Skyward Specialty Insurance Group Reports Fourth Quarter 2023 Results

HOUSTON, Feb. 20, 2024 (GLOBE NEWSWIRE) — Skyward Specialty Insurance Group, Inc.TM (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported fourth quarter 2023 net income of $29.3 million, or $0.74 per diluted share, compared to $20.4 million, or $0.63 per diluted share, for the same 2022 period. Net income for the year ended 2023 was $86.0 million, or $2.24 per diluted share, compared to $39.4 million, or $1.21 per diluted share, for the same 2022 period.

Adjusted operating income(1) for the fourth quarter of 2023 was $24.3 million, or $0.61 per diluted share, compared to $11.6 million, or $0.36 per diluted share, for the same 2022 period. Adjusted operating income(1) for the year ended 2023 was $80.8 million, or $2.11 per diluted share, compared to $58.6 million, or $1.79 per diluted share, for the same 2022 period.

Highlights for the quarter included:

  • Gross written premiums increased 21.4%.
  • Underwriting income(1) of $21.0 million compared to $12.8 million for the fourth quarter 2022.
  • Combined ratio of 90.7% compared to 92.4% for the fourth quarter 2022.
  • Current accident year non-cat loss and LAE ratio of 60.9% compared to 63.2% for the fourth quarter 2022.
  • Cat loss and LAE ratio of 0.4% compared to 1.2% for the fourth quarter 2022.
  • Year to date return on equity of 15.9% compared to 9.3% for the same 2022 period.
  • Year to date return on tangible equity(1) of 19.0% compared to 11.8% for the same 2022 period.
(1)See “Reconciliation of Non-GAAP Financial Measures”

Skyward Specialty Chairman and CEO Andrew Robinson commented, “We capped off an outstanding year with another strong quarter, delivering a 90.7% combined ratio and growing gross written premiums by 21%. For 2023, we delivered on every key metric, growing gross written premiums by 28%, delivering a 90.7% combined ratio, achieving a return on equity of 15.9%, and growing our fully diluted book value per share by over 24% to $15.96. Our “Rule Our Niche” strategy combined with our strong execution continues to be the foundation of our commitment to being a top quartile financial performer at all parts of the market cycle.”

“In the fourth quarter we also executed on an upsized follow-on offering, a testament to our shareholder’s confidence in our team, our strategy, and our execution. Our journey to this point has been simply remarkable, and it is rooted in the commitment of our employees, the partnership with our distribution, and the support of our customers. We have every reason to believe that 2024 will build on our outstanding success in 2023.”

Results of Operations

Underwriting Results

Premiums                        
($ in thousands)   Three months ended December 31   Twelve months ended December 31
unaudited   2023   2022    %
Change
   2023     2022    %
Change
Gross written premiums   $         321,605     $         264,832             21.4         %   $         1,459,829     $         1,143,952             27.6         %
Ceded written premiums   $         (107,488 )   $         (84,876 )           26.6         %   $         (549,138 )   $         (468,409 )           17.2         %
Net retention             66.6 %             68.0 %    NM (1)               62.4 %             59.1 %   NM (1)  
Net written premiums   $         214,117     $         179,956             19.0         %   $         910,691     $         675,543             34.8         %
Net earned premiums   $         224,932     $         170,143             32.2         %   $         829,143     $         615,994             34.6         %
(1)Not meaningful                        
                         

The fourth quarter 2023 increase in gross written premiums, when compared to the same 2022 period, was primarily driven by our Transactional E&S, Captives, Industry Solutions and Professional Lines underwriting divisions. For the year ended 2023, five of our underwriting divisions experienced over 30% growth compared to the same 2022 period.

Combined Ratio   Three months ended December 31   Twelve months ended December 31
(unaudited)   2023   2022   2023   2022
Non-cat loss and LAE(1)   60.9 %   63.2 %   60.9 %   62.8 %
Cat loss and LAE(1)   0.4 %   1.2 %   1.4 %   1.1 %
Prior accident year development – non-LPT   0.0 %   0.0 %   0.0 %   0.0 %
Prior accident year development – LPT(2)   (0.2 )%   (0.4 )%   (0.2 )%   1.4 %
Loss ratio   61.1 %   64.0 %   62.1 %   65.3 %
Net policy acquisition costs   13.4 %   11.8 %   13.0 %   10.6 %
Other operating and general expenses   16.3 %   17.5 %   16.3 %   18.9 %
Commission and fee income   (0.1 )%   (0.9 )%   (0.7 )%   (0.8 )%
Expense ratio   29.6 %   28.4 %   28.6 %   28.7 %
Combined ratio   90.7 %   92.4 %   90.7 %   94.0 %
Adjusted Underwriting Ratios                
Adjusted loss ratio(2)   61.3 %   64.4 %   62.3 %   63.9 %
Expense ratio   29.6 %   28.4 %   28.6 %   28.7 %
Adjusted combined ratio(2)   90.9 %   92.8 %   90.9 %   92.6 %
(1)Current accident year
(2)See “Reconciliation of Non-GAAP Financial Measures”
                 

The loss ratio for the fourth quarter of 2023 improved 2.9 points when compared to the same 2022 period. The non-cat loss and LAE ratio improved 2.3 points when compared to the same 2022 period, primarily driven by the shift in the mix of business. Catastrophe losses only added 0.4 points to the current quarter loss ratio compared to the fourth quarter of 2022, which was impacted by 1.2 points of catastrophe losses from Winter Storm Elliott.

The loss ratio for the year ended 2023 improved 3.2 points when compared to the same 2022 period. The non-cat loss and LAE ratio improved 1.9 points when compared to the same 2022 period, driven by the shift in the mix of business and continued run-off of exited business. Catastrophe losses from second and third quarter convective storms and first quarter wind and hail events, including tornadoes, added 1.4 points to the loss ratio compared to 2022, which was impacted by 1.1 points of catastrophe losses from Hurricane Ian and Winter Storm Elliott. The loss ratio for the year ended 2022 included 1.4 points from the net impact of LPT reserve strengthening.

The expense ratio for the fourth quarter increased 1.2 points and was flat year to date 2023 when compared to the same 2022 periods. The quarter to date increase was primarily driven by the shift in the mix of business. The improvement in the other operating and general expense ratios for the fourth quarter and year ended 2023, when compared to the same 2022 periods, was primarily due to the increase in earned premiums.

The expense ratios for the fourth quarter and year ended 2023 exclude the impact of IPO related stock compensation and secondary offering expenses, which are reported in other expenses in our condensed consolidated statements of operations and comprehensive income (loss).

Investment Results

$ in thousands   Three months ended December 31   Twelve months ended December 31
(unaudited)   2023   2022   2023   2022
                 
Cash and short-term investments(1)   $ 3,283     $ 796     $ 11,353     $ 1,427  
Core fixed income     10,717       5,907       32,572       16,544  
Opportunistic fixed income     (1,227 )     (2,322 )     (6,844 )     16,784  
Equities     675       881       2,682       2,160  
Net investment income(1)   $ 13,448     $ 5,262     $ 39,763     $ 36,915  
                 
Net unrealized gains (losses) on securities still held   $ 8,736     $ 11,122     $ 11,130     $ (15,058 )
Net realized losses     (992 )     (710 )     (58 )     (647 )
Net investment gains (losses)   $ 7,744     $ 10,412     $ 11,072     $ (15,705 )
(1)excludes income from operating cash for the fourth quarter and years ended December, 31, 2023 and 2022.

Net investment income for our investment portfolio for the fourth quarter and year ended 2023 increased $8.1 million and $2.9 million, respectively, when compared to the same 2022 periods.

The increase in income from our core fixed income portfolio for the fourth quarter and year ended 2023 was due to (i) a larger asset base as we continued to increase our allocation to our core fixed income portfolio and (ii) a higher book yield of 4.5% at December 31, 2023 compared to 3.7% at December 31, 2022. The increase in income from short-term and money market investments for the fourth quarter and year ended 2023, when compared to the same 2022 periods, was due to a larger asset base and higher investment yields when compared to the same 2022 periods. The opportunistic fixed income portfolio continued to be impacted by a decline in the fair value of limited partnership investments for the fourth quarter of 2023 and 2022 and for the year ended 2023.

Stockholders’ Equity

Stockholders’ equity was $661.0 million at December 31, 2023 which represents an increase of 23.5% compared to stockholders’ equity of $535.4 million at September 30, 2023. The increase in stockholders’ equity was primarily due to (i) net proceeds of $62.5 million from our November follow-on offering, (ii) an increase in the market value of our investment portfolio, and (iii) net income.

Conference Call

At 9 a.m. central standard time tomorrow, February 21, 2024, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.

Non-GAAP Financial Measures

This release contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We refer to these measures as “non-GAAP financial measures.” We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.

We have chosen to exclude the net impact of the Loss Portfolio Transfer (“LPT”), all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening in certain non-GAAP metrics, where noted, as the business subject to the LPT is not representative of our continuing business strategy. The business subject to the LPT is primarily related to policy years 2017 and prior, was generated and managed under prior leadership, and has either been exited or substantially repositioned during the reevaluation of our portfolio. We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”

About Skyward Specialty Insurance Group, Inc.

Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions – Accident & Health, Captives, Global Property & Agriculture, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.

Skyward Specialty’s subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A- (Excellent) with positive outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.

Forward-Looking Statements

Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Skyward Specialty’s Form 10-K, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverages and the general costs of doing business, the potential loss of key members of our management team or key employees and our ability to attract and retain personnel, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, other types of catastrophic events, our ability to obtain reinsurance coverage at prices and on terms that allow us to transfer risk and adequately protect our company against financial loss, and losses resulting from reinsurance counterparties failing to pay us on reinsurance claims. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Skyward Specialty Insurance Group, Inc.

Media contact:
Haley Doughty
[email protected] 
713-935-4944

or

Investor contact:
Natalie Schoolcraft,
[email protected] 
614-494-4988

 
Skyward Specialty Insurance Group, Inc.
 
Consolidated Balance Sheets        
($ in thousands, except share and per share amounts)   December 31
(unaudited)     2023       2022  
Assets        
Investments:        
Fixed maturity securities, available-for-sale, at fair value (amortized cost of $1,047,713 and $662,616, respectively)   $         1,017,651     $ 607,572  
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $329 as of December 31, 2023)             42,986       52,467  
Equity securities, at fair value             118,249       120,169  
Mortgage loans (at fair value as of December 31, 2023; at amortized cost as of December 31, 2022)             50,070       51,859  
Other long-term investments             114,505       129,142  
Short-term investments, at fair value             270,226       121,158  
Total investments             1,613,687       1,082,367  
Cash and cash equivalents             65,891       45,438  
Restricted cash             34,445       79,573  
Premiums receivable, net             179,235       139,215  
Reinsurance recoverables, net             596,334       581,359  
Ceded unearned premium             186,121       157,645  
Deferred policy acquisition costs             91,955       68,938  
Deferred income taxes             21,991       36,188  
Goodwill and intangible assets, net             88,435       89,870  
Other assets             75,341       82,846  
Total assets   $         2,953,435     $ 2,363,439  
Liabilities and stockholders’ equity        
Liabilities:        
Reserves for losses and loss adjustment expenses   $         1,314,501     $ 1,141,757  
Unearned premiums             552,532       442,509  
Deferred ceding commission             37,057       29,849  
Reinsurance and premium payables             150,156       113,696  
Funds held for others             58,588       36,858  
Accounts payable and accrued liabilities             50,880       48,499  
Notes payable             50,000       50,000  
Subordinated debt, net of debt issuance costs             78,690       78,609  
Total liabilities             2,292,404       1,941,777  
Stockholders’ equity:        
Series A preferred stock, $0.01 par value; 10,000,000 and 2,000,000 shares authorized, 0 and 1,969,660 shares issued and outstanding, respectively             —       20  
Common stock, $0.01 par value, 500,000,000 and 168,000,000 shares authorized, 39,863,756 and 16,832,955 shares issued, respectively             399       168  
Treasury stock, $0.01 par value, 0 and 233,289 shares, respectively             —               (2 )
Additional paid-in capital             710,855       577,289  
Stock notes receivable             (5,562 )     (6,911 )
Accumulated other comprehensive loss             (22,953 )     (43,485 )
Accumulated deficit             (21,708 )     (105,417 )
Total stockholders’ equity             661,031       421,662  
Total liabilities and stockholders’ equity   $         2,953,435     $ 2,363,439  
         
 
Skyward Specialty Insurance Group, Inc.
 
Consolidated Statements of Operations and Comprehensive Income (Loss)
($ in thousands, except share and per share amounts)   Three months ended
December 31
  Twelve months ended
December 31
(unaudited)     2023       2022     2023       2022  
                 
Revenues:                
Net earned premiums   $ 224,932     $ 170,143   $ 829,143     $ 615,994  
Commission and fee income     247       1,547     6,064       5,199  
Net investment income     14,004       5,264     40,322       36,931  
Net investment gains (losses)     7,744       10,412     11,072       (15,705 )
Other (loss) income     (632 )     1     (632 )     1  
Total revenues     246,295       187,367     885,969       642,420  
Expenses:                
Losses and loss adjustment expenses     137,396       108,976     515,237       402,512  
Underwriting, acquisition and insurance expenses     66,791       49,913     243,444       182,171  
Interest expense     2,774       2,127     10,024       6,407  
Amortization expense     462       387     1,798       1,547  
Other expenses     1,303           5,364        
Total expenses     208,726       161,403     775,867       592,637  
Income before income taxes     37,569       25,964     110,102       49,783  
Income tax expense     8,304       5,545     24,118       10,387  
Net income     29,265       20,419     85,984       39,396  
Net income attributable to participating securities           9,755     1,677       18,879  
Net income attributable to common shareholders   $ 29,265     $ 10,664   $ 84,307     $ 20,517  
Comprehensive income (loss):                
Net income   $ 29,265     $ 20,419   $ 85,984     $ 39,396  
Other comprehensive income (loss):                
Unrealized gains (losses) on investments:                
Net change in unrealized gains (losses) on investments, net of tax     30,825       763     25,516       (48,545 )
Reclassification adjustment for gains on securities no longer held, net of tax     (105 )     58     (4,984 )     420  
Total other comprehensive income (loss)     30,720       821     20,532       (48,125 )
Comprehensive income (loss)   $ 59,985     $ 21,240   $ 106,516     $ (8,729 )
                 
 
Skyward Specialty Insurance Group, Inc.
 
Share and Per Share Data                
($ in thousands, except share and per share amounts)   Three months ended
December 31
  Twelve months ended
December 31
(unaudited)     2023       2022       2023       2022  
                 
Weighted average basic shares     37,570,274       16,576,760       36,031,907       16,568,393  
Weighted average diluted shares     39,582,352       32,669,335       38,317,534       32,653,194  
                 
Basic earnings per share   $ 0.78     $ 0.64     $ 2.34     $ 1.24  
Diluted earnings per share   $ 0.74     $ 0.63     $ 2.24     $ 1.21  
Basic adjusted earnings per share   $ 0.65     $ 0.37     $ 2.20     $ 1.84  
Diluted adjusted earnings per share   $ 0.61     $ 0.36     $ 2.11     $ 1.79  
                 
Annualized ROE (1)     19.6 %     19.9 %     15.9 %     9.3 %
Annualized adjusted ROE (2)     16.3 %     11.3 %     14.9 %     13.8 %
Annualized ROTE (3)     23.0 %     25.5 %     19.0 %     11.8 %
Annualized adjusted ROTE (4)     19.1 %     14.5 %     17.9 %     17.6 %
                 
            December 31,
              2023       2022  
                 
Shares outstanding             39,863,756       16,599,666  
Fully diluted shares outstanding             41,771,854       33,290,638  
                 
Book value per share           $         16.72     $ 25.82  
Fully diluted book value per share           $         15.96     $ 12.87  
Fully diluted tangible book value per share           $         13.84     $ 10.17  
                 
(1)Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
(2)Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
(3)Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period
(4)Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period

Skyward Specialty Insurance Group, Inc.
Reconciliation of Non-GAAP Financial Measures

Adjusted operating income (loss) – We define adjusted operating income (loss) as net income (loss) excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating 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 operating income (loss) should not be viewed as a substitute for net income (loss) calculated in accordance with GAAP, and other companies may define adjusted operating income differently.        

($ in thousands)   Three months ended December 31   Twelve months ended December 31
(unaudited)     2023       2022     2023       2022  
    Pre-tax   After-tax   Pre-tax   After-tax   Pre-tax   After-tax   Pre-tax   After-tax
Income as reported   $ 37,569     $ 29,265     $ 25,964     $ 20,419     $ 110,102     $ 85,984     $ 49,783     $ 39,396  
Less (Add):                                
Net impact of loss portfolio transfer     457       361       699       552       1,427       1,127       (8,572 )     (6,772 )
Net investment gains (losses)     7,744       6,118       10,412       8,225       11,072       8,747       (15,705 )     (12,407 )
Other (loss) income     (632 )     (499 )     1       1       (632 )     (499 )     1       1  
Other expenses     (1,303 )     (1,029 )                 (5,364 )     (4,238 )            
Adjusted operating income   $ 31,303     $ 24,314     $ 14,852     $ 11,641     $ 103,599     $ 80,847     $ 74,059     $ 58,574  
                                 

Underwriting income (loss) – We define underwriting income (loss) as net income (loss) before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income (loss) represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to 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 (loss) should not be viewed as a substitute for pre-tax income (loss) calculated in accordance with GAAP, and other companies may define underwriting income (loss) differently.

($ in thousands)   Three months ended
December 31
  Twelve months ended
December 31
(unaudited)     2023       2022       2023       2022  
Income before federal income tax   $         37,569     $ 25,964     $         110,102     $ 49,783  
Add:                
Interest expense             2,774       2,127               10,024       6,407  
Amortization expense             462       387               1,798       1,547  
Other expenses             1,303                     5,364        
Less (Add):                
Net investment income             14,004       5,264               40,322       36,931  
Net investment gains (losses)             7,744       10,412               11,072       (15,705 )
Other (loss) income             (632 )     1               (632 )     1  
Underwriting income   $         20,992     $ 12,801     $         76,526     $ 36,510  
                 

Adjusted Loss Ratio / Adjusted Combined Ratio – We define adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT and all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening. We use these adjusted ratios as internal performance measures in the management of our operations because we believe they give our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Our adjusted loss ratio and adjusted combined ratio should not be viewed as substitutes for our loss ratio and combined ratio, respectively.

($ in thousands)   Three months ended
December 31
  Twelve months ended
December 31
(unaudited)     2023       2022       2023       2022  
Net earned premiums   $ 224,932     $ 170,143     $ 829,143     $ 615,994  
                 
Losses and LAE     137,396       108,976       515,237       402,512  
(Add) Less: pre-tax net impact of LPT     (457 )     (699 )     (1,427 )     8,572  
Adjusted losses and LAE   $ 137,853     $ 109,675     $ 516,664     $ 393,940  
                 
Loss ratio     61.1 %     64.0 %     62.1 %     65.3 %
(Add) Less: net impact of LPT   (0.2 )%   (0.4 )%   (0.2 )%     1.4 %
Adjusted loss ratio     61.3 %     64.4 %     62.3 %     63.9 %
                 
Combined ratio     90.7 %     92.4 %     90.7 %     94.0 %
(Add) Less: net impact of LPT   (0.2 )%   (0.4 )%   (0.2 )%     1.4 %
Adjusted combined ratio     90.9 %     92.8 %     90.9 %     92.6 %
                 

Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.

($ in thousands)   December 31
(unaudited)     2023       2022  
Stockholders’ equity   $         661,031     $ 421,662  
Less: Goodwill and intangible assets             88,435       89,870  
Tangible stockholders’ equity   $         572,596     $ 331,792  
         
 
Skyward Specialty Insurance Group, Inc.
Gross Written Premiums by Underwriting Division (Unaudited)
 
    Three months ended   Twelve months ended
    December 31   December 31
($ in thousands)     2023       2022     %
Change
    2023       2022     %
Change
Industry Solutions   $         78,796     $ 65,391     20.5 %   $         305,476     $ 267,628     14.1 %
Global Property & Agriculture             25,996       27,516     (5.5 )%             273,191       205,081     33.2 %
Programs             35,694       31,901     11.9 %             178,726       163,653     9.2 %
Accident & Health             38,882       33,701     15.4 %             151,701       130,808     16.0 %
Captives             40,375       26,706     51.2 %             167,624       124,286     34.9 %
Professional Lines             40,145       30,884     30.0 %             154,565       93,011     66.2 %
Transactional E&S             31,560       22,453     40.6 %             122,508       75,098     63.1 %
Surety             30,157       25,328     19.1 %             106,056       79,062     34.1 %
Total continuing business   $         321,605     $ 263,880     21.9 %   $         1,459,847     $ 1,138,627     28.2 %
Exited business             —       952     (100.0 )%             (18 )     5,325     (100.3 )%
Total gross written premiums   $         321,605     $ 264,832     21.4 %   $         1,459,829     $ 1,143,952     27.6 %
                         


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