Kinsale Capital Group, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 12 February 2026: press release. Guidance figures: 1 raised, 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Fourth-quarter EPS rose 28%: Net income was $138.6 million, $5.99 per diluted share, against $4.68 a year earlier. Net operating earnings were $134.6 million, $5.81 per diluted share, up 25.8%. Source
• Full-year net income reached $503.6 million: Net income for 2025 was $503.6 million, $21.65 per diluted share, against $17.78 in 2024. Net operating earnings were $453.7 million, $19.51 per diluted share. Source
• Commercial Property premiums fell sharply: Commercial Property, the largest division, saw gross premiums fall 28.3% in the fourth quarter and 17.9% for the year, reflecting lower rates and increased competition, including from standard carriers. Source
• Other divisions grew double digits: Excluding Commercial Property, gross premiums rose 10.2% in the quarter and 13.3% for the year. Management linked this to continued submission flow across most divisions. Source
• Fourth-quarter loss ratio improved: Loss ratio was 50.1% against 52.3%, and expense ratio 21.6% against 21.1%. Net catastrophe losses were 0.7 points, against 2.2 points a year earlier, primarily Hurricane Milton. Source
• Fourth-quarter buybacks of $50.0 million: The company repurchased 119,752 shares in the open market at an average of $417.52 per share, a total cost of $50.0 million. Source
• New $250 million buyback authorization: A new $250 million share repurchase authorization was announced in December 2025, after the initial $100 million program was used up. Source
• Dividend raised 47.1% to $0.25: In February 2026 the Board declared a $0.25 per share cash dividend, a 47.1% increase from the prior cash dividend. Source

“We delivered another strong quarter to close out 2025, marked by exceptional profitability resulting from continued disciplined underwriting and technology-enabled low costs in a competitive market.”

Michael P. Kehoe, Chairman and Chief Executive Officer

Guidance

What changed from last quarter

• New: A new $250 million share repurchase authorization was announced in December 2025 after the initial $100 million program was exhausted. Source
• New: The cash dividend was increased 47.1% to $0.25 per share. Source
• New: Retention on reinsurance treaties increased, which the company cited as a reason for higher net written premiums. Source

Net income and earnings growth

• Fourth-quarter EPS rose 28%: Net income was $138.6 million, $5.99 per diluted share, against $4.68 a year earlier. Net operating earnings were $134.6 million, $5.81 per diluted share, up 25.8%. Source
• Full-year net income reached $503.6 million: Net income for 2025 was $503.6 million, $21.65 per diluted share, against $17.78 in 2024. Net operating earnings were $453.7 million, $19.51 per diluted share. Source
• Underwriting income rose with growth: Fourth-quarter underwriting income was $120.6 million, up from $97.9 million. Full-year underwriting income was $389.2 million, up from $325.9 million. Growth, reserve development and lower catastrophe losses were cited. Source

Premium growth by division

• Commercial Property premiums fell sharply: Commercial Property, the largest division, saw gross premiums fall 28.3% in the fourth quarter and 17.9% for the year, reflecting lower rates and increased competition, including from standard carriers. Source
• Other divisions grew double digits: Excluding Commercial Property, gross premiums rose 10.2% in the quarter and 13.3% for the year. Management linked this to continued submission flow across most divisions. Source
• Total gross premiums rose 1.8%: Total gross written premiums were $451.1 million in the fourth quarter, up 1.8%, and about $2.0 billion for the year, up 5.7%. Source
• Net premiums rose faster than gross: Net written premiums rose 7.1% in the quarter, above gross growth, largely from higher gross premiums and a higher retention on reinsurance treaties. Source

“We remain confident that the resilience of our model positions us to deliver long-term value for our stockholders throughout the market cycle”

Michael P. Kehoe, Chairman and Chief Executive Officer

Loss and expense ratios

• Fourth-quarter loss ratio improved: Loss ratio was 50.1% against 52.3%, and expense ratio 21.6% against 21.1%. Net catastrophe losses were 0.7 points, against 2.2 points a year earlier, primarily Hurricane Milton. Source
• Full-year loss ratio slightly lower: Full-year loss ratio was 55.1% against 55.8%, and expense ratio 20.8% against 20.6%. Source
• Current-year losses before catastrophes rose: Current accident year losses, before catastrophe losses, were 57.1% of earned premium and fee income for the year, against 56.7% in 2024. Source
• Full-year catastrophe losses added 1.9 points: Net catastrophe losses added 1.9 points to the full-year loss ratio, primarily from the Palisades Fire, against 1.8 points in 2024. Source
• Prior-year development lowered loss ratio: Favorable development on prior accident years reduced the full-year loss ratio by 3.9 points, mainly in property lines, against 2.7 points in 2024. Source

Investment income and portfolio

• Investment income grew with cash flow: Net investment income rose 24.9% in the quarter and 27.9% for the year, driven by portfolio growth from operating cash flows invested since December 31, 2024. Source
• Gross investment return held at 4.4%: Gross investment return on the portfolio excluding cash was 4.4% in both 2025 and 2024. Funds are invested conservatively in high-quality securities with average credit quality of AA-. Source
• Duration lengthened to 4.0 years: Weighted average duration of the fixed-maturity portfolio, including cash equivalents, was 4.0 years at December 31, 2025, up from 3.0 years a year earlier. Source
• Cash and invested assets reached $5.2 billion: Cash and invested assets were $5.2 billion at December 31, 2025, against $4.1 billion a year earlier. Source

Capital and shareholder returns

• Fourth-quarter buybacks of $50.0 million: The company repurchased 119,752 shares in the open market at an average of $417.52 per share, a total cost of $50.0 million. Source
• New $250 million buyback authorization: A new $250 million share repurchase authorization was announced in December 2025, after the initial $100 million program was used up. Source
• Dividend raised 47.1% to $0.25: In February 2026 the Board declared a $0.25 per share cash dividend, a 47.1% increase from the prior cash dividend. Source
• Excess capital returned while conservative: Management said the authorization and higher dividend return excess capital to stockholders while maintaining a conservative capital position. Source
• Stockholders' equity reached $2.0 billion: Stockholders' equity was $2.0 billion at December 31, 2025, against $1.5 billion a year earlier. Source
• Operating return on equity declined: Full-year operating return on equity fell to 26.4% from 29.2%. Management attributed this mainly to higher average equity from profitable growth and fair value gains, partly offset by buybacks. Source

Tax and non-GAAP reconciling items

• Effective tax rate rose to 20.6%: The effective tax rate was 20.6% for 2025 against 19.4% for 2024. Management attributed the rise to a lower volume of stock option exercises. Source
• Equity fair value changes excluded from operating earnings: Net operating earnings excludes changes in fair value of equity securities and realized investment gains, which management says allows comparison of underlying performance. Source
• Interest expense increased: Interest expense was $3.0 million in the quarter, against $2.6 million, and $10.6 million for the year, against $10.1 million. Source

Balance sheet and reserves

• Loss reserves rose to $2.9 billion: Reserves for unpaid losses and loss adjustment expenses were $2.89 billion at December 31, 2025, against $2.29 billion a year earlier. Total assets were $6.04 billion. Source
• Debt increased to $224.4 million: Debt was $224.4 million at December 31, 2025, against $184.1 million a year earlier. Source
• Year-end cash balance higher: Cash and cash equivalents were $163.4 million at December 31, 2025, against $113.2 million a year earlier. Source

Figures management reported

Risks management discussed

• Demand: Commercial Property premiums fell on lower rates and competition, including from standard carriers. Source
• External: Net catastrophe losses, primarily from the Palisades Fire, added 1.9 points to the full-year loss ratio. Source

Earlier plans management reported on

• Met: The initial $100 million repurchase authorization was used up in the fourth quarter, with $50.0 million spent in the quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.