Skyward Group — Third Quarter 2026 Earnings Summary

Financial Performance

• Managed premiums increased 12.5% year-over-year to $1.32 billion for the three months ended September 30, 2026, and 16.0% to $3.35 billion for the nine months ended September 30, 2026.
• Gross written premiums increased 9.0% year-over-year to $803.5 million for the quarter and 11.4% to $2.21 billion for the nine months.
• Fee-generating gross written premiums increased 18.4% year-over-year to $517.1 million for the quarter and 26.3% to $1.14 billion for the nine months.
• Net income was $49.8 million for the quarter and $148.6 million for the nine months, compared to $45.9 million and $126.8 million, respectively, in the prior year periods.
• Net operating income was $58.5 million for the quarter and $174.6 million for the nine months, compared to $44.2 million and $119.5 million, respectively, in the prior year periods.
• Diluted earnings per share were $1.09 for the quarter and $3.26 for the nine months, compared to $1.10 and $3.03, respectively, in the prior year periods.
• Diluted operating earnings per share were $1.28 for the quarter and $3.83 for the nine months, compared to $1.05 and $2.84, respectively, in the prior year periods.
• Annualized return on equity (ROE) was 15.7% for the quarter and 17.3% for the nine months, compared to 19.7% and 19.3%, respectively, in the prior year periods.
• Annualized operating ROE was 18.4% for the quarter and 20.4% for the nine months, compared to 19.0% and 18.2%, respectively, in the prior year periods.
• Book value per share was $28.74 at September 30, 2026, an increase of 15.3% compared to December 31, 2025.
• Total stockholders' equity was $1.28 billion at September 30, 2026, compared to $1.01 billion at December 31, 2025.
• Net investment income increased to $33.9 million for the quarter and $91.7 million for the nine months, compared to $22.0 million and $60.1 million, respectively, in the prior year periods.
• Net investment gains were $0.5 million for the quarter and $3.1 million for the nine months, compared to $7.0 million and $16.9 million, respectively, in the prior year periods.
• Combined ratio was 89.9% for the quarter and 89.6% for the nine months, compared to 89.2% and 89.6%, respectively, in the prior year periods.
• Ex-Cat combined ratio was 88.1% for the quarter and 87.8% for the nine months, compared to 88.6% and 88.3%, respectively, in the prior year periods.
• Skyward Specialty segment loss and LAE ratios increased 1.8 points for the quarter and 1.2 points for the nine months compared to 2025 periods.
• Skyward Specialty segment expense ratios improved 1.6 points for the quarter and 1.7 points for the nine months compared to 2025 periods.

Business Segments and Product Lines

• The Specialty Programs division was renamed Strategic Distribution Partners to better reflect its distribution model and ownership interests.
• Skyward Specialty Segment:
  • Accident & Health gross written premiums increased 57.0% for the quarter and 53.4% for the nine months.
  • Global Agriculture gross written premiums increased 20.8% for the quarter and 36.9% for the nine months.
  • Credit & Surety gross written premiums increased 27.3% for the quarter and 27.6% for the nine months.
  • Strategic Distribution Partners gross written premiums increased 32.4% for the quarter and 36.5% for the nine months.
  • Captives gross written premiums decreased 26.2% for the quarter and 18.7% for the nine months.
  • Energy Solutions gross written premiums decreased 16.4% for the quarter and 22.9% for the nine months.
  • Global Property gross written premiums decreased 19.3% for the quarter and 19.2% for the nine months.
  • Professional Lines gross written premiums decreased 9.6% for the quarter and 8.8% for the nine months.
  • Transactional E&S gross written premiums decreased 20.0% for the quarter and 8.5% for the nine months.
• Apollo Segment:
  • Syndicate 1969 gross written premiums increased 10.5% for the quarter and 19.9% for the nine months.
  • Syndicate 1971 gross written premiums decreased 2.9% for the quarter but increased 3.2% for the nine months.
  • Total Apollo Segment gross written premiums increased 3.4% for the quarter and 13.5% for the nine months.
• Apollo provides managing agency services to nine syndicates within its Lloyd's platform, including wholly managed and partly capitalized syndicates (1969, 1971, 1972) and platform partner syndicates.
• During the third quarter of 2026, fee generating gross written premiums attributable to Syndicate 1972 were reclassified from Partner Syndicates to Aligned Syndicates.

Market and Competitive Landscape

• Management highlighted the "Rule Our Niche" strategy and the benefits of a diversified portfolio as key differentiators.
• The company noted the complementary strength of its capital-light, fee-based platform as a driver for profitable growth.
• The company remains disciplined in deploying capital toward compelling opportunities as market conditions evolve.

Risks and Challenges

• The Skyward Specialty segment loss and LAE ratios increased due to shifts in business mix driven by growth in the Accident & Health and Global Agriculture divisions.
• Both the Skyward Specialty and Apollo segments were impacted by catastrophe losses in the third quarter, predominantly from convective storm activity.
• The alternative & strategic investments portfolio continued to be impacted by the decline in the fair value of limited partnership investments.
• Stockholders' equity increase was partially offset by unrealized losses on available-for-sale investment securities.

Management Commentary and Tone

• Chairman and CEO Andrew Robinson described the quarter and year-to-date performance as "outstanding," reflecting the strength of the "Rule Our Niche" strategy.
• Management noted delivering an annualized operating ROE of over 20% for the first nine months while growing managed premiums by 16%.
• Management emphasized the diversity of the portfolio and the ability to remain disciplined in capital deployment.
• Management stated the company continues to execute at a high level and remains well-positioned to deliver top-quartile financial returns.

Other Key Points

• The Company closed the Apollo acquisition in the first quarter of 2026, leading to revised expense presentation separating corporate expenses from segment expenses.
• The Company revised its presentation of net investment income in the first quarter of 2026 to report short-term investments separately from cash and cash equivalents and to include equities in alternative & strategic investments.
• The Company announced a conference call for November 6, 2026, at 10:00 a.m. eastern time to discuss quarterly results.
• Goodwill and intangible assets increased to $469.1 million at September 30, 2026, from $88.0 million at December 31, 2025.
• Notes payable increased to $417.0 million at September 30, 2026, from $100.4 million at December 31, 2025.
• Reserves for losses and loss adjustment expenses increased to $3.21 billion at September 30, 2026, from $2.32 billion at December 31, 2025.
• Unearned premiums increased to $1.23 billion at September 30, 2026, from $774.0 million at December 31, 2025.
• Funds at Lloyd's increased to $121.6 million at September 30, 2026, from $2.5 million at December 31, 2025.
• Restricted cash increased to $96.7 million at September 30, 2026, from $30.6 million at December 31, 2025.
• The Company holds 44,413,449 shares outstanding at September 30, 2026, compared to 40,511,222 shares at December 31, 2025.