Bowhead Specialty (BOW) Q4 2024 earnings summary

Executive summary

• Achieved a transformational year in 2024 with an upsized IPO in May and a secondary offering in October, positioning for cross-cycle profitability and equity growth.

• Gross written premiums grew 37% year-over-year to $696 million, surpassing the 20% growth target, with 76% written on an E&S basis and a 46% CAGR from 2021–2024.

• Maintained an underwriting-first culture, led by an experienced team, focusing on profitable growth, selectivity, and avoiding property, natural catastrophe, and commercial auto risks.

• Launched Baleen Specialty and new environmental liability products, expanding technology-driven underwriting and targeting small, hard-to-place E&S risks.

• Clean balance sheet with no reserves from accident years prior to 2020 and no debt outstanding.

Financial highlights

• 2024 gross written premiums reached $696 million, up from $508 million in 2023.

• Adjusted net income for Q4 was $14.1 million ($0.42 per diluted share), up 143% year-over-year; full-year adjusted net income was $42.7 million ($1.44 per diluted share).

• Combined ratio for 2024 was 95.8%, with a 64.4% loss ratio and 31.4% expense ratio.

• Net investment income for Q4 rose 80% to $12 million; full-year investment income more than doubled to $40 million, with a 4.6% book yield.

• Diluted book value per share increased 38% to $11.03; total equity at year-end was $370 million.

Outlook and guidance

• Targeting around 20% premium growth in 2025, led by casualty and Baleen divisions, with continued focus on underwriting discipline and technology expansion.

• Expecting loss ratio to remain in the mid-60s and expense ratio in the low 30% range for 2025.

• Combined ratio projected to be in the mid-90s, with return on equity in the mid-teens.

• Growth levers include rate increases, expanded account/geographic appetite, new distribution, and product development.

• Management aims to build on 2024 momentum for profitable growth and cross-cycle profitability.