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Kinsale Capital Group (KNSL)
:KNSL
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Kinsale Capital Group
(NYSE:KNSL)
80Outperform
Positive Factors
Competitive Advantage
The company's in house proprietary tech capabilities are a unique competitive advantage.
Earnings Growth
Despite the significant top-line deceleration over the past five quarters, KNSL has produced meaningful EPS beats versus consensus expectations in every quarter, which speaks to the strength of KNSL’s operating model.
Long-term Growth Prospects
A compelling 10-20% long-term growth & EPS outlook profile which is nearly 2x P&C peers.
Negative Factors
Premium Growth
Lower premium growth forecasts have been updated, indicating reduced growth prospects for Kinsale Capital Group.
Property Pricing Dynamics
The negative property pricing dynamic is expected to remain a drag on growth.
Top-line Growth
Kinsale’s top-line growth has slowed for the fifth consecutive quarter, falling to just 8% in the first quarter, or nearly 5% behind consensus.
Kinsale Capital Group (KNSL) vs. S&P 500 (SPY)
Market Cap
$10.23B
Dividend Yield0.14%
Average Volume (3M)214.45K
Price to Earnings (P/E)25.3
Beta (1Y)0.42
Revenue Growth23.14%
EPS Growth14.86%
CountryUS
Employees660
SectorFinancial
Sector Strength85
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)3.71
Shares Outstanding23,311,436
10 Day Avg. Volume156,362
30 Day Avg. Volume214,453
Financial Highlights & Ratios
PEG Ratio-10.82
Price to Book (P/B)6.64
Price to Sales (P/S)0.00
P/FCF Ratio10.99
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.69
Enterprise Value/Gross Profit6.38
Enterprise Value/Ebitda12.00
Forecast
1Y Price Target
$451.00Price Target Upside-1.86% Downside
Rating ConsensusHold
Number of Analyst Covering8
Kinsale Capital Group Business Overview & Revenue Model
Company DescriptionKinsale Capital Group, Inc., a specialty insurance company, provides property and casualty insurance products in the United States. The company's commercial lines offerings include construction, small business, excess and general casualty, commercial property, allied health, life sciences, energy, environmental, health care, inland marine, public entity, and commercial insurance, as well as product, professional, and management liability insurance. It markets and sells its insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands primarily through a network of independent insurance brokers. The company was founded in 2009 and is headquartered in Richmond, Virginia.
How the Company Makes MoneyKinsale Capital Group makes money by underwriting and selling specialty insurance products in the excess and surplus lines market. The company generates revenue primarily from the premiums collected on the insurance policies it underwrites. Additionally, Kinsale benefits from investment income generated from the reserves and capital it holds. The company's profitability is largely influenced by its underwriting performance, which involves assessing and pricing risk accurately, and its investment strategy. Key revenue streams include premiums from property, casualty, and specialty insurance lines. Kinsale's strategic focus on niche markets with higher risk profiles allows it to charge higher premiums, contributing to its earnings. Significant partnerships with specialized brokers and agents also play a role in distributing its products and expanding its market reach.
Kinsale Capital Group Financial Statement Overview
Summary
Kinsale Capital Group exhibits strong financial performance with impressive revenue growth and profitability. The company maintains a robust gross profit margin, a solid balance sheet with zero debt reliance, and excellent cash flow generation. Despite the lack of reported EBIT and EBITDA margins for 2024, the overall financial health is impressive.Income Statement
Kinsale Capital Group displayed an impressive revenue growth rate of approximately 29.61% from 2023 to 2024. The company maintains a robust gross profit margin at 100%, given its business model in the insurance industry. Net profit margin improved significantly from 25.17% in 2023 to 26.13% in 2024, reflecting strong profitability. However, EBIT and EBITDA margins are not applicable for 2024, which may indicate a strategic change or reclassification of expenses.92
Very Positive
Balance Sheet
The balance sheet is strong, with a debt-to-equity ratio of 0, highlighting no reliance on debt financing. Return on equity increased from 28.36% in 2023 to 27.96% in 2024, indicating efficient use of equity despite a slight decline. The equity ratio stands robust at 30.36% in 2024, suggesting a stable financial position with a healthy proportion of equity financing.85
Very Positive
Cash Flow
Kinsale Capital Group's cash flow position is excellent, with a substantial free cash flow growth rate of 11.61% from 2023 to 2024. The operating cash flow to net income ratio is strong at 2.35, underscoring effective cash generation from operations. Additionally, the free cash flow to net income ratio of 2.30 highlights solid cash profitability.90
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.64B | 1.59B | 1.22B | 819.20M | 639.78M | 459.89M | Gross Profit |
| 1.64B | 1.59B | 1.22B | 819.20M | 639.78M | 459.89M | EBIT |
| 518.87M | 524.33M | 390.75M | 199.85M | 188.59M | 99.78M | EBITDA |
| 492.71M | 524.85M | 397.59M | 202.57M | 192.10M | 102.16M | Net Income Common Stockholders |
| 405.13M | 414.84M | 308.09M | 159.11M | 152.66M | 88.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.86B | 3.65B | 126.69M | 1.96B | 1.51B | 1.16B | Total Assets |
| 5.21B | 4.89B | 3.77B | 2.75B | 2.03B | 1.55B | Total Debt |
| 0.00 | 184.12M | 183.85M | 195.75M | 42.70M | 42.57M | Net Debt |
| 42.16M | 70.91M | 57.15M | 39.47M | -78.34M | -34.52M | Total Liabilities |
| 3.63B | 3.40B | 2.69B | 2.00B | 82.06M | 970.66M | Stockholders Equity |
| 1.58B | 1.48B | 1.09B | 745.45M | 699.34M | 576.24M |
| Cash Flow | Free Cash Flow | ||||
| 963.15M | 952.36M | 853.23M | 550.91M | 401.12M | 247.10M | Operating Cash Flow |
| 995.72M | 976.30M | 859.84M | 557.82M | 407.04M | 279.97M | Investing Cash Flow |
| -948.57M | -960.13M | -860.89M | -708.57M | -351.95M | -379.43M | Financing Cash Flow |
| -41.26M | -29.66M | -28.52M | 185.99M | -11.14M | 76.14M |
Kinsale Capital Group Technical Analysis
Positive
459.57
Price Trends
462.73
Negative
454.81
Positive
462.69
Negative
Market Momentum
-4.01
Negative
51.01
Neutral
50.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNSL, the sentiment is Positive. The current price of 459.57 is above the 20-day moving average (MA) of 455.76, below the 50-day MA of 462.73, and below the 200-day MA of 462.69, indicating a neutral trend. The MACD of -4.01 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNSL.
Kinsale Capital Group Risk Analysis
Kinsale Capital Group disclosed 32 risk factors in its most recent earnings report. Kinsale Capital Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kinsale Capital Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $10.23B | 25.28 | 29.42% | 0.14% | 23.14% | 14.86% | |
79 Outperform | $5.88B | 13.63 | 15.74% | 2.14% | 3.09% | 168.29% | |
75 Outperform | $12.94B | 14.57 | 8.98% | 3.72% | 6.34% | -28.19% | |
73 Outperform | $6.76B | 24.25 | 17.99% | 0.79% | 9.18% | -16.06% | |
73 Outperform | $5.26B | 23.60 | 7.48% | 1.69% | 13.37% | -35.09% | |
66 Neutral | $10.38B | 13.05 | 18.51% | 2.55% | 3.76% | -9.12% | |
64 Neutral | $12.74B | 9.83 | 7.63% | 17000.35% | 12.34% | -5.32% |
* Financial Sector Average
Performance Comparison
KNSL
Kinsale Capital Group
459.57
69.20
17.73%
AFG
American Financial Group
124.19
-0.55
-0.44%
CNA
CNA Financial
48.73
6.48
15.34%
RLI
RLI
74.83
2.64
3.66%
SIGI
Selective Insurance Group
88.63
-7.51
-7.81%
THG
Hanover Insurance
165.93
31.64
23.56%
Kinsale Capital Group Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -8.45%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
Kinsale Capital Group demonstrated strong profitability and investment income growth despite challenges in their Commercial Property division and the impact of wildfires. The company maintained efficient cost management and saw positive trends in their casualty and professional lines. However, increased competition and a decline in new business submissions present ongoing challenges.Q1-2025 Updates
Positive Updates
Operating Earnings and Premium Growth
Kinsale’s operating earnings per share increased by 6% and gross written premium grew by 8% over the first quarter of 2024.
Strong Profitability Metrics
The company posted a combined ratio of 82% and an annualized operating return on equity of 22.5%.
Investment Income Growth
Net investment income increased by 33.1% compared to the previous year, driven by growth in the investment portfolio.
Efficient Cost Management
The expense ratio was maintained at 20%, showing strong cost management and efficiency.
Positive Indicators in Casualty and Professional Lines
Casualty lines, particularly commercial auto and general casualty, showed overall growth, and professional lines saw growth in allied health and excess professional areas.
Negative Updates
Commercial Property Division Challenges
The Commercial Property division experienced an 18% decrease, with intense competition and rate declines from the peak by about 20%.
Impact of California Wildfires
The Palisades wildfire resulted in an estimated $41 million gross and $22 million net of reinsurance loss.
Increased Competition in the Large Property Account Space
There is a noted increase in competition from standard companies and MGAs, affecting the growth prospects in large property accounts.
Decline in New Business Submissions
New business submission growth was 11% for the quarter, down from 17% in the fourth quarter.
Company Guidance
During the Kinsale Capital Group's first quarter 2025 earnings call, management provided guidance reflecting a robust financial performance despite challenges. Operating earnings per share increased by 6%, with a gross written premium growth of 8% compared to the first quarter of 2024. The company reported a combined ratio of 82% and an annualized operating return on equity of 22.5%. Kinsale's disciplined underwriting and conservative risk management approach were credited for maintaining profitability, even amidst a significant $22 million net loss from the Palisades wildfire. The company experienced an 18% decrease in its largest division, Commercial Property, due to increased competition and rate declines, impacting overall growth expectations of 10% to 20%. However, excluding Commercial Property, direct written premium rose by 16.7%. Kinsale's personal lines and small commercial property segments continued to expand at double-digit rates. Despite a 1% overall rate decline in the quarter, casualty rates increased modestly, particularly in construction and general casualty, while maintaining optimism for future growth driven by the company's low-cost model and market position.Kinsale Capital Group Corporate Events
Business Operations and Strategy
Kinsale Capital Group Hosts Investor Day Event
Neutral
Jan 16, 2025
On January 16, 2025, Kinsale Capital Group will host an Investor Day in Richmond, Virginia, to present its financial and strategic outlook. The event is seen as an opportunity for stakeholders to gain insights into the company’s performance and future strategies, potentially impacting its market positioning and investor relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.