Kinsale Capital Q3 adjusted EPS beats estimates despite competition hitting premiums

Kinsale Capital

Today 21:18

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: ID:nBw1ZNSYXa

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.)