HOUSTON, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) ("Skyward Group" or the "Company") today reported second quarter 2026 results.
Summary Financial
Data
-------------- ------------ -------------- --------------
($ in thousands,
except per share
amounts) Three months ended June 30, Six months ended June 30,
----------------------------
unaudited 2026 2025(1) 2026 2025(1)
-------------- ------------ -------------- --------------
Managed Premiums $1,058,675 $900,849 $2,026,384 $1,710,234
Gross written
premiums(2) $ 740,554 $653,861 $1,408,258 $1,248,431
Fee generating
gross written
premiums(2) $ 318,121 $246,988 $ 618,126 $ 461,803
Net written
premiums $ 485,616 $339,213 $ 918,499 $ 682,484
Net income $ 49,038 $ 38,839 $ 98,769 $ 80,897
Net operating
income(3) $ 59,198 $ 37,496 $ 116,091 $ 75,233
Basic earnings
per share $ 1.10 $ 0.96 $ 2.22 $ 2.01
Diluted operating
earnings per
share $ 1.30 $ 0.89 $ 2.55 $ 1.78
Annualized ROE
(4) 15.7% 17.7% 17.3% 19.1%
Annualized
operating ROE
(5) 19.0% 17.1% 20.4% 17.8%
(1) Select second quarter 2025 metrics for the Skyward
Group and Apollo are presented on a pro forma basis
for comparative purposes only and are not necessarily
indicative of the operating results that Skyward Group
would have recognized had the acquisition actually
been completed on January 1, 2025. Pro forma information
is unaudited
(2) Prior year pro forma gross written premiums are
adjusted for the impact of the change in participations.
See "Reconciliation of Non-GAAP Financial Measures".
(3) See "Reconciliation of Non-GAAP Financial Measures"
(4) Annualized ROE is net income expressed on an annualized
basis as a percentage of average beginning and ending
stockholders' equity during the period.
(5) Annualized operating ROE is operating income expressed
on an annualized basis as a percentage of average
beginning and ending stockholders' equity during the
period.
Highlights for the second quarter included:
-- Managed premiums increased 17.5%(2) compared to 2025;
-- Gross written premiums increased 13.3%(1)(2) compared to 2025;
-- Combined ratio of 89.5%;
-- Ex-Cat combined ratio of 87.6%;
-- Repurchased 223 thousand shares of common stock for $9.7 million and
expanded the share repurchase authorization from $50 million to $100
million;
-- Annualized return on equity(4) and annualized operating return on
equity(5) of 17.3% and 20.4%, respectively, for the six months ended
June 30, 2026; and,
-- Book value per share of $28.55, an increase of 14.6% compared to December
31, 2025.
Skyward Group Chairman and CEO Andrew Robinson commented, "We delivered another quarter of excellent results reflecting the strength, resilience and earnings power of our Rule Our Niche strategy, our uniquely diversified business portfolio, and disciplined execution. Diluted operating earnings per share of $1.30 increased 46% year over year, and our annualized operating return on equity of 20.4% for the first half of the year underscores our continued strong returns and outstanding earnings growth. Our combined ratio of 89.5%, inclusive of 1.9 points of catastrophe losses, again demonstrates the quality of our underwriting and disciplined risk management. Gross written premiums grew 13% and fee generating premiums grew 29% to $318 million in the quarter. Book value per share increased to $28.55 during the quarter. We believe we are exceptionally well positioned to continue to deliver top quartile results and long-term value for shareholders."
Results of Operations
Gross Written Premiums By Underwriting Division
($ in thousands) Three months ended June 30, Six months ended June 30,
-------------------------------- ----------------------------------
2026 2025 % Change 2026 2025 % Change
--------- --------- ---------- ---------- ---------- ----------
Skyward Specialty
Segment
Accident &
Health $ 95,456 $ 60,489 57.8% $ 187,465 $ 123,658 51.6%
Captives 64,251 76,994 (16.6)% 122,165 143,923 (15.1)%
Credit &
Surety 63,759 55,131 15.6% 127,933 100,159 27.7%
Energy
Solutions 62,690 74,822 (16.2)% 111,556 150,416 (25.8)%
Global
Agriculture 111,939 57,179 95.8% 214,291 137,796 55.5%
Global
Property 71,109 83,992 (15.3)% 105,626 130,678 (19.2)%
Professional
Lines 34,978 37,555 (6.9)% 71,206 77,772 (8.4)%
Specialty
Programs 111,441 85,955 29.7% 206,208 148,630 38.7%
Transactional
E&S 52,296 53,461 (2.2)% 102,360 105,467 (2.9)%
------- ------- --------- ---------
Total
continuing
business $667,919 $585,578 14.1% 1,248,810 1,118,499 11.7%
Exited
business (146) (664) (78.0)% 767 1,741 (55.9)%
------- ------- --------- ---------
Total
Skyward
Specialty
Segment
gross
written
premiums $667,773 $584,914 14.2% 1,249,577 1,120,240 11.5%
------- ------- --------- ---------
Apollo
Segment(1)(2)
Syndicate 1969 59,431 55,207 7.7% 124,439 99,059 25.6%
Syndicate 1971 13,350 13,740 (2.8)% 34,242 29,132 17.5%
------- ------- --------- ---------
Total
Apollo
Segment
gross
written
premiums 72,781 68,947 5.6% 158,681 128,191 23.8%
------- ------- --------- ---------
Total gross
written
premiums(1)(2) $740,554 $653,861 13.3% $1,408,258 $1,248,431 12.8%
======= ======= ========= =========
(1) Prior year information is pro forma.
(2) Prior year information is adjusted for the impact
of the change in participations. See "Reconciliation
of Non-GAAP Financial Measures".
Managed Premiums
Apollo provides managing agency services to nine syndicates within its Lloyd's platform. The capital-aligned syndicates, Syndicate 1969, Syndicate 1971 and Syndicate 1972, are wholly managed and partly capitalized by Apollo with Apollo retaining a portion of the underwriting risk via its Lloyd's Corporate Member, Apollo No. 16. Platform Partner syndicates are managed by Apollo on behalf of third--party partners and Apollo does not currently provide capital for underwriting of these syndicates. Apollo receives managing agency fees and performance--based income for their managing agency services from all syndicates on its Lloyd's platform.
($ in thousands) Three months ended June 30, Six months ended June 30,
-------------------------------- ----------------------------------
2026 2025 % Change 2026 2025 % Change
---------- -------- ---------- ---------- ---------- ----------
Total gross
written
premiums(1)(2) $ 740,554 $653,861 13.3% $1,408,258 $1,248,431 12.8%
Fee generating
gross written
premiums(1)(2) :
Aligned
Syndicates 217,196 191,527 13.4% 427,745 347,630 23.0%
Partner
Syndicates 100,925 55,461 82.0% 190,381 114,173 66.7%
--------- ------- --------- ---------
Total fee
generating gross
written
premiums $ 318,121 $246,988 28.8% $ 618,126 $ 461,803 33.9%
--------- ------- --------- ---------
Total Skyward
Group managed
premiums $1,058,675 $900,849 17.5% $2,026,384 $1,710,234 18.5%
========= ======= ========= =========
(1) Prior year information is pro forma.
(2) Prior year information is adjusted for the impact
of the change in participations. See "Reconciliation
of Non-GAAP Financial Measures".
Underwriting Results
($ in thousands) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026
------------------------------------------------------ -------------------------------------------------------
Skyward Skyward
Specialty Apollo Corporate Total Specialty Apollo Corporate Total
------------ ----------- ------------- ------------ ------------ ------------ ------------- ------------
Revenues:
Net earned
premiums $378,346 $66,126 $ -- $444,472 $742,289 $136,190 $ -- $878,479
Underwriting
fee income -- 12,588 -- 12,588 -- 22,666 -- 22,666
Commission and
fee income 2,334 -- -- 2,334 3,861 -- -- 3,861
------- ------ ----- ------- ------- ------- ----- -------
Total
revenues 380,680 78,714 -- 459,394 746,150 158,856 -- 905,006
------- ------ ----- ------- ------- ------- ----- -------
Expenses:
Losses and
loss
adjustment
expenses 236,967 39,774 -- 276,741 465,198 76,766 -- 541,964
Underwriting,
acquisition
and insurance
expenses 94,131 24,778 4,372 123,281 191,094 47,520 9,281 247,895
Fee--based
service
expenses -- 4,562 -- 4,562 -- 8,732 -- 8,732
------- ------ ----- ------- ------- ------- ----- -------
Total
expenses 331,098 69,114 4,372 404,584 656,292 133,018 9,281 798,591
------- ------ ----- ------- ------- ------- ----- -------
Underwriting
Income $ 49,582 $ 9,600 $ -- $ 54,810 $ 89,858 $ 25,838 $ -- $106,415
======= ====== ===== ======= ======= ======= ===== =======
Combined Ratio
Non-cat loss
and LAE 61.3% 54.7% --% 60.4% 61.0% 53.8% --% 59.8%
Cat loss and
LAE 1.3% 5.4% --% 1.9% 1.7% 2.6% --% 1.9%
------- ------ ----- ------- ------- ------- ----- -------
Loss Ratio 62.6% 60.1% --% 62.3% 62.7% 56.4% --% 61.7%
------- ------ ----- ------- ------- ------- ----- -------
Net policy
acquisition
costs 14.0% 27.6% --% 16.0% 14.0% 19.7% --% 14.8%
Other
operating and
general
expenses 10.9% 9.9% --% 10.7% 11.7% 15.2% --% 12.3%
Commission and
fee income (0.6)% --% --% (0.5)% (0.5)% --% --% (0.4)%
Corporate
expenses(1) --% --% 1.0% 1.0% --% --% 1.1% 1.1%
------- ------ ----- ------- ------- ------- ----- -------
Expense ratio 24.3% 37.5% 1.0% 27.2% 25.2% 34.9% 1.1% 27.8%
------- ------ ----- ------- ------- ------- ----- -------
Combined ratio 86.9% 97.6% --% 89.5% 87.9% 91.3% --% 89.5%
------- ------ ----- ------- ------- ------- ----- -------
Ex-Cat Combined
Ratio 85.6% 92.2% --% 87.6% 86.2% 88.7% --% 87.6%
======= ====== ===== ======= ======= ======= ===== =======
(1) Calculated using consolidated net earned premiums
----------------------------------------------------------------------------------------------------------------------------------
($ in thousands) Three Months Ended June 30, 2025 Six Months Ended June 30, 2025
----------------------------------------- -----------------------------------------
Skyward Skyward
Specialty Corporate Total Specialty Corporate Total
------------ ------------- ------------ ------------ ------------- ------------
Revenues:
Net earned
premiums $295,542 $ -- $295,542 $595,908 $ -- $595,908
Commission and
fee income 2,560 -- 2,560 4,536 -- 4,536
------- ----- ------- ------- ----- -------
Total
revenues 298,102 -- 298,102 600,444 -- 600,444
------- ----- ------- ------- ----- -------
Expenses:
Losses and
loss
adjustment
expenses 181,262 -- 181,262 368,571 -- 368,571
Underwriting,
acquisition
and insurance
expenses 82,366 3,230 85,596 165,004 7,143 172,147
------- ----- ------- ------- ----- -------
Total
expenses 263,628 3,230 266,858 533,575 7,143 547,200
------- ----- ------- ------- ----- -------
Underwriting
Income $ 34,474 $ -- $ 31,244 $ 66,869 $ -- $ 59,726
======= ===== ======= ======= ===== =======
Combined Ratio
Non-cat loss
and LAE 59.9% --% 59.9% 60.1% --% 60.1%
Cat loss and
LAE 1.4% --% 1.4% 1.8% --% 1.8%
------- ----- ------- ------- ----- -------
Loss Ratio 61.3% --% 61.3% 61.9% --% 61.9%
------- ----- ------- ------- ----- -------
Net policy
acquisition
costs 15.1% --% 15.1% 15.0% --% 15.0%
Other
operating and
general
expenses 12.8% --% 12.8% 12.7% --% 12.7%
Commission and
fee income (0.9)% --% (0.9)% (0.8)% --% (0.8)%
Corporate
expenses(1) --% 1.1% 1.1% --% 1.2% 1.2%
------- ----- ------- ------- ----- -------
Expense ratio 27.0% 1.1% 28.1% 26.9% 1.2% 28.1%
------- ----- ------- ------- ----- -------
Combined ratio 88.3% --% 89.4% 88.8% --% 90.0%
------- ----- ------- ------- ----- -------
Ex-Cat Combined
Ratio 86.9% --% 88.0% 87.0% --% 88.2%
======= ===== ======= ======= ===== =======
(1) Calculated using consolidated net earned premiums
-------------------------------------------------------------------------------------------------------
The Skyward Specialty segment loss and LAE ratios for the second quarter and first half of 2026 increased 1.3 points and 0.8 points, respectively, when compared to the same 2025 periods primarily due to shifts in business mix driven by growth in the accident & health and global agriculture divisions. The Apollo segment loss and LAE ratios for the second quarter and first half of 2026 were impacted by catastrophe losses, primarily from the conflict in the Middle East.
The expense ratios for the second quarter and first half of 2026 improved 0.9 points and 0.3 points, respectively, when compared to the same 2025 periods. The Skyward Specialty segment's expense ratio improved 2.7 points and 1.7 points, respectively, when compared to the same 2025 periods, primarily driven by business mix shift, enhanced operating efficiencies, and scale benefits as net earned premiums outpaced expense growth. In the first quarter of 2026, the Company revised its expense presentation to report corporate expenses separately from segment expenses following the closing of the Apollo acquisition. The prior year period has been recast to reflect this change.
Investment Results
Net Investment
Income
-------- -------- -------------- ----------
Three months ended
$ in thousands June 30, Six months ended June 30,
------------------ --------------------------
(unaudited) 2026 2025 2026 2025
-------- -------- -------------- ----------
Short-term
investments $ 2,469 $ 3,713 $ 4,957 $ 6,914
Cash and cash
equivalents $ 2,583 $ 976 4,242 $ 1,900
Fixed income 29,310 17,822 56,675 34,552
Alternative &
strategic
investments (3,635) (3,807) (8,092) (5,240)
------ ------ ------ ------
Net
investment
income $30,727 $18,704 $ 57,782 $38,126
====== ====== ====== ======
Net unrealized
gains
(losses) on
securities
still held $ 1,927 $(3,181) $ 3,702 $ 2,310
Net realized
(losses)
gains (2,528) 6,271 (1,118) 7,530
------ ------ ------ ------
Net
investment
(losses)
gains $ (601) $ 3,090 $ 2,584 $ 9,840
====== ====== ====== ======
In the first quarter of 2026, the Company revised its presentation of net investment income to (i) report short-term investments separately from cash and cash equivalents following the closing of the Apollo acquisition, and (ii) include equities in alternative & strategic investments after the sale of the majority of the equity portfolio in 2025. The prior year period has been recast to reflect this change.
Net investment income for the second quarter and first half of 2026 increased $12.0 million and $19.7 million, respectively, when compared to the same 2025 periods, driven by the addition of the Apollo portfolio, a higher yield and a larger asset base. The increase in income from cash and cash equivalents was due to an overall increase in the invested asset base from the addition of Apollo when compared to the same 2025 periods.
The alternative & strategic investments portfolio continued to be impacted by the decline in the fair value of limited partnership investments.
Stockholders' Equity
Stockholders' equity was $1,267.5 million at June 30, 2026 which represented an increase of 3.5% when compared to stockholders' equity of $1,224.9 million at March 31, 2026. The increase in stockholders' equity was primarily attributable to net income, partially offset by repurchases of the Company's common stock.
Conference Call
At 9:00 a.m. eastern time tomorrow, August 5, 2026, Company 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 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 Group is the holding company brand for its U.S. and U.K. businesses, Skyward Specialty Insurance Group, Inc.$(R)$ and Apollo, respectively, delivering a comprehensive suite of specialized insurance solutions across global specialty property and casualty markets. Focused on the specialty industry's most niche, complex risks of today and the emerging challenges of tomorrow, Skyward Group leverages the forward-looking insight and disciplined execution of each organization to drive sustainable growth and long-term value for its shareholders, distribution partners, and other stakeholders.
For more information about Skyward Group, Skyward Specialty and Apollo, please visit skywardgroup.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 Group'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.
Investor Contact
Jordan Arnold
Skyward Specialty Insurance Group
346-215-0250
jarnold@skywardinsurance.com
Media Contact
Haley Doughty
Skyward Specialty Insurance Group
713-935-4944
hdoughty@skywardinsurance.com
Skyward Specialty Insurance Group, Inc.
Consolidated Balance Sheets
($ in thousands, except share and
per share amounts)
June 30,
(unaudited) 2026 December 31, 2025
----------- ---------------------
Assets
Investments:
Fixed maturity securities,
available-for-sale, at fair value
(net of allowance for credit
losses of $6,228 and $7,000,
respectively) (amortized cost of
$2,206,626 and $1,848,755,
respectively) $2,192,183 $ 1,856,303
Fixed maturity securities,
held-to-maturity, at amortized
cost (net of allowance for credit
losses of $2,256 and $468,
respectively) 28,192 32,822
Equity securities, at fair value 1,141 1,174
Mortgage loans, at fair value 9,218 9,902
Equity method investments 62,725 77,365
Other long-term investments 52,295 58,650
Short-term investments, at fair
value 392,634 264,299
--------- ---------------
Total investments 2,738,388 2,300,515
Cash and cash equivalents 219,221 168,544
Restricted cash 83,302 30,570
Funds at Lloyd's 121,630 2,509
Options, at fair value 40,535 34,857
Premiums and commissions
receivable, net 978,409 544,217
Reinsurance recoverables, net 1,411,648 1,119,880
Ceded unearned premium 337,180 238,948
Deferred policy acquisition costs
and VOBA 186,491 136,100
Deferred tax assets 47,987 27,865
Goodwill and intangible assets,
net 471,185 88,040
Other assets 145,163 99,807
--------- ---------------
Total assets $6,781,139 $ 4,791,852
========= ===============
Liabilities and stockholders' equity
Liabilities:
Reserves for losses and loss
adjustment expenses $3,070,598 $ 2,318,894
Unearned premiums 1,078,246 774,035
Deferred ceding commission 54,466 46,453
Reinsurance and premium payables 509,081 279,888
Funds held for others 169,051 128,003
Deferred tax liabilities 67,801 --
Accounts payable and accrued
liabilities 127,154 115,034
Notes payable 417,620 100,411
Subordinated debt, net of debt
issuance costs 19,585 19,569
--------- ---------------
Total liabilities 5,513,602 3,782,287
--------- ---------------
Stockholders' equity
Common stock, $0.01 par value,
500,000,000 shares authorized,
44,827,499 shares issued and
44,396,493 shares outstanding at
June 30, 2026; 40,511,222 shares
issued and outstanding at
December 31, 2025 448 405
Treasury stock, at cost, 431,006
and 0 shares, respectively (19,427) --
Additional paid-in capital 927,690 730,555
Accumulated other comprehensive
(loss) income (7,091) 11,457
Retained earnings 365,917 267,148
--------- ---------------
Total stockholders' equity 1,267,537 1,009,565
--------- ---------------
Total liabilities and
stockholders' equity $6,781,139 $ 4,791,852
========= ===============
Condensed Consolidated Statements of Operations and
Comprehensive Income
Three months ended June
($ in thousands) 30, Six months ended June 30,
----------------------- -------------------------
(unaudited) 2026 2025 2026 2025
------------ --------- ------------ -----------
Revenues:
Net earned premiums $444,472 $295,542 $878,479 $595,908
Underwriting fee
income 12,588 -- 22,666 --
Commission and fee
income 2,334 2,560 3,861 4,536
Net investment
income 30,727 18,704 57,782 38,126
Net investment
(losses) gains (601) 3,090 2,584 9,840
Other income 13 7 28 20
------- ------- ------- -------
Total revenues 489,533 319,903 965,400 648,430
------- ------- ------- -------
Expenses:
Losses and loss
adjustment
expenses 276,741 181,262 541,964 368,571
Underwriting,
acquisition and
insurance
expenses 123,281 85,596 247,895 172,147
Fee--based service
expenses 4,562 -- 8,732 --
Interest expense 8,812 1,876 16,531 3,710
Amortization
expense 8,843 372 17,686 709
Other expenses 3,737 1,002 6,959 2,063
------- ------- ------- -------
Total expenses 425,976 270,108 839,767 547,200
------- ------- ------- -------
Income before income
taxes 63,557 49,795 125,633 101,230
Income tax expense 14,519 10,956 26,864 20,333
------- ------- ------- -------
Net income $ 49,038 $ 38,839 $ 98,769 $ 80,897
======= ======= ======= =======
Comprehensive income:
Net income $ 49,038 $ 38,839 $ 98,769 $ 80,897
------- ------- ------- -------
Other comprehensive
income:
Unrealized gains
and losses on
investments:
Net change in
unrealized
(losses) gains
on investments,
net of tax (625) 11,005 (17,842) 23,260
Reclassification
adjustment for
(losses) gains
on securities no
longer held, net
of tax (490) (3,624) 12 (3,806)
Foreign currency
translation
adjustment 150 -- (718) --
------- ------- ------- -------
Total other
comprehensive (loss)
income (965) 7,381 (18,548) 19,454
------- ------- ------- -------
Comprehensive income $ 48,073 $ 46,220 $ 80,221 $100,351
======= ======= ======= =======
Share and Per
Share Data
($ in thousands,
except share and
per share
amounts) Three months ended June 30, Six months ended June 30,
-------------------------------- --------------------------------
(unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
Weighted average
basic shares 44,521,162 40,445,391 44,492,608 40,322,051
Weighted average
diluted shares 45,692,641 41,871,496 45,526,233 41,771,215
Basic earnings
per share $ 1.10 $ 0.96 $ 2.22 $ 2.01
Diluted earnings
per share $ 1.07 $ 0.93 $ 2.17 $ 1.94
Basic operating
earnings per
share $ 1.33 $ 0.92 $ 2.61 $ 1.85
Diluted operating
earnings per
share $ 1.30 $ 0.89 $ 2.55 $ 1.78
Annualized ROE
(1) 15.7% 17.7% 17.3% 19.1%
Annualized
operating ROE
(2) 19.0% 17.1% 20.4% 17.8%
Annualized ROTE
(3) 23.4% 19.7% 22.2% 21.3%
Annualized
operating ROTE
(4) 28.2% 19.0% 26.0% 19.8%
----------------- ---------- ---------- ---------- ----------
June 30, December 31,
2026 2025
--------------- ---------------
Shares
outstanding 44,396,493 40,511,222
Fully diluted
shares
outstanding 46,605,142 42,292,371
Book value per
share $ 28.55 $ 24.92
Fully diluted
book value per
share $ 27.20 $ 23.87
----------------- --------------- --------------- ---------- ----------
(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 operating ROE is 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 operating ROTE is 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
Operating income -- We define 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 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. Operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define operating income differently.
($ in thousands) Three months ended June 30, Six months ended June 30,
-------------------------------------------- ----------------------------------------------
(unaudited) 2026 2025 2026 2025
--------------------- --------------------- -------------------- ------------------------
Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax
-------- ----------- -------- ----------- --------- --------- --------- -------------
Income as
reported $63,557 $ 49,038 $49,795 $ 38,839 $125,633 $ 98,769 $101,230 $ 80,897
Less (add):
Net investment
(losses)
gains (601) (464) 3,090 2,410 2,584 2,031 9,840 7,864
Amortization
expense (8,843) (6,823) (372) (290) (17,686) (13,904) (709) (567)
Other income 13 10 7 5 28 22 20 16
Other expenses (3,737) (2,883) (1,002) (782) (6,959) (5,471) (2,063) (1,649)
------ ------ ------ ------ ------- ------- ------- ------
Operating income $76,725 $ 59,198 $48,072 $ 37,496 $147,666 $116,091 $ 94,142 $ 75,233
====== ====== ====== ====== ======= ======= ======= ======
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.
Three months ended Six months ended
($ in thousands) June 30, June 30,
-------------------- --------------------
(unaudited) 2026 2025 2026 2025
----------- ------- -------- ----------
Income before
income taxes $63,557 $49,795 $125,633 $101,230
Add:
Interest
expense 8,812 1,876 16,531 3,710
Amortization
expense 8,843 372 17,686 709
Other expenses 3,737 1,002 6,959 2,063
Less:
Net investment
income 30,727 18,704 57,782 38,126
Net investment
(losses)
gains (601) 3,090 2,584 9,840
Other income 13 7 28 20
------ ------ ------- -------
Underwriting
income $54,810 $31,244 $106,415 $ 59,726
====== ====== ======= =======
Tangible Stockholders' Equity -- We define tangible stockholders' equity as stockholders' equity excluding goodwill and intangible assets and the related deferred tax impact. 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) 2026 2025 2025
-------- ----------------
Stockholders' equity $1,267,537 $899,915 $ 1,009,565
Less: Goodwill and
intangible assets 471,185 88,795 88,040
Add: Deferred tax impact 65,500 -- --
--------- ------- ----------
Tangible stockholders'
equity $ 861,852 $811,120 $ 921,525
========= ======= ==========
Adjusted pro forma gross written premiums -- We define adjusted pro forma gross written premiums as pro forma gross written premiums adjusted for the impact of changes in Apollo syndicate participation. We use this measure to evaluate premium growth trends on a consistent participation basis across periods. Adjusted pro forma gross written premiums is a non-GAAP financial measure and should not be considered a substitute for gross written premiums calculated in accordance with GAAP.
$ in thousands Three months ended June 30, 2025
-------------------------------------------------
Total Total
Syndicate Syndicate Apollo Skyward
1969 1971 Segment Group
--------- ----------- ----------- ------------
Pro forma gross
written
premiums $ 65,854 $ 10,337 $76,191 $661,105
Impact of the
change in
participations (10,647) 3,403 (7,244) (7,244)
------- ------- ------ -------
Adjusted pro
forma gross
written
premiums $ 55,207 $ 13,740 $68,947 $653,861
======= ======= ====== =======
$ in thousands Six months ended June 30, 2025
---------------------------------------------------
Syndicate Syndicate Total Apollo Total Skyward
1969 1971 Segment Group
--------- ----------- ------------ -------------
Pro forma gross
written
premiums $119,303 $ 29,278 $148,581 $1,268,821
Impact of the
change in
participations (20,244) (146) (20,390) (20,390)
------- ------ ------- ---------
Adjusted pro
forma gross
written
premiums $ 99,059 $ 29,132 $128,191 $1,248,431
======= ====== ======= =========
Adjusted pro forma fee generating gross written premiums -- We define adjusted pro forma fee generating gross written premiums as pro forma fee generating gross written premiums adjusted for the impact of changes in Apollo syndicate participation percentages. We believe this measure provides a more meaningful comparison of fee generating business on a consistent participation basis across periods. Adjusted pro forma fee generating gross written premiums is a non-GAAP financial measure and may not be comparable to similarly titled measures used by other companies.
$ in thousands Three months ended June 30, 2025
---------------------------------------------------
Aligned Syndicates Partner Syndicates Total
------------------ ------------------- ----------
Pro forma fee
generating
gross written
premiums $ 184,283 $ 55,461 $239,744
Impact of the
change in
participations 7,244 N/A 7,244
--- ------------- ------------------- -------
Adjusted pro
forma fee
generating
gross written
premiums $ 191,527 $ 55,461 $246,988
=== ============= === ============== =======
$ in thousands Six months ended June 30, 2025
-------------------------------------------------
Aligned
Syndicates Partner Syndicates Total
----------------- ------------------ ----------
Pro forma fee
generating gross
written
premiums $ 327,240 $ 114,173 $441,413
Impact of the
change in
participation(s) 20,390 N/A 20,390
--- ------------ ------------------ -------
Adjusted pro
forma fee
generating gross
written
premiums $ 347,630 $ 114,173 $461,803
=== ============ === ============= =======