Kinsale Capital Group, Inc. Q2 FY2026 Earnings Call

Thank you, operator, and good morning, everyone. Today I'm joined by Bryan Petrucelli, our Chief Financial Officer, Stuart Winston, our Chief Underwriting Officer, and Salmaan Allibhai, our Chief Analytics and Technology Officer. In the second quarter 2026, Kinsale's diluted operating earnings per share increased by 15.9% over the second quarter 2025, generating an annualized operating return on equity of 24.4%. Gross written premium was down 5%, and net written premium was down 1.4%, and net earned premium was up…

Thanks, Mike. The business continues to generate strong profitability even in this period of heightened competitiveness that Mike just noted. Net income and net operating earnings increased by 31.1% and 13.3%, respectively, quarter-over-quarter. The 75.5% combined ratio for the quarter included four and a half points from net favorable prior year loss reserve development, compared to 3.9 points last year, with 1.3 points in cat losses this year compared to less than a point in the second quarter of last year. We…

Thanks, Bryan. The soft E&S market continued in the second quarter, but still offers opportunities for growth. Growth driven by compromised profit margins is easy to manufacture but costly to unwind. Because of this, our approach to soft markets like Commercial Property, Construction, or certain Professional Lines, is not to chase the market down, but to continue to price business in a way that meets our return thresholds and to be opportunistic where it makes sense. In markets where favorable conditions exist…

Thanks, Stuart. As Mike noted earlier, we continue to use analytics and technology to drive profitability and efficiency in the business. Several months ago, we brought the two functions together as a single team. Both have been core competencies from day one. Now they are working more efficiently from the same strategic roadmap…