Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Group” or the “Company”), reported fourth quarter 2025 net income of $43.2 million, or $1.03 per diluted share, compared to $14.4 million, or $0.35 per diluted share, for the same 2024 period. Net income for the year ended 2025 was $170.0 million, or $4.07 per diluted share, compared to $118.8 million, or $2.87 per diluted share, for the same 2024 period.
Adjusted operating income(1) for the fourth quarter of 2025 was $48.9 million, or $1.17 per diluted share, compared to $33.2 million, or $0.80 per diluted share, for the same 2024 period. Adjusted operating income(1) for the year ended 2025 was $167.4 million, or $4.00 per diluted share, compared to $126.6 million, or $3.06 per diluted share, for the same 2024 period.
Highlights for the fourth quarter included:
- Gross written premiums of $439.5 million, an increase of 13.2% compared to 2024;
- Combined ratio of 88.5%;
- Ex-Cat combined ratio of 87.7%;
- Return on equity of 18.9% for the year ended December 31, 2025; and,
- Book value per share of $24.92, an increase of 26% compared to December 31, 2024.
| (1) See “Reconciliation of Non-GAAP Financial Measures” |
Skyward Group Chairman and CEO Andrew Robinson commented, “The fourth quarter was another excellent quarter and capped off a truly transformational year for the Company. Similar to the previous three quarters, we delivered Company bests in adjusted operating income(1), underwriting income(1) and the combined ratio of 88.5%. Our gross written premiums growth in the quarter of 13% culminated a year of 24% growth, and our return on equity and return on tangible equity of 18.9% and 20.9%(1) respectively for the full year are simply outstanding.”
“Our focus and disciplined execution of our ‘Rule Our Niche’ strategy, underscored by the strength of our intentionally built, diversified portfolio, where nearly half of our business is in non-cycle exposed lines, positions us particularly well given the evolving property and casualty market backdrop. As we look forward, together with additional capabilities and the outstanding Apollo team, we are extremely well-positioned as a Company to continue to build and maintain winning positions across the specialty insurance market and generate top quartile returns and long-term, sustainable shareholder value.”
Results of Operations
Underwriting Results
| Premiums | ||||||||||||||||||||||
| ($ in thousands) | Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||||||||
| unaudited | 2025 | 2024 | % Change |
2025 | 2024 | % Change |
||||||||||||||||
| Gross written premiums | $ | 439,487 | $ | 388,355 | 13.2 | % | $ | 2,166,236 | $ | 1,743,232 | 24.3 | % | ||||||||||
| Ceded written premiums | $ | (156,906 | ) | $ | (117,328 | ) | 33.7 | % | $ | (760,004 | ) | $ | (619,654 | ) | 22.6 | % | ||||||
| Net retention | 64.3 | % | 69.8 | % | NM | (1) | 64.9 | % | 64.5 | % | NM | (1) | ||||||||||
| Net written premiums | $ | 282,581 | $ | 271,027 | 4.3 | % | $ | 1,406,232 | $ | 1,123,578 | 25.2 | % | ||||||||||
| Net earned premiums | $ | 356,800 | $ | 293,240 | 21.7 | % | $ | 1,304,505 | $ | 1,056,722 | 23.4 | % | ||||||||||
| (1) Not meaningful | ||||||||||||||||||||||
The increase in gross written premiums for the fourth quarter, compared to the same period in 2024, was primarily driven by growth in accident & health, specialty programs and surety, while the year‑over‑year increase for 2025 was driven by these divisions, as well as the agriculture and credit (re)insurance division.
| Combined Ratio | Three months ended December 31, | Twelve months ended December 31, | ||||||||||
| (unaudited) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Non-cat loss and LAE | 60.9 | % | 60.5 | % | 60.3 | % | 60.6 | % | ||||
| Cat loss and LAE(1) | 0.8 | % | 2.2 | % | 1.2 | % | 1.7 | % | ||||
| Prior accident year development(2) | (2.1 | )% |
4.2 | % | (0.6 | )% |
1.1 | % | ||||
| Loss Ratio | 59.6 | % | 66.9 | % | 60.9 | % | 63.4 | % | ||||
| Net policy acquisition costs | 16.0 | % | 15.3 | % | 15.0 | % | 14.2 | % | ||||
| Other operating and general expenses | 13.0 | % | 13.9 | % | 13.9 | % | 15.3 | % | ||||
| Commission and fee income | (0.1 | )% |
(0.3 | )% | (0.5 | )% |
(0.6 | )% | ||||
| Expense ratio | 28.9 | % | 28.9 | % | 28.4 | % | 28.9 | % | ||||
| Combined ratio | 88.5 | % | 95.8 | % | 89.3 | % | 92.3 | % | ||||
| Ex-Cat Combined Ratio(3) | 87.7 | % | 93.6 | % | 88.1 | % | 90.6 | % | ||||
| (1) Current accident year | ||||||||||||
| (2) Prior accident year development for the fourth quarter and year-ended 2024 was due to the net impact of the LPT.. | ||||||||||||
| (3) Defined as the combined ratio excluding cat loss and LAE(1) | ||||||||||||
The loss ratios for the fourth quarter and year ended 2025 improved 7.3 points and 2.5 points, respectively, when compared to the same 2024 periods. The quarter and year ended 2025 benefited from (i) favorable prior accident year development compared to adverse development in the same 2024 periods, and (ii) less catastrophe losses when compared to the same 2024 periods.
The expense ratios for the fourth quarter and year ended 2025 were flat and improved 0.5 points, respectively, when compared to the same 2024 periods due to earnings leverage offset by higher acquisition costs due to the business mix shift.
Investment Results
| Net Investment Income | ||||||||||||||||
| $ in thousands | Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
| (unaudited) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Short-term investments & cash and cash equivalents | $ | 3,132 | $ | 3,998 | $ | 15,877 | $ | 17,643 | ||||||||
| Fixed income | 22,530 | 15,909 | 77,888 | 57,631 | ||||||||||||
| Equities | 59 | 771 | 1,380 | 2,745 | ||||||||||||
| Alternative & strategic investments | (2,209 | ) | 56 | (11,526 | ) | 2,581 | ||||||||||
| Net investment income | $ | 23,512 | $ | 20,734 | $ | 83,619 | $ | 80,600 | ||||||||
| Net unrealized (losses) gains on securities still held | $ | 5,122 | $ | (7,688 | ) | $ | (1,555 | ) | $ | 7,921 | ||||||
| Net realized gains | 107 | (2,725 | ) | 23,704 | (1,579 | ) | ||||||||||
| Net investment gains (losses) | $ | 5,229 | $ | (10,413 | ) | $ | 22,149 | $ | 6,342 | |||||||
Net investment income for the fourth quarter and year ended 2025 increased $2.8 million and $3.0 million, respectively when compared to the same 2024 periods, driven by increased income from our fixed income portfolio due to a higher yield and larger asset base.
The alternative & strategic investments portfolio continued to be impacted by the decline in the fair value of limited partnership investments. The decreases in income from the short-term investments & cash and cash equivalents was due to an overall decrease in yields when compared to the same 2024 periods. The decrease in income from equities was due to the sale of the equity portfolio in the third quarter of 2025.
Stockholders’ Equity
Stockholders’ equity was $1,009.6 million at December 31, 2025 which represented an increase of 5.0% when compared to stockholders' equity of $961.4 million at September 30, 2025. The increase in stockholders’ equity was primarily due to net income and an increase in the market value of our investment portfolio.
