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 per share), up from $80.8M ($2.11).

• Book value per share increased 18% to $19.79 as of December 31, 2024, and return on equity was 16.3% for the year.

• 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.

• Six of eight divisions achieved double-digit growth, with Surety and Captives leading at over 43% annual growth.

• The company continues to shift its portfolio toward less P&C cycle-exposed segments, now representing 42% of Q4 gross written premiums.

Financial highlights

• Q4 adjusted operating income was $33.2 million ($0.80 per diluted share); net income was $14.4 million ($0.35 per share), down from $29.3 million ($0.74) in Q4 2023.

• Full-year adjusted operating income rose 57% to $126.7 million; full-year net income was $118.8 million ($2.87 per share), up from $86.0 million ($2.24).

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

• Adjusted combined ratio for Q4 was 91.6% (including 2.2 points of CAT losses); full-year adjusted combined ratio was 91.2%.

• Net investment income for Q4 was $20.7 million and $80.7 million for the year, doubling from $40.3 million in 2023.

Outlook and guidance

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

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

• Continued focus on growth in high-return, less cycle-exposed areas such as A&H, Surety, Captives, Mortgage, Credit, and Agriculture.