Skyward Specialty Insurance Group (SKWD) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $31 million ($0.75 per diluted share), up from $19.5 million ($0.51) in Q2 2023; adjusted operating income reached $33.1 million ($0.80 per share), more than double the prior year.

• Gross written premiums grew 17.6% year-over-year in Q2 2024 to $496.2 million, with strong contributions from captives, transactional E&S, and surety divisions.

• Combined ratio improved to 90.7% from 92.0% in Q2 2023, reflecting better underwriting performance.

• AM Best upgraded the company’s financial strength rating to A (Excellent) with a stable outlook as of August 1, 2024.

• Book value per share increased to $18.06 at June 30, 2024, up from $16.59 at December 31, 2023.

Financial highlights

• Net investment income for Q2 2024 was $22.1 million, up from $8.6 million in Q2 2023, driven by higher yields and larger asset bases.

• Net earned premiums for Q2 2024 were $257.6 million, up from $194.3 million in Q2 2023.

• Underwriting income for Q2 2024 was $23.9 million, up from $15.5 million in Q2 2023.

• Stockholders’ equity increased to $723.6 million at June 30, 2024, up 4.5% from March 31, 2024.

• Total assets as of June 30, 2024 were $3.44 billion, up from $2.95 billion at year-end 2023.

Outlook and guidance

• Management expects continued premium growth and attractive shareholder returns, especially in less P&C cycle-exposed divisions such as captives, transactional E&S, and surety.

• The AM Best rating upgrade is expected to support ongoing business momentum.

• Focus remains on underwriting discipline and capital strength amid evolving market conditions.