Skyward Specialty Insurance’s third quarter results stood out for robust top-line expansion and profitability, with revenue and non-GAAP earnings both surpassing Wall Street expectations. Management attributed this performance to outsized growth in the Agriculture unit—particularly in U.S. dairy and livestock—and continued strength in Accident & Health, Captives, Surety, and specialty programs. CEO Andrew Robinson emphasized, “Our results highlight the strength, durability and execution excellence of our Rule Our Niche strategy,” pointing to the company’s diversified portfolio as a shield against challenging property and casualty markets. Growth was balanced with underwriting discipline, especially in more competitive or inflation-exposed segments.
Is now the time to buy SKWD? Find out in our full research report (it’s free for active Edge members).
Skyward Specialty Insurance (SKWD) Q3 CY2025 Highlights:
- Revenue: $382.5 million vs analyst estimates of $334.8 million (27.1% year-on-year growth, 14.3% beat)
- Adjusted EPS: $1.05 vs analyst estimates of $0.89 (18.6% beat)
- Adjusted Operating Income: $60.55 million (15.8% margin, 29.2% year-on-year growth)
- Market Capitalization: $1.86 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Skyward Specialty Insurance’s Q3 Earnings Call
- Charles Peters (Raymond James) asked about growth drivers outside Agriculture, especially in Accident & Health and Captives. CFO Mark Haushill highlighted disciplined expansion in these areas, emphasizing their insulation from broader P&C cycles.
- Tracy Benguigui (Wolfe Research) questioned the sustainability of elevated growth and capital needs. CEO Andrew Robinson explained capital efficiency and the potential for more fee-based business with Apollo, while downplaying immediate capital constraints.
- Matthew Carletti (Citizens Capital Markets) probed the uneven growth pattern and renewal cycles. Management clarified that divisions like Agriculture and A&H have concentrated renewals, leading to quarterly variability.
- Meyer Shields (KBW) asked about the earnings pattern for Agriculture premiums and expense baseline. Haushill responded that earnings are recognized ratably over 12 months, and current expense levels are a reasonable starting point.
- Andrew Andersen (Jefferies) inquired about construction loss inflation and rate trends. Robinson described persistent severity inflation in construction liability and explained that pricing and exposure growth have held steady, particularly outside Global Property.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will be closely watching (1) the successful integration and performance of new specialty programs and the Agriculture unit’s continued momentum, (2) progress toward the Apollo acquisition closing and its impact on capital structure and business mix, and (3) management’s ability to sustain underwriting discipline in increasingly competitive property and E&S markets. The ongoing deployment of AI-driven underwriting tools and efficiency initiatives will also be important markers for future profitability.
Skyward Specialty Insurance currently trades at $46.15, up from $44.98 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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