Skyward Specialty Insurance Group (SKWD) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands specialty insurance portfolio, adding over $1.5 billion in managed premium, new niches, and advanced technology capabilities, while maintaining a focus on the U.S. market and top-quartile underwriting returns.

• Apollo’s capital-light, fee-based model and leadership in innovation and technology complement the acquirer’s strategy and culture, accelerating innovation in digital and sharing economy sectors.

• Access to Lloyd’s market and global license network enables entry into hard-to-access specialty classes and supports international client needs.

• Strong cultural and strategic alignment, with both organizations led by experienced management teams, supports smooth integration and future growth.

• Facilitates a shift to a more capital-light model via fee-based earnings and third-party capital support.

Financial terms and conditions

• Purchase price is $555 million, funded approximately two-thirds in cash ($371 million) and one-third in stock ($184 million), with equity valued at $50.00 per share and 3,679,332 shares to be issued; cash portion financed through committed debt.

• Apollo’s financial investors receive cash, while strategic shareholders and employees roll substantial equity for long-term alignment.

• Valuation is less than 9x 2025 estimated EBITDA, with expected double-digit operating EPS accretion in the first full year post-closing.

• Apollo’s shareholder equity at closing estimated at $180–$200 million.

Synergies and expected cost savings

• Double-digit adjusted operating EPS accretion expected in the first full year post-closing.

• Value creation levers include U.S. platform expansion, Lloyd’s license network utilization, reinsurance synergies, and capital-light growth.

• Adds over $1.5 billion of managed premium, reinforcing market position.

• Opportunities for additional financial benefits anticipated in 2027 and beyond.