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Mar 31

Kinsale Q1 2025 Earnings Report

Kinsale Capital Group reported strong earnings performance despite higher catastrophe losses in Q1 2025.

Key Takeaways

Kinsale Capital Group generated $89,227,000 in net income and $423,397,000 in revenue for Q1 2025. The company posted a solid underwriting income and maintained profitability with a combined ratio of 82.1%. Net investment income surged 33% year-over-year, driven by strong operating cash flows.

Net income reached $89,227,000 with EPS of $3.83.

Net operating earnings were $86,419,000 with adjusted EPS of $3.71.

Underwriting income totaled $67,461,000 with a combined ratio of 82.1%.

Net investment income rose to $43,819,000, up 33% from last year.

Total Revenue
$423M
Previous year: $373M
+13.6%
EPS
$3.71
Previous year: $3.5
+6.0%
Underwriting Income
$67.5M
Previous year: $65.1M
+3.7%
Loss Ratio
62.1%
Previous year: 58.8%
+5.6%
Expense Ratio
20%
Previous year: 20.7%
-3.4%
Cash and Equivalents
$142M
Previous year: $136M
+4.3%
Total Assets
$5.21B
Previous year: $3.7B
+40.9%

Kinsale

Kinsale

Kinsale Revenue by Segment

Kinsale Revenue by Geographic Location

Forward Guidance

No formal forward guidance was issued in the report, but the company reaffirmed confidence in its long-term profitability strategy despite catastrophe-related challenges.

Positive Outlook

  • Continued confidence in disciplined underwriting strategy.
  • Strong operating cash flow supports investment income growth.
  • Favorable prior accident year reserve development.
  • Conservative investment portfolio with AA- average credit quality.
  • Book value per share increased to $67.92.

Challenges Ahead

  • Catastrophe losses of $17,800,000 impacted Q1 results.
  • Commercial Property Division saw an 18.4% decline in gross written premiums.
  • Loss ratio rose due to higher catastrophe events.
  • Expense ratio remained elevated due to competitive conditions.
  • Net income declined from Q1 2024 due to catastrophe losses.