Kinsale Capital Group (KNSL) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 rose 27.2% year-over-year to $92.6 million, with diluted EPS of $3.97 and operating EPS up 30.2% to $3.75; gross written premiums increased 20.9% to $529.8 million.

• Combined ratio was 77.7% for Q2 2024, with underwriting income of $76.1 million and annualized operating ROE of 28.8%.

• Net investment income surged 48.3% to $35.8 million, driven by portfolio growth and higher interest rates.

• Strategy emphasizes disciplined underwriting, technology-driven cost control, and focus on smaller E&S accounts.

• Favorable loss experience and conservative reserving practices continue to support strong results.

Financial highlights

• Six-month net income was $191.5 million, up 48.9% year-over-year; net operating earnings for the first half were $169.1 million, up 36.4%.

• Gross written premiums for H1 2024 totaled $978.4 million, a 22.9% increase; net earned premiums rose 29.9% to $642.0 million.

• Net investment income for the six months climbed 53.3% to $68.8 million.

• Book value per share was $53.99 at June 30, 2024, up from $46.88 at December 31, 2023.

• Expense ratio held steady at 21.1% for Q2 2024.

Outlook and guidance

• Management expects continued premium growth and market share gains, supported by strong broker activity and favorable pricing.

• Sufficient liquidity and capital resources are in place to support ongoing operations and growth initiatives.

• Submission growth in the low 20% range is seen as a positive leading indicator.

• Cautious approach to reserving and pricing, especially in longer-tailed lines, to stay ahead of loss trends.

• No major changes expected in investment strategy; monitoring Fed policy and interest rates.