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Skyward Specialty Insurance Group, Inc.
(NASDAQ:SKWD)
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Rating:72Outperform
Price Target:
$63.00
▲(8.55% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by strong underlying financial performance (growth, profitability, and high-quality cash generation) and a constructive earnings update emphasizing underwriting discipline and capital returns. These positives are tempered by weaker near-term technical momentum and a few fundamental watch-items, including gross-margin volatility and higher leverage versus the prior year.
Positive Factors
Sustained Revenue and Earnings Growth
Multi-year expansion in revenue and net income indicates strong market adoption and operating scale. Net margins have improved to roughly 10–12%, suggesting growth is translating into durable profitability rather than relying solely on premium volume.
Negative Factors
Higher Leverage Reduces Flexibility
Although leverage remains described as manageable, the sharp debt increase reduces balance-sheet flexibility versus the prior year. Higher obligations can constrain capital deployment and make the company more sensitive to underwriting volatility or adverse investment results.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Earnings Growth
Multi-year expansion in revenue and net income indicates strong market adoption and operating scale. Net margins have improved to roughly 10–12%, suggesting growth is translating into durable profitability rather than relying solely on premium volume.
Read all positive factors
Skyward Specialty Insurance Group, Inc. (SKWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.55B
Dividend YieldN/A
Average Volume (3M)480.90K
Price to Earnings (P/E)13.0
Beta (1Y)0.50
Revenue Growth37.99%
EPS Growth34.78%
CountryUS
Employees611
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.42
Shares Outstanding44,396,492
10 Day Avg. Volume413,095
30 Day Avg. Volume480,898
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)2.05
Price to Sales (P/S)1.46
P/FCF Ratio5.13
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$69.00Price Target Upside18.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)5.01
Revenue Forecast (FY)$2.73B
Skyward Specialty Insurance Group, Inc. Business Overview & Revenue Model
Company Description
Incorporated in 2006 and headquartered in Houston, Texas, Skyward Specialty Insurance Group, Inc. functions as an insurance holding company. The firm specializes in writing commercial property and casualty insurance policies for clients across the...
How the Company Makes Money
Skyward Specialty primarily makes money through (1) underwriting income and (2) investment income, with additional contributions from fee-based revenues where applicable.
1) Underwriting (core revenue stream):
- Premiums earned: The company colle...
Skyward Specialty Insurance Group, Inc. Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strong performance indicators: double-digit premium growth, a 46% increase in diluted operating EPS, robust underwriting results (group Combined Ratio 89.5% and Skyward Specialty Combined Ratio 86.9%), meaningful investment income improvement (>60% increase), improved capital metrics (book value +15%, leverage down) and growing fee-based revenue at Apollo. Notable challenges include Apollo's higher quarterly Combined Ratio (97.6%) due to Middle East-related catastrophe losses, pressure in alternative investments (small portion of the portfolio), mix-driven higher loss ratios from A&H and Global Agriculture as they earn in, and ongoing softness/competitive pressure in parts of the property and E&S markets. Overall, the positives — strong earnings, underwriting discipline at Skyward Specialty, capital strength, and scalable fee growth — materially outweigh the headwinds, which are either limited in scale or tied to seasonality/portfolio mix.Positive Updates
Strong Earnings and Returns
Diluted operating EPS rose 46% year-over-year to $1.30. Reported operating income was $59 million for the quarter and $116 million for the first six months, driving an annualized Operating Return on Equity of ~19% for the quarter and 20.4% year-to-date.
Negative Updates
Apollo Combined Ratio and Cat Impact
Apollo reported a Combined Ratio of 97.6% for the quarter, including 5.4 points of catastrophe losses primarily related to the Middle East conflict; YTD Apollo Combined Ratio was 91.3%, and the quarter's expense ratio was elevated at 37.5%.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Earnings and Returns
Diluted operating EPS rose 46% year-over-year to $1.30. Reported operating income was $59 million for the quarter and $116 million for the first six months, driving an annualized Operating Return on Equity of ~19% for the quarter and 20.4% year-to-date.
Read all positive updates
Company Guidance
Management's forward-looking guidance emphasized disciplined capital allocation and modest portfolio shifts: they noted their 2026 earnings outlook (the company is trading at roughly a 12x multiple of that guidance), reiterated Apollo underwriting fee guidance of $30–$35 million for the full year and an amortization run‑rate of about $8.5 million, and said they expect accident‑year loss ratios to increase roughly 1+ percentage point year‑over‑year as A&H and Global Agriculture “earn in.” On capital and balance‑sheet targets they are moving financial leverage from 26% toward a target debt‑to‑capital in the low‑20s, repaid $50 million of a $150 million term loan, repurchased $10 million (223k shares) this quarter and increased the buyback authorization to $100 million, and continue to invest new fixed‑income money at ~5.6% (embedded portfolio yield ~5.3%) across $2.8 billion of invested assets while maintaining stockholders’ equity around $1.3 billion and book value per share of $28.55 (up 15% YTD).Skyward Specialty Insurance Group, Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.64B | 1.41B | 1.15B | 895.40M | 636.40M | 535.82M |
| Gross Profit | 565.84M | 622.11M | 327.89M | 271.65M | 168.20M | 134.35M |
| EBITDA | 262.49M | 227.88M | 165.59M | 124.02M | 60.29M | 58.53M |
| Net Income | 187.90M | 170.03M | 118.83M | 85.98M | 39.40M | 38.32M |
Balance Sheet | ||||||
| Total Assets | 6.78B | 4.79B | 3.73B | 2.95B | 2.36B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 2.41B | 1.55B | 1.18B | 1.35B | 774.17M | 664.74M |
| Total Debt | 437.20M | 119.98M | 119.54M | 128.69M | 128.61M | 128.53M |
| Total Liabilities | 5.51B | 3.78B | 2.94B | 2.29B | 1.94B | 1.69B |
| Stockholders Equity | 1.27B | 1.01B | 794.00M | 661.03M | 421.66M | 426.08M |
Cash Flow | ||||||
| Free Cash Flow | 404.17M | 402.62M | 300.89M | 335.03M | 206.61M | 173.13M |
| Operating Cash Flow | 407.30M | 408.08M | 305.12M | 338.19M | 208.94M | 175.28M |
| Investing Cash Flow | -580.22M | -366.90M | -243.69M | -493.81M | -193.38M | -183.01M |
| Financing Cash Flow | 302.27M | 411.00K | -4.23M | 130.95M | 2.18M | 1.38M |
Skyward Specialty Insurance Group, Inc. Technical Analysis
Neutral
58.04
Price Trends
59.53
Negative
53.21
Positive
49.84
Positive
Market Momentum
-0.54
Positive
46.49
Neutral
42.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKWD, the sentiment is Neutral. The current price of 58.04 is below the 20-day moving average (MA) of 58.18, below the 50-day MA of 59.53, and above the 200-day MA of 49.84, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 42.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKWD.
Skyward Specialty Insurance Group, Inc. Risk Analysis
Skyward Specialty Insurance Group, Inc. disclosed 45 risk factors in its most recent earnings report. Skyward Specialty Insurance Group, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Skyward Specialty Insurance Group, Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
90 Outperform | $2.88B | 5.40 | 50.69% | 0.29% | 41.43% | -57.28% | |
80 Outperform | $2.33B | 7.24 | 30.79% | 0.85% | 22.83% | 86.58% | |
74 Outperform | $1.51B | 22.04 | 7.79% | 3.57% | 7.04% | -18.57% | |
72 Outperform | $2.55B | 12.97 | 16.84% | ― | 37.99% | 34.78% | |
71 Outperform | $876.41M | 15.25 | 15.91% | ― | 14.86% | -30.59% | |
70 Outperform | $2.06B | 14.71 | 8.40% | 3.11% | 22.49% | 44.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
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Skyward Specialty Insurance Group, Inc. Corporate Events
Business Operations and StrategyExecutive/Board Changes
Skyward Specialty Names Taryn McHarg New CFO
Positive
Aug 20, 2026
On August 17, 2026, Skyward Specialty Insurance Group, Inc. announced that Chief Financial Officer Mark Haushill intends to retire effective March 31, 2027, and entered into a Senior Advisor Letter Agreement under which he will serve as Senior Adv...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.