Kinsale Capital Group, Inc.

What they do

Kinsale focuses exclusively on the U.S. excess and surplus lines (E&S) market, writing coverage for risks that are unusual or hard to place in the standard insurance market, such as newly established companies, high-risk operations, insureds in litigious venues or companies with poor loss histories. Policies are sold in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands primarily through a network of independent insurance brokers. It operates as one reportable segment, the Excess and Surplus Lines Insurance segment, with commercial underwriting divisions and a smaller personal lines homeowners' business.

Revenue drivers

• Casualty — Casualty represented 70.7% of 2025 gross written premiums and 74.1% in the first half of 2026. Commercial underwriting divisions in this category include Excess Casualty, General Casualty, Small Business Casualty, Construction, Allied Health, Products Liability, Commercial Auto, Energy, Excess Professional, Professional Liability, Health Care, Agribusiness Casualty, Management Liability and others.
• Property — Property was 29.3% of 2025 gross written premiums and 25.9% in the first half of 2026. Commercial Property is the largest single property division, with 2025 gross written premiums of $374.5 million, and was the main driver of the recent premium decline.
• Personal insurance — Homeowners' coverage in the personal lines market was 3.0% of 2025 gross written premiums and 2.5% in the first half of 2026. Average premium per policy is relatively low in this division; excluding it, average premium per policy written was $14,000 in 2025.
• Net investment income — Net investment income was $55.7 million in the second quarter of 2026, up 19.9% from the prior-year quarter, contributing to total revenues alongside underwriting results.

Recent performance

For the second quarter of 2026, net income was $175.9 million, or $7.72 per diluted share, compared with $134.1 million, or $5.76 per diluted share, a year earlier. Gross written premiums decreased 5.0% to $527.6 million, which the company attributed primarily to heightened competition in the Commercial Property Division where premiums fell 32.7%; excluding that division, gross written premiums rose 3.7%. Net earned premiums increased 8.9% to $417.6 million, net investment income rose 19.9% to $55.7 million, and underwriting income was $105.4 million at a 75.5% combined ratio. For the first half of 2026, net income was $288.4 million, or $12.58 per diluted share, and gross written premiums were $1,009.6 million, down 2.9%, with Commercial Property premiums down 30.9% and non-Commercial Property premiums up 4.8%.

Strategy

Kinsale's stated goal is to deliver long-term stockholder value by growing the business and generating attractive returns through consistent underwriting profits and prudent capital management. It emphasizes a proprietary technology platform, a highly efficient operating model, tight expense control and retained control over underwriting and claims. Management describes its strategy as disciplined underwriting and technology-enabled low costs. The company reported an additional $250 million share repurchase authorization announced with second quarter 2026 results.

Risks

• Reserve adequacy — Kinsale states that its loss reserves are estimates and may prove inadequate to cover actual losses, which could materially and adversely affect financial condition, results of operations and cash flows.
• Commercial Property competition — Heightened competition in the Commercial Property Division drove a 32.7% second quarter and 30.9% first half premium decline in that division, reducing overall gross written premiums.
• Reinsurance and retention — The company relies on reinsurance to limit large-loss exposure; the second quarter earnings release noted lower ceding commissions as a result of increased retention on its reinsurance treaties.
• Market and catastrophe exposure — Kinsale cites severe weather and catastrophes, including climate change, as well as adverse economic conditions such as recession and inflation, as risks that can affect claims frequency, severity and policy sales.

Outlook

Management said the company delivered another quarter of exceptional financial results, with consistent and growing underwriting profits and investment income, significant operating cash flows and excess capital. Chairman, President and CEO Michael P. Kehoe said the focus remains on delivering sustainable long-term value creation for stockholders through disciplined underwriting and technology-enabled low costs. The company announced an additional $250 million share repurchase authorization alongside second quarter 2026 results. Kinsale states it believes it is well positioned to capitalize on attractive opportunities in its target market and to prudently grow the business.