Bowhead Specialty Q2 adjusted EPS beats estimates,  to be acquired by American Family

Bowhead Specialty Holdings

03/08/2026 13:13

Overview
US specialty insurer's Q2 gross written premiums rose 28% yr/yr, driven by all divisions
Adjusted EPS and adjusted net income for Q2 beat analyst expectations
Company to be acquired by American Family in a $1.2 billion all-cash deal; conference call cancelled

Outlook
Company did not provide specific guidance or outlook due to pending acquisition by American Family

Result Drivers
PREMIUM GROWTH - Gross written premiums rose 28% yr/yr, led by increases in Casualty (32.5%), Healthcare Liability (23.9%), and Baleen Specialty (311.1%) divisions
LOSS RATIO IMPACT - Loss ratio increased to 67.3% from 66.2% due to lower ceded loss activity under excess of loss treaties and portfolio mix changes
EXPENSE RATIO IMPROVEMENT - Expense ratio fell to 28.6% from 30.6%, mainly due to business scaling and prudent expense management

Company press release: ID:nBw3YN7dba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
$0.48
$0.47 (8 Analysts)
Q2 EPS
 
$0.48
 
Q2 Adjusted Net Income
Beat
$16.15 mln
$15.70 mln (5 Analysts)
Q2 Net Income
 
$16.14 mln
 
Q2 Pretax Profit
 
$20.66 mln
 
Q2 ROE
 
13.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold."
Wall Street's median 12-month price target for Bowhead Specialty Holdings Inc is $33.00, about 7.9% above its July 31 closing price of $30.59
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)