Specialty insurance provider Kinsale Capital Group (NYSE: KNSL) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 22.2% year on year to $469.8 million. Its GAAP profit of $5.76 per share was 30.3% above analysts’ consensus estimates.

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

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

Insurance companies generate revenue three ways. The first is the core insurance business itself, represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected but not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from policy administration, annuities, and other value-added services.

Luckily, Kinsale Capital Group’s revenue grew at an incredible 36.1% 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.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Kinsale Capital Group’s annualized revenue growth of 29.7% 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 robust year-on-year revenue growth of 22.2%, and its $469.8 million of revenue topped Wall Street estimates by 8.2%.

Net premiums earned made up 87.8% 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.

Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - 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. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Kinsale Capital Group’s BVPS grew at an incredible 29.3% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 40.1% annually over the last two years from $37.64 to $73.93 per share.

Over the next 12 months, Consensus estimates call for Kinsale Capital Group’s BVPS to grow by 25.5% to $75.02, elite growth rate.

Key Takeaways from Kinsale Capital Group’s Q2 Results

We were impressed by how significantly Kinsale Capital Group blew past analysts’ EPS 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 solid quarter with some key areas of upside. The stock traded up 1.4% to $479.60 immediately after reporting.

Kinsale Capital Group put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.