It has been about a month since the last earnings report for Skyward Specialty Insurance (SKWD Quick QuoteSKWD - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Skyward due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Skyward Specialty Insurance Group, Inc. before we dive into how investors and analysts have reacted as of late.

Skyward Specialty Q1 Earnings Beat on Apollo Lift, Premium Growth

Skyward Specialty delivered a solid first quarter of 2026, with operating earnings per share of $1.25, increased 38.9% from a year ago and beat the Zacks Consensus Estimate of $1.05. Total revenues were $475.87 million, up 44.8% year over year, and came in 19.4% above the consensus mark.

First quarter performance reflected stronger premiums, underlying underwriting results alongside the accretive impact of Apollo, while profitability held firm with a lower combined ratio.

SKWD’s Premium Base Expanded Across Both Platforms

Gross written premiums totaled $667.7 million, up 9.9% versus the prior-year period. Growth was broad-based, led by an 8.7% increase in the Skyward Specialty segment and an 18.7% rise in the Apollo segment, supported by higher volume in syndicate 1969.

Net earned premiums climbed to $434 million from $300.4 million a year ago, reflecting higher business volumes and the expanded footprint following the Apollo consolidation. Underwriting fee income of $10.1 million also contributed to the quarter’s top-line mix, tied to Apollo’s managing agency activities.

Net investment income increased to $27.1 million from $19.4 million a year ago, driven by the addition of the Apollo portfolio, a higher yield environment, and a larger invested asset base.

Skyward Group’s Underwriting Mix Drove Growth

Within Skyward Group’s U.S. specialty operations, several underwriting divisions posted notable momentum. Accident & Health gross written premiums increased 45.7% year over year, Credit & Surety rose 42.5%, Global Agriculture advanced 27.0%, and Specialty Programs jumped 51.2%, helping offset declines in Energy Solutions and Global Property.

The portfolio’s evolving composition also reflected a sharper emphasis on businesses positioned for steadier growth. Management highlighted continued diversification, including expansion in areas with lower exposure to property-and-casualty underwriting cycles, as it aims to sustain disciplined top-line and bottom-line progress.

SKWD’s Expenses

Losses and loss adjustment expenses were $265.22 million, up from $187.31 million in the prior-year quarter, in line with the larger premium base. Still, the total loss ratio improved to 61.1% from 62.4% a year ago, supporting underwriting profitability despite business-mix shifts within the Skyward Specialty segment. Total Cat loss and LAE of 1.8% declined from 2.2% a year ago.

Underwriting, acquisition and insurance expenses rose to $124.6 million from $86.6 million a year ago, reflecting higher activity levels and a larger operating platform. On the ratio side, net policy acquisition costs improved to 13.9% from 14.8% in the year-ago quarter, pointing to operating leverage as premium volume expanded.

The combined ratio of 89.5% decreased from 90.5% a year ago.

SKWD’s Financials (As of March 31, 2026)

On the balance sheet, cash and cash equivalents rose to $255.9 million at first-quarter end, from $168.5 million at 2025-end. Total assets reached $6.55 billion as of March 31, 2026, up from $4.79 billion at 2025-end.

Notes payable jumped to $466.4 million from $100.4 million at 2025-end.

Book value per share of $27.50 in the first quarter increased from $24.92 a year ago.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in estimates revision.

VGM Scores

At this time, Skyward has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Skyward has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Skyward belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI Quick QuoteRLI - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

RLI Corp. reported revenues of $453.71 million in the last reported quarter, representing a year-over-year change of +4.3%. EPS of $0.83 for the same period compares with $0.92 a year ago.

RLI Corp. is expected to post earnings of $0.70 per share for the current quarter, representing a year-over-year change of -16.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.

RLI Corp. has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.