• Adjusted Operating Income: $0.71 per diluted share for Q3 2024; $2.26 per diluted share year-to-date, up over 50% compared to 2023.

• Net Income: $36.7 million or $0.89 per diluted share for Q3 2024, compared to $21.7 million or $0.57 per diluted share for the same period a year ago.

• Gross Written Premiums: Grew by 12.4% for Q3 2024; 19% year-to-date.

• Net Written Premiums: $268 million for Q3 2024, with a 16.5% growth excluding the impact of a canceled quota share reinsurance contract.

• Combined Ratio: 92.2% for Q3 2024; ex-cat combined ratio of 89.4%.

• Catastrophe Losses: 2.8 points on the combined ratio for Q3 2024; year-to-date cat loss ratio of 1.5 points.

• Net Investment Income: $19.5 million for Q3 2024, an increase of $6.4 million compared to the same period of 2023.

• Debt-to-Capital Ratio: 13% at the end of Q3 2024.

• Share Repurchase Program: Approved up to $50 million of Skyward ordinary shares.

• Return on Equity: Annualized 19.1% through 9 months of 2024.

• Book Value Per Share: $18.99, up 19% from the beginning of the year.

• Warning! GuruFocus has detected 5 Warning Signs with POELF.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Skyward Specialty Insurance Group Inc (NASDAQ:SKWD) reported a strong adjusted operating income of $0.71 per diluted share for Q3 2024, with a year-to-date increase of over 50% compared to 2023.

• The company achieved a 92.2% combined ratio, demonstrating effective risk management and disciplined underwriting, despite an active catastrophe quarter.

• Gross written premiums grew by 12.4% in Q3 2024, with significant contributions from transactional E&S, surety, captives, programs, and agriculture.

• Skyward Specialty Insurance Group Inc (NASDAQ:SKWD) announced a share repurchase program of up to $50 million, reflecting confidence in its financial position and commitment to shareholder value.

• The company's investment strategy yielded positive results, with net investment income increasing to $19.5 million in the quarter, driven by a higher portfolio yield and increased invested asset base.

Negative Points

• The market for certain lines, such as D&O and miscellaneous E&O, has become more competitive, impacting growth in these areas.

• Global Property market conditions have deteriorated, with increased competition leading to irresponsible pricing practices by some competitors.

• The company is cautious about loss cost inflation, particularly in Commercial Auto and bodily injury-exposed risks, which may affect growth in these segments.

• Skyward Specialty Insurance Group Inc (NASDAQ:SKWD) experienced a loss of $1.1 million in its alternative and strategic investments portfolio due to a decrease in the fair value of limited partnership investments.

• The company's Professional Lines and Industry Solutions segments saw a decline in gross premiums written, attributed to competitive pressures and strategic adjustments.