Bowhead Specialty Holdings Inc. (BSHI) reported significant growth in its financial performance for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. The company, which specializes in property and casualty insurance, saw gross written premiums increase to $196.98 million in Q3 2024, up 32.3% from $148.92 million in Q3 2023. For the nine months, gross written premiums reached $510.95 million, a 41.4% increase from $361.37 million in the prior year.

Net written premiums also rose, with Q3 2024 figures at $128.33 million, a 29.2% increase from $99.34 million in Q3 2023. For the nine-month period, net written premiums were $331.24 million, up 38.2% from $239.73 million. Net earned premiums for Q3 2024 were $105.18 million, reflecting a 48.4% increase from $70.87 million in Q3 2023, while for the nine months, net earned premiums totaled $278.25 million, a 48.1% increase from $187.91 million.

Total revenues for Q3 2024 reached $116.76 million, a 53.4% increase from $76.09 million in Q3 2023. For the nine months, total revenues were $306.33 million, up 52.7% from $200.59 million. The company reported net income of $12.09 million for Q3 2024, compared to $8.71 million in Q3 2023, and net income for the nine months was $24.64 million, up from $20.26 million in the prior year.

Despite the positive revenue growth, Bowhead experienced an increase in net losses and loss adjustment expenses, which rose to $67.82 million in Q3 2024 from $42.80 million in Q3 2023. The loss ratio for Q3 2024 was 64.5%, up from 60.4% in the same quarter of the previous year. The company’s total expenses for Q3 2024 were $100.94 million, a 55.7% increase from $64.83 million in Q3 2023.

Strategically, Bowhead completed an initial public offering (IPO) on May 28, 2024, raising approximately $131 million. The company also entered into a $75 million senior secured revolving credit facility in April 2024, which remains undrawn as of September 30, 2024. The total stockholders' equity increased to $364.67 million as of September 30, 2024, up from $192.08 million at the end of 2023, primarily due to the IPO proceeds.

Bowhead's investment portfolio as of September 30, 2024, totaled $891.3 million, with a significant portion in fixed maturity securities. The company reported net investment income of $11.49 million for Q3 2024, a substantial increase from $5.19 million in Q3 2023, attributed to higher average balances and yields on investments.

Overall, Bowhead Specialty Holdings Inc. demonstrated robust growth in premiums and revenues, alongside strategic financial maneuvers, despite facing challenges with rising loss expenses.

About Bowhead Specialty Holdings Inc.

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