Core Insights - Kinsale Capital Group, Inc. reported a revenue of $412.12 million for the quarter ended December 2024, reflecting a year-over-year increase of 17.4% [1] - The earnings per share (EPS) for the quarter was $4.62, up from $3.87 in the same quarter last year, resulting in an EPS surprise of +6.45% against the consensus estimate of $4.34 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $418.32 million, showing a surprise of -1.48% [1] Financial Metrics - Expense Ratio was reported at 21.1%, higher than the estimated 20.4% by six analysts [4] - Combined Ratio stood at 73.4%, better than the estimated 76.3% by six analysts [4] - Loss Ratio was 52.3%, outperforming the average estimate of 55.9% from six analysts [4] - Net investment income was $41.86 million, slightly below the average estimate of $42.79 million, but showed a significant year-over-year increase of +37.8% [4] - Net Earned Premiums were reported at $359.74 million, compared to the average estimate of $362.66 million, marking a year-over-year increase of +21.2% [4] - Fee Income reached $8.55 million, exceeding the estimated $8.33 million, with a year-over-year change of +22.1% [4] - Other income was reported at $0.35 million, surpassing the average estimate of $0.15 million, reflecting a year-over-year change of +2.7% [4] Stock Performance - Kinsale Capital Group's shares have returned +9.3% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [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 quarterly earnings of $4.62 per share, exceeding the Zacks Consensus Estimate of $4.34 per share, and showing an increase from $3.87 per share a year ago, indicating a strong performance in the latest quarter [1][2]. Financial Performance - The company achieved revenues of $412.12 million for the quarter ended December 2024, which was 1.48% below the Zacks Consensus Estimate, but up from $351.17 million in the same quarter last year [2]. - Over the last four quarters, Kinsale Capital has surpassed consensus EPS estimates four times and topped revenue estimates three times [2]. Stock Performance - Kinsale Capital shares have increased approximately 2.5% since the beginning of the year, compared to a 2.9% gain in the S&P 500 [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.97, with expected revenues of $428.67 million, and for the current fiscal year, the EPS estimate is $18.15 on revenues of $1.83 billion [7]. - The trend of estimate revisions for Kinsale Capital is mixed, which may change following the recent earnings report [6]. Industry Context - The Insurance - Property and Casualty industry, to which Kinsale Capital belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Kinsale Capital's stock performance [5].

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]

Core Insights - Kinsale Capital Group's fourth-quarter results showed mixed performance, with earnings per share exceeding expectations while revenue fell short [3][6]. - The company's gross written premiums increased by 12% year over year, indicating growth in its insurance business [3][4]. Financial Metrics - Revenue for Q4 2023 was $351.17 million, compared to $412.12 million in Q4 2024, reflecting a 17% increase but missing analyst expectations [2]. - Earnings per share rose to $4.43 in Q4 2023, a 6% increase from the previous year, beating expectations [2]. - Gross written premiums were $395.2 million in Q4 2023, up from $443.3 million in Q4 2024, marking a 12% increase [2]. - The combined ratio for Kinsale was 73.4% in Q4 2024, slightly worse than the 72.1% in the previous year, attributed to higher catastrophe losses [2][4]. Investment Performance - Kinsale's net investment income saw a significant increase of about 38% year over year, driven by more capital available for investment and higher yields [5]. Market Reaction - Following the earnings report, Kinsale's stock experienced a mild decline of approximately 3.5% [6]. - The trading volume post-earnings was low, with only about 5,000 shares changing hands shortly after the report [7]. Future Considerations - Underwriting profitability will be crucial to monitor throughout 2025, especially with uncertainties surrounding hurricane season [8]. - The growth rate of gross written premiums and investment income will also be key areas to watch, particularly if interest rates decline [8].

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 ...

Core Viewpoint - The market anticipates Kinsale Capital Group, Inc. (KNSL) to report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended December 2024 [1] Group 1: Earnings Expectations - The consensus EPS estimate for Kinsale Capital Group is $4.34 per share, reflecting a year-over-year increase of +12.1% [3] - Expected revenues for the quarter are $418.32 million, which is a 19.1% increase from the same quarter last year [3] - The stock may experience upward movement if actual results exceed these expectations, while a miss could lead to a decline [2] Group 2: Estimate Revisions - The consensus EPS estimate has been revised 1.07% lower in the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +1% suggests that analysts have recently become more optimistic about the company's earnings prospects [10][11] Group 3: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [7][8] - Kinsale Capital Group has a history of beating consensus EPS estimates, having surpassed expectations in the last four quarters [13] Group 4: Industry Context - First American Financial (FAF), another player in the insurance industry, is expected to report an EPS of $1.07 for the same quarter, marking a year-over-year change of +55.1% [17] - FAF's revenues are projected to be $1.64 billion, up 14.7% from the previous year, with a positive Earnings ESP of 4.97% suggesting a likely earnings beat [18]

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 ...