Q2 2026 Skyward Specialty Insurance Group Inc Earnings Call Transcript
Key Points
- Diluted operating earnings per share increased 46% year-over-year to $1.30, with an annualized operating return on equity of 19%.
- Gross written premiums grew 13% and managed premiums grew 18%, driven by strong performance in accident and health, agriculture, credit and surety, and specialty programs.
- The combined ratio improved to 89.5, with an ex-CAT combined ratio of 87.6, reflecting strong underwriting discipline and operational leverage.
- Apollo's fee-based income grew significantly, with underwriting fee income of $13 million and a 29% increase in fee-generating gross written premiums, highlighting the capital-light business model's success.
- The company repurchased shares and increased its buyback authorization to $100 million, signaling confidence in its earnings outlook and capital position.
- Market conditions remain challenging in property and miscellaneous professional lines, with pricing pressure and competitive dynamics leading to selective underwriting and reduced volume in these areas.
- Apollo's combined ratio was 97.6, impacted by 5.4 points of catastrophe losses related to the Middle East conflict, and its risk-adjusted rate change moderated to a low single-digit decline.
- The non-CAT loss ratio for Skyward Specialty increased 1.4 points year-over-year due to business mix, with higher loss ratios in accident and health and agriculture divisions.
- Results from alternative and strategic investments remained pressured due to lower valuations in certain limited partnership investments, though the exposure is small.
- The company noted that loss cost trends, particularly in occurrence liability and bodily injury lines, remain uncertain, prompting a defensive stance in those areas.
Good day and thank you for standing by. Welcome to the 2026 Q2 Skyward Specialty Earnings Conference Call. At this time, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again.
Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Jordan Arnold, VP of Investor Relations. Please go ahead.
Thank you, Shannon. Good morning, everyone, and welcome to our second quarter 2026 earnings conference call.
Today, I am joined by our Chairman and Chief Executive Officer, Andrew Robinson, and Chief Financial Officer, Mark Hauschel. We will begin the call with our prepared remarks, and then we will open the line
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