Bishop Street forms joint venture with Skyward Specialty

NEW YORK - Bishop Street Underwriters, a subsidiary of RedBird Capital Partners, has announced a strategic joint venture with Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD), aiming to enhance its specialty property and casualty (P&C) insurance offerings. The collaboration is set to bolster Bishop Street's growth platform by integrating Skyward Specialty's underwriting expertise and technological capabilities.

The joint venture is expected to expedite Bishop Street's ability to support Managing General Agents (MGAs) by providing expanded program development, product launches, and preferred Admitted and E&S capacity. Bishop Street's approach, which leverages data-driven and tech-enabled decision-making, will be complemented by Skyward Specialty's robust underwriting and analytics, further addressing the needs of MGAs and underwriters.

Chad Weber, President of Bishop Street, emphasized the joint venture's significance in providing preferred primary insurance capacity, which he believes will be a key differentiator for the company's MGA partners. CEO Chad Levine added that the partnership cements Bishop Street's position as the go-to platform for specialty MGAs in the industry.

Andrew Robinson, Chairman and CEO of Skyward Specialty, highlighted the alignment of the companies' visions and their commitment to delivering tailored insurance solutions. He also noted the strength of the financial backing from RedBird, which he believes enhances the partnership's foundation.

This joint venture follows an earlier strategic relationship established with Topsail Reinsurance, expanding Bishop Street's capacity to leverage underwriting expertise and market knowledge. The companies involved have not disclosed the financial terms of the agreement.

The information in this article is based on a press release statement.

In other recent news, Skyward Specialty Insurance Group has been making headlines with strong Q2 earnings and revenue, surpassing expectations according to Piper Sandler. The company also reported a robust Q1 performance, leading to an upward revision of price targets by several firms, including Keefe, Bruyette & Woods, BMO Capital Markets, and JMP Securities, due to high premium growth and stable profit margins.

Analysts at William Blair initiated coverage on Skyward Specialty stock with an Outperform rating, highlighting the company's rapid growth trajectory and technological edge in the specialty insurance market. In contrast, Oppenheimer initiated coverage with a Perform rating, suggesting a neutral stance on the company's near-term prospects.

Skyward Specialty has also been navigating issues regarding its reinsurance counterparty's parent company's financial distress. However, BMO Capital maintained its Market Perform rating, emphasizing that the subsidiary directly involved with Skyward Specialty is not affected by the parent company's provisional liquidation.

Lastly, Skyward Specialty has announced a secondary public offering of 4,400,000 shares of common stock by The Westaim Corporation. These recent developments provide investors with a snapshot of the company's current activities and financial standing.

InvestingPro Insights

As Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD) enters into a strategic joint venture with Bishop Street Underwriters, the company's financial health and market performance provide a backdrop to the potential success of this collaboration. According to InvestingPro data, Skyward Specialty boasts a market capitalization of $1.64 billion, reflecting its substantial presence in the insurance industry. The company's P/E ratio stands at 13.74, indicating a favorable valuation relative to near-term earnings growth, as noted in one of the InvestingPro Tips. This could signal an attractive entry point for investors considering the company's growth prospects.

Moreover, Skyward Specialty has experienced a significant revenue growth of 38.14% over the last twelve months as of Q2 2024, showcasing its ability to expand and generate increased sales. This growth trajectory is further supported by a robust gross profit margin of 31.0%, highlighting the company's efficiency in managing its cost of sales and maintaining profitability. The InvestingPro Tips also highlight that analysts predict the company will be profitable this year, reinforcing the positive outlook on Skyward Specialty's financial performance.

Investors and stakeholders may also find reassurance in Skyward Specialty's strong return over the last year, with a 68.33% price total return, signaling robust investor confidence and market performance. This, coupled with the company trading near its 52-week high, suggests a sustained bullish trend for the insurer's stock.

For those seeking additional insights and detailed analysis, InvestingPro offers more tips on Skyward Specialty Insurance Group, Inc. Interested readers can explore these further at https://www.investing.com/pro/SKWD, where several other InvestingPro Tips are available to help guide investment decisions.

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