Kinsale Capital Group, Inc.

Reported Q2 2026 diluted operating EPS was $5.54, up 15.9% from $4.78 in Q2 2025. Net income increased 31.1% and net operating earnings increased 13.3% quarter over quarter. The combined ratio was 75.5%, including 4.5 points of net favorable prior-year reserve development and 1.3 points of cat losses, versus 3.9 points of reserve development and less than 1 point of cat losses a year ago. The expense ratio was 21.7% versus 20.7% last year, and the underlying other underwriting expense ratio was 10.3% versus 10.6%. Net investment income rose 19.9%, float grew to $3.4 billion from $3.1 billion at year-end, and annualized gross return for the first half was 4.5% versus 4.3% last year. Gross written premium was down 5%, net written premium down 1.4%, and net earned premium up 8.9%. Forward-looking commentary was cautious: management said commercial property remains highly competitive and shrinking, but excluding that division gross written premium grew 3.7% in Q2 and 4.8% in the first half, with easier comps in the next two quarters because 60% of commercial property premium was written in the first half of last year. On capital allocation, Kinsale expanded the buyback authorization by $250 million to $337 million and said repurchases are the primary use of excess capital right now.

Mike Kehoe emphasized that Kinsale is choosing profitability over top-line growth in a soft market, especially in commercial property where competition is intense and rate declines are material. He framed the company’s advantage as a mix of underwriting discipline, analytics, technology, and a low-cost operating model, and said those strengths support continued profitability even when growth slows. He also said the enlarged share repurchase program reflects confidence that Kinsale stock is attractive at current prices.

Bryan Petrucelli highlighted that the quarter remained highly profitable despite tougher competition, with net income up 31.1%, operating earnings up 13.3%, and diluted operating EPS at $5.54 versus $4.78 last year. He attributed the 75.5% combined ratio to 4.5 points of favorable reserve development and 1.3 points of cat losses, while noting the 21.7% expense ratio was higher mainly because of a higher net commission ratio tied to increased reinsurance retentions. On the balance sheet and investments, he said net investment income rose 19.9%, float increased to $3.4 billion, and new money yields are averaging around 5.25% with 4.5-year duration.

Analysts focused on why the current-year accident loss ratio improved versus peers, reinsurance commission trends, and whether the softening property market has hit a trough. Management said losses came in below expectations but characterized that as normal variability and mix, while noting reserves remain as conservative as ever; on commissions, they said the Q2 expense ratio is a good guide going forward, though there could be a slight uptick after the June 1 reinsurance renewals. On property, management said there is no clear read on 2027, though some large competitors are pulling back, and they stressed that they will stay close to technical pricing even if it means shrinking the book.