Business
Skyward Specialty Commutes the LPT, Announces Preliminary Fourth Quarter 2024 Results and Provides Guidance for 2025
HOUSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today announced that
About this update from Skyward Specialty Insurance Group, Inc.
[{"type":"text","content":"HOUSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today announced that it commuted the Loss Portfolio Transfer and Adverse Development and Retrocession Agreement (“LPT”) with R&Q Re (Bermuda) Ltd. (\"R&Q\") related to accident years 2018 and prior. The Company received $11.7 million in cash. Additionally, at December 31, 2024 the Company strengthened LPT loss reserves by $25.3 million and recognized approximately $9.8 million, net of tax, of uncollectible reinsurance recoverable from R&Q. Skyward Specialty also announced the following fourth quarter 2024 preliminary results and provided 2025 guidance: Highlights for the fourth quarter included: Gross written premiums of $388.4 million, an increase of $66.8 million, or 20.8%, when compared to 2023;Adjusted combined ratio(1) of 91.6%, including catastrophe losses of 2.2 points;Net investment income of $20.7 million;Net income of $14.4 million; and,Adjusted operating income(1) of $33.2 million. Guidance for the year ending 2025: Net income between $138.0 million and $150.0 million; and,Combined ratio between 91.0% and 92.0%, inclusive of 2.0 to 2.5 points of catastrophe losses. (1) See \"Reconciliation of Non-GAAP Financial Measures\" Lastly, the Company has reviewed its exposure to the January California wildfires and expects total losses and loss adjustment expenses to be less than $10.0 million, net of reinsurance. Skyward Specialty Chairman and CEO Andrew Robinson commented, \"We are pleased to have completed the commutation of the LPT and remove future reinsurance recoverable credit risk related to this portfolio. We believe our reserve charge represents a conservative view of the ultimate losses at December 31, 2024.\" \"With respect to our fourth quarter, our preliminary results are simply outstanding with growth over 20% driven by the intentional investments we have been making in our surety, global agriculture, accident & health, transactional E&S, and mortgage and credit divisions and lines of business. Our adjusted combined ratio for the fourth quarter is a continuation of the excellent underwriting results that we have delivered every quarter since our IPO. With respect to our outlook for 2025, we believe we are positioned to produce another strong year of financial results. While com...