[Financial Performance Summary](index=1&type=section&id=Skyward%20Specialty%20Insurance%20Group%20Reports%20Second%20Quarter%202025%20Results) Skyward Specialty reports strong Q2 and H1 2025 results, driven by significant income growth and improved key performance indicators [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Skyward Specialty reported strong financial results for Q2 and H1 2025, with significant growth in net income and adjusted operating income | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $38.8M | $31.0M | $80.9M | $67.8M | | **Diluted EPS** | $0.93 | $0.75 | $1.94 | $1.65 | | **Adjusted Operating Income** | $37.1M | $33.0M | $74.5M | $63.9M | | **Adjusted Diluted EPS** | $0.89 | $0.80 | $1.78 | $1.56 | - Gross written premiums increased by **17.9% to $584.9 million** in Q2 2025[3](index=3&type=chunk) - The combined ratio for Q2 2025 was **89.4%**, with an ex-catastrophe combined ratio of **88.0%**[3](index=3&type=chunk) - Annualized return on equity for the first six months of 2025 was **19.1%**[3](index=3&type=chunk) - Book value per share grew by **12% to $22.23** since December 31, 2024[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Andrew Robinson attributes strong results to specialized underwriting, claims capabilities, and the "Rule Our Niche" strategy for profitable growth - The company's success is driven by its specialized underwriting, claims capabilities, and the execution of its 'Rule Our Niche' strategy, which focuses on portfolio diversity to grow underwriting profitability while managing volatility[2](index=2&type=chunk) [Results of Operations](index=2&type=section&id=Results%20of%20Operations) The company demonstrates strong operational performance with increased premiums, improved underwriting profitability, and mixed investment results [Underwriting Results](index=2&type=section&id=Underwriting%20Results) Strong underwriting performance is evident from increased gross written premiums and an improved combined ratio, driven by divisional growth and earnings leverage [Premiums Analysis](index=2&type=section&id=Premiums) | Premium Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | $584.9M | $496.2M | 17.9% | | Net Written Premiums | $339.2M | $297.1M | 14.2% | | Net Earned Premiums | $295.5M | $257.6M | 14.7% | - Premium growth was primarily driven by double-digit increases in the agriculture and credit (re)insurance, specialty programs, accident & health, and captives divisions, partially offset by decreases in the global property and construction & energy solutions divisions[4](index=4&type=chunk) [Combined Ratio Analysis](index=2&type=section&id=Combined%20Ratio) | Ratio Component | Q2 2025 | Q2 2024 | Change (points) | | :--- | :--- | :--- | :--- | | Loss Ratio | 61.3% | 61.7% | -0.4 | | Expense Ratio | 28.1% | 29.0% | -0.9 | | **Combined Ratio** | **89.4%** | **90.7%** | **-1.3** | | **Ex-Cat Combined Ratio** | **88.0%** | **89.5%** | **-1.5** | - The improvement in the expense ratio was due to earnings leverage, which was partially offset by higher acquisition costs resulting from a shift in business mix[6](index=6&type=chunk) - Catastrophe losses, driven by convective storms, increased slightly in Q2 2025 compared to Q2 2024, contributing **1.4%** to the combined ratio[5](index=5&type=chunk) [Investment Results](index=3&type=section&id=Investment%20Results) Net investment income decreased due to losses in alternative investments, partially offset by higher fixed income earnings | ($ in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Investment Income** | **$18,589** | **$22,034** | **$37,927** | **$40,331** | | Net Investment Gains (Losses) | $3,205 | $(1,721) | $10,039 | $6,582 | - The decrease in net investment income was driven by losses in alternative & strategic investments, specifically from a decline in the fair value of limited partnership investments[8](index=8&type=chunk) [Stockholders' Equity](index=3&type=section&id=Stockholders%27%20Equity) Stockholders' equity increased significantly in Q2 2025, primarily due to higher investment portfolio market value and net income - Stockholders' equity rose to **$899.9 million** at June 30, 2025, up from **$850.7 million** at March 31, 2025, mainly due to higher investment portfolio market value and net income[9](index=9&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements reflect robust growth in assets, equity, revenues, and net income for Q2 and H1 2025 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows significant growth in total assets and stockholders' equity as of June 30, 2025, compared to year-end 2024 | ($ in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments | $2,080,507 | $1,870,820 | | Total Assets | $4,336,392 | $3,729,478 | | Total Liabilities | $3,436,477 | $2,935,479 | | Total Stockholders' Equity | $899,915 | $793,999 | [Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) The statements of operations show strong year-over-year growth in net earned premiums, total revenues, and net income for Q2 and H1 2025 | ($ in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Earned Premiums | $295,542 | $257,583 | $595,908 | $493,925 | | Total Revenues | $319,903 | $279,942 | $648,430 | $544,910 | | Income Before Income Taxes | $49,795 | $40,355 | $101,230 | $87,332 | | **Net Income** | **$38,839** | **$30,970** | **$80,897** | **$67,754** | [Share and Per Share Data](index=8&type=section&id=Share%20and%20Per%20Share%20Data) The company reported increased earnings per share and book value per share, maintaining strong annualized returns on equity and tangible equity | Per Share Data | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Diluted EPS | $0.93 | $0.75 | $1.94 | $1.65 | | Diluted Adjusted Operating EPS | $0.89 | $0.80 | $1.78 | $1.56 | | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Book Value Per Share | $22.23 | $19.79 | | Annualized ROE (H1) | 19.1% | 19.6% (for H1 2024) | | Annualized ROTE (H1) | 21.3% | 22.4% (for H1 2024) | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section provides detailed breakdowns of gross written premiums by division and reconciliations of non-GAAP financial measures [Gross Written Premiums by Underwriting Division](index=11&type=section&id=Gross%20Written%20Premiums%20by%20Underwriting%20Division%20%28Unaudited%29) Gross written premiums growth varied significantly across divisions, with strong increases in agriculture and specialty programs, and declines in others | Underwriting Division | GWP Q2 2025 ($M) | % Change YoY | | :--- | :--- | :--- | | Agriculture and Credit (Re)insurance | $71.6 | 95.6% | | Specialty Programs | $86.0 | 44.1% | | Accident & Health | $60.5 | 37.2% | | Captives | $77.0 | 23.9% | | Surety | $40.7 | 8.2% | | Transactional E&S | $53.5 | 3.6% | | Professional Lines | $38.1 | 0.1% | | Global Property | $84.0 | (4.8)% | | Construction & Energy Solutions | $73.6 | (5.9)% | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP measures to non-GAAP measures like Adjusted Operating Income and Underwriting Income, used for performance evaluation - Adjusted operating income, a non-GAAP measure, is defined as net income excluding items not indicative of underlying business trends, such as net investment gains/losses and other non-recurring expenses[23](index=23&type=chunk) | ($ in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (GAAP) | $38,839 | $30,970 | | Adjustments (net of tax) | $(1,723) | $2,002 | | **Adjusted Operating Income** | **$37,116** | **$32,972** | | ($ in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income Before Income Taxes (GAAP) | $49,795 | $40,355 | | Adjustments | $(18,551) | $(16,452) | | **Underwriting Income** | **$31,244** | **$23,903** | [Company Overview and Forward-Looking Statements](index=4&type=section&id=About%20Skyward%20Specialty%20Insurance%20Group%2C%20Inc.) Skyward Specialty is a commercial P&C insurer with an A (Excellent) rating, operating through nine divisions, with standard forward-looking statement disclaimers - 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[14](index=14&type=chunk) - The company's subsidiary insurance companies are rated **A (Excellent)** with a stable outlook by A.M. Best Company[15](index=15&type=chunk) - The report includes forward-looking statements that are subject to various risks and uncertainties, as detailed in the company's Form 10-K[16](index=16&type=chunk)

Core Insights - Skyward Specialty Insurance Group reported a strong financial performance for Q2 2025, with net income of $38.8 million, up from $31.0 million in Q2 2024, reflecting a 25.8% increase in earnings per diluted share from $0.75 to $0.93 [1][2] - The company achieved an 18% growth in gross written premiums for Q2 2025, totaling $584.9 million, compared to $496.2 million in Q2 2024, driven by strong performance in agriculture, credit (re)insurance, and specialty programs [3][5] - The combined ratio improved to 89.4% in Q2 2025 from 90.7% in Q2 2024, indicating enhanced underwriting profitability [4][5] Financial Performance - Net income for the first half of 2025 reached $80.9 million, compared to $67.8 million in the same period of 2024, marking a 19.5% increase [1][2] - Adjusted operating income for Q2 2025 was $37.1 million, up from $33.0 million in Q2 2024, representing a 12.4% increase [2] - The annualized return on equity for the first half of 2025 was 19.1%, slightly down from 19.6% in the same period of 2024 [5][21] Underwriting Results - Gross written premiums for the first half of 2025 totaled $1.12 billion, a 17.3% increase from $954.9 million in the first half of 2024 [3][5] - The net retention rate decreased slightly to 58.0% in Q2 2025 from 59.9% in Q2 2024 [3] - The loss ratio for Q2 2025 improved to 61.3% from 61.7% in Q2 2024, while the non-catastrophe loss and loss adjustment expense (LAE) ratio improved to 59.9% from 60.6% [4][6][7] Investment Results - Net investment income for Q2 2025 was $18.6 million, down from $22.0 million in Q2 2024, primarily due to losses in the alternative and strategic investments portfolio [8] - The company reported net unrealized losses on securities still held of $3.2 million for Q2 2025, compared to losses of $1.8 million in Q2 2024 [8] Stockholders' Equity - Stockholders' equity increased to $899.9 million as of June 30, 2025, up 5.8% from $850.7 million at March 31, 2025 [9] - Book value per share rose to $22.23, a 12% increase compared to $19.79 at the end of 2024 [5][21] Premiums by Division - The agriculture and credit (re)insurance division saw a significant increase in gross written premiums, with a 95.6% growth in Q2 2025 compared to Q2 2024 [27] - The accident and health division also performed well, with a 37.2% increase in gross written premiums for Q2 2025 [27] - Conversely, the global property and construction & energy solutions divisions experienced declines in gross written premiums [3][27]

Core Insights - Analysts project that Skyward Specialty Insurance (SKWD) will report quarterly earnings of $0.86 per share, reflecting a year-over-year increase of 7.5% [1] - Revenue estimates for the quarter are set at $324.36 million, indicating a 15.9% increase from the same period last year [1][5] - The consensus EPS estimate has been adjusted upward by 0.2% over the past 30 days, showing a reassessment by covering analysts [2] Revenue and Key Metrics - 'Revenues- Net investment income' is expected to be $22.62 million, a year-over-year change of +2.2% [5] - 'Revenues- Net earned premiums' are projected to reach $299.67 million, suggesting a change of +16.3% year over year [5] - The estimated 'Expense ratio' is 28.9%, slightly improved from 29.0% a year ago [5] Loss and Combined Ratios - Analysts predict a 'Loss ratio' of 62.4%, up from 61.7% reported in the same quarter last year [6] - The 'Combined ratio' is expected to be 91.1%, compared to 90.7% in the same quarter of the previous year [6] Stock Performance and Outlook - Skyward shares have decreased by 8.7% in the past month, contrasting with the Zacks S&P 500 composite's increase of 4.9% [6] - With a Zacks Rank 2 (Buy), SKWD is anticipated to outperform the overall market in the near term [6]

Core Points - Skyward Specialty Insurance Group, Inc. has announced a change in the schedule for its second quarter earnings call, which will now take place on July 31 at 12:00 p.m. EDT [1] - The company will release its second quarter 2025 earnings results after the market closes on July 30, and these results will be accessible on the company's investor website [2] - Investors can participate in the earnings call via a live audio webcast or conference call, with a replay available two hours after the call [3] Company Overview - Skyward Specialty is a rapidly growing specialty insurance company that provides commercial property and casualty products through nine underwriting divisions, including Accident & Health, Agriculture, and Construction & Energy Solutions [4] - The company's subsidiary insurance companies include Great Midwest Insurance Company, Houston Specialty Insurance Company, Imperium Insurance Company, and Oklahoma Specialty Insurance Company, all rated A (Excellent) with a stable outlook by A.M. Best Company [5]

Core Viewpoint - Skyward Specialty Insurance Group, Inc. is set to release its second quarter 2025 earnings results on July 31, 2025, and will host an earnings call on August 1, 2025, to discuss the financial outcomes [1][2]. 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 [3]. - The company operates through nine underwriting divisions, which include Accident & Health, Agriculture and Credit (Re)insurance, Captives, Construction & Energy Solutions, Global Property, Professional Lines, Specialty Programs, Surety, and Transactional E&S [3]. - Skyward Specialty's subsidiary insurance companies include Great Midwest Insurance Company, Houston Specialty Insurance Company, Imperium Insurance Company, and Oklahoma Specialty Insurance Company, all rated A (Excellent) with a stable outlook by A.M. Best Company [4].

Group 1 - Skyward Specialty Insurance (SKWD) has experienced significant selling pressure, resulting in a 10.8% decline in stock price over the past four weeks, but it is now considered oversold with potential for better earnings than previously predicted by analysts [1] - The Relative Strength Index (RSI) for SKWD is currently at 25.55, indicating that the stock is oversold and may soon experience a reversal in trend [5] - Analysts have raised earnings estimates for SKWD, with a 0.2% increase in the consensus EPS estimate over the last 30 days, suggesting a potential for price appreciation [7] Group 2 - SKWD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

INVESTOR PRESENTATION JUNE 2025 DISCLAIMER Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "may," "will," "intend," "expect," "anticipate," "estimate," "target," and similar expressions, or the negative thereof, among others, identify forward-looking statements. All forward-looking statements are based on assumptions, expectations and other information currently available to m ...

Core Insights - Skyward Specialty Insurance Group has launched a new Aviation underwriting unit, marking its entry into the specialized aviation market following the acquisition of Acceleration Aviation Underwriters [1][2] - This strategic move is part of the company's growth strategy, focusing on technology and data-driven underwriting to tap into specialized and underserved markets [2][4] Company Strategy - The acquisition of Acceleration provides Skyward Specialty with a seasoned team of aviation experts, enhancing its capabilities in niche markets [3][4] - The integration of Acceleration's expertise with Skyward's advanced analytics and tech-enabled underwriting positions the company to scale its aviation business effectively [4] Market Position - Skyward Specialty aims to strengthen its position in the aviation market by focusing on smaller, overlooked risks, which aligns with its overall strategy of investing in specialty markets [4] - The company operates through nine underwriting divisions, indicating a diversified approach to its insurance offerings [5] Company Overview - Skyward Specialty is recognized as a rapidly growing and innovative specialty insurance company, providing commercial property and casualty products [5] - The company's subsidiary insurance companies are rated A (Excellent) with a stable outlook by A.M. Best Company, reflecting its strong financial standing [6]

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].