Kinsale Capital Group, Inc. has reported stronger underwriting income of $94.5 million and a combined ratio of 77.4% for the first quarter of 2026, compared to $67.5 million and 82.1%, respectively, for Q1’25.
The increase in underwriting income was driven by growth in net earned premiums of $407 million as compared to $366 million in Q1’25, lower catastrophe losses, and higher favourable development of loss reserves from prior accident years.
For Q’26, gross written premiums (GWP) dipped by 0.5% to $482 million, compared to $484.3 million in Q1’25. The decrease was due to a 28.3% decline in Kinsale’s largest division, commercial property, driven by continued rate decreases from heightened competition, including from standard carriers.
The carrier emphasised that excluding the division, GWP rose 6% compared to the prior-year period, reflecting continued strong submission flow across most divisions.
Meanwhile, net written premiums for Q1’26 were $403.3 million, a 5.6% increase when compared to $381.7 million in Q1’25, driven by an increase in retention on the firm’s reinsurance treaties effective with the June 2025 renewal.
For the first quarter of 2026, loss and expense ratios were 56.3% and 21.1%, respectively, compared to 62.1% and 20%, respectively, in Q1’25.
Net catastrophe losses added 0.4 points to the Q1’26 loss ratio, while the Q1’25 loss ratio included 6.0 points of net catastrophe losses, primarily related to the Palisades Fire. After-tax catastrophe losses hit $1.3 million for Q1’26 compared with $17.8 million for Q1’25.
Kinsale explained that results for Q1’26 and Q1’25 included net favourable development of loss reserves from prior accident years of $18.7 million and $14.6 million, respectively.
Meanwhile, the increase in the expense ratio to 21.1% in Q1’26 was primarily due to lower ceding commissions as a result of higher retention on the company’s reinsurance treaties.
Kinsale’s net income for Q1’26 rose to $112.6 million, compared to $89.2 million in Q1’25.
For the quarter, net operating earnings were $117.8 million, compared to $86.4 million in Q1’25. Net investment income rose by 26.5% to $55.4 million, compared to $43.8 million in Q1’25, driven by strong operating cash flows.
Michael P. Kehoe, Chairman, President and Chief Executive Officer, Kinsale, commented, “Our first quarter results demonstrate exceptional profitability. We have confidence in our strategy of underwriting discipline and maintaining structurally low costs.
“Particularly in a competitive market, we remain focused on delivering long-term stockholder value throughout the market cycle by generating consistent and attractive underwriting profits while managing our capital prudently.”
