Skyward Specialty Insurance shares fall on higher loss ratios

Published 25/02/2025, 23:26
Skyward Specialty Insurance shares fall on higher loss ratios

HOUSTON - Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD) reported fourth quarter earnings that beat analyst estimates, but shares fell 5% as investors focused on higher loss ratios and catastrophe losses.

The specialty insurance provider posted adjusted earnings per share of $0.80 for Q4 2024, surpassing the analyst consensus of $0.65. Revenue came in at $304.4 million, also topping expectations of $265.04 million.

Despite the earnings beat, Skyward’s loss ratio increased to 66.9% in Q4, up from 61.1% in the same period last year. The company cited higher catastrophe losses, primarily from Hurricane Milton, which added 2.2 percentage points to the loss ratio.

Gross written premiums grew 20.8% YoY to $388.4 million, driven by double-digit growth across several underwriting divisions including surety, programs, and captives.

"We wrapped up another remarkable year for Skyward Specialty, delivering both outstanding underwriting results while growing gross written premiums at over 20% for the quarter and 19% for the full year," said CEO Andrew Robinson.

For the full year 2024, Skyward reported net income of $118.8 million, or $2.87 per diluted share, compared to $86.0 million, or $2.24 per diluted share, in 2023. The company’s adjusted return on equity improved to 17.4% for 2024, up from 14.9% the previous year.

While highlighting strong premium growth and profitability metrics, investors appeared concerned about the uptick in loss ratios and catastrophe exposure, sending shares lower in after-hours trading.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.