Kinsale grows UW income 55% in Q2 as earned premiums surge

Virginia-based E&S specialist Kinsale grew underwriting income 55 percent in the second quarter to $44mn - up from $29mn the year before - on strengthening underlying margins and a surge in earned premiums.

Kinsale generated $1.92 in net operating earnings per share in the quarter, a 50 percent jump from the $1.28 per share the company earned the year before.

Gross premiums written (GPW) rose by 43 percent, to $277mn, up from $194mn in last year’s second quarter.

The insurer improved its loss ratio by 1.2 points in the period, to 56.3 percent, and catastrophe losses, similar to the year before, were de minimis. Reserves developed favourably by $10mn, an improvement from $9mn a year ago.

Net income dropped to $27mn from $36mn as a result of the decline in the fair value of Kinsale’s equity portfolio.

Overall, Kinsale trimmed its combined ratio to 76.8 from 79.2 percent.

“Our business continues to perform at a high level with 43 percent premium growth for the second quarter over the same period last year and a combined ratio of just under 77 percent,” Kinsale’s president and CEO Michael Kehoe said.

“These results reflect the combination of a superior business model and favorable E&S market conditions. Looking ahead, we remain confident in our ability to create shareholder value through best-in-class underwriting and technology driven low costs.”