NASDAQ$SKWD

Skyward Specialty Insurance Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Skyward Specialty reported its fourth quarter and full-year 2024 financial results, showing increased net income and gross written premiums.

Skyward Specialty reported a net income of $14.4 million for Q4 2024, with gross written premiums increasing by 20.8% to $388.4 million. The company achieved an adjusted combined ratio of 91.6% and a book value per share of $19.79, up 18% from the previous year.

  • Gross written premiums increased by 20.8% to $388.4 million in Q4 2024 compared to Q4 2023.
  • Net income for Q4 2024 was $14.4 million, or $0.35 per diluted share.
  • Adjusted operating income for Q4 2024 was $33.2 million, or $0.80 per diluted share.
  • The adjusted combined ratio for Q4 2024 was 91.6%, including catastrophe losses of 2.2 points.

Headline financials

Total Revenue

$304M

Previous: $246M+23.6%
EPS (adj)

$0.80

Previous: $0.61+31.1%
Gross Written Premiums

$388M

No prior period
Net Written Premiums

$271M

No prior period
Net Investment Income

$20.7M

No prior period
Combined Ratio

95.8%

No prior period
Ex-Cat Combined Ratio

93.6%

No prior period
Loss Ratio

66.9%

No prior period
Expense Ratio

28.9%

No prior period
Underwriting Income

$12.2M

No prior period
Book Value Per Share

$19.79

No prior period
Tangible Stockholders' Equity

$707M

No prior period
Capital Expenditures

-$1.08M

Previous: $3.11M-134.6%
Net Income

$14.4M

Previous: $29.3M-50.8%
Operating Income

$33.2M

No prior period

Revenue & EPS history

Skyward Specialty · Revenue · Quarterly

$304M

Q4 2024+23.6%vs Q4 2023
Beat estimate in 4 of 13 quarters(31%)
ActualEstimate

Forward guidance

The company did not provide specific forward-looking guidance in this release, but expressed confidence in its foundation for 2025 and beyond.

Tailwinds

  • Continued thoughtful diversification of product portfolio.
  • Strategic launch of new units including Media Liability, Life Sciences, Mortgage and Credit, and Renewable Energy.
  • Focus on disciplined execution of the 'Rule Our Niche' strategy.
  • Confidence in the foundation built to propel growth in 2025 and beyond.
  • Strong underwriting results and premium growth expected to continue.

Headwinds

  • No specific negative forward guidance was provided in the report.
  • Potential impact of legislative changes at state and federal levels.
  • Regulatory rule making promulgations and adjudications could affect operations.
  • Class action litigation involving the insurance industry and judicial decisions affecting claims.
  • Inflation in the costs of products and services insurance pays for.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.8%

Avg return

Earnings day

+3.7%

Avg return

5 days after

+6.9%

Avg return

30 days after

65%

11 / 17 earnings

Positive

+9.5%

Q1 2023

Best reaction

-4.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-1.5%+4.7%
Q4 2025-4.5%-1.5%-8.3%
Q3 2025+1.5%+1.9%+8.8%
Q1 2025+9.2%+9.9%+18.3%
Q4 2024-0.8%+5.3%+2.3%
Q3 2024-3.0%-4.7%+17.1%
Q2 2024-3.6%-8.5%+2.0%
Q1 2024+2.4%+7.7%+6.9%
Q4 2023+0.0%+3.5%+7.8%
Q3 2022-1.5%+3.8%+6.4%
Q3 2023+9.3%+9.3%+17.4%
Q2 2023+2.1%+3.8%-0.9%
Q1 2022+2.5%+1.2%+0.0%
Q1 2023+9.5%+12.2%+10.9%
Q2 2022+4.1%+8.1%+6.6%
Q4 2021+4.1%+8.1%+6.6%
Q4 2022+1.2%+4.9%+11.5%
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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