Skyward Specialty Insurance Group NASDAQ: SKWD reported what executives described as a strong first quarter of 2026, its first reporting period as a combined company following the addition of Apollo. Chairman and Chief Executive Officer Andrew Robinson said the results reflected “an excellent start as a combined company,” citing stronger earnings, higher book value and growth in managed premiums.
The specialty insurer reported net income of $50 million and operating income of $57 million for the quarter. Diluted operating earnings per share rose to $1.25 from $0.90 in the prior-year period, a 39% increase. Annualized operating return on equity was 20.3%, and book value per share rose to $27.50, up 10% from the prior quarter and 31% over the prior 12 months.
Chief Financial Officer Mark Haushill said underwriting income totaled $52 million, while the combined ratio was 89.5%, including 1.8 points of catastrophe losses. Excluding catastrophe losses, the combined ratio was 87.7%.
Premium Growth Driven by Specialty Lines and Apollo
Gross written premiums were $668 million, up approximately 10% on a pro forma basis. Haushill said the growth reflected contributions from both Skyward Specialty and Apollo, with each posting 9% growth on that basis. He pointed to Skyward Specialty’s Accident & Health, Credit and Surety, Global Property and Specialty Programs divisions, along with Apollo Syndicate 1969, as contributors.
Managed premiums, a metric the company is emphasizing following the Apollo acquisition, totaled $968 million, up about 20% year over year on a pro forma basis. Managed premiums include group premiums as well as premiums supported by third-party capital providers. Fee-generating premiums increased 49% to $300 million, producing $10 million in underwriting fees during the quarter.
Haushill described the underwriting fee stream as “capital-light, recurring, and incremental to underwriting profit,” calling it an important earnings growth lever as managed premium volume scales.
Segment Results Show Strong Underwriting Performance
Skyward Specialty’s segment combined ratio was 88.9%, or 86.8% excluding catastrophe losses. The loss ratio was 62.7%, including 2.1 points of catastrophe losses from winter and convective storms. Haushill said the non-catastrophe loss ratio of 60.6% was in line with 2025 and reflected mix shifts as Accident & Health and Global Property became larger portions of the portfolio. No reserve development was recognized in the quarter.
Apollo produced a combined ratio of 85.3% in its first quarter as part of Skyward Group. Haushill said Apollo’s non-catastrophe loss ratio was 52.8%, lower than full-year expectations because of first-quarter business mix and seasonality. Apollo did not incur catastrophe losses in the quarter, and the company’s full-year catastrophe expectations were unchanged. Apollo’s expense ratio was 32.5%.
Haushill also said the company’s investment portfolio was about $2.7 billion at quarter-end, with 90% in fixed income and short-term investments. Net investment income rose $7.5 million year over year to $27 million, primarily due to a larger invested asset base after the Apollo acquisition. More than $500 million of invested assets were added with Apollo during the quarter, contributing $5 million of net investment income.
Executives Emphasize Cycle-Resistant Portfolio
Robinson said the company’s portfolio construction is “genuinely unique” among property and casualty insurers, noting that more than 50% of Skyward Group’s business, including Syndicate 1971, or ibott, is in markets less exposed to traditional P&C cycles.
He said growth of more than 25% in Accident & Health, Credit and Surety, and Agriculture came from areas “removed from the pressures of the broader P&C market.” At the same time, Robinson said the company is maintaining discipline in parts of the business facing softening market conditions or challenging loss inflation.
During the question-and-answer session, Robinson said more than half of the company’s business is cycle resistant on a full-year basis, naming Surety, Accident & Health, Credit, Agriculture, Captives and Syndicate 1971 among the categories. He added that certain smaller niches, including areas within management liability, also have practical barriers to entry, though the company does not include them in its cycle-resistant disclosure.
Property Market Pressure and Selective Underwriting
Executives repeatedly addressed softer conditions in property markets. Robinson said the company is pulling back where necessary, particularly in property, and said Global Property shrinkage in the E&S segment was “straight up” driven by property. He said the broader property market has moved quickly and, in his view, “lost all its sense and sensibilities.”
Robinson said Skyward Specialty’s U.S. Global Property business and Apollo’s London property business are being managed by underwriting leaders who are not under pressure to write business that does not meet return targets. He said Apollo’s property growth, or lack of growth, is tracking closely with the trends seen in Skyward Specialty’s Global Property division.
On casualty markets, Robinson described conditions as uneven. He cautioned that companies reporting significant casualty growth should be scrutinized, saying broad market opportunities are not as attractive as they were one or two years ago. He cited examples where competitors were willing to loosen terms and conditions, while Skyward Specialty was not willing to chase business on that basis.
Guidance Unchanged as Company Invests in Growth Initiatives
Skyward Specialty reaffirmed the 2026 guidance it provided on Dec. 3. Robinson said the company feels good about the year and remains committed to providing achievable guidance. Haushill said the company continues to target an aggregate expense ratio below 30%, noting that the first-quarter expense ratio of 28.5% was in line with prior guidance.
Robinson also highlighted several growth initiatives launched after the combination with Apollo, including a proprietary insurance partnership for Uber’s autonomous vehicle insurance program, a life sciences product using Lloyd’s paper for U.S.-domiciled companies with international exposure, and the launch of Syndicate 1972, Apollo’s internal reinsurance syndicate. He said leaders at Skyward and Apollo are advancing additional shared initiatives, including opportunities in Surety and the launch of ibott America.
Robinson said the company is also continuing to invest in technology and artificial intelligence capabilities, adding that those investments require funding before benefits become visible. He said Skyward Specialty’s growth helps support those investments while keeping the expense ratio within the company’s stated targets.
About Skyward Specialty Insurance Group NASDAQ: SKWD
Skyward Specialty Insurance Group, Inc NASDAQ: SKWD is a publicly traded specialty property and casualty insurance underwriter. The company focuses on niche market segments, offering tailored insurance solutions designed to address the specific risk profiles of its target industries.
Through its underwriting platform, Skyward Specialty provides coverage in areas including general liability, professional liability, commercial package, inland marine and other selected specialty lines. Its products are distributed primarily through a network of wholesale brokers, program administrators and managing general agents, enabling the company to reach a diverse client base and adapt quickly to evolving market needs.
Headquartered in the United States, Skyward Specialty Insurance Group operates across multiple states and applies data-driven underwriting and risk management practices to maintain disciplined reserving and consistent performance.
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