Skyward Specialty Insurance Group (SKWD) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 reached $42.1 million ($1.01 per diluted share), with record adjusted operating income of $37.3 million and $28.5 million in underwriting income.

• Gross written premiums rose 16.7% year-over-year to $535.3 million, with broad-based growth across divisions, especially in Agriculture, Credit (Re) insurance, Accident & Health, Specialty Programs, Transactional E&S, and Surety.

• Book value per share increased to $21.06, up from $19.79 at year-end 2024, and annualized return on equity was 20.5%.

• Maintained an A (Excellent) financial strength rating with a stable outlook from A.M. Best.

• Portfolio diversity and nimble capital allocation enabled strong performance despite market softening in several lines.

Financial highlights

• Net earned premiums grew 27.1% year-over-year to $300.4 million; net written premiums increased 20% year-over-year.

• Combined ratio was 90.5%, including 2.2 points of catastrophe losses from Midwest storms and California wildfires.

• Non-cat loss ratio improved to 60.2%, best in company history; loss and LAE ratio rose to 62.4% due to higher catastrophe losses.

• Expense ratio improved to 28.1%, down 0.6 points year-over-year, reflecting earnings leverage.

• Net investment income rose to $19.3 million, with fixed income portfolio yield at 5.2%.

Outlook and guidance

• Management expects continued premium growth in the mid-teens, supported by strong performance in agriculture, accident & health, and specialty programs.

• Expense ratio anticipated to rise slightly but remain below 30%.

• Reinsurance strategy remains focused on capital protection and earnings stability.

• Confident in ability to deliver top quartile returns across market cycles.