SKWD Stock Forecast & Price Target

Skyward Specialty Insurance Group Inc. reported net earned premiums of $293 million, marking a significant 30% increase compared to expectations, while net investment income remained stable at $21 million. The company demonstrated robust growth across its various business units, with Surety leading at a remarkable 53% increase, contributing to a total gross written premium of $388 million, up 21% year over year, surpassing earlier forecasts. The CFO's confidence in the company's reserves, particularly with IBNR reserves increasing to 69% of the total, alongside improved tangible book value per share rising to $16.80, supports a strong foundation for ongoing growth and financial stability.

Skyward Specialty Insurance Group Inc. experienced a significant 27% decline in net written premiums, which fell to $271 million, attributed in part to a ceded premium ratio decrease. The company's net policy acquisition costs rose to 15.3%, surpassing forecasts and growing year-over-year, indicating potential challenges in maintaining profitability. Additionally, industry risks, including potential rapid deceleration in the property and casualty cycle, adverse developments within loss reserve reserves, and concerns regarding the credit quality of fixed income investments, contribute to the negative outlook for the company's stock performance.