What does Accelerant do?
Accelerant is a marketplace for specialty insurance.
On one side you have MGAs, specialist insurance underwriters that need capital to actually write policies.
On the other side you have insurance companies, reinsurers and institutional investors that have capital and want exposure to good specialty insurance businesses.
Accelerant connects the two.
MGAs -> Accelerant -> Insurance capital
ARX provides the infrastructure, data, regulatory support and capacity and takes fees on the insurance premium flowing through its platform.
It also retains some insurance risk itself, but this is becoming a smaller part of the story.
Third-party insurers are increasing a fast pace instead:
18% in 2025 -> 41% in Q1 2026
and it will keep growing
This matters because the fee-based part of ARX is extremely profitable.
Exchange Services has around 67% EBITDA margins, while MGA Operations has around \\45% margins\\.
Basicallyq, ARX is becoming more of a high-margin, capital-light insurance marketplace and less dependent on taking insurance risk itself.
So why did the stock go to shit?
ARX IPO’d at $21 in July 2025 and quickly ran above $30.
Then investors started freaking out about Hadron.
Hadronb is an insurance carrier backed by Altamont Capital, the same PE firm that owns a controlling share of Accelerant.
Hadron became a major third-party insurer on the Accelerant exchange, so the market started questioning whether ARX’s third-party growth was actually real or whether they were basically just moving business to a related company.
But here’s the important part.
It represented around 67% of third-party premium in Q1 2025. That dropped significantly to 41% in Q1 2026 and it’s gonna keep going down as non-Hadron third-party business grows rapidly.
Valutation
Look at ARX’s recent growth.
In Q1 2026:
Adjusted EBITDA: +70%
Fee-based revenue y/y : +112%
Management is guiding for at least $285M of adjusted EBITDA in 2026, of which at least $276M is expected to be fee-based
$ARX currently trades at roughly 8x EV/EBITDA, versus a sector average of around 16x, despite growing significantly faster than most peers.
The gap is even larger versus tech-enabled, capital-light insurance companies like $GSHD at \\\~25x and $NP at \\\~51x.
Just a rerating toward the sector average would imply roughly 100% upsidec, while a stronger rerating premium from it’s peers which I believe it deserves given the superior growth & margins from it’s fee based rev could mean >2.5-3x from today sp.
To conclude
I think $ARX is a hidden gem sitting in plain sight. The company is growing faster than most of its peers, becoming increasingly capital-light, and yet trades at a fraction of their multiples.
Market cap 2.6B
Position 3500 @12.41