Core Insights - Skyward Specialty Insurance Group has been recognized as one of the 2025-2026 Best Companies to Work For by US News & World Report for the second consecutive year, highlighting its strong workplace culture and employee satisfaction [1][2][3] Company Overview - Skyward Specialty is a rapidly growing specialty insurance company that provides commercial property and casualty products and solutions on both non-admitted and admitted bases [4] - The company operates through nine underwriting divisions, including Accident & Health, Agriculture and Credit (Re)insurance, Captives, Construction & Energy Solutions, Global Property, Professional Lines, Specialty Programs, Surety, and Transactional E&S [4] Employee Satisfaction - The recognition as a "Best" company is based on exceeding national averages in employee satisfaction across key factors related to wellbeing, stability, and opportunity [3] - Skyward Specialty received strong scores in Career Opportunities, Professional Development, and Belongingness and Esteem, indicating a workplace where employees feel safe, valued, and empowered [3] Subsidiaries and Ratings - Skyward Specialty's subsidiary insurance companies include Great Midwest Insurance Company, Houston Specialty Insurance Company, Imperium Insurance Company, and Oklahoma Specialty Insurance Company [5] - These subsidiaries are rated A (Excellent) with a stable outlook by A.M. Best Company, reflecting their financial strength and reliability [5]

Core Viewpoint - Skyward Specialty Insurance (SKWD) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The Zacks rating upgrade for Skyward reflects an improvement in its earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to significant stock price movements based on their buying or selling activities [5]. Recent Performance and Projections - Skyward is projected to earn $3.52 per share for the fiscal year ending December 2025, representing a year-over-year increase of 15% [9]. - Over the past three months, the Zacks Consensus Estimate for Skyward has increased by 3.3%, indicating a positive trend in earnings estimates [9]. Zacks Rating System Overview - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Skyward to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].

Core Insights - Skyward Specialty Insurance Group has appointed Corey LaFlamme as President of Captives & Specialty Programs to enhance growth in a rapidly expanding segment of the specialty market [1][4] - Kirby Hill, previously instrumental in developing the Captives & Specialty Programs divisions, will now serve as Chairman, focusing on business development and strategic matters [2][4] - LaFlamme brings over 20 years of experience from The Hartford, where he was Head of Programs, known for building strong relationships and driving innovation [3][4] Company Overview - Skyward Specialty is a growing specialty insurance company offering commercial property and casualty products through eight underwriting divisions, including Captives, Construction & Energy Solutions, and Professional Lines [5] - The company's subsidiary insurance companies are rated A (Excellent) with a stable outlook by A.M. Best Company, indicating strong financial health [6]

[Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2025 show total assets of $4.03 billion and net income of $42.1 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $4.03 billion, total liabilities rose to $3.18 billion, and stockholders' equity grew to $850.7 million Condensed Consolidated Balance Sheet Highlights (Unaudited) | ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,030,633** | **$3,729,478** | | Total Investments | $1,993,390 | $1,870,820 | | Premiums receivable, net | $417,542 | $321,641 | | **Total Liabilities** | **$3,179,912** | **$2,935,479** | | Reserves for losses and LAE | $1,871,491 | $1,782,383 | | Unearned premiums | $708,347 | $637,185 | | **Total Stockholders' Equity** | **$850,721** | **$793,999** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Net income for Q1 2025 increased to $42.1 million, driven by a 27.1% rise in net earned premiums, with diluted EPS at $1.01 and comprehensive income at $54.1 million Q1 2025 vs Q1 2024 Performance (Unaudited) | ($ in thousands, except per share data) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net earned premiums | $300,366 | $236,342 | | Total revenues | $328,527 | $264,968 | | Income before income taxes | $51,435 | $46,977 | | **Net income** | **$42,058** | **$36,784** | | **Diluted earnings per share** | **$1.01** | **$0.90** | | Comprehensive income | $54,131 | $30,458 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $96.8 million in Q1 2025, while investing activities used $100.8 million, resulting in a net decrease in cash of $4.0 million Cash Flow Summary (Unaudited) | ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $96,760 | $94,265 | | Net cash used in investment activities | ($100,779) | ($69,866) | | Net cash (used in) provided by financing activities | $0 | ($9,466) | | **Net (decrease) increase in cash** | **($4,019)** | **$14,933** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the $2.0 billion investment portfolio, single segment operations, $535.3 million in gross written premiums, and an 18.2% effective tax rate - The company's investment portfolio is primarily composed of fixed maturity securities, with available-for-sale securities valued at **$1.40 billion** and held-to-maturity at **$37.5 million** as of March 31, 2025[19](index=19&type=chunk)[10](index=10&type=chunk) - The company operates as a single reportable segment, offering a broad array of commercial property and casualty products, with the Chief Executive Officer identified as the Chief Operating Decision Maker (CODM)[55](index=55&type=chunk) Gross Written Premiums by Underwriting Division (Q1 2025 vs Q1 2024) | ($ in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Accident & Health | $63,169 | $40,901 | | Agriculture and Credit (Re)insurance | $87,847 | $43,321 | | Captives | $68,401 | $68,408 | | Construction & Energy Solutions | $75,571 | $74,222 | | Global Property | $46,686 | $57,312 | | **Total continuing business** | **$535,319** | **$458,655** | - The effective tax rate for Q1 2025 was **18.2%**, down from **21.7%** in Q1 2024, primarily due to a **3.9%** reduction from tax benefits related to stock-based compensation[61](index=61&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting 16.7% gross written premium growth to $535.3 million, a 90.5% combined ratio, $19.3 million net investment income, and a 12.3% debt-to-capitalization ratio [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2025 net income reached $42.1 million with gross written premiums growing 16.7% to $535.3 million, resulting in a combined ratio of 90.5% and annualized return on equity of 20.5% Key Performance Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross written premiums ($M) | $535.3 | $458.6 | | Net income ($M) | $42.1 | $36.8 | | Loss and LAE ratio | 62.4% | 60.9% | | Expense ratio | 28.1% | 28.7% | | **Combined ratio** | **90.5%** | **89.6%** | | Annualized return on equity | 20.5% | 21.7% | [Underwriting Results](index=31&type=section&id=Underwriting%20Results) Gross written premiums grew 16.7% driven by key divisions, while the loss ratio increased to 62.4% due to higher catastrophe losses, and the expense ratio improved to 28.1% - The increase in gross written premiums was driven by double-digit growth in the agriculture and credit (re)insurance, accident & health, and specialty programs divisions[91](index=91&type=chunk) - The loss ratio increased by **1.5 points** to **62.4%** due to higher catastrophe losses (**$6.5 million** in Q1 2025 vs **$1.0 million** in Q1 2024), while the non-catastrophe loss ratio improved due to a business mix shift[94](index=94&type=chunk) - The expense ratio improved by **0.6 points** to **28.1%** due to earnings leverage, which was partially offset by higher acquisition costs from the shift in business mix[95](index=95&type=chunk) [Investment Results and Portfolio](index=33&type=section&id=Investment%20Results%20and%20Portfolio) Net investment income increased to $19.3 million in Q1 2025, with the total investment portfolio growing to $2.11 billion, primarily in fixed income with an 'A+' rating Net Investment Income Components (Q1 2025 vs Q1 2024) | ($ in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Fixed income | $16,730 | $12,478 | | Short-term investments & cash | $4,041 | $5,088 | | Equities | $657 | $627 | | Alternative and strategic investments | ($2,097) | $104 | | **Net investment income** | **$19,331** | **$18,297** | - The fixed income portfolio's weighted average credit rating was **'A+'** as of March 31, 2025, with an average duration of **4.29 years**[101](index=101&type=chunk)[102](index=102&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Operating activities provided $96.8 million in cash, with a total debt-to-capitalization ratio of 12.3% and a $50 million share repurchase program approved but not yet utilized - The ratio of total debt outstanding to total capitalization was **12.3%** at March 31, 2025, down from **13.1%** at December 31, 2024[119](index=119&type=chunk) - In October 2024, the Board approved a **$50.0 million** share repurchase program, but as of March 31, 2025, no shares had been repurchased under this plan[120](index=120&type=chunk) - The company's net retention on a written premium basis was **64.1%** for Q1 2025, compared to **62.6%** for the same period in 2024[123](index=123&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in market risk from the information provided in the 2024 Form 10-K - There have been no material changes in market risk from the disclosures in the 2024 Form 10-K[127](index=127&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a material weakness in ITGCs for user access, though remediation is underway and financial statements are fairly presented - A material weakness in internal control over financial reporting related to IT general controls (ITGCs) for user access still exists as of March 31, 2025[129](index=129&type=chunk) - Remediation activities are in process, including reviewing and enhancing access controls, strengthening procedures, and providing employee training[130](index=130&type=chunk) - Despite the material weakness, the CEO and CFO concluded that the financial statements included in the Form 10-Q fairly present the company's financial condition, results of operations, and cash flows[129](index=129&type=chunk) [Part II - Other Information](index=39&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to materially affect its financial position - The company is involved in ordinary course legal proceedings but does not expect them to have a material adverse effect on its financial position[135](index=135&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company updated its cybersecurity risk factor due to a recent data incident, which is under investigation but currently deemed immaterial - The company updated its cybersecurity risk factor to disclose a recent data incident where attackers acquired certain company data[138](index=138&type=chunk) - The company is still investigating the incident but currently believes the breach is immaterial in nature[138](index=138&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) During the quarter, CEO Andrew Robinson modified his Rule 10b5-1 trading plan, and CFO Mark Haushill entered into a new Rule 10b5-1 trading plan for the sale of company common stock - CEO Andrew Robinson modified his Rule 10b5-1 trading plan on March 6, 2025, changing the start date of a sales tranche[144](index=144&type=chunk) - CFO Mark Haushill entered into a new Rule 10b5-1 trading plan on March 12, 2025, for the potential sale of up to **75,000 shares** between June 2025 and March 2026[145](index=145&type=chunk)[146](index=146&type=chunk)

Company Overview - Skyward Specialty Insurance (SKWD) currently holds a Momentum Style Score of B, indicating potential for strong performance in the momentum investing strategy [3][12] - The company has a Zacks Rank of 2 (Buy), which is associated with a strong track record of outperformance in the market [4][12] Price Performance - SKWD shares have increased by 12.62% over the past week, outperforming the Zacks Insurance - Property and Casualty industry, which rose by 3.18% during the same period [6] - Over the last month, SKWD's price change is 23.72%, significantly higher than the industry's 10.76% [6] - In the past quarter, SKWD shares have risen by 21.59%, and over the last year, they have increased by 57.87%, while the S&P 500 has moved -6.46% and 11.69%, respectively [7] Trading Volume - The average 20-day trading volume for SKWD is 406,812 shares, which serves as a useful indicator for assessing price movements [8] Earnings Estimates - In the last two months, 4 earnings estimates for SKWD have been revised upwards, while 1 estimate was revised downwards, leading to an increase in the consensus estimate from $3.45 to $3.50 [10] - For the next fiscal year, there have also been 4 upward revisions and 1 downward revision in earnings estimates [10]

Skyward Specialty Insurance Group (SKWD) Q1 2025 Earnings Call May 02, 2025 09:30 AM ET Company Participants Natalie Schoolcraft - VP - IRAndrew Robinson - CEO & Chairman of BoardMark Haushill - Executive VP & CFOMatt Carletti - Managing DirectorMeyer Shields - Managing DirectorC. Gregory Peters - Managing Director - InsuranceAndrew Kligerman - Managing Director Conference Call Participants Alex Scott - Equity Research AnalystMark Hughes - AnalystMike Phillips - Managing Director and Insurance Analyst Opera ...

Skyward Specialty Insurance Group (SKWD) Q1 2025 Earnings Call May 02, 2025 09:30 AM ET Speaker0 Ladies and gentlemen, thank you for standing by, and welcome to Skyward Specialty First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Natalie Schoolcraft, Vice Pr ...

Skyward Specialty Insurance (SKWD) reported $328.53 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 24%. EPS of $0.90 for the same period compares to $0.75 a year ago.The reported revenue represents a surprise of +5.51% over the Zacks Consensus Estimate of $311.37 million. With the consensus EPS estimate being $0.78, the EPS surprise was +15.38%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectat ...

Core Insights - Skyward Specialty Insurance (SKWD) reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.75 per share a year ago [1][2] - The company achieved revenues of $328.53 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.51%, compared to $264.97 million in the same quarter last year [3] - Skyward has consistently outperformed consensus EPS estimates over the last four quarters, with a 15.38% earnings surprise this quarter [2][3] Earnings Performance - The earnings surprise of 15.38% this quarter follows a previous surprise of 3.90% when the company reported earnings of $0.80 per share against an expectation of $0.77 [2] - The company has surpassed consensus revenue estimates three times in the last four quarters [3] Stock Performance - Skyward shares have increased approximately 5.1% since the beginning of the year, contrasting with a decline of -5.3% in the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $325.61 million, and for the current fiscal year, it is $3.42 on revenues of $1.32 billion [8] - The outlook for the industry, particularly the Insurance - Property and Casualty sector, is favorable, ranking in the top 15% of over 250 Zacks industries [9] Industry Context - American Financial Group (AFG), another company in the same industry, is expected to report quarterly earnings of $2.17 per share, reflecting a year-over-year decline of -21.4% [10] - AFG's anticipated revenues are projected to be $1.94 billion, which is a 2.9% increase from the previous year [11]

Exhibit 99.1 Skyward Specialty Insurance Group Reports First Quarter 2025 Results Houston, TX – May 1, 2025 – Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) ("Skyward Specialty" or the "Company") today reported first quarter 2025 net income of $42.1 million, or $1.01 per diluted share, compared to $36.8 million, or $0.90 per diluted share, for the same 2024 period. Adjusted operating income for the first quarter of 2025 was $37.3 million, or $0.90 per diluted share, compared to $31.0 million, or $0. ...