Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward
Specialty” or the “Company”) today reported second quarter 2024 net
income of $31.0 million, or $0.75 per diluted share, compared to
$19.5 million, or $0.51 per diluted share, for the same 2023
period. Net income for the first half of 2024 was $67.8 million, or
$1.65 per diluted share, compared to $35.0 million, or $0.93 per
diluted share, for the same 2023 period.
Adjusted operating income(1) for the second
quarter of 2024 was $33.1 million, or $0.80 per diluted share,
compared to $16.0 million, or $0.42 per diluted share, for the same
2023 period. Adjusted operating income(1) for the first half of
2024 was $64.0 million, or $1.56 per diluted share, compared to
$31.5 million, or $0.84 per diluted share, for the same 2023
period.
Highlights for the second quarter included:
- Gross written premiums increased 17.6%.
- Underwriting income(1) of $23.9 million compared to $15.5
million for the second quarter of 2023.
- Adjusted operating income(1) of $33.1 million compared to $16.0
million for the second quarter of 2023.
- Combined ratio of 90.7% compared to 92.0% for the second
quarter of 2023.
- Cat loss and LAE ratio of 1.2% compared to 3.5% for the second
quarter of 2023.
- Annualized return on equity of 19.6% through the first half of
2024 compared to 14.8% for the same 2023 period.
- Annualized return on tangible equity(1) of 22.4% through the
first half of 2024 compared to 18.3% for the same 2023 period.
(1) See "Reconciliation of Non-GAAP Financial
Measures"
Skyward Specialty Chairman and CEO Andrew
Robinson commented, "Our second quarter results continue the
consistently excellent performance we have produced in each of the
seven quarters reporting as a public company and our adjusted
operating income of $33.1 million was the best in Company history.
Our 90.7% combined ratio, inclusive of 1.2% of catastrophe losses,
was again excellent. Our 18% gross written premiums growth reflects
the power and sustainability of our "Rule our Niche" strategy. We
are pleased with the sources of our growth which are increasingly
coming from parts of our business that are less exposed to the
P&C cycles, including our surety, accident & health and
captives divisions and our agriculture business unit within our
global property & agriculture division. We continue to be
confident that we are well positioned to deliver attractive returns
for our shareholders and to profitably grow our Company."
"Last week's AM Best upgrade to A (Excellent)
with stable outlook is a testament to the strength of our business
model and the dedication of our team. This upgrade reflects our
ongoing commitment to delivering exceptional value to our
policyholders and shareholders."
Results of Operations
Underwriting Results
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
Three months ended June 30, |
|
Six months ended June 30, |
unaudited |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
Gross written premiums |
|
$ |
496,243 |
|
|
$ |
421,994 |
|
|
|
17.6 |
% |
|
$ |
954,863 |
|
|
$ |
782,492 |
|
|
|
22.0 |
% |
Ceded written premiums |
|
$ |
(199,114 |
) |
|
$ |
(208,257 |
) |
|
|
(4.4 |
)% |
|
$ |
(370,634 |
) |
|
$ |
(366,614 |
) |
|
|
1.1 |
% |
Net retention |
|
|
59.9 |
% |
|
|
50.6 |
% |
|
|
NM (1) |
|
|
|
61.2 |
% |
|
|
53.1 |
% |
|
|
NM (1) |
|
Net written premiums |
|
$ |
297,129 |
|
|
$ |
213,737 |
|
|
|
39.0 |
% |
|
$ |
584,229 |
|
|
$ |
415,878 |
|
|
|
40.5 |
% |
Net earned premiums |
|
$ |
257,583 |
|
|
$ |
194,347 |
|
|
|
32.5 |
% |
|
$ |
493,925 |
|
|
$ |
377,178 |
|
|
|
31.0 |
% |
(1) Not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in gross written premiums for the
second quarter and first half of 2024, when compared to the same
2023 periods, was driven by double-digit premium growth primarily
from our captives, transactional E&S and surety underwriting
divisions.
Combined Ratio |
|
Three months ended June 30, |
|
Six months ended June 30, |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Non-cat loss and LAE(1) |
|
|
60.6 |
% |
|
|
60.7 |
% |
|
|
60.6 |
% |
|
|
60.9 |
% |
Cat loss and LAE(1) |
|
|
1.2 |
% |
|
|
3.5 |
% |
|
|
0.8 |
% |
|
|
2.7 |
% |
Prior accident year development - LPT(2) |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
Loss
Ratio |
|
|
61.7 |
% |
|
|
64.0 |
% |
|
|
61.3 |
% |
|
|
63.4 |
% |
Net policy acquisition costs |
|
|
14.0 |
% |
|
|
11.9 |
% |
|
|
13.7 |
% |
|
|
11.7 |
% |
Other operating and general expenses |
|
|
15.8 |
% |
|
|
17.3 |
% |
|
|
15.9 |
% |
|
|
17.0 |
% |
Commission and fee income |
|
|
(0.8 |
)% |
|
|
(1.2 |
)% |
|
|
(0.8 |
)% |
|
|
(1.0 |
)% |
Expense
ratio |
|
|
29.0 |
% |
|
|
28.0 |
% |
|
|
28.8 |
% |
|
|
27.7 |
% |
Combined
ratio |
|
|
90.7 |
% |
|
|
92.0 |
% |
|
|
90.1 |
% |
|
|
91.1 |
% |
Adjusted Underwriting
Ratios |
|
|
|
|
|
|
|
|
Adjusted loss ratio(2) |
|
|
61.8 |
% |
|
|
64.2 |
% |
|
|
61.4 |
% |
|
|
63.6 |
% |
Expense ratio |
|
|
29.0 |
% |
|
|
28.0 |
% |
|
|
28.8 |
% |
|
|
27.7 |
% |
Adjusted combined
ratio(2) |
|
|
90.8 |
% |
|
|
92.2 |
% |
|
|
90.2 |
% |
|
|
91.3 |
% |
(1) Current accident year |
(2) See "Reconciliation of Non-GAAP Financial Measures" |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The loss ratios for the second quarter and first
half of 2024 improved 2.3 points and 2.1 points, respectively, when
compared to the same 2023 periods, driven by less severity of
convective storms.
The expense ratios for the second quarter and
first half of 2024 increased 1.0 point and 1.1 points,
respectively, when compared to the same 2023 periods driven by the
business mix shift partially offset by earnings leverage.
The expense ratios for all periods presented
exclude the impact of IPO related stock compensation and secondary
offering expenses, which are reported in other expenses in our
condensed consolidated statements of operations and comprehensive
income.
Investment Results
Net Investment Income |
|
|
|
|
|
|
|
|
$ in
thousands |
|
Three months ended June 30, |
|
Six months ended June 30, |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Short-term investments &
cash and cash equivalents |
|
$ |
4,021 |
|
|
$ |
3,206 |
|
|
$ |
9,108 |
|
|
$ |
4,985 |
|
Fixed income |
|
|
13,786 |
|
|
|
7,919 |
|
|
|
26,264 |
|
|
|
15,380 |
|
Equities |
|
|
751 |
|
|
|
684 |
|
|
|
1,378 |
|
|
|
682 |
|
Alternative & strategic
investments |
|
|
3,580 |
|
|
|
(3,226 |
) |
|
|
3,685 |
|
|
|
(7,818 |
) |
Net investment income |
|
$ |
22,138 |
|
|
$ |
8,583 |
|
|
$ |
40,435 |
|
|
$ |
13,229 |
|
Net unrealized (losses) gains
on securities still held |
|
$ |
(1,760 |
) |
|
$ |
5,017 |
|
|
$ |
7,231 |
|
|
$ |
8,784 |
|
Net realized (losses)
gains |
|
|
(65 |
) |
|
|
334 |
|
|
|
(753 |
) |
|
|
(2,472 |
) |
Net investment (losses) gains |
|
$ |
(1,825 |
) |
|
$ |
5,351 |
|
|
$ |
6,478 |
|
|
$ |
6,312 |
|
|
|
Beginning January 1, 2024 we simplified the
investment portfolio classifications to align with our strategy and
the underlying risk characteristics of the portfolio. The prior
period has been reclassified to conform to the current period
presentation.
Net investment income for the second quarter and
first half of 2024 increased $13.6 million and $27.2 million,
respectively when compared to the same 2023 periods, driven by (i)
increased income from our fixed income portfolio and short-term
investments & cash and cash equivalents due to higher yields
and larger asset bases and (ii) an increase in the fair value of
limited partnership investments in our alternative and strategic
investments portfolio.
Stockholders’ Equity
Stockholders’ equity was $723.6 million at
June 30, 2024 which represents an increase of 4.5% when
compared to stockholders' equity of $692.3 million at March 31,
2024. The increase in stockholders’ equity was primarily due to net
income.
Conference Call
At 9 a.m. central time tomorrow, August 6,
2024, Skyward Specialty management will hold a conference call to
discuss quarterly results with insurance industry analysts.
Interested parties may listen to the discussion at
investors.skywardinsurance.com under Events &
Presentations. Additionally, investors can access the earnings call
via conference call by registering via the conference link. Users
will receive dial-in information and a unique PIN to join the call
upon registering.
Non-GAAP Financial Measures
This release contains certain financial measures
and ratios that are not required by, or presented in accordance
with, generally accepted accounting principles in the United States
(“GAAP”). We refer to these measures as “non-GAAP financial
measures.” We use these non-GAAP financial measures when planning,
monitoring, and evaluating our performance.
We have chosen to exclude the net impact of the
Loss Portfolio Transfer (“LPT”), all development on reserves fully
or partially covered by the LPT and amortization of deferred gains
associated with recoveries of prior LPT reserve strengthening in
certain non-GAAP metrics, where noted, as the business subject to
the LPT is not representative of our continuing business strategy.
The business subject to the LPT is primarily related to policy
years 2017 and prior, was generated and managed under prior
leadership, and has either been exited or substantially
repositioned during the reevaluation of our portfolio. We consider
these non-GAAP financial measures to be useful metrics for our
management and investors to facilitate operating performance
comparisons from period to period. While we believe that these
non-GAAP financial measures are useful in evaluating our business,
this information should be considered supplemental in nature and is
not meant to be a substitute for revenue or net income, in each
case as recognized in accordance with GAAP. In addition, other
companies, including companies in our industry, may calculate such
measures differently, which reduces their usefulness as comparative
measures. For more information regarding these non-GAAP financial
measures and a reconciliation of such measures to comparable GAAP
financial measures, see the section entitled “Reconciliation of
Non-GAAP Financial Measures.”
About Skyward Specialty Insurance Group,
Inc.
Skyward Specialty is a rapidly growing and
innovative specialty insurance company, delivering commercial
property and casualty products and solutions on a non-admitted and
admitted basis. The Company operates through eight underwriting
divisions - Accident & Health, Captives, Global Property &
Agriculture, Industry Solutions, Professional Lines, Programs,
Surety and Transactional E&S. SKWD stock is traded on the
Nasdaq Global Select Market, which represents the top fourth of all
Nasdaq listed companies.
Skyward Specialty's subsidiary insurance
companies consist of Houston Specialty Insurance Company, Imperium
Insurance Company, Great Midwest Insurance Company, and Oklahoma
Specialty Insurance Company. These insurance companies are rated A
(Excellent) with stable outlook by A.M. Best Company. Additional
information about Skyward Specialty can be found on our website at
www.skywardinsurance.com.
Forward-Looking Statements
Except for historical information, all other
information in this news release consists of forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements are typically,
but not always, identified through use of the words "believe,"
"expect," "enable," "may," "will," "could," "intends," "estimate,"
"anticipate," "plan," "predict," "probable," "potential,"
"possible," "should," "continue," and other words of similar
meaning. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated or implied. The most significant
of these uncertainties are described in Skyward Specialty's Form
10-K, and include (but are not limited to) legislative changes at
both the state and federal level, state and federal regulatory rule
making promulgations and adjudications, class action litigation
involving the insurance industry and judicial decisions affecting
claims, policy coverages and the general costs of doing business,
the potential loss of key members of our management team or key
employees and our ability to attract and retain personnel, the
impact of competition on products and pricing, inflation in the
costs of the products and services insurance pays for, product
development, geographic spread of risk, weather and weather-related
events, other types of catastrophic events, our ability to obtain
reinsurance coverage at prices and on terms that allow us to
transfer risk and adequately protect our company against financial
loss, and losses resulting from reinsurance counterparties failing
to pay us on reinsurance claims. These forward-looking statements
speak only as of the date of this release and the Company does not
undertake any obligation to update or revise any forward-looking
information to reflect changes in assumptions, the occurrence of
unanticipated events, or otherwise.
Skyward Specialty Insurance Group, Inc.
Media contact:Haley
Doughtyhdoughty@skywardinsurance.com713-935-4944
or
Investor contact:Natalie Schoolcraft,
nschoolcraft@skywardinsurance.com614-494-4988
Skyward Specialty Insurance Group, Inc. |
Consolidated Balance Sheets |
|
|
|
($ in thousands, except share
and per share amounts) |
|
|
|
(unaudited) |
June 30, 2024 |
|
December 31,2023 |
Assets |
|
|
|
Investments: |
|
|
|
Fixed maturity securities, available-for-sale, at fair value
(amortized cost of $1,239,724 and $1,047,713, respectively) |
$ |
1,200,273 |
|
|
$ |
1,017,651 |
|
Fixed maturity securities, held-to-maturity, at amortized cost (net
of allowance for credit losses of $225 and $329, respectively) |
|
39,962 |
|
|
|
42,986 |
|
Equity securities, at fair value |
|
112,823 |
|
|
|
118,249 |
|
Mortgage loans, at fair value |
|
43,670 |
|
|
|
50,070 |
|
Equity method investments |
|
101,903 |
|
|
|
110,653 |
|
Other long-term investments |
|
2,665 |
|
|
|
3,852 |
|
Short-term investments, at fair value |
|
215,041 |
|
|
|
270,226 |
|
Total investments |
|
1,716,337 |
|
|
|
1,613,687 |
|
Cash and cash equivalents |
|
72,989 |
|
|
|
65,891 |
|
Restricted cash |
|
35,278 |
|
|
|
34,445 |
|
Premiums receivable, net |
|
377,333 |
|
|
|
179,235 |
|
Reinsurance recoverables,
net |
|
667,837 |
|
|
|
596,334 |
|
Ceded unearned premium |
|
255,138 |
|
|
|
186,121 |
|
Deferred policy acquisition
costs |
|
116,499 |
|
|
|
91,955 |
|
Deferred income taxes |
|
25,107 |
|
|
|
21,991 |
|
Goodwill and intangible
assets, net |
|
87,868 |
|
|
|
88,435 |
|
Other assets |
|
81,108 |
|
|
|
75,341 |
|
Total assets |
$ |
3,435,494 |
|
|
$ |
2,953,435 |
|
Liabilities and
stockholders’ equity |
|
|
|
Liabilities: |
|
|
|
Reserves for losses and loss adjustment expenses |
$ |
1,470,106 |
|
|
$ |
1,314,501 |
|
Unearned premiums |
|
711,854 |
|
|
|
552,532 |
|
Deferred ceding commission |
|
47,948 |
|
|
|
37,057 |
|
Reinsurance and premium payables |
|
207,638 |
|
|
|
150,156 |
|
Funds held for others |
|
95,596 |
|
|
|
58,588 |
|
Accounts payable and accrued liabilities |
|
59,796 |
|
|
|
50,880 |
|
Notes payable |
|
100,000 |
|
|
|
50,000 |
|
Subordinated debt, net of debt issuance costs |
|
18,936 |
|
|
|
78,690 |
|
Total liabilities |
|
2,711,874 |
|
|
|
2,292,404 |
|
Stockholders’ equity |
|
|
|
Common stock, $0.01 par value, 500,000,000 shares authorized,
40,096,132 and 39,863,756 shares issued and outstanding,
respectively |
|
401 |
|
|
|
399 |
|
Additional paid-in capital |
|
713,542 |
|
|
|
710,855 |
|
Stock notes receivable |
|
(5,233 |
) |
|
|
(5,562 |
) |
Accumulated other comprehensive loss |
|
(31,136 |
) |
|
|
(22,953 |
) |
Retained earnings (accumulated deficit) |
|
46,046 |
|
|
|
(21,708 |
) |
Total stockholders’ equity |
|
723,620 |
|
|
|
661,031 |
|
Total liabilities and stockholders’ equity |
$ |
3,435,494 |
|
|
$ |
2,953,435 |
|
|
|
|
|
|
|
|
|
Skyward Specialty Insurance Group, Inc. |
Condensed Consolidated Statements of Operations and
Comprehensive Income |
($ in thousands) |
|
Three months ended June 30, |
|
Six months ended June 30, |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
Net earned premiums |
|
$ |
257,583 |
|
|
$ |
194,347 |
|
|
$ |
493,925 |
|
|
$ |
377,178 |
|
Commission and fee income |
|
|
2,053 |
|
|
|
2,240 |
|
|
|
4,079 |
|
|
|
3,732 |
|
Net investment income |
|
|
22,138 |
|
|
|
8,583 |
|
|
|
40,435 |
|
|
|
13,229 |
|
Net investment (losses) gains |
|
|
(1,825 |
) |
|
|
5,351 |
|
|
|
6,478 |
|
|
|
6,312 |
|
Other loss |
|
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
Total revenues |
|
|
279,942 |
|
|
|
210,521 |
|
|
|
544,910 |
|
|
|
400,451 |
|
Expenses: |
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
|
159,054 |
|
|
|
124,405 |
|
|
|
302,968 |
|
|
|
239,305 |
|
Underwriting, acquisition and insurance expenses |
|
|
76,679 |
|
|
|
56,683 |
|
|
|
146,453 |
|
|
|
108,338 |
|
Interest expense |
|
|
2,449 |
|
|
|
2,466 |
|
|
|
5,176 |
|
|
|
4,618 |
|
Amortization expense |
|
|
360 |
|
|
|
486 |
|
|
|
748 |
|
|
|
873 |
|
Other expenses |
|
|
1,045 |
|
|
|
1,465 |
|
|
|
2,233 |
|
|
|
2,579 |
|
Total expenses |
|
|
239,587 |
|
|
|
185,505 |
|
|
|
457,578 |
|
|
|
355,713 |
|
Income before income
taxes |
|
|
40,355 |
|
|
|
25,016 |
|
|
|
87,332 |
|
|
|
44,738 |
|
Income tax expense |
|
|
9,385 |
|
|
|
5,564 |
|
|
|
19,578 |
|
|
|
9,730 |
|
Net
income |
|
|
30,970 |
|
|
|
19,452 |
|
|
|
67,754 |
|
|
|
35,008 |
|
Net income attributable to
participating securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,402 |
|
Net income attributable to
common stockholders |
|
$ |
30,970 |
|
|
$ |
19,452 |
|
|
$ |
67,754 |
|
|
$ |
33,606 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
30,970 |
|
|
$ |
19,452 |
|
|
$ |
67,754 |
|
|
$ |
35,008 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
Unrealized gains and losses on investments: |
|
|
|
|
|
|
|
|
Net change in unrealized (losses) gains on investments, net of
tax |
|
|
(1,451 |
) |
|
|
(4,375 |
) |
|
|
(6,869 |
) |
|
|
3,413 |
|
Reclassification adjustment for losses on securities no longer
held, net of tax |
|
|
(406 |
) |
|
|
(1,165 |
) |
|
|
(1,314 |
) |
|
|
(1,212 |
) |
Total other comprehensive (loss) income |
|
|
(1,857 |
) |
|
|
(5,540 |
) |
|
|
(8,183 |
) |
|
|
2,201 |
|
Comprehensive
income |
|
$ |
29,113 |
|
|
$ |
13,912 |
|
|
$ |
59,571 |
|
|
$ |
37,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skyward Specialty Insurance Group, Inc. |
|
|
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
|
|
|
($ in thousands, except share
and per share amounts) |
|
Three months ended June 30, |
|
Six months ended June 30, |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares |
|
|
39,177,457 |
|
|
|
36,603,779 |
|
|
|
39,142,825 |
|
|
|
34,746,874 |
|
Weighted average diluted
shares |
|
|
41,168,082 |
|
|
|
38,143,585 |
|
|
|
41,110,384 |
|
|
|
37,503,914 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.79 |
|
|
$ |
0.53 |
|
|
$ |
1.73 |
|
|
$ |
0.97 |
|
Diluted earnings per
share |
|
$ |
0.75 |
|
|
$ |
0.51 |
|
|
$ |
1.65 |
|
|
$ |
0.93 |
|
Basic adjusted operating
earnings per share |
|
$ |
0.84 |
|
|
$ |
0.44 |
|
|
$ |
1.64 |
|
|
$ |
0.87 |
|
Diluted adjusted operating
earnings per share |
|
$ |
0.80 |
|
|
$ |
0.42 |
|
|
$ |
1.56 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
Annualized ROE (1) |
|
|
17.5 |
% |
|
|
15.1 |
% |
|
|
19.6 |
% |
|
|
14.8 |
% |
Annualized adjusted ROE
(2) |
|
|
18.7 |
% |
|
|
12.4 |
% |
|
|
18.5 |
% |
|
|
13.3 |
% |
Annualized ROTE (3) |
|
|
20.0 |
% |
|
|
18.3 |
% |
|
|
22.4 |
% |
|
|
18.3 |
% |
Annualized adjusted ROTE (4) |
|
|
21.3 |
% |
|
|
15.1 |
% |
|
|
21.2 |
% |
|
|
16.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
|
December 31 |
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
|
|
|
|
40,096,132 |
|
|
|
39,863,756 |
|
Fully diluted shares
outstanding |
|
|
|
|
|
|
41,945,532 |
|
|
|
41,771,854 |
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
|
|
|
|
$ |
18.18 |
|
|
$ |
16.72 |
|
Fully diluted book value per
share |
|
|
|
|
|
$ |
17.38 |
|
|
$ |
15.96 |
|
Fully
diluted tangible book value per share |
|
|
|
|
|
$ |
15.28 |
|
|
$ |
13.84 |
|
|
|
|
|
|
|
|
|
|
(1)
Annualized ROE is net income expressed on an annualized basis as a
percentage of average beginning and ending stockholders' equity
during the period |
(2) Annualized
adjusted ROE is adjusted operating income expressed on an
annualized basis as a percentage of average beginning and ending
stockholders' equity during the period |
(3) Annualized
ROTE is net income expressed on an annualized basis as a percentage
of average beginning and ending tangible stockholders' equity
during the period |
(4)
Annualized adjusted ROTE is adjusted operating income expressed on
an annualized basis as a percentage of average beginning and ending
tangible stockholders' equity during the period |
|
Skyward Specialty Insurance Group, Inc. Reconciliation of
Non-GAAP Financial Measures |
|
Adjusted operating income – We
define adjusted operating income as net income excluding the impact
of certain items that may not be indicative of underlying business
trends, operating results, or future outlook, net of tax impact. We
use adjusted operating income as an internal performance measure in
the management of our operations because we believe it gives our
management and other users of our financial information useful
insight into our results of operations and our underlying business
performance. Adjusted operating income should not be viewed as a
substitute for net income calculated in accordance with GAAP, and
other companies may define adjusted operating income
differently.
($ in thousands) |
Three months ended June 30, |
|
Six months ended June 30, |
(unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Pre-tax |
|
After-tax |
|
Pre-tax |
|
After-tax |
|
Pre-tax |
|
After-tax |
|
Pre-tax |
|
After-tax |
Income as reported |
$ |
40,355 |
|
|
$ |
30,970 |
|
|
$ |
25,016 |
|
|
$ |
19,452 |
|
|
$ |
87,332 |
|
|
$ |
67,754 |
|
|
$ |
44,738 |
|
|
$ |
35,008 |
|
Less (add): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (losses) gains |
|
(1,825 |
) |
|
|
(1,442 |
) |
|
|
5,351 |
|
|
|
4,227 |
|
|
|
6,478 |
|
|
|
5,118 |
|
|
|
6,312 |
|
|
|
4,986 |
|
Net impact of loss portfolio transfer |
|
241 |
|
|
|
190 |
|
|
|
462 |
|
|
|
365 |
|
|
|
482 |
|
|
|
381 |
|
|
|
704 |
|
|
|
556 |
|
Other loss |
|
(7 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
Other expenses |
|
(1,045 |
) |
|
|
(826 |
) |
|
|
(1,465 |
) |
|
|
(1,157 |
) |
|
|
(2,233 |
) |
|
|
(1,764 |
) |
|
|
(2,579 |
) |
|
|
(2,037 |
) |
Adjusted operating
income |
$ |
42,991 |
|
|
$ |
33,054 |
|
|
$ |
20,668 |
|
|
$ |
16,017 |
|
|
$ |
82,612 |
|
|
$ |
64,025 |
|
|
$ |
40,301 |
|
|
$ |
31,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income – We define
underwriting income as net income before income taxes excluding net
investment income, net realized and unrealized gains and losses on
investments, impairment charges, interest expense, amortization
expense and other income and expenses. Underwriting income
represents the pre-tax profitability of our underwriting operations
and allows us to evaluate our underwriting performance without
regard to investment income. We use this metric as we believe it
gives our management and other users of our financial information
useful insight into our underlying business performance.
Underwriting income should not be viewed as a substitute for
pre-tax income calculated in accordance with GAAP, and other
companies may define underwriting income differently.
($ in thousands) |
|
Three months ended June 30, |
|
Six months ended June 30, |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Income before federal income
tax expense |
|
$ |
40,355 |
|
|
$ |
25,016 |
|
|
$ |
87,332 |
|
|
$ |
44,738 |
|
Add: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
2,449 |
|
|
|
2,466 |
|
|
|
5,176 |
|
|
|
4,618 |
|
Amortization expense |
|
|
360 |
|
|
|
486 |
|
|
|
748 |
|
|
|
873 |
|
Other expenses |
|
|
1,045 |
|
|
|
1,465 |
|
|
|
2,233 |
|
|
|
2,579 |
|
Less: |
|
|
|
|
|
|
|
|
Net investment income |
|
|
22,138 |
|
|
|
8,583 |
|
|
|
40,435 |
|
|
|
13,229 |
|
Net investment (losses) gains |
|
|
(1,825 |
) |
|
|
5,351 |
|
|
|
6,478 |
|
|
|
6,312 |
|
Other loss |
|
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
Underwriting
income |
|
$ |
23,903 |
|
|
$ |
15,499 |
|
|
$ |
48,583 |
|
|
$ |
33,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Loss Ratio / Adjusted Combined
Ratio – We define adjusted loss ratio and adjusted
combined ratio as the corresponding ratio (calculated in accordance
with GAAP), excluding losses and LAE related to the LPT and all
development on reserves fully or partially covered by the LPT and
amortization of deferred gains associated with recoveries of prior
LPT reserve strengthening. We use these adjusted ratios as internal
performance measures in the management of our operations because we
believe they give our management and other users of our financial
information useful insight into our results of operations and our
underlying business performance. Our adjusted loss ratio and
adjusted combined ratio should not be viewed as substitutes for our
loss ratio and combined ratio, respectively.
($ in thousands) |
|
Three months ended June 30, |
|
Six months ended June 30, |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net earned premiums |
|
$ |
257,583 |
|
|
$ |
194,347 |
|
|
$ |
493,925 |
|
|
$ |
377,178 |
|
|
|
|
|
|
|
|
|
|
Losses and LAE |
|
|
159,054 |
|
|
|
124,405 |
|
|
|
302,968 |
|
|
|
239,305 |
|
Add: Pre-tax net impact of
LPT |
|
|
(241 |
) |
|
|
(462 |
) |
|
|
(482 |
) |
|
|
(704 |
) |
Adjusted losses and LAE |
|
$ |
159,295 |
|
|
$ |
124,867 |
|
|
$ |
303,450 |
|
|
$ |
240,009 |
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
|
61.7 |
% |
|
|
64.0 |
% |
|
|
61.3 |
% |
|
|
63.4 |
% |
Add: net impact of LPT |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
Adjusted loss
ratio |
|
|
61.8 |
% |
|
|
64.2 |
% |
|
|
61.4 |
% |
|
|
63.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
90.7 |
% |
|
|
92.0 |
% |
|
|
90.1 |
% |
|
|
91.1 |
% |
Add: net impact of LPT |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
Adjusted combined
ratio |
|
|
90.8 |
% |
|
|
92.2 |
% |
|
|
90.2 |
% |
|
|
91.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Stockholders’ Equity –
We define tangible stockholders’ equity as stockholders’ equity
less goodwill and intangible assets. Our definition of tangible
stockholders’ equity may not be comparable to that of other
companies and should not be viewed as a substitute for
stockholders’ equity calculated in accordance with GAAP. We use
tangible stockholders’ equity internally to evaluate the strength
of our balance sheet and to compare returns relative to this
measure.
($ in thousands) |
|
June 30, |
|
December 31, |
(unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Stockholders' equity |
|
$ |
723,620 |
|
|
$ |
522,678 |
|
|
$ |
661,031 |
|
Less: Goodwill and intangible
assets |
|
|
87,868 |
|
|
|
89,181 |
|
|
|
88,435 |
|
Tangible stockholders'
equity |
|
$ |
635,752 |
|
|
$ |
433,497 |
|
|
$ |
572,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skyward Specialty Insurance Group, Inc.
Gross Written Premiums by Underwriting Division
(Unaudited) |
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
($ in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
Global Property & Agriculture |
|
$ |
124,728 |
|
|
$ |
124,080 |
|
|
|
0.5 |
% |
|
$ |
225,361 |
|
|
$ |
198,420 |
|
|
|
13.6 |
% |
Industry Solutions |
|
|
84,112 |
|
|
|
79,249 |
|
|
|
6.1 |
% |
|
|
162,371 |
|
|
|
146,882 |
|
|
|
10.5 |
% |
Captives |
|
|
62,099 |
|
|
|
39,283 |
|
|
|
58.1 |
% |
|
|
130,507 |
|
|
|
85,363 |
|
|
|
52.9 |
% |
Programs |
|
|
59,644 |
|
|
|
52,598 |
|
|
|
13.4 |
% |
|
|
111,822 |
|
|
|
101,297 |
|
|
|
10.4 |
% |
Transactional E&S |
|
|
45,711 |
|
|
|
30,632 |
|
|
|
49.2 |
% |
|
|
87,906 |
|
|
|
60,249 |
|
|
|
45.9 |
% |
Accident & Health |
|
|
44,088 |
|
|
|
37,252 |
|
|
|
18.4 |
% |
|
|
84,989 |
|
|
|
73,265 |
|
|
|
16.0 |
% |
Professional Lines |
|
|
38,106 |
|
|
|
32,989 |
|
|
|
15.5 |
% |
|
|
80,345 |
|
|
|
66,161 |
|
|
|
21.4 |
% |
Surety |
|
|
37,737 |
|
|
|
26,221 |
|
|
|
43.9 |
% |
|
|
71,579 |
|
|
|
50,922 |
|
|
|
40.6 |
% |
Total gross written premiums(1) |
|
$ |
496,225 |
|
|
$ |
422,304 |
|
|
|
17.5 |
% |
|
$ |
954,880 |
|
|
$ |
782,559 |
|
|
|
22.0 |
% |
(1) Excludes exited
business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skyward Specialty Insura... (NASDAQ:SKWD)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
Skyward Specialty Insura... (NASDAQ:SKWD)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024