Kinsale Capital Group, Inc. (NYSE:KNSL) reported net income of $134.1 million, $5.76 per diluted share, for the second quarter of 2025 compared to $92.6 million, $3.97 per diluted share, for the second quarter of 2024. Net income was $223.3 million, $9.59 per diluted share, for the first half of 2025 compared to $191.5 million, $8.21 per diluted share, for the first half of 2024. Net income included after-tax catastrophe losses of $2.9 million in the second quarter of 2025 and $2.7 million in the second quarter of 2024. Net income included after-tax catastrophe losses of $20.8 million in the first half of 2025 and $3.2 million in the first half of 2024.

Net operating earnings⁽¹⁾ were $111.4 million, $4.78 per diluted share, for the second quarter of 2025 compared to $87.4 million, $3.75 per diluted share, for the second quarter of 2024. Net operating earnings⁽¹⁾ were $197.8 million, $8.49 per diluted share, for the first half of 2025 compared to $169.1 million, $7.25 per diluted share, for the first half of 2024.

Highlights for the quarter included:

Diluted earnings per share increased by 45.1% to $5.76 compared to the second quarter of 2024
Diluted operating earnings⁽¹⁾ per share increased by 27.5% to $4.78 compared to the second quarter of 2024
Gross written premiums increased by 4.9% to $555.5 million compared to the second quarter of 2024
Net investment income increased by 29.6% to $46.5 million compared to the second quarter of 2024
Underwriting income⁽²⁾ was $95.5 million in the second quarter of 2025, resulting in a combined ratio⁽⁵⁾ of 75.8%
Annualized operating return on equity⁽⁷⁾was 24.7% for the six months ended June 30, 2025

"In the second quarter our business produced record per share net income and net operating earnings as we continue to execute our strategy of disciplined underwriting and technology-enabled expense management. Moving forward, we have confidence in our ability to continue generating long-term value for stockholders throughout the market cycle," said Chairman and Chief Executive Officer, Michael P. Kehoe.

Results of Operations

Underwriting Results

Gross written premiums were $555.5 million for the second quarter of 2025 compared to $529.8 million for the second quarter of 2024, an increase of 4.9%. Gross written premiums were $1.0 billion for the first half of 2025 compared to $978.4 million for the first half of 2024, an increase of 6.3%. Gross written premiums in the Commercial Property Division, the Company's largest division, declined 16.8% in the second quarter and 17.5% in the first half of 2025 compared to the prior-year periods, reflecting lower rates and increased competition, including from standard carriers. Excluding the Commercial Property Division, gross written premiums increased 14.3% for the quarter and 15.5% for the first half of 2025 driven by continued strong submission flow across most divisions.

Underwriting income⁽²⁾ was $95.5 million, resulting in a combined ratio⁽⁵⁾ of 75.8% for the second quarter of 2025, compared to $76.1 million and a combined ratio⁽⁵⁾ of 77.7% for the same period last year. The increase in underwriting income⁽²⁾ was largely due to continued growth in the business and higher favorable development of loss reserves from prior accident years. Loss⁽³⁾ and expense⁽⁴⁾ ratios were 55.1% and 20.7%, respectively, for the second quarter of 2025 compared to 56.6% and 21.1% for the second quarter of 2024. Results for the second quarter of 2025 and 2024 included net favorable development of loss reserves from prior accident years of $15.4 million, or 3.9 points, and $9.5 million, or 2.8 points, respectively.

Underwriting income⁽²⁾ was $162.9 million, resulting in a combined ratio⁽⁵⁾ of 78.8% for the first half of 2025 compared to $141.1 million and a combined ratio⁽⁵⁾ of 78.6% for the first half of 2024. The increase in underwriting income⁽²⁾ was largely due to continued growth in the business and higher favorable development of loss reserves from prior accident years offset in part by higher catastrophe losses incurred. Loss⁽³⁾ and expense⁽⁴⁾ ratios were 58.5% and 20.3%, respectively, for the first half of 2025 compared to 57.7% and 20.9% for the first half of 2024. Results for the first half of 2025 and 2024 included net favorable development of loss reserves from prior accident years of $30.1 million, or 3.9 points, and $17.9 million, or 2.7 points, respectively. The loss ratio for the first half of 2025 included 3.4 points of net catastrophe losses, primarily related to the Palisades Fire. The loss ratio for the first half of 2024 included 0.6 points of net catastrophe losses.

Summary of Operating Results

The Company's operating results for the three and six months ended June 30, 2025 and 2024 are summarized as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
	($ in thousands)
Gross written premiums	$	555,522		$	529,770		$	1,039,797		$	978,414
Ceded written premiums		(96,822	)		(99,534	)		(199,392	)		(197,124	)
Net written premiums	$	458,700		$	430,236		$	840,405		$	781,290

Net earned premiums	$	383,613		$	332,461		$	749,403		$	641,979
Fee income		10,796			8,991			20,355			17,083
Losses and loss adjustment expenses		217,359			193,325			450,335			380,111
Underwriting, acquisition and insurance expenses		81,597			72,068			156,509			137,821
Underwriting income⁽²⁾	$	95,453		$	76,059		$	162,914		$	141,130

Loss ratio⁽³⁾		55.1	%		56.6	%		58.5	%		57.7	%
Expense ratio⁽⁴⁾		20.7	%		21.1	%		20.3	%		20.9	%
Combined ratio⁽⁵⁾		75.8	%		77.7	%		78.8	%		78.6	%

Annualized return on equity⁽⁶⁾		32.5	%		30.5	%		27.9	%		32.7	%
Annualized operating return on equity⁽⁷⁾		27.0	%		28.8	%		24.7	%		28.8	%

⁽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 tables summarize losses incurred for the current accident year and the development of prior accident years for the three and six months ended June 30, 2025 and 2024:

	Three Months Ended June 30, 2025					Three Months Ended June 30, 2024
	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	$	229,100		58.1	%	$	199,406		58.4	%
Current accident year - catastrophe losses		3,705		0.9	%		3,420		1.0	%
Effect of prior accident year development		(15,446	)	(3.9	)%		(9,501	)	(2.8	)%
Total	$	217,359		55.1	%	$	193,325		56.6	%

	Six Months Ended June 30, 2025					Six Months Ended June 30, 2024
	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	$	454,147		59.0	%	$	394,060		59.8	%
Current accident year - catastrophe losses		26,283		3.4	%		3,998		0.6	%
Effect of prior accident year development		(30,095	)	(3.9	)%		(17,947	)	(2.7	)%
Total	$	450,335		58.5	%	$	380,111		57.7	%

Investment Results

Net investment income was $46.5 million in the second quarter of 2025 compared to $35.8 million in the second quarter of 2024, an increase of 29.6%. Net investment income was $90.3 million in the first half of 2025 compared to $68.8 million in the first half of 2024, an increase of 31.3%. These increases were 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 4.3% for both the first half of 2025 and 2024. 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 3.1 years and 3.0 years at June 30, 2025 and December 31, 2024, respectively. Cash and invested assets totaled $4.6 billion at June 30, 2025 and $4.1 billion at December 31, 2024.

⁽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.

Other

The effective tax rates for the six months ended June 30, 2025 and 2024 were 20.4% and 17.3%, respectively. In the first half of 2025 and 2024, 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. The effective tax rate was higher for the six months ended June 30, 2025 compared to the same period in 2024 due primarily to a lower volume of stock option exercises.

Stockholders' equity was $1.7 billion at June 30, 2025 compared to $1.5 billion at December 31, 2024. Book value per share was $73.93 at June 30, 2025 compared to $63.75 at December 31, 2024. Annualized operating return on equity⁽⁷⁾was 24.7% for the first half of 2025, a decrease from 28.8% for the first half of 2024. The decrease was due primarily to higher average stockholders' equity and higher net catastrophe losses primarily related to the Palisades Fire. Average stockholders' equity increased as a result of profitable growth and an increase in the fair value of our fixed-income portfolio.

Share Repurchases

During the second quarter of 2025, the Company repurchased 23,309 shares of its common stock in the open market at an average price of $429.02 per share for a total cost of $10.0 million.

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 and six months ended June 30, 2025 and 2024, net income and diluted earnings per share reconcile to net operating earnings and diluted operating earnings per share as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
	($ in thousands, except per share data)
Net operating earnings:
Net income	$	134,121		$	92,579		$	223,348		$	191,520
Adjustments:
Change in the fair value of equity securities, before taxes		(28,621	)		(3,159	)		(31,659	)		(21,212	)
Income tax expense ⁽¹⁾		6,010			663			6,648			4,455
Change in fair value of equity securities, after taxes		(22,611	)		(2,496	)		(25,011	)		(16,757	)

Net realized investment gains, before taxes		(136	)		(2,879	)		(673	)		(6,745	)
Income tax expense ⁽¹⁾		29			605			141			1,416
Net realized investment gains, after taxes		(107	)		(2,274	)		(532	)		(5,329	)

Change in allowance for credit losses on investments, before taxes		(5	)		(476	)		15			(486	)
Income tax (benefit) expense ⁽¹⁾		1			100			(3	)		102
Change in allowance for credit losses on investments, after taxes		(4	)		(376	)		12			(384	)
Net operating earnings	$	111,399		$	87,433		$	197,817		$	169,050

Diluted operating earnings per share:
Diluted earnings per share	$	5.76		$	3.97		$	9.59		$	8.21
Change in the fair value of equity securities, after taxes, per share		(0.97	)		(0.11	)		(1.07	)		(0.72	)
Net realized investment gains, after taxes, per share		—			(0.10	)		(0.02	)		(0.23	)
Change in allowance for credit losses on investments, after taxes, per share		—			(0.02	)		—			(0.02	)
Diluted operating earnings per share⁽²⁾	$	4.78		$	3.75		$	8.49		$	7.25

Operating return on equity:
Average equity⁽³⁾	$	1,652,774		$	1,214,086		$	1,603,067		$	1,172,018
Annualized return on equity⁽⁴⁾		32.5	%		30.5	%		27.9	%		32.7	%
Annualized operating return on equity⁽⁵⁾		27.0	%		28.8	%		24.7	%		28.8	%

⁽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 and six months ended June 30, 2025 and 2024, net income reconciles to underwriting income as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
	(in thousands)
Net income	$	134,121		$	92,579		$	223,348		$	191,520
Income tax expense		34,168			23,221			57,252			40,147
Income before income taxes		168,289			115,800			280,600			231,667
Net investment income		(46,473	)		(35,847	)		(90,292	)		(68,780	)
Change in the fair value of equity securities		(28,621	)		(3,159	)		(31,659	)		(21,212	)
Net realized investment gains		(136	)		(2,879	)		(673	)		(6,745	)
Change in allowance for credit losses on investments		(5	)		(476	)		15			(486	)
Interest expense		2,557			2,564			5,095			4,986
Other expenses ⁽⁶⁾		12			796			672			2,759
Other income		(170	)		(740	)		(844	)		(1,059	)
Underwriting income	$	95,453		$	76,059		$	162,914		$	141,130

⁽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, July 25, 2025 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 until the close of business on August 22, 2025.

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 June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
Revenues	(in thousands, except per share data)
Gross written premiums	$	555,522		$	529,770		$	1,039,797		$	978,414
Ceded written premiums		(96,822	)		(99,534	)		(199,392	)		(197,124	)
Net written premiums		458,700			430,236			840,405			781,290
Change in unearned premiums		(75,087	)		(97,775	)		(91,002	)		(139,311	)
Net earned premiums		383,613			332,461			749,403			641,979
Fee income		10,796			8,991			20,355			17,083
Net investment income		46,473			35,847			90,292			68,780
Change in the fair value of equity securities		28,621			3,159			31,659			21,212
Net realized investment gains		136			2,879			673			6,745
Change in allowance for credit losses on investments		5			476			(15	)		486
Other income		170			740			844			1,059
Total revenues		469,814			384,553			893,211			757,344

Expenses
Losses and loss adjustment expenses		217,359			193,325			450,335			380,111
Underwriting, acquisition and insurance expenses		81,597			72,068			156,509			137,821
Interest expense		2,557			2,564			5,095			4,986
Other expenses		12			796			672			2,759
Total expenses		301,525			268,753			612,611			525,677
Income before income taxes		168,289			115,800			280,600			231,667
Total income tax expense		34,168			23,221			57,252			40,147
Net income		134,121			92,579			223,348			191,520

Other comprehensive income (loss)
Change in net unrealized losses on available-for-sale investments, net of taxes		14,453			(5,658	)		40,835			(15,598	)
Total comprehensive income	$	148,574		$	86,921		$	264,183		$	175,922

Earnings per share:
Basic	$	5.79		$	4.00		$	9.64		$	8.28
Diluted	$	5.76		$	3.97		$	9.59		$	8.21

Weighted-average shares outstanding:
Basic		23,175			23,165			23,172			23,137
Diluted		23,291			23,329			23,301			23,332

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets

	June 30, 2025		December 31, 2024
Assets	(in thousands)
Investments:
Fixed-maturity securities at fair value	$	3,918,078	$	3,537,563
Equity securities at fair value		513,882		398,359
Real estate investments, net		15,045		15,045
Short-term investments		34,310		3,714
Total investments		4,481,315		3,954,681

Cash and cash equivalents		138,101		113,213
Investment income due and accrued		30,936		27,366
Premiums receivable, net		168,366		140,027
Reinsurance recoverables, net		387,279		337,891
Ceded unearned premiums		54,421		52,736
Deferred policy acquisition costs, net of ceding commissions		124,070		109,263
Intangible assets		3,538		3,538
Deferred income tax asset, net		45,097		60,215
Other assets		123,403		87,774
Total assets	$	5,556,526	$	4,886,704

Liabilities & Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses	$	2,623,653	$	2,285,668
Unearned premiums		921,136		828,449
Payable to reinsurers		41,620		43,959
Accounts payable and accrued expenses		38,232		55,159
Debt		184,260		184,122
Other liabilities		25,052		5,786
Total liabilities		3,833,953		3,403,143

Stockholders' equity		1,722,573		1,483,561
Total liabilities and stockholders' equity	$	5,556,526	$	4,886,704

View source version on businesswire.com: https://www.businesswire.com/news/home/20250724515574/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 Second Quarter 2025 Results