What Happened?
Shares of specialty insurance provider Skyward Specialty Insurance (NASDAQ: SKWD) jumped 5.7% in the morning session after the company announced a definitive agreement to acquire Lloyd’s specialist, Apollo Group Holdings Limited, for a total consideration of $555 million.
The deal, consisting of $371 million in cash and $184 million in stock, is expected to significantly benefit Skyward's financial performance. The company projects the acquisition will deliver double-digit adjusted operating earnings per share (EPS) accretion in the first full year after closing and add over $1.5 billion in managed premium. Strategically, the move provides Skyward with a strong source of inorganic growth and diversification into the Lloyd's market, opening up new specialty business areas. Following the news, JMP Securities reiterated its 'Market Outperform' rating and raised its price target on the stock from $65 to $70, signaling confidence in the company's prospects.
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What Is The Market Telling Us
Skyward Specialty Insurance’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Skyward Specialty Insurance is up 5.1% since the beginning of the year, but at $51.55 per share, it is still trading 20.7% below its 52-week high of $65 from June 2025. Investors who bought $1,000 worth of Skyward Specialty Insurance’s shares at the IPO in January 2023 would now be looking at an investment worth $2,699.
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