Keep pulling the thread on Clay Finck.
Since its IPO in 2016, Kinsale Capital's stock has compounded at a rate well north of 30% per year.
Since its IPO in July 2016, Kinsale Capital's stock has compounded at 37% per year.
Michael Kehoe, CEO of Kinsale Capital, owns around 4% of the company's shares outstanding, valued at $350 million.
Kinsale Capital intentionally targets smaller E&S risks, with an average premium rate of around $15,000.
Kinsale Capital has generated a return on equity of around 30%.
A key differentiator for Kinsale Capital is that it keeps all of its underwriting in-house, unlike many competitors who outsource to Managing General Agents (MGAs).
In 2024, Kinsale Capital's combined ratio was 76%, and it consistently remains below 80%.
Kinsale Capital's expense ratio is approximately 21%, while its competitors have expense ratios of 35% to 40%.
Kinsale Capital's premium volume grew from just over $200 million in 2019 to over $1.6 billion today.
Kinsale Capital compounded its book value at 33% per year since 2018, while Berkshire Hathaway compounded its book value at 10% over the same period.
A key risk for Kinsale Capital is broker concentration, as its top 5 brokers account for more than half of its premium volume.
Kinsale Capital's stock is down approximately 30% from its highs, which is the fourth such drawdown in the last 6 years.