HOUSTON, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) ("Skyward Group" or the "Company") today reported third quarter 2026 results.
Summary Financial
Data
--------------- --------------- --------------- ---------------
($ in thousands,
except per share
amounts) Three months ended September 30, Nine months ended September 30,
-------------------------------- --------------------------------
unaudited 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
Managed
premiums(1) $ 1,320,600 $ 1,174,191 $ 3,346,984 $ 2,884,425
Gross written
premiums(1)(2) $ 803,485 $ 737,288 $ 2,211,743 $ 1,985,719
Fee generating
gross written
premiums(1)(2) $ 517,115 $ 436,903 $ 1,135,241 $ 898,706
Net written
premiums $ 501,778 $ 441,167 $ 1,420,277 $ 1,123,651
Net income $ 49,796 $ 45,901 $ 148,565 $ 126,798
Net operating
income(3) $ 58,486 $ 44,228 $ 174,577 $ 119,512
Diluted earnings
per share $ 1.09 $ 1.10 $ 3.26 $ 3.03
Diluted operating
earnings per
share $ 1.28 $ 1.05 $ 3.83 $ 2.84
Annualized ROE (4) 15.7% 19.7% 17.3% 19.3%
Annualized
operating ROE
(5) 18.4% 19.0% 20.4% 18.2%
(1) Select third quarter 2025 metrics for the Skyward
Group and Apollo are presented on a pro forma basis
for comparative purposes only and are not necessarily
indicative of the operating results that Skyward Group
would have recognized had the acquisition actually
been completed on January 1, 2025. Pro forma information
is unaudited.
(2) Prior year pro forma gross written premiums are
adjusted for the impact of the change in participations.
See "Reconciliation of Non-GAAP Financial Measures".
(3) See "Reconciliation of Non-GAAP Financial Measures"
(4) Annualized ROE is net income expressed on an annualized
basis as a percentage of average beginning and ending
stockholders' equity during the period.
(5) Annualized operating ROE is operating income expressed
on an annualized basis as a percentage of average
beginning and ending stockholders' equity during the
period.
Highlights for the third quarter included:
-- Managed premiums increased 12.5%(2) compared to 2025;
-- Gross written premiums increased 9.0%(1)(2) compared to 2025;
-- Fee-generating gross written premiums(1)(2) increased 18.4% compared to
2025;
-- Combined ratio of 89.9%;
-- Ex-Cat combined ratio of 88.1%;
-- Annualized return on equity(4) and annualized operating return on
equity(5) of 17.3% and 20.4%, respectively, for the nine months ended
September 30, 2026; and,
-- Book value per share of $28.74, an increase of 15.3% compared to December
31, 2025.
Skyward Group Chairman and CEO Andrew Robinson commented, "The outstanding quarter and year to date performance reflects the strength of the Skyward Group Rule Our Niche(TM) strategy and the benefits of the diversified portfolio we have built. Through the first nine months of the year, we have delivered an annualized operating ROE of over 20% while growing managed premiums by 16%. In the quarter, gross written premiums grew 9.0%, while fee-generating gross written premiums increased 18%. The diversity of our portfolio and the complementary strength of our capital-light, fee-based platform continue to be meaningful differentiators, providing multiple avenues for profitable growth and enabling us to remain disciplined in deploying capital toward the most compelling opportunities as market conditions evolve. Across Skyward Group, we continue to execute at a high level, and we remain well positioned to continue to deliver top-quartile financial returns for our shareholders."
Results of Operations
Gross Written Premiums By Underwriting Division
($ in thousands) Three months ended September 30, Nine months ended September 30,
2026 2025 % Change 2026 2025 % Change
---------- --------- ---------- ----------- ----------- ----------
Skyward Specialty
Segment
Accident &
Health $ 99,131 $ 63,147 57.0% $ 286,596 $ 186,805 53.4%
Captives 50,185 67,956 (26.2)% 172,350 211,879 (18.7)%
Credit & Surety 67,210 52,785 27.3% 195,143 152,944 27.6%
Energy Solutions 55,646 66,576 (16.4)% 167,202 216,992 (22.9)%
Global
Agriculture 192,161 159,057 20.8% 406,452 296,853 36.9%
Global Property 22,318 27,649 (19.3)% 127,944 158,327 (19.2)%
Professional
Lines 31,323 34,637 (9.6)% 102,529 112,409 (8.8)%
Strategic
Distribution
Partners 109,565 82,771 32.4% 315,773 231,401 36.5%
Transactional
E&S 40,745 50,950 (20.0)% 143,105 156,417 (8.5)%
-------- -------- ---------- ----------
Total
continuing
business $ 668,284 $ 605,528 10.4% $ 1,917,094 $ 1,724,027 11.2%
Exited business (2) 981 NM(1) 765 2,722 NM(1)
-------- -------- ---------- ----------
Total Skyward
Specialty
Segment gross
written
premiums $ 668,282 $ 606,509 10.2% $ 1,917,859 $ 1,726,749 11.1%
-------- -------- ---------- ----------
Apollo
Segment(2)(3)
Syndicate 1969 67,520 61,105 10.5% 191,959 160,164 19.9%
Syndicate 1971 67,683 69,674 (2.9)% 101,925 98,806 3.2%
-------- -------- ---------- ----------
Total Apollo
Segment gross
written
premiums 135,203 130,779 3.4% 293,884 258,970 13.5%
-------- -------- ---------- ----------
Total gross
written
premiums(2)(3) $ 803,485 $ 737,288 9.0% $ 2,211,743 $ 1,985,719 11.4%
======== ======== ========== ==========
(1) Not
meaningful.
(2) Prior year information is pro forma.
(3) Prior year information is adjusted for the impact
of the change in participations. See "Reconciliation
of Non-GAAP Financial Measures".
Effective in the third quarter, the Company renamed the Specialty Programs division to Strategic Distribution Partners (or "Strategic "Distribution") to better reflect the breadth of its distribution model, the Company's ownership interests in many of these distributors, and its ability to incorporate U.S. distribution activities related to ibott within the division.
Managed Premiums
Apollo provides managing agency services to nine syndicates within its Lloyd's platform. The capital-aligned syndicates, Syndicate 1969, Syndicate 1971 and Syndicate 1972, are wholly managed and partly capitalized by Apollo with Apollo retaining a portion of the underwriting risk via its Lloyd's Corporate Member, Apollo No. 16. Platform Partner syndicates are managed by Apollo on behalf of third--party partners and Apollo does not currently provide capital for underwriting of these syndicates. Because managed premiums are a key management operating metric intended to reflect the scale of business managed by Apollo, inter-syndicate reinsurance transactions, including those involving Syndicate 1972 and other Apollo-managed syndicates, are not eliminated in the calculation of managed premiums. Apollo receives managing agency fees and performance--based income for its managing agency services from all syndicates on its Lloyd's platform.
($ in thousands) Three months ended September 30, Nine months ended September 30,
------------------------------------
2026 2025 % Change 2026 2025 % Change
----------- ----------- ---------- ----------- ----------- ----------
Total gross
written
premiums(1)(2) $ 803,485 $ 737,288 9.0% $ 2,211,743 $ 1,985,719 11.4%
Fee generating
gross written
premiums(1)(2) :
Aligned
Syndicates(3) 401,468 369,548 8.6% 855,183 717,178 19.2%
Partner
Syndicates(3) 115,647 67,355 71.7% 280,058 181,528 54.3%
---------- ---------- ---------- ----------
Total fee
generating gross
written premiums $ 517,115 $ 436,903 18.4% $ 1,135,241 $ 898,706 26.3%
---------- ---------- ---------- ----------
Total Skyward
Group managed
premiums $ 1,320,600 $ 1,174,191 12.5% $ 3,346,984 $ 2,884,425 16.0%
========== ========== ========== ==========
(1) Prior year information is pro forma.
(2) Prior year information is adjusted for the impact
of the change in participations. See "Reconciliation
of Non-GAAP Financial Measures".
(3) During the third quarter of 2026, the Company
reclassified fee generating gross written premiums
attributable to Syndicate 1972 from Partner Syndicates
to Aligned Syndicates. Year to date 2026 amounts have
been reclassified to conform to the current period
presentation.
Underwriting Results
($ in thousands) Three Months Ended September 30, 2026 Nine Months Ended September 30, 2026
------------------------------------------------------ ---------------------------------------------------------
Skyward Skyward
Specialty Apollo Corporate Total Specialty Apollo Corporate Total
------------ ----------- ------------- ------------ -------------- ------------ ----------- --------------
Revenues:
Net earned
premiums $329,958 $76,906 $ -- $406,864 $1,072,247 $213,096 $ -- $1,285,343
Underwriting fee
income -- 11,000 -- 11,000 -- 33,666 -- 33,666
Commission and
fee income 3,118 -- -- 3,118 6,979 -- -- 6,979
------- ------ ----- ------- --------- ------- ------ ---------
Total revenues 333,076 87,906 -- 420,982 1,079,226 246,762 -- 1,325,988
------- ------ ----- ------- --------- ------- ------ ---------
Expenses:
Losses and loss
adjustment
expenses 206,413 44,623 -- 251,036 671,611 121,389 -- 793,000
Underwriting,
acquisition and
insurance
expenses 88,051 24,986 4,965 118,002 279,145 72,506 14,246 365,897
Fee--based
service
expenses -- 4,075 -- 4,075 -- 12,807 -- 12,807
------- ------ ----- ------- --------- ------- ------ ---------
Total expenses 294,464 73,684 4,965 373,113 950,756 206,702 14,246 1,171,704
------- ------ ----- ------- --------- ------- ------ ---------
Underwriting
Income $ 38,612 $14,222 $ -- $ 47,869 $ 128,470 $ 40,060 $ -- $ 154,284
======= ====== ===== ======= ========= ======= ====== =========
Combined Ratio
Non-cat loss and
LAE 61.1% 55.2% --% 59.9% 60.9% 54.3% --% 59.9%
Cat loss and LAE 1.5% 2.8% --% 1.8% 1.7% 2.7% --% 1.8%
------- ------ ----- ------- --------- ------- ------ ---------
Loss Ratio 62.6% 58.0% --% 61.7% 62.6% 57.0% --% 61.7%
------- ------ ----- ------- --------- ------- ------ ---------
Net policy
acquisition
costs 14.2% 19.0% --% 15.2% 14.2% 19.4% --% 14.9%
Other operating
and general
expenses 12.4% 13.5% --% 12.6% 11.9% 14.6% --% 12.4%
Commission and
fee income (0.9)% --% --% (0.8)% (0.7)% --% --% (0.5)%
Corporate
expenses(1) --% --% 1.2% 1.2% --% --% 1.1% 1.1%
------- ------ ----- ------- --------- ------- ------ ---------
Expense ratio 25.7% 32.5% 1.2% 28.2% 25.4% 34.0% 1.1% 27.9%
------- ------ ----- ------- --------- ------- ------ ---------
Combined ratio 88.3% 90.5% --% 89.9% 88.0% 91.0% --% 89.6%
------- ------ ----- ------- --------- ------- ------ ---------
Ex-Cat Combined
Ratio 86.8% 87.7% --% 88.1% 86.3% 88.3% --% 87.8%
======= ====== ===== ======= ========= ======= ====== =========
(1) Calculated using consolidated net earned premiums
-------------------------------------------------------------------------------------------------------------------------------------
($ in thousands) Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025
----------------------------------------- ---------------------------------------
Skyward Skyward
Specialty Corporate Total Specialty Corporate Total
------------ ------------- ------------ ------------ ----------- ------------
Revenues:
Net earned
premiums $351,797 $ -- $351,797 $947,705 $ -- $947,705
Commission and
fee income 1,904 -- 1,904 6,440 -- 6,440
------- ----- ------- ------- ------ -------
Total revenues 353,701 -- 353,701 954,145 -- 954,145
------- ----- ------- ------- ------ -------
Expenses:
Losses and loss
adjustment
expenses 213,780 -- 213,780 582,351 -- 582,351
Underwriting,
acquisition and
insurance
expenses 98,079 3,597 101,676 263,083 10,740 273,823
------- ----- ------- ------- ------ -------
Total expenses 311,859 3,597 315,456 845,434 10,740 856,174
------- ----- ------- ------- ------ -------
Underwriting
Income $ 41,842 $ -- $ 38,245 $108,711 $ -- $ 97,971
======= ===== ======= ======= ====== =======
Combined Ratio
Non-cat loss and
LAE 60.2% --% 60.2% 60.1% --% 60.1%
Cat loss and LAE 0.6% --% 0.6% 1.3% --% 1.3%
------- ----- ------- ------- ------ -------
Loss Ratio 60.8% --% 60.8% 61.4% --% 61.4%
------- ----- ------- ------- ------ -------
Net policy
acquisition
costs 13.9% --% 14.0% 14.6% --% 14.6%
Other operating
and general
expenses 13.9% --% 13.9% 13.2% --% 13.2%
Commission and
fee income (0.5)% --% (0.5)% (0.7)% --% (0.7)%
Corporate
expenses(1) --% 1.0% 1.0% --% 1.1% 1.1%
------- ----- ------- ------- ------ -------
Expense ratio 27.3% 1.0% 28.4% 27.1% 1.1% 28.2%
------- ----- ------- ------- ------ -------
Combined ratio 88.1% --% 89.2% 88.5% --% 89.6%
------- ----- ------- ------- ------ -------
Ex-Cat Combined
Ratio 87.5% --% 88.6% 87.2% --% 88.3%
======= ===== ======= ======= ====== =======
(1) Calculated using consolidated net earned premiums
------------------------------------------------------------------------------------------------------
The Skyward Specialty segment loss and LAE ratios for the third quarter and first nine months of 2026 increased 1.8 points and 1.2 points, respectively, when compared to the same 2025 periods primarily due to shifts in business mix driven by growth in the accident & health and global agriculture divisions. Both the Skyward Specialty and Apollo segments were impacted by catastrophe losses in the third quarter, predominantly convective storm activity.
The Skyward Group expense ratios for the third quarter and first nine months of 2026 improved when compared to the same 2025 periods. The Skyward Specialty segment's expense ratios improved 1.6 points and 1.7 points, respectively, when compared to the same 2025 periods, driven by business mix shift, enhanced operating efficiencies, and scale as net earned premiums outpaced expense growth. In the first quarter of 2026, the Company revised its expense presentation to report corporate expenses separately from segment expenses following the closing of the Apollo acquisition. The prior year period has been recast to reflect this change.
Investment Results
Net Investment
Income
-------- -------- -------- ----------
Three months ended Nine months ended
$ in thousands September 30, September 30,
------------------ --------------------
(unaudited) 2026 2025 2026 2025
-------- -------- -------- ----------
Short-term
investments $ 2,381 $ 3,268 $ 7,338 $10,182
Cash and cash
equivalents 2,690 695 6,932 2,595
Fixed income 30,338 20,806 87,013 55,358
Alternative &
strategic
investments (1,530) (2,755) (9,622) (7,995)
------ ------ ------ ------
Net investment
income $33,879 $22,014 $91,661 $60,140
====== ====== ====== ======
Net unrealized
gains (losses)
on securities
still held $ 2,444 $(8,987) $ 6,146 $(6,677)
Net realized
(losses) gains (1,978) 16,034 (3,096) 23,564
------ ------ ------ ------
Net
investment
gains $ 466 $ 7,047 $ 3,050 $16,887
====== ====== ====== ======
In the first quarter of 2026, the Company revised its presentation of net investment income to (i) report short-term investments separately from cash and cash equivalents following the closing of the Apollo acquisition, and (ii) include equities in alternative & strategic investments after the sale of the majority of the equity portfolio in 2025. The prior year period has been recast to reflect this change.
Net investment income for the third quarter and first nine months of 2026 increased $11.9 million and $31.5 million, respectively, when compared to the same 2025 periods, driven by the addition of the Apollo portfolio, a higher yield, and a larger asset base. The increase in income from cash and cash equivalents was due to an overall increase in the invested asset base from the addition of Apollo when compared to the same 2025 periods.
The alternative & strategic investments portfolio continued to be impacted by the decline in the fair value of limited partnership investments.
Stockholders' Equity
Stockholders' equity was $1,276.3 million at September 30, 2026 which represented an increase of 0.7% when compared to stockholders' equity of $1,267.5 million at June 30, 2026. The increase in stockholders' equity was primarily attributable to net income, partially offset by unrealized losses on available-for-sale investment securities.
Conference Call
At 10:00 a.m. eastern time tomorrow, November 6, 2026, Company 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 available on our website. 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." The non-GAAP financial measures included in this release are operating income, basic and diluted operating earnings per share, annualized operating return on equity, underwriting income, tangible stockholders' equity, annualized return on tangible equity, annualized operating return on tangible equity, adjusted pro forma gross written premiums and adjusted pro forma fee generating gross written premiums. This release also includes managed premiums, a key management operating metric representing the sum of gross written premiums and fee generating gross written premiums. We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.
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 Group is the holding company brand for its U.S. and U.K. businesses, Skyward Specialty Insurance Group, Inc.(R) and Apollo, respectively, delivering a comprehensive suite of specialized insurance solutions across global specialty property and casualty markets. Focused on the specialty industry's most niche, complex risks of today and the emerging challenges of tomorrow, Skyward Group leverages the forward-looking insight and disciplined execution of each organization to drive sustainable growth and long-term value for its shareholders, distribution partners, and other stakeholders.
For more information about Skyward Group, Skyward Specialty and Apollo, please visit skywardgroup.com.
Forward-Looking Statements
Except for historical information, this news release and statements made on the related conference call, contain 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," "positioned," "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 Group's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, and include (but are not limited to) legislative and regulatory changes in the U.S. at both the state and federal level and in the U.K., 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, losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, our ability to successfully integrate Apollo and realize the anticipated benefits of the acquisition, risks related to our Lloyd's operations, including changes in syndicate participations and Lloyd's regulatory requirements, changes in interest rates, credit markets and the value of our investment portfolio, and fluctuations in foreign currency exchange rate. 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.
Investor Contact
Jordan Arnold
Skyward Specialty Insurance Group
346-215-0250
jarnold@skywardinsurance.com
Media Contact
Haley Doughty
Skyward Specialty Insurance Group
713-935-4944
hdoughty@skywardinsurance.com
Consolidated Balance Sheets
($ in thousands, except share and per
share amounts)
September 30, December 31,
(unaudited) 2026 2025
--------------- --------------
Assets
Investments:
Fixed maturity securities,
available-for-sale, at fair value
(net of allowance for credit
losses of $5,910 and $7,000,
respectively) (amortized cost of
$2,265,283 and $1,848,755,
respectively) $ 2,191,576 $ 1,856,303
Fixed maturity securities,
held-to-maturity, at amortized
cost (net of allowance for credit
losses of $4,228 and $468,
respectively) 26,446 32,822
Equity securities, at fair value 1,088 1,174
Mortgage loans, at fair value 6,712 9,902
Equity method investments 62,686 77,365
Other long-term investments 66,847 58,650
Short-term investments, at fair
value 531,449 264,299
---------- ----------
Total investments 2,886,804 2,300,515
Cash and cash equivalents 187,615 168,544
Restricted cash 96,675 30,570
Funds at Lloyd's 121,630 2,509
Options, at fair value 31,846 34,857
Premiums and commissions receivable,
net 1,091,077 544,217
Reinsurance recoverables, net 1,460,189 1,119,880
Ceded unearned premium 389,749 238,948
Deferred policy acquisition costs
and VOBA 190,373 136,100
Deferred tax assets 65,773 27,865
Goodwill and intangible assets, net 469,054 88,040
Other assets 155,661 99,807
---------- ----------
Total assets $ 7,146,446 $ 4,791,852
========== ==========
Liabilities and stockholders' equity
Liabilities:
Reserves for losses and loss
adjustment expenses $ 3,208,137 $ 2,318,894
Unearned premiums 1,225,726 774,035
Deferred ceding commission 62,708 46,453
Reinsurance and premium payables 565,980 279,888
Funds held for others 151,163 128,003
Deferred tax liabilities 66,924 --
Accounts payable and accrued
liabilities 152,910 115,034
Notes payable 417,037 100,411
Subordinated debt, net of debt
issuance costs 19,593 19,569
---------- ----------
Total liabilities 5,870,178 3,782,287
---------- ----------
Stockholders' equity
Common stock, $0.01 par value,
500,000,000 shares authorized,
44,846,532 shares issued and
44,413,449 shares outstanding at
September 30, 2026; 40,511,222
shares issued and outstanding at
December 31, 2025 448 405
Treasury stock, at cost, 433,083
and 0 shares, respectively (19,552) --
Additional paid-in capital 933,877 730,555
Accumulated other comprehensive
(loss) income (54,218) 11,457
Retained earnings 415,713 267,148
---------- ----------
Total stockholders' equity 1,276,268 1,009,565
---------- ----------
Total liabilities and
stockholders' equity $ 7,146,446 $ 4,791,852
========== ==========
Condensed Consolidated Statements of Operations and
Comprehensive Income
Three months ended Nine months ended September
($ in thousands) September 30, 30,
----------------------- -----------------------------
(unaudited) 2026 2025 2026 2025
------------ --------- -------------- -------------
Revenues:
Net earned premiums $406,864 $351,797 $1,285,343 $ 947,705
Underwriting fee
income 11,000 -- 33,666 --
Commission and fee
income 3,118 1,904 6,979 6,440
Net investment
income 33,879 22,014 91,661 60,140
Net investment gains 466 7,047 3,050 16,887
Other income (loss) 14 (236) 42 (216)
------- ------- --------- ---------
Total revenues 455,341 382,526 1,420,741 1,030,956
------- ------- --------- ---------
Expenses:
Losses and loss
adjustment
expenses 251,036 213,780 793,000 582,351
Underwriting,
acquisition and
insurance expenses 118,002 101,676 365,897 273,823
Fee--based service
expenses 4,075 -- 12,807 --
Interest expense 6,997 1,919 23,528 5,629
Amortization expense 8,843 455 26,529 1,164
Other expenses 2,744 4,149 9,703 6,212
------- ------- --------- ---------
Total expenses 391,697 321,979 1,231,464 869,179
------- ------- --------- ---------
Income before income
taxes 63,644 60,547 189,277 161,777
Income tax expense 13,848 14,646 40,712 34,979
------- ------- --------- ---------
Net income $ 49,796 $ 45,901 $ 148,565 $ 126,798
======= ======= ========= =========
Comprehensive income:
Net income $ 49,796 $ 45,901 $ 148,565 $ 126,798
------- ------- --------- ---------
Other comprehensive
(loss) income:
Unrealized gains
and losses on
investments:
Net change in
unrealized
(losses) gains on
investments, net
of tax (47,742) 6,740 (65,584) 30,000
Reclassification
adjustment for
gains on
securities no
longer held, net
of tax 849 5,465 861 1,659
Foreign currency
translation
adjustment (234) -- (952) --
------- ------- --------- ---------
Total other
comprehensive (loss)
income (47,127) 12,205 (65,675) 31,659
------- ------- --------- ---------
Comprehensive income $ 2,669 $ 58,106 $ 82,890 $ 158,457
======= ======= ========= =========
Share and Per
Share Data
($ in thousands,
except share and
per share
amounts) Three months ended September 30, Nine months ended September 30,
-------------------------------- --------------------------------
(unaudited) 2026 2025 2026 2025
--------------- --------------- --------------- ---------------
Weighted average
basic shares 44,405,132 40,487,069 44,462,989 40,377,864
Weighted average
diluted shares 45,799,617 41,868,449 45,618,514 41,784,976
Basic earnings per
share $ 1.12 $ 1.13 $ 3.34 $ 3.14
Diluted earnings
per share $ 1.09 $ 1.10 $ 3.26 $ 3.03
Basic operating
earnings per
share $ 1.32 $ 1.09 $ 3.93 $ 2.94
Diluted operating
earnings per
share $ 1.28 $ 1.05 $ 3.83 $ 2.84
Annualized ROE (1) 15.7% 19.7% 17.3% 19.3%
Annualized
operating ROE
(2) 18.4% 19.0% 20.4% 18.2%
Annualized ROTE
(3) 23.0% 21.8% 22.1% 21.4%
Annualized
operating ROTE
(4) 27.0% 21.0% 25.9% 20.2%
------------------ ---------- ---------- ---------- ----------
September 30, December 31,
2026 2025
--------------- ---------------
Shares outstanding 44,413,449 40,511,222
Fully diluted
shares
outstanding 46,573,658 42,292,371
Book value per
share $ 28.74 $ 24.92
Fully diluted book
value per share $ 27.40 $ 23.87
------------------ --------------- --------------- ---------- ----------
(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 operating ROE is 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 operating ROTE is operating income
expressed on an annualized basis as a percentage of
average beginning and ending tangible stockholders'
equity during the period.
--------------------------------------------------------------------------------------
Operating income -- We define operating income as net income 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 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. Operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define operating income differently.
($ in thousands) Three months ended September 30, Nine months ended September 30,
-------------------------------------------- --------------------------------------------
(unaudited) 2026 2025 2026 2025
--------------------- --------------------- -------------------- ----------------------
Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax
-------- ----------- -------- ----------- --------- --------- --------- -----------
Income as
reported $63,644 $ 49,796 $60,547 $ 45,901 $189,277 $148,565 $161,777 $126,798
Less (add):
Net investment
gains 466 365 7,047 5,342 3,050 2,394 16,887 13,236
Amortization
expense (8,843) (6,919) (455) (345) (26,529) (20,823) (1,164) (912)
Other income
(loss) 14 11 (236) (179) 42 33 (216) (169)
Other expenses (2,744) (2,147) (4,149) (3,145) (9,703) (7,616) (6,212) (4,869)
------ ------ ------ ------ ------- ------- ------- -------
Operating income $74,751 $ 58,486 $58,340 $ 44,228 $222,417 $174,577 $152,482 $119,512
====== ====== ====== ====== ======= ======= ======= =======
Underwriting income -- We define underwriting income as net income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.
Three months ended Nine months ended
($ in thousands) September 30, September 30,
-------------------- ---------------------
(unaudited) 2026 2025 2026 2025
------- ----------- -------- -----------
Income before
income taxes $63,644 $60,547 $189,277 $161,777
Add:
Interest expense 6,997 1,919 23,528 5,629
Amortization
expense 8,843 455 26,529 1,164
Other expenses 2,744 4,149 9,703 6,212
Less:
Net investment
income 33,879 22,014 91,661 60,140
Net investment
gains 466 7,047 3,050 16,887
Other income 14 (236) 42 (216)
------ ------ ------- -------
Underwriting
income $47,869 $38,245 $154,284 $ 97,971
====== ====== ======= =======
Tangible Stockholders' Equity -- We define tangible stockholders' equity as stockholders' equity excluding goodwill and intangible assets and the related deferred tax impact. 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.
($ in thousands) September 30, December 31,
---------------------- --------------
(unaudited) 2026 2025 2025
----------- --------- ----------
Stockholders' equity $ 1,276,268 $ 961,423 $ 1,009,565
Less: Goodwill and
intangible assets 469,054 88,417 88,040
Add: Deferred tax impact 65,500 -- --
---------- -------- ----------
Tangible stockholders'
equity $ 872,714 $ 873,006 $ 921,525
========== ======== ==========
Adjusted pro forma gross written premiums -- We define adjusted pro forma gross written premiums as pro forma gross written premiums adjusted for the impact of changes in Apollo syndicate participation. We use this measure to evaluate premium growth trends on a consistent participation basis across periods. Adjusted pro forma gross written premiums is a non-GAAP financial measure and should not be considered a substitute for gross written premiums calculated in accordance with GAAP.
$ in thousands Three months ended September 30, 2025
-------------------------------------------------
Total
Syndicate Syndicate Total Apollo Skyward
1969 1971 Segment Group
--------- ---------- ------------ ------------
Pro forma gross
written
premiums $ 73,525 $ 57,449 $130,974 $737,483
Impact of the
change in
participations (12,420) 12,225 (195) (195)
------- --------- ------- -------
Adjusted pro
forma gross
written
premiums $ 61,105 $ 69,674 $130,779 $737,288
======= ========= ======= =======
$ in thousands Nine months ended September 30, 2025
--------------------------------------------------
Syndicate Syndicate Total Apollo Total Skyward
1969 1971 Segment Group
--------- ---------- ------------ -------------
Pro forma gross
written
premiums $192,828 $ 86,727 $279,555 $2,006,304
Impact of the
change in
participations (32,664) 12,079 (20,585) (20,585)
------- --------- ------- ---------
Adjusted pro
forma gross
written
premiums $160,164 $ 98,806 $258,970 $1,985,719
======= ========= ======= =========
Adjusted pro forma fee generating gross written premiums -- We define adjusted pro forma fee generating gross written premiums as pro forma fee generating gross written premiums adjusted for the impact of changes in Apollo syndicate participation percentages. We believe this measure provides a more meaningful comparison of fee generating business on a consistent participation basis across periods. Adjusted pro forma fee generating gross written premiums is a non-GAAP financial measure and may not be comparable to similarly titled measures used by other companies.
$ in thousands Three months ended September 30, 2025
------------------------------------------------------
Aligned Syndicates Partner Syndicates Total
---------------------- -------------------- --------
Pro forma fee
generating
gross written
premiums $ 369,353 $ 67,355 $436,708
Impact of the
change in
participations 195 N/A 195
---- ---------------- -------------------- -------
Adjusted pro
forma fee
generating
gross written
premiums $ 369,548 $ 67,355 $436,903
==== ================ ===== ============= =======
$ in thousands Nine months ended September 30, 2025
-----------------------------------------------------
Aligned Syndicates Partner Syndicates Total
--------------------- -------------------- --------
Pro forma fee
generating gross
written
premiums $ 696,593 $ 181,528 $878,121
Impact of the
change in
participation(s) 20,585 N/A 20,585
---- --------------- -------------------- -------
Adjusted pro
forma fee
generating gross
written
premiums $ 717,178 $ 181,528 $898,706
==== =============== === =============== =======
Comments