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KNSL Q1 Estimates Beat on Strong Underwriting, Revenues Rise Y/Y
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Key Takeaways
KNSL Q1 EPS of $5.11 beat estimates, rising 37.7% YoY on strong underwriting performance.
Kinsale Capital revenue grew 10.2% on higher premiums, fees, and investment income.
KNSL's combined ratio improved to 77.4, aided by lower catastrophe losses and reserve gains.
Kinsale Capital Group, Inc. (KNSL - Free Report) delivered first-quarter 2026 net operating earnings of $5.11 per share, which outpaced the Zacks Consensus Estimate by 8.7%. The bottom line increased 37.7% year over year.
Operating revenues increased 10.2% year over year to $467 million, which surpassed the Zacks Consensus Estimate by 0.1%.
The quarterly results benefited from growth in net premiums written, increased net investment income and disciplined underwriting supported by efficient capital management. However, these gains were partially offset by elevated operating expenses.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
Gross written premiums of $482 million decreased 0.5% year over year, primarily due to a 28.3% decline in the Commercial Property Division. Net written premiums climbed 5.6% year over year to $403.3million.
Net investment income increased 26.5% year over year to $55.4 million. The increase was primarily driven by growth in the company’s investment portfolio.However, net investment income missed the Zacks Consensus Estimate by 0.5%.
Total expenses increased 5.1% year over year to $327 million due to a rise in underwriting, acquisition and insurance expenses as well as interest expense. Our model estimate was $289.6 million.
Kinsale Capital’s underwriting income was $94.5 milion, up 40% year over year. The increase was driven by growth in net earned premiums, higher favorable development of loss reserves from prior accident years, and lower catastrophe losses. Underwriting income surpassed our model estimate by 14.5%.
The combined ratio improved 470 basis points (bps) year over year to 77.4 compared with the Zacks Consensus Estimate of 79.1. The loss ratio improved 580 bps to 56.3, reflecting lower catastrophe losses and favorable reserve development. The expense ratio deteriorated 110 bps year over year to 21.1.
Financial Update
Kinsale Capital exited the first quarter of 2026 with cash and cash equivalents of $ 223.2 million, which increased 36.7% from the 2025-end level.
As of March 31, 2026, stockholders’ equity increased 0.4% year over year to approximately $1.9 billion.
Book value per share was $85.31 as of March 31, 2026, up 1.1% from the 2025-end level.
Annualized operating return on equity improved 150 bps year over year to 24 % in the reported quarter.
Capital Deployment
KNSL repurchased 0.2 million shares for $62.5 million in the first quarter of 2026. The insurer had $187.5 million remaining under its authorization as of March 31, 2026.
KNSL paid a cash dividend of 25 cents per share in the first quarter of 2026.
Selective Insurance Group (SIGI) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line misses the Zacks Consensus Estimate by 0.5%. Net premiums written (NPW) decreased 1% to $1.3 billion. The figure was on par with our estimate.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remained flat from the year-ago quarter to $11.9 billion. The top line missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income rose 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation’s(PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
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KNSL Q1 Estimates Beat on Strong Underwriting, Revenues Rise Y/Y
Key Takeaways
Kinsale Capital Group, Inc. (KNSL - Free Report) delivered first-quarter 2026 net operating earnings of $5.11 per share, which outpaced the Zacks Consensus Estimate by 8.7%. The bottom line increased 37.7% year over year.
Operating revenues increased 10.2% year over year to $467 million, which surpassed the Zacks Consensus Estimate by 0.1%.
The quarterly results benefited from growth in net premiums written, increased net investment income and disciplined underwriting supported by efficient capital management. However, these gains were partially offset by elevated operating expenses.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
Kinsale Capital Group, Inc. price-consensus-eps-surprise-chart | Kinsale Capital Group, Inc. Quote
KNSL’s Operational Update
Gross written premiums of $482 million decreased 0.5% year over year, primarily due to a 28.3% decline in the Commercial Property Division. Net written premiums climbed 5.6% year over year to $403.3million.
Net investment income increased 26.5% year over year to $55.4 million. The increase was primarily driven by growth in the company’s investment portfolio.However, net investment income missed the Zacks Consensus Estimate by 0.5%.
Total expenses increased 5.1% year over year to $327 million due to a rise in underwriting, acquisition and insurance expenses as well as interest expense. Our model estimate was $289.6 million.
Kinsale Capital’s underwriting income was $94.5 milion, up 40% year over year. The increase was driven by growth in net earned premiums, higher favorable development of loss reserves from prior accident years, and lower catastrophe losses. Underwriting income surpassed our model estimate by 14.5%.
The combined ratio improved 470 basis points (bps) year over year to 77.4 compared with the Zacks Consensus Estimate of 79.1. The loss ratio improved 580 bps to 56.3, reflecting lower catastrophe losses and favorable reserve development. The expense ratio deteriorated 110 bps year over year to 21.1.
Financial Update
Kinsale Capital exited the first quarter of 2026 with cash and cash equivalents of $ 223.2 million, which increased 36.7% from the 2025-end level.
As of March 31, 2026, stockholders’ equity increased 0.4% year over year to approximately $1.9 billion.
Book value per share was $85.31 as of March 31, 2026, up 1.1% from the 2025-end level.
Annualized operating return on equity improved 150 bps year over year to 24 % in the reported quarter.
Capital Deployment
KNSL repurchased 0.2 million shares for $62.5 million in the first quarter of 2026. The insurer had $187.5 million remaining under its authorization as of March 31, 2026.
KNSL paid a cash dividend of 25 cents per share in the first quarter of 2026.
Zacks Rank
KNSL 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 Other Insurers
Selective Insurance Group (SIGI) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line misses the Zacks Consensus Estimate by 0.5%. Net premiums written (NPW) decreased 1% to $1.3 billion. The figure was on par with our estimate.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remained flat from the year-ago quarter to $11.9 billion. The top line missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income rose 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation’s(PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.