Kinsale's Portfolio Repositioning Cuts Third-Quarter Earnings

The Tip Desk · October 27, 2026 · 2 min read

Net income was $98.1 million, or $4.36 a share, after a $37.6 million pre-tax realized loss on fixed-maturity sales.

Kinsale Capital Group (KNSL), the Richmond-based specialty insurer, reported net income of $98.1 million, or $4.36 a share, for the third quarter of 2026, down from $141.6 million, or $6.09 a share, a year earlier.

The company’s investment portfolio repositioning reduced third-quarter pre-tax earnings by $37.6 million. The insurer sold lower-yielding bonds in a largely offsetting loss position and reinvested the proceeds in higher-yielding fixed-maturity investments, while also selling certain common stock holdings in a gain position and rotating into higher-conviction equities. Equity gains were recorded through earnings in the period of appreciation and bond losses upon sale, the company said, with no impact to book value.

Net operating earnings, which exclude those realized items, were $128.3 million, or $5.70 a share, compared with $121.2 million, or $5.21 a share, a year earlier. Underwriting income was $107.1 million, producing a combined ratio of 75.4%. The company said the increase in underwriting income was largely due to growth in net earned premiums and higher favorable development of loss reserves from prior accident years, offset in part by lower ceding commissions as it retained more on its reinsurance treaties.

Gross written premiums were $462.9 million, down 4.8% from a year earlier. The company attributed the decline primarily to heightened competition in its property divisions, where premiums fell 19.3%, including a 26.8% drop in the Commercial Property Division. Casualty gross written premiums rose 0.9%, which the company said reflected an increase in bound accounts offset in part by a shift toward smaller accounts. Net written premiums were $399.1 million.

Net earned premiums increased 3.0% to $423.5 million. The loss ratio was 53.4% and the expense ratio 22.0%. Current-accident-year losses were $249.6 million, or 57.4% of earned premiums and fee income, with $2.2 million of catastrophe losses. Prior-accident-year development reduced the loss ratio by $19.7 million, or 4.5 points.

Net investment income rose 17.5% to $58.3 million. Cash and invested assets totaled $5.5 billion at September 30, 2026. The weighted average duration of the fixed-maturity portfolio, including cash equivalents, was 4.4 years.

In the third quarter the company repurchased 269,004 shares at an average $371.74 a share for $100.0 million, leaving $237.5 million of remaining capacity under its buyback program. It declared and paid a $0.25-a-share cash dividend totaling $5.6 million. Stockholders’ equity was $1.9 billion and book value per share was $85.25 at quarter-end.