Bowhead Specialty Holdings Inc. · NYSE:BOW
Bowhead Specialty — Investor Presentation (August 2024)
18 slides from Bowhead Specialty's investor presentation, August 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation has been prepared by Bowhead Specialty Holdings Inc. (“we,” “us,” “our,” “Bowhead” or the “Company”) on a confidential basis for the exclusive use of the party to whom Bowhead delivers this presentation. This presentation has been prepared by Bowhead for
Slide 3: Our key investment highlights
Our key investment highlights 1 Focused on profitable, growing lines in attractive E&S market 2 Strong underwriting culture with fully-integrated and accountable value chain 3 Ability to deliver differentiated profitability across market cycles 4 Deep, long-standing distribution relationships based
Slide 4: Bowhead: Who we are
Bowhead: Who we are Growing and profitable E&S focused specialty P&C business founded and led by industry veteran, Stephen Sills, and supported through a strategic partnership with American Family Mutual Insurance Company, S.I. (“AmFam”) Underwriting-first “Craft” Sustainable culture led by people s
Slide 5: Bowhead: By the numbers
Bowhead: By the numbers 3 underwriting divisions Key highlights Healthcare Casualty Liability $609MM 49% 77% 15% LTM Q2’241 2021 – LTM Q2’241 LTM Q2’241 GWP written GWP GWP CAGR on E&S basis 60% LTM Q2’24 GWP1: $609MM 98.7% 12.1% 30+ Average years of YTD June 2024 YTD June 2024 experience of Combine
Slide 6: Highly experienced and entrepreneurial management team
Highly experienced and entrepreneurial management team Years of industry Name and position Leadership role prior to joining Bowhead Prior professional experience experience Stephen Sills 48 Chairman and CEO of CapSpecialty Executive Risk Founder and CEO David Newman Chief Underwriting Officer of All
Slide 7: Focused on profitable, growing lines in attractive E&S market
Focused on profitable, growing lines in attractive E&S market Expanding Commercial E&S Market ($Bn) DPW Loss ratio ’20-’23 DPW CAGR: 22% Bowhead launch ’20-’23 Avg. Loss Ratio: 60.7% $90 (September 2020) 90.0% $83 80.0% $80 70.9% 68.1% $73 70.0% 63.9% 62.7% $70 60.5% 57.8% 60.0% $61 61.1% 51.0% 50.4
Slide 8: Focused on profitable, growing lines in attractive E&S market (cont’d)
Focused on profitable, growing lines in attractive E&S market (cont’d) E&S premiums1 as % of 2023 GAAP GWP 100% ⚫ We are focused on profitable and growing 79% lines within the ~$83 billion U.S. commercial 44% E&S market³ ⚫ Our target markets4 42% have undergone meaningful dislocations 40% and have o
Slide 9: Strong underwriting culture with fully-integrated and accountable value chain
Strong underwriting culture with fully-integrated and accountable value chain In-house underwriting expertise “Craft” solutions and product Long-term development ⚫ We do not delegate underwriting to distribution outside parties, which is a key relationships component of our fully-integrated model ⚫
Slide 10: Ability to deliver differentiated profitability across market cycles
Ability to deliver differentiated profitability across market cycles Excess Practice Underwriting matters—and is Excess Other¹ our key value proposition Excess Projects Casualty Primary Projects ✓ Highly experienced team Primary Practice with previous leadership Primary Other positions at leading in
Slide 11: Clean balance sheet with no reserves from accident years prior to 2020
Clean balance sheet with no reserves from accident years prior to 2020 ⚫ Diversified and attractive specialty P&C portfolio with no catastrophe exposure ⚫ Reflects continuously favorable rate environment with no business or reserves from pre-2020 accident years Free from legacy reserves ⚫ No debt ou
Slide 12: Robust growth and commitment to long-term value creation
Robust growth and commitment to long-term value creation Robust growth Attractive profitability Strong returns GWP ($MM) Combined Ratio Adjusted ROE1 Casualty Expense ratio Professional Liability Loss Ratio Adj. net Healthcare Liability income $11 $26 $8 ($MM)3 $508 94.6% 95.0% 99.3% 19.0% 1 $357 33
Slide 13: Well-positioned for continued growth
Well-positioned for continued growth Bowhead’s long-term growth strategy balances existing “craft” underwriting strategy with “flow” business launched in 2024 Bowhead (“Craft”) Baleen (“Flow”) Individual, custom underwriting of large, complicated Streamlined underwriting of small, hard-to-place E&S
Slide 14: Financials
sd Financials <=~S7 BOWHEAD SPECIALTY
Slide 15: Summary historical financials
Summary historical financials Condensed Income Statement Condensed Balance Sheet As of As of As of ($ in thousands, except percentages and per share data) For the years ended Three months ended ($ in thousands) June 30, 2024 December 31, 2023 December 31, 2022 December 31, December 31, June 30, June
Slide 16: Appendix
Appendix = NS BOWHEAD a SPECIALTY
Slide 17: Our partnership with AmFam
Our partnership with AmFam ⚫ Originates, issues, and ⚫ Provides “A” rated paper for ⚫ Assumes 100% of risk of Bowhead underwrites all Bowhead policies business originated by Bowhead policies from AmFam ⚫ Provides all claims, actuarial, ⚫ Receives ceding fee ⚫ Purchases reinsurance from high accounti
Slide 18: Non-GAAP reconciliation
Non-GAAP reconciliation For the years ended Three months ended For the years ended Three months ended December December December 31, December 31, ($ in thousands) 31, 2023 31, 2022 June 30, 2024 June 30, 2023 ($ in thousands) 2023 2022 June 30, 2024 June 30, 2023 Income before income taxes $ 32,115
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