Property and casualty (P&C) specialty insurance company Skyward Specialty Insurance Group announced financial results for the fourth quarter of 2025, with net profit of $43.2 million, total premiums increased by 13.2%, and a combined ratio of 88.5%.
Net income improved significantly in the fourth quarter of 2025 compared to $14.4 million in the same period last year. Net profit for the year to 2025 was $170 million, up from $118.8 million for the same period in 2024.
Adjusted operating income increased in both the fourth quarter and the full year. In the fourth quarter, adjusted operating income increased from $33.2 million in 2024 to $48.9 million in 2025. Full-year 2025 adjusted operating income was $167.4 million, compared with $126.6 million in the prior year.
Gross written premiums (GWP) for the fourth quarter of 2025 were $439.5 million, compared with $388.3 million in the same period last year. Net written premiums increased slightly in the quarter compared to the fourth quarter of 2024, rising 4.3% to $282.6 million.
The increase in total premiums written in the fourth quarter compared to the same period in 2024 was primarily driven by growth in accident and health and special items.
Skyward reported a combined ratio of 88.5% for the quarter, an improvement from 95.8% in the fourth quarter of 2024. In 2025, the CoR is 89.3%, an improvement from 92.3% in 2024.
Compared with the same period in 2024, the loss rate in the fourth quarter of 2025 and 2025 was 59.6%, an improvement of 7.3 percentage points and 2.5 percentage points respectively.
The quarter and year to 2025 benefited from favorable developments in the previous accident years, as well as lower catastrophe losses compared to the same period in 2024.
Expense ratio was flat and improved by 0.5 percentage point in the fourth quarter and through 2025, respectively, compared with the same period in 2024, as higher acquisition costs due to business mix shifts offset earnings leverage.
Andrew Robinson, Chairman and Chief Executive Officer of Skyward Group, commented: “The fourth quarter was another outstanding quarter, capping off a truly transformational year for the company. Similar to the first three quarters, we delivered the best results in the company in terms of adjusted operating income, underwriting revenue and a combined ratio of 88.5%.”
“Our total premiums grew 13% in the quarter and 24% for the full year, and our return on equity and return on tangible equity for the year were outstanding at 18.9% and 20.9%, respectively(1).”
Robinson continued: “Our focus and disciplined execution of our ‘Dominate Our Niche’ strategy is underlined by the strength of our intentionally constructed diversified portfolio, with nearly half of our business falling within non-cyclical exposures, placing us particularly well-positioned given the changing property and casualty market backdrop.
“Looking forward, with the additional capabilities and outstanding Apollo team, we are very well positioned as a company to continue to build and maintain a winning position in the specialty insurance market and generate top-quarter returns and long-term, sustainable shareholder value.”