May 6 - (The Insurer) - Bowhead Specialty Holdings reported improved underwriting results and strong top-line growth for the first quarter as it generated diluted adjusted earnings per share of $0.34 that was broadly in line with analysts’ consensus forecast of $0.33.
Gross premiums written (GPW) surged 26.3% to $174.8 million, with net premiums written $(NPW.SI)$ up 28.5% to $116.8 million and net premiums earned up 32.3% to $109.8 million.
Net income grew by over 60% to $11.4 million, with adjusted net income up 40% to $11.5 million.
The New York-based E&S-focused company went public after launching its IPO in May last year.
And in its first Q1 earnings release as a public company it generated a combined ratio that improved from 98.1% to 97.3%, driven by an expense ratio that narrowed from 32.6% to 30.4%, partially offset by a slight deterioration in its loss ratio from 65.5% to 66.9%.
In commentary, Bowhead Specialty said the increased loss ratio came from a 40 basis point increase from prior accident year reserve development and a 100 basis point increase in its current accident year loss ratio as a result of changes in its portfolio mix.
Commenting on the top-line growth, the company said its casualty division led the way a 33.7% increase in GPW to $122.3 million, while healthcare liability grew by 9% to $23.8 million, and professional liability was up 2.8% to $26.0 million.
It also said that Baleen Specialty, the new division launched in Q2 2024 to focus on small hard-to-place risks, generated $2.7 million of GPW in the first quarter.
The unit is described as a streamlined, tech-enabled low touch “flow” underwriting operation focusing on non-admitted risks that supplements the “craft” solutions offered by the company.
Bowhead Specialty’s founding CEO Stephen Sills said the first quarter results demonstrated “continued execution” across the company’s underwriting divisions.
“Although there is heightened uncertainty in the market given rising trade tensions and macroeconomic headwinds, we believe that Bowhead is currently well positioned to execute on our goal to grow premiums by around 20% on an annual basis,” he said.
Other metrics included an increase in net investment income of 64.0% to $12.6 million and an adjusted return on equity of 12.1%.
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