Company Background
Skyward Specialty Insurance Group, Inc.TM (“Skyward Specialty”) is a rapidly growing specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. Skyward Specialty operates through eight underwriting divisions – Accident & Health, Captives, Global Property, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S.

Skyward Specialty’s subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A- (Excellent) by A.M. Best Company.

Westaim’s Investment in Skyward Specialty
In 2014, Westaim established Westaim HIIG Limited Partnership, (“the Partnership”). The Partnership was funded by Westaim along with third party investors. With the funding, in July 2014, the Partnership completed the acquisition of the majority interest in Houston International Insurance Group, Ltd. (“HIIG”) (renamed to Skyward Specialty in November 2020). In January 2015 the Partnership provided additional funding to Skyward Specialty. In April 2020, Skyward Specialty completed a convertible preferred share rights offering that resulted in gross proceeds of $100 million to Skyward Specialty. As part of the rights offering, Westaim purchased $44 million (or 44%) of the Skyward Specialty preferred shares offered.

In January 2023, Skyward Specialty listed on the Nasdaq Global Select Market (the “NASDAQ”) under the ticker symbol “SKWD”. The upsized initial public offering (the “IPO” or the “offering”) of 8,952,383 shares of Skyward Specialty common stock (“Shares”), consisting of 4,750,000 Shares sold by Skyward Specialty and 4,202,383 Shares sold by selling stockholders, at the public offering price of $15.00 per Share. The underwriters also exercised in full their option to purchase 1,342,857 additional Shares from the selling stockholders, at a price per share of $15.00 per Share, less underwriting discounts and commissions.

Preceding the IPO, a 4-for-1 reverse stock split described in Skyward Specialty’s S-1 was affected and all Skyward Specialty preferred shares were mandatorily converted into Skyward Specialty common shares. Accordingly, preferred shares owned by Westaim were converted into 7,285,359 Shares. As a result, post-IPO, Westaim will own 7,281,780 Shares through its look-through interest in the Partnership and 7,285,359 Shares directly, totaling 14,567,139 Shares or approximately 39% of the outstanding Skyward Specialty common shares.

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