Bowhead Specialty Q2 2025 Earnings Report

Bowhead Specialty EPS Results

• Actual EPS: $0.37
• Consensus EPS: $0.36
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: N/A

Bowhead Specialty Revenue Results

• Actual Revenue: $232.36 million
• Expected Revenue: $134.66 million
• Beat/Miss: Beat by +$97.70 million
• YoY Revenue Growth: N/A

Bowhead Specialty Announcement Details

• Quarter: Q2 2025
• Date: 8/5/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, August 5, 2025
• Conference Call Time: 8:30AM ET

Bowhead Specialty (NYSE:BOW) provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions for financial institutions, private and public directors and officers liability insurance, errors and omissions liability insurance, and cyber segments; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and healthcare management liability segments. The company distributes its products through distribution partners in wholesale and retail markets. Bowhead Specialty Holdings Inc. was formerly known as Bowhead Holdings Inc. and changed its name to Bowhead Specialty Holdings Inc. in March 2024. The company was founded in 2020 and is based in New York, New York. Bowhead Specialty Holdings Inc. operates as a subsidiary of Bowhead Insurance Holdings LP.

Bowhead Specialty Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record growth as Bowhead’s gross written premiums climbed 32% to $232 million in Q2, with adjusted net income up 62% and adjusted EPS rising 32% year-over-year.
• Positive Sentiment: Underwriting discipline drove a combined ratio of 96.8%, with the loss ratio at 66.2% and expense ratio down to 30.6% thanks to scaling efficiencies.
• Positive Sentiment: Net investment income jumped 56% to $13.7 million, supported by a 4.7% book yield, 4.8% new money rate, AA credit quality and a 2.8-year duration portfolio.
• Positive Sentiment: In its fourth full quarter, the Baleen flow underwriting platform generated $3.4 million of premiums with steady month-over-month growth and proven technology automation.
• Negative Sentiment: Incremental competition in excess casualty and large account cyber liability markets persists, potentially constraining rate increases and limit deployment.

Presentation

[Operator]

Hello, and welcome to Bowhead Specialty's Q2 twenty twenty five Earnings Call. With that, I would like to turn the call over to Shirley Yap, Head of Investor Relations. Shirley, you may begin.

[Shirley Yap, Chief Accounting Officer & Head - IR at Bowhead Specialty Holdings]

Thanks, Stefan. Good morning, and welcome to Bowhead's second quarter twenty twenty five earnings conference call. I'm Shirley Yap, Bowhead's Chief Accounting Officer and Head of Investor Relations. Joining me today are Steven Sills, our chief executive officer, and Brad Mulcahy, our chief financial officer. Earlier this morning, we released our financial results for the 2025.

[Shirley Yap, Chief Accounting Officer & Head - IR at Bowhead Specialty Holdings]

You can find our earnings release in the Investors Relations section of our website. Our Form 10 Q will be also available on our website later this evening. Before we begin, I'd like to remind everyone that this call contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors should not place undue reliance on any forward looking statement. These statements are made only as of the date of this call and are based on management's current expectations and belief.

[Shirley Yap, Chief Accounting Officer & Head - IR at Bowhead Specialty Holdings]

Forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements. You should review the risks and uncertainties fully described in our SEC filings. We expressly disclaim any duty to update any forward looking statement except as required by law. Additionally, we will be referencing certain non GAAP financial measures on this call. Reconciliations of these non GAAP financial measures to their respective most directly comparable GAAP measure can be found in the earnings release we issued this morning and in the investor relations section of our website.

[Shirley Yap, Chief Accounting Officer & Head - IR at Bowhead Specialty Holdings]

With that, I'll turn the call over to Steven. Steven?

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Thank you, Shirley. Good morning, everyone, and thank you for taking the time to join our call today. I'm pleased to share that Bowhead once again delivered outstanding results across the board in q two. Gross written premiums increased 32%, while adjusted net income increased 62%, and diluted adjusted earnings per share increased 32%. These results demonstrate what we have consistently communicated since the establishment of our company, that underwriting matters.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

From the top down underwriting profitability is our North Star. Starting with GWP, Bo had generated a record 232,000,000 in premiums during the quarter. This equates to 32% year over year growth. We're pleased that this was driven by double digit growth across all of our craft underwriting divisions. Once again, our casualty division comprised the largest portion of our premium growth with a 32% increase to a 151,000,000.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

This growth in casualty was primarily driven by our excess casualty book, where despite signs of increased competition, for now, we're continuing to see favorable underwriting and pricing conditions. We also experienced modest premium growth in our primary construction project book, where we're able to deploy low 1,000,000 or $2,000,000 limits with favorable pricing terms and conditions. In our professional liability division, premiums increased 23% to 55,000,000 for the quarter. Although we continued to experience challenging underwriting conditions, we found profitable growth opportunities at all departments with commercial public d and o driving more than half of our growth. In last quarter's call, we mentioned that we had started to see shoots of market stabilization.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

This quarter, the positive developments continued. We capitalized on some new opportunities and retained the large proportion of our renewals at or near expiring rates. In the second quarter, premiums in our health care liability division increased 39% to 24,000,000. The growth came from all departments. As we mentioned last quarter, we continue to grow the book responsibly.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Where underlying numbers don't meet our profitability targets, we've continued to decline or let other carriers renew our accounts. During the quarter, Baleen generated 3,400,000.0 of premiums during its fourth full quarter of operations. While still a small contributor to Bowhead's overall premiums, We're achieving steady month over month growth and are continuing to expand our flow underwriting operation to support our cross cycle strategy. Before discussing our views on the E and S market we operate in, I'll turn the call over to Brad to discuss our strong q two results in more detail.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Thanks, Steven. Foe had generated adjusted net income of $12,800,000 or zero three seven dollars per diluted share and adjusted return on average equity of 12.8% for the 2025. Gross written premiums increased more than 32% to a record $232,000,000 for the quarter. As Stephen mentioned, we achieved double digit growth in each of our craft underwriting divisions with casually continuing to drive the growth and Baleen generating $3,400,000 of premiums in the quarter. Turning to our loss ratio.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

There are several elements that affect our loss ratios. First, as a reminder, since we're a relatively new company, writing long tail lines with a short loss history, When setting our loss reserves, we're heavily reliant on industry observed loss information over our own internal debt. This reliance is reflected in our high ratio of IBNR as a percentage of total reserves, which was 87.5 at the end of the quarter. Second, product mix affects our industry reliant loss ratio because casualty products naturally have higher current accident year loss ratio assumptions compared to our other products. Since our casualty division comprises an ever larger proportion of our net earned premium, our industry reliant loss ratio has been trending higher.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

This has had the effect of increasing our current accident near loss ratio by 0.6 points from 65 and a half percent in q two of last year to 66.1% this quarter. Next, seasonality also has an effect on our loss ratio. During the first quarter when incentive compensation is paid to our internal claims team, also known as paid ULE, our loss ratio tends to be higher before historically normalizing after the first quarter. This had the effect of decreasing our loss ratio by 0.7 points from 66.9% in q one of this year to 66.2% this quarter. Lastly, as we mentioned in the previous quarter, the 0.1 year over year change in our prior accident year loss ratio is simply due to loss ratios being applied to audit premiums that were billed and fully earned in the quarter but related to prior accident years.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

This is not based on actual losses settling for more than reserves and does not represent an increase in estimated reserves on unresolved claims. We are simply putting loss reserves into the appropriate accident year when the premiums are booked. As a result, our loss ratio for the quarter was 66.2%, a 0.7 increase from 65.5% year over year. Our expense ratio for the quarter was 30.6%, a decrease of 3.2 points compared to 33.8% year over year. The decrease was driven by the reduction in our operating expense ratio from the continued scaling of our business as well as the prudent management of our expenses.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

There's also an increase in our other insurance related income, which consists of minimal policy fees and insurance related services that contributed to the reduction in our expense ratio from last year. These improvements were partially offset by an increase in our net acquisition ratio, driven by portfolio mix and, to a lesser extent, a reduction in earned ceding commissions. In terms of our net acquisition ratio, in late May, on anniversary from our IPO, the fee we paid to American Family increased from 2% to 2.75%. The impact on our q two net acquisition ratio was minimal, but we expect the increased fee to trickle into our net acquisition ratio the rest of the year as premiums affected by the increase are earned. From an expense ratio perspective, we expect the increased fee we pay to American Family to be offset by the continued scaling of our business and the prudent management of our expenses.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Overall, the loss ratio and expense ratio contributed to a combined ratio of 96.8% for the quarter. Turning to our investment portfolio. Net investment income increased 56% year over year to 13,700,000 for the quarter, primarily due to higher average balance of investments and higher yields on invested assets. Our investment portfolio had a book yield of 4.7% and a new money rate of 4.8% at the end of the quarter. The average credit quality of our investment portfolio remained at AA, and our average duration was two point eight years at the end of the quarter.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Lastly, total equity was $4.00 $8,000,000 giving us a diluted book value per share of $12.04 at the end of the quarter, an increase of 9% from year end. Before turning the call back to Steven, I wanted to provide an update on our May 1 seeded reinsurance renewals, which apply to all of our departments except for our cyber liability products. Our cyber liability products are covered by our 60% quota share treaty, which renews January 1. Overall, we increased our quota share treaty from 25 to 26%, and our excess of loss treaty increased from 60.1% to 65%. Ceding commissions in our May 1 renewals remained unchanged from 2024.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

With that, I'll turn the call back over to Steve.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Thanks, Brad. In terms of the E and S market we operate in, let's start with casualty. Within the excess casualty segment, we continue to see overall discipline in limit deployment and rates. However, consistent with trends communicated by other carriers, we've seen a modest uptick in competition, which is in line with the expectations of an underwriting cycle. In terms of MGAs, while they are present, their influence in the areas we operate in are minimal at this time.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

We often see them participating in the upper end of towers where brokers struggle to fill capacity. Despite the uptick in competition with excess casualty markets still making up for legacy losses, we don't expect to see limits going back up or an across the board price drop anytime soon. New business opportunities for excess towers being reshuffled for price, limit reductions, or changing appetites from incumbents still far outweigh instances of unreasonably competitive renewals. In the E and S construction project sector, we're starting to see a deceleration of new construction projects. Tariffs are creating uncertainty around building material costs.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Stricter immigration policies are resulting in uncertainty around the availability and costs of labor, and the interest rate environment remains uncertain. In professional, with the exception of public d and o, we're continuing to see challenging market conditions, particularly in financial institutions and large cyber liability accounts. In public d and o, as we mentioned, we started seeing signs of market stabilization. Legacy markets started to push back on broker requests for rate decreases, and brokers began telling clients to anticipate flat or rising rates. With Markel exiting the segment, we're also seeing more turnover on programs creating potential opportunities.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

While there are limited shoots of small improvements, we remain disciplined in our underwriting. The financial institution space continues to be the most challenging, driven by an overabundance of capacity. In cyber liability, market conditions in the large account space remain competitive. We're seeing new limit opportunities on large accounts, but they're being taken up by new broker facilities. Ahead of these conditions, we've leveraged our technology to cost effectively underwrite small and middle market accounts.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Turning to health care liability, this remains a competitive landscape with pockets of positive developments. For example, in hospitals, we're seeing rate increases, but the industry is still working through coverage terms and conditions around emerging regulatory, crime, and abuse risks within the sector. Likewise, in senior care, we're seeing some strong rate on renewals due to industry claim activities, but competition still remains strong. Overall, with our disciplined approach to underwriting and our expanding craft and flow platforms, Bowhead is a franchise being built for enduring success and cross cycle profitability. With that, we'll turn the call over for questions.

[Operator]

Thank you. If you would like to ask a question, please click the raised hand button found on the black bar at the bottom of your screen. When it's your turn, you'll receive a message from the host allowing you to talk, then you'll hear your name called. Please accept, unmute your audio, and ask your question. As a reminder, we are allowing analysts one question and a relevant follow-up.

[Operator]

We'll wait one moment to allow our queue to form. We'll take our first question from Meyer Shields with Keith, Brereton Woods. Please unmute your line and go ahead.

[Meyer Shields, Managing Director at Keefe, Bruyette & Woods (KBW)]

Great. Thank you so much, and good morning. Steven, I was hoping you could comment on how fungible the significant capacity that you described as available for financial institutions is for other professional liability products. Does that tend to leak out, or is it restricted to that particular segment?

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

At this time, it seems to be that particular segment. In past years, financial institutions have been generally the hardest of the markets because of the the risk of contagion. So we're kinda surprised, but there are losses in the business and people haven't pulled back. And, it just seems to be, the worst of the various classes within the DNO world, at least at this time.

[Meyer Shields, Managing Director at Keefe, Bruyette & Woods (KBW)]

Okay. That's helpful. And and more broadly, I was hoping for an update on what you're seeing or, I guess, either in Mohit's book or more broadly in terms of social inflation, specifically on professional liability where presumably don't have the physical injuries that are such a major component of of current social inflation?

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Sure. We're seeing it much more on the casualty side. Claims that once settled for $23,000,000 could go at 10 plus. We also think part of the problem is and it's also you know, we've talked about the opportunity that was created by people cutting back from 25,000,000 to $5,000,000 layers, which created opportunities for markets like us, you know, going back several years to be able to to fill in those holes and and get a foothold in the market. The downside of what's happening there sometimes is that when a carrier has $5,000,000 and they get pressure from markets up above to settle claims, companies are being more willing to just throw their 5,000,000 on the table and walk away from the claim and leaving it for the responsibility of the rest of the tower.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

And that, I think, has also led to the, the rise in some of these claims settlements.

[Meyer Shields, Managing Director at Keefe, Bruyette & Woods (KBW)]

Great. Thank you so much.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Thank you.

[Operator]

Our next question comes from Paul Newsome with Piper Sandler. Please unmute your line, and go ahead.

[Paul Newsome, MD & Senior Research Analyst at Piper Sandler Companies]

Good morning. I was hoping you could give me a little bit more thoughts and, guidance on how we should think about the investment income outlook, and specifically to the, if as your mix shifts, how we should think about the, the reserve mix. So you got a long tail out of business, you've got rapid growth. I'm not certain exactly how I should put the numbers together when I'm thinking about how the underlying, cash flows will grow, whether or they sort of accelerate here because of the long tail or if it's consistent with sort of overall investment of, size of the business growth. Any Any thoughts you have there would be really helpful.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Sure. Hey, Paul. This is Brad. I can talk talk on that one. I think it's reasonable, like you said, long tail lines, investment income should continue to grow due to increased balances being invested.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

If I look back, there there is a little seasonality in in q one. I think if you did the math on our queue, there would be about $60,000,000 of cash that went into the investment portfolio as free cash. That's probably the low end because we have our bonus payments that are paid in cash in q one. You'll see in q two, I think that number's about 80,000,000. So it's maybe, you know, sort of a, you know, higher end or as we as we continue to grow, we will end up paying more claims, which would probably be the one variable in the future that would increase.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

But, again, as premiums increase, long tail lines, I think, you know, if you think about adding another, you know, somewhere between 60 and $90,000,000 to the portfolio each quarter, you know, 5% or so new money rate, I think that's kinda how we're we're looking at it.

[Paul Newsome, MD & Senior Research Analyst at Piper Sandler Companies]

But but we're you have any thoughts about whether or you're really big new material increase in the portfolio or should be rate or is it all just about the size of the portfolio at this point?

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

You know, I can't control the rates. I can control the the size and and how we grow it. So that's kinda what we focus on, and I think it'll it'll mostly come from from that. Who knows where where rates will go? That's your guess is probably better than mine, honestly.

[Paul Newsome, MD & Senior Research Analyst at Piper Sandler Companies]

Well, I'm very disappointed you can't control the rates. I'm just kidding. Yeah. Appreciate your help.

[Operator]

Our next question comes from Matt Carletti with Citizens Capital. Please unmute your line and go ahead.

[Matt Carletti, Managing Director at Citizens JMP]

Hey. Good morning. We could I wanna ask a question on Balin. We can obviously see the numbers coming through, but I was hoping maybe, Steven, you could give us a little bit of a qualitative rather than quantitative update on just how that's going and kind of, you know, your outlook.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Sure. Very positive on the outlook. The numbers are not what we would have expected at this point in time, but the most important thing is the technology's been developed. It works. We're able to ingest the submissions, come up with quotes, bind issue policies with very little human intervention.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

So as far as I'm concerned, we're in a great position to be scaling the business. We believe that our quote ratio and our hit ratio on those quotes is appropriate for what it is that we're seeing. The thing that we're in the midst of doing, which will cause the business to scale more, is getting more submissions. That, getting people on, you know, 5 or $6,000 premium accounts to send them to an alternative market. And and we see that, you know, coming along.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

And I think you and everybody will be pleased with what they see, going forward on this on this business. But but we're very pleased where we are today, and, we think it's on a good path.

[Matt Carletti, Managing Director at Citizens JMP]

Great. Thank you. Appreciate it.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Sure.

[Operator]

Our next question comes from Sid Shah with Morgan Stanley. Please unmute your line. You can go ahead.

[Siddharth Shah, Senior Manager at Morgan Stanley]

Hey. This is Sid on for Bob. Good morning. First question on the expense ratio. As we kind of think about you guys continuing to scale longer term and continuing to invest in technology for BeiLean, what should we think about, like, a good kind of run rate going forward over the next year or so?

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Hey, Seth. This is Brad. I can take that one. I think you've seen it trend down, and I would say it's trending down. We're we're really happy with where it is now.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

We're right on the cusp of of breaking 30%, and I think that would be fantastic if we could get into a a glide path below 30%. But we do acknowledge I think, you know, we've got headwinds with our fee that we pay to American Family going up in the future. The acquisition ratio component of that is probably the one that you know, where where you'll see that come through. Our our brokerage commissions as a percentage of our net earned premiums have actually stayed relatively flat, but we do have some headwinds on that acquisition ratio with the the American family fee. Seating commissions, as everybody knows, haven't been great, so some headwinds there as well.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

But I think we're we're happy with if you look at the glide path where it's heading, and we'll continue to keep pressing as much as we can to get it below 30%.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Yeah. I'm confident we're gonna get below 30 in the next quarter. We'll get a run rate below that.

[Siddharth Shah, Senior Manager at Morgan Stanley]

Okay. Awesome. That's super helpful. And then next, when I think about your three, craft segments, where do you guys think of as, like, the strongest growth opportunities over the next year or so just given all the all the kind of, market environment you're seeing?

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Well, in terms of absolute dollars, I think you'd have to say it's the casualty business. In terms of percentage, it would be, baleen because it's starting from a small level, and, we think that's gonna grow nicely. But, you know, casualty, as you've seen over the last several quarters, has, you know, continue to grow. We believe it's the largest market, and it's an area that we've been adding talent, to grow. And, we think it's gonna continue to grow very nicely.

[Siddharth Shah, Senior Manager at Morgan Stanley]

Okay. Awesome. Really appreciate the color.

[Operator]

Our last question comes from Pablo Singzon with JPMorgan. Please go ahead.

[Pablo Singzon, Executive Director at J.P. Morgan]

Hi. Thank you. So first question for Brad. Just given that we're now in the second half of the year, can you please remind us of the timing of Boyd's annual assumption review? And if you could comment on how experience thus far in '25 is squaring against the assumptions you put in last year?

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Yeah. Thanks. I'll I'll maybe revisit what happened last year and and how we look at it this year as well. We do an annual review of our reserves with our external actuary in q four. Each quarter, we look internally and, you know, always reserve the right to make whatever changes we deem necessary.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

But for the past, you know, year and a half, q four has been the year when we when we actually change loss picks. Right now, we've got, I think, about 17 individual reserving segments that have individual loss picks for each year. And, you know, that's why we say when when the loss ratio changes, it's a mix change as those as the premium related to those 17 reserving segments moves around, you will see the loss ratio move each quarter. In q four, we'll get updated industry information from our third party actuaries, which, as I mentioned, that kinda drives most of our loss picks because of our limited history. At that stage, we we will, you know, determine, you know, how we how we absorb those into into our into our loss ratio.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Last year, I think you saw we did end up lowering the loss ratio because our I think our rate was just so much higher than loss trends. GBD, what that looks like in q four of this year, we, you know, there there are reserves. So even if the third party actuary comes along with lower loss picks, we may still still keep higher ones if we think that's prudent or not, but it'll be a a sort of a q four decision. Up until then, it's mostly mix. Or, as I said, if we see anything that, you know, midway through the year we wanna change, we we could do that as well.

[Pablo Singzon, Executive Director at J.P. Morgan]

Thanks, Brad. And then a second question on the, as a follow-up to the investment portfolio questions that we've had on the call. So I think your new money yield is only 10 bps above the portfolio yield, at least based on what you disclosed, right, 4.8 versus 4.7. So the question is, do you see any opportunities to boost the new money yield here, or would it bore would it be more reasonable to expect the portfolio yield to converge to 4.8? Of course, assuming no change in the overall interest rate environment. So

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

Yeah. I mean, we're looking at it every month and looking for, opportunities in in, different sectors that have the best spread. So we're constantly looking for, additional yield. And I think what you're seeing in the compression of a new money versus the portfolio yield is, just the success of doing that. You know, in the past year or so, we've really repositioned the portfolio into, for us, a longer duration compared to where we've been in the past and into those spread sectors that we're seeing the best yields.

[Brad Mulcahey, CFO at Bowhead Specialty Holdings]

So, you know, time will tell where where rates go, but we're really comfortable where where it is now. We'd love to see it get above 5%, but not something that we're gonna get fancy with or exotic with to go after to chase yield. Wish I wish I had a better answer for you, but that's kinda kinda where we are in the investment portfolio.

[Pablo Singzon, Executive Director at J.P. Morgan]

That's helpful. Thank you.

[Operator]

That concludes the question and answer portion for today's call. I will now hand the call back to Steven Sills, CEO, for closing remarks.

[Stephen Sills, Founder, President, CEO & Director at Bowhead Specialty Holdings]

Thank you. Bowhead delivered another quarter of impressive results. Thank you to our Bowhead team members for your continued dedication, and thank you to our shareholders for your continued support. Speak to you along the way. Thank you.

[Operator]

Thank you for joining today's session. The call has now concluded.

Participants

Executives

• Stephen Sills, Founder, President, CEO & Director
• Brad Mulcahey, CFO

Analysts

• Shirley Yap, Chief Accounting Officer & Head - IR at Bowhead Specialty Holdings
• Meyer Shields, Managing Director at Keefe, Bruyette & Woods (KBW)
• Paul Newsome, MD & Senior Research Analyst at Piper Sandler Companies
• Matt Carletti, Managing Director at Citizens JMP
• Siddharth Shah, Senior Manager at Morgan Stanley
• Pablo Singzon, Executive Director at J.P. Morgan