Kinsale Capital Group, Inc. ( KNSL Quick Quote KNSL - Free Report) have gained 31.2% in a year against the industry's decline of 8.2%. The Zacks S&P 500 composite has decreased 14% in the said time frame. With a market capitalization of $4.8 billion, the average volume of shares traded in the last three months was 0.1 million. Image Source: Zacks Investment Research
The rally was largely driven by rate increases, higher net earned premiums and effective capital deployment.
This Zacks Rank #2 (Buy) insurer has a solid track record of beating earnings estimates in six of the last seven quarters. KNSL has a favorable VGM Score of B. VGM Score helps to identify stocks with the most attractive value, the best growth and the most promising momentum. Can KNSL Stock Retain the Momentum?
The Zacks Consensus Estimate for 2022 and 2023 earnings per share is pegged at $6.74 and $7.96, indicating year-over-year increases of 17.4% and 18.1%, respectively.
Kinsale Capital’s premium income is expected to improve in the near term on the back of increasing submissions and rate increases. The combination of highly controlled underwriting combined with advanced technology-driven low costs and a focus on the Excess and Surplus Lines Insurance market is driving the profitability and growth of Kinsale Capital. The Excess and Surplus Lines insurance segment continues to witness rapid growth owing to dislocation in the overall property and casualty market. The expense ratio is expected to gain from lower reinstatement premiums on certain property reinsurance treaties that do not have ceding commissions as well as lower other underwriting expenses due to higher net earned premiums. The company’s ROE for the trailing 12 months is 21.8%, which expanded 680 basis points year over year and was better than the industry average of 5.7%, reflecting efficiency in utilizing shareholders’ fund. Banking on operational excellence, the property and casualty insurer has increased its dividend since 2017 at a five-year CAGR (2016-2022) of 14.6%. Kinsale Capital has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company. Back-tested results have shown that stocks with a favorable Growth Score when combined with a solid Zacks Rank offer better returns. The Zacks Consensus Estimate for 2022 and 2023 has moved 1.6% and 4.5% north, respectively, in the past 60 days, reflecting analysts’ optimism. Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance sector are
W.R. Berkley Corporation ( WRB Quick Quote WRB - Free Report) , HCI Group, Inc. ( HCI Quick Quote HCI - Free Report) and American Financial Group, Inc. ( AFG Quick Quote AFG - Free Report) . While W.R. Berkley sports a Zacks Rank #1 (Strong Buy), HCI Group and American Financial carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 27.08%. In the past year, W.R. Berkley's stock has increased 37.6%. The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings has moved 4.9% and 4.1% north, respectively, in the past 30 days. The Zacks Consensus Estimate for HCI Group’s 2022 and 2023 earnings has moved 33.3% and 40% north, respectively, in the past 60 days. In the past year, HCI Group’s stock has lost 34.6%. The Zacks Consensus Estimate for HCI’s 2022 and 2023 earnings per share indicates a year-over-year increase of 280.9% and 75%, respectively. American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has gained 8.1%. The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 30 days.