Kinsale Capital Group ( (KNSL) ) has released its Q1 earnings. Here is a breakdown of the information Kinsale Capital Group presented to its investors.
Kinsale Capital Group, Inc. is a specialty insurance company based in Richmond, Virginia, focusing on the excess and surplus lines market.
In its first quarter of 2025 earnings report, Kinsale Capital Group announced a net income of $89.2 million, or $3.83 per diluted share, which marks a decrease from the previous year’s $98.9 million, or $4.24 per diluted share. The company faced after-tax catastrophe losses of $17.8 million, significantly higher than the $0.5 million reported in the same period last year.
Despite the dip in net income, Kinsale reported several positive financial metrics. The company’s net operating earnings rose to $86.4 million, with a 6% increase in diluted operating earnings per share. Gross written premiums saw a 7.9% rise, reaching $484.3 million, while net investment income surged by 33.1% to $43.8 million. Underwriting income also increased to $67.5 million, although the combined ratio slightly worsened to 82.1% due to higher catastrophe losses.
The company’s investment portfolio performed well, contributing to the increased net investment income. Kinsale’s annualized operating return on equity was 22.5%, reflecting strong profitability despite the challenges posed by the Palisades Fire. The effective tax rate for the quarter was higher than the previous year, primarily due to a lower volume of stock option exercises.
Looking ahead, Kinsale Capital Group remains committed to delivering long-term value for its shareholders through disciplined underwriting and technology-enabled expense management. The management expresses confidence in navigating the competitive landscape and maintaining robust financial performance.