Kinsale Capital Group, Inc. (NYSE:KNSL) reported net income of $175.9 million, $7.72 per diluted share, for the second quarter of 2026 compared to $134.1 million, $5.76 per diluted share, for the second quarter of 2025. Net income was $288.4 million, $12.58 per diluted share, for the first half of 2026 compared to $223.3 million, $9.59 per diluted share, for the first half of 2025. Net income included after-tax catastrophe losses of $4.2 million in the second quarter of 2026 and $2.9 million in the second quarter of 2025. Net income included after-tax catastrophe losses of $5.5 million in the first half of 2026 and $20.8 million in the first half of 2025.

Net operating earnings⁽¹⁾ were $126.2 million, $5.54 per diluted share, for the second quarter of 2026 compared to $111.4 million, $4.78 per diluted share, for the second quarter of 2025. Net operating earnings⁽¹⁾ were $244.0 million, $10.64 per diluted share, for the first half of 2026 compared to $197.8 million, $8.49 per diluted share, for the first half of 2025.

	Three Months Ended June 30,
	2026		2025		% Change
Diluted earnings per share	$	7.72	$	5.76	34.0	%
Diluted operating earnings per share⁽¹⁾	$	5.54	$	4.78	15.9	%

	Six Months Ended June 30,
	2026		2025		% Change
Diluted earnings per share	$	12.58	$	9.59	31.2	%
Diluted operating earnings per share⁽¹⁾	$	10.64	$	8.49	25.3	%

Highlights for the quarter included:

Gross written premiums decreased by 5.0% to $527.6 million, and net written premiums decreased by 1.4% to $452.5 million
Net earned premiums increased by 8.9% to $417.6 million
Net investment income increased by 19.9% to $55.7 million
Underwriting income⁽²⁾ was $105.4 million, resulting in a combined ratio⁽⁵⁾ of 75.5%
Annualized return on equity⁽⁶⁾was 28.9% for the six months ended June 30, 2026
Annualized operating return on equity⁽⁷⁾was 24.4% for the six months ended June 30, 2026

"We delivered another quarter of exceptional financial results," said Chairman, President and Chief Executive Officer, Michael P. Kehoe. "Our business continues to generate consistent and growing underwriting profits and investment income. We are generating significant operating cash flows resulting in excess capital and are pleased to report an additional share repurchase authorization of $250 million. Our focus remains on delivering sustainable long-term value creation for stockholders as we execute our strategy of disciplined underwriting and technology-enabled low costs."

Results of Operations

Underwriting Results

Gross written premiums were $527.6 million for the second quarter of 2026 compared to $555.5 million for the second quarter of 2025, a decrease of 5.0%. Gross written premiums were $1,009.6 million for the first half of 2026 compared to $1,039.8 million for the first half of 2025, a decrease of 2.9%. The decrease in gross written premiums was primarily due to heightened competition in the Commercial Property Division where premiums declined 32.7% and 30.9% in the second quarter and first half of 2026, respectively. Excluding the Commercial Property Division, gross written premiums increased 3.7% for the second quarter of 2026 and 4.8% for the first half of 2026 compared to the prior-year periods, reflecting continued strong submission flow across most divisions and an increase in bound accounts offset in part by lower average premium per policy as a result of heightened competition.

Underwriting income⁽²⁾ was $105.4 million, resulting in a combined ratio⁽⁵⁾ of 75.5% for the second quarter of 2026, compared to $95.5 million and a combined ratio⁽⁵⁾ of 75.8% for the second quarter of 2025. The increase in underwriting income⁽²⁾was largely due to growth in net earned premiums and higher favorable development of loss reserves from prior accident years offset in part by lower ceding commissions as a result of increased retention on the Company's reinsurance treaties. Loss⁽³⁾and expense⁽⁴⁾ ratios were 53.8% and 21.7%, respectively, for the second quarter of 2026 compared to 55.1% and 20.7% for the second quarter of 2025.

Underwriting income⁽²⁾ was $199.9 million, resulting in a combined ratio⁽⁵⁾ of 76.4% for the first half of 2026 compared to $162.9 million and a combined ratio⁽⁵⁾ of 78.8% for the first half of 2025. The increase in underwriting income⁽²⁾ was largely due to growth in net earned premiums, lower catastrophe losses and higher favorable development of loss reserves from prior accident years. Loss⁽³⁾ and expense⁽⁴⁾ ratios were 55.0% and 21.4%, respectively, for the first half of 2026 compared to 58.5% and 20.3% for the first half of 2025. The loss ratio for the first half of 2025 included 3.4 points of net catastrophe losses, primarily related to the Palisades Fire.

The increase in the expense ratio for both the second quarter and first half of 2026 compared to the prior-year periods was primarily due to lower ceding commissions as a result of higher retention on the Company’s reinsurance treaties. The economic effect of lower ceding commissions was more than offset by the retention of incremental underwriting margin and higher investment income.

Summary of Operating Results

The Company’s operating results for the three and six months ended June 30, 2026 and 2025 are summarized as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	($ in thousands)
Gross written premiums	$	527,608		$	555,522		$	1,009,626		$	1,039,797
Ceded written premiums		(75,125	)		(96,822	)		(153,881	)		(199,392	)
Net written premiums	$	452,483		$	458,700		$	855,745		$	840,405

Net earned premiums	$	417,597		$	383,613		$	824,456		$	749,403
Fee income		11,941			10,796			22,936			20,355
Losses and loss adjustment expenses		230,922			217,359			466,041			450,335
Underwriting, acquisition and insurance expenses		93,171			81,597			181,405			156,509
Underwriting income⁽²⁾	$	105,445		$	95,453		$	199,946		$	162,914

Loss ratio⁽³⁾		53.8	%		55.1	%		55.0	%		58.5	%
Expense ratio⁽⁴⁾		21.7	%		20.7	%		21.4	%		20.3	%
Combined ratio⁽⁵⁾		75.5	%		75.8	%		76.4	%		78.8	%

Annualized return on equity⁽⁶⁾		35.2	%		32.5	%		28.9	%		27.9	%
Annualized operating return on equity⁽⁷⁾		25.2	%		27.0	%		24.4	%		24.7	%

⁽¹⁾	Net operating earnings is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.
⁽²⁾	Underwriting income is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.
⁽³⁾	Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to the sum of net earned premiums and fee income.
⁽⁴⁾	Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income.
⁽⁵⁾	The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding.
⁽⁶⁾	Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
⁽⁷⁾	Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

The following table summarizes losses incurred for the current accident year and the development of prior accident years for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30, 2026					Three Months Ended June 30, 2025
	Losses and Loss Adjustment Expenses			% of Sum of Earned Premiums and Fee Income		Losses and Loss Adjustment Expenses			% of Sum of Earned Premiums and Fee Income
Loss ratio:	($ in thousands)
Current accident year	$	244,963		57.0	%	$	229,100		58.1	%
Current accident year - catastrophe losses		5,353		1.3	%		3,705		0.9	%
Effect of prior accident year development		(19,394	)	(4.5	)%		(15,446	)	(3.9	)%
Total	$	230,922		53.8	%	$	217,359		55.1	%

	Six Months Ended June 30, 2026					Six Months Ended June 30, 2025
	Losses and Loss Adjustment Expenses			% of Sum of Earned Premiums and Fee Income		Losses and Loss Adjustment Expenses			% of Sum of Earned Premiums and Fee Income
Loss ratio:	($ in thousands)
Current accident year	$	497,151		58.7	%	$	454,147		59.0	%
Current accident year - catastrophe losses		6,989		0.8	%		26,283		3.4	%
Effect of prior accident year development		(38,099	)	(4.5	)%		(30,095	)	(3.9	)%
Total	$	466,041		55.0	%	$	450,335		58.5	%

Investment Results

Net investment income was $55.7 million in the second quarter of 2026 compared to $46.5 million in the second quarter of 2025, an increase of 19.9%. Net investment income was $111.2 million in the first half of 2026 compared to $90.3 million in the first half of 2025, an increase of 23.1%. These increases were driven by growth in the Company's investment portfolio generated largely from the investment of strong operating cash flows. The Company’s investment portfolio had an annualized gross investment return⁽⁸⁾ of 4.5% and 4.3% for the first half of 2026 and 2025, respectively. Funds are generally invested conservatively in high-quality securities with an average credit quality of "AA-" and the weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.3 years and 4.0 years at June 30, 2026 and December 31, 2025, respectively. Cash and invested assets totaled $5.5 billion at June 30, 2026 and $5.2 billion at December 31, 2025.

⁽⁸⁾	Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of average beginning and ending book values of those investments during the period.

Capital Return to Stockholders

During the second quarter of 2026, the Company repurchased 321,055 shares of its common stock in the open market at an average price of $311.47 per share for a total cost of $100.0 million. In July 2026, the Company's Board of Directors approved an additional $250 million share repurchase authorization, bringing the remaining capacity to $337.5 million under the share repurchase program.

During the second quarter of 2026, the Company declared and paid a cash dividend of $0.25 per share of common stock for a total distribution of $5.7 million.

Other

The effective tax rates for the six months ended June 30, 2026 and June 30, 2025 were 19.8% and 20.4%, respectively. In the first half of 2026 and 2025, the effective tax rates were lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.

Stockholders' equity was $2.0 billion at both June 30, 2026 and December 31, 2025. Book value per share was $89.34 at June 30, 2026 compared to $84.66 at December 31, 2025. Annualized operating return on equity⁽⁷⁾was 24.4% for the first half of 2026, a decrease from 24.7% for the first half of 2025. The decrease was due primarily to higher average stockholders' equity offset in part by higher profitability compared to the prior-year period.

Non-GAAP Financial Measures

Net Operating Earnings

Net operating earnings is defined as net income excluding the effects of the change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and change in allowance for credit losses on investments, after taxes. Management believes the exclusion of these items provides a useful comparison of the Company's underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-GAAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.

For the three and six months ended June 30, 2026 and 2025, net income and diluted earnings per share reconcile to net operating earnings and diluted operating earnings per share as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	($ in thousands, except per share data)
Net operating earnings:
Net income	$	175,874		$	134,121		$	288,428		$	223,348
Adjustments:
Change in the fair value of equity securities, before taxes		(56,196	)		(28,621	)		(47,840	)		(31,659	)
Income tax expense ⁽¹⁾		11,801			6,010			10,046			6,648
Change in fair value of equity securities, after taxes		(44,395	)		(22,611	)		(37,794	)		(25,011	)

Net realized investment gains, before taxes		(6,729	)		(136	)		(8,448	)		(673	)
Income tax expense ⁽¹⁾		1,413			29			1,774			141
Net realized investment gains, after taxes		(5,316	)		(107	)		(6,674	)		(532	)

Change in allowance for credit losses on investments, before taxes		—			(5	)		27			15
Income tax (benefit) expense ⁽¹⁾		—			1			(6	)		(3	)
Change in allowance for credit losses on investments, after taxes		—			(4	)		21			12
Net operating earnings	$	126,163		$	111,399		$	243,981		$	197,817

Diluted operating earnings per share:
Diluted earnings per share	$	7.72		$	5.76		$	12.58		$	9.59
Change in the fair value of equity securities, after taxes, per share		(1.95	)		(0.97	)		(1.65	)		(1.07	)
Net realized investment gains, after taxes, per share		(0.23	)		—			(0.29	)		(0.02	)
Diluted operating earnings per share⁽²⁾	$	5.54		$	4.78		$	10.64		$	8.49

Operating return on equity:
Average equity⁽³⁾	$	2,001,230		$	1,652,774		$	1,997,349		$	1,603,067
Annualized return on equity⁽⁴⁾		35.2	%		32.5	%		28.9	%		27.9	%
Annualized operating return on equity⁽⁵⁾		25.2	%		27.0	%		24.4	%		24.7	%

⁽¹⁾	Income taxes on adjustments to reconcile net income to net operating earnings use a 21% effective tax rate.
⁽²⁾	Diluted operating earnings per share may not add due to rounding.
⁽³⁾	Average equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two.
⁽⁴⁾	Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.
⁽⁵⁾	Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

Underwriting Income

Underwriting income is defined as net income excluding net investment income, the change in the fair value of equity securities, net realized investment gains and losses, change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. The Company uses underwriting income as an internal performance measure in the management of its operations because the Company believes it gives management and users of the Company's financial information useful insight into the Company's results of operations and underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.

For the three and six months ended June 30, 2026 and 2025, net income reconciles to underwriting income as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	(in thousands)
Net income	$	175,874		$	134,121		$	288,428		$	223,348
Income tax expense		43,930			34,168			71,036			57,252
Income before income taxes		219,804			168,289			359,464			280,600
Net investment income		(55,740	)		(46,473	)		(111,163	)		(90,292	)
Change in the fair value of equity securities		(56,196	)		(28,621	)		(47,840	)		(31,659	)
Net realized investment gains		(6,729	)		(136	)		(8,448	)		(673	)
Change in allowance for credit losses on investments		—			(5	)		27			15
Interest expense		3,323			2,557			6,490			5,095
Other expenses ⁽⁶⁾		1,299			12			1,828			672
Other income		(316	)		(170	)		(412	)		(844	)
Underwriting income	$	105,445		$	95,453		$	199,946		$	162,914

⁽⁶⁾	Other expenses includes primarily corporate expenses not allocated to the Company's insurance operations.

Conference Call

Kinsale Capital Group will hold a conference call to discuss this press release on Friday, July 24, 2026 at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (833) 461-5787, conference ID# 761838118, or via the Internet by going to www.kinsalecapitalgroup.com and clicking on the "Investor Relations" link. A replay of the call will be available on the website.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About Kinsale Capital Group, Inc.

Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES Unaudited Consolidated Statements of Income and Comprehensive Income

	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Revenues	(in thousands, except per share data)
Gross written premiums	$	527,608		$	555,522		$	1,009,626		$	1,039,797
Ceded written premiums		(75,125	)		(96,822	)		(153,881	)		(199,392	)
Net written premiums		452,483			458,700			855,745			840,405
Change in unearned premiums		(34,886	)		(75,087	)		(31,289	)		(91,002	)
Net earned premiums		417,597			383,613			824,456			749,403
Fee income		11,941			10,796			22,936			20,355
Net investment income		55,740			46,473			111,163			90,292
Change in the fair value of equity securities		56,196			28,621			47,840			31,659
Net realized investment gains		6,729			136			8,448			673
Change in allowance for credit losses on investments		—			5			(27	)		(15	)
Other income		316			170			412			844
Total revenues		548,519			469,814			1,015,228			893,211

Expenses
Losses and loss adjustment expenses		230,922			217,359			466,041			450,335
Underwriting, acquisition and insurance expenses		93,171			81,597			181,405			156,509
Interest expense		3,323			2,557			6,490			5,095
Other expenses		1,299			12			1,828			672
Total expenses		328,715			301,525			655,764			612,611
Income before income taxes		219,804			168,289			359,464			280,600
Total income tax expense		43,930			34,168			71,036			57,252
Net income		175,874			134,121			288,428			223,348

Other comprehensive income (loss)
Change in net unrealized losses on available-for-sale investments, net of taxes		(8,611	)		14,453			(43,524	)		40,835
Total comprehensive income	$	167,263		$	148,574		$	244,904		$	264,183

Earnings per share:
Basic	$	7.73		$	5.79		$	12.61		$	9.64
Diluted	$	7.72		$	5.76		$	12.58		$	9.59

Weighted-average shares outstanding:
Basic		22,758			23,175			22,867			23,172
Diluted		22,785			23,291			22,921			23,301

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets

	June 30, 2026		December 31, 2025
Assets	(in thousands)
Investments:
Fixed-maturity securities at fair value	$	4,470,546	$	4,341,450
Equity securities at fair value		773,118		626,399
Real estate investments, net		54,668		55,236
Short-term investments		—		3,864
Total investments		5,298,332		5,026,949

Cash and cash equivalents		210,511		163,361
Investment income due and accrued		33,486		30,971
Premiums receivable, net		148,047		124,593
Reinsurance recoverables, net		415,096		394,329
Ceded unearned premiums		44,398		44,506
Deferred policy acquisition costs, net of ceding commissions		124,743		118,737
Intangible assets		3,538		3,538
Deferred income tax asset, net		46,297		42,191
Other assets		104,382		94,386
Total assets	$	6,428,830	$	6,043,561

Liabilities & Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses	$	3,192,552	$	2,890,870
Unearned premiums		891,575		860,394
Payable to reinsurers		32,437		34,385
Accounts payable and accrued expenses		36,526		66,301
Debt		224,535		224,397
Other liabilities		16,091		7,631
Total liabilities		4,393,716		4,083,978

Stockholders' equity		2,035,114		1,959,583
Total liabilities and stockholders' equity	$	6,428,830	$	6,043,561

View source version on businesswire.com: https://www.businesswire.com/news/home/20260723357017/en/

Kinsale Capital Group, Inc.

Bryan Petrucelli

Executive Vice President, Chief Financial Officer and Treasurer

804-289-1272

ir@kinsalecapitalgroup.com