Bowhead Specialty Holdings Inc. (NYSE: BOW), a specialty lines insurance group, saw its stock soar 11.33% on Tuesday morning, driven by impressive fourth-quarter 2024 results that surpassed analysts' expectations and a promising outlook for continued growth.
The company reported adjusted earnings of $0.42 per diluted share for the quarter ended December 31, 2024, significantly higher than the analyst consensus estimate of $0.33. Revenue for the quarter stood at $119.3 million, outperforming the analysts' expectation of $101.43 million. Gross written premiums increased by 26.3% year-over-year to $184.8 million, driven by strong growth across all underwriting divisions, particularly in the Casualty division, which saw a 43.1% increase.
The strong financial performance and growth outlook were well-received by investors, propelling the stock higher. Bowhead Specialty's CEO, Stephen Sills, expressed excitement about the company's prospects, stating, "This is just the beginning for Bowhead, and I couldn't be more excited for what I expect to be a company that is capable of cross cycle profitability." The company's focus on profitable growth, continued innovation, and strong execution across all underwriting divisions contributed to its success in the fourth quarter and full year 2024.
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