Investments (Tables)

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities, Trading, and Equity Securities, FV-NI

The following tables set forth the amortized cost and the fair value by investment category at September 30, 2025 and December 31, 2024:


($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
September 30, 2025
Fixed maturity securities, available-for-sale:
U.S. government securities	$	75,931	$	286	$	(30)	$	—	$	76,187
Corporate securities and miscellaneous	594,623		14,213		(4,034)		(7,000)		597,802
Municipal securities	100,748		1,648		(2,393)		—		100,003
Residential mortgage-backed securities	497,582		7,904		(10,310)		—		495,176
Commercial mortgage-backed securities	71,950		1,046		(612)		—		72,384
Other asset-backed securities	459,234		5,560		(1,128)		—		463,666
Total fixed maturity securities, available-for-sale	$	1,800,068	$	30,657	$	(18,507)	$	(7,000)	$	1,805,218
Fixed maturity securities, held-to-maturity:
Other asset-backed securities	$	34,804	$	2,699	$	—	$	(236)	$	37,267
Total fixed maturity securities, held-to-maturity	$	34,804	$	2,699	$	—	$	(236)	$	37,267


($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss		Allowance for Credit Losses		Fair Value
December 31, 2024
Fixed maturity securities, available-for-sale:
U.S. government securities	$	26,577	$	35	$	(126)	$	—	$	26,486
Corporate securities and miscellaneous	433,298		5,618		(13,288)		—		425,628
Municipal securities	89,966		116		(5,366)		—		84,716
Residential mortgage-backed securities	408,585		1,875		(16,627)		—		393,833
Commercial mortgage-backed securities	70,262		545		(1,443)		—		69,364
Other asset-backed securities	291,578		2,447		(1,834)		—		292,191
Total fixed maturity securities, available-for-sale	$	1,320,266	$	10,636	$	(38,684)	$	—	$	1,292,218
Fixed maturity securities, held-to-maturity:
Other asset-backed securities	$	39,396	$	—	$	(436)	$	(243)	$	38,717
Total fixed maturity securities, held-to-maturity	$	39,396	$	—	$	(436)	$	(243)	$	38,717

Schedule of Investments Classified by Contractual Maturity Date

The following table sets forth the amortized cost and fair value of available-for-sale fixed maturity securities by contractual maturity at September 30, 2025:



($ in thousands)	Amortized Cost		Fair Value
Due in less than one year	$	41,043	$	40,596
Due after one year through five years	445,407		444,540
Due after five years through ten years	231,147		235,749
Due after ten years	53,705		53,107
Mortgage-backed securities	569,532		567,560
Other asset-backed securities	459,234		463,666
Total	$	1,800,068	$	1,805,218

Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The following tables set forth the gross unrealized losses and the corresponding fair values of investments, aggregated by length of time that individual securities had been in a continuous unrealized loss position as of September 30, 2025 and 2024:


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
September 30, 2025
Fixed maturity securities, available-for-sale:
U.S. government securities	$	5,342	$	—	$	2,051	$	(30)	$	7,393	$	(30)
Corporate securities and miscellaneous	52,842		(149)		69,438		(3,885)		122,280		(4,034)
Municipal securities	11,359		(311)		23,913		(2,082)		35,272		(2,393)
Residential mortgage-backed securities	64,023		(527)		79,215		(9,783)		143,238		(10,310)
Commercial mortgage-backed securities	996		(1)		10,412		(611)		11,408		(612)
Other asset-backed securities	48,244		(116)		18,502		(1,012)		66,746		(1,128)
Total fixed maturity securities, available-for-sale	182,806		(1,104)		203,531		(17,403)		386,337		(18,507)


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
December 31, 2024
Fixed maturity securities, available-for-sale:
U.S. government securities	$	15,938	$	(34)	$	2,297	$	(92)	$	18,235	$	(126)
Corporate securities and miscellaneous	136,888		(2,060)		81,232		(11,228)		218,120		(13,288)
Municipal securities	41,930		(1,046)		27,687		(4,320)		69,617		(5,366)
Residential mortgage-backed securities	201,407		(3,366)		82,496		(13,261)		283,903		(16,627)
Commercial mortgage-backed securities	9,411		(126)		13,178		(1,317)		22,589		(1,443)
Other asset-backed securities	75,119		(721)		29,851		(1,113)		104,970		(1,834)
Total fixed maturity securities, available-for-sale	480,693		(7,353)		236,741		(31,331)		717,434		(38,684)
Fixed maturity securities, held-to-maturity:
Other asset-backed securities	2,144		(2)		36,573		(434)		38,717		(436)
Total fixed maturity securities, held-to-maturity:	2,144		(2)		36,573		(434)		38,717		(436)
Total	$	482,837	$	(7,355)	$	273,314	$	(31,765)	$	756,151	$	(39,120)

Schedule of Available-for-Sale, Changes in Allowance for Credit Loss

The following table sets forth the changes in the allowance for credit losses on available-for-sale securities and held-to-maturity securities during the nine months ended September 30, 2025 and 2024:


($ in thousands)	Fixed Maturity Securities, Available-For-Sale		Fixed Maturity Securities, Held-to-Maturity
Balance at December 31, 2024	$	—	$	243
Current period provision for credit losses	—		7


Balance at March 31, 2025	$	—	$	250
Current period provision for credit losses	6,150		18


Balance at June 30, 2025	$	6,150	$	268
Current period provision for credit losses	850		—
Recoveries of amounts previously written off	—		(32)
Balance at September 30, 2025	$	7,000	$	236


	Fixed Maturity Securities, Held-to-Maturity
Balance at December 31, 2023	$	329



Balance at March 31, 2024	$	329


Recoveries of amounts previously written off	(104)
Balance at June 30, 2024	$	225
Current period provision for credit losses	14
Balance at September 30, 2024	$	239

Schedule of Held-to-Maturity, Changes in Allowance for Credit Loss


($ in thousands)	Fixed Maturity Securities, Available-For-Sale		Fixed Maturity Securities, Held-to-Maturity
Balance at December 31, 2024	$	—	$	243
Current period provision for credit losses	—		7


Balance at March 31, 2025	$	—	$	250
Current period provision for credit losses	6,150		18


Balance at June 30, 2025	$	6,150	$	268
Current period provision for credit losses	850		—
Recoveries of amounts previously written off	—		(32)
Balance at September 30, 2025	$	7,000	$	236


	Fixed Maturity Securities, Held-to-Maturity
Balance at December 31, 2023	$	329



Balance at March 31, 2024	$	329


Recoveries of amounts previously written off	(104)
Balance at June 30, 2024	$	225
Current period provision for credit losses	14
Balance at September 30, 2024	$	239

Schedule of Gain (Loss) on Securities

The following table sets forth the components of net investment gains for the three and nine months ended September 30, 2025 and 2024:


	Three months ended September 30,				Nine months ended September 30,
($ in thousands)	2025		2024		2025		2024
Gross realized gains
Fixed maturity securities, available-for-sale	$	701	$	575	$	1,606	$	1,405
Equity securities	17,076		1,591		34,262		3,165
Other	109		62		709		170
Total	17,886		2,228		36,577		4,740
Gross realized losses
Fixed maturity securities, available-for-sale	(1,191)		(11)		(9,788)		(871)
Equity securities	(745)		(280)		(3,000)		(2,571)
Other	(82)		(142)		(192)		(152)
Total	(2,018)		(433)		(12,980)		(3,594)
Net unrealized gains (losses) on investments
Equity securities	(14,551)		7,512		(22,900)		14,802
Mortgage loans	(69)		866		195		807
Other	5,633		—		16,028		—
Net investment gains	$	6,881	$	10,173	$	16,920	$	16,755

Schedule of Investment Income

The following table sets forth the proceeds from sales of available-for-sale fixed maturity securities and equity securities for the nine months ended September 30, 2025 and 2024:


	Nine months ended September 30,
($ in thousands)	2025		2024
Fixed maturity securities, available-for-sale	$	61,461	$	17,540
Equity securities	126,738		22,993

The following table sets forth the components of net investment income for the three and nine months ended September 30, 2025 and 2024:


	Three months ended September 30,				Nine months ended September 30,
($ in thousands)	2025		2024		2025		2024
Income (loss):
Fixed maturity securities, available-for-sale	$	21,354	$	15,461	$	57,095	$	41,099
Fixed maturity securities, held-to-maturity	(453)		953		(453)		3,205
Equity securities	95		591		1,204		1,969
Equity method investments	345		(1,144)		(2,541)		2,596
Mortgage loans	283		1,158		1,214		4,165
Indirect loans	(1,504)		(401)		(6,494)		(1,874)
Short-term investments and cash	3,260		3,709		10,159		11,370
Other	836		836		2,607		2,360
Total investment income	24,216		21,163		62,791		64,890
Investment expenses	(2,036)		(1,628)		(2,684)		(5,024)
Net investment income	$	22,180	$	19,535	$	60,107	$	59,866

The following table sets forth the Company’s gross investment income for mortgage loans for the three and nine months ended September 30, 2025 and 2024:


	Three months ended September 30,				Nine months ended September 30,
($ in thousands)	2025		2024		2025		2024
Commercial	$	108	$	376	$	325	$	1,685
Retail	—		513		304		1,473
Hospitality	175		269		585		1,007




	$	283	$	1,158	$	1,214	$	4,165

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table sets forth the change in net unrealized gains (losses) on the Company’s investment portfolio, net of deferred income taxes, included in other comprehensive loss for the three and nine months ended September 30, 2025 and 2024:


	Three months ended September 30,				Nine months ended September 30,
($ in thousands)	2025		2024		2025		2024
Fixed maturity securities	$	15,505	$	37,257	$	40,192	$	26,898
Deferred income taxes	(3,300)		(7,824)		(8,533)		(5,648)
Total	$	12,205	$	29,433	$	31,659	$	21,250

Skyward Specialty Insurance Group, Inc. 10-Q