SKWD - Earnings call 1 2023 | Skyward Specialty Insurance Group, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Skyward Specialty Insurance Group conference call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Natalie Schoolcraft, Head of Investor Relations. Please go ahead.

Natalie Schoolcraft

Amanda. you, Thank and conference everyone, our quarter first Good welcome earnings call. XXXX morning, to am Chief Today, Robinson; by joined I our Financial Mark and Executive Officer, Haushill. Chief Andrew Officer,

remarks, lines for the with call We questions. we will the our begin prepared open will and today then

number contained affect our cause information, today a press and those the was future Exchange materially our as included our of Such factors are include with certain and our may Securities financial results forward-looking previously types nature, containing schedules may XX-K along reconciliations and to statements. from factors comments of discussed of statements, as on under part release which performance. that skywardinsurance.com risk Our as release our well their projections website, or factors uncertainties, actual differ Commission. Financial non-GAAP Investors by press in in forward-looking the involve of financial which filed may These available risk supplemental with section. measures, in are other

to turn Andrew? Now I call Robinson. Andrew Skyward's the CEO, will over

Andrew Robinson

for you, you everyone, and with momentum. continuing financial Good us. QX performance, morning, we're and our strong thank another pleased Natalie. strategic and was Thank solid joining

quarter. premiums our underwriting we at divisions. Specifically, XX% gross and premiums, across execution from conditions strong to Mark grew will broadly about in benefit a written more the continue talk level, approximately but high favorable market

combined $XX.X well income cat impacted points combined our of or ratio the ratio by operating with convective and of per million quarter within only losses storms adjusted diluted Our was and X.X retention. inclusive We're first XX.X%, $X.XX on adjusted of share. minimally cats

digits rate is in continue cost our that We and inflation above estimates. realize the high loss pure single to

generate flow We very strong operations. cash also continue our from to

of invested with in result, income We we equity growth, we quarter, XXXX. Strategic our portfolio into equity and further core we the reinforces business more A+ and continue the our quarter. that at an will recent our in new momentum our I'll of this XX.X%, by in amplify I'll together the claims fixed believe turn to to our investment all marine We call that, continue in and over launches, add for achieved adjusted portfolio. tangible on and XX.X% financial respectively, agriculture our professionals. last money discuss return talent underwriters about this results our X.X%, this evidenced and and In strong technology continues capabilities global detail. greater Mark to invest as to financial Mark? inland later. With the talk expect

Mark Haushill

Andrew. you, Thank

net for For income the quarter of we $XX.X XXXX. compared reported million $XX.X million of to quarter, the first

an $X.XX or As $X.XX same reported a basis, income Andrew per compared or per noted, million share gross the XX%. In written premiums ago. year of quarter, for to on grew by diluted period diluted $XX.X we $XX.X share adjusted operating the million,

in approximately Every over underwriting quarter surety global transactional premiums E&S, XXXX. first million written property to in grew and Net up division each XX%. million $XXX Lines, quarter in grew QX, compared Professional the captives our divisions, with and XX% the performance $XXX in agriculture, to notable of

with was 'XX, in 'XX in this for retention first of the Adjusting consistent net restructuring of premium property net prior XX.X% impacted share the of premium year reinsurance. global quarter quarter of First a written transaction is 'XX by written quota the the quarter.

the had year was ratio to ratio loss by compared quarter. loss includes The development ratio in no X.X improved accident XX.X% an of of and driven exited non-cat expense higher to accident of the ratio current non-cat combined adjusted the runoff loss point the changing the 'XX. in first quarter ratio XX.X% mix of year an overall We business improvement the year on, Moving accident and business. prior

higher on mix and X base the were South highlighted. premium improved were point catastrophe and 'XX, expense first and and of costs ratio the the points Partially driven losses XXXX planned, were change quarter for driven we compared was catastrophe wind, our losses a and quarter quarter, in primarily which from an were earned the to fee During combined the impacted million by the The Investments income. improvement of commission first the run compared by hail to rate acquisition not the ratio higher year. slightly I expect losses. offsetting just increased higher in than for the lower ratio. The X.X business Midwest cat remainder expense $X.X in of business accounted the tornadoes and by

$X.X our net to period The investment portfolio decreased Net more in income doubled a compared income quarter from the investment improving fixed significant million than just increase by prior $X.X turning quarter, income in million investment $X to to invested Now year million core portfolio our the an and of from XXXX. yield base. asset to driven results. in same $XX.X million the the

portfolio million $XXX is up income at from fixed core December $XXX now XXXX. XX, Our million,

deploy As Andrew the to yield continue noted, we environment. attractive flow given portfolio to this cash

quarter, million duration. about in portfolio the $XX at we the During invested increasing X.X% without

income net and equity the mark-to-market For on quarter 'XX portfolio was of fixed quarter investment by quarter our income was first the our book core significantly the 'XX income time first X.X% year. of decrease to X.X% yield portfolio. Both impacted opportunistic The quarter, in were generated in adjustments. last this fixed compared average our the by

of about At our the income portfolio. March regional million real portfolio. on our X% portfolio to the $XXX portion the banking less XX, negative losses quarter portfolio to and over direct total March to tax do commercial experienced investment have X%. respect positive than cash over During want is parts to fixed net retail SVB cash inception-to-date this estate and first X sensitive of any short-term marks regional we marks XX, well real market the decreased as market it of of related core and banking, continue strong we our were quarters, to we last to approximately during compared this investments, as relates office and portfolio. I in touch realized recognized proceeds. over portion the Exposure our for Signature our of At With the economically we and flow to quarter, quarter, XXXX. of including concerns $X.X the we had investments past as had the operating of Despite of the the volatility exposure. estate, deploy briefly commercial minimal money resulting $XXX XXXX, million This we've in this million Bank. to from as IPO not has is return investment

on slightly of north was quarter, our yield short-term X.X%. the investments During

will this discussed, our we we've liquidity As portfolio. core be deploying into fixed income

to we $XXX financial of During facility million credit the a which of plenty pay capacity gives flexibility. quarter, closed to with us drew off us $XX facility term of provides million, new our loan. new that we The up

and is ratio us debt leverage capacity. XX% currently Our provides significant with

our remarks. cover had period pleased renewal. point our terms. the for cover Lastly, $XX model it new Previously, $XX lower excess a than I'll X $XX turn current of is attachment a with and a X actually and with The retention. of well price retention. million million plan the XXX-year million and XXXX, of and provides over is The catastrophe to regarding May our in concluding orderly in event. With the we're property a return for renewal we excess Andrew in was million expiring consistent cover The $XX that, on treaty

Andrew Robinson

expressed given profitability Thank no our Mark. perspective, very small you, a Niche an particularly is underwriting at XX% quarter. feat, our had Our executing strong focus From we Rule And growing strategy. on

a with and view positions We top our towards are meticulously long-term underwriting business performance. quartile building durable

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technical they ever, account partners need than stressed more are non-cat E&S distribution when problem-solving real cat-exposed on Now with placements, technical expertise risks. and our the

volatility additional and growth generates this strong to business. contribution without substantial underwriting our comes division Our

to surety. Turning

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points way. To high highly the it the our build estimated believe quarter, and will while for the I a specialty We loss again the a right inflation. term. than are achieved total to digits, current time to our as this we team amplify we doing average continue cost increase the tell, in single And valuable rate relates carrier leadership higher above long

excess, years over underpricing due not lines And years, see that to D&O, increases overweight those cost X and similarly many the others, such received of to moderate. rate X cyber downdraft relative which we should needed are big in huge prices inflation. rate increases as public the the We not huge last loss habitational of to as

and book. Our We margins close X balance our nearly of an high new our underwriting again, our pricing as of our believe we the to pricing up orderly business in right remain discipline large, compared with with and was was in prior retention. Submission rate indication is the in-force our on above on there the still business inflation said, in the over steady evident by now of the remains pricing that of -- injury. renewal at/or XX% to across and new conditions, markets as is measurable pricing business it year. level striking that remains at over flow and regarding robust to book. Retention, as years where E&S we're Market new a real we too, driving That question contribution is XXs, the consistent particularly parts that relates specialty no social most and compete. personal attractive is

loss are trajectory across strong exposure and wrap quartile very increases. To excess up, a our should that Skyward's to costs market, improving, and for towards our We book. impetus We a closely in we'll invest watching and further this continue is pricing rational managing the be our believe in performance. continued business top to our position

quarter now operator turn back the We to year. I'd to call is and start open have strong the Q&A. great the first a up to to Operator? for over like a

Operator

from comes question first Tracy Our Instructions] the from line of [Operator Barclays.

Tracy Dolin-Benguigui

you that the mentioned in seeing Andrew, rate digits. you're single high pure

acts If you rate, pricing what like exposure that of like? would part look included

Andrew Robinson

Tracy, question. the thanks for

take again, we hard It's that one really that isolate to credit isolate. thing, see. for exposure were acts that's rate, us up feature. portion us, I picked quite we it. and additional quarter first say would talk couple on hard it's first of point to like probably for the for in that I to exposure about that like business. it's quarter. A -- that In you our certainly not in have So a would of lot folks tell of points, we specific pleased general, it But about which to the the looks in try

in think Tracy, more sign us, for general rightly is is up I business. economic quarter, through the positive in the through book back our a this some book runs for -- important note, point the that in first It of our which higher we a of about really in you probably bit saw And little quarter, we rate a quarter. of had like recovery thick exposure as the a of as running seems that. course, byproduct that there's

Tracy Dolin-Benguigui

you quarter I think not pricing property on Okay. did view preview also prior conversations, meaningfully, Great. the Can I would second if kind for helpful. per retain of took be happen? insurers more. would just assume guys Andrew Any that just a And have that more cautious property you increased

Andrew Robinson

Also a good question.

no, it did So -- happen.

I global property we -- I say -- earlier on the in certainly think general, I on that been leading we've did side. that think, and

through I exposure we growth price on up. exposure of And property, great. net think clients of maxed pricing exposure moved up, out really add our of our there. a were we've our us didn't we values, where been transactional it not a they in where very we so global were saw of Much points through into you and in strong on amount look was global book to some But we lot QX. our to risk. the retain attachment in definitely and instances property effectively saw huge that so the terms just side, the our at thought willing came pick if was underlying We Interestingly, E&S. that

I portion, definitely think in they're simply the points growing larger be we're higher a or it that just pricing our units where are think whether those seeing having but sublimits a trade-offs. through running E&S. to we at co-participations some by retention in And seeing transactional make we're Transactional of in I because point is clients ES,

Tracy Dolin-Benguigui

And ahead. quarter, -- second you Yes, go are

Andrew Robinson

Right.

dropped first in missed quarter, for ask The for the us the units I the available feel half second did second of say the about good us, in year. like would You we down terms I quarter. with of market in that. part. the that consistent growth the

growth the to the the second of company half if contribution even half year. year, the the our growth as So did be in the continue lower of a sort the overall second would of in

-- certainly book, we're generally I also but a as cat pick in about, not global that our we're think up exposure. talked we've writer, property we just cat

the of year. first the in of half more You that have

The second terms of in of I to is, half forth. competitiveness technical part think, so different more which of be risk, market the a slightly year the tends the and

would your profile -- the confident a more year. first I the question questions, of feel the your to So in probably in bit answer growth we half summarize the

that continued half won't quarter that's in bit we the and a little half year. second year, but the see growth in not The the still in the to down saw first second probably say what of second of we strong the

Operator

JMP. Our next from question comes from Matthew

Matthew Carletti

there just things just kind from I maybe plan year is I'll all and thinking on the to start about to being the but that kind of you of don't really property the them were a we think use Tracy's follow opportunities swing quarter there where you year. question there Maybe than should forward. going of might can't they out expected where XX% I we to And some and -- fantastic want divisions. and -- word kind kind see you on caution, the of zoom global because out to there were the How at maybe throughout think took and growth first underwriting in forward looking better of we

Andrew Robinson

of a necessarily as writer. not say happened in bunch is way tilt being Matt, we driven that an by to thanks for opportunistic the way would there our our is that some opportunistic first think darn Look, your grow, But rights off pretty will rights. start quarter relates disciplined. Yes, I we're I not growth. it it answering We're by business focused opportunistic there as of were. question. we And our on what us, say quarter; is I'd the the the that quality pretty not first not the to in of It's about question sort

think of made I in number we a investments business. great our

areas us You've through. can like the the or of heard in surety. liability areas in that transactional And in talent you coming E&S from terms professional see or growth we brought those

things rewarded. the are being way. efforts doing So our We're right

you're That darn look, growth book the business, high-quality you and of hit first if XX% a pretty build quarter, trying durable, said, outstanding. a that's to in

the keep that year. that over I hard up of to course couldn't. to that It's full not think we say it's

I second second strong will feel quarter. quarter be that the think we a

do like We whether strong half we're of necessarily was think second have the that the in planning to something can north see of growth, it's that it already. half not of that is the the going That's I year, XX what we're first year. for.

But honestly, into book. we of won't a term. lot if quite And business be opportunistic fantastic. that achieve it, the would this trying We're to our we for build long put

growth something that think is focus you I for is our just key quality to that a highlight I would the of us.

look solution. us as I'm books of sticks a much terms like the books in now, of from to we conditions, on ribs putting is our X the hopefully, to characteristic give years or put actually the here under the looking bear we And was what sort onto company right XXXX. business describing that you because where the a were way put out right of them our And we're to that to X hopeful that it the will and to out time that I'm good on growth the they

Matthew Carletti

guess, loss of then back little on And we one helpful. deeper cost just the a being just could really the dig broadly. kind other, commentary pricing -- hoping to ahead of That's I just

or front or pricing there there As like you maybe Maybe you're see moderating a that still the cautious pricing maybe cautious loss feel accelerate. -- through really behaving might more and little cost different that other underwriting looking. that you certain the think there? needs Are loss to you areas how it's better various you division, areas cost are inflation on

lights a you be other little what kind discipline? or to you for trying areas get more for might guys feel are exercising of caution and green a more Just where

Andrew Robinson

Well, think I are is injury, it's all Yes. social mean -- personal a concerned just inflation topic a we that right? with we am about, that look, think around I topic. as I it's watch-out

and messaged what we share we are think trend doing to that I you quota in on ourselves. what think we in others thing macro account because don't but auto, that do we're the like exposed did that the a we first but watching right we're keep whole that to auto, are to a is because we quarter doing not doing protect we

excess over exposure, personal limit. our exposure that be I million particularly exposes The but then us, So would written primary have not $X say just we might excess might excess injury, exposure. a

I will give of at first all, feel about premiums, written at for our as Well, a just XX%. example, really good of you areas right was say But example. writings, first our one I'd if you most as auto I we wrote now. about quarter gross percentage look

last know of or it was XX%. as that our a You year, percentage portfolio, XX%

more instances that what as, then select So macro that see on see being -- recognizing net just shows number MGAs things just the out having on fronted of if there, we a you cautious more I'd concerns that we're there you that with opportunities there. just they recognizing. that out and don't cautious bit that We're same But describe the growth. being we solutions just still feel we're you particularly as great the by combine lot certainly of, that like operate they're a protection. They're are a are of

A&H where more see little what Allied happening which have instances we across are look professional in even across stop we're medical cautious. When in we and with professional, feel our pricing confidence good what the environment lines, in company a those liability, business, quarter-on-quarter. what private those broad technical we are where we'll certainly the our additional so bit Healthcare, we are what's on where areas loss property, that see we loss, are our are be rate very adding liability the cost And where I we in with and all our about management

Operator

next KBW. Our question [Operator Meyer Shields Instructions] from comes from

Unknown Analyst

[ on Meyer. This is ] actually for Derek

And impacting I anything that. is in as operating came on in how accelerate unusual expense Is ratio investments the investments should expense that about there out we we a lot the of So lowered throughout had expense year? lower know which premium there my ratio? leverage that your ratio, kind And called had expected. of kind else question think lower the throughout first and year, you than the

Andrew Robinson

Yes.

were expense simply in we lower as X great by the mentioned, premium that giving just There principal So One, through question, this more a ratio readily bit more components had you running drove was leverage. way. us in a quarter.

quarter. -- real as in run that expense a The not that expense first ratio, will contra benefits notable little bit ratio, the fees had and have we repeat. -- up a effectively probably you for our in a quarter. know, expectations in delayed then second, thing was our There was some was the is third seasonality some some and we we been And that into have expense as about that, investments

in run some So investments so which right? period, the in, those otherwise didn't bit see were one growth And delays principal simultaneously, we to planned profitable expect tad just later business, one those do had a while that hand, investments it we'd also probably it most running But point. contributors. of X a as those that of the at being our for of benefits growth the related we but directly great on is in

Unknown Analyst

for then And of trends. helpful. probably well about you is much property quarter. given kind maybe second loss property Can or you the global a willing you question limiting on just the underwriting going of premiums in in said first is help your really the take That's on property you're And us exposures Okay. didn't add my global exposures pricing excess of Obviously, the percentage to think volatility? maximum as about business focus

Andrew Robinson

sort there's -- the governor what market. they -- a are unfamiliarity -- that listen, -- team in of we addressable a bulk global those on writes, think see the mean So what our practical property guys that not right? don't I with Yes. in not accounts I I of are the

just to It's we're the no we're we add But of writing. quality there's are we remember, accounts, So that's circa certainly, write may whether going with some really right the practically us. governor. you And what for XXX satisfied As accounts. right?

people I a and how going talk of taking But we're amongst And a certainly lot look, that our is of there of it. seeing tremendous advantage are writing or colleagues if doesn't a stands. one my you just says, profitability cross-section in necessarily of where write property that reinsurers to did of it's profitability mean on as we good you're today, deal property. And not still of there, the the understand the totality, opportunity maybe heavy it industry about cat questionable are the going industry

So our aiming and team. to we not limiting are still pick choose shots. that We're

We conservative to a as it cat. very have obviously posture relates

that cat can points. size of our our You just see by the and program attachment

a And the not but amount continues, I way that's we're so grow operating. we're them, to and we'll profile just changing if our there. because see adding the business, But the that exposure continue us constraining don't of of market that's monstrous

Operator

comes Our James. next from question Gregory Peters Raymond from

Charles Peters

million said So new million. program Andrew, renewed the ex around comments you I and $XX to reinsurance, was listening the your

Andrew Robinson

Correct.

Charles Peters

in about a retention for to the quarter all just in you the happen type what -- given because and How hit retention -- full do hurricanes. look would the sort have of things quarter changing are a that XX. global you weather at of doing how and moving How we're about of in third property, fourth you to in summer in So given Asan the about of think you're thinking let's growth fact -- context that hitting the and you a pieces? that think do transactionally actually

Andrew Robinson

Yes.

business a I about That that program and -- thing $XX of question. my reflect event. pretty and much The they is Certainly, perils, into all of a to been that million period said, a our couple the it the great a that touched touched for our for cat it's program event experience an will location, consider was And conservative us, the shaped. cat a we is remember had a So book others, years came in trying touch how us I'm our one X of Without that back, I barely and remind had in of just unpacking program I'll a Louisiana, where hit and big bottom sort you far that program too attachment right? only attachment very pretty programs. it's their on point. of all touched retention can has was was it year, lower XX-year storm unique, bottom right, intense return the you we a point. is into when didn't last So we

So is wouldn't for that convective we've storms, things attachment freezes, me very with And something hurricanes lot tells $XX of throughout that tested impact certainly me, both minimal yet, a would lot today. a been Gulf here, sides. a million and what all had we've of on winter the certainly be that hit

that series second it, drops the third we would you be events on have are that's more unique lower cover or And that event. on to that And hard really second you about attachment event it's If part think that to protect that. exposure, construct some third our and an against approach I cat down to without is think there's of cover maybe we attachment. tell a to of because million that multiple we So do the identify. we I how I unpacking ourselves when second will we $XX there think that that about the third cover. to may is frequency the severity or where than point trying point our and drops cat of And events. down,

Charles Peters

events. Mark, talked Can the That the the you pivot on income. third on and down especially makes -- fixed sense, opportunistic about the results I second drop

You briefly addressed whether exposures, the cetera. of some et it's the banks,

questions. So I X guess,

to market for balance the the fixed seems about opportunistic the Just is, like considering income where year, the of some you as be think headwinds. there's it going

estate. you at the listed. sheet, in loans $XX year-end on mortgage asset value perspective But if just the a your 'XX a you said loan look us know balance And on bit million. at if have $XX And and inside you about cost -- too? to wondering have going your over little it XX, can or through fair then there's I at at that? And dropped look March real bucket, is you talked commercial down section, the the mortgage Just I million. then at I walk what's you exposure

Mark Haushill

Greg. that Well, lot, a Okay. was

the is mean, strong that at have The look the portfolio the the we and inception-to-date accounting think that volatility returns worth due way So on we X%. at I anomaly about in invest. to framing I we which with opportunistic, deal like the the it's I portfolio. structure been the right the first

points more to X add me your question. Let

we that emphasizing we I think are worth yield year. part in been and of today environment better of it's the the have light for where the where current

All going fixed the and of is decrease the talk about When our different loans. now, on referring of you you're of to the mortgage there our than to is the money of core one portfolio. paid other I Frankly, portfolio commercial loans. less we buckets, XX% think opportunistic, new income, portion is the meaning that got total is

that's So down. that help? it's the reason Does

Charles Peters

I've the opportunistic but market sure clarity of And cautious the not I how best I'm given piece, the loan got on guess, this piece, mortgage does. course model is the not income That probably to fixed going forward. action.

Mark Haushill

on you'll the of file can offline, helps. get take components I And that different portfolio. some it the clarity Yes. the the pieces, And get different we'll if more into when Q, we and

Andrew Robinson

item. I would important Greg, one add,

at sort you this convey mentioned don't have and prepared superficially which for what allocations. Mark we to we important just us think it's us, I remarks, for look in of as are his important that the to -- is

sensitive, there what of estate, you the long-dated office the and terms and real exposure sort retail, to and cases, in exposures. if very most we really also not the of little quality want which have buildings is so what about economically understanding They And be of this they're short are to sort we like the have. just of of think just CMBS, loans. the We loans. -- are very these In We loans. our tend underlying we nature to like bridge

sort more we a bit of think, And confidence so and see with, you probably them can which do. little with clarity I

Operator

comes Our from Piper next Newsome question from Sandler. Paul

Jon Paul Newsome

ratio? I as for plan. in between combined we on the growth loss the kind Does the the think ratio quarter. combined the composition have something well materially first a Is of generally ratio? change a any could expense that have in there of combined think that reasons of quarter having that enough and expense to lower of with the ratio. change unexpected the implications plan, prospectively we properties Congratulations ratio, surety allocation the Two but the above tends above see and maybe higher a being growth

Andrew Robinson

it's the Great. Yes. great question. a way, By

victory as Because before couple their -- in some earn skewed, are it is and I just would start I note is noted a not premium in said, that skewed think to we a thing take on here, of that, we through. right? is before rightly contribution background, more mean to premium mean So that there to have general our basis. you that trend of was a we going what wait of divisions loss call premium to ratio. towards declare ratio might -- see was a it's right? on this that And our was we you -- continue on those of view I rightly while loss The a mechanical terms written quarters better. somewhere couple saying the That definitely It's want Written quarters written for written the us.

inputs other setting really we'd be. the to conservative want X our we stands. think quarters of earn-through more It assumption. be than kind parts thought that it differently, think or portfolio to those and of will I of continued around on for I X some like through ex-cat see the that to a is to we're would development towards be working our of year already the still we And that changes take conservativeness see it right? if It's accident that time, it's to provided anything, years. But and pre-IPO accident our around comes others flow business, put as a divisions that our accident bit year. let those that we where start that to assume able where of through, us to chance have the little you to we

Jon Paul Newsome

on Maybe into obviously affect impact you're the you always wouldn't of -- divisions any I as shift update go you longer-term question. this products a XXXX, [indiscernible] has build know year and a Great. really much, it which new looking out we the if that to new in that folks but to years

Andrew Robinson

in adding wouldn't not Yes, no is for What I'm There's pausing we've -- it. magnet what and I'll we way a candidate I divisions. it's One in have that say question I'm kind I we're of one And effort I even I say that great that talent about that because to a is in about to that develop captives. more when And lots is that's fantastic a industry. certainly right of already our are and area question. done make it. be the see we our interviewing say from the a us become to concerted it, describe you'll of grow will opportunities place. best this we really which have repeat hopeful today,

We there about take can that have perspective we level. how to some another

AAC. on. and we addition in the last marine of year, a we particularly that some into can already a with that here That that so said, what's talent lines in lot we Ag you we're added sort X in working And X quarter, grow probably up inland I or We things heads the have think of around late and place. would first give add on ordinarily,

in probably for think things here earlier looking should they're to sort declare couple I you that us. from a of of development that are be

Operator

Hughes from from comes final Securities. our question Mark And Truist

Mark Hughes

not a yourself see how to performance, of auto, to think maybe as you're steps taking you to business? seen I in your frequency, you've commercial that from but the something severity, the see? in On claims, Have or some described protect visible book that the the -- starting you're started you deterioration in -- of is have

Andrew Robinson

Yes.

things us know a trucking. auto commercial we back, So transportation, allows that that using is on to components believe particularly the specialty technology So you One maybe there talked industry our step We right? and the our is claims. different just portfolio. our as unique sort and underwriting we principally than which about do, macro our that have we often you X intermodal core of have others to do within really vastly something

material those exposure is specific And owner the you're aware, as which, are also captive And participants. captives, directly of a have where with course, we have of points program through X focus. We in business. our the one we shared are

What levels. the benefit of back I'd that is with to we towards you oriented -- got That's it's that, unique our surprise let's during say kind say no yes, period. not COVID frequency, to expected obviously, book just to a unsurprisingly,

auto back news On we severity up. to features side, point can going good comments it, have inflation see and way, it. is of the definitely our the high continue the to can pricing our inflation. can pretty ahead inflation. that our it's is right? actually is to we or number. cost The measure XX%, severity right X% around By a earlier, loss on cost We loss be book We social and So

sense from And right? the it's fronted of cost general reinsurers think those are for caution terms simply like exposure, it's and we issue that book still time about to of earlier, change. Part I selectively that, of It's of will. Right learn think Don't ignored. a to that before view would things. relative as MGAs We're that understand in portfolio. simply our that around anything matter we into inflation. remarks sort We're the it's is that my business. of long-term just with their conducive are an just good or Something more can't doesn't not We right? loss we is view of I of us fine. being of irresponsible, solutions the the just has seem the if examples will sense than that's entities, defensive business, lean And our of But there context our doing offensive. macro that, our right just backdrop proportion, mentioned throw the business, of I to as sort durability other of now, appropriate. very find very here that's -- that overall of features I -- a I we It's work. some be our not that is MGAs, kind obviously, we just of in to is parts opportunity feel line smart up it. macro to

Mark Hughes

I this Yes. detail. all but same pace, faster, top more Understood. surety, Appreciate line slowly than grows do little surety you And think year? on a this, think touched you've to overall that the

Andrew Robinson

terrific we, probably It change doesn't obviously, material-sized That $XXX very year, General you're the with But a a as proud market I'm this business. if will circa going is becomes to business. or growing Well, business. right? will probably But our watch more cross cringe sort Counsel, surety my difficult surety We're it. million response, is be followed on a that amazing them, of gives business that lapping has ability is has they've to the The comes thing our -- talent it confidence for that I has think yourself been that this just that business us, point growth the case year-on-year-on-year. when the to of distinctive served us been has that to been talent. us And attract right? across

if that into of top part book roll. folks book market. in will, you just like it our the feels being who small further a And really rolls, a in It's those gets of kind by get that ways growing we're way, almost today. we and are of it -- the bit the great you obviously, So sort our follows without business we of outstanding you're seem at that books we attract size, be that And the in get to But maintain of that of And organization can and growth. larger, we're that that -- like. continues, of you underwriters. sort serve of market, really as the moving one the we of to sureties know, know underwriters if we country the to the the able business size one part are handful we

been seen can could is It you going more be by nature, we that to my of be the great with can to the attract, we date. answer continue it growth that continue to talent it's be kind both. able to very If attract to difficult. So we've that its we've

Operator

I to remarks. closing to for would turn Natalie over now like it

Natalie Schoolcraft

additional call earnings quarter and you your interest look and you I to day. questions again conference in and Specialties. participating our Skyward after for support with for the to answer We everyone, for continued call forward available in Thank our call. you, of speaking a am have. questions, may second your on any have Thanks, wonderful

Operator

the today's does for in you program. conclude conference. your participation This Thank

may disconnect. You now

Skyward Specialty Insurance (SKWD) 10 May 232023 Q1 Earnings call transcript