Bowhead Specialty Holdings Inc. Reports Fourth Quarter 2024 Results
Bowhead Specialty Holdings Inc. (NYSE:BOW), a specialty lines insurance group focused on providing casualty, professional liability and healthcare liability insurance products, today announced financial results for the fourth quarter ended December 31, 2024(1).
Fourth Quarter 2024 Highlights
- Gross written premiums increased 26.3% to $184.8 million.
- Net income of $13.6 million, or $0.41 per diluted share.
- Adjusted net income(2) of $14.1 million, or $0.42 per diluted share(2).
- Return on equity of 14.8% and adjusted return on equity(2) of 15.3%.
- Book value per share $11.34 and diluted book value per share of $11.03.
Full Year 2024 Highlights
- Gross written premiums increased 37.0% to $695.7 million.
- Net income of $38.2 million, or $1.29 per diluted share.
- Adjusted net income(2) of $42.7 million, or $1.44 per diluted share(2).
- Return on equity of 13.6% and adjusted return on equity(2) of 15.2%.
Bowhead Chief Executive Officer, Stephen Sills, commented, "After completing our fourth year of operations, we are once again incredibly proud of what we've accomplished. This milestone year as a new public company has been defined by profitable growth, continued innovation, and strong execution across all our underwriting divisions. Premiums grew 37% in the year driven by a 56% growth in our Casualty division and double-digit premium growth in our Healthcare Liability and Professional Liability divisions. Late in Q2, we launched Baleen, our tech-enabled low touch "flow" underwriting operation, which supplements our "craft" underwriting solution. We are pleased with our initial results and look forward to applying this technology in other areas of our business. As we look ahead into 2025, our focus is to build on the momentum we generated in 2024 and continue to grow our business profitably. This is just the beginning for Bowhead and I couldn't be more excited for what I expect to be a company that is capable of cross cycle profitability."
Underwriting Results
The 26.3% increase in gross written premiums to $184.8 million in the fourth quarter of 2024 was driven by renewals, new business and continued growth in our platform across all divisions:
- Our Casualty division led the growth with a 43.1% increase to $105.9 million;
- Healthcare Liability increased 8.8% to $31.7 million; and
- Professional Liability increased 6.5% to $46.0 million.
- Late in the second quarter of 2024, we launched a new division called Baleen Specialty, which focuses on small, hard-to-place risks written 100% on a non-admitted basis. Baleen is a streamlined, tech-enabled low touch "flow" underwriting operation that supplements the "craft" solutions we offer today. In line with our deliberate, measured and limited roll out, Baleen Specialty generated $1.2 million of gross written premiums for the fourth quarter of 2024, a sequential growth of 175% from the previous quarter.
Our loss ratio for the year of 64.4% increased 1.4 points compared to 63.0% in 2023 due to mix changes in the portfolio, where Casualty, which has higher current accident year industry loss ratios, comprised a larger proportion of our portfolio compared to 2023. There was no prior accident year reserve development in our loss ratio for the year.
During the quarter, as part of our annual independent actuarial reserve review, we reallocated prior accident year loss reserves by division, primarily from Professional Liability to Casualty, to align more closely with industry loss ratios. The increase in our loss ratio and reallocation of prior accident year reserves are primarily based on inputs from industry data due to Bowhead's limited loss experience. As of December 31, 2024, incurred but not reported liabilities comprised 90.7% of our net loss reserves.
Our expense ratio for the fourth quarter of 30.1% and for the year ended December 31, 2024 of 31.4%, decreased 1.2 points and 0.5 points, respectively, driven by the continued scaling of our business and prudent management of operating expenses.
Investment Results
Net investment income increased 79.8% in the quarter to $12.2 million and 107.1% for the year to $40.1 million, driven by the increase in our investment portfolio and higher yields on invested assets. Our investment portfolio had a had a book yield of 4.6% and a new money rate of 4.9% at the end of the year.
The weighted average effective duration of our investment portfolio, which included cash equivalents, was 2.2 years and had an average rating of "AA" at December 31, 2024.
____________________ |
||
(1) |
|
Comparisons in this release are made to December 31, 2023 financial results unless otherwise noted. |
(2) |
|
Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the non-GAAP financial measures to their most directly comparable U.S. GAAP measures. |
Summary of Operating Results
The following table summarizes the Company's results of operations for the three and twelve months ended December 31, 2024 and 2023:
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
|
($ in thousands, except percentages and per share data) |
||||||||||||||||||||
Gross written premiums |
$ |
184,769 |
|
|
$ |
146,321 |
|
|
26.3 |
% |
|
$ |
695,717 |
|
|
$ |
507,688 |
|
|
37.0 |
% |
Ceded written premiums |
|
(64,585 |
) |
|
|
(51,376 |
) |
|
25.7 |
% |
|
|
(244,295 |
) |
|
|
(173,016 |
) |
|
41.2 |
% |
Net written premiums |
$ |
120,184 |
|
|
$ |
94,945 |
|
|
26.6 |
% |
|
$ |
451,422 |
|
|
$ |
334,672 |
|
|
34.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums |
$ |
106,864 |
|
|
$ |
75,992 |
|
|
40.6 |
% |
|
$ |
385,111 |
|
|
$ |
263,902 |
|
|
45.9 |
% |
Net investment income |
|
12,193 |
|
|
|
6,782 |
|
|
79.8 |
% |
|
|
40,121 |
|
|
|
19,371 |
|
|
107.1 |
% |
Net realized investment losses |
|
— |
|
|
|
— |
|
|
NM |
|
|
|
(16 |
) |
|
|
— |
|
|
NM |
|
Other insurance-related income |
|
274 |
|
|
|
31 |
|
|
783.9 |
% |
|
|
444 |
|
|
|
125 |
|
|
255.2 |
% |
Total revenues |
|
119,331 |
|
|
|
82,805 |
|
|
44.1 |
% |
|
|
425,660 |
|
|
|
283,398 |
|
|
50.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net losses and loss adjustment expenses |
|
66,937 |
|
|
|
52,618 |
|
|
27.2 |
% |
|
|
248,099 |
|
|
|
166,282 |
|
|
49.2 |
% |
Net acquisition costs |
|
9,130 |
|
|
|
5,787 |
|
|
57.8 |
% |
|
|
32,397 |
|
|
|
20,935 |
|
|
54.8 |
% |
Operating expenses |
|
23,352 |
|
|
|
18,001 |
|
|
29.7 |
% |
|
|
89,112 |
|
|
|
63,456 |
|
|
40.4 |
% |
Non-operating expenses |
|
622 |
|
|
|
630 |
|
|
(1.3 |
)% |
|
|
2,807 |
|
|
|
630 |
|
|
345.6 |
% |
Warrant expense |
|
792 |
|
|
|
— |
|
|
NM |
|
|
|
1,917 |
|
|
|
— |
|
|
NM |
|
Credit facility interest expenses and fees |
|
248 |
|
|
|
— |
|
|
NM |
|
|
|
725 |
|
|
|
— |
|
|
NM |
|
Foreign exchange losses (gains) |
|
1 |
|
|
|
(41 |
) |
|
(102.4 |
)% |
|
|
68 |
|
|
|
(20 |
) |
|
(440.0 |
)% |
Total expenses |
|
101,082 |
|
|
|
76,995 |
|
|
31.3 |
% |
|
|
375,125 |
|
|
|
251,283 |
|
|
49.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes |
|
18,249 |
|
|
|
5,810 |
|
|
214.1 |
% |
|
|
50,535 |
|
|
|
32,115 |
|
|
57.4 |
% |
Income tax expense |
|
(4,642 |
) |
|
|
(1,027 |
) |
|
352.0 |
% |
|
|
(12,292 |
) |
|
|
(7,068 |
) |
|
73.9 |
% |
Net income |
$ |
13,607 |
|
|
$ |
4,783 |
|
|
184.5 |
% |
|
$ |
38,243 |
|
|
$ |
25,047 |
|
|
52.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Key Operating and Financial Metrics: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income(1) |
$ |
14,099 |
|
|
$ |
5,793 |
|
|
143.4 |
% |
|
$ |
42,686 |
|
|
$ |
26,152 |
|
|
63.2 |
% |
Loss ratio |
|
62.6 |
% |
|
|
69.2 |
% |
|
|
|
|
64.4 |
% |
|
|
63.0 |
% |
|
|
||
Expense ratio |
|
30.1 |
% |
|
|
31.3 |
% |
|
|
|
|
31.4 |
% |
|
|
31.9 |
% |
|
|
||
Combined ratio |
|
92.7 |
% |
|
|
100.5 |
% |
|
|
|
|
95.8 |
% |
|
|
94.9 |
% |
|
|
||
Return on equity(2) |
|
14.8 |
% |
|
|
11.0 |
% |
|
|
|
|
13.6 |
% |
|
|
18.2 |
% |
|
|
||
Adjusted return on equity(1)(2) |
|
15.3 |
% |
|
|
13.4 |
% |
|
|
|
|
15.2 |
% |
|
|
19.0 |
% |
|
|
||
Diluted earnings per share |
$ |
0.41 |
|
|
$ |
0.20 |
|
|
|
|
$ |
1.29 |
|
|
$ |
1.04 |
|
|
|
||
Diluted adjusted earnings per share(1) |
$ |
0.42 |
|
|
$ |
0.24 |
|
|
|
|
$ |
1.44 |
|
|
$ |
1.09 |
|
|
|
||
____________________ |
||
NM - Percentage change is not meaningful. |
||
(1) |
|
Non-GAAP financial measure. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the non-GAAP financial measures to their most directly comparable U.S. GAAP measures. |
(2) |
|
For the three months ended December 31, 2024 and 2023, net income and adjusted net income are annualized to arrive at return on equity and adjusted return on equity. |
Condensed Consolidated Balance Sheets
|
December 31,
|
|
December 31,
|
||||
|
($ in thousands, except share data) |
||||||
Assets |
|
|
|
||||
Investments |
|
|
|
||||
Fixed maturity securities, available for sale, at fair value (amortized cost of $894,145 and $569,013, respectively) |
$ |
879,989 |
|
|
$ |
554,624 |
|
Short-term investments, at amortized cost, which approximates fair value |
|
9,997 |
|
|
|
8,824 |
|
Total investments |
|
889,986 |
|
|
|
563,448 |
|
|
|
|
|
||||
Cash and cash equivalents |
|
97,476 |
|
|
|
118,070 |
|
Restricted cash and cash equivalents |
|
124,582 |
|
|
|
1,698 |
|
Accrued investment income |
|
7,520 |
|
|
|
4,660 |
|
Premium balances receivable |
|
63,672 |
|
|
|
38,817 |
|
Reinsurance recoverable |
|
255,072 |
|
|
|
139,389 |
|
Prepaid reinsurance premiums |
|
152,567 |
|
|
|
116,732 |
|
Deferred policy acquisition costs |
|
27,625 |
|
|
|
19,407 |
|
Property and equipment, net |
|
6,845 |
|
|
|
7,601 |
|
Income taxes receivable |
|
586 |
|
|
|
1,107 |
|
Deferred tax assets, net |
|
20,340 |
|
|
|
14,229 |
|
Other assets |
|
7,971 |
|
|
|
2,701 |
|
Total assets |
$ |
1,654,242 |
|
|
$ |
1,027,859 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Reserve for losses and loss adjustment expenses |
$ |
756,859 |
|
|
$ |
431,186 |
|
Unearned premiums |
|
446,850 |
|
|
|
344,704 |
|
Reinsurance balances payable |
|
51,856 |
|
|
|
40,440 |
|
Income taxes payable |
|
1,571 |
|
|
|
42 |
|
Accrued expenses |
|
18,010 |
|
|
|
14,900 |
|
Other liabilities |
|
8,654 |
|
|
|
4,510 |
|
Total liabilities |
|
1,283,800 |
|
|
|
835,782 |
|
|
|
|
|
||||
Commitments and contingencies (Note 13) |
|
|
|
||||
|
|
|
|
||||
Mezzanine equity |
|
|
|
||||
Performance stock units |
|
265 |
|
|
|
— |
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Common stock |
|
327 |
|
|
|
240 |
|
($0.01 par value; 400,000,000 shares authorized, 32,662,683 and 24,000,000 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively) |
|
|
|
||||
Additional paid-in capital |
|
318,095 |
|
|
|
178,543 |
|
Accumulated other comprehensive loss |
|
(11,154 |
) |
|
|
(11,372 |
) |
Retained earnings |
|
62,909 |
|
|
|
24,666 |
|
Total stockholders' equity |
|
370,177 |
|
|
|
192,077 |
|
Total mezzanine equity and stockholders' equity |
|
370,442 |
|
|
|
192,077 |
|
|
|
|
|
||||
Total liabilities, mezzanine equity and stockholders' equity |
$ |
1,654,242 |
|
|
$ |
1,027,859 |
|
Gross Written Premiums
The following tables present gross written premiums by underwriting division for the three and twelve months ended December 31, 2024 and 2023:
|
Three Months Ended December 31, |
|||||||||||||||||||
|
|
2024 |
|
|
% of Total |
|
|
2023 |
|
|
% of Total |
|
$ Change |
|
% Change |
|||||
|
($ in thousands, except percentages) |
|||||||||||||||||||
Casualty |
$ |
105,872 |
|
|
57.3 |
% |
|
$ |
73,993 |
|
|
50.6 |
% |
|
$ |
31,879 |
|
|
43.1 |
% |
Professional Liability |
|
46,010 |
|
24.9 |
% |
|
|
43,195 |
|
29.5 |
% |
|
|
2,815 |
|
6.5 |
% |
|||
Healthcare Liability |
|
31,699 |
|
|
17.2 |
% |
|
|
29,133 |
|
|
19.9 |
% |
|
|
2,566 |
|
|
8.8 |
% |
Baleen Specialty |
|
1,188 |
|
|
0.6 |
% |
|
|
— |
|
|
— |
% |
|
|
1,188 |
|
|
NM |
|
Gross written premiums |
$ |
184,769 |
|
|
100.0 |
% |
|
$ |
146,321 |
|
|
100.0 |
% |
|
$ |
38,448 |
|
|
26.3 |
% |
|
Twelve Months Ended December 31, |
|||||||||||||||||||
|
|
2024 |
|
|
% of Total |
|
|
2023 |
|
|
% of Total |
|
$ Change |
|
% Change |
|||||
|
($ in thousands, except percentages) |
|||||||||||||||||||
Casualty |
$ |
431,817 |
|
|
62.1 |
% |
|
$ |
277,455 |
|
|
54.7 |
% |
|
$ |
154,362 |
|
|
55.6 |
% |
Professional Liability |
|
160,651 |
|
23.1 |
% |
|
|
145,251 |
|
28.6 |
% |
|
|
15,400 |
|
10.6 |
% |
|||
Healthcare Liability |
|
101,619 |
|
|
14.6 |
% |
|
|
84,982 |
|
|
16.7 |
% |
|
|
16,637 |
|
|
19.6 |
% |
Baleen Specialty |
|
1,630 |
|
|
0.2 |
% |
|
|
— |
|
|
— |
% |
|
|
1,630 |
|
|
NM |
|
Gross written premiums |
$ |
695,717 |
|
|
100.0 |
% |
|
$ |
507,688 |
|
|
100.0 |
% |
|
$ |
188,029 |
|
|
37.0 |
% |
Loss Ratio
The following tables summarize current and prior accident year loss ratios for the three and twelve months ended December 31, 2024 and 2023:
|
Three Months Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
||||||||||
|
Net Losses and Loss Adjustment Expenses |
|
% of Net Earned Premiums |
|
Net Losses and Loss Adjustment Expenses |
|
% of Net Earned Premiums |
||||||
|
($ in thousands, except percentages) |
||||||||||||
Current accident year |
$ |
66,937 |
|
|
62.6 |
% |
|
$ |
53,254 |
|
|
70.0 |
% |
Prior accident year reserve development |
|
— |
|
— |
% |
|
|
(636 |
) |
|
(0.8 |
)% |
|
Total |
$ |
66,937 |
|
|
62.6 |
% |
|
$ |
52,618 |
|
|
69.2 |
% |
|
Twelve Months Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
||||||||||
|
Net Losses and Loss Adjustment Expenses |
|
% of Net Earned Premiums |
|
Net Losses and Loss Adjustment Expenses |
|
% of Net Earned Premiums |
||||||
|
($ in thousands, except percentages) |
||||||||||||
Current accident year |
$ |
248,099 |
|
|
64.4 |
% |
|
$ |
166,282 |
|
|
63.0 |
% |
Prior accident year reserve development |
|
— |
|
— |
% |
|
|
— |
|
— |
% |
||
Total |
$ |
248,099 |
|
|
64.4 |
% |
|
$ |
166,282 |
|
|
63.0 |
% |
Expense Ratio
The following tables summarize the components of our expense ratio for the three and twelve months ended December 31, 2024 and 2023:
|
Three Months Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
||||||||||
|
Expenses |
|
% of Net Earned Premiums |
|
Expenses |
|
% of Net Earned Premiums |
||||||
|
($ in thousands, except percentages) |
||||||||||||
Net acquisition costs |
$ |
9,130 |
|
|
8.5 |
% |
|
$ |
5,787 |
|
|
7.6 |
% |
Operating expenses |
|
23,352 |
|
|
21.9 |
% |
|
|
18,001 |
|
|
23.7 |
% |
Less: Other insurance-related income |
|
(274 |
) |
|
(0.3 |
)% |
|
|
(31 |
) |
|
— |
% |
Total expense ratio |
$ |
32,208 |
|
|
30.1 |
% |
|
$ |
23,757 |
|
|
31.3 |
% |
|
Twelve Months Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
||||||||||
|
Expenses |
|
% of Net Earned Premiums |
|
Expenses |
|
% of Net Earned Premiums |
||||||
|
($ in thousands, except percentages) |
||||||||||||
Net acquisition costs |
$ |
32,397 |
|
|
8.4 |
% |
|
$ |
20,935 |
|
|
7.9 |
% |
Operating expenses |
|
89,112 |
|
|
23.1 |
% |
|
|
63,456 |
|
|
24.0 |
% |
Less: Other insurance-related income |
|
(444 |
) |
|
(0.1 |
)% |
|
|
(125 |
) |
|
— |
% |
Total expense ratio |
$ |
121,065 |
|
|
31.4 |
% |
$ |
84,266 |
|
|
31.9 |
% |
|
Net Investment Income
The following table summarizes the sources of net investment income for the three and twelve months ended December 31, 2024 and 2023:
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in thousands) |
||||||||||||||
U.S. government and government agency |
$ |
3,198 |
|
|
$ |
2,511 |
|
|
$ |
14,514 |
|
|
$ |
4,673 |
|
State and municipal |
|
591 |
|
|
|
387 |
|
|
|
1,832 |
|
|
|
1,550 |
|
Commercial mortgage-backed securities |
|
981 |
|
|
|
378 |
|
|
|
2,584 |
|
|
|
1,381 |
|
Residential mortgage-backed securities |
|
2,399 |
|
|
|
244 |
|
|
|
6,517 |
|
|
|
962 |
|
Asset-backed securities |
|
1,283 |
|
|
|
1,171 |
|
|
|
3,043 |
|
|
|
3,708 |
|
Corporate |
|
2,154 |
|
|
|
934 |
|
|
|
5,768 |
|
|
|
3,448 |
|
Short-term investments |
|
130 |
|
|
|
126 |
|
|
|
480 |
|
|
|
943 |
|
Cash and cash equivalents |
|
1,700 |
|
|
|
1,179 |
|
|
|
6,193 |
|
|
|
3,190 |
|
Gross investment income |
|
12,436 |
|
|
|
6,930 |
|
|
|
40,931 |
|
|
|
19,855 |
|
Investment expenses |
|
(243 |
) |
|
|
(148 |
) |
|
|
(810 |
) |
|
|
(484 |
) |
Net investment income |
$ |
12,193 |
|
|
$ |
6,782 |
|
|
$ |
40,121 |
|
|
$ |
19,371 |
|
Reconciliation of Non-GAAP Financial Measures
This earnings release contains certain financial measures that are not presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). We use these non-GAAP financial measures when planning, monitoring and evaluating our performance. Management believes that each of the non-GAAP financial measures described below provides useful insight into our underlying business performance.
- Adjusted net income is defined as net income excluding the impact of net realized investment losses, non-operating expenses, foreign exchange losses (gains), and certain strategic initiatives. Adjusted net income excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments that would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments.
- Adjusted return on equity is defined as adjusted net income as a percentage of average beginning and ending mezzanine equity and stockholders' equity.
- Diluted adjusted earnings per share is defined as adjusted net income divided by the weighted average common shares outstanding for the period, reflecting the dilution that may occur if equity based awards are converted into common stock equivalents as calculated using the treasury stock method.
You should not rely on these non-GAAP financial measures as a substitute for any U.S. GAAP financial measure. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and not as a replacement for or superior to the comparable U.S. GAAP measures. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures.
Adjusted net income
Adjusted net income for the three and twelve months ended December 31, 2024 and 2023 reconciles to net income as follows:
|
Three Months Ended December 31, |
||||||||||||||
|
2024 |
|
2023 |
||||||||||||
|
Before income taxes |
|
After income taxes |
|
Before income taxes |
|
After income taxes |
||||||||
|
($ in thousands) |
||||||||||||||
Income as reported |
$ |
18,249 |
|
|
$ |
13,607 |
|
|
$ |
5,810 |
|
|
$ |
4,783 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Non-operating expenses |
|
622 |
|
|
622 |
|
|
|
630 |
|
|
|
630 |
|
|
Foreign exchange losses (gains) |
|
1 |
|
|
|
1 |
|
|
|
(41 |
) |
|
|
(41 |
) |
Strategic initiatives(1) |
|
— |
|
|
|
— |
|
|
|
706 |
|
|
|
706 |
|
Tax impact |
|
— |
|
|
|
(131 |
) |
|
|
— |
|
|
|
(285 |
) |
Adjusted net income |
$ |
18,872 |
|
|
$ |
14,099 |
|
|
$ |
7,105 |
|
|
$ |
5,793 |
|
|
Twelve Months Ended December 31, |
||||||||||||||
|
2024 |
|
2023 |
||||||||||||
|
Before income taxes |
|
After income taxes |
|
Before income taxes |
|
After income taxes |
||||||||
|
($ in thousands) |
||||||||||||||
Income as reported |
$ |
50,535 |
|
|
$ |
38,243 |
|
|
$ |
32,115 |
|
|
$ |
25,047 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Net realized investment losses |
|
16 |
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
Non-operating expenses |
|
2,807 |
|
|
|
2,807 |
|
|
|
630 |
|
|
|
630 |
|
Foreign exchange losses (gains) |
|
68 |
|
|
|
68 |
|
|
|
(20 |
) |
|
|
(20 |
) |
Strategic initiatives(1) |
|
2,733 |
|
|
|
2,733 |
|
|
|
806 |
|
|
|
806 |
|
Tax impact |
|
— |
|
|
|
(1,181 |
) |
|
|
— |
|
|
|
(311 |
) |
Adjusted net income |
$ |
56,159 |
|
|
$ |
42,686 |
|
|
$ |
33,531 |
|
|
$ |
26,152 |
|
____________________ |
||
(1) |
|
Strategic initiatives for the three months and years ended December 31, 2024 and 2023 represents costs incurred to set up our Baleen Specialty division, which is recorded in operating expenses within the Consolidated Statements of Income and Comprehensive Income. The costs incurred primarily represent expenses to implement the new platform and processes supporting the Baleen Specialty division. See "Business— Our Business" |
Adjusted return on equity
Adjusted return on equity for the three and twelve months ended December 31, 2024 and 2023 reconciles to return on equity as follows:
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in thousands, except percentages) |
||||||||||||||
Numerator: Adjusted net income(1) |
$ |
56,395 |
|
|
$ |
23,172 |
|
|
$ |
42,686 |
|
|
$ |
26,152 |
|
Denominator: Average mezzanine equity and stockholders' equity |
|
367,467 |
|
|
|
173,251 |
|
|
|
281,259 |
|
|
|
137,726 |
|
Adjusted return on equity |
|
15.3 |
% |
|
|
13.4 |
% |
|
|
15.2 |
% |
|
|
19.0 |
% |
____________________ |
||
(1) |
|
For the three months ended December 31, 2024 and 2023, net income and adjusted net income are annualized to arrive at return on equity and adjusted return on equity. |
Diluted adjusted earnings per share
Diluted adjusted earnings per share for the three and twelve months ended December 31, 2024 and 2023 reconciles to diluted earnings per share as follows:
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
($ in thousands, except share and per share data) |
||||||||||||||
Numerator: Adjusted net income |
$ |
14,099 |
|
|
$ |
5,793 |
|
|
$ |
42,686 |
|
|
$ |
26,152 |
|
Denominator: Diluted weighted average shares outstanding |
|
33,571,535 |
|
|
|
24,000,000 |
|
|
|
29,677,196 |
|
|
|
24,000,000 |
|
Diluted adjusted earnings per share |
$ |
0.42 |
|
|
$ |
0.24 |
|
|
$ |
1.44 |
|
|
$ |
1.09 |
|
About Bowhead Specialty Holdings Inc.
Bowhead Specialty is a specialty lines insurance group providing casualty, professional liability and healthcare liability insurance products. The team is composed of highly experienced and respected industry veterans with decades of individual, successful underwriting and management experience. We provide "craft" underwriting solutions, which require deep underwriting and claims expertise in order to produce attractive financial results. In May 2024, we supplemented our "craft" solution with our "flow" underwriting operation, which is a streamlined, tech-enabled low touch form of underwriting, focused on small, niche and hard-to-place risks. Our policies are primarily written on a non-admitted, or excess and surplus lines ("E&S") basis, which is free of rate and policy form restrictions, and provides the flexibility to rapidly adjust to emerging market opportunities.
We pride ourselves on the quality and experience of our people, who are committed to exceeding our partners' expectations through excellent service and expertise. Our collaborative culture spans all functions of our business, which allows us to provide a consistent, positive experience for all of our partners.
Conference Call
The Company will host a conference call to discuss its results today, Tuesday, February 25, 2025, beginning at 8:30 a.m. Eastern Time. Interested parties may access the conference call through a live webcast, which can be accessed via this link or by visiting the Company's Investor Relations website. A dial-in option for listen-only participants will be available after registering for the call. Please join the live webcast or dial in at least 10 minutes before the start of the call.
A replay of the event webcast will be available on the company's Investor Relations website for one year following the call.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in press release are forward-looking statements. In some cases, forward-looking statements can be identified by terms such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "seeks," "future," "outlook," "prospects" "will," "would," "should," "could," "may," "can have" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. These risks include those described in the Company's filings made with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250225372984/en/
Investor Relations Contact:
Shirley Yap, Head of Investor Relations
[email protected]