Kinsale Capital (US:KNSL) The Motley Foolยท2025-07-25 17:32Core Viewpoint - Kinsale Capital Group reported strong second-quarter earnings that exceeded analysts' expectations, but its share price has remained flat due to concerns over increased competition in the commercial property insurance market [2][3]. Group 1: Financial Performance - Kinsale's second-quarter earnings led to a 7% increase in share price initially, but it has since returned to flat levels [2]. - The company increased gross written premiums (GWPs) by 5% and grew earnings per share by 45% [6]. - Kinsale recorded a combined ratio of 76%, indicating profitability, and delivered a return on equity of 33% [6]. Group 2: Market Challenges - The largest insurance division, commercial property, experienced a 17% decline in GWPs compared to the previous year, attributed to heightened competition and lower pricing [3]. - Despite the decline in commercial property, the growth rates for the rest of Kinsale's business increased by 14%, showcasing the company's diversification strategy [5]. Group 3: Management Insights - Management acknowledged that GWP growth fell below the target of annualized increases between 10% and 20%, attributing this to standard cyclicality in the excess-and-surplus insurance industry [7]. - CEO Michael Kehoe emphasized that the company's loss reserves are conservatively stated, which, along with strong underwriting capabilities, positions Kinsale as a promising long-term investment [7].