Kinsale Capital (US:KNSL)2025-10-23 20:10Financial Performance - Net income for Q3 2025 was $141.6 million, or $6.09 per diluted share, up from $114.2 million, or $4.90 per diluted share in Q3 2024, representing a 24.3% increase in diluted earnings per share [2][6]. - Net operating earnings for Q3 2025 were $121.2 million, or $5.21 per diluted share, compared to $97.9 million, or $4.20 per diluted share in Q3 2024, marking a 24.0% increase in diluted operating earnings per share [3][6]. - Net income for Q3 2025 was $141,646,000, an increase of 23.9% compared to $114,229,000 in Q3 2024 [17]. - Diluted operating earnings per share for Q3 2025 were $5.21, up 24.0% from $4.20 in Q3 2024 [17]. - Total revenues for Q3 2025 amounted to $497,505,000, a rise of 19.0% from $418,058,000 in Q3 2024 [26]. - Underwriting income for Q3 2025 was $105,672,000, an increase of 21.7% from $86,862,000 in Q3 2024 [20]. - The company reported a total comprehensive income of $161,777,000 for Q3 2025, compared to $177,693,000 in Q3 2024 [26]. Premiums and Underwriting - Gross written premiums increased by 8.4% to $486.3 million in Q3 2025 compared to $448.6 million in Q3 2024, and by 6.9% to $1.5 billion for the first nine months of 2025 compared to $1.4 billion in the same period of 2024 [4][9]. - Net written premiums for Q3 2025 were $405,060,000, compared to $349,937,000 in Q3 2024, reflecting a growth of 15.7% [26]. - Underwriting income for Q3 2025 was $105.7 million with a combined ratio of 74.9%, improving from $86.9 million and a combined ratio of 75.7% in Q3 2024 [5][9]. Investment Income - Net investment income rose by 25.1% to $49.6 million in Q3 2025, compared to $39.6 million in Q3 2024, and increased by 29.0% to $139.9 million for the first nine months of 2025 compared to $108.4 million in the same period of 2024 [11]. Balance Sheet and Equity - Stockholders' equity increased to $1.9 billion at September 30, 2025, up from $1.5 billion at December 31, 2024, with book value per share rising to $80.19 from $63.75 [14]. - Total assets increased to $5,833,305,000 from $4,886,704,000, representing a growth of 19.4% [28]. - Total investments rose to $4,768,338,000, up from $3,954,681,000, marking a 20.5% increase [28]. - Stockholders' equity grew to $1,865,217,000, up from $1,483,561,000, indicating a 25.7% increase [28]. - Cash and cash equivalents increased to $170,162,000 from $113,213,000, a growth of 50.3% [28]. - Total liabilities increased to $3,968,088,000 from $3,403,143,000, representing an increase of 16.6% [28]. Ratios and Returns - The loss ratio for Q3 2025 was 53.9%, down from 56.1% in Q3 2024, while the expense ratio increased slightly to 21.0% from 19.6% [9][10]. - The annualized operating return on equity was 25.4% for the first nine months of 2025, a decrease from 28.2% in the same period of 2024, primarily due to higher average stockholders' equity [14]. - The annualized return on equity for Q3 2025 was 31.6%, slightly down from 33.9% in Q3 2024 [17]. Shareholder Actions - During Q3 2025, the company repurchased 45,627 shares at an average price of $438.33 per share, totaling $20.0 million [15]. Taxation - The effective tax rate for the first nine months of 2025 was 20.6%, up from 18.7% in the same period of 2024, primarily due to a lower volume of stock option exercises [13]. Future Outlook - The company plans to hold a conference call on October 24, 2025, to discuss the financial results and future outlook [21].