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Bowhead Specialty Holdings BOW Ceding Fees — Net acquisition costs

Other product segments

Broker commission
$30.66M+29.6%
Ceding commission
-$22.23M-29.9%
Others
$1.33M+63.0%

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Other financials

Income statement

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Revenue$155.7M+26.9%
Net income$16.0M+40.1%
EPS (diluted)$0.48+41.2%

Balance sheet

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Cash & equivalents$141.5M+14.6%
Total debt$146.5M
Total equity$457.9M+17.1%
Total assets$2.5B+41.4%

Cash flow

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Operating cash flow$65.5M+37.2%
CapEx$1.3M+4.5%
Free cash flow$64.2M+38.0%

Valuation

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Market cap$1.1B+8.5%
Enterprise value$1.11B
P/E18.9×-1.7×
P/S1.9×-0.2×

Profitability

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Net margin10%+0.7pp
FCF margin58.8%-6.0pp

Returns & leverage

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Return on equity13.8%
Debt / equity0.3×

Where this comes from

Reported directly by Bowhead Specialty Holdings in its filing.

Tagged under the XBRL concept us-gaap:DeferredPolicyAcquisitionCostAmortizationExpense.

The source filing: Bowhead Specialty Holdings’s 10-Q, filed May 5, 2026.

Filed
May 5, 2026, 4:25 PM EDT
Fiscal quarter
Q1 FY2026
Calendar quarter
Q1 2026
Accession
0001628280-26-030616
Three Months Ended March 31,20262025
Net policy acquisition costs
Broker commission30,65523,646
Ceding fee4,1332,444
Others1,330816
Ceding commission(22,225)(17,110)
Amortization of net policy acquisition costs$13,893$9,796

Item 1. Financial Statements (unaudited)

FAQ

What is Bowhead Specialty Holdings's ceding fees — net acquisition costs?
Bowhead Specialty Holdings (BOW) reported ceding fees — net acquisition costs of $4.13M in Q1 2026.
How has Bowhead Specialty Holdings's ceding fees — net acquisition costs changed year-over-year?
Bowhead Specialty Holdings's ceding fees — net acquisition costs increased by 69.1% year-over-year, from $2.44M to $4.13M.
What is the long-term trend for Bowhead Specialty Holdings's ceding fees — net acquisition costs?
Over 2 years (2022 to 2024), Bowhead Specialty Holdings's ceding fees — net acquisition costs has grown at a 47.9% compound annual growth rate (CAGR), from $3.95M to $8.64M.
What does ceding fees — net acquisition costs mean?
This metric measures the total costs incurred to acquire, underwrite, and process insurance policies within the ceding segment, net of any ceding commissions received from reinsurers. It serves as a key indicator of the profitability of the company's reinsurance strategy and the efficiency of its distribution channels. A lower net cost relative to premiums earned suggests more favorable reinsurance terms and effective management of underwriting expenses.

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