Financial Data and Key Metrics Changes - Kinsale's diluted operating earnings per share increased by 26% in Q4 2025 compared to Q4 2024 [4] - Gross written premium grew by 1.8% and net written premium increased by 7.1% year-over-year [4][9] - The company posted a combined ratio of 71.7% for the quarter, with a full-year operating ROE of 26% [4] - Book value per share increased by 33% since year-end 2024, and float increased by 23% [4] Business Line Data and Key Metrics Changes - The commercial property division experienced a decline, impacting overall growth, while excluding this division, gross written premium grew by 10.2% for the quarter and 13.3% for the year [5] - The expense ratio was under 21%, significantly lower than many competitors, which tend to run in the mid-30s or higher [6] - New business submission growth, excluding unsolicited submissions, was up 6% for the quarter, with most divisions seeing submission growth [12][14] Market Data and Key Metrics Changes - The E&S market conditions remained competitive, with varying levels of competition across different segments [4] - Pricing trends showed a combined decrease of 2.7% according to the Amwins Index, with some property lines experiencing opportunities for meaningful rate increases [15] - Casualty lines remained strong, with growth led by commercial auto, agribusiness casualty, and general casualty divisions [12] Company Strategy and Development Direction - Kinsale aims to maintain a disciplined underwriting approach while leveraging its low-cost business model to generate best-in-class returns [5][6] - The company is focusing on technology and analytics, including the integration of AI to enhance decision-making and profitability [7][8] - A $250 million buyback authorization was announced, alongside an increase in the quarterly dividend to $0.25 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate strong returns despite competitive pressures, particularly in the commercial property division [5][16] - The company anticipates stabilization in the commercial property market after a period of intense competition [21] - Management highlighted the importance of maintaining conservative loss reserves and a strong balance sheet [46] Other Important Information - Kinsale's net investment income increased by 24.9% in Q4 2025 compared to the previous year [10] - The company is expanding its homeowner insurance offerings, with a focus on high-value homes and a gradual rollout strategy [100][110] Q&A Session Summary Question: Concerns about the decline in commercial property - Management noted that the decline was due to increased competition and an influx from London, causing deceleration in growth [20] Question: Future outlook for commercial property - Management indicated that stabilization is expected in the coming quarters, despite current competitive pressures [21] Question: Business retention ratios and market dynamics - Renewal retention is in the low 70% range, with no significant movement away from the E&S market [31] Question: Impact of competition on premium growth - Management characterized the slowdown in growth as primarily due to increased competition, with some slight declines in submission flows [119] Question: AI integration in operations - AI is being used to automate tasks and improve analytics, with a focus on enhancing underwriting and risk segmentation [65] Question: Home insurance market opportunities - The company is expanding its homeowner insurance offerings, focusing on both standard and non-standard policies [112]