Company Overview - The company was founded in September 2020, backed by GPC Partners Investments and AmFam, to address a growing demand for specialized insurance solutions [122]. - The company offers commercial specialty property and casualty insurance products, focusing on casualty, professional liability, and healthcare liability risks [123]. - The company has a strategic partnership with AmFam, allowing for efficient capital deployment and rapid growth in favorable market conditions [124]. - The company aims to create superior returns for stockholders by generating consistent underwriting profits across all market cycles [122]. Premiums and Revenue - Gross written premiums are influenced by new business submissions, binding of new business, renewals, and average premium rates [126]. - Net written premiums are calculated as gross written premiums less ceded written premiums, which are impacted by reinsurance contracts [128]. - Gross written premiums increased by $34.5 million, or 17.5%, to $231.5 million for the three months ended September 30, 2025, compared to $196.976 million for the same period in 2024 [152]. - Net written premiums rose by $20.7 million, or 16.1%, to $149.0 million for the three months ended September 30, 2025, from $128.3 million in 2024 [153]. - Net earned premiums increased by $23.2 million, or 22.1%, to $128.4 million for the three months ended September 30, 2025, compared to $105.2 million in 2024 [154]. - Total revenues grew by $27.2 million, or 23.3%, to $143.9 million for the three months ended September 30, 2025, from $116.8 million in 2024 [152]. Profitability Metrics - The loss ratio, expressed as a percentage, is the ratio of net losses and loss adjustment expenses to net earned premiums [143]. - The combined ratio, expressed as a percentage, is the sum of the loss ratio and expense ratio, indicating overall underwriting profitability [144]. - Underwriting income is defined as income before income taxes excluding the impact of net investment income and certain expenses [145]. - Adjusted net income excludes the impact of net realized investment losses and non-operating expenses, providing a clearer view of operational performance [146]. - The loss ratio was 65.9% for the three months ended September 30, 2025, an increase of 1.4 points from 64.5% in 2024 [156]. - The expense ratio decreased to 29.5% for the three months ended September 30, 2025, from 29.9% in 2024, driven by improved operating expense management [159]. - The combined ratio was 95.4% for the three months ended September 30, 2025, compared to 94.4% in 2024, reflecting a 1.0 point increase [162]. - Return on equity improved to 14.5% for the three months ended September 30, 2025, up from 13.7% in 2024, primarily due to the increase in net income [163]. Investment Performance - Net investment income rose by $3.5 million to $15.0 million for the three months ended September 30, 2025, from $11.5 million in 2024, attributed to higher average investment balances and yields [164]. - Net investment income rose by $13.3 million to $41.3 million for the nine months ended September 30, 2025, from $27.9 million in 2024 [182]. - The investment portfolio as of September 30, 2025, was primarily comprised of fixed maturity securities totaling $1,149.6 million, with a weighted average effective duration of 2.9 years and an average rating of "AA" [224]. - The fixed income investment portfolio had a book yield of 4.8% and a market yield of 4.6% as of September 30, 2025, compared to 4.6% and 4.9% respectively as of December 31, 2024 [224]. - The fixed maturity portfolio had an average rating of "AA" as of September 30, 2025, with approximately 92.0% rated "A" or better [254]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $271,438,000, an increase of 16.5% from $232,865,000 in 2024 [205]. - The company had $1.0 million in cash and investments as of September 30, 2025, indicating sufficient liquidity for the next 12 months [199]. - The company entered into a $75 million revolving credit facility on April 22, 2024, with no borrowings outstanding as of September 30, 2025 [201][202]. - The increase in cash provided by operating activities was primarily due to business growth and the timing of claim payments [205]. Reserves and Claims - The gross reserves for unpaid losses and loss adjustment expenses as of September 30, 2025, totaled $1,035,171 thousand, compared to $756,859 thousand as of December 31, 2024, indicating a 36.8% increase [234]. - The case reserves as of September 30, 2025, were $124,219 thousand, accounting for 12.0% of total gross reserves, while IBNR reserves were $910,952 thousand, making up 88.0% [234]. - The reserve for losses and loss adjustment expenses is estimated using individual case valuations and various actuarial procedures, reflecting significant judgment and assumptions about future trends [230]. - The company categorizes reserves into case reserves for reported claims and IBNR for incurred but not yet reported claims, with IBNR representing 88.0% of total gross reserves as of September 30, 2025 [231]. Tax and Regulatory Matters - Income tax expense was $10.5 million for the nine months ended September 30, 2025, compared to $7.6 million in 2024, with an effective tax rate of 21.3% [183]. - The maximum dividend that the insurance subsidiary could pay without regulatory approval was $16.1 million as of December 31, 2024 [198]. - The company did not declare any dividends during the nine months ended September 30, 2025, or the year ended December 31, 2024 [221]. Risk Management - The company manages interest rate risk by investing in securities with varied maturity dates to mitigate potential losses [250]. - The company has exposure to credit risk primarily through its holdings in fixed maturity securities, focusing on high credit quality issuers [254]. - The company performs periodic credit reviews of reinsurers to manage credit risk effectively [255]. - The company utilizes a fair value hierarchy for asset valuation, with Level 1 inputs being unadjusted quoted prices in active markets, Level 2 inputs being observable market data, and Level 3 inputs being unobservable inputs [244].

For the quarter ended September 2025, Bowhead Specialty Holdings Inc. (BOW) reported revenue of $143.93 million, up 23.3% over the same period last year. EPS came in at $0.47, compared to $0.38 in the year-ago quarter.The reported revenue represents a surprise of +2.89% over the Zacks Consensus Estimate of $139.9 million. With the consensus EPS estimate being $0.40, the EPS surprise was +17.5%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they co ...

Bowhead Specialty Holdings (NYSE:BOW) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Speaker0Hello and welcome to Bowhead Specialty's Q3 2025 earnings call. After the prepared remarks, we will hold a question-and-answer session. For those in the Q&A room, please use the raise hand function at the bottom of your Zoom screen to join the question queue. You can do this at any time, and your questions will be addressed during the Q&A session. Also, as a reminder, this conference is being recorded. If you h ...

分组1 - Bowhead Specialty Holdings Inc. reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and up from $0.38 per share a year ago, representing an earnings surprise of +17.50% [1] - The company achieved revenues of $143.93 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.89%, and an increase from $116.76 million year-over-year [2] - Bowhead Specialty Holdings has consistently surpassed consensus EPS estimates over the last four quarters [2] 分组2 - The stock has underperformed the market, losing about 31.5% since the beginning of the year, while the S&P 500 gained 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $144.34 million, and for the current fiscal year, it is $1.58 on revenues of $539.61 million [7] - The Zacks Industry Rank for Insurance - Property and Casualty is in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

This presentation has been prepared by Bowhead Specialty Holdings Inc. ("we," "us," "our," "Bowhead" or the "Company") on a confidential basis for the exclusive use of the party to whom Bowhead delivers this presentation. Investor Presentation November 2025 Forward Looking Statements This presentation has been prepared by Bowhead for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by ...

Bowhead Specialty Holdings Inc. Reports Third Quarter 2025 Results NEW YORK, New York. (BusinessWire) – Bowhead Specialty Holdings Inc. (NYSE: BOW), a specialty lines insurance group focused on providing casualty, professional liability and healthcare liability insurance products, today announced financial results for the third quarter ended September 30, 2025. (1) Third Quarter 2025 Highlights Bowhead Chief Executive Officer, Stephen Sills, commented, "Bowhead delivered another excellent quarter highlighte ...

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Core Viewpoint - Bowhead Specialty Holdings Inc. is set to release its financial results for Q3 2025 on November 4, 2025, before market opening [1] Financial Results Announcement - The financial results will be available at approximately 7:00 a.m. Eastern Time [1] - Earnings documents can be accessed on the Company's Investor Relations website [1] - A conference call to discuss the results will take place on the same day, November 4, 2025 [1]

Core Viewpoint - Bowhead Specialty Holdings Inc. (BOW) has shown a significant stock price increase of 6.2% recently, despite a prior loss of 25.8% over the past month, indicating potential recovery or investor interest [1][4]. Group 1: Company Performance - Bowhead Specialty is expected to benefit from an increasing renewal book and growth across all four divisions, which is likely to enhance its overall performance [2]. - The company is projected to report quarterly earnings of $0.40 per share, reflecting a year-over-year increase of 5.3%, with revenues anticipated to reach $143.04 million, marking a 22.5% rise from the previous year [3]. - A decrease in the operating expenses ratio and an increase in other insurance-related income have contributed to a lower expense ratio, indicating improved financial efficiency [2]. Group 2: Earnings Estimates and Market Sentiment - The consensus EPS estimate for Bowhead has been revised down by 1.7% over the last 30 days, which may negatively impact stock price appreciation [4]. - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook compared to other stocks in the Zacks Insurance - Property and Casualty industry [5]. - ProAssurance, a peer in the same industry, has a Zacks Rank of 2 (Buy) and has shown a slight increase of 0.7% in its stock price recently, indicating a more favorable market sentiment compared to Bowhead [5][6].

Core Viewpoint - Piper Sandler has lowered the price target for Bowhead Specialty (BOW) to $33 from $38 while maintaining an Overweight rating on the shares [1] Group 1: Price Target and Rating - The price target for Bowhead Specialty has been reduced to $33 from $38 [1] - Piper Sandler continues to hold an Overweight rating on Bowhead Specialty shares [1] Group 2: Growth Estimates - The firm is lowering its GWP (Gross Written Premium) growth estimates for the latter half of 2025 [1] - Growth was more heavily weighted in the first half of the year, and softening market conditions are expected to hinder achieving similar growth rates [1] Group 3: Loss Ratios - Piper Sandler anticipates that loss ratios will resemble those observed in the first half of the year [1]