Bowhead Specialty Holdings Inc.

Bowhead reported adjusted net income of $16 million in Q1 2026, up approximately 40% year over year. Diluted adjusted EPS was $0.48 and adjusted ROAE was 14.1%. Gross written premiums increased 24% to approximately $217 million, with casualty at $147 million, professional liability at approximately $28 million, healthcare liability at more than $30 million, and Baleen at $11.4 million in premium. The loss ratio was 66.9%, unchanged from Q1 2025, the expense ratio was 28.4% versus 30.4% a year ago, and the combined ratio was 95.3%. Pre-tax net investment income rose approximately 44% year over year to $18 million. Total equity was $459 million and diluted book value per share was $13.80. For guidance, management expects about 20% GWP growth this year, said the $1 billion annual premium cap with American Family is projected to be exceeded if growth is around 20%, and indicated the Q1 reinsurance changes should be roughly neutral to net income.

Stephen Sills described the quarter as a strong start to the year and emphasized disciplined growth across the portfolio. He said casualty remains the most favorable segment, with excess casualty driving growth, while professional liability and healthcare liability remained selective and market-dependent. He also highlighted continued confidence in digital underwriting, saying the company built Bowhead to deliver sustainable and profitable growth across market cycles through both craft and digital platforms.

Brad Mulcahey focused on the mix of earnings, underwriting leverage, and capital position. He cited $16 million of adjusted net income, 66.9% loss ratio, 28.4% expense ratio, and $18 million of pre-tax net investment income, noting the portfolio had a 4.6% book yield, a 4.7% new money rate, and AA- average credit quality. He said the increase in ceding quota share from 26% to 33.5% and the lower excess-of-loss retention were partly a capital play, and added that the company should be fine on capital this year with the Q4 2025 debt raise and a $35 million credit facility with a $15 million accordion.

Analysts pressed on whether Baleen’s bind rate improvement reflected a structural change, and management said it mainly reflected more time in market, stronger broker familiarity, and a more active distribution effort. Questions also focused on underwriting expense growth and deferrable costs; Brad said Q1 included a favorable timing item from updated estimates of deferrable internal costs that will normalize later, and he expects expense ratios to stay below 30%. Analysts asked about small-case E&S moving back to admitted markets and cyber tail risk from AI-enabled threats; management said admitted competition has increased in some areas but they do not expect it to hurt digital growth, and they said cyber underwriting discipline, especially around multifactor authentication and other screens, is intended to protect against tail risk.