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| language = English
| source_url = https://www.sec.gov/Archives/edgar/data/1519449/000151944926000015/0001519449-26-000015-index.htm
| archive_file = File:Skyward<!-2025-FY ARCHIVE_MD_LINK_HERE -Annual_report.md->
| intro_sentence = 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.
}}
Line 604:
| class="col-m" style="text-align:right" | A
|-
| style="text-align:left" | '''Top 10 Total'''
| class="col-m" style="text-align:right" | '''661,130'''
| class="col-m" style="text-align:right" | —
|-
Line 681:
====== Competition ======
 
* The specialty lines property & casualty insurance market comprises numerous markets and sub-markets, each with distinct customer needs, products, services, and specific economic and structural features <sup>p. 14</sup>.
* EachCompetition marketis hasfaced distinctin customerunderwriting needs,divisions products,from services,other specialty and specificstandard economicinsurers and structuralprogram featuresadministrators <sup>p. 14</sup>.
* Competition factors include pricing, general reputation, perceived financial strength, broker relationships, product terms and conditions, independent rating agency ratings, claims payment speed and reputation, and the experience and reputation of underwriting and claims teams <sup>p. 14</sup>.
* Competition in underwriting divisions comes from other specialty and standard insurers, as well as program administrators <sup>p. 14</sup>.
* Due to the diversity of underwriting divisions, competition is broad, with certain competitors specific to a subset of divisions <sup>p. 14</sup>.
* Competition factors include pricing, general reputation, perceived financial strength, broker relationships, product terms and conditions, independent rating agency ratings, speed and reputation of claims payment, and the experience and reputation of underwriting and claims teams <sup>p. 14</sup>.
* Due to the diversity of underwriting divisions, competition is broad, with some competitors specific to only a subset of divisions <sup>p. 14</sup>.
* 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. <sup>p. 14</sup>.
 
Line 712 ⟶ 711:
* ''Imperium Insurance Company'' has a direct relationship with Oklahoma Specialty Insurance Company (Oklahoma insurance corporation) <sup>p. 15</sup>.
 
====== Direct relationshipswritten betweenpremiums insuranceby companiesstate ======
 
<div style="overflow-x:auto">
Line 1,040 ⟶ 1,039:
====== Risks Related to Our Operations ======
 
* TheLoss company'sof abilitykey personnel or inability to attract and retain experiencedqualified personnel iscould crucial,adversely asaffect the talent pool is limited and market dynamics can increase compensation expectationscompany <sup>p. 26</sup>.
* The pool of talent for recruitment is limited and fluctuates based on market dynamics, potentially leading to increased compensation expectations and difficulty in retaining/recruiting key personnel <sup>p. 26</sup>.
* Loss of key personnel or inability to attract talent could negatively impact the company's competitive position and results of operations <sup>p. 26</sup>.
* Failure to retain or attract talented personnel could prevent the company from maintaining its competitive position in specialized markets, impacting results of operations <sup>p. 26</sup>.
* The business is highly dependent on information technology and telecommunications systems for underwriting, claims, financial reporting, and interactions with brokers and insureds <sup>p. 26</sup>.
* System''Security failures due tobreaches, naturaldata catastrophesloss, terrorist attackscyberattacks, industrialand accidents,IT or cyber-attacksfailures'' could disrupt operations, limitdamage new businessreputation, and hinderadversely customeraffect servicebusiness and claimsfinancial paymentsresults <sup>p. 26</sup>.
* The business is highly dependent on ''information technology and telecommunications systems'', including underwriting and claims systems <sup>p. 26</sup>.
* The company experienced a data incident where attackers acquired certain data, but the investigation determined it was immaterial with no evidence of nation-state involvement or misuse of information <sup>p. 26</sup>.
* Systems are used for interactions with brokers and insureds, underwriting, policy preparation, premium processing, actuarial modeling, claims processing and payments, and financial statement preparation <sup>p. 26</sup>.
* Future cybersecurity events could lead to operational disruptions, unauthorized access to data, legal claims, regulatory scrutiny, reputational damage, and increased costs <sup>p. 26</sup>.
* SECSome andsystems statemay lawinclude notificationor requirementsrely foron security''third-party incidentssystems'' couldnot exacerbatelocated harmon tocompany thepremises businessor under its control <sup>p. 26</sup>.
* Events like natural catastrophes, terrorist attacks, industrial accidents, computer viruses, and cyber-attacks can cause system failures or inaccessibility <sup>p. 26</sup>.
* Third parties to whom functions are outsourced are also subject to cybersecurity risks, and increased use of cloud services can complicate identification and response to attacks <sup>p. 26</sup>.
* Sustained or repeated system failures could limit the ability to write/process business, provide customer service, pay claims, or operate normally <sup>p. 26</sup>.
* The rapid growth of artificial intelligence (AI) and machine learning may alter the competitive landscape <sup>p. 26</sup>.
* The''Computer companyviruses, useshackers, AIemployee formisconduct, riskand selection,other pricing,external andhazards'' claimscan handling,expose and continuessystems to researchsecurity breaches AI-basedor solutionsdisruptions <sup>p. 26</sup>.
* CompetitiveThe positioncompany couldhas beimplemented harmedsecurity ifmeasures competitorsbut leveragesystems may still be AIsubject moreto quicklybreaches or effectivelyinterference <sup>p. 26</sup>.
* A ''data incident'' occurred where attackers acquired certain company data, but an investigation determined it was immaterial, with no evidence of nation-state involvement, global hackers, or misuse of information <sup>p. 26</sup>.
* Deficient, inaccurate, or biased AI content, analyses, or recommendations could adversely affect the business, financial condition, results of operations, and reputation <sup>p. 26</sup>.
* Future cybersecurity events could lead to operational disruptions, unauthorized access to proprietary or customer data, legal claims, regulatory scrutiny, reputational damage, and increased costs <sup>p. 26</sup>.
* The company may incur costs to adopt and deploy AI technologies that become obsolete earlier than expected, and there is no assurance of realizing desired benefits from AI <sup>p. 26</sup>.
* SEC and state law requirements for public notification of incidents could exacerbate harm <sup>p. 26</sup>.
* Uncertainty in the legal and regulatory landscape for AI at federal and state levels could lead to burdensome laws, significant costs, and restrictions on AI development and deployment <sup>p. 26</sup>.
* ''Third parties'' to whom functions are outsourced are also subject to these risks <sup>p. 26</sup>.
* The company reviews and assesses third-party providers' cybersecurity controls but cannot ensure complete protection against compromises or disclosures <sup>p. 26</sup>.
* Increased use of ''third-party services'' (e.g., cloud technology, SaaS) can complicate identification and response to cyberattacks <sup>p. 26</sup>.
* ''Artificial intelligence (AI) and machine learning'' are evolving technologies that may impact the business and operations <sup>p. 26</sup>.
* Employees use AI for risk selection, pricing, and claims handling to improve effectiveness and efficiency <sup>p. 26</sup>.
* The company continues to research and implement AI-based solutions <sup>p. 26</sup>.
* Competitive position may be harmed if competitors leverage AI solutions more quickly or effectively <sup>p. 26</sup>.
* If AI applications produce deficient, inaccurate, or biased content, analyses, or recommendations, the business, financial condition, results of operations, and reputation could be adversely affected <sup>p. 26</sup>.
* Costs may be incurred to adopt and deploy AI technologies that could become obsolete earlier than expected <sup>p. 26</sup>.
* There is no assurance that desired or anticipated benefits from AI will be realized <sup>p. 26</sup>.
* ''Uncertainty exists in the legal and regulatory landscape'' at federal and state levels for AI use <sup>p. 26</sup>.
* New laws, regulations, or industry standards for AI could be burdensome, costly, or restrict the ability to develop, adopt, and deploy AI technologies <sup>p. 26</sup>.
* The company may not be able to manage its growth effectively <sup>p. 26</sup>.
* Future business growth may require additional capital, systems development, and skilled personnel <sup>p. 26</sup>.
* Failure to effectively manage growth, includingeffectively meetingcould capitalmaterially needs,adversely expandingaffect systemsbusiness, allocatingfinancial human resourcescondition, and integratingresults acquisitions,of could materially adversely affect the businessoperations <sup>p. 26</sup>.
* Success of inorganic''Inorganic growth through acquisitions'' depends on identifying appropriate targets, negotiating favorable terms, completing transactions, and successful integration <sup>p. 26</sup>.
* The company may not realize anticipatedAnticipated benefits from acquisitions, such as revenue growth, operational efficiencies, or expectedsynergies, may synergiesnot be realized <sup>p. 26</sup>.
* RecentThe rapidcompany revenuehas experienced rapid growth in recent years, but these rates may not be indicative of future growth and could decline <sup>p. 26</sup>.
* Sustaining revenue growth consistent with recent history is not guaranteed <sup>p. 26</sup>.
* Future revenue growth depends on factors including effective product pricing, successful product deployment and renewals, attracting and retaining qualified professionals, enhancing infrastructure, creating new distribution channels, introducing new products, competing effectively, and increasing brand awareness <sup>p. 26</sup>.
* Revenue growth depends on factors including effective product pricing, successful product deployment, attracting/retaining qualified personnel, enhancing infrastructure/data systems, creating new distribution channels, introducing new products, competing effectively, and increasing brand awareness <sup>p. 26</sup>.
* Failure to achieve these objectives makes forecasting future results difficult, and historical growth rates should not be considered indicative of future performance <sup>p. 26</sup>.
* Failure to accomplish these objectives makes forecasting future results difficult <sup>p. 26</sup>.
* Operating expenses are expected to increase, and if revenue growth does not offset these increases, profitability could be harmed <sup>p. 26</sup>.
* TheHistorical companygrowth completedrate theshould acquisitionnot be considered indicative of Apollofuture onperformance Januaryand 1,may 2026decline <sup>p. 26</sup>.
* Revenue could grow more slowly or decline in future periods <sup>p. 26</sup>.
* The Apollo acquisition is expected to provide strategic benefits, expand specialty insurance capabilities, and enhance presence in the Lloyd’s market <sup>p. 26</sup>.
* Operating expenses are expected to increase, and if revenue growth does not offset these increases, business, financial position, and results of operations could be harmed, potentially preventing profitability <sup>p. 26</sup>.
* Risks associated with the Apollo acquisition include integration challenges, diversion of management attention, disruption of business, and unexpected costs or delays <sup>p. 26</sup>.
* The ''acquisition and integration of Apollo'' may adversely affect business, financial condition, and results of operations <sup>p. 26</sup>.
* There is no assurance that anticipated benefits from the Apollo acquisition, such as growth opportunities, will be realized within the expected timeframe or at all <sup>p. 26</sup>.
* The acquisition of Apollo was completed on January 1, 2026 <sup>p. 26</sup>.
* The success of the acquisition depends on retaining key Apollo employees, partners, and customers; loss of these could negatively impact the acquired business and overall operations <sup>p. 26</sup>.
* The acquisition is expected to provide strategic benefits, expand specialty insurance capabilities, and enhance presence in the Lloyd’s market <sup>p. 26</sup>.
* Cultural and operational differences between the company and Apollo, particularly in the Lloyd’s market, may create challenges in harmonizing policies and procedures <sup>p. 26</sup>.
* Financial and accounting''Integration risks'' include significantchallenges changesin tointegrating financialApollo’s statementsoperations, recognitionsystems, oftechnology goodwillplatforms, and intangiblepersonnel, assetspotentially subjectdiverting tomanagement impairmentattention, undiscloseddisrupting liabilitiesbusiness, and the need to convert Apollo's U.K. GAAP financialincurring statementsunexpected tocosts U.S.or GAAPdelays <sup>p. 26</sup>.
* There is no assurance that growth opportunities or other benefits from the acquisition will be realized within the expected timeframe or at all <sup>p. 26</sup>.
* Regulatory and compliance risks increase due to expansion into new jurisdictions and markets, including the Lloyd’s market <sup>p. 26</sup>.
* AdditionalFailure indebtednessto incurredachieve foranticipated the acquisitionbenefits could limitadversely financialaffect flexibilityresults orof increaseoperations theand cost offinancial capitalcondition <sup>p. 26</sup>.
* ''Retention of key Apollo employees, partners, and customers'' is crucial for the acquisition's success <sup>p. 26</sup>.
* The integration process may divert management’s attention from existing business, negatively impacting ongoing operations and financial performance <sup>p. 26</sup>.
* FailureLoss toof successfullykey integratepersonnel Apollo,or realizebusiness anticipatedrelationships benefits,could ornegatively manageimpact expandedthe businessvalue risksof couldthe materiallyacquired business and adversely affect theoverall companyoperations <sup>p. 26</sup>.
* ''Cultural and operational differences'' between Apollo (operating in the Lloyd’s market) and the company may create challenges in harmonizing policies and procedures <sup>p. 26</sup>.
* The company continually faces litigation risks, including disputes related to insurance claims and general commercial litigation <sup>p. 26</sup>.
* ''Financial and accounting risks'' include significant changes to financial statements, recognition of goodwill and other intangible assets subject to impairment, undisclosed liabilities or risks, and the need to convert Apollo’s U.K. GAAP financial statements to U.S. GAAP <sup>p. 26</sup>.
* The company is not currently involved in out-of-the-ordinary litigation with customers, but other industry members face class action lawsuits and other litigation with unpredictable outcomes <sup>p. 26</sup>.
* Social''Regulatory inflation,and particularlycompliance inrisks'' third-partyincrease claims,due canto leadexpansion tointo oversizednew judgmentsjurisdictions and inflatedmarkets, litigationincluding costs andthe settlementLloyd’s amountsmarket <sup>p. 26</sup>.
* Failure to comply with applicable laws and regulations could result in fines, penalties, or other adverse consequences <sup>p. 26</sup>.
* ''Indebtedness and financial flexibility'' are impacted by additional indebtedness incurred for the acquisition, which could limit financial flexibility or increase the cost of capital <sup>p. 26</sup>.
* The integration process may ''distract management'' from existing business, negatively impacting ongoing operations and financial performance <sup>p. 26</sup>.
* Inability to successfully integrate Apollo, realize anticipated benefits, or manage risks could materially and adversely affect business, financial condition, and results of operations <sup>p. 26</sup>.
* ''Litigation risks'' are continually faced, including disputes relating to insurance claims and general commercial/corporate litigation <sup>p. 26</sup>.
* The company is not currently involved in out-of-the-ordinary litigation with customers <sup>p. 26</sup>.
* Other insurance industry members face class action lawsuits and other litigation with substantial or indeterminate amounts, and unpredictable outcomes <sup>p. 26</sup>.
* ''Social inflation'', particularly in third-party claims, can lead to oversized judgments <sup>p. 26</sup>.
* Litigation costs and settlement amounts can be inflated even when cases do not reach judgment <sup>p. 26</sup>.
* Litigation issues include insurance and claim settlement practices <sup>p. 26</sup>.
* The company cannot predict future involvement in such litigation or its impact on the business <sup>p. 26</sup>.
* ''Loss of key vendor relationships'' or failure of a vendor to protect data could affect operations <sup>p. 26</sup>.
* The company relies on services and products from many vendors in the United States and abroad, including computer hardware/software, claim adjustment, human resource benefits, and investment management services <sup>p. 26</sup>.
* The company relies on services and products from many vendors in the United States and abroad, including computer hardware/software, claim adjustment, HR benefits management, and investment management services <sup>p. 26</sup>.
* Vendor bankruptcy, inability to provide services, system breaches, or failure to protect confidential information could lead to operational impairments and financial losses <sup>p. 26</sup>.
* Failure to properly assess vendorand understand risks, includingand securitycosts andin third-party stability,relationships could materially and adversely affect financial condition and results of operations <sup>p. 26</sup>.
* ContinuedThe company anticipates continued reliance on ''third-party software is anticipated, and while alternatives are believed to exist, replacement could be difficult or costly'' <sup>p. 26</sup>.
* IntegrationWhile ofcommercially newreasonable alternatives to current licensed third-party software are believed to exist, this may requirenot always be the significantcase, workor andreplacement investmentcould ofbe timedifficult andor resourcescostly <sup>p. 26</sup>.
* LicenseIntegration agreementsof for additional or alternativenew third-party software may not be available on commerciallyrequire reasonablesignificant termswork, ortime, atand allresources <sup>p. 26</sup>.
* RisksObtaining associatedlicense withagreements for additional or alternative third-party software usemay cannotnot be eliminatedon commercially andreasonable couldterms negativelyor affectavailable theat businessall <sup>p. 26</sup>.
* TheMany company'srisks successassociated dependswith partlythird-party onsoftware protectinguse itscannot intellectualbe property,eliminated includingand itscould brandnegatively andaffect proprietarythe technologybusiness <sup>p. 26</sup>.
* The company may fail or be unable to protect its ''intellectual property rights'' for its proprietary technology platform and brand <sup>p. 26</sup>.
* Protection primarily relies on copyright and trade secret laws, and confidentiality agreements <sup>p. 26</sup>.
* InadequateThe protectioncompany ormay unsuccessfulbe enforcementsued ofby intellectualthird propertyparties rightsfor couldalleged adverselyinfringement affectof thetheir brandproprietary and businessrights <sup>p. 26</sup>.
* TheSuccess company'sand successability alsoto dependscompete ondepend not infringingpartly on the intellectual property, including brand rights ofand proprietary technology used in certain product otherslines <sup>p. 26</sup>.
* Protection primarily relies on copyright and trade secret laws, and confidentiality agreements with employees, customers, service providers, and partners <sup>p. 26</sup>.
* Future claims of intellectual property infringement could result in significant expenses, substantial damages, ongoing royalty payments, prevention from offering services, or other unfavorable terms <sup>p. 26</sup>.
* Litigation,Steps eventaken ifto successful,protect couldintellectual beproperty costly,may time-consuming, and divert managementbe attentioninadequate <sup>p. 26</sup>.
* Efforts to enforce intellectual property rights may face defenses, counterclaims, and countersuits <sup>p. 26</sup>.
* Failure to secure, protect, and enforce intellectual property rights could adversely affect the brand and business <sup>p. 26</sup>.
* Success also depends partly on not infringing on the intellectual property rights of others <sup>p. 26</sup>.
* Competitors and other entities may own or claim intellectual property related to the industry or company <sup>p. 26</sup>.
* Future claims of infringement by third parties are possible, and the company may be found to be infringing <sup>p. 26</sup>.
* Claims or litigation could incur significant expenses, require substantial damages or royalty payments, prevent service offerings, or impose unfavorable terms <sup>p. 26</sup>.
* Even if successful in a dispute, litigation could be costly, time-consuming, and divert management attention <sup>p. 26</sup>.
 
====== Risks Related to Ownership of Our Common Stock ======
Line 1,198 ⟶ 1,228:
* ''Common shares'' began trading on the NASDAQ Global Select Market under the symbol "SKWD" on January 13, 2023 <sup>p. 31</sup>.
* Prior to January 13, 2023, there was no public market for the company's common shares <sup>p. 31</sup>.
* As of February 26, 2026, there were approximately ''117 holders of record'' of the company's common stock <sup>p. 31</sup>.
* TheThis 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 <sup>p. 31</sup>.
 
====== Securities Authorized for Issuance Under Equity Compensation Plans ======
Line 1,216 ⟶ 1,246:
====== Performance Graph ======
 
* The performance graph compares the cumulative total shareholder return of an investment in Skywardthe Specialty Insurance Groupcompany's common stock, the Nasdaq Composite Index, and the Nasdaq Insurance Index <sup>p. 34</sup>.
* The comparison period begins January 13, 2023, whenwhich is the date the company's common stock startedbegan trading on Nasdaq, and endsextends through December 31, 2025 <sup>p. 34</sup>.
* An initial investment of $100 is assumed for the graph <sup>p. 34</sup>.
* ''HistoricalThe returns'' are based on historical results and are not indicative of future performance <sup>p. 34</sup>.
* The graph is not considered "soliciting material" or "filed" for purposes of Section 18 of the Exchange Act <sup>p. 34</sup>.
* The graph is not subject to liabilities under Section 18 of the Exchange Act <sup>p. 34</sup>.
* The graph is not deemed to be incorporated by reference into any of the company's filings under the Securities Act <sup>p. 34</sup>.
* ''Skyward Specialty Insurance Group, Inc. performancecumulative total return'':
** January 13, 2023: $100.00 <sup>p. 34</sup>
** December 31, 2023: Approximately $175.00 <sup>p. 34</sup>
** December 31, 2024: Approximately $265.00 <sup>p. 34</sup>
** December 31, 2025: Approximately $268.00 <sup>p. 34</sup>
* ''Nasdaq Composite Index performancecumulative total return'':
** January 13, 2023: $100.00 <sup>p. 34</sup>
** December 31, 2023: Approximately $138.00 <sup>p. 34</sup>
** December 31, 2024: Approximately $173.00 <sup>p. 34</sup>
** December 31, 2025: Approximately $210.00 <sup>p. 34</sup>
* ''Nasdaq Insurance Index performancecumulative total return'':
** January 13, 2023: $100.00 <sup>p. 34</sup>
** December 31, 2023: Approximately $105.00 <sup>p. 34</sup>
** December 31, 2024: Approximately $128.00 <sup>p. 34</sup>
** December 31, 2025: Approximately $128129.00 <sup>p. 34</sup>
 
====== Skyward Specialty Insurance Group stockStock performance versus indicescomparison ======
 
<div style="overflow-x:auto">
Line 1,328 ⟶ 1,358:
* ''Combined ratio'' was 90.0% for the year ended December 31, 2025, compared to 90.0% for the year ended December 31, 2024 <sup>p. 36</sup>.
 
====== ExpenseUnderwriting results and combinedkey ratios ======
 
<div style="overflow-x:auto">
Line 1,337 ⟶ 1,367:
|-
! style="text-align:left" | ($ in thousands)
! class="col-sm" style="text-align:right" | 2025
! class="col-sm" style="text-align:right" | 2024
|-
| style="text-align:left" | Gross written premiums
Line 1,348 ⟶ 1,378:
| style="text-align:right" | -619,654
|-
| style="text-align:left" | '''Net written premiums'''
| style="text-align:right" | '''1,406,232'''
| style="text-align:right" | '''1,123,578'''
|-
| style="text-align:left" | '''Net earned premiums'''
| style="text-align:right" | '''1,304,505'''
| style="text-align:right" | '''1,056,722'''
|-
| style="text-align:left" | Commission and fee income
Line 1,368 ⟶ 1,398:
| style="text-align:right" | 311,757
|-
| style="text-align:left" | '''Underwriting income (1)'''
| style="text-align:right" | '''138,979'''
| style="text-align:right" | '''81,859'''
|-
| style="text-align:left" | Net investment income
Line 1,400 ⟶ 1,430:
| style="text-align:right" | 28.9%
|-
| style="text-align:left" | '''Combined ratio'''
| style="text-align:right" | '''89.3%'''
| style="text-align:right" | '''92.3%'''
|-
| style="text-align:left" | Adjusted loss and LAE ratio (1)
Line 1,412 ⟶ 1,442:
| style="text-align:right" | 28.9%
|-
| style="text-align:left" | '''Adjusted combined ratio (1)'''
| style="text-align:right" | '''NM (2)'''
| style="text-align:right" | '''91.2%'''
|-
| style="text-align:left" | Return on equity
Line 1,504 ⟶ 1,534:
| style="text-align:right" | -3,470
|-
| style="text-align:left" | '''Adjusted operating income'''
| style="text-align:right" | '''213,043'''
| style="text-align:right" | '''167,372'''
| style="text-align:right" | '''162,554'''
| style="text-align:right" | '''126,582'''
|}
</div>
 
====== Reconciliation of incomeadjusted before income taxesEBITDA ======
 
<div style="overflow-x:auto">
Line 1,560 ⟶ 1,590:
| style="text-align:right" | -167
|-
| style="text-align:left" | '''Underwriting income'''
| style="text-align:right" | '''138,979'''
| style="text-align:right" | '''81,859'''
|}
</div>
Line 1,582 ⟶ 1,612:
| style="text-align:right" | -11,598
|-
| style="text-align:left" | '''Adjusted losses and LAE'''
| style="text-align:right" | '''658,211'''
|-
| style="text-align:left" | Loss ratio
Line 1,591 ⟶ 1,621:
| style="text-align:right" | 1.1%
|-
| style="text-align:left" | '''Adjusted loss ratio'''
| style="text-align:right" | '''62.3%'''
|-
| style="text-align:left" | Combined ratio
Line 1,600 ⟶ 1,630:
| style="text-align:right" | 1.1%
|-
| style="text-align:left" | '''Adjusted combined ratio'''
| style="text-align:right" | '''91.2%'''
|}
</div>
 
====== Stockholders’Tangible equity and tangible stockholders’stockholders' equity ======
 
<div style="overflow-x:auto">
Line 1,621 ⟶ 1,651:
| style="text-align:right" | 87,348
|-
| style="text-align:left" | '''Tangible stockholders’ equity'''
| style="text-align:right" | '''921,525'''
| style="text-align:right" | '''706,651'''
|}
</div>
Line 1,639 ⟶ 1,669:
| style="text-align:right" | 126,582
|-
| style="text-align:left" | '''Denominator: average stockholders’ equity'''
| style="text-align:right" | '''901,782'''
| style="text-align:right" | '''727,515'''
|-
| style="text-align:left" | Adjusted return on equity
Line 1,661 ⟶ 1,691:
| style="text-align:right" | 118,828
|-
| style="text-align:left" | '''Denominator: average tangible stockholders’ equity'''
| style="text-align:right" | '''814,088'''
| style="text-align:right" | '''639,624'''
|-
| style="text-align:left" | Return on tangible equity
Line 1,683 ⟶ 1,713:
| style="text-align:right" | 126,582
|-
| style="text-align:left" | '''Denominator: average tangible stockholders’ equity'''
| style="text-align:right" | '''814,088'''
| style="text-align:right" | '''639,624'''
|-
| style="text-align:left" | Adjusted return on tangible equity
Line 1,847 ⟶ 1,877:
(1) Current accident year.
 
====== ReserveLoss and LAE reserve development by accident year ======
 
<div style="overflow-x:auto">
Line 1,885 ⟶ 1,915:
| style="text-align:right" | '''25,728'''
|-
| style="text-align:left" | '''Reserve development on losses subject to LPT'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''25,300'''
|-
| style="text-align:left" | '''Reserve development on losses excluding losses subject to LPT'''
| style="text-align:right" | -'''(7,475)'''
| style="text-align:right" | '''428'''
|}
</div>
 
====== NetUnderwriting, expensesacquisition byand typeinsurance expenses ======
 
<div style="overflow-x:auto">
Line 1,921 ⟶ 1,951:
| style="text-align:right" | 15.3%
|-
| style="text-align:left" | '''Underwriting, acquisition and insurance expenses'''
| style="text-align:right" | '''377,359'''
| style="text-align:right" | '''28.9%'''
| style="text-align:right" | '''311,757'''
| style="text-align:right" | '''29.5%'''
|-
| style="text-align:left" | Less: commission and fee income
Line 1,965 ⟶ 1,995:
| style="text-align:right" | 2,581
|-
| style="text-align:left" | '''Net investment income'''
| style="text-align:right" | '''83,619'''
| style="text-align:right" | '''80,600'''
|-
| style="text-align:left" | '''Net unrealized (losses) gains on securities still held'''
| style="text-align:right" | -'''(1,555)'''
| style="text-align:right" | '''7,921'''
|-
| style="text-align:left" | Net realized gains (losses)
Line 1,977 ⟶ 2,007:
| style="text-align:right" | -1,579
|-
| style="text-align:left" | '''Net investment gains'''
| style="text-align:right" | '''22,149'''
| style="text-align:right" | '''6,342'''
|}
</div>
Line 2,128 ⟶ 2,158:
| style="text-align:right" | '''98.0%'''
|-
| style="text-align:left" | '''Commercial mortgage loans'''
| style="text-align:right" | '''9,902'''
| style="text-align:right" | '''0.5%'''
| style="text-align:right" | '''26,490'''
| style="text-align:right" | '''2.0%'''
|-
| style="text-align:left" | '''Total fixed income portfolio'''
Line 2,226 ⟶ 2,256:
| style="text-align:right" | 1.1%
|-
| style="text-align:left" | '''Equities'''
| style="text-align:right" | '''1,174'''
| style="text-align:right" | '''100.0%'''
| style="text-align:right" | '''106,254'''
| style="text-align:right" | '''100.0%'''
|}
</div>
 
====== EstimatedInterest changerate in fair value due to interest ratesensitivity changesanalysis ======
 
<div style="overflow-x:auto">
Line 2,322 ⟶ 2,352:
* ''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 <sup>p. 42</sup>.
 
====== Cash flow activitiesstatement ======
 
<div style="overflow-x:auto">
Line 2,346 ⟶ 2,376:
| style="text-align:right" | -4,232
|-
| style="text-align:left" | '''Change in cash and cash equivalents and restricted cash'''
| style="text-align:right" | '''41,589'''
| style="text-align:right" | '''57,189'''
|}
</div>
Line 2,426 ⟶ 2,456:
* ''Reinsurance balances recoverable'' on reserves for paid and unpaid losses and LAE totaled $857.9 million at December 31, 2024 <sup>p. 45</sup>.
 
====== PaymentsReinsurance duebalances byrecoverable periodand debt obligations ======
 
<div style="overflow-x:auto">
Line 2,588 ⟶ 2,618:
====== Report of Independent Registered Public Accounting Firm ======
 
* We''Opinion'': haveThe auditedconsolidated thefinancial accompanyingstatements consolidatedpresent fairly, in all material respects, the financial statementsposition of Skyward Specialty Insurance Group, Inc. and its subsidiaries, which include the consolidated balance sheets as of December 31, 2023 and 2022, and the relatedresults consolidatedof statements oftheir operations, comprehensiveand income (loss), changes in stockholders’ equity, andtheir cash flows for each of the three years in the period ended December 31, 2023, andin theconformity relatedwith notesU.S. (collectivelygenerally referredaccepted to as the “consolidated financialaccounting statements”)principles <sup>p. 49</sup>.
* ''Internal Control Over Financial Reporting'': The Company maintained effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) <sup>p. 49</sup>.
* In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its 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 <sup>p. 49</sup>.
* We''Basis havefor alsoOpinion'': audited,The audit was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 28, 2024, expressed an unqualified opinion thereon <sup>p. 49</sup>.
* ''Responsibilities of the Auditor'': The auditor is a public accounting firm registered with the PCAOB and is required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB <sup>p. 49</sup>.
* The consolidated financial statements of Skyward Specialty Insurance Group, Inc. as of December 31, 2023 and 2022, and for each of the three years in the period ended December 31, 2023, were audited by Ernst & Young LLP <sup>p. 49</sup>.
* ''Audit Scope'': The audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks <sup>p. 49</sup>.
* Ernst & Young LLP is a public accounting firm registered with the PCAOB and is required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB <sup>p. 49</sup>.
* ''Critical Audit Matters'': Critical audit matters are those matters arising from the audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective, or complex auditor judgments <sup>p. 49</sup>.
* We conducted our audits in accordance with the standards of the PCAOB <sup>p. 49</sup>.
* ''No Critical Audit Matters'': The auditor determined that there were no critical audit matters <sup>p. 49</sup>.
* Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud <sup>p. 49</sup>.
* ''Auditor'': Ernst & Young LLP <sup>p. 49</sup>.
* Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks <sup>p. 49</sup>.
* ''Location'': Houston, Texas <sup>p. 49</sup>.
* Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements <sup>p. 49</sup>.
* ''Date'': February 28, 2024 <sup>p. 49</sup>.
* Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements <sup>p. 49</sup>.
* We believe that our audits provide a reasonable basis for our opinion <sup>p. 49</sup>.
* The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments <sup>p. 49</sup>.
* The communication of critical audit matters does not alter our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates <sup>p. 49</sup>.
* ''Critical Audit Matter'': Reserves for Losses and Loss Adjustment Expenses <sup>p. 49</sup>.
** ''Description'': As discussed in Note 2, “Summary of Significant Accounting Policies,” and Note 8, “Reserves for Losses and Loss Adjustment Expenses,” to the consolidated financial statements, the Company’s consolidated balance sheets include reserves for losses and loss adjustment expenses (“LAE”) of $1,009.7 million as of December 31, 2023 <sup>p. 49</sup>.
** The Company’s reserves for losses and LAE represent management’s estimate of the ultimate cost of all reported and unreported losses and LAE incurred through the balance sheet date <sup>p. 49</sup>.
** The estimation of these reserves is inherently uncertain due to the significant judgment and assumptions required, including the use of actuarial methods and models, and the consideration of various factors such as historical loss experience, industry trends, and economic conditions <sup>p. 49</sup>.
** The Company writes various lines of business, including professional lines, E&S casualty, surety, and workers’ compensation, each with unique characteristics that influence the estimation of reserves <sup>p. 49</sup>.
** ''Auditing Challenge'': The principal considerations for our determination that performing procedures relating to the reserves for losses and LAE is a critical audit matter are the significant judgment required by management to estimate the reserves, the inherent uncertainty in the estimation process, and the extent of audit effort required to evaluate the actuarial methods and assumptions used by management <sup>p. 49</sup>.
** ''Audit Response'': Our audit procedures related to the reserves for losses and LAE included the following, among others: <sup>p. 49</sup>.
*** We evaluated the design and tested the operating effectiveness of controls over the Company’s loss reserving process, including controls over the actuarial models and assumptions used <sup>p. 49</sup>.
*** We involved our actuarial specialists to assist in evaluating the appropriateness of management’s actuarial methods and assumptions used in estimating the reserves for losses and LAE <sup>p. 49</sup>.
*** We performed an independent actuarial estimate of the reserves for losses and LAE for certain lines of business and compared our estimate to management’s recorded reserves <sup>p. 49</sup>.
*** We evaluated the Company’s historical loss development patterns and compared them to industry trends <sup>p. 49</sup>.
*** We assessed the adequacy of the Company’s disclosures related to reserves for losses and LAE in the consolidated financial statements <sup>p. 49</sup>.
* /s/ Ernst & Young LLP <sup>p. 49</sup>.
* Houston, Texas <sup>p. 49</sup>.
* February 28, 2024 <sup>p. 49</sup>.
 
====== Opinion on Internal Control Over Financial Reporting ======
Line 2,644 ⟶ 2,656:
* ''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 <sup>p. 52</sup>.
 
Caption: Ernst & Young LLP's report on internal control over financial reporting
Caption: Report of independent registered public accounting firm
 
| /s/ Ernst & Young LLP |
Line 2,715 ⟶ 2,727:
* We also reviewed the ''development of prior year reserve estimates'' <sup>p. 57</sup>.
 
Caption: Ernst & Young LLP's report on reserve estimates for unpaid losses and LAE
Caption: Report of independent registered public accounting firm
 
| /s/ Ernst & Young LLP |
Line 2,727 ⟶ 2,739:
* The accompanying notes are an integral part of the consolidated financial statements <sup>p. 58</sup>.
 
====== Consolidated balance sheets - assets ======
 
<div style="overflow-x:auto">
Line 2,822 ⟶ 2,834:
| style="text-align:right" | '''3,729,478'''
|-
| style="text-align:left" | '''Liabilities and stockholders’ equity'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 2,862 ⟶ 2,874:
| style="text-align:right" | '''2,935,479'''
|-
| style="text-align:left" | '''Stockholders’ equity'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 2,896 ⟶ 2,908:
* The accompanying notes are an integral part of the consolidated financial statements <sup>p. 59</sup>.
 
====== Consolidated statements of operations - revenues and expenses ======
 
<div style="overflow-x:auto">
Line 2,910 ⟶ 2,922:
|-
! style="text-align:left" | Revenues:
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
|-
| style="text-align:left" | Net earned premiums
Line 2,979 ⟶ 2,991:
| style="text-align:right" | '''775,867'''
|-
| style="text-align:left" | '''Income before income taxes'''
| style="text-align:right" | '''216,424'''
| style="text-align:right" | '''152,739'''
| style="text-align:right" | '''110,102'''
|-
| style="text-align:left" | Income tax expense
Line 2,989 ⟶ 3,001:
| style="text-align:right" | 24,118
|-
| style="text-align:left" | '''Net income'''
| style="text-align:right" | '''170,028'''
| style="text-align:right" | '''118,828'''
| style="text-align:right" | '''85,984'''
|-
| style="text-align:left" | '''Net income attributable to participating securities'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''1,677'''
|-
| style="text-align:left" | '''Net income attributable to common stockholders'''
| style="text-align:right" | '''170,028'''
| style="text-align:right" | '''118,828'''
| style="text-align:right" | '''84,307'''
|-
| style="text-align:left" | '''Net income attributable to participating securities'''
| style="text-align:right" | '''170,028'''
| style="text-align:right" | '''118,828'''
| style="text-align:right" | '''85,984'''
|-
| style="text-align:left" | '''Other comprehensive income:'''
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | 1,677
|-
| style="text-align:left" | Net income attributable to common stockholders
| style="text-align:right" | 170,028
| style="text-align:right" | 118,828
| style="text-align:right" | 84,307
|-
| style="text-align:left" | Net income
| style="text-align:right" | 170,028
| style="text-align:right" | 118,828
| style="text-align:right" | 85,984
|-
| style="text-align:left" | Unrealized gains and losses on investments:
Line 3,029 ⟶ 3,046:
| style="text-align:right" | '''20,532'''
|-
| style="text-align:left" | '''Comprehensive income'''
| style="text-align:right" | '''203,605'''
| style="text-align:right" | '''119,661'''
| style="text-align:right" | '''106,516'''
|-
| style="text-align:left" | '''Per share data:'''
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Basic earnings per share
Line 3,039 ⟶ 3,061:
| style="text-align:right" | 2.34
|-
| style="text-align:left" | '''Diluted earnings per share'''
| style="text-align:right" | '''4.07'''
| style="text-align:right" | '''2.87'''
| style="text-align:right" | '''2.24'''
|-
| style="text-align:left" | '''Weighted-average common shares outstanding'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,054 ⟶ 3,076:
| style="text-align:right" | 36,031,907
|-
| style="text-align:left" | '''Diluted'''
| style="text-align:right" | '''41,808,046'''
| style="text-align:right" | '''41,377,460'''
| style="text-align:right" | '''38,317,534'''
|}
</div>
Line 3,065 ⟶ 3,087:
* The accompanying notes are an integral part of the consolidated financial statements <sup>p. 60</sup>.
 
====== Consolidated statements of changes in shareholders' equity - preferred and common shares ======
 
<div style="overflow-x:auto">
Line 3,078 ⟶ 3,100:
|-
! style="text-align:left" | Preferred shares:
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
|-
| style="text-align:left" | Balance at beginning of year
Line 3,092 ⟶ 3,114:
| style="text-align:right" | ( 1,969,660 )
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
|-
| style="text-align:left" | Balance at beginning of year
Line 3,112 ⟶ 3,134:
| style="text-align:right" | 16,305,113
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''40,511,222'''
| style="text-align:right" | '''40,127,908'''
| style="text-align:right" | '''39,863,756'''
|-
| style="text-align:left" | Balance at beginning of year
Line 3,122 ⟶ 3,144:
| style="text-align:right" | 20
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
|-
| style="text-align:left" | '''Common stock:'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,147 ⟶ 3,169:
| style="text-align:right" | 48
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''405'''
| style="text-align:right" | '''401'''
| style="text-align:right" | '''399'''
|-
| style="text-align:left" | Balance'''Treasury at beginning of yearstock:'''
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | ( 2 )
|-
| style="text-align:left" | Balance at Decemberbeginning 31of year
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | ( 2 )
|-
| style="text-align:left" | Additional'''Balance paid-inat capital:December 31'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
|-
| style="text-align:left" | '''Additional paid-in capital:'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,182 ⟶ 3,209:
| style="text-align:right" | 124,496
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''730,555'''
| style="text-align:right" | '''718,598'''
| style="text-align:right" | '''710,855'''
|-
| style="text-align:left" | '''Stock notes receivable:'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,202 ⟶ 3,229:
| style="text-align:right" | 1,349
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''( 5,562 )'''
|-
| style="text-align:left" | '''Accumulated other comprehensive income (loss):'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,222 ⟶ 3,249:
| style="text-align:right" | 20,532
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''11,457'''
| style="text-align:right" | '''( 22,120 )'''
| style="text-align:right" | '''( 22,953 )'''
|-
| style="text-align:left" | '''Retained earnings (accumulated deficit):'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,247 ⟶ 3,274:
| style="text-align:right" | 85,984
|-
| style="text-align:left" | '''Balance at December 31'''
| style="text-align:right" | '''267,148'''
| style="text-align:right" | '''97,120'''
| style="text-align:right" | '''( 21,708 )'''
|-
| style="text-align:left" | '''Total stockholders’ equity'''
Line 3,263 ⟶ 3,290:
* The accompanying notes are an integral part of the consolidated financial statements <sup>p. 61</sup>.
 
====== Consolidated statements of cash flows - operating activities ======
 
<div style="overflow-x:auto">
Line 3,276 ⟶ 3,303:
|-
! style="text-align:left" | Cash flows from operating activities:
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
|-
| style="text-align:left" | Net income
Line 3,375 ⟶ 3,402:
| style="text-align:right" | ( 5,047 )
|-
| style="text-align:left" | '''Net cash provided by operating activities'''
| style="text-align:right" | '''408,076'''
| style="text-align:right" | '''305,115'''
| style="text-align:right" | '''338,187'''
|-
| style="text-align:left" | Purchase of fixed maturity securities, available-for-sale
Line 3,455 ⟶ 3,482:
| style="text-align:right" | 11,913
|-
| style="text-align:left" | '''Net cash used in investment activities'''
| style="text-align:right" | '''( 366,898 )'''
| style="text-align:right" | '''( 243,694 )'''
| style="text-align:right" | '''( 493,809 )'''
|-
| style="text-align:left" | Employee share purchases
Line 3,485 ⟶ 3,512:
| style="text-align:right" | 129,597
|-
| style="text-align:left" | '''Net cash provided by (used in) financing activities'''
| style="text-align:right" | '''411'''
| style="text-align:right" | '''( 4,232 )'''
| style="text-align:right" | '''130,947'''
|-
| style="text-align:left" | '''Net increase (decrease) in cash and cash equivalents and restricted cash'''
| style="text-align:right" | '''41,589'''
| style="text-align:right" | '''57,189'''
| style="text-align:right" | '''( 24,675 )'''
|-
| style="text-align:left" | Cash and cash equivalents and restricted cash at beginning of period (1)
Line 3,500 ⟶ 3,527:
| style="text-align:right" | 125,011
|-
| style="text-align:left" | '''Cash and cash equivalents and restricted cash at end of period (1)'''
| style="text-align:right" | '''199,114'''
| style="text-align:right" | '''157,525'''
| style="text-align:right" | '''100,336'''
|-
| style="text-align:left" | '''Supplemental disclosure of cash flow information:'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 3,860 ⟶ 3,887:
| style="text-align:right" | ( 46,707 )
|-
| style="text-align:left" | '''Net balance at December 31, 2025'''
| style="text-align:right" | '''46,756'''
| style="text-align:right" | '''6,781'''
| style="text-align:right" | '''10,204'''
| style="text-align:right" | '''1,993'''
| style="text-align:right" | '''65,734'''
|}
</div>
Line 3,901 ⟶ 3,928:
| style="text-align:right" | ( 46,707 )
|-
| style="text-align:left" | '''Net balance at December 31, 2024'''
| style="text-align:right" | '''46,756'''
| style="text-align:right" | '''6,781'''
| style="text-align:right" | '''10,204'''
| style="text-align:right" | '''1,993'''
| style="text-align:right" | '''65,734'''
|}
</div>
Line 3,956 ⟶ 3,983:
| style="text-align:right" | ( 1,308 )
|-
| style="text-align:left" | '''Net balance at December 31, 2025'''
| style="text-align:right" | '''7,288'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''999'''
| style="text-align:right" | '''14,019'''
| style="text-align:right" | '''22,306'''
|}
</div>
Line 4,004 ⟶ 4,031:
| style="text-align:right" | ( 1,087 )
|-
| style="text-align:left" | '''Net balance at December 31, 2024'''
| style="text-align:right" | '''6,596'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''999'''
| style="text-align:right" | '''14,019'''
| style="text-align:right" | '''21,614'''
|}
</div>
 
====== AmortizationFuture amortization of intangible assets ======
 
<div style="overflow-x:auto">
Line 4,282 ⟶ 4,309:
</div>
 
====== Fixed maturity securities, available-for-sale, by contractual maturity at December 31, 2025 ======
 
<div style="overflow-x:auto">
Line 4,397 ⟶ 4,424:
</div>
 
====== Fixed maturity securities, available-for-sale, by contractual maturity at December 31, 2024 ======
 
<div style="overflow-x:auto">
Line 4,532 ⟶ 4,559:
| style="text-align:right" | ( 32 )
|-
| style="text-align:left" | '''Balance at December 31, 2025'''
| style="text-align:right" | '''7,000'''
| style="text-align:right" | '''468'''
|}
</div>
Line 4,554 ⟶ 4,581:
| style="text-align:right" | ( 104 )
|-
| style="text-align:left" | '''Balance at December 31, 2024'''
| style="text-align:right" | '''243'''
|}
</div>
Line 4,628 ⟶ 4,655:
| style="text-align:right" | —
|-
| style="text-align:left" | '''Net investment gains'''
| style="text-align:right" | '''22,149'''
| style="text-align:right" | '''6,342'''
| style="text-align:right" | '''11,054'''
|}
</div>
 
====== NetProceeds unrealizedfrom investmentsales gainsof andavailable-for-sale lossessecurities ======
 
<div style="overflow-x:auto">
Line 4,656 ⟶ 4,683:
</div>
 
====== Net investment income by sourcesecurity type ======
 
<div style="overflow-x:auto">
Line 4,720 ⟶ 4,747:
| style="text-align:right" | ( 5,557 )
|-
| style="text-align:left" | '''Net investment income'''
| style="text-align:right" | '''83,619'''
| style="text-align:right" | '''80,600'''
| style="text-align:right" | '''40,340'''
|}
</div>
 
====== Components of deferredaccumulated other comprehensive income taxes(loss) ======
 
<div style="overflow-x:auto">
Line 4,917 ⟶ 4,944:
| style="text-align:right" | '''1,174'''
|-
| style="text-align:left" | '''Mortgage loans'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''9,902'''
| style="text-align:right" | '''9,902'''
|-
| style="text-align:left" | '''Short-term investments'''
| style="text-align:right" | '''264,299'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''264,299'''
|-
| style="text-align:left" | '''Derivatives'''
| style="text-align:right" | '''34,857'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''34,857'''
|-
| style="text-align:left" | '''Total'''
Line 5,039 ⟶ 5,066:
| style="text-align:right" | '''106,254'''
|-
| style="text-align:left" | '''Mortgage loans'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''26,490'''
| style="text-align:right" | '''26,490'''
|-
| style="text-align:left" | '''Short-term investments'''
| style="text-align:right" | '''274,929'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''274,929'''
|-
| style="text-align:left" | '''Total'''
Line 5,059 ⟶ 5,086:
</div>
 
====== Fixed maturity securities and mortgage loans asactivity of December 31,for 2025 ======
 
<div style="overflow-x:auto">
Line 5,099 ⟶ 5,126:
| style="text-align:right" | '''—'''
|-
| style="text-align:left" | '''Balance at December 31, 2025'''
| style="text-align:right" | '''150,917'''
| style="text-align:right" | '''9,902'''
|-
| style="text-align:left" | '''Total losses for the period recognized in net investment gains attributable to the change in unrealized gains or losses relating to assets held as of period end'''
Line 5,109 ⟶ 5,136:
</div>
 
====== Fixed maturity securities and mortgage loans asactivity of December 31,for 2024 ======
 
<div style="overflow-x:auto">
Line 5,145 ⟶ 5,172:
| style="text-align:right" | '''—'''
|-
| style="text-align:left" | '''Balance at December 31, 2024'''
| style="text-align:right" | '''77,920'''
| style="text-align:right" | '''26,490'''
|-
| style="text-align:left" | '''Total gains for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end'''
Line 5,193 ⟶ 5,220:
| style="text-align:right" | —
|-
| style="text-align:left" | '''Notes payable'''
| style="text-align:right" | '''471,500'''
| style="text-align:right" | '''471,958'''
| style="text-align:right" | '''100,000'''
| style="text-align:right" | '''99,200'''
|-
| style="text-align:left" | Unsecured subordinated notes
Line 5,205 ⟶ 5,232:
| style="text-align:right" | 20,541
|-
| style="text-align:left" | '''Subordinated debt, net of debt issuance costs'''
| style="text-align:right" | '''19,569'''
| style="text-align:right" | '''21,020'''
| style="text-align:right" | '''19,536'''
| style="text-align:right" | '''20,541'''
|}
</div>
Line 5,227 ⟶ 5,254:
* As of December 31, 2025 and 2024, ''no mortgage loans were not producing income'' for the previous 12 months <sup>p. 85</sup>.
 
====== Mortgage loansloan portfolio by property type ======
 
<div style="overflow-x:auto">
Line 5,248 ⟶ 5,275:
|-
| style="text-align:left" | —
| style="text-align:right" | '''9,902'''
| style="text-align:right" | '''26,490'''
|}
</div>
 
====== Mortgage loansloan portfolio by property type ======
 
<div style="overflow-x:auto">
Line 5,288 ⟶ 5,315:
|-
| style="text-align:left" | —
| style="text-align:right" | '''1,622'''
| style="text-align:right" | '''5,155'''
| style="text-align:right" | '''5,474'''
|}
</div>
Line 5,359 ⟶ 5,386:
|-
| style="text-align:left" | —
| style="text-align:right" | '''53,498'''
| style="text-align:right" | —
| style="text-align:right" | '''65,325'''
| style="text-align:right" | —
|}
Line 5,416 ⟶ 5,443:
|-
| style="text-align:left" | —
| style="text-align:right" | '''( 2,683 )'''
| style="text-align:right" | '''2,524'''
| style="text-align:right" | '''( 9,434 )'''
|}
</div>
Line 5,447 ⟶ 5,474:
|-
| style="text-align:left" | —
| style="text-align:right" | '''22,094'''
| style="text-align:right" | '''29,260'''
|}
</div>
Line 5,472 ⟶ 5,499:
| style="text-align:right" | 1,258
|-
| style="text-align:left" | '''Recorded investment balance'''
| style="text-align:right" | '''3,307'''
| style="text-align:right" | '''5,013'''
|}
</div>
Line 5,498 ⟶ 5,525:
| style="text-align:right" | 605
|-
| style="text-align:left" | '''Recorded investment balance'''
| style="text-align:right" | '''14,911'''
| style="text-align:right" | '''17,229'''
|}
</div>
Line 5,520 ⟶ 5,547:
| style="text-align:right" | 12,973
|-
| style="text-align:left" | '''Investment in indirect loans and loan collateral'''
| style="text-align:right" | '''23,867'''
| style="text-align:right" | '''33,269'''
|}
</div>
Line 5,600 ⟶ 5,627:
* This $13.6 million increase was subsequently written-off <sup>p. 89</sup>.
 
====== Premiums receivable and allowance for uncollectible premiums as of December 31,for 2025 ======
 
<div style="overflow-x:auto">
Line 5,624 ⟶ 5,651:
| style="text-align:right" | 498
|-
| style="text-align:left" | '''Balance at December 31, 2025'''
| style="text-align:right" | '''544,217'''
| style="text-align:right" | '''3,140'''
|}
</div>
 
====== Premiums receivable and allowance for uncollectible premiums as of December 31,for 2024 ======
 
<div style="overflow-x:auto">
Line 5,654 ⟶ 5,681:
| style="text-align:right" | 128
|-
| style="text-align:left" | '''Balance at December 31, 2024'''
| style="text-align:right" | '''321,641'''
| style="text-align:right" | '''2,432'''
|}
</div>
Line 5,689 ⟶ 5,716:
</div>
 
====== Reinsurance recoverables and allowance for uncollectible reinsurance for 2025 ======
 
<div style="overflow-x:auto">
{| class="wikitable fintable"
! style="text-align:left" | ($ in thousands)
! class="col-sm" style="text-align:right" | Reinsurance Recoverables, Net
! class="col-s" style="text-align:right" | Allowance for Estimated Uncollectible Reinsurance
|-
Line 5,701 ⟶ 5,728:
| style="text-align:right" | 2,295
|-
| style="text-align:left" | '''Balance at December 31, 2025'''
| style="text-align:right" | '''1,119,880'''
| style="text-align:right" | '''2,295'''
|}
</div>
 
====== Reinsurance recoverables and allowance for uncollectible reinsurance as of December 31,for 2024 ======
 
<div style="overflow-x:auto">
Line 5,727 ⟶ 5,754:
| style="text-align:right" | ( 13,585 )
|-
| style="text-align:left" | '''Balance at December 31, 2024'''
| style="text-align:right" | '''857,876'''
| style="text-align:right" | '''2,295'''
|}
</div>
Line 5,897 ⟶ 5,924:
| style="text-align:right" | '''1,459,847'''
|-
| style="text-align:left" | '''Exited business'''
| style="text-align:right" | '''( 81 )'''
| style="text-align:right" | '''( 17 )'''
| style="text-align:right" | '''( 18 )'''
|-
| style="text-align:left" | '''Total gross written premiums'''
Line 5,909 ⟶ 5,936:
</div>
 
====== Underwriting income, revenues, and expenses ======
 
<div style="overflow-x:auto">
Line 5,963 ⟶ 5,990:
| style="text-align:right" | '''758,681'''
|-
| style="text-align:left" | '''Net underwriting income'''
| style="text-align:right" | '''138,979'''
| style="text-align:right" | '''81,859'''
| style="text-align:right" | '''76,526'''
|-
| style="text-align:left" | Reconciliation of net underwriting income to net income:
Line 5,973 ⟶ 6,000:
| style="text-align:right" | —
|-
| style="text-align:left" | '''Net underwriting income'''
| style="text-align:right" | '''138,979'''
| style="text-align:right" | '''81,859'''
| style="text-align:right" | '''76,526'''
|-
| style="text-align:left" | '''Add:'''
| style="text-align:right" | —
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Net investment income
Line 6,013 ⟶ 6,045:
| style="text-align:right" | 5,364
|-
| style="text-align:left" | '''Income before income taxes'''
| style="text-align:right" | '''216,424'''
| style="text-align:right" | '''152,739'''
| style="text-align:right" | '''110,102'''
|-
| style="text-align:left" | '''Income tax expense'''
| style="text-align:right" | '''46,396'''
| style="text-align:right" | '''33,911'''
| style="text-align:right" | '''24,118'''
|-
| style="text-align:left" | '''Net income'''
| style="text-align:right" | '''170,028'''
| style="text-align:right" | '''118,828'''
| style="text-align:right" | '''85,984'''
|}
</div>
Line 6,109 ⟶ 6,141:
</div>
 
====== IncomeCurrent and deferred income tax expense ======
 
<div style="overflow-x:auto">
Line 6,131 ⟶ 6,163:
</div>
 
====== U.S.Reconciliation federal statutoryof income tax rate reconciliationexpense ======
 
<div style="overflow-x:auto">
Line 6,178 ⟶ 6,210:
| style="text-align:right" | 0.3%
|-
| style="text-align:left" | '''Effective tax rate'''
| style="text-align:right" | '''46,396'''
| style="text-align:right" | '''21.4%'''
|}
</div>
Line 6,330 ⟶ 6,362:
| style="text-align:right" | '''27,875'''
|-
| style="text-align:left" | '''Net deferred tax asset'''
| style="text-align:right" | '''27,865'''
| style="text-align:right" | '''30,486'''
|}
</div>
Line 6,352 ⟶ 6,384:
| style="text-align:right" | —
|-
| style="text-align:left" | '''Balance at the end of the period'''
| style="text-align:right" | '''654'''
| style="text-align:right" | '''586'''
|}
</div>
Line 6,389 ⟶ 6,421:
** The favorable development in short-tail/monoline specialty lines was in the property line of business, primarily from accident years 2021 and 2022 <sup>p. 95</sup>.
 
====== Reserves for lossesLoss and LAE,loss netadjustment ofexpense reinsurancereserves ======
 
<div style="overflow-x:auto">
{| class="wikitable fintable"
! style="text-align:left" | ($ in thousands)
! class="col-sm" style="text-align:right" | 2025
! class="col-sm" style="text-align:right" | 2024
! class="col-sm" style="text-align:right" | 2023
|-
| style="text-align:left" | Reserves for losses and LAE, beginning of period
Line 6,408 ⟶ 6,440:
| style="text-align:right" | ( 435,986 )
|-
| style="text-align:left" | '''Reserves for losses and LAE, beginning of period, net of reinsurance'''
| style="text-align:right" | '''1,111,537'''
| style="text-align:right" | '''859,017'''
| style="text-align:right" | '''705,771'''
|-
| style="text-align:left" | '''Incurred, net of reinsurance, related to:'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 6,433 ⟶ 6,465:
| style="text-align:right" | '''516,664'''
|-
| style="text-align:left" | '''Paid, net of reinsurance, related to:'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 6,453 ⟶ 6,485:
| style="text-align:right" | '''363,418'''
|-
| style="text-align:left" | '''Net reserves for losses and LAE, end of period'''
| style="text-align:right" | '''1,397,729'''
| style="text-align:right" | '''1,111,537'''
| style="text-align:right" | '''859,017'''
|-
| style="text-align:left" | Plus: reinsurance recoverable on unpaid claims, end of period
Line 6,463 ⟶ 6,495:
| style="text-align:right" | 455,484
|-
| style="text-align:left" | '''Reserves for losses and LAE, end of period'''
| style="text-align:right" | '''2,318,894'''
| style="text-align:right" | '''1,782,383'''
| style="text-align:right" | '''1,314,501'''
|}
</div>
Line 7,101 ⟶ 7,133:
* This claims duration data is based on disaggregated information from paid loss development tables, net of reinsurance <sup>p. 97</sup>.
 
====== Incurred losses and ALAE, net of reinsurance by accident year ======
 
<div style="overflow-x:auto">
Line 7,349 ⟶ 7,381:
</div>
 
====== Cumulative paid losses and ALAE, net of reinsurance by accident year ======
 
<div style="overflow-x:auto">
Line 7,534 ⟶ 7,566:
|-
! style="text-align:left" | Net reserves for losses and ALAE:
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
|-
| style="text-align:left" | Short-tail/Monoline Specialty Lines
Line 7,549 ⟶ 7,581:
| style="text-align:right" | 86,689
|-
| style="text-align:left" | '''Reserves for losses and ALAE, net of reinsurance'''
| style="text-align:right" | '''1,367,038'''
| style="text-align:right" | '''1,084,980'''
|-
| style="text-align:left" | '''Reinsurance recoverable on unpaid claims:'''
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | Short-tail/Monoline Specialty Lines
Line 7,569 ⟶ 7,605:
| style="text-align:right" | '''670,846'''
|-
| style="text-align:left" | '''Unallocated LAE'''
| style="text-align:right" | '''30,691'''
| style="text-align:right" | '''26,557'''
|-
| style="text-align:left" | '''Reserves for losses and LAE at end of year'''
| style="text-align:right" | '''2,318,894'''
| style="text-align:right" | '''1,782,383'''
|}
</div>
Line 7,636 ⟶ 7,672:
| style="text-align:right" | 1.3%
|-
| style="text-align:left" | '''*Supplementary information and unaudited'''
| style="text-align:right" | '''*Supplementary information and unaudited'''
| style="text-align:right" | '''*Supplementary information and unaudited'''
| style="text-align:right" | '''*Supplementary information and unaudited'''
| style="text-align:right" | '''*Supplementary information and unaudited'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 7,692 ⟶ 7,728:
| style="text-align:right" | ( 3,755 )
|-
| style="text-align:left" | '''Net commission and fee income'''
| style="text-align:right" | '''6,855'''
| style="text-align:right" | '''6,703'''
| style="text-align:right" | '''6,064'''
|}
</div>
 
====== Contract assets balance ======
 
<div style="overflow-x:auto">
Line 7,749 ⟶ 7,785:
====== 17. Reinsurance ======
 
* Premiums''Reinsurance and benefitsagreements'' are assumedused fromto assume and cededcede topremiums and benefits with other insurance companies via various reinsurance agreements <sup>p. 100</sup>.
* ''Reinsurance agreements'' increase the Company's capacity to write larger risks and maintainmanage loss exposure within its capital resources <sup>p. 100</sup>.
* The Company remains obligated for ceded amounts if reinsurers fail to meet their obligations <sup>p. 100</sup>.
* The Company entered into agreements with several reinsurers to establish ''funded trust accounts'' where the Company is the sole beneficiary <sup>p. 100</sup>.
* Tables detail the effects of reinsurance on written and earned premiums, and losses and loss adjustment expenses for the years ended December 31, 2025, 2024, and 2023 <sup>p. 100</sup>.
* These ''trust accounts'' provide additional security for collecting claim recoverables under reinsurance contracts <sup>p. 100</sup>.
* A table outlines components of reinsurance recoverables and ceded unearned premium as of December 31, 2025, and 2024 <sup>p. 100</sup>.
* The Company entereddoes agreementsnot withcarry severalthese reinsurerstrust whereaccounts fundedon trustits accountsbalance weresheet establishedas withit theonly Companygains ascustody upon the solereinsurer's failure to beneficiarypay <sup>p. 100</sup>.
* TheseThe trust''market accountsvalue provideof additionalthese trust accounts'' securitywas forapproximately collecting$233.5 claimmillion recoverablesat underDecember reinsurance31, contracts2025 <sup>p. 100</sup>.
* The Company''trust doesamount'' notwill carrybe theseperiodically trustadjusted accountsby onmutual theagreement balancebased sheet, as custody is onlyon gainedclaim uponpayments reinsurerand failureloss toreserve payrecoverables <sup>p. 100</sup>.
* TheDuring marketQ1 value2020, ofthe theseCompany trustentered accountsinto wasan approximately''LPT $233.5retroactive millionreinsurance atagreement'' December 31,with 2025R&Q <sup>p. 100</sup>.
* The trust''reinsurance amountrecoverable isfrom periodicallyR&Q'' adjustedwas by$22.7 mutualmillion agreementat basedDecember on31, claim payments and loss reserve recoverables2024 <sup>p. 100</sup>.
* DuringThe the''LPT'' firstwas quartercommuted ofeffective 2020January 31, 2025, and the Company enteredreceived into an LPT retroactivethe reinsurance agreementrecoverable balance within R&Qfull <sup>p. 100</sup>.
* TheCertain ''ceded reinsurance recoverablecontracts'' that transfer only significant timing risk and insufficient fromunderwriting R&Qrisk wasare $22.7accounted millionfor atusing Decemberthe 31,deposit 2024method <sup>p. 100</sup>.
* The LPTCompany’s ''deposit asset'' was commuted$22.7 effectivemillion Januaryat December 31, 2025, and the$25.9 Companymillion receivedat theDecember reinsurance recoverable balance in31, full2024 <sup>p. 100</sup>.
* The ''deposit asset'' was included in other assets on the Consolidated Balance Sheets <sup>p. 100</sup>.
* Certain ceded reinsurance contracts that transfer only significant timing risk and insufficient underwriting risk are accounted for using the deposit method <sup>p. 100</sup>.
* The Company’s deposit asset was $22.7 million at December 31, 2025, and $25.9 million at December 31, 2024 <sup>p. 100</sup>.
* The deposit asset was included in other assets on the Consolidated Balance Sheets <sup>p. 100</sup>.
 
====== PremiumsNet premiums and ceded losses and LAE incurred ======
 
<div style="overflow-x:auto">
Line 7,776 ⟶ 7,810:
|-
! style="text-align:left" | ($ in thousands)
! class="col-sm" style="text-align:right" | Written
! class="col-sm" style="text-align:right" | Earned
! class="col-sm" style="text-align:right" | Written
! class="col-sm" style="text-align:right" | Earned
! class="col-s" style="text-align:right" | Written
! class="col-s" style="text-align:right" | Earned
Line 7,807 ⟶ 7,841:
| style="text-align:right" | ( 520,663 )
|-
| style="text-align:left" | '''Net premiums'''
| style="text-align:right" | '''1,406,232'''
| style="text-align:right" | '''1,304,505'''
| style="text-align:right" | '''1,123,578'''
| style="text-align:right" | '''1,056,722'''
| style="text-align:right" | '''910,691'''
| style="text-align:right" | '''829,143'''
|-
| style="text-align:left" | '''Ceded losses and LAE incurred'''
| style="text-align:right" | —
| style="text-align:right" | '''697,978'''
| style="text-align:right" | —
| style="text-align:right" | '''534,295'''
| style="text-align:right" | —
| style="text-align:right" | '''337,011'''
|}
</div>
 
====== Reinsurance recoverables and ceded unearned premium ======
 
<div style="overflow-x:auto">
{| class="wikitable fintable"
! style="text-align:left" | ($ in thousands)
! class="col-sm" style="text-align:right" | 2025
! class="col-s" style="text-align:right" | 2024
|-
Line 7,849 ⟶ 7,883:
| style="text-align:right" | ( 2,295 )
|-
| style="text-align:left" | '''Reinsurance recoverables'''
| style="text-align:right" | '''1,119,880'''
| style="text-align:right" | '''857,876'''
|-
| style="text-align:left" | '''Ceded unearned premium'''
| style="text-align:right" | '''238,948'''
| style="text-align:right" | '''203,901'''
|}
</div>
Line 7,893 ⟶ 7,927:
* As of ''December 31, 2025'', the fair value of unrecognized ESPP expense was $0.3 million <sup>p. 101</sup>.
 
====== ESPPAward awardspayout byrange, type andrequisite service period, and target stock ======
 
<div style="overflow-x:auto">
Line 7,974 ⟶ 8,008:
</div>
 
====== StockWeighted-average optionexercise activityprice and stock outstanding ======
 
<div style="overflow-x:auto">
Line 7,990 ⟶ 8,024:
| style="text-align:right" | ( 219 )
|-
| style="text-align:left" | '''Outstanding at December 31, 2025'''
| style="text-align:right" | —
| style="text-align:right" | '''759,771'''
|}
</div>
 
====== OutstandingStock stockoutstanding at year-end ======
 
<div style="overflow-x:auto">
Line 8,006 ⟶ 8,040:
| style="text-align:right" | 759,990
|-
| style="text-align:left" | '''Outstanding at December 31, 2024'''
| style="text-align:right" | '''759,990'''
|}
</div>
 
====== WeightedNon-average grant-date fair value ofvested stock and stock units ======
 
<div style="overflow-x:auto">
Line 8,017 ⟶ 8,051:
! style="text-align:left" | —
! class="col-s" style="text-align:right" | Weighted-Average Grant-Date Fair Value
! class="col-sm" style="text-align:right" | Stock and Stock Units
|-
| style="text-align:left" | Non-vested at January 1, 2025
Line 8,035 ⟶ 8,069:
| style="text-align:right" | ( 53,247 )
|-
| style="text-align:left" | '''Non-vested at December 31, 2025'''
| style="text-align:right" | '''27.06'''
| style="text-align:right" | '''1,135,468'''
|-
| style="text-align:left" | Non-vested at January 1, 2024
Line 8,055 ⟶ 8,089:
| style="text-align:right" | ( 102,640 )
|-
| style="text-align:left" | '''Non-vested at December 31, 2024'''
| style="text-align:right" | '''19.06'''
| style="text-align:right" | '''1,325,483'''
|-
| style="text-align:left" | Non-vested at January 1, 2023
Line 8,075 ⟶ 8,109:
| style="text-align:right" | ( 35,658 )
|-
| style="text-align:left" | '''Non-vested at December 31, 2023'''
| style="text-align:right" | '''15.13'''
| style="text-align:right" | '''1,445,449'''
|}
</div>
Line 8,086 ⟶ 8,120:
====== 19. Earnings Per Share ======
 
* The tabletables setsset forth the computation of ''basic and diluted net earnings per share'' for the years ended December 31, 2025, 2024, and 2023 <sup>p. 102</sup>.
* The tabletables presentspresent ''anti-dilutive instruments'' excluded from the calculation of diluted weighted-average common share equivalents for the years ended December 31, 2025, 2024, and 2023 <sup>p. 102</sup>.
* The tabletables presentspresent ''common share equivalents of contingently issuable instruments'' excluded from basic earnings per share for the years ended December 31, 2025, 2024, and 2023 <sup>p. 102</sup>.
 
====== Anti-dilutive instruments excluded from diluted weighted-average common share equivalents ======
Line 8,100 ⟶ 8,134:
|-
! style="text-align:left" | Numerator
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
|-
| style="text-align:left" | Net income
Line 8,109 ⟶ 8,143:
| style="text-align:right" | 85,984
|-
| style="text-align:left" | '''Less: Undistributed income allocated to participating securities'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''( 1,677 )'''
|-
| style="text-align:left" | Net income attributable to common stockholders (numerator for basic earnings per share)
Line 8,124 ⟶ 8,158:
| style="text-align:right" | 1,677
|-
| style="text-align:left" | '''Net income (numerator for diluted earnings per share under the two-class method)'''
| style="text-align:right" | '''170,028'''
| style="text-align:right" | '''118,828'''
| style="text-align:right" | '''85,984'''
|-
| style="text-align:left" | Basic weighted-average common shares
Line 8,154 ⟶ 8,188:
| style="text-align:right" | 135,972
|-
| style="text-align:left" | '''Diluted weighted-average common share equivalents'''
| style="text-align:right" | '''41,808,046'''
| style="text-align:right" | '''41,377,460'''
| style="text-align:right" | '''38,317,534'''
|-
| style="text-align:left" | '''Basic earnings per share'''
| style="text-align:right" | '''4.21'''
| style="text-align:right" | '''2.97'''
| style="text-align:right" | '''2.34'''
|-
| style="text-align:left" | Diluted earnings per share
Line 8,171 ⟶ 8,205:
</div>
 
====== Stock units and options for 2023-2025 ======
 
<div style="overflow-x:auto">
Line 8,192 ⟶ 8,226:
</div>
 
====== Common shares for 2023-2025 ======
 
<div style="overflow-x:auto">
Line 8,217 ⟶ 8,251:
* The Company sponsors the ''401(k) Plan'' (the “Plan”), which is available to substantially all its employees <sup>p. 103</sup>.
* The Plan is subject to provisions of the ''Employee Retirement Income Security Act of 1974'' <sup>p. 103</sup>.
* The Company matches employee contributions on amakes ''discretionary basismatching contributions'' to the Plan <sup>p. 103</sup>.
* ''MatchingCompany matching contributions'' to the Plan were:
** ''2025'': USD 3.9m <sup>p. 103</sup>
** ''2024'': USD 3.2m <sup>p. 103</sup>
Line 8,225 ⟶ 8,259:
====== Riscom ======
 
* ''RISCOM'' provides wholesalethe brokerageCompany serviceswith towholesale thebrokerage Companyservices <sup>p. 104</sup>.
* ''RISCOM and the Company'' have a managing general agency agreement <sup>p. 104</sup>.
* The ''Company'' holds a ''20% ownership interest'' in RISCOM <sup>p. 104</sup>.
* ''Premiums receivable'' as of December 31, 2025, were USD $13.9m9 million <sup>p. 104</sup>.
* ''Premiums receivable'' as of December 31, 2024, were USD $12.6m6 million <sup>p. 104</sup>.
 
====== Premiums receivable and commissions ======
 
<div style="overflow-x:auto">
Line 8,264 ⟶ 8,298:
* The Company is also a defendant in legal actions concerning bad faith claims, disputes with third parties, or alleged errors and omissions <sup>p. 106</sup>.
* Accruals for these items are recorded when losses are probable and reasonably estimable <sup>p. 106</sup>.
* Based on present information, insurance coverage availability, and advice from legal counsel, the Company believes the resolution of these matters will not have a material adverse effect on its consolidated financial position, results of operations, or cash flows, individually or in the aggregate <sup>p. 106</sup>.
 
====== Indemnification ======
Line 8,321 ⟶ 8,355:
====== Remediation of Material Weakness in Internal Control Over Financial Reporting ======
 
* Management''Material concludedweakness'' that itsin internal control over financial reporting was not effectiveidentified as of December 31, 2024, duerelated to materialineffective implementation of information technology general controls (ITGCs) in user access for systems supporting financial reporting weaknessesprocesses <sup>p. 112</sup>.
* Related process-level IT dependent manual and automated controls relying on affected ITGCs or information from IT systems with affected ITGCs were also deemed ineffective <sup>p. 112</sup>.
* A ''material weakness'' existed as of December 31, 2024, related to the ineffective implementation of information technology general controls (ITGCs) in user access for systems supporting financial reporting processes <sup>p. 112</sup>.
* During the year ended December 31, 2025, management took actions to remediate control deficiencies <sup>p. 112</sup>.
* Related ''process-level IT dependent manual and automated controls'' that rely on affected ITGCs or information from IT systems with affected ITGCs were also deemed ineffective <sup>p. 112</sup>.
* DuringRemediation actions included enhancing the yearIT endedcompliance Decemberoversight 31,function 2025,and managementexpanding tookthe actionsteam with ITGC todesign remediateand theseimplementation deficienciesexperience <sup>p. 112</sup>.
* RemediationA actionstraining includedprogram enhancingaddressing theITGCs ''ITand compliancepolicies oversightwas function''developed, andeducating expandingcontrol theowners teamon with ITGC designprinciples and implementation experiencerequirements <sup>p. 112</sup>.
* AProcedures ''trainingwere program''implemented addressingto ITGCsdevelop and policiesmaintain wasdocumentation developed,of educatingunderlying controlITGCs ownersto onpromote principlesknowledge transfer upon IT personnel and requirementsfunction changes <sup>p. 112</sup>.
* ProceduresAn wereIT implementedmanagement to ''developreview and maintaintesting documentation''procedures ofwere underlying ITGCsimplemented to promotemonitor knowledge transfer upon IT personnel and function changesITGCs <sup>p. 112</sup>.
* ''ITQuarterly managementreporting reviewon andremediation testingmeasures procedures''was were implementedprovided to monitorthe Audit Committee of the board of ITGCsdirectors <sup>p. 112</sup>.
* Management believes the measures remediated the material weakness and concluded that ''internal control over financial reporting'' was effective at a reasonable assurance level as of December 31, 2025 <sup>p. 112</sup>.
* ''Quarterly reporting'' on remediation measures was provided to the Audit Committee of the board of directors <sup>p. 112</sup>.
* ManagementThe believesassessment theof measureseffectiveness remediatedof the material weakness and concluded that ''internal control over financial reporting wasas effective''of atDecember a31, reasonable2025, assurancewas levelconducted asunder the supervision and participation of Decembersenior 31management, 2025including the Chief Executive Officer and Chief Financial Officer <sup>p. 112</sup>.
* The assessment ofused effectivenesscriteria asset offorth Decemberby 31,the 2025,Committee wasof conductedSponsoring underOrganizations of the supervision and participation of seniorTreadway management,Commission includingin the ChiefInternal ExecutiveControl Officer— andIntegrated ChiefFramework Financial(2013 OfficerFramework) <sup>p. 112</sup>.
* Based on this assessment, management concluded that ''internal control over financial reporting'' was effective as of December 31, 2025 <sup>p. 112</sup>.
* The assessment used criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in the ''Internal Control — Integrated Framework (2013 Framework)'' <sup>p. 112</sup>.
* The effectiveness of internal control over financial reporting as of December 31, 2025, was audited by ''Ernst & Young, LLP'', the Company’s independent registered public accounting firm <sup>p. 112</sup>.
* Ernst & Young, LLP's report is titled “Report of Independent Registered Public Accounting Firm-Opinion on Internal Control over Financial Reporting” <sup>p. 112</sup>.
 
====== Changes in Internal Control over Financial Reporting ======
Line 8,384 ⟶ 8,419:
* Items marked with a plus (+) indicate a management contract or compensatory plan or arrangement <sup>p. 121</sup>.
 
====== Exhibits, financialFinancial statement schedules ======
 
<div style="overflow-x:auto">
Line 8,414 ⟶ 8,449:
</div>
 
====== Exhibit numbers and descriptionsExhibits ======
 
<div style="overflow-x:auto">
Line 8,453 ⟶ 8,488:
</div>
 
====== Exhibit numbers and descriptionsExhibits ======
 
<div style="overflow-x:auto">
Line 8,519 ⟶ 8,554:
</div>
 
====== Exhibit numbers and descriptionsExhibits ======
 
<div style="overflow-x:auto">
Line 8,579 ⟶ 8,614:
</div>
 
====== Exhibit numbers and descriptionsExhibits ======
 
<div style="overflow-x:auto">
Line 8,624 ⟶ 8,659:
</div>
 
====== Fixed maturity securities by type ======
 
<div style="overflow-x:auto">
Line 8,698 ⟶ 8,733:
| style="text-align:right" | '''1,174'''
|-
| style="text-align:left" | '''Mortgage loans'''
| style="text-align:right" | '''10,093'''
| style="text-align:right" | '''9,902'''
| style="text-align:right" | '''9,902'''
|-
| style="text-align:left" | '''Other long-term investments'''
| style="text-align:right" | '''37,290'''
| style="text-align:right" | '''58,650'''
| style="text-align:right" | '''58,650'''
|-
| style="text-align:left" | '''Short-term investments'''
| style="text-align:right" | '''264,299'''
| style="text-align:right" | '''264,299'''
| style="text-align:right" | '''264,299'''
|-
| style="text-align:left" | '''Total'''
Line 8,720 ⟶ 8,755:
</div>
 
====== Assets as of December 31 ======
 
<div style="overflow-x:auto">
Line 8,736 ⟶ 8,771:
|-
! style="text-align:left" | Investments:
! class="col-sm" style="text-align:right" | —
! class="col-s" style="text-align:right" | —
|-
Line 8,771 ⟶ 8,806:
| style="text-align:right" | '''916,645'''
|-
| style="text-align:left" | '''Liabilities and Stockholders’ Equity'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 8,791 ⟶ 8,826:
| style="text-align:right" | '''122,646'''
|-
| style="text-align:left" | '''Stockholders’ Equity:'''
| style="text-align:right" | —
| style="text-align:right" | —
|-
| style="text-align:left" | '''Stockholders’ equity'''
| style="text-align:right" | '''1,009,565'''
| style="text-align:right" | '''793,999'''
|-
| style="text-align:left" | '''Total liabilities and stockholders’ equity'''
Line 8,809 ⟶ 8,844:
* See accompanying notes to financial statements <sup>p. 122</sup>.
 
====== Revenues and expenses for years ended December 31 ======
 
<div style="overflow-x:auto">
Line 8,871 ⟶ 8,906:
| style="text-align:right" | '''10,579'''
|-
| style="text-align:left" | '''Loss before income tax expense'''
| style="text-align:right" | '''( 29,872 )'''
| style="text-align:right" | '''( 25,165 )'''
| style="text-align:right" | '''( 7,747 )'''
|-
| style="text-align:left" | Income tax expense
Line 8,881 ⟶ 8,916:
| style="text-align:right" | 6,808
|-
| style="text-align:left" | '''Loss before equity in earnings of subsidiaries'''
| style="text-align:right" | '''( 75,732 )'''
| style="text-align:right" | '''( 58,743 )'''
| style="text-align:right" | '''( 14,555 )'''
|-
| style="text-align:left" | '''Equity in undistributed earnings of subsidiaries'''
| style="text-align:right" | '''245,760'''
| style="text-align:right" | '''177,571'''
| style="text-align:right" | '''100,539'''
|-
| style="text-align:left" | '''Net income'''
| style="text-align:right" | '''170,028'''
| style="text-align:right" | '''118,828'''
| style="text-align:right" | '''85,984'''
|}
</div>
Line 8,919 ⟶ 8,954:
* ''Cash and cash equivalents at end of period'' were USD 0 for the year ended December 31, 2021 <sup>p. 123</sup>.
 
====== Cash flows for years ended December 31 ======
 
<div style="overflow-x:auto">
Line 8,934 ⟶ 8,969:
! class="col-s" style="text-align:right" | —
! class="col-s" style="text-align:right" | —
! class="col-sm" style="text-align:right" | —
|-
| style="text-align:left" | Net income
Line 8,946 ⟶ 8,981:
| style="text-align:right" | ( 95,947 )
|-
| style="text-align:left" | '''Net cash used in operating activities'''
| style="text-align:right" | '''( 5,741 )'''
| style="text-align:right" | '''( 2,735 )'''
| style="text-align:right" | '''( 9,963 )'''
|-
| style="text-align:left" | Purchase of intangible assets and goodwill
Line 8,971 ⟶ 9,006:
| style="text-align:right" | ( 10,569 )
|-
| style="text-align:left" | '''Net cash provided by (used in) investing activities'''
| style="text-align:right" | '''5,887'''
| style="text-align:right" | '''5,093'''
| style="text-align:right" | '''( 126,869 )'''
|-
| style="text-align:left" | Repayment of stock notes receivable
Line 9,001 ⟶ 9,036:
| style="text-align:right" | 710
|-
| style="text-align:left" | '''Net cash provided by (used in) financing activities'''
| style="text-align:right" | '''411'''
| style="text-align:right" | '''( 2,439 )'''
| style="text-align:right" | '''130,947'''
|-
| style="text-align:left" | '''Net increase (decrease) in cash and cash equivalents and restricted cash'''
| style="text-align:right" | '''557'''
| style="text-align:right" | '''( 81 )'''
| style="text-align:right" | '''( 5,885 )'''
|-
| style="text-align:left" | Cash and cash equivalents and restricted cash at beginning of year
Line 9,016 ⟶ 9,051:
| style="text-align:right" | 8,909
|-
| style="text-align:left" | '''Cash and cash equivalents and restricted cash at end of year'''
| style="text-align:right" | '''3,500'''
| style="text-align:right" | '''2,943'''
| style="text-align:right" | '''3,024'''
|-
| style="text-align:left" | '''Supplemental disclosure of cash flow information:'''
| style="text-align:right" | —
| style="text-align:right" | —
Line 9,051 ⟶ 9,086:
* ''Other financial instruments'' are exempt from fair value disclosure requirements as they qualify as insurance-related products <sup>p. 125</sup>.
 
====== NotesPromissory payablenote andfair promissory notevalue ======
 
<div style="overflow-x:auto">
Line 9,079 ⟶ 9,114:
</div>
 
====== Gross,Reinsurance ceded, assumed, and net amountsactivity ======
 
<div style="overflow-x:auto">
Line 9,093 ⟶ 9,128:
! style="text-align:left" | ($ in thousands)
! class="col-s" style="text-align:right" | Accident & Health
! class="col-sm" style="text-align:right" | Property & Casualty
! class="col-s" style="text-align:right" | Accident & Health
! class="col-sm" style="text-align:right" | Property & Casualty
! class="col-s" style="text-align:right" | Accident & Health
! class="col-s" style="text-align:right" | Property & Casualty
Line 9,123 ⟶ 9,158:
| style="text-align:right" | 218,649
|-
| style="text-align:left" | '''Net amount'''
| style="text-align:right" | '''110,291'''
| style="text-align:right" | '''1,295,941'''
| style="text-align:right" | '''86,570'''
| style="text-align:right" | '''1,037,008'''
| style="text-align:right" | '''72,611'''
| style="text-align:right" | '''838,080'''
|-
| style="text-align:left" | '''Percentage of amount assumed to net'''
| style="text-align:right" | '''—%'''
| style="text-align:right" | '''37.2%'''
| style="text-align:right" | '''—%'''
| style="text-align:right" | '''27.4%'''
| style="text-align:right" | '''—%'''
| style="text-align:right" | '''26.1%'''
|}
</div>
 
====== Valuation allowances and allowances for uncollectible amounts ======
 
<div style="overflow-x:auto">
Line 9,160 ⟶ 9,195:
| style="text-align:right" | —
|-
| style="text-align:left" | '''Charged to costs and expenses'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''748'''
|-
| style="text-align:left" | Amounts written off
Line 9,175 ⟶ 9,210:
| style="text-align:right" | 100
|-
| style="text-align:left" | '''Balance at December 31, 2023'''
| style="text-align:right" | '''586'''
| style="text-align:right" | '''2,295'''
| style="text-align:right" | '''964'''
|-
| style="text-align:left" | '''Charged to costs and expenses'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''13,585'''
| style="text-align:right" | '''3,235'''
|-
| style="text-align:left" | Amounts written off
Line 9,195 ⟶ 9,230:
| style="text-align:right" | 128
|-
| style="text-align:left" | '''Balance at December 31, 2024'''
| style="text-align:right" | '''586'''
| style="text-align:right" | '''2,295'''
| style="text-align:right" | '''2,432'''
|-
| style="text-align:left" | '''Charged to costs and expenses'''
| style="text-align:right" | '''68'''
| style="text-align:right" | '''—'''
| style="text-align:right" | '''2,351'''
|-
| style="text-align:left" | Amounts written off
Line 9,215 ⟶ 9,250:
| style="text-align:right" | 498
|-
| style="text-align:left" | '''Balance at December 31, 2025'''
| style="text-align:right" | '''654'''
| style="text-align:right" | '''2,295'''
| style="text-align:right" | '''3,140'''
|}
</div>
Line 9,304 ⟶ 9,339:
* This report was signed by the indicated persons on behalf of the Registrant, in their capacities, and on the dates indicated, pursuant to the requirements of the Securities Exchange Act of 1934 <sup>p. 126</sup>.
 
====== Registrant's signature and date ======
 
<div style="overflow-x:auto">
Line 9,319 ⟶ 9,354:
</div>
 
====== Signatures, titles, and datestitles ======
 
<div style="overflow-x:auto">
Line 9,331 ⟶ 9,366:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Andrew Robinson'''
| style="text-align:left" | '''(Principal Executive Officer)'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Mark Haushill
Line 9,339 ⟶ 9,374:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Mark Haushill'''
| style="text-align:left" | '''(Principal Financial and Accounting Officer)'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Gena Ashe
Line 9,347 ⟶ 9,382:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Gena Ashe'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Robert Creager
Line 9,355 ⟶ 9,390:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Robert Creager'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Marcia Dall
Line 9,363 ⟶ 9,398:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Marcia Dall'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ James Hays
Line 9,371 ⟶ 9,406:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''James Hays'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Anthony J. Kuczinski
Line 9,379 ⟶ 9,414:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Anthony J. Kuczinski'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Michael Morrissey
Line 9,387 ⟶ 9,422:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Michael Morrissey'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Christopher L. Peirce
Line 9,395 ⟶ 9,430:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Christopher L. Peirce'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|-
| style="text-align:left" | /s/ Katharine Terry
Line 9,403 ⟶ 9,438:
| class="col-s" style="text-align:right" | March 2, 2026
|-
| style="text-align:left" | '''Katharine Terry'''
| style="text-align:left" | '''Director'''
| class="col-s" style="text-align:right" | '''March 2, 2026'''
|}
</div>
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