Bowhead Specialty Holdings Inc. reported significant financial growth in its 2024 fiscal year, with gross written premiums increasing by 37% to $695.7 million, up from $507.7 million in 2023. The company's net written premiums also rose by 34.9% to $451.4 million, driven by strong performance across all four underwriting divisions: Casualty, Professional Liability, Healthcare Liability, and Baleen Specialty. The Casualty division alone accounted for 62.1% of total gross written premiums, reflecting a strategic focus on complex risks. The company’s net earned premiums surged by 45.9% to $385.1 million, contributing to a total revenue increase of 50.2% to $425.7 million.
Bowhead's profitability metrics also showed improvement, with net income rising by 52.7% to $38.2 million, compared to $25.0 million in the previous year. The company’s underwriting income increased by 29.9% to $18.2 million, while the combined ratio slightly worsened to 95.8% from 94.9%, indicating a marginal increase in loss ratios primarily due to a higher proportion of business from the Casualty division. The loss ratio for 2024 was reported at 64.4%, up from 63.0% in 2023, attributed to changes in the portfolio mix and industry loss ratios.
Strategically, Bowhead expanded its operations by launching a new "flow" underwriting operation in May 2024, aimed at addressing small, niche, and hard-to-place risks. This initiative complements the company's existing "craft" underwriting solutions, which focus on more complex insurance needs. The company also maintained a strong partnership with American Family Mutual Insurance Company (AmFam), which owns approximately 14.4% of Bowhead's common stock and plays a crucial role in its underwriting operations.
Operationally, Bowhead reported a headcount of 249 employees as of December 31, 2024, reflecting its commitment to attracting top talent in the insurance sector. The company’s investment portfolio, primarily composed of fixed-income securities, totaled $889.9 million, with a focus on capital preservation and generating predictable income. Bowhead's liquidity position remains strong, with $21.0 million in cash and investments at the holding company level, ensuring it can meet operational needs and obligations in the near term.
Looking ahead, Bowhead anticipates continued growth driven by favorable market conditions and an increasing demand for specialized insurance solutions. The company aims to leverage its underwriting expertise and strategic partnerships to expand its market share while maintaining a disciplined approach to risk management and capital deployment.
About Bowhead Specialty Holdings Inc.
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