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Kinsale Capital Q3 adjusted EPS beats estimates despite competition hitting premiums

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Gross Written Premiums

$462.87 mln

Q3 Adjusted EPS

Beat

$5.70

$5.13 (12 Analysts)

Q3 EPS

$4.36

Q3 Combined Ratio

75.40%

Q3 Expense Ratio

22.00%

Q3 ROE

19.90%


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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