10-Q · April 23, 2026
Kinsale reported strong underwriting and investment results for Q1 2026: net income rose 26.1% to $112.6 million and underwriting income increased 40.1% to $94.5 million versus Q1 2025. Net earned premiums grew 11.2% to…
Earnings analysis · 10-Q
KNSL earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Kinsale’s third-quarter results showed resilient underwriting and investment income growth, but reported revenue of $454.8 million and diluted EPS of $4.36 were below the prior quarter’s $549.0 million and $7.72. GAAP…
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Kinsale’s third-quarter results showed resilient underwriting and investment income growth, but reported revenue of $454.8 million and diluted EPS of $4.36 were below the prior quarter’s $549.0 million and $7.72. GAAP earnings were significantly reduced by a $37.6 million pre-tax investment-portfolio repositioning charge, while underwriting income increased 1.3% to $107.1 million and the combined ratio remained strong at 75.4%. Premium growth is facing heightened competition, particularly in property, but strong operating cash flow and a $5.5 billion investment portfolio support liquidity and capital returns.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $4.36
What stood out
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Underlying underwriting performance improved
Underlying underwriting income increased 1.3% year over year to $107.1 million, while net operating earnings rose 5.9% to $128.3 million from $121.2 million.
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Earned premiums and retention rose
Net earned premiums increased 3.0% year over year to $423.5 million, supported by higher retention and continued earning of prior-period premium growth. The net retention ratio increased to 86.2% from 83.3%.
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Loss ratio benefited from reserve development
The quarterly loss ratio improved to 53.4% from 53.9%, helped by $19.7 million of favorable prior-year reserve development versus $15.8 million in the prior-year quarter.
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Investment income increased
Net investment income rose 17.5% to $58.3 million from $49.6 million, driven by growth in the investment portfolio and strong operating cash flows.
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Strong cash generation funded buybacks
Nine-month operating cash flow remained substantial at $754.9 million, while the company repurchased $263.1 million of stock and paid $17.0 million in dividends.
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Portfolio repositioning targets returns
The investment portfolio was repositioned toward higher-yielding fixed maturities and higher-conviction equities; cash and invested assets totaled $5.5 billion at September 30, 2026.
What to watch
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Portfolio repositioning hurt GAAP earnings
GAAP net income fell 30.7% year over year to $98.1 million from $141.6 million, primarily because investment gains turned into a $38.2 million net realized and unrealized investment loss.
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Competition pressured premium growth
Gross written premiums declined 4.8% to $462.9 million, with property premiums down 19.3%; Commercial Property premiums fell 26.8% to $58.8 million amid heightened competition.
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Higher retention increased expense pressure
The expense ratio increased to 22.0% from 21.0%, primarily due to lower ceding commissions following increased reinsurance retention, while the combined ratio worsened to 75.4% from 74.9%.
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Operating cash flow declined
Nine-month operating cash flow declined to $754.9 million from $802.3 million, driven by higher paid losses, operating expenses and income taxes.
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Capital base contracted
Stockholders’ equity decreased to $1.9 billion from $2.0 billion at December 31, 2025, primarily due to share repurchases, dividends and lower fixed-maturity fair values.
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No material risk-factor updates
The filing states there were no material changes to the risk factors disclosed in the 2025 Form 10-K; therefore, no new quantified risk-factor change was identified.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated it believes liquidity is sufficient to meet operating cash needs, obligations and committed capital expenditures for the next 12 months.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.