Bowhead Specialty Holdings Inc. has recently released its 10-K report, detailing its performance in the year ended December 31, 2024. The company, based in New York, provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in various segments, professional liability insurance solutions, and healthcare solutions for different healthcare providers. The company distributes its products through distribution partners in wholesale and retail markets.
In the year ended December 31, 2024, Bowhead Specialty reported a significant increase in gross written premiums, which rose by 37.0% to $695.7 million from $507.7 million in the previous year. The net written premiums also saw a substantial increase, rising by 34.9% to $451.4 million from $334.7 million in the previous year. The company's net earned premiums increased by 45.9% to $385.1 million from $263.9 million in the previous year.
The loss ratio for the year ended December 31, 2024, was 64.4%, compared to 63.0% for the year ended December 31, 2023, representing an increase of 1.4 points. This increase was attributed to the mix changes in the company's portfolio, with the Casualty division comprising a larger proportion, which has higher current accident year industry loss ratios.
The company's underwriting income for the year ended December 31, 2024, was $18.2 million, reflecting a 29.9% increase from $14.0 million in the previous year. Adjusted net income also showed a significant increase, rising by 63.2% to $42.7 million from $26.2 million in the previous year.
Bowhead Specialty's return on equity for the year ended December 31, 2024, was 13.6%, compared to 18.2% for the year ended December 31, 2023. The company's diluted earnings per share for the year ended December 31, 2024, were $1.29, while diluted adjusted earnings per share were $1.44, representing an increase from $1.04 and $1.09, respectively, in the previous year.
The company's performance in the year ended December 31, 2024, reflects significant growth in premiums and income, although the loss ratio increased slightly. Bowhead Specialty's focus on specialty insurance products and its strategic partnerships have contributed to its financial results. The market has reacted to these announcements by moving the company's shares -0.8% to a price of $32.81. For more information, read the company's full 10-K submission here.
