On February 20, 2024, Skyward Specialty Insurance Group Inc (SKWD, Financial) released its 8-K filing, announcing robust financial results for the fourth quarter and full year of 2023. The company, a provider of specialty insurance products and solutions, reported a net income of $29.3 million for the fourth quarter, a notable increase from the $20.4 million reported in the same period of 2022. For the full year, net income reached $86.0 million, more than doubling the previous year's figure of $39.4 million.
Skyward Specialty Insurance Group Inc operates through one reportable segment, offering a wide range of insurance coverages to various market niches, including general liability, excess liability, professional liability, and more. The company's performance in the fourth quarter was marked by a 21.4% increase in gross written premiums and an underwriting income of $21.0 million, up from $12.8 million in the fourth quarter of 2022. The combined ratio, a key metric in the insurance industry, improved to 90.7% from 92.4% in the prior-year period.
Financial Highlights and Operational Performance
The company's strong performance is attributed to its "Rule Our Niche" strategy, which focuses on targeted market segments. This approach, coupled with effective execution, has led to significant growth in gross written premiums, which increased by 28% for the year. The combined ratio for 2023 remained steady at 90.7%, indicating efficient underwriting and expense management. The return on equity for the year was an impressive 15.9%, reflecting the company's profitability and financial health.
CEO Andrew Robinson highlighted the company's achievements, stating,
We capped off an outstanding year with another strong quarter, delivering a 90.7% combined ratio and growing gross written premiums by 21%. For 2023, we delivered on every key metric, growing gross written premiums by 28%, delivering a 90.7% combined ratio, achieving a return on equity of 15.9%, and growing our fully diluted book value per share by over 24% to $15.96."
Investment and Stockholders' Equity
Investment results for the fourth quarter and full year of 2023 showed an increase in net investment income, with core fixed income and short-term investments contributing to the growth. The company's stockholders' equity stood at $661.0 million as of December 31, 2023, a 23.5% increase from the previous quarter, bolstered by net proceeds from a follow-on offering and an uptick in the market value of the investment portfolio.
Looking Ahead
With a strong foundation and a successful year behind it, Skyward Specialty Insurance Group Inc is poised for continued success in 2024. The company's strategic focus, combined with its financial strength and market position, suggests a positive outlook for the future.
For a detailed understanding of Skyward Specialty Insurance Group Inc's financial performance, investors and interested parties are encouraged to review the full 8-K filing.
For further inquiries, please contact Skyward Specialty Insurance Group Inc's media contact, Haley Doughty, at [email protected] or investor contact, Natalie Schoolcraft, at [email protected].
Explore the complete 8-K earnings release (here) from Skyward Specialty Insurance Group Inc for further details.
