Bowhead Specialty (BOW): Buy, Sell, or Hold Post Q1 Earnings?

BOW Cover Image

Bowhead Specialty trades at $34.82 per share and has stayed right on track with the overall market, gaining 9.4% over the last six months. At the same time, the S&P 500 has returned 5.3%.

Is BOW a buy right now? Find out in our full research report, it’s free.

Why Is Bowhead Specialty a Good Business?

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.

1. Net Premiums Earned Skyrockets, Fueling Growth Opportunities

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

Bowhead Specialty’s net premiums earned has grown at a 41.5% annualized rate over the last one years, much better than the broader insurance industry.

Bowhead Specialty Quarterly Net Premiums Earned

2. Outstanding Long-Term EPS Growth

We track the change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Bowhead Specialty’s EPS grew at an astounding 44% compounded annual growth rate over the last two years. This performance was better than most insurance businesses.

Bowhead Specialty Trailing 12-Month EPS (GAAP)

3. Growing BVPS Reflects Strong Asset Base

We consider book value per share (BVPS) a critical metric for insurance companies. BVPS represents the total net worth per share, providing insight into a company’s financial strength and ability to meet policyholder obligations.

To investors’ benefit, Bowhead Specialty’s BVPS grew at an incredible 85.7% annual clip over the last two years.

Bowhead Specialty Quarterly Book Value per Share

Final Judgment

These are just a few reasons why Bowhead Specialty is a cream-of-the-crop insurance company, but at $34.82 per share (or 2.7× forward P/B), is now the right time to buy the stock? See for yourself in our comprehensive research report, it’s free.

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