Key Takeaways KNSL Q4 net operating EPS rose 25.8% to $5.81, beating estimates by 9.6%.Kinsale Capital's underwriting income jumped 23.2% as combined ratio improved to 71.7.KNSL ended 2025 with $163.4M in cash, launched a $250M buyback and raised dividend 47.1%.Kinsale Capital Group, Inc. (KNSL) delivered fourth-quarter 2025 net operating earnings of $5.81 per share, which outpaced the Zacks Consensus Estimate by 9.6%. The bottom line increased 25.8% year over year.Operating revenues increased 17.3% year ov ...

Core Viewpoint - Selective Insurance Group is experiencing elevated casualty severity trends post-pandemic, with assumptions around 9% overall and closer to 10% excluding workers' compensation, indicating a shift in claims patterns that the company believes is persistent rather than temporary [1] Financial Performance and Strategy - The CFO noted a significant increase in the technology budget, which has more than doubled compared to 2023, aimed at enhancing data-driven decision-making and pricing precision [2] - The company expects improvement in underwriting performance, with a combined ratio framework indicating better results in 2026, supported by a written rate of approximately 9.5% over the last two years, exceeding trend assumptions of 7% to 7.5% [13] Reserving and Claims Management - The company has taken proactive reserving actions, particularly in General Liability for 2024 and Commercial Auto Liability for 2025, in response to emerging trends such as lawsuit abuse and social inflation [5][6] - Selective conducts independent reviews of its reserves, with findings indicating that its carried reserves are above one firm's central estimate, validating the company's reserving practices [8] Market Dynamics and Risk Factors - New Jersey has been identified as a significant driver for reserve adjustments, representing about 30% of premium in Personal Auto and 15% in Commercial Auto, with higher susceptibility to social inflation due to various judicial and regulatory factors [9][11] - The company emphasizes the importance of not overreacting to single data points, evaluating a range of factors to avoid misinterpretation of claims trends [7] Growth and Diversification - Selective is expanding its commercial lines footprint from 22 states to 36, with plans to reach 40, and has seen growth in excess and surplus lines, which now constitute 13% of the business [14] - The company is shifting its focus in Personal Lines from mass market to mass affluent customers, with average home values for new business around $1 million [14] Capital Management - Selective has been active in share repurchases, targeting a return of 20% to 25% of earnings over the long term through dividends, having returned approximately $100 million to shareholders in 2025 [16]

Core Insights - Cincinnati Financial Corporation (CINF) reported a fourth-quarter 2025 operating income of $3.37 per share, exceeding the Zacks Consensus Estimate by 17.8% and reflecting a 7% year-over-year increase [2][10] - Total operating revenues for the quarter reached $2.9 billion, a 9.8% year-over-year increase, although it slightly missed the Zacks Consensus Estimate by 0.02% [2][10] Operational Performance - Earned premiums increased by 10% year over year to $2.6 billion, driven by premium growth initiatives, price increases, and higher insured exposures, but marginally missed the Zacks Consensus Estimate by 0.3% [6] - Net investment income rose 9% year over year to $305 million, primarily due to a 10% increase in interest income from fixed-maturity securities, slightly beating the Zacks Consensus Estimate by 0.5% [7] - Total benefits and expenses increased by 9.3% year over year to $2.3 billion, mainly due to higher insurance losses and increased underwriting, acquisition, and insurance expenses [7] Underwriting Results - In the property and casualty insurance segment, CINF reported underwriting income of $378 million, a 7% increase year over year, significantly surpassing the Zacks Consensus Estimate of $284.5 million [8] - The combined ratio, a key measure of underwriting profitability, increased by 50 basis points year over year to 85.2, outperforming the consensus estimate of 89.6 [8] Segment Performance - **Commercial Lines Insurance**: Total revenues of $1.2 billion increased by 7% year over year, beating the Zacks Consensus Estimate by 0.8%. Underwriting income was $144 million, down 20% year over year, with a combined ratio of 88.4 [11] - **Personal Lines Insurance**: Total revenues of $860 million increased by 18% year over year, driven by an 18% rise in earned premiums. Underwriting profit increased by 11% year over year to $161 million, significantly surpassing the Zacks Consensus Estimate [12] - **Excess and Surplus Lines Insurance**: Total revenues of $189 million grew by 12% year over year, with underwriting profit surging 150% year over year to $30 million, well above the Zacks Consensus Estimates [13] - **Life Insurance**: Total revenues were $137 million, up 4% year over year, driven by higher earned premiums and investment income [14] Full-Year Performance - For 2025, operating income totaled $7.95 per share, reflecting a 5% year-over-year increase and beating the Zacks Consensus Estimate by 8% [15] - Operating revenues for the year were $11.19 billion, in line with the Zacks Consensus Estimate, representing a 13% year-over-year increase [15] Financial Position - As of December 31, 2025, total assets were reported at $41 billion, up from $36.5 billion at the end of 2024 [16] - The company's debt-to-capital ratio improved by 60 basis points year over year to 4.9%, indicating a stronger capital position [16] - Book value per share increased by 15% year over year to $102.35, supported by a 14% rise in net pretax investment income [17]

Core Insights - The Allstate Corporation reported a fourth-quarter 2025 adjusted net income of $14.31 per share, exceeding the Zacks Consensus Estimate by 45.7% and showing an 86.6% year-over-year increase [1][9] - Operating revenues reached $17.3 billion, reflecting a 3.4% year-over-year growth, although it fell short of the consensus estimate by 1.4% [1][2] Financial Performance - Property and casualty insurance premiums increased by 6.3% year over year to $15.5 billion, while net investment income rose 7.1% year over year to $892 million, surpassing the Zacks Consensus Estimate of $875 million [3][4] - Total costs and expenses decreased by 11.6% year over year to $12.4 billion, attributed to lower claims and operating costs, with catastrophe losses dropping 49% year over year to $209 million [4][9] - The pretax income doubled year over year to $4.9 billion [4] Segment Performance - The Property-Liability segment earned premiums of $14.8 billion, a 6.1% year-over-year increase, although it missed the consensus estimate [6] - Underwriting income in the Property-Liability unit more than doubled year over year to $4 billion, with an improved combined ratio of 76.6% [6][9] - The Protection Services segment's revenues grew 3.1% year over year to $917 million, but also fell short of estimates [7] Capital Deployment - In 2025, Allstate returned over $2.2 billion to shareholders through share buybacks and dividends, with a new $4 billion share repurchase program authorized [10] - A quarterly dividend increase of 8% was approved, raising the dividend to $1.08 per share, payable on April 1, 2026 [11] Annual Overview - For the full year 2025, Allstate's revenues totaled $67.7 billion, a 5.6% increase year over year, with adjusted net income soaring 90.1% to $34.83 per share [12]

Core Insights - RenaissanceRe Holdings Ltd. (RNR) reported fourth-quarter 2025 operating income of $13.34 per share, exceeding the Zacks Consensus Estimate by 26% and showing a year-over-year increase of 65.5% [1] - Total operating revenues decreased by 6% year over year to $2.8 billion, missing the consensus mark by 5.7% [1] Financial Performance - The quarterly results benefited from an increase in net investment income and strong underwriting results, while total expenses dropped by 28.1% year over year to $1.7 billion due to declines in claims expenses, acquisition, and operational costs [2][4] - Gross premiums written fell by 4.1% year over year to $1.8 billion, missing the estimate of $1.9 billion, while net premiums earned decreased by 7.6% year over year to $2.3 billion, also falling short of the consensus estimate [3] - Net investment income rose by 4.2% year over year to $446.7 million, surpassing the consensus mark of $439 million [4] Underwriting Results - Underwriting income increased more than threefold year over year to $668.8 million, with a combined ratio of 71.4%, improving by 2,030 basis points year over year [5] - The Property segment saw gross premiums written decline by 11.3% year over year to $346.1 million, with net premiums earned sliding by 2.1% year over year [6] - The Casualty & Specialty segment recorded gross premiums written of $1.5 billion, down 2.3% year over year, and net premiums earned fell by 10.9% year over year to $1.42 billion [8][9] Financial Position - As of December 31, 2025, RenaissanceRe had cash and cash equivalents of $1.7 billion, a 3.3% increase from the end of 2024, and total assets of $53.8 billion, up 6.1% [10] - Total shareholders' equity rose by 9.8% to $11.6 billion, while debt increased by 23.5% to $2.3 billion [10] Share Repurchase Activity - The company repurchased common shares worth approximately $650.5 million in the fourth quarter, with additional repurchases of $113.4 million from January 1, 2026, to January 30, 2026 [11] Full-Year Overview - For the full year 2025, gross premiums written increased marginally to $11.7 billion, while net premiums earned dipped by 1.9% to $9.9 billion [12]

Core Insights - Chubb Limited reported a fourth-quarter 2025 core operating income of $7.52 per share, exceeding the Zacks Consensus Estimate by 13.9% and showing a year-over-year improvement of 24.9% [1][2] - Total operating revenues increased by 7.4% year over year to $15.3 billion, surpassing the Zacks Consensus Estimate by 1.7% [1][2] Financial Performance - Net premiums written rose by 8.9% year over year to $13.1 billion, exceeding both internal estimates and the Zacks Consensus Estimate [4][9] - Record net investment income reached $1.7 billion, an increase of 8%, while adjusted net investment income was $1.8 billion, up 7.3% year over year [4][9] - Property and casualty (P&C) underwriting income hit a record $2.2 billion, up 39.6% year over year, significantly above the Zacks Consensus Estimate of $1.8 billion [5][9] - The P&C combined ratio improved by 450 basis points year over year to 81.2%, better than the Zacks Consensus Estimate of 83.6% [6][9] Segment Performance - North America Commercial P&C Insurance saw net premiums written increase by 4.3% year over year to $5.1 billion, with a combined ratio improvement of 180 basis points to 78.8% [7] - North America Personal P&C Insurance reported a 6.1% increase in net premiums written to $1.72 billion, with a combined ratio improvement of 850 basis points to 74.1% [10] - North America Agricultural Insurance experienced a significant 45.1% increase in net premiums written to $459 million, driven by growth in crop insurance [11] - Overseas General Insurance net premiums written increased by 10.8% year over year to $3.8 billion, with a combined ratio improvement of 460 basis points to 83% [12] - Life Insurance net premiums written rose by 16.9% year over year to $1.8 billion, with segment income increasing by 19.3% in constant dollars [12] Full-Year Highlights - For the full year 2025, Chubb's core operating income was $24.79 per share, slightly missing the Zacks Consensus Estimate of $24.83, but showing a year-over-year increase of 10.8% [13] - Total net premiums written for the year reached $54.8 billion, up 6.6%, while P&C underwriting income improved by 11.6% year over year to $6.5 billion [13] Financial Position - As of December 31, 2025, Chubb's cash balance was $2.5 billion, a decrease of 3.1% from the previous year, while total shareholders' equity grew by 16.7% to approximately $80 billion [14] - Book value per share increased by 18% to $188.59 [14] - Operating cash flow for the quarter was $4.06 billion, with adjusted operating cash flow at $4.17 billion [15] Capital Deployment - In 2025, Chubb returned $4.91 billion to shareholders, including $3.39 billion in share repurchases and $381 million in dividends [16]

Core Insights - MGIC Investment Corporation (MTG) reported fourth-quarter 2025 operating net income per share of 75 cents, exceeding the Zacks Consensus Estimate by 2.7% and improving 4.2% year over year [1][10] - Total operating revenues decreased 0.9% year over year to $298.7 million, missing the Zacks Consensus Estimate by 2.9% [1][10] Operational Update - Insurance in force rose 2.6% year over year to $303.1 billion, surpassing the Zacks Consensus Estimate of $295.5 billion [5][10] - Primary delinquency increased 1.1% to 27,072 loans during the quarter [5] - Net premiums written fell 0.7% year over year to $230.5 million, below the estimate of $234.3 million [6] - Net investment income grew 0.5% year over year to $61.6 million, but was below both the estimate of $62.1 million and the Zacks Consensus Estimate of $62.4 million [6] - Persistency remained stable at 84.8% as of Dec. 31, 2025 [7] - New insurance written increased 7.5% year over year to $17.1 billion [7] - Underwriting and other expenses decreased 6.7% year over year to $45.8 million, but the loss ratio increased significantly to 13.2% from 3.6% in the prior-year quarter [7][10] - Total losses and expenses surged 28.8% year over year to $85.9 million due to a sharp rise in losses incurred [8][10] Financial Update - Book value per share increased 12.7% year over year to $23.47 as of Dec. 31, 2025 [11] - Shareholder equity was $5.1 billion as of Dec. 31, 2025, down 0.5% from the end of 2024 [11] - PMIERs Available Assets totaled $5.7 billion, exceeding the Minimum Required Assets by $2.5 billion [12] - Total assets rose 1.4% from the end of 2024 to $6.6 billion [12] - Senior notes increased by 0.2% to $646.1 million as of Dec. 31, 2025 [12] Capital Deployment - The company repurchased 6.8 million shares for $189.1 million and paid a dividend of $400 million to the holding company [13] - A dividend of 15 cents per common share was declared for shareholders [13] - In January 2026, the company executed a $324 million excess of loss reinsurance agreement covering certain policies written between Jan. 1, 2022, and March 31, 2025 [14] Full-Year Highlights - For the full year 2025, operating net income per share was $3.14, beating the Zacks Consensus Estimate by 11.7% and increasing 8.6% year over year [15] - Total operating revenues for the year were $1.2 billion, up 0.5% year over year, but missed the Zacks Consensus Estimate by 1.5% [15] - Net investment income rose 0.7% year over year to $246.26 million, but was below the estimate of $246.8 million [15]

Core Insights - The Hartford Insurance Group, Inc. (HIG) reported fourth-quarter 2025 adjusted operating earnings of $4.06 per share, exceeding the Zacks Consensus Estimate by 27.9% and reflecting a 38% year-over-year increase [1] - Operating revenues rose 8.9% year over year to $5.2 billion, surpassing the consensus mark by 1.4% [1] Financial Performance - Higher net investment income, favorable prior accident year development (PYD), and lower property and casualty (P&C) catastrophe losses contributed to the financial results [2] - Earned premiums reached $6.1 billion, a 5.7% increase year over year, but fell short of the Zacks Consensus Estimate by 0.3% [3] - Net investment income increased 16.5% year over year to $832 million, exceeding the consensus estimate by 11.9% [3] - Total benefits, losses, and expenses rose 2.1% year over year to $5.9 billion [4] - Pre-tax income climbed 31.6% year over year to $1.4 billion [4] Segment Performance - **Business Insurance**: Revenues totaled $4.1 billion, a 9.5% increase, with core earnings of $915 million, up 37.6% year over year [5] - **Personal Insurance**: Revenues amounted to $1 billion, beating the consensus estimate by 2.7%, with core earnings of $214 million, reflecting a 38% year-over-year increase [6] - **P&C Other Ops**: Revenues improved 5.6% year over year to $19 million, but the segment reported a core loss of $140 million [7] - **Employee Benefits**: Revenues were $1.8 billion, a 1.6% increase, but core earnings declined 0.7% year over year to $138 million [9] - **Hartford Funds**: Revenues increased 7.4% year over year to $292 million, with core earnings of $58 million, up 13.7% [10] - **Corporate**: Revenues were flat at $37 million, with a core loss of $37 million, narrower than the previous year's loss [11] Financial Position - As of December 31, 2025, cash declined 27.3% to $133 million, while total investments increased 8% to $64 billion [12] - Total assets grew 6.3% to $86 billion, and total stockholders' equity improved 15.4% to $19 billion [12] - Book value per share was $66.31, a 20.4% year-over-year increase [13] Capital Deployment - The company returned $546 million to stockholders in Q4 2025, including $400 million in share repurchases and $146 million in dividends [14] - Total capital returned for 2025 amounted to $2.2 billion [14] Full-Year Update - Adjusted operating earnings for 2025 were $13.42 per share, a 30% year-over-year surge, with total revenues of $20 billion [15] - Net earned premiums rose 6.5% year over year to $24 billion, and net investment income increased 13.4% to $2.9 billion [15]

Core Insights - Selective Insurance Group is focusing on improved profitability and strong investment results, with expectations for further margin improvement in 2026 and beyond [5] Commercial Auto - The company anticipates accident-year margins to improve in 2025 due to double-digit rate increases over multiple years, exceeding an assumed loss trend of approximately 8% [1] - However, Selective increased commercial auto casualty loss costs by nearly 6 points and raised its expected severity trend for commercial auto liability to about 10% [1] - In total, Selective strengthened commercial auto reserves by approximately $190 million in 2025, primarily related to the 2024 and 2025 accident years [1] Financial Performance - Selective reported a fourth-quarter GAAP combined ratio of 93.8%, a 4.7-point improvement from the prior-year quarter, attributed to no net prior year reserve development [3] - For the full year 2025, the combined ratio improved to 97.2% from 103% in 2024, mainly due to lower prior-year casualty reserve development and lower catastrophe losses [3] - Fourth-quarter fully diluted EPS was $2.52, up 66% year over year, and operating EPS was $2.57, up 59% [4] Underwriting and Reserves - The company experienced favorable workers' compensation development that offset unfavorable emergence in commercial and personal auto lines [2] - Net premiums written grew by 5% for the year, driven by deliberate actions to improve underwriting profitability [2] - Selective strengthened reserves for both 2024 and 2025, indicating comfort with the overall carried reserve position [2] Segment Trends - Standard Commercial Lines, the largest segment, posted a fourth-quarter combined ratio of 92.9%, with premium growth driven by a renewal pure price increase of 7.5% [7] - E&S premium grew by 4% in the quarter, with average renewal pure price increases of 7.8% [8] - Personal Lines produced a fourth-quarter combined ratio of 103%, deteriorating from 91.7% in the prior-year quarter, primarily due to catastrophe losses [9] Investment and Reinsurance - Fourth-quarter after-tax net investment income was $114 million, up 17% from a year earlier, with an average credit quality of A+ [10] - The company renewed its property catastrophe program, maintaining a $100 million retention and increasing the coverage exhaustion point to $1.5 billion [11] 2026 Outlook - Selective's 2026 guidance calls for a GAAP combined ratio of 96.5% to 97.5%, with an expected underlying improvement in Personal Lines and Commercial Lines [12][13] - After-tax net investment income is projected to be $465 million, up 10% from 2025 [12] - The company expects an operating ROE in the 14% range for 2026, supported by continued casualty pricing and mix actions [13] Strategic Focus - The company is focused on risk selection, policy pricing, claims outcomes, and the use of data, analytics, technology, and artificial intelligence as it approaches its 100th anniversary in 2026 [14]

Core Viewpoint - RenaissanceRe (RNR) is anticipated to report a year-over-year increase in earnings despite a decrease in revenues for the quarter ending December 2025, with the consensus outlook indicating a significant impact on the stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $10.19 per share, reflecting a year-over-year increase of +26.4%, while revenues are projected to be $2.95 billion, a slight decline of 0.3% from the previous year [3]. - The consensus EPS estimate has been revised 1.48% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Potential - The Zacks Earnings ESP for RenaissanceRe is +17.38%, suggesting a strong likelihood of beating the consensus EPS estimate, although the company currently holds a Zacks Rank of 3 [12]. - Historical performance shows that RenaissanceRe has beaten consensus EPS estimates in three out of the last four quarters, with a notable surprise of +64.59% in the last reported quarter [13][14]. Industry Context - In the broader insurance industry, Selective Insurance (SIGI) is expected to report earnings of $2.24 per share for the same quarter, indicating a year-over-year increase of +38.3%, with revenues projected to rise by 8.2% to $1.37 billion [18]. - Despite a positive Earnings ESP of +15.75%, Selective Insurance has a Zacks Rank of 4 (Sell), complicating predictions of an earnings beat, as the company has not surpassed consensus EPS estimates in the last four quarters [20].