SKWD Stock Forecast & Price Target

Skyward Specialty Insurance Group Inc. reported net earned premiums of $293 million, reflecting a robust 30% increase compared to the previous model, underscored by a strong performance across multiple lines of business. The company experienced significant growth in its Surety segment, which surged by 53%, contributing to overall gross written premiums of $388 million, a 21% year-over-year increase. Furthermore, the CFO's confidence in the company's reserves, particularly noting that IBNR reserves now account for 69% of total reserves, combined with an increase in tangible book value per share from $13.84 to $16.80, supports a positive long-term outlook for the firm.

Skyward Specialty Insurance Group Inc reported a significant 27% decline in net written premiums, totaling $271 million, alongside a ceded premium ratio decrease to 30.2%, indicating potential difficulties in premium growth. Additionally, net policy acquisition costs increased to 15.3%, surpassing forecasts and reflecting higher expenses, despite the reported overall expense ratio improving. The firm faces multiple risks, including a potential deceleration in the property and casualty cycle and adverse development in reserves, which could hinder growth prospects and negatively impact financial stability.