Bowhead premiums grow 11% as digital businesses expand

Bowhead Specialty  reported third-quarter gross written premiums of $256.4 million, up 10.8% from a year earlier. Net income totaled $12.9 million, while adjusted net income rose 16% to $18.4 million.

Baleen Specialty led premium growth, increasing 155.4% to $15.8 million. Casualty premiums rose 6% to $153.4 million, professional liability increased 8.2% to $49.5 million, and healthcare liability grew 8.1% to $37.7 million.

CEO Stephen Sills said digital businesses accounted for almost 9% of total gross written premiums. Across the company, premium growth reflected a larger renewal book and expansion across all divisions.

“Our third quarter results reflect the continued execution of our strategy, with gross written premiums increasing almost 11%, adjusted net income growing 16%, and adjusted return on equity reaching 15.9% for the quarter. Our digital businesses grew to almost 9% of total gross written premiums, demonstrating that our complementary craft and digital underwriting models are working as intended and broadening our opportunities for disciplined premium growth across market cycles. As we move forward with our pending transaction with American Family, we remain focused on delivering for our brokers and insureds. I am incredibly proud of the Bowhead team and want to thank our employees and business partners for their continued commitment and partnership.” – Stephen Sills.

The combined ratio was 95.9%, compared with 95.4% a year earlier. The loss ratio increased to 67.3% from 65.9%, partly offset by a lower expense ratio of 28.6%, down from 29.5%.

Net investment income increased 36.7% to $20.6 million, driven by a larger investment portfolio.

Bowhead also referenced its pending transaction with American Family but provided no new transaction details in its results commentary.