Item 9A. Controls and Procedures
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and our principal financial officer, evaluated, as of the end of the period covered by this Annual Report on Form 10-K, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on that evaluation, our principal executive officer and principal financial officer have concluded that as of December 31, 2024, the disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting, described below.
Notwithstanding the identified material weakness described below, management does not believe that the material weakness had an adverse effect on our reported operating results or financial condition and management has determined that the financial statements and other information included in this report and other periodic filings present fairly in all material respects our financial condition, results of operations, and cash flows at and for the periods presented in accordance with U.S. GAAP.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States of America. Our internal control over financial reporting includes those policies and procedures that:
(i) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
(ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
(iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
Management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2024, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013). As a result of this assessment, management concluded that, as of December 31, 2024, its internal control over financial reporting was not effective because management identified a material weakness in internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Our management concluded that a material weakness existed as of December 31, 2024 related to the ineffective implementation of information technology general controls (“ITGCs”) in the area of user access for systems that support the Company’s financial reporting processes. Further, the Company’s related process-level IT dependent manual and automated controls that rely upon the affected ITGCs, or information coming from IT systems with affected ITGCs, were also deemed ineffective.
This material weakness did not result in any material misstatements to the financial statements in this Form 10-K, and we have not identified any changes required to our previously issued financial statements.
We have completed substantive procedures for the year ended December 31, 2024. Based on these procedures, management believes that our consolidated financial statements included in this Form 10-K have been prepared in accordance with U.S. GAAP. Our CEO and CFO have certified that, based on their knowledge, the financial statements, and other financial information included in this Form 10-K, fairly present in all material respects our financial condition, results of operations and cash flows as of, and for, the periods presented in this Form 10-K. Ernst & Young LLP has issued an unqualified opinion on our financial statements, which is included in Item 8 of this Form 10-K. In addition, Ernst & Young LLP has issued a report on our internal control over financial reporting as of December 31, 2024, and its report appears in Item 8.
98
Table of Contents
Planned Material Weakness Remediation Activities
Management is implementing measures designed to remediate the control deficiencies contributing to the material weakness described above. The remediation actions for the material weakness related to the design of ITGCs in the area of user access over certain information technology include: (1) enhancing our IT compliance oversight function and expanding our team members with experience designing and implementing ITGCs; (2) developing and implementing a training program addressing ITGCs and policies, including educating control owners about the principles and requirements of each control; (3) developing and maintaining documentation underlying ITGCs to promote knowledge transfer upon IT personnel and function changes; (4) implementing an IT management review and testing plan to monitor ITGCs; and (5) enhanced quarterly reporting on the remediation measures to the Audit Committee of our board of directors.
Changes in Internal Control over Financial Reporting
Except for changes relating to the material weakness identified above, there has been no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the year ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Item 9B. Other Information
During the quarter ended December 31, 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted , terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections - Not applicable.
PART III
Item 10. Directors, Executive Officers and Corporate Governance
The information required by this Item 10 of Form 10-K will be included in our 2025 Proxy Statement and is incorporated herein by reference.
Item 11. Executive Compensation
The information required by this Item 11 of Form 10-K will be included in our 2025 Proxy Statement and is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters
The information required by this Item 12 of Form 10-K will be included in our 2025 Proxy Statement and is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this Item 13 of Form 10-K will be included in our 2025 Proxy Statement and is incorporated herein by reference.
Item 14. Principal Accounting Fees and Services
Our independent registered public accounting firm is Ernst & Young LLP , Houston, Texas . Auditor Firm ID: 42
The information required by this Item 14 of Form 10-K will be included in our 2025 Proxy Statement and is incorporated herein by reference.
99
Table of Contents
PART IV
Item 15. Exhibits, Financial Statement Schedules.
(a)(1) LISTING OF FINANCIAL STATEMENTS
The following consolidated financials statements of the Company are filed as part of this Form 10-K and are included in Item 8:
Reports of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of December 31, 2024 and 2023
Consolidated Statements of Operations and Comprehensive Income (loss) for the three years in the periods ended December 31, 2024, 2023 and 2022
Consolidated Statements of Stockholders’ Equity for the three years in the period ended December 31, 2024, 2023 and 2022
Consolidated Statements of Cash Flows for the three years in the period ended December 31, 2024, 2023 and 2022
(a)(2)
Schedule Number Schedule Description Page
I. Summary of Investments — Other Than in Related Parties at December 31, 2024
103
II. Financial Information of Registrant (Parent Company) for the years ended December 31, 2024, 2023 and 2022
104
IV. Supplementary Reinsurance Information for the years ended December 31, 2024, 2023, and 2022
108
V. Valuation and Qualifying Accounts for the years ended December 31, 2024, 2023, and 2022
109
VI. Supplementary Information Concerning Property — Casualty Insurance Operations for the years ended December 31, 2024, 2023, and 2022
110
(a)(3) LISTING OF EXHIBITS
Exhibit
Number Exhibit Description
3.1 Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on January 18, 2023).
3.2 Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed with the Commission on January 18, 2023).
4.1 Amended and Restated Stockholders’ Agreement, dated March 12, 2014, by and among the Company and the stockholders listed therein (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
4.2 Description of Capital Stock (incorporated by reference to Exhibit 4.2 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 28, 2023).
10.1+ Share Purchase and Award Agreement and form of agreements thereunder in use before 2016 (incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
10.2+ 2016 Equity Incentive Program and form of award agreements thereunder (incorporated by reference to Exhibit 10.2 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
10.3+ 2020 Long Term Incentive Plan and form of award agreements thereunder (incorporated by reference to Exhibit 10.3 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
10.4+ Skyward Specialty Insurance Group, Inc. 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
10.5+ Skyward Specialty Insurance Group, Inc. 2022 Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.5 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
10.6+ Form of Restricted Stock Units Agreement and form of notice under the Company's 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 99.6 to the Company's Registration Statement on Form S-8, filed with the SEC on January 12, 2023).
100
Table of Contents
Exhibit
Number Exhibit Description
10.7+ Form of Restricted Stock Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 99.7 to the Company's Registration Statement on Form S-8, filed with the SEC on January 12, 2023).
10.8+ Form of Nonstatutory Stock Option Agreement and form of notice under the Company's 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 99.8 to the Company's Registration Statement on Form S-8, filed with the SEC on January 12, 2023).
10.9+ Form of Incentive Stock Option Agreement and form of notice under the Company's 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 99.9 to the Company's Registration Statement on Form S-8, filed with the SEC on January 12, 2023).
10.10+ Form of Performance-Based Restricted Stock Units Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.10 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 28, 2023).
10.11+ Performance-Based Restricted Stock Units Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.11 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 28, 2023).
10.12+ Performance Unit Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.12 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 28, 2023).
10.13+ Amended Form of Performance Share (GBVPS) Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.14+ Amended Form of Performance Share (Executives) Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.15+ Amended Form of Performance Share (Others) Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.16+ Amended Form of Performance Cash Units Agreement under the Company’s Long-Term Incentive Plan. (incorporated by reference to Exhibit 10.16 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.17+ Amended Form of the Restricted Stock Unit (Executives) Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.18+ Amended Form of Restricted Stock Unit (Others) Agreement under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.19+ Amended Form of Long-Term Performance Cash Plan and Award Letter under the Company’s 2022 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.19 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.20+ Form of Indemnification Agreement (incorporated by reference to Exhibit 10.6 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
10.21+ Employment Agreement, dated May 22, 2020, by and between the Registrant and Andrew Robinson, with Amendment No. 1 dated January 1, 2022 (incorporated by reference to Exhibit 10.7 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
10.22+* Form of Non-Employee Director Deferred Restricted Stock Unit Agreement and Form of Notice Under the Company’s 2022 Long-Term Incentive Plan.
10.23 Commutation and Release Agreement by and among R&Q Re (Bermuda) Ltd., Skyward Re, Houston Specialty Insurance Company, Imperium Insurance Company, and Great Midwest Insurance Company, dated January 31, 2025 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on February 5, 2025).
10.24 Investment Management Agreement by and among Arena Investors, LP, Houston Specialty Insurance Company, Imperium Insurance Company, and Great Midwest Insurance Company, dated November 6, 2015, with a Supplemental Acknowledgement dated January 13, 2016, a Supplemental Acknowledgement dated May 17, 2021, Supplemental Acknowledgement B dated May 17, 2021, an Amendment Agreement effective March 15, 2022, and a Supplemental Acknowledgement dated March 23, 2022 (incorporated by reference to Exhibit 10.15 to the Company's Registration Statement on Form S-1, filed with the SEC on November 14, 2022).
101
Table of Contents
Exhibit
Number Exhibit Description
10.25 Second Amendment Agreement effective as of December 8, 2023, to that certain Investment Management Agreement dated November 6, 2015, by and among Arena Investors, LP, Houston Specialty Insurance Company, Imperium Insurance Company, and Great Midwest Insurance Company (incorporated by reference to Exhibit 10.26 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.26 Credit Agreement, dated March 29, 2023, by and among Skyward Specialty Insurance Group, Inc., the lenders from time to time party thereto and Truist Bank, as administrative agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on April 3, 2023).
10.27 First Amendment dated as of February 26, 2024, to that certain Credit Agreement, dated March 29, 2023, by and among Skyward Specialty Inc., the lenders from time to time party thereto and Truist Bank, as administrative agent (incorporated by reference to Exhibit 10.28 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
10.28 Guaranty Agreement, dated March 29, 2023, by and among Skyward Service Company, Skyward Underwriters Agency, Inc., the loan parties identified on the signature pages thereto and Truist Bank. (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on April 3, 2023).
10.29 Advances and Security Agreement, dated August 1, 2024, by and between Houston Specialty Insurance Company, a wholly owned insurance company subsidiary of the Company and the Federal Home Loan Bank of Dallas (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on September 6, 2024).
10.30+* Form of Severance Agreement between the Company and executive officers (other than the CEO)
10.31+* Amendment No. 2 to Employment Agreement between the Registrant and Andrew Robinson dated March 1, 2025 .
19* Skyward Specialty Insurance Securities Trading Policy
21.1* List of Subsidiaries of the Company
23.1 Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.
31.1 Certification of Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 Certification of Principal Financial and Accounting Officer pursuant to Rule 13a 14(a) or Rule 15d 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
97 Policy for Recovery of Erroneously Awarded Incentive Compensation (“Clawback Policy”) (incorporated by reference to Exhibit 97 to the Company’s Annual Report on Form 10-K, filed with the SEC on April 1, 2024).
101.INS Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104 Cover Page Interactive Date File (embedded within the Inline XBRL document)
____________________
* Filed herewith.
+ Management contract or compensatory plan or arrangement.
102
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE I — SUMMARY OF INVESTMENTS — OTHER THAN IN RELATED PARTIES
($ in thousands) Cost Fair Value (if applicable) Amount on
Balance Sheet
December 31, 2024
Fixed maturity securities, available for sale:
U.S. government securities $ 26,577 $ 26,486 $ 26,486
Corporate securities and miscellaneous 433,298 425,628 425,628
Municipal securities 89,966 84,716 84,716
Residential mortgage-backed securities 408,585 393,833 393,833
Commercial mortgage-backed securities 70,262 69,364 69,364
Other asset-backed securities 291,578 292,191 292,191
Total fixed maturity securities, available for sale 1,320,266 1,292,218 1,292,218
Fixed maturity securities, held to maturity:
Other asset-backed securities 39,396 38,717 39,153
Total fixed maturity securities, held to maturity 39,396 38,717 39,153
Equity securities:
Common stocks 48,530 64,251 64,251
Preferred stocks 1,138 1,164 1,164
Mutual funds 33,643 40,839 40,839
Total equity securities 83,311 106,254 106,254
Mortgage loans 26,485 26,490 26,490
Other long-term investments 33,231 33,182 33,182
Short-term investments 274,926 274,929 274,929
Total $ 1,777,615 $ 1,771,790 $ 1,772,226
103
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE II — FINANCIAL INFORMATION OF REGISTRANT
BALANCE SHEETS (PARENT COMPANY)
December 31,
($ in thousands) 2024 2023
Assets
Investments:
Investment in subsidiaries $ 853,670 $ 743,025
Short-term investments, at fair value 14,000 10,593
Total investments 867,670 753,618
Cash and cash equivalents 2,943 3,024
Deferred income taxes 30,486 5,899
Goodwill and intangible assets, net 12,641 12,641
Other assets 2,905 15,908
Total assets $ 916,645 $ 791,090
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable and accrued liabilities $ 3,110 $ 1,369
Notes payable 100,000 50,000
Subordinated debt, net of debt issuance costs 19,536 78,690
Total liabilities 122,646 130,059
Stockholders’ Equity:
Stockholders’ equity 793,999 661,031
Total liabilities and stockholders’ equity $ 916,645 $ 791,090
See accompanying notes to financial statements.
104
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE II — STATEMENTS OF OPERATIONS
(PARENT COMPANY)
Years Ended December 31,
($ in thousands) 2024 2023 2022
Revenues:
Net investment income $ 3,212 $ 3,822 $ 2,567
Net investment (losses) gains 963 ( 963 ) ( 6 )
Other loss ( 2 ) ( 27 ) —
Total revenues 4,173 2,832 2,561
Expenses
Operating expenses 10,632 — —
Interest expense 8,140 9,815 6,407
Amortization expense 920 313 81
Other expenses 9,646 451 —
Total expenses 29,338 10,579 6,488
Loss before income tax expense ( 25,165 ) ( 7,747 ) ( 3,927 )
Income tax expense 33,578 6,808 ( 1,209 )
Loss before equity in earnings of subsidiaries ( 58,743 ) ( 14,555 ) ( 2,718 )
Equity in undistributed earnings of subsidiaries 177,571 100,539 42,114
Net income $ 118,828 $ 85,984 $ 39,396
See accompanying notes to financial statements.
105
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE II — STATEMENTS OF CASH FLOWS (PARENT COMPANY)
Years Ended December 31,
($ in thousands) 2024 2023 2022
Cash flows from operating activities:
Net income $ 118,828 $ 85,984 $ 39,396
Adjustments to reconcile net income to net cash used in operating activities ( 121,563 ) ( 95,947 ) ( 42,672 )
Net cash provided by operating activities ( 2,735 ) ( 9,963 ) ( 3,276 )
Cash flows from investing activities:
Capital contributions to subsidiaries — ( 122,800 ) —
Distributions from investment in subsidiaries 8,500 6,500 4,000
Change in short-term investments ( 3,407 ) ( 10,569 ) —
Net cash (used in) provided by investing activities 5,093 ( 126,869 ) 4,000
Cash flows from financing activities:
Repayment of stock notes receivable 5,561 1,350 2,180
Proceeds from long term borrowings 107,000 50,000 —
Payments on long term borrowings and trust preferred ( 115,000 ) ( 50,000 ) —
Proceeds from equity offerings — 128,887 —
Proceeds from employee stock purchase plan — 710 —
Net cash provided by financing activities ( 2,439 ) 130,947 2,180
Net increase (decrease) in cash and cash equivalents and restricted cash ( 81 ) ( 5,885 ) 2,904
Cash and cash equivalents and restricted cash at beginning of year 3,024 8,909 6,005
Cash and cash equivalents and restricted cash at end of year $ 2,943 $ 3,024 $ 8,909
Supplemental disclosure of cash flow information:
Cash paid for interest $ 8,573 $ 10,667 $ 5,761
Cash paid for federal income taxes 36,980 15,800 —
See accompanying notes to financial statements.
106
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE II — FINANCIAL INFORMATION OF REGISTRANT
CONTINUED
Notes to Financial Statements
On September 30, 2024, Skyward Specialty entered into an Intercompany Loan Promissory Note (“the Promissory Note”) with Houston Specialty Insurance Company (“HSIC”). Under the terms of the Promissory Note, Skyward Specialty borrowed $ 57.0 million from HSIC. Under the terms of the Promissory Note, interest is payable monthly at a fixed annual interest rate of 4.00 %, with the principal due at the maturity date. There are no prepayment penalties and no collateral was given as security for the payment of the Promissory Note.
During the year ended December 31, 2024, Skyward Specialty provided funds for a new subsidiary, Skyward Specialty No. 1 Limited Company, a UK company authorized as a Lloyd’s corporate member to invest in Lloyd’s syndicates.
Financial Instruments Disclosed, But Not Carried, At Fair Value
Notes Payable
Included in notes payable is the Promissory Note described above between Skyward Specialty and HSIC. Skyward Specialty determined its fair value using the income approach utilizing inputs that are observable. The Promissory Note has been placed in Level 2 of the fair value hierarchy. As of December 31, 2024, the carrying value and fair value of the Promissory Note were $ 57.0 million and $ 56.3 million, respectively.
107
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE IV — REINSURANCE
Years Ended December 31,
2024 2023 2022
($ in thousands) Accident &
Health Property &
Casualty Accident &
Health Property &
Casualty Accident &
Health Property &
Casualty
Gross amount $ 173,073 $ 1,285,564 $ 151,702 $ 1,089,478 $ 130,377 $ 881,862
Ceded to other companies ( 86,503 ) ( 533,151 ) ( 79,091 ) ( 470,047 ) ( 70,291 ) ( 398,118 )
Assumed from other companies — 284,595 — 218,649 431 131,282
Net amount $ 86,570 $ 1,037,008 $ 72,611 $ 838,080 $ 60,517 $ 615,026
Percentage of amount assumed to net — % 27.4 % — % 26.1 % 0.7 % 21.3 %
108
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE V — VALUATION AND QUALIFYING ACCOUNTS
($ in thousands) Valuation
Allowance
For Deferred
Tax Assets Allowance for
Uncollectible
Reinsurance
Recoverable Allowance for
Uncollectible
Premiums
Receivable
Balance at January 1, 2022 $ 586 $ — $ 261
Charged to costs and expenses — — 584
Amounts written off — — ( 216 )
Balance at December 31, 2022 $ 586 $ — $ 629
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023 — 2,295 —
Charged to costs and expenses — — 748
Amounts written off — — ( 513 )
Recoveries of amounts previously written off — — 100
Balance at December 31, 2023 586 2,295 964
Charged to costs and expenses — 13,585 3,235
Amounts written off — ( 13,585 ) ( 1,895 )
Recoveries of amounts previously written off — — 128
Balance at December 31, 2024 $ 586 $ 2,295 $ 2,432
109
Table of Contents
SKYWARD SPECIALTY INSURANCE GROUP, INC. AND SUBSIDIARIES
SCHEDULE VI — SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY
INSURANCE OPERATIONS
As of and Years Ended December 31,
($ in thousands) 2024 2023 2022
Deferred policy acquisition costs $ 113,183 $ 91,955 $ 68,938
Reserve for losses and loss adjustment expenses 1,782,383 1,314,501 1,141,757
Unearned premiums 637,185 552,532 442,509
Net earned premium (1)
1,056,722 829,143 615,994
Net investment income 80,686 40,322 36,931
Losses and loss adjustment expenses (current year) (1)
657,783 516,664 393,939
Losses and loss adjustment expenses (prior years) (1)(2)
25,728 — 14,385
Amortization of policy acquisition costs (1)
149,975 108,514 65,695
Paid claims and claim adjustment expenses (1)
430,991 363,418 300,764
Net premiums written (1)
1,123,578 910,691 675,543
Ceded unearned premium 203,901 186,121 157,645
Deferred ceding commission 40,434 37,057 29,849
(1) Amount is presented net of reinsurance
(2) Amount does not include gain on retroactive reinsurance which is included in losses and loss adjustment expenses presented on the Consolidated Statements of Operations
110
Table of Contents
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Skyward Specialty Insurance Group, Inc.
Dated: March 3, 2025
/s/ Andrew Robinson
Andrew Robinson
Chairman and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
Signature Title Date
/s/ Andrew Robinson Chairman and Chief Executive Officer March 3, 2025
Andrew Robinson (Principal Executive Officer)
/s/ Mark Haushill Chief Financial Officer March 3, 2025
Mark Haushill (Principal Financial and Accounting Officer)
/s/ Gena Ashe Director March 3, 2025
Gena Ashe
/s/ Robert Creager Director March 3, 2025
Robert Creager
/s/ Marcia Dall Director March 3, 2025
Marcia Dall
/s/ James Hays Director March 3, 2025
James Hays
/s/ Anthony J. Kuczinski Director March 3, 2025
Anthony J. Kuczinski
/s/ Michael Morrissey Director March 3, 2025
Michael Morrissey
/s/ Katharine Terry Director March 3, 2025
Katharine Terry
111