Kinsale Capital Group third-quarter net income falls to $98.1 million, or $4.36 per diluted share

Kinsale Capital Group, Inc. (KNSL) reported third-quarter 2026 net income of $98.1 million, or $4.36 per diluted share, down from $141.6 million, or $6.09 per diluted share, a year earlier.

The Richmond, Virginia, specialty insurance group said Thursday in a press release attached to a regulatory filing.

Net operating earnings, a non-GAAP measure that strips out investment fair-value changes and realized gains and losses, were $128.3 million, or $5.70 per diluted share, up from $121.2 million, or $5.21 per diluted share.

For the first nine months of 2026, net income was $386.6 million, or $16.97 per diluted share, compared with $365.0 million, or $15.67 per diluted share, a year earlier.

Here's how the company did:

• Diluted earnings per share: $4.36 vs. $6.09 a year earlier
• Net operating earnings per diluted share: $5.70 vs. $5.21 a year earlier
• Total revenues: $454.8 million vs. $497.5 million a year earlier
• Underwriting income: $107.1 million vs. $105.7 million a year earlier
• Combined ratio: 75.4% vs. 74.9% a year earlier
• Net investment income: $58.3 million vs. $49.6 million a year earlier

Total revenues fell in part because of a change in the fair value of equity securities. The filing shows a $37.8 million loss on that line in the quarter, against a gain of $23.7 million a year earlier.

Gross written premiums decreased 4.8% to $462.9 million from $486.3 million a year earlier. Net written premiums decreased 1.5% to $399.1 million.

The company attributed the premium decline mainly to heightened competition in its property divisions. Property premiums fell 19.3% in the quarter, including a 26.8% drop in the Commercial Property Division.

Casualty premiums rose 0.9% in the quarter and 3.0% for the first nine months, the company said. The increase came mainly from more bound accounts, partly offset by a shift toward smaller accounts.

Net earned premiums increased 3.0% to $423.5 million in the quarter.

"Our underwriting results this quarter demonstrate discipline in a competitive market," said Chairman, President and Chief Executive Officer Michael P. Kehoe.

Kehoe added: "We continue to produce exceptional underwriting margins and strong investment income which allows us to return capital to stockholders."

The loss ratio was 53.4% and the expense ratio was 22.0%, compared with 53.9% and 21.0% a year earlier. The company said the higher expense ratio reflected lower ceding commissions from increased retention on its reinsurance treaties.

After-tax catastrophe losses were $1.7 million in the quarter, compared with $1.0 million a year earlier.

For the first nine months, gross written premiums fell 3.5% to $1,472.5 million from $1,526.0 million. The combined ratio improved to 76.1% from 77.5%, and underwriting income rose to $307.0 million from $268.6 million.

After-tax catastrophe losses for the nine months were $7.2 million, down from $21.7 million a year earlier, the filing shows.

Net investment income rose 17.5% to $58.3 million in the quarter and 21.1% to $169.4 million for the nine months. The company said the growth came largely from strong operating cash flows invested in the portfolio.

During the quarter, the company sold certain common stock holdings in a gain position and sold lower-yielding fixed-maturity securities in a loss position. It reinvested the proceeds in both cases.

The repositioning reduced third-quarter pre-tax earnings by $37.6 million and had no effect on book value, the filing said.

The company repurchased 269,004 shares in the open market during the quarter at an average price of $371.74 per share, for a total cost of $100.0 million. It had $237.5 million of capacity remaining under its share repurchase program at Sept. 30.

The company also declared and paid a cash dividend of $0.25 per share during the quarter, for a total distribution of $5.6 million.

Stockholders' equity was $1.9 billion at Sept. 30, down from $2.0 billion at Dec. 31, 2025. Book value per share was $85.25, compared with $84.66 at year-end 2025.

Cash and invested assets totaled $5.5 billion at Sept. 30. The effective tax rate for the nine months was 20.0%, compared with 20.6% a year earlier.

The release contains no updated financial guidance or outlook.

The company will hold a conference call to discuss the results on Friday, Oct. 23, at 9:00 a.m. Eastern Time.

Net operating earnings and underwriting income are non-GAAP measures. The company said management uses them to assess underlying performance, and that other companies may define them differently.

Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focused on the excess and surplus lines market.