Financial Data and Key Metrics Changes - Kinsale's operating earnings per share increased by 24% in Q3 2025 compared to the previous year [6] - Gross written premium grew by 8.4% year-over-year, while net earned premium increased by 17.8% [10] - The combined ratio for the quarter was 74.9%, with a nine-month operating return on equity of 25.4% [6][10] - Book value per share rose by 25.8% since the end of 2024, and float increased by 20% [6] Business Line Data and Key Metrics Changes - The commercial property division saw a premium drop of 8% in Q3 2025, a significant improvement from a 17% drop in Q2 2025 [7] - Excluding the commercial property division, the overall growth rate was 12.3% [7] - The expense ratio for Q3 2025 was 21%, up from 19.6% the previous year, attributed to lower ceding commissions [11] Market Data and Key Metrics Changes - The E&S market conditions remained steady in Q3 2025, with competitive growth rates varying by segment [6] - Submission growth was 6% for the quarter, down from 9% in the first quarter, primarily driven by the commercial property division [16] Company Strategy and Development Direction - Kinsale's disciplined underwriting and low-cost business model provide a competitive advantage in a cost-focused market [7] - The company is focusing on growth in newer areas such as transportation and agribusiness, while also emphasizing high-value homeowners and personal lines [23][24] - The management expressed confidence in maintaining a durable competitive advantage and gradually taking market share from higher expense competitors [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the E&S market remains competitive, with some signs of stabilization in commercial property rates [15][17] - The company is optimistic about growth prospects, despite a deceleration in premium growth [17][45] - Management emphasized the importance of maintaining efficiency and controlling underwriting processes to protect margins [95] Other Important Information - Management announced significant changes, including Brian Haney's election to the Board and his transition to Senior Advisor [4] - The company is actively enhancing its technology capabilities, including the implementation of AI tools to drive automation [28][30] Q&A Session Summary Question: Future opportunities outside of commercial property - Management sees opportunities across various segments, particularly in transportation, agribusiness, and casualty lines [23][24] Question: Technology innovations and implementation - The company has made technology a core competency and is currently working on a complete rewrite of its enterprise system to enhance efficiency [27][30] Question: Changes in construction liability assumptions - Management indicated that there were no specific changes affecting the current year loss pick, but they conduct regular reviews of loss reserves [33] Question: Growth opportunities in excess casualty - There are still good opportunities in excess casualty, with rates holding strong in the segments where Kinsale participates [36] Question: Casualty market state and pricing trends - The casualty market remains competitive, but certain segments like excess casualty and allied health are still strong for growth [42] Question: Impact of alternative capital on property market - Management acknowledged the potential for alternative capital to enter the market but emphasized the current dynamics of the third quarter [106] Question: Underwriting expenses management - The company aims to maintain efficiency and expects gradual declines in underwriting expenses over time [93] Question: Reinsurance retention outlook - Management indicated that retention levels could change based on the mix of business but did not foresee immediate changes [99][100]

Financial Data and Key Metrics Changes - The company achieved an annualized operating return on equity of 19% in the quarter [5] - Record diluted book value per common share reached $70.34, an increase of 18.6% year over year [6] - Operating earnings per share hit an all-time high of $3.29, a 12% increase over the prior year quarter [6] - Generated record second quarter premiums of $2.5 billion, including $732 million in new business [6] - Combined ratio improved to 88.9%, with catastrophe events approximating an industry loss of $25 billion [6][20] Business Line Data and Key Metrics Changes - The Insurance segment reported gross premiums written of $1.9 billion, a record and a 7% increase compared to the prior year quarter [22] - Current accident year ex-cat combined ratio for Insurance was 83.2%, with an overall combined ratio of 85.3% [7][25] - Net written premium in Insurance grew 8.1% in the quarter, with underwriting income reaching $152 million, the highest on record [8] - In Reinsurance, gross premiums decreased by 6.8%, but the combined ratio remained stable at 92% [26] Market Data and Key Metrics Changes - In North America, premiums increased by 8% over the prior year quarter, with submission flow up more than 22% [8] - Casualty rates increased by 12% in the quarter, while U.S. Primary casualty rates rose by 12.5% [10][11] - Property segment experienced flat to low single-digit growth with an overall rate reduction of 11% [11] - The company observed competitive market conditions, particularly in property, while maintaining premium adequacy across its portfolio [9] Company Strategy and Development Direction - The company continues to focus on selective growth in competitive markets, particularly in casualty and professional lines [9][12] - Investments in technology and AI are being made to modernize underwriting platforms and improve operational efficiency [16][32] - The company aims to leverage its specialty capabilities to navigate a dynamic risk environment and achieve profitable growth [17] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty due to trade disruptions, tariffs, and geopolitical tensions, which could impact inflation and growth [7] - The company remains optimistic about achieving profitable growth, with expectations for the second half of the year to exceed the 6% growth seen in the first half [94][96] - Management emphasized a disciplined approach to underwriting and reserving, particularly in light of evolving market conditions [38][41] Other Important Information - The company recorded a release of $20 million from short-tailed lines, with $15 million in insurance and $5 million in reinsurance [21] - The effective tax rate for the quarter was 20.1%, reflecting the geographic mix of profits [30] - The company returned substantial capital to shareholders, completing $50 million in share repurchases and declaring $35 million in common dividends [31] Q&A Session Summary Question: Thoughts on reinsurance sessions in the future - Management indicated that the reinsurance purchase strategy will remain agile and flexible, adapting to risk views and capital positions [34][35] Question: Concerns about the accident year loss ratio - Management expressed confidence in maintaining the loss ratio around 68% for the remainder of the year, emphasizing a cautious approach to reserving [37][41] Question: Pricing adequacy in insurance and reinsurance - Management noted that pricing in liability casualty is ahead of loss costs, while property pricing has seen deterioration [44][45] Question: Changes in MGA strategy - The company has adopted a selective and disciplined approach to MGAs, focusing on bottom-line results rather than volume [57][59] Question: Cedents enhancing underwriting and claims processes - Management observed that many companies are strengthening their claims processes, but emphasized the need for statistically repeatable evidence before increasing reinsurance liability growth [60][61] Question: Share buyback strategy - Management stated that share buybacks are opportunistic and will continue as deemed appropriate, with $110 million remaining on the repurchase authorization [81][84] Question: Growth in lower middle market business - The lower middle market business grew by $64 million in the quarter, with continued investment in underwriting modernization [87][89] Question: Impact of UK Russia aviation ruling - Management confirmed no adverse impact from the ruling, as the company does not operate in the contingent war market [105]