Kinsale Capital Group Inc (NYSE:KNSL) Reports Strong Q3 2025 Earnings Beat

Kinsale Capital Group Inc (NYSE:KNSL) reported financial results for the third quarter of 2025 that surpassed analyst expectations, delivering robust growth in both earnings and premium volume. The specialty insurer posted strong underwriting results and continued its trend of favorable reserve development, contributing to another quarter of double-digit performance improvements.

Earnings and Revenue Performance

The company's third-quarter results exceeded Wall Street forecasts on key metrics. Kinsale reported net operating earnings of $121.2 million, or $5.21 per diluted share, representing a 24% increase compared to the $4.20 per share reported in the same quarter last year. This performance comfortably beat analyst estimates of $4.97 per share.

Revenue momentum was equally impressive, with gross written premiums growing 8.4% to $486.3 million. The company's top-line results also exceeded expectations, coming in ahead of revenue estimates for the quarter.

Key financial highlights from the quarter include:

• Diluted operating earnings per share of $5.21, up 24.0% year-over-year
• Gross written premiums of $486.3 million, an 8.4% increase
• Net investment income grew 25.1% to $49.6 million
• Underwriting income of $105.7 million with a combined ratio of 74.9%

Underwriting Strength and Premium Growth

Kinsale demonstrated continued underwriting discipline while expanding its premium base. The company's combined ratio of 74.9% improved from 75.7% in the prior-year period, reflecting efficient operations and favorable development of loss reserves from prior accident years. The loss ratio for the quarter was 53.9%, benefiting from lower catastrophe losses compared to the third quarter of 2024.

Premium growth was driven by strong submission flow across most divisions, though the company noted some headwinds in its Commercial Property Division, which declined 7.9% for the quarter due to increased competition and lower rates. Excluding this division, gross written premiums increased 12.3% for the quarter.

Investment Income and Capital Management

The company's investment portfolio continued to deliver strong returns, with net investment income increasing 25.1% to $49.6 million. This growth was driven by the expansion of the investment portfolio, funded largely by operating cash flows. Cash and invested assets totaled $4.9 billion at quarter-end, up from $4.1 billion at December 31, 2024.

Kinsale maintained an active capital return program, repurchasing 45,627 shares of common stock during the quarter at an average price of $438.33 per share, for a total cost of $20.0 million.

Market Reaction and Outlook

Despite the earnings beat, the stock showed limited immediate reaction in after-market trading. This muted response may reflect investor expectations that were already priced into the stock following recent performance, or potentially concerns about the competitive pressures noted in the commercial property segment.

Looking ahead, analysts project continued growth for Kinsale, with estimates for the fourth quarter of 2025 pointing to revenue of approximately $468.3 million. For the full year 2025, analysts anticipate revenue of approximately $1.83 billion.

Chairman and CEO Michael P. Kehoe expressed confidence in the company's strategy, stating, "Our business continues to produce strong results across the market cycle as we execute our model of disciplined underwriting and technology-enabled expense management. We remain confident in our strategy and our ability to deliver long-term value to our shareholders."

For more detailed earnings analysis and future estimates, visit the KNSL earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author holds no position in KNSL stock. Readers should conduct their own research and consult with a financial advisor before making investment decisions.