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Kinsale Capital (KNSL) Q1 Earnings & Revenues Beat Estimates
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Kinsale Capital Group (KNSL - Free Report) delivered first-quarter 2022 net operating earnings of $1.63 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line improved 46.8% year over year.
Results benefited from the rate increase, focus on disciplined underwriting and cost management.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
Total revenues rose 44.4% year over year to $187.8 million. The growth can primarily be attributed to a rise in premiums and higher net investment income. The top line surpassed the Zacks Consensus Estimate of $178 million.
Gross written premiums of $245.5 million rose 45.4% year over year, driven by higher submission activity from brokers and a continued favorable pricing environment. Net written premiums climbed 50% year over year to $216.5 million in the quarter.
Net investment income increased 30.9% year over year to $9.1 million in the quarter. The upside came on the back of growth in the investment portfolio.
Total expenses increased 43.1% year over year to $141.4 million due to a rise in losses and loss adjustment expenses and underwriting, acquisition and insurance expenses.
Kinsale Capital’s underwriting income of $37.5 million soared 52.4% year over year, largely on strong premium growth and lower relative expenses. The combined ratio improved 100 basis points (bps) to 79 in the quarter under review, reflecting disciplined underwriting and technology-driven low costs.
While the expense ratio improved 130 bps to 21.4 in the quarter, the loss ratio deteriorated 30 bps to 57.4.
Financial Update
Kinsale Capital exited the first quarter with cash and cash equivalents of $104.2 million, which decreased 13.9% from the 2021-end level. As of Mar 31, 2022, the credit facility was $42.7 million, up 0.1% from the level at 2021 end.
As of Mar 31, 2022, stockholders’ equity declined 4.8% to $699 million from the 2020-end level.
Annualized operating return on equity expanded 450 bps year over year to 22.1% in the reported quarter.
Of the insurance industry players that have reported first-quarter results so far, The Travelers Companies (TRV - Free Report) and RLI Corporation (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings, while The Progressive Corporation (PGR - Free Report) missed the mark.
Travelers reported first-quarter 2022 core income of $4.22 per share, which beat the Zacks Consensus Estimate by 14% and increased 54.6% year over year. Total revenues increased 6.8% from the year-ago quarter to $8.8 billion, primarily due to higher premiums and fee income but missed the consensus estimate. Travelers’ combined ratio deteriorated 530 bps year over year to 91.3.
RLI’s first-quarter 2022 operating earnings of $1.43 per share beat the Zacks Consensus Estimate by 40.2% and improved 64.4% from the prior-year quarter. Operating revenues were $287 million, up 17.1% year over year and beat the Zacks Consensus Estimate by 0.8%. RLI’s gross premiums written increased 22% year over year to $359.2 million. The combined ratio improved 900 bps year over year to 77.9.
Progressive’s first-quarter 2022 earnings per share of $1.12 missed the Zacks Consensus Estimate of $1.24 and declined 34.9% from the year-ago quarter. Net premiums written were $13.2 billion in the quarter, up 12% from $11.7 billion a year ago. Progressive’s combined ratio deteriorated 520 bps from the prior-year quarter to 94.7.
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Kinsale Capital (KNSL) Q1 Earnings & Revenues Beat Estimates
Kinsale Capital Group (KNSL - Free Report) delivered first-quarter 2022 net operating earnings of $1.63 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line improved 46.8% year over year.
Results benefited from the rate increase, focus on disciplined underwriting and cost management.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
Kinsale Capital Group, Inc. price-consensus-eps-surprise-chart | Kinsale Capital Group, Inc. Quote
Operational Update
Total revenues rose 44.4% year over year to $187.8 million. The growth can primarily be attributed to a rise in premiums and higher net investment income. The top line surpassed the Zacks Consensus Estimate of $178 million.
Gross written premiums of $245.5 million rose 45.4% year over year, driven by higher submission activity from brokers and a continued favorable pricing environment. Net written premiums climbed 50% year over year to $216.5 million in the quarter.
Net investment income increased 30.9% year over year to $9.1 million in the quarter. The upside came on the back of growth in the investment portfolio.
Total expenses increased 43.1% year over year to $141.4 million due to a rise in losses and loss adjustment expenses and underwriting, acquisition and insurance expenses.
Kinsale Capital’s underwriting income of $37.5 million soared 52.4% year over year, largely on strong premium growth and lower relative expenses. The combined ratio improved 100 basis points (bps) to 79 in the quarter under review, reflecting disciplined underwriting and technology-driven low costs.
While the expense ratio improved 130 bps to 21.4 in the quarter, the loss ratio deteriorated 30 bps to 57.4.
Financial Update
Kinsale Capital exited the first quarter with cash and cash equivalents of $104.2 million, which decreased 13.9% from the 2021-end level. As of Mar 31, 2022, the credit facility was $42.7 million, up 0.1% from the level at 2021 end.
As of Mar 31, 2022, stockholders’ equity declined 4.8% to $699 million from the 2020-end level.
Annualized operating return on equity expanded 450 bps year over year to 22.1% in the reported quarter.
Zacks Rank
Kinsale Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other P&C Insurers
Of the insurance industry players that have reported first-quarter results so far, The Travelers Companies (TRV - Free Report) and RLI Corporation (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings, while The Progressive Corporation (PGR - Free Report) missed the mark.
Travelers reported first-quarter 2022 core income of $4.22 per share, which beat the Zacks Consensus Estimate by 14% and increased 54.6% year over year. Total revenues increased 6.8% from the year-ago quarter to $8.8 billion, primarily due to higher premiums and fee income but missed the consensus estimate. Travelers’ combined ratio deteriorated 530 bps year over year to 91.3.
RLI’s first-quarter 2022 operating earnings of $1.43 per share beat the Zacks Consensus Estimate by 40.2% and improved 64.4% from the prior-year quarter. Operating revenues were $287 million, up 17.1% year over year and beat the Zacks Consensus Estimate by 0.8%. RLI’s gross premiums written increased 22% year over year to $359.2 million. The combined ratio improved 900 bps year over year to 77.9.
Progressive’s first-quarter 2022 earnings per share of $1.12 missed the Zacks Consensus Estimate of $1.24 and declined 34.9% from the year-ago quarter. Net premiums written were $13.2 billion in the quarter, up 12% from $11.7 billion a year ago. Progressive’s combined ratio deteriorated 520 bps from the prior-year quarter to 94.7.