Skyward Specialty Acquires Apollo Group, Projects Robust 2026 Financials

Skyward Specialty Insurance Group Inc., a property and casualty insurer, has obtained necessary regulatory and minority shareholder approvals for the full acquisition of Apollo Group Holdings Limited, a Lloyd's specialist. The $555 million deal is expected to close in the first quarter of 2026, pending final conditions. The acquisition involves purchasing Apollo shares from Alchemy, management, employees, and other strategic investors. This strategic acquisition contributes to Skyward Specialty's financial outlook for 2026, with gross written premiums projected between $2.65 billion and $2.8 billion and a net retention rate of approximately 65%. The combined ratio is forecasted to be between 90.5% and 91.5%, accounting for 2.0 to 2.5 points of catastrophe losses. Net investment income is estimated at $115 million to $120 million, excluding syndicate management fees of $30 million to $35 million and commission and fee income between $5 million and $8 million. Net income for 2026 is projected between $207 million and $216 million, with adjusted operating income ranging from $221 million to $230 million. These figures reflect Skyward Specialty's commitment to strong underwriting performance and sustainable shareholder growth. Chairman and CEO Andrew Robinson emphasized the company's strong operational performance in 2025, with an expected combined ratio between 89% and 91%. He highlighted the acquisition as a significant advancement in Skyward Specialty's strategic positioning, enhancing its capabilities in talent, technology, and market innovation. The integration of Apollo is anticipated to bolster Skyward Specialty's specialty insurance market presence, facilitating leadership through innovation and improved service. The transaction has received approvals from key regulators including the Prudential Regulatory Authority and Lloyd’s of London, marking critical steps toward completion. Skyward Specialty's guidance for 2026 is contingent on the successful closing of the Apollo acquisition and reflects anticipated impacts on company performance. The move aligns with broader industry trends favoring consolidation to strengthen competitive positioning and underwriting excellence in the specialty insurance sector.