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]

Core Viewpoint - Kinsale Capital Group, Inc. (KNSL) has shown strong stock performance, with a recent increase of 5.4% to close at $466.26, following a period of decline, supported by solid trading volume and positive analyst ratings [1][2]. Group 1: Stock Performance - Kinsale Capital shares surged after Truist Securities reiterated its "Buy" rating and set a price target of $560, following positive meetings with management [2]. - The stock experienced a 3.7% loss over the past four weeks before the recent surge [1]. Group 2: Growth and Market Position - Kinsale Capital has strengthened its presence in the U.S. excess and surplus (E&S) market through consistent premium growth, healthy broker submissions, solid renewal activity, and disciplined underwriting [3]. - The company aims for long-term top-line growth of 10% to 20% [2]. Group 3: Financial Performance Expectations - Kinsale Capital is expected to report quarterly earnings of $4.66 per share, reflecting an 11% year-over-year increase, with revenues projected at $449.2 million, up 7.5% from the previous year [4]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in earnings expectations [6]. Group 4: Industry Context - Kinsale Capital Group is part of the Zacks Insurance - Property and Casualty industry, which includes other companies like Palomar (PLMR), which recently closed 3.8% higher [7].

Core Viewpoint - Kinsale Capital Group, Inc. (KNSL) is experiencing a short-term bearish trend as it trades below its 50-day simple moving average (SMA), indicating potential challenges ahead for the stock price [1] Price Performance - Kinsale Capital shares have declined by 10.7% year-to-date, underperforming the Finance sector's growth of 14.1% and the Zacks S&P 500 Composite's growth of 13.8% [2] - The company has a market capitalization of $9.7 billion, with an average trading volume of 0.2 million shares over the last three months [2] Valuation Metrics - Kinsale Capital's price-to-book value stands at 5.62X, significantly higher than the industry average of 1.55X, indicating that its shares are trading at a premium [5] Growth Projections - The Zacks Consensus Estimate projects a 14.1% year-over-year increase in Kinsale Capital's earnings per share for 2025, with revenues expected to reach $1.8 billion, reflecting a 13.4% increase [9] - Long-term earnings growth is estimated at 14.9%, surpassing the industry average of 7% [10] Analyst Sentiment - Recent analyst estimates for Kinsale Capital's earnings for 2025 and 2026 have increased by 0.1% and 0.3%, respectively, over the past 30 days [11] Return on Capital - Kinsale Capital's return on equity (ROE) for the trailing 12 months is 25.9%, significantly higher than the industry's 7.7%, indicating effective use of shareholders' funds [15] - The return on invested capital is 22.5%, compared to the industry average of 5.9%, showcasing the company's efficiency in generating income [15] Operational Strengths - Kinsale Capital has strengthened its position in the U.S. excess and surplus (E&S) market through consistent premium growth, disciplined underwriting, and a strong broker network [16][20] - The company has developed a digital platform that enhances underwriting efficiency and customer interactions, supporting its growth in key segments like transportation and high-value homeowners [19] Financial Position - Kinsale Capital maintains a solid balance sheet with a debt-to-capital ratio of 9.66%, well below the industry average of 16.11%, reflecting prudent financial management [21] - The times interest earned ratio stands at 56.03, far exceeding the industry average of 17.02, indicating strong capacity to meet debt obligations [22] Shareholder Value - Over the past five years, Kinsale Capital has increased its dividend five times, resulting in a total payout growth of 12.43%, with a current payout ratio of 4% [23] - The company has also approved a $100 million share buyback program, with $70 million remaining under the current authorization [23] Conclusion - Kinsale Capital's strong organic growth, disciplined underwriting, and solid financial position, along with consistent shareholder returns, highlight its resilience and long-term potential [24]

Core Thesis - Kinsale Capital Group, Inc. is positioned as a high-growth, capital-light insurance business with strong financial fundamentals and efficient capital allocation, making it an attractive investment opportunity [2][5]. Financial Performance - The company's total revenues have compounded at a 36% CAGR since 2020, with net income increasing from $88 million in 2020 to over $414 million in 2023, indicating disciplined execution and significant earnings growth [2]. - Operating income and free cash flow have consistently scaled, with free cash flow reaching approximately $952 million, significantly exceeding minimal capital expenditure requirements due to the capital-light model [2]. Profitability Metrics - Kinsale's insider ownership stands at 5.2%, which is below the 10% benchmark, but the company maintains robust profitability metrics with strong operating and net income margins, resulting in returns on invested capital exceeding 10% [3]. - The absence of goodwill on the balance sheet highlights the organic strength of Kinsale's business model [3]. Capital Management - Stock-based compensation has a modest effect on adjusted free cash flow, but this impact is mitigated by the company's substantial cash generation [4]. - Share repurchases have been ongoing since 2020, with $17 million executed last year, reflecting management's confidence in long-term prospects, although some investors suggest that funds could be better reinvested into growth [4]. Valuation Metrics - Valuation metrics appear favorable, with forward P/E trading below historical medians, suggesting potential undervaluation [5]. - The combination of strong free cash flow conversion, scalable profitability, and a clean balance sheet presents Kinsale as a business with resilient fundamentals and attractive risk/reward positioning for long-term investors [5]. Market Position - Kinsale has a niche focus in the E&S market, strong underwriting discipline, and an industry-leading combined ratio, contributing to its profitable growth [6]. - The stock price has appreciated approximately 4.8% since previous coverage, reinforcing the bullish thesis on the company's continued delivery of profitable growth [6].

Core Viewpoint - Kinsale Capital Group, Inc. (KNSL) has underperformed compared to its industry and broader market indices, with a year-to-date share price decline of 2.1% against a 7.5% growth in the S&P 500 Composite [1] Company Performance - Kinsale Capital has a market capitalization of $10.6 billion and an average trading volume of 0.2 million shares over the last three months [1] - The company has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 11.5% [10] - The Zacks Consensus Estimate for Kinsale Capital's 2025 earnings per share indicates a year-over-year increase of 14%, with revenues projected to reach $1.8 billion, reflecting a 13.4% improvement [6] Valuation Metrics - Kinsale Capital shares are trading at a price-to-book value of 7.07X, significantly higher than the industry average of 1.52X, indicating a premium valuation [4][9] - The average price target from analysts for KNSL is $499.11 per share, suggesting an 8.7% upside from the last closing price [11] Growth Projections - The expected long-term earnings growth for Kinsale Capital is pegged at 14.9%, outperforming the industry average of 7% [7] - Revenue growth has been robust, with a compound annual growth rate (CAGR) of 38% from 2019 to 2024, driven by premiums and investment income [9][15] Market Position and Strategy - Kinsale Capital has established a strong position in the U.S. excess and surplus market, benefiting from favorable pricing conditions and healthy broker submissions [15] - The company has maintained an underlying combined ratio below 95%, supported by disciplined underwriting practices [17] - Kinsale's proprietary digital platform enhances operational efficiency and cost management, contributing to sustained market share gains [19] Shareholder Value - Kinsale Capital has demonstrated a commitment to shareholder value creation, raising its dividend five times in the past five years, with a total payout growth of 12.43% during this period [21]