Kinsale Capital Group Reports $89.2 Million Net Income in Q1 2025, Down 9.8%

Kinsale Capital Group, Inc. reported a net income of $89.2 million for the first quarter of 2025, a decrease of 9.8% compared to $98.9 million in the same period of 2024. The decline in profitability was attributed to higher catastrophe losses and lower unrealized gains on equity investments, despite an increase in net investment income and continued business growth. Gross written premiums rose by 7.9% to $484.3 million, while net earned premiums increased by 18.2% to $365.8 million, reflecting strong demand in the excess and surplus lines market.

The company's total revenues for the quarter reached $423.4 million, up from $372.8 million a year earlier. This growth was driven by a combination of increased net earned premiums and fee income, which rose by 18.1% to $9.6 million. However, total expenses also increased, climbing to $311.1 million from $256.9 million, primarily due to higher losses and loss adjustment expenses, which rose by 24.7% to $233.0 million. The loss ratio for the quarter was 62.1%, up from 58.8% in the prior year, largely due to increased catastrophe losses.

Kinsale's investment portfolio showed significant growth, with net investment income increasing by 33.1% to $43.8 million, driven by a larger investment portfolio and improved yields. The company’s total assets grew to $5.2 billion as of March 31, 2025, compared to $4.9 billion at the end of 2024. The increase in assets was supported by a rise in cash and cash equivalents, which reached $142.0 million, and a significant increase in fixed-maturity securities, which totaled $3.7 billion.

In terms of strategic developments, Kinsale continues to focus on expanding its market presence in the excess and surplus lines sector, with gross written premiums in its casualty division accounting for 72.5% of total premiums. The company has also initiated a share repurchase program, authorizing the buyback of up to $100 million of its common stock, with $80 million remaining under the program as of the end of the quarter. Looking ahead, Kinsale anticipates continued growth in its premium volume and investment income, although it remains cautious about potential market volatility and the impact of catastrophic events on its financial performance.