KNSL · Kinsale Capital Group, Inc.

Kinsale Capital Group reported strong first quarter 2026 results, with net income of $112.6 million ($4.88 per diluted share) compared to $89.2 million ($3.83 per diluted share) in the prior-year period. Net operating earnings, a non-GAAP measure, rose to $117.8 million ($5.11 per diluted share) from $86.4 million ($3.71 per diluted share). The improvement was driven by a lower combined ratio of 77.4% versus 82.1% in Q1 2025, reflecting a sharp reduction in catastrophe losses (0.4 points vs. 6.0 points) and higher favorable development of prior-year loss reserves ($18.7 million vs. $14.6 million). Gross written premiums declined 0.5% to $482.0 million, primarily due to a 28.3% drop in the Commercial Property Division amid heightened competition from standard carriers. Excluding that division, gross written premiums grew 6.0%. Net written premiums increased 5.6% to $403.3 million, aided by higher retention on reinsurance treaties. Net investment income rose 26.5% to $55.4 million, supported by growth in the investment portfolio from strong operating cash flows. The annualized operating return on equity improved to 24.0% from 22.5%. Management highlighted underwriting discipline and structurally low costs as key drivers. The company returned capital to stockholders through $62.5 million in share repurchases (166,042 shares at an average price of $376.41) and $5.7 million in dividends. Book value per share increased to $85.31 from $84.66 at year-end 2025. The effective tax rate was 19.4%, below the statutory rate due to stock-based compensation and tax-exempt income.