Kinsale Capital Group, Inc. (NYSE:KNSL) reported net income of $98.1 million, $4.36 per diluted share, for the third quarter of 2026 compared to $141.6 million, $6.09 per diluted share, for the third quarter of 2025. Net income was $386.6 million, $16.97 per diluted share, for the first nine months of 2026 compared to $365.0 million, $15.67 per diluted share, for the first nine months of 2025. Net income included after-tax catastrophe losses of $1.7 million in the third quarter of 2026 and $1.0 million in the third quarter of 2025. Net income included after-tax catastrophe losses of $7.2 million in the first nine months of 2026 and $21.7 million in the first nine months of 2025.

Net operating earnings⁽¹⁾ were $128.3 million, $5.70 per diluted share, for the third quarter of 2026 compared to $121.2 million, $5.21 per diluted share, for the third quarter of 2025. Net operating earnings⁽¹⁾ were $372.3 million, $16.34 per diluted share, for the first nine months of 2026 compared to $319.0 million, $13.70 per diluted share, for the first nine months of 2025.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Diluted earnings per share	$	4.36	$	6.09	$	16.97	$	15.67
Diluted operating earnings per share⁽¹⁾	$	5.70	$	5.21	$	16.34	$	13.70

Highlights for the quarter included:

Gross written premiums decreased by 4.8% to $462.9 million, and net written premiums decreased by 1.5% to $399.1 million
Net earned premiums increased by 3.0% to $423.5 million
Net investment income increased by 17.5% to $58.3 million
Underwriting income⁽²⁾ was $107.1 million, resulting in a combined ratio⁽⁵⁾ of 75.4%
Annualized return on equity⁽⁶⁾was 26.6% for the nine months ended September 30, 2026
Annualized operating return on equity⁽⁷⁾was 25.6% for the nine months ended September 30, 2026
Net income includes a $37.6 million pre-tax realized loss on the sale of fixed-maturity securities due to a strategic repositioning of the investment portfolio expected to improve long-term returns

"Our underwriting results this quarter demonstrate discipline in a competitive market," said Chairman, President and Chief Executive Officer, Michael P. Kehoe. "We continue to produce exceptional underwriting margins and strong investment income which allows us to return capital to stockholders. Disciplined underwriting and technology-enabled low costs remain the foundation of our strategy to create long-term value for our stockholders."

Results of Operations

Underwriting Results

Gross written premiums were $462.9 million for the third quarter of 2026 compared to $486.3 million for the third quarter of 2025, a decrease of 4.8%. Gross written premiums were $1,472.5 million for the first nine months of 2026 compared to $1,526.0 million for the first nine months of 2025, a decrease of 3.5%. The decrease in gross written premiums was primarily due to heightened competition in the Company's property divisions, where premiums declined 19.3% and 18.7% in the third quarter and first nine months of 2026, respectively, including declines of 26.8% and 29.8% in the Commercial Property Division. Gross written premiums in the Company's casualty business increased 0.9% for the third quarter of 2026 and 3.0% for the first nine months of 2026 compared to the prior-year periods, primarily due to an increase in bound accounts offset in part by a change in business mix towards smaller accounts.

Underwriting income⁽²⁾ was $107.1 million, resulting in a combined ratio⁽⁵⁾ of 75.4% for the third quarter of 2026, compared to $105.7 million and a combined ratio⁽⁵⁾ of 74.9% for the third 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 53.4% and 22.0%, respectively, for the third quarter of 2026 compared to 53.9% and 21.0% for the third quarter of 2025.

Underwriting income⁽²⁾ was $307.0 million, resulting in a combined ratio⁽⁵⁾ of 76.1% for the first nine months of 2026 compared to $268.6 million and a combined ratio⁽⁵⁾ of 77.5% for the first nine months 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 54.5% and 21.6%, respectively, for the first nine months of 2026 compared to 56.9% and 20.6% for the first nine months of 2025. The loss ratio for the first nine months of 2025 included 2.3 points of net catastrophe losses, primarily related to the Palisades Fire.

The increase in the expense ratio for both the third quarter and first nine months 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 nine months ended September 30, 2026 and 2025 are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
	($ in thousands)
Gross written premiums	$	462,868		$	486,251		$	1,472,494		$	1,526,048
Ceded written premiums		(63,724	)		(81,191	)		(217,605	)		(280,583	)
Net written premiums	$	399,144		$	405,060		$	1,254,889		$	1,245,465

Net earned premiums	$	423,472		$	410,957		$	1,247,928		$	1,160,360
Fee income		11,099			10,300			34,035			30,655
Losses and loss adjustment expenses		232,079			227,162			698,120			677,497
Underwriting, acquisition and insurance expenses		95,429			88,423			276,834			244,932
Underwriting income⁽²⁾	$	107,063		$	105,672		$	307,009		$	268,586

Loss ratio⁽³⁾		53.4	%		53.9	%		54.5	%		56.9	%
Expense ratio⁽⁴⁾		22.0	%		21.0	%		21.6	%		20.6	%
Combined ratio⁽⁵⁾		75.4	%		74.9	%		76.1	%		77.5	%

Annualized return on equity⁽⁶⁾		19.9	%		31.6	%		26.6	%		29.1	%
Annualized operating return on equity⁽⁷⁾		26.0	%		27.0	%		25.6	%		25.4	%

⁽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 nine months ended September 30, 2026 and 2025:

	Three Months Ended September 30, 2026					Three Months Ended September 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	$	249,570		57.4	%	$	241,704		57.3	%
Current accident year - catastrophe losses		2,173		0.5	%		1,216		0.3	%
Effect of prior accident year development		(19,664	)	(4.5	)%		(15,758	)	(3.7	)%
Total	$	232,079		53.4	%	$	227,162		53.9	%

	Nine Months Ended September 30, 2026					Nine Months Ended September 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	$	746,721		58.3	%	$	695,851		58.4	%
Current accident year - catastrophe losses		9,162		0.7	%		27,499		2.3	%
Effect of prior accident year development		(57,763	)	(4.5	)%		(45,853	)	(3.8	)%
Total	$	698,120		54.5	%	$	677,497		56.9	%

Investment Results

Net investment income was $58.3 million in the third quarter of 2026 compared to $49.6 million in the third quarter of 2025, an increase of 17.5%. Net investment income was $169.4 million in the first nine months of 2026 compared to $139.9 million in the first nine months of 2025, an increase of 21.1%. 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 4.4% and 4.3% for the first nine months 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 4.4 years and 4.0 years at September 30, 2026 and December 31, 2025, respectively. Cash and invested assets totaled $5.5 billion at September 30, 2026 and $5.2 billion at December 31, 2025.

During the third quarter of 2026, the Company repositioned a portion of its investment portfolio to improve expected long-term returns. The Company sold certain common stock holdings in a gain position and reinvested the proceeds in higher conviction common stock investments. The Company simultaneously sold lower-yielding fixed-maturity securities in a largely offsetting loss position and reinvested the proceeds in higher-yielding fixed-maturity investments. The repositioning reduced third quarter pre-tax earnings by $37.6 million as the equity gains were recorded through earnings in the period of appreciation and the bond losses were recorded through earnings upon sale. There was no impact to book value.

⁽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 third quarter of 2026, the Company repurchased 269,004 shares of its common stock in the open market at an average price of $371.74 per share for a total cost of $100.0 million. At September 30, 2026, the Company had $237.5 million of capacity remaining under its share repurchase program. In the aggregate, the Company has repurchased 990,763 shares of its common stock for a total cost of $362.5 million.

During the third quarter of 2026, the Company declared and paid a cash dividend of $0.25 per share of common stock for a total distribution of $5.6 million.

Other

The effective tax rates for the nine months ended September 30, 2026 and September 30, 2025 were 20.0% and 20.6%, respectively. In the first nine months 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 $1.9 billion at September 30, 2026 and $2.0 billion at December 31, 2025. Book value per share was $85.25 at September 30, 2026 compared to $84.66 at December 31, 2025. Annualized operating return on equity⁽⁷⁾was 25.6% for the first nine months of 2026, an increase from 25.4% for the first nine months of 2025. The increase was due primarily to higher profitability compared to the prior-year period offset in part by higher average stockholders' equity.

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 nine months ended September 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 September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
	($ in thousands, except per share data)
Net operating earnings:
Net income	$	98,129		$	141,646		$	386,557		$	364,994
Adjustments:
Change in the fair value of equity securities, before taxes		37,769			(23,717	)		(10,071	)		(55,376	)
Income tax expense (benefit) ⁽¹⁾		(7,931	)		4,981			2,115			11,629
Change in the fair value of equity securities, after taxes		29,838			(18,736	)		(7,956	)		(43,747	)

Net realized investment (gains) losses, before taxes		419			(2,159	)		(8,029	)		(2,832	)
Income tax expense (benefit) ⁽¹⁾		(88	)		453			1,686			595
Net realized investment (gains) losses, after taxes		331			(1,706	)		(6,343	)		(2,237	)

Change in allowance for credit losses on investments, before taxes		(1	)		(4	)		26			11
Income tax (benefit) expense ⁽¹⁾		—			1			(5	)		(2	)
Change in allowance for credit losses on investments, after taxes		(1	)		(3	)		21			9
Net operating earnings	$	128,297		$	121,201		$	372,279		$	319,019

Diluted operating earnings per share:
Diluted earnings per share	$	4.36		$	6.09		$	16.97		$	15.67
Change in the fair value of equity securities, after taxes, per share		1.33			(0.81	)		(0.35	)		(1.88	)
Net realized investment (gains) losses, after taxes, per share		0.01			(0.07	)		(0.28	)		(0.10	)
Diluted operating earnings per share⁽²⁾	$	5.70		$	5.21		$	16.34		$	13.70

Operating return on equity:
Average equity⁽³⁾	$	1,977,063		$	1,793,895		$	1,939,297		$	1,674,389
Annualized return on equity⁽⁴⁾		19.9	%		31.6	%		26.6	%		29.1	%
Annualized operating return on equity⁽⁵⁾		26.0	%		27.0	%		25.6	%		25.4	%

⁽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 nine months ended September 30, 2026 and 2025, net income reconciles to underwriting income as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
	(in thousands)
Net income	$	98,129		$	141,646		$	386,557		$	364,994
Income tax expense		25,490			37,232			96,526			94,484
Income before income taxes		123,619			178,878			483,083			459,478
Net investment income		(58,265	)		(49,604	)		(169,428	)		(139,896	)
Change in the fair value of equity securities		37,769			(23,717	)		(10,071	)		(55,376	)
Net realized investment (gains) losses		419			(2,159	)		(8,029	)		(2,832	)
Change in allowance for credit losses on investments		(1	)		(4	)		26			11
Interest expense		3,220			2,569			9,710			7,664
Other expenses ⁽⁶⁾		451			473			2,279			1,145
Other income		(149	)		(764	)		(561	)		(1,608	)
Underwriting income	$	107,063		$	105,672		$	307,009		$	268,586

⁽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, October 23, 2026 at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (833) 461-5787, conference ID# 796 079 082, 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 September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
Revenues	(in thousands, except per share data)
Gross written premiums	$	462,868		$	486,251		$	1,472,494		$	1,526,048
Ceded written premiums		(63,724	)		(81,191	)		(217,605	)		(280,583	)
Net written premiums		399,144			405,060			1,254,889			1,245,465
Change in unearned premiums		24,328			5,897			(6,961	)		(85,105	)
Net earned premiums		423,472			410,957			1,247,928			1,160,360
Fee income		11,099			10,300			34,035			30,655
Net investment income		58,265			49,604			169,428			139,896
Change in the fair value of equity securities		(37,769	)		23,717			10,071			55,376
Net realized investment gains (losses)		(419	)		2,159			8,029			2,832
Change in allowance for credit losses on investments		1			4			(26	)		(11	)
Other income		149			764			561			1,608
Total revenues		454,798			497,505			1,470,026			1,390,716

Expenses
Losses and loss adjustment expenses		232,079			227,162			698,120			677,497
Underwriting, acquisition and insurance expenses		95,429			88,423			276,834			244,932
Interest expense		3,220			2,569			9,710			7,664
Other expenses		451			473			2,279			1,145
Total expenses		331,179			318,627			986,943			931,238
Income before income taxes		123,619			178,878			483,083			459,478
Total income tax expense		25,490			37,232			96,526			94,484
Net income		98,129			141,646			386,557			364,994

Other comprehensive income (loss)
Change in net unrealized losses on available-for-sale investments, net of taxes		(112,944	)		20,131			(156,468	)		60,966
Total comprehensive income (loss)	$	(14,815	)	$	161,777		$	230,089		$	425,960

Earnings per share:
Basic	$	4.36		$	6.12		$	17.00		$	15.75
Diluted	$	4.36		$	6.09		$	16.97		$	15.67

Weighted-average shares outstanding:
Basic		22,490			23,159			22,740			23,168
Diluted		22,504			23,271			22,781			23,292

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

	September 30, 2026		December 31, 2025
Assets	(in thousands)
Investments:
Fixed-maturity securities at fair value	$	4,497,325	$	4,341,450
Equity securities at fair value		779,233		626,399
Real estate investments, net		54,614		55,236
Short-term investments		—		3,864
Total investments		5,331,172		5,026,949

Cash and cash equivalents		160,508		163,361
Investment income due and accrued		33,012		30,971
Premiums receivable, net		119,608		124,593
Reinsurance recoverables, net		427,106		394,329
Ceded unearned premiums		39,803		44,506
Deferred policy acquisition costs, net of ceding commissions		122,169		118,737
Intangible assets		3,538		3,538
Deferred income tax asset, net		86,021		42,191
Other assets		108,166		94,386
Total assets	$	6,431,103	$	6,043,561

Liabilities & Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses	$	3,324,276	$	2,890,870
Unearned premiums		862,652		860,394
Payable to reinsurers		25,260		34,385
Accounts payable and accrued expenses		53,685		66,301
Debt		224,604		224,397
Other liabilities		21,615		7,631
Total liabilities		4,512,092		4,083,978

Stockholders' equity		1,919,011		1,959,583
Total liabilities and stockholders' equity	$	6,431,103	$	6,043,561

View source version on businesswire.com: https://www.businesswire.com/news/home/20261022223747/en/

Kinsale Capital Group, Inc.

Bryan Petrucelli

Executive Vice President, Chief Financial Officer and Treasurer

804-289-1272

ir@kinsalecapitalgroup.com