Kinsale Capital Group, Inc. Reports 2025 Fourth Quarter and Year-End Results

RICHMOND, Va.--( BUSINESS WIRE)--Kinsale Capital Group, Inc. (NYSE: KNSL) reported net income of $138.6 million, $5.99 per diluted share, for the fourth quarter of 2025 compared to $109.1 million, $4.68 per diluted share, for the fourth quarter of 2024. Net income was $503.6 million, $21.65 per diluted share, for the year ended December 31, 2025 compared to $414.8 million, $17.78 per diluted share, for the year ended December 31, 2024. Net income included after-tax catastrophe losses of $2.3 million in the fourth quarter of 2025 compared to $6.2 million in the fourth quarter of 2024. For the years ended December 31, 2025 and 2024, net income included after-tax catastrophe losses of $24.0 million and $20.2 million, respectively.

Net operating earnings (1) were $134.6 million, $5.81 per diluted share, for the fourth quarter of 2025 compared to $107.8 million, $4.62 per diluted share, for the fourth quarter of 2024. Net operating earnings (1) were $453.7 million, $19.51 per diluted share, for the year ended December 31, 2025 compared to $374.8 million, $16.06 per diluted share, for the year ended December 31, 2024.

Highlights for the fourth quarter of 2025 included:

Highlights for the full year of 2025 included:

"We delivered another strong quarter to close out 2025, marked by exceptional profitability resulting from continued disciplined underwriting and technology-enabled low costs in a competitive market. We remain confident that the resilience of our model positions us to deliver long-term value for our stockholders throughout the market cycle," said Chairman and Chief Executive Officer, Michael P. Kehoe.

Results of Operations

Underwriting Results

Gross written premiums were $451.1 million for the fourth quarter of 2025 compared to $443.3 million for the fourth quarter of 2024, an increase of 1.8%. Gross written premiums were $2.0 billion for the year ended December 31, 2025 compared to $1.9 billion for the year ended December 31, 2024, an increase of 5.7%. Gross written premiums in the Commercial Property Division, the Company’s largest division, declined 28.3% in the fourth quarter and 17.9% for the year ended December 31, 2025, compared to the prior-year periods, reflecting lower rates and increased competition, including from standard carriers. Excluding the Commercial Property Division, gross written premiums increased 10.2% for the quarter and 13.3% for the full year compared to the prior-year periods, driven by continued strong submission flow across most divisions.

Net written premiums were $370.6 million for the fourth quarter of 2025 compared to $346.1 million for the fourth quarter of 2024, an increase of 7.1%. Net written premiums were $1.6 billion for the year ended December 31, 2025 compared to $1.5 billion for the year ended December 31, 2024, an increase of 9.4%. Growth in net written premiums during the fourth quarter and year ended December 31, 2025 over the prior-year periods was largely due to higher gross written premiums and an increase in the retention on the Company’s reinsurance treaties.

Underwriting income (2) was $120.6 million, resulting in a combined ratio (5) of 71.7%, for the fourth quarter of 2025, compared to $97.9 million, and a combined ratio (5) of 73.4% for the same period last year. The increase in underwriting income (2) for the fourth quarter of 2025 was due to continued growth in the business, higher favorable development of loss reserves from prior accident years and lower catastrophe losses. Loss (3) and expense (4) ratios were 50.1% and 21.6%, respectively, for the fourth quarter of 2025 compared to 52.3% and 21.1% for the fourth quarter of 2024. Favorable development of reserves from prior accident years was $17.0 million, or 4.0 points, for the fourth quarter of 2025 primarily within property lines of business and $9.6 million, or 2.6 points, for the fourth quarter of 2024. The loss ratio for the fourth quarter of 2025 included 0.7 points of net catastrophe losses. The loss ratio for the fourth quarter of 2024 included 2.2 points of net catastrophe losses, primarily related to Hurricane Milton.

Underwriting income (2) was $389.2 million, resulting in a combined ratio (5) of 75.9%, for the year ended December 31, 2025, compared to $325.9 million, and a combined ratio (5) of 76.4% for the prior year. The increase in underwriting income (2) for the year ended December 31, 2025 was largely due to continued growth in the business and higher favorable development of loss reserves from prior accident years offset in part by higher catastrophe losses incurred during the year. Loss (3) and expense (4) ratios were 55.1% and 20.8%, respectively, for the year ended December 31, 2025 compared to 55.8% and 20.6%, respectively, for the year ended December 31, 2024. Favorable development of reserves from prior accident years was $62.8 million, or 3.9 points, for the year ended December 31, 2025 primarily within property lines of business and $37.7 million, or 2.7 points, for the year ended December 31, 2024. The loss ratio for the year ended December 31, 2025 included 1.9 points of net catastrophe losses primarily related to the Palisades Fire. The loss ratio for the year ended December 31, 2024 included 1.8 points of net catastrophe losses, primarily related to Hurricanes Milton, Helene and Francine and tornadoes in the Midwest.

Summary of Operating Results

The Company’s operating results for the three months and years ended December 31, 2025 and 2024 are summarized as follows:

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

($ in thousands)

Gross written premiums

451,123

443,281

1,977,171

1,870,341

Ceded written premiums

(80,571

)

(97,160

)

(361,154

)

(392,993

)

Net written premiums

370,552

346,121

1,616,017

1,477,348

Net earned premiums

415,482

359,739

1,575,842

1,350,470

Fee income

10,059

8,546

40,714

34,118

Losses and loss adjustment expenses

213,196

192,548

890,693

772,899

Underwriting, acquisition and insurance expenses

91,764

77,848

336,696

285,808

Underwriting income (2)

120,581

97,889

389,167

325,881

Loss ratio (3)

50.1

52.3

55.1

55.8

Expense ratio (4)

21.6

21.1

20.8

20.6

Combined ratio (5)

71.7

73.4

75.9

76.4

Annualized return on equity (6)

29.0

29.9

29.3

32.3

Annualized operating return on equity (7)

28.2

29.6

26.4

29.2

(1)

Net operating earnings is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.

(2)

Underwriting income is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.

(3)

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to the sum of net earned premiums and fee income.

(4)

Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income.

(5)

The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding.

(6)

Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

(7)

Annualized operating return on equity is net operating earnings (a non-GAAP financial measure) expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

The following tables summarize losses incurred for the current accident year and the development of prior accident years for the three months and years ended December 31, 2025 and 2024:

Three Months Ended

December 31, 2025

December 31, 2024

Losses and Loss Adjustment Expenses

% of Sum of Earned Premiums and Fee Income

Losses and Loss Adjustment Expenses

% of Sum of Earned Premiums and Fee Income

Loss ratio:

($ in thousands)

Current accident year

227,309

53.4

194,226

52.7

Current accident year - catastrophe losses

2,851

0.7

7,905

2.2

Effect of prior accident year development

(16,964

)

(4.0

(9,583

)

(2.6

Total

213,196

50.1

192,548

52.3

Year Ended

December 31, 2025

December 31, 2024

Losses and Loss Adjustment Expenses

% of Sum of Earned Premiums and Fee Income

Losses and Loss Adjustment Expenses

% of Sum of Earned Premiums and Fee Income

Loss ratio:

($ in thousands)

Current accident year

923,160

57.1

785,036

56.7

Current accident year - catastrophe losses

30,350

1.9

25,518

1.8

Effect of prior accident year development

(62,817

)

(3.9

(37,655

)

(2.7

Total

890,693

55.1

772,899

55.8

Investment Results

Net investment income was $52.3 million in the fourth quarter of 2025 compared to $41.9 million in the fourth quarter of 2024, an increase of 24.9%. Net investment income was $192.2 million for the full year of 2025 compared to $150.3 million for the full year of 2024, an increase of 27.9%. These increases were driven by growth in the Company's investment portfolio generated primarily from the investment of strong operating cash flows since December 31, 2024. The Company’s investment portfolio, excluding cash and cash equivalents, had a gross investment return (8) of 4.4% for both the years ended December 31, 2025 and 2024. Funds are generally invested conservatively in high quality securities, including government agency, asset- and mortgage-backed securities, and municipal and corporate bonds with an average credit quality of "AA-." The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.0 years and 3.0 years at December 31, 2025 and 2024, respectively. Cash and invested assets totaled $5.2 billion at December 31, 2025 compared to $4.1 billion at December 31, 2024.

(8)

Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of average beginning and ending book values of those investments during the period.

Capital Return to Stockholders

During the fourth quarter of 2025, the Company repurchased 119,752 shares of its common stock in the open market at an average price of $417.52 per share for a total cost of $50.0 million, exhausting the initial $100 million share repurchase authorization. In December 2025, the Company announced a new $250 million share repurchase authorization.

In February 2026, the Company's Board of Directors declared a cash dividend of $0.25 per share of common stock, a 47.1% increase from the prior cash dividend, reflecting continued confidence in the Company’s financial position and capital generation abilities.

The new share repurchase authorization and increased dividend return excess capital to stockholders while maintaining a conservative capital position for the Company's business.

Other

The effective tax rates for the years ended December 31, 2025 and 2024 were 20.6% and 19.4%, respectively. The effective tax rates were lower than the federal statutory rate primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income. The effective tax rate was higher for the full year of 2025 compared to the full year of 2024 due primarily to a lower volume of stock option exercises.

Stockholders' equity was $2.0 billion at December 31, 2025, compared to $1.5 billion at December 31, 2024. Book value per share was $84.66 at December 31, 2025 compared to $63.75 at December 31, 2024. Operating return on equity was 26.4% for the full year of 2025, a decrease from 29.2% for the full year of 2024. The decrease was due primarily to higher average stockholders' equity as a result of profitable growth and an increase in the fair value of the Company's investment portfolio offset in part by share repurchases.

Non-GAAP Financial Measures

Net Operating Earnings

Net operating earnings is defined as net income excluding the effects of the change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and the change in allowance for credit losses on investments, after taxes. Management believes the exclusion of these items provides a useful comparison of the Company's underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-GAAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.

For the three months and years ended December 31, 2025 and 2024, net income and diluted earnings per share reconcile to net operating earnings and diluted operating earnings per share as follows:

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

($ in thousands, except per share data)

Net operating earnings:

Net income

138,620

109,094

503,614

414,843

Adjustments:

Change in the fair value of equity securities, before taxes

(3,460

)

(1,496

)

(58,836

)

(43,367

)

Income tax expense (1)

727

314

12,356

9,107

Change in fair value of equity securities, after taxes

(2,733

)

(1,182

)

(46,480

)

(34,260

)

Net realized investment gains, before taxes

(1,558

)

(94

)

(4,390

)

(6,831

)

Income tax expense (1)

327

922

1,435

Net realized investment gains, after taxes

(1,231

)

(74

)

(3,468

)

(5,396

)

Change in allowance for credit losses on investments, before taxes

)

(36

)

(526

)

Income tax expense (1)

—

110

Change in allowance for credit losses on investments, after taxes

)

(28

)

(416

)

Net operating earnings

134,649

107,810

453,668

374,771

Diluted operating earnings per share:

Diluted earnings per share

5.99

4.68

21.65

17.78

Change in fair value of equity securities, after taxes, per share

(0.12

)

(0.05

)

(2.00

)

(1.47

)

Net realized investment gains, after taxes, per share

(0.05

)

—

(0.15

)

(0.23

)

Change in allowance for credit losses on investments, after taxes, per share

—

(0.02

)

Diluted operating earnings per share (2)

5.81

4.62

19.51

16.06

Operating return on equity:

Average equity (3)

1,912,400

1,459,255

1,721,572

1,285,197

Annualized return on equity (4)

29.0

29.9

29.3

32.3

Annualized operating return on equity (5)

28.2

29.6

26.4

29.2

(1)

Income taxes on adjustments to reconcile net income to net operating earnings use a 21% effective tax rate.

(2)

Diluted operating earnings per share may not add due to rounding.

(3)

Average equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two.

(4)

Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

(5)

Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Underwriting Income

Underwriting income is defined as net income excluding net investment income, the change in the fair value of equity securities, net realized investment gains and losses, the change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. The Company uses underwriting income as an internal performance measure in the management of its operations because the Company believes it gives management and users of the Company's financial information useful insight into the Company's results of operations and underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.

For the three months and years ended December 31, 2025 and 2024, net income reconciles to underwriting income as follows:

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Net income

138,620

109,094

503,614

414,843

Income tax expense

36,204

29,557

130,688

99,873

Income before income taxes

174,824

138,651

634,302

514,716

Net investment income

(52,296

)

(41,863

)

(192,192

)

(150,287

)

Change in fair value of equity securities

(3,460

)

(1,496

)

(58,836

)

(43,367

)

Net realized investment gains

(1,558

)

(94

)

(4,390

)

(6,831

)

Change in allowance for credit losses on investments

)

(36

)

(526

)

Interest expense

2,982

2,559

10,646

10,134

Other expenses (6)

505

517

1,650

3,968

Other income

(407

)

(349

)

(2,015

)

(1,926

)

Underwriting income

120,581

97,889

389,167

325,881

(6)

Other expenses includes primarily corporate expenses not allocated to the Company's insurance operations.

Conference Call

Kinsale Capital Group will hold a conference call to discuss this press release on Friday, February 13, 2026, at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (800) 715-9871, conference ID# 6520221, or via the Internet by going to www.kinsalecapitalgroup.com and clicking on the "Investor Relations" link. A replay of the call will be available on the website.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About Kinsale Capital Group, Inc.

Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Income and Comprehensive Income

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Revenues

(in thousands, except per share data)

Gross written premiums

451,123

443,281

1,977,171

1,870,341

Ceded written premiums

(80,571

)

(97,160

)

(361,154

)

(392,993

)

Net written premiums

370,552

346,121

1,616,017

1,477,348

Change in unearned premiums

44,930

13,618

(40,175

)

(126,878

)

Net earned premiums

415,482

359,739

1,575,842

1,350,470

Fee income

10,059

8,546

40,714

34,118

Net investment income

52,296

41,863

192,192

150,287

Change in fair value of equity securities

3,460

1,496

58,836

43,367

Net realized investment gains

1,558

4,390

6,831

Change in allowance for credit losses on investments

)

526

Other income

407

349

2,015

1,926

Total revenues

483,271

412,123

1,873,987

1,587,525

Expenses

Losses and loss adjustment expenses

213,196

192,548

890,693

772,899

Underwriting, acquisition and insurance expenses

91,764

77,848

336,696

285,808

Interest expense

2,982

2,559

10,646

10,134

Other expenses

505

517

1,650

3,968

Total expenses

308,447

273,472

1,239,685

1,072,809

Income before income taxes

174,824

138,651

634,302

514,716

Income tax expense

36,204

29,557

130,688

99,873

Net income

138,620

109,094

503,614

414,843

Other comprehensive income (loss)

Change in unrealized gains (losses) on available-for-sale investments, net of taxes

5,548

(50,455

)

66,514

(2,589

)

Total comprehensive income

144,168

58,639

570,128

412,254

Earnings per share:

Basic

6.01

4.71

21.76

17.92

Diluted

5.99

4.68

21.65

17.78

Weighted-average shares outstanding:

Basic

23,056

23,164

23,140

23,153

Diluted

23,161

23,330

23,259

23,332

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

December 31, 2025

December 31, 2024

(in thousands)

Assets

Investments:

Fixed-maturity securities at fair value

4,341,450

3,537,563

Equity securities at fair value

626,399

398,359

Real estate investments, net

55,236

15,045

Short-term investments

3,864

3,714

Total investments

5,026,949

3,954,681

Cash and cash equivalents

163,361

113,213

Investment income due and accrued

30,971

27,366

Premiums receivable, net

124,593

140,027

Reinsurance recoverables, net

394,329

337,891

Ceded unearned premiums

44,506

52,736

Deferred policy acquisition costs, net of ceding commissions

118,737

109,263

Indefinite-lived intangible assets

3,538

Deferred income tax asset, net

42,191

60,215

Other assets

94,386

87,774

Total assets

6,043,561

4,886,704

Liabilities & Stockholders' Equity

Liabilities:

Reserves for unpaid losses and loss adjustment expenses

2,890,870

2,285,668

Unearned premiums

860,394

828,449

Payable to reinsurers

34,385

43,959

Accounts payable and accrued expenses

66,301

55,159

Debt

224,397

184,122

Other liabilities

7,631

5,786

Total liabilities

4,083,978

3,403,143

Stockholders' equity

1,959,583

1,483,561

Total liabilities and stockholders' equity

6,043,561

4,886,704