The following is a summary of the Kinsale Capital Group, Inc. (KNSL) Q1 2024 Earnings Call Transcript:
Financial Performance:
Kinsale Capital Group reported a 43.4% increase in operating earnings per share and 25.5% growth in gross written premium in Q1 2024 compared to Q1 2023.
The company's combined ratio stood at 79.5% and the operating return on equity at 28.9%.
Kinsale Capital Group also saw a significant increase in net income and net operating earnings by 77.3% and 43.8% respectively.
The decrease in the expense ratio from 21.7% in Q1 2023 to 20.7% in Q1 2024 resulted in an improved operating performance.
Net investment income increased by 59.1% over the previous year, driven by strong operational cash flows and higher interest rates.
Business Progress:
Growth in gross written premium slowed to 25.5%, down from the previous quarter's 33.8%, due to normalization in the property market, but the property and casualty markets still represent potential growth opportunities.
Kinsale is optimistic about growth and stability in the market, focusing on smaller risks, underwriting and claims management operations, superior service level and risk appetite, and technology-driven, low-cost operations.
There has been a cautious slower release of reserves in response to unexpected late development from prior accident years, ensuring adequate allocation for future claim payouts.
The company reported a rate increase of 7% which could be beneficial against a loss trend of around 4% to 5%.
Kinsale is considering capitalizing on emerging reserving issues, which could open up opportunities in casualty, and the potential contraction in the delegated underwriting authority market could also be beneficial.
More details: Kinsale Capital IR
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