Thu, Feb 27, 10:19 PM (58 days ago)
**Bowhead Specialty Holdings Inc. (BOW) Summary** Bowhead Specialty Holdings Inc. reported a significant increase in financial performance for the year ending December 31, 2024, with gross written premiums rising 37% to $695.7 million, driven by growth across all divisions. Net income grew 52.7% to $38.2 million, reflecting strong underwriting results. The loss ratio increased slightly to 64.4%, influenced by a higher proportion of business from the Casualty division, which has historically higher loss ratios. The expense ratio improved to 31.4%, showcasing effective cost management. Strategically, Bowhead focuses on specialized property and casualty insurance, leveraging a partnership with American Family Mutual Insurance Company (AmFam) to enhance market reach. The company maintains a robust balance sheet with total equity of $370.4 million as of December 31, 2024. It has no outstanding debt and a revolving credit facility of $75 million, which it has yet to utilize. Key risks include reliance on brokers, potential regulatory changes, and market competition. The company’s future outlook remains positive, supported by an experienced leadership team and a commitment to technology-driven underwriting solutions. Overall, Bowhead is well-positioned for continued growth in the specialty insurance market.