Bowhead Specialty (BOW) Q4 2025 earnings summary

Executive summary

• Achieved disciplined premium growth of 24% for 2025, reaching $862.8M, with all divisions contributing and casualty leading the increase.

• Adjusted net income grew over 30% year-over-year to $55.6M, with adjusted ROE of 13.6% and diluted adjusted EPS of $1.65.

• Expense ratio improved to 29.8% for the year, below guidance, driven by technology initiatives and business scaling.

• Digital underwriting (Baleen and Express) expanded, generating over $21M in premiums in its first full year and supporting efficiency and future growth.

• Focus on profitable, growing lines in the E&S market, supported by a strong underwriting culture and strategic partnership with AmFam.

Financial highlights

• Gross written premiums (GWP) rose 24% for the year to $862.8M, with Q4 GWP up 21% to $224.1M.

• Adjusted net income for 2025 was $55.6M; net income was $53.8M.

• Combined ratio for 2025 was 96.5% (loss ratio 66.7%, expense ratio 29.8%).

• Pre-tax net investment income increased 44% year-over-year to $57.8M.

• Diluted book value per share rose to $13.70 at year-end.

Outlook and guidance

• Projected GWP growth of around 20% in 2026, led by casualty and digital underwriting.

• 2026 loss ratio projected in the mid to high 60s, expense ratio below 30%, and combined ratio in the mid to high 90s.

• Return on equity expected in the mid-teens.

• Digital expansion expected to drive sustainable, profitable growth across market cycles.

• Investment portfolio duration to extend from three to four years, maintaining conservative risk profile.