Kinsale Capital Surges: Net Income Up 19.4%, Premiums Climb

TL;DR

**Kinsale is crushing it, buy the dip if you get one, this E&S player is on fire.**

AI Summary

Kinsale Capital Group, Inc. reported robust financial performance for the nine months ended September 30, 2025, with net income increasing by 19.4% to $364.994 million from $305.749 million in the prior year. Total revenues grew significantly to $1.390 billion, up from $1.175 billion in 2024, driven by a 17.1% increase in net earned premiums to $1.160 billion. Gross written premiums also saw a healthy rise to $1.526 billion from $1.427 billion. The company's investment portfolio expanded, with total investments reaching $4.768 billion, an increase from $3.954 billion at December 31, 2024, primarily due to growth in fixed-maturity and equity securities. Reserves for unpaid losses and loss adjustment expenses increased to $2.765 billion from $2.285 billion, reflecting business growth. Total stockholders' equity improved to $1.865 billion from $1.483 billion, indicating stronger financial health. The company also engaged in share repurchases totaling $39.999 million during the nine-month period.

Why It Matters

Kinsale's strong performance, marked by significant growth in net income and premiums, signals its continued dominance in the excess and surplus lines market. This growth, coupled with an expanding investment portfolio, suggests a resilient business model capable of navigating competitive pressures and economic shifts. For investors, this indicates a healthy, growing company with increasing shareholder value, as evidenced by share repurchases. Employees benefit from a stable and expanding enterprise, while customers gain from a robust insurer. In the broader market, Kinsale's success highlights the strength of specialized insurance sectors, potentially drawing more capital and competition.

Risk Assessment

Risk Level: low — The company's risk level is low, supported by a substantial increase in total stockholders' equity to $1.865 billion at September 30, 2025, from $1.483 billion at December 31, 2024. This 25.7% increase provides a strong capital buffer. Additionally, net income grew by 19.4% to $364.994 million for the nine months ended September 30, 2025, demonstrating robust profitability and financial stability.

Analyst Insight

Investors should consider Kinsale Capital Group (KNSL) as a strong growth play in the specialized insurance sector. The consistent double-digit growth in net income and premiums, coupled with strategic share repurchases, indicates effective management and a commitment to shareholder returns. Monitor future filings for continued premium growth and investment portfolio performance.

Financial Highlights

debt To Equity

0.11

revenue

$1.390B

total Assets

$5.833B

total Debt

$199.328M

net Income

$364.994M

eps

$15.75

cash Position

$170.162M

revenue Growth

+17.1%

Revenue Breakdown

Key Numbers

• $364.994M — Net Income (Increased 19.4% for the nine months ended September 30, 2025, compared to $305.749M in 2024.)
• $1.390B — Total Revenues (Increased from $1.175B in 2024 to $1.390B in 2025 for the nine-month period.)
• $1.160B — Net Earned Premiums (Increased 17.1% for the nine months ended September 30, 2025, from $990.731M in 2024.)
• $1.526B — Gross Written Premiums (Increased from $1.427B in 2024 to $1.526B in 2025 for the nine-month period.)
• $4.768B — Total Investments (Increased from $3.954B at December 31, 2024, to $4.768B at September 30, 2025.)
• $2.765B — Reserves for unpaid losses and loss adjustment expenses (Increased from $2.285B at December 31, 2024, to $2.765B at September 30, 2025.)
• $1.865B — Total Stockholders' Equity (Increased 25.7% from $1.483B at December 31, 2024, to $1.865B at September 30, 2025.)
• $39.999M — Treasury Stock Acquired (Repurchases made during the nine months ended September 30, 2025.)
• $6.12 — Basic Earnings Per Share (For the three months ended September 30, 2025, up from $4.93 in 2024.)
• $15.75 — Basic Earnings Per Share (For the nine months ended September 30, 2025, up from $13.21 in 2024.)

Key Players & Entities

• Kinsale Capital Group, Inc. (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• New York Stock Exchange (company) — exchange where common stock is registered
• FASB (regulator) — Financial Accounting Standards Board
• $364.994 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $1.390 billion (dollar_amount) — Total revenues for nine months ended September 30, 2025
• $1.526 billion (dollar_amount) — Gross written premiums for nine months ended September 30, 2025
• $4.768 billion (dollar_amount) — Total investments at September 30, 2025
• $1.865 billion (dollar_amount) — Total stockholders' equity at September 30, 2025
• $39.999 million (dollar_amount) — Treasury stock acquired – share repurchases for nine months ended September 30, 2025

FAQ

Risk Factors

• Investment Portfolio Volatility [medium — financial]: The company's total investments grew to $4.768 billion from $3.954 billion. Fluctuations in the fair value of equity securities, which increased by $55.376 million in the nine months, and changes in interest rates affecting fixed-maturity securities, can impact investment income and overall financial results.
• Reserves Adequacy [high — financial]: Reserves for unpaid losses and loss adjustment expenses increased to $2.765 billion from $2.285 billion. Inadequate reserve levels could lead to future losses and negatively impact profitability.
• Reinsurance Dependence [medium — operational]: The company utilizes reinsurance, as evidenced by ceded written premiums of $280.583 million. Disruptions in the reinsurance market or the inability to secure adequate reinsurance could expose Kinsale to greater risk.
• Insurance Regulatory Environment [medium — regulatory]: As an insurance provider, Kinsale is subject to extensive state and federal regulations. Changes in regulatory requirements, capital adequacy rules, or compliance failures could result in fines, sanctions, or operational restrictions.
• Competitive Market Pressures [medium — market]: The specialty insurance market is competitive. Sustained pricing pressure or an inability to differentiate products and services could impact premium growth and profitability.
• Interest Rate Sensitivity [medium — financial]: Changes in interest rates can affect the fair value of the company's fixed-maturity securities portfolio and its net investment income. A significant portion of investments are in fixed-maturity securities, valued at $4.171 billion.

Industry Context

Kinsale Capital Group operates in the specialty insurance sector, which focuses on niche markets with unique risks. This segment often commands higher premiums due to specialized underwriting and less competition than standard lines. The industry is characterized by its sensitivity to economic cycles, regulatory changes, and catastrophic events, requiring robust risk management and capital adequacy.

Regulatory Implications

As a regulated entity, Kinsale must adhere to stringent solvency requirements and reporting standards set by various state insurance departments. Changes in accounting for reserves, capital requirements, or data privacy regulations could necessitate adjustments to operations and financial reporting, impacting compliance costs and strategic flexibility.

What Investors Should Do

1. Monitor reserve development trends
2. Analyze investment portfolio performance
3. Evaluate premium growth sustainability
4. Assess capital allocation strategies

Key Dates

• 2025-09-30: Nine Months Ended — Period for which financial results are reported, showing significant growth in net income and revenues.
• 2025-09-30: Balance Sheet Date — Reflects increased assets, liabilities, and equity compared to December 31, 2024, indicating business expansion.
• 2024-12-31: Prior Year End — Baseline for comparison of asset growth, equity increase, and reserve changes.

Glossary

Gross Written Premiums

The total amount of premiums written by an insurer before deducting reinsurance costs. (Indicates the total volume of business written by Kinsale, showing a rise to $1.526 billion.)

Net Earned Premiums

The portion of premiums that an insurance company has earned over a specific period, after accounting for reinsurance and changes in unearned premiums. (Represents the revenue recognized by Kinsale, growing to $1.160 billion, a key indicator of operational performance.)

Unearned Premiums

Premiums paid in advance for insurance coverage that has not yet been provided. (A liability representing future coverage obligations, which increased to $909.592 million.)

Reserves for unpaid losses and loss adjustment expenses

Funds set aside by an insurer to cover claims that have occurred but have not yet been paid, plus the expenses associated with settling those claims. (A critical liability for insurers; Kinsale's reserves increased to $2.765 billion, reflecting business growth and potential future payouts.)

Deferred policy acquisition costs

Costs incurred in acquiring new insurance policies that are capitalized and amortized over the life of the policy. (Represents costs associated with writing new business, net of ceding commissions, totaling $124.416 million.)

Treasury Stock

Shares of a company's own stock that it has repurchased from the open market. (Kinsale acquired $49.999 million in treasury stock during the period, indicating capital return to shareholders.)

Year-Over-Year Comparison

Kinsale Capital Group has demonstrated strong year-over-year growth, with total revenues increasing to $1.390 billion and net income rising by 19.4% to $364.994 million for the nine months ended September 30, 2025. This performance is underpinned by a 17.1% increase in net earned premiums to $1.160 billion. The company's balance sheet reflects this expansion, with total assets growing and total stockholders' equity improving by 25.7% to $1.865 billion. While reserves for losses have increased, indicating business growth, the company's financial health appears robust.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share KNSL New York Stock Exchange

Filing Documents

• knsl-20250930.htm (10-Q) — 1762KB
• knslexhibit31109302025.htm (EX-31.1) — 10KB
• knslexhibit31209302025.htm (EX-31.2) — 10KB
• knslexhibit32109302025.htm (EX-32.1) — 5KB
• knslexhibit32209302025.htm (EX-32.2) — 5KB
• 0001669162-25-000058.txt ( ) — 8773KB
• knsl-20250930.xsd (EX-101.SCH) — 38KB
• knsl-20250930_cal.xml (EX-101.CAL) — 72KB
• knsl-20250930_def.xml (EX-101.DEF) — 241KB
• knsl-20250930_lab.xml (EX-101.LAB) — 649KB
• knsl-20250930_pre.xml (EX-101.PRE) — 484KB
• knsl-20250930_htm.xml (XML) — 1546KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Consolidated Balance Sheets at September 30, 2025 (Unaudited) and December 31, 2024 4 Consolidated Statements of Income and Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 5 Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for Each Quarter Within the Nine Months Ended September 30, 2025 and 2024 6 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2025 and 2024 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 52

Controls and Procedures

Item 4. Controls and Procedures 53

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 54

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54

Other Information

Item 5. Other Information 54

Exhibits

Item 6. Exhibits 55

Signatures

Signatures 56 1 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that does not directly relate to historical or current fact. These statements may discuss, among others, our future financial performance, our business prospects and strategy, our anticipated financial position, liquidity and capital, dividends and general market and industry conditions. You can identify forward-looking statements by words such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar terms. Forward-looking statements are based on management's current expectations and assumptions about future events, which are subject to uncertainties, risks and changes in circumstances that are difficult to predict. These statements are only predictions and are not guarantees of future performance. Actual results may differ materially from those contemplated by a forward-looking statement. Factors that may cause such differences include, without limitation: the possibility that our loss reserves may be inadequate to cover our actual losses, which could have a material adverse effect on our financial condition, results of operations and cash flows; the inherent uncertainty of models resulting in actual losses that are materially different than our estimates; the failure of any of the loss limitations or exclusions we employ, or change in other claims or coverage issues, having a material adverse effect on our financial condition or results of operations; the inability to obtain reinsurance coverage at reasonable prices and on terms that adequately protect us; the possibility that severe weather conditions and catastrophes, including due to climate change, pandemics and similar events adversely a

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) September 30, December 31, 2025 2024 (in thousands, except share and per share data) Assets Investments: Fixed-maturity securities, available for sale, at fair value (amortized cost: $ 4,219,545 , allowance for credit losses: $ 38 – 2025; $ 3,663,031 and $ 27 – 2024) $ 4,171,238 $ 3,537,563 Equity securities, at fair value (cost: $ 431,110 – 2025; $ 313,722 – 2024) 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 and fees receivable, net of allowance for credit losses of $ 25,388 – 2025; $ 26,926 – 2024 124,061 140,027 Reinsurance recoverables, net of allowance for credit losses of $ 1,086 – 2025; $ 932 – 2024 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 and 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: Common stock, $ 0.01 par value, 400,000,000 shares authorized, 23,376,270 and 23,261,360 shares issued and outstanding at September 30, 2025; 23,294,783 and 23,272,157 shares issued and outstanding at December 31, 2024 234 233 Additional paid-in capital 368,963 361,398 Retained earnings 1,582,259 1,229,136 Accumulated other comprehensive loss ( 36,240 ) ( 97,206 ) Treasury stock, at cost ( 114,910 sha

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View this 10-Q filing on SEC EDGAR