AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of Great Midwest Insurance Company (GMIC), Houston Specialty Insurance Company (HSIC), Oklahoma Specialty Insurance Company (OSIC) and Imperium Insurance Company (IIC) are unchanged following the September 2, 2025, announcement that Skyward Specialty Insurance Group, Inc. (Skyward Group) has entered into a definitive agreement with the majority sellers to acquire 100% of Apollo Group Holdings Limited (Apollo) for a total consideration of $555 million from Alchemy, management, employees and other strategic investors.

GMIC, HSIC, OSIC and IIC are members of Skyward Specialty Insurance Group (Skyward), whose ultimate parent, Skyward Group, [NASDAQ: SKWD], has a Long-Term ICR of “bbb” (Good). All companies are headquartered in Houston, TX.

The Credit Ratings (ratings) reflect Skyward’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Skyward Specialty maintains a position as a leading writer in U.S. specialty markets. Apollo is a leading U.S. centric specialty underwriting platform operating at Lloyd’s of London and is also the managing agent to both its own syndicates, as well as to other third-party syndicates, known as Platform Partners. Apollo’s management team will join Skyward Specialty and continue to lead the Apollo business. The transaction is expected to close in first-quarter 2026, subject to regulatory approvals.

AM Best does not expect the transaction to have any material change to Skyward’s current rating fundamentals. AM Best will continue to monitor the progress and the effects of this transaction over time, including the planned synergies and efficiencies gained from the transaction, as there could be future benefits to Skyward’s business profile. Conversely, based on the indicated financing there is an immediate increase to financial leverage to slightly over 25%, which Skyward expects to manage over time, as well as execution risk as noted in any significant acquisition. Skyward plans to maintain strong interest coverage without taking dividends from the insurance subsidiaries in the near to medium term. Apollo will provide Skyward with a stream of unregulated earnings and cash flow, which reduces the organization’s reliance on its statutory entities.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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