Skyward Specialty Insurance Group posted a combined ratio of 89.5% for the second quarter of 2026, while diluted operating earnings per share rose 46% year over year to $1.30. The period represents the first full quarter of Apollo consolidated inside the group following its acquisition, which closed January 1.
The prior-year comparisons throughout are presented on a pro forma basis. Apollo was not part of Skyward's actual reported results for Q2 2025. The year-over-year growth rates incorporate consolidation effects alongside organic performance.
Total gross written premiums rose 13.3% to $740.6 million for Q2 2026 on a pro forma basis. Net written premiums climbed to $485.6 million from $339.2 million, driven largely by Apollo's contribution. For the first half, managed premiums, which include fee-generating premiums from syndicates Apollo manages on behalf of third-party capital, reached $2.03 billion, up 18.5%. (AC)
The divisional breakdown shows where Skyward is growing and where it is pulling back. Global agriculture gross written premiums rose 95.8% to $111.9 million in the quarter, nearly doubling year over year. Accident and health grew 57.8% to $95.5 million and specialty programs expanded 29.7% to $111.4 million.
Management described global agriculture and accident and health as cycle-resistant lines in the Q1 2026 earnings call. That framing reflects a real underwriting distinction rather than a marketing label. Agriculture pricing and loss experience are driven primarily by weather and commodity trends rather than the reinsurance capacity cycles that move property pricing, while A&H claims trend with medical cost inflation and demographic factors rather than catastrophe capital flows - meaning both lines are structurally less exposed to the kind of capacity-driven softening currently pressuring Skyward's property and captive books.
Global property fell 15.3% to $71.1 million, Captives dropped 16.6% to $64.3 million, while energy solutions declined 16.2% to $62.7 million. On the Q1 2026 earnings call, management attributed the captives decline to a competitor writing terms it considered unsustainable and said the pullback was deliberate. The property and energy contractions track the broader softening of E&S property rates. For brokers and MGAs with property or captive submissions currently pending with Skyward, the practical takeaway is to expect continued selective underwriting rather than broad-based capacity expansion in those two lines specifically, at least while the carrier is deliberately walking away from terms it views as unsustainable. Agriculture and A&H submissions, by contrast, are likely to find a more receptive appetite given the deliberate build-out underway in both.
Fee-generating premiums from Apollo's Lloyd's platform grew 28.8% to $318.1 million in Q2. Partner syndicate premiums within that total grew 82% to $100.9 million. Apollo manages nine syndicates on its Lloyd's platform, retaining underwriting risk on three and earning managing agency fees and performance income on all of them.
The Skyward Specialty segment posted a combined ratio of 86.9% for Q2 2026, against 88.3% in the same period the previous year. Underwriting income was $49.6 million, up from $34.5 million.
The segment's loss ratio rose 1.3 points to 62.6%, attributed to business mix shifts from growth in accident and health and global agriculture. Both lines carry higher loss ratios than the property divisions they are partly displacing.
The expense ratio improved 2.7 points to 24.3%, as net earned premiums outpaced expense growth.
The Apollo segment posted a combined ratio of 97.6%, with underwriting income of $9.6 million. Catastrophe losses from the Middle East conflict pushed Apollo's Q2 loss ratio to 60.1%. Apollo had deliberately reduced Middle East exposure following rate conditions it considered inadequate, according to Q1 2026 earnings call disclosures.
Net investment income grew to $30.7 million for second quarter of 2026 from $18.7 million in the same period last year. The gain was driven by the Apollo portfolio addition and a larger asset base.
Net operating income rose to $59.2 million from $37.5 million. Net income was $49 million, up from $38.8 million.
Total assets reached $6.78 billion at June 30 compared with $4.79 billion at December 31, 2025. The increase incorporates Apollo's consolidation, including $471.2 million in goodwill and intangible assets. Stockholders' equity was $1.27 billion.
Book value per share increased to $28.55, up 14.6% from $24.92 at December 31, 2025. The annualized operating return on equity for H1 2026 was 20.4%, against 17.8% on a pro forma basis for H1 2025. The company repurchased 223,000 shares for $9.7 million in Q2 and expanded its share repurchase authorization from $50 million to $100 million.
