Kinsale Capital Group, Inc. (NYSE:KNSL) Q4 2022 Earnings Conference Call February 17, 2023 9:00 AM ET
Company Participants
Michael Kehoe - President and Chief Executive Officer
Bryan Petrucelli - Chief Financial Officer
Brian Haney - Chief Operating Officer
Conference Call Participants
Mike Zaremski - BMO
Mark Hughes - Truist
Casey Alexander - Compass Point
Andrew Anderson - Jefferies
Pablo Singzon - J.P. Morgan
Rowland Mayor - RBC Capital Markets
Operator
[Starts Abruptly] 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 2021 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 fourth quarter results.
Kinsale's management may also reference certain non-GAAP financial measures in the call today. A reconciliation of GAAP of 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.
Brian Haney, Kinsale's Chief Operating Officer, and Bryan Petrucelli, Chief Financial Officer, are both with me. Each of us will make a few comments and then we'll move on to any questions that you may have for us.
In the fourth quarter, Kinsale's operating earnings per share increased by 48% and gross written premium grew by 45%. The company posted a 72.4% combined ratio for the quarter and an operating return on equity for all of 2022 of 25%. We believe these results are principally driven by Kinsale's unique business model of disciplined underwriting and technology-driven low costs. The results are also boosted by the favorable E&S market, which continues to experience a strong inflow of new business that allows for meaningful rate increases and exposure growth.
Kinsale continues to raise rates above the loss cost trend as we have been doing for four years now. And we continue to establish reserves for future losses in a conservative fashion. Investors should have a high level of confidence in Kinsale's balance sheet and reserve position.