Kinsale Capital Group, Inc. ended 2025 with another year of strong earnings and underwriting margins, although growth in its largest division slowed amid tougher competition in parts of the excess and surplus (E&S) market.
For 2025, the Richmond, Va.-based insurer reported net income of $503.6 million, or $21.65 per diluted share, up from $414.8 million, or $17.78 per share, in 2024. Net operating earnings – which exclude changes in the fair value of equities, realized gains and certain credit loss adjustments – rose to $453.7 million, or $19.51 per share, from $374.8 million, or $16.06.
Fourth-quarter net income was $138.6 million, with diluted EPS up 28% year over year to $5.99.
Underwriting performance remained a key driver. Full-year underwriting income increased to $389.2 million from $325.9 million, with the combined ratio improving slightly to 75.9% from 76.4% in 2024. The 2025 loss and expense ratios were 55.1% and 20.8%, respectively. Favorable development on prior-year reserves contributed 3.9 points to the loss ratio, while catastrophe losses, primarily from the Palisades Fire, added 1.9 points.
Premium growth moderated compared with prior years. Gross written premiums for 2025 rose 5.7% to $2.0 billion, while net written premiums increased 9.4% to $1.6 billion, helped by higher reinsurance retention.
The commercial property division, Kinsale’s largest unit, saw a marked contraction, with gross written premiums down 17.9% for the year. The company cited lower rates and increased competition from standard carriers as key factors. Excluding commercial property, gross written premiums grew 13.3%, supported by what management described as strong submission flow across most other divisions.
The shift points to a deliberate pullback from property in response to pricing conditions, even as Kinsale continues to expand in other E&S lines.
Net investment income increased 27.9% to $192.2 million, driven by growth in the investment portfolio and higher yields. Book value per share rose from $63.75 at year-end 2024 to $84.66 at Dec. 31, 2025, with stockholders’ equity reaching $2.0 billion, up from $1.5 billion.
Kinsale returned capital via $50 million of share repurchases in the fourth quarter, exhausting a prior $100 million authorization, and announced a new $250 million buyback program in December. In early 2026, the board also approved a 47.1% increase in the quarterly dividend to $0.25 per share. The operating return on equity for 2025 was 26.4%, down from 29.2% a year earlier as higher average equity outpaced earnings growth.
On recent sector history, a full-year combined ratio below 80% and an operating return on equity in the mid‑20s would still place Kinsale toward the top of the specialty and E&S peer group. Many established competitors have typically reported combined ratios in the low‑ to mid‑80s and operating ROEs in the mid‑teens to low‑20s in favorable conditions.
Once other carriers report 2025 earnings, comparisons are likely to focus on how many can approach Kinsale’s 75.9% combined ratio and 26.4% operating ROE on a sustained basis, and whether others have also started to rein in property growth as standard markets return capacity.
Kinsale’s catastrophe load of 1.9 points on the 2025 loss ratio, together with its property retrenchment, suggests relatively modest net cat exposure compared with some property‑heavy writers. That could leave it better insulated if catastrophe activity remains elevated, though it also limits near‑term premium growth in that segment.
For brokers and MGAs, the results indicate Kinsale is willing to trade property volume for underwriting discipline, while continuing to grow in other E&S lines. That stance may contribute to firmer pricing and terms in parts of the property market, even as some standard carriers and E&S competitors compete more aggressively for less cat‑exposed risks.
The company has also continued to emphasize a “technology-enabled” low-cost operating model, which underpins its expense ratio and may allow it to stay selective on risk while maintaining responsiveness to trading partners.
