Siddharth Shah's questions to Bowhead Specialty Holdings Inc (BOW) leadership • Q2 2025
Question
Siddharth Shah of Morgan Stanley asked about the expected run-rate for the expense ratio going forward and which of the three craft segments offers the strongest growth opportunities over the next year.
Answer
CFO Brad Mulcahey indicated the expense ratio is on a downward glide path and approaching the 30% mark, despite headwinds from an increased fee to American Family. CEO Stephen Sills added he is confident it will achieve a run-rate below 30% in the next quarter. For growth, Sills identified the casualty business as the largest opportunity in absolute dollars, while Baleen offers the highest percentage growth from its small base.