Skyward Specialty Insurance Group Reports First Quarter 2025 Results
Skyward Specialty Insurance Group (NASDAQ: SKWD) reported strong Q1 2025 financial results, with net income reaching $42.1 million ($1.01 per diluted share), up from $36.8 million in Q1 2024. The company achieved record adjusted operating income of $37.3 million ($0.90 per diluted share), a 20% increase year-over-year. Gross written premiums grew 16.7% to $535.3 million, driven by strong performance in agriculture and credit reinsurance, accident & health, and specialty programs divisions.
Key performance metrics included a combined ratio of 90.5%, an ex-cat combined ratio of 88.3%, and an annualized return on equity of 20.5%. Book value per share increased 6% to $21.06 compared to December 31, 2024. The company's stockholders' equity rose 7.1% to $850.7 million, primarily due to increased investment portfolio market value and net income.
Skyward Specialty Insurance Group (NASDAQ: SKWD) ha riportato solidi risultati finanziari nel primo trimestre del 2025, con un utile netto di 42,1 milioni di dollari (1,01 dollari per azione diluita), in aumento rispetto ai 36,8 milioni di dollari del primo trimestre 2024. La società ha raggiunto un record di reddito operativo rettificato di 37,3 milioni di dollari (0,90 dollari per azione diluita), con un incremento del 20% su base annua. I premi lordi contabilizzati sono cresciuti del 16,7%, arrivando a 535,3 milioni di dollari, grazie a una forte performance nei settori dell'agricoltura e riassicurazione del credito, infortuni e salute, e programmi specializzati.
I principali indicatori di performance hanno mostrato un combined ratio del 90,5%, un combined ratio ex-cat del 88,3% e un rendimento annualizzato del capitale proprio del 20,5%. Il valore contabile per azione è aumentato del 6%, raggiungendo 21,06 dollari rispetto al 31 dicembre 2024. Il patrimonio netto della società è cresciuto del 7,1%, arrivando a 850,7 milioni di dollari, principalmente grazie all'aumento del valore di mercato del portafoglio investimenti e all'utile netto.
Skyward Specialty Insurance Group (NASDAQ: SKWD) reportó sólidos resultados financieros en el primer trimestre de 2025, con una utilidad neta de 42,1 millones de dólares (1,01 dólares por acción diluida), en aumento desde los 36,8 millones de dólares del primer trimestre de 2024. La compañía alcanzó un récord en ingresos operativos ajustados de 37,3 millones de dólares (0,90 dólares por acción diluida), un incremento del 20% interanual. Las primas brutas emitidas crecieron un 16,7% hasta 535,3 millones de dólares, impulsadas por un sólido desempeño en las divisiones de agricultura y reaseguro de crédito, accidentes y salud, y programas especializados.
Los principales indicadores de desempeño incluyeron un índice combinado del 90,5%, un índice combinado ex-cat de 88,3% y un rendimiento anualizado sobre el capital del 20,5%. El valor en libros por acción aumentó un 6% hasta 21,06 dólares en comparación con el 31 de diciembre de 2024. El patrimonio neto de los accionistas de la empresa creció un 7,1% hasta 850,7 millones de dólares, principalmente debido al aumento en el valor de mercado de la cartera de inversiones y la utilidad neta.
Skyward Specialty Insurance Group (NASDAQ: SKWD)는 2025년 1분기 강력한 재무 실적을 보고했으며, 순이익은 4,210만 달러(희석 주당 1.01달러)로 2024년 1분기의 3,680만 달러에서 증가했습니다. 회사는 조정 영업이익에서 사상 최대인 3,730만 달러(희석 주당 0.90달러)를 기록하며 전년 대비 20% 성장했습니다. 총 원수보험료는 16.7% 증가한 5억 3,530만 달러를 기록했으며, 이는 농업 및 신용 재보험, 상해 및 건강, 전문 프로그램 부문의 강력한 실적에 힘입은 결과입니다.
주요 성과 지표로는 결합 손해율이 90.5%, 재해 제외 결합 손해율이 88.3%, 연환산 자기자본이익률이 20.5%였습니다. 주당 장부가치는 2024년 12월 31일 대비 6% 상승한 21.06달러를 기록했습니다. 회사의 주주 자본은 투자 포트폴리오 시장 가치 증가와 순이익 덕분에 7.1% 상승한 8억 5,070만 달러에 달했습니다.
Skyward Specialty Insurance Group (NASDAQ : SKWD) a publié de solides résultats financiers pour le premier trimestre 2025, avec un bénéfice net atteignant 42,1 millions de dollars (1,01 dollar par action diluée), en hausse par rapport à 36,8 millions de dollars au premier trimestre 2024. La société a enregistré un résultat opérationnel ajusté record de 37,3 millions de dollars (0,90 dollar par action diluée), soit une augmentation de 20 % d'une année sur l'autre. Les primes brutes émises ont augmenté de 16,7 % pour atteindre 535,3 millions de dollars, grâce à de solides performances dans les divisions agriculture et réassurance-crédit, accident & santé, et programmes spécialisés.
Les indicateurs clés de performance comprenaient un ratio combiné de 90,5 %, un ratio combiné hors catastrophes de 88,3 % et un rendement annualisé des capitaux propres de 20,5 %. La valeur comptable par action a augmenté de 6 % pour atteindre 21,06 dollars par rapport au 31 décembre 2024. Les capitaux propres de la société ont progressé de 7,1 % pour atteindre 850,7 millions de dollars, principalement en raison de la hausse de la valeur de marché du portefeuille d'investissements et du bénéfice net.
Skyward Specialty Insurance Group (NASDAQ: SKWD) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 42,1 Millionen US-Dollar (1,01 US-Dollar je verwässerter Aktie), gegenüber 36,8 Millionen US-Dollar im ersten Quartal 2024. Das Unternehmen erzielte einen Rekordwert beim bereinigten operativen Ergebnis von 37,3 Millionen US-Dollar (0,90 US-Dollar je verwässerter Aktie), was einer Steigerung von 20 % gegenüber dem Vorjahr entspricht. Die gebuchten Bruttoprämien stiegen um 16,7 % auf 535,3 Millionen US-Dollar, getrieben durch starke Leistungen in den Bereichen Landwirtschaft und Kreditrückversicherung, Unfall & Gesundheit sowie Spezialprogramme.
Wichtige Leistungskennzahlen umfassten eine kombinierte Schadenquote von 90,5 %, eine ex-Katastrophen kombinierte Schadenquote von 88,3 % und eine annualisierte Eigenkapitalrendite von 20,5 %. Der Buchwert je Aktie stieg um 6 % auf 21,06 US-Dollar im Vergleich zum 31. Dezember 2024. Das Eigenkapital der Gesellschaft erhöhte sich um 7,1 % auf 850,7 Millionen US-Dollar, hauptsächlich aufgrund des gestiegenen Marktwerts des Investmentportfolios und des Nettogewinns.
- Record adjusted operating income of $37.3 million, up 20% year-over-year
- Strong premium growth of 16.7% to $535.3 million
- Impressive annualized return on equity of 20.5%
- Book value per share increased 6% to $21.06
- Solid combined ratio of 90.5%, indicating strong underwriting performance
- Net investment income increased by $1.0 million compared to Q1 2024
- Higher catastrophe losses from convective storms and California wildfires
- Losses in alternative and strategic investments portfolio
- Decrease in gross written premiums in global property division
Insights
Skyward delivers exceptional Q1 with 20.3% adjusted income growth, 16.7% premium increase, and 20.5% ROE despite higher catastrophe losses.
Skyward Specialty delivered impressive Q1 2025 results with net income rising 14.4% to
Premium growth was robust with gross written premiums increasing 16.7% to
Profitability metrics remain strong with a combined ratio of
The balance sheet continues to strengthen with book value per share growing 6% since year-end 2024 to
Investment income rose slightly to
Skyward's niche strategy delivers growth through divisional realignment and disciplined underwriting despite higher catastrophe exposure.
Skyward's Q1 results validate its "Rule Our Niche" specialty insurance strategy, with particular success in areas less correlated to traditional P&C cycles. The company strategically reorganized its business into nine divisions, creating a dedicated Agriculture and Credit (Re)insurance division that captures both their Global Agriculture unit and Mortgage and Credit units - segments CEO Robinson specifically highlighted as having "breakout quarters" in line with their intentional growth strategy.
From an underwriting perspective, the
The expense ratio improvement of 0.6 points (to
The Global Property division was the only segment reporting decreased premiums, suggesting disciplined underwriting in a more challenging market segment. This strategic reallocation of capacity toward higher-performing niches demonstrates management's commitment to portfolio optimization rather than growth for growth's sake.
The organizational realignment reflects a sophisticated approach to capital allocation, with resources directed toward specialty classes where technical underwriting expertise creates sustainable competitive advantages - particularly in less commoditized market segments.
HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported first quarter 2025 net income of
Adjusted operating income(1) for the first quarter of 2025 was
Highlights for the first quarter included:
- Gross written premiums of
$535.3 million , an increase of16.7% compared to 2024; - Combined ratio of
90.5% ; - Ex-Cat combined ratio of
88.3% ; - Annualized return on equity of
20.5% ; and, - Book value per share of
$21.06 , an increase of6% compared to December 31, 2024.
| (1) See "Reconciliation of Non-GAAP Financial Measures" |
Skyward Specialty Chairman and CEO Andrew Robinson commented, "We delivered outstanding first quarter results, including adjusted operating income(1) which increased over
"As we look out to the remainder of the year, we remain confident that the strength of our diversified business portfolio, the power of our Rule Our Niche strategy, our investment in technology and talent, and our track record for consistent execution, positions us to continue to deliver strong financial results that create long-term value for our shareholders."
Results of Operations
Underwriting Results
| Premiums | |||||||||||
| ($ in thousands) | Three months ended March 31, | ||||||||||
| unaudited | 2025 | 2024 | % Change | ||||||||
| Gross written premiums | $ | 535,326 | $ | 458,620 | 16.7 | % | |||||
| Ceded written premiums | $ | (192,055 | ) | $ | (171,520 | ) | 12.0 | % | |||
| Net retention | 64.1 | % | 62.6 | % | NM | (1) | |||||
| Net written premiums | $ | 343,271 | $ | 287,100 | 19.6 | % | |||||
| Net earned premiums | $ | 300,366 | $ | 236,342 | 27.1 | % | |||||
| (1)Not meaningful | |||||||||||
The increase in gross written premiums for the first quarter of 2025, when compared to the same 2024 period, was driven by double-digit premium growth primarily from the agriculture and credit (re)insurance, accident & health and specialty programs divisions, partially offset by a decrease in gross written premiums in the global property division.
During the first quarter 2025, the Company updated its underwriting divisions to align with how management currently oversees the business, allocates resources and evaluates operating performance. The Company added a ninth division, Agriculture and Credit (Re)insurance, which includes the Global Agriculture unit, previously reported with Global Property, and the Mortgage and Credit units, and focuses on specialty classes for which reinsurance provides a more attractive market entry. The Industry Solutions division is now the Construction & Energy Solutions division and the Inland Marine unit is now included in the Transactional E&S division. Programs is now Specialty Programs. Prior reporting periods have been conformed to reflect the new presentation.
| Combined Ratio | Three months ended March 31, | |||||
| (unaudited) | 2025 | 2024 | ||||
| Non-cat loss and LAE | 60.2 | % | 60.6 | % | ||
| Cat loss and LAE(1) | 2.2 | % | 0.4 | % | ||
| Prior accident year development - LPT | 0.0 | % | (0.1) | % | ||
| Loss Ratio | 62.4 | % | 60.9 | % | ||
| Net policy acquisition costs | 14.8 | % | 13.6 | % | ||
| Other operating and general expenses | 14.0 | % | 16.0 | % | ||
| Commission and fee income | (0.7) | % | (0.9) | % | ||
| Expense ratio | 28.1 | % | 28.7 | % | ||
| Combined ratio | 90.5 | % | 89.6 | % | ||
| Ex-Cat Combined Ratio(2) | 88.3 | % | 89.2 | % | ||
| (1)Current accident year | ||||||
| (2)Defined as the combined ratio excluding cat loss and LAE(1) | ||||||
The loss ratio for the first quarter of 2025 increased 1.5 points when compared to the same 2024 period, due to higher catastrophe losses, primarily from convective storms in the Midwest and the California wildfires. Partially offsetting the increase in the cat loss and LAE ratio was improvement in the non-cat loss and LAE ratio driven by the business mix shift.
The expense ratio for the first quarter improved 0.6 points when compared to the same 2024 period due to earnings leverage partially offset by higher acquisition costs due to the business mix shift.
The expense ratios for the first quarters of 2025 and 2024 exclude the impact of IPO related stock compensation and secondary offering expenses, which are reported in other expenses in our condensed consolidated statements of operations and comprehensive income.
Investment Results
| Net Investment Income | ||||||||
| $ in thousands | Three months ended March 31, | |||||||
| (unaudited) | 2025 | 2024 | ||||||
| Short-term investments & cash and cash equivalents | $ | 4,041 | $ | 5,088 | ||||
| Fixed income | 16,730 | 12,478 | ||||||
| Equities | 657 | 627 | ||||||
| Alternative & strategic investments | (2,097 | ) | 104 | |||||
| Net investment income | $ | 19,331 | $ | 18,297 | ||||
| Net unrealized gains on securities still held | $ | 5,491 | $ | 8,991 | ||||
| Net realized gains (losses) | 1,350 | (688 | ) | |||||
| Net investment gains | $ | 6,841 | $ | 8,303 | ||||
Net investment income for the first quarter of 2025 increased
Stockholders’ Equity
Stockholders’ equity was
Conference Call
At 9:30 a.m. eastern time tomorrow, May 2, 2025, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.
Non-GAAP Financial Measures
This release contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We refer to these measures as “non-GAAP financial measures.” We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.
We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”
About Skyward Specialty Insurance Group, Inc.
Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through nine underwriting divisions - Accident & Health, Agriculture and Credit (Re)insurance, Captives, Construction & Energy Solutions, Global Property, Professional Lines, Specialty Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.
Skyward Specialty's subsidiary insurance companies consist of Great Midwest Insurance Company, Houston Specialty Insurance Company, Imperium Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with stable outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.
Forward-Looking Statements
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are typically, but not always, identified through use of the words "believe," "expect," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Skyward Specialty's Form 10-K, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverages and the general costs of doing business, the potential loss of key members of our management team or key employees and our ability to attract and retain personnel, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, other types of catastrophic events, our ability to obtain reinsurance coverage at prices and on terms that allow us to transfer risk and adequately protect our company against financial loss, and losses resulting from reinsurance counterparties failing to pay us on reinsurance claims. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Skyward Specialty Insurance Group, Inc.
Investor contact:
Natalie Schoolcraft,
nschoolcraft@skywardinsurance.com
614-494-4988
or
Media contact:
Haley Doughty
hdoughty@skywardinsurance.com
713-935-4944
| Consolidated Balance Sheets | ||||||||
| ($ in thousands, except share and per share amounts) | ||||||||
| (unaudited) | March 31, 2025 | December 31, 2024 | ||||||
| Assets | ||||||||
| Investments: | ||||||||
| Fixed maturity securities, available-for-sale, at fair value (amortized cost of | $ | 1,397,508 | $ | 1,292,218 | ||||
| Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of | 37,519 | 39,153 | ||||||
| Equity securities, at fair value | 108,075 | 106,254 | ||||||
| Mortgage loans, at fair value | 16,012 | 26,490 | ||||||
| Equity method investments | 88,588 | 98,594 | ||||||
| Other long-term investments | 37,646 | 33,182 | ||||||
| Short-term investments, at fair value | 308,042 | 274,929 | ||||||
| Total investments | 1,993,390 | 1,870,820 | ||||||
| Cash and cash equivalents | 112,916 | 121,603 | ||||||
| Restricted cash | 40,590 | 35,922 | ||||||
| Premiums receivable, net | 417,542 | 321,641 | ||||||
| Reinsurance recoverables, net | 902,970 | 857,876 | ||||||
| Ceded unearned premium | 232,147 | 203,901 | ||||||
| Deferred policy acquisition costs | 126,439 | 113,183 | ||||||
| Deferred income taxes | 26,984 | 30,486 | ||||||
| Goodwill and intangible assets, net | 87,089 | 87,348 | ||||||
| Other assets | 90,566 | 86,698 | ||||||
| Total assets | $ | 4,030,633 | $ | 3,729,478 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Liabilities: | ||||||||
| Reserves for losses and loss adjustment expenses | $ | 1,871,491 | $ | 1,782,383 | ||||
| Unearned premiums | 708,347 | 637,185 | ||||||
| Deferred ceding commission | 45,544 | 40,434 | ||||||
| Reinsurance and premium payables | 243,083 | 177,070 | ||||||
| Funds held for others | 113,748 | 102,665 | ||||||
| Accounts payable and accrued liabilities | 78,154 | 76,206 | ||||||
| Notes payable | 100,000 | 100,000 | ||||||
| Subordinated debt, net of debt issuance costs | 19,545 | 19,536 | ||||||
| Total liabilities | 3,179,912 | 2,935,479 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, | 404 | 401 | ||||||
| Additional paid-in capital | 721,186 | 718,598 | ||||||
| Accumulated other comprehensive loss | (10,047 | ) | (22,120 | ) | ||||
| Retained earnings | 139,178 | 97,120 | ||||||
| Total stockholders’ equity | 850,721 | 793,999 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,030,633 | $ | 3,729,478 | ||||
| Condensed Consolidated Statements of Operations and Comprehensive Income | ||||||||
| ($ in thousands) | Three months ended March 31, | |||||||
| (unaudited) | 2025 | 2024 | ||||||
| Revenues: | ||||||||
| Net earned premiums | $ | 300,366 | $ | 236,342 | ||||
| Commission and fee income | 1,976 | 2,026 | ||||||
| Net investment income | 19,331 | 18,297 | ||||||
| Net investment gains | 6,841 | 8,303 | ||||||
| Other income | 13 | — | ||||||
| Total revenues | 328,527 | 264,968 | ||||||
| Expenses: | ||||||||
| Losses and loss adjustment expenses | 187,309 | 143,914 | ||||||
| Underwriting, acquisition and insurance expenses | 86,551 | 69,774 | ||||||
| Interest expense | 1,834 | 2,727 | ||||||
| Amortization expense | 337 | 388 | ||||||
| Other expenses | 1,061 | 1,188 | ||||||
| Total expenses | 277,092 | 217,991 | ||||||
| Income before income taxes | 51,435 | 46,977 | ||||||
| Income tax expense | 9,377 | 10,193 | ||||||
| Net income | 42,058 | 36,784 | ||||||
| Comprehensive income: | ||||||||
| Net income | $ | 42,058 | $ | 36,784 | ||||
| Other comprehensive income: | ||||||||
| Unrealized gains and losses on investments: | ||||||||
| Net change in unrealized gains (losses) on investments, net of tax | 12,255 | (5,418 | ) | |||||
| Reclassification adjustment for losses on securities no longer held, net of tax | (182 | ) | (908 | ) | ||||
| Total other comprehensive income (loss) | 12,073 | (6,326 | ) | |||||
| Comprehensive income | $ | 54,131 | $ | 30,458 | ||||
| Share and Per Share Data | ||||||||
| ($ in thousands, except share and per share amounts) | Three months ended March 31, | |||||||
| (unaudited) | 2025 | 2024 | ||||||
| Weighted average basic shares | 40,196,416 | 39,108,351 | ||||||
| Weighted average diluted shares | 41,680,595 | 41,085,136 | ||||||
| Basic earnings per share | $ | 1.05 | $ | 0.94 | ||||
| Diluted earnings per share | $ | 1.01 | $ | 0.90 | ||||
| Basic adjusted operating earnings per share | $ | 0.93 | $ | 0.79 | ||||
| Diluted adjusted operating earnings per share | $ | 0.90 | $ | 0.75 | ||||
| Annualized ROE(1) | 20.5 | % | 21.7 | % | ||||
| Annualized adjusted ROE(2) | 18.2 | % | 18.3 | % | ||||
| Annualized ROTE(3) | 22.9 | % | 25.0 | % | ||||
| Annualized adjusted ROTE(4) | 20.3 | % | 21.1 | % | ||||
| March 31 | December 31 | |||||||
| 2025 | 2024 | |||||||
| Shares outstanding | 40,402,879 | 40,127,908 | ||||||
| Fully diluted shares outstanding | 42,234,957 | 42,059,182 | ||||||
| Book value per share | $ | 21.06 | $ | 19.79 | ||||
| Fully diluted book value per share | $ | 20.14 | $ | 18.88 | ||||
| Fully diluted tangible book value per share | $ | 18.08 | $ | 16.80 | ||||
| (1)Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period | ||||||||
| (2)Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period | ||||||||
| (3)Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period | ||||||||
| (4)Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period | ||||||||
Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.
| ($ in thousands) | Three months ended March 31, | |||||||||||||||
| (unaudited) | 2025 | 2024 | ||||||||||||||
| Pre-tax | After-tax | Pre-tax | After-tax | |||||||||||||
| Income as reported | $ | 51,435 | $ | 42,058 | $ | 46,977 | $ | 36,784 | ||||||||
| Less (add): | ||||||||||||||||
| Net investment gains | 6,841 | 5,594 | 8,303 | 6,501 | ||||||||||||
| Net impact of loss portfolio transfer | — | — | 241 | 189 | ||||||||||||
| Other income | 13 | 11 | — | — | ||||||||||||
| Other expenses | (1,061 | ) | (868 | ) | (1,188 | ) | (930 | ) | ||||||||
| Adjusted operating income | $ | 45,642 | $ | 37,321 | $ | 39,621 | $ | 31,024 | ||||||||
Underwriting income – We define underwriting income as net income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.
| ($ in thousands) | Three months ended March 31, | |||||
| (unaudited) | 2025 | 2024 | ||||
| Income before income taxes | $ | 51,435 | $ | 46,977 | ||
| Add: | ||||||
| Interest expense | 1,834 | 2,727 | ||||
| Amortization expense | 337 | 388 | ||||
| Other expenses | 1,061 | 1,188 | ||||
| Less: | ||||||
| Net investment income | 19,331 | 18,297 | ||||
| Net investment gains | 6,841 | 8,303 | ||||
| Other income | 13 | — | ||||
| Underwriting income | $ | 28,482 | $ | 24,680 | ||
Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.
| ($ in thousands) | March 31, | December 31, | |||||||
| (unaudited) | 2025 | 2024 | 2024 | ||||||
| Stockholders' equity | $ | 850,721 | $ | 692,272 | $ | 793,999 | |||
| Less: Goodwill and intangible assets | 87,089 | 88,137 | 87,348 | ||||||
| Tangible stockholders' equity | $ | 763,632 | $ | 604,135 | $ | 706,651 | |||
| Three months ended March 31, | |||||||||
| ($ in thousands) | 2025 | 2024 | % Change | ||||||
| Accident & Health | $ | 63,169 | $ | 40,901 | 54.4 | % | |||
| Agriculture and Credit (Re)insurance | 87,847 | 43,321 | 102.8 | % | |||||
| Captives | 68,401 | 68,408 | — | % | |||||
| Construction & Energy Solutions | 75,571 | 74,222 | 1.8 | % | |||||
| Global Property | 46,686 | 57,312 | (18.5) | % | |||||
| Professional Lines | 41,166 | 42,239 | (2.5) | % | |||||
| Specialty Programs | 62,675 | 52,178 | 20.1 | % | |||||
| Surety | 37,798 | 33,842 | 11.7 | % | |||||
| Transactional E&S | 52,006 | 46,232 | 12.5 | % | |||||
| Total gross written premiums(1) | $ | 535,319 | $ | 458,655 | 16.7 | % | |||
| (1)Excludes exited business | |||||||||
FAQ
What were Skyward Specialty's (SKWD) Q1 2025 earnings per share?
How much did Skyward Specialty's (SKWD) gross written premiums grow in Q1 2025?
What was Skyward Specialty's (SKWD) combined ratio in Q1 2025?
What was Skyward Specialty's (SKWD) return on equity in Q1 2025?
How did Skyward Specialty's (SKWD) book value per share change in Q1 2025?
