KNSL Filings — Kinsale Capital Group, Inc. - FilingSpy
KNSL
Kinsale Capital Group, Inc.
A specialty insurer focused entirely on "excess and surplus" coverage — the policies for hard-to-place small and mid-sized businesses that standard carriers turn down, from risky trades to unusual operations. It was founded in 2009 in Richmond, Virginia, by insurance veteran Michael Kehoe, went public on the New York Stock Exchange in 2016, and handles quoting partly through its own technology platform. Its name comes from Kinsale, a historic Irish port town on the coast of County Cork.
Kinsale's gross written premiums fell 5% as its Commercial Property division contracted 32.7%, while net income rose 31% on investment gains and reserve releases.
Gross written premiums contracted for the second straight quarter as competition hollowed out the Commercial Property line. rose 31% to $134.1 million, or $5.76 per share, driven by a $56.2 million unrealized equity gain and higher favorable prior-year reserve development that pushed the down to 75.5%. The business is now running on its back book and its investment portfolio while new business shrinks.
Key takeaways
Gross written premiums fell 5% to $527.6 million, driven by a 32.7% decline in the Commercial Property Division, which management attributed to heightened competition and rate decreases.
rose 31% to $134.1 million, but the result was heavily shaped by a $56.2 million unrealized gain from the change in fair value of equity securities — a non-cash item tied to stock market performance — and $24.1 million in net favorable .
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 31% to $176M on underwriting profit and investment gains, despite a 5% drop in gross written premiums.
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Gross written premiums fell 5% to $527.6M, driven by a 32.7% decline in the Commercial Property Division due to heightened competition.
The improved to 75.5% from 75.8% a year ago, as the benefit of higher favorable reserve development offset a rise in the excluding catastrophes.
Net investment income rose 19.9% to $55.7 million, reflecting a larger portfolio funded by strong operating cash flows, while the annualized gross investment return held at 4.5%.
The rose to 85.8% from 81.2% a year ago, reflecting the higher retention on reinsurance treaties renewed in June 2025, which also reduced ceding commission income and pushed the to 20.7% from 20.5%.
The company repurchased $163.1 million in shares during the first half of 2026, including $100.6 million in Q2, and a new $500 million authorization in July 2026 brought total remaining capacity to $337.5 million.
What changed
The Commercial Property Division's contraction accelerated: after declining 28.3% in Q1 2026, it fell 32.7% in Q2, deepening a trend that began in early 2025 and showing no sign of the stabilization earlier filings had flagged to watch.
Gross written premium growth turned more negative, falling 5% after a 0.5% decline in Q1 2026, confirming that the first-quarter contraction was not a one-quarter event but the start of sustained shrinkage.
The rose to 20.7% from 20.5% a year ago, as the full effect of the June 2025 reinsurance treaty renewal — with lower — is now reflected in the run rate, a trajectory earlier filings had identified as a risk.
Share repurchases accelerated sharply: $100.6 million in Q2 2026 alone, compared with $62.5 million in Q1 2026 and $10.0 million in Q1 2025, signaling that capital return has become a higher priority as organic premium growth contracts.
What to watch
Gross written premium growth in Q3 2026, to see whether the 5% decline deepens further or stabilizes, particularly whether the Commercial Property Division's 32.7% contraction represents a floor.
The excluding catastrophes and prior-year reserve development, to gauge whether current accident year loss picks are rising now that premium growth is negative and pricing competition has increased.
The sustainability of growth, given that the $56.2 million unrealized equity gain is tied to stock market performance and is not a recurring underwriting or investment income item.
The pace of share repurchases under the new $500 million authorization, to see whether the $100.6 million quarterly run rate continues and how it affects as the business shrinks.
Net earned premiums grew 8.9% to $417.6M, reflecting prior-period premium growth and a higher of 85.8%.
Underwriting income increased 10.5% to $105.4M, with the improving to 75.5% from 75.8% on higher favorable prior-year reserve development.
Net investment income rose 19.9% to $55.7M, and a $56.2M gain in equity securities fair value boosted total investing results.
The company repurchased $163.1M in shares during H1 2026, with $337.5M in remaining capacity after a new July 2026 authorization.
Quantitative and Qualitative Disclosures About Market Risk
Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in interest rates, equity prices, foreign currency exchange rates and commodity prices. Our primary market risks have been equity pric…
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Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in interest rates, equity prices, foreign currency exchange rates and commodity prices. Our primary market risks have been equity price risk associated with investments in equity securities and interest rate risk associated with investments in fixed maturities. We do not have any material exposure to foreign currency exchange rate risk or commodity risk.
There have been no material changes in market risk from the information provided in our Annual Report on Form 10-K for the year ended December 31, 2025.
We are party to legal proceedings which arise in the ordinary course of business. We believe that the outcome of such matters, individually and in the aggregate, will not have a material adverse effect on our condensed consolidated financial position. Refer to Note 16 of the not…
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We are party to legal proceedings which arise in the ordinary course of business. We believe that the outcome of such matters, individually and in the aggregate, will not have a material adverse effect on our condensed consolidated financial position. Refer to Note 16 of the notes to the condensed consolidated financial statements for further information regarding legal proceedings.