Kinsale Capital (US:KNSL) ZACKSยท2025-04-25 16:00Core Insights - Kinsale Capital (KNSL) reported first-quarter 2025 net operating earnings of $3.71 per share, exceeding the Zacks Consensus Estimate by 17.8% and reflecting a 6% year-over-year increase [1] - The company's operational strategy focused on disciplined underwriting and technology-enabled cost management [1] Operational Update - Operating revenues increased by 13.4% year over year to $423 million, driven by higher premiums, fee income, and net investment income, although it slightly missed the consensus estimate by 0.2% [1] - Gross written premiums rose 7.9% year over year to $484.3 million, influenced by strong broker submissions and a competitive pricing environment [2] - Net written premiums climbed 8.7% year over year to $381.7 million, falling short of the estimate of $412.8 million [2] - Net investment income surged 33.1% year over year to $43.1 million, surpassing the estimate of $42.5 million, primarily due to growth in the investment portfolio and higher interest rates [3] Expense and Profitability Metrics - Total expenses increased by 21% year over year to $311 million, attributed to higher losses, underwriting, and acquisition expenses [4] - Underwriting income was reported at $67.5 million, a 3.7% year-over-year growth, despite higher catastrophe losses [4] - The combined ratio deteriorated by 260 basis points to 82.1, better than the Zacks Consensus Estimate of 87 [5] - The expense ratio worsened by 70 basis points to 20, while the loss ratio increased by 330 basis points to 62.1 [5] Financial Update - Kinsale Capital ended the first quarter of 2025 with cash and invested assets of $4.3 million, a 4.9% increase from the end of 2024 [6] - Stockholders' equity rose by 6.7% to $1.6 billion, and book value per share increased by 6.5% to $67.92 [6] - Net operating cash flows were $229.8 million, reflecting a 9.2% year-over-year increase [6] Share Repurchase - The company repurchased $10 million worth of shares in the first quarter of 2025 [9]