Kinsale Capital Group Stock

Kinsale Capital Group, Inc. operates as a property and casualty insurance company.

The company focuses exclusively on the excess and surplus lines (E&S) market in the U.S., where it can use its underwriting expertise to write coverages for hard-to-place, small business risks and personal lines risks. The company markets and sells these insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands primarily through a network of independent insurance brokers.

Products

The company writes a broad array of insurance coverages for risks that are unusual or hard to place in the standard insurance market. Typical E&S risks include newly established companies or industries, high-risk operations, insureds in litigious venues or companies with poor loss histories. The company's underwriters specialize in individual lines of business which allows them to develop in-depth knowledge and experience of the risks they underwrite. The company's core client focus is small- to medium-sized accounts, which are subject to less competition and have better pricing.

The company's commercial lines offerings include commercial property, excess casualty, small business casualty, construction, general casualty, allied health, products liability, small business property, life sciences, entertainment, energy, professional liability, management liability, environmental, excess professional, health care, public entity, commercial auto, inland marine, aviation, ocean marine, product recall, and railroad. The company also writes homeowners' coverage in the personal lines market, which in aggregate represented 2.5% of its gross written premiums in 2023.

The company has one reportable segment, the Excess and Surplus Lines Insurance segment, which primarily offers commercial excess and surplus lines liability and property insurance products through its underwriting divisions.

Commercial Property underwrites first-party coverage on manufacturing facilities, government and municipal buildings, professional buildings, offices and general commercial properties, vacant properties, as well as entertainment and retail facilities.

Excess Casualty underwrites excess liability over risks that would fit within the general casualty, construction, products liability and small business casualty divisions. Coverage is written over the company's primary liability policies as well as those of other insurers. This division also writes excess liability over primary commercial auto liability policies written by other carriers.

Small Business Casualty underwrites commercial general liability on smaller risks, generally businesses with revenues not exceeding $2.5 million, with an emphasis on artisan contractors and premises related exposures.

Construction underwrites commercial general liability coverage on contractors focusing on new residential construction, residential remodeling and renovation and commercial construction.

General Casualty underwrites general liability and liquor liability on hospitality, habitational and retail risks, among others, with similar premises liability loss exposures.

Allied Health underwrites commercial general liability, professional liability and excess liability on allied health and social service risks including assisted living facilities, home health care agencies and outpatient medical facilities.

Products Liability underwrites commercial general liability on manufacturers, distributors and importers of a wide array of consumer, commercial and industrial products.

Small Business Property underwrites Commercial Property coverage for smaller properties, generally with total insured values not exceeding $3.5 million, including banks, daycare centers, strip malls, and greenhouses, among others.

Life Sciences underwrites general liability, products liability and professional liability coverage for manufacturers, distributors and developers of dietary supplements, medical devices, pharmaceuticals, biologics, health and beauty products, durable medical equipment and clinical trials.

Entertainment underwrites commercial general liability for small-to-medium sized entertainment classes, including such classes as bowling alleys, campgrounds, escape rooms, fitness centers, museums and paintball facilities, among others.

Energy underwrites commercial general liability, pollution liability, professional liability and excess liability on enterprises engaged in the business of energy production or distribution or mining including drillers, lease operators, contractors, product manufacturers and alternative energy.

Professional Liability underwrites small-to-medium sized non-medical professional liability risks. The classes of risks include accountants, architects and engineers, financial planners, insurance agents, lawyers, realtors and certain other professions.

Management Liability underwrites directors and officers liability, employment practices liability and fiduciary liability coverage on a variety of commercial and government risks.

Environmental underwrites commercial general liability, pollution liability and professional liability on a wide range of commercial risks where environmental exposures exist that are operational in nature or related to the premises.

Excess Professional underwrites excess coverage over an array of insurance products in Allied Health, Management Liability, Health Care and Professional Liability.

Health Care underwrites medical professional liability for physicians, surgeons, dentists, chiropractors and podiatrists. Policies cover both individuals and small practice groups.

Public Entity underwrites law enforcement professional liability and school board liability.

Commercial Auto underwrites garage liability and excess auto coverages.

Inland Marine underwrites a variety of inland marine coverages including builders risk, contractors' equipment, transportation risks and mobile equipment.

Aviation underwrites general liability coverage for small-to-medium sized aviation-related businesses.

Ocean Marine underwrites marine cargo coverage for small-to-medium sized risks that transport goods and products in domestic inland waterways and certain U.S. coastal waters.

Product Recall underwrites recall expense and liability coverage for life sciences and general products sector consumable, commercial and consumer goods.

Railroad underwrites excess liability for Class III short line railroads, railroad support activities and contractors and other miscellaneous railroad-related risks.

Personal Insurance writes homeowners' coverage on manufactured homes with catastrophe exposure due to coastal location.

High Value Homeowners underwrites first party homeowners' coverage on homes valued above $1.0 million on a primary and excess basis.

Strategy

The key elements of the company's strategy are to expand its presence in the E&S market; maintain a contrarian risk appetite; and leverage investment in technology to drive efficiencies.

Marketing and Distribution

The company markets its products through a broad group of independent insurance brokers that can produce reasonable volumes of business for it. The company also sells policies through its wholly-owned broker, Aspera. In 2023, Aspera distributed 1.9% of Kinsale's premiums, primarily manufactured housing risks within the company's personal insurance division.

The company selects its brokers based on management's review of the experience, knowledge and business plan of each broker. For the year ended December 31, 2023, the company's largest brokers were RSG Specialty, LLC, which produced 20.2%, of its gross written premiums, AmWINS Brokerage, which produced 18.3% of its gross written premiums and CRC Commercial Solutions, which produced 11.4%, of its gross written premiums. The company sells policies in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands.

Competition

The company's primary competitors in the E&S sector include American International Group, Inc., Berkshire Hathaway Inc., Fairfax Financial Holdings Limited, James River Group Holdings, Ltd., Lloyds of London, Markel Group Inc., RLI Corp. and W. R. Berkley Corporation.

History

Kinsale Capital Group, Inc., a Delaware domiciled insurance holding company, was founded in 2009.