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KNSL's Q2 Earnings, Revenues Beat Estimates, Premiums Rise Y/Y

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Key Takeaways

  • Kinsale Capital reported Q2 net operating EPS of $4.78, up 27.5% and 8.4% above the consensus mark.
  • KNSL's revenues rose 16.7% to $441M, driven by premiums, fee income, and net investment income.
  • Underwriting income increased 25.5% to $95.5M, with the combined ratio improving 190 bps to 75.8.

Kinsale Capital Group (KNSL - Free Report) delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. The results reflected the continued execution of the company’s strategy of disciplined underwriting

KNSL’s Operational Update

Operating revenues increased 22.2% year over year to $470 million. Growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the Zacks Consensus Estimate of $434 million. 

Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise

Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise

Kinsale Capital Group, Inc. price-consensus-eps-surprise-chart | Kinsale Capital Group, Inc. Quote

Gross written premiums of $555.5 million rose 4.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $623.1 million.

Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million. 

Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 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 $47.1 million.

Total expenses increased 12.2% year over year to $301.5 million due to a rise in losses and loss adjustment expenses, underwriting, acquisition and insurance expenses. Our estimate was pegged at $299.2 million. 

Kinsale Capital’s underwriting income was $95.5 million, which grew 25.5% year over year. The increase was due to a combination of premium growth and lower net commissions. Our estimate was $85.2 million.

The combined ratio improved 190 basis points (bps) to 75.8 in the quarter under review. The Zacks Consensus Estimate was 78. Our estimate was 77.5. 
 
The expense ratio improved 40 bps to 20.7 in the quarter. Our estimate was 22.3, while the Zacks Consensus Estimate was 20.8.

The loss ratio improved 150 bps to 55.1. Our estimate for the loss ratio was 55.2, while the Zacks Consensus Estimate was 57.

Financial Update

Kinsale Capital exited the second quarter of 2025 with cash and cash equivalents of $138 million, which increased 21.2% from the 2024-end level. 

As of June 30, 2025, stockholders’ equity increased 16.1% to $1.7 billion from the 2024-end level.  Book value per share was $73.93 as of June 30, 2025, up 16% from the 2024-end level.

Net operating cash flows were $498.8 million in the first half of 2025, up 1.95% year over year.

Annualized operating return on equity contracted 180 bps year over year to 27% in the reported quarter.

Share Repurchase

KNSL repurchased $10 million worth of shares in the second quarter of 2025.

KNSL’s Zacks Rank

KNSL currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

First American Financial (FAF - Free Report) reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.

Chubb Limited (CB - Free Report) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.

RLI Corp. (RLI - Free Report) reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%.  The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net investment income increased 16% year over year to $39.4 million, which is in line with our estimate. The Zacks Consensus Estimate was pegged at $38.9 million. The investment portfolio’s total return was 2.9% in the quarter.

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