Kinsale Capital (US:KNSL) ZACKS·2025-02-14 17:41Core Viewpoint - Kinsale Capital (KNSL) reported strong fourth-quarter 2024 net operating earnings of $4.62 per share, exceeding estimates and reflecting a 19.4% year-over-year increase [1][2]. Operational Update - Operating revenues rose 17.4% year over year to $412 million, although this figure fell short of consensus estimates by 1.5% [3]. - Gross written premiums increased by 12.2% year over year to $443.3 million, driven by strong broker submissions and a competitive pricing environment, but missed the estimate of $487 million [3]. - Net written premiums climbed 13% year over year to $346.1 million, below the estimate of $375.8 million [4]. - Net investment income surged 37.8% year over year to $41.9 million, surpassing the estimate of $41.5 million, attributed to a growing investment portfolio and higher interest rates [4]. - Total expenses increased 23.7% year over year to $273.5 million, primarily due to rising losses and other expenses, which was below the estimate of $288.9 million [5]. - Underwriting income grew 15.4% year over year to $97.9 million, significantly exceeding the estimate of $64.6 million, despite higher catastrophe losses [6]. - The combined ratio deteriorated by 130 basis points to 73.4, better than the Zacks Consensus Estimate of 76 [6]. - The loss ratio slightly deteriorated by 10 basis points to 52.3, compared to estimates of 55.8 [7]. Financial Update - Kinsale Capital ended 2024 with cash and cash equivalents of $113.2 million, a decrease of 10.6% from the end of 2023 [8]. - Stockholders' equity increased by 36.5% to $1.5 billion, with book value per share rising 36% to $63.75 [8]. - Net operating cash flows were $976.3 million in 2024, reflecting a 13.5% year-over-year increase [8]. - Annualized operating return on equity contracted by 260 basis points year over year to 29.2% [8]. Share Repurchase - In October 2024, the board authorized a share repurchase of up to $100 million, with $10 million repurchased in the fourth quarter [9].