$BOW

Bowhead Specialty Holdings Inc.

CIK:0002002473|SEC Filings

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Gross written premiums	$ 297,894,000	$ 232,361,000	$ 514,635,000	$ 407,209,000
Ceded written premiums	(116,869,000)	(83,508,000)	(193,268,000)	(141,587,000)
Net written premiums	181,025,000	148,853,000	321,367,000	265,622,000
Change in net unearned premiums	(37,072,000)	(29,716,000)	(40,605,000)	(36,668,000)
Net earned premiums	143,953,000	119,137,000	280,762,000	228,954,000
Net investment income	18,820,000	13,677,000	36,847,000	26,236,000
Net realized investment losses	(11,200)	(11,200)	(32,100)	(15,200)
Other insurance-related income	1,095,000	460,000	1,974,000	805,000
Total revenues	163,857,000	133,263,000	319,551,000	255,980,000
Expenses
Net losses and loss adjustment expenses	96,945,000	78,900,000	188,427,000	152,327,000
Net acquisition costs	15,820,000	11,038,000	29,713,000	20,834,000
Operating expenses	26,384,000	25,849,000	52,187,000	49,785,000
Non-operating expenses	0	437,000	0	548,000
Warrant expense	783,000	783,000	1,558,000	1,558,000
Interest expense and financing fees	3,266,000	261,000	6,429,000	508,000
Foreign exchange (gains) losses	(2,000)	79,000	6,000	33,000
Total expenses	143,196,000	117,347,000	278,320,000	225,593,000
Income before income taxes	20,661,000	15,916,000	41,231,000	30,387,000
Income tax expense	(4,523,000)	(3,574,000)	(9,083,000)	(6,620,000)
Net income	16,138,000	12,342,000	32,148,000	23,767,000
Other comprehensive income
Change in unrealized (loss) gain on investments (net of income tax benefit (expense) of $986, $(847), $3,238, $(2,819), respectively	(3,710,000)	3,188,000	(12,183,000)	10,606,000
Total comprehensive income	$ 12,428,000	$ 15,530,000	$ 19,965,000	$ 34,373,000
Earnings per share:
Basic (in dollars per share)	$ 0.49	$ 0.38	$ 0.98	$ 0.73
Diluted (in dollars per share)	$ 0.48	$ 0.36	$ 0.96	$ 0.70
Weighted average shares outstanding:
Basic (in shares)	32,887,461	32,721,629	32,847,504	32,692,319
Diluted (in shares)	33,557,875	34,045,961	33,456,675	33,885,414

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 32,148,000	$ 23,767,000
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment losses	32,100	15,200
Amortization of premium/discounts on fixed maturity securities	(389,000)	(680,000)
Stock‐based compensation	5,283,000	1,440,000
Depreciation and amortization	1,329,000	757,000
Non-cash amortization of deferred issuance costs	126,000	0
Non-cash lease expense	638,000	605,000
Deferred income taxes	(3,859,000)	(2,038,000)
Warrant expense	1,558,000	1,558,000
Net changes in operating assets and liabilities:
Accrued investment income	(2,728,000)	(2,224,000)
Premium balances receivable	(37,955,000)	(25,177,000)
Reinsurance recoverable	(66,529,000)	(64,351,000)
Prepaid reinsurance premiums	(35,227,000)	(18,880,000)
Deferred policy acquisition costs	(10,207,000)	(4,553,000)
Income taxes receivable	(1,234,000)	(1,291,000)
Other assets	(2,999,000)	(2,749,000)
Reserve for losses and loss expenses	188,708,000	193,860,000
Unearned premiums	75,672,000	55,528,000
Reinsurance balances payable	19,799,000	10,757,000
Accrued expenses	(7,443,000)	(7,529,000)
Income taxes payable	0	(1,434,000)
Other liabilities	2,616,000	(679,000)
Net cash provided by operating activities	159,339,000	156,702,000
Purchases of:
Fixed maturity securities	(377,768,000)	(374,613,000)
Short-term investments	(4,954,000)	0
Proceeds from the sale and maturity of:
Fixed maturity securities	154,220,000	154,911,000
Short-term investments	5,000,000	10,000,000
Purchase of property and equipment, net	(2,644,000)	(2,795,000)
Net cash used in investing activities	(226,146,000)	(212,497,000)
Net cash used in financing activities
Capital contribution from parent	0	0
Taxes paid on withholding	(2,142,000)	0
Net cash used in financing activities	(2,142,000)	0
Net change in cash, cash equivalents and restricted cash	(68,949,000)	(55,795,000)
Cash, cash equivalents and restricted cash, beginning of period	233,770,000	222,058,000
Cash, cash equivalents and restricted cash, end of period	164,821,000	166,263,000
Reconciliation of restricted cash
Cash and cash equivalents	141,748,000	114,816,000
Restricted cash and cash equivalents	23,073,000	51,447,000
Total cash and cash equivalents and restricted cash	$ 164,821,000	$ 166,263,000

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Investments
Fixed maturity securities, available for sale, at fair value (amortized cost of $1,593,861 and $1,364,228, respectively)	$ 1,585,217	$ 1,371,006
Total investments	1,585,217	1,371,006
Cash and cash equivalents	141,748	193,545
Restricted cash and cash equivalents	23,073	40,225
Accrued investment income	13,686	10,958
Premium balances receivable	122,370	84,415
Reinsurance recoverable, net	466,205	399,676
Prepaid reinsurance premiums	227,048	191,821
Deferred policy acquisition costs	45,491	35,284
Property and equipment, net	11,951	10,636
Income taxes receivable	4,307	3,073
Deferred tax assets, net	29,574	22,476
Other assets	10,622	8,261
Total assets	2,681,292	2,371,376
Liabilities
Reserve for losses and loss adjustment expenses	1,318,644	1,129,936
Unearned premiums	628,266	552,594
Reinsurance balances payable	85,577	65,778
Debt	146,573	146,447
Income taxes payable	314	314
Accrued expenses	11,604	19,047
Other liabilities	16,375	7,986
Total liabilities	2,207,353	1,922,102
Commitments and contingencies (Note 14)
Mezzanine equity
Performance stock units	1,578	1,008
Stockholders' equity
Common stock	329	328
Additional paid-in capital	330,017	325,889
Accumulated other comprehensive (loss) income	(6,828)	5,354
Retained earnings	148,843	116,695
Total stockholders' equity	472,361	448,266
Total mezzanine equity and stockholders' equity	473,939	449,274
Total liabilities, mezzanine equity and stockholders' equity	$ 2,681,292	$ 2,371,376