Skyward Specialty Insurance Group, a property and casualty (P&C) specialist insurance company, reported net income of $38.8 million for the second quarter of 2025, representing a 25.16% increase from $31 million in the same period of 2024.
Meanwhile, net income for the first half of 2025 was $80.9 million, up 19.3% from $67.8 million in H1’24.
Adjusted operating income for the quarter stood at $37.1 million, up from $33 million in Q2’24. In H1’25, adjusted operating income was $74.5 million, compared to $63.9 million in the prior-year period.
Gross written premiums (GWP) rose 17.9% in Q2 to $584.9 million, up from $496.2 million. For H1, GWP increased 17.3% to $1.12 billion from $954.9 million.
The firm attributed the GWP increase to double-digit premium growth in its agriculture and credit re/insurance, specialty programs, accident & health, and captives divisions—partially offset by declines in its global property and construction & energy solutions divisions.
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Net written premiums in Q2’25 increased 14.2% to $339.2 million, up from $297.1 million. In H1, they rose 16.8% to $682.5 million, compared to $584.2 million a year earlier.
Net earned premiums totalled $295.5 million in Q2, up 14.7% from $257.6 million. In the first half of 2025, they reached $595.9 million, up 20.6% from $493.9 million.
The company posted a combined ratio of 89.4% for the quarter, comprising a loss ratio of 61.3% and an expense ratio of 28.1%. This marks a slight improvement from 90.7% in Q2’24, which included a loss ratio of 61.7% and an expense ratio of 29.0%.
For H1, the combined ratio was 90.0%, with a loss ratio of 61.9% and an expense ratio of 28.1%, compared to 90.1% in H1’24, which had a loss ratio of 61.3% and an expense ratio of 28.8%.
Skyward Specialty noted that the Q2 loss ratio improved by 0.4 points, while the H1 loss ratio increased by 0.6 points, due to slightly higher catastrophe losses in the second quarter, driven by convective storms in the South and Midwest. H1’25 was also impacted by convective storms in the Midwest and California wildfires.
The expense ratio improved 0.9 points in Q2’25 and 0.7 points in H1’25, due to earnings leverage, partially offset by higher acquisition costs resulting from a shift in business mix.
Net investment income totalled $18.6 million for the quarter, down from $22 million. In H1, it was $37.9 million, compared to $40.3 million in the prior-year period. The declines were primarily driven by losses in the company’s alternative and strategic investments portfolio, stemming from a decline in the fair value of limited partnership investments. This was partially offset by increases in income from its fixed income portfolio due to a higher yield and larger asset base.
Andrew Robinson, Chairman and CEO of Skyward Specialty, commented, “Our results for the second quarter and for the first half of the year have been outstanding and reflect the strength of our specialised underwriting and claims capabilities, and our execution excellence. In an increasingly challenging market environment, our 18% growth for the second quarter and best ever 89.4% combined ratio are again a demonstration of the power of our portfolio diversity and our ability to deploy capital to attractive markets that enable us to grow underwriting profitability while managing our volatility. As market conditions continue to evolve, we are confident that the disciplined execution of our “Rule Our Niche” strategy will enable us to continue to deliver top quartile returns to our shareholders.”
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