Kinsale Capital (KNSL) - 2024 Q4 - Annual Results

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$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$395.2 million in Q4 2023; for the full year, gross written premiums were $1.9 billion, up 19.2$1.6 billion in 2023[4] - Net earned premiums for the year ended December 31, 2024, were $1,350,470,000, up 25.9$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$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$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$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$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$1,086,832,000 in 2023[25] - Reserves for unpaid losses and loss adjustment expenses rose to $2,285,668,000, a 35$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]