Kinsale Capital Group, Inc.
For the period ended Sep 30, 2026. Filed Oct 22, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 22, 2026
KNSL$383.73-3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001669162-26-000040
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-22.
0001669162-26-000050
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 180 previous paragraphs and 182 current paragraphs.
122 unchanged; 48 reworded; 12 added; 8 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 20 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
NM - Percentage change not meaningful.
Current report
Net income was $98.1 million for the three months ended September 30, 2026 compared to $141.6 million for the three months ended September 30, 2025, a decrease of 30.7%. The decrease was primarily due to net realized and unrealized investment losses, compared to gains in the prior-year period, offset in part by higher net investment income and underwriting income.
Current report
During the third quarter of 2026, the Company repositioned a portion of its investment portfolio to improve expected long-term returns. The Company sold certain common stock holdings and reinvested the proceeds in higher conviction common stock investments. The sales reversed unrealized gains previously recognized in the change in fair value of equity securities and recognized largely corresponding realized gains. The Company simultaneously sold lower-yielding fixed-maturity securities in a loss position and reinvested the proceeds in higher-yielding fixed-maturity securities. The losses on the fixed-maturity sales, which had previously been recorded in accumulated other comprehensive loss within stockholders’ equity, were reclassified into net income upon sale and offset the realized gains on the equity sales. The repositioning reduced third quarter pre-tax earnings by $37.6 million.
Current report
Certain prior year amounts are reclassified to conform to current year's divisions and the business underwritten within them.
Current report
The change in the fair value of equity securities for the three months ended September 30, 2026 primarily reflected the reversal of gains recognized in prior periods on equity securities sold during the quarter in connection with the repositioning of portions of the Company's investment portfolio.
Current report
Net realized investment losses were $0.4 million for the three months ended September 30, 2026 compared to net realized investment gains of $2.2 million for the three months ended September 30, 2025. Net realized investment losses for the three months ended September 30, 2026 consisted of net realized losses of $37.6 million on the sale of fixed-maturity securities, largely offset by net realized gains of $37.1 million on the sale of certain equity securities in connection with the repositioning of the investment portfolio.
Current report
Nine months ended September 30, 2026 compared tonine months ended September 30, 2025
Current report
NM - Percentage change not meaningful.
Current report
The lower change in the fair value of equity securities primarily reflected the repositioning of a portion of the Company’s investment portfolio during the third quarter of 2026 to improve expected long-term returns. The Company sold certain common stock holdings and reinvested the proceeds in higher conviction common stock investments. The sales reversed unrealized gains previously recognized in the change in fair value of equity securities and recognized largely corresponding realized gains. The Company simultaneously sold lower-yielding fixed-maturity securities in a loss position and reinvested the proceeds in higher-yielding fixed-maturity securities. The losses on the fixed-maturity sales, which had previously been recorded in accumulated other comprehensive loss within stockholders’ equity, were reclassified into net income upon sale and offset the realized gains on the equity sales.
Current report
Certain prior year amounts are reclassified to conform to current year's divisions and the business underwritten within them.
Current report
The change in the fair value of equity securities for the nine months ended September 30, 2026 primarily reflected the reversal of gains recognized in prior periods on equity securities sold during 2026, in connection with the repositioning of the equity portfolio during the period.
Current report
Net realized investment gains were $8.0 million and $2.8 million for the nine months ended September 30, 2026 and 2025, respectively. Net realized investment gains for the first nine months of 2026 consisted primarily of realized gains on opportunistic sales of equity securities and on the repositioning of the equity portfolio, partially offset by realized losses on the sale of fixed-maturity securities.
Removed paragraphs (8)
Previous report
Net income was $175.9 million for the three months ended June 30, 2026 compared to $134.1 million for the three months ended June 30, 2025, an increase of 31.1%. The increase in net income for the second quarter of 2026 from the same period last year was primarily due to continued underwriting profitability and strong investing results, including higher investment income and higher returns on equity investments.
Previous report
The change in the fair value of equity securities consisted of the following:
Previous report
The change in the fair value of equity securities for both the three months ended June 30, 2026 and 2025 were generally consistent with the changes in the broader U.S. stock market.
Previous report
Net realized investment gains were $6.7 million and $0.1 million for the three months ended June 30, 2026 and 2025, respectively, primarily as a result of opportunistic sales of equity securities.
Previous report
Six months ended June 30, 2026 compared tosix months ended June 30, 2025
Previous report
The change in the fair value of equity securities consisted of the following:
Previous report
The change in the fair value of equity securities for both the six months ended June 30, 2026 and 2025 were generally consistent with the changes in the broader U.S. stock market.
Previous report
Net realized investment gains were $8.4 million and $0.7 million for the six months ended June 30, 2026 and 2025, respectively, primarily as a result of opportunistic sales of equity securities.
Reworded paragraphs (48)
Previous wording
The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2026, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
The results of operations for the three and nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2026, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
We have one reportable segment, our Excess and Surplus Lines Insurance segment, which offers property and casualty ("P&C") insurance products through the E&S market. For the first six months of 2026, the percentage breakdown of our gross written premiums was 74.1% casualty and 25.9% property. Our commercial underwriting divisions include Commercial Property, Excess Casualty, General Casualty, Small Business Casualty, Construction, Allied Health, Small Business Property, Entertainment, Products Liability, Commercial Auto, Energy, Excess Professional, Inland Marine, Life Sciences, Environmental, Professional Liability, Health Care, Agribusiness Property, Public Entity, Agribusiness Casualty, Management Liability, Aviation, Ocean Marine, and Product Recall. We also write homeowners' coverage in the personal lines market, which in aggregate represented 2.5% of our gross written premiums in the first six months of 2026.
Current wording
We have one reportable segment, our Excess and Surplus Lines Insurance segment, which offers property and casualty ("P&C") insurance products through the E&S market. For the first nine months of 2026, the percentage breakdown of our gross written premiums was 74.7% casualty and 25.3% property. Our commercial underwriting divisions include Excess Casualty, Commercial Property, General Casualty, Small Business Casualty, Construction, Allied Health, Small Business Property, Entertainment, Products Liability, Commercial Auto, Energy, Excess Professional, Inland Marine, Environmental, Life Sciences, Professional Liability, Health Care, Public Entity, Agribusiness Property, Agribusiness Casualty, Management Liability, Aviation, and Ocean Marine. We also write homeowners' coverage in the personal lines market, which in aggregate represented 2.6% of our gross written premiums in the first nine months of 2026.
Previous wording
Change in fair value of equity securities represents the increase or decrease in the fair value of equity securities held during the period.
Current wording
Change in fair value of equity securities represents the increase or decrease in the fair value of equity securities held at the end of the period and the reversal of fair value changes recognized in prior periods on equity securities sold during the period.
Previous wording
Underwriting income was $105.4 million for the three months ended June 30, 2026 compared to $95.5 million for the three months ended June 30, 2025, an increase of 10.5%. The corresponding combined ratios were 75.5% for the three months ended June 30, 2026 compared to 75.8% for the three months ended June 30, 2025. The increase in underwriting income in the second quarter of 2026 compared to the second quarter of 2025 was primarily due to growth in net earned premiums and higher favorable development of loss reserves from prior accident years offset in part by lower ceding commissions as a result of increased retention on our reinsurance treaties.
Current wording
Underwriting income was $107.1 million for the three months ended September 30, 2026 compared to $105.7 million for the three months ended September 30, 2025, an increase of 1.3%. The corresponding combined ratios were 75.4% for the three months ended September 30, 2026 compared to 74.9% for the three months ended September 30, 2025. The increase in underwriting income in the third quarter of 2026 compared to the third quarter of 2025 was primarily due to growth in net earned premiums and higher favorable development of loss reserves from prior accident years offset in part by lower ceding commissions as a result of increased retention on our reinsurance treaties.
Previous wording
Gross written premiums were $527.6 million for the three months ended June 30, 2026 compared to $555.5 million for the three months ended June 30, 2025, a decrease of $27.9 million, or 5.0%. The decrease in gross written premiums was primarily due to a 32.7% decline in the Commercial Property Division, one of the Company's larger divisions, driven by heightened competition. Excluding our Commercial Property Division, gross written premiums grew 3.7% due to continued strong submission flow across most divisions and an increase in bound accounts offset in part by lower average premium per policy as a result of heightened competition.
Current wording
Gross written premiums were $462.9 million for the three months ended September 30, 2026 compared to $486.3 million for the three months ended September 30, 2025, a decrease of $23.4 million, or 4.8%. The decrease in gross written premiums was primarily due to a 19.3% decline in our property divisions, driven by heightened competition, including a 26.8% decline in our Commercial Property Division, one of the Company's larger divisions. Gross written premiums in our casualty business grew 0.9% due primarily to an increase in bound accounts offset in part by a change in business mix towards smaller accounts.
Previous wording
The average premium per policy written was approximately $12,300 in the second quarter of 2026 compared to approximately $14,300 in the second quarter of 2025. Excluding our personal lines insurance, which has a relatively low premium per policy written, the average premium per policy written was approximately $12,700 in the second quarter of 2026 compared to $14,900 in the second quarter of 2025. The decrease in average premium per policy for the second quarter of 2026 over the same period last year was due to an increase in competition, primarily on larger accounts and in our Commercial Property Division.
Current wording
The average premium per policy written was approximately $11,400 in the third quarter of 2026 compared to approximately $12,900 in the third quarter of 2025. Excluding our Personal Insurance Division, which has a relatively low premium per policy written, the average premium per policy written was approximately $11,700 in the third quarter of 2026 compared to $13,500 in the third quarter of 2025. The decrease in average premium per policy for the third quarter of 2026 over the same period last year was due to an increase in competition, primarily on larger accounts and in our Commercial Property Division.
Previous wording
Net written premiums decreased by $6.2 million, or 1.4%, to $452.5 million for the three months ended June 30, 2026 from $458.7 million for the three months ended June 30, 2025. The decrease in net written premiums for the second quarter of 2026 compared to the same period last year was primarily due to the decline in gross written premiums offset in part by lower ceded premiums as a result of an increase in retention on our reinsurance treaties.
Current wording
Net written premiums decreased by $5.9 million, or 1.5%, to $399.1 million for the three months ended September 30, 2026 from $405.1 million for the three months ended September 30, 2025. The decrease in net written premiums for the third quarter of 2026 compared to the same period last year was primarily due to the decline in gross written premiums offset in part by lower ceded premiums as a result of an increase in retention on our reinsurance treaties.
Previous wording
The net retention ratio was 85.8% for the three months ended June 30, 2026 compared to 82.6% for the three months ended June 30, 2025 due to increased retention in our reinsurance treaties and change in the mix of business.
Current wording
The net retention ratio was 86.2% for the three months ended September 30, 2026 compared to 83.3% for the three months ended September 30, 2025 due to increased retention in our reinsurance treaties and change in the mix of business.
Previous wording
Net earned premiums increased by $34.0 million, or 8.9%, to $417.6 million for the three months ended June 30, 2026 from $383.6 million for the three months ended June 30, 2025 due primarily to continued earning of premium from prior-period growth in gross written premiums and higher net retention levels.
Current wording
Net earned premiums increased by $12.5 million, or 3.0%, to $423.5 million for the three months ended September 30, 2026 from $411.0 million for the three months ended September 30, 2025 due primarily to higher net retention levels and continued earning of premium from prior-period growth in gross written premiums.
Previous wording
The loss ratio was 53.8% for the three months ended June 30, 2026 compared to 55.1% for the three months ended June 30, 2025. The decrease in the loss ratio in the second quarter of 2026 compared to the second quarter of 2025 was due primarily to a lower current accident year loss ratio and higher relative net favorable development of prior-year loss reserves.
Current wording
The loss ratio was 53.4% for the three months ended September 30, 2026 compared to 53.9% for the three months ended September 30, 2025. The decrease in the loss ratio in the third quarter of 2026 compared to the third quarter of 2025 was due primarily to higher relative net favorable development of prior-year loss reserves offset in part by higher catastrophe losses.
Previous wording
During the three months ended June 30, 2026, prior accident years developed favorably by $19.4 million, of which $22.6 million was attributable to the 2021 through 2025 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in our shorter-tail lines of business. This favorable development was offset in part by adverse development primarily in the construction liability business in the 2017 through 2019 accident years.
Current wording
During the three months ended September 30, 2026, prior accident years developed favorably by $19.7 million, of which $23.3 million was attributable to the 2022 through 2025 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in our shorter-tail lines of business. This favorable development was offset in part by adverse development primarily in the construction liability business in the 2017 and 2018 accident years.
Previous wording
During the three months ended June 30, 2025, prior accident years developed favorably by $15.4 million, of which $19.1 million was attributable to the 2020 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures.
Current wording
During the three months ended September 30, 2025, prior accident years developed favorably by $15.8 million, of which $18.0 million was attributable to the 2021 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures.
Previous wording
The expense ratio was 21.7% for the three months ended June 30, 2026 compared to 20.7% for the three months ended June 30, 2025. The increase in the expense ratio was primarily due to lower ceding commissions as a result of increased retention on our reinsurance treaties. Direct commissions paid as a percentage of gross written premiums was 14.9% and 14.8% for the three months ended June 30, 2026 and 2025, respectively.
Current wording
The expense ratio was 22.0% for the three months ended September 30, 2026 compared to 21.0% for the three months ended September 30, 2025. The increase in the expense ratio was primarily due to lower ceding commissions as a result of increased retention on our reinsurance treaties. Direct commissions paid as a percentage of gross written premiums was 14.9% and 14.8% for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Net investment income increased by 19.9% to $55.7 million for the three months ended June 30, 2026 from $46.5 million for the three months ended June 30, 2025. This increase was primarily due to growth in our investment portfolio generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.6% and 4.4% for the three months ended June 30, 2026 and 2025, respectively.
Current wording
Net investment income increased by 17.5% to $58.3 million for the three months ended September 30, 2026 from $49.6 million for the three months ended September 30, 2025. This increase was primarily due to growth in our investment portfolio generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.4% for both the three months ended September 30, 2026 and 2025.
Previous wording
Our effective tax rate was 20.0% for the three months ended June 30, 2026 compared to 20.3% for the three months ended June 30, 2025. The effective tax rates were lower than the federal statutory rate of 21% due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.
Current wording
Our effective tax rate was 20.6% for the three months ended September 30, 2026 compared to 20.8% for the three months ended September 30, 2025. The effective tax rates were lower than the federal statutory rate of 21% due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025:
Previous wording
Net income was $288.4 million for the six months ended June 30, 2026 compared to $223.3 million for the six months ended June 30, 2025, an increase of 29.1%. The increase in net income for the first six months of 2026 over the same period last year was primarily due to lower catastrophe losses and strong investing results, including higher investment income and higher returns on equity investments.
Current wording
Net income was $386.6 million for the nine months ended September 30, 2026 compared to $365.0 million for the nine months ended September 30, 2025, an increase of 5.9%. The increase in net income for the first nine months of 2026 over the same period last year was primarily due to higher underwriting income and higher net investment income offset in part by a lower change in the fair value of equity securities.
Previous wording
Underwriting income was $199.9 million for the six months ended June 30, 2026 compared to $162.9 million for the six months ended June 30, 2025, an increase of 22.7%. The corresponding combined ratios were 76.4% for the six months ended June 30, 2026 compared to 78.8% for the six months ended June 30, 2025. The increase in underwriting income for the first six months of 2026 compared to the same period last year was primarily due to growth in net earned premiums, lower catastrophe losses and higher favorable development of loss reserves from prior accident years.
Current wording
Underwriting income was $307.0 million for the nine months ended September 30, 2026 compared to $268.6 million for the nine months ended September 30, 2025, an increase of 14.3%. The corresponding combined ratios were 76.1% for the nine months ended September 30, 2026 compared to 77.5% for the nine months ended September 30, 2025. The increase in underwriting income for the first nine months of 2026 compared to the same period last year was primarily due to growth in net earned premiums, lower catastrophe losses and higher favorable development of loss reserves from prior accident years.
Previous wording
Gross written premiums were $1,009.6 million for the six months ended June 30, 2026 compared to $1,039.8 million for the six months ended June 30, 2025, a decrease of $30.2 million, or 2.9%. The decrease in gross written premiums was primarily due to a 30.9% decline in the Commercial Property Division, one of the Company's larger divisions, driven by heightened competition. Excluding our Commercial Property Division, gross written premiums grew 4.8% due to continued strong submission flow across most divisions and an increase in bound accounts offset in part by lower average premium per policy as a result of heightened competition.
Current wording
Gross written premiums were $1,472.5 million for the nine months ended September 30, 2026 compared to $1,526.0 million for the nine months ended September 30, 2025, a decrease of $53.6 million, or 3.5%. The decrease in gross written premiums was primarily due to an 18.7% decline in our property divisions, driven by heightened competition, including a 29.8% decline in the Commercial Property Division, one of the Company's larger divisions. Gross written premiums in our casualty business grew 3.0% due primarily to an increase in bound accounts offset in part by a change in business mix towards smaller accounts.
Previous wording
The average premium per policy written was $12,200 in the first six months of 2026 compared to $14,200 in the first six months of 2025. Excluding our Personal Insurance Division, which has a relatively low premium per policy written, the average premium per policy written was $12,600 for the first six months of 2026 and $14,800 for the first six months of 2025. The decrease in average premium per policy for the first six months of 2026 over the same period last year was due to an increase in competition, primarily on larger accounts and in our Commercial Property Division.
Current wording
The average premium per policy written was $12,000 in the first nine months of 2026 compared to $13,800 in the first nine months of 2025. Excluding our Personal Insurance Division, which has a relatively low premium per policy written, the average premium per policy written was $12,300 for the first nine months of 2026 and $14,400 for the first nine months of 2025. The decrease in average premium per policy for the first nine months of 2026 over the same period last year was due to an increase in competition, primarily on larger accounts and in our Commercial Property Division.
Previous wording
The following table provides a summary of gross premiums written by division for the six months ended June 30, 2026 and 2025:
Current wording
The following table provides a summary of gross premiums written by division for the nine months ended September 30, 2026 and 2025:
Previous wording
Net written premiums increased by $15.3 million, or 1.8%, to $855.7 million for the six months ended June 30, 2026 from $840.4 million for the six months ended June 30, 2025. The net retention ratio was 84.8% for the six months ended June 30, 2026 compared to 80.8% for the same period last year. The increases in net written premiums and the net retention ratio were primarily due to an increase in the retention on our reinsurance treaties and change in the mix of business.
Current wording
Net written premiums increased by $9.4 million, or 0.8%, to $1,254.9 million for the nine months ended September 30, 2026 from $1,245.5 million for the nine months ended September 30, 2025. The net retention ratio was 85.2% for the nine months ended September 30, 2026 compared to 81.6% for the same period last year. The increases in net written premiums and the net retention ratio were primarily due to an increase in the retention on our reinsurance treaties and change in the mix of business.
Previous wording
Net earned premiums increased by $75.1 million, or 10.0%, to $824.5 million for the six months ended June 30, 2026 from $749.4 million for the six months ended June 30, 2025 due primarily to continued earning of premium from prior-period growth in gross written premiums and higher net retention levels.
Current wording
Net earned premiums increased by $87.6 million, or 7.5%, to $1,247.9 million for the nine months ended September 30, 2026 from $1,160.4 million for the nine months ended September 30, 2025 due primarily to continued earning of premium from prior-period growth in gross written premiums and higher net retention levels.
Previous wording
The following table summarizes the loss ratios for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes the loss ratios for the nine months ended September 30, 2026 and 2025:
Previous wording
The loss ratio was 55.0% for the six months ended June 30, 2026 compared to 58.5% for the six months ended June 30, 2025. The decrease in the loss ratio for the first six months of 2026 compared to the first six months of 2025 was due primarily to lower catastrophe losses incurred in the period and higher relative net favorable development of prior-year loss reserves.
Current wording
The loss ratio was 54.5% for the nine months ended September 30, 2026 compared to 56.9% for the nine months ended September 30, 2025. The decrease in the loss ratio for the first nine months of 2026 compared to the first nine months of 2025 was due primarily to lower catastrophe losses incurred in the period and higher relative net favorable development of prior-year loss reserves.
Previous wording
During the six months ended June 30, 2026, prior accident years developed favorably by $38.1 million, of which $43.1 million was attributable to the 2020 through 2025 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in our shorter-tail lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2017 through 2019 accident years.
Current wording
During the nine months ended September 30, 2026, prior accident years developed favorably by $57.8 million, of which $66.3 million was attributable to the 2021 through 2025 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in our shorter-tail lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2017 through 2019 accident years.
Previous wording
During the six months ended June 30, 2025, prior accident years developed favorably by $30.1 million, of which $35.8 million was attributable to the 2020 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures.
Current wording
During the nine months ended September 30, 2025, prior accident years developed favorably by $45.9 million, of which $53.8 million was attributable to the 2020 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures.
Previous wording
The following table summarizes the components of the expense ratio for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes the components of the expense ratio for the nine months ended September 30, 2026 and 2025:
Previous wording
The expense ratio was 21.4% for the six months ended June 30, 2026 compared to 20.3% for the six months ended June 30, 2025. The increase in the expense ratio was primarily due to lower ceding commissions as a result of increased retention on our reinsurance treaties. Direct commissions paid as a percentage of gross written premiums was 14.9% and 14.8% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
The expense ratio was 21.6% for the nine months ended September 30, 2026 compared to 20.6% for the nine months ended September 30, 2025. The increase in the expense ratio was primarily due to lower ceding commissions as a result of increased retention on our reinsurance treaties. Direct commissions paid as a percentage of gross written premiums was 14.9% and 14.8% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The following table summarizes net investment income, change in the fair value of equity securities and net realized investment gains (losses) for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes net investment income, change in the fair value of equity securities and net realized investment gains (losses) for the nine months ended September 30, 2026 and 2025:
Previous wording
Net investment income increased by 23.1% to $111.2 million for the six months ended June 30, 2026 from $90.3 million for the six months ended June 30, 2025. The increase in the first six months of 2026 compared to the same period last year was primarily due to growth in our investment portfolio largely generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.5% and 4.3% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Net investment income increased by 21.1% to $169.4 million for the nine months ended September 30, 2026 from $139.9 million for the nine months ended September 30, 2025. The increase in the first nine months of 2026 compared to the same period last year was primarily due to growth in our investment portfolio largely generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.4% and 4.3% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Our effective tax rate was 19.8% for the six months ended June 30, 2026 compared to 20.4% for the six months ended June 30, 2025. The effective tax rate was lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.
Current wording
Our effective tax rate was 20.0% for the nine months ended September 30, 2026 compared to 20.6% for the nine months ended September 30, 2025. The effective tax rate was lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.
Previous wording
Our annualized return on equity was 28.9% for the six months ended June 30, 2026 compared to 27.9% for the six months ended June 30, 2025. Our annualized operating return on equity was 24.4% for the six months ended June 30, 2026 compared to 24.7% for the six months ended June 30, 2025. The decrease in annualized operating return on equity for the six months ended June 30, 2026 compared to the prior period was due primarily to higher average stockholders' equity offset in part by higher profitability compared to the prior-year period.
Current wording
Our annualized return on equity was 26.6% for the nine months ended September 30, 2026 compared to 29.1% for the nine months ended September 30, 2025. Our annualized operating return on equity was 25.6% for the nine months ended September 30, 2026 compared to 25.4% for the nine months ended September 30, 2025. The increase in annualized operating return on equity for the nine months ended September 30, 2026 compared to the prior period was due primarily to higher profitability compared to the prior-year period offset in part by higher average stockholders' equity.
Previous wording
In August 2025, we filed a universal shelf registration statement with the SEC that expires in 2028. We can use this shelf registration to issue an unspecified amount of common stock, preferred stock, depositary shares and warrants.
Current wording
In August 2025, we filed a universal shelf registration statement with the SEC that expires in 2028. We can use this shelf registration to issue an unspecified amount of common stock, preferred stock, depositary shares and warrants. The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.
Previous wording
In December 2025, our Board of Directors authorized a new share repurchase program authorizing the repurchase of up to $250.0 million of our common stock. The shares may be repurchased from time to time in open market purchases, privately-negotiated transactions, block purchases, accelerated share repurchase agreements or a combination of methods and pursuant to safe harbors provided by Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by us in our discretion. The share repurchase program does not require us to repurchase any specific number of shares, and may be modified, suspended or terminated at any time.
Current wording
In December 2025, our Board of Directors authorized a new share repurchase program authorizing the repurchase of up to $250.0 million of our common stock. The shares may be repurchased from time to time in open market purchases, privately-negotiated transactions, block purchases, accelerated share repurchase agreements or a combination of methods and pursuant to safe harbors provided by Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by us in our discretion. The share repurchase program does not require us to repurchase any specific number of shares, and may be modified, suspended or terminated at any time. In July 2026, our Board of Directors approved an additional share repurchase authorization of up to $250.0 million of our common stock.
Previous wording
The cost of treasury stock acquired pursuant to common share repurchases includes the 1% excise tax imposed on common share repurchase activity, net of common share issuances, as part of the Inflation Reduction Act of 2022. At June 30, 2026, the Company had $87.5 million of capacity remaining under its share repurchase program.
Current wording
The cost of treasury stock acquired pursuant to common share repurchases includes the 1% excise tax imposed on common share repurchase activity, net of common share issuances, as part of the Inflation Reduction Act of 2022. At September 30, 2026, the Company had $237.5 million of capacity remaining under its share repurchase program.
Previous wording
Our cash flows for thesix months ended June 30, 2026 and 2025 were:
Current wording
Our cash flows for thenine months ended September 30, 2026 and 2025 were:
Previous wording
Net cash provided by operating activities was approximately $490.8 million for the six months ended June 30, 2026 compared to $498.9 million for the same period in 2025. This decrease was largely driven by higher paid losses offset in part by the net effect of increased retention on our reinsurance treaties and higher investment income received.
Current wording
Net cash provided by operating activities was approximately $754.9 million for the nine months ended September 30, 2026 compared to $802.3 million for the same period in 2025. This decrease was largely driven by higher paid losses, operating expenses, and income taxes offset in part by higher investment income received.
Previous wording
Net cash used in investing activities was $263.5 million for the six months ended June 30, 2026 compared to $440.2 million for the six months ended June 30, 2025. Net cash used in investing activities during the first six months of 2026 included purchases of fixed-maturity securities of $729.5 million, which included primarily mortgage- and asset-backed securities and corporate bonds. During the first six months of 2026, we received proceeds of $367.1 million from sales of fixed-maturity securities, largely corporate bonds, and, to a lesser extent, asset- and mortgage-backed securities and municipal securities and $195.7 million primarily from redemptions and maturities of mortgage- and asset-backed securities. For the six months ended June 30, 2026, purchases of equity securities of$148.9 million consisted of common stocks and ETFs. During the first six months of 2026, we received proceeds of $58.5 million primarily from sales of common stocks and preferred stocks. In addition, net sales of short-term investments of $3.9 million consisted of U.S. Treasuries.
Current wording
Net cash used in investing activities was $472.1 million for the nine months ended September 30, 2026 compared to $702.9 million for the nine months ended September 30, 2025. The decrease in net cash used in investing activities was primarily due to a greater allocation of cash to share repurchases, which reduced the amount available for investment purchases. Net cash used in investing activities during the first nine months of 2026 included purchases of fixed-maturity securities of $1.5 billion, which included primarily corporate bonds and mortgage- and asset-backed securities. During the first nine months of 2026, we received proceeds of $795.4 million from sales of fixed-maturity securities, largely corporate bonds, and, to a lesser extent, mortgage- and asset-backed securities and municipal securities and $289.0 million primarily from redemptions and maturities of mortgage- and asset-backed securities. For the nine months ended September 30, 2026, purchases of equity securities of$266.4 million consisted of common stocks and exchange-traded funds ("ETFs"). During the first nine months of 2026, we received proceeds of $169.3 million primarily from sales of common stocks, ETFs and preferred stocks. In addition, net sales of short-term investments of $3.9 million consisted of U.S. Treasuries.
Previous wording
Net cash used in investing activities of $440.2 million during the first six months of 2025 included purchases of fixed-maturity securities of $939.5 million, which included primarily corporate bonds and asset- and mortgage-backed securities. During the first six months of 2025, we received proceeds of $282.7 million from sales of fixed-maturity securities, largely corporate bonds, asset-backed securities and, to a lesser extent, municipal securities and $359.0 million from redemptions and maturities of asset- and mortgage-backed securities and corporate bonds. For the six months ended June 30, 2025, purchases of equity securities of$94.9 million consisted of common stocks and ETFs. During the first six months of 2025, we received proceeds of $11.6 million from sales of common stocks.
Current wording
Net cash used in investing activities of $702.9 million during the first nine months of 2025 included purchases of fixed-maturity securities of $1.8 billion, which included primarily corporate bonds and asset- and mortgage-backed securities. During the first nine months of 2025, we received proceeds of $677.6 million from sales of fixed-maturity securities, largely corporate bonds, asset-backed securities and, to a lesser extent, municipal securities and $554.3 million from redemptions and maturities of asset- and mortgage-backed securities and corporate bonds. For the nine months ended September 30, 2025, purchases of equity securities of$131.4 million consisted of common stocks and ETFs. During the first nine months of 2025, we received proceeds of $14.6 million from sales of common stocks. In addition, net purchases of short-term investments of $6.5 million consisted of U.S. Treasuries.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.
Previous report — wording carried elsewhere
In July 2026, our Board of Directors approved an additional share repurchase authorization of up to $250.0 million of our common stock, bringing the remaining capacity to $337.5 million under the share repurchase program.