Kinsale Capital Group has been treading water for the past six months, recording a small loss of 1.2% while holding steady at $465.83.
Is now the time to buy KNSL? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.
Why Are We Positive On KNSL?
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
1. Net Premiums Earned Skyrockets, Fueling Growth Opportunities
Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.
Kinsale Capital Group’s net premiums earned has grown at a 28.4% annualized rate over the last two years, much better than the broader insurance industry.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Kinsale Capital Group’s EPS grew at an astounding 45.1% compounded annual growth rate over the last five years, higher than its 38.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Growing BVPS Reflects Strong Asset Base
In the insurance industry, book value per share (BVPS) provides a clear picture of shareholder value, as it represents the total equity backing a company’s insurance operations and growth initiatives.
Kinsale Capital Group’s BVPS increased by 30.4% annually over the last five years, and growth has recently accelerated as BVPS grew at an incredible 38.8% annual clip over the past two years (from $35.23 to $67.92 per share).
Final Judgment
These are just a few reasons why Kinsale Capital Group is a cream-of-the-crop insurance company, but at $465.83 per share (or 5.8× forward P/B), is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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