Core Insights - Kinsale Capital Group reported strong fourth-quarter 2024 earnings, surpassing both EPS and revenue estimates, driven by strategic focus and technology investments [2][6] Financial Performance - Adjusted EPS for Q4 2024 was $4.62, exceeding the expected $4.34, and showing a year-over-year increase of 19.4% from $3.87 [3] - Net earned premiums reached $359.7 million, above projections of $355 million, reflecting a 21.2% increase from $296.8 million in Q4 2023 [3] - Net investment income grew to $41.9 million, a 38% increase from $30.4 million in the previous year [3] - Gross written premiums rose to $443.3 million, marking a 12.2% increase from $395.2 million [3] Strategic Focus - Kinsale operates in the excess and surplus (E&S) lines insurance market, which offers higher margins and fewer regulatory constraints, allowing the company to address underserved areas with tailored solutions [4] - The company emphasizes technological enhancements to improve operational efficiency and maintain competitive expense ratios [4][11] - Kinsale's disciplined underwriting and investment in innovative technology contribute to a robust combined ratio of 73.4% for Q4, indicating strong underwriting efficiency [5][7] Growth Drivers - The company's gross written premiums increased by 19.2% year-over-year to $1.9 billion, driven by its exclusive focus on the E&S market [5] - Kinsale's effective claims management practices have helped mitigate the impacts of natural disasters, maintaining reserve accuracy and enhancing risk management [7][9] Capital Management - During the quarter, Kinsale repurchased $100 million of its stock, reflecting confidence in its financial stability and part of a broader capital management strategy [8] Future Outlook - Management remains optimistic about leveraging strengths in underwriting and technology investments, although no specific forward guidance was provided [10][11] - The company will continue to focus on technological advancements to enhance efficiency and underwriting precision while controlling operational costs [11]

Here's our initial take on Kinsale Capital Group's (KNSL 2.19%) fourth-quarter financial report.Key MetricsMetricQ4 2023Q4 2024Changevs. ExpectationsRevenue$351.17 million$412.12 million17%MissedEarnings per share$4.43$4.686%BeatGross written premiums$395.2 million$443.3 million12%n/aCombined ratio72.1%73.4%130 bpsn/aStrong growth with no big surprisesKinsale's fourth-quarter results were somewhat mixed. While the company's bottom-line earnings were better than expected, revenue failed to meet analyst forec ...

Financial Performance - Net income for Q4 2024 was $109.1 million, or $4.68 per diluted share, up from $103.4 million, or $4.43 per diluted share in Q4 2023, representing a 5.6% increase[1] - Full year net income for 2024 reached $414.8 million, or $17.78 per diluted share, compared to $308.1 million, or $13.22 per diluted share in 2023, marking a 34.5% increase[1] - Net operating earnings for the year ended December 31, 2024, were $374.8 million, compared to $291.4 million in 2023, reflecting a year-over-year increase of 28.5%[15] - Diluted operating earnings per share for the year ended December 31, 2024, were $16.06, up from $12.50 in 2023, representing a 28.5% increase[15] - Total revenues for Q4 2024 were $412,123,000, a 17.3% increase compared to $351,171,000 in Q4 2023[23] - The company reported a total comprehensive income of $412,254,000 for the year ended December 31, 2024, compared to $348,394,000 in 2023, reflecting a 18.3% increase[23] Premiums and Underwriting - Gross written premiums for Q4 2024 were $443.3 million, a 12.2% increase from $395.2 million in Q4 2023; for the full year, gross written premiums were $1.9 billion, up 19.2% from $1.6 billion in 2023[4] - Net earned premiums for the year ended December 31, 2024, were $1,350,470,000, up 25.9% from $1,072,537,000 in 2023[23] - Underwriting income for the year ended December 31, 2024, was $325.9 million, compared to $270.4 million in 2023, indicating a 20.5% increase[17] Investment Performance - Net investment income increased by 37.8% to $41.9 million in Q4 2024, and by 46.9% to $150.3 million for the full year 2024 compared to 2023[8] - The company's investment portfolio had a gross investment return of 4.4% for the year ended December 31, 2024, compared to 4.0% in 2023[8] - Net investment income for Q4 2024 was $41,863,000, a 37.8% increase from $30,382,000 in Q4 2023[23] Cash Flow and Assets - Net operating cash flows for 2024 were $976.3 million, an increase of 13.5% from $859.8 million in 2023[8] - Cash and invested assets totaled $4.1 billion at December 31, 2024, up from $3.1 billion at December 31, 2023[8] - Total assets increased to $4,886,704,000 in 2024, up 29.5% from $3,772,974,000 in 2023[25] Equity and Reserves - Stockholders' equity increased to $1.5 billion as of December 31, 2024, up from $1.1 billion a year earlier, with book value per share rising to $63.75 from $46.88[12] - Stockholders' equity increased to $1,483,561,000 in 2024, up 36.5% from $1,086,832,000 in 2023[25] - Reserves for unpaid losses and loss adjustment expenses rose to $2,285,668,000, a 35% increase from $1,692,875,000 in 2023[25] Ratios and Tax - The combined ratio for Q4 2024 was 73.4%, slightly up from 72.1% in Q4 2023; for the full year, the combined ratio was 76.4%, compared to 75.4% in 2023[5] - Operating return on equity was 29.2% for the year ended December 31, 2024, compared to 33.6% for the previous year[6] - The operating return on equity for the full year of 2024 was 29.2%, down from 31.8% in 2023, primarily due to higher average stockholders' equity[12] - The effective tax rate for the year ended December 31, 2024 was 19.4%, lower than the federal statutory rate due to tax benefits from stock-based compensation and tax-exempt investment income[10] - The effective tax rate used for adjustments to reconcile net income to net operating earnings was 21%[15] Future Outlook - The company estimates pre-tax catastrophe losses of approximately $25 million due to wildfires in Southern California, expected to impact Q1 2025 results[11] - Forward-looking statements indicate potential risks including inadequate loss reserves and adverse market conditions that could impact future performance[19] - The company plans to hold a conference call on February 14, 2025, to discuss the financial results and outlook[18] Share Repurchase - The company repurchased 22,626 shares at an average price of $441.95 per share for a total cost of $10 million during Q4 2024[13]

Kinsale Capital (KNSL) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2024 results on Feb. 13, after the closing bell.See the Zacks Earnings Calendar to stay ahead of market-making news.The Zacks Consensus Estimate for KNSL’s fourth-quarter revenues is pegged at $418.3 billion, indicating 19.1% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $4.34 per share. The Zacks Consensus Estimate for KNSL’s fourth-quarter ear ...

Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the pur ...

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 December 2024. 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 stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expec ...

In the latest trading session, Kinsale Capital Group, Inc. (KNSL) closed at $442.10, marking a -0.49% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.92%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 2.03%.The the stock of company has fallen by 4.57% in the past month, lagging the Finance sector's gain of 4.35% and the S&P 500's gain of 0.81%.The investment community will be closely monitoring the performance of Kinsale Capital Group, Inc. i ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Kinsale Capital Group, Inc. (KNSL) , which belongs to the Zacks Insurance - Property and Casualty industry, could be a great candidate to consider.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 10.02%.For the m ...

Kinsale Capital (KNSL) has been trading below its 50-day simple moving average (SMA), signaling a short-term bearish trend. As of Jan. 17, 2025, its share price was $436.34, down 20.4% from its 52-week high of $548.47The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or downtrend. With a market capitalization of $10.2 billion, Kinsale is set to grow on the excess and surplus lin ...

Kinsale Capital Group, Inc. (KNSL) has been beaten down lately with too much selling pressure. While the stock has lost 9% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum ...