Kinsale Capital Posts $112.6M Q1 Profit as Net Premiums Jump 11%

Kinsale Capital Group, Inc. (NYSE: KNSL), a specialty insurance company focused on excess and surplus lines, reported net income of $112.6 million for the three months ended March 31, 2026, up 26% from $89.2 million in the same period a year earlier. Diluted earnings per share rose to $4.88 from $3.83. Read more earnings reports.

Net earned premiums climbed 11% to $406.9 million from $365.8 million, driven by a 6% increase in net written premiums to $403.3 million from $381.7 million. Gross written premiums edged down slightly to $482.0 million from $484.3 million, while ceded premiums fell to $78.8 million from $102.6 million as the company retained more risk.

Total revenues rose 10% to $466.7 million from $423.4 million. Net investment income climbed 26% to $55.4 million from $43.8 million, reflecting higher interest rates on the company's $5.1 billion investment portfolio. The portfolio includes $4.4 billion in fixed-maturity securities and $644.5 million in equity securities.

Losses and loss adjustment expenses totaled $235.1 million, up marginally from $233.0 million. The company recorded $18.7 million in favorable development on prior-year claims, compared to $14.6 million a year earlier. Underwriting, acquisition and insurance expenses rose 18% to $88.2 million from $74.9 million.

Total expenses increased 5% to $327.0 million from $311.1 million. Income before taxes jumped 24% to $139.7 million from $112.3 million.

The company's combined ratio — a key insurance profitability metric calculated as losses and expenses divided by earned premiums — improved to approximately 79% from 84% in the prior-year quarter.

Kinsale returned $68.3 million to shareholders during the quarter through $62.9 million in share repurchases and $5.8 million in dividends. The company declared a quarterly dividend of $0.25 per share, up from $0.17 per share a year earlier.

Balance Sheet and Cash Flow

Total assets increased to $6.2 billion at March 31, 2026 from $6.0 billion at December 31, 2025. Stockholders' equity rose to $2.0 billion from $1.96 billion. Gross reserves for unpaid losses and loss adjustment expenses increased to $3.1 billion from $2.9 billion.

The company generated $248.9 million in operating cash flow during the quarter, up from $229.8 million in the prior-year period. Investing activities used $114.4 million in cash, primarily for securities purchases, while financing activities consumed $74.5 million, largely for share buybacks and dividend payments.

The company's fixed-maturity portfolio carried $106.3 million in gross unrealized losses at quarter-end, up from $86.5 million at year-end, as rising interest rates pressured bond valuations. These unrealized losses contributed to a $34.9 million decline in accumulated other comprehensive income.

Key Financials