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KNSL NYSE· Kinsale Capital Group Inc.
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KNSL NYSE· Kinsale Capital Group Inc.
Earnings report Q4 2023

Kinsale Capital Group Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

In the latest quarter, Kinsale Capital Group reported total revenues of $1.22 billion. The company's revenue can be broken down into the following segments:

  1. Gross written premiums: Kinsale generated $1.57 billion in gross written premiums, representing a significant increase from the previous year's $1.10 billion and a substantial growth from $764 million in the year before that.

  2. Ceded written premiums: The company reported ceded written premiums of -$304 million, indicating a decrease from the previous year's -$165 million and a decline from -$104 million in the year before that.

  3. Net written premiums: Kinsale's net written premiums amounted to $1.26 billion, reflecting a notable increase from the previous year's $936 million and a significant rise from $660 million in the year before that.

  4. Fee income: The company generated $27 million in fee income, showing growth from the previous year's $19 million and a substantial increase from $13 million in the year before that.

  5. Net investment income: Kinsale reported net investment income of $102 million, indicating growth from the previous year's $51 million and a significant rise from $31 million in the year before that.

  6. Change in fair value of equity securities: The company experienced a change in fair value of equity securities amounting to $15 million, representing an increase from the previous year's -$27 million and a substantial improvement from $22 million in the year before that.

  7. Net realized investment gains: Kinsale generated net realized investment gains of $6 million, showing growth from the previous year's $1 million and a notable increase from $2 million in the year before that.

  8. Change in allowance for credit losses on investments: The company reported a change in allowance for credit losses on investments of -$187 thousand, indicating a decrease from the previous year's -$366 thousand.

  9. Other income: Kinsale generated $1.4 million in other income, reflecting growth from the previous year's $697 thousand and a substantial increase from $212 thousand in the year before that.

Strengths

Kinsale Capital Group demonstrated strong revenue growth in the latest quarter, with total revenues reaching $1.22 billion. The company's gross written premiums increased significantly, indicating robust demand for its insurance products. Additionally, Kinsale experienced growth in fee income and net investment income, suggesting successful underwriting and investment strategies. The positive change in fair value of equity securities and net realized investment gains further contributed to the company's strong financial performance.

Challenges

Despite the overall positive revenue growth, Kinsale reported a decrease in ceded written premiums, which may indicate a higher retention of risk by the company. This could potentially expose Kinsale to higher losses and impact its profitability. Additionally, the company incurred interest expenses and other expenses, which may put pressure on its bottom line.

Noteworthy

Kinsale Capital Group's revenue growth in the latest quarter outpaced its performance in previous years. The company's gross written premiums, net written premiums, fee income, and net investment income all experienced significant increases, indicating successful business operations and market positioning. The positive change in fair value of equity securities and net realized investment gains also contributed to the company's strong financial performance.

Summary

Kinsale Capital Group reported strong revenue growth in the latest quarter, with total revenues reaching $1.22 billion. The company's gross written premiums, net written premiums, fee income, and net investment income all showed significant increases, reflecting successful underwriting and investment strategies. However, the decrease in ceded written premiums and the presence of interest expenses and other expenses pose challenges to the company's profitability. Overall, Kinsale's strong revenue performance highlights its competitive position in the insurance market.

Source documents

Form 10-K  filed on Feb 23, 2024
35 pages scanned

Reference data

Company financials Q4 revenue 351M
Analyst estimates Q4 EPS beat by 36.16%
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