Bowhead Specialty (BOW) Q1 2026 earnings summary

Executive summary

• Gross written premiums rose 24% year-over-year to $217 million for Q1 2026, led by strong growth in Casualty and Healthcare Liability divisions and significant gains in digital underwriting via Baleen and Express platforms.

• Net income reached $16 million, or $0.48 per diluted share, up 40.1% year-over-year, with adjusted ROAE of 14.1%.

• Digital underwriting (Baleen and Express) contributed nearly 7% of total GWP, with Baleen premiums tripling year-over-year and Express generating $3 million in premium.

• The company operates as a single segment, focusing on specialty commercial property and casualty insurance in the U.S., with a clean balance sheet and no reserves from accident years prior to 2020.

• Led by an experienced management team, supported by a strategic partnership with AmFam, and robust growth demonstrated by a 48% GWP CAGR from Q1'21 to Q1'26.

Financial highlights

• Gross written premiums increased 24% year-over-year to $217 million; net earned premiums grew 24.6% to $136.8 million.

• Adjusted net income was $16 million, up 40% year-over-year; diluted adjusted EPS was $0.48.

• Loss ratio was 66.9%, flat year-over-year; expense ratio improved to 28.4% from 30.4%.

• Combined ratio improved to 95.3% from 97.3% a year ago.

• Net investment income rose 43.5% year-over-year to $18 million, with a portfolio yield of 4.6% and AA- average credit rating.

Outlook and guidance

• Management expects continued profitable growth, leveraging both craft and digital underwriting models, with digital platforms expected to increase their share of total GWP.

• Expecting around 20% GWP growth for the year, supported by expanded reinsurance agreements.

• Expense ratio expected to remain below 30% for the remainder of the year.

• Commitment to long-term value creation and strong returns, with a strategy to expand into new lines and markets as opportunities arise.

• No material impact anticipated from recent amendments to the AmFam Quota Share Agreement.