Kinsale Capital Group (KNSL) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 rose 50.1% year-over-year to $114.2 million, driven by higher investment returns, profitable growth, and strong broker submissions, with gross written premiums up 18.8% to $448.6 million.

• Operating earnings per share increased 27% year-over-year, with diluted operating EPS at $4.20 and net operating earnings up 26.9%.

• Underwriting income grew 19.9% to $86.9 million, with a combined ratio of 75.7% for Q3 2024.

• Net investment income surged 46.4% to $39.6 million, supported by higher investment balances and interest rates.

• Annualized return on equity for Q3 2024 was 33.9%, with annualized operating ROE at 29.1%.

Financial highlights

• Net income for the first nine months of 2024 was $305.7 million, up 49.4% year-over-year, with net operating earnings at $267.0 million.

• Gross written premiums for the nine months ended September 30, 2024, rose 21.6% to $1.43 billion.

• Net investment income for the nine months was $108.4 million, up 50.7% year-over-year.

• Book value per share increased to $61.62 at September 30, 2024, from $46.88 at December 31, 2023.

• Total stockholders' equity reached $1.43 billion at September 30, 2024.

Outlook and guidance

• Management expects sufficient liquidity to meet operating needs and capital expenditures for the next 12 months.

• Long-term premium growth is expected in the 10%-20% range, with continued focus on capital efficiency and disciplined underwriting.

• Optimism for future growth in transportation and high-value homeowners divisions, with strong broker submissions as a positive indicator.

• Modest share repurchases planned each quarter, with potential for opportunistic larger buybacks.