Kinsale Capital Group, Inc. (NYSE:KNSL) reported net income of $141.6 million, $6.09 per diluted share, for the third quarter of 2025 compared to $114.2 million, $4.90 per diluted share, for the third quarter of 2024. Net income was $365.0 million, $15.67 per diluted share, for the first nine months of 2025 compared to $305.7 million, $13.10 per diluted share, for the first nine months of 2024. Net income included after-tax catastrophe losses of $1.0 million in the third quarter of 2025 and $10.8 million in the third quarter of 2024. Net income included after-tax catastrophe losses of $21.7 million in the first nine months of 2025 and $13.9 million in the first nine months of 2024.

Net operating earnings⁽¹⁾ were $121.2 million, $5.21 per diluted share, for the third quarter of 2025 compared to $97.9 million, $4.20 per diluted share, for the third quarter of 2024. Net operating earnings⁽¹⁾ were $319.0 million, $13.70 per diluted share, for the first nine months of 2025 compared to $267.0 million, $11.44 per diluted share, for the first nine months of 2024.

Highlights for the quarter included:

Diluted earnings per share increased by 24.3% to $6.09 compared to the third quarter of 2024
Diluted operating earnings⁽¹⁾ per share increased by 24.0% to $5.21 compared to the third quarter of 2024
Gross written premiums increased by 8.4% to $486.3 million compared to the third quarter of 2024
Net investment income increased by 25.1% to $49.6 million compared to the third quarter of 2024
Underwriting income⁽²⁾ was $105.7 million in the third quarter of 2025, resulting in a combined ratio⁽⁵⁾ of 74.9%
Annualized operating return on equity⁽⁷⁾was 25.4% for the nine months ended September 30, 2025

"Our business continues to produce strong results across the market cycle as we execute our model of disciplined underwriting and technology-enabled expense management. We remain confident in our strategy and our ability to deliver long-term value to our shareholders," said Chairman and Chief Executive Officer, Michael P. Kehoe.

Results of Operations

Underwriting Results

Gross written premiums were $486.3 million for the third quarter of 2025 compared to $448.6 million for the third quarter of 2024, an increase of 8.4%. Gross written premiums were $1.5 billion for the first nine months of 2025 compared to $1.4 billion for the first nine months of 2024, an increase of 6.9%. Gross written premiums in the Commercial Property Division, the Company's largest division, declined 7.9% in the third quarter and 15.2% in the first nine months 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 12.3% for the quarter and 14.4% for the first nine months of 2025 driven by continued strong submission flow across most divisions.

Underwriting income⁽²⁾ was $105.7 million, resulting in a combined ratio⁽⁵⁾ of 74.9% for the third quarter of 2025, compared to $86.9 million and a combined ratio⁽⁵⁾ of 75.7% for the same period last year. The increase in underwriting income⁽²⁾ was largely due to continued growth in the business, lower catastrophe losses and higher favorable development of loss reserves from prior accident years. Loss⁽³⁾ and expense⁽⁴⁾ ratios were 53.9% and 21.0%, respectively, for the third quarter of 2025 compared to 56.1% and 19.6% for the third quarter of 2024. Results for the third quarter of 2025 and 2024 included net favorable development of loss reserves from prior accident years of $15.8 million, or 3.7 points, and $10.1 million, or 2.8 points, respectively. The loss ratio for the third quarter of 2025 included 0.3 points of net catastrophe losses. The loss ratio for the third quarter of 2024 included 3.8 points of net catastrophe losses, primarily related to Hurricanes Helene, Francine and Beryl and tornadoes in the Midwest.

Underwriting income⁽²⁾ was $268.6 million, resulting in a combined ratio⁽⁵⁾ of 77.5% for the first nine months of 2025 compared to $228.0 million and a combined ratio⁽⁵⁾ of 77.6% for the first nine months 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 56.9% and 20.6%, respectively, for the first nine months of 2025 compared to 57.1% and 20.5% for the first nine months of 2024. Results for the first nine months of 2025 and 2024 included net favorable development of loss reserves from prior accident years of $45.9 million, or 3.8 points, and $28.1 million, or 2.7 points, respectively. The loss ratio for the first nine months of 2025 included 2.3 points of net catastrophe losses, primarily related to the Palisades Fire. The loss ratio for the first nine months of 2024 included 1.7 points of net catastrophe losses, primarily related to Hurricanes Helene, Francine and Beryl and tornadoes in the Midwest.

Summary of Operating Results

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
	($ in thousands)
Gross written premiums	$	486,251		$	448,646		$	1,526,048		$	1,427,060
Ceded written premiums		(81,191	)		(98,709	)		(280,583	)		(295,833	)
Net written premiums	$	405,060		$	349,937		$	1,245,465		$	1,131,227

Net earned premiums	$	410,957		$	348,752		$	1,160,360		$	990,731
Fee income		10,300			8,489			30,655			25,572
Losses and loss adjustment expenses		227,162			200,240			677,497			580,351
Underwriting, acquisition and insurance expenses		88,423			70,139			244,932			207,960
Underwriting income⁽²⁾	$	105,672		$	86,862		$	268,586		$	227,992

Loss ratio⁽³⁾		53.9	%		56.1	%		56.9	%		57.1	%
Expense ratio⁽⁴⁾		21.0	%		19.6	%		20.6	%		20.5	%
Combined ratio⁽⁵⁾		74.9	%		75.7	%		77.5	%		77.6	%

Annualized return on equity⁽⁶⁾		31.6	%		33.9	%		29.1	%		32.3	%
Annualized operating return on equity⁽⁷⁾		27.0	%		29.1	%		25.4	%		28.2	%

⁽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 nine months ended September 30, 2025 and 2024:

	Three Months Ended September 30, 2025					Three Months Ended September 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	$	241,704		57.3	%	$	196,750		55.1	%
Current accident year - catastrophe losses		1,216		0.3	%		13,615		3.8	%
Effect of prior accident year development		(15,758	)	(3.7	)%		(10,125	)	(2.8	)%
Total	$	227,162		53.9	%	$	200,240		56.1	%

	Nine Months Ended September 30, 2025					Nine Months Ended September 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	$	695,851		58.4	%	$	590,810		58.1	%
Current accident year - catastrophe losses		27,499		2.3	%		17,613		1.7	%
Effect of prior accident year development		(45,853	)	(3.8	)%		(28,072	)	(2.7	)%
Total	$	677,497		56.9	%	$	580,351		57.1	%

Investment Results

Net investment income was $49.6 million in the third quarter of 2025 compared to $39.6 million in the third quarter of 2024, an increase of 25.1%. Net investment income was $139.9 million in the first nine months of 2025 compared to $108.4 million in the first nine months of 2024, an increase of 29.0%. 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 nine months 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 3.6 years and 3.0 years at September 30, 2025 and December 31, 2024, respectively. Cash and invested assets totaled $4.9 billion at September 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 nine months ended September 30, 2025 and September 30, 2024 were 20.6% and 18.7%, respectively. In the first nine months 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 nine months ended September 30, 2025 compared to the same period in 2024 due primarily to a lower volume of stock option exercises.

Stockholders' equity was $1.9 billion at September 30, 2025 compared to $1.5 billion at December 31, 2024. Book value per share was $80.19 at September 30, 2025 compared to $63.75 at December 31, 2024. Annualized operating return on equity⁽⁷⁾was 25.4% for the first nine months of 2025, a decrease from 28.2% for the first nine months of 2024. The decrease was due primarily to higher average stockholders' equity. Average stockholders' equity increased as a result of profitable growth and an increase in the fair value of our fixed income and equity securities offset in part by share repurchases.

Share Repurchases

During the third quarter of 2025, the Company repurchased 45,627 shares of its common stock in the open market at an average price of $438.33 per share for a total cost of $20.0 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 nine months ended September 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 September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
	($ in thousands, except per share data)
Net operating earnings:
Net income	$	141,646		$	114,229		$	364,994		$	305,749
Adjustments:
Change in the fair value of equity securities, before taxes		(23,717	)		(20,659	)		(55,376	)		(41,871	)
Income tax expense ⁽¹⁾		4,981			4,338			11,629			8,793
Change in fair value of equity securities, after taxes		(18,736	)		(16,321	)		(43,747	)		(33,078	)

Net realized investment (gains) losses, before taxes		(2,159	)		8			(2,832	)		(6,737	)
Income tax expense (benefit) ⁽¹⁾		453			(2	)		595			1,415
Net realized investment (gains) losses, after taxes		(1,706	)		6			(2,237	)		(5,322	)

Change in allowance for credit losses on investments, before taxes		(4	)		(4	)		11			(490	)
Income tax (benefit) expense ⁽¹⁾		1			1			(2	)		103
Change in allowance for credit losses on investments, after taxes		(3	)		(3	)		9			(387	)
Net operating earnings	$	121,201		$	97,911		$	319,019		$	266,962

Diluted operating earnings per share:
Diluted earnings per share	$	6.09		$	4.90		$	15.67		$	13.10
Change in the fair value of equity securities, after taxes, per share		(0.81	)		(0.70	)		(1.88	)		(1.42	)
Net realized investment (gains) losses, after taxes, per share		(0.07	)		—			(0.10	)		(0.23	)
Change in allowance for credit losses on investments, after taxes, per share		—			—			—			(0.02	)
Diluted operating earnings per share⁽²⁾	$	5.21		$	4.20		$	13.70		$	11.44

Operating return on equity:
Average equity⁽³⁾	$	1,793,895		$	1,346,076		$	1,674,389		$	1,260,891
Annualized return on equity⁽⁴⁾		31.6	%		33.9	%		29.1	%		32.3	%
Annualized operating return on equity⁽⁵⁾		27.0	%		29.1	%		25.4	%		28.2	%

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
	(in thousands)
Net income	$	141,646		$	114,229		$	364,994		$	305,749
Income tax expense		37,232			30,169			94,484			70,316
Income before income taxes		178,878			144,398			459,478			376,065
Net investment income		(49,604	)		(39,644	)		(139,896	)		(108,424	)
Change in the fair value of equity securities		(23,717	)		(20,659	)		(55,376	)		(41,871	)
Net realized investment (gains) losses		(2,159	)		8			(2,832	)		(6,737	)
Change in allowance for credit losses on investments		(4	)		(4	)		11			(490	)
Interest expense		2,569			2,589			7,664			7,575
Other expenses ⁽⁶⁾		473			692			1,145			3,451
Other income		(764	)		(518	)		(1,608	)		(1,577	)
Underwriting income	$	105,672		$	86,862		$	268,586		$	227,992

⁽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, October 24, 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.

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 September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Revenues	(in thousands, except per share data)
Gross written premiums	$	486,251		$	448,646		$	1,526,048		$	1,427,060
Ceded written premiums		(81,191	)		(98,709	)		(280,583	)		(295,833	)
Net written premiums		405,060			349,937			1,245,465			1,131,227
Change in unearned premiums		5,897			(1,185	)		(85,105	)		(140,496	)
Net earned premiums		410,957			348,752			1,160,360			990,731
Fee income		10,300			8,489			30,655			25,572
Net investment income		49,604			39,644			139,896			108,424
Change in the fair value of equity securities		23,717			20,659			55,376			41,871
Net realized investment gains (losses)		2,159			(8	)		2,832			6,737
Change in allowance for credit losses on investments		4			4			(11	)		490
Other income		764			518			1,608			1,577
Total revenues		497,505			418,058			1,390,716			1,175,402

Expenses
Losses and loss adjustment expenses		227,162			200,240			677,497			580,351
Underwriting, acquisition and insurance expenses		88,423			70,139			244,932			207,960
Interest expense		2,569			2,589			7,664			7,575
Other expenses		473			692			1,145			3,451
Total expenses		318,627			273,660			931,238			799,337
Income before income taxes		178,878			144,398			459,478			376,065
Total income tax expense		37,232			30,169			94,484			70,316
Net income		141,646			114,229			364,994			305,749

Other comprehensive income
Change in net unrealized losses on available-for-sale investments, net of taxes		20,131			63,464			60,966			47,866
Total comprehensive income	$	161,777		$	177,693		$	425,960		$	353,615

Earnings per share:
Basic	$	6.12		$	4.93		$	15.75		$	13.21
Diluted	$	6.09		$	4.90		$	15.67		$	13.10

Weighted-average shares outstanding:
Basic		23,159			23,175			23,168			23,150
Diluted		23,271			23,335			23,292			23,333

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

	September 30, 2025		December 31, 2024
Assets	(in thousands)
Investments:
Fixed-maturity securities at fair value	$	4,171,238	$	3,537,563
Equity securities at fair value		571,123		398,359
Real estate investments, net		15,045		15,045
Short-term investments		10,932		3,714
Total investments		4,768,338		3,954,681

Cash and cash equivalents		170,162		113,213
Investment income due and accrued		30,619		27,366
Premiums receivable, net		124,061		140,027
Reinsurance recoverables, net		391,164		337,891
Ceded unearned premiums		48,774		52,736
Deferred policy acquisition costs, net of ceding commissions		124,416		109,263
Intangible assets		3,538		3,538
Deferred income tax asset, net		36,735		60,215
Other assets		135,498		87,774
Total assets	$	5,833,305	$	4,886,704

Liabilities & Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses	$	2,765,187	$	2,285,668
Unearned premiums		909,592		828,449
Payable to reinsurers		34,766		43,959
Accounts payable and accrued expenses		50,855		55,159
Debt		199,328		184,122
Other liabilities		8,360		5,786
Total liabilities		3,968,088		3,403,143

Stockholders' equity		1,865,217		1,483,561
Total liabilities and stockholders' equity	$	5,833,305	$	4,886,704

View source version on businesswire.com: https://www.businesswire.com/news/home/20251023025629/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 Third Quarter 2025 Results