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- **Record Growth**: Q3 GWP up 17.5% to $232M, driven by 20% Casualty and 83% Baleen premium growth. Adjusted EPS of $0.47 reflects 25.5% net income increase.
- **Operational Efficiency**: Expense ratio drops to 29.5% via automation, with plans for further reductions through tech scaling.
- **Investment Strength**: 31% YoY investment income growth to $15M, supporting 16% equity increase to $431M.
- **Strategic Focus**: Expanding into cyber liability and healthcare exclusions, avoiding competitive D&O and financial institution markets.

**【CEO Summary Section】**
- Q3 2025 gross written premiums (GWP) increased 17.5% YoY to $232 million, driven by 20% growth in Casualty and 11% in Healthcare Liability. Adjusted net income rose 25.5% to $15.8 million, with EPS of $0.47.
- Casualty division focuses on excess liability for construction, distribution, and public entities, avoiding high-risk classes. Healthcare division benefits from exclusions for sexual abuse claims.
- Baleen, the digital underwriting platform, generated $6.2 million in Q3, 83% growth from Q2, targeting small to mid-market cyber liability.
- Expense ratio improved to 29.5% (down 40bps YoY) due to automation and workflow optimization.

**【COO Operational Efficiency】**
- Technology initiatives streamlined underwriting, claims processing, and actuarial modeling, reducing manual tasks and enhancing scalability.
- Targeting further expense ratio reductions through operational leverage and technology-driven growth.

**【CFO Financial Highlights】**
- Net investment income grew 31% YoY to $15 million, with a book yield of 4.8% and AA credit quality. Total equity reached $431 million, up 16% YoY.
- Combined ratio improved to 95.4%, with a 1.4pt increase in loss ratio due to casualty mix shift. Fee increases with American Family offset by expense management.
- Planning to access non-equity capital by end-2025 to support growth without equity dilution.

**【Q&A Highlights】**
- Cyber and D&O markets remain competitive, with limited pricing power. Construction project growth expected post-government shutdown, but lumpy and selective.
- Sexual abuse exclusions gaining traction in healthcare, creating new market opportunities. No immediate plans for new product lines beyond existing tech-driven expansion.
- 2026 capital strategy excludes equity raises; exploring debt and reinsurance options. Reserves remain conservative with 88% IBNR reliance on industry data.

Bowhead Specialty Holdings Inc. (BOW) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

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Income (Loss) from Associates

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Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS from Discontinued Operations

BOW

BOW fundamentals

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