Bowhead Specialty Holdings Inc. Q3 FY2025 earnings call

• Disciplined underwriting in Casualty division: Launched in 2020 to capitalize on hardening E&S casualty market, selective in risks, avoids certain classes like primary commercial auto. - Healthcare liability market: Reputation generating opportunities, sexual abuse/molestation exclusions gaining traction. - Professional liability: Competitive conditions except for commercial public D&O; using Baleen's technology for small/middle market cyber liability. - Achieved expense ratio of 29.5%, using technology to streamline processes, enhance decision-making, and support distribution partners. - Investment portfolio: Net investment income increased 31% to $15 million due to higher investments and yields.

Gross written premiums increased 17.5% year-over-year to approximately $232 million in Q3 2025. The Casualty division grew 20% to $145 million, driven by excess casualty business. The Healthcare Liability division saw premiums increase 11% to $35 million from growth in health care management liability, hospitals, and senior care portfolios. The Professional Liability division had premiums up 2% to $46 million, with growth in commercial, public D&O, and cyber liability partially offset by decline in financial institutions portfolio. Baleen generated $6.2 million in premium during the quarter, representing 83% growth from Q2 and exceeding first half 2025 total premiums.

• Confident in maintaining and improving expense ratio, having achieved 29.5% in Q3. - Planning to access capital through non-equity sources by year-end as growth outpaces initial IPO expectations. - Expect net investment income to grow with continued growth of investment portfolio.

• Adverse reserve development in casualty lines for legacy carriers. - Competitive markets in professional liability, especially financial institutions and large cyber liability segments. - Uncertainties in construction projects due to interest rates, building materials, labor costs, and government shutdowns affecting infrastructure projects.

Q: Color on pricing evolution in D&O and cyber markets A: Pretty much flat, maybe a little up, but highly competitive, especially in financial institutions space which is crowded Q: Growth in casualty business, especially construction A: Data centers may have opportunities, but construction is lumpy; government shutdown end may release funds for projects, but opportunities are less predictable Q: Operating expense ratio and capital plans A: Technology driving efficiencies contributing to expense ratio improvement; not planning to tap equity market for growth funding, with surplus ratio expected to continue trajectory under 1 in next couple of years Q: View on accident year margin and reserve development A: Book is young, too early to say; last few years hard markets may have margin issues, but book is not in same space as auto or primary lines; annual reserve review in Q4 will provide more color