Should you buy Kinsale Capital stock? (July 2024)

Published first at https://www.3minutebreakdowns.com Kinsale Capital stock analysis. Ticker: $KNSL Insurance business Kinsale Capital is one of the best performing stocks of the last 10 years. However, shares have fallen 30% since March. At the latest price, Kinsale now has a market cap of 9.1 billion dollars against a book value of 1.26 billion. Revenue over the last 12 months comes to 1.4 billion with 371 million of net income. So Kinsale stock is now valued at 25 times earnings and 7.2 times book. Kinsale may well be the best insurance company in America and its certainly the most profitable in the E&S niche. E&S stands for excess and surplus because it extends beyond typical property and casualty to risk that is more difficult to assess. In 2023, for example, over 2% of Kinsale premiums came from customers in entertainment like bowling alleys, escape rooms and paintball facilities. But Kinsale is performing exceptionally well. It’s average loss ratio over the last 3 years (which is the percentage of premiums paid out as a result of claims) is only 55%, much lower than the industry average of 61%. Even better, its combined ratio, which includes company operating expenses is only 77%. That’s 16% lower than the industry average of 93%. And the company also boasts an impressive return on equity of over 30%. In other words, Kinsale is a quality insurance company that appears to be firing on all cylinders. #investing #stocks #3mb #stockanalysis