On November 6, 2023, Skyward Specialty Insurance Group Inc (SKWD, Financial) reported its third quarter 2023 earnings. The company reported a net income of $21.7 million, or $0.57 per diluted share, a significant improvement from a net loss of $2.4 million, or $0.15 per diluted share, for the same period in 2022. The net income for the first nine months of 2023 was $56.7 million, or $1.50 per diluted share, compared to $19.0 million, or $0.58 per diluted share for the same period in 2022.
Financial Performance
Adjusted operating income for the third quarter of 2023 was $25.0 million, or $0.65 per diluted share, compared to $10.7 million, or $0.33 per diluted share, for the same 2022 period. For the first nine months of 2023, the adjusted operating income was $56.5 million, or $1.49 per diluted share, compared to $46.9 million, or $1.44 per diluted share, for the same 2022 period.
Gross written premiums increased by 31.6% in Q3 2023. Underwriting income for the quarter was $22.3 million, compared to $0.3 million for the third quarter of 2022. The combined ratio improved to 90.2% from 99.8% for the same period in 2022.
Key Financial Tables
The company's gross written premiums for the third quarter of 2023 were $355.7 million, a 31.6% increase from $270.3 million in the same period in 2022. Net written premiums for the quarter were $280.7 million, a 63.7% increase from $171.5 million in Q3 2022. Net earned premiums for the quarter were $227.0 million, a 43.6% increase from $158.0 million in the same period in 2022.
The combined ratio for the third quarter of 2023 improved to 90.2% from 99.8% in the same period in 2022. The loss ratio for the third quarter of 2023 improved to 61.0% from 70.7% in the same period in 2022.
CEO Commentary
We continued to deliver exceptional underwriting results in the third quarter. We achieved a company best 90.2% combined ratio, grew gross written premiums over 30%, and delivered a 16.4% annualized return on equity. This continues the impressive trend of reporting double-digit gross written premiums growth, a low 90's combined ratio inclusive of cats, and mid-teens annualized return on equity in every quarter as a public company. Our results demonstrate again our ability to execute at a high level and meet and exceed the key metrics that we set out. We have built a genuinely distinctive company and I strongly believe that our success, and our team’s commitment to improve on that success, will continue." - Skyward Specialty CEO Andrew Robinson
Outlook
Skyward Specialty Insurance Group Inc (SKWD, Financial) continues to demonstrate strong financial performance with significant improvements in net income, gross written premiums, and underwriting income. The company's ability to deliver exceptional underwriting results and achieve key metrics indicates a positive outlook for future performance.
Explore the complete 8-K earnings release (here) from Skyward Specialty Insurance Group Inc for further details.
