Kinsale Capital Group Reports Q3 2026 Financial Results with 30.7% Net Income Decline

Kinsale Capital Group, Inc. reported its financial results for the third quarter and the first nine months of 2026, revealing a net income of $98.1 million for the three months ended September 30, 2026, a decrease of 30.7% from $141.6 million in the same period last year. For the nine months ended September 30, 2026, net income increased by 5.9% to $386.6 million compared to $365.0 million in the prior year. The decline in quarterly net income was attributed primarily to net realized and unrealized investment losses, which contrasted with gains in the previous year, although this was partially offset by higher net investment income and underwriting income.

The company reported gross written premiums of $462.9 million for the third quarter of 2026, down 4.8% from $486.3 million in the same quarter of 2025. This decline was largely driven by a 19.3% decrease in property division premiums, particularly a 26.8% drop in the Commercial Property Division. In contrast, gross written premiums in the casualty business grew by 0.9%. For the nine-month period, gross written premiums totaled $1.472 billion, a decrease of 3.5% from $1.526 billion in the prior year. Despite the decline in gross written premiums, net written premiums increased slightly by 0.8% to $1.255 billion, reflecting a higher retention ratio on reinsurance treaties.

Kinsale's underwriting income for the third quarter was $107.1 million, a modest increase of 1.3% from $105.7 million in the same quarter of 2025. The combined ratio for the quarter was 75.4%, slightly higher than the 74.9% reported in the prior year. For the nine months ended September 30, 2026, underwriting income rose by 14.3% to $307.0 million, with a combined ratio of 76.1%, down from 77.5% in the same period last year. The improvement in underwriting income was attributed to growth in net earned premiums and favorable development of loss reserves from prior accident years.

In terms of investment performance, net investment income increased by 17.5% to $58.3 million for the third quarter and by 21.1% to $169.4 million for the nine months ended September 30, 2026. The company repositioned its investment portfolio during the third quarter, which resulted in realized losses on fixed-maturity securities but also allowed for reinvestment in higher-yielding assets. The fair value of Kinsale's total investments reached $5.3 billion as of September 30, 2026, with fixed-maturity securities comprising the majority of the portfolio.

Looking ahead, Kinsale anticipates continued challenges in the competitive landscape, particularly within its property divisions. The company remains focused on leveraging its underwriting expertise in the excess and surplus lines market while managing its investment portfolio to enhance long-term returns. The outlook for the remainder of 2026 will depend on market conditions, including competition and economic factors that may influence premium growth and claims experience.