Specialty insurance provider Kinsale Capital Group (NYSE: KNSL) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 19% year on year to $497.5 million. Its non-GAAP profit of $5.21 per share was 8% above analysts’ consensus estimates.

Is now the time to buy Kinsale Capital Group? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.

Revenue Growth

Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Luckily, Kinsale Capital Group’s revenue grew at an incredible 34.3% compounded annual growth rate over the last five years. Its growth surpassed the average insurance company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Kinsale Capital Group’s annualized revenue growth of 27.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, Kinsale Capital Group reported year-on-year revenue growth of 19%, and its $497.5 million of revenue exceeded Wall Street’s estimates by 10.9%.

Net premiums earned made up 87.3% of the company’s total revenue during the last five years, meaning Kinsale Capital Group barely relies on non-insurance activities to drive its overall growth.

While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone - its direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees.

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Book Value Per Share (BVPS)

Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.

Kinsale Capital Group’s BVPS grew at an incredible 27.7% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 41.8% annually over the last two years from $39.86 to $80.19 per share.

Over the next 12 months, Consensus estimates call for Kinsale Capital Group’s BVPS to grow by 22.7% to $80.92, elite growth rate.

Key Takeaways from Kinsale Capital Group’s Q3 Results

We were impressed by how significantly Kinsale Capital Group blew past analysts’ net premiums earned expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its book value per share slightly missed. Overall, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 2.9% to $440 immediately following the results.

So do we think Kinsale Capital Group is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.