Skyward Specialty Insurance Group Reports Second Quarter 2024 Results
Skyward Specialty Insurance Group (SKWD) reported strong Q2 2024 results, with net income of $31.0 million ($0.75 per diluted share), up from $19.5 million in Q2 2023. Adjusted operating income reached $33.1 million ($0.80 per diluted share), compared to $16.0 million in Q2 2023. Key highlights include:
- Gross written premiums increased 17.6%
- Underwriting income of $23.9 million
- Combined ratio improved to 90.7%
- Annualized return on equity of 19.6% for H1 2024
- AM Best upgraded rating to A (Excellent) with stable outlook
The company's growth was driven by strong performance in captives, transactional E&S, and surety underwriting divisions. CEO Andrew Robinson expressed confidence in the company's position to deliver attractive returns and profitable growth.
Skyward Specialty Insurance Group (SKWD) ha riportato risultati solidi per il Q2 2024, con un reddito netto di 31,0 milioni di dollari (0,75 dollari per azione diluita), in aumento rispetto ai 19,5 milioni di dollari del Q2 2023. Il reddito operativo rettificato ha raggiunto i 33,1 milioni di dollari (0,80 dollari per azione diluita), rispetto ai 16,0 milioni di dollari del Q2 2023. Tra i punti salienti ci sono:
- Premi lordi scritti aumentati del 17,6%
- Reddito da sottoscrizione di 23,9 milioni di dollari
- Il rapporto combinato è migliorato al 90,7%
- Ritorno sul capitale annualizzato del 19,6% per il primo semestre del 2024
- La rating di AM Best è stata aggiornata a A (Eccellente) con prospettive stabili
La crescita dell'azienda è stata sostenuta da forti performance nelle divisioni delle captive, E&S transazionali e sottoscrizione di fideicommissi. Il CEO Andrew Robinson ha espresso fiducia nella posizione dell'azienda per fornire ritorni attraenti e una crescita redditizia.
Skyward Specialty Insurance Group (SKWD) reportó resultados sólidos en el Q2 2024, con un ingreso neto de 31,0 millones de dólares (0,75 dólares por acción diluida), en comparación con 19,5 millones de dólares en el Q2 2023. El ingreso operativo ajustado alcanzó los 33,1 millones de dólares (0,80 dólares por acción diluida), frente a los 16,0 millones de dólares en el Q2 2023. Los aspectos clave incluyen:
- Las primas brutas suscritas aumentaron un 17,6%
- Ingreso por suscripción de 23,9 millones de dólares
- La relación combinada mejoró al 90,7%
- Retorno anualizado sobre el capital del 19,6% para el primer semestre de 2024
- AM Best mejoró la calificación a A (Excelente) con perspectiva estable
El crecimiento de la compañía fue impulsado por un sólido desempeño en las divisiones de cautivas, E&S transaccionales y suscripción de fianzas. El CEO Andrew Robinson expresó confianza en la posición de la compañía para ofrecer retornos atractivos y un crecimiento rentable.
Skyward Specialty Insurance Group (SKWD)는 2024년 2분기 강력한 실적을 보고하였으며, 순이익 3,100만 달러 (희석 주당 0.75달러)로, 2023년 2분기 1,950만 달러에서 상승하였습니다. 조정된 운영 수익은 3,310만 달러 (희석 주당 0.80달러)에 도달하였으며, 이는 2023년 2분기 1,600만 달러와 비교됩니다. 주요 하이라이트는 다음과 같습니다:
- 총 인수 된 보험료가 17.6% 증가하였습니다.
- 2,390만 달러의 언더라이팅 수익
- 합산 비율이 90.7%로 개선됨
- 2024년 상반기 연환산 자기자본 수익률이 19.6%
- AM Best가 A(우수)로 등급을 상향 조정하고 안정적 전망을 유지함
회사의 성장은 캡티브, 거래 E&S 및 보증 언더라이팅 부문의 강력한 성과에 의해 추진되었습니다. CEO 앤드류 로빈슨은 회사가 매력적인 수익과 수익성 있는 성장을 실현할 수 있는 위치에 있다고 확신하였습니다.
Skyward Specialty Insurance Group (SKWD) a annoncé de solides résultats pour le Q2 2024, avec un revenu net de 31,0 millions de dollars (0,75 dollar par action diluée), en hausse par rapport aux 19,5 millions de dollars du Q2 2023. Le résultat opérationnel ajusté a atteint 33,1 millions de dollars (0,80 dollar par action diluée), contre 16,0 millions de dollars au Q2 2023. Les points clé comprennent :
- Les primes brutes souscrites ont augmenté de 17,6%
- Revenu de souscription de 23,9 millions de dollars
- Le ratio combiné s'est amélioré à 90,7%
- Rendement global annualisé des fonds propres de 19,6% pour le premier semestre 2024
- La notation d'AM Best a été rehaussée à A (Excellent) avec une perspective stable
La croissance de l'entreprise a été soutenue par des performances solides dans les divisions captives, E&S transactionnel et souscription de caution. Le PDG Andrew Robinson a exprimé sa confiance dans la capacité de l'entreprise à offrir des rendements attractifs et une croissance profitable.
Skyward Specialty Insurance Group (SKWD) berichtete über starke Ergebnisse im Q2 2024 mit einem Nettoeinkommen von 31,0 Millionen US-Dollar (0,75 US-Dollar je verwässerte Aktie), ein Anstieg von 19,5 Millionen US-Dollar im Q2 2023. Das bereinigte Betriebsergebnis erreichte 33,1 Millionen US-Dollar (0,80 US-Dollar je verwässerte Aktie), verglichen mit 16,0 Millionen US-Dollar im Q2 2023. Zu den wichtigsten Highlights gehören:
- Bruttoprämien stiegen um 17,6%
- Unterzeichnungseinkommen von 23,9 Millionen US-Dollar
- Der kombinierte Satz verbesserte sich auf 90,7%
- Annualisierte Eigenkapitalrendite von 19,6% für das erste Halbjahr 2024
- AM Best hat das Rating auf A (Ausgezeichnet) mit stabiler Perspektive angehoben
Das Wachstum des Unternehmens wurde durch starke Leistungen in den Bereichen Captives, transactionale E&S und Surety Underwriting vorangetrieben. CEO Andrew Robinson äußerte Zuversicht in die Position des Unternehmens, attraktivere Renditen und profitables Wachstum zu erzielen.
- Net income increased to $31.0 million in Q2 2024, up from $19.5 million in Q2 2023
- Adjusted operating income more than doubled to $33.1 million in Q2 2024
- Gross written premiums grew by 17.6% year-over-year
- Combined ratio improved to 90.7% from 92.0% in Q2 2023
- Annualized return on equity increased to 19.6% for H1 2024
- AM Best upgraded the company's rating to A (Excellent) with stable outlook
- Expense ratio increased by 1.0 point to 29.0% in Q2 2024
Insights
Skyward Specialty's Q2 2024 results demonstrate strong financial performance and growth. The company reported a
- Gross written premiums grew
17.6% - Combined ratio improved to
90.7% from92.0% - Annualized ROE increased to
19.6% from14.8%
The company's "Rule our Niche" strategy appears to be paying off, with growth coming from less cyclical areas like surety and captives. The recent AM Best upgrade to A (Excellent) further validates their business model and financial strength.
Skyward Specialty's Q2 results reveal a company outperforming industry averages. The
The shift towards less cycle-exposed business lines (surety, A&H, captives) is a strategic move that could provide more stable earnings in the future. The AM Best upgrade to A (Excellent) is significant, potentially opening doors to new business opportunities and enhancing the company's competitive position in the specialty insurance market.
Skyward Specialty's Q2 performance indicates a company gaining market share in the specialty insurance sector. The
The improved combined ratio and substantial increase in net investment income demonstrate effective operational management and investment strategy. The AM Best rating upgrade could enhance brand perception and potentially lead to increased policy retention and new business acquisition. Investors should monitor how Skyward Specialty leverages this improved rating to drive further growth and profitability in coming quarters.
HOUSTON, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported second quarter 2024 net income of
Adjusted operating income(1) for the second quarter of 2024 was
Highlights for the second quarter included:
- Gross written premiums increased
17.6% . - Underwriting income(1) of
$23.9 million compared to$15.5 million for the second quarter of 2023. - Adjusted operating income(1) of
$33.1 million compared to$16.0 million for the second quarter of 2023. - Combined ratio of
90.7% compared to92.0% for the second quarter of 2023. - Cat loss and LAE ratio of
1.2% compared to3.5% for the second quarter of 2023. - Annualized return on equity of
19.6% through the first half of 2024 compared to14.8% for the same 2023 period. - Annualized return on tangible equity(1) of
22.4% through the first half of 2024 compared to18.3% for the same 2023 period.
(1) See "Reconciliation of Non-GAAP Financial Measures"
Skyward Specialty Chairman and CEO Andrew Robinson commented, "Our second quarter results continue the consistently excellent performance we have produced in each of the seven quarters reporting as a public company and our adjusted operating income of
"Last week's AM Best upgrade to A (Excellent) with stable outlook is a testament to the strength of our business model and the dedication of our team. This upgrade reflects our ongoing commitment to delivering exceptional value to our policyholders and shareholders."
Results of Operations
Underwriting Results
| Premiums | ||||||||||||||||||||||||
| ($ in thousands) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| unaudited | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||
| Gross written premiums | $ | 496,243 | $ | 421,994 | 17.6 | % | $ | 954,863 | $ | 782,492 | 22.0 | % | ||||||||||||
| Ceded written premiums | $ | (199,114 | ) | $ | (208,257 | ) | (4.4 | )% | $ | (370,634 | ) | $ | (366,614 | ) | 1.1 | % | ||||||||
| Net retention | 59.9 | % | 50.6 | % | NM (1) | 61.2 | % | 53.1 | % | NM (1) | ||||||||||||||
| Net written premiums | $ | 297,129 | $ | 213,737 | 39.0 | % | $ | 584,229 | $ | 415,878 | 40.5 | % | ||||||||||||
| Net earned premiums | $ | 257,583 | $ | 194,347 | 32.5 | % | $ | 493,925 | $ | 377,178 | 31.0 | % | ||||||||||||
| (1) Not meaningful | ||||||||||||||||||||||||
The increase in gross written premiums for the second quarter and first half of 2024, when compared to the same 2023 periods, was driven by double-digit premium growth primarily from our captives, transactional E&S and surety underwriting divisions.
| Combined Ratio | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Non-cat loss and LAE(1) | 60.6 | % | 60.7 | % | 60.6 | % | 60.9 | % | ||||||||
| Cat loss and LAE(1) | 1.2 | % | 3.5 | % | 0.8 | % | 2.7 | % | ||||||||
| Prior accident year development - LPT(2) | (0.1 | )% | (0.2 | )% | (0.1 | )% | (0.2 | )% | ||||||||
| Loss Ratio | 61.7 | % | 64.0 | % | 61.3 | % | 63.4 | % | ||||||||
| Net policy acquisition costs | 14.0 | % | 11.9 | % | 13.7 | % | 11.7 | % | ||||||||
| Other operating and general expenses | 15.8 | % | 17.3 | % | 15.9 | % | 17.0 | % | ||||||||
| Commission and fee income | (0.8 | )% | (1.2 | )% | (0.8 | )% | (1.0 | )% | ||||||||
| Expense ratio | 29.0 | % | 28.0 | % | 28.8 | % | 27.7 | % | ||||||||
| Combined ratio | 90.7 | % | 92.0 | % | 90.1 | % | 91.1 | % | ||||||||
| Adjusted Underwriting Ratios | ||||||||||||||||
| Adjusted loss ratio(2) | 61.8 | % | 64.2 | % | 61.4 | % | 63.6 | % | ||||||||
| Expense ratio | 29.0 | % | 28.0 | % | 28.8 | % | 27.7 | % | ||||||||
| Adjusted combined ratio(2) | 90.8 | % | 92.2 | % | 90.2 | % | 91.3 | % | ||||||||
| (1) Current accident year | ||||||||||||||||
| (2) See "Reconciliation of Non-GAAP Financial Measures" | ||||||||||||||||
The loss ratios for the second quarter and first half of 2024 improved 2.3 points and 2.1 points, respectively, when compared to the same 2023 periods, driven by less severity of convective storms.
The expense ratios for the second quarter and first half of 2024 increased 1.0 point and 1.1 points, respectively, when compared to the same 2023 periods driven by the business mix shift partially offset by earnings leverage.
The expense ratios for all periods presented exclude the impact of IPO related stock compensation and secondary offering expenses, which are reported in other expenses in our condensed consolidated statements of operations and comprehensive income.
Investment Results
| Net Investment Income | ||||||||||||||||
| $ in thousands | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Short-term investments & cash and cash equivalents | $ | 4,021 | $ | 3,206 | $ | 9,108 | $ | 4,985 | ||||||||
| Fixed income | 13,786 | 7,919 | 26,264 | 15,380 | ||||||||||||
| Equities | 751 | 684 | 1,378 | 682 | ||||||||||||
| Alternative & strategic investments | 3,580 | (3,226 | ) | 3,685 | (7,818 | ) | ||||||||||
| Net investment income | $ | 22,138 | $ | 8,583 | $ | 40,435 | $ | 13,229 | ||||||||
| Net unrealized (losses) gains on securities still held | $ | (1,760 | ) | $ | 5,017 | $ | 7,231 | $ | 8,784 | |||||||
| Net realized (losses) gains | (65 | ) | 334 | (753 | ) | (2,472 | ) | |||||||||
| Net investment (losses) gains | $ | (1,825 | ) | $ | 5,351 | $ | 6,478 | $ | 6,312 | |||||||
Beginning January 1, 2024 we simplified the investment portfolio classifications to align with our strategy and the underlying risk characteristics of the portfolio. The prior period has been reclassified to conform to the current period presentation.
Net investment income for the second quarter and first half of 2024 increased
Stockholders’ Equity
Stockholders’ equity was
Conference Call
At 9 a.m. central time tomorrow, August 6, 2024, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.
Non-GAAP Financial Measures
This release contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We refer to these measures as “non-GAAP financial measures.” We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.
We have chosen to exclude the net impact of the Loss Portfolio Transfer (“LPT”), all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening in certain non-GAAP metrics, where noted, as the business subject to the LPT is not representative of our continuing business strategy. The business subject to the LPT is primarily related to policy years 2017 and prior, was generated and managed under prior leadership, and has either been exited or substantially repositioned during the reevaluation of our portfolio. We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”
About Skyward Specialty Insurance Group, Inc.
Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions - Accident & Health, Captives, Global Property & Agriculture, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.
Skyward Specialty's subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with stable outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.
Forward-Looking Statements
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are typically, but not always, identified through use of the words "believe," "expect," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Skyward Specialty's Form 10-K, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverages and the general costs of doing business, the potential loss of key members of our management team or key employees and our ability to attract and retain personnel, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, other types of catastrophic events, our ability to obtain reinsurance coverage at prices and on terms that allow us to transfer risk and adequately protect our company against financial loss, and losses resulting from reinsurance counterparties failing to pay us on reinsurance claims. These forward-looking statements speak only as of the date of this 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.
Skyward Specialty Insurance Group, Inc.
Media contact:
Haley Doughty
hdoughty@skywardinsurance.com
713-935-4944
or
Investor contact:
Natalie Schoolcraft,
nschoolcraft@skywardinsurance.com
614-494-4988
| Skyward Specialty Insurance Group, Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| ($ in thousands, except share and per share amounts) | |||||||
| (unaudited) | June 30, 2024 | December 31, 2023 | |||||
| Assets | |||||||
| Investments: | |||||||
| Fixed maturity securities, available-for-sale, at fair value (amortized cost of | $ | 1,200,273 | $ | 1,017,651 | |||
| Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of | 39,962 | 42,986 | |||||
| Equity securities, at fair value | 112,823 | 118,249 | |||||
| Mortgage loans, at fair value | 43,670 | 50,070 | |||||
| Equity method investments | 101,903 | 110,653 | |||||
| Other long-term investments | 2,665 | 3,852 | |||||
| Short-term investments, at fair value | 215,041 | 270,226 | |||||
| Total investments | 1,716,337 | 1,613,687 | |||||
| Cash and cash equivalents | 72,989 | 65,891 | |||||
| Restricted cash | 35,278 | 34,445 | |||||
| Premiums receivable, net | 377,333 | 179,235 | |||||
| Reinsurance recoverables, net | 667,837 | 596,334 | |||||
| Ceded unearned premium | 255,138 | 186,121 | |||||
| Deferred policy acquisition costs | 116,499 | 91,955 | |||||
| Deferred income taxes | 25,107 | 21,991 | |||||
| Goodwill and intangible assets, net | 87,868 | 88,435 | |||||
| Other assets | 81,108 | 75,341 | |||||
| Total assets | $ | 3,435,494 | $ | 2,953,435 | |||
| Liabilities and stockholders’ equity | |||||||
| Liabilities: | |||||||
| Reserves for losses and loss adjustment expenses | $ | 1,470,106 | $ | 1,314,501 | |||
| Unearned premiums | 711,854 | 552,532 | |||||
| Deferred ceding commission | 47,948 | 37,057 | |||||
| Reinsurance and premium payables | 207,638 | 150,156 | |||||
| Funds held for others | 95,596 | 58,588 | |||||
| Accounts payable and accrued liabilities | 59,796 | 50,880 | |||||
| Notes payable | 100,000 | 50,000 | |||||
| Subordinated debt, net of debt issuance costs | 18,936 | 78,690 | |||||
| Total liabilities | 2,711,874 | 2,292,404 | |||||
| Stockholders’ equity | |||||||
| Common stock, | 401 | 399 | |||||
| Additional paid-in capital | 713,542 | 710,855 | |||||
| Stock notes receivable | (5,233 | ) | (5,562 | ) | |||
| Accumulated other comprehensive loss | (31,136 | ) | (22,953 | ) | |||
| Retained earnings (accumulated deficit) | 46,046 | (21,708 | ) | ||||
| Total stockholders’ equity | 723,620 | 661,031 | |||||
| Total liabilities and stockholders’ equity | $ | 3,435,494 | $ | 2,953,435 | |||
| Skyward Specialty Insurance Group, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations and Comprehensive Income | ||||||||||||||||
| ($ in thousands) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | ||||||||||||||||
| Net earned premiums | $ | 257,583 | $ | 194,347 | $ | 493,925 | $ | 377,178 | ||||||||
| Commission and fee income | 2,053 | 2,240 | 4,079 | 3,732 | ||||||||||||
| Net investment income | 22,138 | 8,583 | 40,435 | 13,229 | ||||||||||||
| Net investment (losses) gains | (1,825 | ) | 5,351 | 6,478 | 6,312 | |||||||||||
| Other loss | (7 | ) | — | (7 | ) | — | ||||||||||
| Total revenues | 279,942 | 210,521 | 544,910 | 400,451 | ||||||||||||
| Expenses: | ||||||||||||||||
| Losses and loss adjustment expenses | 159,054 | 124,405 | 302,968 | 239,305 | ||||||||||||
| Underwriting, acquisition and insurance expenses | 76,679 | 56,683 | 146,453 | 108,338 | ||||||||||||
| Interest expense | 2,449 | 2,466 | 5,176 | 4,618 | ||||||||||||
| Amortization expense | 360 | 486 | 748 | 873 | ||||||||||||
| Other expenses | 1,045 | 1,465 | 2,233 | 2,579 | ||||||||||||
| Total expenses | 239,587 | 185,505 | 457,578 | 355,713 | ||||||||||||
| Income before income taxes | 40,355 | 25,016 | 87,332 | 44,738 | ||||||||||||
| Income tax expense | 9,385 | 5,564 | 19,578 | 9,730 | ||||||||||||
| Net income | 30,970 | 19,452 | 67,754 | 35,008 | ||||||||||||
| Net income attributable to participating securities | — | — | — | 1,402 | ||||||||||||
| Net income attributable to common stockholders | $ | 30,970 | $ | 19,452 | $ | 67,754 | $ | 33,606 | ||||||||
| Comprehensive income: | ||||||||||||||||
| Net income | $ | 30,970 | $ | 19,452 | $ | 67,754 | $ | 35,008 | ||||||||
| Other comprehensive income: | ||||||||||||||||
| Unrealized gains and losses on investments: | ||||||||||||||||
| Net change in unrealized (losses) gains on investments, net of tax | (1,451 | ) | (4,375 | ) | (6,869 | ) | 3,413 | |||||||||
| Reclassification adjustment for losses on securities no longer held, net of tax | (406 | ) | (1,165 | ) | (1,314 | ) | (1,212 | ) | ||||||||
| Total other comprehensive (loss) income | (1,857 | ) | (5,540 | ) | (8,183 | ) | 2,201 | |||||||||
| Comprehensive income | $ | 29,113 | $ | 13,912 | $ | 59,571 | $ | 37,209 | ||||||||
| Skyward Specialty Insurance Group, Inc. | ||||||||||||||||
| Share and Per Share Data | ||||||||||||||||
| ($ in thousands, except share and per share amounts) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Weighted average basic shares | 39,177,457 | 36,603,779 | 39,142,825 | 34,746,874 | ||||||||||||
| Weighted average diluted shares | 41,168,082 | 38,143,585 | 41,110,384 | 37,503,914 | ||||||||||||
| Basic earnings per share | $ | 0.79 | $ | 0.53 | $ | 1.73 | $ | 0.97 | ||||||||
| Diluted earnings per share | $ | 0.75 | $ | 0.51 | $ | 1.65 | $ | 0.93 | ||||||||
| Basic adjusted operating earnings per share | $ | 0.84 | $ | 0.44 | $ | 1.64 | $ | 0.87 | ||||||||
| Diluted adjusted operating earnings per share | $ | 0.80 | $ | 0.42 | $ | 1.56 | $ | 0.84 | ||||||||
| Annualized ROE (1) | 17.5 | % | 15.1 | % | 19.6 | % | 14.8 | % | ||||||||
| Annualized adjusted ROE (2) | 18.7 | % | 12.4 | % | 18.5 | % | 13.3 | % | ||||||||
| Annualized ROTE (3) | 20.0 | % | 18.3 | % | 22.4 | % | 18.3 | % | ||||||||
| Annualized adjusted ROTE (4) | 21.3 | % | 15.1 | % | 21.2 | % | 16.5 | % | ||||||||
| June 30 | December 31 | |||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Shares outstanding | 40,096,132 | 39,863,756 | ||||||||||||||
| Fully diluted shares outstanding | 41,945,532 | 41,771,854 | ||||||||||||||
| Book value per share | $ | 18.18 | $ | 16.72 | ||||||||||||
| Fully diluted book value per share | $ | 17.38 | $ | 15.96 | ||||||||||||
| Fully diluted tangible book value per share | $ | 15.28 | $ | 13.84 | ||||||||||||
| (1) Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period | ||||||||||||||||
| (2) Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period | ||||||||||||||||
| (3) Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period | ||||||||||||||||
| (4) Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period | ||||||||||||||||
| Skyward Specialty Insurance Group, Inc. Reconciliation of Non-GAAP Financial Measures |
Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.
| ($ in thousands) | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||
| Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | ||||||||||||||||||||||||
| Income as reported | $ | 40,355 | $ | 30,970 | $ | 25,016 | $ | 19,452 | $ | 87,332 | $ | 67,754 | $ | 44,738 | $ | 35,008 | |||||||||||||||
| Less (add): | |||||||||||||||||||||||||||||||
| Net investment (losses) gains | (1,825 | ) | (1,442 | ) | 5,351 | 4,227 | 6,478 | 5,118 | 6,312 | 4,986 | |||||||||||||||||||||
| Net impact of loss portfolio transfer | 241 | 190 | 462 | 365 | 482 | 381 | 704 | 556 | |||||||||||||||||||||||
| Other loss | (7 | ) | (6 | ) | — | — | (7 | ) | (6 | ) | — | — | |||||||||||||||||||
| Other expenses | (1,045 | ) | (826 | ) | (1,465 | ) | (1,157 | ) | (2,233 | ) | (1,764 | ) | (2,579 | ) | (2,037 | ) | |||||||||||||||
| Adjusted operating income | $ | 42,991 | $ | 33,054 | $ | 20,668 | $ | 16,017 | $ | 82,612 | $ | 64,025 | $ | 40,301 | $ | 31,503 | |||||||||||||||
Underwriting income – We define underwriting income as net income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.
| ($ in thousands) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Income before federal income tax expense | $ | 40,355 | $ | 25,016 | $ | 87,332 | $ | 44,738 | ||||||||
| Add: | ||||||||||||||||
| Interest expense | 2,449 | 2,466 | 5,176 | 4,618 | ||||||||||||
| Amortization expense | 360 | 486 | 748 | 873 | ||||||||||||
| Other expenses | 1,045 | 1,465 | 2,233 | 2,579 | ||||||||||||
| Less: | ||||||||||||||||
| Net investment income | 22,138 | 8,583 | 40,435 | 13,229 | ||||||||||||
| Net investment (losses) gains | (1,825 | ) | 5,351 | 6,478 | 6,312 | |||||||||||
| Other loss | (7 | ) | — | (7 | ) | — | ||||||||||
| Underwriting income | $ | 23,903 | $ | 15,499 | $ | 48,583 | $ | 33,267 | ||||||||
Adjusted Loss Ratio / Adjusted Combined Ratio – We define adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT and all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening. We use these adjusted ratios as internal performance measures in the management of our operations because we believe they give our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Our adjusted loss ratio and adjusted combined ratio should not be viewed as substitutes for our loss ratio and combined ratio, respectively.
| ($ in thousands) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net earned premiums | $ | 257,583 | $ | 194,347 | $ | 493,925 | $ | 377,178 | ||||||||
| Losses and LAE | 159,054 | 124,405 | 302,968 | 239,305 | ||||||||||||
| Add: Pre-tax net impact of LPT | (241 | ) | (462 | ) | (482 | ) | (704 | ) | ||||||||
| Adjusted losses and LAE | $ | 159,295 | $ | 124,867 | $ | 303,450 | $ | 240,009 | ||||||||
| Loss ratio | 61.7 | % | 64.0 | % | 61.3 | % | 63.4 | % | ||||||||
| Add: net impact of LPT | (0.1 | )% | (0.2 | )% | (0.1 | )% | (0.2 | )% | ||||||||
| Adjusted loss ratio | 61.8 | % | 64.2 | % | 61.4 | % | 63.6 | % | ||||||||
| Combined ratio | 90.7 | % | 92.0 | % | 90.1 | % | 91.1 | % | ||||||||
| Add: net impact of LPT | (0.1 | )% | (0.2 | )% | (0.1 | )% | (0.2 | )% | ||||||||
| Adjusted combined ratio | 90.8 | % | 92.2 | % | 90.2 | % | 91.3 | % | ||||||||
Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.
| ($ in thousands) | June 30, | December 31, | ||||||||||
| (unaudited) | 2024 | 2023 | 2023 | |||||||||
| Stockholders' equity | $ | 723,620 | $ | 522,678 | $ | 661,031 | ||||||
| Less: Goodwill and intangible assets | 87,868 | 89,181 | 88,435 | |||||||||
| Tangible stockholders' equity | $ | 635,752 | $ | 433,497 | $ | 572,596 | ||||||
| Skyward Specialty Insurance Group, Inc. Gross Written Premiums by Underwriting Division (Unaudited) | ||||||||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| ($ in thousands) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||
| Global Property & Agriculture | $ | 124,728 | $ | 124,080 | 0.5 | % | $ | 225,361 | $ | 198,420 | 13.6 | % | ||||||||||||
| Industry Solutions | 84,112 | 79,249 | 6.1 | % | 162,371 | 146,882 | 10.5 | % | ||||||||||||||||
| Captives | 62,099 | 39,283 | 58.1 | % | 130,507 | 85,363 | 52.9 | % | ||||||||||||||||
| Programs | 59,644 | 52,598 | 13.4 | % | 111,822 | 101,297 | 10.4 | % | ||||||||||||||||
| Transactional E&S | 45,711 | 30,632 | 49.2 | % | 87,906 | 60,249 | 45.9 | % | ||||||||||||||||
| Accident & Health | 44,088 | 37,252 | 18.4 | % | 84,989 | 73,265 | 16.0 | % | ||||||||||||||||
| Professional Lines | 38,106 | 32,989 | 15.5 | % | 80,345 | 66,161 | 21.4 | % | ||||||||||||||||
| Surety | 37,737 | 26,221 | 43.9 | % | 71,579 | 50,922 | 40.6 | % | ||||||||||||||||
| Total gross written premiums(1) | $ | 496,225 | $ | 422,304 | 17.5 | % | $ | 954,880 | $ | 782,559 | 22.0 | % | ||||||||||||
| (1) Excludes exited business | ||||||||||||||||||||||||
FAQ
What was Skyward Specialty Insurance Group's (SKWD) net income for Q2 2024?
How much did Skyward Specialty's (SKWD) gross written premiums increase in Q2 2024?
What was Skyward Specialty's (SKWD) combined ratio for Q2 2024?
What credit rating did AM Best assign to Skyward Specialty (SKWD) in 2024?
