Skyward Specialty Insurance Group, Inc. · NASDAQ:SKWD

Skyward Specialty Insurance — Q1 2025 Earnings Presentation

23 slides from Skyward Specialty Insurance's earnings presentation, May 2, 2025

  1. Slide 1: Investor Presentation May 2025

    INVESTOR PRESENTATION MAY 2025

  2. Slide 2: Disclaimer

    DISCLAIMER Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “will,” “intend,” “expect,” “anticipate,” “estimate,” “target,” and similar expressions, or the negat

  3. Slide 3: Select Market Data

    SELECT MARKET DATA (AS OF MARCH 31, 2025) SKWD NASDAQ Global Select Market $52.92 $2.1 billion $21.06 12.3% 585 “A” Excellent with stable outlook 3

  4. Slide 4: We Are a Values Led Company

    WE ARE A VALUES LED COMPANY OUR MISSION OUR VALUES Grow Personally & Professionally To spark potential by smartly We are committed to bettering ourselves and each other and have fun doing it. shifting risk to a safer place Rise Above the Usual We go farther to gain the insight it takes to find bette

  5. Slide 5: Highly Experienced Leadership Team

    HIGHLY EXPERIENCED LEADERSHIP TEAM Andrew Robinson Mark Haushill John Burkhart Kirby Hill Sean Duffy Dan Bondar Chairman of the Chief Financial President, Specialty Chairman, Captives & Chief Claims Officer Chief Information & Board & CEO Officer & Executive Lines & Industry Specialty Programs & Exe

  6. Slide 6: We Are a Distinctive Specialty P&C Insurer

    WE ARE A DISTINCTIVE SPECIALTY P&C INSURER (AS OF DECEMBER 31, 2024) Skyward Specialty (Nasdaq: SKWD) is a rapidly growing and innovative specialty insurance Growth compared +19% to 2023 company, delivering commercial P&C products and solutions on a non-admitted and admitted basis. The Company opera

  7. Slide 7: Driven by Talent and Culture…

    DRIVEN BY TALENT AND CULTURE… 4.7 out of 5 OVERALL RATING 7

  8. Slide 8: "Rule Our Niche" Strategy | Delivering Top Quartile Performance

    “RULE OUR NICHE” STRATEGY | DELIVERING TOP QUARTILE PERFORMANCE We operate at the complex end of the specialty market. We are talent led and leverage technology to bring innovative insurance solutions to market. We are agile and steadfastly focused on leading and having defensible positions and a co

  9. Slide 9: Driven by Talent and Culture…

    DRIVEN BY TALENT AND CULTURE… 4.7 out of 5 OVERALL RATING 9

  10. Slide 10: …and Technology & Innovation

    …AND TECHNOLOGY & INNOVATION Our Technology Strategy is Comprised of Three Pillars 1 Core Operating Platform Flexible platform designed to accelerate speed to market and enhance scalability in a cost-efficient manner 2 Superior Business Intelligence Platform (“SkyBI”) Comprehensive enterprise-wide d

  11. Slide 11: Diversified Product Portfolio

    DIVERSIFIED PRODUCT PORTFOLIO (Twelve months ended March 31, 2025) Transactional E&S Accident & Health Primary and excess non-catastrophe prone Medical stop loss solutions targeting organizations with less than 2,500 employees property and general liability solutions 11% 11% Surety 8% 9% Agriculture

  12. Slide 12: Balanced Business Mix

    BALANCED BUSINESS MIX (Twelve months ended March 31, 2025) Our balanced portfolio strengthens our market position and stabilizes our revenue streams, demonstrating our commitment to sustainable, long-term growth within the industry. 45% BY 44% BY 46% BY P&C 41% DURATION 55% MARKET CYCLE 59% SENSITIV

  13. Slide 13: Outstanding Growth

    OUTSTANDING GROWTH Gross Written Premiums ($ in millions) Net Written Premiums ($ in millions) 23% 19% Growth Growth $1,124 $1,743 $1,460 17% $911 20% Growth Growth $535 $343 $459 $287 2023 2024 3M 2024 3M 2025 2023 2024 3M 2024 3M 2025 13

  14. Slide 14: Consistently Strong Underwriting

    CONSISTENTLY STRONG UNDERWRITING Combined Ratio • Amongst the lowest underwriting volatility in the industry 90.7% 92.3% 89.7% 90.5% • Adjusted Combined Ratio between 89.7 and 92.3 for 13.0% 14.2% 14.0% 14.8% every quarter reporting as a public company • Continued Non-CAT loss ratio improvement 15.6

  15. Slide 15: High Quality Investment Portfolio

    HIGH QUALITY INVESTMENT PORTFOLIO Key tenets of our investment strategy include capital preservation and balanced risk-reward approach Investment Portfolio as of 03/31/2025(4) Total Invested 3M 2025 Fixed Assets as of Short-Term Income Yield(1): 3/31/2025: $308 5.2% $2.1 Billion Equities $108 Altern

  16. Slide 16: Conservative Reserve Profile

    CONSERVATIVE RESERVE PROFILE Overall Net Reserves 31% 28% 38% 37% 69% 72% 62% 63% 2022 2023 2024 3M 2025 IBNR Case Reserves Committed to a conservative loss reserve position 16

  17. Slide 17: Poised for a Strong Future

    POISED FOR A STRONG FUTURE 4 Attractive Financial Profile Our financial is highlighted by low debt to capitalization ratio, continued premium growth, low 90's combined ratio and mid-teens Fetum on equity. ATTRACTIVE FINANCIAL PROFILE Specialized Claims Our claims teams are highly specialized to ensu

  18. Slide 18: We're Going Skyward

    WE’RE GOING SKYWARD a

  19. Slide 19: Appendix

    APPENDIX 19

  20. Slide 20: Balance Sheet

    BALANCE SHEET March 31, December 31, ($ in thousands) 2025 2024 Assets Total investments $ 1,993,390 $ 1,870,820 Total cash and restricted cash 153,506 157,525 Premiums receivable, net 417,542 321,641 Reinsurance recoverables, net 902,970 857,876 Ceded unearned premiums 232,147 203,901 Deferred poli

  21. Slide 21: Income Statement

    INCOME STATEMENT Three months ended March 31, ($ in thousands) 2025 2024 Revenues Net earned premiums $ 300,366 $ 236,342 Commission and fee income 1,976 2,026 Net investment income 19,331 18,297 Net investment (losses) gains 6,841 8,303 Other income 13 - Total revenues 328,527 264,968 Expenses: Los

  22. Slide 22: Reconciliations of Non-GAAP Financial Measures: Underwriting Income

    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES: UNDERWRITING INCOME Three months ended March 31, ($ in thousands) 2025 2024 Income before federal income taxes $ 51,435 $ 46,977 Add: Interest expense 1,834 2,727 Amortization expense 337 388 Other expenses 1,061 1,188 Less: Net investment income 19,33

  23. Slide 23: Gross Written Premiums

    GROSS WRITTEN PREMIUMS ($ in thousands) 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Accident & Health $ 40,901 $ 44,088 $ 43,490 $ 44,594 $ 63,169 Agriculture and Credit (Re)insurance 43,321 36,592 17,045 21,113 87,847 Captives 68,408 62,099 53,630 57,765 68,401 Construction & Energy Solutions 74,222 78

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