1Q26 Earnings: Excellent Bottom Line Though Competition Concerns Continue

Research evidence excerpt

1Q26 Earnings: Excellent Bottom Line Though Competition Concerns Continue

ntegration is working well, but the broader specialty market is deteriorating Price/Tang.Book 178%

52-Week High / Low US$65.05 / US$40.60 faster than most investors appreciated. SKWD's strategy is a counterpoint to the

Avg Daily Vol (000) 480

competitive specialty market with over 50% of the combined group's business now sits Div Yield 0.00%

in cycle-resistant categories and the 49% growth in fee-generating managed premiums, Total Assets ($mil) 6,547

which we view as a capital-light recurring income stream. On casualty, management ROE 20.30%

issued a pointed warning that companies reporting outsized casualty growth right now Shares Out (mil) 45.4

are chasing a market opportunity that simply doesn't exist at the scale implied, and Fiscal Year End Dec

SKWD is intentionally moderating its own casualty growth rather than compromising

terms and conditions. Management confirmed no prior year reserve development and Price Performance - 1 Year

characterized loss emergence as "favorable" relative to expectations. The quarter USD

reinforces our thesis that SKWD's cycle-resistant diversification should allow it to bob 70

and weave through the soft market. 65

• We are raising our EPS estimates. We are raising our 2026E to $4.95 from $4.78. 55

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION 50

Financial market sensitivity, catastrophes, ESG sensitivity, cannabis regulation, ability to

secure reinsurance and regulatory interference. 45

COMPANY DESCRIPTION May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26

Skyward Specialty Insurance is an insurance company providing commercial property and Source: Bloomberg

casualty products and solutions on a non-admitted and admitted basis, predominantly in