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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.
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