Overview
Founded in 2009, Kinsale Capital Group (Pending:KNSL) provides excess and surplus insurance (E&S). (The part of the insurance market that provides casualty and property insurance for consumers with either unique risks or poor loss history.) KNSL is eligible throughout the U.S. and uses a network of independent insurance brokers to market its products. The company provides specialty, casualty and property lines across 14 underwriting divisions.
We wrote about Kinsale’s IPO here and its IPO quiet period expiration here, both buying opportunities.
Due to its proprietary technology platform, KNSL draws attention to its efficiency. In its SEC filings, KNSL maintained that its technology and systems allow the company to quickly and accurately collect and analyze data regarding hard-to-place risks for small businesses. This method ultimately controls their expenses and improves their response rates with processes and customers, enabling them to maintain control over claims and underwriting operations.
Competitive Landscape
Kinsale describes how it faces competition from underwriting agencies, standard insurance companies and specialty insurance companies as well as from diversified financial service companies. Top competitors are Alleghany Corporation, Argo Group International Holdings, James River Group Holdings, Markel Corporation, Navigators Group, Inc., RLI Corporation and W.R. Berkley Corporation.
Kinsale’s P/B of 3.3 is somewhat pricey and higher than the industry average of 1.4, along with Alleghany’s 1.2.
IPO & Early Highlights
At the time of its IPO in July 2016, KNSL was priced at $16 – the high end of its expected range of $14 to $16. On its first day of trading, the stock opened at $18.30, and it is currently trading at $31.74 (market close 1.6.2017).
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In sum, Kinsale delivered a first day return of 14.7% and 78.9% in the after-mkt (1.6.2017).
