Kinsale Capital Group In — Financial Results
Revenue and Profit Grew Solidly in 2025, Though Premium Growth Is Slowing
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Gross Written Premiums | $1.98B | $1.87B | +5.7% |
| Net Earned Premiums | $1.58B | $1.35B | +16.7% |
| Net Income | $503.6M | $414.8M | +21.4% |
Kinsale grew its top line and profits meaningfully, but the 5.7% growth in gross written premiums (the total insurance policies sold before ceding any to reinsurers) is notably slower than prior years. Net earned premiums grew much faster at 16.7% because Kinsale kept more of each premium dollar rather than passing it to reinsurers — the net retention ratio rose from 79.0% to 81.7%.
Commercial Property Is a Headwind as Competition Returns
Kinsale's largest division, Commercial Property, saw gross written premiums fall 17.9% as pricing softened and standard carriers re-entered the market. This dragged the overall growth rate and reduced the average premium per policy from $15,100 to $13,400. Excluding Commercial Property, the rest of the business grew 13.3%, showing the core franchise is still expanding — but this division will be worth watching if competitive pressure persists.
Underwriting Profitability Remains Exceptional
| Metric | 2025 | 2024 |
|---|---|---|
| Combined Ratio | 75.9% | 76.4% |
| Loss Ratio | 55.1% | 55.8% |
| Expense Ratio | 20.8% | 20.6% |
A combined ratio (total costs as a percentage of premiums earned — lower is better) of 75.9% means Kinsale kept roughly 24 cents of underwriting profit for every premium dollar, before even counting investment income. That is an unusually strong result in insurance. Favorable development from prior years (meaning earlier claims cost less than expected) contributed $62.8 million to the improvement.
Investment Income Surged 28%, Adding a Second Profit Engine
Net investment income rose from $150.3 million to $192.2 million, a 27.9% jump, driven by a larger portfolio funded by strong operating cash flows. The investment portfolio now totals $5.2 billion, with most held in high-quality fixed-income securities rated "AA-" on average. This growing income stream meaningfully supplements underwriting profits.
Return on Equity Dipped as the Capital Base Expanded
Return on equity (net income divided by shareholders' equity — a measure of how efficiently the company uses its capital) fell from 32.3% to 29.3%. This happened not because the business got worse, but because equity grew strongly — from $1.5 billion to $2.0 billion — through retained profits and investment gains. The company partially offset this with $90 million in share buybacks and authorized a fresh $250 million repurchase program in December 2025.
Dividend Raised Notably for 2026
Kinsale paid a quarterly dividend of $0.17 per share throughout 2025. In February 2026, the board raised that to $0.25 per share — a 47% increase — signaling management's confidence in the business's earnings power going forward.