Two US specialty and property insurers have reported fourth-quarter earnings, with both posting premium growth and improved underwriting metrics heading into 2026.
Bowhead Specialty Holdings reported fourth-quarter gross written premiums of $224.1 million, a 21.3% increase over the prior year period. For the full year ended Dec. 31, 2025, gross written premiums rose 24.0% to $862.8 million.
Net income for the quarter was $14.8 million, or $0.44 per diluted share, while adjusted net income came in at $15.5 million, or $0.47 per diluted share. Full-year net income totaled $53.8 million, or $1.59 per diluted share, with adjusted net income at $55.6 million, or $1.65 per diluted share.
The company reported a return on equity of 13.5% for Q4 and 13.1% for the full year. Adjusted return on equity stood at 14.1% and 13.6%, respectively. Book value per share was $13.70, with diluted book value per share at $13.45.
Casualty led divisional growth with a 25.5% increase to $132.9 million. Professional liability rose 4.2% to $47.9 million, healthcare liability grew 7.7% to $34.2 million, and Baleen Specialty surged 665.6% to $9.1 million.
The full-year loss ratio was 66.7%, up 2.3 points from 64.4% in 2024. The company attributed the current accident year loss ratio increase of 1.8 points partly to higher expected loss ratios on certain Professional Liability and Healthcare Liability reserves, aligned more closely with industry benchmarks.
Changes in portfolio mix, with casualty comprising a larger share of net earned premiums, also contributed.
The expense ratio fell 1.0 point to 29.1% in Q4 and 1.6 points to 29.8% for the full year, driven by net earned premiums growing faster than expenses. Net investment income rose 35.8% in Q4 to $16.6 million and 44.1% to $57.8 million for the year, supported by a higher investment balance and yields. The portfolio carried a book yield of 4.6% and an average rating of "AA" at year-end.
Read more: Bowhead Specialty reports strong Q3 results
Universal Insurance Group reported fourth-quarter net income of $66.6 million, up from $6.0 million in the prior year quarter. Adjusted net income was $63.3 million, compared with $7.2 million a year earlier.
The company cited a lower net loss ratio and higher net premiums earned and net investment income as primary drivers.
Diluted GAAP earnings per share were $2.28, with diluted adjusted EPS at $2.17. Annualized return on average common equity was 50.9%, while annualized adjusted ROCE was 46.1%.
Revenue reached $407.9 million, up 6.0% year over year, with core revenue at $403.6 million, a 4.4% increase. Direct premiums written were $483.7 million, up 2.7%, reflecting 18.2% growth in other states, partly offset by a 3.1% decrease in Florida. Growth was attributed to higher policies in force and inflation adjustments across the company's multi-state footprint.
Net premiums earned rose 4.3% to $363.4 million, supported by higher direct premiums earned and a lower ceded premium ratio of 32.4%, down from 32.9% a year earlier. Net investment income increased to $19.0 million from $15.6 million, driven by higher reinvestment yields and invested assets.
The net combined ratio improved by 20.4 points to 87.5%, largely reflecting a net loss ratio of 61.3%, down 21.0 points from Q4 2024. The prior year quarter included the impact of Hurricane Milton. The net expense ratio rose 0.6 points to 26.2%.
Book value per share was $19.67, up 48.1% year over year. Adjusted book value per share was $20.60, a 32.6% increase.
During the quarter, Universal repurchased approximately 210,000 shares at an aggregate cost of $6.9 million. The company announced a new share repurchase program in January 2026 authorizing up to $20 million in buybacks through January 2028. A quarterly dividend of $0.16 per share was declared, payable March 13, 2026.
