Skyward Specialty Reports Strong Q1 2026 Results Post-Acquisition of Apollo

Skyward Specialty Insurance Group has announced robust first-quarter results for 2026, its first reporting period following the acquisition of Apollo. Chairman and CEO Andrew Robinson emphasized strong earnings, enhanced book value, and growth in managed premiums, underscoring a successful integration of both entities. The insurer recorded a net income of $50 million and an operating income of $57 million for the quarter. Diluted operating earnings per share were $1.25, marking a 39% increase from the previous year. The annualized operating return on equity reached 20.3%, and book value per share rose significantly to $27.50, reflecting a 10% increase from the previous quarter and a 31% rise year-over-year. CFO Mark Haushill reported an underwriting income of $52 million, with a combined ratio of 89.5% factoring in catastrophe losses of 1.8 percentage points. Excluding these, the combined ratio improved to 87.7%. Gross written premiums increased by approximately 10% on a pro forma basis to $668 million, with both Skyward Specialty and Apollo demonstrating impressive 9% growth. Managed premiums, an area of strategic focus post-acquisition, totaled $968 million, achieving a 20% increase on a pro forma basis over the previous year. Fee-generating premiums surged 49% to $300 million, generating underwriting fees of $10 million, which Haushill highlighted as a "capital-light, recurring, and incremental" revenue stream. The Skyward Specialty segments posted a combined ratio of 88.9%, or 86.8% when excluding catastrophe losses. Meanwhile, Apollo achieved a combined ratio of 85.3%, with a non-catastrophe loss ratio of 52.8%, attributed to its business mix and seasonal factors. Notably, Apollo incurred no catastrophe losses during the period, maintaining an expense ratio of 32.5%. The combined entity's investment portfolio totaled approximately $2.7 billion by quarter’s end, composed predominantly of fixed income and short-term investments. Net investment income saw a year-over-year rise of $7.5 million to $27 million, driven largely by Apollo's $500 million asset contribution and $5 million in investment income. Robinson characterized the company's investment strategy as "distinct" in the property and casualty sector, with significant portions of Skyward's business areas, such as Accident & Health and Agriculture, less susceptible to traditional P&C cycles. Clear growth initiatives include developing a proprietary partnership for autonomous vehicle insurance and establishing Syndicate 1972, alongside ongoing investments in technology and AI to drive future benefits while maintaining cost-effectiveness and regulatory compliance.