P&C insurer Skyward Specialty has reported a “strong” 2022 fourth quarter, with a net income of $20.4 million and an improved combined ratio of 92.4%.
These figures compared to $1.3 million of net income reported in the fourth quarter of 2021, and a combined ratio of 106.8%.
Gross written premiums (GWP) increased 18.1%, from $224,183 million in Q4 2021, to $264,832 million in Q4 2022. Net written premiums were $179,956 million, compared to $140,980 million reported in Q4 2021.
According to the insurer, the quarter to date 2022 increase in GWP, when compared to the same 2021 period, was primarily driven by double-digit premium growth in the Accident & Health, Captives, Professional Lines, Surety, and Transactional E&S underwriting divisions.
The insurer’s adjusted loss ratio also saw an improvement, for Q4 2022 the firm reported a 64.4%, which compares to the 66.2% reported in the same period last year.
Skyward said that this improvement was primarily driven by several factors, including a shift in the mix of business, continued run-off of exited business, and lower catastrophe losses.
Catastrophe losses from Winter Storm Elliott added 1.2 points to the current quarter adjusted loss ratio compared to the fourth quarter of 2021, which was impacted by 1.9 points of catastrophe losses from tornadoes in the Midwest.
Catastrophe losses from Hurricane Ian and Winter Storm Elliott added 1.1 points to the current year adjusted loss ratio compared to the same 2021 period, which was impacted by 2.4 points of catastrophe losses from tornadoes in the Midwest, Hurricane Ida and the first quarter winter storms.
Skyward Specialty CEO Andrew Robinson commented: “We finished 2022 strong with another quarter of double-digit premium growth, a low 90’s combined ratio and full year adjusted ROE of 13.8%. We were minimally impacted by the winter storm that swept across the U.S. the last week of the year, a testament to our disciplined underwriting and the diversity and strength of our business portfolio, which enable us to deliver consistent results even during periods of volatility.
“We continue to realize strong pure rate in excess of expected loss cost trends, and our double-digit growth in each and every one of our eight underwriting divisions during 2022 provides us a terrific launch point for continued growth and margin expansion in 2023.”
Robinson further commented: “2022 was an extraordinary year for Skyward Specialty. Everything that we have done since 2020 was rewarded by the successful completion of our upsized initial public offering (IPO) on the Nasdaq stock exchange and initiated trading on January 13th.
“Our IPO would not have been possible without the hard work of our employees, as well as the support of our policyholders, distribution partners, Board of Directors and shareholders. The accomplishments we have realised since 2020 are not only financial, but wide-reaching and strategic, touching nearly every part of our business. I am incredibly proud of our team and we look forward to capitalising on our positive momentum in 2023, executing our ‘Rule our Niche’ strategy and delivering value to our shareholders, customers, and distribution partners.”
