Skyward Specialty Insurance Group (SKWD) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 results with $44M operating income, $38.2M underwriting income, $45.9M net income, 89.2% combined ratio, and 51.6%–52% gross written premium growth, led by agriculture and credit (re)insurance.

• Earnings grew over 40% year-over-year, with annualized ROE of 19.7% and book value per share up 20% to $23.75.

• Five of nine divisions grew by over 25%, led by the agriculture unit, while global property and construction saw declines.

• Disciplined underwriting and selective market participation amid rising P&C competition.

• Entered agreements to acquire Apollo Group Holdings for $555M, with closing expected in Q1 2026, funded by cash, stock, and new debt.

Financial highlights

• Adjusted operating income: $44M ($1.05/diluted share); net income: $45.9M ($1.10/diluted share); net earned premiums: $351.8M, up 30.5% year-over-year.

• Gross written premiums up 51.6%–52% year-over-year; net written premiums up 64%.

• Combined ratio improved to 89.2%; loss ratio at 60.8% (down from 63.3%); expense ratio at 28.4% (down from 28.9%).

• Net investment income for Q3 2025 was $22.2M, up $2.7M sequentially, driven by higher fixed income yields.

• Book value per share increased to $23.75 at September 30, 2025; stockholders' equity reached $961.4M.

Outlook and guidance

• Apollo acquisition expected to close in Q1 2026, with anticipated synergies and expanded operations; guidance on 2026 financials expected in early December.

• Management remains confident in continued growth, though quarterly results may be uneven due to renewal cycles.

• No material impact from recent U.S. tax legislation expected on future effective tax rates.