
	December 31,
($ in thousands)	2024		2023
Assets
Investments:
Investment in subsidiaries	$	853,670	$	743,025
Short-term investments, at fair value	14,000		10,593
Total investments	867,670		753,618
Cash and cash equivalents	2,943		3,024

Deferred income taxes	30,486		5,899
Goodwill and intangible assets, net	12,641		12,641
Other assets	2,905		15,908
Total assets	$	916,645	$	791,090
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable and accrued liabilities	$	3,110	$	1,369
Notes payable	100,000		50,000

Subordinated debt, net of debt issuance costs	19,536		78,690
Total liabilities	122,646		130,059
Stockholders’ Equity:
Stockholders’ equity	793,999		661,031
Total liabilities and stockholders’ equity	$	916,645	$	791,090


	Years Ended December 31,
($ in thousands)	2024		2023		2022
Revenues:

Net investment income	$	3,212	$	3,822	$	2,567
Net investment (losses) gains	963		(963)		(6)
Other loss	(2)		(27)		—
Total revenues	4,173		2,832		2,561
Expenses
Operating expenses	10,632		—		—
Interest expense	8,140		9,815		6,407
Amortization expense	920		313		81
Other expenses	9,646		451		—
Total expenses	29,338		10,579		6,488
Loss before income tax expense	(25,165)		(7,747)		(3,927)
Income tax expense	33,578		6,808		(1,209)
Loss before equity in earnings of subsidiaries	(58,743)		(14,555)		(2,718)
Equity in undistributed earnings of subsidiaries	177,571		100,539		42,114
Net income	$	118,828	$	85,984	$	39,396


	Years Ended December 31,
($ in thousands)	2024		2023		2022
Cash flows from operating activities:
Net income	$	118,828	$	85,984	$	39,396
Adjustments to reconcile net income to net cash used in operating activities	(121,563)		(95,947)		(42,672)
Net cash provided by operating activities	(2,735)		(9,963)		(3,276)
Cash flows from investing activities:
Capital contributions to subsidiaries	—		(122,800)		—
Distributions from investment in subsidiaries	8,500		6,500		4,000
Change in short-term investments	(3,407)		(10,569)		—
Net cash (used in) provided by investing activities	5,093		(126,869)		4,000
Cash flows from financing activities:
Repayment of stock notes receivable	5,561		1,350		2,180
Proceeds from long term borrowings	107,000		50,000		—
Payments on long term borrowings and trust preferred	(115,000)		(50,000)		—
Proceeds from equity offerings	—		128,887		—
Proceeds from employee stock purchase plan	—		710		—
Net cash provided by financing activities	(2,439)		130,947		2,180
Net increase (decrease) in cash and cash equivalents and restricted cash	(81)		(5,885)		2,904
Cash and cash equivalents and restricted cash at beginning of year	3,024		8,909		6,005
Cash and cash equivalents and restricted cash at end of year	$	2,943	$	3,024	$	8,909
Supplemental disclosure of cash flow information:
Cash paid for interest	$	8,573	$	10,667	$	5,761
Cash paid for federal income taxes	36,980		15,800		—

On September 30, 2024, Skyward Specialty entered into an Intercompany Loan Promissory Note (“the Promissory Note”) with Houston Specialty Insurance Company (“HSIC”). Under the terms of the Promissory Note, Skyward Specialty borrowed $57.0 million from HSIC. Under the terms of the Promissory Note, interest is payable monthly at a fixed annual interest rate of 4.00%, with the principal due at the maturity date. There are no prepayment penalties and no collateral was given as security for the payment of the Promissory Note.

Included in notes payable is the Promissory Note described above between Skyward Specialty and HSIC. Skyward Specialty determined its fair value using the income approach utilizing inputs that are observable. The Promissory Note has been placed in Level 2 of the fair value hierarchy. As of December 31, 2024, the carrying value and fair value of the Promissory Note were $57.0 million and $56.3 million, respectively.