Kinsale Capital (US:KNSL)2025-10-23 20:12Premiums 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]