KNSL - Kinsale stock rises 12% on Q3 beat as revenue soars 32%
- Kinsale Capital ( NYSE: KNSL ) stock rose ~12% on Friday after Q3 results beat analysts estimates.
- Non-GAAP EPS rose +3.1% Y/Y to $1.64, while total revenue increased +31.6% Y/Y to $216.96M.
- "Our third quarter results again reflected strong premium growth of 44% as E&S market conditions remain favorable. Our underlying business continues to generate positive results for the quarter over last year and we achieved a combined ratio of just under 84%, which included 12.5 points of incurred losses from Hurricane Ian," said President and CEO Michael Kehoe.
- Gross written premiums increased +43.8% Y/Y to $284.1M, reflecting strong submission flow from brokers and a favorable pricing environment, according to the company.
- Underwriting income was $34.3M, resulting in a combined ratio of 83.6%, for Q3, compared to $38.1M and combined ratio of 75.7% for Q3 2021. Kinsale noted that the decline was largely due to higher catastrophe losses incurred, offset in part by premium growth and favorable rate increases from a strong underwriting environment and lower levels of relative operating expenses.
- Kinsale added that net income fell -9.9% Y/Y to $32.98M mainly due to higher catastrophe activity and a decline in the fair value of equity investments during Q3.
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Kinsale stock rises 12% on Q3 beat as revenue soars 32%