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Skyward Specialty Insurance Group Reports Third Quarter 2025 Results
Houston, TX – October 29, 2025 – Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported third quarter 2025 net income of $45.9 million, or $1.10 per diluted share, compared to $36.7 million, or $0.89 per diluted share, for the same 2024 period. Net income for the first nine months of 2025 was $126.8 million, or $3.03 per diluted share, compared to $104.4 million, or $2.53 per diluted share, for the same 2024 period.
Adjusted operating income(1) for the third quarter of 2025 was $44.0 million, or $1.05 per diluted share, compared to $29.4 million, or $0.71 per diluted share, for the same 2024 period. Adjusted operating income(1) for the first nine months of 2025 was $118.6 million, or $2.84 per diluted share, compared to $93.4 million, or $2.26 per diluted share, for the same 2024 period.
Highlights for the third quarter included:
•Gross written premiums of $606.5 million, an increase of 51.6% compared to 2024;
•Combined ratio of 89.2%;
•Ex-Cat combined ratio of 88.6%;
•Annualized return on equity of 19.3% for the nine months ended September 30, 2025; and,
•Book value per share of $23.75, an increase of 20% compared to December 31, 2024.
(1) See “Reconciliation of Non-GAAP Financial Measures”
Skyward Specialty Chairman and CEO Andrew Robinson commented, “Our third quarter results were exceptional, extending our track record of profitable growth and double-digit returns. Gross written premiums grew more than 50%, we achieved a Company-best combined ratio of 89.2% and annualized return on equity of 19.3%. Five of our nine divisions grew by more than 25% in the quarter, led by the agriculture and credit (re)insurance division. These results underscore the strength and discipline of our “Rule Our Niche” strategy and the benefits of our intentionally diversified portfolio, much of which is less exposed to P&C market cycles. Even as competition increases in parts of the market, our teams continue to respond with discipline, leaning in where returns meet our standards and stepping back where they do not.”
“Our results reflect our excellent execution of our “Rule Our Niche” strategy and relentless focus on creating sustainable value. As we prepare for the expected close of the Apollo acquisition early in the new year, we remain confident in our outlook for the balance of the year and beyond.”


Results of Operations
Underwriting Results
Premiums
($ in thousands)Three months ended September 30,Nine months ended September 30,
unaudited20252024%
Change		20252024%
Change
Gross written premiums$606,509$400,014 51.6%$1,726,749$1,354,87727.4%
Ceded written premiums$(165,342)$(131,692)25.6%$(603,098)$(502,326)20.1%
Net retention72.7%67.1%
 NM (1)
65.1%62.9%
 NM (1)
Net written premiums$441,167$268,32264.4 %$1,123,651$852,55131.8%
Net earned premiums$351,797$269,55730.5 %$947,705$763,48224.1%
(1) Not meaningful
The increases in gross written premiums for the third quarter and first nine months of 2025, when compared to the same 2024 periods, were primarily driven by growth from the agriculture and credit (re)insurance division. Specialty programs, accident & health, captives and surety also contributed meaningfully to the growth.
Combined RatioThree months ended September 30,Nine months ended September 30,
(unaudited)2025202420252024
Non-cat loss and LAE
60.2 %60.6 %60.1 %60.6 %
Cat loss and LAE(1)
0.6%2.8 %1.3 %1.5 %
Prior accident year development - LPT
0.0 %(0.1)%0.0 %(0.1)%
Loss Ratio60.8 %63.3 %61.4 %62.0 %
Net policy acquisition costs14.0 %13.9 %14.6 %13.9 %
Other operating and general expenses14.9 %15.7 %14.3 %15.8 %
Commission and fee income(0.5)%(0.7)%(0.7)%(0.8)%
Expense ratio28.4 %28.9 %28.2 %28.9 %
Combined ratio89.2 %92.2 %89.6 %90.9 %
Ex-Cat Combined Ratio(2)
88.6 %89.4 %88.3 %89.4 %
(1) Current accident year
(2) Defined as the combined ratio excluding cat loss and LAE(1)
The loss ratios for the third quarter and first nine months of 2025 improved 2.5 points and 0.6 points when compared to the same 2024 periods, respectively. Catastrophe losses in the third quarter decreased when compared to the same 2024 period, which was impacted by higher catastrophe losses, primarily from Hurricanes Helene and Beryl. The first nine months of 2025 were impacted by convective storms in the Midwest and the California wildfires.
The expense ratios for the third quarter and first nine months of 2025 improved 0.5 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, Apollo acquisition-related expenses 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 September 30,Nine months ended September 30,
(unaudited)2025202420252024
Short-term investments & cash and cash equivalents $4,130 $4,537 $12,745 $13,645 
Fixed income
20,806 15,45855,35841,722
Equities
133 5961,3211,974
Alternative & strategic investments
(2,889)(1,056)(9,317)2,525
     Net investment income
$22,180 $19,535 $60,107 $59,866 
Net unrealized (losses) gains on securities still held
$(8,987)$8,378$(6,677)$15,609
Net realized gains
15,8681,79523,5971,146
Net investment gains$6,881$10,173$16,920$16,755

Net investment income for the third quarter and first nine months of 2025 increased $2.6 million and $0.2 million, respectively when compared to the same 2024 periods, driven by increased income from our fixed income portfolio due to a higher yield and larger asset base.
The alternative & strategic investments portfolio continued to be impacted by the decline in the fair value of limited partnership investments. The decreases in income from the short-term investments & cash and cash equivalents was due to an overall decrease in yields when compared to the same 2024 periods. The decrease in income from equities was due to the sale of the equity portfolio in the third quarter of 2025.
Stockholders’ Equity
Stockholders’ equity was $961.4 million at September 30, 2025 which represented an increase of 6.8% when compared to stockholders' equity of $899.9 million at June 30, 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, October 30, 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:
Kevin Reed
kreed@skywardinsurance.com
713-206-7860
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)September 30,
2025		December 31, 2024
Assets 
Investments: 
Fixed maturity securities, available-for-sale, at fair value (net of allowance for credit losses of $7,000 and $0, respectively) (amortized cost of $1,800,068 and $1,320,266, respectively)$1,805,218 $1,292,218 
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $236 and $243, respectively)34,568 39,153 
Equity securities, at fair value1,182 106,254 
Mortgage loans, at fair value9,998 26,490 
Equity method investments85,368 98,594 
Other long-term investments50,078 33,182 
Short-term investments, at fair value247,376 274,929 
Total investments2,233,788 1,870,820 
Cash and cash equivalents160,068 121,603 
Restricted cash38,197 35,922 
Premiums receivable, net583,148 321,641 
Reinsurance recoverables, net923,406 857,876 
Ceded unearned premium276,354 203,901 
Deferred policy acquisition costs144,932 113,183 
Deferred income taxes28,022 30,486 
Goodwill and intangible assets, net88,417 87,348 
Other assets117,714 86,698 
Total assets$4,594,046 $3,729,478 
Liabilities and stockholders’ equity
Liabilities:
Reserves for losses and loss adjustment expenses$2,061,774 $1,782,383 
Unearned premiums885,669 637,185 
Deferred ceding commission50,995 40,434 
Reinsurance and premium payables276,750 177,070 
Funds held for others123,304 102,665 
Accounts payable and accrued liabilities114,570 76,206 
Notes payable100,000 100,000 
Subordinated debt, net of debt issuance costs19,561 19,536 
Total liabilities3,632,623 2,935,479 
Stockholders’ equity
Common stock, $0.01 par value, 500,000,000 shares authorized, 40,487,365 and 40,127,908 shares issued and outstanding, respectively
405 401 
Additional paid-in capital727,561 718,598 
Accumulated other comprehensive income9,539 (22,120)
Retained earnings223,918 97,120 
Total stockholders’ equity961,423 793,999 
Total liabilities and stockholders’ equity$4,594,046 $3,729,478 
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Skyward Specialty Insurance Group, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
($ in thousands)Three months ended September 30,Nine months ended September 30,
(unaudited)2025202420252024
Revenues:
Net earned premiums$351,797 $269,557 $947,705 $763,482 
Commission and fee income1,904 1,818 6,440 5,897 
Net investment income22,180 19,535 60,107 59,866 
Net investment gains6,881 10,173 16,920 16,755 
Other loss(236)(195)(216)(202)
Total revenues382,526 300,888 1,030,956 845,798 
Expenses:
Losses and loss adjustment expenses213,780 170,521 582,351 473,489 
Underwriting, acquisition and insurance expenses101,676 79,817 273,823 226,270 
Interest expense1,919 2,229 5,629 7,405 
Amortization expense455 351 1,164 1,099 
Other expenses4,149 1,117 6,212 3,350 
Total expenses321,979 254,035 869,179 711,613 
Income before income taxes60,547 46,853 161,777 134,185 
Income tax expense14,646 10,185 34,979 29,763 
Net income$45,901 $36,668 $126,798 $104,422 
Comprehensive income:
Net income$45,901 $36,668 $126,798 $104,422 
Other comprehensive income:
Unrealized gains and losses on investments:
Net change in unrealized gains on investments, net of tax6,740 31,396 30,000 24,527 
Reclassification adjustment for gains (losses) on securities no longer held, net of tax5,465 (1,963)1,659 (3,277)
Total other comprehensive income12,205 29,433 31,659 21,250 
Comprehensive income$58,106 $66,101 $158,457 $125,672 
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Skyward Specialty Insurance Group, Inc.
Share and Per Share Data
($ in thousands, except share and per share amounts)Three months ended September 30,Nine months ended September 30,
(unaudited)2025202420252024
Weighted average basic shares40,487,06940,098,34540,377,86440,039,269
Weighted average diluted shares41,868,44941,428,55741,784,97641,302,108
Basic earnings per share$1.13 $0.91 $3.14 $2.61 
Diluted earnings per share$1.10 $0.89 $3.03 $2.53 
Basic adjusted operating earnings per share$1.09 $0.73 $2.94 $2.33 
Diluted adjusted operating earnings per share$1.05 $0.71 $2.84 $2.26 
Annualized ROE (1)
 19.7%19.3 %19.3 %19.1%
Annualized adjusted ROE (2)
 18.9 %15.5 %18.0 %17.1 %
Annualized ROTE (3)
 21.8%21.8 %21.4 %21.7 %
Annualized adjusted ROTE (4)
 20.9 %17.5 %20.0 %19.4 %
September 30December 31
20252024
Shares outstanding40,487,36540,127,908
Fully diluted shares outstanding42,299,01042,059,182
Book value per share$23.75$19.79
Fully diluted book value per share$22.73$18.88
Fully diluted tangible book value per share$20.64$16.80
(1) Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period
(2) Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period
(3) Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period
(4) Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period
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Skyward Specialty Insurance Group, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.    
($ in thousands)Three months ended September 30,Nine months ended September 30,
(unaudited)2025202420252024
Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
Income as reported$60,547 $45,901 $46,853 $36,668 $161,777 $126,798 $134,185 $104,422 
Less (add):
Net investment gains6,881 5,217 10,173 8,037 16,920 13,262 16,755 13,236 
Net impact of loss portfolio transfer— — 318 251 — — 800 632 
Other loss(236)(179)(195)(154)(216)(169)(202)(160)
Other expenses(4,149)(3,145)(1,117)(882)(6,212)(4,869)(3,350)(2,647)
Adjusted operating income$58,051 $44,008 $37,674 $29,416 $151,285 $118,574 $120,182 $93,361 
Underwriting income – We define underwriting income as net income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.
($ in thousands)Three months ended September 30,Nine months ended September 30,
(unaudited)2025202420252024
Income before income taxes$60,547 $46,853 $161,777$134,185
Add:
Interest expense1,919 2,229 5,6297,405 
Amortization expense455 351 1,1641,099
Other expenses4,149 1,117 6,2123,350
Less (Add):  
Net investment income22,180 19,535 60,10759,866
Net investment gains6,881 10,173 16,92016,755
Other loss(236)(195)(216)(202)
Underwriting income$38,245 $21,037 $97,971$69,620
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Skyward Specialty Insurance Group, Inc.
Reconciliation of Non-GAAP Financial Measures
Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.
($ in thousands)September 30,December 31,
(unaudited)202520242024
Stockholders’ equity
$961,423$797,507$793,999 
Less: Goodwill and intangible assets88,41787,60787,348
Tangible stockholders’ equity
$873,006$709,900$706,651
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Skyward Specialty Insurance Group, Inc.
Gross Written Premiums by Underwriting Division (Unaudited)
Three months ended
September 30,		Nine months ended
September 30,
($ in thousands)20252024%
Change		20252024% Change
Accident & Health $63,147 $43,490 45.2 %$186,805$128,47945.4 %
Agriculture and Credit (Re)insurance168,10517,044886.3 %327,52596,957237.8 %
Captives 67,956 53,630 26.7 %213,318184,13715.8 %
Construction & Energy Solutions66,57670,309 (5.3)%215,760222,745(3.1)%
Global Property27,64937,540(26.3)%158,327183,083(13.5)%
Professional Lines 35,598 40,310 (11.7)%114,911120,655(4.8)%
Specialty Programs 82,771 54,434 52.1 %231,401166,25639.2 %
Surety 43,737 34,592 26.4 %122,272106,07615.3 %
Transactional E&S 50,950 48,665 4.7 %156,417146,5066.8 %
Total gross written premiums(1)
$606,489$400,01451.6%$1,726,736$1,354,89427.4%
(1) Excludes exited business
Twelve months ended September 30, 2025
($ in thousands)2025% of Total
Accident & Health $231,39910.9 %
Agriculture and Credit (Re)insurance348,63816.5 %
Captives 271,08312.8 %
Construction & Energy Solutions289,59713.7 %
Global Property177,0398.4 %
Professional Lines 154,0417.3 %
Specialty Programs 283,55213.4 %
Surety 160,1617.6 %
Transactional E&S 199,5819.4 %
Total gross written premiums(1)
$2,115,091100.0 %
(1) Excludes exited business
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