Core Insights - Kinsale Capital Group, Inc. reported a revenue of $469.81 million for the quarter ended June 2025, reflecting a year-over-year increase of 22.2% [1] - The company's EPS for the quarter was $4.78, up from $3.75 in the same quarter last year, surpassing the consensus estimate of $4.41 by 8.39% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $434.01 million, resulting in a surprise of 8.25% [1] Financial Metrics - Expense Ratio was reported at 20.7%, slightly better than the estimated 20.9% [4] - Combined Ratio stood at 75.8%, outperforming the average estimate of 78% [4] - Loss Ratio was 55.1%, compared to the average estimate of 57.2% [4] - Net Earned Premiums revenue was $383.61 million, exceeding the average estimate of $373.89 million, with a year-over-year increase of 15.4% [4] - Net Investment Income was $46.47 million, slightly below the average estimate of $47.06 million, but showing a year-over-year increase of 29.6% [4] - Other Income was reported at $0.17 million, significantly lower than the average estimate of $0.54 million, reflecting a year-over-year decrease of 77% [4] - Fee Income reached $10.8 million, surpassing the average estimate of $10.36 million, with a year-over-year increase of 20.1% [4] - Change in the Fair Value of Equity Securities was $28.62 million, well above the average estimate of $8.02 million [4] Stock Performance - Kinsale Capital Group's shares returned +2.9% over the past month, while the Zacks S&P 500 composite increased by +5.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Kinsale Capital Group, Inc. reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][2]. Financial Performance - The company achieved quarterly earnings of $4.78 per share, surpassing the Zacks Consensus Estimate of $4.41 per share, and up from $3.75 per share a year ago, representing an earnings surprise of +8.39% [1]. - Revenues for the quarter reached $469.81 million, exceeding the Zacks Consensus Estimate by 8.25%, and up from $384.55 million in the same quarter last year [2]. Market Performance - Kinsale Capital Group shares have increased approximately 3% since the beginning of the year, while the S&P 500 has gained 8.1% [3]. - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - The consensus EPS estimate for the upcoming quarter is $4.59, with projected revenues of $443.81 million, and for the current fiscal year, the EPS estimate is $17.76 on revenues of $1.75 billion [7]. - The outlook for the insurance industry, particularly the Property and Casualty sector, is favorable, with the industry currently ranking in the top 38% of Zacks industries [8].

Core Insights - Kinsale Capital Group reported strong financial results for Q2 2025, beating revenue and earnings expectations significantly [4][6] - The company achieved record net income, attributed to stable catastrophe losses and improved profitability metrics [4][6] Financial Performance - Revenue increased from $384.6 million in Q2 2024 to $469.8 million in Q2 2025, marking a 22.2% growth [2] - Adjusted EPS rose from $3.75 to $4.78, reflecting a 27.5% year-over-year increase [2] - The combined ratio improved to 75.8% from 82.1% in the previous quarter, indicating a strong underwriting profit margin [2][6] - Net investment income grew by 29.6%, from $35.8 million to $46.5 million, benefiting from a high-interest rate environment [2][6] Market Reaction - Initial market response to the earnings report was slightly negative, with shares down less than 1% [7] - Historical patterns suggest that Kinsale's stock may experience larger movements following earnings calls [8] Future Considerations - The upcoming third quarter is critical due to the peak of hurricane season, which may impact the combined ratio [9] - Kinsale has consistently spent $10 million on stock buybacks over the past three quarters, raising questions about future buyback strategies depending on stock price movements [10]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Kinsale Capital Group's unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes, for Q2 and H1 2025 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $5.56 billion as of June 30, 2025, from $4.89 billion at year-end 2024, driven by increased investments and cash, while liabilities rose due to higher reserves for unpaid losses, and stockholders' equity increased to $1.72 billion Consolidated Balance Sheet Highlights (as of June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Investments** | 4,481,315 | 3,954,681 | +13.3% | | **Total Assets** | 5,556,526 | 4,886,704 | +13.7% | | **Reserves for unpaid losses** | 2,623,653 | 2,285,668 | +14.8% | | **Total Liabilities** | 3,833,953 | 3,403,143 | +12.7% | | **Total Stockholders' Equity** | 1,722,573 | 1,483,561 | +16.1% | [Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net income for Q2 2025 significantly increased to $134.1 million from $92.6 million in Q2 2024, driven by higher net earned premiums and investment income, with diluted EPS rising to $5.76 Income Statement Summary (Q2 & H1 2025 vs. 2024) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | H1 2025 ($ thousands) | H1 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Gross Written Premiums | 555,522 | 529,770 | 1,039,797 | 978,414 | | Net Earned Premiums | 383,613 | 332,461 | 749,403 | 641,979 | | Total Revenues | 469,814 | 384,553 | 893,211 | 757,344 | | Net Income | 134,121 | 92,579 | 223,348 | 191,520 | | Diluted EPS | $5.76 | $3.97 | $9.59 | $8.21 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was $498.9 million, while investing activities used $440.2 million and financing activities used $33.7 million, resulting in a $24.9 million increase in cash and cash equivalents Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 ($ thousands) | 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 498,870 | 489,293 | | Net cash used in investing activities | (440,248) | (432,165) | | Net cash used in financing activities | (33,734) | (12,801) | | **Net change in cash and cash equivalents** | **24,888** | **44,327** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, the $4.5 billion investment portfolio primarily in fixed-maturity securities, favorable prior-year loss reserve development of $30.1 million, and information on reinsurance and debt structure - The investment portfolio is primarily composed of fixed-maturity securities, valued at **$3.92 billion** at fair value as of June 30, 2025, with corporate and other securities representing the largest portion at **$2.1 billion**[26](index=26&type=chunk) - For the six months ended June 30, 2025, reserves for unpaid losses from prior years developed favorably by **$30.1 million**, mainly from the 2020-2024 accident years due to lower than expected loss emergence, particularly in property lines[66](index=66&type=chunk) - The company has one reportable segment: **Excess and Surplus Lines Insurance**, with the Chief Executive Officer identified as the Chief Operating Decision Maker (CODM)[79](index=79&type=chunk)[80](index=80&type=chunk) - The company is involved in a legal proceeding related to a **$140.0 million** jury verdict against a policyholder, which management believes will not have a material adverse effect on its financial results, having made adequate provisions in its reserves[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting continued profitable growth and higher investment income as key drivers for increased net income in Q2 and H1 2025, alongside premium growth, a strong combined ratio, investment strategy, liquidity, capital resources, and reinsurance programs [Results of Operations](index=35&type=section&id=Results%20of%20Operations) The company's results show strong growth in net income, driven by higher net earned premiums and investment income, with Q2 2025 net income rising 44.9% to $134.1 million and H1 2025 net income increasing 16.6% to $223.3 million, despite declines in the Commercial Property division Key Performance Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Gross Written Premiums | $555.5M | $529.8M | | Net Income | $134.1M | $92.6M | | Underwriting Income (Non-GAAP) | $95.5M | $76.1M | | Combined Ratio | 75.8% | 77.7% | | Annualized Return on Equity | 32.5% | 30.5% | Key Performance Metrics (H1 2025 vs. H1 2024) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Written Premiums | $1.04B | $0.98B | | Net Income | $223.3M | $191.5M | | Underwriting Income (Non-GAAP) | $162.9M | $141.1M | | Combined Ratio | 78.8% | 78.6% | | Annualized Return on Equity | 27.9% | 32.7% | - Gross written premiums in the Commercial Property Division decreased **16.8%** in Q2 2025 and **17.5%** in H1 2025 due to rate declines and a more competitive environment, while excluding this division, gross written premiums grew **14.3%** in Q2 and **15.5%** in H1[115](index=115&type=chunk)[130](index=130&type=chunk) - The loss ratio for H1 2025 increased to **58.5%** from **57.7%** in H1 2024, primarily due to higher catastrophe losses (**$26.3 million**) related to the Palisades Fire[67](index=67&type=chunk)[133](index=133&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, with primary cash sources from premiums, $70.0 million remaining under its share repurchase program, $184.3 million in total debt, and an available $100.0 million revolving credit facility, which management deems sufficient for the next 12 months - The company's Board of Directors authorized a **$100.0 million** share repurchase program in October 2024, with **$70.0 million** of capacity remaining as of June 30, 2025[146](index=146&type=chunk) - Total debt outstanding as of June 30, 2025, was **$184.3 million**, consisting of a credit facility and Series A & B Senior Notes[75](index=75&type=chunk) - The company's reinsurance program includes significant coverage for property catastrophe events, with a retention of **$75.0 million** per catastrophe[163](index=163&type=chunk) [Financial Condition](index=48&type=section&id=Financial%20Condition) Total stockholders' equity increased to $1.7 billion at June 30, 2025, from $1.5 billion at year-end 2024, driven by profits and an increase in the fair value of fixed-maturity investments, with the investment portfolio growing to $4.6 billion and maintaining a high credit quality - Total stockholders' equity and tangible stockholders' equity both increased to **$1.7 billion** at June 30, 2025, up from **$1.5 billion** at December 31, 2024[168](index=168&type=chunk) Fixed-Maturity Securities Credit Quality (June 30, 2025) | Rating (S&P or Equivalent) | Fair Value ($ thousands) | % of Total | | :--- | :--- | :--- | | AAA | 1,293,859 | 33.0% | | AA | 644,483 | 16.4% | | A | 1,168,777 | 29.8% | | BBB | 746,078 | 19.1% | | Below BBB and unrated | 64,881 | 1.7% | | **Total** | **3,918,078** | **100.0%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are equity price risk and interest rate risk associated with its investment portfolio, with no material changes reported since its 2024 Annual Report on Form 10-K - The company's main market risks are **equity price risk** and **interest rate risk** from its investment portfolio, with no material changes in this risk profile reported since the end of fiscal year 2024[184](index=184&type=chunk)[185](index=185&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to internal control over financial reporting occurring during the second quarter of 2025 - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[187](index=187&type=chunk) - There were **no changes** in internal control over financial reporting during the second quarter of 2025 that materially affected, or are reasonably likely to materially affect, the company's internal controls[188](index=188&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to legal proceedings arising in the ordinary course of business, including a significant wrongful death claim detailed in Note 16, which management believes will not have a material adverse effect on the company's financial position - The company is involved in legal proceedings from the normal course of business and does not expect them to have a **material adverse effect**, with specific details on a particular case available in Note 16[190](index=190&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024, and the Q1 2025 Form 10-Q - **No material changes** to risk factors have occurred since the company's 2024 10-K and Q1 2025 10-Q filings[191](index=191&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity, noting that during the second quarter of 2025, the company repurchased 23,309 shares at an average price of $429.02 per share, leaving $70.0 million available under its current repurchase authorization Share Repurchase Activity (Q2 2025) | Period | Total Shares Purchased | Average Price Paid | Approx. Value Remaining ($M) | | :--- | :--- | :--- | :--- | | April 2025 | 23,309 | $429.02 | $70.0 | | May 2025 | 0 | N/A | $70.0 | | June 2025 | 0 | N/A | $70.0 | | **Total Q2** | **23,309** | **$429.02** | **$70.0** | [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) This section discloses information regarding securities trading plans adopted by directors and executive officers, specifically noting that CEO Michael P. Kehoe adopted a Rule 10b5-1 trading plan for the sale of 27,576 options during Q2 2025 - On May 22, 2025, CEO Michael P. Kehoe adopted a Rule 10b5-1 trading plan for the sale of **27,576 options** that expire on July 27, 2026[197](index=197&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's certificate of incorporation, by-laws, incentive plans, and officer certifications as required by the Sarbanes-Oxley Act

[Kinsale Capital Group Q2 2025 Earnings Report](index=1&type=section&id=Kinsale%20Capital%20Group%20Q2%202025%20Earnings%20Report) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Kinsale Capital Group reported record net income and net operating earnings for the second quarter of 2025, driven by disciplined underwriting and technology-enabled expense management **Q2 2025 Key Financial Metrics vs. Q2 2024** | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $134.1M | $92.6M | +44.8% | | Diluted EPS | $5.76 | $3.97 | +45.1% | | Net Operating Earnings | $111.4M | $87.4M | +27.5% | | Diluted Operating EPS | $4.78 | $3.75 | +27.5% | | Gross Written Premiums | $555.5M | $529.8M | +4.9% | | Net Investment Income | $46.5M | $35.8M | +29.6% | - The company's Chairman and CEO, Michael P. Kehoe, attributed the record results to the continued execution of their strategy focused on **disciplined underwriting** and **technology-enabled expense management**[3](index=3&type=chunk) - Net income for Q2 2025 included **$2.9 million** in after-tax catastrophe losses, slightly higher than the $2.7 million in Q2 2024[2](index=2&type=chunk) [Results of Operations](index=1&type=section&id=Results%20of%20Operations) The company's operational results showed growth in underwriting income and net investment income, with an improved combined ratio reflecting better loss and expense ratios [Underwriting Results](index=1&type=section&id=Underwriting%20Results) Underwriting income increased to $95.5 million with the combined ratio improving to 75.8%, benefiting from higher favorable development of prior year loss reserves - Gross written premiums increased by **4.9%** in Q2 2025, driven by strong submission flow but partially offset by a **16.8% decline** in the Commercial Property Division[4](index=4&type=chunk) **Underwriting Performance (Q2 2025 vs. Q2 2024)** | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Underwriting Income | $95.5M | $76.1M | | Combined Ratio | 75.8% | 77.7% | | Loss Ratio | 55.1% | 56.6% | | Expense Ratio | 20.7% | 21.1% | - Results for Q2 2025 included **$15.4 million** (3.9 points) of net favorable development of loss reserves from prior accident years, an increase from $9.5 million (2.8 points) in Q2 2024[7](index=7&type=chunk)[10](index=10&type=chunk) - For the first half of 2025, the loss ratio included **3.4 points** of net catastrophe losses, primarily from the Palisades Fire, compared to just 0.6 points in the first half of 2024[8](index=8&type=chunk) [Investment Results](index=3&type=section&id=Investment%20Results) Net investment income grew 29.6% in Q2 2025, driven by growth in the investment portfolio funded by strong operating cash flows **Net Investment Income Growth** | Period | 2025 | 2024 | Growth | | :--- | :--- | :--- | :--- | | Second Quarter | $46.5M | $35.8M | +29.6% | | First Half | $90.3M | $68.8M | +31.3% | - The increase in investment income was primarily driven by the growth of the investment portfolio, which is funded by **strong operating cash flows**[11](index=11&type=chunk) - The investment portfolio's total value reached **$4.6 billion** at June 30, 2025, maintaining a high credit quality ('AA-') and a weighted average duration of 3.1 years[11](index=11&type=chunk) [Other Financial Items](index=3&type=section&id=Other%20Financial%20Items) The effective tax rate increased, stockholders' equity grew to $1.7 billion, and the company repurchased $10.0 million of its common stock - The effective tax rate for the first six months of 2025 was **20.4%**, up from 17.3% in the same period of 2024, primarily due to a lower volume of stock option exercises[12](index=12&type=chunk)[13](index=13&type=chunk) **Stockholders' Equity and Book Value** | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Stockholders' Equity | $1.7B | $1.5B | | Book Value per Share | $73.93 | $63.75 | - During Q2 2025, the company repurchased 23,309 shares of common stock for a total cost of **$10.0 million**[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section provides definitions and reconciliations for non-GAAP measures, including Net Operating Earnings and Underwriting Income, to compare underlying business performance [Net Operating Earnings Reconciliation](index=4&type=section&id=Net%20Operating%20Earnings%20Reconciliation) This table reconciles GAAP Net Income to the non-GAAP measure of Net Operating Earnings by adjusting for after-tax investment-related gains and losses **Reconciliation of Net Income to Net Operating Earnings (Q2 2025, in thousands)** | Description | Amount | | :--- | :--- | | **Net Income** | **$134,121** | | Change in fair value of equity securities, after taxes | ($22,611) | | Net realized investment gains, after taxes | ($107) | | Change in allowance for credit losses, after taxes | ($4) | | **Net Operating Earnings** | **$111,399** | [Underwriting Income Reconciliation](index=6&type=section&id=Underwriting%20Income%20Reconciliation) This table reconciles GAAP Net Income to the non-GAAP measure of Underwriting Income to isolate core underwriting performance **Reconciliation of Net Income to Underwriting Income (Q2 2025, in thousands)** | Description | Amount | | :--- | :--- | | **Net Income** | **$134,121** | | Add: Income tax expense | $34,168 | | Less: Net investment income & gains | ($75,230) | | Add: Interest and other expenses/income (net) | $2,399 | | **Underwriting Income** | **$95,453** | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements, providing a detailed view of financial performance and position [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) The income statement details revenues and expenses for the six months ended June 30, 2025, showing total revenue growth and a net income of $223.3 million **Six Months Ended June 30 (in thousands)** | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $893,211 | $757,344 | | Total Expenses | $612,611 | $525,677 | | Income Before Income Taxes | $280,600 | $231,667 | | **Net Income** | **$223,348** | **$191,520** | | **Diluted EPS** | **$9.59** | **$8.21** | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in total assets to $5.56 billion, primarily driven by growth in total investments and stockholders' equity **Balance Sheet Summary (in thousands)** | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Investments | $4,481,315 | $3,954,681 | | **Total Assets** | **$5,556,526** | **$4,886,704** | | Total Liabilities | $3,833,953 | $3,403,143 | | **Total Stockholders' Equity** | **$1,722,573** | **$1,483,561** | [Supplemental Information](index=6&type=section&id=Supplemental%20Information) This section provides details for the upcoming investor conference call, a forward-looking statements disclaimer, and company contact information - A conference call to discuss the results is scheduled for **Friday, July 25, 2025, at 9:00 a.m. Eastern Time**[22](index=22&type=chunk) - The report includes forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially[23](index=23&type=chunk)[24](index=24&type=chunk)

Core Insights - Kinsale Capital Group, Inc. (KNSL) is expected to report quarterly earnings of $4.41 per share, reflecting a 17.6% increase year over year [1] - Analysts forecast revenues of $434.01 million, indicating a 12.9% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has been revised 0.1% lower in the last 30 days, showing a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions and have a strong correlation with short-term stock performance [3] Revenue Projections - Analysts predict 'Revenues- Net Earned Premiums' to reach $373.89 million, a 12.5% increase from the prior year [5] - 'Revenues- Net Investment Income' is expected to be $47.06 million, reflecting a 31.3% year-over-year change [5] - 'Revenues- Fee Income' is forecasted to reach $10.36 million, indicating a 15.3% increase year over year [5] Expense and Ratio Estimates - The consensus estimate for 'Expense Ratio' is 20.9%, slightly down from 21.1% in the same quarter last year [6] - Analysts estimate the 'Combined Ratio' to be 78.0%, compared to 77.7% a year ago [6] - The 'Loss Ratio' is projected to be 57.2%, up from 56.6% in the previous year [6] Stock Performance - Over the past month, Kinsale Capital Group shares have returned +0.9%, while the Zacks S&P 500 composite has increased by +5.4% [6] - KNSL currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

Core Insights - Kinsale Capital Group, Inc. (KNSL) is currently trading above its 50-day simple moving average, indicating a short-term bullish trend, with a share price of $480.18, down 9.7% from its 52-week high of $531.79 [1] - The company has gained 3.2% year-to-date, underperforming the Finance sector and the Zacks S&P 500 Composite, which grew by 9.2% and 6.5% respectively [3] - Kinsale Capital has a market capitalization of $11.19 billion, with an average trading volume of 0.2 million shares over the last three months [4] Performance and Valuation - Kinsale Capital has outperformed peers such as CNA Financial Corporation, American Financial Group, and Arch Capital Group, which have seen share price declines of 8.5%, 6.9%, and 4.3% respectively [4] - The company's shares are trading at a premium, with a price-to-book value of 7.07X compared to the industry average of 1.52X, indicating overvaluation [8] Growth Prospects - The Zacks Consensus Estimate projects a 10.6% year-over-year increase in earnings per share for 2025, with revenues expected to reach $1.75 billion, reflecting a 10.4% improvement [9] - For 2026, earnings per share and revenues are estimated to increase by 15.1% and 12% respectively from 2025 estimates [9] - Kinsale Capital has a Growth Score of B, indicating favorable growth prospects [10] Underwriting and Operational Efficiency - The company leverages its strength in the excess and surplus (E&S) market to achieve robust underwriting results, maintaining a combined ratio below 95% [7][17] - Kinsale Capital's proprietary technology enhances operational efficiency, lowers expenses, and supports scalable growth [18] Market Position and Challenges - The company is well-positioned to benefit from increased submission flow and enhanced pricing discipline due to ongoing market dislocation [16] - However, Kinsale Capital remains cautious about the impact of persistent inflation, which could affect insurer margins and pricing strategies [19] Strategic Focus - Kinsale Capital's strategy emphasizes disciplined underwriting, a focus on the E&S market, and the use of proprietary technology to drive growth and operational efficiency [20]

The market expects Kinsale Capital Group, Inc. (KNSL) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 24, might help the stock move higher if these key numbe ...

Company Performance - Kinsale Capital Group, Inc. (KNSL) closed at $473.13, reflecting a -1.31% change from the previous day, underperforming the S&P 500's gain of 0.48% [1] - Over the past month, KNSL shares gained 1.14%, lagging behind the Finance sector's 3.5% increase and the S&P 500's 5.13% rise [1] Earnings Forecast - The upcoming earnings report for Kinsale Capital Group is anticipated to show an EPS of $4.37, representing a 16.53% increase from the same quarter last year [2] - Quarterly revenue is projected at $432.2 million, up 12.39% year-over-year [2] Full Year Estimates - For the full year, earnings are expected to be $17.68 per share, with revenue projected at $1.75 billion, indicating increases of +10.09% and +10.27% respectively from the previous year [3] - Recent analyst estimate revisions suggest optimism regarding the company's business and profitability [3] Valuation Metrics - Kinsale Capital Group is currently trading at a Forward P/E ratio of 27.11, which is significantly higher than the industry average Forward P/E of 12, indicating a premium valuation [6] - The company has a PEG ratio of 1.78, compared to the industry average PEG ratio of 2.73, suggesting a more favorable growth outlook relative to its price [7] Industry Context - The Insurance - Property and Casualty industry, part of the Finance sector, holds a Zacks Industry Rank of 49, placing it in the top 20% of over 250 industries [8] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a strong industry performance potential [8]

Company Overview - Kinsale Capital Group, founded in 2009, focuses on the excess and surplus lines market in the United States[4] - The company's market capitalization was $96 billion as of September 30, 2023[4] - Kinsale's YTD combined ratio was 767% as of September 30, 2023[4] - The company's YTD annualized operating return on equity was 321% as of September 30, 2023[4] - Kinsale aims to expand its 1% market share[4] Underwriting Strategy - Kinsale focuses on small-to-medium sized, hard-to-place risks in the excess and surplus lines market[27, 28] - The company emphasizes individual risk underwriting and tailored coverage[31, 36] - Kinsale uses a technology-enabled, low-cost approach to manage expenses[32] - The company has underwriters specializing in various casualty, professional lines, specialty casualty, transportation, and property divisions[21] Market Position and Growth - Kinsale's underwriting performance, measured by the net loss and loss adjustment expense ratio, is compared against the P&C industry and surplus lines sector[13] - The company is focused on leveraging data for pricing, risk segmentation, and automation[170]