Kinsale Capital Group, Inc. Q4 FY2025 earnings call

• Underwriting: Combined ratio of 71.7% for the quarter, full year operating ROE 26%, book value and float growth.
• Competition: E&S market competitive, with Commercial Property division facing intense competition but other divisions like small business property, high value homeowners, etc., experiencing growth.
• Expense Advantage: Expense ratio under 21%, much lower than many competitors.
• Technology/AI: Custom operating system, analytics capabilities, AI integrated in underwriting and business processes, driving productivity gains.
• Capital Return: $250,000,000 buyback authorization announced, quarterly dividend increased to $0.25, while maintaining conservative capital levels.

In the fourth quarter of 2025, Kinsale Capital Group, Inc.’s diluted operating earnings per share increased by 26% compared to Q4 2024. Gross written premium grew by 1.8% and net written premium by 7.1% over the same period. The company posted a combined ratio of 71.7% for the quarter and a full year operating ROE of 26%. Book value per share increased by 33% since year-end 2024, and float increased by 23%. The Commercial Property division, which writes larger catastrophe-exposed accounts, has been shrinking, but excluding this division, gross written premium grew by 10.2% in Q4 2025 and 13.3% for the year.

• Expect to deploy the $250M buyback authorization over the next year or so.
• Confident in generating best-in-class returns and growth with conservative loss reserves.
• Focus on achieving a low 20s ROE or better while balancing growth and profitability.

• Competitive pressure in segments like large Commercial Property.
• Impact of weather, litigation, and claim activity on financial results.
• Varying market competitiveness across different segments.

Q: On the commercial property, was it down harder than last quarter?

A: Influx from London and some MGAs in the large layered and shared space caused the deceleration in growth.

Q: Any thoughts on how commercial property might proceed in 2026?

A: It ebbs and flows month by month, but should stabilize after a couple of quarters.

Q: On submission figure of up 6% excluding unsolicited submissions, is it the same methodology?

A: That is the same methodology.

Q: Thoughts on business retention ratios and flow back to admitted market?

A: Renewal retention is in the very low 70% range, steady, and market is dynamic with business moving back and forth.