Q4 2024 Kinsale Capital Group Inc Earnings Call

Michael Kehoe; Chairman of the Board, Chief Executive Officer; Kinsale Capital Group Inc

Bryan Petrucelli; Chief Financial Officer, Executive Vice President, Treasurer; Kinsale Capital Group Inc

Brian Haney; President, Chief Operating Officer; Kinsale Capital Group Inc

Michael Zaremski; Analyst; BMO Capital Markets

Bill Carcache; Analyst; Wolfe Research

Mark Hughes; Analyst; Truist Securities

Andrew Andersen; Analyst; Jefferies

Scott Heleniak; Analyst; RBC Capital Markets

Michael Phillips; Analyst; Oppenheimer & Co., Inc.

Pablo Singzon; Analyst; JPMorgan

Andrew Kligerman; Analyst; TD Cowen

Casey Alexander; Analyst; Compass Point Research & Trading LLC

Operator

Good morning, and welcome to the Kinsale Capital Group fourth-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
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 2023 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 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 Chairman and CEO, Mr. Michael Kehoe. Please go ahead, sir.

Michael Kehoe

Thank you, operator, and good morning everyone.
As usual, Brian Petrocelle, our CFO, and Brian Heaney, our President and COO, are joining me this morning for the call.
In the fourth quarter, 2024, Ksal's operating earnings per share increased by 19.4%. And gross written premium grew by 12.2%. Over the fourth quarter of 2023.
For the quarter, the company posted a combined ratio of 73.4% in a full year 2024 operating return on equity of 29%.
Also of note, the appreciation of Kinsale's stock price over the course of 2024 exceeded that of the S&P 500 index for the eighth time in the last 9 years since our IPO back in 2016.
These results largely flow from the Kinsale business strategy of small ENS account focus, absolute control over our underwriting. In claim handling processes, best in class service levels, and risk appetite that we provide our brokers.
And technology driven low cost.
As we've said in the past, these advantages have real durability to them.
Likewise, we are investing heavily in technology, automation, data and analytics. To drive further gains in the years ahead, progress in these areas should allow us to gradually and continually improve our expense ratio, our customer service, and the accuracy and competitiveness of our underwriting all to the benefit of our profitability and growth.
The Southern California wildfires that occurred in January created considerable insured loss for the P&C industry. With estimates mostly in the $30 to $50 billion dollar range.
For Kinsale, we expect our pre-tax losses net of reinsurance to be approximately $25 million. These losses arise from a mix of personal lines and commercial property business.
The overall ENS market in the 4th quarter was generally steady, but with a continued increase in competition.
And with that, I'm going to turn the call over to Brian Pet.