Kinsale Capital's Q1 2025: Unpacking Contradictions in Growth, Underwriting, and Market Dynamics

Growth rates and sustainability, large commercial property submissions and appetite, competitive landscape and impact on submission rates, underwriting performance and rate trends, competitive environment and growth opportunities are the key contradictions discussed in Kinsale Capital's latest 2025Q1 earnings call.



Premium Growth and Competition:
- Kinsale's gross written premium grew by 8% in Q1 2025, slightly below expectations of 10% to 20%.
- Growth was driven by an 18% decrease in the Commercial Property division due to intense competition and rate declines.

Operating Earnings and Loss Ratio:
- Operating earnings per share increased by 6%, and the company maintained an annualized operating return on equity of 22.5%.
- The underlying loss ratio was 60%, reflecting a decrease in reported losses and a positive mix of business.

Capital Management and Share Repurchases:
- Kinsale repurchased $10 million in shares during the first quarter and plans for similar modest levels of repurchases routine basis.
- The company prioritizes profitability over growth and is confident in its discipline and competitive advantages.

Market Position and Future Outlook:
- Kinsale maintains a conservative risk management approach and considers the Palisades wildfire loss as consistent with its strategy.
- Despite the challenges in the competitive environment, the company remains optimistic in taking market share from less efficient competitors.