Bowhead Specialty Holdings Inc. Announces Preliminary Third Quarter 2024 Results
Bowhead Specialty Holdings Inc. (NYSE: BOW) has announced preliminary financial results for Q3 2024. Gross written premiums are expected to increase 27% to 34% year-over-year, reaching $193-200 million. Net income is projected to be $11.5-12.5 million, or $0.34-0.37 per diluted share. Adjusted net income is estimated at $12-13 million, or $0.36-0.39 per diluted share. The company anticipates a return on equity of 13.0-14.0% and an adjusted return on equity of 13.5-14.5%.
The growth in gross written premiums was driven by renewals, new business, and expansion across all divisions. The Casualty division led with a 40% increase, Healthcare Liability grew over 25%, and Professional Liability increased by over 10%. Bowhead launched a new division, Baleen Specialty, focusing on small, hard-to-place risks. The company's loss ratio is expected to be between 64.0-65.0%, and the expense ratio is projected at 29.5-30.5%.
Bowhead Specialty Holdings Inc. (NYSE: BOW) ha annunciato i risultati finanziari preliminari per il terzo trimestre del 2024. I premi lordi scritti sono previsti in aumento tra il 27% e il 34% rispetto all'anno precedente, raggiungendo i 193-200 milioni di dollari. Il reddito netto è proiettato tra gli 11.5 e i 12.5 milioni di dollari, ovvero tra 0.34 e 0.37 dollari per azione diluita. Il reddito netto rettificato è stimato tra i 12 e i 13 milioni di dollari, pari a 0.36-0.39 dollari per azione diluita. L'azienda prevede un ritorno sul capitale del 13.0-14.0% e un ritorno sul capitale rettificato del 13.5-14.5%.
La crescita dei premi lordi scritti è stata guidata dai rinnovi, da nuovi affari e dall'espansione in tutte le divisioni. La divisione Sinistri ha registrato un aumento del 40%, la responsabilità sanitaria è cresciuta oltre il 25% e la responsabilità professionale è aumentata di oltre il 10%. Bowhead ha lanciato una nuova divisione, Baleen Specialty, focalizzandosi su rischi piccoli e difficili da collocare. Si prevede che il rapporto di perdita dell'azienda sarà compreso tra il 64.0% e il 65.0%, e il rapporto di spesa è previsto tra il 29.5% e il 30.5%.
Bowhead Specialty Holdings Inc. (NYSE: BOW) ha anunciado los resultados financieros preliminares para el tercer trimestre de 2024. Se espera que las primas brutas emitidas aumenten entre un 27% y un 34% interanual, alcanzando entre 193 y 200 millones de dólares. El ingreso neto se proyecta en un rango de 11.5 a 12.5 millones de dólares, o de 0.34 a 0.37 dólares por acción diluida. El ingreso neto ajustado se estima entre 12 y 13 millones de dólares, o de 0.36 a 0.39 dólares por acción diluida. La compañía anticipa un retorno sobre el capital del 13.0-14.0% y un retorno ajustado sobre el capital del 13.5-14.5%.
El crecimiento en las primas brutas emitidas fue impulsado por las renovaciones, nuevos negocios y la expansión en todas las divisiones. La división de Casualidad lideró con un aumento del 40%, la Responsabilidad de Salud creció más del 25% y la Responsabilidad Profesional aumentó más del 10%. Bowhead lanzó una nueva división, Baleen Specialty, enfocándose en riesgos pequeños y difíciles de colocar. Se espera que el índice de pérdidas de la compañía esté entre el 64.0% y el 65.0%, y el índice de gastos se proyecta en un 29.5% a un 30.5%.
Bowhead Specialty Holdings Inc. (NYSE: BOW)는 2024년 3분기 예비 재무 결과를 발표했습니다. 총 인수 보험료는 전년 대비 27%에서 34% 증가할 것으로 예상되며 1억 9300만 달러에서 2억 달러에 이를 것으로 보입니다. 순이익은 1150만에서 1250만 달러로 추정되며, 희석 주당 0.34에서 0.37달러로 예상됩니다. 조정 순이익은 1200만에서 1300만 달러 또는 희석 주당 0.36에서 0.39달러로 추정됩니다. 회사는 자본 수익률이 13.0-14.0%에 이를 것으로 예상하고 있으며, 조정 자본 수익률은 13.5-14.5%로 예상하고 있습니다.
총 인수 보험료의 성장은 갱신, 신규 비즈니스 및 모든 부서의 확장에 의해 이끌어졌습니다. 손해보험 부문은 40% 증가로 선두를 달렸고, 건강 책임은 25% 이상 성장했으며, 전문 책임은 10% 이상 증가했습니다. Bowhead는 작은 위험을 위한 Baleen Specialty라는 새로운 부서를 시작했습니다. 회사의 손실 비율은 64.0%에서 65.0% 사이로 예상되며, 비용 비율은 29.5%에서 30.5%로 예상됩니다.
Bowhead Specialty Holdings Inc. (NYSE: BOW) a annoncé les résultats financiers préliminaires pour le troisième trimestre 2024. Les primes brutes émises devraient augmenter de 27 % à 34 % d'une année sur l'autre, atteignant entre 193 et 200 millions de dollars. Le revenu net est estimé entre 11,5 et 12,5 millions de dollars, soit entre 0,34 et 0,37 dollar par action diluée. Le revenu net ajusté est estimé entre 12 et 13 millions de dollars, soit entre 0,36 et 0,39 dollar par action diluée. La société prévoit un rendement des capitaux propres de 13,0 à 14,0 % et un rendement ajusté des capitaux propres de 13,5 à 14,5 %.
La croissance des primes brutes émises a été alimentée par les renouvellements, les nouvelles affaires et l'expansion dans toutes les divisions. La division des Sinistres a enregistré une augmentation de 40 %, la Responsabilité Sanitaire a progressé de plus de 25 % et la Responsabilité Professionnelle a augmenté de plus de 10 %. Bowhead a lancé une nouvelle division, Baleen Specialty, axée sur les petits risques difficiles à placer. Le taux de sinistralité de l'entreprise devrait se situer entre 64,0 % et 65,0 %, et le taux de dépenses est projeté entre 29,5 % et 30,5 %.
Bowhead Specialty Holdings Inc. (NYSE: BOW) hat die vorläufigen finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben. Es wird erwartet, dass die brutto prämien im Vergleich zum Vorjahr um 27% bis 34% steigen und zwischen 193 und 200 Millionen Dollar erreichen. Der Nettogewinn wird auf 11,5 bis 12,5 Millionen Dollar oder 0,34 bis 0,37 Dollar pro verwässerter Aktie geschätzt. Der bereinigte Nettogewinn wird auf 12 bis 13 Millionen Dollar oder 0,36 bis 0,39 Dollar pro verwässerter Aktie geschätzt. Das Unternehmen erwartet eine Eigenkapitalrendite von 13,0-14,0% und eine bereinigte Eigenkapitalrendite von 13,5-14,5%.
Das Wachstum bei den brutto prämien wurde durch Verlängerungen, neue Geschäfte und Expansion in allen Bereichen vorangetrieben. Die Schadensabteilung führte mit einem Anstieg von 40%, die Gesundheitshaftpflicht wuchs um über 25% und die Berufshaftpflicht erhöhte sich um über 10%. Bowhead hat eine neue Abteilung, Baleen Specialty, gegründet, die sich auf kleine, schwer zu platzierende Risiken konzentriert. Das Schadenverhältnis des Unternehmens wird zwischen 64,0% und 65,0% erwartet, und das Aufwandsverhältnis wird auf 29,5% bis 30,5% geschätzt.
- Gross written premiums increased 27-34% year-over-year to $193-200 million
- Net income expected to be $11.5-12.5 million, or $0.34-0.37 per diluted share
- Adjusted net income projected at $12-13 million, or $0.36-0.39 per diluted share
- Return on equity anticipated at 13.0-14.0%
- Adjusted return on equity estimated at 13.5-14.5%
- Casualty division led growth with a 40% increase in gross written premiums
- Healthcare Liability gross written premiums grew over 25% year-over-year
- Professional Liability gross written premiums increased over 10% year-over-year
- Launch of new division, Baleen Specialty, focusing on small, hard-to-place risks
- Expense ratio expected to decrease to 29.5-30.5% from 33.8% in Q2 2024
- None.
Insights
Bowhead Specialty Holdings Inc.'s preliminary Q3 2024 results show strong growth and profitability. Gross written premiums are expected to increase 27-34% YoY to
Net income is projected at
The loss ratio is expected to improve to
These results indicate Bowhead's ability to grow profitably in the specialty insurance market, with potential for continued expansion through its new Baleen Specialty division.
Bowhead's Q3 2024 preliminary results demonstrate robust performance in the specialty insurance sector. The
The company's diversified portfolio across Casualty, Healthcare Liability and Professional Liability lines provides resilience and growth opportunities. The launch of Baleen Specialty, focusing on small, hard-to-place risks, shows Bowhead's adaptability to market needs and potential for future growth.
The improved loss ratio (
The absence of property risks in their portfolio shields them from recent hurricane-related losses, potentially giving them a competitive advantage in terms of stability and predictability of earnings.
Preliminary Third Quarter 2024 Highlights
-
Gross written premiums are expected to increase
27% to34% year over year to$193 million $200 million -
Net income is expected to be between
$11.5 million $12.5 million $0.34 $0.37 -
Adjusted net income(1) is expected to be between
$12 million $13 million $0.36 $0.39 -
Return on equity is expected to be between
13.0% and14.0% and adjusted return on equity(1) is expected to be between13.5% and14.5% . -
Book value per share is expected to be between
$11.00 $11.25 $10.80 $11.00
(1) |
Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measure to the most comparable |
|||||
Bowhead Chief Executive Officer Stephen Sills commented, “We are pleased to share our preliminary third quarter results. Additionally, since Bowhead does not write any property risks, we do not expect any material direct losses as a result of the recent hurricane activities. We look forward to sharing more about our third quarter results on November 5th.”
Preliminary Underwriting Results
The expected increase in gross written premiums of
-
Our Casualty division led the gross written premium growth with an approximately
40% increase year over year, which included a preliminary$4 million $3 million -
Healthcare Liability gross written premiums grew over
25% year over year; -
Professional Liability gross written premiums grew over
10% year over year; -
Late in the second quarter of 2024, we launched a new division called Baleen Specialty, which focuses on small, hard-to-place risks written
100% on a non-admitted basis. Baleen is a streamlined, low touch “flow” underwriting operation that supplements the “craft” solutions we offer. In line with our deliberate, measured and limited roll out, Baleen Specialty generated a preliminary$0.4 million
Our loss ratio is expected to be between
Our expense ratio is expected to be between
Preliminary Investment Results
Net investment income is expected to be between
Summary of Selected Preliminary Financial Results
The following table summarizes selected preliminary financial results for the three months ended September 30, 2024:
|
Three Months Ended September 30, |
|
|
2024 |
|
|
($ in millions, except percentages and per share data) |
|
Gross written premiums |
$ |
193 - 200 |
Net earned premiums |
|
104 - 107 |
Net investment income |
|
11 - 12 |
Total revenues |
|
114 - 119 |
Net income |
|
11.5 - 12.5 |
|
|
|
Key Operating and Financial Metrics: |
|
|
Adjusted net income(1) |
$ |
12 - 13 |
Loss ratio |
|
|
Expense ratio |
|
|
Combined ratio |
|
|
Return on equity(2) |
|
|
Adjusted return on equity(1)(2) |
|
|
Diluted earnings per share |
$ |
0.34 - 0.37 |
Diluted adjusted earnings per share(1) |
$ |
0.36 - 0.39 |
(1) |
Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measure to the most comparable |
|||||
(2) |
For the three months ended September 30, 2024, preliminary net income and preliminary adjusted net income are annualized to arrive at preliminary return on equity and preliminary adjusted return on equity. |
|||||
Reconciliation of Non-GAAP Financial Measures
This earnings release contains certain financial measures that are not presented in accordance with generally accepted accounting principles in
- Adjusted net income is defined as net income excluding the impact of net realized investment gains (losses), non-operating expenses, foreign exchange (gains) losses, and certain strategic initiatives. Adjusted net income excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments.
- Adjusted return on equity is defined as adjusted net income as a percentage of average beginning and ending mezzanine equity and stockholders’ equity.
- Diluted adjusted earnings per share is defined as adjusted net income divided by the weighted average common shares outstanding for the period, reflecting the dilution that may occur if equity base awards are converted into common stock equivalents as calculated using the treasury stock method.
You should not rely on these non-GAAP financial measures as a substitute for any
Adjusted net income
Preliminary adjusted net income for the three months ended September 30, 2024 reconciles to preliminary net income as follows:
|
Three Months Ended September 30, |
||||
|
2024 |
||||
|
Before income taxes |
|
After income taxes |
||
|
($ in millions) |
||||
Income as reported |
$ |
15 - 16 |
|
$ |
11.5 - 12.5 |
Adjustments(1) |
|
0 - 1 |
|
|
0 - 1 |
Adjusted net income |
$ |
16 - 17 |
|
$ |
12 - 13 |
(1) |
Adjustments include expected net realized investment gains (losses) of less than |
|||||
Adjusted return on equity
Preliminary adjusted return on equity for the three months ended September 30, 2024 reconciles to preliminary return on equity as follows:
|
Three Months Ended September 30, |
|
|
2024 |
|
|
($ in millions, except percentages) |
|
Numerator: Adjusted net income(1) |
$ |
47 - 51 |
Denominator: Average mezzanine equity and stockholders' equity |
|
351 - 352 |
Adjusted return on equity |
|
|
| (1) | For the three months ended September 30, 2024 preliminary net income and preliminary adjusted net income are annualized to arrive at preliminary return on equity and preliminary adjusted return on equity. |
|||||
Diluted adjusted earnings per share
Preliminary diluted adjusted earnings per share for the three months ended September 30, 2024 reconciles to preliminary diluted earnings per share as follows:
|
Three Months Ended September 30, |
|
|
2024 |
|
|
($ in millions, except per share data) |
|
Numerator: Adjusted net income |
$ |
12 - 13 |
Denominator: Diluted weighted average shares outstanding |
|
33 |
Diluted adjusted earnings per share |
$ |
0.36 - 0.39 |
About Bowhead Specialty Holdings Inc.
Bowhead Specialty is a growing specialty insurance business providing casualty, professional liability and healthcare liability insurance products. We were founded and are led by industry veteran Stephen Sills. The team is composed of highly experienced and respected industry veterans with decades of individual, successful underwriting and management experience. We focus on providing “craft” solutions in our specialty lines and classes of business that we believe require deep underwriting and claims expertise in order to produce attractive financial results.
We pride ourselves on the quality and experience of our people, who are committed to exceeding our partners’ expectations through excellent service and expertise. Our collaborative culture spans all functions of our business and allows us to provide a consistent, positive experience for all of our partners.
Conference Call
The Company will host a conference call to discuss its results on Tuesday, November 5, 2024, beginning at 8:30 a.m. Eastern Time. Interested parties may access the conference call through a live webcast, which can be accessed via this link, by visiting the Company’s Investor Relations website, or by dialing (877) 407-3949 (toll-free) or (215) 268-9917 (international). Please join the live webcast or dial in at least 10 minutes before the start of the call.
A replay of the event webcast will be available on the company’s Investor Relations website for one year following the call.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in press release are forward-looking statements. In some cases, forward-looking statements can be identified by terms such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “seeks,” “future,” “outlook,” “prospects” “will,” “would,” “should,” “could,” “may,” “can have” or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 and any subsequent filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241021342620/en/
Investor Relations:
Shirley Yap, Head of Investor Relations
investorrelations@bowheadspecialty.com
Source: Bowhead Specialty Holdings Inc.
FAQ
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