•Gross written premiums are expected to increase 27% to 34% year over year to $193 million to $200 million.

•Net income is expected to be between $11.5 million and $12.5 million, or $0.34 to $0.37 per diluted share.

•Adjusted net income(1) is expected to be between $12 million and $13 million or $0.36 to $0.39 per diluted share(1).

•Return on equity is expected to be between 13.0% and 14.0% and adjusted return on equity(1) is expected to be between 13.5% and 14.5%.

•Book value per share is expected to be between $11.00 and $11.25 and diluted book value per share is expected to be between $10.80 and $11.00.

Bowhead Chief Executive Officer Stephen Sills commented, “We are pleased to share our preliminary third quarter results. Additionally, since Bowhead does not write any property risks, we do not expect any material direct losses as a result of the recent hurricane activities. We look forward to sharing more about our third quarter results on November 5th.”

The expected increase in gross written premiums of 27% to 34% year over year to $193 million to $200 million was driven by renewals, new business, and continued growth in our platform across all divisions.

•Our Casualty division led the gross written premium growth with an approximately 40% increase year over year, which included a preliminary $4 million of additional gross written premium (a preliminary $3 million from a net earned premium basis) from an unusually large audit premium from one insured;

•Healthcare Liability gross written premiums grew over 25% year over year;

•Professional Liability gross written premiums grew over 10% year over year;

•Late in the second quarter of 2024, we launched a new division called Baleen Specialty, which focuses on small, hard-to-place risks written 100% on a non-admitted basis. Baleen is a streamlined, low touch “flow” underwriting operation that supplements the “craft” solutions we offer. In line with our deliberate, measured and limited roll out, Baleen Specialty generated a preliminary $0.4 million of gross written premiums for the third quarter of 2024.

(1)Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measure to the most comparable U.S. GAAP measure.

(2)For the three months ended September 30, 2024, preliminary net income and preliminary adjusted net income are annualized to arrive at preliminary return on equity and preliminary adjusted return on equity.

•Adjusted net income is defined as net income excluding the impact of net realized investment gains (losses), non-operating expenses, foreign exchange (gains) losses, and certain strategic initiatives. Adjusted net income excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments.

•Adjusted return on equity is defined as adjusted net income as a percentage of average beginning and ending mezzanine equity and stockholders’ equity.

•Diluted adjusted earnings per share is defined as adjusted net income divided by the weighted average common shares outstanding for the period, reflecting the dilution that may occur if equity base awards are converted into common stock equivalents as calculated using the treasury stock method.

(1)Adjustments include expected net realized investment gains (losses) of less than $0.1 million, non-operating expenses of approximately $0.5 million, and foreign exchange (gains) losses and strategic initiatives of less than $0.1 million. Estimated tax impact is applied to the “After income tax” column to arrive at adjusted net income.

Adjusted return on equity

(1)For the three months ended September 30, 2024 preliminary net income and preliminary adjusted net income are annualized to arrive at preliminary return on equity and preliminary adjusted return on equity.

The Company will host a conference call to discuss its results on Tuesday, November 5, 2024, beginning at 8:30 a.m. Eastern Time. Interested parties may access the conference call through a live webcast, which can be accessed via this link, by visiting the Company’s Investor Relations website, or by dialing (877) 407-3949 (toll-free) or (215) 268-9917 (international). Please join the live webcast or dial in at least 10 minutes before the start of the call.

A replay of the event webcast will be available on the company’s Investor Relations website for one year following the call.