Kinsale Capital Group (KNSL) Q4 2024 earnings summary

Executive summary

• Operating earnings per share rose 19.4% year-over-year in Q4 2024, with gross written premium up 12.2%.

• Net income for Q4 2024 was $109.1M ($4.68/diluted share), up from $103.4M ($4.43) in Q4 2023; full-year net income was $414.8M ($17.78), up from $308.1M ($13.22) in 2023.

• Net operating earnings for Q4 2024 were $107.8M ($4.62/share), up 19.4% year-over-year; full-year net operating earnings were $374.8M ($16.06), up 28.5%.

• Combined ratio for the quarter was 73.4%, and full-year operating ROE reached 29%.

• Stock price outperformed the S&P 500 for the eighth time in nine years since IPO.

Financial highlights

• Gross written premiums grew 12.2% in Q4 2024 to $443.3M and 19.2% for the year to $1.9B, driven by strong broker submissions and favorable pricing.

• Net investment income rose 37.8% in Q4 2024 to $41.9M and 46.9% for the year to $150.3M, reflecting portfolio growth and higher interest rates.

• Diluted operating EPS was $4.62, up from $3.87 in Q4 2023.

• Underwriting income was $97.9M in Q4 2024 (combined ratio 73.4%) and $325.9M for the year (combined ratio 76.4%).

• Book value per share increased to $63.75 at year-end 2024 from $46.88 at year-end 2023.

Outlook and guidance

• Management expects 10%-20% top-line growth going forward, reflecting a more competitive market.

• Productivity gains and higher investment yields are expected to support earnings growth above revenue growth.

• Gradual expansion into personal lines and agribusiness is anticipated to drive future growth.

• Management remains confident in delivering long-term value through disciplined underwriting and technology-enabled low costs, regardless of market cycles.

• Pre-tax catastrophe losses of ~$25M from January 2025 Southern California wildfires are expected to impact Q1 2025 results.