We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SKWD Q2 Earnings Beat Estimates as Premium Growth Accelerates
Read MoreHide Full Article
Key Takeaways
Skyward Specialty posted $1.30 in Q2 operating EPS, up 46.1% year over year and 13% above estimates.
Gross written premiums rose 13.3%, led by growth in Skyward Specialty and the Apollo segment.
SKWD's combined ratio edged up to 89.5%, while its expense ratio improved to 27.2%.
Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) delivered a solid second quarter of 2026, with operating earnings per share of $1.30, which increased 46.1% from the year-ago level and beat the Zacks Consensus Estimate by 13%. Total revenues were $489.53 million, which improved 53% year over year and beat the consensus mark by 6.5%.
The second-quarter performance reflected strong premium growth and contributions from the Apollo segment, while underwriting remained profitable despite a slight increase in the combined ratio.
Skyward Specialty Insurance Group, Inc. Price, Consensus and EPS Surprise
SKWD’s Premium Base Expanded Across Both Platforms
Gross written premiums totaled $740.6 million, up 13.3% from the prior-year period’s level. Growth was broad-based, led by a 14.2% increase in the Skyward Specialty segment and a 5.6% rise in the Apollo segment, with Syndicate 1969's gross written premiums increasing 7.7%.
Net earned premiums climbed to $444.5 million from $295.5 million a year ago, reflecting higher business volumes and contributions from the Apollo segment. Underwriting fee income of $12.6 million, generated by the Apollo segment, also contributed to the quarter’s top-line mix.
Net investment income increased to $30.7 million from $18.7 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 Fuels Growth
Within Skyward Group’s U.S. specialty operations, several underwriting divisions posted notable momentum. Accident & Health gross written premiums increased 57.8% year over year, Credit & Surety rose 15.6%, Global Agriculture advanced 95.8%, and Specialty Programs jumped 29.7%, helping offset declines in Captives, Energy Solutions and Global Property.
The Skyward Specialty segment's loss and LAE ratio increased primarily because of shifts in business mix, driven by growth in Accident & Health and Global Agriculture. At the same time, the segment's expense ratio improved, driven by business mix shifts, enhanced operating efficiencies and scale benefits.
SKWD’s Expenses
Losses and loss adjustment expenses amounted to $276.7 million, up from $181.3 million in the prior-year quarter, consistent with the expansion of the premium base. The consolidated loss ratio deteriorated to 62.3% from 61.3% a year ago, primarily reflecting business-mix shifts within the Skyward Specialty segment. Total Cat loss and LAE increased to 1.9% from 1.4% a year ago.
Underwriting, acquisition and insurance expenses rose to $123.3 million from $85.6 million a year ago, reflecting higher activity levels and a larger operating platform. On the ratio side, net policy acquisition costs increased to 16.0% from 15.1% a year ago, while the total expense ratio improved to 27.2% from 28.1%.
The combined ratio increased slightly to 89.5% from 89.4% a year ago.
SKWD’s Q2 Financials Update
On the balance sheet, cash and cash equivalents rose to $219.2 million from $168.5 million as of 2025-end. Total assets reached $6.8 billion as of June 30, 2026, up from $4.8 billion as of 2025-end.
Notes payable jumped to $417.6 million from $100.4 million as of 2025-end.
Book value per share was approximately $28.55, up 14.6% from the figure as of Dec. 31, 2025.
Here are some stocks from the broader Finance space that have also reported their quarterly results: Kinsale Capital Group, Inc. (KNSL - Free Report) , RLI Corp. (RLI - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) . Here's how they have performed:
Kinsale Capital delivered second-quarter 2026 net operating earnings of $5.54 per share, which outpaced the Zacks Consensus Estimate by 8.6%. The bottom line increased 15.9% year over year. KNSL’s operating revenues increased 16.8% year over year to $548.5 million, which surpassed the Zacks Consensus Estimate by 12.3%. The quarterly results benefited from growth in net earned premiums, increased net investment income, favorable prior-year reserve development and disciplined underwriting. However, these gains were partially offset by lower gross written premiums and higher operating expenses.
RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. RLI’s operating revenues for the reported quarter were $463 million, up 4.9% year over year. The top line beat the Zacks Consensus Estimate by 1.6%. The quarterly results reflect continued premium growth and higher investment income. However, weaker underwriting performance in the casualty segment partly offset these positives.
Arch Capital reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. ACGL’s revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. The results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income.
View the Zacks #1 Rank List
Image: Shutterstock
SKWD Q2 Earnings Beat Estimates as Premium Growth Accelerates
Key Takeaways
Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) delivered a solid second quarter of 2026, with operating earnings per share of $1.30, which increased 46.1% from the year-ago level and beat the Zacks Consensus Estimate by 13%. Total revenues were $489.53 million, which improved 53% year over year and beat the consensus mark by 6.5%.
The second-quarter performance reflected strong premium growth and contributions from the Apollo segment, while underwriting remained profitable despite a slight increase in the combined ratio.
Skyward Specialty Insurance Group, Inc. Price, Consensus and EPS Surprise
Skyward Specialty Insurance Group, Inc. price-consensus-eps-surprise-chart | Skyward Specialty Insurance Group, Inc. Quote
SKWD’s Premium Base Expanded Across Both Platforms
Gross written premiums totaled $740.6 million, up 13.3% from the prior-year period’s level. Growth was broad-based, led by a 14.2% increase in the Skyward Specialty segment and a 5.6% rise in the Apollo segment, with Syndicate 1969's gross written premiums increasing 7.7%.
Net earned premiums climbed to $444.5 million from $295.5 million a year ago, reflecting higher business volumes and contributions from the Apollo segment. Underwriting fee income of $12.6 million, generated by the Apollo segment, also contributed to the quarter’s top-line mix.
Net investment income increased to $30.7 million from $18.7 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 Fuels Growth
Within Skyward Group’s U.S. specialty operations, several underwriting divisions posted notable momentum. Accident & Health gross written premiums increased 57.8% year over year, Credit & Surety rose 15.6%, Global Agriculture advanced 95.8%, and Specialty Programs jumped 29.7%, helping offset declines in Captives, Energy Solutions and Global Property.
The Skyward Specialty segment's loss and LAE ratio increased primarily because of shifts in business mix, driven by growth in Accident & Health and Global Agriculture. At the same time, the segment's expense ratio improved, driven by business mix shifts, enhanced operating efficiencies and scale benefits.
SKWD’s Expenses
Losses and loss adjustment expenses amounted to $276.7 million, up from $181.3 million in the prior-year quarter, consistent with the expansion of the premium base. The consolidated loss ratio deteriorated to 62.3% from 61.3% a year ago, primarily reflecting business-mix shifts within the Skyward Specialty segment. Total Cat loss and LAE increased to 1.9% from 1.4% a year ago.
Underwriting, acquisition and insurance expenses rose to $123.3 million from $85.6 million a year ago, reflecting higher activity levels and a larger operating platform. On the ratio side, net policy acquisition costs increased to 16.0% from 15.1% a year ago, while the total expense ratio improved to 27.2% from 28.1%.
The combined ratio increased slightly to 89.5% from 89.4% a year ago.
SKWD’s Q2 Financials Update
On the balance sheet, cash and cash equivalents rose to $219.2 million from $168.5 million as of 2025-end. Total assets reached $6.8 billion as of June 30, 2026, up from $4.8 billion as of 2025-end.
Notes payable jumped to $417.6 million from $100.4 million as of 2025-end.
Book value per share was approximately $28.55, up 14.6% from the figure as of Dec. 31, 2025.
SKWD’s Zacks Rank
SKWD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Here are some stocks from the broader Finance space that have also reported their quarterly results: Kinsale Capital Group, Inc. (KNSL - Free Report) , RLI Corp. (RLI - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) . Here's how they have performed:
Kinsale Capital delivered second-quarter 2026 net operating earnings of $5.54 per share, which outpaced the Zacks Consensus Estimate by 8.6%. The bottom line increased 15.9% year over year. KNSL’s operating revenues increased 16.8% year over year to $548.5 million, which surpassed the Zacks Consensus Estimate by 12.3%. The quarterly results benefited from growth in net earned premiums, increased net investment income, favorable prior-year reserve development and disciplined underwriting. However, these gains were partially offset by lower gross written premiums and higher operating expenses.
RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. RLI’s operating revenues for the reported quarter were $463 million, up 4.9% year over year. The top line beat the Zacks Consensus Estimate by 1.6%. The quarterly results reflect continued premium growth and higher investment income. However, weaker underwriting performance in the casualty segment partly offset these positives.
Arch Capital reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. ACGL’s revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. The results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income.