Skyward Specialty Insurance Soars on $555 Million Acquisition Deal

Skyward Specialty Insurance (SKWD) shares rose 5.7% after announcing a $555 million acquisition of Lloyd's specialist Apollo Group Holdings. The deal is expected to benefit Skyward's financial performance, delivering double-digit adjusted EPS accretion and adding $1.5 billion in managed premium. JMP Securities reiterated its "Market Outperform" rating and raised its price target from $65 to $70.

Houston, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD), a leading specialty insurance provider, has announced the acquisition of Apollo Group Holdings Limited for a total consideration of $555 million. The deal, expected to close in the first quarter of 2026, subject to regulatory approvals, is poised to significantly enhance Skyward Specialty's market position and financial performance.

The acquisition includes a stock consideration of $184 million for employees and strategic investors, with the remaining $371 million paid in cash. This transaction is expected to deliver double-digit adjusted operating EPS (earnings per share) accretion in the first full year post-closing and add more than $1.5 billion in managed premium [1].

Apollo Group Holdings, a leading U.S. centric specialty underwriting platform operating at Lloyd’s of London, has seen its gross written premium grow at a compound annual growth rate of approximately 20% since its formation in 2010. The company operates through Syndicate 1969 and Syndicate 1971, providing unique and innovative solutions for specialty markets. Apollo’s CEO, David Ibeson, will join Skyward Specialty and continue to lead the Apollo business, with the Apollo team integrating into Skyward Specialty's operations.

Skyward Specialty Chairman and CEO Andrew Robinson commented, "We are delighted to reach an agreement to acquire Apollo. Their underwriting leadership and unique market positioning are exceptionally well-matched to Skyward Specialty’s strengths and vision. This acquisition aligns with our strategy to 'Rule Our Niche' and will accelerate innovation and growth in the specialty market."

The acquisition is expected to provide Skyward Specialty with access to attractive specialty classes, including Political Violence, Product Recall, and Specialty Disruption, as well as unique solutions designed for new economy industries. The strategic and cultural alignment between the two organizations sets the stage for future opportunities.

JMP Securities has reiterated its "Market Outperform" rating and raised its price target from $65 to $70 following the announcement. The transaction is expected to be financed through committed debt financing, with Barclays acting as financial advisor and Evercore as lead financial advisor to Skyward Specialty [1].

References:

[1] Skyward Specialty Insurance Group, Inc. News Release. (2025, September 02). Retrieved from https://investors.skywardinsurance.com/news-releases/news-release-details/skyward-specialty-insurance-group-acquire-apollo-group-holdings