Kinsale Capital Group, Inc.

Before we get started, let me remind everyone that through the course of the teleconference, Kin Sales 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 2023 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 to these letters can be found in the press release, which is available at the company's website at www.kinsalecapital.com. I will now turn the conference over to Kinsale's Chairman and CEO, Mr. Michael Kehoe. Please go ahead, sir.

Thank you, operator, and good morning, everyone. As is our usual approach, Brian Patricelli, our CFO, and Brian Haney, our president and COO, and I will each make a few comments, and then we'll move on to Q&A. In the first quarter of 2024, Kinsale's operating earnings per share increased by 43.4%, and gross written premium grew by 25.5%. over the first quarter of 2023. For the quarter, the company posted a combined ratio of 79.5%, and it posted an operating return on equity of 28.9%. The company's strategy of disciplined E&S underwriting and technology-enabled low costs drive these results and allows us to generate attractive returns and take market share from competitors at the same time. has just mentioned growth in gross written premium first quarter to 25.5% from 33.8% in the fourth quarter of 2023 and down from the 40% growth we've experienced over the last several years. This deceleration over the last couple of quarters is mostly driven by the property market's return to a normal level of competition from the crisis-like environment in 2022 and early 2023. Property continues to be an attractive opportunity with favorable pricing and growth rates, and we remain optimistic about this area of the E&S market looking forward. The casualty market remains attractive as well, with levels of competition varying by product line. Our growth rate in casualty differs from one line to another But in general, we see this area as steady to slightly improving. Brian Haney will offer some additional commentary on the E&S market here in a moment. Overall, the P&C industry continues to work through challenges around frequency and severity catastrophes, inflation in general, and rising loss costs in particular, an expanding and at times unpredictable tort system, litigation financing, and loss reserve adequacy, in particular on longer tail current lines. All of these challenges and a variety of others should contribute to drive stability and growth opportunity in the market for the foreseeable future. Beyond the industry-wide challenges noted above, it's our own business strategy here at ConSale that drives our confidence in prospects for significant future profit and growth. It's the focus on smaller risks within the ENS market, the absolute control we exercise over our underwriting and claims management operations, the best-in-class service level and risk appetite we provide to our brokers, and our technology-driven low-cost operation that differentiate Kinsale from competitors across the industry. And in many ways, the competitive advantages we have become even more significant as the market becomes more competitive in the years ahead. And finally, just a reminder that establishing conservative reserves to pay future claims is a fundamental part of our business strategy. As we have noted before, some of the original conservatism of the 2016 through 2019 accident years has been eroded away by inflation. Although with booked ultimate loss ratios in the low 60% range, these accident years will remain highly profitable. These years have developed favorably on an inception-to-date basis, except for the 2018 year, which is slightly adverse. From the 2020 accident year looking forward, our pricing has exceeded loss-cost trend, and we have been more cautious releasing reserves, giving us full confidence that our overall reserves are in the best position in our company's history. And likewise, investors should have confidence in the strength of our balance sheet and the prospects for continued favorable reserve development in the years ahead. And with that, I'm going to turn the call over to Brian Petruzzelli.

Thanks, Mike. Another great quarter from a profitability perspective with net income and net operating earnings increasing by 77.3% and 43.8% respectively. The 79.5% combined ratio for the quarter includes 2.7 points from net favorable prior year loss reserve development compared to 3.7 points last year with negligible CAT losses in either period. As Mike mentioned, we're taking a more cautious approach to releasing reserves and in setting current year loss ratio picks. The expense ratio continues to benefit from higher seating commissions. from the company's casualty and commercial property proportional reinsurance agreements as a result of growth in the lines of business seated into those treaties. The expense ratio decreased by a point from 21.7% in the first quarter of 2023 to 20.7% this year, with almost all coming from lower net commissions. On the investment side, net investment income increased by 59.1% over last year, as a result of continued growth in the investment portfolio generated from strong operating cash flows and higher interest rates, with a gross return of 4.3% for the year compared to 3.7% last year. We haven't made any significant changes to our investment strategy and continue to monitor inflation, interest rates, and related Fed policy commentary, and will adjust as circumstances warrant. New money yields are averaging in the low to mid 5% range and an average duration of 2.8 years consistent with year end. And lastly, diluted operating earnings per share continues to improve and was $3.50 per share for the quarter compared to $2.44 per share for the first quarter of 2023. With that, I'll pass it over to Brian Haney.