Skyward Specialty posts net income of $119m in 2024 despite higher cat losses

Skyward Specialty Insurance Group has reported net income of $118.8 million for full year 2024, up from $86 million in 2023, despite elevated catastrophe losses driving a higher combined ratio of 92.3% for the year

The company’s adjusted operating income for 2024 rose to $126.7 million, up from $80.8 million in the prior year.

Gross written premiums increased 19.4%, rising from $1.46 billion to $1.74 billion, driven by double-digit premium growth in its surety, programs, captives, global property & agriculture, and transactional E&S underwriting divisions.

Net written premiums stood at $1.12 billion, a 23.4% increase from $910.7 million in 2023.

Net earned premiums grew 27.4% year over year to $1.6 billion from $829.1 million.

Skyward’s full-year combined ratio was 92.3%, with a loss ratio of 63.4% and an expense ratio of 28.9%, up from 90.7% in 2023.

The company noted that the loss ratio increased for both the full year and Q4 due to prior accident year development related to the LPT. Additionally, higher catastrophe losses, primarily from Hurricane Milton in Q4’24 and Hurricanes Helene and Beryl in Q3’24, also contributed.

Net investment income doubled in 2024 to $80.7 million from $40.3 million.

For the fourth quarter of 2024, Skyward reported a net income of $14.4 million, down from $29.3 million in Q4’23.

Its adjusted operating income in Q4’24 rose to $33.2 million, up from $24.3 million in the same period in 2023.

Gross written premiums for the quarter increased 20.8% to $388.4 million from $321.6 million. Net written premiums rose 26.6% to $271 million from $214.1 million, while net earned premiums grew 30.4% to $293.2 million from $225 million.

Its combined ratio for Q4’24 was 95.8%, up from 90.7% in Q4’23, with a loss ratio of 66.9% and an expense ratio of 28.9%.

The quarters net investment income increased by $6.7 million year over year to $20.7 million.

Andrew Robinson, Chairman and CEO of Skyward Speciality, commented, “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, with six out of eight divisions growing double-digits over the prior year. Our 16.3% return on equity for the year was again an excellent outcome. Throughout 2024 we continued to thoughtfully diversify our product portfolio, strategically launching new units including Media Liability, Life Sciences, Mortgage and Credit, and Renewable Energy. Our focus and disciplined execution of our “Rule Our Niche” strategy, and the extraordinary efforts of my 600 plus colleagues made 2024 another impressive year for our Company, and we are confident that we have built the foundation that will propel us in 2025 and beyond.”

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