Skyward/2025/FY/Annual report: Difference between revisions

| period = FY

| period_label = FY25

| document_name = Skyward Specialty Insurance Group 2025 Form 10-K

| publication_date = 2026-03-02

''This article presents Skyward's FY 2025 annual report — the narrative Items (each summarized into a factsheet), primary financial statements, and note schedules from its SEC Form 10-K.''

 

 

<div style="overflow-x:auto">

</div>

 

 

<div style="overflow-x:auto">

== Business ==

 

 

* Skyward Specialty was formed as a Delaware corporation on January 3, 2006, as an insurance holding company ^{p. 1}.

* All insurance company subsidiaries are group rated and have financial strength ratings of "A" (Excellent) from A.M. Best Company, with a stable outlook ^{p. 1}.

 

 

* On September 2, 2025, the company entered into two share purchase agreements (the "Apollo Majority SPAs") with institutional and management shareholders of Apollo Group Holdings Limited ("Apollo") (the "Majority Sellers") ^{p. 2}.

* David Ibeson will continue as CEO of Apollo, leading Apollo's growth as a subsidiary of Skyward Specialty, along with Apollo’s management team ^{p. 2}.

 

 

* The company operates with one reportable segment, offering a broad range of insurance coverages across various market niches ^{p. 3}.

* The company strives for excellence in risk selection, pricing, and claims outcomes, amplified by advanced technology and analytics ^{p. 3}.

 

 

* The company focuses on profitable niches in the market that require technical underwriting and claims management, which act as barriers to entry ^{p. 4}.

* Executive leadership has additional long-term incentive targets directly tied to growth in book value per share ^{p. 4}.

 

 

* The company's "Rule Our Niche" strategy aims to generate best-in-class underwriting profitability within its niches and create superior long-term shareholder value through growth in book value per share ^{p. 5}.

* Loss reserves represent the company's best estimate of ultimate losses ^{p. 5}.

 

 

* The company's marketing and distribution approach mirrors its underwriting strategy and is central to its "Rule Our Niche" strategy ^{p. 6}.

* This distribution approach enables effective and efficient access to targeted business based on market niche needs and dynamics ^{p. 6}.

 

 

* The company's underwriting approach is central to its "Rule Our Niche" strategy and market success ^{p. 7}.

* Underwriting controls and procedures are regularly reviewed to ensure underwriters profitably underwrite in each market served ^{p. 7}.

 

 

* Skyward's claims department operates under six guiding principles: prompt and comprehensive investigations using advanced analytics and technology; quality claims handling and customer engagement; timely establishment of reserves based on best estimates; effective pursuit of contribution and subrogation; detection and prevention of fraud; and disciplined litigation management for superior legal defense and cost monitoring ^{p. 8}.

* Managers and adjusters collaborate closely with underwriting partners to inform them of legal trends and emerging claims issues, educating underwriters on loss experience for risk selection ^{p. 8}.

 

 

* Technology is central to Skyward Specialty Insurance Group's operations and decision-making, aiming for long-term competitive advantages ^{p. 9}.

* The company constantly reviews its security breach posture and regularly implements updated processes, best practices, and tools ^{p. 9}.

 

 

* The company strategically purchases reinsurance from third parties to protect capital from severity events (large single event losses or catastrophes) and reduce earnings volatility ^{p. 10}.

* Allowances for uncollectible reinsurance are established due to the risk of reinsurer default ^{p. 10}.

* The ''allowance for uncollectible reinsurance'' was $2.3 million at December 31, 2025, and 2024 ^{p. 10}.

 

<div style="overflow-x:auto">

{| class="wikitable"

! style="text-align:left" | Line of Business

! style="text-align:left" | Maximum Company Retention

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" |

| class="col-m" style="text-align:right" | A

|-

| class="col-m" style="text-align:right" | —

|-

| class="col-m" style="text-align:right" | —

|-

|}

</div>

 

 

* ''ERM'' is embedded in nearly every aspect of the company and guides day-to-day activities ^{p. 11}.

* ''ERM'' is a central component of the strategy to achieve market-leading risk-adjusted returns for shareholders and reinforce a culture of accountability, transparency, and sound judgment ^{p. 11}.

 

 

* Reserves are maintained for specific claims incurred and reported, IBNR reserves, and uncollectible reinsurance ^{p. 12}.

* Additional information on loss reserves is available in Item 7 of Form 10-K, "Management’s Discussion and Analysis of Financial Condition and Results of Operations - “Results of Operations - Losses and LAE” and “Critical Accounting Policies” ^{p. 12}.

 

 

* The company aims to maintain a balanced investment portfolio primarily consisting of investments that provide predictable and stable returns ^{p. 13}.

* For further discussion on investments, including market risks, refer to Item 7 of Form 10-K, "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Investments" ^{p. 13}.

 

 

* The specialty lines property & casualty insurance market comprises numerous markets and sub-markets ^{p. 14}.

* Notable competitors include Markel Corporation, W.R. Berkley Corporation, American Financial Group Inc., Tokio Marine Holdings, Inc., CNA Financial Corporation, Hiscox, Ltd., RLI Corp., Intact Finance Corporation, Kinsale Capital Group, Inc., Arch Capital Group, and AXIS Capital Holdings, Ltd. ^{p. 14}.

 

 

* Operations are conducted principally through four insurance companies: Great Midwest Insurance Company (GMIC), Houston Specialty Company (HSIC), Imperium Insurance Company (IIC), and Oklahoma Specialty Insurance Company (OSIC) ^{p. 15}.

* ''Houston Specialty Insurance Company'' has a direct relationship with Imperium Insurance Company (Texas stock insurance company) ^{p. 15}.

* ''Imperium Insurance Company'' has a direct relationship with Oklahoma Specialty Insurance Company (Oklahoma insurance corporation) ^{p. 15}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 39.9

|-

|}

</div>

[[File:Skyward-2025-FY-Annual report-skwd-20251231_g1.jpg|thumb|Our Structure]]

 

 

* ''Skyward Specialty Insurance Group, Inc.'' has an "A" (Excellent) rating with a stable outlook from A.M. Best ^{p. 16}.

* ''Ratings'' are based on factors relevant to policyholders, agents, insurance brokers, and intermediaries, and are not specifically related to securities issued by the company ^{p. 16}.

 

 

* The company is regulated by insurance regulatory authorities in the states where it conducts business ^{p. 17}.

* Notice to or prior approval from the applicable state insurance regulator is generally required for any material or extraordinary transaction ^{p. 17}.

 

 

* The company has applied for various ''trademark registrations'' in the United States at both federal and state levels ^{p. 18}.

* The company monitors its ''trademarks and service marks'' and protects them from unauthorized use as necessary ^{p. 18}.

 

 

* As of ''December 31, 2025'', the company had approximately ''611 employees'' ^{p. 19}.

* Such events could lead to a decline in the common stock price, potentially resulting in a loss of part or all of an investment ^{p. 20}.

 

 

* ''Financial condition and results of operations'' could be materially adversely affected by inaccurate assessment of underwriting risk ^{p. 21}.

* ''Integration of Apollo'' may present unforeseen challenges, including difficulties with technology systems, business processes, and risk management frameworks, potentially causing operational disruptions, increased costs, or delays in realizing anticipated strategic benefits ^{p. 21}.

 

 

 

 

* Adverse economic factors like recession, inflation, high unemployment, or lower economic activity can reduce policy sales, increase claim frequency, lead to premium defaults, or cause claim falsification, impacting growth and profitability ^{p. 23}.

* Sales could result in significant realized losses depending on general market conditions, interest rates, and credit issues with individual securities ^{p. 23}.

 

 

* Significant changes in laws and regulations could limit discretion or increase business costs ^{p. 24}.

* State insurance regulators conduct periodic examinations and require annual/other reports on financial condition and holding company issues ^{p. 24}.

* Changes in insurance industry regulation, laws, or interpretations could interfere with operations and increase compliance costs ^{p. 24}.

* New legislation, U.S. Treasury regulations, administrative interpretations, or court decisions could have adverse consequences ^{p. 24}.

* On July 4, 2025, H.R. 1, the "One Big Beautiful Bill Act" (OBBBA), was signed into law in the United States ^{p. 24}.

* Under Section 382 of the Code, an "ownership change" (greater than 50% change in equity ownership by certain stockholders over a rolling three-year period) can limit the use of pre-ownership change NOLs to offset post-ownership change income ^{p. 24}.

* State insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus ^{p. 24}.

* Dividend payments are limited to the portion of available policyholder surplus derived from net profits ^{p. 24}.

* State insurance regulators have broad powers to prevent statutory surplus reduction to inadequate levels, and there is no assurance that maximum calculated dividends would be permitted ^{p. 24}.

* Applicable insurance laws may make a change of control difficult ^{p. 24}.

* Under Texas insurance laws, acquiring control of a domestic insurer requires written approval from the state insurance commissioner ^{p. 24}.

* Texas insurance laws apply to direct and indirect acquisition of 10% or more of the voting stock of a Texas-domiciled insurer ^{p. 24}.

 

 

* ''Future capital requirements'' depend on factors such as the ability to write new business successfully and establish adequate premium rates and reserves to cover losses ^{p. 25}.

* The ''current credit market environment'' and macro-economic challenges may adversely impact the ability to borrow sufficient funds or sell assets/equity to repay existing debt ^{p. 25}.

 

 

* Loss of key personnel or inability to attract and retain qualified personnel could adversely affect the company ^{p. 26}.

* Even if successful in a dispute, litigation could be costly, time-consuming, and divert management attention ^{p. 26}.

 

 

* The company expects to incur increased costs as a public company and its management devotes substantial time to compliance initiatives ^{p. 27}.

* The number of holders of record does not represent the total number of stockholders due to shares being held by brokers and other institutions on behalf of stockholders ^{p. 31}.

 

 

* Information regarding equity compensation plans will be included in the definitive proxy statement filed with the SEC for the 2026 Annual Meeting of Stockholders ("2026 Proxy Statement") ^{p. 32}.

* Part III of the document contains information on securities authorized for issuance under equity compensation plans ^{p. 32}.

 

 

* ''Unregistered securities'' information is provided for the period covered by this Annual Report on Form 10-K ^{p. 33}.

* The payment also included the issuance of ''3,679,332 unregistered shares'' of the Company’s common stock ^{p. 33}.

 

 

* An initial investment of $100 is assumed for the graph ^{p. 34}.

* The graph is not considered "soliciting material" or "filed" for purposes of Section 18 of the Exchange Act ^{p. 34}.

* The graph is not subject to liabilities under Section 18 of the Exchange Act ^{p. 34}.

* ''Skyward Specialty Insurance Group, Inc. cumulative total return'':

** January 13, 2023: $100.00 ^{p. 34}

** December 31, 2024: Approximately $128.00 ^{p. 34}

** December 31, 2025: Approximately $129.00 ^{p. 34}

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | January 13, 2023

== Management’s Discussion and Analysis of Financial Condition and Results of Operations ==

 

 

* The company is a specialty insurance provider of commercial P&C products and solutions, primarily in the United States, on both non-admitted (E&S) and admitted bases ^{p. 35}.

* As of ''December 31, 2025'', the company recognized ''$14.0 million'' in transaction expenses related to the acquisition ^{p. 35}.

 

 

* ''Net income'' was USD 100.0m for the year ended December 31, 2025, compared to USD 100.0m for the year ended December 31, 2024 ^{p. 36}.

* ''Expense ratio'' was 30.0% for the year ended December 31, 2025, compared to 30.0% for the year ended December 31, 2024 ^{p. 36}.

* ''Combined ratio'' was 90.0% for the year ended December 31, 2025, compared to 90.0% for the year ended December 31, 2024 ^{p. 36}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! style="text-align:center" | Years Ended December 31,

|-

! style="text-align:left" | ($ in thousands)

|-

| style="text-align:left" | Gross written premiums

| style="text-align:right" | -619,654

|-

|-

|-

| style="text-align:left" | Commission and fee income

| style="text-align:right" | 311,757

|-

|-

| style="text-align:left" | Net investment income

| style="text-align:right" | 28.9%

|-

|-

| style="text-align:left" | Adjusted loss and LAE ratio (1)

| style="text-align:right" | 28.9%

|-

|-

| style="text-align:left" | Return on equity

</div>

 

 

* The provided text indicates that tables are available for reconciliation of ''adjusted operating income'' to net income for the years ended December 31, 2025 and 2024 ^{p. 37}.

* The provided text indicates that tables are available for reconciliation of ''return on tangible equity'' to return on equity for the years ended December 31, 2025 and 2024 ^{p. 37}.

* The provided text indicates that tables are available for reconciliation of ''adjusted return on tangible equity'' to return on equity for the years ended December 31, 2025 and 2024 ^{p. 37}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2024

| style="text-align:right" | -3,470

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | -167

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2024

| style="text-align:right" | -11,598

|-

|-

| style="text-align:left" | Loss ratio

| style="text-align:right" | 1.1%

|-

|-

| style="text-align:left" | Combined ratio

| style="text-align:right" | 1.1%

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 87,348

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 126,582

|-

|-

| style="text-align:left" | Adjusted return on equity

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 118,828

|-

|-

| style="text-align:left" | Return on tangible equity

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 126,582

|-

|-

| style="text-align:left" | Adjusted return on tangible equity

</div>

 

 

* ''Gross written premiums'' increased by USD 423.1m YoY compared to 2024 ^{p. 38}.

* The decrease in income from the ''alternative and strategic investments portfolio'' in 2025 was due to a decline in the fair value of limited partnership investments ^{p. 38}.

* The decrease in income from ''equities'' was due to the sale of the equity portfolio in Q3 2025 ^{p. 38}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 4.3%

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

! class="col-s" style="text-align:right" | —

|-

| style="text-align:right" | 786,949

| style="text-align:right" | 60.3%

| style="text-align:right" | 60.6%

|-

| style="text-align:right" | 15,548

| style="text-align:right" | 1.2%

| style="text-align:right" | 1.1%

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! colspan="2" style="text-align:center" | Development

| style="text-align:right" | —

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

| style="text-align:right" | 15.3%

|-

|-

| style="text-align:left" | Less: commission and fee income

| style="text-align:right" | (0.6%)

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | $ in thousands

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 2,581

|-

|-

|-

| style="text-align:left" | Net realized gains (losses)

| style="text-align:right" | -1,579

|-

|}

</div>

 

 

* ''Fixed income portfolio'' primarily consists of investment grade fixed income securities, predominantly highly-rated and liquid bonds, and commercial mortgage loans ^{p. 39}.

* ''0.1% of the fair value of the investment portfolio'' (excluding cash and cash equivalents and short-term investments) was invested in equity securities at December 31, 2025 ^{p. 39}.

* ''Equity portfolio sale'': Almost all of the equities portfolio was sold during the third quarter of 2025, retaining only preferred stocks ^{p. 39}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

| style="text-align:right" | 8.6%

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

| style="text-align:right" | 22.2%

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

| style="text-align:right" | 1.7%

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

| style="text-align:right" | 1.1%

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Estimated Fair Value

</div>

 

 

* ''Income tax expense'' for the year ended December 31, 2025, was USD 46.4m, compared to USD 33.9m for the year ended December 31, 2024 ^{p. 40}.

* For a reconciliation between actual federal income tax expense and the amount computed at the statutory rate for the years ended December 31, 2025 and 2024, refer to Note 13, “Income Taxes” in the consolidated financial statements included in Item 8 of this Form 10-K ^{p. 40}.

 

 

* The company is organized as a holding company, with operations primarily conducted by wholly-owned insurance subsidiaries GMIC, HSIC, IIC (domiciled in Texas), and OSIC (domiciled in Oklahoma) ^{p. 41}.

* Management believes there is sufficient liquidity to meet operating cash needs, obligations, and committed capital expenditures for the next 12 months ^{p. 41}.

 

 

* The most significant source of cash is from premiums received from insureds, typically at the beginning of the coverage period, net of related commission ^{p. 42}.

* ''Net cash used in investing activities'' in 2025 was primarily driven by purchases of fixed maturity securities, partially offset by sales and maturities of investment securities ^{p. 42}.

* ''Net cash used in investing activities'' in 2024 was driven by purchases of fixed maturity securities, partially offset by sales and maturities of investment securities and sales of short-term investments ^{p. 42}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | -4,232

|-

|}

</div>

 

 

* ''FHLB Loan'' was entered into on August 30, 2024, with the Federal Home Loan Bank of Dallas (FHLB) ^{p. 43}.

* ''Deferred financing costs'' are presented as a direct deduction from the carrying amount of the subordinated debt ^{p. 43}.

 

 

* In ''October 2024'', the Board of Directors approved a share repurchase program. ^{p. 44}

* As of ''December 31, 2025'', no shares had been repurchased under this plan. ^{p. 44}

 

 

* ''Reserves for losses and LAE'' represent the best estimate of the ultimate cost of settling reported and unreported claims and related expenses ^{p. 45}.

* ''Reinsurance balances recoverable'' on reserves for paid and unpaid losses and LAE totaled $1,119.9 million at December 31, 2025 ^{p. 45}.

* ''Reinsurance balances recoverable'' on reserves for paid and unpaid losses and LAE totaled $857.9 million at December 31, 2024 ^{p. 45}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="3" style="text-align:center" | Payments due by period

| style="text-align:right" | 80,242

|-

|}

</div>

 

 

* Critical accounting estimates are those important to portraying financial condition and results of operations and require significant judgment ^{p. 46}.

* A ''5% change in net IBNR'' would result in a ''$51.8 million change'' in reserves for losses and LAE ^{p. 46}.

* A ''5% change in net IBNR'' would result in a ''$40.9 million change'' in net income and stockholders’ equity ^{p. 46}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="4" style="text-align:center" | 2025

| style="text-align:right" | 69.2%

|-

|}

</div>

 

 

* In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures (Topic 740)" ^{p. 47}.

== Financial Statements ==

 

 

* ''Opinion'': The consolidated financial statements present fairly, in all material respects, the financial position of Skyward Specialty Insurance Group, Inc. and its subsidiaries as of December 31, 2023 and 2022, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles ^{p. 49}.

* ''Date'': February 28, 2024 ^{p. 49}.

 

 

* ''Internal control over financial reporting'' of Skyward Specialty Insurance Group, Inc. and subsidiaries was audited as of December 31, 2025 ^{p. 50}.

* The ''report dated March 2, 2026'' expressed an unqualified opinion on the consolidated financial statements and related notes and schedules ^{p. 50}.

 

 

* The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment included in the accompanying Management’s Report on Internal Control over Financial Reporting ^{p. 51}.

* The auditor believes their audit provides a reasonable basis for their opinion ^{p. 51}.

 

 

* ''Internal control over financial reporting'' is a process designed to provide reasonable assurance about the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles ^{p. 52}.

* ''Projections of effectiveness evaluations'' to future periods carry the risk that controls may become inadequate due to changing conditions or that compliance with policies/procedures may deteriorate ^{p. 52}.

 

 

| /s/ Ernst & Young LLP |

| March 2, 2026 |

 

 

* ''Opinion'': The consolidated financial statements present fairly, in all material respects, the financial position of Skyward Specialty Insurance Group, Inc. and its subsidiaries as of December 31, 2023 and 2022, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America ^{p. 53}.

* ''Report Date'': February 29, 2024 ^{p. 53}.

 

 

* The consolidated financial statements of Skyward Specialty Insurance Group, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, and for the three years ended December 31, 2025, have been audited ^{p. 54}.

* The report dated March 2, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting ^{p. 54}.

 

 

* The Company's management is responsible for the financial statements ^{p. 55}.

* The auditors believe their audits provide a reasonable basis for their opinion ^{p. 55}.

 

 

* The critical audit matter discussed arises from the current period audit of the financial statements ^{p. 56}.

* Communicating the critical audit matter does not provide a separate opinion on the matter or its related account/disclosure ^{p. 56}.

 

 

* ''Company’s reserves'' for unpaid losses and loss adjustment expenses (LAE) were USD 2.3bn at December 31, 2025 ^{p. 57}.

* We also reviewed the ''development of prior year reserve estimates'' ^{p. 57}.

 

 

| /s/ Ernst & Young LLP |

| March 2, 2026 |

 

 

* The accompanying notes are an integral part of the consolidated financial statements ^{p. 58}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | December 31,

! class="col-s" style="text-align:right" | —

|-

| style="text-align:right" | 1,856,303

| style="text-align:right" | 1,292,218

|-

| style="text-align:right" | 32,822

| style="text-align:right" | 39,153

| style="text-align:right" | 274,929

|-

|-

| style="text-align:left" | Cash and cash equivalents

| style="text-align:right" | 86,698

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 19,536

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

|-

| style="text-align:right" | 405

| style="text-align:right" | 401

| style="text-align:right" | 97,120

|-

|-

|}

</div>

 

 

* The accompanying notes are an integral part of the consolidated financial statements ^{p. 59}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | Years Ended December 31,

|-

! style="text-align:left" | Revenues:

|-

| style="text-align:left" | Net earned premiums

| style="text-align:right" | ( 632 )

|-

|-

| style="text-align:left" | Losses and loss adjustment expenses

| style="text-align:right" | 5,364

|-

|-

|-

| style="text-align:left" | Income tax expense

| style="text-align:right" | 24,118

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

|-

| style="text-align:left" | Unrealized gains and losses on investments:

| style="text-align:right" | ( 4,984 )

|-

|-

|-

| style="text-align:left" | Basic earnings per share

| style="text-align:right" | 2.34

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 36,031,907

|-

|}

</div>

 

 

* The accompanying notes are an integral part of the consolidated financial statements ^{p. 60}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="3" style="text-align:center" | Years Ended December 31,

|-

! style="text-align:left" | Preferred shares:

|-

| style="text-align:left" | Balance at beginning of year

| style="text-align:right" | ( 1,969,660 )

|-

|-

| style="text-align:left" | Balance at beginning of year

| style="text-align:right" | 16,305,113

|-

|-

| style="text-align:left" | Balance at beginning of year

| style="text-align:right" | 20

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 48

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

|-

| style="text-align:right" | —

| style="text-align:right" | —

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 124,496

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 1,349

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 20,532

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 85,984

|-

|-

|}

</div>

 

 

* The accompanying notes are an integral part of the consolidated financial statements ^{p. 61}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="3" style="text-align:center" | Years Ended December 31,

|-

! style="text-align:left" | Cash flows from operating activities:

|-

| style="text-align:left" | Net income

| style="text-align:right" | ( 5,047 )

|-

|-

| style="text-align:left" | Purchase of fixed maturity securities, available-for-sale

| style="text-align:right" | 11,913

|-

|-

| style="text-align:left" | Employee share purchases

| style="text-align:right" | 129,597

|-

|-

|-

| style="text-align:left" | Cash and cash equivalents and restricted cash at beginning of period (1)

| style="text-align:right" | 125,011

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

</div>

 

 

* The Company has a wholly owned captive reinsurance company subsidiary, ''Skyward Re'', domiciled in the Cayman Islands ^{p. 62}.

* The Company has three non-risk bearing wholly owned subsidiaries ^{p. 62}.

* On January 1, 2026, the Company completed the acquisition of ''Apollo Group Holdings Limited'' for an aggregate consideration of approximately $555.0 million ^{p. 62}.

 

 

* The Company's consolidated financial statements are prepared according to Generally Accepted Accounting Principles in the United States of America (GAAP) ^{p. 63}.

* The Company's actual results may vary from these estimates ^{p. 63}.

 

 

* The Company consolidates an entity if it meets the definition of a variable interest entity (VIE) for which the Company is the primary beneficiary, or if the Company controls the entity through a majority of voting interest or other arrangements ^{p. 64}.

* Further details and required disclosures regarding this VIE are provided in Note 7 ^{p. 64}.

 

 

* ''Cash and cash equivalents'' include cash on hand and fixed maturity securities with original maturities of three months or less ^{p. 65}.

* The carrying value of the Company’s cash and cash equivalents approximates fair value ^{p. 65}.

 

 

* ''Restricted cash'' is cash with a legal restriction on withdrawal or use by the consolidated group ^{p. 66}.

* ''Cash held'' in a depository account for others, or restricted by a state, is recorded as restricted cash ^{p. 66}.

 

 

* ''Available for Sale fixed maturities'' are carried at fair value ^{p. 67}.

* ''Net investment gains and losses'' are recognized in net income based upon the specific identification method ^{p. 67}.

 

 

* The Company uses ''commodity derivatives'' to assume risk and manage exposures in the insurance industry ^{p. 68}.

* Further details and required disclosures regarding derivatives can be found in ''Note 8'' ^{p. 68}.

 

 

* The Company purchases prospective reinsurance for certain lines of business on a proportional, excess of loss, and facultative basis ^{p. 69}.

* ''Everest Reinsurance Co.'s'' financial strength rating from A.M. Best was A+ at December 31, 2025, and 2024 ^{p. 69}.

 

 

* ''Financial instruments'' that could lead to concentrations of credit risk include cash and cash equivalents, restricted cash, investments, and premiums receivable, excluding reinsurance recoverables ^{p. 70}.

* ''Failure by distribution sources'' to remit premiums could lead to premium write-offs and a corresponding loss of income ^{p. 70}.

 

 

* ''Policy acquisition costs'' include commissions and premium taxes that are directly related to new or renewal business production ^{p. 71}.

* Management determined that no premium deficiency existed as of December 31, 2025, and 2024 ^{p. 71}.

 

 

* ''Goodwill and intangible assets'' are recorded following a business combination ^{p. 72}.

* The Company had ''no goodwill impairment'' for the years ended December 31, 2025, and 2024 ^{p. 72}.

 

 

* ''Property and equipment'' is included in other assets on the Consolidated Balance Sheets ^{p. 73}.

* Depreciation periods range from three to seven years ^{p. 73}.

 

 

* The Company estimates reserves using individual case-basis valuations of reported claims, statistical analyses, and various actuarial procedures ^{p. 74}.

* During the loss settlement period, estimates of liability on a claim are often refined and adjusted upward or downward ^{p. 74}.

* The ultimate liability may exceed or be less than the revised estimates, and the ultimate settlement of losses and related LAE may vary significantly from the estimate in the financial statements ^{p. 74}.

* If recorded reserves are determined to be more than adequate, it would lead to a reduction in reserves ^{p. 74}.

 

 

* The Company recognizes property and casualty and surety premiums on a pro-rata basis over the policy terms ^{p. 75}.

* ''Unearned premiums'' (direct and ceded) are calculated on a pro-rata basis over the terms of the policies ^{p. 75}.

 

 

* ''SUA commission revenue'' is generated from placing insurance policies on reinsurance programs via a reinsurance broker ^{p. 76}.

* Changes in the estimate of variable consideration for SUA fee income are recognized in the month they occur ^{p. 76}.

 

 

* ''Income tax expense'' is accrued for the tax effects of transactions reported on the consolidated financial statements ^{p. 77}.

* ''Premium tax expense'' is recognized within underwriting, acquisition, and insurance expense on the Consolidated Statements of Operations ^{p. 77}.

 

 

* Fair value for each class of financial instrument is estimated based on the framework established in fair value accounting guidance ^{p. 78}.

* Further details regarding fair value disclosures are in Note 4 ^{p. 78}.

 

 

* The estimated fair value of employee stock options and similar awards is expensed ^{p. 79}.

* Compensation cost for the ESPP is recognized on a straight-line basis over the offering period ^{p. 79}.

 

 

* ''Basic earnings per share'' is calculated using the two-class method ^{p. 80}.

* When ''common share adjustments'' increase earnings per share or reduce loss per share, the effect is anti-dilutive, and diluted net earnings or net loss per share is computed excluding these common share equivalents ^{p. 80}.

 

 

* ''ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740)'' was issued by FASB in December 2023 ^{p. 81}.

* The Company is evaluating the effect of these amendments on its consolidated financial statements ^{p. 81}.

 

 

* The Company's indefinite-lived intangible assets include ''insurance licenses'' and ''trademarks'' ^{p. 82}.

* ''Amortization expense'' was approximately $1.1m for the year ended December 31, 2024 ^{p. 82}.

* ''Amortization expense'' was approximately $1.5m for the year ended December 31, 2023 ^{p. 82}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Accident and Health

| style="text-align:right" | ( 46,707 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Accident and Health

| style="text-align:right" | ( 46,707 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Agent Relationships

| style="text-align:right" | ( 1,308 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Agent Relationships

| style="text-align:right" | ( 1,087 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" |

</div>

 

 

* ''Fixed maturity securities, held-to-maturity'' at December 31, 2025, consisted entirely of asset-backed securities not due at a single maturity date ^{p. 83}.

* At December 31, 2025, ''cash and investment securities on deposit'' had carrying values of approximately $70.0 million ^{p. 83}.

* At December 31, 2024, ''cash and investment securities on deposit'' had carrying values of approximately $66.8 million ^{p. 83}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Amortized Cost

| style="text-align:right" | 513,695

|-

|-

| style="text-align:left" | Other asset-backed securities

| style="text-align:right" | 33,603

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Amortized Cost

| style="text-align:right" | 292,191

|-

|-

| style="text-align:left" | Other asset-backed securities

| style="text-align:right" | 38,717

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Amortized Cost

| style="text-align:right" | 513,695

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | Less than 12 Months

| style="text-align:right" | ( 1,353 )

|-

|-

| style="text-align:left" | Other asset-backed securities

| style="text-align:right" | ( 48 )

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | Less than 12 Months

| style="text-align:right" | ( 1,834 )

|-

|-

| style="text-align:left" | Other asset-backed securities

| style="text-align:right" | ( 436 )

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Fixed Maturity Securities, Available-For-Sale

| style="text-align:right" | ( 32 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | Fixed Maturity Securities, Held-to-Maturity

| style="text-align:right" | ( 104 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 2

|-

|-

| style="text-align:left" | Fixed maturity securities, available-for-sale

| style="text-align:right" | ( 20 )

|-

|-

| style="text-align:left" | Equity securities

| style="text-align:right" | —

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 318

|-

|-

| style="text-align:left" | Investment expenses

| style="text-align:right" | ( 5,557 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | ( 5,420 )

|-

|}

</div>

 

 

* ''Mortgage loans'' have variable interest rates and are collateralized by real property ^{p. 84}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | 2025

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | 2025

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="5" style="text-align:center" | December 31, 2025

|-

| style="text-align:right" | 513,695

|-

|-

| style="text-align:left" | Other asset-backed securities

| style="text-align:right" | 33,603

|-

|-

| style="text-align:left" | Preferred stocks

| style="text-align:right" | 1,174

|-

|-

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="5" style="text-align:center" | December 31, 2024

|-

| style="text-align:right" | 292,191

|-

|-

| style="text-align:left" | Other asset-backed securities

| style="text-align:right" | 38,717

|-

|-

| style="text-align:left" | Common stocks

| style="text-align:right" | 40,839

|-

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Fixed Maturity Securities, Available-For-Sale

| style="text-align:right" | 26,490

|-

|-

| style="text-align:left" | Issuances

| style="text-align:right" | —

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Fixed Maturity Securities, Available-For-Sale

| style="text-align:right" | 50,070

|-

|-

| style="text-align:left" | Issuances

| style="text-align:right" | —

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

| style="text-align:right" | —

|-

|-

| style="text-align:left" | Unsecured subordinated notes

| style="text-align:right" | 20,541

|-

|}

</div>

 

 

* The Company invests in ''Separately Managed Accounts'' (SMA1 and SMA2) ^{p. 85}.

* As of December 31, 2025 and 2024, ''no mortgage loans were in the process of foreclosure'' ^{p. 85}.

* As of December 31, 2025 and 2024, ''no mortgage loans were not producing income'' for the previous 12 months ^{p. 85}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

|-

| style="text-align:left" | —

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

|-

| style="text-align:left" | —

|}

</div>

 

 

* The difference between an investment's cost and its proportionate share of underlying equity in net assets is allocated to the equity method investment's assets and liabilities ^{p. 86}.

* The Company amortizes this difference for RISCOM over a 15-year useful life ^{p. 86}.

* As of December 31, 2025 and 2024, the Company held indirect investments in collateralized loans and loan collateral through SMA1 and SMA2 ^{p. 86}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! colspan="2" style="text-align:center" | 2025

|-

| style="text-align:left" | —

| style="text-align:right" | —

| style="text-align:right" | —

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

|-

| style="text-align:left" | —

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

|-

| style="text-align:left" | —

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 1,258

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 605

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 12,973

|-

|}

</div>

 

 

* Skyward consolidates ''Separate Account HSIC-01'' ("HSIC-01"), established by Mangrove Risk Solutions Bermuda Ltd. ("Mangrove"), pursuant to GAAP consolidation guidance ^{p. 87}.

* The table presents the ''assets of HSIC-01'' included in the Consolidated Balance Sheets as of December 31, 2025 ^{p. 87}.

* The presented assets only include ''third-party net assets'' and exclude intercompany balances, which were eliminated upon consolidation ^{p. 87}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 34,856

|-

|}

</div>

 

 

* The Company uses derivatives for financial risk management to mitigate price risk in insurance contracts exposed to commodity price fluctuations, specifically cattle and milk ^{p. 88}.

* The net gain (loss) recognized on derivative instruments in economic hedging relationships is presented in "losses and loss adjustment expenses" on the Consolidated Statements of Operations ^{p. 88}.

* For the year ended December 31, 2025, the Company recognized pre-tax net gains of USD 7.9m in losses and loss adjustment expenses ^{p. 88}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! colspan="2" style="text-align:center" | Derivative Assets

</div>

 

 

* The Company analyzes the credit risk of its ''reinsurance recoverables'' by monitoring the financial strength rating of its reinsurers from A.M. Best ^{p. 89}.

* During the year ended December 31, 2024, the Company recognized an ''uncollectible reinsurance recoverable balance'' related to the LPT as a net increase of $13.6 million to the allowance for estimated uncollectible reinsurance ^{p. 89}.

* This $13.6 million increase was subsequently written-off ^{p. 89}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Premiums Receivable, Net

| style="text-align:right" | 498

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Premiums Receivable, Net

| style="text-align:right" | 128

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Allowance for Estimated Uncollectible Reinsurance

|-

| style="text-align:right" | 2,295

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Reinsurance Recoverables, Net

| style="text-align:right" | ( 13,585 )

|-

|}

</div>

 

 

* ''Depreciation expense'' for property and equipment was USD 3.3m for the year ended December 31, 2025 ^{p. 90}.

* ''Depreciation expense'' for property and equipment was USD 3.2m for the year ended December 31, 2023 ^{p. 90}.

* Depreciation expense is presented in underwriting, acquisition, and insurance expenses on the Consolidated Statements of Operations ^{p. 90}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | (in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | ( 29,355 )

|-

|}

</div>

 

 

* On August 30, 2024, the Company entered into the ''FHLB Loan'' under the Advances and Security Agreement ^{p. 91}.

* These ''deferred financing costs'' are presented as a direct deduction from the carrying amount of the subordinated debt ^{p. 91}.

 

 

* The Company operates with one reportable segment, offering commercial property and casualty products and solutions primarily in the United States on both non-admitted (E&S) and admitted bases ^{p. 92}.

* The CODM uses ''net underwriting income'', ''annualized return on equity'', and ''growth in book value per share'' for competitive analysis by benchmarking against competitors ^{p. 92}.

* This competitive analysis and the monitoring of budgeted versus actual results are used to assess segment performance and determine management's compensation ^{p. 92}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 128,236

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 6,064

|-

|-

| style="text-align:left" | Losses and LAE

| style="text-align:right" | 134,930

|-

|-

|-

| style="text-align:left" | Reconciliation of net underwriting income to net income:

| style="text-align:right" | —

|-

|-

| style="text-align:left" | Net investment income

| style="text-align:right" | 5,364

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | 2025

</div>

 

 

* The Company paid ''federal income taxes'' of USD 37.0m in 2024 and USD 15.8m in 2023 ^{p. 93}.

* As of December 31, 2025, the Company had ''no provision for uncertain tax positions'' and no provision for penalties or interest ^{p. 93}.

* Management does not believe there are any ''uncertain tax benefits'' that could be recognized within the next twelve months that would impact the Company’s effective tax rate ^{p. 93}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 7,661

|-

|-

| style="text-align:left" | Current tax expense

| style="text-align:right" | ( 885 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2024

| style="text-align:right" | 9,382

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

| style="text-align:right" | 0.3%

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2024

| style="text-align:right" | 1.2

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 1,164

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

| style="text-align:right" | 6,067

|-

|-

| style="text-align:left" | Valuation allowance

| style="text-align:right" | ( 586 )

|-

|-

| style="text-align:left" | Deferred policy acquisition costs

| style="text-align:right" | 2,338

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 586

|-

| style="text-align:right" | 68

| style="text-align:right" | —

|-

|}

</div>

 

 

* The One Big Beautiful Bill Act ("OBBB Act"), which includes a broad range of tax reform provisions, was signed into law in the United States on July 4, 2025 ^{p. 94}.

* No material impact from the OBBB Act is expected in 2026 ^{p. 94}.

 

 

* The Company evaluates net ultimate loss and LAE under three sub-categories: multi-line solutions, short-tail/monoline specialty lines, and exited lines ^{p. 95}.

** This adverse development was partially offset by favorable development in short-tail/monoline specialty lines ^{p. 95}.

** The favorable development in short-tail/monoline specialty lines was in the property line of business, primarily from accident years 2021 and 2022 ^{p. 95}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

|-

| style="text-align:left" | Reserves for losses and LAE, beginning of period

| style="text-align:right" | ( 435,986 )

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 10,770

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | 253,481

|-

|-

|-

| style="text-align:left" | Plus: reinsurance recoverable on unpaid claims, end of period

| style="text-align:right" | 455,484

|-

|}

</div>

 

 

* ''Losses and LAE reserves'' represent the Company's best estimate of the ultimate net cost of all reported and unreported losses that are unpaid as of the balance sheet dates ^{p. 96}.

* Claim counts include all claims reported, even if the Company does not establish a liability for the claim (i.e., reserve for loss and loss adjustment expenses) ^{p. 96}.

 

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="3" style="text-align:center" | ($ in thousands except number of claims)

! style="text-align:center" |

| style="text-align:right" | 5,495

|-

|-

| style="text-align:left" | Cumulative net paid loss and ALAE from the table below

| style="text-align:right" | —

|-

|-

| style="text-align:left" | *Supplementary information and unaudited

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="3" style="text-align:center" | ($ in thousands)

! style="text-align:center" |

| style="text-align:right" | 79,856

|-

|-

| style="text-align:left" | *Supplementary information and unaudited

</div>

 

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="5" style="text-align:center" | ($ in thousands except number of claims)

! style="text-align:center" |

| style="text-align:right" | 6,139

|-

|-

| style="text-align:left" | Cumulative net paid loss and ALAE from the table below

| style="text-align:right" | —

|-

|-

| style="text-align:left" | *Supplementary information and unaudited

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="4" style="text-align:center" | ($ in thousands)

! style="text-align:center" |

| style="text-align:right" | 49,558

|-

|-

| style="text-align:left" | *Supplementary information and unaudited

</div>

 

 

* The provided table reconciles net incurred and paid loss development tables to balance sheet reserves for losses and loss adjustment expenses as of December 31, 2025 and 2024 ^{p. 97}.

* The subsequent table details the historical average annual payout of incurred losses and allocated loss adjustment expenses (claims duration) for short-duration contracts ^{p. 97}.

* This claims duration data is based on disaggregated information from paid loss development tables, net of reinsurance ^{p. 97}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="4" style="text-align:center" | ($ in thousands except number of claims)

! style="text-align:center" |

| style="text-align:right" | —

|-

|-

| style="text-align:left" | Cumulative net paid loss and ALAE from the table below

| style="text-align:right" | —

|-

|-

| style="text-align:left" | *Supplementary information and unaudited

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="4" style="text-align:center" | ($ in thousands)

! style="text-align:center" |

| style="text-align:right" | —

|-

|-

| style="text-align:left" | *Supplementary information and unaudited

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | 2025

|-

! style="text-align:left" | Net reserves for losses and ALAE:

|-

| style="text-align:left" | Short-tail/Monoline Specialty Lines

| style="text-align:right" | 86,689

|-

|-

| style="text-align:left" | Short-tail/Monoline Specialty Lines

| style="text-align:right" | 15,298

|-

|-

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! colspan="11" style="text-align:center" | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

|-

| style="text-align:right" | 1.3%

|-

| style="text-align:right" | —

| style="text-align:right" | —

</div>

 

 

* ''Skyward Underwriters Agency, Inc. (SUA)'' is a subsidiary of the Company ^{p. 98}.

* ''Commission and fee income'' is primarily generated by SUA ^{p. 98}.

* This income is derived from the placement of insurance policies with third-party insurance or reinsurance companies ^{p. 98}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | ( 135 )

|-

|-

| style="text-align:left" | Commission and fee expenses

| style="text-align:right" | ( 3,755 )

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! style="text-align:center" | Contract Assets

</div>

 

 

* ''Underwriting, acquisition and insurance expenses'' were USD 390.0m in 2025, USD 330.0m in 2024, and USD 270.0m in 2023 ^{p. 99}.

* ''Salaries and employee benefits'' were USD 110.0m in 2025, USD 90.0m in 2024, and USD 70.0m in 2023 ^{p. 99}.

* ''General and administrative expenses'' were USD 90.0m in 2025, USD 80.0m in 2024, and USD 70.0m in 2023 ^{p. 99}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 134,930

|-

|}

</div>

 

 

* ''Reinsurance agreements'' are used to assume and cede premiums and benefits with other insurance companies ^{p. 100}.

* The Company’s ''deposit asset'' was $22.7 million at December 31, 2025, and $25.9 million at December 31, 2024 ^{p. 100}.

* The ''deposit asset'' was included in other assets on the Consolidated Balance Sheets ^{p. 100}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" |

! colspan="2" style="text-align:center" | 2025

|-

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | Written

! class="col-s" style="text-align:right" | Earned

| style="text-align:right" | ( 520,663 )

|-

|-

| style="text-align:right" | —

| style="text-align:right" | —

| style="text-align:right" | —

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2024

|-

| style="text-align:right" | ( 2,295 )

|-

|-

|}

</div>

 

 

* The ''2022 Long-Term Incentive Plan'' (2022 Plan) was approved by the Board of Directors on September 23, 2022, and became effective on January 12, 2023 ^{p. 101}.

* The ''Company recognized ESPP expense'' of $0.7 million in 2025 and $0.5 million in 2024 ^{p. 101}.

* As of ''December 31, 2025'', the fair value of unrecognized ESPP expense was $0.3 million ^{p. 101}.

 

<div style="overflow-x:auto">

{| class="wikitable"

! style="text-align:left" |

! style="text-align:center" | Award Payout Range

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | Weighted-Average Exercise Price

| style="text-align:right" | ( 219 )

|-

| style="text-align:right" | —

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | Stock

| style="text-align:right" | 759,990

|-

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | Weighted-Average Grant-Date Fair Value

|-

| style="text-align:left" | Non-vested at January 1, 2025

| style="text-align:right" | 1,325,483

|-

| style="text-align:right" | 47.77

| style="text-align:right" | 254,978

| style="text-align:right" | ( 391,746 )

|-

| style="text-align:right" | 25.74

| style="text-align:right" | ( 53,247 )

|-

|-

| style="text-align:left" | Non-vested at January 1, 2024

| style="text-align:right" | 1,445,449

|-

| style="text-align:right" | 31.72

| style="text-align:right" | 268,631

| style="text-align:right" | ( 285,957 )

|-

| style="text-align:right" | 18.27

| style="text-align:right" | ( 102,640 )

|-

|-

| style="text-align:left" | Non-vested at January 1, 2023

| style="text-align:right" | 419,896

|-

| style="text-align:right" | 16.07

| style="text-align:right" | 1,101,856

| style="text-align:right" | ( 40,645 )

|-

| style="text-align:right" | 15.29

| style="text-align:right" | ( 35,658 )

|-

|}

</div>

 

 

* The table sets forth the computation of ''basic and diluted net earnings per share'' for the years ended December 31, 2025, 2024, and 2023 ^{p. 102}.

* The table presents ''anti-dilutive instruments'' excluded from the calculation of diluted weighted-average common share equivalents for the years ended December 31, 2025, 2024, and 2023 ^{p. 102}.

* The table presents ''common share equivalents of contingently issuable instruments'' excluded from basic earnings per share for the years ended December 31, 2025, 2024, and 2023 ^{p. 102}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands, except for share and per share amounts)

! style="text-align:center" | 2025

|-

! style="text-align:left" | Numerator

|-

| style="text-align:left" | Net income

| style="text-align:right" | 85,984

|-

|-

| style="text-align:left" | Net income attributable to common stockholders (numerator for basic earnings per share)

| style="text-align:right" | 1,677

|-

|-

| style="text-align:left" | Basic weighted-average common shares

| style="text-align:right" | 135,972

|-

|-

|-

| style="text-align:left" | Diluted earnings per share

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | 2025

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | —

! class="col-s" style="text-align:right" | 2025

| style="text-align:right" | 920,864

|-

|}

</div>

 

 

* The Company sponsors the ''401(k) Plan'' (the “Plan”), which is available to substantially all its employees ^{p. 103}.

** ''2023'': USD 2.9m ^{p. 103}

 

 

* ''RISCOM'' provides wholesale brokerage services to the Company ^{p. 104}.

* ''Premiums receivable'' as of December 31, 2025, were USD 13.9m ^{p. 104}.

* ''Premiums receivable'' as of December 31, 2024, were USD 12.6m ^{p. 104}.

 

<div style="overflow-x:auto">

{| class="wikitable fintable"

! style="text-align:left" | ($ in thousands)

! class="col-s" style="text-align:right" | 2025

</div>

 

 

* ''Advisory and professional services fees and expense reimbursements'' paid to affiliated stockholders and directors were USD 0.6m for the years ended December 31, 2025 and 2024 ^{p. 105}.

* For investments involving affiliated companies and additional related party transactions, refer to Notes 5, 6, and 11 ^{p. 105}.

 

 

* The Company is involved in various legal actions stemming from claims under insurance policies and contracts ^{p. 106}.

* Based on current information, available insurance coverage, and advice from legal counsel, the Company believes the resolution of these matters will not individually or in aggregate have a material adverse effect on its consolidated financial position, results of operations, or cash flows ^{p. 106}.

 

 

* The Company has provided ''indemnifications'' to certain buyers in conjunction with the sale of business assets and subsidiaries ^{p. 107}.

* The Company currently ''does not believe'' any significant claims exist related to these indemnifications ^{p. 107}.

 

 

* ''Statutory net income'' was $159.1 million for 2025, $108.2 million for 2024, and $73.1 million for 2023 ^{p. 108}.

* As of December 31, 2025, and 2024, GMIC’s statutory capital and surplus substantially exceeded the regulatory RBC requirements ^{p. 108}.

 

 

* On September 2, 2025, the Company entered into two share purchase agreements (the "Apollo Majority SPAs") with institutional and management shareholders (the "Majority Sellers") of Apollo Group Holdings Limited ("Apollo") ^{p. 109}.

== Controls and Procedures ==

 

 

* Management, including the principal executive officer and principal financial officer, evaluated the effectiveness of disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K ^{p. 110}.

* Management acknowledges that any controls and procedures can only provide reasonable assurance of achieving their objectives, and judgment is applied in evaluating the cost-benefit relationship of controls and procedures ^{p. 110}.

 

 

* ''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 ^{p. 111}.

* ''Internal control over financial reporting'' includes policies and procedures that provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements ^{p. 111}.

 

 

* ''Material weakness'' in internal control over financial reporting was identified as of December 31, 2024, related to ineffective implementation of information technology general controls (ITGCs) in user access for systems supporting financial reporting processes ^{p. 112}.

* Ernst & Young, LLP's report is titled “Report of Independent Registered Public Accounting Firm-Opinion on Internal Control over Financial Reporting” ^{p. 112}.

 

 

* No change in internal control over financial reporting was identified during the year ended December 31, 2025, in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act, except for the remediation of the material weakness identified in 2024 ^{p. 113}.

* These changes have not materially affected, nor are they reasonably likely to materially affect, the company's internal control over financial reporting ^{p. 113}.

 

 

* Management acknowledges that disclosure controls and procedures, regardless of their design and operation, offer only reasonable assurance of achieving control objectives ^{p. 114}.

== Directors, Executive Officers and Corporate Governance ==

 

 

== Executive Compensation ==

== Principal Accounting Fees and Services ==

 

 

== Exhibits, Financial Statement Schedules. ==

* Items marked with an asterisk (*) are filed herewith ^{p. 121}.

* Items marked with a plus (+) indicate a management contract or compensatory plan or arrangement ^{p. 121}.

 

<div style="overflow-x:auto">

{| class="wikitable"

! style="text-align:left" | Schedule Number

! style="text-align:left" | Schedule Description

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable"

! style="text-align:left" | Exhibit Number

! style="text-align:left" | Exhibit Description

|}

</div>

 

<div style="overflow-x:auto">

{| class="wikitable"

! style="text-align:left" | Exhibit Number

! style="text-align:center" | Exhibit Description

|}

</div>