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.
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 20262025
Skyward Specialty Apollo Total Skyward 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) 20262025
Skyward Specialty Apollo Total Skyward Specialty TotalNon-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) 20262025
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
Stockholders’ equity was $1,224.9 million at March 31, 2026 which represented an increase of 21.3% when compared to stockholders' equity of $1,009.6 million at December 31, 2025. The increase in stockholders’ equity was primarily attributable to the issuance of common stock in connection with the acquisition of Apollo.
Conference Call
At 10:00 a.m. eastern time tomorrow, May 7, 2026, Company 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 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 Group is the holding company brand for its U.S. and U.K. businesses, Skyward Specialty Insurance Group, Inc.® and Apollo, respectively, delivering a comprehensive suite of specialized insurance solutions across global specialty property and casualty markets. Focused on the specialty industry’s most niche, complex risks of today and the emerging challenges of tomorrow, Skyward Group leverages the forward-looking insight and disciplined execution of each organization to drive sustainable growth and long-term value for its shareholders, distribution partners, and other stakeholders.
For more information about Skyward Group, Skyward Specialty and Apollo, please visit skywardgroup.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 Doughty
Skyward Specialty Insurance Group
713-935-4944
[email protected]
Investor Contact
Skyward Group Investor Relations Dept
[email protected]
Consolidated Balance Sheets ($ in thousands, except share and per share amounts) (unaudited) March 31,
2026 December 31, 2025
Assets Investments: Fixed maturity securities, available-for-sale, at fair value (net of allowance for credit losses of $6,500 and $7,000, respectively) (amortized cost of $2,208,212 and $1,848,755, respectively) $2,195,107 $1,856,303 Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $301 and $468, respectively) 30,094 32,822 Equity securities, at fair value 1,140 1,174 Mortgage loans, at fair value 9,088 9,902 Equity method investments 72,101 77,365 Other long-term investments 50,297 58,650 Short-term investments, at fair value 386,514 264,299 Total investments 2,744,341 2,300,515 Cash and cash equivalents 255,910 168,544 Restricted cash 60,521 30,570 Funds at Lloyd’s 108,846 2,509 Options, at fair value 24,401 34,857 Premiums and commissions receivable, net 830,509 544,217 Reinsurance recoverables, net 1,336,937 1,119,880 Ceded unearned premium 314,850 238,948 Deferred policy acquisition costs and VOBA 193,703 136,100 Deferred tax assets 44,138 27,865 Goodwill and intangible assets, net 473,316 88,040 Other assets 160,005 99,807 Total assets $6,547,477 $4,791,852 Liabilities and stockholders’ equity Liabilities: Reserves for losses and loss adjustment expenses $2,918,903 $2,318,894 Unearned premiums 1,014,666 774,035 Deferred ceding commission 49,035 46,453 Reinsurance and premium payables 479,412 279,888 Funds held for others 157,380 128,003 Deferred tax liabilities 68,466 — Accounts payable and accrued liabilities 148,737 115,034 Notes payable 466,418 100,411 Subordinated debt, net of debt issuance costs 19,577 19,569 Total liabilities 5,322,594 3,782,287 Stockholders’ equity Common stock, $0.01 par value, 500,000,000 shares authorized, 44,728,087 shares issued and 44,543,065 shares outstanding at March 31, 2026; 40,511,222 shares issued and outstanding at December 31, 2025 484 405 Treasury stock, at cost, 185,022 and 0 shares, respectively (8,665) — Additional paid-in capital 922,311 730,555 Accumulated other comprehensive (loss) income (6,126) 11,457 Retained earnings 316,879 267,148 Total stockholders’ equity 1,224,883 1,009,565 Total liabilities and stockholders’ equity $6,547,477 $4,791,852
Condensed Consolidated Statements of Operations and Comprehensive Income($ in thousands) Three months ended March 31,(unaudited) 2026
2025
Revenues: Net earned premiums $434,007 $300,366 Underwriting fee income 10,078 — Commission and fee income 1,527 1,976 Net investment income 27,055 19,422 Net investment gains 3,185 6,750 Other income 15 13 Total revenues 475,867 328,527 Expenses: Losses and loss adjustment expenses 265,223 187,309 Underwriting, acquisition and insurance expenses 124,614 86,551 Fee‑based service expenses 4,170 — Interest expense 7,719 1,834 Amortization expense 8,843 337 Other expenses 3,222 1,061 Total expenses 413,791 277,092 Income before income taxes 62,076 51,435 Income tax expense 12,345 9,377 Net income $49,731 $42,058 Comprehensive income: Net income $49,731 $42,058 Other comprehensive (loss) income: Unrealized gains and losses on investments: Net change in unrealized (losses) gains on investments, net of tax (17,217) 12,255 Reclassification adjustment for gains (losses) on securities no longer held, net of tax 502 (182)Foreign currency translation adjustment (868) — Total other comprehensive (loss) income (17,583) 12,073 Comprehensive income $32,148 $54,131
Share and Per Share Data ($ in thousands, except share and per share amounts) Three months ended March 31,(unaudited) 2026
2025
Weighted average basic shares 44,463,167 40,196,416 Weighted average diluted shares 45,443,960 41,680,595 Basic earnings per share $1.12 $1.05 Diluted earnings per share $1.09 $1.01 Basic operating earnings per share $1.28 $0.93 Diluted operating earnings per share $1.25 $0.90 Annualized ROE(1) 17.8% 20.5%Annualized operating ROE(2) 20.3% 18.3%Annualized ROTE(3) 22.9% 22.9%Annualized operating ROTE(4) 26.2% 20.5% March 31, December 31, 2026
2025
Shares outstanding 44,543,065 40,511,222 Fully diluted shares outstanding 46,753,737 42,292,371 Book value per share $27.50 $24.92 Fully diluted book value per share $26.20 $23.87 (1) Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.(2) Annualized operating ROE is operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.(3) Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period.(4) Annualized operating ROTE is operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders' equity during the period.
Reconciliation of Non-GAAP Financial Measures
Operating income – We define operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define operating income differently.
($ in thousands) Three months ended March 31,(unaudited) 20262025
Pre-tax After-tax Pre-tax After-taxIncome as reported $62,076 $49,731 $51,435 $42,058 Less (add): Net investment gains 3,185 2,552 6,841 5,594 Amortization expense (8,843) (7,084) (337) (276)Other income 15 12 13 11 Other expenses (3,222) (2,581) (1,061) (868)Operating income $70,941 $56,832 $45,979 $37,597
Underwriting income – We define underwriting income as net income before income taxes excluding, net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.
($ in thousands) Three months ended March 31,(unaudited) 2026
2025
Income before income taxes $62,076 $51,435 Add: Interest expense 7,719 1,834 Amortization expense 8,843 337 Other expenses 3,222 1,061 Less: Net investment income 27,055 19,422 Net investment gains 3,185 6,750 Other income 15 13 Underwriting income $51,605 $28,482
Reconciliation of Non-GAAP Financial Measures
Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity excluding goodwill and intangible assets and the related deferred tax impact. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.
($ in thousands) March 31,December 31,
(unaudited) 2026
2025
2025
Stockholders’ equity $1,224,883 $850,721 $1,009,565 Less: Goodwill and intangible assets 473,316 87,089 88,040 Add: Deferred tax impact 65,500 — — Tangible stockholders’equity $817,067 $763,632 $921,525
Gross Written Premiums by Underwriting Division and Managed Premiums (Unaudited)
Gross Written Premiums By Underwriting Division
($ in thousands) Three months ended March 31, 20262025
% ChangeSkyward Specialty Segment Accident & Health $92,009 $63,169 45.7%Captives 57,914 66,929 (13.5)%Credit & Surety 64,174 45,028 42.5%Energy Solutions 48,866 75,594 (35.4)%Global Agriculture 102,352 80,617 27.0%Global Property 34,517 46,686 (26.1)%Professional Lines 36,228 40,217 (9.9)%Specialty Programs 94,767 62,675 51.2%Transactional E&S 50,064 52,006 (3.7)%Total continuing business 580,891 532,921 9.0%Exited business 913 2,405 (62.0)%Total Skyward Specialty Segment gross written premiums 581,804 535,326 8.7%Apollo Segment(1) Syndicate 1969 65,008 53,449 21.6%Syndicate 1971 20,892 18,941 10.3%Total Apollo Segment gross written premiums 85,900 72,390 18.7%Total gross written premiums(1) $667,704 $607,716 9.9% (1) Prior year information is pro forma
Managed Premiums
Apollo provides managing agency services to nine syndicates within its Lloyd’s platform. The capital-aligned syndicates, Syndicate 1969, Syndicate 1971 and Syndicate 1972, are wholly managed and partly capitalized by Apollo with Apollo retaining a portion of the underwriting risk via its Lloyd's Corporate Member, Apollo No. 16. Platform Partner syndicates are managed by Apollo on behalf of third‑party partners and Apollo does not currently provide capital for underwriting of these syndicates. Apollo receives managing agency fees and performance‑based income for their managing agency services from all syndicates on its Lloyd's platform.
($ in thousands) Three months ended March 31, 20262025(1)
% ChangeTotal gross written premiums $667,704 $607,716 9.9%Fee generating gross written premiums: Aligned Syndicates 210,549 142,957 47.3%Partner Syndicates 89,456 58,712 52.4%Total fee generating gross written premiums $300,005 $201,669 48.8%Total Skyward Group managed premiums $967,709 $809,385 19.6% (1) Prior year information is pro forma
Underwriting Segments and Corporate Results (Unaudited)
Underwriting Segments and Corporate Results
($ in thousands)Three Months Ended March 31, 2026 Skyward Specialty Apollo Corporate TotalRevenues: Net earned premiums$363,943 $70,064 $— $434,007 Underwriting fee income — 10,078 — 10,078 Commission and fee income 1,527 — — 1,527 Net investment income — — 27,055 27,055 Net investment gains — — 3,185 3,185 Other income — — 15 15 Total revenues 365,470 80,142 30,255 475,867 Expenses: Losses and loss adjustment expenses 228,231 36,992 — 265,223 Underwriting, acquisition and insurance expenses 96,963 22,742 4,909 124,614 Fee‑based service expenses — 4,170 — 4,170 Interest expense — — 7,719 7,719 Amortization expense — — 8,843 8,843 Other expenses — — 3,222 3,222 Total expenses 325,194 63,904 24,693 413,791 Income before income taxes$40,276 $16,238 $5,562 $62,076 Underwriting Income$40,276 $16,238 $— $51,605 Combined Ratio Non-cat loss and LAE 60.6% 52.8% —% 59.3%Cat loss and LAE 2.1% —% —% 1.8%Loss Ratio 62.7% 52.8% —% 61.1%Net policy acquisition costs 14.0% 12.2% —% 13.9%Other operating and general expenses 12.6% 20.3% —% 13.8%Commission and fee income(0.4)% —% —% (0.4)%Corporate expenses —% —% 1.1% 1.1%Expense ratio 26.2% 32.5% 1.1% 28.4%Combined ratio 88.9% 85.3% —% 89.5%Ex-Cat Combined Ratio 86.8% 85.3% —% 87.7%Underwriting Segments and Corporate Results (Unaudited)