| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 59 | 18.1x | 17.8x | Around median | |
Growth | 88 | 25.0% | 7.1% | Top tier | |
Quality | 80 | — | — | Top tier | |
Safety | 24 | — | — | Bottom tier | |
Capital Return | — | — | 2.12% | N/A | |
Momentum | 88 | 9.0% | 2.9% | Top tier | |
Sentiment | 45 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Bowhead Specialty Holdings Inc. is a specialty insurance company focused on complex, non-standard, and high-severity risks, distributing its products through two integrated platforms. The artisanal underwriting platform relies on specialized underwriters to provide tailored solutions, while the digital underwriting platform includes Baleen Specialty and Bowhead Express to serve small and medium-sized businesses with greater automation efficiency. Its portfolio includes general and excess liability, professional and cyber liability, and healthcare liability, and it also generates investment income from the asset portfolio supporting its insurance obligations.
In Q2 of fiscal 2026, Bowhead reported revenue of $163.9 million, net income of $16.1 million, and earnings per share of $0.48, equivalent to a calculated net income margin of approximately 9.8%. Revenue increased from $155.7 million in Q1 of fiscal 2026, while net income remained close to its level of $16.0 million and earnings per share remained at $0.48. On a trailing-twelve-month basis ending in fiscal 2026, revenue reached $615.2 million, net income was $62.2 million, and earnings per share were approximately $1.85, compared with revenue of $551.6 million and net income of $53.8 million in fiscal 2025.
The Q1 fiscal 2026 earnings call shows that gross written premiums grew 24% year over year to approximately $217 million, with the Casualty segment contributing approximately $147 million, or about 68% of the total, Professional Liability contributing approximately $28 million, and Healthcare Liability contributing more than $30 million. The loss ratio was unchanged year over year at 66.9%, and the expense ratio declined to 28.4% from 30.4%, resulting in a combined ratio of 95.3%. Pre-tax net investment income increased 44% to $18 million, supported by the expansion of the investment portfolio, which had a book yield of 4.6% and an average credit rating of AA-.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $32.8, within a range of $28 to $34, compared with the stock's 52-week range of $21.21 to $35.07; the cash acquisition price of $34.00 is at the highest analyst target and close to the upper end of the 52-week range. Although the recorded consensus is “Buy,” Deutsche Bank downgraded the rating to “Hold” after the transaction was announced, reflecting a shift in the valuation focus from standalone earnings growth to the specified cash consideration and the conditions for completing the acquisition; no price-to-earnings ratio is available in the provided data for valuing the stock on that basis.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Gross written premiums grew 24% year over year to approximately $217 million in Q1 of fiscal 2026. The Casualty segment led growth with $147 million in premiums, supported by excess liability, real estate, construction projects, manufacturing, and hospitality. Healthcare Liability also grew 28% to more than $30 million, while Professional Liability increased 6% to approximately $28 million. During the May 5, 2026 earnings call, management projected approximately 20% growth in gross written premiums during fiscal 2026.
Baleen targets difficult primary general liability risks in the excess and specialty insurance market for small and medium-sized businesses, particularly in construction and real estate. Its premiums exceeded $11 million in Q1 of fiscal 2026, more than three times the amount in the comparable period, and more than 75% of new submissions received a response within 15 minutes. Bowhead Express, meanwhile, generated more than $3 million in premiums with a quote rate of approximately 65%, and uses structured reviews that typically take less than 15 minutes per risk. Digital business accounted for slightly less than 7% of Bowhead's total premiums in that quarter, leaving room for digital expansion according to management's outlook.
The combined ratio was 95.3% in Q1 of fiscal 2026, which is below 100% and indicates an underwriting profit before investment income. The loss ratio remained stable at 66.9% compared with the comparable period, and the expense ratio declined by two percentage points to 28.4%. The company recorded adjusted net income of $16 million, an increase of approximately 40% year over year, and an adjusted return on average equity of 14.1%. However, management said that part of the expense improvement resulted from the re-estimation of deferrable costs and will normalize in subsequent periods.
On August 4, 2026, American Family Mutual Insurance announced a definitive agreement to purchase Bowhead in an all-cash transaction valued at $1.20 billion. Under the agreement, Bowhead shareholders will receive $34.00 for each share, a level equal to the highest analyst target and above the average target of $32.8. Following the announcement, Deutsche Bank downgraded BOW to “Hold.” Halper Sadeh LLC also initiated a legal investigation to examine the fairness of the price offered to shareholders and whether the board of directors fulfilled its duties.
Bowhead writes long-tail lines, and because of its short internal loss history, it relies heavily on industry-observed loss information when establishing reserves. Incurred but not reported claims represented 91% of total reserves at the end of Q1 of fiscal 2026, increasing the sensitivity of results to claims development over time. In the May 1, 2026 renewals, the company increased the quota-share reinsurance agreement's share from 26% to 33.5% and reduced the excess-of-loss agreement from 65% to 57.5%. Management said the changes are approximately neutral to net income, but they may reduce net earned premiums and investment income in exchange for lower losses and higher ceding commissions.
