BOW

NEW YORK, August 03, 2026--(BUSINESS WIRE)--Following the issuance of a news release earlier today announcing that Bowhead Specialty Holdings Inc. ("Bowhead", the "Company" or "us") (NYSE: BOW), has entered into a definitive merger agreement under which American Family will acquire Bowhead, the Company today announced financial results for the second quarter ended June 30, 2026(1) and cancelled the previously scheduled conference call to discuss its second quarter ended June 30, 2026 financial results. Second Quarter 2026 Highlights Gross written premiums increased 28.2% to $297.9 million. Net income of $16.1 million, or $0.48 per diluted share. Adjusted net income(2) of $16.1 million, or $0.48 per diluted share(2). Return on equity of 13.8% and adjusted return on equity(2) of 13.8%. Book value per share $14.39 and diluted book value per share of $14.12. Bowhead Chief Executive Officer, Stephen Sills, commented, "Since Bowhead's founding, we have benefited from a strong and trusting relationship with American Family, whose support and partnership have enabled us to build the company we are today. Over the years, they have developed a deep understanding of our business, our culture, and the underwriting discipline that defines Bowhead. I believe this transaction delivers compelling value to our stockholders while bringing together two organizations that share a long history, aligned values, and a commitment to disciplined underwriting and long-term success. I am proud of what the Bowhead team has accomplished, and I believe this combination recognizes the strength of the Bowhead franchise while continuing to enhance our ability to create value for our insureds, distribution partners and employees. I look forward to joining American Family and continuing to lead the Bowhead franchise." Mr. Sills continued, "Turning to our second quarter results, Bowhead once again delivered a strong quarter highlighted by consistent strong top and bottom line growth. Gross written premiums in the second quarter grew over 28% year-over-year, while adjusted net income grew over 26%, and diluted adjusted earnings per share grew just under 30%." Underwriting Results The 28.2% increase in gross written premiums to $297.9 million in the second quarter of 2026 was driven by our increasing renewal book, new business and continued growth in our platform across all divisions: Our Casualty division led the growth with a 32.5% increase to $199.8 million; Professional Liability increased 0.6% to $55.1 million; Healthcare Liability increased 23.9% to $29.1 million; Baleen Specialty increased 311.1% to $13.9 million. Our loss ratio of 67.3% for the second quarter of 2026 increased 1.1 points compared to 66.2% in the same period of 2025 due to an increase in our current accident year loss ratio. The higher current accident year loss ratio was driven by lower ceded loss activity under our excess of loss treaties, and to a lesser extent, changes in our portfolio mix. As communicated in the past, the development in our prior accident year losses were driven by expected loss ratios applied to net additional premiums that were billed and fully earned in the quarter, but associated with policies from prior accident years. Once again, these amounts were not based on actual losses settling for more than reserved, and did not represent an increase in estimated reserves on unresolved claims. Our expense ratio was 28.6% for the three months ended June 30, 2026, reflecting a decrease of 2.0 points compared to 30.6% for the same period in 2025. This decrease in our expense ratio was primarily driven by the 3.4 point decrease in our operating expense ratio and a 0.3 point increase in other insurance-related income, which contributed to the lowering of our expense ratio. These improvements were partially offset by the 1.7 point increase in our net acquisition costs ratio. The decrease in our operating expense ratio was due to the continued scaling of our business, where net earned premiums grew at a higher rate than our expenses, as well as the prudent management of our expenses, including estimates of deferrable costs. The increase in our net acquisition costs ratio was driven by the increase in earned broker commissions due to changes in our portfolio mix and higher commission rates, an increase in the ceding fee we pay to American Family and deferred employment related underwriting costs, partially offset by an increase in earned ceding commissions from our ceded reinsurance treaties. Investment Results Net investment income increased 37.6% in the quarter to $18.8 million, driven by a higher balance of investments. Our investment portfolio had a book yield of 4.7% and a new money rate of 4.9% as of June 30, 2026. The weighted average effective duration of our investment portfolio, which included cash equivalents, was 3.3 years and had an average rating of "AA-" as of June 30, 2026. Summary of Operating Results The following table summarizes the Company’s results of operations for the three and six months ended June 30, 2026 and 2025: Condensed Consolidated Balance Sheets Gross Written Premiums The following tables present gross written premiums by underwriting division for the three and six months ended June 30, 2026 and 2025: The following tables present gross written premiums by underwriting model(1) for the three and six months ended June 30, 2026 and 2025: Loss Ratio The following tables summarize current and prior accident year loss ratios for the three and six months ended June 30, 2026 and 2025: Expense Ratio The following tables summarize the components of our expense ratio for the three and six months ended June 30, 2026 and 2025: Net Investment Income The following table summarizes the sources of net investment income for the three and six months ended June 30, 2026 and 2025: Reconciliation of Non-GAAP Financial Measures This earnings release contains certain financial measures that are not presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). We use these non-GAAP financial measures when planning, monitoring and evaluating our performance. Management believes that each of the non-GAAP financial measures described below provides useful insight into our underlying business performance. Adjusted net income is defined as net income excluding the impact of net realized investment losses, non-operating expenses, loss on extinguishment of credit facility, foreign exchange (gains) losses, and certain strategic initiatives. Adjusted net income excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments that would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments. Adjusted return on equity is defined as adjusted net income as a percentage of average beginning and ending mezzanine equity and stockholders’ equity. Diluted adjusted earnings per share is defined as adjusted net income divided by the weighted average common shares outstanding for the period, reflecting the dilution that may occur if equity based awards are converted into common stock equivalents as calculated using the treasury stock method. You should not rely on these non-GAAP financial measures as a substitute for any U.S. GAAP financial measure. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and not as a replacement for or superior to the comparable U.S. GAAP measures. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. Adjusted net income Adjusted net income for the three and six months ended June 30, 2026 and 2025 reconciles to net income as follows: Adjusted return on equity Adjusted return on equity for the three and six months ended June 30, 2026 and 2025 reconciles to return on equity as follows: Diluted adjusted earnings per share Diluted adjusted earnings per share for the three and six months ended June 30, 2026 and 2025 reconciles to diluted earnings per share as follows: Subsequent Event On August 3, 2026, the Company and American Family announced that they have entered into a definitive agreement under which American Family has agreed to acquire all of the issued and outstanding shares of common stock of Bowhead that it does not currently own for $34.00 per share in cash, without interest, for a total transaction value of approximately $1.2 billion. Conference Call Cancelled As previously announced, given the transaction with American Family announced earlier today, the Company will not be hosting a conference call to discuss its results for the second quarter ended June 30, 2026, which was originally scheduled for 8:30 a.m. Eastern Time on Tuesday, August 4, 2026. About Bowhead Bowhead is a growing specialty insurance business providing casualty, professional liability and healthcare liability insurance products. We were founded and are led by industry veteran Stephen Sills. The team is composed of highly experienced and respected industry veterans with decades of individual, successful underwriting and management experience. Our products are delivered through two complementary underwriting models designed to support sustainable and profitable growth across market cycles: a "craft" model for large, complex, higher-severity risks, and a "digital" model, which includes Baleen Specialty and other small-business offerings ("express"), for smaller, simpler, and scalable business. We pride ourselves on the quality and experience of our people, who are committed to exceeding our partners’ expectations through excellent service and expertise. Our collaborative culture spans all functions of our business and allows us to provide a consistent, positive experience for all of our partners. Forward-Looking Statements Statements in this press release, and any related oral statements, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of terms such as "believes," "expects," "may," "will," "should," "could," "seeks," "intends," "plans," "estimates," "anticipates" or other comparable terms or the converse of such terms. However, not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not related to present facts or current conditions or that are not historical facts. They appear in a number of places throughout this press release and include statements regarding intentions, beliefs or current expectations concerning, among other things, the transaction, regulatory approvals, and the timing of the transaction, the industries in which Bowhead operates, and other statements relating to Bowhead’s future performance. The transaction is subject to risks and uncertainties, including: that Bowhead and American Family may be unable to complete the transaction because, among other reasons, conditions to the closing of the transaction may not be satisfied or waived; uncertainty as to the timing of completion of the transaction; the inability to complete the transaction due to the failure to obtain the Bowhead stockholder approvals for the transaction or the failure to satisfy other conditions to completion of the transaction, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; interloper risk; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; risks related to disruption of management’s attention from Bowhead’s ongoing business operations due to the transaction; the effect of the announcement of the transaction on Bowhead’s relationships with its insureds, operating results and business generally; and the outcome of any legal proceedings to the extent initiated against Bowhead, American Family or others following the announcement of the transaction, as well as Bowhead’s and American Family management’s response to any of the aforementioned factors. A more fulsome discussion of the risks related to the transaction will be included in Bowhead’s proxy statement for the transaction. For a discussion of factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the section captioned "Risk Factors" in Bowhead’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission ("SEC"). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. While the list of factors presented here is, and the list of factors presented in the proxy statement will be, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Forward-looking statements speak only as of the date on which they are made. Except as expressly required under federal securities laws or the rules and regulations of the SEC, Bowhead does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to Bowhead are expressly qualified by these cautionary statements. The information contained on or connected to any websites referenced in this communication is not incorporated by reference into this communication. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803511550/en/ Contacts Investor Relations Contact: Shirley Yap, Head of Investor [email protected]

For the quarter ended June 2026, Bowhead Specialty Holdings Inc. (BOW) reported revenue of $163.86 million, up 23% over the same period last year. EPS came in at $0.48, compared to $0.37 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $164.29 million, representing a surprise of -0.26%. The company delivered an EPS surprise of +2.13%, with the consensus EPS estimate being $0.47. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Bowhead Specialty Holdings Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Expense Ratio: 28.6% versus the three-analyst average estimate of 30.2%. Combined Ratio: 95.9% versus 96.9% estimated by three analysts on average. Loss Ratio: 67.3% compared to the 66.7% average estimate based on three analysts. Revenues- Net earned premiums: $143.95 million versus the three-analyst average estimate of $144.66 million. The reported number represents a year-over-year change of +20.8%. Revenues- Other insurance-related income: $1.1 million versus the three-analyst average estimate of $0.7 million. The reported number represents a year-over-year change of +138%. Revenues- Net investment income: $18.82 million compared to the $19.03 million average estimate based on three analysts. The reported number represents a change of +37.6% year over year. View all Key Company Metrics for Bowhead Specialty Holdings Inc. here>>> Shares of Bowhead Specialty Holdings Inc. have returned -2.8% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bowhead Specialty Holdings Inc. (BOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bowhead Specialty Holdings Inc. (BOW) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.13%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.48, delivering a surprise of +14.29%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Bowhead Specialty Holdings Inc., which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $163.86 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $133.26 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bowhead Specialty Holdings Inc. shares have added about 7.2% since the beginning of the year versus the S&P 500's gain of 9.4%. While Bowhead Specialty Holdings Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bowhead Specialty Holdings Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.51 on $172.5 million in revenues for the coming quarter and $1.96 on $671.98 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Heritage Insurance (HRTG), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This property and casualty insurance holding company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -36.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Heritage Insurance's revenues are expected to be $212.84 million, up 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bowhead Specialty Holdings Inc. (BOW) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year decline in earnings on lower revenues when American Coastal Insurance (ACIC) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This property and casualty insurance company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -22.2%. Revenues are expected to be $75.7 million, down 10.1% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For American Coastal, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.76%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that American Coastal will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that American Coastal would post earnings of $0.44 per share when it actually produced earnings of $0.39, delivering a surprise of -11.36%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. American Coastal doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Bowhead Specialty Holdings Inc. (BOW), another stock in the Zacks Insurance - Property and Casualty industry, is expected to report earnings per share of $0.47 for the quarter ended June 2026. This estimate points to a year-over-year change of +27%. Revenues for the quarter are expected to be $164.29 million, up 23.3% from the year-ago quarter. The consensus EPS estimate for Bowhead Specialty Holdings Inc. has been revised 0.6% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.39%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Bowhead Specialty Holdings Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Coastal Insurance Corporation (ACIC) : Free Stock Analysis Report Bowhead Specialty Holdings Inc. (BOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Bowhead Specialty Holdings Inc. (BOW) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 4, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +27%. Revenues are expected to be $164.29 million, up 23.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.56% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Bowhead Specialty Holdings Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.39%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Bowhead Specialty Holdings Inc. will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Bowhead Specialty Holdings Inc. would post earnings of $0.42 per share when it actually produced earnings of $0.48, delivering a surprise of +14.29%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Bowhead Specialty Holdings Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Insurance - Property and Casualty industry, CNA Financial (CNA), is soon expected to post earnings of $1.04 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -15.5%. This quarter's revenue is expected to be $3.35 billion, down 0.6% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for CNA Financial has remained unchanged. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that CNA Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bowhead Specialty Holdings Inc. (BOW) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hanover Insurance Group (THG) came out with quarterly earnings of $5.31 per share, beating the Zacks Consensus Estimate of $3.88 per share. This compares to earnings of $4.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +36.86%. A quarter ago, it was expected that this insurance company would post earnings of $4.14 per share when it actually produced earnings of $5.25, delivering a surprise of +26.81%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hanover Insurance, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $1.72 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $1.66 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hanover Insurance shares have added about 20.1% since the beginning of the year versus the S&P 500's gain of 8.3%. While Hanover Insurance has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hanover Insurance was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.04 on $1.74 billion in revenues for the coming quarter and $18.38 on $6.95 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Bowhead Specialty Holdings Inc. (BOW), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +27%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. Bowhead Specialty Holdings Inc.'s revenues are expected to be $164.29 million, up 23.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report Bowhead Specialty Holdings Inc. (BOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the property & casualty insurance stocks, including Bowhead Specialty (NYSE:BOW) and its peers. Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards. The 32 property & casualty insurance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.9%. Thankfully, share prices of the companies have been resilient as they are up 7.9% on average since the latest earnings results. Named after the Arctic bowhead whale known for navigating challenging waters, Bowhead Specialty Holdings (NYSE:BOW) is a specialty insurance company that provides customized coverage for complex and high-risk commercial sectors. Bowhead Specialty reported revenues of $155.7 million, up 26.9% year on year. This print exceeded analysts’ expectations by 5.5%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ net premiums earned and EPS estimates. Bowhead Chief Executive Officer, Stephen Sills, commented, “We are very pleased with our strong start to 2026, delivering a 24% growth in gross written premiums in the first quarter. This performance was driven by the disciplined premium growth achieved in our Casualty portfolio and the strong execution in Baleen within our digital underwriting platform. As we look ahead, we remain focused on our strategy of building a balanced portfolio of craft and digital solutions to deliver sustainable and profitable growth across market cycles. Brandon Mezick, our Head of Digital, will join today’s earnings call to share how our digital underwriting platform supports this strategy and strengthens our competitive position.” Interestingly, the stock is up 28.9% since reporting and currently trades at $30.00. Read why we think that Bowhead Specialty is one of the best property & casualty insurance stocks, our full report is free. Founded in 1893 during America's westward expansion when property records were often disputed, Stewart Information Services (NYSE:STC) provides title insurance and real estate services, helping homebuyers, sellers, and lenders verify property ownership and protect against title defects. Stewart Information Services reported revenues of $781.3 million, up 27.7% year on year, outperforming analysts’ expectations by 4.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.3% since reporting. It currently trades at $66.06. Is now the time to buy Stewart Information Services? Access our full analysis of the earnings results here, it’s free. Issuing more title insurance policies than any other company in the United States, Fidelity National Financial (NYSE:FNF) provides title insurance and escrow services for real estate transactions while also offering annuities and life insurance through its F&G subsidiary. Fidelity National Financial reported revenues of $3.23 billion, up 18.2% year on year, falling short of analysts’ expectations by 10.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates. Fidelity National Financial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.6% since the results and currently trades at $47.39. Read our full analysis of Fidelity National Financial’s results here. With roots dating back to 1872 and a business model that empowers local decision-making, American Financial Group (NYSE:AFG) is an insurance holding company that specializes in commercial property and casualty insurance products for businesses through its Great American Insurance Group. American Financial Group reported revenues of $1.76 billion, up 1.7% year on year. This number came in 5% below analysts’ expectations. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ net premiums earned and book value per share estimates. The stock is up 8.1% since reporting and currently trades at $139.91. Read our full, actionable report on American Financial Group here, it’s free. Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE:LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform. Lemonade reported revenues of $258 million, up 70.6% year on year. This print beat analysts’ expectations by 2.4%. It was an exceptional quarter as it also logged a solid beat of analysts’ net premiums earned and EPS estimates. Lemonade achieved the fastest revenue growth among its peers. The stock is down 1.3% since reporting and currently trades at $64.90. Read our full, actionable report on Lemonade here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. 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Bowhead Specialty’s first quarter was marked by significant revenue and earnings outperformance versus Wall Street expectations, driven by robust growth across its specialty insurance divisions and broad adoption of its digital underwriting platforms. Management credited the quarter’s results to disciplined premium growth in casualty lines and continued expansion in digital initiatives such as Baleen and Bowhead Express. CEO Stephen Sills emphasized strong execution in the excess casualty and cyber liability segments, while also noting increased broker engagement and improved operational efficiency. Head of Digital Brandon Mezick explained, “Our platform combines modern, modular technology with experienced underwriting judgment at every critical decision point.” Is now the time to buy BOW? Find out in our full research report (it’s free). Revenue: $155.7 million vs analyst estimates of $147.6 million (26.9% year-on-year growth, 5.5% beat) EPS (GAAP): $0.48 vs analyst estimates of $0.41 (18.8% beat) Adjusted Operating Income: $20.57 million (13.2% margin, 42.2% year-on-year growth) Market Capitalization: $915.2 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rowland Mayor (RBC Capital Markets) asked how Baleen’s bind rate increased so sharply year-over-year. Head of Digital Brandon Mezick explained this was due to increased broker familiarity, improved distribution, and greater marketplace visibility. Meyer Shields (Keefe, Bruyette & Woods) questioned the rise in underwriting expenses and whether Q1 trends would persist. CFO Brad Mulcahey replied that trends matter more than one quarter’s results and that expense growth reflects business scaling, with ceding commissions offsetting some pressures. Cave Montazeri (Deutsche Bank) inquired about underwriting cycle dynamics and growth in healthcare liability. CEO Stephen Sills described the sector as “in flux” and attributed growth to hospital portfolios, while emphasizing a cautious, risk-by-risk approach. Pablo Singzon (JPMorgan) asked if small case E&S business is shifting back to admitted markets. Mezick responded that while some admitted carriers are more active, Bowhead’s broker experience and focus on non-property risks limit exposure to this trend. Daniel Lee (Morgan Stanley) sought clarity on long-term expense ratio targets amid tech and Express investments. Mulcahey confirmed that keeping the ratio below 30% remains the goal, despite temporary volatility from business mix changes. Looking forward, the StockStory team will be monitoring (1) further penetration and scaling of the Baleen and Express digital platforms, (2) the company’s ability to sustain disciplined growth in specialty casualty and healthcare liability amid evolving market cycles, and (3) expense ratio trends as digital underwriting expands and commissions fluctuate. Additionally, we will follow any shifts in reinsurance strategy and product launches that could impact Bowhead’s growth trajectory. Bowhead Specialty currently trades at $27.91, up from $23.28 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Bowhead reported strong top-line growth with gross written premiums up 24% to ~$217 million, led by Casualty (about $147M) and rapid momentum in its digital channels—Baleen generated over $11M (3x year‑ago) and digital underwriting was just under 7% of GWP with fast quote/bind metrics. Profitability improved: adjusted net income was $16 million (up ~40% YoY) with adjusted EPS of $0.48 and adjusted ROAE of 14.1%, while the combined ratio was a healthy 95.3%, loss ratio held at 66.9%, and the expense ratio fell to 28.4%. Balance sheet and reinsurance moves: pre-tax investment income rose ~44% to $18 million after a $150M debt raise, total equity was $459M (book value $13.80), and May reinsurance renewals raised the quota share to 33.5% (excess reduced to 57.5%) with management calling the net impact to income “basically neutral.” Interested in Bowhead Specialty Holdings Inc.? Here are five stocks we like better. 3 Beaten Up Experiential Stocks to Cash in on a Good Time Bowhead Specialty (NYSE:BOW) reported a strong start to 2026, highlighted by premium growth across all divisions and higher profitability, while management also detailed progress in its digital underwriting strategy spanning Baleen Specialty and Bowhead Express. CEO Stephen Sills said gross written premiums (GWP) increased 24% year-over-year to approximately $217 million, driven primarily by the company’s Casualty division and supported by growth in Baleen. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Bowlero is Quietly Cornering The Bowling Market In Casualty, Sills said GWP rose more than 20% to $147 million. He attributed the quarter’s growth largely to the Excess portfolio, citing “strong rate on our real estate book, new construction projects, and an increase in manufacturing and hospitality business.” Sills added that Bowhead continued to expand where pricing and terms were favorable and pulled back where downward pricing pressure was emerging due to excess market supply. While acknowledging “downward pressure from admitted carriers, non-risk-bearing MGAs, and broker sidecars,” Sills said he still sees “discipline in limit deployment and coverage expansion” in much of the market and described Excess Casualty as “the most favorable segment in our marketplace today.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Professional Liability GWP increased 6% to approximately $28 million, which Sills said was “primarily driven” by the Cyber Liability Express portfolio targeting small and mid-size accounts through Bowhead’s digital underwriting platform. That growth was partly offset by a reduction in commercial public D&O, which Sills attributed to lost renewals to competitors with “overaggressive appetites and little to no discipline.” In Healthcare Liability, GWP increased 28% to more than $30 million, driven by hospitals, senior care, and miscellaneous medical facilities. Sills said the market remains challenging, particularly for coverage tied to sexual abuse and molestation, and noted Bowhead is managing exposure by staying disciplined on book expansion and lowering average limits. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Bowhead’s Baleen business generated over $11 million in premiums during the quarter, which Sills described as an “encouraging start to the year” for the company’s digital underwriting platform. Head of Digital Brandon Mezick outlined the company’s rationale for building digital underwriting capabilities alongside its traditional “craft” underwriting model. Mezick said craft underwriting is “hyper cycle sensitive,” while digital underwriting is intended to provide a “durable, complementary channel” to access the small-to-medium enterprise (SME) E&S market “efficiently and, we believe, more profitably with less volatility.” Mezick said Baleen focuses exclusively on the E&S market and currently targets construction and real estate customers for primary general liability coverage for hard-to-place risks, with minimum premiums below $1,000. He emphasized the workflow is designed to be “nearly fully automated,” including submissions arriving “via email and not a proprietary portal,” and said speed to quote is a competitive advantage in SME E&S. Mezick shared several operational metrics for the first quarter: More than 75% of new business submissions received a response within 15 minutes. 100% of submissions received a response within one business day. New business quote ratio was above 75%. Policies can be delivered “in under five minutes” once purchased. He said Baleen’s underwriting approach relies on codified business rules built with underwriting, actuarial, and claims input, with third-party data integrated at submission and constrained discretion on coverage decisions. “This isn’t a black box,” Mezick said, describing it as a “disciplined, rules-based framework” with regular performance monitoring. Mezick said Baleen generated over $11 million in premium in the first quarter, “more than 3x the same period last year,” with new business submissions up over 140%, quotes up over 110%, and binds up over 260%. Looking ahead, Mezick said Baleen’s growth opportunities include broker expansion—both deeper relationships with wholesale partners and entry into “digitally native programmatic platforms”—and product development. He noted that Bowhead launched a supported Excess offering for construction risks “last week.” Mezick also described Bowhead Express as a separate model that uses the same technology foundation to serve smaller versions of risks Bowhead already underwrites. Express is “generally low touch,” with nearly every risk reviewed by an underwriter in under 15 minutes, enabled by aggregated internal and third-party data to reduce back-and-forth with brokers. He said Cyber Express has evolved to a “no-touch model for the smallest, simplest risks.” In the first quarter, Mezick said Express generated over $3 million in premium with a quote ratio of approximately 65%. He also said the company expects to launch a primary Casualty offering for middle market construction risks “later this month.” Mezick said digital underwriting represented “just under 7%” of total Bowhead GWP in the first quarter and that management expects its contribution to grow through the year as Baleen and Express scale. In financial remarks, the company reported adjusted net income of $16 million for the first quarter of 2026, up approximately 40% year-over-year. Diluted adjusted earnings per share were $0.48, and adjusted return on average equity was 14.1%. Management said the loss ratio was 66.9%, unchanged from the same quarter of 2025. The current accident year loss ratio was flat, with the impact of loss picks made in the fourth quarter of 2025 offset by changes in business mix. On reserves, management said approximately $600,000 of prior accident year reserves reflected IBNR booked on additional premiums billed and fully earned in the current quarter but related to policies from prior accident years. Management emphasized this “is not based on actual losses settling for more than reserved” and does not represent an increase in estimated reserves on unresolved claims. The company also noted it writes long-tail lines with a relatively short loss history and therefore relies heavily on industry loss information. IBNR comprised 91% of total reserves at quarter-end. The expense ratio was 28.4%, down from 30.4% a year earlier. Management attributed the decrease primarily to a 2.9-point decline in the operating expense ratio due to business scaling, expense management, and “new estimates of deferrable costs,” partially offset by a 1.2-point increase in the net acquisition ratio. Management linked higher acquisition costs to increased broker commissions from mix shifts toward wholesale-sourced premium and a ceding fee paid to American Family, partially offset by higher earned ceding commissions from outward reinsurance treaties. The combined ratio was 95.3%. Pre-tax net investment income increased approximately 44% year-over-year to $18 million, which management said was driven by a larger portfolio from increased free cash flow and a $150 million debt raise in late 2025. The investment portfolio had a book yield of 4.6% and a new money rate of 4.7% at quarter-end. Management said average credit quality was AA- and duration increased from three years at year-end 2025 to 3.2 years, with an expectation to extend duration “slightly over the course of the year” toward four years to better match liabilities. Total equity was $459 million, producing diluted book value per share of $13.80. The effective tax rate was 22.2%, with management noting it may vary due to items including state taxes, stock-based compensation, and nondeductible compensation. Management also discussed May 1 ceded reinsurance renewals (excluding cyber products). The company increased its quota share treaty from 26% in 2025 to 33.5% while increasing ceding commissions, and reduced its excess of loss treaty from 65% to 57.5%. Management said the renewals were placed with reinsurers rated A or better by AM Best. CFO Brad Mulcahey said the overall impact of the reinsurance changes should be “basically neutral to net income,” with offsets from lower net earned premium, lower losses, higher ceding commissions, and some potential investment income pressure from higher upfront reinsurance payments. Mulcahey also said Bowhead expanded its agreement with American Family to support the “around 20% GWP growth” the company expects this year, raising a $1 billion annual premium cap that management projected the company could exceed if it grows at that rate. During Q&A, Sills characterized Healthcare Liability as “a marketplace in flux,” discussing increased sexual abuse and molestation claims in recent years and the impact of reviver statutes. He said coverage decisions are “very situational” and reiterated a risk-by-risk approach. On cyber tail risk and emerging technologies, Sills said Bowhead has become “less and less competitive” on large Fortune 500 cyber risks and has shifted toward smaller accounts, where he said underwriting screens such as multi-factor authentication and cloud considerations are important. “For the time being, we're very comfortable with what we see, the way we do it, and the type of business we're writing,” Sills said. Mezick told analysts he is seeing admitted carriers play more in segments “traditionally E&S” as property market pricing declines, but said Bowhead’s broker relationships and experience should support continued digital growth. Sills added that Bowhead does not write property insurance. On construction opportunities within Casualty, Sills said the company continues to see steady opportunities, while noting uncertainty tied to macro factors such as interest rates and news flow. Mulcahey said management remains comfortable with an expense ratio “under 30%” and cautioned against reading too much into any single quarter, particularly given timing items related to deferrable cost estimates that he said should normalize in future periods. Bowhead Specialty Holdings Inc 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 article "Bowhead Specialty Q1 Earnings Call Highlights" was originally published by MarketBeat.