Kinsale Capital reports net income of $114.2m, after-tax cat losses surge to $10.8m for Q3’24

Kinsale Capital Group, Inc. has reported a net income of $114.2 million for Q3 2024, which includes after-tax catastrophe losses of $10.8 million, compared to after-tax catastrophe losses of $0.9 million in Q3 2023, when the net income was $76.1 million.

For the quarter, gross written premiums (GWP) increased by 18.8% to $448.6 million, up from $378 million in the same quarter last year.

The underwriting income was $86.9 million, an increase from $72 million in Q3 2023, resulting in a combined ratio of 75.7%, compared to 74.8% for the same period last year.

The firm attributed the increase in underwriting income quarter-over-quarter to a combination of premium growth and lower relative net commissions, offset in part by higher catastrophe losses.

GWP for 9M 2024 reached $1.4 billion, compared to $1.2 billion for 9M 2023, representing an increase of 21.6%. The increase in GWP during Q3 and 9M 2024 over the same periods last year reflected strong submission flow from brokers and a favourable, though increasingly competitive, pricing environment.

The loss and expense ratios were 56.1% and 19.6%, respectively, for Q3 2024, compared to 53.9% and 20.9% for Q3 2023. The loss ratio for Q3 2024 included 3.8 points of net catastrophe losses, primarily related to Hurricanes Helene, Francine, and Beryl, as well as tornadoes in the Midwest. In contrast, net catastrophe losses for Q3 2023 were negligible, as noted by the firm.

The firm explained that the results for Q3 2024 and 2023 included net favourable development of loss reserves from prior accident years of $10.1 million, or 2.8 points, and $9.1 million, or 3.2 points, respectively.

For 9M 2024, the underwriting income was $228 million, resulting in a combined ratio of 77.6%, compared to $185.5 million and a combined ratio of 76.7% year on year. The loss and expense ratios were 57.1% and 20.5%, respectively, compared to 55.5% and 21.2% for 9M 2023.

Similarly, results for 9M 2024 and 2023 included net favourable development of loss reserves from prior accident years of $28.1 million, or 2.7 points, and $28.6 million, or 3.6 points, respectively. The loss ratio for 9M 2024 included 1.7 points of net catastrophe losses from Helene, Francine, and Beryl, as well as tornadoes in the Midwest; net catastrophe losses were also negligible for 9M 2023.

Kinsale Capital reported a net income of $305.7 million for 9M 2024, compared to $204.7 million in the comparative quarter, which included after-tax catastrophe losses of $13.9 million for 9M 2024 and $3.3 million for 9M 2023.

Net investment income increased by 46.4% to $39.6 million, compared to Q3 2023’s $27.1 million. For 9M 2024, net investment income was $108.4 million, compared to $72 million year over year, reflecting an increase of 50.7%.

These increases were driven by growth in the firm’s investment portfolio, largely generated from the investment of strong operating cash flows and higher interest rates relative to the prior year period

Michael P. Kehoe, Chairman and Chief Executive Officer, Kinsale Capital Group, commented: “Our third quarter results reflect the continued execution of our strategy of disciplined underwriting and technology-enabled low costs.

“Our reported 75.7% combined ratio includes a modest 3.8 points of net catastrophe losses. Looking ahead, we remain confident in our ability to drive profitable growth and deliver long-term value for stockholders.”

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