Skyward Specialty Insurance Group (SKWD) Q4 2025 earnings summary

Executive summary

• Fourth quarter adjusted operating income rose 47% to $49 million, with underwriting income at $41 million, both setting all-time highs for the fourth consecutive quarter.

• Net income for Q4 2025 was $43.2M ($1.03/diluted share), up from $14.4M ($0.35/diluted share) in Q4 2024; full-year net income was $170.0M ($4.07/diluted share), up from $118.8M ($2.87/diluted share) year-over-year.

• Gross written premiums grew 13.2% in Q4 2025 to $439.5M and 24.3% for the year to $2.17B, with return on equity at 18.9% and return on tangible equity at 20.9%.

• Book value per share increased 26% year-over-year to $24.92; fully diluted book value per share was $23.87, up 5% sequentially.

• The Apollo acquisition closed January 1, expected to be accretive and expand specialty offerings, notably in Life Sciences and digital economy insurance.

Financial highlights

• Adjusted operating income for Q4 was $49 million ($1.17 per diluted share); net income was $43 million ($1.03 per diluted share).

• Net earned premiums for Q4 2025 were $356.8M, up 21.7% year-over-year; full-year net earned premiums were $1.30B, up 23.4%.

• Net investment income for Q4 2025 was $23.5M, up $2.8M year-over-year, with embedded yield at 5.3% as of December 31.

• Combined ratio improved 7.3 points year-over-year to 88.5%; loss ratio at 59.6% with net favorable prior year development.

• Stockholders' equity at year-end 2025 was $1.01B, up 5% from Q3 2025.

Outlook and guidance

• 2026 guidance remains unchanged from prior disclosure.

• Management expects continued strong positioning in specialty insurance markets, leveraging a diversified portfolio and recent capabilities.

• Expect continued strong growth in A&H and Surety; Specialty Programs growth to flatten as recent program additions are fully reflected.

• Leverage expected to rise to 28%-29% in Q1 2026 due to Apollo-related debt.

• Retention expected to remain consistent, with net/gross ratio on an upward trajectory.