Bowhead Specialty Holdings Inc.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
BOW$34.06-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0002002473-25-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001628280-25-048878
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 234 previous paragraphs and 240 current paragraphs.
172 unchanged; 54 reworded; 14 added; 7 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Net realized investment losses
Current report
NM - Percentage change is not meaningful.
Current report
Gross written premiums increased $34.5 million, or 17.5%, to $231.5 million for the three months ended September 30, 2025 from $197.0 million for the three months ended September 30, 2024. The increase in gross written premiums was driven by our increasing renewal book and the continued growth in our platform across all four divisions. Our Casualty division led the growth, primarily from our Excess Casualty portfolio, followed by the growth in our Baleen Specialty division.
Current report
For the three months ended September 30, 2025 and 2024, E&S(1) business made up 81.5% and 82.0% of gross written premiums, respectively, while admitted business made up 18.5% and 18.0%, respectively. The 0.5 point decrease in the proportion of E&S premiums was primarily attributable to an increase in admitted business written in our Casualty division related to real estate excess liability coverage written through a risk purchasing group.
Current report
Net written premiums increased $20.7 million, or 16.1%, to $149.0 million for the three months ended September 30, 2025 from $128.3 million for the three months ended September 30, 2024. The increase in net written premiums was primarily due to the growth in gross written premiums for the three months ended September 30, 2025. This growth was partially offset by the increase in ceded written premiums as a result of the May 1, 2025 increase in our quota share and excess of loss cession rates, covering all lines except cyber liability.
Current report
(1) E&S % previously disclosed did not include business written on a facultative reinsurance basis, which is free of rate and policy form restrictions, and provides the flexibility to rapidly adjust to emerging market opportunities.
Current report
Nine Months Ended September 30, 2025 compared to Nine Months Ended September 30, 2024
Current report
NM - Percentage change is not meaningful.
Current report
(2)For the nine months ended September 30, 2025 and 2024, net income and adjusted net income are annualized to arrive at return on equity and adjusted return on equity.
Current report
Gross written premiums increased $127.8 million, or 25.0%, to $638.7 million for the nine months ended September 30, 2025 from $510.9 million for the nine months ended September 30, 2024. The increase in gross written premiums was driven by our increasing renewal book and the continued growth in our platform across all four divisions. Our Casualty division led the growth, primarily from our Excess Casualty portfolio.
Current report
For the nine months ended September 30, 2025 and 2024, E&S(1) business made up 80.0% and 80.3% of gross written premiums, respectively, while admitted business made up 20.0% and 19.7%, respectively. The 0.3 point decrease in the proportion of E&S premiums was primarily attributable to an increase in admitted business written in our Casualty division related to real estate excess liability coverage written through a risk purchasing group.
Current report
(1) E&S % previously disclosed did not include business written on a facultative reinsurance basis, which is free of rate and policy form restrictions, and provides the flexibility to rapidly adjust to emerging market opportunities.
Current report
Our loss ratio was 66.3% for the nine months ended September 30, 2025 compared to 65.1% for the nine months ended September 30, 2024, or an increase of 1.2 points.
Current report
(1)For the three and nine months ended September 30, 2025 and 2024, net income and adjusted net income are annualized to arrive at return on equity and adjusted return on equity.
Removed paragraphs (7)
Previous report
Net realized investment (losses) gains
Previous report
Gross written premiums increased $56.8 million, or 32.4%, to $232.4 million for the three months ended June 30, 2025 from $175.5 million for the three months ended June 30, 2024. The increase in gross written premiums was driven by our increasing renewal book and the continued growth in our platform across all four divisions. For the three months ended June 30, 2025 and 2024, E&S business made up 75.6% and 75.8% of gross written premiums, respectively, while admitted business made up 24.4% and 24.2%, respectively. The 0.2 point decrease in the proportion of E&S business written was driven by the decrease in proportion of Casualty division gross written premium, where policies are primarily written on an E&S basis.
Previous report
Six Months Ended June 30, 2025 compared to Six Months Ended June 30, 2024
Previous report
(2)For the six months ended June 30, 2025 and 2024, net income and adjusted net income are annualized to arrive at return on equity and adjusted return on equity.
Previous report
Gross written premiums increased $93.2 million, or 29.7%, to $407.2 million for the six months ended June 30, 2025 from $314.0 million for the six months ended June 30, 2024. The increase in gross written premiums was driven by our increasing renewal book and the continued growth in our platform across all four divisions. For the six months ended June 30, 2025 and 2024, E&S business made up 75.9% and 75.5% of gross written premiums, respectively, while admitted business made up 24.1% and 24.5%, respectively. The 0.4 point increase in the proportion of E&S business written was driven by the increase in proportion of Casualty division gross written premium, where policies are primarily written on an E&S basis.
Previous report
Our loss ratio was 66.5% for the six months ended June 30, 2025 compared to 65.5% for the six months ended June 30, 2024, or an increase of 1.0 point due to a 0.8 point increase in our current accident year and a 0.2 point increase in our prior accident year loss ratio.
Previous report
(1)For the three and six months ended June 30, 2025 and 2024, net income and adjusted net income are annualized to arrive at return on equity and adjusted return on equity.
Reworded paragraphs (54)
Previous wording
Net realized investment (losses) gains are a function of the difference between the amortized cost of securities sold and the proceeds received by the Company upon the sale of a security. Unrealized investment gains (losses) on fixed maturity securities are recorded within accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets.
Current wording
Net realized investment losses are a function of the difference between the amortized cost of securities sold and the proceeds received by the Company upon the sale of a security. Unrealized investment gains (losses) on fixed maturity securities are recorded within accumulated other comprehensive gain (loss) on the Condensed Consolidated Balance Sheets.
Previous wording
Non-operating expenses represent expenses related to various transactions that we consider to be unique and non-recurring in nature, including expenses related to our IPO, secondary offering, and other such offerings or registrations.
Current wording
Non-operating expenses represent expenses related to various transactions that we consider to be unique and non-recurring in nature, such as expenses related to our IPO, secondary offerings, and other such offerings or registrations.
Previous wording
Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding the impact of net investment income, net realized investment (losses) gains, other insurance-related income, non-operating expenses, warrant expense, credit facility interest expenses and fees, foreign exchange losses (gains), and certain strategic initiatives. See “—Reconciliation of Non-GAAP Financial Measures” for a reconciliation of underwriting income to income before income taxes, which is the most directly comparable financial metric prepared in accordance with U.S. GAAP.
Current wording
Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding the impact of net investment income, net realized investment losses, other insurance-related income, non-operating expenses, warrant expense, credit facility interest expenses and fees, foreign exchange losses, and certain strategic initiatives. See “—Reconciliation of Non-GAAP Financial Measures” for a reconciliation of underwriting income to income before income taxes, which is the most directly comparable financial metric prepared in accordance with U.S. GAAP.
Previous wording
Adjusted net incomeis a non-GAAP financial measure defined as net income excluding the impact of net realized investment (losses) gains, non-operating expenses, foreign exchange (gains) losses, and certain strategic initiatives. See “—Reconciliation of Non-GAAP Financial Measures” for a reconciliation of adjusted net income to net income, which is the most directly comparable financial metric prepared in accordance with U.S. GAAP.
Current wording
Adjusted net incomeis a non-GAAP financial measure defined as net income excluding the impact of net realized investment losses, non-operating expenses, foreign exchange (gains) losses, and certain strategic initiatives. See “—Reconciliation of Non-GAAP Financial Measures” for a reconciliation of adjusted net income to net income, which is the most directly comparable financial metric prepared in accordance with U.S. GAAP.
Previous wording
Net earned premiums increased $29.1 million, or 32.2%, to $119.1 million for the three months ended June 30, 2025 from $90.1 million for the three months ended June 30, 2024. The increase in net earned premiums was primarily due to the earning of increased gross written premiums offset by the earning of increased ceded written premiums under our ceded reinsurance treaties.
Current wording
Net earned premiums increased $23.2 million, or 22.1%, to $128.4 million for the three months ended September 30, 2025 from $105.2 million for the three months ended September 30, 2024. The increase in net earned premiums was primarily due to the earning of increased gross written premiums offset by the earning of increased ceded written premiums under our ceded reinsurance treaties.
Previous wording
Our loss ratio was 66.2% for the three months ended June 30, 2025 compared to 65.5% for the three months ended June 30, 2024, or an increase of 0.7 points, due to a 0.6 point increase in our current accident year and a 0.1 point increase in our prior accident year loss ratio.
Current wording
Our loss ratio was 65.9% for the three months ended September 30, 2025 compared to 64.5% for the three months ended September 30, 2024, or an increase of 1.4 points.
Previous wording
The 0.6 point increase in our current accident year loss ratio was driven by changes in our portfolio mix. During the three months ended June 30, 2025, our Casualty division, which has comparatively higher current accident year industry loss ratios, comprised a larger proportion of our net earned premiums compared to the prior period.
Current wording
The 0.3 point increase in our current accident year loss ratio was driven by changes in our portfolio mix. During the three months ended September 30, 2025, our Casualty division, which has comparatively higher current accident year industry loss ratios, comprised a larger proportion of our net earned premiums compared to the prior period.
Previous wording
The 0.2 point increase in our prior accident year loss ratio was driven by expected loss ratios applied to audit premiums earned in the period but associated with prior accident years. This development was not based on actual losses settling for more than reserved, and did not represent an increase in estimated reserves on unresolved claims.
Current wording
The 1.1 point increase in our prior accident year loss ratio was due to expected loss ratios applied to audit premiums fully earned in the period but associated with prior accident years. The increase was not based on actual losses settling for more than reserved, and did not represent an increase in estimated reserves on unresolved claims.
Previous wording
Our expense ratio was 30.6% for the three months ended June 30, 2025 compared to 33.8% for the three months ended June 30, 2024, which was a decrease of 3.2 points. The decrease in our expense ratio was primarily driven by the 3.7 point decrease in our operating expenses ratio and a 0.4 point increase in other insurance-related income, which contributed to the lowering of our expense ratio. These improvements were partially offset by the 0.9 point increase in our net acquisition costs ratio.
Current wording
Our expense ratio was 29.5% for the three months ended September 30, 2025 compared to 29.9% for the three months ended September 30, 2024, which was a decrease of 0.4 points. The decrease in our expense ratio was primarily driven by the 1.2 point decrease in our operating expenses ratio and a 0.3 point increase in other insurance-related income, which contributed to the lowering of our expense ratio. These improvements were partially offset by the 1.1 point increase in our net acquisition costs ratio.
Previous wording
The increase in our net acquisition costs ratio was driven by the increase in earned broker commissions due to changes in our portfolio mix, and to a lesser extent, the reduction in earned ceding commissions from our ceded reinsurance treaties. Gross acquisition costs as a percentage of gross earned premiums was 16.1% for the three months ended June 30, 2025 compared to 15.7% for the three months ended June 30, 2024, and ceded earned commissions as a percentage of ceded earned premium was 29.0% for the three months ended June 30, 2025 and 2024.
Current wording
The increase in our net acquisition costs ratio was driven by an increase in the Ceding Fee and, to a lesser extent, earned broker commissions due to changes in our portfolio mix. Gross acquisition costs as a percentage of gross earned premiums was 16.5% for the three months ended September 30, 2025 compared to 15.8% for the three months ended September 30, 2024, and ceded earned commissions as a percentage of ceded earned premium was 29.1% for the three months ended September 30, 2025 compared to 29.0% for the three months ended 2024.
Previous wording
The combined ratio was 96.8% for the three months ended June 30, 2025, compared to 99.3% for the three months ended June 30, 2024. The 2.5 point decrease was due to the 3.2 point decrease in our expense ratio, partially offset by the 0.7 point increase in our loss ratio.
Current wording
The combined ratio was 95.4% for the three months ended September 30, 2025, compared to 94.4% for the three months ended September 30, 2024. The 1.0 point increase was due to the 1.4 point increase in our loss ratio, partially offset by the 0.4 point decrease in our expense ratio.
Previous wording
Return on equity was 12.4% for the three months ended June 30, 2025, compared to 8.2% for the three months ended June 30, 2024. The 4.2 point increase was primarily driven by the 123.1% increase in net income during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. partially offset by the $129.0 million increase in average mezzanine equity and stockholders’ equity, primarily due to the $131.0 million of net proceeds received from the IPO during the three months ended June 30, 2024.
Current wording
Return on equity was 14.5% for the three months ended September 30, 2025, compared to 13.7% for the three months ended September 30, 2024. The 0.8 point increase was primarily driven by the 25.5% increase in net income during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, partially offset by the increase in average mezzanine equity and stockholders’ equity driven by the increase in retained earnings and accumulated other comprehensive income (loss).
Previous wording
Net investment income increased $4.9 million to $13.7 million for the three months ended June 30, 2025 from $8.8 million for the three months ended June 30, 2024. The increase in net investment income is primarily due to a higher average balance of investments during the three months ended June 30, 2025, and higher yields on invested assets.
Current wording
Net investment income increased $3.5 million to $15.0 million for the three months ended September 30, 2025 from $11.5 million for the three months ended September 30, 2024. The increase in net investment income is primarily due to a higher average balance of investments during the three months ended September 30, 2025, and higher yields on invested assets.
Previous wording
Income tax expense was $3.6 million for the three months ended June 30, 2025, compared to $1.9 million for the three months ended June 30, 2024. Our effective tax rate was 22.5% for the three months ended June 30, 2025, compared to 25.3% for the three months ended June 30, 2024. The effective tax rate differs from the statutory tax rate of 21.0% primarily due to state taxes, non-deductible expenses, and expected excess tax benefits on the vesting of stock-based compensation.
Current wording
Income tax expense was $3.9 million for the three months ended September 30, 2025, compared to $3.7 million for the three months ended September 30, 2024. Our effective tax rate was 20.6% for the three months ended September 30, 2025, compared to 23.6% for the three months ended September 30, 2024. The effective tax rate differs from the statutory tax rate of 21.0% primarily due to estimated non-deductible excess officer compensation, state taxes, and non-deductible expenses, partially offset by research and development credits net of related uncertain tax positions and expected excess tax benefits on the vesting of stock-based compensation.
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024:
Previous wording
The following table presents gross written premiums by underwriting division for the six months ended June 30, 2025 and 2024:
Current wording
The following table presents gross written premiums by underwriting division for the nine months ended September 30, 2025 and 2024:
Previous wording
Net written premiums increased $36.8 million, or 32.8%, to $148.9 million for the three months ended June 30, 2025 from $112.1 million for the three months ended June 30, 2024. The higher 32.8% increase in net written premiums compared to the 32.4% increase in gross written premiums is primarily due to the reduction in premiums ceded to our excess of loss reinsurance treaty. This reduction was mainly driven by the decrease in average limits deployed across our Casualty, Professional Liability, and Healthcare Liability divisions, which reduced the amount of gross premiums subject to our excess of loss reinsurance treaty.
Current wording
Net written premiums increased $83.4 million, or 25.2%, to $414.6 million for the nine months ended September 30, 2025 from $331.2 million for the nine months ended September 30, 2024. The higher 25.2% increase in net written premiums compared to the 25.0% increase in gross written premiums is primarily due to the reduction in premiums ceded to our excess of loss reinsurance treaty. This reduction was mainly driven by the decrease in average limits deployed across our Casualty, Professional Liability, and Healthcare Liability divisions, which reduced the amount of gross premiums subject to our excess of loss reinsurance treaty.
Previous wording
Net earned premiums increased $55.9 million, or 32.3%, to $229.0 million for the six months ended June 30, 2025 from $173.1 million for the six months ended June 30, 2024. The increase in net earned premiums was primarily due to the earning of increased gross written premiums offset by the earning of increased ceded written premiums under our ceded reinsurance treaties.
Current wording
Net earned premiums increased $79.1 million, or 28.4%, to $357.4 million for the nine months ended September 30, 2025 from $278.2 million for the nine months ended September 30, 2024. The increase in net earned premiums was primarily due to the earning of increased gross written premiums offset by the earning of increased ceded written premiums under our ceded reinsurance treaties.
Previous wording
The following table summarizes the components of our loss ratio for the six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes the components of our loss ratio for the nine months ended September 30, 2025 and 2024:
Previous wording
The 0.8 point increase in our current accident year loss ratio was driven by changes in our portfolio mix. During the six months ended June 30, 2025, our Casualty division, which has comparatively higher current accident year industry loss ratios, comprised a larger proportion of our net earned premiums compared to the prior period.
Current wording
The 0.6 point increase in our current accident year loss ratio was driven by changes in our portfolio mix. During the nine months ended September 30, 2025, our Casualty division, which has comparatively higher current accident year industry loss ratios, comprised a larger proportion of our net earned premiums compared to the prior period.
Previous wording
The 0.1 point increase in our prior accident year loss ratio was driven by expected loss ratios applied to audit premiums earned in the period but associated with prior accident years. This development was not based on actual losses settling for more than reserved, and did not represent an increase in estimated reserves on unresolved claims.
Current wording
The 0.6 point increase in our prior accident year loss ratio was driven by expected loss ratios applied to audit premiums fully earned in the period but associated with prior accident years. The increase was not based on actual losses settling for more than reserved, and did not represent an increase in estimated reserves on unresolved claims.
Previous wording
The following table summarizes the components of the expense ratio for the six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes the components of the expense ratio for the nine months ended September 30, 2025 and 2024:
Previous wording
Our expense ratio was 30.4% for the six months ended June 30, 2025 compared to 33.2% for the six months ended June 30, 2024, a decrease of 2.8 points.
Current wording
Our expense ratio was 30.1% for the nine months ended September 30, 2025 compared to 31.9% for the nine months ended September 30, 2024, a decrease of 1.8 points.
Previous wording
The decrease in our expense ratio for the six months ended June 30, 2025 was primarily driven by the 3.4 point decrease in our operating expenses ratio, and a 0.4 point increase in other insurance-related income, which contributed to the lowering of our expense ratio. These improvements were partially offset by the 1.0 point increase in our net acquisition costs ratio.
Current wording
The decrease in our expense ratio for the nine months ended September 30, 2025 was primarily driven by the 2.4 point decrease in our operating expenses ratio, and a 0.3 point increase in other insurance-related income, which contributed to the lowering of our expense ratio. These improvements were partially offset by the 0.9 point increase in our net acquisition costs ratio.
Previous wording
The increase in our net acquisition costs ratio was driven by the increase in earned broker commissions due to changes in our portfolio mix, and to a lesser extent, the reduction in earned ceding commissions from our ceded reinsurance treaties. Gross acquisition costs as a percentage of gross earned premiums was 16.0% for the six months ended June 30, 2025 compared to 15.5% for the six months ended June 30, 2024, and ceded earned commissions as a percentage of ceded earned premium was 29.0% for the six months ended June 30, 2025 compared to 29.0% for the six months ended June 30, 2024.
Current wording
The increase in our net acquisition costs ratio was driven by an increase in earned broker commissions due to changes in our portfolio mix and, to a lesser extent, the increase in Ceding Fee. Gross acquisition costs as a percentage of gross earned premiums was 16.2% for the nine months ended September 30, 2025 compared to 15.6% for the nine months ended September 30, 2024, and ceded earned commissions as a percentage of ceded earned premium was 29.0% for the nine months ended September 30, 2025 compared to 29.0% for the nine months ended September 30, 2024.
Previous wording
The combined ratio was 96.9% for the six months ended June 30, 2025, compared to 98.7% for the six months ended June 30, 2024. The 1.8 point decrease was due to the 2.8 point decrease inthe expense ratio, partially offset by the 1.0 point increase in the loss ratio.
Current wording
The combined ratio was 96.4% for the nine months ended September 30, 2025, compared to 97.0% for the nine months ended September 30, 2024. The 0.6 point decrease was due to the 1.8 point decrease inthe expense ratio, partially offset by the 1.2 point increase in the loss ratio.
Previous wording
Return on equity increased to 12.2% for the six months ended June 30, 2025, up from 9.4% for the six months ended June 30, 2024. The 2.8 point increase was mainly due to an 89.5% increase in net income in the six months ended June 30, 2025, compared to the six months ended June 30, 2024. This was partially offset by a $123.1 million increase in average mezzanine equity and stockholders’ equity, primarily due to the $131.0 million of net proceeds received from the IPO in the six months ended June 30, 2024.
Current wording
Return on equity was 13.0% for the nine months ended September 30, 2025, compared to 11.8% for the nine months ended September 30, 2024. The 1.2 point increase was mainly due to a 58.1% increase in net income in the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. This increase was partially offset by a $122.3 million increase in average mezzanine equity and stockholders’ equity, primarily due to the $131.0 million of net proceeds received from the IPO in the nine months ended September 30, 2024, along with the increase in retained earnings and accumulated other comprehensive income (loss).
Previous wording
Net investment income increased $9.8 million to $26.2 million for the six months ended June 30, 2025 from $16.4 million for the six months ended June 30, 2024. The increase in net investment income is primarily due to a higher average balance of investments during the six months ended June 30, 2025 and higher yields on invested assets.
Current wording
Net investment income increased $13.3 million to $41.3 million for the nine months ended September 30, 2025 from $27.9 million for the nine months ended September 30, 2024. The increase in net investment income is primarily due to a higher average balance of investments during the nine months ended September 30, 2025 and higher yields on invested assets.
Previous wording
Income tax expense was $6.6 million for the six months ended June 30, 2025, compared to $3.9 million for the six months ended June 30, 2024. Our effective tax rate was 21.8% for the six months ended June 30, 2025, compared to 23.8% for the six months ended June 30, 2024. The effective tax rate differs from the statutory tax rate of 21.0% primarily due to state taxes, non-deductible expenses, and expected excess tax benefits on the vesting of stock-based compensation.
Current wording
Income tax expense was $10.5 million for the nine months ended September 30, 2025, compared to $7.6 million for the nine months ended September 30, 2024. Our effective tax rate was 21.3% for the nine months ended September 30, 2025, compared to 23.7% for the nine months ended September 30, 2024. The effective tax rate differs from the statutory tax rate of 21.0% primarily due to estimated non-deductible excess officer compensation, state taxes, and non-deductible expenses, partially offset by research and development credits net of related uncertain tax positions and expected excess tax benefits on the vesting of stock-based compensation.
Previous wording
(1) For the six months ended June 30, 2025 and 2024, net income is annualized to arrive at return on equity.
Current wording
(2) For the nine months ended September 30, 2025 and 2024, net income is annualized to arrive at return on equity.
Previous wording
We define underwriting income as income before income taxes excluding the impact of net investment income, net realized investment (losses) gains, other insurance-related income, non-operating expenses, warrant expense, credit facility interest expenses and fees, foreign exchange losses (gains), and certain strategic initiatives. Underwriting income represents the pre-tax profitability of the Company's underwriting operations and allows us to evaluate our underwriting performance without regard to net investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for income before income taxes calculated in accordance with U.S. GAAP, and other companies may define underwriting income differently.
Current wording
We define underwriting income as income before income taxes excluding the impact of net investment income, net realized investment losses, other insurance-related income, non-operating expenses, warrant expense, credit facility interest expenses and fees, foreign exchange losses, and certain strategic initiatives. Underwriting income represents the pre-tax profitability of the Company's underwriting operations and allows us to evaluate our underwriting performance without regard to net investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for income before income taxes calculated in accordance with U.S. GAAP, and other companies may define underwriting income differently.
Previous wording
Underwriting income for the three and six months ended June 30, 2025 and 2024 reconciles to income before income taxes as follows:
Current wording
Underwriting income for the three and nine months ended September 30, 2025 and 2024 reconciles to income before income taxes as follows:
Previous wording
(1)Strategic initiatives for the three and six months ended June 30, 2024 represents costs incurred to set up our Baleen Specialty division, which is recorded in operating expenses within the Condensed Consolidated Statements of Income and Comprehensive Income. The costs incurred primarily represent expenses to implement the new platform and processes supporting the Baleen Specialty division.
Current wording
(1)Strategic initiatives for the nine months ended September 30, 2024 represents costs incurred to set up our Baleen Specialty division, which is recorded in operating expenses within the Condensed Consolidated Statements of Income and Comprehensive Income. The costs incurred primarily represent expenses to implement the new platform and processes supporting the Baleen Specialty division.
Previous wording
We define adjusted net income as net income excluding the impact of net realized investment (losses) gains, non-operating expenses, foreign exchange losses (gains), and certain strategic initiatives. Adjusted net income excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments that would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments. We use adjusted net income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted net income should not be viewed as a substitute for net income calculated in accordance with U.S. GAAP, and other companies may define adjusted net income differently.
Current wording
We define adjusted net income as net income excluding the impact of net realized investment losses, non-operating expenses, foreign exchange losses, and certain strategic initiatives. Adjusted net income excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments that would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments. We use adjusted net income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted net income should not be viewed as a substitute for net income calculated in accordance with U.S. GAAP, and other companies may define adjusted net income differently.
Previous wording
Adjusted net income for the three and six months ended June 30, 2025 and 2024 reconciles to net income as follows:
Current wording
Adjusted net income for the three and nine months ended September 30, 2025 and 2024 reconciles to net income as follows:
Previous wording
(1)Strategic initiatives for the three and six months ended June 30, 2024 represents costs incurred to set up our Baleen Specialty division, which is recorded in operating expenses within the Condensed Consolidated Statements of Income and Comprehensive Income. The costs incurred primarily represent expenses to implement the new platform and processes supporting the Baleen Specialty division.
Current wording
(1)Strategic initiatives for the nine months ended September 30, 2024 represents costs incurred to set up our Baleen Specialty division, which is recorded in operating expenses within the Condensed Consolidated Statements of Income and Comprehensive Income. The costs incurred primarily represent expenses to implement the new platform and processes supporting the Baleen Specialty division.
Previous wording
Adjusted return on equity for the three and six months ended June 30, 2025 and 2024 reconciles to return on equity as follows:
Current wording
Adjusted return on equity for the three and nine months ended September 30, 2025 and 2024 reconciles to return on equity as follows:
Previous wording
Diluted adjusted earnings per share for the three and six months ended June 30, 2025 and 2024 reconciles to diluted earnings per share as follows:
Current wording
Diluted adjusted earnings per share for the three and nine months ended September 30, 2025 and 2024 reconciles to diluted earnings per share as follows:
Previous wording
Our insurance company subsidiary, BICI, is licensed and domiciled in the State of Wisconsin. Under Wisconsin law, BICI is required to maintain specified levels of statutory capital and surplus and is restricted by law as to the amount of dividends it can pay without the approval of regulatory authorities. BICI is restricted from paying dividends by the lesser of: (i) 10% of statutory capital and surplus as of the preceding December 31, or; (ii) the greater of: (A) statutory net income for the calendar year preceding the date of the dividend distribution, minus realized capital gains for that year, or (B) aggregate of net income for the three months preceding the date of the dividend or distribution, minus realized capital gains for those calendar years and minus dividends paid or credited and distributions made within the first two of the preceding three calendar years. As of December 31, 2024, the maximum dividend that BICI could pay without the approval of regulatory authorities was $16.1 million. Insurance regulators have broad powers to prevent the reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. State insurance regulatory authorities that have jurisdiction over the payment of dividends by our insurance company subsidiary may in the future adopt statutory provisions more restrictive than those currently in effect.
Current wording
Our insurance company subsidiary, BICI, is licensed and domiciled in the State of Wisconsin. Under Wisconsin law, BICI is required to maintain specified levels of statutory capital and surplus and is restricted by law as to the amount of dividends it can pay without the approval of regulatory authorities. BICI is restricted from paying dividends by the lesser of: (i) 10% of statutory capital and surplus as of the preceding December 31, or; (ii) the greater of: (A) statutory net income for the calendar year preceding the date of the dividend distribution, minus realized capital gains for that year, or (B) aggregate of net income for the three years preceding the date of the dividend or distribution, minus realized capital gains for those calendar years and minus dividends paid or credited and distributions made within the first two of the preceding three calendar years. As of December 31, 2024, the maximum dividend that BICI could pay without the approval of regulatory authorities was $16.1 million. Insurance regulators have broad powers to prevent the reduction of statutory surplus to inadequate levels, and there is no assurance that dividends of the maximum amounts calculated under any applicable formula would be permitted. State insurance regulatory authorities that have jurisdiction over the payment of dividends by our insurance company subsidiary may in the future adopt statutory provisions more restrictive than those currently in effect.
Previous wording
As of June 30, 2025, our holding company had $21.0 million in cash and investments. We believe we have sufficient liquidity available at our holding company and subsidiaries to meet our operating cash needs and obligations for at least the next 12 months.
Current wording
As of September 30, 2025, our holding company had $1.0 million in cash and investments. We believe we have sufficient liquidity available at our holding company and subsidiaries to meet our operating cash needs and obligations for at least the next 12 months.
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Previous report — wording carried elsewhere
Net written premiums increased $62.7 million, or 30.9%, to $265.6 million for the six months ended June 30, 2025 from $202.9 million for the six months ended June 30, 2024. The higher 30.9% increase in net written premiums compared to the 29.7% increase in gross written premiums is primarily due to the reduction in premiums ceded to our excess of loss reinsurance treaty. This reduction was mainly driven by the decrease in average limits deployed across our Casualty, Professional Liability, and Healthcare Liability divisions, which reduced the amount of gross premiums subject to our excess of loss reinsurance treaty.