Skyward Specialty Insurance Group Reports First Quarter 2025 Results

Core Viewpoint - Skyward Specialty Insurance Group reported strong financial results for the first quarter of 2025, with significant increases in net income and adjusted operating income compared to the same period in 2024, highlighting the company's growth and diversified business strategy [1][2]. Financial Performance - Net income for Q1 2025 was $42.1 million, or $1.01 per diluted share, up from $36.8 million, or $0.90 per diluted share in Q1 2024, representing a 14.3% increase in net income [1][21]. - Adjusted operating income for Q1 2025 was $37.3 million, or $0.90 per diluted share, compared to $31.0 million, or $0.75 per diluted share in Q1 2024, marking a 20.2% increase [1][21]. Underwriting Results - Gross written premiums reached $535.3 million, a 16.7% increase from $458.6 million in Q1 2024 [3][28]. - Net written premiums were $343.3 million, up 19.6% from $287.1 million in the same period last year [3][28]. - The combined ratio for Q1 2025 was 90.5%, slightly higher than 89.6% in Q1 2024, with a 2.2% contribution from catastrophe losses [7][21]. Investment Performance - Net investment income increased to $19.3 million in Q1 2025 from $18.3 million in Q1 2024, driven by higher yields from the fixed income portfolio [9][10]. - Net unrealized gains on securities held were $5.5 million, down from $9.0 million in the previous year [9][10]. Equity and Book Value - Stockholders' equity rose to $850.7 million as of March 31, 2025, a 7.1% increase from $794.0 million at the end of 2024 [11][19]. - Book value per share increased by 6% to $21.06 compared to $19.79 at the end of 2024 [5][21]. Business Segments - The agriculture and credit (re)insurance division saw a significant growth of 102.8%, while the accident & health division grew by 54.4% [28]. - The global property division experienced a decline of 18.5% in gross written premiums [28]. Strategic Outlook - The company remains confident in its diversified business portfolio and strategic initiatives aimed at growth in less exposed areas of the property and casualty market [2][5].