Skyward Specialty Insurance Q3 loss ratio rose on growth in accident & health divisions

Overview

• US specialty insurer's Q3 gross written premiums rose 9% yr/yr

• Diluted EPS for Q3 was $1.09, down slightly from a year ago

• Loss ratio rose due to business mix shift toward accident & health and agriculture

Outlook

• Company says it remains well positioned for continued top-quartile financial returns

• Company expects portfolio diversity and fee-based platform to support profitable growth

Result Drivers

• PREMIUM GROWTH - Co said higher managed and fee-generating gross written premiums contributed to Q3 results

• BUSINESS MIX SHIFT - Higher loss ratios attributed to growth in accident & health and global agriculture divisions

• EXPENSE RATIO IMPROVEMENT - Lower expense ratios driven by business mix, operating efficiencies, and scale

Company press release: ID:nGNX47cjY2

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "hold."

• Wall Street's median 12-month price target for Skyward Specialty Insurance Group Inc is $73.50, about 18.1% above its November 4 closing price of $62.22

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 4 - Palomar Q3 net income beat estimates as premiums rise 28%

• Nov 3 - Bowhead Q3 profit beats estimates on divisional premium growth

• Nov 4 - Safety Insurance Q3 net income rises as combined ratio improves

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)