speaker
Shannon
Conference Operator

Good day and thank you for standing by. Welcome to the 2026 Q2 Skyward Specialty Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jordan Arnold, VP of Investor Relations. Please go ahead.

speaker
Jordan Arnold
VP of Investor Relations

Thank you, Shannon. Good morning, everyone, and welcome to our second quarter 2026 earnings conference call. Today, I am joined by our chairman and chief executive officer, Andrew Robinson, and chief financial officer, Mark Haushill. We will begin the call with our prepared remarks, and then we will open the line for questions. Our comments may include forward-looking statements, which by their nature involve a number of risk factors and uncertainties, which may affect future financial performance. Such risk factors may cause actual results to differ materially from those contained in our projections or forward-looking statements. These types of factors are discussed in our press release as well as in our 10-K that was previously filed with the Securities and Exchange Commission. Financial schedules containing reconciliations of certain non-GAAP measures along with other supplemental financial schedules are included as part of our press release and available on our website under the Investors section. With that, I will turn the call over to Andrew.

speaker
Andrew Robinson
Chairman and Chief Executive Officer

Thank you, Jordan, and welcome to the Skyward team. We're pleased to have you on board. To our conference call participants, good morning and thank you for joining us. The second quarter was simply outstanding. Diluted operating earnings per share increased 46% to $1.30. Our annualized operating return on equity was an excellent 19%. Gross written premiums increased 13% over the prior year quarter, while managed premiums were up 18%. We continue to execute at an incredibly high level across Skyward Specialty and Apollo, delivering strong top-line growth and results that reinforce the strength, diversification, quality, and profitability of our business. Our rule or need strategy, and in particular, our business portfolio diversification, allows us to lean into markets where pricing, underwriting conditions, and returns remain attractive. We will continue to protect margins and play sensible defense in the softest parts of the market where pricing and terms are less attractive or lost cost inflation is uncertain. Our strong capital position provides significant flexibility as we continue to allocate capital with discipline. We believe share repurchases remain an attractive use of capital given our returns, earnings growth, and current valuation. During the quarter, we repurchased approximately $10 million of shares and in July increased our repurchase authorization to $100 million. With that, I'll turn it over to Mark to provide the financial details for the quarter. Mark?

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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