Skyward Specialty Insurance Group Reports Third Quarter 2025 Results

Core Insights - Skyward Specialty Insurance Group reported strong financial results for Q3 2025, with net income of $45.9 million, up from $36.7 million in Q3 2024, reflecting a growth of 25.5% [1][20] - The company achieved a gross written premium of $606.5 million, representing a 51.6% increase compared to the same period in 2024 [3][29] - The combined ratio improved to 89.2%, indicating enhanced underwriting performance [5][6] Financial Performance - 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, marking a 49.5% increase [2][20] - For the first nine months of 2025, net income reached $126.8 million, up from $104.4 million in the same period of 2024 [1][20] - The annualized return on equity for the nine months ended September 30, 2025, was 19.3% [5][22] Underwriting Results - The net written premiums for Q3 2025 were $441.2 million, a 64.4% increase from $268.3 million in Q3 2024 [3][29] - The net earned premiums for the first nine months of 2025 were $947.7 million, up 24.1% from $763.5 million in the same period of 2024 [20][29] - The loss ratio improved to 60.8% in Q3 2025 from 63.3% in Q3 2024, indicating better loss management [6][7] Investment Results - Net investment income for Q3 2025 was $22.2 million, an increase from $19.5 million in Q3 2024, driven by higher yields from the fixed income portfolio [8][9] - The company reported net realized gains of $15.9 million in Q3 2025, compared to $1.8 million in Q3 2024 [8][20] Equity and Assets - Stockholders' equity increased to $961.4 million as of September 30, 2025, up 6.8% from $899.9 million at June 30, 2025 [10][19] - Total assets reached $4.6 billion, reflecting growth from the previous year [18][19] Strategic Outlook - The company continues to execute its "Rule Our Niche" strategy, focusing on profitable growth and maintaining a diversified portfolio [2][5] - Skyward Specialty is preparing for the expected close of the Apollo acquisition early in the new year, which is anticipated to enhance its market position [2][5]