Kinsale Capital Group NYSE:KNSL, the specialty insurer focused on the excess and surplus lines market, reported second-quarter net income of $175.9 million, or $7.72 a diluted share, up 34% from a year earlier. Net operating earnings, which strip out equity fair value swings and realized gains, rose 15.9% to $5.54 a share. Gross written premiums fell 5.0% to $527.6 million.

The decline sits almost entirely in one place. Commercial Property premiums dropped 32.7% in the quarter on what Kinsale called heightened competition. Underwriting income reached $105.4 million on a combined ratio of 75.5%, against 75.8% a year ago, helped by $19.4 million of favorable reserve development from prior accident years. Net investment income climbed 19.9% to $55.7 million.

Kinsale repurchased $100.0 million of stock during the quarter at an average $311.47 a share, and its board approved a further $250 million authorization in July, leaving $337.5 million of capacity. CEO Michael Kehoe said the company is "generating significant operating cash flows resulting in excess capital." Book value per share reached $89.34, up from $84.66 at the end of December.