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Skyward Specialty Insurance Group Reports Second Quarter 2025 Results

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Skyward Specialty Insurance Group (Nasdaq: SKWD) reported strong Q2 2025 financial results, with net income rising to $38.8 million ($0.93 per diluted share), up from $31.0 million in Q2 2024. The company achieved impressive growth with gross written premiums increasing 17.9% to $584.9 million and an exceptional combined ratio of 89.4%.

Key performance metrics include an annualized return on equity of 19.1% for H1 2025 and book value per share growth of 12% to $22.23. The company's success was driven by strong performance in agriculture, credit (re)insurance, specialty programs, accident & health, and captives divisions, though partially offset by decreases in global property and construction segments.

The company demonstrated solid underwriting performance with an improved expense ratio and stable loss ratios, while investment income faced some headwinds from alternative investments.

Skyward Specialty Insurance Group (Nasdaq: SKWD) ha riportato risultati finanziari solidi nel secondo trimestre del 2025, con un utile netto in crescita a 38,8 milioni di dollari (0,93 dollari per azione diluita), rispetto ai 31,0 milioni del secondo trimestre 2024. L'azienda ha registrato una crescita notevole con premi lordi contabilizzati in aumento del 17,9% a 584,9 milioni di dollari e un eccellente indice combinato del 89,4%.

Le principali metriche di performance includono un rendimento annualizzato del capitale proprio del 19,1% per il primo semestre 2025 e una crescita del valore contabile per azione del 12%, raggiungendo 22,23 dollari. Il successo dell'azienda è stato trainato da ottime performance nei settori agricoltura, riassicurazione del credito, programmi specializzati, infortuni e salute, e divisioni captive, sebbene parzialmente compensato da cali nei segmenti proprietà globale e costruzioni.

L'azienda ha mostrato una solida performance di sottoscrizione con un miglioramento del rapporto spese e rapporti di perdita stabili, mentre i ricavi da investimenti hanno risentito di alcune difficoltà legate agli investimenti alternativi.

Skyward Specialty Insurance Group (Nasdaq: SKWD) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un ingreso neto que aumentó a 38,8 millones de dólares (0,93 dólares por acción diluida), frente a 31,0 millones en el segundo trimestre de 2024. La compañía logró un crecimiento impresionante con primas brutas emitidas que aumentaron un 17,9% hasta 584,9 millones de dólares y un excepcional índice combinado del 89,4%.

Las métricas clave incluyen un retorno anualizado sobre el capital del 19,1% para el primer semestre de 2025 y un crecimiento del valor contable por acción del 12%, alcanzando 22,23 dólares. El éxito de la empresa fue impulsado por un sólido desempeño en agricultura, reaseguro de crédito, programas especializados, accidentes y salud, y divisiones de cautivas, aunque parcialmente compensado por disminuciones en los segmentos de propiedad global y construcción.

La empresa demostró un sólido desempeño de suscripción con una mejora en el ratio de gastos y ratios de pérdidas estables, mientras que los ingresos por inversiones enfrentaron algunos retos debido a inversiones alternativas.

Skyward Specialty Insurance Group (나스닥: SKWD)는 2025년 2분기에 강력한 재무 실적을 보고했으며, 순이익이 3,880만 달러(희석 주당 0.93달러)로 증가하여 2024년 2분기의 3,100만 달러에서 상승했습니다. 회사는 총 보험료 수입이 17.9% 증가하여 5억8,490만 달러를 기록했고, 뛰어난 결합비율 89.4%를 달성했습니다.

주요 성과 지표로는 2025년 상반기 연환산 자기자본이익률 19.1%와 주당 장부가치가 12% 증가하여 22.23달러에 달했습니다. 회사의 성공은 농업, 신용(재)보험, 전문 프로그램, 상해 및 건강, 그리고 캡티브 부문의 강력한 실적에 힘입었으나, 글로벌 재산 및 건설 부문의 감소로 일부 상쇄되었습니다.

회사는 비용 비율이 개선되고 손실 비율이 안정적인 견고한 인수 실적을 보였으며, 투자 수익은 대체 투자에서 일부 어려움을 겪었습니다.

Skyward Specialty Insurance Group (Nasdaq : SKWD) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un revenu net en hausse à 38,8 millions de dollars (0,93 dollar par action diluée), contre 31,0 millions au deuxième trimestre 2024. La société a enregistré une croissance impressionnante avec une prime brute souscrite en hausse de 17,9 % à 584,9 millions de dollars et un ratio combiné exceptionnel de 89,4 %.

Les indicateurs clés de performance incluent un rendement annualisé des capitaux propres de 19,1 % pour le premier semestre 2025 et une croissance de la valeur comptable par action de 12 % à 22,23 dollars. Le succès de l'entreprise a été porté par de solides performances dans les secteurs de l'agriculture, de la (ré)assurance crédit, des programmes spécialisés, des accidents & santé, et des captives, bien que partiellement compensé par des baisses dans les segments propriété mondiale et construction.

L'entreprise a démontré une solide performance en souscription avec un ratio de dépenses amélioré et des ratios de sinistres stables, tandis que les revenus d'investissement ont été freinés par quelques difficultés liées aux investissements alternatifs.

Skyward Specialty Insurance Group (Nasdaq: SKWD) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 38,8 Millionen US-Dollar (0,93 US-Dollar je verwässerter Aktie), gegenüber 31,0 Millionen US-Dollar im zweiten Quartal 2024. Das Unternehmen erzielte ein beeindruckendes Wachstum mit Bruttobeitragseinnahmen, die um 17,9 % auf 584,9 Millionen US-Dollar stiegen, sowie einer hervorragenden kombinierten Schaden-Kosten-Quote von 89,4 %.

Wichtige Leistungskennzahlen umfassen eine annualisierte Eigenkapitalrendite von 19,1 % für das erste Halbjahr 2025 und ein Wachstum des Buchwerts je Aktie um 12 % auf 22,23 US-Dollar. Der Erfolg des Unternehmens wurde durch starke Leistungen in den Bereichen Landwirtschaft, Kredit-(Rück)versicherung, Spezialprogramme, Unfall & Gesundheit sowie Captives angetrieben, teilweise jedoch durch Rückgänge in den Segmenten globale Sachwerte und Bau ausgeglichen.

Das Unternehmen zeigte eine solide Underwriting-Performance mit verbesserter Kostenquote und stabilen Schadensquoten, während die Erträge aus Investitionen durch alternative Anlagen etwas belastet wurden.

Positive
  • Net income increased 25.2% YoY to $38.8 million in Q2 2025
  • Gross written premiums grew 17.9% to $584.9 million
  • Combined ratio improved to 89.4% from 90.7% year-over-year
  • Book value per share increased 12% compared to December 31, 2024
  • Annualized return on equity reached 19.1% for H1 2025
  • Expense ratio improved by 0.9 percentage points to 28.1%
Negative
  • Net investment income decreased by $3.4 million in Q2 2025 compared to Q2 2024
  • Alternative & strategic investments portfolio recorded losses of $4.3 million
  • Decreases reported in global property and construction & energy solutions divisions
  • Net retention ratio declined to 58.0% from 59.9% year-over-year
  • Catastrophe losses increased due to convective storms and California wildfires

Insights

Skyward Specialty posts strong Q2 results with 17.9% premium growth and 89.4% combined ratio, demonstrating effective niche strategy execution.

Skyward Specialty delivered impressive second quarter results that validate their strategic positioning in specialty insurance markets. The company reported $38.8 million in net income ($0.93 per diluted share), representing a 25.2% increase from the $31.0 million ($0.75 per share) in Q2 2024. Their adjusted operating income reached $37.1 million ($0.89 per share), up from $33.0 million in the comparable period.

The 17.9% growth in gross written premiums to $584.9 million is particularly noteworthy in what management describes as an "increasingly challenging market environment." This growth was primarily driven by strong performance across several divisions, including agriculture, credit (re)insurance, specialty programs, accident & health, and captives. The company's diversification strategy is clearly paying dividends by allowing targeted growth in more attractive segments while offsetting weakness in global property and construction & energy solutions.

From an underwriting perspective, Skyward achieved their best-ever combined ratio of 89.4%, improving from 90.7% in Q2 2024. The ex-catastrophe combined ratio was even better at 88.0%. This level of underwriting profitability places them firmly in the top tier of specialty insurers. The improvement was driven by both the loss ratio (61.3% vs 61.7%) and expense ratio (28.1% vs 29.0%), with the latter benefiting from improved operating leverage despite higher acquisition costs from business mix changes.

The investment side shows mixed results, with net investment income declining to $18.6 million from $22.0 million in Q2 2024, primarily due to losses in alternative investments. However, this was partially offset by improved fixed income yields and the company did report net investment gains of $3.2 million versus losses in the prior year period.

Book value per share increased 12% since year-end 2024 to $22.23, while annualized ROE reached an impressive 19.1% for the first half of 2025. These metrics demonstrate strong capital management and value creation, positioning Skyward favorably compared to specialty insurance peers that typically target mid-teens ROE.

The company's "Rule Our Niche" strategy appears to be working effectively, allowing them to maintain underwriting discipline while still achieving strong growth. This balanced approach to growth and profitability, along with their portfolio diversification, suggests they're well-positioned to navigate evolving market conditions while continuing to deliver what management describes as "top quartile returns" to shareholders.

HOUSTON, July 30, 2025 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported second quarter 2025 net income of $38.8 million, or $0.93 per diluted share, compared to $31.0 million, or $0.75 per diluted share, for the same 2024 period. Net income for the first half of 2025 was $80.9 million, or $1.94 per diluted share, compared to $67.8 million, or $1.65 per diluted share, for the same 2024 period.

Adjusted operating income(1) for the second quarter of 2025 was $37.1 million, or $0.89 per diluted share, compared to $33.0 million, or $0.80 per diluted share, for the same 2024 period. Adjusted operating income(1) for the first half of 2025 was $74.5 million, or $1.78 per diluted share, compared to $63.9 million, or $1.56 per diluted share, for the same 2024 period.

Highlights for the second quarter included:

  • Gross written premiums of $584.9 million, an increase of 17.9% compared to 2024;
  • Combined ratio of 89.4%;
  • Ex-Cat combined ratio of 88.0%;
  • Annualized return on equity of 19.1% for the six months ended June 30, 2025; and,
  • Book value per share of $22.23, an increase of 12% compared to December 31, 2024.

(1) See "Reconciliation of Non-GAAP Financial Measures"  

Skyward Specialty Chairman and CEO Andrew Robinson commented, "Our results for the second quarter and for the first half of the year have been outstanding and reflect the strength of our specialized underwriting and claims capabilities, and our execution excellence. In an increasingly challenging market environment, our 18% growth for the second quarter and best ever 89.4% combined ratio are again a demonstration of the power of our portfolio diversity and our ability to deploy capital to attractive markets that enable us to grow underwriting profitability while managing our volatility. As market conditions continue to evolve, we are confident that the disciplined execution of our "Rule Our Niche" strategy will enable us to continue to deliver top quartile returns to our shareholders."

Results of Operations

Underwriting Results

Premiums                 
($ in thousands)Three months ended June 30,
 Six months ended June 30,
unaudited2025 2024 %
Change
 2025 2024 %
Change
Gross written premiums$     584,914  $496,243  17.9% $  1,120,240  $954,863  17.3%
Ceded written premiums$  (245,701) $(199,114) 23.4% $  (437,756) $(370,634) 18.1%
Net retention 58.0 % 59.9% NM(1)  60.9 % 61.2% NM(1)
Net written premiums$     339,213  $297,129  14.2% $     682,484  $584,229  16.8%
Net earned premiums$     295,542  $257,583  14.7% $     595,908  $493,925  20.6%
(1) Not meaningful                 
                  
                  

The increases in gross written premiums for the second quarter and first half of 2025, when compared to the same 2024 periods, were driven by double-digit premium growth from the agriculture and credit (re)insurance, specialty programs, accident & health and captives divisions. The increases in gross written premiums were partially offset by decreases in the global property and construction & energy solutions divisions.

Combined RatioThree months ended June 30,
 Six months ended June 30,
(unaudited)2025 2024 2025 2024
Non-cat loss and LAE 59.9 % 60.6%  60.1 % 60.6%
Cat loss and LAE(1) 1.4 % 1.2%  1.8 % 0.8%
Prior accident year development - LPT 0.0 % (0.1)%  0.0 % (0.1)%
Loss Ratio 61.3 % 61.7%  61.9 % 61.3%
Net policy acquisition costs 15.1 % 14.0%  15.0 % 13.7%
Other operating and general expenses 13.9 % 15.8%  13.9 % 15.9%
Commission and fee income (0.9 )% (0.8)%  (0.8 )% (0.8)%
Expense ratio 28.1 % 29.0%  28.1 % 28.8%
Combined ratio 89.4 % 90.7%  90.0 % 90.1%
Ex-Cat Combined Ratio(2) 88.0 % 89.5%  88.2 % 89.3%
            
(1) Current accident year
(2) Defined as the combined ratio excluding cat loss and LAE(1)
            
            

The loss ratio for the second quarter improved 0.4 points and it increased 0.6 points for the first half of 2025, when compared to the same 2024 periods, respectively. Catastrophe losses in the second quarter increased marginally when compared to the same 2024 period, driven by convective storms in the South and Midwest. The first half of 2025 was also impacted by convective storms in the Midwest and the California wildfires.

The non-cat loss and LAE ratios for the second quarter and first half of 2025 improved 0.7 points and 0.5 points, respectively, when compared to the same 2024 periods, primarily driven by the business mix shift.

The expense ratios for the second quarter and first half of 2025 improved 0.9 points and 0.7 points, respectively, when compared to the same 2024 periods due to earnings leverage partially offset by higher acquisition costs due to the business mix shift.

The expense ratios for all periods presented 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 thousandsThree months ended June 30,
 Six months ended June 30,
(unaudited)2025 2024 2025 2024
Short-term investments & cash and cash equivalents$              4,574   $4,021  $             8,615   $9,108 
Fixed income              17,822   13,786                34,552  26,264 
Equities                   531   751                  1,188  1,378 
Alternative & strategic investments              (4,338) 3,476              (6,428) 3,581 
Net investment income$           18,589   $22,034  $           37,927   $40,331 
Net unrealized (losses) gains on securities still held$          (3,181) $(1,760) $              2,310  $7,231 
Net realized gains (losses)                6,386  (39)                 7,729  (649)
Net investment gains (losses)$              3,205  $(1,721) $           10,039  $6,582 
            
            

Net investment income for the second quarter and first half of 2025 decreased $3.4 million and $2.4 million, respectively when compared to the same 2024 periods. The decreases were primarily driven by losses from our alternative & strategic investments portfolio due to the decline in the fair value of limited partnership investments. Partially offsetting the decreases were increases in income from our fixed income portfolio due to a higher yield and larger asset base.

Stockholders’ Equity

Stockholders’ equity was $899.9 million at June 30, 2025 which represented an increase of 5.8% when compared to stockholders' equity of $850.7 million at March 31, 2025. The increase in stockholders’ equity was primarily due to an increase in the market value of our investment portfolio and net income.

Conference Call

At 12:00 p.m. eastern time tomorrow, July 31, 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)June 30,
2025
 December 31,
2024
Assets     
Investments:     
Fixed maturity securities, available-for-sale, at fair value (net of allowance for credit losses of $6,150 and $0, respectively) (amortized cost of $1,638,973 and $1,320,266, respectively)$       1,629,464   $1,292,218 
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $268 and $243, respectively)               35,253   39,153 
Equity securities, at fair value               58,001   106,254 
Mortgage loans, at fair value               10,168   26,490 
Equity method investments               88,804   98,594 
Other long-term investments               44,479   33,182 
Short-term investments, at fair value             214,338   274,929 
Total investments          2,080,507   1,870,820 
Cash and cash equivalents             136,617   121,603 
Restricted cash               36,547   35,922 
Premiums receivable, net             518,441   321,641 
Reinsurance recoverables, net             925,291   857,876 
Ceded unearned premium             294,124   203,901 
Deferred policy acquisition costs             140,903   113,183 
Deferred income taxes               28,727   30,486 
Goodwill and intangible assets, net               88,795   87,348 
Other assets               86,440   86,698 
Total assets$       4,336,392   $3,729,478 
Liabilities and stockholders’ equity     
Liabilities:     
Reserves for losses and loss adjustment expenses$       1,918,753   $1,782,383 
Unearned premiums             814,063   637,185 
Deferred ceding commission               54,952   40,434 
Reinsurance and premium payables             299,481   177,070 
Funds held for others             127,377   102,665 
Accounts payable and accrued liabilities             102,298   76,206 
Notes payable             100,000   100,000 
Subordinated debt, net of debt issuance costs               19,553   19,536 
Total liabilities          3,436,477   2,935,479 
Stockholders’ equity     
Common stock, $0.01 par value, 500,000,000 shares authorized, 40,486,656 and 40,127,908 shares issued and outstanding, respectively                     405   401 
Additional paid-in capital             724,159   718,598 
Accumulated other comprehensive loss               (2,666) (22,120)
Retained earnings             178,017   97,120 
Total stockholders’ equity             899,915   793,999 
Total liabilities and stockholders’ equity$       4,336,392   $3,729,478 
      
      


Condensed Consolidated Statements of Operations and Comprehensive Income
($ in thousands)Three months ended June 30,
 Six months ended June 30,
(unaudited)2025 2024 2025 2024
            
Revenues:           
Net earned premiums$         295,542   $257,583  $         595,908   $493,925 
Commission and fee income                2,560   2,053                  4,536   4,079 
Net investment income              18,589   22,034                37,927   40,331 
Net investment gains (losses)                3,205   (1,721)               10,039   6,582 
Other income (loss)                        7   (7)                       20   (7)
Total revenues            319,903   279,942              648,430   544,910 
Expenses:           
Losses and loss adjustment expenses            181,262   159,054              368,571   302,968 
Underwriting, acquisition and insurance expenses              85,596   76,679              172,147   146,453 
Interest expense                1,876   2,449                  3,710   5,176 
Amortization expense                   372   360                     709   748 
Other expenses                1,002   1,045                  2,063   2,233 
Total expenses            270,108   239,587              547,200   457,578 
Income before income taxes              49,795   40,355              101,230   87,332 
Income tax expense              10,956   9,385                20,333   19,578 
Net income$           38,839   $30,970  $           80,897   $67,754 
Comprehensive income:           
Net income$           38,839   $30,970  $           80,897   $67,754 
Other comprehensive income:           
Unrealized gains and losses on investments:           
Net change in unrealized gains (losses) on investments, net of tax              11,005   (1,451)               23,260   (6,869)
Reclassification adjustment for losses on securities no longer held, net of tax              (3,624) (406)               (3,806) (1,314)
Total other comprehensive income (loss)                7,381   (1,857)               19,454   (8,183)
Comprehensive income$           46,220   $29,113  $         100,351   $59,571 
            
            


Share and Per Share Data            
($ in thousands, except share and per share amounts)Three months ended June 30,
 Six months ended June 30,
(unaudited)2025 2024 2025 2024
            
Weighted average basic shares40,445,391  39,177,457  40,322,051  39,142,825 
Weighted average diluted shares41,871,496  41,168,082  41,771,215  41,110,384 
            
Basic earnings per share$           0.96        $0.79  $           2.01        $1.73 
Diluted earnings per share$           0.93        $0.75  $           1.94        $1.65 
Basic adjusted operating earnings per share$           0.92        $0.84  $           1.85        $1.64 
Diluted adjusted operating earnings per share$           0.89        $0.80  $           1.78        $1.56 
            
Annualized ROE (1) 17.7 % 17.5%  19.1 % 19.6%
Annualized adjusted ROE (2) 17.0 % 18.7%  17.6 % 18.5%
Annualized ROTE (3) 19.7 % 20.0%  21.3 % 22.4%
Annualized adjusted ROTE (4) 18.9 % 21.3%  19.6 % 21.2%
            
       June 30 December 31
       2025 2024
            
Shares outstanding      40,486,656  40,127,908 
Fully diluted shares outstanding      42,339,395  42,059,182 
            
Book value per share      $              22.23  $19.79 
Fully diluted book value per share      $              21.25  $18.88 
Fully diluted tangible book value per share      $              19.16  $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
            

Skyward Specialty Insurance Group, Inc.
Reconciliation of Non-GAAP Financial Measures

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 June 30,
 Six months ended June 30,
(unaudited)2025
 2024
 2025
 2024
 Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax
Income as reported$  49,795   $  38,839   $40,355  $30,970  $ 101,230   $  80,897   $87,332  $67,754 
Less (add):                       
Net investment gains (losses)       3,205          2,500   (1,721) (1,360)      10,039          8,023   6,582  5,200 
Net impact of loss portfolio transfer             —                —   241  190               —                —   482  381 
Other income (loss)7  5  (7) (6) 20  16  (7) (6)
Other expenses     (1,002)         (782) (1,045) (826)      (2,063)      (1,649) (2,233) (1,764)
Adjusted operating income$  47,585   $  37,116   $42,887  $32,972  $  93,234   $  74,507   $82,508  $63,943 
                        
                        

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 June 30,
 Six months ended June 30,
(unaudited)2025
 2024 2025
 2024
Income before income taxes$           49,795   $40,355  $         101,230  $87,332 
Add:           
Interest expense                1,876   2,449                  3,710  5,176 
Amortization expense                   372   360                      709  748 
Other expenses                1,002   1,045                  2,063  2,233 
Less (Add):           
Net investment income              18,589   22,034                37,927  40,331 
Net investment gains (losses)                3,205   (1,721)               10,039  6,582 
Other income (loss)                        7   (7)                       20  (7)
Underwriting income$           31,244   $23,903  $            59,726  $48,583 
            
            

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)June 30,
 December 31,
(unaudited)2025
 2024
 2024
Stockholders’ equity$899,915  $723,620  $793,999 
Less: Goodwill and intangible assets88,795  87,868   87,348 
Tangible stockholders equity$811,120  $635,752  $706,651 
        
        


Skyward Specialty Insurance Group, Inc.
Gross Written Premiums by Underwriting Division (Unaudited)
                    
 Three months ended June 30,
 Six months ended June 30,
($ in thousands)2025
 2024
 %
Change
 2025
 2024
 %
Change
Accident & Health$      60,489  $44,088   37.2% $   123,658  $84,989   45.5%
Agriculture and Credit (Re)insurance        71,573  36,592   95.6%       159,420  79,913   99.5%
Captives        76,961  62,099   23.9%       145,362  130,507   11.4%
Construction & Energy Solutions        73,613  78,214   (5.9)%       149,184  152,436   (2.1)%
Global Property        83,992  88,231   (4.8)%       130,678  145,543   (10.2)%
Professional Lines        38,147  38,106   0.1%         79,313  80,345   (1.3)%
Specialty Programs        85,955  59,644   44.1%       148,630  111,822   32.9%
Surety        40,737  37,642   8.2%         78,535  71,484   9.9%
Transactional E&S        53,461  51,609   3.6%       105,467  97,841   7.8%
Total gross written premiums(1)$   584,928  $496,225   17.9% $ 1,120,247  $954,880   17.3%
(1) Excludes exited business                   
                    


 Twelve months ended June 30,
($ in thousands)2025
 % of Total
Accident & Health$211,742   11.1%
Agriculture and Credit (Re)insurance197,578   10.4%
Captives256,757   13.5%
Construction & Energy Solutions293,329   15.4%
Global Property186,930   9.8%
Professional Lines158,753   8.3%
Specialty Programs255,215   13.4%
Surety151,016   7.9%
Transactional E&S197,296   10.3%
Total gross written premiums(1)$1,908,616   100.0%
(1) Excludes exited business      
       

FAQ

What was Skyward Specialty's (SKWD) earnings per share in Q2 2025?

Skyward Specialty reported earnings of $0.93 per diluted share in Q2 2025, compared to $0.75 per diluted share in Q2 2024.

How much did Skyward Specialty's (SKWD) gross written premiums grow in Q2 2025?

Skyward Specialty's gross written premiums grew 17.9% to $584.9 million in Q2 2025 compared to the same period in 2024.

What was SKWD's combined ratio in Q2 2025?

Skyward Specialty achieved a combined ratio of 89.4% in Q2 2025, improving from 90.7% in Q2 2024.

How did Skyward Specialty's investment income perform in Q2 2025?

Net investment income decreased by $3.4 million compared to Q2 2024, primarily due to losses in alternative & strategic investments portfolio.

What was Skyward Specialty's (SKWD) book value per share as of June 30, 2025?

Book value per share was $22.23, representing a 12% increase compared to December 31, 2024.

Which business segments drove SKWD's premium growth in Q2 2025?

Growth was driven by double-digit premium increases in agriculture, credit (re)insurance, specialty programs, accident & health, and captives divisions.
Skyward Specialty Insurance Group Inc

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2.06B
35.43M
12.69%
101.32%
1.81%
Insurance - Property & Casualty
Fire, Marine & Casualty Insurance
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United States
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