Kinsale Capital Group surpassed Wall Street’s expectations in Q2, with management highlighting that growth was primarily driven by strong execution in its core specialty insurance business, particularly outside of commercial property. CEO Michael Kehoe pointed to robust performance in small E&S accounts and disciplined underwriting as key contributors to improved profitability. He also noted the company’s “broadest risk appetite in the business” and cited advanced technology and low operating costs as factors enabling both profit and growth. Meanwhile, competitive intensity in the commercial property division led to premium declines in that segment, partially offsetting gains elsewhere.
Is now the time to buy KNSL? Find out in our full research report (it’s free).
Kinsale Capital Group (KNSL) Q2 CY2025 Highlights:
- Revenue: $469.8 million vs analyst estimates of $434.3 million (22.2% year-on-year growth, 8.2% beat)
- Adjusted EPS: $4.78 vs analyst estimates of $4.42 (8.1% beat)
- Adjusted Operating Income: $168.3 million (35.8% margin, 45.3% year-on-year growth)
- Operating Margin: 35.8%, up from 30.1% in the same quarter last year
- Market Capitalization: $10.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Kinsale Capital Group’s Q2 Earnings Call
- Michael Zaremski (BMO Capital Markets): Asked if heightened competition and recent growth rates warranted recalibrating Kinsale’s 10–20% annual growth aspiration. CEO Michael Kehoe replied that while near-term growth may fluctuate due to competition, the target remains a cycle-average estimate, not annual guidance.
- Pablo Singzon (JPMorgan): Inquired about the outlook for commercial property pricing and how much further rates could fall. Kehoe responded that competition is most intense in larger accounts and that market direction is difficult to predict.
- Michael Phillips (Oppenheimer): Sought clarification on casualty pricing trends and their impact on margins. President Brian Haney explained that casualty rates are mixed, with some longer-tail lines like construction under review and adjustments made to reflect loss experience, especially outside California.
- Jian Huang (Morgan Stanley): Asked about the contribution of new business to overall premium growth and the outlook for the homeowners line. Kehoe said growth is mostly new business-driven, with homeowners seen as an expanding opportunity but not expected to shift the casualty-property mix near term.
- Andrew Andersen (Jefferies): Questioned whether the current operating expense ratio would hold steady. CFO Bryan Petrucelli confirmed that recent efficiency gains should persist, barring major changes in business mix or investment.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will watch for (1) evidence that new homeowners and agribusiness products are gaining traction in target states, (2) stabilization or improvement in commercial property pricing amid ongoing competitive pressures, and (3) signs that expense discipline and conservative reserving continue to support margins. Shifts in industry underwriting trends and inflationary pressures will also be important areas to monitor.
Kinsale Capital Group currently trades at $436.98, down from $472.80 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
