Kinsale Capital Q1 Earnings Beat Estimates on Solid Underwriting

Kinsale Capital KNSL delivered first-quarter 2025 net operating earnings of $3.71 per share, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line increased 6% year over year. 

The results reflected the continued execution of the company’s strategy of disciplined underwriting and technology-enabled low costs. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

KNSL’s Operational Update

Operating revenues jumped 13.4% year over year to $423 million. The growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues, however, missed the consensus estimate by 0.2%.

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 increased 7.9% year over year to $484.3 million, driven by strong submission flow from brokers and a favorable yet increasingly competitive pricing environment. Our estimate was pinned at $519.7 million. 

Net written premiums climbed 8.7% year over year to $381.7 million in the quarter. Our estimate was pegged at $412.8 million. 

Net investment income increased 33.1% year over year to $43.1 million in the quarter and beat our estimate of $42.5 million. The year-over-year increase was driven by growth in the investment portfolio, generated primarily from the investment of strong operating cash flows and higher interest rates. The Zacks Consensus Estimate was pegged at $43.8 million. 

Total expenses rose 21% year over year to $311 million due to a rise in losses and loss adjustment expenses, underwriting, acquisition and insurance expenses and other expenses. Our estimate was pegged at $327.5 million. 

Kinsale Capital’s underwriting income was $67.5 million, which grew 3.7% year over year. This increase was due to continued growth in the business, offset in part by higher catastrophe losses. Our estimate was pinned at $56.4 million.

The combined ratio deteriorated 260 basis points (bps) to 82.1 in the quarter under review. The Zacks Consensus Estimate was 87. Our estimate was 85.1. 

The expense ratio deteriorated 70 bps to 20 in the quarter. Our estimate was 22.4, while the Zacks Consensus Estimate was 23.2.

The loss ratio deteriorated 330 bps to 62.1. Our estimate for loss ratio was 61.9, while the Zacks Consensus Estimate was 66.

KNSL’s Financial Update

Kinsale Capital exited first-quarter 2025 with cash and invested assets of $4.3 million, which increased 4.9% from the 2024-end level. 

As of March 31, 2025, stockholders’ equity increased 6.7% to $1.6 billion from the 2024-end level. 

Book value per share was $67.92 as of March 31, 2025, up 6.5% from the 2024-end level. 

Net operating cash flows were $229.8 million in the first quarter of 2025, up 9.2% year over year. 

Annualized operating return on equity contracted 640 bps year over year to 22.5% in the first quarter of 2025.

Share Repurchase

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

KNSL’s Zacks Rank

KNSL currently has 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 reported first-quarter 2025 core income of $1.91 per share, which beat the Zacks Consensus Estimate of 69 cents. The bottom line, however, declined 29.3% year over year. Travelers’ total revenues increased 6.1% from the year-ago quarter to $11.9 billion, primarily driven by higher premiums, net investment income and other revenues. The top-line figure, however, missed the Zacks Consensus Estimate of $12.1 billion. 

Net written premiums increased 3% year over year to a record $10.5 billion, driven by strong growth across all three segments. Our estimate was $10.2 billion. Underlying underwriting income of $1.6 billion improved more than 30% year over year, driven by strong net earned premiums.

The consolidated underlying combined ratio of 84.8 improved 290 bps year over year. The combined ratio deteriorated 860 bps year over year to 102.5 due to higher catastrophe losses. The Zacks Consensus Estimate was pegged at 105.

The Progressive Corporation’s PGR first-quarter 2025 earnings per share of $4.65 missed the Zacks Consensus Estimate of $4.72. The bottom line, however, increased 24.6% year over year. Operating revenues increased 20.7% year over year to $20.6 billion, driven by 20.2% higher net premiums earned, a 31.7% increase in net investment income, a 21.6% rise in fees and 32.1% higher service revenues. The top line beat the Zacks Consensus Estimate of $20.4 billion.

Net premiums earned grew 20% to $19.4 billion. The reported figure surpassed the Zacks Consensus Estimate of $19.2 billion. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 10 bps from the prior-year quarter’s level to 86.

W.R. Berkley Corporation’s WRB first-quarter 2025 operating income of $1.01 per share matched the Zacks Consensus Estimate. The bottom line, however, declined 2.9% year over year. The insurer suffered due to higher catastrophe losses.
Operating revenues were $3.5 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 2.2%.

W.R. Berkley’s net premiums written were $3.1 billion, up 9.9% year over year. The figure was higher than our estimate of $3 billion.

Catastrophe losses of $111.1 million in the quarter were wider than the $30 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 210 bps year over year to 90.9. The Zacks Consensus Estimate was 91.

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