Kinsale Q4 Earnings Top Estimates, Revenues Miss, Premiums Rise Y/Y

Core Viewpoint - Kinsale Capital (KNSL) reported strong fourth-quarter 2024 net operating earnings of $4.62 per share, exceeding estimates and reflecting a 19.4$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$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].