Kinsale Capital Q3 adjusted EPS beats estimates despite competition hitting premiums

Overview

• US specialty insurer's Q3 gross written premiums fell 4.8% yr/yr amid property competition

• Adjusted EPS for Q3 beat analyst expectations

• Company repurchased $100 mln of shares in Q3

Outlook

• Company says market competition in property divisions remains heightened, impacting premium growth

• Kinsale expects disciplined underwriting and technology-enabled low costs to support long-term value creation

• Company anticipates strong investment income to continue supporting capital returns to shareholders

Result Drivers

• PROPERTY COMPETITION - Co said lower gross written premiums were mainly due to increased competition in property divisions, especially commercial property

• INVESTMENT INCOME - Higher net investment income driven by portfolio growth and strong operating cash flows

• LOSS RESERVE DEVELOPMENT - Underwriting income benefited from higher favorable development of loss reserves from prior accident years

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "hold"

• Wall Street's median 12-month price target for Kinsale Capital Group Inc is $350.00, about 7.1% below its October 21 closing price of $376.70

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Oct 20 - Insurance firm Chubb Q3 net income rises

• Oct 19 - RLI Q3 revenue beats estimates on underwriting performance

• Oct 19 - W.R. Berkley Q3 revenue falls more than expected

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)