Kinsale Capital Group, Inc. · NYSE:KNSL
Kinsale Capital — Investor Presentation (February 2025)
26 slides from Kinsale Capital's investor presentation, February 2025
Slide 1: February 2025
KINSALE mmm CAPITAL GROUP February 2025
Slide 2: Disclaimer
Disclaimer This presentation contains or incorporates by reference forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that does not directly relate to historical or current facts. These statements m
Slide 3: Introduction to Kinsale
INTRODUCTION TO KINSALE 3
Slide 4: Overview
Overview Kinsale Capital Group, Inc., founded in 2009, is a specialty insurance company focused exclusively on the excess and surplus lines market in the United States. Disciplined Maintain Leverage our Employ a Well-positioned underwriting absolute control proprietary quantitative to generate focus
Slide 5: Highly-Experienced Management Team
Highly-Experienced Management Team Michael Kehoe Brian Haney Bryan Petrucelli Diane Schnupp Mark Beachy Stuart Winston Salmaan Allibhai Founder, Chairman and President and Chief Executive Vice Executive Vice Executive Vice Senior Vice President, Chief Actuary Chief Executive Officer Operating Office
Slide 6: Select Market Information
Select Market Information As of December 31, 2024 Ticker KNSL Exchange New York Stock Exchange Stock Price $465.13 Market Capitalization $10.8 billion Book Value $63.75 per share Debt to Total Capitalization Ratio 11.1% Full-time Employees 660 6
Slide 7: Kinsale's Stock Performance vs. the S&P 500
Kinsale’s Stock Performance vs. the S&P 500 Annual Percentage Change (1) Year Kinsale (2) S&P 500 2016 113.5% 4.2% 2017 33.2 21.8 2018 24.1 (4.4) 2019 83.7 31.5 2020 97.3 18.4 2021 19.2 28.7 2022 10.2 (18.1) 2023 28.3 26.3 2024 39.1 25.0 Compounded Annual Gain ─ 2016-2024 49.7% 14.6% Overall Gain ─
Slide 8: Our Approach
Our Approach Exclusive focus on the small-account E&S market Disciplined underwriting expertise across a broad spectrum of hard-to-place risks; no delegated underwriting authority Technology is a core competency, driving best-in-class expense ratio Use analytics to drive profitability and op
Slide 9: Kinsale is the only publicly-traded, pure-play E&S investment opportunity
Kinsale is the only publicly-traded, pure-play E&S investment opportunity Leading public E&S players Our differentiating factors 2023 Surplus lines DWP as % of total direct and assumed written premiums¹ No delegated underwriting 100% GLBI 76% Low-cost business model JRVR 72% RLI 44% Contrarian under
Slide 10: E&S Market
E&S Market The E&S market has seen significant growth and generated better underwriting results than the broader P&C industry U.S. surplus lines direct written premiums ($bn) $115.6 $98.5 $82.7 $66.1 $49.9 $56.3 $38.7 $40.2 $41.3 $42.4 $44.9 $32.8 $33.0 $33.3 $36.6 $34.4 $33.0 $31.7 $31.1 $34.8 $37.
Slide 11: Dislocation in the E&S market creates additional opportunities
Dislocation in the E&S market creates additional opportunities 2023 E&S market share by direct premiums written (DPW)1 E&S Market Share of P&C DPW 1 Rank Company DPW ($mm) Market Share 14% Lloyd’s 19,947 17.2% 1 Berkshire Hathaway 8,367 7.2% 12% 2 AIG 4,955 4.3% 3 Fairfax 4,048 3.5% 10% 4 Markel 3,6
Slide 12: Our underwriting expertise across a broad spectrum of hard-to-place risks
Our underwriting expertise across a broad spectrum of hard-to-place risks Personal 2 Broad appetite to underwrite a diverse set of risks across the 2.6% E&S market, including some difficult risks where we believe Other Commercial 1 Commercial Property 14.9% pricing may be attractive 24.4% Highly
Slide 13: Product Portfolio
Product Portfolio We target classes of business where our underwriters have extensive experience allowing us to compete effectively and earn attractive returns Gross written premiums by division Year Ended December 31, 2022-2024 (000's) 2024 2023 2022 CAGR Commercial: Commercial Property $ 456,170 $
Slide 14: Technology is a core competency
Technology is a core competency Key highlights Proprietary platform design reflects the best practices our management team has learned from extensive prior experience Integrated digital platform enables scale, reliability and performance throughout the organization, promoting clear communication
Slide 15: Our combined ratio is one of the lowest amongst our specialty insurer peers
Our combined ratio is one of the lowest amongst our specialty insurer peers while achieving leading growth among peers 2021-2023 38.4% 0.2% 22.2% 16.2% 11.2% 8.6% (3.5%) (17.0%) 1.8% NPW CAGR 1 2 Loss ratio Expense ratio 108.2% 2021 – 2023 100.2% Average peer 97.8% combined ratio: 89.5% 93.5% 24.4%
Slide 16: We believe Kinsale is well-positioned for continued profitable growth
We believe Kinsale is well-positioned for continued profitable growth Growth Drivers Expand our presence in the E&S market Develop new product offerings where we have underwriting expertise Focus on smaller accounts which we believe are subject to less competition Leverage technology to driv
Slide 17: Growth in Book Value per Share
Growth in Book Value per Share1 600% 500% 400% 300% 200% 100% 0% KNSL Peer Group 2 17 Source: S&P Capital IQ; Note: 1 For the period December 31, 2016 through September 30, 2024; 2 Public companies comprising the peer group are set forth on Page 15
Slide 18: Growth in Diluted Earnings per Share
Growth in Diluted Earnings per Share1 1600% 1400% 1200% 1000% 800% 600% 400% 200% 0% -200% -400% 2 KNSL Peer Group 18 Source: S&P Capital IQ; Note: 1 For the quarterly periods from December 31, 2016 through September 30, 2024; 2 Public companies comprising the peer group are set forth on Page 15
Slide 19: Investment Portfolio as of December 31, 2024
Investment Portfolio as of December 31, 2024 $4.1 Billion Investment Portfolio as of December 31, 2024 Credit Quality – Fixed-Maturity Portfolio Asset Allocation – Total Investment Portfolio Below BBB & unrated U.S. Treasuries/Short-term Equities 1.8% 0.5% 10.1% Municipals BBB CMBS 3.7% 18.5% AAA 29
Slide 20: Financial Results
FINANCIAL RESULTS 20
Slide 21: Operating Return on Equity
Operating Return on Equity 31.8% 29.2% 25.0% 20.8% 14.7% 2020 2021 2022 2023 2024 Operating return on equity is net operating earnings expressed as a percentage of average beginning and ending stockholders’ equity during the period. Net operating earnings is a non-GAAP financial measure, please see
Slide 22: Q4 2024 Financial Update
Q4 2024 Financial Update Three months ended December 31, Diluted earnings per share increased by 5.6% to $4.68 compared to the third (in $ millions) 2023 2024 quarter of 2023 Gross written premiums $ 395.2 $ 443.3 Diluted operating earnings(1) per share increased by 19.4% to $4.62 Net earned pre
Slide 23: Selected Financial Data
Selected Financial Data Year ended December 31, ($000’s) 2020 2021 2022 2023 2024 Operating Results: Gross written premiums $552,814 $764,373 $1,102,092 $1,568,815 $1,870,341 Underwriting income (1) 54,656 133,564 175,488 270,374 325,881 Net operating earnings (2) 72,313 132,404 180,363 291,400 374,
Slide 24: Appendix
APPENDIX 24
Slide 25: Non-GAAP Reconciliation – Underwriting Income
Non-GAAP Reconciliation – Underwriting Income Year ended December 31, ($000’s) 2020 2021 2022 2023 2024 Net income $88,419 $152,659 $159,114 $308,093 $414,843 Income tax expense 11,994 36,142 36,450 75,924 99,873 Income before income taxes 100,413 188,801 195,564 384,017 514,716 Net investment incom
Slide 26: Non-GAAP Reconciliation – Net Operating Earnings
Non-GAAP Reconciliation – Net Operating Earnings Year ended December 31, ($000’s) 2020 2021 2022 2023 2024 Net income $ 88,419 $ 152,659 $ 159,114 $ 308,093 $ 414,843 Adjustments: Change in the fair value of equity securities, before taxes (16,855) (22,812) 27,723 (15,277) (43,367) Income tax expens
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