Document

2024年10月29日，Skyward Specialty Insurance Group, Inc.（納斯達克：SKWD）（"Skyward Specialty"或"公司"）今天報告，2024年第三季度凈利潤為3670萬美元，每股稀釋後為0.89美元，較2023年同期的2170萬美元，每股稀釋後為0.57美元有所增長。2024年前九個月的凈利潤為10440萬美元，每股稀釋後為2.53美元，較2023年同期的5670萬美元，每股稀釋後為1.50美元有所增長。

至於我們的第三季度，我們的業績反映了我們持續卓越地執行"佔據我們的市場"策略，以及我們的紀律核保和戰略風險管理。我們調整後的營業收入較上一年同期增長了近18%，延續著我們作為一家上市公司每個季度交付強勁盈利增長的趨勢，迄今為止的年化股本回報率為19.1%，表現優秀。我們在上一年同期的毛保費增長了12.4%，同時繼續增加我們業務的比例，使其更少受財產和意外循環的影響。考慮到對我們業務的投資、某些部門中的動力增長以及對市場背景的充分考量，我確信我們已做好準備，在未來幾個季度展望看向前方時，我們將能夠提供強勁增長。


保險費
（以千為單位的美元）	截至9月30日的三個月内，						截至九月三十日止九個月，
未經審計	2024		2023		% 變化		2024		2023		% 變化










已收保費	$	400,014	$	355,732	12.4%		$	1,354,877	$	1,138,224	19.0%
已轉分保費	$	(131,692)	$	(75,036)	75.5%		$	(502,326)	$	(441,650)	13.7%
淨保留率	67.1%		78.9%		未公布 (1)		62.9%		61.2%		未公布 (1)
净已收保費	$	268,322	$	280,696	(4.4)	%	$	852,551	$	696,574	22.4%
保險淨保費	$	269,557	$	227,033	18.7	%	$	763,482	$	604,211	26.4%
(1) 無實義


綜合比率	截至9月30日的三個月内，				截至九月三十日止九個月，
（未經審計）	2024		2023		2024		2023
其他非貓損失和后續賠款(1)	60.6	%	60.7	%	60.6	%	60.9	%
貓損失和后續賠款(1)	2.8%		0.4	%	1.5	%	1.8	%

以前事故年度發展 - LPT(2)	(0.1)	%	(0.1)%		(0.1)	%	(0.2)%
損失比率	63.3	%	61.0	%	62.0	%	62.5	%
網路政策取得成本	13.9	%	15.0	%	13.9	%	13.0	%
其他營運和一般支出	15.7	%	15.1	%	15.8	%	16.3	%
佣金和費用收入	(0.7)	%	(0.9)	%	(0.8)	%	(1.0)	%
費用比率	28.9	%	29.2	%	28.9	%	28.3	%
綜合比率	92.2	%	90.2	%	90.9	%	90.8	%
不計災害綜合比率(3)	89.4	%	89.8	%	89.4	%	89.0	%

調整保險經營比率
調整損失比率(2)	63.4	%	61.1	%	62.1	%	62.7	%
費用比率	28.9	%	29.2	%	28.9	%	28.3	%
調整後綜合比率(2)	92.3	%	90.3	%	91.0	%	91.0	%
(1) 當期事故年度
(2) 查看“調和非GAAP財務指標”
(3) 定義為不包括災害損失和賠款費用的綜合比率(1)


投資淨收益
以千元計算的資產	截至9月30日的三個月内，				截至九月三十日止九個月，
（未經審計）	2024		2023		2024		2023
短期投資及現金及現金等價物	$	4,537	$	3,022	$	13,645	$	8,007
固收	15,458		9,488		41,722		24,867
股票	596		650		1,974		1,332
替代性和策略性投資	(1,070)		(71)		2,615		(7,888)
淨投資收入	$	19,521	$	13,089	$	59,956	$	26,318
尚持有證券的未實現損益	$	8,378	$	(6,391)	$	15,609	$	2,394
實現淨收益	1,809		3,407		1,056		934
凈投資收益（損失）	$	10,187	$	(2,984)	$	16,665	$	3,328

Skyward Specialty Chairman and CEO Andrew Robinson commented, “The share repurchase program allows Skyward to opportunistically deploy our capital in an accretive fashion and ultimately drive long-term value creation for our shareholders. Given our strong cash position and financing flexibility, the repurchase program will not limit our ability to support our near-term growth or our flexibility to support ongoing investment in the key growth areas of our business, or to capture additional value creating opportunities.”

The shares may be repurchased from time to time in open market purchases, privately-negotiated transactions, block purchases, accelerated share repurchase agreements or a combination of methods and pursuant to safe harbors provided by Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by the Company in its discretion. The stock repurchase program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time.

At 9:30 a.m. eastern time tomorrow, October 30, 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.

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.”

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.

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.


Consolidated Balance Sheets
($ in thousands, except share and per share amounts)
(unaudited)	September 30, 2024		December 31, 2023
Assets
Investments:
Fixed maturity securities, available-for-sale, at fair value (amortized cost of $1,359,700 and $1,047,713, respectively)	$	1,357,500	$	1,017,651
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $239 and $329, respectively)	39,321		42,986
Equity securities, at fair value	124,719		118,249
Mortgage loans, at fair value	36,267		50,070
Equity method investments	102,111		110,653
Other long-term investments	23,802		3,852
Short-term investments, at fair value	206,358		270,226
Total investments	1,890,078		1,613,687
Cash and cash equivalents	105,573		65,891
Restricted cash	45,783		34,445
Premiums receivable, net	327,176		179,235
Reinsurance recoverables, net	686,725		596,334
Ceded unearned premium	236,962		186,121
Deferred policy acquisition costs	119,910		91,955
Deferred income taxes	18,502		21,991
Goodwill and intangible assets, net	87,607		88,435
Other assets	80,547		75,341
Total assets	$	3,598,863	$	2,953,435
Liabilities and stockholders’ equity
Liabilities:
Reserves for losses and loss adjustment expenses	$	1,568,777	$	1,314,501
Unearned premiums	692,452		552,532
Deferred ceding commission	44,984		37,057
Reinsurance and premium payables	200,967		150,156
Funds held for others	102,219		58,588
Accounts payable and accrued liabilities	73,001		50,880
Notes payable	100,000		50,000
Subordinated debt, net of debt issuance costs	18,956		78,690
Total liabilities	2,801,356		2,292,404
Stockholders’ equity

Common stock, $0.01 par value, 500,000,000 shares authorized, 40,099,931 and 39,863,756 shares issued and outstanding, respectively	401		399

Additional paid-in capital	716,095		710,855
Stock notes receivable	—		(5,562)
Accumulated other comprehensive loss	(1,703)		(22,953)
Retained earnings (accumulated deficit)	82,714		(21,708)
Total stockholders’ equity	797,507		661,031
Total liabilities and stockholders’ equity	$	3,598,863	$	2,953,435


Condensed Consolidated Statements of Operations and Comprehensive Income
($ in thousands)	Three months ended September 30,				Nine months ended September 30,
(unaudited)	2024		2023		2024		2023

Revenues:
Net earned premiums	$	269,557	$	227,033	$	763,482	$	604,211
Commission and fee income	1,818		2,085		5,897		5,817
Net investment income	19,521		13,089		59,956		26,318
Net investment gains (losses)	10,187		(2,984)		16,665		3,328

Other loss	(195)		—		(202)		—
Total revenues	300,888		239,223		845,798		639,674
Expenses:
Losses and loss adjustment expenses	170,521		138,536		473,489		377,841
Underwriting, acquisition and insurance expenses	79,817		68,315		226,270		176,653

Interest expense	2,229		2,632		7,405		7,250
Amortization expense	351		463		1,099		1,336
Other expenses	1,117		1,482		3,350		4,061
Total expenses	254,035		211,428		711,613		567,141
Income before income taxes	46,853		27,795		134,185		72,533
Income tax expense	10,185		6,084		29,763		15,814
Net income	36,668		21,711		104,422		56,719
Net income attributable to participating securities	—		—		—		1,492
Net income attributable to common stockholders	$	36,668	$	21,711	$	104,422	$	55,227
Comprehensive income:
Net income	$	36,668	$	21,711	$	104,422	$	56,719
Other comprehensive income:
Unrealized gains and losses on investments:
Net change in unrealized gains (losses) on investments, net of tax	31,396		(8,722)		24,527		(5,309)
Reclassification adjustment for losses on securities no longer held, net of tax	(1,963)		(3,667)		(3,277)		(4,879)
Total other comprehensive income (loss)	29,433		(12,389)		21,250		(10,188)
Comprehensive income	$	66,101	$	9,322	$	125,672	$	46,531


Share and Per Share Data
($ in thousands, except share and per share amounts)	Three months ended September 30,						Nine months ended September 30,
(unaudited)	2024			2023			2024			2023

Weighted average basic shares	40,098,345			36,743,393			40,039,269			35,502,843
Weighted average diluted shares	41,428,557			38,403,843			41,302,108			37,830,431

Basic earnings per share	$	0.91		$	0.59		$	2.61		$	1.56
Diluted earnings per share	$	0.89		$	0.57		$	2.53		$	1.50
Basic adjusted operating earnings per share	$	0.73		$	0.68		$	2.33		$	1.55
Diluted adjusted operating earnings per share	$	0.71		$	0.65		$	2.26		$	1.49

Annualized ROE (1)	19.3%			16.4		%	19.1		%	15.8%
Annualized adjusted ROE (2)	15.5		%	18.9		%	17.1		%	15.8		%
Annualized ROTE (3)	21.8%			19.7		%	21.7		%	19.4		%
Annualized adjusted ROTE (4)	17.5		%	22.8		%	19.4		%	19.4		%

							September 30			December 31
							2024			2023

Shares outstanding							40,099,931			39,863,756
Fully diluted shares outstanding							41,986,881			41,771,854

Book value per share							$	19.89		$	16.72
Fully diluted book value per share							$	18.99		$	15.96

Fully diluted tangible book value per share							$	16.91		$	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

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 September 30,								Nine months ended September 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	$	46,853	$	36,668	$	27,795	$	21,711	$	134,185	$	104,422	$	72,533	$	56,719
Less (add):
Net investment gains (losses)	10,187		8,048		(2,984)		(2,357)		16,665		13,165		3,328		2,629
Net impact of loss portfolio transfer	318		251		266		210		800		632		970		766
Other loss	(195)		(154)		—		—		(202)		(160)		—		—
Other expenses	(1,117)		(882)		(1,482)		(1,171)		(3,350)		(2,647)		(4,061)		(3,208)
Adjusted operating income	$	37,660	$	29,405	$	31,995	$	25,029	$	120,272	$	93,432	$	72,296	$	56,532


	Three months ended September 30,
	2024		2023						%
(unaudited)	As Reported		As Reported		Adjustment		Adjusted		Change
Ceded written premiums	$	(131,692)	$	(75,036)	$	(50,462)	$	(125,498)	4.9%
Net retention	67.1%		78.9%				64.7%		NM (1)
Net written premiums	$	268,322	$	280,696	$	(50,462)	$	230,234	16.5%
Net earned premiums	$	269,557	$	227,033	$	(13,145)	$	213,888	26.0%

	Nine months ended September 30,
	2024		2023						%
	As Reported		As Reported		Adjustment		Adjusted		Change
Ceded written premiums	$	(502,326)	$	(441,650)	$	(50,462)	$	(492,112)	2.1%
Net retention	62.9%						56.8%		NM (1)
Net written premiums	$	852,551	$	696,574	$	(50,462)	$	646,112	32.0%
Net earned premiums	$	763,482	$	604,211	$	(13,145)	$	591,066	29.2%

(1) Not meaningful

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 September 30,				Nine months ended September 30,
(unaudited)	2024		2023		2024		2023
Income before federal income tax expense	$	46,853	$	27,795	$	134,185	$	72,533
Add:
Interest expense	2,229		2,632		7,405		7,250
Amortization expense	351		463		1,099		1,336
Other expenses	1,117		1,482		3,350		4,061
Less:
Net investment income	19,521		13,089		59,956		26,318
Net investment gains (losses)	10,187		(2,984)		16,665		3,328
Other loss	(195)		—		(202)		—
Underwriting income	$	21,037	$	22,267	$	69,620	$	55,534

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 September 30,						Nine months ended September 30,
(unaudited)	2024			2023			2024			2023
Net earned premiums	$	269,557		$	227,033		$	763,482		$	604,211

Losses and LAE	170,521			138,536			473,489			377,841
Less: Pre-tax net impact of LPT	(318)			(266)			(800)			(970)
Adjusted losses and LAE	$	170,839		$	138,802		$	474,289		$	378,811

Loss ratio	63.3		%	61.0%			62.0		%	62.5		%
Less: net impact of LPT	(0.1)		%	(0.1)%			(0.1)		%	(0.2)%
Adjusted loss ratio	63.4		%	61.1		%	62.1		%	62.7		%

Combined ratio	92.2		%	90.2		%	90.9		%	90.8		%
Less: net impact of LPT	(0.1)		%	(0.1)%			(0.1)		%	(0.2)%
Adjusted combined ratio	92.3		%	90.3		%	91.0		%	91.0		%

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.


	Three months ended September 30,						Nine months ended September 30,
($ in thousands)	2024		2023		% Change		2024		2023		% Change
Global Property & Agriculture	$	54,360	$	48,775	11.5	%	$	279,721	$	247,195	13.2	%
Industry Solutions	74,089		79,798		(7.2)%		236,460		226,680		4.3%
Captives	53,630		41,886		28.0	%	184,137		127,249		44.7	%
Programs	54,434		41,735		30.4	%	166,256		143,032		16.2	%
Transactional E&S	44,885		30,699		46.2	%	132,791		90,948		46.0	%
Accident & Health	43,490		39,554		10.0	%	128,479		112,819		13.9	%
Professional Lines	40,310		48,259		(16.5)	%	120,655		114,420		5.4	%
Surety	34,816		24,977		39.4	%	106,395		75,899		40.2	%
Total gross written premiums(1)	$	400,014	$	355,683	12.5%		$	1,354,894	$	1,138,242	19.0%


(1) Excludes exited business


($ in thousands)	September 30,				December 31,
(unaudited)	2024		2023		2023
Stockholders' equity	$	797,507	$	535,397	$	661,031

Less: Goodwill and intangible assets	87,607		88,808		88,435
Tangible stockholders' equity	$	709,900	$	446,589	$	572,596