Kinsale Capital Group In — Income Statement, Cash Flows & Balance Sheet
Is Kinsale Capital Group profitable?
Kinsale has delivered three straight years of accelerating profit growth, with net income up 21% in 2025.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net earned premiums ($000s) | $1,350,470 | $1,575,842 | +17% |
| Net income ($000s) | $414,843 | $503,614 | +21% |
| Diluted EPS | $17.78 | $21.65 | +22% |
| Net income margin | 26.1% | 26.9% | +0.8 pts |
Revenue growth is broad-based — premiums, investment income, and fee income all rose — and the company converted a growing share of that revenue into profit, reflecting continued operating leverage.
Investment income has become a meaningful and growing profit driver alongside underwriting.
| Revenue Source ($000s) | 2024 | 2025 | Change |
|---|---|---|---|
| Net investment income | $150,287 | $192,192 | +28% |
| Change in fair value of equity securities | $43,367 | $58,836 | +36% |
A rapidly expanding investment portfolio — fuelled by premium cash flows — is adding materially to the bottom line each year, supplementing core underwriting profits.
Where does Kinsale Capital Group's revenue come from?
Kinsale writes across more than 20 specialty insurance divisions; most grew in 2025, though Commercial Property pulled back sharply.
| Division ($000s) | 2024 GWP | 2025 GWP | Change |
|---|---|---|---|
| Commercial Property | $456,170 | $374,451 | -18% |
| Excess Casualty | $245,137 | $276,998 | +13% |
| General Casualty | $169,162 | $207,888 | +23% |
| Small Business Casualty | $195,593 | $202,412 | +3% |
| All other divisions | $804,279 | $915,422 | +14% |
| Total GWP | $1,870,341 | $1,977,171 | +6% |
The deliberate pullback in Commercial Property — the largest single division — moderated overall gross premium growth to 6%, while casualty lines picked up the slack with double-digit gains across multiple divisions.
Does Kinsale Capital Group generate cash?
Kinsale is a prolific cash generator, producing over $1 billion from operations for the first time in 2025.
| Cash Flow Item ($000s) | 2024 | 2025 | Change |
|---|---|---|---|
| Net cash from operations | $976,301 | $1,043,738 | +7% |
| Purchase of fixed-maturity securities | $(1,557,541) | $(2,494,190) | +60% |
| Treasury stock repurchases | $(10,000) | $(89,998) | +800% |
Operating cash flow comfortably exceeded reported net income — typical for a growing insurer collecting premiums before paying claims — and Kinsale deployed that cash aggressively into its investment portfolio and a meaningful share buyback programme authorised at up to $250 million.
How strong is Kinsale Capital Group's balance sheet?
Stockholders' equity grew by a third in 2025, reflecting retained profits and an improved investment portfolio.
| Balance Sheet Item ($000s) | 2024 | 2025 | Change |
|---|---|---|---|
| Total stockholders' equity | $1,483,561 | $1,959,583 | +32% |
| Total debt | $184,122 | $224,397 | +22% |
| Debt-to-equity ratio | 12.4% | 11.5% | -0.9 pts |
Despite drawing on its credit facility during the year, debt remains modest relative to equity and the ratio actually improved as equity grew faster than borrowings.
Reserve liabilities are large and growing, which is normal for an insurer — and Kinsale's prior-year reserves have consistently released favourably.
| Reserve Item ($000s) | 2024 | 2025 | Change |
|---|---|---|---|
| Gross loss reserves | $2,285,668 | $2,890,870 | +26% |
| Prior-year favourable development | $(37,655) | $(62,817) | +67% |
Loss reserves (estimates of future claim costs) are the largest liability on any insurer's balance sheet. Kinsale's track record of releasing prior-year reserves — meaning past estimates proved to be conservative — is a positive signal about reserving discipline, though reserves always carry inherent uncertainty.