Skyward Specialty Insurance Group (SKWD) investor relations material

Deal rationale and strategic fit

• Acquisition expands specialty insurance portfolio, focusing on niche markets and leveraging technology and talent to deliver top-tier underwriting returns across cycles.

• Adds new specialty niches such as sharing economy, autonomy, and electrification, and enhances advanced technology capabilities.

• Entry into Lloyd’s market provides access to unique classes like political risk and violence, and enhances global licensing and credit rating capabilities.

• Strong cultural and strategic alignment, with both organizations sharing an entrepreneurial approach and commitment to innovation.

Financial terms and conditions

• Purchase price is $555 million: $371 million in cash and $184 million in stock, with stock valued at $50.00 per share and 3,679,332 shares to be issued.

• Cash portion funded through committed debt financing; strategic shareholders and employees will roll substantial equity.

• Valuation is less than 9x 2025 estimated EBITDA; double-digit operating EPS accretion expected in the first full year post-closing.

• Apollo’s shareholder equity at closing estimated between $180 million and $200 million.

Synergies and expected cost savings

• Combination will diversify earnings with fee-based income and maintain a capital-light model, providing flexibility for future growth.

• Adds over $1.5 billion of managed premium, reinforcing market position.

• Opportunities identified for value creation include establishing a U.S. platform for iBot, leveraging Lloyd’s network, and optimizing investment portfolios.