Kinsale Capital Group (KNSL) Q1 2026 earnings summary

Executive summary

• Diluted operating EPS rose 37.7% year-over-year, with annualized operating ROE at 24%.

• Net income rose 26.1% year-over-year to $112.6 million for Q1 2026, with net operating earnings up 36% and underwriting income up 40.1%.

• Combined ratio improved to 77.4% from 82.1% last year, reflecting strong underwriting profitability and favorable reserve development.

• Technology and AI investments continue to drive efficiency and competitive advantage.

• Net investment income increased 26.5% year-over-year, driven by portfolio growth and higher yields.

Financial highlights

• Gross written premiums were $482.0 million, down 0.5% year-over-year, mainly due to a 28.3% decline in the Commercial Property Division, offset by 6.0% growth in other divisions.

• Net written premiums increased 5.6% to $403.3 million, and net earned premiums rose 11.2% to $406.9 million.

• Diluted EPS was $5.11, up from $3.83 in Q1 2025.

• Book value per share increased to $85.31 at March 31, 2026.

• Annual gross return on investments was 4.5%, with new money yields around 5%.

Outlook and guidance

• Management remains confident in sustaining low 20s ROE, citing underwriting and cost advantages.

• Growth is expected to continue, especially in smaller accounts and divisions with less reinsurance.

• Sufficient liquidity and capital resources are projected to meet obligations and support growth over the next 12 months.

• No significant changes anticipated in accident year loss ratio; seasonality noted in Q1.

• Reinsurance retentions and treaty placements will be reviewed at the upcoming 6/1 renewal.