On July 25, 2024, Kinsale Capital Group Inc (NYSE: KNSL) released its 8-K filing for the second quarter of 2024, showcasing robust financial results that surpassed analyst expectations. Kinsale Capital Group Inc is an insurance holding company specializing in property, casualty, and specialty insurance products, operating primarily in the Excess and Surplus Lines Insurance segment.
Quarterly Financial Highlights
Kinsale Capital Group Inc reported net income of $92.6 million, or $3.97 per diluted share, for Q2 2024, compared to $72.8 million, or $3.12 per diluted share, in Q2 2023. This represents a 27.2% increase in diluted earnings per share year-over-year. The company's net operating earnings were $87.4 million, or $3.75 per diluted share, up from $67.2 million, or $2.88 per diluted share, in the same period last year, marking a 30.2% increase.
Revenue and Premium Growth
Gross written premiums for the quarter increased by 20.9% to $529.8 million, driven by strong submission flow from brokers and a favorable pricing environment. Net investment income also saw a significant rise, increasing by 48.3% to $35.8 million compared to Q2 2023. The company's underwriting income was $76.1 million, resulting in a combined ratio of 77.7%, slightly higher than the 76.7% reported in the same quarter last year.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Gross Written Premiums | $529.8 million | $438.2 million |
| Net Investment Income | $35.8 million | $24.2 million |
| Underwriting Income | $76.1 million | $61.5 million |
| Combined Ratio | 77.7% | 76.7% |
| Net Income | $92.6 million | $72.8 million |
| Diluted EPS | $3.97 | $3.12 |
Investment and Cash Flow
Net investment income for the first half of 2024 was $68.8 million, a 53.3% increase from $44.9 million in the first half of 2023. This growth was attributed to the expansion of the company's investment portfolio and higher interest rates. Net operating cash flows also improved, reaching $489.3 million in the first half of 2024, up 15.5% from $423.6 million in the same period last year.
Commentary and Outlook
"We are pleased with our second quarter results highlighted by continued growth and strong margins. Delivering long-term value for stockholders remains our focus as we leverage underwriting and technological competitive advantages and our low-cost model to profitably grow market share," said Chairman and Chief Executive Officer, Michael P. Kehoe.
Conclusion
Kinsale Capital Group Inc's strong performance in Q2 2024, characterized by significant growth in premiums and investment income, underscores its robust business model and strategic execution. The company's ability to exceed analyst estimates and maintain a healthy combined ratio positions it well for continued success in the competitive insurance market.
Explore the complete 8-K earnings release (here) from Kinsale Capital Group Inc for further details.
