KNSL · Kinsale Capital Group, Inc.

Kinsale Capital Group demonstrated underwriting resilience in Q1 2026, achieving revenue of $466.7 million, up 10.2% from $423.4 million in the prior year. This growth stemmed from increases in net written premiums and the net retention ratio, primarily due to higher retention on reinsurance treaties and a shift in business mix. These dynamics enabled the company to navigate pressures in the gross written premiums, where declines in the Commercial Property Division—driven by continued rate decreases from heightened competition, including standard carriers—highlighted the need for selective underwriting focus.

Net income advanced 26.1% to $112.6 million from $89.2 million, with diluted EPS rising 27.4% to $4.88 from $3.83. The earnings acceleration reflects the company's ability to leverage its investment portfolio, which grew due to the investment of strong operating cash flows. As measured by amortized cost, portfolio size expands with invested equity capital, premiums received from insureds, and reduced claim payments, positioning Kinsale to capture higher investment returns amid favorable market conditions.

Operating cash flow strengthened to $248.9 million from $229.8 million, largely driven by higher investment income received and the timing of reinsurance recoveries. This was offset only partially by the timing of claim payments and some decline in premium volume. The volume of ceded written premiums, influenced by gross written premiums levels, retention decisions, and reinstatement premiums, further supported cash inflows. Policy fees, as a flat charge to insureds, also contributed based on business volume. Capital expenditures declined to $7.5 million from $12.1 million, yielding free cash flow of $241.3 million. Management believes cash receipts from premiums, investment sales proceeds, redemptions, and income sufficiently cover outflows in the foreseeable future.

Liquidity remains robust across Kinsale and its insurance subsidiary, Kinsale Insurance Company, as well as other operating subsidiaries, meeting operating cash needs, obligations, and committed capital expenditures for the next 12 months. This positions the company well to sustain its specialty insurance focus while managing competitive headwinds in property lines. Note that Q1 results are not necessarily indicative of full-year 2026 performance.