Core Insights - Kinsale Capital Group, Inc. (KNSL) is currently trading above its 50-day simple moving average, indicating a short-term bullish trend, with a share price of $480.18, down 9.7% from its 52-week high of $531.79 [1] - The company has gained 3.2% year-to-date, underperforming the Finance sector and the Zacks S&P 500 Composite, which grew by 9.2% and 6.5% respectively [3] - Kinsale Capital has a market capitalization of $11.19 billion, with an average trading volume of 0.2 million shares over the last three months [4] Performance and Valuation - Kinsale Capital has outperformed peers such as CNA Financial Corporation, American Financial Group, and Arch Capital Group, which have seen share price declines of 8.5%, 6.9%, and 4.3% respectively [4] - The company's shares are trading at a premium, with a price-to-book value of 7.07X compared to the industry average of 1.52X, indicating overvaluation [8] Growth Prospects - The Zacks Consensus Estimate projects a 10.6% year-over-year increase in earnings per share for 2025, with revenues expected to reach $1.75 billion, reflecting a 10.4% improvement [9] - For 2026, earnings per share and revenues are estimated to increase by 15.1% and 12% respectively from 2025 estimates [9] - Kinsale Capital has a Growth Score of B, indicating favorable growth prospects [10] Underwriting and Operational Efficiency - The company leverages its strength in the excess and surplus (E&S) market to achieve robust underwriting results, maintaining a combined ratio below 95% [7][17] - Kinsale Capital's proprietary technology enhances operational efficiency, lowers expenses, and supports scalable growth [18] Market Position and Challenges - The company is well-positioned to benefit from increased submission flow and enhanced pricing discipline due to ongoing market dislocation [16] - However, Kinsale Capital remains cautious about the impact of persistent inflation, which could affect insurer margins and pricing strategies [19] Strategic Focus - Kinsale Capital's strategy emphasizes disciplined underwriting, a focus on the E&S market, and the use of proprietary technology to drive growth and operational efficiency [20]

The market expects Kinsale Capital Group, Inc. (KNSL) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 24, might help the stock move higher if these key numbe ...

Company Performance - Kinsale Capital Group, Inc. (KNSL) closed at $473.13, reflecting a -1.31% change from the previous day, underperforming the S&P 500's gain of 0.48% [1] - Over the past month, KNSL shares gained 1.14%, lagging behind the Finance sector's 3.5% increase and the S&P 500's 5.13% rise [1] Earnings Forecast - The upcoming earnings report for Kinsale Capital Group is anticipated to show an EPS of $4.37, representing a 16.53% increase from the same quarter last year [2] - Quarterly revenue is projected at $432.2 million, up 12.39% year-over-year [2] Full Year Estimates - For the full year, earnings are expected to be $17.68 per share, with revenue projected at $1.75 billion, indicating increases of +10.09% and +10.27% respectively from the previous year [3] - Recent analyst estimate revisions suggest optimism regarding the company's business and profitability [3] Valuation Metrics - Kinsale Capital Group is currently trading at a Forward P/E ratio of 27.11, which is significantly higher than the industry average Forward P/E of 12, indicating a premium valuation [6] - The company has a PEG ratio of 1.78, compared to the industry average PEG ratio of 2.73, suggesting a more favorable growth outlook relative to its price [7] Industry Context - The Insurance - Property and Casualty industry, part of the Finance sector, holds a Zacks Industry Rank of 49, placing it in the top 20% of over 250 industries [8] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a strong industry performance potential [8]

Company Overview - Kinsale Capital Group, founded in 2009, focuses on the excess and surplus lines market in the United States[4] - The company's market capitalization was $96 billion as of September 30, 2023[4] - Kinsale's YTD combined ratio was 767% as of September 30, 2023[4] - The company's YTD annualized operating return on equity was 321% as of September 30, 2023[4] - Kinsale aims to expand its 1% market share[4] Underwriting Strategy - Kinsale focuses on small-to-medium sized, hard-to-place risks in the excess and surplus lines market[27, 28] - The company emphasizes individual risk underwriting and tailored coverage[31, 36] - Kinsale uses a technology-enabled, low-cost approach to manage expenses[32] - The company has underwriters specializing in various casualty, professional lines, specialty casualty, transportation, and property divisions[21] Market Position and Growth - Kinsale's underwriting performance, measured by the net loss and loss adjustment expense ratio, is compared against the P&C industry and surplus lines sector[13] - The company is focused on leveraging data for pricing, risk segmentation, and automation[170]

Core Insights - Kinsale Capital Group, Inc. (KNSL) shares have increased by 17.4% over the past year, slightly underperforming the Finance sector's growth of 18.2% and the industry growth of 17.5%, but outperforming the Zacks S&P 500 composite return of 9.5% [1] - The company has a market capitalization of $10.74 billion, with an average trading volume of 0.2 million shares over the last three months [4] Growth Projections - The Zacks Consensus Estimate for Kinsale Capital's 2025 earnings per share indicates a year-over-year increase of 10%, with revenues projected at $1.75 billion, reflecting a 10.2% improvement [5] - Earnings have grown by 44.3% over the past five years, surpassing the industry average of 20.8%, with a long-term earnings growth rate expected at 15%, compared to the industry average of 6.8% [6] Earnings Performance - Kinsale Capital has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 11.07% [7] Financial Metrics - The return on equity (ROE) for Kinsale Capital stands at 26.37%, significantly higher than the industry average of 7.8%, indicating efficient use of shareholders' funds [10] - The return on invested capital (ROIC) is reported at 22.7%, compared to the industry's 5.9%, reflecting effective capital utilization [11] Analyst Sentiment - Mixed analyst sentiment is observed, with six out of eight analysts raising estimates for 2025, while six out of seven have lowered estimates for 2026 over the past 60 days [12] Valuation - Kinsale Capital shares are currently trading at a price-to-book value of 6.79X, which is higher than the industry average of 1.55X, indicating a premium valuation [13] Price Target - The average price target for Kinsale Capital, based on short-term estimates from eight analysts, is $474.63 per share, suggesting a potential upside of 2.9% from the last closing price [14] Market Positioning - Kinsale Capital is well-positioned in the excess and surplus (E&S) market, benefiting from high retention rates and improved underwriting results compared to the broader P&C industry [16] - The company targets small to medium-sized accounts, which allows for better pricing and reduced competition, with management estimating low double-digit rate increases across its business [17] Operational Efficiency - Kinsale Capital's proprietary technology platform enhances operational efficiency and expense ratios, contributing to improved margins and lower loss ratios [18] - The company has maintained a free cash flow conversion rate exceeding 85% in recent quarters, reflecting stable earnings [19] Dividend and Share Repurchase - Kinsale Capital has a strong dividend history, with a seven-year CAGR of 12.1% from 2017 to 2024, and has authorized a share repurchase program of up to $100 million [21]

Company Performance - Kinsale Capital Group, Inc. closed at $464.51, down 1.27% from the previous trading session, underperforming the S&P 500's loss of 0.84% [1] - The stock has increased by 1.5% over the past month, outperforming the Finance sector's loss of 0% and the S&P 500's gain of 1.44% [1] Earnings Expectations - Analysts expect Kinsale Capital Group, Inc. to report earnings of $4.36 per share, reflecting a year-over-year growth of 16.27% [2] - The consensus estimate for revenue is $432.2 million, indicating a 12.39% growth compared to the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates project earnings of $17.67 per share and revenue of $1.75 billion for the year, representing changes of +10.02% and +10.27% respectively compared to the previous year [3] - Recent changes in analyst estimates are important as they reflect short-term business trends, with positive revisions indicating analyst optimism [3] Valuation Metrics - Kinsale Capital Group, Inc. has a Forward P/E ratio of 26.62, which is a premium compared to the industry average Forward P/E of 11.7 [6] - The company has a PEG ratio of 1.77, while the Insurance - Property and Casualty industry has an average PEG ratio of 2.74 [6] Industry Context - The Insurance - Property and Casualty industry is part of the Finance sector and holds a Zacks Industry Rank of 54, placing it in the top 22% of over 250 industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]

Core Perspective - Berkshire Hathaway has delivered exceptional returns under Warren Buffett's leadership, but its ability to generate outsized returns is limited at its current valuation of over $1 trillion [1] Group 1: Berkshire Hathaway's Historical Performance - An investment of $10,000 in Berkshire Hathaway in 1985 would have grown to nearly $4.1 million today, highlighting the company's long-term success [2] Group 2: Potential Investment Opportunities - Markel Corporation is identified as a potential "early Berkshire Hathaway," with a similar business model and a focus on specialty insurance, which could lead to superior profitability [5][7] - Markel's intrinsic value has increased by nearly 130% over the past five years, while its stock price has risen by less than half that amount, suggesting it may be undervalued [9] - Howard Hughes Holdings, under the influence of Bill Ackman, is exploring a direction to build a conglomerate similar to Berkshire Hathaway, with plans to incorporate an insurance business [10][11] - Kinsale Capital Group focuses on specialty insurance for smaller clients and has demonstrated best-in-class profitability, with a combined ratio of 76.4% in 2024, indicating a nearly 24% underwriting profit [13][15] Group 3: Future Outlook - While it is unlikely that another company will replicate Berkshire Hathaway's extraordinary returns, the conglomerate-building method used by Berkshire can still yield significant returns over time [18][19]

Core Insights - Kinsale Capital Group, Inc. (KNSL) shares are trading at a premium compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 6.47X, significantly higher than the industry average of 1.52X and the Finance sector's 4.11X [1] - Kinsale Capital's stock has gained 14.3% over the past year, underperforming its industry growth of 21.8% and the Finance sector's growth of 17.1%, but outperforming the S&P 500 composite's return of 10.9% [2][3] - The company has a market capitalization of $10.23 billion, with a recent closing price of $438.99, which is below its 52-week high of $531.79 [4] Financial Performance - The Zacks Consensus Estimate for Kinsale Capital's 2025 earnings per share indicates a year-over-year increase of 10%, with revenues expected to reach $1.75 billion, reflecting a 10.2% improvement [8] - Earnings have grown 44.3% over the past five years, outperforming the industry average of 18.9%, with a long-term earnings growth rate expected at 15%, compared to the industry average of 6.9% [9] - Kinsale Capital has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 11.07% [10] Efficiency and Returns - Kinsale Capital's return on equity (ROE) stands at 26.3%, significantly higher than the industry's 7.7%, indicating effective utilization of shareholders' funds [11] - The return on invested capital (ROIC) is 22.7%, also outperforming the industry's 5.9%, reflecting the company's efficiency in generating income [12] Market Position and Strategy - Kinsale Capital has a strong presence in the excess and surplus (E&S) market in the U.S., benefiting from high retention rates and improved premiums due to significant market growth [13] - The company targets small to medium-sized accounts, achieving better pricing and lower competition, with management estimating low double-digit rate increases across its business [15] - Kinsale Capital aims for a combined ratio in the mid-80s range over the long term, indicating a focus on maintaining profitability [15] Technological Edge and Investment Income - The company leverages a proprietary technology platform to enhance operational efficiency and scalability, driving profitability [16] - Despite a low-interest rate environment, Kinsale Capital's investment income is expected to benefit from the investment of excess operating funds, with free cash flow conversion remaining above 85% [17] Dividend and Share Repurchase - Kinsale Capital has a strong dividend history, increasing dividends since 2017 at a seven-year CAGR of 12.1%, supported by operational excellence [19] - The board of directors has authorized a share repurchase program of up to $100 million of common stock, indicating confidence in the company's financial position [19]

Group 1 - Many insurance companies are lagging in adopting the latest technology for risk underwriting and cost reduction, while Kinsale Capital Group is effectively implementing these advancements [1] Group 2 - Kinsale Capital Group is positioned as a leader in the insurance sector by leveraging technology to enhance operational efficiency and improve risk assessment [1]

Kinsale Capital Group (KNSL) Q1 2025 Earnings Call April 25, 2025 03:56 PM ET Company Participants Michael Kehoe - Chairman & CEOBryan Petrucelli - Executive VP, CFO & TreasurerBrian Haney - President & COOAndrew Andersen - Equity Research Vice PresidentPablo Singzon - Executive DirectorJian (Bob) Huang - Executive Director Conference Call Participants None - AnalystBill Carcache - Equity Research AnalystMichael Phillips - Incoming Investment Banking AnalystMark Hughes - AnalystCasey Alexander - Senior Vice ...