Financial Performance - Gross written premiums increased by 26.3% year-over-year to $174.8 million in Q1 2025, driven by strong growth in the Casualty division[15] - Net income rose by 62.9% to $11.4 million, or $0.34 per diluted share, compared to $7.0 million in Q1 2024[12] - Total revenues for Q1 2025 increased by 35.3% to $122.7 million, up from $90.7 million in Q1 2024[12] - Adjusted net income for the three months ended March 31, 2025, was $14,538,000, compared to $10,547,000 in 2024, indicating a year-over-year increase of approximately 37.5%[22] - Diluted adjusted earnings per share remained stable at $0.34 for both the three months ended March 31, 2025, and 2024, despite changes in net income[24] Division Performance - The Casualty division led growth with a 33.7% increase in gross written premiums to $122.3 million[8] - Baleen Specialty, a new division launched in Q2 2024, generated $2.7 million in gross written premiums, marking a sequential growth of 131.1%[8] Investment Income - Net investment income surged by 64.0% to $12.6 million, attributed to a higher balance of investments and improved yields[10] - Net investment income for the three months ended March 31, 2025, was $12,559,000, an increase from $7,660,000 in 2024, reflecting a significant growth in investment income sources[18] - Gross investment income for the three months ended March 31, 2025, was $12,819,000, significantly higher than $7,824,000 in 2024, showcasing improved investment performance[18] Expense Management - The loss ratio for Q1 2025 was 66.9%, an increase of 1.4 points from 65.5% in Q1 2024, influenced by changes in portfolio mix[2] - The expense ratio decreased to 30.4% from 32.6% in the prior year, reflecting better expense management and scaling of operations[5] - For the three months ended March 31, 2025, total expenses amounted to $33,388,000, representing 30.4% of net earned premium, compared to $27,012,000 or 32.6% in 2024[17] - Operating expenses increased to $23,937,000 in the first quarter of 2025, accounting for 21.8% of net earned premium, compared to $20,522,000 or 24.7% in 2024[17] - The company reported net acquisition costs of $9,796,000 for the three months ended March 31, 2025, which is 8.9% of net earned premium, up from 7.9% in 2024[17] - The company incurred non-operating expenses of $110,000 in 2025, compared to $219,000 in 2024, indicating a reduction in such costs[22] - The strategic initiatives costs for the three months ended March 31, 2024, amounted to $1,238,000, related to the setup of the Baleen Specialty division[22] Shareholder Metrics - Book value per share was reported at $11.98, with diluted book value per share at $11.61[7] - Adjusted return on equity for the three months ended March 31, 2025, was 12.1%, down from 16.7% in 2024, reflecting changes in equity performance[23] Future Outlook - The company aims to grow premiums by approximately 20% annually despite market uncertainties[1]
Bowhead Specialty Holdings Inc.(BOW) - 2025 Q1 - Quarterly Results