Bowhead Investor Presentation February 2025 - Insurance News | InsuranceNewsNet

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February 28, 2025 Reinsurance
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Bowhead Investor Presentation February 2025

U.S. Markets via PUBT

Investor Presentation

February 2025

Our key investment highlights

Focused on profitable, growing lines in attractive E&S market

Strong underwriting culture with fully-integrated and accountable value chain

Ability to deliver differentiated profitability across market cycles

Deep, long-standing distribution relationships based on expertise, service and mutual benefit

Highly experienced and entrepreneurial management team

Clean balance sheet with no reserves from accident years prior to 2020

Commitment to long-term value generates strong returns, making us well-positioned for continued growth

3

Bowhead: Who we are

Growing and profitable E&S focused specialty P&C business founded and led by industry veteran, Stephen Sills, and supported through a strategic partnership with American Family Mutual Insurance Company, S.I. ("AmFam")

Underwriting-first

culture led by people with

proven track records

"Craft"

solutions in attractive markets with strong tailwinds

Sustainable

underwriting across

market cycles

4

Bowhead: By the numbers

4 underwriting divisions

Key highlights

0.2%

Healthcare

Liability 14.6%

Baleen

Specialty

$696MM

46%

20241

2021 through

GWP

20241

GWP CAGR

76%

20241

GWP written on E&S basis

2024 GWP1:

95.8%

15.2%

$696MM

62.1%

2024

2024

Combined Ratio2

Adjusted ROE3

Professional

Casualty

Liability

23.1%

30+

Leadership team average years of experience4

Note: 1 Year ended December 31, 2024; 2 Combined ratio for year ended December 31, 2024 was comprised of a 64.4% loss ratio and a 31.4% expense ratio. The loss ratio is based on loss picks informed by industry data rather than only using internal data from our limited operating history. Movement in the loss ratio from last year reflects mix changes in our portfolio, where Casualty, which has higher current accident year industry loss ratios, comprised a larger proportion of the Company's gross written premiums-62.1% in 2024 compared to 54.7% in 2023. There was no prior accident year reserve development in our loss ratio for the year. The expense ratio reflects continued scaling of our business and prudent management of operating expenses; 3 2024 adjusted ROE is calculated as adjusted net income divided by the average of mezzanine and stockholders' equity as of December 31, 2023 and December 31, 2024. Adjusted ROE was impacted by the $178.4 million increase in mezzanine equity and stockholders' equity, mainly due to the $131.0 million of net proceeds received from the IPO and $38.2 million of net income generated during the year, and a $7.3 million reduction in after tax net income as a result of the costs related to the IPO and secondary offering. Adjusted ROE and adjusted net income are Non-GAAP financial measures. See "Non-GAAP Reconciliation" on slide 18 for a reconciliation of the non-GAAP financial measure to the most directly comparable U.S. GAAP measure; 4 Leadership team includes Stephen Sills, David Newman, Derek Broaddus, Daniel Gamble, Joe Calcagno and Brandon Mezick.

5

Highly experienced and entrepreneurial management team

Name and position

Stephen Sills

Founder and CEO

Years of industry

experience

48

Leadership role prior to joining Bowhead

Chairman and CEO of CapSpecialty

Prior professional experience

Executive Risk

David Newman

45

Chief Underwriting Officer of Allied World's Global

Chief Underwriting Officer

Markets division

Brad Mulcahey

21

Chief Financial Officer of Berkley Select,

Chief Financial Officer

a division of W.R. Berkley Corp

Maria Morrill,

24

Senior Vice President at Allied World

P.H.D., FCAS

Chief Actuary

Chris Butler, JD

20

Managing Director,

Head of Claims

Professional Liability Claims at Markel

Derek Broaddus

29

Senior Vice President at Allied World

Head of Casualty

Dan Gamble

30

Managing Director,

Head of Professional

Management & Professional at Markel

Liability

Joe Calcagno

23

Vice President, Healthcare

Head of Healthcare Liability

at Sompo International - Sompo America

Brandon Mezick

17

Chief Operating Officer of IronHealth

Head of Baleen Specialty

at Ironshore

6

Focused on profitable, growing lines in attractive E&S market

Expanding Commercial E&S Market ($Bn)

DPW

Loss ratio

Bowhead launch (September 2020)

70.9%

63.9%

60.5%

57.8%

50.4%49.0%

44.6%

$39

$34

$28

$29

$29

$31

$27

'20-'23 DPW CAGR: 22% '20-'23 Avg. Loss Ratio: 60.7%

$83

$73

68.1%

62.7%61.1%

$61

51.0%

$46

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: S&P Global; Note: E&S premiums sourced per S&P Global based on license types in Schedule T of statutory filings

7

Focused on profitable, growing lines in attractive E&S market (cont'd)

E&S premiums1 as % of 2023 GAAP GWP

44% 42%

40%

28%

26%2

13%

0%

100%

•

We are focused on

79%

profitable and growing

lines within the ~$83

billion U.S. commercial

E&S market³

•

Our target markets4 have

undergone meaningful

dislocations and have

outperformed the broader U.S. commercial E&S market by an average of 4 loss ratio points since 2019

Source: S&P Global; Note: 1 Represents 2023 statutory direct written premiums; 2 Markel U.S. GAAP GWP includes program services and fronting; 3 For the year ended December 31, 2023; 4 Represents Other Liability: Occurrence, Other Liability: Claims Made and Medical

Professional Liability: Claims Made

8

Strong underwriting culture with fully-integrated and accountable value chain

Long-term

distribution

relationships

Customized technology platform

In-house

underwriting

expertise

"Craft"

solutions and

product

development

Integrated

actuarial, claims

and legal

Comprehensive

reinsurance

program

  • Wedo not delegate underwriting to outside parties, which is a key component of our fully-integrated model
  • Our unique platform allows us to deliverour custom solutions to clients while consistently generating underwriting profitwithin our business

9

Ability to deliver differentiated profitability across market cycles

Our key value proposition: Underwriting matters

Highly experienced team with previous leadership positions at leading insurance companies

Specific subject matter experts with proven track records of generating underwriting profits within the lines they write

Created primary capabilities across all our products as part of cycle management strategy

Strong and disciplined underwriting culture built around rigorous analytical tools ("BRATs") and cross-functional collaboration ("Roundtables")

Note: 1 Excess Other includes Public Entity

D&O

Craft Products at Founding

Casualty

Professional

Liability

Healthcare

Liability

Excess Practice

Excess Other¹

Excess Projects

Primary Projects

Primary Practice

Primary Other

Financial Institutions

Public D&O

Cyber

E&O

Private D&O

Hospitals

Senior Care

Miscellaneous Medical Facilities

Managed Care

HCML

Craft Products Today

10

Attention: This is an excerpt of the original content. To continue reading it, access the original document here.

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Disclaimer

Bowhead Specialty Holdings Inc. published this content on February 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 28, 2025 at 12:10:22.420.

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