10-Q · May 11, 2026
Skyward Specialty Insurance Group reported impressive Q1 2026 results, with revenue soaring to $475.9 million, up 44.8% compared to the previous quarter and significantly surpassing analyst expectations. Diluted EPS…
Earnings analysis · 10-Q
SKWD earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Skyward delivered strong Q2 growth, with revenue up 53.0% to $489.533 million, diluted EPS up to $1.07 from $0.93, and underwriting income up 75.4% to $54.810 million. Growth was broad across the core Skyward Specialty…
Read full summary
Skyward delivered strong Q2 growth, with revenue up 53.0% to $489.533 million, diluted EPS up to $1.07 from $0.93, and underwriting income up 75.4% to $54.810 million. Growth was broad across the core Skyward Specialty platform and was supplemented by Apollo’s $78.714 million of underwriting revenue and $318.121 million of managed premiums. The main offsets are a modest combined-ratio deterioration, substantially higher debt and interest expense following the Apollo acquisition, and ongoing integration of Apollo’s control environment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.07
What stood out
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Revenue and EPS increased sharply
Total revenue increased to $489.533 million from $319.903 million in Q2 2025, up 53.0%. Net income rose to $49.038 million from $38.839 million, while diluted EPS increased to $1.07 from $0.93.
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Underwriting profitability improved
Underwriting income increased 75.4% to $54.810 million from $31.244 million. Operating income rose to $59.198 million from $37.496 million, supported by scale and higher earned premiums.
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Core specialty premiums grew
Skyward Specialty gross written premiums increased 14.2% to $667.773 million, led by Global Agriculture at $111.939 million, Accident & Health at $95.456 million, and Specialty Programs at $111.441 million.
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Apollo added fee-based growth
Apollo contributed $78.714 million of underwriting revenue and $9.600 million of underwriting income. Its fee-generating gross written premiums increased 28.8% year over year to $318.121 million, driven by a new partner syndicate and organic growth.
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Operating cash flow remained strong
Operating cash flow was $184.167 million for the six months ended June 30, 2026, versus $184.940 million in the prior-year period. Capital expenditures were only $0.965 million, although investing cash use reached $382.620 million because of the $303.035 million Apollo acquisition payment and $480.843 million of fixed-maturity purchases.
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Liquidity and invested assets expanded
Cash, cash equivalents and restricted cash increased to $302.523 million from $199.114 million at year-end 2025. Total investments increased to $2.738 billion from $2.301 billion, including fixed-maturity available-for-sale securities of $2.192 billion versus $1.856 billion.
What to watch
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Loss ratio and catastrophe exposure
The consolidated combined ratio was 89.5% versus 89.4% in Q2 2025, while the net loss and LAE ratio increased to 62.3% from 61.3%. Management attributed the higher loss ratio to catastrophe losses and mix shifts toward Accident & Health and Global Agriculture.
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Debt and interest burden increased
Notes payable were $417.620 million at June 30, 2026 versus $100.411 million at December 31, 2025. Interest expense increased to $8.812 million from $1.876 million in Q2 2025, creating greater sensitivity to financing costs and debt covenants.
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Receivable and reinsurance exposure
Premiums and commissions receivable increased to $978.409 million from $544.217 million at year-end 2025, while reinsurance recoverables increased to $1.412 billion from $1.120 billion. The company remains obligated for ceded amounts if reinsurers fail to pay.
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Apollo controls integration remains incomplete
Apollo was excluded from the June 30, 2026 evaluation of disclosure controls because its systems and controls remain under integration; management expects to complete the integration and related evaluation during 2026.
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Investment credit and valuation risk
The investment portfolio had $24.992 million of unrealized losses on available-for-sale fixed-maturity securities at June 30, 2026, and total credit-loss allowances were $8.5 million on three securities after a $2.0 million held-to-maturity write-off.
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No formal risk-factor change, but Apollo event risk
Management stated that there were no other material changes in risk factors during the six months ended June 30, 2026 from the 2025 Form 10-K and Q1 2026 10-Q. The filing nevertheless reports $3.6 million of Apollo catastrophe losses in Q2, primarily related to the conflict in the Middle East.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that cash receipts from premiums and investment income are sufficient to cover cash outflows in the foreseeable future.
Earlier filings 4
10-K · March 2, 2026
Skyward Specialty Insurance reported a robust financial performance in 2025, with total revenues reaching $1.42 billion, driven by strong growth in net earned premiums and effective management of expenses. The…
10-Q · November 6, 2025
Skyward Specialty Insurance Group (SKWD) reported a strong performance for Q3 2025, with significant revenue growth and a positive earnings surprise driven by higher net written premiums and improved underwriting…
10-Q · August 7, 2025
Skyward Specialty Insurance Group reported a Q2 2025 revenue of $320M, slightly down from $329M in Q1 2025 but a notable increase from $280M in Q2 2024. The diluted EPS of $0.93 exceeded the previous quarter's $1.01 and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.