Kinsale books $37.6M portfolio loss in Q3 repositioning

Kinsale Capital took a $37.6 million pre-tax loss repositioning its investment portfolio in the third quarter. The carrier said the move left book value intact while net investment income rose 17.5% and operating earnings climbed 5.9%.

Ategrity ran an 84.7% combined ratio, but a $17.2 million investment loss cut net income. The E&S carrier holds a $219 million utility and infrastructure portfolio at fair value, which it says drives volatility separate from underwriting.

For fund selectors, the supply side is the practical change: Invesco Real Estate is marketing bridge and mezzanine credit to insurer general accounts, and 2026 commercial real estate lending so far exceeds 2025.

Chubb posted a record $1.79 billion in pre-tax investment income, up 8.6%, lifting net income 1.5% to $2.84 billion. Catastrophe costs more than doubled, to $705 million.

Cynthia Beaulieu, Conning's chief investment officer, said a resilient U.S. economy is among the key drivers of higher Treasury yields, in an Investment Perspective reported by Insurance AUM Journal.

Geoff Cornell and Eric Winograd tied higher long yields to real rates in an Oct. 16 piece in the same publication: breakevens have been steady, and productivity near 2% supports a higher neutral rate.

Boothe and Heidenberger connected the One Big Beautiful Bill Act to better earnings and duration risk. They wrote that earnings improved on capex rather than cost-cutting, and that private markets must absorb more duration supply.

Together, the three point to real rates and the real economy rather than an inflation premium: a resilient economy, productivity near 2% and capex-driven earnings.