Kinsale Capital Group, Inc. has announced its financial results for the first quarter of 2025, reporting a net income of $89.2 million, which includes after-tax catastrophe losses of $17.8 million.
This year’s Q1 net income compared to the $98.9 million reported in Q1 2024, a period that also saw significant lower after-tax catastrophe losses of $0.5 million when compared with Q1 2025.
Net operating earnings in Q1 2025 were $86.4 million, compared to $81.6 million in Q1 2024.
Kinsale also reported a 7.9% year-over-year increase in gross written premiums (GWP), reaching $484.3 million in the first quarter of 2025 compared to $448.6 million in the first quarter of 2024.
Notably, GWP within Kinsale’s largest division, Commercial Property, decreased by 18.4% compared to the prior year period. The company attributed this decline to rate declines and an increasingly competitive environment including from standard carriers.
Excluding the Commercial Property Division, gross written premiums grew 16.7%. Net written premiums also saw an increase, reaching $381.7 million in the first quarter of 2025, up from $351.05 million seen in the same period last year.
Kinsale’s underwriting income for the first quarter of 2025 was $67.5 million, resulting in a combined ratio of 82.1%, compared to $65.1 million and a combined ratio of 79.5% in the first quarter of 2024.
According to the company, the rise in underwriting income was primarily driven by continued business growth, partially offset by increased catastrophe losses.
Loss and expense ratios were 62.1% and 20.0%, respectively, for Q1 2025, compared to 58.8% and 20.7% for Q1 2024. Results for the first quarter of 2025 and 2024 included net favorable development of loss reserves from prior accident years of $14.6 million, or 3.9 points, and $8.4 million, or 2.7 points, respectively.
The loss ratio for the first quarter of 2025 included 6.0 points of net catastrophe losses, primarily related to the Palisades Fire. In contrast, the loss ratio for the first quarter of 2024 included a minimal 0.2 points of net catastrophe losses.
Net investment income experienced a significant increase of 33.1%, reaching $43.8 million compared to the first quarter of 2024. Kinsale stated that this growth was largely attributable to the expansion of the company’s investment portfolio, driven by the investment of robust operating cash flows.
Chairman and Chief Executive Officer, Michael P. Kehoe, commented: “Our business continues to produce exceptional profitability through the market cycle. We remain confident in our ability to deliver sustainable long-term value for stockholders as we execute our strategy of disciplined underwriting and technology-enabled expense management.”
