Kinsale Capital Group, Inc. (NYSE:KNSL) reported net income of $112.6 million, $4.88 per diluted share, for the first quarter of 2026 compared to $89.2 million, $3.83 per diluted share, for the first quarter of 2025. Net income included after-tax catastrophe losses of $1.3 million in the first quarter of 2026 and $17.8 million in the first quarter of 2025. Net operating earnings⁽¹⁾ were $117.8 million, $5.11 per diluted share, for the first quarter of 2026 compared to $86.4 million, $3.71 per diluted share, for the first quarter of 2025.

	Three Months Ended March 31,
	2026		2025		% Change
Diluted earnings per share	$	4.88	$	3.83	27.4	%
Diluted operating earnings per share⁽¹⁾	$	5.11	$	3.71	37.7	%

Highlights for the quarter included:

Gross written premiums decreased by 0.5% to $482.0 million
Net written premiums increased by 5.6% to $403.3 million
Net investment income increased by 26.5% to $55.4 million
Underwriting income⁽²⁾ was $94.5 million, resulting in a combined ratio⁽⁵⁾ of 77.4%
Annualized operating return on equity⁽⁷⁾was 24.0% for the three months ended March 31, 2026

"Our first quarter results demonstrate exceptional profitability," said Chairman, President and Chief Executive Officer, Michael P. Kehoe. "We have confidence in our strategy of underwriting discipline and maintaining structurally low costs. Particularly in a competitive market, we remain focused on delivering long-term stockholder value throughout the market cycle by generating consistent and attractive underwriting profits while managing our capital prudently."

Results of Operations

Underwriting Results

Gross written premiums were $482.0 million for the first quarter of 2026 compared to $484.3 million for the first quarter of 2025, a decrease of 0.5%. The decrease in gross written premiums was primarily due to a 28.3% decline in the Commercial Property Division, one of the Company's largest divisions, driven by continued rate decreases from heightened competition, including from standard carriers. Excluding the Commercial Property Division, gross written premiums increased 6.0% compared to the prior-year period, reflecting continued strong submission flow across most divisions.

Net written premiums were $403.3 million for the first quarter of 2026 compared to $381.7 million for the first quarter of 2025, an increase of 5.6%. The increase in net written premiums was primarily due to an increase in retention on the Company's reinsurance treaties effective with the June 2025 renewal.

Underwriting income⁽²⁾ was $94.5 million, resulting in a combined ratio⁽⁵⁾ of 77.4% for the first quarter of 2026, compared to $67.5 million and a combined ratio⁽⁵⁾ of 82.1% for the same period last year. The increase in underwriting income⁽²⁾was largely due to growth in net earned premiums, lower catastrophe losses and higher favorable development of loss reserves from prior accident years.

Loss⁽³⁾and expense⁽⁴⁾ ratios were 56.3% and 21.1%, respectively, for the first quarter of 2026 compared to 62.1% and 20.0% for the first quarter of 2025. Results for the first quarter of 2026 and 2025 included net favorable development of loss reserves from prior accident years of $18.7 million, or 4.5 points, and $14.6 million, or 3.9 points, respectively. The loss ratio for the first quarter of 2026 included 0.4 points of net catastrophe losses. The loss ratio for the first quarter of 2025 included 6.0 points of net catastrophe losses, primarily related to the Palisades Fire. The increase in the expense ratio to 21.1% in the first quarter of 2026 from 20.0% in the first quarter of 2025 was primarily due to lower ceding commissions as a result of higher retention on the Company's reinsurance treaties. The economic effect of lower ceding commissions was more than offset by the retention of incremental underwriting margin and higher investment income.

Summary of Operating Results

The Company's operating results for the three months ended March 31, 2026 and 2025 are summarized as follows:

	Three Months Ended March 31,
	2026			2025
	($ in thousands)
Gross written premiums	$	482,018		$	484,275
Ceded written premiums		(78,756	)		(102,570	)
Net written premiums	$	403,262		$	381,705

Net earned premiums	$	406,859		$	365,790
Fee income		10,995			9,559
Losses and loss adjustment expenses		235,119			232,976
Underwriting, acquisition and insurance expenses		88,234			74,912
Underwriting income⁽²⁾	$	94,501		$	67,461

Loss ratio⁽³⁾		56.3	%		62.1	%
Expense ratio⁽⁴⁾		21.1	%		20.0	%
Combined ratio⁽⁵⁾		77.4	%		82.1	%

Annualized return on equity⁽⁶⁾		22.9	%		23.3	%
Annualized operating return on equity⁽⁷⁾		24.0	%		22.5	%

⁽¹⁾Net operating earnings is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.

⁽²⁾Underwriting income is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.

⁽³⁾Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to the sum of net earned premiums and fee income.

⁽⁴⁾Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income.

⁽⁵⁾The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding.

⁽⁶⁾Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

⁽⁷⁾Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

The following table summarizes losses incurred for the current accident year and the development of prior accident years for the three months ended March 31, 2026 and 2025:

	Three Months Ended March 31, 2026					Three Months Ended March 31, 2025
	Losses and Loss Adjustment Expenses			% of Sum of Earned Premiums and Fee Income		Losses and Loss Adjustment Expenses			% of Sum of Earned Premiums and Fee Income
Loss ratio:	($ in thousands)
Current accident year	$	252,188		60.4	%	$	225,047		60.0	%
Current accident year - catastrophe losses		1,636		0.4	%		22,578		6.0	%
Effect of prior accident year development		(18,705	)	(4.5	)%		(14,649	)	(3.9	)%
Total	$	235,119		56.3	%	$	232,976		62.1	%

Investment Results

Net investment income was $55.4 million in the first quarter of 2026 compared to $43.8 million in the first quarter of 2025, an increase of 26.5%. This increase was driven by growth in the Company's investment portfolio generated largely from the investment of strong operating cash flows. The Company's investment portfolio had an annualized gross investment return⁽⁸⁾ of 4.5% and 4.3% for the first quarter of 2026 and 2025, respectively. Funds are generally invested conservatively in high-quality securities with an average credit quality of "AA-" and the weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.1 years and 4.0 years at March 31, 2026 and December 31, 2025, respectively. Cash and invested assets totaled $5.3 billion at March 31, 2026, and $5.2 billion at December 31, 2025.

⁽⁸⁾Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of average beginning and ending book values of those investments during the period.

Capital Return to Stockholders

During the first quarter of 2026, the Company repurchased 166,042 shares of its common stock in the open market at an average price of $376.41 per share for a total cost of $62.5 million. At March 31, 2026, the Company had $187.5 million of capacity remaining under its share repurchase program.

During the first quarter of 2026, the Company declared and paid a cash dividend of $0.25 per share of common stock for a total distribution of $5.7 million.

Other

The effective tax rates for the three months ended March 31, 2026 and March 31, 2025, were 19.4% and 20.6%, respectively. In the first quarter of 2026 and 2025, the effective tax rates were lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.

Stockholders' equity was $2.0 billion at both March 31, 2026 and December 31, 2025. Book value per share was $85.31 at March 31, 2026 compared to $84.66 at December 31, 2025. Annualized operating return on equity⁽⁷⁾was 24.0% for the first three months of 2026, an increase from 22.5% for the first three months of 2025. The increase was due primarily to higher profitability compared to the prior-year period offset in part by higher average stockholders' equity.

Non-GAAP Financial Measures

Net Operating Earnings

Net operating earnings is defined as net income excluding the effects of the change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and change in allowance for credit losses on investments, after taxes. Management believes the exclusion of these items provides a useful comparison of the Company's underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-GAAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.

For the three months ended March 31, 2026 and 2025, net income and diluted earnings per share reconcile to net operating earnings and diluted operating earnings per share as follows:

	Three Months Ended March 31,
	2026			2025
	($ in thousands, except per share data)
Net operating earnings:
Net income	$	112,554		$	89,227
Adjustments:
Change in the fair value of equity securities, before taxes		8,356			(3,038	)
Income tax (benefit) expense ⁽¹⁾		(1,755	)		638
Change in fair value of equity securities, after taxes		6,601			(2,400	)

Net realized investment gains, before taxes		(1,719	)		(537	)
Income tax expense ⁽¹⁾		361			113
Net realized investment gains, after taxes		(1,358	)		(424	)

Change in allowance for credit losses on investments, before taxes		27			20
Income tax benefit ⁽¹⁾		(6	)		(4	)
Change in allowance for credit losses on investments, after taxes		21			16
Net operating earnings	$	117,818		$	86,419

Diluted operating earnings per share:
Diluted earnings per share	$	4.88		$	3.83
Change in the fair value of equity securities, after taxes, per share		0.29			(0.10	)
Net realized investment gains, after taxes, per share		(0.06	)		(0.02	)
Diluted operating earnings per share⁽²⁾	$	5.11		$	3.71

Operating return on equity:
Average equity⁽³⁾	$	1,963,465		$	1,533,268
Annualized return on equity⁽⁴⁾		22.9	%		23.3	%
Annualized operating return on equity⁽⁵⁾		24.0	%		22.5	%

⁽¹⁾Income taxes on adjustments to reconcile net income to net operating earnings use a 21% effective tax rate.

⁽²⁾Diluted operating earnings per share may not add due to rounding.

⁽³⁾Average equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two.

⁽⁴⁾Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

⁽⁵⁾Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

Underwriting Income

Underwriting income is defined as net income excluding net investment income, the change in the fair value of equity securities, net realized investment gains and losses, change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. The Company uses underwriting income as an internal performance measure in the management of its operations because the Company believes it gives management and users of the Company's financial information useful insight into the Company's results of operations and underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.

For the three months ended March 31, 2026 and 2025, net income reconciles to underwriting income as follows:

	Three Months Ended March 31,
	2026			2025
	(in thousands)
Net income	$	112,554		$	89,227
Income tax expense		27,106			23,084
Income before income taxes		139,660			112,311
Net investment income		(55,423	)		(43,819	)
Change in the fair value of equity securities		8,356			(3,038	)
Net realized investment gains		(1,719	)		(537	)
Change in allowance for credit losses on investments		27			20
Interest expense		3,167			2,538
Other expenses ⁽⁶⁾		529			660
Other income		(96	)		(674	)
Underwriting income	$	94,501		$	67,461

⁽⁶⁾Other expenses includes primarily corporate expenses not allocated to the Company's insurance operations.

Conference Call

Kinsale Capital Group will hold a conference call to discuss this press release on Friday, April 24, 2026, at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (800) 715-9871, conference ID# 6520221, or via the Internet by going to www.kinsalecapitalgroup.com and clicking on the "Investor Relations" link. A replay of the call will be available on the website.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About Kinsale Capital Group, Inc.

Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Income and Comprehensive Income

	Three Months Ended March 31,
	2026			2025
Revenues	(in thousands, except per share data)
Gross written premiums	$	482,018		$	484,275
Ceded written premiums		(78,756	)		(102,570	)
Net written premiums		403,262			381,705
Change in unearned premiums		3,597			(15,915	)
Net earned premiums		406,859			365,790
Fee income		10,995			9,559
Net investment income		55,423			43,819
Change in the fair value of equity securities		(8,356	)		3,038
Net realized investment gains		1,719			537
Change in allowance for credit losses on investments		(27	)		(20	)
Other income		96			674
Total revenues		466,709			423,397

Expenses
Losses and loss adjustment expenses		235,119			232,976
Underwriting, acquisition and insurance expenses		88,234			74,912
Interest expense		3,167			2,538
Other expenses		529			660
Total expenses		327,049			311,086
Income before income taxes		139,660			112,311
Total income tax expense		27,106			23,084
Net income		112,554			89,227

Other comprehensive income (loss)
Change in net unrealized losses on available-for-sale investments, net of taxes		(34,913	)		26,382
Total comprehensive income	$	77,641		$	115,609

Earnings per share:
Basic	$	4.90		$	3.85
Diluted	$	4.88		$	3.83

Weighted-average shares outstanding:
Basic		22,975			23,170
Diluted		23,057			23,313

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

	March 31, 2026		December 31, 2025
Assets	(in thousands)
Investments:
Fixed-maturity securities at fair value	$	4,402,650	$	4,341,450
Equity securities at fair value		644,541		626,399
Real estate investments, net		54,952		55,236
Short-term investments		—		3,864
Total investments		5,102,143		5,026,949

Cash and cash equivalents		223,263		163,361
Investment income due and accrued		29,999		30,971
Premiums receivable, net		128,574		124,593
Reinsurance recoverables, net		413,242		394,329
Ceded unearned premiums		43,866		44,506
Deferred policy acquisition costs, net of ceding commissions		119,165		118,737
Intangible assets		3,538		3,538
Deferred income tax asset, net		53,725		42,191
Other assets		97,955		94,386
Total assets	$	6,215,470	$	6,043,561

Liabilities & Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses	$	3,063,156	$	2,890,870
Unearned premiums		856,157		860,394
Payable to reinsurers		33,454		34,385
Accounts payable and accrued expenses		22,354		66,301
Debt		224,466		224,397
Other liabilities		48,537		7,631
Total liabilities		4,248,124		4,083,978

Stockholders' equity		1,967,346		1,959,583
Total liabilities and stockholders' equity	$	6,215,470	$	6,043,561

View source version on businesswire.com: https://www.businesswire.com/news/home/20260423595623/en/

Kinsale Capital Group, Inc.

Bryan Petrucelli

Executive Vice President, Chief Financial Officer and Treasurer

804-289-1272

ir@kinsalecapitalgroup.com

Kinsale Capital Group Reports First Quarter 2026 Results