Kinsale Capital Group Reports Higher Q2 Earnings Amid Competitive Insurance Market
Kinsale Capital Group (NYSE: KNSL) reported a rise in second-quarter operating earnings despite challenges from a competitive and softening excess-and-surplus insurance market. Diluted operating earnings per share increased by 15.9% year-over-year to $5.54, with an annualized return on equity of 24.4%. The company maintained underwriting profitability while prioritizing returns over growth in certain segments. Gross written premium declined slightly at 5%, but net earned premium rose 8.9%. Management noted significant rate declines and broader coverage terms affecting the Commercial Property Division, leading to a reduced volume of business there. However, excluding this division, gross written premiums grew by 3.7% in Q2. Kinsale's underwriting results showed favorable prior-year loss reserve development contributing positively to its combined ratio. CFO Bryan Petrucelli highlighted increased net income and operating earnings year-over-year while noting a rise in the expense ratio due to higher reinsurance retentions.
Tickers: $KNSL
Topics: commercial property market insurance underwriting profitability