Kinsale Capital Group Reports Third Quarter 2026 Results
Kinsale Capital Group, Inc. (KNSL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Kinsale Capital Group Reports Third Quarter 2026 Results Richmond, VA, October 22, 2026 - Kinsale Capital Group, Inc. (NYSE: KNSL) reported net income of $98.1 million, $4.36 per diluted share, for the third quarter of 2026 compared to $141.6 million, $6.09 per dilut
How this was made
The 30-second read
Why it matters
The earnings decline and premium contraction could prompt short sellers, but the investment income boost may attract value investors seeking upside from balance‑sheet strength.
Market read
First‑time disclosure of Q3 2026 results; material earnings miss likely to move KNSL stock in after‑hours trading.
What to watch
Strong investment income growth of 17.5% and improved ROE may cushion earnings decline.
Kinsale Capital Group reported third-quarter net income of $98.1 million, $4.36 per diluted share, while net operating earnings increased to $128.3 million, $5.70 per diluted share.
Net operating earnings, underwriting income, net earned premiums and net investment income increased, but gross written premiums declined and GAAP net income was reduced by a $37.6 million pre-tax realized loss from investment portfolio repositioning.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Gross written premiums, three months ended September 30other | $462.9M | – | decreased by 4.8% |
| Ceded written premiums, three months ended September 30other | −$63.72M | – | – |
| Net written premiums, three months ended September 30other | $399.1M | – | decreased by 1.5% |
| Net earned premiums, three months ended September 30other | $423.5M | – | increased by 3.0% |
| Fee income, three months ended September 30other | 11,099 | – | – |
| Net investment income, three months ended September 30other | $58.3M | – | increased by 17.5% |
| Total revenues, three months ended September 30GAAP | 454,798 | – | – |
| Losses and loss adjustment expenses, three months ended September 30GAAP | 232,079 | – | – |
| Underwriting, acquisition and insurance expenses, three months ended September 30GAAP | 95,429 | – | – |
| Underwriting income, three months ended September 30non-GAAP | $107.1M | – | – |
| Loss ratio, three months ended September 30other | 53.4 % | – | – |
| Expense ratio, three months ended September 30other | 22.0 % | – | – |
| Combined ratio, three months ended September 30other | 75.4% | – | – |
| Income before income taxes, three months ended September 30GAAP | 123,619 | – | – |
| Total income tax expense, three months ended September 30GAAP | 25,490 | – | – |
| Net income, three months ended September 30GAAP | $98.1M | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $4.36 | – | – |
| Net operating earnings, three months ended September 30non-GAAP | $128.3M | – | – |
| Diluted operating earnings per share, three months ended September 30non-GAAP | $5.70 | – | – |
| Annualized return on equity, three months ended September 30GAAP | 19.9 % | – | – |
| Annualized operating return on equity, three months ended September 30non-GAAP | 26.0 % | – | – |
| Gross written premiums, nine months ended September 30other | $1.47B | – | decreased by 3.5% |
| Net written premiums, nine months ended September 30other | $1.25B | – | – |
| Net earned premiums, nine months ended September 30other | $1.25B | – | – |
| Net investment income, nine months ended September 30other | $169.4M | – | increased by 21.1% |
| Total revenues, nine months ended September 30GAAP | 1,470,026 | – | – |
| Underwriting income, nine months ended September 30non-GAAP | $307M | – | – |
| Loss ratio, nine months ended September 30other | 54.5 % | – | – |
| Expense ratio, nine months ended September 30other | 21.6 % | – | – |
| Combined ratio, nine months ended September 30other | 76.1% | – | – |
| Net income, nine months ended September 30GAAP | $386.6M | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $16.97 | – | – |
| Net operating earnings, nine months ended September 30non-GAAP | $372.3M | – | – |
| Diluted operating earnings per share, nine months ended September 30non-GAAP | $16.34 | – | – |
| Annualized return on equity, nine months ended September 30GAAP | 26.6% | – | – |
| Annualized operating return on equity, nine months ended September 30non-GAAP | 25.6% | – | an increase from 25.4% |
| Effective tax rate, nine months ended September 30GAAP | 20.0% | – | – |
| Annualized gross investment return, nine months ended September 30other | 4.4% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the third quarter of 2026, the Company repurchased 269,004 shares of its common stock in the open market at an average price of $371.74 per share for a total cost of $100.0 million.
- At September 30, 2026, the Company had $237.5 million of capacity remaining under its share repurchase program.
- In the aggregate, the Company has repurchased 990,763 shares of its common stock for a total cost of $362.5 million.
- During the third quarter of 2026, the Company declared and paid a cash dividend of $0.25 per share of common stock for a total distribution of $5.6 million.
What drove it
- The decrease in gross written premiums was primarily due to heightened competition in the Company's property divisions.
- Property premiums declined 19.3% in the third quarter of 2026, including a decline of 26.8% in the Commercial Property Division.
- Gross written premiums in the Company's casualty business increased 0.9% for the third quarter of 2026, primarily due to an increase in bound accounts offset in part by a change in business mix towards smaller accounts.
- The increase in underwriting income was largely due to growth in net earned premiums and higher favorable development of loss reserves from prior accident years, offset in part by lower ceding commissions as a result of increased retention on the Company's reinsurance treaties.
- Net investment income increased due to growth in the Company's investment portfolio generated largely from the investment of strong operating cash flows.
- The portfolio repositioning reduced third-quarter pre-tax earnings by $37.6 million, and the Company stated that there was no impact to book value.
Concerns
- Gross written premiums decreased by 4.8% to $462.9 million.
- Property premiums declined 19.3% amid heightened competition in the Company's property divisions.
- The expense ratio was 22.0% for the third quarter of 2026 compared to 21.0% for the third quarter of 2025, primarily due to lower ceding commissions resulting from higher retention on reinsurance treaties.
- Net income included a $37.6 million pre-tax realized loss on the sale of fixed-maturity securities.
- Annualized return on equity was 19.9% for the third quarter of 2026 compared to 31.6% for the third quarter of 2025.
What to watch
- Property-division premium trends and the Commercial Property Division following declines of 19.3% and 26.8%, respectively, in the third quarter of 2026.
- Whether casualty premium growth, driven by bound accounts but affected by a mix shift toward smaller accounts, offsets property-market competition.
- The effect of increased reinsurance retention on ceding commissions, expense ratio and retained underwriting margin.
- Investment-income growth and the performance of reinvested higher-conviction common stocks and higher-yielding fixed-maturity investments.
- Future catastrophe losses and favorable development of loss reserves from prior accident years.
Balance sheet and cash flow
- Cash and invested assets totaled $5.5 billion at September 30, 2026 and $5.2 billion at December 31, 2025.
- Cash and cash equivalents were $ 160,508 at September 30, 2026 and $ 163,361 at December 31, 2025.
- Total investments were $ 5,331,172 at September 30, 2026 and $ 5,026,949 at December 31, 2025.
- Debt was $ 224,604 at September 30, 2026 and $ 224,397 at December 31, 2025.
- Stockholders' equity was $1.9 billion at September 30, 2026 and $2.0 billion at December 31, 2025.
- Book value per share was $85.25 at September 30, 2026 compared to $84.66 at December 31, 2025.
- Total assets were $ 6,431,103 at September 30, 2026 and $ 6,043,561 at December 31, 2025.
Analysis
Kinsale reported a mixed third quarter. Gross written premiums decreased by 4.8% to $462.9 million and net written premiums decreased by 1.5% to $399.1 million, while net earned premiums increased by 3.0% to $423.5 million. Management attributed the gross premium decline primarily to heightened competition in property divisions, where premiums declined 19.3%, including a 26.8% decline in Commercial Property. Casualty gross written premiums increased 0.9%, supported by more bound accounts and offset in part by a shift toward smaller accounts.
Underlying underwriting results remained strong. Underwriting income was $107.1 million compared with $105.7 million, and the combined ratio was 75.4% compared with 74.9%. The loss ratio improved to 53.4% from 53.9%, aided by higher favorable development of loss reserves from prior accident years. The expense ratio increased to 22.0% from 21.0%, which the company attributed to lower ceding commissions associated with higher retention on reinsurance treaties. Management said the economic effect of lower ceding commissions was more than offset by retained incremental underwriting margin and higher investment income.
Investment income was an additional source of earnings strength, increasing 17.5% to $58.3 million. The company cited investment portfolio growth generated largely from strong operating cash flows. GAAP earnings, however, reflected the portfolio repositioning: net income was $98.1 million, or $4.36 per diluted share, compared with $141.6 million, or $6.09 per diluted share. The company stated that the repositioning reduced third-quarter pre-tax earnings by $37.6 million, as lower-yielding fixed-maturity securities were sold at a loss and proceeds were reinvested in higher-yielding fixed-maturity investments. It stated that the repositioning had no impact to book value.
Non-GAAP net operating earnings increased to $128.3 million, or $5.70 per diluted share, from $121.2 million, or $5.21 per diluted share. For the first nine months, underwriting income was $307.0 million and the combined ratio was 76.1%, compared with $268.6 million and 77.5%. The nine-month loss ratio included 0.7% of current accident year catastrophe losses, compared with 2.3% in the prior-year period. The company returned $100.0 million through repurchases during the quarter and paid a $5.6 million cash dividend.
The release did not provide forward guidance. The principal reported operating variables are the durability of casualty growth against property competition, the expense effect of higher reinsurance retention, future favorable prior-year reserve development and catastrophe losses, and the contribution from the repositioned investment portfolio. Cash and invested assets totaled $5.5 billion, while stockholders' equity was $1.9 billion and book value per share was $85.25 at September 30, 2026.
Management, verbatim
Our underwriting results this quarter demonstrate discipline in a competitive market.
Michael P. Kehoe, Chairman, President and Chief Executive Officer
We continue to produce exceptional underwriting margins and strong investment income which allows us to return capital to stockholders.
Michael P. Kehoe, Chairman, President and Chief Executive Officer
Disciplined underwriting and technology-enabled low costs remain the foundation of our strategy to create long-term value for our stockholders.
Michael P. Kehoe, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, underwriting, earnings, combined-ratio, expense-ratio, tax-rate or capital-management guidance was not provided.
- Prior outlook was not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- GAAP operating income was not reported.
- Gross margin was not reported.
- Quarterly effective tax rate was not reported.
- Segment revenue for property divisions, Commercial Property Division and casualty business was not reported.
- Prior-quarter comparisons were not reported for the reported operating metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Kinsale Capital Group is a specialty property-casualty insurer listed on NYSE. The filing is its quarterly 8‑K earnings release.
Ticker impact
Kinsale Capital Group reported Q3 2026 earnings with net income down 30% YoY and gross written premiums falling 4.8%, a primary disclosure of its quarterly results.
likely downward pressure as investors price in lower earnings and premium growth
The report shows a material decline in net income and premiums versus the prior year, which typically triggers a sell-off for insurers.
Market effects
Signals pressure on property-casualty insurers facing competitive premium compression.
May affect U.S. regional insurance stocks as investors reassess underwriting trends.
Limited to U.S. insurance sector; no broader macro impact.
Counterpoint
If the company’s investment income surge offsets underwriting weakness, the stock could be undervalued.
Key entities
- ExecutiveMichael P. Kehoe
Chairman, President and CEO of Kinsale Capital Group, quoted in the filing.
