Kinsale Capital Group, Inc. has reported net income of $5.1 million for the first quarter of 2020, as results were hit by COVID-19 induced volatility in the financial markets.
This compares with income of $18.7 million during the same period last year, with Kinsale attributing the 72.8% drop to a decline in the value of equity securities.
Operating earnings, however, increased 24.5% from $13.8 million to $17.2 million over the same timeframe.
Performance was helped by a 46.6% growth in gross written premiums to $124.0 million compared to the first quarter of 2019, as well as increased underwriting income of $14.4 million, resulting in a combined ratio of 83.9%.
The improved underwriting result was mainly due to premium growth period over the Q1 period, offset in part by lower favourable development on loss reserves from prior accident years.
Loss and expense ratios were 59.9% and 24.0%, respectively, for the first quarter of 2020 compared to 54.9% and 25.4% for the first quarter of 2019.
Results for both years also included favourable development on loss of $3.0 million, or 3.3 points, and $6.4 million, or 10.4 points, respectively.
And net investment income increased 32.0% to $6.0 million, with a 17.1% annualized operating return on equity.
Kinsale President and Chief Executive Officer, Michael P. Kehoe, commented: “Kinsale achieved high levels of profit and growth in the first quarter of 2020 and proved again the strength and resiliency of the company’s business model.”
“Due to COVID-19 related restrictions, over 90% of Kinsale employees were working remotely by the end of the quarter with no loss in productivity or service levels.”
