|  Name: [•] |
|  Title: [•] |

---

**ACCELERANT HOLDINGS REGISTRATION RIGHTS AGREEMENT** 

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IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement on the date first written above.

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| |
|:---|
| **<u>SHAREHOLDER</u>:** |
| **[•]** |
|  By: [•] |
|  By: |
|  Name: [•] |
|  Title: [•] |

---

**ACCELERANT HOLDINGS REGISTRATION RIGHTS AGREEMENT**

## Exhibit 10.37

**Exhibit 10.37** 

**ACCELERANT HOLDINGS** 

**SHARE INCENTIVE PLAN** 

**SHARE OPTION AGREEMENT** 

Any capitalized terms used but not defined in this Share Option Agreement (the "***Option Agreement***") shall have the meanings ascribed to such terms in the Accelerant Holdings Share Incentive Plan (as amended from time to time, the "***Plan***"). In case of discrepancy between the Option Agreement and the Plan, the latter shall prevail.

**I. <u>NOTICE OF SHARE OPTION GRANT</u>** 

**Name:** 

**Address:** 

United States

The Holder named above has been granted an Option to purchase common shares ("***Shares***") of Accelerant Holdings, a Cayman Islands company limited by shares (the "***Company***"), subject to the terms and conditions of the Plan and this Option Agreement, as follows:

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| | |
|:---|:---|
| Date of Grant: |  |
| Exercise Price per Share: |  |
| Total Number of Shares Granted: |  |
| Total Exercise Price: |  |
| Type of Option: | <u>X</u> Incentive Stock Option<br> <u>X</u> Nonqualified Option |
| Term/Expiration Date: |  |

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<u>Vesting Schedule:</u>

This Option shall be exercisable, in whole or in part, according to the following vesting schedule:

The Option shall become vested and exercisable as to twenty-five percent (25%) of the Shares subject to the Option on the one-year anniversary of the Date of Grant and six and one-quarter percent (6-1/4%) of the Shares subject to the Option on the first day of each of the 12 calendar quarters beginning after such anniversary, provided that (i) Holder continues to be a

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Service Provider through each such date, and (ii) the Company's initial public offering of its Shares closes on or prior to the 30<sup>th</sup> calendar day following the Date of Grant. In the event that the Company's initial public offering does not close on or prior to the 30<sup>th</sup> calendar day following the Date of Grant, the Option shall be forfeited for no consideration.

Notwithstanding the foregoing, upon the occurrence of a Change in Control while Holder continues to be a Service Provider, the Option shall become vested and exercisable as to one hundred percent (100%) of the Shares subject to the Option.

<u>Termination and Exercise Period:</u>

Any unexercised portion of the Option shall immediately terminate upon Holder becoming a Bad Leaver.

Any unvested portion of the Option shall immediately terminate upon Holder becoming a Good Leaver. Any vested portion of such Option shall be exercisable for thirty (30) days after Holder ceases to be a Service Provider; however, if such cessation of service is due to Holder's termination by the Company without Cause, Holder's death, or Holder's Disability, the vested portion of such Option shall be determined as if Holder had remained a Service Provider for 12 additional months, and any such vested portion of the Option shall be exercisable for six (6) months after Holder ceases to be a Service Provider and shall terminate thereafter. Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above and this Option may be subject to earlier termination as provided in the Plan.

For purposes of this Option Agreement:

"***Affiliate***", when used with reference to any Person, means any other Person (i) Controlled by such first Person, (ii) capable of Controlling such first Person, or (iii) with which such first Person is under the common Control of another; provided that any Person serving as the investment advisor to or manager of a limited partnership shall be deemed an Affiliate of such limited partnership.

"***Bad Leaver***" means Holder is terminated as a Service Provider for Cause, or Holder ceases being a Service Provider at a time when Cause exists, as determined by the Committee in good faith.

"***Bad Leaver Call Option Price***" means, with respect to the Holder's Called Securities, an aggregate amount equal to the lesser of (i) the Fair Market Value of such Called Securities, and (ii) the Original Value of such Called Securities, in each case net of any applicable withholding tax.

"***Business Interests***" means any business ventures in which the Company or any Subsidiary is entitled to a share of the revenue or profits, any minority equity interests, or any other business including, but not limited to, managing general agencies (MGAs), brokers or other insurance intermediaries in each case which the Company or any Subsidiary holds an interest in (whether or not Controlling).

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"***Call Notice***" means written notice delivered in accordance with the terms set forth in Section 5.

"***Call Option***" means the Company's call option pursuant to the terms and conditions set forth in Section 5.

"***Called Securities***" means vested Shares in respect of which a Calling Party has delivered a Call Option under Section 5.

"***Calling Party***" means the Company and/or its designees.

"***Cause***" means (a) "Cause" as defined in any Company Agreement, or (b) in the absence of any such definition, Holder's (i) commission of a felony or a crime involving moral turpitude or commission of any other act or omission involving dishonesty or fraud with respect to the Company or any of its Subsidiaries or any of their customers, vendors or Service Providers, (ii) substantial and repeated failure to perform duties of the office held by Holder as reasonably directed by the Company (other than as a result of Holder's Disability), (iii) gross negligence or willful misconduct with respect to the Company or any of its Subsidiaries or any of their customers, vendors or Service Providers, (iv) conduct which could reasonably be expected to bring the Company or any of its Subsidiaries into substantial public disgrace or disrepute, (v) material breach of any Company Agreement and/or (f) material failure to observe policies or standards regarding employment practices (including non-discrimination and sexual harassment policies) as approved by the Company from time to time.

"***Closing***" means the closing of a purchase of vested Shares pursuant to the terms and conditions set forth in Section 5.

"***Company Agreement***" means any employment agreement, consulting agreement, offer letter, non-competition, non-solicitation, confidentiality, intellectual property or other restrictive covenant agreement or any other similar agreement between Holder and the Company or any of its Subsidiaries.

"***Confidential Information***" information (whether or not recorded in documentary form, or stored on any magnetic or optical disk or memory) relating to the business, products, affairs and finances of the Company or any Subsidiary for the time being confidential to the Company or any Subsidiary and trade secrets including, without limitation, technical data and know-how relating to the business of the Company, any Subsidiary or any of their business contacts, including in particular (by way of illustration only and without limitation) any contracts between the Company and/or any Subsidiary and any of their business partners, rate filings overseen by the Company and/or any Subsidiary or its managing general agencies, underwriting data, any other general non- public information shared by managing general agency partners with the Company or any Subsidiary, and details of reinsurance schemes.

"***Control***" means, in respect of any Person, the power to manage or govern such Person, or to appoint the managing and governing bodies of such Person or a majority of the members thereof, whether through the ownership of voting securities, by contract or otherwise (in such respect, a limited partnership shall be deemed to be Controlled by its general partner).

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"***Data***" means Holder's name, home address, telephone number, date of birth, social insurance number, salary, nationality, job title, any Shares or directorships held in the Company and details of all Options, Option Shares or any other entitlements to Shares awarded, canceled, exercised, vested, unvested or outstanding in Holder's favor.

"***Disability***" means the disability of Holder caused by any physical or mental injury, illness or incapacity as a result of which Holder is, or is reasonably expected to be, unable to effectively perform the essential functions of Holder's duties for a substantially continuous period of more than 120 days or for any 180 days (whether or not continuous) within a 365 day period, as determined by the Committee in good faith.

"***Fair Market Value***" means, with respect to any Called Securities in connection with the exercise of the Call Option, the cash proceeds that the holder of such Called Securities would be entitled to receive following a hypothetical sale (and such hypothetical sale shall be deemed as between a willing vendor and a willing purchaser of all of the issued Shares in the open market by arm's length private treaty for cash payable in full on completion), as at the date of delivery of the Call Notice as agreed between the Board and the Holder within thirty (30) days of the delivery of the Call Notice.

"***Good Leaver***" means Holder ceases being a Service Provider under circumstances that do not cause Holder to be or become a Bad Leaver.

"***Good Leaver Call Option Price***" means, with respect to the Holder's Called Securities, an aggregate amount equal to the Fair Market Value of such Called Securities, net of any applicable withholding tax.

"***Group***" means the Company and its Subsidiaries, and Group Company shall be construed accordingly.

"***Intellectual Property***" means any discovery, formula, trade secret, invention, innovation, improvement, development, method of doing business, process, program, design, analysis, drawing, report, data, software, firmware, logo, device, method, product or any similar or related information, any copyrightable work or any proprietary information.

"***Option Shares***" means any Shares acquired upon the exercise of any part of the option granted under this Option Agreement.

"***Original Value***" means, with respect to any Called Securities in connection with the exercise of the Call Option, the actual amount of consideration paid to the Company for such Called Securities at the time of exercise of this Option.

"***Promised Interest***" means any oral or written promise to grant any Options or Option Shares, or any other equity or equity-related interest in the Company or any Subsidiary, including, but not limited to any promise set forth in an offer letter or other agreement with a Subsidiary and/or related oral discussions.

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"***Required Tax Payment***" means such amount as the Company may be required, under all applicable federal, state, local or other laws or regulations, to withhold and pay over as income or other withholding taxes and social insurance contributions with respect to any Option exercise, disposition of the Option or disposition of Option Shares.

"***Securities Act***" means the Securities Act of 1933, as amended.

"***Service Provider***" means providing services to the Company or any of its Subsidiaries as an employee, consultant or director.

"***Supplier***" means any person, firm, company or other undertaking who or which provides goods or services (other than utilities or administration-related supplies) to the Company or any Subsidiary or Business Interests and with whom the Holder dealt to a material extent at any time during the Relevant Period.

"***Tax Date***" means a date on which a withholding obligation arises in connection with a Required Tax Payment.

"***Termination Date***" means the date on which the service of the Manager as an employee of or consultant to the Company or any of its Subsidiaries (based on the terms of his or her employment or service agreement) actually terminates for whatever reason.

"***Termination Event***" means (i) the Holder is no longer employed or engaged (directly or indirectly) in any manner with the Company or any Subsidiary or Affiliate thereof for any reason (or has given or received notice that such employment or engagement is or will be terminated), or (ii) any Option Shares held by the Holder are transferred (or the Company determines, in its sole discretion, acting reasonably, that such Option Shares are reasonably likely to be transferred) to any Person by reason of the death or bankruptcy of the Holder or otherwise by operation of law, regulation, directive, court order, governmental authority decision, requirement or administrative practice.

"***Third Party Information***" means confidential or proprietary information received by the Company or a Subsidiary from any of its direct or indirect securityholders, Affiliates and/or another third party.

<u>Option Subject to Acceptance of Agreement:</u>

This Option shall be null and void unless Holder shall accept this Option Agreement by executing this Option Agreement in the space provided below and returning an original execution copy of this Option Agreement to the Company within fifteen (15) days after the date that this Option Agreement is first made available to Holder for execution.

**II. <u>AGREEMENT</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Option</u>. The Committee hereby grants to the Holder an option (the "***Option***") to purchase the number of Shares set forth in the Notice of Share Option Grant, at the exercise price per Share set forth in the Notice of Share Option Grant (the "***Exercise Price***"), subject to the terms and conditions of this Option Agreement and of the Plan, which are incorporated herein by reference. In the event of a conflict between the terms and conditions of the Plan and this Option Agreement, the terms and conditions of the Plan shall prevail.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Exercise of Option.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Right to Exercise</u>. This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Share Option Grant and with the applicable provisions of the Plan and this Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Method of Exercise</u>. This Option shall be exercisable by delivery of an exercise notice in the form attached as Exhibit A hereto (the "***Exercise Notice***") or in a manner and pursuant to such procedures as the Committee may determine, which shall state the election to exercise the Option, the number of Shares with respect to which the Option is being exercised (the "***Exercised Shares***"), and such other representations and agreements as may be required by the Company. As a condition to exercise this Option, Holder must sign any documents reasonably required of a shareholder at or prior to the time of exercise, including, but not limited to, any then in effect lock-up agreement, voting agreement or co-sale agreement. This Option shall be deemed to be exercised upon receipt by the Company of a fully executed Exercise Notice accompanied by payment of the aggregate Exercise Price as to all Exercised Shares, together with any applicable tax withholding, and any other required documents signed by Holder.

No Shares shall be issued pursuant to the exercise of an Option unless such issuance and such exercise comply with all applicable laws. Assuming such compliance, for income tax purposes Shares shall be considered transferred to Holder on the date on which the Option is exercised with respect to such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Holder's Representations</u>. In the event the Shares are not registered under the Securities Act at the time all or any portion of this Option is exercised, Holder shall, concurrently with such exercise, deliver to the Company a statement of such investment representations as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Restrictive Covenants.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Disparagement</u>. Whether during or after the term of the Holder's service as an employee of or consultant to the Company or any Subsidiary, the Holder shall not disparage, defame or discredit any member of the Group or any of its direct or indirect securityholders or Affiliates, nor shall the Holder interfere with or disrupt the business activities of any member of the Group or any of its direct or indirect securityholders or Affiliates, or engage in any activity which would have the effect of interfering with or disrupting the business activities of any member of the Group or any of its direct or indirect securityholders or Affiliates; provided, however, that nothing in this subsection (b) or elsewhere in this Agreement shall prevent the Holder from engaging in "whistleblowing" or other activities expressly protected by applicable law, to the extent so protected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Intellectual Property</u>. In the event that during the Holder's service as an employee of or consultant to the Company or any of its Subsidiaries the Holder generates, authors, conceives, develops, acquires, makes, reduces to practice or contributes to any Intellectual Property in connection with his or her service as an employee of or a consultant to the partnership or any of its Subsidiaries, the Holder acknowledges that such Intellectual

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Property shall be the exclusive property of the Company and its Subsidiaries and the Holder hereby irrevocably waives any right he or she may have to be identified of the owner of Intellectual Property or otherwise obtain any benefit in relation thereto. Notwithstanding the foregoing, the Holder shall (to the extent permitted by law) take all reasonable steps and give all declarations reasonably required or requested by the Company or such Subsidiary to assign the Holder's entire right, title and interest in and to all Intellectual Property to the Company or its relevant Subsidiary. The Holder acknowledges that the Holder does not now nor has the Holder ever owned, nor has the Holder ever made, any materials prior to the commencement of the Holder's service as an employee of or consultant to the Company or its Subsidiaries that relate to the Company's and/or its Subsidiaries' actual or anticipated business, research and development or existing or planned future products or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Third Party Information</u>. The Holder understands that the Company and its Subsidiaries will receive Third Party Information subject to a duty on the Company's and/or its Subsidiaries' part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the Holder's service as an employee of or consultant to the Company or any of its Subsidiaries and thereafter, the Holder has held and will hold Third Party Information in the strictest confidence and has not disclosed and will not disclose to anyone (other than personnel and consultants of the Company and its Subsidiaries who need to know such information in connection with their work for the Company or any of its Subsidiaries) or use, except in connection with the Holder's work for the Company or any of its Subsidiaries, Third Party Information, unless expressly authorized by the Company and/or its Subsidiaries in writing or expressly permitted by law<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Trade Secrets</u>. During the Holder's service as an employee of or consultant to the Company or any of its Subsidiaries, the Holder has not improperly used or disclosed and will not improperly use or disclose any trade secrets or other confidential information, if any, of any former employers or any other person to whom the Holder has an obligation of confidentiality, and will not bring onto the premises of the Company or any of its Subsidiaries any unpublished documents or any property belonging to any former employer or any other person to whom the Holder has an obligation of confidentiality unless consented to in writing by the former employer or person. The Holder will use in the performance of the Holder's duties only information which is (i) generally known and used by persons with training and experience comparable to the Holder's and which is (x) common knowledge in the industry, or (y) is otherwise legally in the public domain, (ii) is otherwise provided or developed by the Company or any of its Subsidiaries, or (iii) in the case of materials, property or information belonging to any former employer or other person to whom the Holder has an obligation of confidentiality, approved for such use in writing by such former employer or person. Furthermore, the Holder acknowledges that in the course of the Holder's engagement with or service as an employee of the Company or its Subsidiaries that the Holder may become familiar with the Company's or another member of the Group's or its Business Interests' trade secrets and that the Holder has and will become familiar with the confidential information concerning the Company and the other members of the Group or its Business Interests and that the Holder's services are and will be of special, unique and extraordinary value to the Company and/or its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reasonableness</u>. The Holder acknowledges that the terms of this Section 4 are reasonable and necessary for the protection of the Company, its Subsidiaries, Affiliates and Business Interests and are an essential inducement to the Company's issuance of the Option Shares to the Holder. Accordingly, the Holder shall be bound by the provisions hereof to the maximum extent permitted by applicable law, it being the intent and spirit of the Parties that the terms of this Section 4 be fully enforceable. However, the Parties further agree that, if any of the provisions of this Section 4 shall for any reason be held to be excessively broad as to duration, geographical scope, property or subject matter, such provision shall be construed by limiting and reducing it so as to be enforceable to the extent compatible with the applicable law as it shall herein pertain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Unique Nature of Services</u>. The Holder acknowledges that the services to be rendered by the Holder to the Company and/or its Subsidiaries and Business Interests are of a unique nature and that it would be difficult or impossible to replace such services and that by reason thereof the Holder agrees and consents that if the Holder violates the provisions of this Section 4, the Company, in addition to any other rights and remedies available under this Agreement or otherwise, shall, to the extent permitted by applicable law, be entitled to seek an injunction to be issued or specific performance to be required restricting the Holder from committing or continuing any such violation without the need to establish irreparable damages to its rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Call Option</u>. If a Termination Event occurs, the Option Shares held by the Holder will be subject to purchase by a Calling Party on the understanding that, in each case, such Option Shares shall be held by the Calling Party for re-allocation in accordance with Section 5(f) at its election (without obligation) pursuant to the terms and conditions set forth in this Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Good Leaver</u>. If the Holder is determined to be a Good Leaver in connection with a Termination Event, then on or after such Termination Date the Calling Party shall have the right at its election (but not the obligation) to purchase the Holder's vested Option Shares acquired pursuant to this Agreement at a price equal to the Good Leaver Call Option Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Bad Leaver</u>. If the Holder is determined to be a Bad Leaver in connection with a Termination Event, then on or after the Termination Date the Calling Party shall have the right at its election (but not the obligation) to purchase the Holder's vested Option Shares acquired pursuant to this Agreement at a price equal to the Bad Leaver Call Option Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Procedures</u>. No later than one hundred eighty (180) days following the Holder's Termination Date, the Calling Party may elect to purchase the Holder's vested Option Shares or any portion thereof by delivering a Call Notice to the Holder, setting forth the number of Called Securities to be purchased, the aggregate consideration to be paid for such Called Securities and the time and place of the closing of such purchase. For the avoidance of doubt, the Calling Party may unilaterally retract and re-serve a Call Notice at any time until Closing, in the event that the Holder is categorized a Good Leaver, but has carried out any act or omission or the Group becomes aware of any circumstances in relation to the period prior to the Termination Date which would (had such act, omission or circumstances been known at the time of service of the Call Notice) have resulted in such Holder being categorized as a Bad Leaver, as determined by the Board acting in good faith and reasonably.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Closing</u>. The Closing will take place on the date designated by the Calling Party in the Call Notice, which date shall not be more than sixty (60) days after the delivery of such notice. The Calling Party will pay for the Called Securities to be purchased pursuant to the Call Option by delivery of a cheque or cheques payable to or a wire transfer or transfers of immediately available funds to the Holder; provided that the Calling Party shall be permitted to reduce payments to the Holder hereunder by the aggregate of all amounts due to the Company or any of its Subsidiaries or Affiliates by the Holder. The Calling Party will receive the following representations and warranties from the Holder regarding the purchase of the Called Securities: (i) identity; (ii) due authority to execute; (iii) binding obligation / noncontravention of laws and contracts; (iv) good title, free and clear of all liens, claims and other encumbrances; (v) solvency; (vi) subject to Section 5(f), acknowledgement of sufficient consideration in connection with the Call Option (for the avoidance of doubt, once agreed or settled and due to be paid pursuant to this Section 5(d); and (vii) waiver of claims in respect of the Called Securities (and for the avoidance of doubt, excluding claims in connection with the Holder's employment or service agreement (as applicable)). In the event that the Holder is categorized a Good Leaver at the time of Closing, but has carried out any act or omission or the Group becomes aware of any circumstances in relation to the period prior to Closing which would (had such act, omission or circumstances been known at the time of Closing) have resulted in such Holder being categorized as a Bad Leaver, as determined by the Board acting in good faith and reasonably, within 10 business days following service of notice of such determination by the Board, the Holder undertakes to transfer immediately available funds of an amount equal to the difference between the Good Leaver Call Option Price and the Bad Leaver Call Option Price to the Calling Party (and the notice from the Board shall specify the amount of such difference in price and wire instructions for payment to be made to the Calling Party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Transfer of Called Securities</u>. At or at any time following the Closing, the Calling Party shall be required to transfer the Called Securities at the direction of the Board to new or existing Holders, or the Company shall hold such Called Securities in reserve for future grants to new or existing Holders from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Release of Accounts</u>. At Closing, the Board shall (i) release and pay to the Company any unvested distributions with respect to the Option Shares, and (ii) release and pay to the Holder any vested but unpaid distributions with respect to the Called Securities, in each case as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Other Agreements</u>. As a condition to the settlement of any award, the Holder agrees to sign any documents reasonably required of a shareholder, including, but not limited to, any lock- up agreement, voting agreement or co-sale agreement applicable with respect to the Shares under such award. The Holder may continue to hold Shares acquired pursuant to this Option Agreement after the termination of the Holder's service with the Company and its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Method of Payment</u>. Payment of the aggregate Exercise Price shall be by any of the following or a combination thereof at the election of Holder, if and to the extent permitted by the Committee in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consideration received by the Company under a formal cashless exercise program if and to the extent adopted by the Company in its sole and absolute discretion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) surrender of other Shares which (i) shall be valued at its Fair Market Value on the date of exercise, and (ii) must be owned free and clear of any liens, claims, encumbrances or security interests, but only if accepting such Shares, in the sole discretion of the Committee, shall not result in any adverse accounting consequences to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Restrictions on Exercise</u>. This Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of consideration for such Shares would constitute a violation of any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Transferability of Option</u>. This Option may not be transferred or pledged in any manner other than by will or by the laws of descent or distribution and may be exercised during the lifetime of Holder only by Holder. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Term of Option</u>. This Option may be exercised only within the term set out in the Notice of Share Option Grant, and may be exercised during such term only in accordance with the terms of the Plan and this Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Tax Obligations</u>. Holder agrees to make appropriate arrangements with the Company (or the Subsidiary employing or retaining Holder) for all Required Tax Payments. Holder acknowledges and agrees that the Company may, in its discretion, refuse to honor any exercise of the Option, refuse to deliver the Shares in respect of any such exercise or deduct Required Tax Payments from any amount then or thereafter payable by the Company to Holder if any Required Tax Payments are not delivered at or prior to the time of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Currency and conversion</u>. Payment of amounts due under this Option Agreement shall be effected in US$, unless the Company determines otherwise in its absolute discretion. Any sums which are appointed, declared, or applied under this Option Agreement and denominated in US$ shall be converted to such other currency as may apply to Holder using the closing rate of exchange as reasonably determined by the Board for the immediately preceding business day in the US.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Personal Data</u>. The Company may process Holder's personal data, and shall do so in accordance with, and for the purposes set out in: (i) the Company's Employee Privacy Notice, which can be obtained from the Board; and (ii) this Option Agreement. Holder understands and acknowledges that the Company, Holder's employer and the Company's other Affiliates hold certain personal information regarding Holder for the purpose of managing and administering this

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Option Agreement, including (without limitation) any Data. Holder further understands and acknowledges that the Company and/or its Affiliates will transfer Data among themselves as necessary for the purpose of implementation, administration and management of Holder's participation in this Option Agreement and that the Company and/or any Affiliate may each further transfer Data to any third party assisting the Company in the implementation, administration and management of this Option Agreement. Holder understands and acknowledges that the recipients of Data may be located in the United States or elsewhere.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Entire Agreement; Governing Law</u>. The Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company (and/or the Subsidiary employing or retaining Holder) and Holder with respect to the subject matter hereof, and may not be modified adversely to Holder's interest except by means of a writing signed by the Company and Holder. This Option Agreement is governed by the internal substantive laws but not the choice of law rules of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>No Guarantee of Continued Service</u>. HOLDER ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE OPTION PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE SUBSIDIARY EMPLOYING OR RETAINING HOLDER) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER. HOLDER FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH HOLDER'S RIGHT OR THE RIGHT OF THE COMPANY (OR THE SUBSIDIARY EMPLOYING OR RETAINING HOLDER) TO TERMINATE HOLDER'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>No Right of Participation, Employment or Service</u>. In addition to the provisions set out in Section 5.10 of the ASIP, the following terms shall apply in relation to the Holder and the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights and obligations of the Holder under the terms of his or her office or employment with the Company or any Group Company shall not be affected by the Holder's participation under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The value of any benefit realized under the Plan by the Holder shall not be taken into account in determining any pension or similar entitlements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Holder shall have no rights to compensation or damages on account of any loss in respect of the Option or the Plan where this loss arises (or is claimed to arise), in whole or in part, from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) termination of office or employment with; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notice to terminate office or employment given by or to,

any Group Company. This exclusion of liability shall apply however termination of office or employment, or the giving of notice, is caused, and however compensation or damages are claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Holder shall have no rights to compensation or damages from any Group Company on account of any loss in respect of the Option or the Plan where this loss arises (or is claimed to arise), in whole or in part, from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any company ceasing to be a Group Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transfer of any business from a Group Company to any person that is not a Group Company.

This exclusion of liability shall apply however the change of status of the relevant Group Company, or the transfer of the relevant business, is caused, and however compensation or damages are claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The grant of the Option does not confer on the Holder any right to receive any further awards under the Plan at any time.

Holder acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option, subject to all of the terms and provisions thereof. Holder has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understands all terms and conditions of the Option. Holder hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this Option Agreement. Holder further agrees to notify the Company upon any change in the residence address indicated below.

By Holder's signature below, Holder acknowledges and agrees that the grant of this Option is in full satisfaction of any Promised Interest. Accordingly, Holder hereby irrevocably and unconditionally releases and forever discharges the Company and any Subsidiary, and any successors, assigns, directors, officers, employees, consultants, agents, representatives, members, shareholders and affiliates of the Company and any Subsidiary, from any obligation to issue any securities of the Company or any Subsidiary or any other compensation in respect of the Promised Interest and from all any and all claims, liabilities or obligations, whether now existing or hereafter arising, which in any way relate to or arise out of the Promised Interest.

Holder acknowledges that Holder has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

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[*Signature page follows*]

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| | |
|:---|:---|
| HOLDER | ACCELERANT HOLDINGS |
| Signature | By: |
| Printed Name: | Printed Name: |
| Address: | Title: |
| United States |  |

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[*Signature page to Share Option Agreement*]

## Exhibit 10.38

**Exhibit 10.38** 

**ACCELERANT HOLDINGS** 

**SHARE INCENTIVE PLAN** 

**RESTRICTED SHARE UNITS AGREEMENT** 

Any capitalized terms used but not defined in this Restricted Share Units Agreement (the "***RSU Agreement***") shall have the meanings ascribed to such terms in the Accelerant Holdings Share Incentive Plan (as amended from time to time, the "***Plan***"). In case of discrepancy between the RSU Agreement and the Plan, the latter shall prevail.

**I. NOTICE OF RESTRICTED SHARE UNITS GRANT** 

**Name:** 

**Address:** 

United States

The Company now desires to grant the Holder Restricted Share Units pursuant to the Plan, as set forth below, subject to the terms and conditions of the Plan and this RSU Agreement, as follows:

<u>Date of Grant</u>: [ ], 2025.

<u>Total Number of RSUs Granted</u>: [ ] Restricted Share Units, which represent 0.65% of the outstanding Shares immediately before giving effect to the primary proceeds of the IPO.

<u>Vesting Schedule</u>: Twenty-five percent (25%) of the Restricted Share Units shall become vested on the one-year anniversary of the Date of Grant and six and one-quarter percent (6-1/4%) of the Restricted Share Units shall become vested on the first day of each of the twelve (12) calendar quarters beginning after such anniversary if, and only if, Holder is, and has been continuously, a Service Provider through and including such dates.

Notwithstanding the foregoing, upon the occurrence of a Change in Control while Holder continues to be a Service Provider, one hundred percent (100%) of the Restricted Share Units shall become vested.

<u>Termination</u>: Any unvested portion of the Restricted Share Units shall immediately terminate upon Holder becoming a Bad Leaver.

Any unvested portion of the Restricted Share Units shall immediately terminate upon Holder becoming a Good Leaver. However, if such cessation of service is due to Holder's termination by the Company without Cause, Holder's death, or Holder's Disability, the vested portion of such Restricted Share Units shall be determined as if Holder had remained a Service Provider for twelve (12) additional months.

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<u>Restricted Share Units Subject to Acceptance of Agreement</u>: The grant of Restricted Share Units hereunder shall be null and void unless Holder shall accept this RSU Agreement by executing such RSU Agreement in the space provided below and returning an original execution copy of the RSU Agreement to the Company within fifteen (15) days after the date that this RSU Agreement is first made available to Holder for execution.

For purposes of this RSU Agreement:

"***Affiliate***", when used with reference to any Person, means any other Person (i) Controlled by such first Person, (ii) capable of Controlling such first Person, or (iii) with which such first Person is under the common Control of another; provided that any Person serving as the investment advisor to or manager of a limited partnership shall be deemed an Affiliate of such limited partnership.

"***Bad Leaver***" means Holder is terminated as a Service Provider for Cause, or Holder ceases being a Service Provider at a time when Cause exists, as determined by the Committee in good faith.

"***Business Interests***" means any business ventures in which the Company or any Subsidiary is entitled to a share of the revenue or profits, any minority equity interests, or any other business including, but not limited to, managing general agencies (MGAs), brokers or other insurance intermediaries in each case which the Company or any Subsidiary holds an interest in (whether or not Controlling).

"***Cause***" means (a) "Cause" as defined in any Company Agreement, or (b) in the absence of any such definition, Holder's (i) commission of a felony or a crime involving moral turpitude or commission of any other act or omission involving dishonesty or fraud with respect to the Company or any of its Subsidiaries or any of their customers, vendors or Service Providers, (ii) substantial and repeated failure to perform duties of the office held by Holder as reasonably directed by the Company (other than as a result of Holder's Disability), (iii) gross negligence or willful misconduct with respect to the Company or any of its Subsidiaries or any of their customers, vendors or Service Providers, (iv) conduct which could reasonably be expected to bring the Company or any of its Subsidiaries into substantial public disgrace or disrepute, (v) material breach of any Company Agreement and/or (f) material failure to observe policies or standards regarding employment practices (including non-discrimination and sexual harassment policies) as approved by the Company from time to time.

"***Client***" means any person, firm, company or other undertaking who is a client of any Group Company or Business Interests and with whom the Manager dealt to a material extent during the Relevant Period.

"***Company Agreement***" means any employment agreement, consulting agreement, offer letter, non-competition, non-solicitation, confidentiality, intellectual property or other restrictive covenant agreement or any other similar agreement between Holder and the Company or any of its Subsidiaries.

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"***Competing Business***" means any business in the Territory which competes with any business carried on by the Company, any Subsidiary or any Business Interests, in which the Holder was materially involved at any time during the Relevant Period.

"***Confidential Information***" information (whether or not recorded in documentary form, or stored on any magnetic or optical disk or memory) relating to the business, products, affairs and finances of the Company or any Subsidiary for the time being confidential to the Company or any Subsidiary and trade secrets including, without limitation, technical data and know-how relating to the business of the Company, any Subsidiary or any of their business contacts, including in particular (by way of illustration only and without limitation) any contracts between the Company and/or any Subsidiary and any of their business partners, rate filings overseen by the Company and/or any Subsidiary or its managing general agencies, underwriting data, any other general non- public information shared by managing general agency partners with the Company or any Subsidiary, and details of reinsurance schemes.

"***Control***" means, in respect of any Person, the power to manage or govern such Person, or to appoint the managing and governing bodies of such Person or a majority of the members thereof, whether through the ownership of voting securities, by contract or otherwise (in such respect, a limited partnership shall be deemed to be Controlled by its general partner).

"***Data***" means Holder's name, home address, telephone number, date of birth, social insurance number, salary, nationality, job title, any Shares, options to purchase Shares, or directorships held in the Company and details of all Shares, options, to purchase Shares or any other entitlements to Shares awarded, canceled, exercised, vested, unvested or outstanding in Holder's favor.

"***Disability***" means the disability of Holder caused by any physical or mental injury, illness or incapacity as a result of which Holder is, or is reasonably expected to be, unable to effectively perform the essential functions of Holder's duties for a substantially continuous period of more than 120 days or for any 180 days (whether or not continuous) within a 365 day period, as determined by the Committee in good faith.

"***Good Leaver***" means Holder ceases being a Service Provider under circumstances that do not cause Holder to be or become a Bad Leaver.

"***Group***" means the Company and its Subsidiaries, and Group Company shall be construed accordingly.

"***Intellectual Property***" means any discovery, formula, trade secret, invention, innovation, improvement, development, method of doing business, process, program, design, analysis, drawing, report, data, software, firmware, logo, device, method, product or any similar or related information, any copyrightable work or any proprietary information.

"***IRS***" means the U.S. Internal Revenue Service.

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"***Key Employee***" means any person employed or engaged by the Company or any Subsidiary or Business Interests for which the Holder was required to perform duties at any time during the Relevant Period in a senior sales, marketing, operations, underwriting, IT or executive management role or whose gross annual remuneration or fees (or, if part-time, the full-time equivalent) at the Termination Date was £50,000 or more (or the equivalent in any other currency as converted at the Termination Date) and with whom the Holder had material dealings.

"***Promised Interest***" means any oral or written promise to grant any Restricted Share Units, Shares, options to purchase Shares, or any other equity or equity-related interest in the Company or any Subsidiary, including, but not limited to any promise set forth in an offer letter or other agreement with a Subsidiary and/or related oral discussions.

"***Prospective Client***" means any person, firm, company or other undertaking with whom or which, at any time during the Relevant Period, the Company or any Subsidiary or Business Interests was in discussion with a view to providing goods or services, and in which discussions the Holder was involved (other than on a minimal basis) or of which discussions the Holder had knowledge or about which discussions the Holder had access to Confidential Information.

"***Relevant Period***" means the period of 12 months ending with the Termination Date.

"***Restricted Goods or Services***" means goods or services of the same type as, or similar to, goods and/or services supplied by the Company or any Subsidiary or Business Interests (i) at the Termination Date, or (ii) at any time during the Relevant Period.

"***Required Tax Payment***" means such amount as the Company may be required, under all applicable federal, state, local or other laws or regulations, to withhold and pay over as income or other withholding taxes and social insurance contributions with respect to any vesting, settlement or disposition of the Restricted Share Units.

"***Securities Act***" means the Securities Act of 1933, as amended.

"***Service Provider***" means providing services to the Company or any of its Subsidiaries as an employee, consultant or director.

"***Supplier***" means any person, firm, company or other undertaking who or which provides goods or services (other than utilities or administration-related supplies) to the Company or any Subsidiary or Business Interests and with whom the Holder dealt to a material extent at any time during the Relevant Period.

"***Termination Date***" means the date on which the service of the Holder as an employee of or consultant to the Company or any of its Subsidiaries (based on the terms of his or her employment or service agreement) actually terminates for whatever reason.

"***Termination Event***" means (i) the Holder is no longer employed or engaged (directly or indirectly) in any manner with the Company or any Subsidiary or Affiliate thereof for any reason other than retirement after the attainment of at least age 65 and the completion of at least five years of service with the Company or any Affiliate or termination by the Company or any Affiliate without Cause (or has given or received notice that such employment or engagement is or will be

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terminated for any reason other than retirement or termination by the Company or any Affiliate without Cause), or (ii) any Restricted Share Units held by the Holder are transferred (or the Company determines, in its sole discretion, acting reasonably, that such Restricted Share Units Shares are reasonably likely to be transferred) to any Person by reason of the death or bankruptcy of the Holder or otherwise by operation of law, regulation, directive, court order, governmental authority decision, requirement or administrative practice.

"***Territory***" means any country in which at the Termination Date the Company or any Subsidiary or Business Interests carried on business and continues to carry on business.

"***Third Party Information***" means confidential or proprietary information received by the Company or a Subsidiary from any of its direct or indirect securityholders, Affiliates and/or another third party.

**II. AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Restricted Share Units and Cancellation of Prior Awards</u>. The Committee hereby grants to the Holder the number of Restricted Share Units set forth in the Notice of Restricted Share Units Grant, subject to the terms and conditions of this RSU Agreement and of the Plan, which are incorporated herein by reference. In the event of any conflict between the terms and conditions of the Plan and this RSU Agreement, the terms and conditions of the Plan shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Holder's Representations</u>. In the event the Shares are not registered under the Securities Act at the time all or any portion of the Restricted Share Units become vested, the Holder shall, concurrently with such exercise, deliver to the Company a statement of such investment representations as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>. The Holder undertakes to the Group that he or she will not, without the prior written consent of the Company or a Subsidiary, on his or her own behalf or on behalf of, or in conjunction with, any company, firm or other person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for a period of twenty four (24) months from the Termination Date, be engaged, interested or concerned whether as principal, agent, representative, partner, director, employee, joint venture, investor, consultant or any other capacity in any Competing Business, except that the Holder may hold up to 5% of any class or securities of any company listed or dealt in on a recognized investment exchange; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for a period of twenty four (24) months from the Termination Date, on behalf of a Competing Business: (A) be involved with the provision of goods or services to, or otherwise have any business dealings with any Client in relation to Restricted Goods or Services; or (B) be involved with the provision of goods or services to, or otherwise have any business dealings with any Prospective Client in relation to Restricted Goods or Services; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) for a period of twenty four (24) months from the Termination Date, on behalf of a Competing Business, entice or solicit, or endeavor to entice or solicit, any Client to provide custom or business in relation to Restricted Goods or Services; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for a period of twenty four (24) months from the Termination Date, on behalf of a Competing Business, entice or solicit, or endeavor to entice or solicit, any Prospective Client to provide custom or business in relation to Restricted Goods or Services; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) for a period of twenty four (24) months from the Termination Date be directly involved in the employment of any Key Employee with a view to such Key Employee working for or providing services to a Competing Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) for a period of twenty four (24) months from the Termination Date, entice or solicit, or endeavor to entice or solicit, any Key Employee away from any Group Company, with a view to such Key Employee working for or providing services to a Competing Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) for a period of twenty four (24) months from the Termination Date, entice or solicit, or endeavor to entice or solicit, any Supplier away from any Group Company, with a view to such Supplier providing goods or services to a Competing Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) for a period of twenty four (24) months from the Termination Date, on behalf of a Competing Business, have any business dealings with any Supplier; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) at any time after the Termination Date, represent himself as connected with the Company or any Subsidiary in any capacity, other than as a former employee, director or (if that is the case) shareholder, or use any registered business names or trading names associated with the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Disparagement</u>. Whether during or after the term of the Holder's service as an employee of or consultant to the Company or any Subsidiary, the Holder shall not disparage, defame or discredit any member of the Group or any of its direct or indirect securityholders or Affiliates, nor shall the Holder interfere with or disrupt the business activities of any member of the Group or any of its direct or indirect securityholders or Affiliates, or engage in any activity which would have the effect of interfering with or disrupting the business activities of any member of the Group or any of its direct or indirect securityholders or Affiliates; provided, however, that nothing in this subsection (b) or elsewhere in this Agreement shall prevent the Holder from engaging in "whistleblowing" or other activities expressly protected by applicable law, to the extent so protected.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Intellectual Property</u>. In the event that during the Holder's service as an employee of or consultant to the Company or any of its Subsidiaries the Holder generates, authors, conceives, develops, acquires, makes, reduces to practice or contributes to any Intellectual Property in connection with his or her service as an employee of or a consultant to the Company or any of its Subsidiaries, the Holder acknowledges that such Intellectual Property shall be the exclusive property of the Company and its Subsidiaries and the Holder hereby irrevocably waives any right he or she may have to be identified of the owner of Intellectual Property or otherwise obtain any benefit in relation thereto. Notwithstanding the foregoing, the Holder shall (to the extent permitted by law) take all reasonable steps and give all declarations reasonably required or requested by the Company or such Subsidiary to assign the Holder's entire right, title and interest in and to all Intellectual Property to the Company or its relevant Subsidiary. The Holder acknowledges that the Holder does not now nor has the Holder ever owned, nor has the Holder ever made, any materials prior to the commencement of the Holder's service as an employee of or consultant to the Company or its Subsidiaries that relate to the Company's and/or its Subsidiaries' actual or anticipated business, research and development or existing or planned future products or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Third Party Information</u>. The Holder understands that the Company and its Subsidiaries will receive Third Party Information subject to a duty on the Company's and/or its Subsidiaries' part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the Holder's service as an employee of or consultant to the Company or any of its Subsidiaries and thereafter, the Holder has held and will hold Third Party Information in the strictest confidence and has not disclosed and will not disclose to anyone (other than personnel and consultants of the Company and its Subsidiaries who need to know such information in connection with their work for the Company or any of its Subsidiaries) or use, except in connection with the Holder's work for the Company or any of its Subsidiaries, Third Party Information, unless expressly authorized by the Company and/or its Subsidiaries in writing or expressly permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Trade Secrets</u>. During the Holder's service as an employee of or consultant to the Company or any of its Subsidiaries, the Holder has not improperly used or disclosed and will not improperly use or disclose any trade secrets or other Confidential Information, if any, of any former employers or any other person to whom the Holder has an obligation of confidentiality, and will not bring onto the premises of the Company or any of its Subsidiaries any unpublished documents or any property belonging to any former employer or any other person to whom the Holder has an obligation of confidentiality unless consented to in writing by the former employer or person. The Holder will use in the performance of the Holder's duties only information which is (i) generally known and used by persons with training and experience comparable to the Holder's and which is (x) common knowledge in the industry, or (y) is otherwise legally in the public domain, (ii) is otherwise provided or developed by the Company or any of its Subsidiaries, or (iii) in the case of materials, property or information belonging to any former employer or other person to whom the Holder has an obligation of confidentiality, approved for such use in writing by such former employer or person. Furthermore, the Holder acknowledges that in the course of the Holder's engagement with or service as an employee of the Company or its Subsidiaries that the Holder may become familiar with the Company's or another member of the Group's or its Business Interests' trade secrets and that the Holder has and will become familiar with the Confidential Information concerning the Company and the other members of the Group or its Business Interests and that the Holder's services are and will be of special, unique and extraordinary value to the Company and/or its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Reasonableness</u>. The Holder acknowledges that the terms of this Section 3 are reasonable and necessary for the protection of the Company, its Subsidiaries, Affiliates and Business Interests and are an essential inducement to the Company's issuance of the Restricted Share Units to the Holder. Accordingly, the Holder shall be bound by the provisions hereof to the maximum extent permitted by applicable law, it being the intent and spirit of the Parties that the terms of this Section 3 be fully enforceable. However, the Parties further agree that, if any of the provisions of this Section 3 shall for any reason be held to be excessively broad as to duration, geographical scope, property or subject matter, such provision shall be construed by limiting and reducing it so as to be enforceable to the extent compatible with the applicable law as it shall herein pertain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Unique Nature of Services</u>. The Holder acknowledges that the services to be rendered by the Holder to the Company and/or its Subsidiaries and Business Interests are of a unique nature and that it would be difficult or impossible to replace such services and that by reason thereof the Holder agrees and consents that if the Holder violates the provisions of this Section 3, the Company, in addition to any other rights and remedies available under this Agreement or otherwise, shall, to the extent permitted by applicable law, be entitled to seek an injunction to be issued or specific performance to be required restricting the Holder from committing or continuing any such violation without the need to establish irreparable damages to its rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Garden Leave</u>. In the event that the Group exercises any rights it has, if relevant under applicable law, to put the Holder on garden leave pursuant to his or her relevant employment or service agreement, the duration of the restrictions in Section 3(a)(i) to 3(a)(viii) above shall be reduced by any period of time spent by the Holder on garden leave immediately prior to the date on which the employment of the Holder (on the terms of his or her employment or service agreement) terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Other Agreements</u>. As a condition to the settlement of any Restricted Share Units in Shares, the Holder agrees to sign any documents reasonably required of a shareholder, including, but not limited to, any lock-up agreement, voting agreement or co-sale agreement applicable with respect to the Shares under such award. Subject to the terms of any such other agreement, the Holder may continue to hold Shares acquired pursuant to this RSU Agreement after the termination of the Holder's service with the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Vesting and Settlement</u>. Upon the vesting of any Restricted Share Units, the Company shall cause to be delivered to the Holder whole Shares equal to the number of such Units that became vested, plus cash for any fractional unit that became vested, in each case subject to the satisfaction of any tax obligations under Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Dividend Equivalents</u>. If the Company declares and pays any dividend with respect to the Shares underlying unvested Restricted Share Units, the Holder shall be credited with an amount equivalent to such dividend, and such dividend equivalent shall be paid to the Holder upon the vesting of the corresponding Shares, in each case subject to the satisfaction of any tax obligations under Section 9.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Restrictions on Settlement</u>. Upon the vesting of any Restricted Share Units, such Units shall not be settled in Shares, and shall instead be settled in cash, to the extent that the Committee determines that the issuance of such Shares upon such vesting would constitute a violation of any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Non-Transferability of Restricted Share Units</u>. The Restricted Share Units granted hereunder may not be transferred or pledged in any manner other than by will or by the laws of descent or distribution. The terms of the Plan and this RSU Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Tax Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Tax Withholding</u>. Holder agrees to make appropriate arrangements with the Company (or the Subsidiary employing or retaining Holder) for all Required Tax Payments. Holder acknowledges and agrees that the Company may, in its discretion, refuse to deliver Shares in respect of any vesting of the Restricted Share Units or may deduct Required Tax Payments from any amount then or thereafter payable by the Company to Holder if any Required Tax Payments are not timely delivered in connection with such vesting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Section 457A of the Code</u>. Holder agrees that if the IRS determines that the Restricted Share Units are deferred compensation subject to, and within the meaning of, Section 457A of the Code, Holder shall be solely responsible for Holder's costs related to such a determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Personal Data</u>. The Company may process Holder's personal data, and shall do so in accordance with, and for the purposes set out in: (i) the Company's Employee Privacy Notice, which can be obtained from the Board; and (ii) this RSU Agreement. Holder understands and acknowledges that the Company, Holder's employer and the Company's other Affiliates hold certain personal information regarding Holder for the purpose of managing and administering this RSU Agreement, including (without limitation) any Data. Holder further understands and acknowledges that the Company and/or its Affiliates will transfer Data among themselves as necessary for the purpose of implementation, administration and management of Holder's participation in this RSU Agreement and that the Company and/or any Affiliate may each further transfer Data to any third party assisting the Company in the implementation, administration and management of this RSU Agreement. Holder understands and acknowledges that the recipients of Data may be located in the United States or elsewhere.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Entire Agreement; Governing Law</u>. The Plan is incorporated herein by reference. The Plan and this RSU Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company (and/or the Subsidiary employing or retaining Holder) and Holder with respect to the subject matter hereof, and may not be modified adversely to Holder's interest except by means of a writing signed by the Company and Holder. This RSU Agreement is governed by the internal substantive laws but not the choice of law rules of Delaware.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>No Guarantee of Continued Service</u>. HOLDER ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE RESTRICTED SHARE UNITS PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE SUBSIDIARY EMPLOYING OR RETAINING HOLDER) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE RESTRICTED SHARE UNITS OR ACQUIRING SHARES HEREUNDER. HOLDER FURTHER ACKNOWLEDGES AND AGREES THAT THIS RSU AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH HOLDER'S RIGHT OR THE RIGHT OF THE COMPANY (OR THE SUBSIDIARY EMPLOYING OR RETAINING HOLDER) TO TERMINATE HOLDER'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Additional Provisions</u>. In addition to the provisions set out in Section 5.10 of the Plan, the following terms shall apply in relation to the Holder and the Restricted Share Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights and obligations of the Holder under the terms of his or her office or employment with the Company or any Group Company shall not be affected by the Holder's participation under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The value of any benefit realized under the Plan by the Holder shall not be taken into account in determining any pension or similar entitlements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Holder shall have no rights to compensation or damages on account of any loss in respect of the Restricted Share Units or the Plan where this loss arises (or is claimed to arise), in whole or in part, from termination of office or employment with, or notice to terminate office or employment given by or to, any Group Company. This exclusion of liability shall apply however termination of office or employment, or the giving of notice, is caused, and however compensation or damages are claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This exclusion of liability shall apply however the change of status of the relevant Group Company, or the transfer of the relevant business, is caused, and however compensation or damages are claimed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The grant of the Restricted Share Units does not confer on the Holder any right to receive any further awards under the Plan at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Holder acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Restricted Share Units, subject to all the terms and provisions thereof. Holder has reviewed the Plan and this RSU Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this RSU Agreement and fully understands all terms and conditions of the Restricted Share Units. Holder hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this RSU Agreement. Holder further agrees to notify the Company upon any change in the residence address indicated below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) By Holder's signature below, Holder acknowledges and agrees that the grant of the Restricted Share Units is in full satisfaction of any Promised Interest. Accordingly, Holder hereby irrevocably and unconditionally releases and forever discharges the Company and any Subsidiary, and any successors, assigns, directors, officers, employees, consultants, agents, representatives, members, shareholders and affiliates of the Company and any Subsidiary, from any obligation to issue any securities of the Company or any Subsidiary or any other compensation in respect of the Promised Interest and from all any and all claims, liabilities or obligations, whether now existing or hereafter arising, which in any way relate to or arise out of the Promised Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Holder acknowledges that Holder has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

[*Signature page follows*]

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---

| | |
|:---|:---|
| HOLDER | ACCELERANT HOLDINGS |
| Signature | Signature |
| Printed Name | Printed Name |
| Address: | Title |
| United States |  |
| Date:<u> </u>, 2025 |  |

---

## Exhibit 23.1

**Exhibit 23.1** 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use in this Registration Statement on Form S-1 of Accelerant Holdings of our report dated March 27, 2025, except for the effects of the common and preference share subdivision discussed in Note 1 to the consolidated financial statements, as to which the date is July 14, 2025, relating to the financial statements and financial statement schedules of Accelerant Holdings, which appears in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

July 18, 2025

## Exhibit 23.2

**Exhibit 23.2** 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use in this Registration Statement on Form S-1 of Accelerant Holdings of our report dated March 27, 2025, relating to the financial statements and financial statement schedules of Accelerant Holdings LP, which appears in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

*/s/ PricewaterhouseCoopers LLP* 

New York, New York

July 18, 2025