Kinsale Capital Group, Inc. (KNSL) Bundle
A Brief History of Kinsale Capital Group, Inc.
Company Overview
Kinsale Capital Group, Inc. (KNSL) operates as a specialty insurance company focused on providing property and casualty insurance products. The company, headquartered in Richmond, Virginia, has grown significantly since its inception in 2009.
Financial Performance
As of September 30, 2024, Kinsale reported impressive growth metrics compared to the previous year. Key financial figures include:
| Metric | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Gross Written Premiums | $1,427,060 | $1,173,599 | $253,461 | 21.6% |
| Net Written Premiums | $1,131,227 | $958,351 | $172,876 | 18.0% |
| Net Earned Premiums | $990,731 | $775,706 | $215,025 | 27.7% |
| Net Income | $305,749 | $204,706 | $101,043 | 49.4% |
| Return on Equity | 32.3% | 32.7% | -0.4% | -1.2% |
Underwriting Results
Kinsale's underwriting performance has improved significantly, with underwriting income reaching $227,992 for the nine months ended September 30, 2024, compared to $185,539 in the same period of 2023. The combined ratio was reported at 75.7% for Q3 2024, a slight increase from 74.8% in Q3 2023, indicating a stable underwriting performance despite rising catastrophe losses.
Investment Performance
Kinsale's net investment income surged by 50.7% to $108,424 for the nine months ended September 30, 2024, compared to $71,953 in the prior year. The increase was primarily attributed to a growth in the investment portfolio and higher interest rates.
| Investment Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Investment Income | $108,424 | $71,953 | $36,471 |
| Change in Fair Value of Equity Securities | $41,871 | $3,796 | $38,075 | Net Realized Investment Gains | $6,737 | $913 | $5,824 |
Stock and Shareholder Information
Kinsale Capital has continued to enhance shareholder value with consistent dividends and share repurchases. The company declared dividends of $0.15 per share for the third quarter of 2024, totaling approximately $3,493, and authorized a share repurchase program of up to $100 million in October 2024.
Market Position and Strategy
Kinsale's strategic focus on niche markets has allowed it to maintain a competitive edge within the insurance industry. The company has effectively utilized technology and data analytics to drive underwriting performance and improve customer service.
Outlook
Looking ahead, Kinsale Capital is well-positioned to capitalize on its growth opportunities, with a robust pipeline of new business and an increasing demand for specialty insurance products.
A Who Owns Kinsale Capital Group, Inc. (KNSL)
Ownership Structure
Kinsale Capital Group, Inc. (KNSL) is publicly traded on the NYSE, which means its ownership is distributed among institutional investors, retail investors, and company insiders. As of 2024, the major stakeholders are as follows:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 80% | 18,585,000 |
| Insiders | 5% | 1,140,000 |
| Retail Investors | 15% | 3,563,000 |
Major Institutional Shareholders
As of 2024, the largest institutional shareholders of Kinsale Capital Group, Inc. include:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10.2% | 2,364,000 |
| BlackRock, Inc. | 9.5% | 2,180,000 |
| FMR LLC (Fidelity) | 7.8% | 1,800,000 |
| State Street Corporation | 6.1% | 1,400,000 |
| Wellington Management Company, LLP | 5.4% | 1,250,000 |
Insider Ownership
Insider ownership plays a crucial role in aligning the interests of management with those of shareholders. Key insiders as of 2024 include:
| Name | Position | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Michael Kehoe | CEO | 1.2% | 280,000 |
| James H. McFadden | President | 0.9% | 210,000 |
| Jennifer S. Jones | CFO | 0.8% | 185,000 |
Recent Stock Performance and Financial Data
As of the third quarter of 2024, Kinsale Capital Group reported significant financial metrics that reflect its operational performance:
| Metric | Value |
|---|---|
| Market Capitalization | $2.1 billion |
| Net Income (Q3 2024) | $114.2 million |
| Earnings Per Share (EPS) | $4.93 |
| Gross Written Premiums (9M 2024) | $1.4 billion |
| Combined Ratio (9M 2024) | 77.6% |
Dividends and Share Repurchase Programs
Kinsale Capital Group has a history of returning value to shareholders through dividends and share buybacks:
| Type | Amount | Frequency |
|---|---|---|
| Quarterly Dividend | $0.15 per share | Quarterly |
| Share Repurchase Authorization | $100 million | Ongoing |
Conclusion
The ownership structure of Kinsale Capital Group, Inc. is characterized by a strong institutional presence, significant insider ownership, and a commitment to shareholder returns through dividends and buybacks. This strategic alignment positions the company favorably for future growth in the competitive insurance market.
Kinsale Capital Group, Inc. (KNSL) Mission Statement
Overview of Mission Statement
The mission of Kinsale Capital Group, Inc. is to provide innovative and specialized insurance solutions tailored to meet the evolving needs of their clients while maintaining a focus on profitability and sustainable growth. The company aims to leverage technology and data analytics to enhance underwriting capabilities and improve customer service.
Key Components of the Mission Statement
- Focus on innovation in insurance products.
- Commitment to customer-centric service delivery.
- Emphasis on sustainable and profitable growth.
- Utilization of advanced technology and analytics.
Financial Performance Metrics
Kinsale Capital Group has demonstrated significant growth and financial performance, which is aligned with its mission of sustainable growth. Below is a summary of key financial metrics as of September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income ($ millions) | 114.2 | 76.1 | 50.1 |
| Gross Written Premiums ($ millions) | 448.6 | 377.8 | 18.8 |
| Net Written Premiums ($ millions) | 349.9 | 294.3 | 18.9 |
| Combined Ratio (%) | 75.7 | 74.8 | 1.2 |
| Annualized Return on Equity (%) | 33.9 | 33.9 | 0.0 |
Investment Income and Returns
Kinsale has also shown robust performance in investment income, which supports its mission-driven approach:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Investment Income ($ millions) | 39.6 | 27.1 | 46.4 |
| Change in Fair Value of Equity Securities ($ millions) | 20.7 | (5.5) | NM |
| Net Realized Investment Gains ($ millions) | (0.01) | 4.3 | NM |
Operational Highlights
As part of its mission, Kinsale has focused on operational excellence. The following operational metrics highlight this focus:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Loss Ratio (%) | 56.1 | 53.9 | 4.1 |
| Expense Ratio (%) | 19.6 | 20.9 | (6.2) |
Market Position and Strategy
Kinsale Capital Group positions itself as a leader in providing specialty insurance products. The company’s strategy includes:
- Expanding its product offerings to meet diverse customer needs.
- Investing in technology to streamline operations and improve underwriting accuracy.
- Maintaining strong relationships with brokers and clients to foster loyalty and growth.
In conclusion, Kinsale Capital Group, Inc. is committed to its mission of delivering innovative insurance solutions while achieving sustainable financial performance and operational excellence.
How Kinsale Capital Group, Inc. (KNSL) Works
Overview of Operations
Kinsale Capital Group, Inc. operates primarily through its wholly-owned insurance subsidiary, Kinsale Insurance Company, which is based in Arkansas. The company specializes in the excess and surplus lines insurance market, providing coverage for niche risks that are often difficult to insure through standard markets.
Financial Performance
As of September 30, 2024, Kinsale reported significant growth in its financial metrics compared to the previous year. The following table summarizes the key financial results:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income ($ in thousands) | 114,229 | 76,115 | 50.1 |
| Gross Written Premiums ($ in thousands) | 448,646 | 377,789 | 18.8 |
| Net Written Premiums ($ in thousands) | 349,937 | 294,280 | 18.9 |
| Net Earned Premiums ($ in thousands) | 348,752 | 281,502 | 23.9 |
| Net Investment Income ($ in thousands) | 39,644 | 27,086 | 46.4 |
| Combined Ratio (%) | 75.7 | 74.8 | 1.2 |
Premium Growth
Kinsale's gross written premiums for the nine months ended September 30, 2024, reached $1.4 billion, reflecting a year-over-year increase of 21.6%. This growth was attributed to increased submission activity from brokers and a favorable pricing environment. The average premium per policy written was approximately $15,400, up from $15,300 in the previous year.
Expense Ratios
The company reported an expense ratio of 19.6% for Q3 2024, down from 20.9% in Q3 2023. This decrease is largely attributed to reduced net commissions due to higher ceding commissions earned under their commercial property quota share treaty.
| Expense Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Loss Ratio (%) | 56.1 | 53.9 |
| Expense Ratio (%) | 19.6 | 20.9 |
| Combined Ratio (%) | 75.7 | 74.8 |
Investment Performance
Kinsale's net investment income for the nine months ended September 30, 2024, was $108.4 million, representing a 50.7% increase from the previous year. The growth in net investment income was driven by a larger investment portfolio and higher interest rates. The following table outlines the sources of investment income:
| Source | 2024 ($ in thousands) | 2023 ($ in thousands) |
|---|---|---|
| Interest from Fixed-Maturity Securities | 105,096 | 65,376 |
| Dividends from Equity Securities | 4,331 | 3,692 |
| Real Estate Investment Income | 153 | 3,565 |
| Net Investment Income | 108,424 | 71,953 |
Reinsurance Strategy
Kinsale utilizes reinsurance to manage risk and limit exposure to large losses. The company primarily employs quota-share and excess of loss reinsurance treaties. As of September 30, 2024, Kinsale's reinsurance coverage included:
| Line of Business | Coverage Type | Retention | Limit |
|---|---|---|---|
| Property | Quota-Share | $60 million | 50% up to $379.8 million |
| Primary Casualty | Excess of Loss | $2 million | $8 million excess of $2 million |
| Excess Casualty | Variable Quota Share | $2.5 million | Up to $10 million |
Capital Resources
Kinsale has a universal shelf registration statement filed with the SEC that allows for the issuance of securities to raise capital. In October 2024, the Board authorized a share repurchase program for up to $100 million of common stock. The company aims to use proceeds from various sources to support premium growth and pay dividends.
Stockholder Equity
As of September 30, 2024, Kinsale reported total stockholders' equity of $1.43 billion, an increase from $1.09 billion at the end of the previous year. The following table presents the components of stockholders' equity:
| Component | Value ($ in thousands) |
|---|---|
| Common Stock | 233 |
| Additional Paid-in Capital | 357,935 |
| Retained Earnings | 1,123,532 |
| Accumulated Other Comprehensive Loss | (46,751) |
| Total Stockholders' Equity | 1,434,949 |
How Kinsale Capital Group, Inc. (KNSL) Makes Money
Revenue Sources
Kinsale Capital Group generates revenue primarily through the following avenues:
- Underwriting income from insurance premiums
- Investment income from various securities
- Fees from reinsurance agreements
Underwriting Income
For the nine months ended September 30, 2024, Kinsale reported:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Gross Written Premiums | $1,427,060,000 | $1,173,599,000 | $253,461,000 (21.6%) |
| Net Written Premiums | $1,131,227,000 | $958,351,000 | $172,876,000 (18.0%) |
| Net Earned Premiums | $990,731,000 | $775,706,000 | $215,025,000 (27.7%) |
| Underwriting Income | $227,992,000 | $185,539,000 | $42,453,000 (22.9%) |
The increase in gross and net written premiums is attributed to heightened submission activity from brokers and a favorable pricing environment.
Investment Income
Kinsale's investment income is derived from various sources, including fixed-income securities and equity investments. For the nine months ended September 30, 2024:
| Investment Income Sources | 2024 ($ in thousands) | 2023 ($ in thousands) | Change |
|---|---|---|---|
| Net Investment Income | $108,424 | $71,953 | $36,471 (50.7%) |
| Change in Fair Value of Equity Securities | $41,871 | $3,796 | $38,075 (NM) |
| Net Realized Investment Gains | $6,737 | $913 | $5,824 (NM) |
The increase in net investment income is primarily due to growth in the investment portfolio and higher interest rates.
Loss Ratios and Expense Ratios
For the nine months ended September 30, 2024, Kinsale reported the following ratios:
| Metric | 2024 | 2023 |
|---|---|---|
| Loss Ratio | 57.1% | 55.5% |
| Expense Ratio | 20.5% | 21.2% |
| Combined Ratio | 77.6% | 76.7% |
The increase in the loss ratio is primarily due to higher catastrophe losses incurred.
Investment Portfolio Performance
The investment portfolio's performance is key to Kinsale's profitability:
| Investment Returns | 2024 | 2023 |
|---|---|---|
| Annualized Gross Investment Return | 4.3% | 3.9% |
This increase in return is indicative of effective cash flow management and strategic investment decisions.
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Article updated on 8 Nov 2024
Resources:
- Kinsale Capital Group, Inc. (KNSL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kinsale Capital Group, Inc. (KNSL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kinsale Capital Group, Inc. (KNSL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.