Kinsale Capital Group, Inc. (NYSE:KNSL) Q2 2023 Earnings Conference Call July 28, 2023 9:00 AM ET
Company Participants
Michael Kehoe - President and CEO
Bryan Petrucelli - CFO
Brian Haney - COO
Conference Call Participants
Mark Hughes - Truist Securities
Pablo Singzon - JPMorgan
Andrew Anderson - Jefferies
Operator
Good morning and welcome to the Q2 2023 Kinsale Capital Group Inc. Earnings Conference Call. Before we get started, let me remind everyone that through the course of the teleconference, Kinsale’s management may make comments that reflect their intentions, beliefs and expectations for the future. As always, these forward-looking statements are subject to certain risk factors, which could cause actual results to differ materially. These risk factors are listed in the company’s various SEC filings, including the 2022 annual report on Form 10-K, which should be reviewed carefully.
The company has furnished a Form 8-K with the Securities and Exchange Commission that contains the press release announcing its second quarter results. Kinsale’s management may also reference certain non-GAAP financial measures in the call today. A reconciliation of GAAP to these measures can be found in the press release, which is available at the company’s website at www.kinsalecapitalgroup.com.
I will now turn the conference over to Kinsale’s President and CEO, Mr. Michael Kehoe. Please go ahead, sir.
Michael Kehoe
Thank you operator, and good morning, everyone. Bryan Petrucelli, our CFO, and Brian Haney, our COO, are both on the call this morning as well. Each of us will make a few comments and then we’ll move on to any questions you may have.
In the second quarter, 2023 Kinsale’s operating earnings per share increased by 50%, and gross written premium grew by 58.2% over the second quarter of 2022. For the quarter, the company posted a combined ratio of 76.7%, and an operating ROE return on equity of 30.6% for the six months. These results follow from the company’s strategy of both disciplined E&S underwriting and technology-enabled low costs, which allows us to generate attractive returns and to take market share from competitors at the same time.
The favorable market conditions in the overall E&S market further boosted the Kinsale numbers, especially as respects the quarterly growth of 58%. 2023 may be the sixth calendar year in a row with double-digit industry-wide E&S premium growth. The commercial property market continues to be an area of opportunity for Kinsale with both rapid growth in premium and strong rate increases.