Skyward Specialty Insurance Group Reports Fourth Quarter 2025 Results
Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Group” or the “Company”), reported fourth quarter 2025 net income of $43.2 million, or $1.03 per diluted share, compared to $14.4 million, or $0.35 per diluted share, for the same 2024 period. Net income for the year ended 2025 was $170.0 million, or $4.07 per diluted share, compared to $118.8 million, or $2.87 per diluted share, for the same 2024 period.
Adjusted operating income(1) for the fourth quarter of 2025 was $48.9 million, or $1.17 per diluted share, compared to $33.2 million, or $0.80 per diluted share, for the same 2024 period. Adjusted operating income(1) for the year ended 2025 was $167.4 million, or $4.00 per diluted share, compared to $126.6 million, or $3.06 per diluted share, for the same 2024 period.
Highlights for the fourth quarter included:
Gross written premiums of $439.5 million, an increase of 13.2% compared to 2024;
Combined ratio of 88.5%;
Ex-Cat combined ratio of 87.7%;
Return on equity of 18.9% for the year ended December 31, 2025; and,
Book value per share of $24.92, an increase of 26% compared to December 31, 2024.
(1) See “Reconciliation of Non-GAAP Financial Measures”
Skyward Group Chairman and CEO Andrew Robinson commented, “The fourth quarter was another excellent quarter and capped off a truly transformational year for the Company. Similar to the previous three quarters, we delivered Company bests in adjusted operating income(1), underwriting income(1) and the combined ratio of 88.5%. Our gross written premiums growth in the quarter of 13% culminated a year of 24% growth, and our return on equity and return on tangible equity of 18.9% and 20.9%(1) respectively for the full year are simply outstanding.”
“Our focus and disciplined execution of our ‘Rule Our Niche’ strategy, underscored by the strength of our intentionally built, diversified portfolio, where nearly half of our business is in non-cycle exposed lines, positions us particularly well given the evolving property and casualty market backdrop. As we look forward, together with additional capabilities and the outstanding Apollo team, we are extremely well-positioned as a Company to continue to build and maintain winning positions across the specialty insurance market and generate top quartile returns and long-term, sustainable shareholder value.”
Results of Operations
Underwriting Results
Premiums
($ in thousands)
Three months ended December 31,
Twelve months ended December 31,
unaudited
2025
2024
%Change
2025
2024
%Change
Gross written premiums
$
439,487
$
388,355
13.2
%
$
2,166,236
$
1,743,232
24.3
%
Ceded written premiums
$
(156,906
)
$
(117,328
)
33.7
%
$
(760,004
)
$
(619,654
)
22.6
%
Net retention
64.3
%
69.8
%
NM
(1)
64.9
%
64.5
%
NM
(1)
Net written premiums
$
282,581
$
271,027
4.3
%
$
1,406,232
$
1,123,578
25.2
%
Net earned premiums
$
356,800
$
293,240
21.7
%
$
1,304,505
$
1,056,722
23.4
%
(1) Not meaningful
The increase in gross written premiums for the fourth quarter, compared to the same period in 2024, was primarily driven by growth in accident & health, specialty programs and surety, while the year‑over‑year increase for 2025 was driven by these divisions, as well as the agriculture and credit (re)insurance division.
Combined Ratio
Three months ended December 31,
Twelve months ended December 31,
(unaudited)
2025
2024
2025
2024
Non-cat loss and LAE
60.9
%
60.5
%
60.3
%
60.6
%
Cat loss and LAE(1)
0.8
%
2.2
%
1.2
%
1.7
%
Prior accident year development(2)
(2.1
)%
4.2
%
(0.6
)%
1.1
%
Loss Ratio
59.6
%
66.9
%
60.9
%
63.4
%
Net policy acquisition costs
16.0
%
15.3
%
15.0
%
14.2
%
Other operating and general expenses
13.0
%
13.9
%
13.9
%
15.3
%
Commission and fee income
(0.1
)%
(0.3
)%
(0.5
)%
(0.6
)%
Expense ratio
28.9
%
28.9
%
28.4
%
28.9
%
Combined ratio
88.5
%
95.8
%
89.3
%
92.3
%
Ex-Cat Combined Ratio(3)
87.7
%
93.6
%
88.1
%
90.6
%
(1) Current accident year
(2) Prior accident year development for the fourth quarter and year-ended 2024 was due to the net impact of the LPT..
(3) Defined as the combined ratio excluding cat loss and LAE(1)
The loss ratios for the fourth quarter and year ended 2025 improved 7.3 points and 2.5 points, respectively, when compared to the same 2024 periods. The quarter and year ended 2025 benefited from (i) favorable prior accident year development compared to adverse development in the same 2024 periods, and (ii) less catastrophe losses when compared to the same 2024 periods.
The expense ratios for the fourth quarter and year ended 2025 were flat and improved 0.5 points, respectively, when compared to the same 2024 periods due to earnings leverage offset by higher acquisition costs due to the business mix shift.
Investment Results
Net Investment Income
$ in thousands
Three months ended December 31,
Twelve months ended December 31,
(unaudited)
2025
2024
2025
2024
Short-term investments & cash and cash equivalents
$
3,132
$
3,998
$
15,877
$
17,643
Fixed income
22,530
15,909
77,888
57,631
Equities
59
771
1,380
2,745
Alternative & strategic investments
(2,209
)
56
(11,526
)
2,581
Net investment income
$
23,512
$
20,734
$
83,619
$
80,600
Net unrealized (losses) gains on securities still held
$
5,122
$
(7,688
)
$
(1,555
)
$
7,921
Net realized gains
107
(2,725
)
23,704
(1,579
)
Net investment gains (losses)
$
5,229
$
(10,413
)
$
22,149
$
6,342
Net investment income for the fourth quarter and year ended 2025 increased $2.8 million and $3.0 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 $1,009.6 million at December 31, 2025 which represented an increase of 5.0% when compared to stockholders’ equity of $961.4 million at September 30, 2025. The increase in stockholders’ equity was primarily due to net income and an increase in the market value of our investment portfolio.
Skyward Specialty Insurance Group Reports First Quarter 2023 Results
Skyward Specialty Insurance Group, Inc. reported first quarter 2023 net income of $15.6 million, or $0.42 per diluted share, compared to $16.3 million, or $0.50 per diluted share, for the same 2022 period. Adjusted operating income(1) for the first quarter of 2023 was $15.5 million, or $0.42 per diluted share, compared to $19.8 million, or $0.61 per diluted share, for the same 2022 period.
Highlights for the quarter included:
Gross written premiums increased 27.5%.
Underwriting income(1) of $17.8 million compared to $11.4 million for the first quarter of 2022.
Combined ratio of 90.2% compared to 91.9% for the first quarter of 2022.
Current accident year non-cat loss and LAE ratio of 61.1% compared to 63.5% for the first quarter of 2022.
(1) See “Reconciliation of Non-GAAP Financial Measures”
Skyward Specialty CEO Andrew Robinson commented, “Our strong momentum from year-end 2022 continued in the first quarter of 2023 with gross written premium growth of 27.5% and a 90.2% combined ratio. Despite a high catastrophe quarter for the industry, we were minimally impacted with only 1.8 points of catastrophe losses, a testament to our disciplined underwriting and diversified business mix.”
“We continue to execute our ‘Rule our Niche’ strategy, launching our global agriculture and inland marine underwriting units in the first quarter. We also continued to invest in underwriting teams and talent throughout the organization. Our first quarter results demonstrate that we are well positioned to continue to deliver value to our shareholders and business partners throughout 2023.”
Results of Operations
Underwriting Results
Premiums
($ in thousands)
Three months ended March 31
unaudited
2023
2022
%Change
Gross written premiums
$
360,498
$
282,642
27.5%
Ceded written premiums
$
(158,357
)
$
(147,241
)
7.5%
Net retention
56.1%
47.9%
NM(1)
Net written premiums
$
202,141
$
135,401
49.3%
Net earned premiums
$
182,831
$
141,726
29.0%
(1)Not meaningful
The quarter to date 2023 increase in gross written premiums, when compared to the same 2022 period, was primarily driven by double-digit premium growth in our transactional E&S, global property and agriculture, professional lines, surety and captives underwriting divisions.
Combined Ratio
Three months endedMarch 31
(unaudited)
2023
2022
Non-cat loss and LAE(1)
61.1
%
63.5
%
Cat loss and LAE(1)
1.8
%
0.0
%
Prior accident year development – LPT(2)
(0.1
)%
0.0
%
Loss Ratio
62.8
%
63.5
%
Net policy acquisition costs
11.6
%
9.5
%
Other operating and general expenses
16.6
%
19.1
%
Commission and fee income
(0.8
)%
(0.2
)%
Expense ratio
27.4
%
28.4
%
Combined ratio
90.2
%
91.9
%
Adjusted Underwriting Ratios
Adjusted loss ratio(2)
62.9
%
63.5
%
Expense ratio
27.4
%
28.4
%
Adjusted combined ratio(2)
90.3
%
91.9
%
(1)Current accident year
(2)See “Reconciliation of Non-GAAP Financial Measures”
The loss ratio for the first quarter of 2023 improved 0.7 points when compared to the same 2022 period. Catastrophe losses from wind and hail events, including tornadoes, added 1.8 points to the current quarter loss ratio compared to the first quarter of 2022, which was not impacted by catastrophe losses. The non-cat loss and LAE ratio improved 2.4 points when compared to the same 2022 period primarily driven by the continued run-off of exited business and the shift in the mix of business.
The expense ratio for the quarter improved 1.0 point when compared to the same 2022 period. The improvement was driven by (i) improvement in the other operating and general expenses ratio due to the increase in earned premiums and (ii) an increase in commission and fee income when compared to the same 2022 period. Partially offsetting the improvement was an increase in the net policy acquisition expense ratio due to the shift in our mix of business.
The expense ratio for the first quarter 2023 excludes the impact of IPO related stock compensation which is reported in other expenses in our condensed consolidated statements of operations and comprehensive (loss) income.
Investment Results
Net Investment Income (Loss)
$ in thousands
Three months endedMarch 31
(unaudited)
2023
2022
Short-term and money market investments
$
1,780
$
3
Core fixed income
6,339
2,987
Opportunistic fixed income
(3,141)
11,447
Equities
(333)
710
Net investment income(1)
$
4,645
$
15,147
Net unrealized gains (losses) on securities still held
$
3,767
$
(5,369)
Net realized (losses) gains
$
(2,806)
$
931
(1)excludes income from operating cash of $1 and $2, respectively.
Net investment income for the first quarter 2023 decreased $10.5 million when compared to the same 2022 period. Increased income from core fixed income and short-term and money market investments was offset by losses in opportunistic fixed income. The increase in income from our core fixed income portfolio was due to (i) a larger asset base as we continued to increase our allocation to this part of our investment portfolio and (ii) higher net investment yields of 3.7% compared to 2.7% for the same 2022 period. The increase in income from short-term and money market investments was due to (i) a larger asset base driven by the addition of the net IPO proceeds and (ii) higher investment yields of 3.5% compared to 0.0% for the same 2022 period. The opportunistic fixed income portfolio was impacted by a decline in the fair value of certain limited partnership investments.
Stockholders’ Equity
Stockholders’ equity was $507.1 million at March 31, 2023 which represents an increase of 20.3% when compared to stockholders’ equity of $421.7 million at December 31, 2022. The increase in stockholders’ equity was primarily due to net IPO proceeds of $62.4 million and net income.
Conference Call
At 10 a.m. central time May 10, 2023, 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 have chosen to exclude the net impact of the Loss Portfolio Transfer (“LPT”), all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening in certain non-GAAP metrics, where noted, as the business subject to the LPT is not representative of our continuing business strategy. The business subject to the LPT is primarily related to policy years 2017 and prior, was generated and managed under prior leadership, and has either been exited or substantially repositioned during the reevaluation of our portfolio. 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.”