Kinsale's Q4 Profits Hurt by Hurricanes

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].