Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward
Specialty” or the “Company”) today reported third quarter 2023 net
income of $21.7 million, or $0.57 per diluted share, compared to a
net loss of $2.4 million, or $0.15 per diluted share, for the same
2022 period. Net income for the first nine months of 2023 was $56.7
million, or $1.50 per diluted share, compared to $19.0 million, or
$0.58 per diluted share for the same 2022 period.
Adjusted operating income(1) for the third
quarter of 2023 was $25.0 million, or $0.65 per diluted share,
compared to $10.7 million, or $0.33 per diluted share, for the same
2022 period. Adjusted operating income(1) for the first nine months
of 2023 was $56.5 million, or $1.49 per diluted share, compared to
$46.9 million, or $1.44 per diluted share, for the same 2022
period.
Highlights for the quarter included:
- Gross written premiums increased
31.6%.
- Underwriting income(1) of $22.3
million compared to $0.3 million for the third quarter of
2022.
- Combined ratio of 90.2% compared to
99.8% for the third quarter of 2022.
- Current
accident year non-cat loss and LAE ratio of 60.7% compared to 62.0%
for the third quarter of 2022.
- Cat loss and
LAE ratio of 0.4% compared to 2.8% for the third quarter of
2022.
- Annualized
return on equity(1) of 16.4% compared to (2.3)% for the same 2022
period.
- Annualized
return on tangible equity(1) of 19.7% compared to (3.0)% for the
same 2022 period.
(1) See "Reconciliation of Non-GAAP Financial Measures" |
Skyward Specialty CEO Andrew Robinson commented,
"We continued to deliver exceptional underwriting results in the
third quarter. We achieved a company best 90.2% combined ratio,
grew gross written premiums over 30%, and delivered a 16.4%
annualized return on equity. This continues the impressive trend of
reporting double-digit gross written premiums growth, a low 90's
combined ratio inclusive of cats, and mid-teens annualized return
on equity in every quarter as a public company. Our results
demonstrate again our ability to execute at a high level and meet
and exceed the key metrics that we set out. We have built a
genuinely distinctive company and I strongly believe that our
success, and our team’s commitment to improve on that success, will
continue."
Results of Operations
Underwriting Results
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
Three months ended September 30, |
|
Nine months ended September 30, |
unaudited |
|
|
2023 |
|
|
|
2022 |
|
|
%Change |
|
|
2023 |
|
|
|
2022 |
|
|
%Change |
Gross written premiums |
|
$ |
355,732 |
|
|
$ |
270,250 |
|
|
31.6 |
% |
|
$ |
1,138,224 |
|
|
$ |
879,119 |
|
|
29.5 |
% |
Ceded written premiums |
|
$ |
(75,036 |
) |
|
$ |
(98,795 |
) |
|
(24.0 |
)% |
|
$ |
(441,650 |
) |
|
$ |
(383,532 |
) |
|
15.2 |
% |
Net retention |
|
|
78.9 |
% |
|
|
63.4 |
% |
|
NM(1) |
|
|
|
61.2 |
% |
|
|
56.4 |
% |
|
NM(1) |
|
Net written premiums |
|
$ |
280,696 |
|
|
$ |
171,455 |
|
|
63.7 |
% |
|
$ |
696,574 |
|
|
$ |
495,587 |
|
|
40.6 |
% |
Net earned premiums |
|
$ |
227,033 |
|
|
$ |
158,048 |
|
|
43.6 |
% |
|
$ |
604,211 |
|
|
$ |
445,851 |
|
|
35.5 |
% |
(1)Not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in gross written premiums for the
third quarter of 2023, when compared to the same 2022 period, was
driven by double-digit premium growth from all eight of our
underwriting divisions.
The increase in gross written premiums for the
first nine months of 2023, when compared to the same 2022 periods,
was driven by double-digit premium growth from nearly all of our
underwriting divisions.
During the third quarter and first nine months
of 2023, the Company rescinded a quota share reinsurance contract,
the impact of which increased net written premiums by $50.5 million
and net earned premiums by $13.1 million, respectively, that had
previously been ceded under the contract through the first six
months of 2023.
Combined Ratio |
|
Three months ended September 30, |
|
Nine months ended September 30, |
(unaudited) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Non-cat loss and LAE(1) |
|
60.7 |
% |
|
62.0 |
% |
|
60.9 |
% |
|
62.8 |
% |
Cat loss and LAE(1) |
|
0.4 |
% |
|
2.8 |
% |
|
1.8 |
% |
|
1.0 |
% |
Prior accident year development - LPT(2) |
|
(0.1 |
)% |
|
5.9 |
% |
|
(0.2 |
)% |
|
2.1 |
% |
Loss
Ratio |
|
61.0 |
% |
|
70.7 |
% |
|
62.5 |
% |
|
65.9 |
% |
Net policy acquisition costs |
|
15.0 |
% |
|
11.0 |
% |
|
13.0 |
% |
|
10.2 |
% |
Other operating and general expenses |
|
15.1 |
% |
|
19.0 |
% |
|
16.3 |
% |
|
19.5 |
% |
Commission and fee income |
|
(0.9 |
)% |
|
(0.9 |
)% |
|
(1.0 |
)% |
|
(0.9 |
)% |
Expense
ratio |
|
29.2 |
% |
|
29.1 |
% |
|
28.3 |
% |
|
28.8 |
% |
Combined
ratio |
|
90.2 |
% |
|
99.8 |
% |
|
90.8 |
% |
|
94.7 |
% |
Adjusted Underwriting
Ratios |
|
|
|
|
|
|
|
|
Adjusted loss ratio(2) |
|
61.1 |
% |
|
64.8 |
% |
|
62.7 |
% |
|
63.8 |
% |
Expense ratio |
|
29.2 |
% |
|
29.1 |
% |
|
28.3 |
% |
|
28.8 |
% |
Adjusted combined
ratio(2) |
|
90.3 |
% |
|
93.9 |
% |
|
91.0 |
% |
|
92.6 |
% |
(1)Current accident year |
(2)See "Reconciliation of Non-GAAP Financial Measures" |
|
|
|
|
|
|
|
|
|
The loss ratio for the third quarter of 2023
improved 9.7 points when compared to the same 2022 period. The
non-cat loss and LAE ratio improved 1.3 points when compared to the
same 2022 period, primarily driven by the shift in the mix of
business and continued run-off of exited business. Catastrophe
losses only added 0.4 points to the current quarter loss ratio
compared to the third quarter of 2022, which was impacted by 2.8
points of catastrophe losses from Hurricane Ian. The third quarter
of 2022 was impacted by strengthening LPT reserves by $14.4 million
partially offset by reinsurance recoveries of $5.1 million, which
added 5.9 points to the 2022 loss ratio.
The loss ratio for the first nine months of 2023
improved 3.4 points when compared to the same 2022 period. The
non-cat loss and LAE ratio improved 1.9 points when compared to the
same 2022 period, primarily driven by the shift in the mix of
business and continued run-off of exited business. Catastrophe
losses from second and third quarter convective storms and first
quarter wind and hail events, including tornadoes, added 1.8 points
to the loss ratio compared to the first nine months of 2022, which
was impacted by 1.0 point of catastrophe losses from Hurricane Ian.
The loss ratio for the first nine months of 2022 included 2.1
points from the net impact of LPT reserve strengthening.
The expense ratios for the third quarter and
first nine months of 2023 increased slightly and improved 0.5
points, respectively, when compared to the same 2022 periods. The
increase in the net policy acquisition cost ratios for the third
quarter and first nine months of 2023, when compared to the same
2022 periods, was primarily driven by the (i) shift in the mix of
business, and (ii) impact of the cancellation of the quota share
reinsurance contract. The improvement in the other operating and
general expenses ratios for the third quarter and first nine months
of 2023, when compared to the same 2022 periods, was primarily due
to the increase in earned premiums.
The expense ratios for the third quarter and
first nine months of 2023 exclude the impact of IPO related stock
compensation and secondary offering expenses, which are reported in
other expenses in our condensed consolidated statements of
operations and comprehensive income (loss).
Investment Results
Net Investment Income (Loss) |
|
|
|
|
|
|
|
|
$ in thousands |
|
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
(unaudited) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Short-term and money market
investments |
|
$ |
3,148 |
|
|
$ |
496 |
|
|
$ |
8,070 |
|
|
$ |
631 |
|
Core fixed income |
|
|
8,549 |
|
|
|
4,682 |
|
|
|
21,855 |
|
|
|
10,637 |
|
Opportunistic fixed
income |
|
|
(47 |
) |
|
|
632 |
|
|
|
(5,617 |
) |
|
|
19,106 |
|
Equities |
|
|
1,438 |
|
|
|
171 |
|
|
|
2,007 |
|
|
|
1,279 |
|
Net investment income(1) |
|
$ |
13,088 |
|
|
$ |
5,981 |
|
|
$ |
26,315 |
|
|
$ |
31,653 |
|
|
|
|
|
|
|
|
|
|
Net unrealized (losses) gains
on securities still held |
|
$ |
(6,391 |
) |
|
$ |
(6,297 |
) |
|
$ |
2,394 |
|
|
$ |
(26,180 |
) |
Net realized gains
(losses) |
|
$ |
3,407 |
|
|
$ |
(1,008 |
) |
|
$ |
934 |
|
|
$ |
63 |
|
(1)excludes income from operating cash for
the third quarter and first nine months ended
September, 30, 2023 and 2022. |
Net investment income for the third quarter and
first nine months of 2023 increased $7.1 million and decreased $5.3
million, respectively, when compared to the same 2022 periods.
The increase in income from our core fixed
income portfolio for the third quarter and first nine months of
2023 was due to (i) a larger asset base as we continued to increase
our allocation to this part of our investment portfolio and (ii) a
higher book yield of 4.2% at September 30, 2023 compared to 3.3% at
September 30, 2022. The increase in income from short-term and
money market investments for the third quarter and first nine
months of 2023, when compared to the same 2022 periods, was due to
a larger asset base and higher investment yields when compared to
the same 2022 periods. The opportunistic fixed income portfolio was
impacted by a decline in the fair value of limited partnership
investments for the third quarter and first nine months of 2023
when compared to the same 2022 periods.
Stockholders’ Equity
Stockholders’ equity was $535.4 million at
September 30, 2023 which represents an increase of 2.4% when
compared to stockholders' equity of $522.7 million at June 30,
2023. The increase in stockholders’ equity was primarily due to net
income.
Conference Call
At 8 a.m. central time tomorrow,
November 7, 2023, Skyward Specialty management will hold a
conference call to discuss quarterly results with insurance
industry analysts. Interested parties may listen to the discussion
at investors.skywardinsurance.com under Events &
Presentations. Additionally, investors can access the earnings call
via conference call by registering via the conference link. Users
will receive dial-in information and a unique PIN to join the call
upon registering.
Non-GAAP Financial Measures
This release contains certain financial measures
and ratios that are not required by, or presented in accordance
with, generally accepted accounting principles in the United States
(“GAAP”). We refer to these measures as “non-GAAP financial
measures.” We use these non-GAAP financial measures when planning,
monitoring, and evaluating our performance.
We have chosen to exclude the net impact of the
Loss Portfolio Transfer (“LPT”), all development on reserves fully
or partially covered by the LPT and amortization of deferred gains
associated with recoveries of prior LPT reserve strengthening in
certain non-GAAP metrics, where noted, as the business subject to
the LPT is not representative of our continuing business strategy.
The business subject to the LPT is primarily related to policy
years 2017 and prior, was generated and managed under prior
leadership, and has either been exited or substantially
repositioned during the reevaluation of our portfolio. We consider
these non-GAAP financial measures to be useful metrics for our
management and investors to facilitate operating performance
comparisons from period to period. While we believe that these
non-GAAP financial measures are useful in evaluating our business,
this information should be considered supplemental in nature and is
not meant to be a substitute for revenue or net income, in each
case as recognized in accordance with GAAP. In addition, other
companies, including companies in our industry, may calculate such
measures differently, which reduces their usefulness as comparative
measures. For more information regarding these non-GAAP financial
measures and a reconciliation of such measures to comparable GAAP
financial measures, see the section entitled “Reconciliation of
Non-GAAP Financial Measures.”
About Skyward Specialty Insurance Group,
Inc.
Skyward Specialty is a rapidly growing and
innovative specialty insurance company, delivering commercial
property and casualty products and solutions on a non-admitted and
admitted basis. The Company operates through eight underwriting
divisions - Accident & Health, Captives, Global Property &
Agriculture, Industry Solutions, Professional Lines, Programs,
Surety and Transactional E&S. SKWD stock is traded on the
Nasdaq Global Select Market, which represents the top fourth of all
Nasdaq listed companies.
Skyward Specialty's subsidiary insurance
companies consist of Houston Specialty Insurance Company, Imperium
Insurance Company, Great Midwest Insurance Company, and Oklahoma
Specialty Insurance Company. These insurance companies are rated A-
(Excellent) with positive outlook by A.M. Best Company. Additional
information about Skyward Specialty can be found on our website at
www.skywardinsurance.com.
Forward-Looking Statements
Except for historical information, all other
information in this news release consists of forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements are typically,
but not always, identified through use of the words "believe,"
"expect," "enable," "may," "will," "could," "intends," "estimate,"
"anticipate," "plan," "predict," "probable," "potential,"
"possible," "should," "continue," and other words of similar
meaning. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated or implied. The most significant
of these uncertainties are described in Skyward Specialty's Form
10-K, and include (but are not limited to) legislative changes at
both the state and federal level, state and federal regulatory rule
making promulgations and adjudications, class action litigation
involving the insurance industry and judicial decisions affecting
claims, policy coverages and the general costs of doing business,
the potential loss of key members of our management team or key
employees and our ability to attract and retain personnel, the
impact of competition on products and pricing, inflation in the
costs of the products and services insurance pays for, product
development, geographic spread of risk, weather and weather-related
events, other types of catastrophic events, our ability to obtain
reinsurance coverage at prices and on terms that allow us to
transfer risk and adequately protect our company against financial
loss, and losses resulting from reinsurance counterparties failing
to pay us on reinsurance claims. These forward-looking statements
speak only as of the date of this release and the Company does not
undertake any obligation to update or revise any forward-looking
information to reflect changes in assumptions, the occurrence of
unanticipated events, or otherwise.
Skyward Specialty Insurance Group, Inc.
Media contact:Haley
Doughtyhdoughty@skywardinsurance.com713-935-4944
or
Investor contact:Natalie Schoolcraft,
nschoolcraft@skywardinsurance.com614-494-4988
Skyward Specialty Insurance Group,
Inc.
Consolidated Balance Sheets |
|
|
|
|
($ in thousands, except share
and per share amounts) |
|
|
|
|
(unaudited) |
|
September 30,2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
Investments: |
|
|
|
|
Fixed maturity securities, available-for-sale, at fair value
(amortized cost of $942,841 and $662,616, respectively) |
|
$ |
874,864 |
|
|
$ |
607,572 |
|
Fixed maturity securities, held-to-maturity, at amortized cost (net
of allowance for credit losses of $320 as of September 30,
2023) |
|
|
44,437 |
|
|
|
52,467 |
|
Equity securities, at fair value |
|
|
107,387 |
|
|
|
120,169 |
|
Mortgage loans (at fair value as of September 30, 2023; at
amortized cost as of December 31, 2022) |
|
|
59,318 |
|
|
|
51,859 |
|
Other long-term investments |
|
|
115,823 |
|
|
|
129,142 |
|
Short-term investments, at fair value |
|
|
194,049 |
|
|
|
121,158 |
|
Total investments |
|
|
1,395,878 |
|
|
|
1,082,367 |
|
Cash and cash equivalents |
|
|
53,730 |
|
|
|
45,438 |
|
Restricted cash |
|
|
49,536 |
|
|
|
79,573 |
|
Premiums receivable, net |
|
|
211,940 |
|
|
|
139,215 |
|
Reinsurance recoverables,
net |
|
|
615,675 |
|
|
|
581,359 |
|
Ceded unearned premium |
|
|
218,784 |
|
|
|
157,645 |
|
Deferred policy acquisition
costs |
|
|
99,255 |
|
|
|
68,938 |
|
Deferred income taxes |
|
|
35,006 |
|
|
|
36,188 |
|
Goodwill and intangible
assets, net |
|
|
88,808 |
|
|
|
89,870 |
|
Other assets |
|
|
82,083 |
|
|
|
82,846 |
|
Total assets |
|
$ |
2,850,695 |
|
|
$ |
2,363,439 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
Liabilities: |
|
|
|
|
Reserves for losses and loss adjustment expenses |
|
$ |
1,268,711 |
|
|
$ |
1,141,757 |
|
Unearned premiums |
|
|
596,011 |
|
|
|
442,509 |
|
Deferred ceding commission |
|
|
41,704 |
|
|
|
29,849 |
|
Reinsurance and premium payables |
|
|
161,832 |
|
|
|
113,696 |
|
Funds held for others |
|
|
53,963 |
|
|
|
36,858 |
|
Accounts payable and accrued liabilities |
|
|
64,407 |
|
|
|
48,499 |
|
Notes payable |
|
|
50,000 |
|
|
|
50,000 |
|
Subordinated debt, net of debt issuance costs |
|
|
78,670 |
|
|
|
78,609 |
|
Total liabilities |
|
|
2,315,298 |
|
|
|
1,941,777 |
|
Stockholders’ equity |
|
|
|
|
Series A preferred stock, $0.01 par value; 10,000,000 and 2,000,000
shares authorized, 0 and 1,969,660 shares issued and outstanding,
respectively |
|
|
— |
|
|
|
20 |
|
Common stock, $0.01 par value, 500,000,000 and 168,000,000 shares
authorized, 37,677,521 and 16,832,955 shares issued,
respectively |
|
|
377 |
|
|
|
168 |
|
Treasury stock, $0.01 par value, 0 and 233,289 shares,
respectively |
|
|
— |
|
|
|
(2 |
) |
Additional paid-in capital |
|
|
645,292 |
|
|
|
577,289 |
|
Stock notes receivable |
|
|
(5,625 |
) |
|
|
(6,911 |
) |
Accumulated other comprehensive loss |
|
|
(53,673 |
) |
|
|
(43,485 |
) |
Accumulated deficit |
|
|
(50,974 |
) |
|
|
(105,417 |
) |
Total stockholders’ equity |
|
|
535,397 |
|
|
|
421,662 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,850,695 |
|
|
$ |
2,363,439 |
|
|
|
|
|
|
Skyward Specialty Insurance Group,
Inc.
Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss) |
($ in thousands, except share
and per share amounts) |
|
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
(unaudited) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
Net earned premiums |
|
$ |
227,033 |
|
|
$ |
158,048 |
|
|
$ |
604,211 |
|
|
$ |
445,851 |
|
Commission and fee income |
|
|
2,085 |
|
|
|
1,362 |
|
|
|
5,817 |
|
|
|
3,652 |
|
Net investment income |
|
|
13,089 |
|
|
|
5,988 |
|
|
|
26,318 |
|
|
|
31,667 |
|
Net investment (losses) gains |
|
|
(2,984 |
) |
|
|
(7,305 |
) |
|
|
3,328 |
|
|
|
(26,117 |
) |
Total revenues |
|
|
239,223 |
|
|
|
158,093 |
|
|
|
639,674 |
|
|
|
455,053 |
|
Expenses: |
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
|
138,536 |
|
|
|
111,746 |
|
|
|
377,841 |
|
|
|
293,536 |
|
Underwriting, acquisition and insurance expenses |
|
|
68,315 |
|
|
|
47,340 |
|
|
|
176,653 |
|
|
|
132,258 |
|
Interest expense |
|
|
2,632 |
|
|
|
1,738 |
|
|
|
7,250 |
|
|
|
4,280 |
|
Amortization expense |
|
|
463 |
|
|
|
387 |
|
|
|
1,336 |
|
|
|
1,160 |
|
Other expenses |
|
|
1,482 |
|
|
|
— |
|
|
|
4,061 |
|
|
|
— |
|
Total expenses |
|
|
211,428 |
|
|
|
161,211 |
|
|
|
567,141 |
|
|
|
431,234 |
|
Income (loss) before income
taxes |
|
|
27,795 |
|
|
|
(3,118 |
) |
|
|
72,533 |
|
|
|
23,819 |
|
Income tax expense
(benefit) |
|
|
6,084 |
|
|
|
(719 |
) |
|
|
15,814 |
|
|
|
4,842 |
|
Net income
(loss) |
|
|
21,711 |
|
|
|
(2,399 |
) |
|
|
56,719 |
|
|
|
18,977 |
|
Net income attributable to
participating securities |
|
|
— |
|
|
|
— |
|
|
|
1,492 |
|
|
|
9,124 |
|
Net income (loss) attributable
to common stockholders |
|
$ |
21,711 |
|
|
$ |
(2,399 |
) |
|
$ |
55,227 |
|
|
$ |
9,853 |
|
Comprehensive income
(loss): |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
21,711 |
|
|
$ |
(2,399 |
) |
|
$ |
56,719 |
|
|
$ |
18,977 |
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
Unrealized gains and losses on investments: |
|
|
|
|
|
|
|
|
Net change in unrealized losses on investments, net of tax |
|
|
(8,722 |
) |
|
|
(17,806 |
) |
|
|
(5,309 |
) |
|
|
(49,308 |
) |
Reclassification adjustment for (losses) gains on securities no
longer held, net of tax |
|
|
(3,667 |
) |
|
|
31 |
|
|
|
(4,879 |
) |
|
|
362 |
|
Total other comprehensive loss |
|
|
(12,389 |
) |
|
|
(17,775 |
) |
|
|
(10,188 |
) |
|
|
(48,946 |
) |
Comprehensive income
(loss) |
|
$ |
9,322 |
|
|
$ |
(20,174 |
) |
|
$ |
46,531 |
|
|
$ |
(29,969 |
) |
|
|
|
|
|
|
|
|
|
Skyward Specialty Insurance Group,
Inc.
Share and Per Share Data |
|
|
|
|
|
|
|
|
($ in thousands, except share
and per share amounts) |
|
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
(unaudited) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares |
|
|
36,743,393 |
|
|
|
16,465,588 |
|
|
|
35,502,843 |
|
|
|
16,464,313 |
|
Weighted average diluted
shares |
|
|
38,403,843 |
|
|
|
16,465,588 |
|
|
|
37,830,431 |
|
|
|
32,598,669 |
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share |
|
$ |
0.59 |
|
|
$ |
(0.15 |
) |
|
$ |
1.56 |
|
|
$ |
0.60 |
|
Diluted earnings (loss) per
share |
|
$ |
0.57 |
|
|
$ |
(0.15 |
) |
|
$ |
1.50 |
|
|
$ |
0.58 |
|
Basic adjusted operating
earnings per share |
|
$ |
0.68 |
|
|
$ |
0.34 |
|
|
$ |
1.55 |
|
|
$ |
1.48 |
|
Diluted adjusted operating
earnings per share |
|
$ |
0.65 |
|
|
$ |
0.33 |
|
|
$ |
1.49 |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
Annualized ROE(1) |
|
|
16.4 |
% |
|
(2.3 |
)% |
|
|
15.8 |
% |
|
|
6.1 |
% |
Annualized adjusted
ROE(2) |
|
|
18.9 |
% |
|
|
10.4 |
% |
|
|
15.8 |
% |
|
|
15.2 |
% |
Annualized ROTE(3) |
|
|
19.7 |
% |
|
(3.0 |
)% |
|
|
19.4 |
% |
|
|
7.9 |
% |
Annualized adjusted ROTE(4) |
|
|
22.8 |
% |
|
|
13.4 |
% |
|
|
19.4 |
% |
|
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30 |
|
December 31 |
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
|
|
|
|
37,677,521 |
|
|
|
16,599,666 |
|
Fully diluted shares
outstanding |
|
|
|
|
|
|
39,506,135 |
|
|
|
33,290,638 |
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
|
|
|
|
$ |
14.36 |
|
|
$ |
25.82 |
|
Fully diluted book value per
share |
|
|
|
|
|
$ |
13.69 |
|
|
$ |
12.87 |
|
Fully
diluted tangible book value per share |
|
|
|
|
|
$ |
11.45 |
|
|
$ |
10.17 |
|
|
|
|
|
|
|
|
|
|
(1) Annualized
ROE is net income expressed on an annualized basis as a percentage
of average beginning and ending stockholders' equity during the
period |
(2) Annualized
adjusted ROE is adjusted operating income expressed on an
annualized basis as a percentage of average beginning and ending
stockholders' equity during the period |
(3) Annualized
ROTE is net income expressed on an annualized basis as a percentage
of average beginning and ending tangible stockholders' equity
during the period |
(4)
Annualized adjusted ROTE is adjusted operating income expressed on
an annualized basis as a percentage of average beginning and ending
tangible stockholders' equity during the period |
Skyward Specialty Insurance Group,
Inc. Reconciliation of Non-GAAP Financial
Measures
Adjusted operating income
(loss) – We define adjusted operating income (loss) as net
income (loss) excluding the impact of certain items that may not be
indicative of underlying business trends, operating results, or
future outlook, net of tax impact. We use adjusted operating income
as an internal performance measure in the management of our
operations because we believe it gives our management and other
users of our financial information useful insight into our results
of operations and our underlying business performance. Adjusted
operating income (loss) should not be viewed as a substitute for
net income (loss) calculated in accordance with GAAP, and other
companies may define adjusted operating income
differently.
($ in thousands) |
Three months ended September 30, |
|
Nine months ended September 30, |
(unaudited) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
Pre-tax |
|
After-tax |
|
Pre-tax |
|
After-tax |
|
Pre-tax |
|
After-tax |
|
Pre-tax |
|
After-tax |
Income (loss) as reported |
$ |
27,795 |
|
|
$ |
21,711 |
|
|
$ |
(3,118 |
) |
|
$ |
(2,399 |
) |
|
$ |
72,533 |
|
$ |
56,719 |
|
$ |
23,819 |
|
|
$ |
18,977 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses |
|
1,482 |
|
|
|
1,171 |
|
|
|
— |
|
|
|
— |
|
|
|
4,061 |
|
|
3,208 |
|
|
— |
|
|
|
— |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net impact of loss portfolio
transfer |
|
266 |
|
|
|
210 |
|
|
|
(9,271 |
) |
|
|
(7,324 |
) |
|
|
970 |
|
|
766 |
|
|
(9,271 |
) |
|
|
(7,324 |
) |
Net investment (losses)
gains |
|
(2,984 |
) |
|
|
(2,357 |
) |
|
|
(7,305 |
) |
|
|
(5,771 |
) |
|
|
3,328 |
|
|
2,629 |
|
|
(26,117 |
) |
|
|
(20,633 |
) |
Adjusted operating
income |
$ |
31,995 |
|
|
$ |
25,029 |
|
|
$ |
13,458 |
|
|
$ |
10,696 |
|
|
$ |
72,296 |
|
$ |
56,532 |
|
$ |
59,207 |
|
|
$ |
46,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income (loss) – We
define underwriting income (loss) as income (loss) before income
taxes excluding net investment income, net investment gains
(losses), impairment charges, interest expense, amortization
expense and other income and expenses. Underwriting income (loss)
represents the pre-tax profitability of our underwriting operations
and allows us to evaluate our underwriting performance without
regard to investment income. We use this metric as we believe it
gives our management and other users of our financial information
useful insight into our underlying business performance.
Underwriting income (loss) should not be viewed as a substitute for
pre-tax income (loss) calculated in accordance with GAAP, and other
companies may define underwriting income (loss) differently.
Skyward Specialty Insurance Group,
Inc. Reconciliation of Non-GAAP Financial
Measures
($ in thousands) |
|
Three months ended September 30, |
|
Nine months ended September 30, |
(unaudited) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Income (loss) before federal
income tax expense (benefit) |
|
$ |
27,795 |
|
|
$ |
(3,118 |
) |
|
$ |
72,533 |
|
$ |
23,819 |
|
Add: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
2,632 |
|
|
|
1,738 |
|
|
|
7,250 |
|
|
4,280 |
|
Amortization expense |
|
|
463 |
|
|
|
387 |
|
|
|
1,336 |
|
|
1,160 |
|
Other expenses |
|
|
1,482 |
|
|
|
— |
|
|
|
4,061 |
|
|
— |
|
Less: |
|
|
|
|
|
|
|
|
Net investment income |
|
|
13,089 |
|
|
|
5,988 |
|
|
|
26,318 |
|
|
31,667 |
|
Net investment (losses)
gains |
|
|
(2,984 |
) |
|
|
(7,305 |
) |
|
|
3,328 |
|
|
(26,117 |
) |
Underwriting
income |
|
$ |
22,267 |
|
|
$ |
324 |
|
|
$ |
55,534 |
|
$ |
23,709 |
|
|
|
|
|
|
|
|
|
|
Adjusted Loss Ratio / Adjusted Combined
Ratio – We define adjusted loss ratio and adjusted
combined ratio as the corresponding ratio (calculated in accordance
with GAAP), excluding losses and LAE related to the LPT and all
development on reserves fully or partially covered by the LPT and
amortization of deferred gains associated with recoveries of prior
LPT reserve strengthening. We use these adjusted ratios as internal
performance measures in the management of our operations because we
believe they give our management and other users of our financial
information useful insight into our results of operations and our
underlying business performance. Our adjusted loss ratio and
adjusted combined ratio should not be viewed as substitutes for our
loss ratio and combined ratio, respectively.
($ in thousands) |
|
Three months ended September 30, |
|
Nine months ended September 30, |
(unaudited) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net earned premiums |
|
$ |
227,033 |
|
|
$ |
158,048 |
|
|
$ |
604,211 |
|
|
$ |
445,851 |
|
|
|
|
|
|
|
|
|
|
Losses and LAE |
|
|
138,536 |
|
|
|
111,746 |
|
|
|
377,841 |
|
|
|
293,536 |
|
Pre-tax net impact of loss
portfolio transfer |
|
|
(266 |
) |
|
|
9,271 |
|
|
|
(970 |
) |
|
|
9,271 |
|
Adjusted losses and LAE |
|
$ |
138,802 |
|
|
$ |
102,475 |
|
|
$ |
378,811 |
|
|
$ |
284,265 |
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
|
61.0 |
% |
|
|
70.7 |
% |
|
|
62.5 |
% |
|
|
65.9 |
% |
Net impact of LPT |
|
(0.1 |
)% |
|
|
5.9 |
% |
|
(0.2 |
)% |
|
|
2.1 |
% |
Adjusted Loss
Ratio |
|
|
61.1 |
% |
|
|
64.8 |
% |
|
|
62.7 |
% |
|
|
63.8 |
% |
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
90.2 |
% |
|
|
99.8 |
% |
|
|
90.8 |
% |
|
|
94.7 |
% |
Net impact of LPT |
|
(0.1 |
)% |
|
|
5.9 |
% |
|
(0.2 |
)% |
|
|
2.1 |
% |
Adjusted Combined
Ratio |
|
|
90.3 |
% |
|
|
93.9 |
% |
|
|
91.0 |
% |
|
|
92.6 |
% |
|
|
|
|
|
|
|
|
|
Tangible Stockholders’ Equity –
We define tangible stockholders’ equity as stockholders’ equity
less goodwill and intangible assets. Our definition of tangible
stockholders’ equity may not be comparable to that of other
companies and should not be viewed as a substitute for
stockholders’ equity calculated in accordance with GAAP. We use
tangible stockholders’ equity internally to evaluate the strength
of our balance sheet and to compare returns relative to this
measure.
Skyward Specialty Insurance Group,
Inc. Reconciliation of Non-GAAP Financial
Measures
($ in thousands) |
|
September 30 |
|
December 31 |
(unaudited) |
|
|
2023 |
|
|
2022 |
|
|
2022 |
Stockholders' equity |
|
$ |
535,397 |
|
$ |
399,817 |
|
$ |
421,662 |
Less: Goodwill and intangible
assets |
|
|
88,808 |
|
|
90,237 |
|
|
89,870 |
Tangible stockholders'
equity |
|
$ |
446,589 |
|
$ |
309,580 |
|
$ |
331,792 |
|
|
|
|
|
|
|
Skyward Specialty Insura... (NASDAQ:SKWD)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Skyward Specialty Insura... (NASDAQ:SKWD)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024