Bowhead Specialty Holdings Inc.(BOW) - 2024 Q4 - Annual Results

Financial Performance - Gross written premiums increased 26.3% to $184.8 million in Q4 2024, and 37.0% to$ 695.7 million for the full year 2024[4] - Net income for Q4 2024 was $13.6 million, or$ 0.41 per diluted share, and for the full year 2024 was $38.2 million, or$ 1.29 per diluted share[4] - Total revenues for Q4 2024 increased by 44.1% to $119.3 million, and for the full year, revenues rose by 50.2% to$ 425.7 million[9] - Adjusted net income for Q4 2024 was $18,872,000, up from$ 14,099,000 in Q4 2023, representing a 33.5% increase[18] - Diluted adjusted earnings per share for Q4 2024 was $0.42, compared to$ 0.24 in Q4 2023, marking a 75% increase[22] - The adjusted return on equity for Q4 2024 was 15.3%, an increase from 13.4% in Q4 2023[21] Investment Income - Net investment income rose 79.8% in Q4 2024 to $12.2 million, and 107.1% for the full year to$ 40.1 million[7] - Net investment income for Q4 2024 was $12,193,000, compared to$ 6,782,000 in Q4 2023, reflecting an increase of 79.5%[15] Loss Ratios - The loss ratio for the year was 64.4%, an increase of 1.4 points from 63.0% in 2023, primarily due to a higher proportion of Casualty in the portfolio[2] - The loss ratio for Q4 2024 was 62.6%, a decrease from 69.2% in Q4 2023[13] - The company reported a total of $248,099,000 in net losses for the twelve months ended December 31, 2024, with a loss ratio of 64.4%[13] Expense Ratios - The expense ratio for Q4 2024 was 30.1%, a decrease of 1.2 points from the previous year, reflecting improved operational efficiency[6] - The total expense ratio for Q4 2024 was 30.1%, slightly improved from 31.3% in Q4 2023[14] Business Development - The Casualty division led growth with a 43.1% increase to$ 105.9 million, while Healthcare Liability and Professional Liability increased by 8.8% and 6.5%, respectively[5] - The company launched Baleen, a tech-enabled low touch underwriting operation, generating $1.2 million in gross written premiums in Q4 2024, a sequential growth of 175%[5] - The company launched its Baleen Specialty division in May 2024, focusing on niche and hard-to-place risks[24] Assets and Book Value - Book value per share was$ 11.34, with diluted book value per share at $11.03 as of December 31, 2024[4] - Total assets increased to$ 1.65 billion as of December 31, 2024, compared to $1.03 billion a year earlier[11] Conference and Forward-Looking Statements - The Company will host a conference call on February 25, 2025, at 8:30 a.m. Eastern Time to discuss its results[26] - A replay of the event webcast will be available on the Company's Investor Relations website for one year following the call[27] - Forward-looking statements are included in the press release, which may involve risks and uncertainties that could cause actual results to differ materially[28] - The Company does not undertake any obligation to update or revise forward-looking information[28] Investor Relations - Investor Relations contact is Shirley Yap, Head of Investor Relations[29]