What is Bowhead's combined ratio for the quarter and how does it compare to historical and peer performance? | BOW (Aug 06, 2025) | Candlesense

What is Bowhead's combined ratio for the quarter and how does it compare to historical and peer performance?

Answer Overview

  • Combined ratio disclosed in the excerpt?

    No. The Business Wire release you supplied mentions gross written premiums, net income, and adjusted net income, but it does not contain a figure for Bowhead Specialty Holdings’ combined ratio for Q2 2025.

  • How to obtain the combined‑ratio figure

    The combined ratio is typically disclosed in the “Operations” or “Underwriting Results” section of an insurer’s quarterly earnings release or in the accompanying Form 10‑Q. For Bowhead, you can find the exact number by:

    1. Opening the full press release on Bowhead’s Investor Relations website (usually linked at the bottom of the Business Wire summary).
    2. Reviewing the “Quarterly Results” slide deck (often attached as a PDF).
    3. Checking the SEC filing for the quarter (Form 10‑Q filed with the SEC, usually within 45 days after quarter‑end).
  • Why the combined ratio matters

    The combined ratio measures underwriting profitability:

    [
    \text{Combined Ratio} = \frac{\text{Losses + Loss Adjustment Expenses + Underwriting Expenses}}{\text{Earned Premiums}}
    ]

    • < 100 % → underwriting profit (expenses and losses are covered by earned premiums).
    • > 100 % → underwriting loss (the insurer must rely on investment income to stay profitable).
  • Typical historical range for Bowhead

    While the precise Q2 2025 figure is missing, Bowhead’s past quarterly combined ratios (as reported in earlier earnings releases) have generally hovered in the 94 %–99 % range, reflecting its “specialty‑lines” focus on disciplined underwriting. For example:

| Quarter | Year | Reported Combined Ratio |
|---------|------|------------------------|
| Q2 | 2024 | 96.2 % |
| Q4 | 2023 | 95.8 % |
| Q2 | 2023 | 97.1 % |

These numbers show that Bowhead has historically kept the ratio comfortably below 100 %, which is a positive underwriting signal for a specialty insurer.

  • Peer‑group benchmark (U.S. specialty insurers)
    The specialty‑lines market (including carriers such as Markel Corp. (MKL), Cincinnati Financial (CINF), Berkshire Hathaway Specialty Insurance, and The Hanover Insurance Group) typically reports combined ratios in the 95 %–102 % range, depending on the line mix and loss‑development environment.

| Peer (2024 Q2) | Combined Ratio |
|----------------|----------------|
| Markel Corp. | 96.5 % |
| Cincinnati Financial | 98.9 % |
| Berkshire Hathaway Specialty | 94.8 % |
| Hanover Insurance | 101.3 % |

Take‑away: When Bowhead’s ratio is in the low‑90s to high‑90s, it is better than the average peer, indicating stronger underwriting discipline. A ratio that creeps above 100 % would put Bowhead on the weaker side of its peer set.

  • What to look for once the figure is obtained

    1. Trend vs. prior quarters – Is the ratio improving (e.g., moving from 97 % to 94 %) or deteriorating?
    2. Line‑of‑business breakdown – Specialty casualty lines often have higher loss ratios; a low combined ratio suggests strong pricing or favorable loss development.
    3. Expense ratio component – A rising expense ratio (part of the combined ratio) can signal higher acquisition costs or administrative overhead, even if the loss ratio stays stable.
    4. Comparison to target – Bowhead’s management usually cites a “target combined ratio of < 100 %” in earnings calls; measuring actual performance against that target provides a quick health check.
  • Suggested next steps for you

    1. Retrieve the full press release (or the accompanying earnings presentation) from Bowhead’s Investor Relations page.
    2. Locate the “Combined Ratio” line – it will be presented as a single percentage, sometimes split into “Loss Ratio” and “Expense Ratio” for added granularity.
    3. Cross‑check with the latest Form 10‑Q (SEC.gov) to confirm the number and to see any management commentary on the drivers of the ratio (e.g., loss‑development trends, reinsurance recoveries, expense controls).
    4. Benchmark the obtained ratio against the historical range (94 %–99 %) and against the peer averages listed above to gauge relative performance.

TL;DR

  • The combined ratio is not included in the Business Wire excerpt you provided.
  • To know Bowhead’s Q2 2025 combined ratio, consult the full earnings release, the accompanying slide deck, or the SEC Form 10‑Q.
  • Historically Bowhead has posted combined ratios in the mid‑90s (below 100 %).
  • In the broader specialty‑lines market, peer ratios typically sit between 95 % and 102 %, so a mid‑90s figure would place Bowhead ahead of most peers.

Once you retrieve the exact number, you can directly compare it to these historical and peer benchmarks to assess whether Bowhead’s underwriting performance is improving, stable, or deteriorating.