Skyward Specialty Insurance (SKWD, Financial) Group, in collaboration with Conifer Insurance, has unveiled the Cannabis Select program. This initiative introduces a comprehensive insurance solution tailored for multi-state operators and larger cannabis enterprises across the United States. The program is designed to enhance Conifer’s existing Cannabis Essentials offering, providing increased coverage limits, improved property protection, and advanced risk management strategies to facilitate growth in the rapidly evolving cannabis industry.
Nick Petcoff, CEO of Conifer Insurance Services, highlighted the need for higher limits and expanded capacity as key industry demands. Cannabis Select aims to meet these needs while retaining Conifer’s commitment to service excellence and adaptability. This strategic launch seeks to support the industry’s maturation with a focus on robust insurance solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Skyward Specialty Insurance Group Inc (SKWD, Financial) is $61.33 with a high estimate of $70.00 and a low estimate of $43.00. The average target implies an
downside of 3.56%
from the current price of $63.60. More detailed estimate data can be found on the Skyward Specialty Insurance Group Inc (SKWD) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Skyward Specialty Insurance Group Inc’s (SKWD, Financial) average brokerage recommendation is currently 2.3, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
SKWD Key Business Developments
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Skyward Specialty Insurance Group Inc (SKWD, Financial) reported a record net income of $42 million and adjusted operating income of $37.3 million for Q1 2025.
- The company achieved a 17% growth in gross written premiums, driven by strong performance in its agriculture, accident and health, specialty programs, transactional ENS, and surety divisions.
- The first quarter combined ratio was 90.5%, with a non-catastrophe loss ratio of 60.2%, marking the best in company history.
- Skyward Specialty Insurance Group Inc (SKWD) successfully renewed its property reinsurance programs with favorable terms, providing greater protection at lower costs.
- The company demonstrated strong investment performance, with net investment income increasing to $19.3 million, supported by a higher portfolio yield and increased invested asset base.
Negative Points
- The company faced 2.2 points of catastrophe losses due to Midwest convective storms and California wildfires.
- There is significant seasonality in the agriculture and credit insurance divisions, which may impact premium contributions throughout the year.
- The global property premiums decreased, reflecting a softening market, although the company maintained a high account retention rate.
- Skyward Specialty Insurance Group Inc (SKWD) noted irresponsible competition in the market, particularly from fronted programs and certain MGAs, which could impact pricing and underwriting margins.
- The company is addressing a material weakness in IT controls, although it had no impact on financial statements, it requires remediation within the year.
