Highlights

  • Third quarter net income was USD 98.1 million, or USD 4.36 diluted; non-GAAP net operating earnings were USD 128.3 million.
  • The combined ratio was 75.4% against 74.9%, with a loss ratio of 53.4% and an expense ratio of 22.0%.
  • Gross written premiums were USD 462.9 million, versus USD 486.3 million, and net written premiums were USD 399.1 million.
  • Management announced that Christopher Tangard becomes chief financial officer in March 2027 as Bryan Petrucelli retires.

Kinsale Capital Group, Inc. (NYSE: KNSL) shares closed at USD 364.49 on October 23, 2026, down 6.69%. The specialty insurer filed its quarterly report for the period ended September 30, 2026 on October 22 and held its earnings call on October 23.

Kinsale is a Delaware corporation headquartered at 2025 Staples Mill Road in Richmond, Virginia. It underwrites property and casualty insurance in the excess and surplus lines market in the United States, and its fiscal year ends December 31. Michael Kehoe is Chairman, President and Chief Executive Officer.

Third Quarter 2026 Results

Kinsale reported gross written premiums of USD 462.9 million for the three months ended September 30, 2026, compared with USD 486.3 million a year earlier. Ceded written premiums were USD 63.7 million against USD 81.2 million, and net written premiums were USD 399.1 million against USD 405.1 million. Net earned premiums were USD 423.5 million against USD 411.0 million.

Total revenues were USD 454.8 million against USD 497.5 million, which included a USD 37.8 million negative change in the fair value of equity securities against a USD 23.7 million positive change. Net investment income was USD 58.3 million against USD 49.6 million. Net income was USD 98.1 million, or USD 4.36 per diluted share, compared with USD 141.6 million, or USD 6.09.

For the nine months, net income was USD 386.6 million, or USD 16.97 per diluted share, against USD 365.0 million, or USD 15.67. Net operating earnings were USD 372.3 million against USD 319.0 million.

Underwriting and Investments

The loss ratio was 53.4% against 53.9%, and the expense ratio was 22.0% against 21.0%, for a combined ratio of 75.4% against 74.9%. Annualized return on equity was 19.9% and annualized operating return on equity, a non-GAAP measure, was 26.0%.

On the call, management said the loss ratio improved largely because of higher favorable prior year development, and the expense ratio rose because higher reinsurance retentions lowered ceding commissions. It said the retention ratio increased to 86.2% in the quarter from 83.3%, and described this as an intentional trade to retain more underwriting margin and float.

Management also said bond sales in the quarter had a net pretax earnings impact of USD 37.6 million, or USD 1.67 per diluted share, with no impact on book value, and that diluted operating earnings per share were USD 5.70 excluding that effect.

Market Conditions and Growth

Management said excess and surplus lines conditions in the third quarter remained competitive and largely consistent with the second quarter. It said intense competition in its commercial property division weighed on growth, and that gross written premiums excluding that division were down 0.5%.

Capital and Leadership

Stockholders' equity was USD 1,919.0 million at September 30, 2026. The company declared dividends of USD 0.25 per share in the quarter and repurchased 269,004 shares for USD 101.0 million. In July 2026, the board approved an additional repurchase authorization of up to USD 250.0 million. Cash and cash equivalents were USD 160.5 million, and total investments were USD 5,331.2 million.

On the call, Mr. Kehoe announced the retirement next year of Bryan Petrucelli, the chief financial officer for about a decade, and his election to the board. Christopher Tangard, the chief accounting officer, will become chief financial officer in March 2027.