HOUSTON, May 06, 2026 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) ("Skyward Group" or the "Company") today reported first quarter 2026 net income of $49.7 million, or $1.09 per diluted share, compared to $42.1 million, or $1.01 per diluted share, for the same 2025 period.
Operating income(1) for the first quarter of 2026 was $56.8 million, or $1.25 per diluted share, compared to $37.6 million, or $0.90 per diluted share, for the same 2025 period.
Highlights for the first quarter included:
-- Gross written premiums of $667.7 million, an increase of 9.9%(2) compared
to 2025;
-- Combined ratio of 89.5%;
-- Ex-Cat combined ratio of 87.7%;
-- Managed premiums of $967.7 million, an increase of 19.6%(2) compared to
2025;
-- Annualized return on equity and operating return on equity(1) of 17.8%
and 20.3%, respectively, for the three months ended March 31, 2026; and,
-- Book value per share of $27.50, an increase of 10% compared to December
31, 2025.
(1) See "Reconciliation of Non-GAAP Financial Measures"
(2) Select first quarter 2025 metrics for the Skyward
Group and Apollo are presented on a pro forma basis
for comparative purposes only and are not necessarily
indicative of the operating results that Skyward Group
would have recognized had the acquisition actually
been completed on January 1, 2025. Pro forma information
is unaudited.
Skyward Group Chairman and CEO Andrew Robinson commented, "We are off to an excellent start to the year as we report our first quarter consolidated results for Skyward Specialty and Apollo under the Skyward Group brand. Diluted operating EPS of $1.25 increased 39% year over year, driven by strong underlying earnings growth and the accretive consolidation of Apollo. Our annualized operating return on equity of 20% reflects the strength and quality of our performance. We delivered an outstanding combined ratio of 89.5%, inclusive of 1.8 points of catastrophe losses. Pro forma gross written premiums growth of 10% was solid, while total managed premiums grew 20%, including 49% growth in fee generating gross written premiums, an encouraging early indicator of the fee based earnings growth we expect over time. Most importantly, the continued diversification of our portfolio, particularly in lines with lower exposure to P&C underwriting cycles, positions us to deliver strong top--line and bottom--line results in a disciplined manner, consistent with our commitment to top--quartile performance across the market cycle."
Results of Operations
Beginning in the first quarter of 2026, we will report our results under two operating segments, the Skyward Specialty segment and the Apollo segment, and a corporate unit. The Skyward Specialty segment represents our U.S. based specialty insurance operations conducted under the Skyward Specialty Insurance brand and the Apollo segment represents Apollo's Lloyd's platform operations, including its managed syndicates and managing agency activities. Our corporate unit includes our Skyward Group investment results, debt servicing, holding--company costs, public--company expenses, and enterprise--level functions that support both operating segments.
Underwriting Results
Premiums
------------- ------------ ------------- ------------- ----------- -------------
($ in thousands) Three months ended March 31,
-------------------------------------------------------------------------------------
unaudited 2026 2025
Skyward Skyward
Specialty Apollo Total Specialty Apollo(1) Total(1)
------------- ------------ ------------- ------------- ----------- -------------
Gross written
premiums $ 581,804 $ 85,900 $ 667,704 $ 535,326 $72,390 $ 607,716
Ceded written
premiums $(210,775) $(24,046) $(234,821) $(192,055) $ -- $(192,055)
Net retention 63.8% 72.0% 64.8% 64.1% --% --%
Net written
premiums $ 371,029 $ 61,854 $ 432,883 $ 343,271 $ -- $ 343,271
Net earned
premiums $ 363,943 $ 70,064 $ 434,007 $ 300,366 $ -- $ 300,366
(1) Select first quarter 2025 metrics for the Skyward
Group and Apollo are presented on a pro forma basis
for comparative purposes only and are not necessarily
indicative of the operating results that Skyward Group
would have recognized had the acquisition actually
been completed on January 1, 2025. Pro forma information
is unaudited.
---------------------------------------------------------------------------------------------------------
Gross written premiums for the first quarter of 2026 increased 9.9% when compared to pro forma 2025. Gross written premiums grew 8.7% in the Skyward Specialty segment, primarily driven by the accident & health, credit & surety, global agriculture, and specialty programs, divisions. Gross written premiums in the Apollo segment increased 18.7% compared to pro forma 2025 primarily due to growth in syndicate 1969.
Combined Ratio Three months ended March 31,
------------------------------------------------------
(unaudited) 2026 2025
Skyward Skyward
Specialty Apollo Total Specialty Total
----------- -------- -------- ----------- --------
Non-cat loss
and LAE 60.6% 52.8% 59.3% 60.2% 60.2%
Cat loss and
LAE(1) 2.1% --% 1.8% 2.2% 2.2%
Loss Ratio 62.7% 52.8% 61.1% 62.4% 62.4%
---- ---- ---- ---- ---- ---- ----
Net policy
acquisition
costs 14.0% 12.2% 13.9% 14.8% 14.8%
Other
operating
and general
expenses(2) 12.2% 20.3% 13.4% 12.0% 12.0%
Corporate
expenses --% --% 1.1% --% 1.3%
Expense ratio 26.2% 32.5% 28.4% 26.8% 28.1%
Combined ratio 88.9% 85.3% 89.5% 89.2% 90.5%
Ex-Cat Combined
Ratio(3) 86.8% 85.3% 87.7% 87.0% 88.3%
(1) Current accident year
(2) Commission and fee income is netted in other operating
and general expenses
(3) Defined as the combined ratio excluding cat loss
and LAE(1)
The loss ratio for the first quarter of 2026 improved 1.3 points when compared to the same 2025 period. The loss and LAE ratio for the Skyward Specialty segment increased slightly compared to 2025 due to business mix. Catastrophe losses in the first quarter were comparative to 2025.
The expense ratio for the first quarter of 2026 increased slightly when compared to the same 2025 period. The Skyward Specialty segment's expense ratio improved 0.6 points when compared to 2025, primarily driven by business mix shift and earnings leverage. In the first quarter of 2026, the Company revised its expense presentation to report corporate expenses separately from segment expenses following the closing of the Apollo acquisition. The prior year period has been recast to reflect this change.
Investment Results
Net Investment Income
------------------- -----------------
$ in thousands Three months ended March 31,
--------------------------------------
(unaudited) 2026 2025
------------------- -----------------
Short-term investments $ 2,488 $ 3,201
Cash and cash equivalents 1,659 924
Fixed income 27,365 16,730
Alternative & strategic
investments (4,457) (1,433)
----------- ----------
Net investment income $ 27,055 $ 19,422
=========== ==========
Net unrealized gains on securities
still held $ 1,775 $ 5,492
Net realized gains 1,410 1,258
----------- ----------
Net investment gains $ 3,185 $ 6,750
In the first quarter of 2026, the Company revised its presentation of net investment income to (i) report short-term investments separately from cash and cash equivalents following the closing of the Apollo acquisition, and (ii) include equities in alternative & strategic investments after the sale of the majority of the equity portfolio in 2025. The prior year period has been recast to reflect this change.
Net investment income for the first quarter of 2026 increased $7.6 million when compared to the same 2025 period, driven by the addition of the Apollo portfolio, a higher yield and a larger asset base. The increase in income from cash and cash equivalents was due to an overall increase in the invested asset base from the addition of Apollo when compared to the same 2025 period.
The alternative & strategic investments portfolio continued to be impacted by the decline in the fair value of limited partnership investments.
Stockholders' Equity
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