Skyward Specialty Insurance Group Reports Fourth Quarter 2024 Results

Core Viewpoint Skyward Specialty Insurance Group, Inc. reported strong financial results for the fourth quarter and full year of 2024, showcasing significant growth in net income, adjusted operating income, and gross written premiums, while also highlighting strategic diversification in its product offerings. Financial Performance - Fourth quarter 2024 net income was $14.4 million, or$0.35 per diluted share, down from $29.3 million, or$0.74 per diluted share in the same period of 2023 [1] - Full year 2024 net income reached $118.8 million, or$2.87 per diluted share, compared to $86.0 million, or$2.24 per diluted share in 2023 [1] - Adjusted operating income for Q4 2024 was $33.2 million, or$0.80 per diluted share, up from $24.3 million, or$0.61 per diluted share in Q4 2023 [2] - Full year adjusted operating income was $126.7 million, or$3.06 per diluted share, compared to $80.8 million, or$2.11 per diluted share in 2023 [2] Underwriting Results - Gross written premiums for Q4 2024 were $388.4 million, a 20.8$321.6 million in Q4 2023 [3][5] - For the full year, gross written premiums totaled $1.743 billion, up 19.4$1.460 billion in 2023 [3][5] - Net retention improved to 69.8% in Q4 2024 from 66.6% in Q4 2023, and for the full year, it increased to 64.5% from 62.4% [3] Combined Ratio and Loss Ratios - The adjusted combined ratio for Q4 2024 was 91.6%, compared to 90.9% in Q4 2023 [5][6] - The loss ratio for Q4 2024 was 66.9%, up from 61.1% in Q4 2023, primarily due to higher catastrophe losses [6][7] - The non-cat loss and LAE ratio improved slightly to 60.5% in Q4 2024 from 60.9% in Q4 2023 [4] Investment Results - Net investment income for Q4 2024 was $20.7 million, an increase from$14.0 million in Q4 2023, driven by higher yields and larger asset bases [9][10] - For the full year, net investment income rose to $80.7 million from$40.3 million in 2023 [10] Stockholders' Equity - Stockholders' equity was $794.0 million at December 31, 2024, a slight decrease of 0.4$797.5 million at September 30, 2024 [11] - Book value per share increased by 18% to $19.79 compared to December 31, 2023 [5] Strategic Initiatives - The company launched new units in 2024, including Media Liability, Life Sciences, Mortgage and Credit, and Renewable Energy, as part of its diversification strategy [2] - Six out of eight divisions reported double-digit growth over the prior year, contributing to the overall premium growth [2]