Skyward Specialty Insurance Group, Inc. (SKWD) posted fourth‑quarter 2025 results that surpassed analyst expectations, delivering net income of $43.2 million, or $1.03 per diluted share, up from $14.4 million ($0.35) a year earlier.
Revenue rose to $385.59 million, beating the consensus estimate of $374.0 million by $11.59 million, or 3.1%. Earnings per share of $1.03 exceeded the consensus estimate of $0.96 by $0.07, a 7.3% beat.
Adjusted operating income climbed to $48.9 million, or $1.17 per share, compared with $33.2 million ($0.80) in Q4 2024. The combined ratio improved to 88.5% from 95.8% a year earlier, driven by favorable prior accident‑year development and lower catastrophe losses. Full‑year combined ratio also improved to 89.3% from 92.3%.
Growth was led by a 13% increase in gross written premiums to $439.5 million, reflecting strong demand in accident & health, specialty programs, surety, and continued expansion of the agriculture and credit reinsurance division. The company’s “Rule Our Niche” strategy, focused on non‑cyclical specialty lines, underpins this performance and positions it to sustain mid‑teens growth.
The results exclude the financial impact of the Apollo Group Holdings Ltd. acquisition, which closed on January 1 2026. Management highlighted the integration of the Apollo team as a key driver of future growth, while reaffirming confidence in generating top‑quartile returns and long‑term shareholder value.
CEO Andrew Robinson said, “The fourth quarter was another excellent quarter and capped off a truly transformational year for the Company. Similar to the previous three quarters, we delivered Company bests in adjusted operating income, underwriting income and the combined ratio of 88.5%. Our gross written premiums growth in the quarter of 13% culminated a year of 24% growth, and our return on equity and return on tangible equity of 18.9% and 20.9% respectively for the full year are simply outstanding.” He added, “Our focus and disciplined execution of our 'Rule Our Niche' strategy, underscored by the strength of our intentionally built, diversified portfolio, where nearly half of our business is in non‑cycle exposed lines, positions us particularly well given the evolving property and casualty market backdrop. As we look forward, together with additional capabilities and the outstanding Apollo team, we are extremely well‑positioned as a Company to continue to build and maintain winning positions across the specialty insurance market and generate top quartile returns and long‑term, sustainable shareholder value.”
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