KNSL earnings analysis
What we found in KNSL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 $406.9 million and the combined ratio improved to 77.4% from 82.1%, while net investment income rose 26.5% to $55.4 million. Gross written premiums were essentially flat, at $482.0 million (down 0.5%), and management reiterates sufficient liquidity for the next 12 months.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Net income up materially
- Net income increased 26.1% year-over-year to $112,554,000 for the three months ended March 31, 2026 (from $89,227,000).
- Underwriting profitability improved
- Underwriting income rose 40.1% to $94,501,000 and the combined ratio improved to 77.4% from 82.1% in Q1 2025.
- Premiums and retention rising
- Net earned premiums increased 11.2% to $406,859,000 and net written premiums increased 5.6% to $403,262,000; net retention ratio rose to 83.7% from 78.8%.
- Investment income contribution
- Net investment income grew 26.5% to $55,423,000 (interest from fixed maturities $52,161,000) supporting overall profitability.
- Operating cash flow strong
- Cash provided by operating activities was $248,869,000 for the three months ended March 31, 2026 (vs. $229,779,000 in Q1 2025).
- Share repurchase capacity available
- Board authorized up to $250.0 million in repurchases in December 2025 and $187.5 million of capacity remained at March 31, 2026; 166,042 shares were repurchased in February at an average price of $378.64.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Gross written premiums slightly down
- Gross written premiums decreased 0.5% to $482,018,000 for Q1 2026 (from $484,275,000), driven by a 28.3% decline in the Commercial Property Division to $65,558,000 (from $91,487,000).
- Expense ratio rising due to higher retention
- Expense ratio increased to 21.1% from 20.0% as underwriting, acquisition and insurance expenses rose to $88,234,000 (up 17.8% vs. $74,912,000) partly from lower ceding commissions.
- Equity portfolio fair-value hit
- Change in the fair value of equity securities was a $(8,356,000) loss in Q1 2026 versus a $3,038,000 gain in Q1 2025, dragging net realized and unrealized investment results down.
- Reliance on prior-year reserve development
- Prior accident years developed favorably by $18,705,000 in Q1 2026 (benefiting loss ratio), which may not recur in future periods.
- Interest expense and outstanding notes
- Interest expense increased 24.8% to $3,167,000 and the company has $125.0 million Series A and $50.0 million Series B senior promissory notes outstanding under the Note Purchase Agreement (aggregate authorized up to $200.0 million).
- Commercial Property competitive headwind
- Management attributes the Commercial Property decline to continued rate decreases from heightened competition, which contributed to an average premium per policy decline (average premium per policy written was $12,200 in Q1 2026 vs. $14,200 in Q1 2025).
What they reported.
What the company itself reported, taken out of the document.
- Segment
- Excess and Surplus Lines Insurance (reportable segment) — Gross written premiums $482,018,000; casualty 76.0% and property 24.0% of gross written premiums for Q1 2026
What they said about what is next.
The MD&A contains forward-looking statements but does not provide numeric FY2026 guidance. Management states it 'believes that the Company has sufficient liquidity ... to meet its operating cash needs and obligations and committed capital expenditures for the next 12 months.' Other forward-looking items: universal shelf registration (expires 2028) and an active $250.0 million repurchase program with $187.5 million capacity remaining at March 31, 2026.
The filing reads better than the one before it.
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