Third quarter 2026
Filed Nov 5, 2026Skyward Group Reports Third Quarter 2026 Results
Third-quarter managed premiums increased 12.5%, fee-generating gross written premiums increased 18.4%, underwriting income increased to $47,869, and diluted operating earnings per share increased to $1.28. Reported net income increased to $49,796, while the consolidated combined ratio was 89.9% and book value per share was $28.74.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 managed premiumsother | $1.32B | – | 12.5% |
| Q3 gross written premiumsother | $803.5M | – | 9.0% |
| Q3 fee generating gross written premiumsother | $517.1M | – | 18.4% |
| Q3 net written premiumsGAAP | $501.8M | – | – |
| Q3 net earned premiumsGAAP | $406.9M | – | – |
| Q3 underwriting fee incomeGAAP | $11M | – | – |
| Q3 commission and fee incomeGAAP | $3.12M | – | – |
| Q3 total revenuesGAAP | $455.3M | – | – |
| Q3 losses and loss adjustment expensesGAAP | $251.0M | – | – |
| Q3 underwriting, acquisition and insurance expensesGAAP | $118.0M | – | – |
| Q3 fee-based service expensesGAAP | $4.08M | – | – |
| Q3 interest expenseGAAP | $7.00M | – | – |
| Q3 amortization expenseGAAP | $8.84M | – | – |
| Q3 total expensesGAAP | $391.7M | – | – |
| Q3 income before income taxesGAAP | $63.64M | – | – |
| Q3 income tax expenseGAAP | $13.85M | – | – |
| Q3 net incomeGAAP | $49.80M | – | – |
| Q3 operating incomenon-GAAP | $58.49M | – | – |
| Q3 underwriting incomenon-GAAP | $47.87M | – | – |
| Q3 net investment incomeGAAP | $33.88M | – | – |
| Q3 net investment gainsGAAP | $466K | – | – |
| Q3 diluted earnings per shareGAAP | $ 1.09 | – | – |
| Q3 diluted operating earnings per sharenon-GAAP | $ 1.28 | – | – |
| Q3 combined ratioother | 89.9 % | – | – |
| Q3 ex-Cat combined ratioother | 88.1 % | – | – |
| Q3 annualized ROEother | 15.7 % | – | – |
| Q3 annualized operating ROEnon-GAAP | 18.4 % | – | – |
| Nine months managed premiumsother | $3.35B | – | 16.0% |
| Nine months gross written premiumsother | $2.21B | – | 11.4% |
| Nine months fee generating gross written premiumsother | $1.14B | – | 26.3% |
| Nine months net written premiumsGAAP | $1.42B | – | – |
| Nine months total revenuesGAAP | $1.42B | – | – |
| Nine months net incomeGAAP | $148.6M | – | – |
| Nine months operating incomenon-GAAP | $174.6M | – | – |
| Nine months underwriting incomenon-GAAP | $154.3M | – | – |
| Nine months diluted earnings per shareGAAP | $ 3.26 | – | – |
| Nine months diluted operating earnings per sharenon-GAAP | $ 3.83 | – | – |
| Nine months combined ratioother | 89.6 % | – | – |
| Nine months ex-Cat combined ratioother | 87.8 % | – | – |
| Nine months annualized ROEother | 17.3 % | – | – |
| Nine months annualized operating ROEnon-GAAP | 20.4 % | – | – |
| Book value per shareother | $ 28.74 | – | 15.3% compared to December 31, 2025 |
| Stockholders' equityGAAP | $1.28B | 0.7% | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Skyward Specialty Segment gross written premiumsTotal continuing business gross written premiums increased 10.4 %. | $668.3M | – | 10.2 % |
| Accident & Health gross written premiumsNot stated. | $99.13M | – | 57.0 % |
| Captives gross written premiumsNot stated. | 50.19M | – | (26.2) % |
| Credit & Surety gross written premiumsNot stated. | 67.21M | – | 27.3 % |
| Energy Solutions gross written premiumsNot stated. | 55.65M | – | (16.4) % |
| Global Agriculture gross written premiumsNot stated. | 192.2M | – | 20.8 % |
| Global Property gross written premiumsNot stated. | 22.32M | – | (19.3) % |
| Professional Lines gross written premiumsNot stated. | 31.32M | – | (9.6) % |
| Strategic Distribution Partners gross written premiumsThe Company renamed the Specialty Programs division to Strategic Distribution Partners effective in the third quarter. | 109.6M | – | 32.4 % |
| Transactional E&S gross written premiumsNot stated. | 40.74M | – | (20.0) % |
| Apollo Segment gross written premiumsSyndicate 1969 gross written premiums increased 10.5 %, partly offset by a 2.9 % decline at Syndicate 1971. | 135.2M | – | 3.4 % |
| Syndicate 1969 gross written premiumsNot stated. | 67.52M | – | 10.5 % |
| Syndicate 1971 gross written premiumsNot stated. | 67.68M | – | (2.9) % |
| Aligned Syndicates fee generating gross written premiumsThe Company reclassified fee generating gross written premiums attributable to Syndicate 1972 from Partner Syndicates to Aligned Syndicates during the third quarter of 2026. | 401.5M | – | 8.6% |
| Partner Syndicates fee generating gross written premiumsNot stated. | 115.6M | – | 71.7% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Managed premiums increased 12.5% and gross written premiums increased 9.0% compared to 2025.
- Fee-generating gross written premiums increased 18.4%, including 71.7% growth in Partner Syndicates fee-generating gross written premiums.
- Net investment income increased $11.9 million compared to the third quarter of 2025, driven by the addition of the Apollo portfolio, a higher yield, and a larger asset base.
- The Skyward Specialty segment expense ratio improved 1.6 points compared with the third quarter of 2025, driven by business mix shift, enhanced operating efficiencies, and scale as net earned premiums outpaced expense growth.
- Underwriting fee income was $ 11,000 and fee-based service expenses were $ 4,075 in the third quarter of 2026 following the Apollo acquisition.
Concerns
- The Skyward Specialty segment loss and LAE ratio increased 1.8 points compared with the third quarter of 2025, primarily due to shifts in business mix driven by growth in Accident & Health and Global Agriculture.
- Both the Skyward Specialty and Apollo segments were impacted by catastrophe losses in the third quarter, predominantly convective storm activity.
- Net investment gains were $ 466, compared with $ 7,047 in the third quarter of 2025.
- Alternative & strategic investments produced $ (1,530) of net investment income, and the Company said the portfolio continued to be impacted by the decline in the fair value of limited partnership investments.
- Gross written premiums declined in Captives, Energy Solutions, Global Property, Professional Lines, Transactional E&S, and Syndicate 1971.
What to watch
- Sustained growth in fee-generating gross written premiums, including the balance between Aligned Syndicates and Partner Syndicates.
- The effect of catastrophe losses and business mix on the loss ratio and combined ratio.
- Expense-ratio improvement as net earned premiums outpace expense growth.
- Performance of the Apollo portfolio, including underwriting fee income, managing-agency income, and integration benefits.
- The impact of unrealized losses on available-for-sale investment securities on stockholders' equity and book value.
Balance sheet and cash flow
- Cash and cash equivalents were $ 187,615 at September 30, 2026, compared with $ 168,544 at December 31, 2025.
- Total investments were $ 2,886,804 at September 30, 2026, compared with $ 2,300,515 at December 31, 2025.
- Total assets were $ 7,146,446 at September 30, 2026, compared with $ 4,791,852 at December 31, 2025.
- Notes payable were $ 417,037 at September 30, 2026, compared with $ 100,411 at December 31, 2025.
- Subordinated debt, net of debt issuance costs, was $ 19,593 at September 30, 2026, compared with $ 19,569 at December 31, 2025.
- Total liabilities were $ 5,870,178 at September 30, 2026, compared with $ 3,782,287 at December 31, 2025.
- Treasury stock, at cost, was $ (19,552) at September 30, 2026; the filing does not state repurchase activity or dividends.
- No operating cash flow, free cash flow, or cash-flow statement was reported in the filing.
Analysis
Skyward Group reported broad premium expansion in the third quarter. Managed premiums increased 12.5% to $ 1,320,600, gross written premiums increased 9.0% to $ 803,485, and fee-generating gross written premiums increased 18.4% to $ 517,115. The fee-generating business outgrew consolidated gross written premiums, supported by 71.7% growth in Partner Syndicates fee-generating gross written premiums. Accident & Health, Credit & Surety, Global Agriculture, and Strategic Distribution Partners posted gross written premium growth, while several other Skyward Specialty divisions declined.
Profitability remained positive. Net income was $ 49,796 versus $ 45,901, while operating income was $ 58,486 versus $ 44,228 and underwriting income was $ 47,869 versus $ 38,245. Diluted GAAP earnings per share were $ 1.09 versus $ 1.10, while diluted operating earnings per share increased to $ 1.28 from $ 1.05. The difference between the earnings-per-share trends reflects higher weighted average diluted shares, reported at 45,799,617 versus 41,868,449.
The underwriting result produced an 89.9 % combined ratio and an 88.1 % ex-Cat combined ratio. The consolidated combined ratio improved from 89.2 %, and the ex-Cat ratio improved from 88.6 %. The Skyward Specialty loss and LAE ratio nevertheless increased 1.8 points because of a mix shift associated with Accident & Health and Global Agriculture growth. Both segments also incurred catastrophe losses, predominantly related to convective storm activity. Expense-ratio improvement was driven by mix, operating efficiencies, and scale as net earned premiums outpaced expense growth.
Investment income was an important contributor to earnings, with net investment income of $ 33,879 versus $ 22,014. The Company attributed the increase to the Apollo portfolio, higher yield, and a larger asset base. Net investment gains were $ 466 versus $ 7,047, while alternative and strategic investments generated $ (1,530) and remained affected by declines in limited partnership fair values. Stockholders' equity was $1,276.3 million at September 30, 2026, up 0.7% from $1,267.5 million at June 30, 2026, as net income was partly offset by unrealized losses on available-for-sale investment securities.
For the first nine months, managed premiums increased 16.0% to $ 3,346,984, operating income increased to $ 174,577 from $ 119,512, and annualized operating ROE increased to 20.4 % from 18.2 %. The Company did not provide forward financial guidance in the release. Key issues for subsequent periods are premium growth in the fee-based platform, the durability of expense leverage, catastrophe activity, Apollo integration, and investment-portfolio valuation effects.
Management, verbatim
The outstanding quarter and year to date performance reflects the strength of the Skyward Group Rule Our Niche TM strategy and the benefits of the diversified portfolio we have built.
Andrew Robinson, Chairman and CEO
Through the first nine months of the year, we have delivered an annualized operating ROE of over 20% while growing managed premiums by 16%.
Andrew Robinson, Chairman and CEO
The diversity of our portfolio and the complementary strength of our capital-light, fee-based platform continue to be meaningful differentiators, providing multiple avenues for profitable growth and enabling us to remain disciplined in deploying capital toward the most compelling opportunities as market conditions evolve.
Andrew Robinson, Chairman and CEO
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, and other financial metrics was not provided.
- Previous-period outlook was not provided, so no comparison with prior guidance is available.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend activity was not reported.
- Share repurchase activity was not reported.
- A consolidated gross margin was not reported.
- A GAAP operating income line item was not reported.
- A gross profit line item was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.