US Market News
2月前
Kinsale Capital Group Reports First Quarter 2026 ResultsApril 23, 2026 4:10 PM
Business Wire
Kinsale Capital Group, Inc. (NYSE: KNSL) reported net income of $112.6 million, $4.88 per diluted share, for the first quarter of 2026 compared to $89.2 million, $3.83 per diluted share, for the first quarter of 2025. Net income included after-tax catastrophe losses of $1.3 million in the first quarter of 2026 and $17.8 million in the first quarter of 2025. Net operating earnings(1) were $117.8 million, $5.11 per diluted share, for the first quarter of 2026 compared to $86.4 million, $3.71 per diluted share, for the first quarter of 2025.
Three Months Ended March 31,
2026
2025
% Change
Diluted earnings per share
$
4.88
$
3.83
27.4
%
Diluted operating earnings per share(1)
$
5.11
$
3.71
37.7
%
Highlights for the quarter included:
Gross written premiums decreased by 0.5% to $482.0 million
Net written premiums increased by 5.6% to $403.3 million
Net investment income increased by 26.5% to $55.4 million
Underwriting income(2) was $94.5 million, resulting in a combined ratio(5) of 77.4%
Annualized operating return on equity(7) was 24.0% for the three months ended March 31, 2026
"Our first quarter results demonstrate exceptional profitability," said Chairman, President and Chief Executive Officer, Michael P. Kehoe. "We have confidence in our strategy of underwriting discipline and maintaining structurally low costs. Particularly in a competitive market, we remain focused on delivering long-term stockholder value throughout the market cycle by generating consistent and attractive underwriting profits while managing our capital prudently."
Results of Operations
Underwriting Results
Gross written premiums were $482.0 million for the first quarter of 2026 compared to $484.3 million for the first quarter of 2025, a decrease of 0.5%. The decrease in gross written premiums was primarily due to a 28.3% decline in the Commercial Property Division, one of the Company's largest divisions, driven by continued rate decreases from heightened competition, including from standard carriers. Excluding the Commercial Property Division, gross written premiums increased 6.0% compared to the prior-year period, reflecting continued strong submission flow across most divisions.
Net written premiums were $403.3 million for the first quarter of 2026 compared to $381.7 million for the first quarter of 2025, an increase of 5.6%. The increase in net written premiums was primarily due to an increase in retention on the Company's reinsurance treaties effective with the June 2025 renewal.
Underwriting income(2) was $94.5 million, resulting in a combined ratio(5) of 77.4% for the first quarter of 2026, compared to $67.5 million and a combined ratio(5) of 82.1% for the same period last year. The increase in underwriting income(2) was largely due to growth in net earned premiums, lower catastrophe losses and higher favorable development of loss reserves from prior accident years.
Loss(3) and expense(4) ratios were 56.3% and 21.1%, respectively, for the first quarter of 2026 compared to 62.1% and 20.0% for the first quarter of 2025. Results for the first quarter of 2026 and 2025 included net favorable development of loss reserves from prior accident years of $18.7 million, or 4.5 points, and $14.6 million, or 3.9 points, respectively. The loss ratio for the first quarter of 2026 included 0.4 points of net catastrophe losses. The loss ratio for the first quarter of 2025 included 6.0 points of net catastrophe losses, primarily related to the Palisades Fire. The increase in the expense ratio to 21.1% in the first quarter of 2026 from 20.0% in the first quarter of 2025 was primarily due to lower ceding commissions as a result of higher retention on the Company’s reinsurance treaties. The economic effect of lower ceding commissions was more than offset by the retention of incremental underwriting margin and higher investment income.
Summary of Operating Results
The Company’s operating results for the three months ended March 31, 2026 and 2025 are summarized as follows:
Three Months Ended March 31,
2026
2025
($ in thousands)
Gross written premiums
$
482,018
$
484,275
Ceded written premiums
(78,756
)
(102,570
)
Net written premiums
$
403,262
$
381,705
Net earned premiums
$
406,859
$
365,790
Fee income
10,995
9,559
Losses and loss adjustment expenses
235,119
232,976
Underwriting, acquisition and insurance expenses
88,234
74,912
Underwriting income(2)
$
94,501
$
67,461
Loss ratio(3)
56.3
%
62.1
%
Expense ratio(4)
21.1
%
20.0
%
Combined ratio(5)
77.4
%
82.1
%
Annualized return on equity(6)
22.9
%
23.3
%
Annualized operating return on equity(7)
24.0
%
22.5
%
(1) Net operating earnings is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.
(2) Underwriting income is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.
(3) Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to the sum of net earned premiums and fee income.
(4) Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income.
(5) The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding.
(6) Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
(7) Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
The following table summarizes losses incurred for the current accident year and the development of prior accident years for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Losses and
Loss
Adjustment Expenses
% of Sum of
Earned Premiums
and Fee
Income
Losses and
Loss
Adjustment
Expenses
% of Sum of
Earned
Premiums
and Fee
Income
Loss ratio:
($ in thousands)
Current accident year
$
252,188
60.4
%
$
225,047
60.0
%
Current accident year - catastrophe losses
1,636
0.4
%
22,578
6.0
%
Effect of prior accident year development
(18,705
)
(4.5
)%
(14,649
)
(3.9
)%
Total
$
235,119
56.3
%
$
232,976
62.1
%
Investment Results
Net investment income was $55.4 million in the first quarter of 2026 compared to $43.8 million in the first quarter of 2025, an increase of 26.5%. This increase was driven by growth in the Company's investment portfolio generated largely from the investment of strong operating cash flows. The Company’s investment portfolio had an annualized gross investment return(8) of 4.5% and 4.3% for the first quarter of 2026 and 2025, respectively. Funds are generally invested conservatively in high-quality securities with an average credit quality of "AA-" and the weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.1 years and 4.0 years at March 31, 2026 and December 31, 2025, respectively. Cash and invested assets totaled $5.3 billion at March 31, 2026, and $5.2 billion at December 31, 2025.
(8) Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of average beginning and ending book values of those investments during the period.
Capital Return to Stockholders
During the first quarter of 2026, the Company repurchased 166,042 shares of its common stock in the open market at an average price of $376.41 per share for a total cost of $62.5 million. At March 31, 2026, the Company had $187.5 million of capacity remaining under its share repurchase program.
During the first quarter of 2026, the Company declared and paid a cash dividend of $0.25 per share of common stock for a total distribution of $5.7 million.
Other
The effective tax rates for the three months ended March 31, 2026 and March 31, 2025, were 19.4% and 20.6%, respectively. In the first quarter of 2026 and 2025, the effective tax rates were lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.
Stockholders' equity was $2.0 billion at both March 31, 2026 and December 31, 2025. Book value per share was $85.31 at March 31, 2026 compared to $84.66 at December 31, 2025. Annualized operating return on equity(7) was 24.0% for the first three months of 2026, an increase from 22.5% for the first three months of 2025. The increase was due primarily to higher profitability compared to the prior-year period offset in part by higher average stockholders' equity.
Non-GAAP Financial Measures
Net Operating Earnings
Net operating earnings is defined as net income excluding the effects of the change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and change in allowance for credit losses on investments, after taxes. Management believes the exclusion of these items provides a useful comparison of the Company's underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-GAAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.
For the three months ended March 31, 2026 and 2025, net income and diluted earnings per share reconcile to net operating earnings and diluted operating earnings per share as follows:
Three Months Ended March 31,
2026
2025
($ in thousands, except per share data)
Net operating earnings:
Net income
$
112,554
$
89,227
Adjustments:
Change in the fair value of equity securities, before taxes
8,356
(3,038
)
Income tax (benefit) expense (1)
(1,755
)
638
Change in fair value of equity securities, after taxes
6,601
(2,400
)
Net realized investment gains, before taxes
(1,719
)
(537
)
Income tax expense (1)
361
113
Net realized investment gains, after taxes
(1,358
)
(424
)
Change in allowance for credit losses on investments, before taxes
27
20
Income tax benefit (1)
(6
)
(4
)
Change in allowance for credit losses on investments, after taxes
21
16
Net operating earnings
$
117,818
$
86,419
Diluted operating earnings per share:
Diluted earnings per share
$
4.88
$
3.83
Change in the fair value of equity securities, after taxes, per share
0.29
(0.10
)
Net realized investment gains, after taxes, per share
(0.06
)
(0.02
)
Diluted operating earnings per share(2)
$
5.11
$
3.71
Operating return on equity:
Average equity(3)
$
1,963,465
$
1,533,268
Annualized return on equity(4)
22.9
%
23.3
%
Annualized operating return on equity(5)
24.0
%
22.5
%
(1) Income taxes on adjustments to reconcile net income to net operating earnings use a 21% effective tax rate.
(2) Diluted operating earnings per share may not add due to rounding.
(3) Average equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two.
(4) Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.
(5) Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.
Underwriting Income
Underwriting income is defined as net income excluding net investment income, the change in the fair value of equity securities, net realized investment gains and losses, change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. The Company uses underwriting income as an internal performance measure in the management of its operations because the Company believes it gives management and users of the Company's financial information useful insight into the Company's results of operations and underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.
For the three months ended March 31, 2026 and 2025, net income reconciles to underwriting income as follows:
Three Months Ended March 31,
2026
2025
(in thousands)
Net income
$
112,554
$
89,227
Income tax expense
27,106
23,084
Income before income taxes
139,660
112,311
Net investment income
(55,423
)
(43,819
)
Change in the fair value of equity securities
8,356
(3,038
)
Net realized investment gains
(1,719
)
(537
)
Change in allowance for credit losses on investments
27
20
Interest expense
3,167
2,538
Other expenses (6)
529
660
Other income
(96
)
(674
)
Underwriting income
$
94,501
$
67,461
(6) Other expenses includes primarily corporate expenses not allocated to the Company's insurance operations.
Conference Call
Kinsale Capital Group will hold a conference call to discuss this press release on Friday, April 24, 2026, at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (800) 715-9871, conference ID# 6520221, or via the Internet by going to www.kinsalecapitalgroup.com and clicking on the "Investor Relations" link. A replay of the call will be available on the website.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
About Kinsale Capital Group, Inc.
Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.
KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income and Comprehensive Income
Three Months Ended March 31,
2026
2025
Revenues
(in thousands, except per share data)
Gross written premiums
$
482,018
$
484,275
Ceded written premiums
(78,756
)
(102,570
)
Net written premiums
403,262
381,705
Change in unearned premiums
3,597
(15,915
)
Net earned premiums
406,859
365,790
Fee income
10,995
9,559
Net investment income
55,423
43,819
Change in the fair value of equity securities
(8,356
)
3,038
Net realized investment gains
1,719
537
Change in allowance for credit losses on investments
(27
)
(20
)
Other income
96
674
Total revenues
466,709
423,397
Expenses
Losses and loss adjustment expenses
235,119
232,976
Underwriting, acquisition and insurance expenses
88,234
74,912
Interest expense
3,167
2,538
Other expenses
529
660
Total expenses
327,049
311,086
Income before income taxes
139,660
112,311
Total income tax expense
27,106
23,084
Net income
112,554
89,227
Other comprehensive income (loss)
Change in net unrealized losses on available-for-sale investments, net of taxes
(34,913
)
26,382
Total comprehensive income
$
77,641
$
115,609
Earnings per share:
Basic
$
4.90
$
3.85
Diluted
$
4.88
$
3.83
Weighted-average shares outstanding:
Basic
22,975
23,170
Diluted
23,057
23,313
KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
March 31, 2026
December 31, 2025
Assets
(in thousands)
Investments:
Fixed-maturity securities at fair value
$
4,402,650
$
4,341,450
Equity securities at fair value
644,541
626,399
Real estate investments, net
54,952
55,236
Short-term investments
—
3,864
Total investments
5,102,143
5,026,949
Cash and cash equivalents
223,263
163,361
Investment income due and accrued
29,999
30,971
Premiums receivable, net
128,574
124,593
Reinsurance recoverables, net
413,242
394,329
Ceded unearned premiums
43,866
44,506
Deferred policy acquisition costs, net of ceding commissions
119,165
118,737
Intangible assets
3,538
3,538
Deferred income tax asset, net
53,725
42,191
Other assets
97,955
94,386
Total assets
$
6,215,470
$
6,043,561
Liabilities & Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses
$
3,063,156
$
2,890,870
Unearned premiums
856,157
860,394
Payable to reinsurers
33,454
34,385
Accounts payable and accrued expenses
22,354
66,301
Debt
224,466
224,397
Other liabilities
48,537
7,631
Total liabilities
4,248,124
4,083,978
Stockholders' equity
1,967,346
1,959,583
Total liabilities and stockholders' equity
$
6,215,470
$
6,043,561
View source version on businesswire.com: https://www.businesswire.com/news/home/20260423595623/en/
Kinsale Capital Group, Inc.
Bryan Petrucelli
Executive Vice President, Chief Financial Officer and Treasurer
804-289-1272
ir@kinsalecapitalgroup.com
Original: Kinsale Capital Group Reports First Quarter 2026 Results
US Market News
4月前
Kinsale Capital Group, Inc. Reports 2025 Fourth Quarter and Year-End ResultsFebruary 12, 2026 4:10 PM
Business Wire
Kinsale Capital Group, Inc. (NYSE: KNSL) reported net income of $138.6 million, $5.99 per diluted share, for the fourth quarter of 2025 compared to $109.1 million, $4.68 per diluted share, for the fourth quarter of 2024. Net income was $503.6 million, $21.65 per diluted share, for the year ended December 31, 2025 compared to $414.8 million, $17.78 per diluted share, for the year ended December 31, 2024. Net income included after-tax catastrophe losses of $2.3 million in the fourth quarter of 2025 compared to $6.2 million in the fourth quarter of 2024. For the years ended December 31, 2025 and 2024, net income included after-tax catastrophe losses of $24.0 million and $20.2 million, respectively.
Net operating earnings(1) were $134.6 million, $5.81 per diluted share, for the fourth quarter of 2025 compared to $107.8 million, $4.62 per diluted share, for the fourth quarter of 2024. Net operating earnings(1) were $453.7 million, $19.51 per diluted share, for the year ended December 31, 2025 compared to $374.8 million, $16.06 per diluted share, for the year ended December 31, 2024.
Highlights for the fourth quarter of 2025 included:
Diluted earnings per share increased by 28.0% and diluted operating earnings(1) per share increased by 25.8% compared to the fourth quarter of 2024
Gross written premiums increased by 1.8% to $451.1 million and net written premiums increased by 7.1% to $370.6 million compared to the fourth quarter of 2024
Net investment income increased by 24.9% to $52.3 million compared to the fourth quarter of 2024
Underwriting income(2) was $120.6 million in the fourth quarter of 2025, resulting in a combined ratio(5) of 71.7%
Highlights for the full year of 2025 included:
Diluted earnings per share increased by 21.8% and diluted operating earnings(1) per share increased by 21.5% compared to the full year of 2024
Gross written premiums increased by 5.7% to $2.0 billion and net written premiums increased by 9.4% to $1.6 billion compared to the full year of 2024
Net investment income increased by 27.9% to $192.2 million compared to the full year of 2024
Underwriting income(2) was $389.2 million for the year ended December 31, 2025, resulting in a combined ratio(5) of 75.9%
Operating return on equity(7) was 26.4% for the year ended December 31, 2025
"We delivered another strong quarter to close out 2025, marked by exceptional profitability resulting from continued disciplined underwriting and technology-enabled low costs in a competitive market. We remain confident that the resilience of our model positions us to deliver long-term value for our stockholders throughout the market cycle," said Chairman and Chief Executive Officer, Michael P. Kehoe.
Results of Operations
Underwriting Results
Gross written premiums were $451.1 million for the fourth quarter of 2025 compared to $443.3 million for the fourth quarter of 2024, an increase of 1.8%. Gross written premiums were $2.0 billion for the year ended December 31, 2025 compared to $1.9 billion for the year ended December 31, 2024, an increase of 5.7%. Gross written premiums in the Commercial Property Division, the Company’s largest division, declined 28.3% in the fourth quarter and 17.9% for the year ended December 31, 2025, compared to the prior-year periods, reflecting lower rates and increased competition, including from standard carriers. Excluding the Commercial Property Division, gross written premiums increased 10.2% for the quarter and 13.3% for the full year compared to the prior-year periods, driven by continued strong submission flow across most divisions.
Net written premiums were $370.6 million for the fourth quarter of 2025 compared to $346.1 million for the fourth quarter of 2024, an increase of 7.1%. Net written premiums were $1.6 billion for the year ended December 31, 2025 compared to $1.5 billion for the year ended December 31, 2024, an increase of 9.4%. Growth in net written premiums during the fourth quarter and year ended December 31, 2025 over the prior-year periods was largely due to higher gross written premiums and an increase in the retention on the Company’s reinsurance treaties.
Underwriting income(2) was $120.6 million, resulting in a combined ratio(5) of 71.7%, for the fourth quarter of 2025, compared to $97.9 million, and a combined ratio(5) of 73.4% for the same period last year. The increase in underwriting income(2) for the fourth quarter of 2025 was due to continued growth in the business, higher favorable development of loss reserves from prior accident years and lower catastrophe losses. Loss(3) and expense(4) ratios were 50.1% and 21.6%, respectively, for the fourth quarter of 2025 compared to 52.3% and 21.1% for the fourth quarter of 2024. Favorable development of reserves from prior accident years was $17.0 million, or 4.0 points, for the fourth quarter of 2025 primarily within property lines of business and $9.6 million, or 2.6 points, for the fourth quarter of 2024. The loss ratio for the fourth quarter of 2025 included 0.7 points of net catastrophe losses. The loss ratio for the fourth quarter of 2024 included 2.2 points of net catastrophe losses, primarily related to Hurricane Milton.
Underwriting income(2) was $389.2 million, resulting in a combined ratio(5) of 75.9%, for the year ended December 31, 2025, compared to $325.9 million, and a combined ratio(5) of 76.4% for the prior year. The increase in underwriting income(2) for the year ended December 31, 2025 was largely due to continued growth in the business and higher favorable development of loss reserves from prior accident years offset in part by higher catastrophe losses incurred during the year. Loss(3) and expense(4) ratios were 55.1% and 20.8%, respectively, for the year ended December 31, 2025 compared to 55.8% and 20.6%, respectively, for the year ended December 31, 2024. Favorable development of reserves from prior accident years was $62.8 million, or 3.9 points, for the year ended December 31, 2025 primarily within property lines of business and $37.7 million, or 2.7 points, for the year ended December 31, 2024. The loss ratio for the year ended December 31, 2025 included 1.9 points of net catastrophe losses primarily related to the Palisades Fire. The loss ratio for the year ended December 31, 2024 included 1.8 points of net catastrophe losses, primarily related to Hurricanes Milton, Helene and Francine and tornadoes in the Midwest.
Summary of Operating Results
The Company’s operating results for the three months and years ended December 31, 2025 and 2024 are summarized as follows:
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
($ in thousands)
Gross written premiums
$
451,123
$
443,281
$
1,977,171
$
1,870,341
Ceded written premiums
(80,571
)
(97,160
)
(361,154
)
(392,993
)
Net written premiums
$
370,552
$
346,121
$
1,616,017
$
1,477,348
Net earned premiums
$
415,482
$
359,739
$
1,575,842
$
1,350,470
Fee income
10,059
8,546
40,714
34,118
Losses and loss adjustment expenses
213,196
192,548
890,693
772,899
Underwriting, acquisition and insurance expenses
91,764
77,848
336,696
285,808
Underwriting income(2)
$
120,581
$
97,889
$
389,167
$
325,881
Loss ratio(3)
50.1
%
52.3
%
55.1
%
55.8
%
Expense ratio(4)
21.6
%
21.1
%
20.8
%
20.6
%
Combined ratio(5)
71.7
%
73.4
%
75.9
%
76.4
%
Annualized return on equity(6)
29.0
%
29.9
%
29.3
%
32.3
%
Annualized operating return on equity(7)
28.2
%
29.6
%
26.4
%
29.2
%
(1)
Net operating earnings is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.
(2)
Underwriting income is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.
(3)
Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to the sum of net earned premiums and fee income.
(4)
Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income.
(5)
The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding.
(6)
Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
(7)
Annualized operating return on equity is net operating earnings (a non-GAAP financial measure) expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
The following tables summarize losses incurred for the current accident year and the development of prior accident years for the three months and years ended December 31, 2025 and 2024:
Three Months Ended
Three Months Ended
December 31, 2025
December 31, 2024
Losses and Loss Adjustment Expenses
% of Sum of Earned Premiums and Fee Income
Losses and Loss Adjustment Expenses
% of Sum of Earned Premiums and Fee Income
Loss ratio:
($ in thousands)
Current accident year
$
227,309
53.4
%
$
194,226
52.7
%
Current accident year - catastrophe losses
2,851
0.7
%
7,905
2.2
%
Effect of prior accident year development
(16,964
)
(4.0
)%
(9,583
)
(2.6
)%
Total
$
213,196
50.1
%
$
192,548
52.3
%
Year Ended
Year Ended
December 31, 2025
December 31, 2024
Losses and Loss Adjustment Expenses
% of Sum of Earned Premiums and Fee Income
Losses and Loss Adjustment Expenses
% of Sum of Earned Premiums and Fee Income
Loss ratio:
($ in thousands)
Current accident year
$
923,160
57.1
%
$
785,036
56.7
%
Current accident year - catastrophe losses
30,350
1.9
%
25,518
1.8
%
Effect of prior accident year development
(62,817
)
(3.9
)%
(37,655
)
(2.7
)%
Total
$
890,693
55.1
%
$
772,899
55.8
%
Investment Results
Net investment income was $52.3 million in the fourth quarter of 2025 compared to $41.9 million in the fourth quarter of 2024, an increase of 24.9%. Net investment income was $192.2 million for the full year of 2025 compared to $150.3 million for the full year of 2024, an increase of 27.9%. These increases were driven by growth in the Company's investment portfolio generated primarily from the investment of strong operating cash flows since December 31, 2024. The Company’s investment portfolio, excluding cash and cash equivalents, had a gross investment return(8) of 4.4% for both the years ended December 31, 2025 and 2024. Funds are generally invested conservatively in high quality securities, including government agency, asset- and mortgage-backed securities, and municipal and corporate bonds with an average credit quality of "AA-." The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.0 years and 3.0 years at December 31, 2025 and 2024, respectively. Cash and invested assets totaled $5.2 billion at December 31, 2025 compared to $4.1 billion at December 31, 2024.
(8)
Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of average beginning and ending book values of those investments during the period.
Capital Return to Stockholders
During the fourth quarter of 2025, the Company repurchased 119,752 shares of its common stock in the open market at an average price of $417.52 per share for a total cost of $50.0 million, exhausting the initial $100 million share repurchase authorization. In December 2025, the Company announced a new $250 million share repurchase authorization.
In February 2026, the Company's Board of Directors declared a cash dividend of $0.25 per share of common stock, a 47.1% increase from the prior cash dividend, reflecting continued confidence in the Company’s financial position and capital generation abilities.
The new share repurchase authorization and increased dividend return excess capital to stockholders while maintaining a conservative capital position for the Company's business.
Other
The effective tax rates for the years ended December 31, 2025 and 2024 were 20.6% and 19.4%, respectively. The effective tax rates were lower than the federal statutory rate primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income. The effective tax rate was higher for the full year of 2025 compared to the full year of 2024 due primarily to a lower volume of stock option exercises.
Stockholders' equity was $2.0 billion at December 31, 2025, compared to $1.5 billion at December 31, 2024. Book value per share was $84.66 at December 31, 2025 compared to $63.75 at December 31, 2024. Operating return on equity was 26.4% for the full year of 2025, a decrease from 29.2% for the full year of 2024. The decrease was due primarily to higher average stockholders' equity as a result of profitable growth and an increase in the fair value of the Company's investment portfolio offset in part by share repurchases.
Non-GAAP Financial Measures
Net Operating Earnings
Net operating earnings is defined as net income excluding the effects of the change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and the change in allowance for credit losses on investments, after taxes. Management believes the exclusion of these items provides a useful comparison of the Company's underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-GAAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.
For the three months and years ended December 31, 2025 and 2024, net income and diluted earnings per share reconcile to net operating earnings and diluted operating earnings per share as follows:
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
($ in thousands, except per share data)
Net operating earnings:
Net income
$
138,620
$
109,094
$
503,614
$
414,843
Adjustments:
Change in the fair value of equity securities, before taxes
(3,460
)
(1,496
)
(58,836
)
(43,367
)
Income tax expense (1)
727
314
12,356
9,107
Change in fair value of equity securities, after taxes
(2,733
)
(1,182
)
(46,480
)
(34,260
)
Net realized investment gains, before taxes
(1,558
)
(94
)
(4,390
)
(6,831
)
Income tax expense (1)
327
20
922
1,435
Net realized investment gains, after taxes
(1,231
)
(74
)
(3,468
)
(5,396
)
Change in allowance for credit losses on investments, before taxes
(9
)
(36
)
2
(526
)
Income tax expense (1)
2
8
—
110
Change in allowance for credit losses on investments, after taxes
(7
)
(28
)
2
(416
)
Net operating earnings
$
134,649
$
107,810
$
453,668
$
374,771
Diluted operating earnings per share:
Diluted earnings per share
$
5.99
$
4.68
$
21.65
$
17.78
Change in fair value of equity securities, after taxes, per share
(0.12
)
(0.05
)
(2.00
)
(1.47
)
Net realized investment gains, after taxes, per share
(0.05
)
—
(0.15
)
(0.23
)
Change in allowance for credit losses on investments, after taxes, per share
—
—
—
(0.02
)
Diluted operating earnings per share(2)
$
5.81
$
4.62
$
19.51
$
16.06
Operating return on equity:
Average equity(3)
$
1,912,400
$
1,459,255
$
1,721,572
$
1,285,197
Annualized return on equity(4)
29.0
%
29.9
%
29.3
%
32.3
%
Annualized operating return on equity(5)
28.2
%
29.6
%
26.4
%
29.2
%
(1)
Income taxes on adjustments to reconcile net income to net operating earnings use a 21% effective tax rate.
(2)
Diluted operating earnings per share may not add due to rounding.
(3)
Average equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two.
(4)
Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
(5)
Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
Underwriting Income
Underwriting income is defined as net income excluding net investment income, the change in the fair value of equity securities, net realized investment gains and losses, the change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. The Company uses underwriting income as an internal performance measure in the management of its operations because the Company believes it gives management and users of the Company's financial information useful insight into the Company's results of operations and underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.
For the three months and years ended December 31, 2025 and 2024, net income reconciles to underwriting income as follows:
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in thousands)
Net income
$
138,620
$
109,094
$
503,614
$
414,843
Income tax expense
36,204
29,557
130,688
99,873
Income before income taxes
174,824
138,651
634,302
514,716
Net investment income
(52,296
)
(41,863
)
(192,192
)
(150,287
)
Change in fair value of equity securities
(3,460
)
(1,496
)
(58,836
)
(43,367
)
Net realized investment gains
(1,558
)
(94
)
(4,390
)
(6,831
)
Change in allowance for credit losses on investments
(9
)
(36
)
2
(526
)
Interest expense
2,982
2,559
10,646
10,134
Other expenses (6)
505
517
1,650
3,968
Other income
(407
)
(349
)
(2,015
)
(1,926
)
Underwriting income
$
120,581
$
97,889
$
389,167
$
325,881
(6)
Other expenses includes primarily corporate expenses not allocated to the Company's insurance operations.
Conference Call
Kinsale Capital Group will hold a conference call to discuss this press release on Friday, February 13, 2026, at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (800) 715-9871, conference ID# 6520221, or via the Internet by going to www.kinsalecapitalgroup.com and clicking on the "Investor Relations" link. A replay of the call will be available on the website.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
About Kinsale Capital Group, Inc.
Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.
KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income and Comprehensive Income
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Revenues
(in thousands, except per share data)
Gross written premiums
$
451,123
$
443,281
$
1,977,171
$
1,870,341
Ceded written premiums
(80,571
)
(97,160
)
(361,154
)
(392,993
)
Net written premiums
370,552
346,121
1,616,017
1,477,348
Change in unearned premiums
44,930
13,618
(40,175
)
(126,878
)
Net earned premiums
415,482
359,739
1,575,842
1,350,470
Fee income
10,059
8,546
40,714
34,118
Net investment income
52,296
41,863
192,192
150,287
Change in fair value of equity securities
3,460
1,496
58,836
43,367
Net realized investment gains
1,558
94
4,390
6,831
Change in allowance for credit losses on investments
9
36
(2
)
526
Other income
407
349
2,015
1,926
Total revenues
483,271
412,123
1,873,987
1,587,525
Expenses
Losses and loss adjustment expenses
213,196
192,548
890,693
772,899
Underwriting, acquisition and insurance expenses
91,764
77,848
336,696
285,808
Interest expense
2,982
2,559
10,646
10,134
Other expenses
505
517
1,650
3,968
Total expenses
308,447
273,472
1,239,685
1,072,809
Income before income taxes
174,824
138,651
634,302
514,716
Income tax expense
36,204
29,557
130,688
99,873
Net income
138,620
109,094
503,614
414,843
Other comprehensive income (loss)
Change in unrealized gains (losses) on available-for-sale investments, net of taxes
5,548
(50,455
)
66,514
(2,589
)
Total comprehensive income
$
144,168
$
58,639
$
570,128
$
412,254
Earnings per share:
Basic
$
6.01
$
4.71
$
21.76
$
17.92
Diluted
$
5.99
$
4.68
$
21.65
$
17.78
Weighted-average shares outstanding:
Basic
23,056
23,164
23,140
23,153
Diluted
23,161
23,330
23,259
23,332
KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
December 31, 2025
December 31, 2024
(in thousands)
Assets
Investments:
Fixed-maturity securities at fair value
$
4,341,450
$
3,537,563
Equity securities at fair value
626,399
398,359
Real estate investments, net
55,236
15,045
Short-term investments
3,864
3,714
Total investments
5,026,949
3,954,681
Cash and cash equivalents
163,361
113,213
Investment income due and accrued
30,971
27,366
Premiums receivable, net
124,593
140,027
Reinsurance recoverables, net
394,329
337,891
Ceded unearned premiums
44,506
52,736
Deferred policy acquisition costs, net of ceding commissions
118,737
109,263
Indefinite-lived intangible assets
3,538
3,538
Deferred income tax asset, net
42,191
60,215
Other assets
94,386
87,774
Total assets
$
6,043,561
$
4,886,704
Liabilities & Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses
$
2,890,870
$
2,285,668
Unearned premiums
860,394
828,449
Payable to reinsurers
34,385
43,959
Accounts payable and accrued expenses
66,301
55,159
Debt
224,397
184,122
Other liabilities
7,631
5,786
Total liabilities
4,083,978
3,403,143
Stockholders' equity
1,959,583
1,483,561
Total liabilities and stockholders' equity
$
6,043,561
$
4,886,704
View source version on businesswire.com: https://www.businesswire.com/news/home/20260212699738/en/
Kinsale Capital Group, Inc.
Bryan Petrucelli
Executive Vice President, Chief Financial Officer and Treasurer
804-289-1272
ir@kinsalecapitalgroup.com
Original: Kinsale Capital Group, Inc. Reports 2025 Fourth Quarter and Year-End Results
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