Skyward Specialty Insurance (SKWD) - 2025 Q4 - Annual Report

Financial Performance and Reserves - The company regularly reviews its loss reserves using various actuarial techniques, which can be adjusted over time based on claims development, impacting earnings through either adverse development or reserve releases [109]. - The company’s insurance group, Skyward Specialty Insurance Group, Inc., holds an "A" (Excellent) rating with a stable outlook from A.M. Best, indicating strong financial strength and operational performance [119]. - The company is subject to insurance regulatory authorities in the states where it operates, which oversee capital requirements, licensing, and reserve adequacy among other regulatory matters [120]. Investment Strategy - The investment portfolio is predominantly composed of cash and cash equivalents and investment-grade fixed-maturity securities, aimed at generating predictable and stable returns [111]. - The Investment Committee meets quarterly to review and approve investment policies and strategies, ensuring alignment with the company's risk profile and market conditions [112]. Employee and Workplace Culture - As of December 31, 2025, the company had approximately 611 employees, with no collective bargaining agreements in place, and aims to foster a diverse and inclusive workplace culture [125][126]. - The company emphasizes employee training and development, offering a competitive benefits package that includes medical, dental, and vision insurance, as well as a 401(k) plan [127]. Geographic Distribution - The geographic distribution of gross written premiums for the year ended December 31, 2025, shows Texas at 10.7%, Pennsylvania at 7.6%, and Florida at 7.2%, among others, totaling 100% [116]. Company Structure - The company operates through four main insurance subsidiaries, with Great Midwest Insurance Company being the largest, underwriting multiple lines of insurance across all 50 states [115]. Intellectual Property - The company has applied for various trademark registrations and actively monitors its intellectual property to protect against unauthorized use [124].