KNSL Q2 Earnings Beat on Higher Underwriting & Investment Income

The quarterly results benefited from growth in net earned premiums, increased net investment income, favorable prior-year reserve development and disciplined underwriting. However, these gains were partially offset by lower gross written premiums and higher operating expenses.

KNSL’s Operational Update

Gross written premiums of $527.6 million decreased 5% year over year, primarily due to a 32.7% decline in the Commercial Property Division. Net written premiums declined 1.4% year over year to $452.5 million.

Net investment income increased 19.9% year over year to $55.7 million. The increase was primarily driven by growth in the company’s investment portfolio. However, net investment income missed the Zacks Consensus Estimate by 4.7%.

Total expenses increased 9% year over year to $328.7 million due to higher underwriting, acquisition and insurance expenses, interest expense and other operating expenses. Our model estimate was $342.4 million.

Kinsale Capital’s underwriting income was $105.4 million, up 10.5% year over year. The increase was driven by growth in net earned premiums, higher favorable development of loss reserves from prior accident years, partially offset by lower ceding commissions. Underwriting income surpassed our model estimate of $70.8 million.

The combined ratio improved 30 basis points (bps) year over year to 75.5 compared with the Zacks Consensus Estimate of 78.6. The loss ratio improved 130 bps to 53.8, reflecting favorable reserve development. The expense ratio deteriorated 100 bps year over year to 21.7.

KNSL’s Financial Update

Kinsale Capital exited the second quarter of 2026 with cash and cash equivalents of $210.5 million, up 28.9% from the 2025-end level.

As of June 30, 2026, stockholders' equity increased 3.9% from the 2025-end level to approximately $2.04 billion.

Book value per share was $89.34 as of June 30, 2026, up 5.5% from the 2025-end level.

Annualized operating return on equity deteriorated 30 bps year over year to 24.4% in the reported quarter.

KNSL’s Capital Deployment

KNSL repurchased 0.3 million shares for $100 million in the second quarter of 2026. In July 2026, the board approved an additional $250 million share repurchase authorization, increasing the remaining capacity under the program to $337.5 million.

KNSL paid a cash dividend of 25 cents per share in the second quarter of 2026.

KNSL’s Zacks Rank

KNSL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

The Progressive Corporation’s PGR second-quarter 2026 earnings per share of $4.85 beat the Zacks Consensus Estimate by 3.2%. The bottom line, however, decreased 6.1% year over year. Net premiums written were $21.1 billion in the second quarter, up 5% from $20.1 billion a year ago.

Net premiums earned grew 6% to $21.6 billion. The reported figure met the Zacks Consensus Estimate. Net realized gains on securities were $604 million, up 56% year over year. The combined ratio, the percentage of premiums paid out as claims and expenses, deteriorated 110 basis points from the prior-year quarter’s level to 87.1.

The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.

Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.

W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.

W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92.

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