Bowhead Specialty (BOW) Q4 2024 earnings summary

Executive summary

• Achieved transformational milestones in 2024, including an upsized IPO and a secondary public offering, positioning for cross-cycle profitability.

• Focused on profitable, growing lines in the $83B U.S. E&S market, with a 46% GWP CAGR from 2021–2024.

• Delivered strong financial and operational results, with premium growth, new product launches, and disciplined underwriting.

• Underwriting-first culture, led by an experienced team, delivers differentiated profitability across market cycles.

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

Financial highlights

• Gross written premiums increased 26% to $185 million for Q4; full-year premiums grew 37% to $696 million, exceeding the 20% target.

• Net income for 2024 was $38.2M; adjusted net income was $42.7M.

• Adjusted net income for Q4 was $14.1 million, up 143% year-over-year, or $0.42 per diluted share.

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

• Book value per share rose to $11.03 at year-end; total equity at year-end was $370 million.

Outlook and guidance

• Expect to profitably grow business by around 20% in 2025, led by casualty and Baleen divisions.

• Project combined ratio in the mid-90s and return on equity in the mid-teens for 2025.

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

• Expense ratio expected to remain in the low 30% range, with some first-half elevation due to payroll taxes and RSU vesting.

• Loss ratio anticipated to stay in the mid-60s, with gradual changes as older years roll off.