Bowhead Specialty Holdings Reports 32.4% Increase in Gross Written Premiums to $232.4 Million

Bowhead Specialty Holdings Inc. reported significant financial growth in its latest quarterly results, with gross written premiums reaching $232.4 million for the three months ended June 30, 2025, a 32.4% increase from $175.5 million in the same period last year. The company's net income also saw a substantial rise, climbing 123.1% to $12.3 million, compared to $5.5 million in the prior year. This growth was driven by an increase in net written premiums, which rose 32.8% to $148.9 million, reflecting the company's expanding renewal book and growth across its four underwriting divisions.

In terms of operational metrics, Bowhead's net earned premiums increased by 32.2% to $119.1 million, while net investment income surged 55.8% to $13.7 million. The company reported a loss ratio of 66.2%, slightly up from 65.5% a year earlier, attributed to a higher proportion of business from its Casualty division, which typically has higher loss ratios. The expense ratio improved to 30.6% from 33.8%, indicating better operational efficiency as net earned premiums grew at a faster rate than expenses.

Bowhead's total assets increased to $1.94 billion as of June 30, 2025, up from $1.65 billion at the end of 2024. This growth was primarily driven by an increase in fixed maturity securities, which rose to $1.11 billion from $879.9 million. The company's stockholders' equity also improved, reaching $407.2 million, compared to $370.2 million at the end of the previous fiscal year. The increase in equity was largely due to retained earnings and a decrease in unrealized losses on investments.

Strategically, Bowhead has focused on expanding its product offerings and enhancing its underwriting capabilities. The company launched its "flow" underwriting operation in May 2024, aimed at streamlining processes for small and niche risks. Additionally, Bowhead has maintained a strong partnership with American Family Mutual Insurance Company, which has been instrumental in its growth strategy. The company continues to evaluate market conditions and adjust its reinsurance programs accordingly, ensuring a balanced approach to risk management.

Looking ahead, Bowhead Specialty Holdings remains optimistic about its growth trajectory, supported by a strong capital position and a diversified portfolio. The company anticipates continued demand for its specialty insurance products and aims to leverage its underwriting expertise to achieve consistent profitability across market cycles. Management is committed to maintaining operational excellence and enhancing shareholder value through strategic initiatives and prudent capital management.