Kinsale Capital Group, Inc.

Before we get started, let me remind everyone that through the course of the teleconference, Kinsales 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 2021 Annual Report on Form 10-K, which should be reviewed carefully. The company has furnished a Form 8K with the Securities and Exchange Commission that contains the press release announcing its first quarter results. Kinsale's management may also reference certain non-GAAP financial measures in the call today. A reconciliation of GAAP for 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 President and CEO, Mr. Michael Kehoe. Please go ahead, sir.

Thank you, Operator, and good morning, everyone. Welcome to our first quarter conference call. As usual, both Brian Petrucelli, Kinsale's CFO, and Brian Haney, Kinsale's COO, are joining me. We will each make a few comments on the quarter and then proceed to any questions that you may have. Kinsale's operating earnings for the first quarter of 2022 increased by 47% over the same quarter in 2021, and gross written premium was up 45%. The company posted a 79% combined ratio for the quarter and an annualized operating return on equity of 22.1%. The performance of the business in the first quarter of 2022 is really a continuation of what we have been seeing for the last couple of years. A favorable and growing E&S market is creating a tailwind for Conceal, in particular by allowing us to raise rates and grow our premium at an unusually high level. Adding to this tailwind is our own unique business strategy, expert underwriting and claim handling together with a technology-driven, low-cost operation. the combination of which creates a powerful opportunity to deliver best-in-class profit and growth in the years ahead. We remain confident that the E&S market environment will remain favorable and allow for further rate increases and strong premium growth over the course of the next year. Beyond that, we have a little less visibility on the broader market. But we do have visibility on our competitive advantages, which we believe have real durability to them, specifically controlling our own underwriting and not contracting that out to third parties. And secondly, building core competency around technology, just like we do underwriting and claim handling. Owning our own core system and not relying on external parties for that function contributes to our highly automated business process, and all the various benefits that flow from it, productivity gains, superior customer service, more robust and accurate data, and, of course, it's driving our low expense ratio and boosting our returns. I'll now turn the call over to Brian Petruzzelli.

Thanks, Mike. The business continues to perform at a very high level, with gross written premiums growing by 45%. due to the continual favorable market conditions Mike just mentioned. We reported net income of $31.8 million for the first quarter of 2022, down slightly from $32.1 million last year, due primarily to unrealized losses on our equity portfolio. Net operating earnings, which excludes an impact from fluctuations in equity values, increased by approximately 48%, up to $38 million from $26 million last year. The company generated underwriting income of $38 million and a combined ratio of 79% for the quarter compared to $25 million and 80% last year. The combined ratio for the first quarter of 2022 included 4.7 points from net favorable prior year loss reserve development compared to 5.7 points last year, with cap losses being negligible in both periods. The 21.6% expense ratio for the quarter continues to benefit from some economies of scale with earned premiums that are growing faster than our operating expenses. Operating return on equity was approximately 22% for the year, and again, ahead of our mid-teens guidance. Book value decreased by 4.8% for the quarter, primarily due to unrealized losses on our fixed income securities, resulting from the higher interest rate environment. The company continues to generate strong, positive operating cash flows, which gives us the ability to hold these securities to maturity, and the higher interest rate environment allows us to invest new money at better yields. This ultimately benefits the company over the long term. The net investment income increased by 31% over the first quarter last year, up to $9 million from $7 million last year as a result of continued growth in the investment portfolio. Annual gross investment returns excluding cash and cash equivalents was 2.5% for the quarter compared to 2.6% last year. And lastly, diluted operating earnings per share was $1.63 per share for the quarter compared to $1.11 per share last year. With that, I'll pass it over to Brian Haney.