KNSL

Kinsale Capital is one of the highest-quality compounders in the insurance industry, and FY2025 extends a remarkable record. Revenue grew 18.0% to $1.87B, net income rose 21.4% to $504M, and diluted EPS climbed 21.8% to $21.65 — capping a multi-year run that has more than tripled net income from $153M (FY2021). The company's excess & surplus (E&S) niche, technology-driven underwriting, and disciplined cost structure produce a 26.9% net margin and a 25.7% ROE — figures that put it at the very top of the property-casualty universe. Crucially, equity grew 32.1% to $1.96B and retained earnings 39.7% to $1.72B, showing the bulk of earnings is being retained to compound book value.

The business model is structurally advantaged: Kinsale focuses on hard-to-place small and mid-size E&S risks where it has pricing power and faces less competition than standard-lines insurers. Strong operating cash flow of $1.04B (+6.9%) fuels investment-income growth on a rising float, while a conservative balance sheet (liabilities/equity of just 2.08x — very low for an insurer) and modest debt ($224M) underpin the franchise. Management is even returning some capital opportunistically, with buybacks up 9x to $90M plus a growing dividend, while still retaining most earnings for growth.