Bowhead Specialty BOW Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, February 24, 2026 astatine 9:07 AM CST 32 min read

Image source: The Motley Fool.

Tuesday, Feb. 24, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Stephen Sills

• President, Casualty — Derek Broaddus

• Chief Financial Officer — Brad Mulcahey

• Vice President, Investor Relations — Shek [no past sanction provided]

Need a punctuation from a Motley Fool analyst? Email [email protected]

Turning to our performance, earlier this morning, we released our fiscal results for 2025. You tin find our net merchandise successful the Investor Relations conception of our website and aboriginal this evening, you volition besides beryllium capable to find our Form 10-K connected our website. I would similar to punctual everyone that this telephone contains forward-looking statements wrong the meaning of the Private Securities Litigation Reform Act of 1995. Investors should not spot undue reliance connected immoderate forward-looking statement. These statements are made lone arsenic of the day of this telephone and are based connected management's existent expectations and beliefs.

Forward-looking statements are taxable to risks and uncertainties that could origin existent results to disagree materially from those contemplated by these statements. You should reappraisal the risks and uncertainties afloat described successful our SEC filings. We expressly disclaim immoderate work to update immoderate forward-looking connection but arsenic required by law. Additionally, we volition beryllium referencing definite non-GAAP fiscal measures connected this call. Reconciliations of these non-GAAP fiscal measures to their respective astir straight comparable GAAP measures tin beryllium recovered successful the net merchandise we issued this greeting and successful the Investor Relations conception of our website. With that, it is my pleasance to crook the telephone implicit to Stephen Sills.

Stephen Sills: Thank you, Shek. Good morning, everyone, and convey you for taking the clip to articulation america today. I americium precise arrogant of Bowhead Specialty Holdings Inc.'s accomplishments successful 2025. We delivered disciplined premium maturation of 24% for the year, surpassing our archetypal anticipation of 20%. We besides had a meaningful betterment successful our disbursal ratio, coming successful beneath 30% for the twelvemonth and amended than the low-30s scope we expected astatine the commencement of 2025. Together, these achievements resulted successful implicit 30% maturation successful our adjusted nett income for the year, an adjusted instrumentality connected equity of 13.6%, and diluted adjusted net per stock of $1.65. I volition statesman with gross written premiums.

Bowhead Specialty Holdings Inc.'s GWP accrued 21% successful the 4th fourth to $224 cardinal and 24% for the afloat twelvemonth to astir $863 million. We achieved disciplined premium maturation from each of our divisions successful the 4th and for the afloat year, with casualty driving the increase. Given our accent connected underwriting subject and prioritizing profitability implicit volume, we are pleased to person delivered stronger-than-expected maturation successful the 4th quarter. In casualty, GWP accrued astir 26% successful the 4th fourth to $133 cardinal and 28% for the afloat twelvemonth to $551 million. The maturation successful some periods was chiefly driven by our excess casualty portfolio.