March 2024
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 may discuss, among other things, Kinsale's future financial performance, business prospects and strategy, anticipated financial position, liquidity and capital, dividends and general market and industry conditions. You can identify forward-looking statements by words such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have" and similar terms. Forward-looking statements are based on management's current expectations and assumptions about future events, which are subject to uncertainties, risks and changes in circumstances that are difficult to predict. These statements are only predictions and are not guarantees of future performance. Forward-looking statements speak only as of the date on which they are made. Except as expressly required under federal securities laws or the rules and regulations of the SEC, Kinsale does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to Kinsale are expressly qualified by these cautionary statements.
To supplement Kinsale's consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and to better reflect period-over- period comparisons, Kinsale uses non-GAAP financial measures of performance and financial position that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of Kinsale's current financial performance and its prospects for the future. Kinsale believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to financial condition and operating results. In addition, management uses these measures, along with GAAP information, for reviewing financial results and evaluating its historical operating performance. The non-GAAP adjustments for all periods presented are based upon information and assumptions available as of the date of this presentation. The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non- GAAP information used by other companies. For further discussion of the limitations of these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP financial measures, see the Appendix to this presentation.
2
INTRODUCTION TO KINSALE
3
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 |
focused on | over | technology to | approach- | strong returns |
small-account | underwriting | operate with a | using analytics | and robust |
E&S market | and claims | substantial cost | to drive | growth as we |
management | advantage over | profitability and | expand our 2% | |
processes | competitors | operational | market share | |
efficiency |
Our goal is to provide long-term value to our stockholders by generating exceptional profit and growth.
4
Highly-Experienced Management Team
Name | Experience | Prior experience | |
Michael Kehoe | 30+ years | President and Chief Executive Officer at James River Insurance from 2002 to 2008 | |
Founder, Chairman and | |||
Chief Executive Officer | |||
Brian Haney | 30+ years | Chief Actuary of James River Insurance from 2002 to 2009 | |
President and | |||
Chief Operating Officer | |||
Bryan Petrucelli | 30+ years | Senior Manager in Ernst & Young's audit practice for over 13 years | |
Executive Vice President, | |||
Chief Financial Officer | |||
Diane Schnupp | 30+ years | Principal Consultant Impact Makers, Inc. from 2016 to 2019; Chief Information | |
Executive Vice President, | Officer Capital Center, LLC from 2012 to 2016 | ||
Chief Information Officer | |||
Mark Beachy | 30+ years | Group General Counsel at The Travelers Indemnity Company from 2018 to 2020; | |
Executive Vice President, | Managing Counsel at Travelers from 2006 to 2018 |
Chief Claims Officer
5
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 |
Compounded Annual Gain ─ 2016-2023 | 51.2% | 13.2% |
Overall Gain ─ 2016-2023 | 2,052.6% | 151.4% |
- Data for 2016 begins with Kinsale's initial public offering date of July 28, 2016 and assumes reinvestment of dividends.
- Returns are calculated from the initial public offering price of $16.00 per share.
6
Select Market Information
As of December 31, 2023 | |
Ticker | KNSL |
Exchange | New York Stock Exchange |
Stock Price | $334.91 |
Market Capitalization | $7.8 billion |
Book Value | $46.88 per share |
Debt to Total Capitalization Ratio | 14.6% |
Full-time Employees | 561 |
7
Our Approach
- Exclusive focus on the small-account E&S market
- Disciplined underwriting expertise across a broad spectrum of hard-to-place risks; no delegated underwriting authority
- Technology is a core competency, driving best-in-class expense ratio
- Use analytics to drive profitability and operational efficiency
- Entrepreneurial business culture with a close alignment of owners and employees
- Best combination of high growth and low combined ratio among peers¹
- Well-positionedfor continued profitable growth
¹ Public companies comprising the peer group are set forth on Page 15
8
Kinsale is the only publicly-traded,pure-play E&S investment opportunity
Leading public E&S players
2022 Surplus lines DWP as % of
total direct and assumed written premiums¹
Our differentiating factors
No delegated underwriting
JRVR
53%
39%
33%
29%
27%
19%
12%
9%
100%
66%
Low-cost business model
Contrarian underwriting
Quantitative decision making
Rewarding the doers
One location, in person
Source: S&P Capital IQ
¹ Statutory surplus lines direct and assumed premiums written as defined by S&P Capital IQ
9
E&S Market
The E&S market has seen significant growth and generated better underwriting results than the broader P&C industry
U.S. surplus lines direct written premiums ($bn)
$82.7 | $98.5 | ||||||||||||||||||||
$56.3 | $66.1 | ||||||||||||||||||||
$41.3 | $42.4 | $44.9 | $49.9 | ||||||||||||||||||
$38.7 | $36.6 | $34.4 | $34.8 | $37.7 | $40.2 | ||||||||||||||||
$25.6 | $32.8 | $33.0 | $33.3 | $33.0 | $31.7 | $31.1 | |||||||||||||||
$15.8 | |||||||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Net loss and LAE ratio - U.S. domestic professional surplus lines vs. P&C industry
88.4% | P&C Industry | Surplus lines | 1 | Surplus lines average: 69.3% | ||||||||||||||||||
81.5% | P&C industry average: 73.6% | |||||||||||||||||||||
79.4% | 80.4% | 76.4% | ||||||||||||||||||||
81.2% | 75.0% | 73.5% | 75.3% | 77.1% | 72.7% | 73.6% | 76.2% | 76.3% | 73.3% | 72.5% | ||||||||||||
67.8% | 69.0% | 70.2% | 71.0% | 70.1% | ||||||||||||||||||
65.4% | 75.9% | 67.4% | 76.0% | |||||||||||||||||||
74.3% | ||||||||||||||||||||||
72.3% | 72.1% | 71.3% | 71.0% | 72.2% | 71.4% | |||||||||||||||||
69.6% | 69.3% | 70.0% | ||||||||||||||||||||
68.3% | 68.5% | 67.7% | ||||||||||||||||||||
65.4% | 62.5% | 64.1% | ||||||||||||||||||||
57.8% | 52.4% | 57.7% | ||||||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Source: A.M. Best
¹ Represents domestic professional surplus lines (DPSL) as defined by A.M. Best
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Kinsale Capital Group Inc. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 17:49:09 UTC.