On October 26, 2023, Kinsale Capital Group Inc (KNSL, Financial) released its Q3 2023 earnings report. The company reported a net income of $76.1 million, or $3.26 per diluted share, a significant increase from $33.0 million, or $1.43 per diluted share, in Q3 2022. For the first nine months of 2023, the net income was $204.7 million, or $8.79 per diluted share, compared to $91.9 million, or $3.98 per diluted share, for the same period in 2022.
Financial Highlights
Net operating earnings for Q3 2023 were $77.2 million, or $3.31 per diluted share, compared to $37.9 million, or $1.64 per diluted share, for Q3 2022. For the first nine months of 2023, net operating earnings were $201.1 million, or $8.63 per diluted share, compared to $120.0 million, or $5.20 per diluted share, for the same period in 2022.
Gross written premiums for Q3 2023 were $377.8 million, a 33.0% increase from $284.1 million in Q3 2022. For the first nine months of 2023, gross written premiums were $1.2 billion, a 45.5% increase from $806.6 million for the same period in 2022.
Net investment income for Q3 2023 was $27.1 million, a 95.5% increase from $13.9 million in Q3 2022. For the first nine months of 2023, net investment income was $72.0 million, a 114.5% increase from $33.5 million for the same period in 2022.
Company's Performance and Outlook
President and Chief Executive Officer, Michael P. Kehoe, commented on the company's performance, stating,
Our third quarter results reflect continued growth and profitability. We reported a 33.0% increase in gross written premiums and a combined ratio of 74.8% as a consequence of our differentiated strategy and favorable E&S market conditions. We remain confident that our model of disciplined underwriting and technology-enabled low costs provides an enduring competitive advantage that will lead to continued value creation over the long term."
The company's underwriting income was $72.4 million in Q3 2023, resulting in a combined ratio of 74.8%. The annualized operating return on equity was 32.1% for the nine months ended September 30, 2023.
Looking forward, Kinsale Capital Group Inc (KNSL, Financial) continues to focus on disciplined underwriting and technology-enabled low costs to maintain its competitive advantage and drive value creation.
Explore the complete 8-K earnings release (here) from Kinsale Capital Group Inc for further details.
