Kinsale Capital Group, Inc. Reports 2025 Fourth Quarter and Year-End Results

Kinsale Capital Group, Inc. Reports 2025 Fourth Quarter and Year-End Results February 12, 2026 Kinsale Capital Group, Inc. (NYSE: KNSL) reported net income of $138.6 million, $5.99 per diluted share, for the fourth quarter of 2025 compared to $109.1 million, $4.68 per diluted share, for the fourth quarter of 2024. Net income was $503.6 million, $21.65 per diluted share, for the year ended December 31, 2025 compared to $414.8 million, $17.78 per diluted share, for the year ended December 31, 2024. Net income included after-tax catastrophe losses of $2.3 million in the fourth quarter of 2025 compared to $6.2 million in the fourth quarter of 2024. For the years ended December 31, 2025 and 2024, net income included after-tax catastrophe losses of $24.0 million and $20.2 million, respectively. Net operating earnings(1) were $134.6 million, $5.81 per diluted share, for the fourth quarter of 2025 compared to $107.8 million, $4.62 per diluted share, for the fourth quarter of 2024. Net operating earnings(1) were $453.7 million, $19.51 per diluted share, for the year ended December 31, 2025 compared to $374.8 million, $16.06 per diluted share, for the year ended December 31, 2024. Highlights for the fourth quarter of 2025 included: Diluted earnings per share increased by 28.0% and diluted operating earnings (1) per share increased by 25.8% compared to the fourth quarter of 2024Gross written premiums increased by 1.8% to $451.1 million and net written premiums increased by 7.1% to $370.6 million compared to the fourth quarter of 2024Net investment income increased by 24.9% to $52.3 million compared to the fourth quarter of 2024Underwriting income (2) was $120.6 million in the fourth quarter of 2025, resulting in a combined ratio (5) of 71.7% Highlights for the full year of 2025 included: Diluted earnings per share increased by 21.8% and diluted operating earnings (1) per share increased by 21.5% compared to the full year of 2024Gross written premiums increased by 5.7% to $2.0 billion and net written premiums increased by 9.4% to $1.6 billion compared to the full year of 2024Net investment income increased by 27.9% to $192.2 million compared to the full year of 2024Underwriting income (2) was $389.2 million for the year ended December 31, 2025, resulting in a combined ratio (5) of 75.9%Operating return on equity (7) was 26.4% for the year ended December 31, 2025 "We delivered another strong quarter to close out 2025, marked by exceptional profitability resulting from continued disciplined underwriting and technology-enabled low costs in a competitive market. We remain confident that the resilience of our model positions us to deliver long-term value for our stockholders throughout the market cycle," said Chairman and Chief Executive Officer, Michael P. Kehoe. Results of Operations Underwriting Results Gross written premiums were $451.1 million for the fourth quarter of 2025 compared to $443.3 million for the fourth quarter of 2024, an increase of 1.8%. Gross written premiums were $2.0 billion for the year ended December 31, 2025 compared to $1.9 billion for the year ended December 31, 2024, an increase of 5.7%. Gross written premiums in the Commercial Property Division, the Company’s largest division, declined 28.3% in the fourth quarter and 17.9% for the year ended December 31, 2025, compared to the prior-year periods, reflecting lower rates and increased competition, including from standard carriers. Excluding the Commercial Property Division, gross written premiums increased 10.2% for the quarter and 13.3% for the full year compared to the prior-year periods, driven by continued strong submission flow across most divisions. Net written premiums were $370.6 million for the fourth quarter of 2025 compared to $346.1 million for the fourth quarter of 2024, an increase of 7.1%. Net written premiums were $1.6 billion for the year ended December 31, 2025 compared to $1.5 billion for the year ended December 31, 2024, an increase of 9.4%. Growth in net written premiums during the fourth quarter and year ended December 31, 2025 over the prior-year periods was largely due to higher gross written premiums and an increase in the retention on the Company’s reinsurance treaties. Underwriting income(2) was $120.6 million, resulting in a combined ratio(5) of 71.7%, for the fourth quarter of 2025, compared to $97.9 million, and a combined ratio(5) of 73.4% for the same period last year. The increase in underwriting income(2) for the fourth quarter of 2025 was due to continued growth in the business, higher favorable development of loss reserves from prior accident years and lower catastrophe losses. Loss(3) and expense(4) ratios were 50.1% and 21.6%, respectively, for the fourth quarter of 2025 compared to 52.3% and 21.1% for the fourth quarter of 2024. Favorable development of reserves from prior accident years was $17.0 million, or 4.0 points, for the fourth quarter of 2025 primarily within property lines of business and $9.6 million, or 2.6 points, for the fourth quarter of 2024. The loss ratio for the fourth quarter of 2025 included 0.7 points of net catastrophe losses. The loss ratio for the fourth quarter of 2024 included 2.2 points of net catastrophe losses, primarily related to Hurricane Milton. Underwriting income(2) was $389.2 million, resulting in a combined ratio(5) of 75.9%, for the year ended December 31, 2025, compared to $325.9 million, and a combined ratio(5) of 76.4% for the prior year. The increase in underwriting income(2) for the year ended December 31, 2025 was largely due to continued growth in the business and higher favorable development of loss reserves from prior accident years offset in part by higher catastrophe losses incurred during the year. Loss(3) and expense(4) ratios were 55.1% and 20.8%, respectively, for the year ended December 31, 2025 compared to 55.8% and 20.6%, respectively, for the year ended December 31, 2024. Favorable development of reserves from prior accident years was $62.8 million, or 3.9 points, for the year ended December 31, 2025 primarily within property lines of business and $37.7 million, or 2.7 points, for the year ended December 31, 2024. The loss ratio for the year ended December 31, 2025 included 1.9 points of net catastrophe losses primarily related to the Palisades Fire. The loss ratio for the year ended December 31, 2024 included 1.8 points of net catastrophe losses, primarily related to Hurricanes Milton, Helene and Francine and tornadoes in the Midwest. Summary of Operating Results The Company’s operating results for the three months and years ended December 31, 2025 and 2024 are summarized as follows: Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 ($ in thousands) Gross written premiums $ 451,123 $ 443,281 $ 1,977,171 $ 1,870,341 Ceded written premiums (80,571 ) (97,160 ) (361,154 ) (392,993 ) Net written premiums $ 370,552 $ 346,121 $ 1,616,017 $ 1,477,348 Net earned premiums $ 415,482 $ 359,739 $ 1,575,842 $ 1,350,470 Fee income 10,059 8,546 40,714 34,118 Losses and loss adjustment expenses 213,196 192,548 890,693 772,899 Underwriting, acquisition and insurance expenses 91,764 77,848 336,696 285,808 Underwriting income(2) $ 120,581 $ 97,889 $ 389,167 $ 325,881 Loss ratio(3) 50.1 % 52.3 % 55.1 % 55.8 % Expense ratio(4) 21.6 % 21.1 % 20.8 % 20.6 % Combined ratio(5) 71.7 % 73.4 % 75.9 % 76.4 % Annualized return on equity(6) 29.0 % 29.9 % 29.3 % 32.3 % Annualized operating return on equity(7) 28.2 % 29.6 % 26.4 % 29.2 % (1) Net operating earnings is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below. (2) Underwriting income is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below. (3) Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to the sum of net earned premiums and fee income. (4) Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income. (5) The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding. (6) Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. (7) Annualized operating return on equity is net operating earnings (a non-GAAP financial measure) expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. The following tables summarize losses incurred for the current accident year and the development of prior accident years for the three months and years ended December 31, 2025 and 2024: Three Months Ended Three Months Ended December 31, 2025 December 31, 2024 Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Loss ratio: ($ in thousands) Current accident year $ 227,309 53.4 % $ 194,226 52.7 % Current accident year - catastrophe losses 2,851 0.7 % 7,905 2.2 % Effect of prior accident year development (16,964 ) (4.0 )% (9,583 ) (2.6 )% Total $ 213,196 50.1 % $ 192,548 52.3 % Year Ended Year Ended December 31, 2025 December 31, 2024 Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Loss ratio: ($ in thousands) Current accident year $ 923,160 57.1 % $ 785,036 56.7 % Current accident year - catastrophe losses 30,350 1.9 % 25,518 1.8 % Effect of prior accident year development (62,817 ) (3.9 )% (37,655 ) (2.7 )% Total $ 890,693 55.1 % $ 772,899 55.8 % Investment Results Net investment income was $52.3 million in the fourth quarter of 2025 compared to $41.9 million in the fourth quarter of 2024, an increase of 24.9%. Net investment income was $192.2 million for the full year of 2025 compared to $150.3 million for the full year of 2024, an increase of 27.9%. These increases were driven by growth in the Company's investment portfolio generated primarily from the investment of strong operating cash flows since December 31, 2024. The Company’s investment portfolio, excluding cash and cash equivalents, had a gross investment return(8) of 4.4% for both the years ended December 31, 2025 and 2024. Funds are generally invested conservatively in high quality securities, including government agency, asset- and mortgage-backed securities, and municipal and corporate bonds with an average credit quality of "AA-." The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.0 years and 3.0 years at December 31, 2025 and 2024, respectively. Cash and invested assets totaled $5.2 billion at December 31, 2025 compared to $4.1 billion at December 31, 2024. (8) Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of average beginning and ending book values of those investments during the period. Capital Return to Stockholders During the fourth quarter of 2025, the Company repurchased 119,752 shares of its common stock in the open market at an average price of $417.52 per share for a total cost of $50.0 million, exhausting the initial $100 million share repurchase authorization. In December 2025, the Company announced a new $250 million share repurchase authorization. In February 2026, the Company's Board of Directors declared a cash dividend of $0.25 per share of common stock, a 47.1% increase from the prior cash dividend, reflecting continued confidence in the Company’s financial position and capital generation abilities. The new share repurchase authorization and increased dividend return excess capital to stockholders while maintaining a conservative capital position for the Company's business. Other The effective tax rates for the years ended December 31, 2025 and 2024 were 20.6% and 19.4%, respectively. The effective tax rates were lower than the federal statutory rate primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income. The effective tax rate was higher for the full year of 2025 compared to the full year of 2024 due primarily to a lower volume of stock option exercises. Stockholders' equity was $2.0 billion at December 31, 2025, compared to $1.5 billion at December 31, 2024. Book value per share was $84.66 at December 31, 2025 compared to $63.75 at December 31, 2024. Operating return on equity was 26.4% for the full year of 2025, a decrease from 29.2% for the full year of 2024. The decrease was due primarily to higher average stockholders' equity as a result of profitable growth and an increase in the fair value of the Company's investment portfolio offset in part by share repurchases. Non-GAAP Financial Measures Net Operating Earnings Net operating earnings is defined as net income excluding the effects of the change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and the change in allowance for credit losses on investments, after taxes. Management believes the exclusion of these items provides a useful comparison of the Company's underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-GAAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently. For the three months and years ended December 31, 2025 and 2024, net income and diluted earnings per share reconcile to net operating earnings and diluted operating earnings per share as follows: Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 ($ in thousands, except per share data) Net operating earnings: Net income $ 138,620 $ 109,094 $ 503,614 $ 414,843 Adjustments: Change in the fair value of equity securities, before taxes (3,460 ) (1,496 ) (58,836 ) (43,367 ) Income tax expense(1) 727 314 12,356 9,107 Change in fair value of equity securities, after taxes (2,733 ) (1,182 ) (46,480 ) (34,260 ) Net realized investment gains, before taxes (1,558 ) (94 ) (4,390 ) (6,831 ) Income tax expense(1) 327 20 922 1,435 Net realized investment gains, after taxes (1,231 ) (74 ) (3,468 ) (5,396 ) Change in allowance for credit losses on investments, before taxes (9 ) (36 ) 2 (526 ) Income tax expense(1) 2 8 — 110 Change in allowance for credit losses on investments, after taxes (7 ) (28 ) 2 (416 ) Net operating earnings $ 134,649 $ 107,810 $ 453,668 $ 374,771 Diluted operating earnings per share: Diluted earnings per share $ 5.99 $ 4.68 $ 21.65 $ 17.78 Change in fair value of equity securities, after taxes, per share (0.12 ) (0.05 ) (2.00 ) (1.47 ) Net realized investment gains, after taxes, per share (0.05 ) — (0.15 ) (0.23 ) Change in allowance for credit losses on investments, after taxes, per share — — — (0.02 ) Diluted operating earnings per share(2) $ 5.81 $ 4.62 $ 19.51 $ 16.06 Operating return on equity: Average equity(3) $ 1,912,400 $ 1,459,255 $ 1,721,572 $ 1,285,197 Annualized return on equity(4) 29.0 % 29.9 % 29.3 % 32.3 % Annualized operating return on equity(5) 28.2 % 29.6 % 26.4 % 29.2 % (1) Income taxes on adjustments to reconcile net income to net operating earnings use a 21% effective tax rate. (2) Diluted operating earnings per share may not add due to rounding. (3) Average equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two. (4) Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. (5) Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Underwriting Income Underwriting income is defined as net income excluding net investment income, the change in the fair value of equity securities, net realized investment gains and losses, the change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. The Company uses underwriting income as an internal performance measure in the management of its operations because the Company believes it gives management and users of the Company's financial information useful insight into the Company's results of operations and underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently. For the three months and years ended December 31, 2025 and 2024, net income reconciles to underwriting income as follows: Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 (in thousands) Net income $ 138,620 $ 109,094 $ 503,614 $ 414,843 Income tax expense 36,204 29,557 130,688 99,873 Income before income taxes 174,824 138,651 634,302 514,716 Net investment income (52,296 ) (41,863 ) (192,192 ) (150,287 ) Change in fair value of equity securities (3,460 ) (1,496 ) (58,836 ) (43,367 ) Net realized investment gains (1,558 ) (94 ) (4,390 ) (6,831 ) Change in allowance for credit losses on investments (9 ) (36 ) 2 (526 ) Interest expense 2,982 2,559 10,646 10,134 Other expenses(6) 505 517 1,650 3,968 Other income (407 ) (349 ) (2,015 ) (1,926 ) Underwriting income $ 120,581 $ 97,889 $ 389,167 $ 325,881 (6) Other expenses includes primarily corporate expenses not allocated to the Company's insurance operations. Conference Call Kinsale Capital Group will hold a conference call to discuss this press release on Friday, February 13, 2026, at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (800) 715-9871, conference ID# 6520221, or via the Internet by going to www.kinsalecapitalgroup.com and clicking on the "Investor Relations" link. A replay of the call will be available on the website. Forward-Looking Statements This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. About Kinsale Capital Group, Inc. Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market. KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES Unaudited Consolidated Statements of Income and Comprehensive Income Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 Revenues (in thousands, except per share data) Gross written premiums $ 451,123 $ 443,281 $ 1,977,171 $ 1,870,341 Ceded written premiums (80,571 ) (97,160 ) (361,154 ) (392,993 ) Net written premiums 370,552 346,121 1,616,017 1,477,348 Change in unearned premiums 44,930 13,618 (40,175 ) (126,878 ) Net earned premiums 415,482 359,739 1,575,842 1,350,470 Fee income 10,059 8,546 40,714 34,118 Net investment income 52,296 41,863 192,192 150,287 Change in fair value of equity securities 3,460 1,496 58,836 43,367 Net realized investment gains 1,558 94 4,390 6,831 Change in allowance for credit losses on investments 9 36 (2 ) 526 Other income 407 349 2,015 1,926 Total revenues 483,271 412,123 1,873,987 1,587,525 Expenses Losses and loss adjustment expenses 213,196 192,548 890,693 772,899 Underwriting, acquisition and insurance expenses 91,764 77,848 336,696 285,808 Interest expense 2,982 2,559 10,646 10,134 Other expenses 505 517 1,650 3,968 Total expenses 308,447 273,472 1,239,685 1,072,809 Income before income taxes 174,824 138,651 634,302 514,716 Income tax expense 36,204 29,557 130,688 99,873 Net income 138,620 109,094 503,614 414,843 Other comprehensive income (loss) Change in unrealized gains (losses) on available-for-sale investments, net of taxes 5,548 (50,455 ) 66,514 (2,589 ) Total comprehensive income $ 144,168 $ 58,639 $ 570,128 $ 412,254 Earnings per share: Basic $ 6.01 $ 4.71 $ 21.76 $ 17.92 Diluted $ 5.99 $ 4.68 $ 21.65 $ 17.78 Weighted-average shares outstanding: Basic 23,056 23,164 23,140 23,153 Diluted 23,161 23,330 23,259 23,332 KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets December 31, 2025 December 31, 2024 (in thousands) Assets Investments: Fixed-maturity securities at fair value $ 4,341,450 $ 3,537,563 Equity securities at fair value 626,399 398,359 Real estate investments, net 55,236 15,045 Short-term investments 3,864 3,714 Total investments 5,026,949 3,954,681 Cash and cash equivalents 163,361 113,213 Investment income due and accrued 30,971 27,366 Premiums receivable, net 124,593 140,027 Reinsurance recoverables, net 394,329 337,891 Ceded unearned premiums 44,506 52,736 Deferred policy acquisition costs, net of ceding commissions 118,737 109,263 Indefinite-lived intangible assets 3,538 3,538 Deferred income tax asset, net 42,191 60,215 Other assets 94,386 87,774 Total assets $ 6,043,561 $ 4,886,704 Liabilities & Stockholders' Equity Liabilities: Reserves for unpaid losses and loss adjustment expenses $ 2,890,870 $ 2,285,668 Unearned premiums 860,394 828,449 Payable to reinsurers 34,385 43,959 Accounts payable and accrued expenses 66,301 55,159 Debt 224,397 184,122 Other liabilities 7,631 5,786 Total liabilities 4,083,978 3,403,143 Stockholders' equity 1,959,583 1,483,561 Total liabilities and stockholders' equity $ 6,043,561 $ 4,886,704 Kinsale Capital Group, Inc. Bryan Petrucelli Executive Vice President, Chief Financial Officer and Treasurer 804-289-1272 [email protected] Source: Kinsale Capital Group, Inc.