Kinsale Capital Group, Inc.

Good morning and welcome to Kinsale Capital Group's third quarter 2025 earnings conference call. All participants are in a listen-only mode. After the speaker's remarks, we will conduct a question and answer session. To ask a question at this time, you will need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. Before we get started, let me remind everyone that through the course of the teleconference, and 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 2024 Annual Report on Form 10-K, which should be reviewed carefully. The company has furnished a Form 8-K with the Securities and Exchange Commission, that contains the press release announcing its third quarter results. Kinsale's management may also reference certain non-GAAP financial measures in the call today. A reconciliation of GAAP to 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 chairman and CEO, Mr. Michael Kehoe. Please go ahead, sir.

Thank you, operator, and good morning, everyone. Brian Petrucelli, our CFO, Brian Haney, our President and COO, and Stuart Winston, our EVP and CUO, Chief Underwriting Officer, are joining me on the call this morning. We announced some management changes last night, the most significant of which is Brian Haney's recent election to the Board of Directors and the announcement of his retirement and new role as Senior Advisor beginning next year. We congratulate him on his election and are encouraged that he will continue to have a prominent role in the governance and direction of Kinsale. Brian and I have worked together for almost 30 years at three different ENS companies. He was one of the original founders of Kinsale and has made tremendous contributions to our success over the almost 17 years we have been in business. It's been a great run. And needless to say, we are fortunate that he will continue contributing to Kinsale as a director and as a senior advisor with a focus on investor communications. I'd also like to congratulate Stuart Winston on his promotion to executive vice president and chief underwriting officer. Stuart and his team have delivered some of the best underwriting results in the industry. So this recognition is well-earned. And under his leadership, we have great expectations for continued profit and growth in the future. In the third quarter of 2025, can sales operating earnings per share increase by 24%? And gross rate and premium grew by 8.4% over the third quarter of 2024. For the quarter, the company posted a combined ratio of 74.9% and a nine-month operating return on equity of 25.4%. Our book value per share has increased by 25.8% since the year end 2024, and our float has increased by 20%. E&S market conditions were steady in the third quarter, generally competitive with our growth rate varying from one market segment to another with our overall growth rate at 8.4%. Our commercial property division premium dropped by 8% in the third quarter compared to a 17% drop in the second quarter. The overall third quarter growth rate excluding our commercial property division was 12.3%. And Brian Haney is going to provide some commentary on the market here in a moment. Can sales disciplined underwriting and low cost business model is a consistent winner in an industry where the customers are intensely focused on cost. As the ENS market has become more competitive over the last two years, Kinsale's efficiency has become a more significant competitive advantage by allowing us to deliver competitive policy terms to our customers without compromising our margins. In a moment in the P&C cycle characterized by loose underwriting standards, sales control of its underwriting process and superior data and analytics helps deliver consistent and attractive results. And with that, I'll turn the call over to Brian Petrucelli.

Thanks, Mike. As Mike just noted, we continue to generate great results. with net income and net operating earnings both increasing by 24% quarter over quarter. The 74.9% combined ratio for the quarter included 3.7 points from net favorable prior year loss reserve development compared to 2.8 points last year, with less than a point in CAT losses this year compared to 3.8 points in the third quarter of last year. We continue to take a cautious approach to releasing reserves. Gross written premium grew by 8.4% for the quarter, while net earned premium grew by 17.8%, which was higher than the gross written premium due to an increase in retention levels upon renewal of our reinsurance program on June 1st. We produced a 21% expense ratio in the third quarter compared to 19.6% last year. Higher expense ratio is attributable to lower seating commissions generated on the company's and commercial property quota share reinsurance agreements as a result of the higher reinsurance retention levels that I just mentioned. On the investment side, net investment income increased by 25.1% in the third quarter over last year as a result of continued growth in the investment portfolio generated from strong operating cash flows. Kin sales float, mostly unpaid losses and unearned premium, grew to $3 billion at September 30, up from $2.5 billion at the year end of 2024. The annual gross return was 4.3% for the first nine months of this year and consistent with last year. New money yields are averaging slightly below 5% with an average duration of 3.6 years on the company's fixed maturity investment portfolio. And lastly, diluted operating earnings per share continues to improve and was $5.21 per share for the quarter compared to $4.20 per share for the third quarter of 2024. And with that, I'll pass it over to Brian Haney.