What a brutal six months it’s been for Skyward Specialty Insurance. The stock has dropped 24.7% and now trades at $46.60, rattling many shareholders. This might have investors contemplating their next move.

Given the weaker price action, is now the time to buy SKWD? Find out in our full research report, it’s free for active Edge members.

Why Are We Positive On Skyward Specialty Insurance?

Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ: SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.

1. Net Premiums Earned Skyrocket, Fueling Growth Opportunities

Insurers sell policies then use reinsurance (insurance for insurance companies) to protect themselves from large losses. Net premiums earned are therefore what's collected from selling policies less what’s paid to reinsurers as a risk mitigation tool.

Skyward Specialty Insurance’s net premiums earned has grown at a 26.6% annualized rate over the last two years, much better than the broader insurance industry and in line with its total revenue.

2. Growing BVPS Reflects Strong Asset Base

We consider book value per share (BVPS) a critical metric for insurance companies. BVPS represents the total net worth per share, providing insight into a company’s financial strength and ability to meet policyholder obligations.

Fortunately for investors, Skyward Specialty Insurance’s BVPS grew at an incredible 29.3% annual clip over the last two years.

3. Projected BVPS Growth Is Remarkable

The key to book value per share (BVPS) growth is an insurer’s ability to earn underwriting profits while generating strong returns on its float - Warren Buffet’s secret sauce.

Over the next 12 months, Consensus estimates call for Skyward Specialty Insurance’s BVPS to grow by 22.6% to $22.72, elite growth rate.

Final Judgment

These are just a few reasons why Skyward Specialty Insurance ranks near the top of our list. After the recent drawdown, the stock trades at 2× forward P/B (or $46.60 per share). Is now a good time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More Than Skyward Specialty Insurance

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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