On August 5, 2024, Skyward Specialty Insurance Group Inc (SKWD, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial results that surpassed analyst expectations. Skyward Specialty Insurance Group Inc is a specialty insurance company that delivers commercial property and casualty products and solutions on a non-admitted and admitted basis. The firm operates multiple lines of business, including general liability, excess liability, professional liability, commercial auto, group accident, health, property, surety, and workers' compensation.
Performance Highlights
Skyward Specialty Insurance Group Inc reported a net income of $31.0 million, or $0.75 per diluted share, for Q2 2024, compared to $19.5 million, or $0.51 per diluted share, for the same period in 2023. This performance significantly exceeded the analyst estimate of $0.57 per share. For the first half of 2024, net income was $67.8 million, or $1.65 per diluted share, compared to $35.0 million, or $0.93 per diluted share, for the same period in 2023.
Key Financial Achievements
Adjusted operating income for Q2 2024 was $33.1 million, or $0.80 per diluted share, compared to $16.0 million, or $0.42 per diluted share, for the same period in 2023. For the first half of 2024, adjusted operating income was $64.0 million, or $1.56 per diluted share, compared to $31.5 million, or $0.84 per diluted share, for the same period in 2023.
Skyward Specialty Chairman and CEO Andrew Robinson commented, "Our second quarter results continue the consistently excellent performance we have produced in each of the seven quarters reporting as a public company and our adjusted operating income of $33.1 million was the best in Company history."
Underwriting and Premiums
Gross written premiums for Q2 2024 increased by 17.6% to $496.2 million from $422.0 million in Q2 2023. Net written premiums rose by 39.0% to $297.1 million from $213.7 million in the same period last year. The combined ratio improved to 90.7% from 92.0% in Q2 2023, indicating better underwriting performance.
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Gross Written Premiums | $496.2 million | $422.0 million | 17.6% |
| Net Written Premiums | $297.1 million | $213.7 million | 39.0% |
| Combined Ratio | 90.7% | 92.0% | -1.3 pts |
Investment Income
Net investment income for Q2 2024 was $22.1 million, a significant increase from $8.6 million in Q2 2023. This growth was driven by higher yields and larger asset bases in the fixed income portfolio and short-term investments.
Balance Sheet Strength
Stockholders' equity increased by 4.5% to $723.6 million as of June 30, 2024, from $692.3 million as of March 31, 2024. This increase was primarily due to the net income generated during the period.
Analysis and Outlook
Skyward Specialty Insurance Group Inc's strong financial performance in Q2 2024 highlights the effectiveness of its "Rule our Niche" strategy and its ability to generate sustainable growth. The company's improved combined ratio and significant increase in net income and premiums indicate robust underwriting and operational efficiency. The recent upgrade by AM Best to A (Excellent) with a stable outlook further underscores the company's financial strength and stability.
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Explore the complete 8-K earnings release (here) from Skyward Specialty Insurance Group Inc for further details.
