Bowhead Specialty Holdings Inc., a provider of casualty and professional liability products, reported a gross written premiums (GWP) increase of 17.5% for the third quarter of 2025 to $231.5 million, compared to $196.9 million in Q3’24.
Meanwhile, Professional Liability increased by 1.7% to $45.7 million, Healthcare Liability increased by 11.1% to $34.8 million, and lastly, Baleen Specialty increased by 83.4% from the previous quarter to $6.2 million.
Net earned premiums increased by 22.1% to $128.4 million for the quarter, compared to $105.1 million last year.
The firm’s combined ratio for Q3’25 increased slightly to 95.4% compared to 94.4% in Q3’24.
The Q3’25 loss ratio is 65.9%, an increase of 1.4 points compared to 64.5% in Q3’24. Of this, the 0.3 point increase in the current accident year loss ratio was driven by changes in portfolio mix. In the quarter, the casualty division, which has comparatively higher current accident year industry loss ratios, comprised a larger proportion of net earned premiums compared to the prior period.
Meanwhile, the quarter’s expense ratio was 29.5%, reflecting a decrease of 0.4 points compared to 29.9% for Q3’24, primarily driven by the 1.2 point decrease in operating expenses ratio and a 0.3 point increase in other insurance-related income.
The net investment income increased 30.9% in the quarter to $15 million, driven by a higher balance of investments and higher yields on invested assets. Bowhead’s investment portfolio had a book yield of 4.8% and a new money rate of 4.6% as of September 30th, 2025.
There was a decrease in the operating expenses ratio due to the continued scaling of business, where net earned premiums grew at a higher rate than expenses, and prudent management of our expenses.
For the quarter, Bowhead’s net income grew by 25.5% to $15.2 million, compared to $12.1 million in Q3’24. Meanwhile, adjusted net income for the quarter is $15.8 million, a 26.5% increase from last year’s $12.5 million.
Stephen Sills, Chief Executive Officer, Bowhead, commented, “Bowhead delivered another excellent quarter highlighted by consistent strong top and bottom line growth. Gross written premiums in the third quarter grew 17.5% year-over-year and adjusted net income grew 25.5%. We achieved adjusted return on equity of 15.1% and diluted adjusted earnings per share of $0.47.
“These results are a testament to our disciplined approach to underwriting, the continued expansion of our “craft” and “flow” underwriting operations, and our commitment to operational excellence. Collectively, these results reinforce what I’ve said in the past: Bowhead is a franchise built for enduring success and cross-cycle profitability.”
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