Skyward Specialty Insurance Group (SKWD) Q4 2024 earnings summary

Executive summary

• Adjusted operating income for Q4 was $0.80 per diluted share, with full-year adjusted operating income up 28% year-over-year to $2.87 per share; full-year adjusted operating income was $126.7M ($3.06), up from $80.8M ($2.11).

• Book value per share increased 18% to $19.79 as of December 31, 2024, and full-year ROE was 16.3%.

• Gross written premiums grew 21% in Q4 and 19% for the year, reaching $388.4M in Q4 and $1.74B for the year, with strong contributions from Surety, Programs, Captives, Transactional E&S, and Agriculture.

• Strategic focus on less P&C cycle-exposed segments, with 42% of Q4 gross written premiums from A&H, Surety, Captives, Mortgage, Credit, and Agriculture.

• Net income for Q4 2024 was $14.4M ($0.35/diluted share), down from $29.3M ($0.74) in Q4 2023; full-year net income rose to $118.8M ($2.87) from $86.0M ($2.24) year-over-year.

Financial highlights

• Q4 adjusted operating income: $33.2M ($0.80/share); net income: $14.4M ($0.35/share).

• Full-year adjusted operating income: $126.7M, up 57% over prior year.

• Net written premiums up 23% for the year; retention improved to 64.5% from 62.4%.

• Net earned premiums for Q4 2024 were $293.2M, up 30.4% year-over-year; full-year net earned premiums were $1.06B, up 27.4%.

• Net investment income for Q4: $20.7M; full-year: $80.7M, up $40M year-over-year.

Outlook and guidance

• 2025 guidance: net income of $138M–$150M, combined ratio of 91%–92% (including 2–2.5 pts CAT losses), and gross written premium growth in the low to mid-teens.

• Continued focus on high-return, less cycle-exposed segments and disciplined underwriting.

• Management expressed confidence in the foundation built for continued growth in 2025 and beyond, citing successful diversification and new product launches in 2024.