Yahoo Finance

• Premium Growth: 37% increase in premiums for 2024, exceeding the annual target of 20%.

• Adjusted Net Income: $14.1 million in Q4, up 143% year over year.

• Adjusted Return on Equity (ROE): 15.2% for 2024.

• Gross Written Premiums: Increased 26% to $185 million in Q4.

• Casualty Division Premiums: 43% increase year over year to $106 million in Q4.

• Healthcare Liability Premiums: Increased 9% year over year to $32 million in Q4.

• Professional Liability Premiums: Increased 7% year over year to $46 million in Q4.

• Baleen Premiums: $1.2 million in Q4, a 175% growth from the previous quarter.

• Loss Ratio: 64.4% for 2024, up 1.4 points from 2023.

• Expense Ratio: 31.4% for 2024, a decrease of 0.5 points from 2023.

• Combined Ratio: 95.8% for 2024.

• Pre-Tax Net Investment Income: Increased 80% to $12 million in Q4.

• Book Yield: 4.6% at the end of 2024.

• Total Equity: $370 million, with a diluted book value per share of $11.03, up 38% from 2023.

• Warning! GuruFocus has detected 7 Warning Sign with SGHC.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bowhead Specialty Holdings Inc (NYSE:BOW) achieved a 37% growth in premiums in 2024, surpassing their annual target of 20%.

• The company successfully completed an upsized IPO and a secondary public offering, reflecting strong demand for its stock.

• Bowhead's adjusted return on equity for the year was 15.2%, delivering attractive returns on capital to investors.

• The company launched a new division, Baleen Specialty, focusing on small, hard-to-place risks, which showed promising initial results.

• Bowhead improved its expense ratio by 0.5 points in 2024, demonstrating effective cost management.

Negative Points

• The company's 2024 loss ratio increased by 1.4 points compared to 2023, primarily due to changes in portfolio mix.

• Bowhead faces challenges in recruiting underwriting talent, particularly in the excess and primary casualty space.

• The healthcare liability division experienced decelerated growth due to increased competition.

• The professional liability division faced pressure from aggressive pricing by competitors, particularly in large publicly traded risks.

• The company's net acquisition ratio increased due to higher broker commissions, impacting overall expenses.

Q & A Highlights

Q: Can you provide more color on the fourth quarter accident or loss ratio compared to the first nine months? A: (Brad Mulcahy, CFO) The full-year loss ratio is a better indicator due to the Q4 review and mix changes. The mix, particularly in casualty, impacts the loss ratio as it has a higher loss pick. Adjustments were made in Q4 for current accident year loss ratios across divisions.