What Happened?
Shares of specialty insurance provider Kinsale Capital Group (NYSE: KNSL) jumped 3% in the afternoon session after Truist Securities reiterated its "Buy" rating and a $560 price target on the stock following positive meetings with the company's management. The investment firm noted that Kinsale's leadership expressed optimism that property insurance markets would normalize faster than expected. This confidence was backed by double-digit growth in the company's third-quarter property premium in key states like Texas and Florida. Furthermore, Kinsale executives affirmed their long-term top-line growth target of 10% to 20%. Truist's analysis also suggested that data from the excess and surplus (E&S) insurance market pointed to Kinsale's third-quarter growth accelerating significantly compared to prior periods.
After the initial pop the shares cooled down to $433.75, up 3.9% from previous close.
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What Is The Market Telling Us
Kinsale Capital Group’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 3% on the news that the company reported strong second-quarter 2025 financial results, highlighted by a significant increase in earnings per share. The company's net income rose to a record $134.1 million, or $5.76 per diluted share, marking a 45.1% increase from the same quarter in the previous year. This performance beat expectations and showed robust growth. Kinsale also reported a 4.9% rise in gross written premiums, which reached $555.5 million. Management attributed the positive results to a combination of "disciplined underwriting and technology-enabled expense management." The strong quarterly performance signaled a solid rebound from a previous quarter that was affected by disaster losses, reassuring investors of the company's financial strength and profitability.
Kinsale Capital Group is down 4.5% since the beginning of the year, and at $433.75 per share, it is trading 17.3% below its 52-week high of $524.22 from December 2024. Investors who bought $1,000 worth of Kinsale Capital Group’s shares 5 years ago would now be looking at an investment worth $2,214.
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