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Skyward Specialty Insurance Group Reports Second Quarter 2025 Results
Houston, TX – July 30, 2025 – 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,
unaudited20252024%
Change		20252024%
Change
Gross written premiums$584,914$496,243 17.9%$1,120,240$954,86317.3%
Ceded written premiums$(245,701)$(199,114)23.4%$(437,756)$(370,634)18.1%
Net retention58.0%59.9%
 NM (1)
60.9%61.2%
 NM (1)
Net written premiums$339,213$297,12914.2 %$682,484$584,22916.8%
Net earned premiums$295,542$257,58314.7 %$595,908$493,92520.6%
(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)2025202420252024
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 Ratio61.3 %61.7 %61.9 %61.3 %
Net policy acquisition costs15.1 %14.0 %15.0 %13.7 %
Other operating and general expenses13.9 %15.8 %13.9 %15.9 %
Commission and fee income(0.9)%(0.8)%(0.8)%(0.8)%
Expense ratio28.1 %29.0 %28.1 %28.8 %
Combined ratio89.4 %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.
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Investment Results
Net Investment Income
$ in thousandsThree months ended June 30,Six months ended June 30,
(unaudited)2025202420252024
Short-term investments & cash and cash equivalents $4,574 $4,021 $8,615 $9,108 
Fixed income
17,822 13,78634,55226,264
Equities
531 7511,1881,378
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.
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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.
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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

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Skyward Specialty Insurance Group, Inc.
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 value58,001 106,254 
Mortgage loans, at fair value10,168 26,490 
Equity method investments88,804 98,594 
Other long-term investments44,479 33,182 
Short-term investments, at fair value214,338 274,929 
Total investments2,080,507 1,870,820 
Cash and cash equivalents136,617 121,603 
Restricted cash36,547 35,922 
Premiums receivable, net518,441 321,641 
Reinsurance recoverables, net925,291 857,876 
Ceded unearned premium294,124 203,901 
Deferred policy acquisition costs140,903 113,183 
Deferred income taxes28,727 30,486 
Goodwill and intangible assets, net88,795 87,348 
Other assets86,440 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 premiums814,063 637,185 
Deferred ceding commission54,952 40,434 
Reinsurance and premium payables299,481 177,070 
Funds held for others127,377 102,665 
Accounts payable and accrued liabilities102,298 76,206 
Notes payable100,000 100,000 
Subordinated debt, net of debt issuance costs19,553 19,536 
Total liabilities3,436,477 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 capital724,159 718,598 
Accumulated other comprehensive loss(2,666)(22,120)
Retained earnings178,017 97,120 
Total stockholders’ equity899,915 793,999 
Total liabilities and stockholders’ equity$4,336,392 $3,729,478 
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Skyward Specialty Insurance Group, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
($ in thousands)Three months ended June 30,Six months ended June 30,
(unaudited)2025202420252024
Revenues:
Net earned premiums$295,542 $257,583 $595,908 $493,925 
Commission and fee income2,560 2,053 4,536 4,079 
Net investment income18,589 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 revenues319,903 279,942 648,430 544,910 
Expenses:
Losses and loss adjustment expenses181,262 159,054 368,571 302,968 
Underwriting, acquisition and insurance expenses85,596 76,679 172,147 146,453 
Interest expense1,876 2,449 3,710 5,176 
Amortization expense372 360 709 748 
Other expenses1,002 1,045 2,063 2,233 
Total expenses270,108 239,587 547,200 457,578 
Income before income taxes49,795 40,355 101,230 87,332 
Income tax expense10,956 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 tax11,005 (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 $59,571 
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Skyward Specialty Insurance Group, Inc.
Share and Per Share Data
($ in thousands, except share and per share amounts)Three months ended June 30,Six months ended June 30,
(unaudited)2025202420252024
Weighted average basic shares40,445,39139,177,45740,322,05139,142,825
Weighted average diluted shares41,871,49641,168,08241,771,21541,110,384
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 30December 31
20252024
Shares outstanding40,486,65640,127,908
Fully diluted shares outstanding42,339,39542,059,182
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$16.80
(1) Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period
(2) Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period
(3) Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period
(4) Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period
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Skyward Specialty Insurance Group, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.    
($ in thousands)Three months ended June 30,Six months ended June 30,
(unaudited)2025202420252024
Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-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)2025202420252024
Income before income taxes$49,795 $40,355 $101,230$87,332
Add:
Interest expense1,876 2,449 3,7105,176 
Amortization expense372 360 709748
Other expenses1,002 1,045 2,0632,233
Less (Add):  
Net investment income18,589 22,034 37,92740,331
Net investment gains (losses)3,205 (1,721)10,0396,582
Other income (loss)7 (7)20(7)
Underwriting income$31,244 $23,903 $59,726$48,583
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Skyward Specialty Insurance Group, Inc.
Reconciliation of Non-GAAP Financial Measures
Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.
($ in thousands)June 30,December 31,
(unaudited)202520242024
Stockholders’ equity
$899,915$723,620$793,999 
Less: Goodwill and intangible assets88,79587,86887,348
Tangible stockholders’ equity
$811,120$635,752$706,651
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Skyward Specialty Insurance Group, Inc.
Gross Written Premiums by Underwriting Division (Unaudited)
Three months ended June 30,Six months ended June 30,
($ in thousands)20252024%
Change		20252024% Change
Accident & Health $60,489 $44,088 37.2 %$123,658$84,98945.5 %
Agriculture and Credit (Re)insurance71,57336,59295.6 %159,42079,91399.5 %
Captives 76,961 62,099 23.9 %145,362130,50711.4 %
Construction & Energy Solutions73,61378,214 (5.9)%149,184152,436(2.1)%
Global Property83,99288,231(4.8)%130,678145,543(10.2)%
Professional Lines 38,147 38,106 0.1 %79,31380,345(1.3)%
Specialty Programs 85,955 59,644 44.1 %148,630111,82232.9 %
Surety 40,737 37,642 8.2 %78,53571,4849.9 %
Transactional E&S 53,461 51,609 3.6 %105,46797,8417.8 %
Total gross written premiums(1)
$584,928$496,22517.9%$1,120,247$954,88017.3%
(1) Excludes exited business
Twelve months ended June 30,
($ in thousands)2025% of Total
Accident & Health $211,74211.1 %
Agriculture and Credit (Re)insurance197,57810.4 %
Captives 256,75713.5 %
Construction & Energy Solutions293,32915.4 %
Global Property186,9309.8 %
Professional Lines 158,7538.3 %
Specialty Programs 255,21513.4 %
Surety 151,0167.9 %
Transactional E&S 197,29610.3 %
Total gross written premiums(1)
$1,908,616100.0 %
(1) Excludes exited business
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