Skyward Specialty Insurance Group (SKWD) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $38.8 million ($0.93 per diluted share), up from $31.0 million ($0.75 per diluted share) year-over-year; first half net income was $80.9 million, up from $67.8 million year-over-year.

• Adjusted operating income for Q2 2025 was $37.1 million ($0.89 per diluted share), with record pretax underwriting income of $31.2 million year-to-date.

• Gross written premiums grew 17.9% year-over-year to $584.9 million in Q2 2025, driven by strong performance in Agriculture, Credit, Accident & Health, Captives, and Specialty Programs.

• Combined ratio improved to 89.4%, the best in company history, reflecting disciplined underwriting and favorable business mix.

• Book value per share increased 12% since year-end to $22.23 at June 30, 2025.

Financial highlights

• Net earned premiums for Q2 2025 were $295.5 million, up 14.7% year-over-year; for the first half, $595.9 million, up 20.6%.

• Underwriting income rose to $31.2 million in Q2 2025 from $23.9 million in Q2 2024; for the first half, it was $59.7 million, up from $48.6 million.

• Net investment income for Q2 2025 was $18.6 million, down from $22.0 million year-over-year, mainly due to alternative investment losses.

• Net investment gains for Q2 2025 were $3.2 million, compared to a $1.7 million loss in Q2 2024.

• Total revenues for Q2 2025 were $319.9 million, up from $279.9 million year-over-year.

Outlook and guidance

• Management expects continued premium growth, especially in targeted specialty lines, and ongoing focus on underwriting discipline.

• Guidance for CAT losses remains at approximately two points for the full year.

• No changes to loss picks or reserving philosophy; management remains conservative, especially in volatile lines.

• The company is monitoring the impact of the One Big Beautiful Bill Act (OBBBA) and assessing its effects on future tax positions.

• Third quarter is expected to be strong, with continued focus on disciplined growth and portfolio diversification.