Skyward Specialty Insurance Group (SKWD) Q1 2026 earnings summary

Executive summary

• The first quarter of 2026 marked the initial reporting as a combined entity following the Apollo acquisition, expanding into Lloyd's specialty insurance and reinsurance markets and integrating global operations.

• Gross written premiums increased 9.9% to $667.7 million, with managed premiums up 19.6% to $967.7 million, driven by organic growth and Apollo integration.

• Net income rose to $49.7 million, with diluted operating EPS up 39% to $1.25 and annualized operating ROE at 20.3%.

• Book value per share increased 10% sequentially to $27.50, and 31% year-over-year.

• Combined ratio improved to 89.5% (87.7% ex-catastrophe), reflecting underwriting discipline and integration benefits.

Financial highlights

• Net earned premiums grew 44.5% to $434.0 million, and total revenues reached $475.9 million, up 45% year-over-year.

• Operating income reached $56.8 million, underwriting income totaled $52 million, and net investment income was $27.1 million, up from $19.4 million, driven by Apollo acquisition.

• Stockholders’ equity ended at $1.22 billion, up 21.3%, with tangible equity at $817.1 million.

• Financial leverage was 28% post-Apollo acquisition, with interest expense rising to $7.7 million due to new borrowings.

• Book value per share rose to $27.50, up from $24.92 at year-end 2025.

Outlook and guidance

• 2026 guidance remains unchanged, with management expecting continued double-digit earnings growth from portfolio diversification and new fee-based income streams.

• Growth initiatives include proprietary insurance for autonomous vehicles, life sciences products, and new reinsurance syndicates.

• Guidance on expense ratio remains sub-30%, with ongoing investment in technology and AI.

• Integration of Apollo is expected to further enhance global specialty insurance capabilities and leverage Lloyd's platform.