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Kinsale Capital (KNSL) Q2 Earnings & Revenues Top, Rise Y/Y
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Kinsale Capital Group (KNSL - Free Report) delivered second-quarter 2024 net operating earnings of $3.75 per share, which outpaced the Zacks Consensus Estimate by 6.5%. The bottom line increased 30.4% year over year.
The results reflect continued growth and strong margins.
Shares gained 3.4% in the after-market trading session to reflect the outperformance.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
Operating revenues jumped 45.1% year over year to $378 million. The growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the consensus estimate of $377 million.
Gross written premiums of $529.8 million rose 20.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $523.7 million.
Net written premiums climbed 17.9% year over year to $430.2 million in the quarter. Our estimate was pegged at $414.1 million.
Net investment income increased 48.3% year over year to $35.8 million in the quarter and beat our estimate of $35.5 million. The year-over-year increase was driven by growth in the company's investment portfolio generated primarily from the investment of strong operating cash flows and higher interest rates. The Zacks Consensus Estimate was pegged at $37.7 million.
Total expenses increased 30.6% year over year to $268.7 million due to a rise in losses and loss adjustment expenses, underwriting, acquisition and insurance expenses and other expense. Our estimate was pegged at $280.8 million.
Kinsale Capital’s underwriting income was $76.1 million, which grew 23.6% year over year. The increase was due to a combination of premium growth and lower net commissions. Our estimate was $64.6 million. The combined ratio deteriorated 100 basis points (bps) to 77.7 in the quarter under review. The Zacks Consensus Estimate,
The expense ratio deteriorated 10 bps to 21.1 in the quarter. Our estimate was 21.7, while the Zacks Consensus Estimate was 20.7.
The loss ratio deteriorated 60 bps to 56.6. Our estimate for loss ratio was 59.4 while the Zacks Consensus Estimate was 58.5.
Financial Update
Kinsale Capital exited the second quarter of 2024 with cash and cash equivalents of $171 million, which increased 35% from the 2023-end level.
As of Jun 30, 2024, stockholders’ equity increased 15.7% to $1.2 billion from the 2023-end level. Book value per share was $53.99 as of Jun 30, 2024, up 15.2% from the 2023 end level.
Net operating cash flows were $489.3 million in the first half of 2024, up 15.5% year over year.
Annualized operating return on equity contracted 300 bps year over year to 28.8% in the reported quarter.
Zacks Rank
Kinsale Capital currently carries a Zacks Rank #4 (Sell).
The Travelers Companies (TRV - Free Report) reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%. The bottom line skyrocketed from 6 cents earned in the year-ago quarter, driven by solid underlying results, net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 12.4% from the year-ago quarter to $11.3 billion, primarily driven by higher premiums. The top-line figure, however, missed the Zacks Consensus Estimate by 1%.
Net written premiums increased 8% year over year to a record $11.1 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.4 billion. Travelers witnessed an underwriting loss of $65 million, much narrower than a loss of $640 million incurred in the year-ago quarter. The combined ratio improved 630 bps year over year to 100.2 due to an improvement in the underlying combined ratio, higher net favorable prior-year reserve development and lower catastrophe losses as a percentage of net earned premiums. The Zacks Consensus Estimate was pegged at 97.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year. Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.
Net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion. Combined ratio improved 850 bps from the prior-year quarter’s level to 91.9.
Selective Insurance Group, Inc. (SIGI - Free Report) reported second-quarter 2024 operating loss of $1.10 per share against the Zacks Consensus Estimate of earnings of $1.56. The company had reported an operating income of 99 cents per share in the prior year quarter. The quarterly results reflected poor underwriting performance, unfavorable prior-year casualty reserve development and escalating costs, offset by higher premiums and net investment income.
Total revenues of $1.2 billion increased 15% from the year-ago quarter’s figure, primarily due to higher premiums earned, net investment income and net premiums written. The top line missed the Zacks Consensus Estimate by 1.3%.
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Kinsale Capital (KNSL) Q2 Earnings & Revenues Top, Rise Y/Y
Kinsale Capital Group (KNSL - Free Report) delivered second-quarter 2024 net operating earnings of $3.75 per share, which outpaced the Zacks Consensus Estimate by 6.5%. The bottom line increased 30.4% year over year.
The results reflect continued growth and strong margins.
Shares gained 3.4% in the after-market trading session to reflect the outperformance.
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
Operating revenues jumped 45.1% year over year to $378 million. The growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the consensus estimate of $377 million.
Gross written premiums of $529.8 million rose 20.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $523.7 million.
Net written premiums climbed 17.9% year over year to $430.2 million in the quarter. Our estimate was pegged at $414.1 million.
Net investment income increased 48.3% year over year to $35.8 million in the quarter and beat our estimate of $35.5 million. The year-over-year increase was driven by growth in the company's investment portfolio generated primarily from the investment of strong operating cash flows and higher interest rates. The Zacks Consensus Estimate was pegged at $37.7 million.
Total expenses increased 30.6% year over year to $268.7 million due to a rise in losses and loss adjustment expenses, underwriting, acquisition and insurance expenses and other expense. Our estimate was pegged at $280.8 million.
Kinsale Capital’s underwriting income was $76.1 million, which grew 23.6% year over year. The increase was due to a combination of premium growth and lower net commissions. Our estimate was $64.6 million. The combined ratio deteriorated 100 basis points (bps) to 77.7 in the quarter under review. The Zacks Consensus Estimate,
The expense ratio deteriorated 10 bps to 21.1 in the quarter. Our estimate was 21.7, while the Zacks Consensus Estimate was 20.7.
The loss ratio deteriorated 60 bps to 56.6. Our estimate for loss ratio was 59.4 while the Zacks Consensus Estimate was 58.5.
Financial Update
Kinsale Capital exited the second quarter of 2024 with cash and cash equivalents of $171 million, which increased 35% from the 2023-end level.
As of Jun 30, 2024, stockholders’ equity increased 15.7% to $1.2 billion from the 2023-end level. Book value per share was $53.99 as of Jun 30, 2024, up 15.2% from the 2023 end level.
Net operating cash flows were $489.3 million in the first half of 2024, up 15.5% year over year.
Annualized operating return on equity contracted 300 bps year over year to 28.8% in the reported quarter.
Zacks Rank
Kinsale Capital currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%. The bottom line skyrocketed from 6 cents earned in the year-ago quarter, driven by solid underlying results, net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 12.4% from the year-ago quarter to $11.3 billion, primarily driven by higher premiums. The top-line figure, however, missed the Zacks Consensus Estimate by 1%.
Net written premiums increased 8% year over year to a record $11.1 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.4 billion. Travelers witnessed an underwriting loss of $65 million, much narrower than a loss of $640 million incurred in the year-ago quarter. The combined ratio improved 630 bps year over year to 100.2 due to an improvement in the underlying combined ratio, higher net favorable prior-year reserve development and lower catastrophe losses as a percentage of net earned premiums. The Zacks Consensus Estimate was pegged at 97.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year. Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.
Net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion. Combined ratio improved 850 bps from the prior-year quarter’s level to 91.9.
Selective Insurance Group, Inc. (SIGI - Free Report) reported second-quarter 2024 operating loss of $1.10 per share against the Zacks Consensus Estimate of earnings of $1.56. The company had reported an operating income of 99 cents per share in the prior year quarter. The quarterly results reflected poor underwriting performance, unfavorable prior-year casualty reserve development and escalating costs, offset by higher premiums and net investment income.
Total revenues of $1.2 billion increased 15% from the year-ago quarter’s figure, primarily due to higher premiums earned, net investment income and net premiums written. The top line missed the Zacks Consensus Estimate by 1.3%.