Kinsale Capital (US:KNSL)2024-10-24 20:11PART I. FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements This section presents unaudited condensed consolidated financial statements, covering balance sheets, income, equity, cash flows, and detailed notes Consolidated Balance Sheets This section provides a comparative overview of the Company's financial position at September 30, 2024, and December 31, 2023 Consolidated Balance Sheet Highlights (September 30, 2024 vs. December 31, 2023) | Metric | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | Change (in thousands) | % Change | | :-------------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | :--------- | | Total assets | $4,732,243 | $3,772,974 | $959,269 | 25.4% | | Total liabilities | $3,297,294 | $2,686,142 | $611,152 | 22.8% | | Total stockholders' equity | $1,434,949 | $1,086,832 | $348,117 | 32.0% | | Reserves for unpaid losses & LAE | $2,160,763 | $1,692,875 | $467,888 | 27.6% | | Unearned premiums | $844,701 | $701,351 | $143,350 | 20.4% | | Total investments | $3,847,709 | $2,966,952 | $880,757 | 29.7% | Consolidated Statements of Income and Comprehensive Income This section details the Company's financial performance for the three and nine months ended September 30, 2024 and 2023 Consolidated Statements of Income and Comprehensive Income Highlights (Three Months Ended Sep 30) | Metric | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change | | :-------------------------------------- | :------------------ | :------------------ | :-------------------- | :--------- | | Gross written premiums | $448,646 | $377,789 | $70,857 | 18.8% | | Net earned premiums | $348,752 | $281,502 | $67,250 | 23.9% | | Net investment income | $39,644 | $27,086 | $12,558 | 46.4% | | Change in fair value of equity securities | $20,659 | $(5,533) | $26,192 | NM | | Total revenues | $418,058 | $314,367 | $103,691 | 33.0% | | Losses and loss adjustment expenses | $200,240 | $155,552 | $44,688 | 28.7% | | Total expenses | $273,660 | $218,874 | $54,786 | 25.0% | | Net income | $114,229 | $76,115 | $38,114 | 50.1% | | Basic EPS | $4.93 | $3.30 | $1.63 | 49.4% | | Diluted EPS | $4.90 | $3.26 | $1.64 | 50.3% | Consolidated Statements of Income and Comprehensive Income Highlights (Nine Months Ended Sep 30) | Metric | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change | | :-------------------------------------- | :------------------ | :------------------ | :-------------------- | :--------- | | Gross written premiums | $1,427,060 | $1,173,599 | $253,461 | 21.6% | | Net earned premiums | $990,731 | $775,706 | $215,025 | 27.7% | | Net investment income | $108,424 | $71,953 | $36,471 | 50.7% | | Change in fair value of equity securities | $41,871 | $3,796 | $38,075 | NM | | Total revenues | $1,175,402 | $873,278 | $302,124 | 34.6% | | Losses and loss adjustment expenses | $580,351 | $441,628 | $138,723 | 31.4% | | Total expenses | $799,337 | $619,282 | $180,055 | 29.1% | | Net income | $305,749 | $204,706 | $101,043 | 49.4% | | Basic EPS | $13.21 | $8.89 | $4.32 | 48.6% | | Diluted EPS | $13.10 | $8.79 | $4.31 | 49.0% | Consolidated Statements of Changes in Stockholders' Equity This section outlines the changes in stockholders' equity for each quarter within the nine months ended September 30, 2024 and 2023 Stockholders' Equity Changes (Nine Months Ended Sep 30, 2024) | Item | Balance at Dec 31, 2023 (in thousands) | Q1 2024 Activity (in thousands) | Q2 2024 Activity (in thousands) | Q3 2024 Activity (in thousands) | Balance at Sep 30, 2024 (in thousands) | | :-------------------------------------- | :------------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | :------------------------------------- | | Common Stock | $232 | $1 | $0 | $0 | $233 | | Additional Paid-in Capital | $352,970 | $932 + $3,524 - $5,842 = $(1,386) | $219 + $3,709 - $1,123 = $2,805 | $51 + $3,495 = $3,546 | $357,935 | | Retained Earnings | $828,247 | $(3,479) + $98,941 = $95,462 | $(3,492) + $92,579 = $89,087 | $(3,493) + $114,229 = $110,736 | $1,123,532 | | Accumulated Other Comprehensive Loss | $(94,617) | $(9,940) | $(5,658) | $63,464 | $(46,751) | | Total Stockholders' Equity | $1,086,832 | $98,941 | $92,579 | $114,229 | $1,434,949 | - Total stockholders' equity increased by $348.1 million from December 31, 2023, to September 30, 2024, primarily due to net income and an increase in accumulated other comprehensive income (loss)129 Condensed Consolidated Statements of Cash Flows This section presents the Company's cash flow activities for the nine months ended September 30, 2024 and 2023 Condensed Consolidated Statements of Cash Flows Highlights (Nine Months Ended Sep 30) | Activity | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change | | :-------------------------------------- | :------------------ | :------------------ | :-------------------- | :--------- | | Net cash provided by operating activities | $763,324 | $648,308 | $115,016 | 17.7% | | Net cash used in investing activities | $(762,100) | $(616,364) | $(145,736) | 23.6% | | Net cash used in financing activities | $(16,227) | $(25,274) | $9,047 | (35.8)% | | Net change in cash and