Insurer Bowhead Specialty’s IPO Filing Shows Profit More Than Doubled in 2023

Bowhead Specialty Holdings disclosed on Friday that its net profit more than doubled in 2023, as the insurance underwriting company made its IPO filing public amid a rebound in fresh U.S. listings.

The U.S. initial public offering market is expected to recover in 2024, after a two-year a dry spell, amid growing expectations of a soft-landing for the economy.

Bowhead’s offering — the terms of which were not disclosed in the filing — will also test the investor optimism around the insurance sector that has pushed the S&P Insurance Select Industry index up 6.2% this year.

The company’s net profit was at $25.05 million in 2023 compared with $11.26 million a year earlier.

Net premiums written in 2023 were up 36.5% at $334.7 million. Its net investment income was at $19.4 million, up from $4.7 million in 2022.

Bowhead was founded in 2020 and has presence across the U.S. specialty and casualty insurance markets. It is an affiliate of business and personal insurer American Family Insurance.

The company will list on the New York Stock Exchange under ticker symbol “BOW.”

J.P. Morgan, Morgan Stanley and Keefe, Bruyette & Woods are the lead underwriters of the offering.

(Reporting by Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)