Financial Data and Key Metrics Changes - Kinsale's operating earnings per share increased by 24% year-over-year, reaching $5.21 per share for the third quarter of 2025 compared to $4.20 in the same quarter of 2024 [5][10] - Gross written premium grew by 8.4% over the third quarter of 2024, while net earned premium increased by 17.8% due to higher retention levels upon renewal of the reinsurance program [6][8] - The combined ratio for the quarter was 74.9%, with net favorable prior year loss reserve development contributing 3.7 points [8] - Book value per share increased by 25.8% since year-end 2024, and float grew to $3 billion from $2.5 billion [6][9] Business Line Data and Key Metrics Changes - The commercial property division premium dropped by 8% in the third quarter compared to a 17% drop in the second quarter [6] - Excluding the commercial property division, the overall growth rate was 12.3% [6] - Submission growth was 6% for the quarter, down from 9% in the first quarter, primarily driven by the commercial property division [14] Market Data and Key Metrics Changes - E&S market conditions were steady and competitive, with growth rates varying by market segment [6] - The overall pricing trends in the commercial property market showed a 0.4% decrease, but an inflection point was noted where the rate of decline is abating [15][36] Company Strategy and Development Direction - Kinsale's disciplined underwriting and low-cost business model provide a competitive advantage, allowing the company to deliver competitive policy terms without compromising margins [6][7] - The company is focused on maintaining efficiency and leveraging technology to enhance productivity and reduce costs [24][83] - Kinsale is optimistic about growth opportunities across various segments, including transportation, agribusiness, and high-value homeowners [19][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting a strong team and a favorable competitive position [12] - The E&S market remains competitive, but the company anticipates stabilization in commercial property rates moving forward [15][36] - Management noted that while competition has increased, Kinsale's cost advantage and control over underwriting processes position it well for continued growth [62] Other Important Information - Management changes were announced, including Brian Haney's election to the Board of Directors and his transition to a Senior Advisor role [4] - The company is actively enhancing its technology capabilities, including the implementation of AI tools to drive automation [22][24] Q&A Session Summary Question: Future opportunities outside of commercial property - Management sees opportunities across the entire book, particularly in transportation, agribusiness, and high-value homeowners [19][20] Question: Technology innovations and implementation - Kinsale has made technology a core competency, with ongoing enhancements to its enterprise system and the use of AI tools [22][24] Question: Changes in assumptions for construction liability - No specific changes were noted, but management conducts quarterly reviews of loss reserves [27] Question: Growth opportunities in excess casualty segment - Rates are holding strong, with good opportunities for growth in the segment [29] Question: State E&S data and growth perceptions - Management advised caution in interpreting state data and emphasized the importance of looking at trends over time [47][48] Question: Changes in underwriting expenses with slowed premium growth - Management expects gradual declines in underwriting expenses through productivity gains [83] Question: Profit-sharing commissions for broker partners - Kinsale does not plan to change its compensation model, focusing on maintaining control over underwriting [38] Question: Rate stabilization in property market - Management noted that rates are stabilizing, with expectations for normalization in the near future [66][72]

Financial Data and Key Metrics Changes - Kinsale's operating earnings per share increased by 24% year-over-year, reaching $5.21 per share compared to $4.20 in Q3 2024 [4][10] - Gross written premium grew by 8.4% over Q3 2024, while net earned premium increased by 17.8% [5][8] - The combined ratio for the quarter was 74.9%, benefiting from 3.7 points from net favorable prior year loss reserve development [7][8] - Book value per share increased by 25.8% since year-end 2024, and float grew to $3 billion from $2.5 billion [5][9] Business Line Data and Key Metrics Changes - The commercial property division saw a premium drop of 8% in Q3, an improvement from a 17% drop in Q2 [5] - Excluding the commercial property division, the overall growth rate was 12.3% [5] - Submission growth was 6% for the quarter, down from 9% in the first quarter, primarily driven by the commercial property division [13] Market Data and Key Metrics Changes - E&S market conditions were steady and competitive, with varying growth rates across segments [5][6] - The pricing trends in the commercial property market showed a decline, but management noted an inflection point where the rate of decline is stabilizing [14][62] Company Strategy and Development Direction - Kinsale's disciplined underwriting and low-cost business model provide a competitive advantage, allowing for competitive policy terms without compromising margins [5][6] - The company is focusing on technology as a core competency, enhancing its enterprise system and utilizing AI tools to drive automation [22][23] - Management expressed confidence in growth opportunities across various segments, including transportation, agribusiness, and high-value homeowners [19][53] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth prospects, citing a durable competitive advantage and strong financial performance [14][36] - The company is cautious about releasing reserves and maintains a conservative approach to loss reserving [26][67] - Management acknowledged increased competition in the E&S market but believes their efficiency will allow them to capture market share from higher-cost competitors [6][61] Other Important Information - Management announced significant changes, including Brian Haney's election to the Board and his transition to Senior Advisor [3][4] - The company is generating excess capital, leading to increased share repurchases [75] Q&A Session Summary Question: Future opportunities outside of commercial property - Management sees opportunities across the entire book, particularly in transportation, agribusiness, and high-value homeowners [19][20] Question: Technology innovations and implementation - Kinsale has made technology a core competency, focusing on enhancing their enterprise system and utilizing AI tools [22][23] Question: Changes in assumptions for construction liability - Management conducts quarterly reviews of loss reserves, with no specific changes noted for the construction segment [25][26] Question: Growth opportunities in excess casualty - Rates in excess casualty remain strong, with good growth opportunities [28] Question: State E&S data and growth perceptions - Management advised against reading too much into state-specific growth data, suggesting a broader view over time [46][47] Question: Impact of alternative capital on property market - Management acknowledged the potential for alternative capital to enter the market but emphasized their focus on maintaining competitive pricing [84]

Financial Data and Key Metrics Changes - Kinsale's operating earnings per share increased by 24% in Q3 2025 compared to the previous year [6] - Gross written premium grew by 8.4% year-over-year, while net earned premium increased by 17.8% [10] - The combined ratio for the quarter was 74.9%, with a nine-month operating return on equity of 25.4% [6][10] - Book value per share rose by 25.8% since the end of 2024, and float increased by 20% [6] Business Line Data and Key Metrics Changes - The commercial property division saw a premium drop of 8% in Q3 2025, a significant improvement from a 17% drop in Q2 2025 [7] - Excluding the commercial property division, the overall growth rate was 12.3% [7] - The expense ratio for Q3 2025 was 21%, up from 19.6% the previous year, attributed to lower ceding commissions [11] Market Data and Key Metrics Changes - The E&S market conditions remained steady in Q3 2025, with competitive growth rates varying by segment [6] - Submission growth was 6% for the quarter, down from 9% in the first quarter, primarily driven by the commercial property division [16] Company Strategy and Development Direction - Kinsale's disciplined underwriting and low-cost business model provide a competitive advantage in a cost-focused market [7] - The company is focusing on growth in newer areas such as transportation and agribusiness, while also emphasizing high-value homeowners and personal lines [23][24] - The management expressed confidence in maintaining a durable competitive advantage and gradually taking market share from higher expense competitors [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the E&S market remains competitive, with some signs of stabilization in commercial property rates [15][17] - The company is optimistic about growth prospects, despite a deceleration in premium growth [17][45] - Management emphasized the importance of maintaining efficiency and controlling underwriting processes to protect margins [95] Other Important Information - Management announced significant changes, including Brian Haney's election to the Board and his transition to Senior Advisor [4] - The company is actively enhancing its technology capabilities, including the implementation of AI tools to drive automation [28][30] Q&A Session Summary Question: Future opportunities outside of commercial property - Management sees opportunities across various segments, particularly in transportation, agribusiness, and casualty lines [23][24] Question: Technology innovations and implementation - The company has made technology a core competency and is currently working on a complete rewrite of its enterprise system to enhance efficiency [27][30] Question: Changes in construction liability assumptions - Management indicated that there were no specific changes affecting the current year loss pick, but they conduct regular reviews of loss reserves [33] Question: Growth opportunities in excess casualty - There are still good opportunities in excess casualty, with rates holding strong in the segments where Kinsale participates [36] Question: Casualty market state and pricing trends - The casualty market remains competitive, but certain segments like excess casualty and allied health are still strong for growth [42] Question: Impact of alternative capital on property market - Management acknowledged the potential for alternative capital to enter the market but emphasized the current dynamics of the third quarter [106] Question: Underwriting expenses management - The company aims to maintain efficiency and expects gradual declines in underwriting expenses over time [93] Question: Reinsurance retention outlook - Management indicated that retention levels could change based on the mix of business but did not foresee immediate changes [99][100]

Core Insights - Kinsale Capital Group, Inc. reported a net income of $141.6 million for Q3 2025, marking a 24% increase from $114.2 million in Q3 2024 [1] - The company experienced a rise in net operating earnings to $121.2 million, up from $97.9 million in the same quarter last year [2] - Gross written premiums (GWP) increased by 8.4% to $486.3 million compared to $448.6 million in Q3 2024 [2] Financial Performance - GWP in the Commercial Property Division, Kinsale's largest segment, declined by 7.9% in Q3 2025 due to lower rates and increased competition [3] - Excluding the Commercial Property Division, GWP grew by 12.3%, driven by strong submission flow across most divisions [3] - Net written premiums rose by 15.8% to $405.1 million from $349.9 million [3] Underwriting and Loss Ratios - Underwriting income for the quarter was $105.7 million, an increase from $86.9 million, resulting in a combined ratio of 74.9%, down from 75.7% in Q3 2024 [4] - Loss and expense ratios were 53.9% and 21.0%, respectively, in Q3 2025, compared to 56.1% and 19.6% in Q3 2024 [4] Investment Income - Net investment income increased by 25.1% to $49.6 million from $39.6 million, driven by growth in Kinsale's investment portfolio [5] Management Commentary - The Chairman and CEO, Michael P. Kehoe, expressed confidence in the company's disciplined underwriting and technology-enabled expense management, highlighting the ability to deliver long-term value to shareholders [6]

Core Insights - Kinsale Capital Group, Inc. (KNSL) reported quarterly earnings of $5.21 per share, exceeding the Zacks Consensus Estimate of $4.79 per share, and showing an increase from $4.2 per share a year ago, resulting in an earnings surprise of +8.77% [1] - The company achieved revenues of $497.51 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.20% and up from $418.06 million year-over-year [2] - Kinsale Capital Group has consistently outperformed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.26, with expected revenues of $457.7 million, and for the current fiscal year, the EPS estimate is $18.44 on revenues of $1.81 billion [7] - The estimate revisions trend for Kinsale Capital Group was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Insurance - Property and Casualty industry, to which Kinsale Capital Group belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Premiums and Underwriting - Gross written premiums increased by $37.6 million, or 8.4%, to $486.3 million for the three months ended September 30, 2025, compared to $448.6 million for the same period in 2024[116] - Net written premiums rose by $55.1 million, or 15.8%, to $405.1 million for the three months ended September 30, 2025, from $349.9 million for the same period in 2024[121] - Net earned premiums increased by $62.2 million, or 17.8%, to $410.9 million for the three months ended September 30, 2025, compared to $348.8 million for the same period in 2024[116] - Underwriting income was $105.7 million for the three months ended September 30, 2025, an increase of 21.7% from $86.9 million for the same period in 2024[119] - The combined ratio improved to 74.9% for the three months ended September 30, 2025, compared to 75.7% for the same period in 2024, indicating an underwriting profit[119] - Underwriting income increased by 17.8% to $268.6 million for the nine months ended September 30, 2025, compared to $228.0 million in 2024[135] Investment Income - Net investment income increased by $9.96 million, or 25.1%, to $49.6 million for the three months ended September 30, 2025, compared to $39.6 million for the same period in 2024[116] - Net investment income rose by 25.1% to $49.6 million for the three months ended September 30, 2025, up from $39.6 million in 2024, driven by growth in the investment portfolio[127] - Net investment income rose by 29.0% to $139.9 million for the nine months ended September 30, 2025, from $108.4 million in 2024, driven by growth in the investment portfolio[143] Losses and Ratios - Losses and loss adjustment expenses increased by $26.9 million, or 13.4%, to $227.2 million for the three months ended September 30, 2025, compared to $200.2 million for the same period in 2024[116] - The loss ratio decreased to 53.9% for the three months ended September 30, 2025, from 56.1% in the same period of 2024, primarily due to lower catastrophe losses and favorable development of loss reserves[123] - The loss ratio for the nine months ended September 30, 2025, was 56.9%, a decrease from 57.1% in the same period of 2024, primarily due to higher net favorable development of prior-year loss reserves[139] Net Income - Net income for the three months ended September 30, 2025, was $141.6 million, an increase of 24.0% from $114.2 million for the same period in 2024[118] - Net income for the nine months ended September 30, 2025, was $365.0 million, a 19.4% increase from $305.7 million in the same period of 2024[134] - Net income for the three months ended September 30, 2025, was $141,646 thousand, a 23.9% increase compared to $114,229 thousand for the same period in 2024[181] Retention and Fees - The net retention ratio improved to 83.3% for the three months ended September 30, 2025, compared to 78.0% for the same period in 2024[121] - Fee income increased by $1.8 million, or 21.3%, to $10.3 million for the three months ended September 30, 2025, compared to $8.5 million for the same period in 2024[116] - The net retention ratio improved to 81.6% for the nine months ended September 30, 2025, compared to 79.3% for the same period last year[137] Tax and Equity - The effective tax rate was 20.8% for the three months ended September 30, 2025, slightly lower than 20.9% for the same period in 2024[130] - The effective tax rate increased to 20.6% for the nine months ended September 30, 2025, compared to 18.7% in 2024, primarily due to a lower volume of stock option exercises[147] - The annualized return on equity was 29.1% for the nine months ended September 30, 2025, down from 32.3% in 2024, attributed to higher average stockholders' equity[148] - Total stockholders' equity increased to $1.9 billion as of September 30, 2025, from $1.5 billion at December 31, 2024[173] Cash Flow and Investments - Cash provided by operating activities was approximately $802.3 million for the nine months ended September 30, 2025, an increase from $763.3 million in 2024, driven by higher premium volume[160] - Net cash used in investing activities for the nine months ended September 30, 2025, was $702.9 million, a decrease from $762.1 million in the same period of 2024[161] - Purchases of fixed-maturity securities in the first nine months of 2025 totaled $1.8 billion, compared to $1.3 billion in the first nine months of 2024[162] - Proceeds from sales of fixed-maturity securities in the first nine months of 2025 were $677.6 million, up from $274.2 million in the same period of 2024[162] Financial Strength and Ratings - Kinsale Insurance Company holds a financial strength rating of "A" (Excellent) from A.M. Best, indicating a strong ability to meet obligations to policyholders[171] - The credit quality of fixed-maturity securities showed that 30.5% were rated AAA, up from 29.2% in the previous year, while AA-rated securities increased to 25.6% from 17.5%[177]

Financial Performance - Net income for Q3 2025 was $141.6 million, or $6.09 per diluted share, up from $114.2 million, or $4.90 per diluted share in Q3 2024, representing a 24.3% increase in diluted earnings per share [2][6]. - Net operating earnings for Q3 2025 were $121.2 million, or $5.21 per diluted share, compared to $97.9 million, or $4.20 per diluted share in Q3 2024, marking a 24.0% increase in diluted operating earnings per share [3][6]. - Net income for Q3 2025 was $141,646,000, an increase of 23.9% compared to $114,229,000 in Q3 2024 [17]. - Diluted operating earnings per share for Q3 2025 were $5.21, up 24.0% from $4.20 in Q3 2024 [17]. - Total revenues for Q3 2025 amounted to $497,505,000, a rise of 19.0% from $418,058,000 in Q3 2024 [26]. - Underwriting income for Q3 2025 was $105,672,000, an increase of 21.7% from $86,862,000 in Q3 2024 [20]. - The company reported a total comprehensive income of $161,777,000 for Q3 2025, compared to $177,693,000 in Q3 2024 [26]. Premiums and Underwriting - Gross written premiums increased by 8.4% to $486.3 million in Q3 2025 compared to $448.6 million in Q3 2024, and by 6.9% to $1.5 billion for the first nine months of 2025 compared to $1.4 billion in the same period of 2024 [4][9]. - Net written premiums for Q3 2025 were $405,060,000, compared to $349,937,000 in Q3 2024, reflecting a growth of 15.7% [26]. - Underwriting income for Q3 2025 was $105.7 million with a combined ratio of 74.9%, improving from $86.9 million and a combined ratio of 75.7% in Q3 2024 [5][9]. Investment Income - Net investment income rose by 25.1% to $49.6 million in Q3 2025, compared to $39.6 million in Q3 2024, and increased by 29.0% to $139.9 million for the first nine months of 2025 compared to $108.4 million in the same period of 2024 [11]. Balance Sheet and Equity - Stockholders' equity increased to $1.9 billion at September 30, 2025, up from $1.5 billion at December 31, 2024, with book value per share rising to $80.19 from $63.75 [14]. - Total assets increased to $5,833,305,000 from $4,886,704,000, representing a growth of 19.4% [28]. - Total investments rose to $4,768,338,000, up from $3,954,681,000, marking a 20.5% increase [28]. - Stockholders' equity grew to $1,865,217,000, up from $1,483,561,000, indicating a 25.7% increase [28]. - Cash and cash equivalents increased to $170,162,000 from $113,213,000, a growth of 50.3% [28]. - Total liabilities increased to $3,968,088,000 from $3,403,143,000, representing an increase of 16.6% [28]. Ratios and Returns - The loss ratio for Q3 2025 was 53.9%, down from 56.1% in Q3 2024, while the expense ratio increased slightly to 21.0% from 19.6% [9][10]. - The annualized operating return on equity was 25.4% for the first nine months of 2025, a decrease from 28.2% in the same period of 2024, primarily due to higher average stockholders' equity [14]. - The annualized return on equity for Q3 2025 was 31.6%, slightly down from 33.9% in Q3 2024 [17]. Shareholder Actions - During Q3 2025, the company repurchased 45,627 shares at an average price of $438.33 per share, totaling $20.0 million [15]. Taxation - The effective tax rate for the first nine months of 2025 was 20.6%, up from 18.7% in the same period of 2024, primarily due to a lower volume of stock option exercises [13]. Future Outlook - The company plans to hold a conference call on October 24, 2025, to discuss the financial results and future outlook [21].

Group 1 - Insurance stocks have been significant beneficiaries during the inflationary cycle from 2021 to 2023, with the SPDR S&P Insurance ETF (KIE) experiencing a rally [1] - However, the rally of the SPDR S&P Insurance ETF has recently stalled, indicating a potential shift in market dynamics [1] - Shares of Berkshire Hathaway (BRKB) have notably lagged behind other insurance stocks, suggesting a divergence in performance within the sector [1]

In the latest trading session, Kinsale Capital Group, Inc. (KNSL) closed at $463.18, marking a -2.22% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.4%. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.66%. Shares of the company have appreciated by 10.6% over the course of the past month, outperforming the Finance sector's loss of 1.05%, and the S&P 500's gain of 1.02%.Analysts and investors alike will be k ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Kinsale Capital Group, Inc. (KNSL) is currently recommended as a cutting-edge growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - Kinsale Capital Group has a historical EPS growth rate of 48.5%, with projected EPS growth of 14.2% for the current year, surpassing the industry average of 11.3% [5][4] Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 29.2%, significantly higher than the industry average of 14.3% [6] - Over the past 3-5 years, Kinsale's annualized cash flow growth rate has been 47.8%, compared to the industry average of 11.5% [7] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for Kinsale Capital Group have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [9][10] - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, further validating the company's growth potential [8]