Skyward Specialty Insurance Group (SKWD) Q1 2026 earnings summary

Executive summary

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

• Gross written premiums increased 24.8% year-over-year to $667.7 million, driven by organic growth and the Apollo acquisition.

• Net income for Q1 2026 was $49.7 million ($1.09 per diluted share), up 18.2% year-over-year.

• Diluted operating EPS rose 39% to $1.25, with annualized operating ROE at 20.3% and book value per share up 10% to $27.50.

• Several growth initiatives launched, including partnerships in autonomous vehicle insurance, life sciences, and the launch of Apollo’s internal reinsurance syndicate.

Financial highlights

• Net earned premiums grew 44.5% to $434.0 million compared to Q1 2025.

• Underwriting income totaled $52 million, with a combined ratio of 89.5% (87.7% ex-catastrophe losses).

• Net investment income was $27.1 million, up from $19.4 million year-over-year, driven by a larger asset base post-Apollo acquisition.

• Stockholders’ equity rose to $1.22 billion, mainly due to Apollo-related stock issuance; book value per share increased to $27.50.

• Annualized return on equity was 17.8%; annualized operating return on tangible equity reached 26.2%.

Outlook and guidance

• 2026 guidance remains unchanged, with management expecting continued double-digit earnings growth from Apollo integration and portfolio diversification.

• Growth in A&H, Credit and Surety, and Ag expected to remain strong, with over 50% of business considered cycle-resistant.

• Focus remains on disciplined underwriting, expense control, and capitalizing on specialty market opportunities.

• Management remains confident in achieving or exceeding guidance, with a track record of surpassing consensus.