Company did not provide specific guidance or outlook due to pending acquisition by American Family
Result drivers
Premium growth - Gross written premiums rose 28% yr/yr, led by increases in Casualty (32.5%), Healthcare Liability (23.9%), and Baleen Specialty (311.1%) divisions
Loss ratio impact - Loss ratio increased to 67.3% from 66.2% due to lower ceded loss activity under excess of loss treaties and portfolio mix changes
Expense ratio improvement - Expense ratio fell to 28.6% from 30.6%, mainly due to business scaling and prudent expense management
Q2 results beat estimates
US specialty insurer's Q2 gross written premiums rose 28% yr/yr, driven by all divisions
Adjusted EPS and adjusted net income for Q2 beat analyst expectations
Company to be acquired by American Family in a $1.2 billion all-cash deal; conference call cancelled
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold"
Wall Street's median 12-month price target for Bowhead Specialty Holdings Inc is $33.00, about 7.9% above its July 31 closing price of $30.59
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago
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