Skyward Specialty Insurance (US:SKWD)2025-10-29 20:10Financial Performance - Net income for Q3 2025 was $45.9 million, or $1.10 per diluted share, up from $36.7 million, or $0.89 per diluted share in Q3 2024, representing a 25.5% increase[1] - Adjusted operating income for Q3 2025 was $44.0 million, or $1.05 per diluted share, compared to $29.4 million, or $0.71 per diluted share in Q3 2024, a 49.5% increase[2] - Net income for the three months ended September 30, 2025, was $45,901 thousand, up 25.2% from $36,668 thousand in the prior year[21] - Basic earnings per share for the three months ended September 30, 2025, were $1.13, compared to $0.91 for the same period in 2024, reflecting a 24.2% increase[22] - Income before income taxes for Q3 2025 was $60,547,000, up 29.1% from $46,853,000 in Q3 2024[26] Premiums and Underwriting - Gross written premiums reached $606.5 million, a 51.6% increase compared to Q3 2024, with net written premiums increasing by 64.4% to $441.2 million[3] - Net earned premiums for the three months ended September 30, 2025, were $351,797 thousand, a 30.5% increase from $269,557 thousand in the same period of 2024[21] - Underwriting income for the nine months ended September 30, 2025, reached $97,971,000, a 40.8% increase compared to $69,620,000 for the same period in 2024[26] - The (Re)insurance division saw a dramatic increase in gross written premiums, rising 886.3% to $168,105,000 in Q3 2025 from $17,044,000 in Q3 2024[30] - The Agriculture and Credit (Re)insurance segment's gross written premiums increased by 237.8% to $327,525,000 for the nine months ended September 30, 2025, compared to $96,957,000 in 2024[30] - Specialty Programs gross written premiums grew by 39.2% to $231,401,000 for the nine months ended September 30, 2025, compared to $166,256,000 in 2024[30] - The Surety division reported a 15.3% increase in gross written premiums for the nine months ended September 30, 2025, totaling $122,272,000 compared to $106,076,000 in 2024[30] Investment and Equity - Net investment income for Q3 2025 was $22.2 million, an increase of $2.6 million compared to Q3 2024, driven by higher yields from fixed income investments[8] - Net investment income for the nine months ended September 30, 2025, was $60,107,000, slightly up from $59,866,000 in 2024[26] - Stockholders' equity rose to $961.4 million at September 30, 2025, a 6.8% increase from $899.9 million at June 30, 2025[10] - The company reported a total stockholders' equity of $961,423,000 as of September 30, 2025, compared to $797,507,000 a year earlier[29] - Tangible stockholders' equity increased to $873,006,000 as of September 30, 2025, up from $709,900,000 a year earlier[29] Growth and Strategic Initiatives - Five of the nine divisions experienced growth of over 25% in Q3 2025, led by the agriculture and credit (re)insurance division[2] - The company is preparing for the expected close of the Apollo acquisition early in the new year, indicating ongoing strategic expansion[2] - Total assets increased to $4,594,046 thousand as of September 30, 2025, up from $3,729,478 thousand on December 31, 2024, representing a growth of 23.2%[20] - Total liabilities increased to $3,632,623 thousand as of September 30, 2025, from $2,935,479 thousand on December 31, 2024, representing a growth of 23.7%[20] Performance Ratios - The combined ratio improved to 89.2% in Q3 2025 from 92.2% in Q3 2024, indicating enhanced underwriting performance[5] - Annualized return on equity for the nine months ended September 30, 2025, was 19.3%, reflecting strong profitability[3] - The company reported an annualized return on equity (ROE) of 19.7% for the three months ended September 30, 2025, compared to 19.3% in the same period of 2024[22] - Book value per share increased by 20% to $23.75 compared to December 31, 2024[3] - Book value per share increased to $23.75 as of September 30, 2025, up from $19.79 on December 31, 2024[22]