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Kinsale Capital (KNSL) Q4 Earnings & Revenues Top Estimates
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Kinsale Capital Group, Inc. (KNSL - Free Report) reported fourth-quarter 2020 net operating earnings of $1.14 per share, which beat the Zacks Consensus Estimate by 48%. Moreover, the bottom line increased 80.9% year over year.
The company’s results benefited from higher premiums and improved underwriting income, offset by increased costs.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
For 2020, Kinsale Capital delivered net operating income of $3.16 per share, which beat the Zacks Consensus Estimate by 13.3%. Moreover, the bottom line improved 31.1% year over year.
Total operating revenues of $456.3 million beat the consensus mark by 2.9% and also increased 44.6% year over year.
Operational Update
Total revenues in the fourth quarter were $139 million, which grew 49.5% year over year. The upside can primarily be attributed to higher premiums, improved net investment income and other income. The top line also beat the consensus mark by 13.9%.
Gross written premiums increased 33.7% year over year to $149.9 million, primarily driven by higher submission activity and premium rates on bound accounts.
Net investment income grew 17.1% year over year to nearly $6.5 million, courtesy of growth in investment portfolio balance generated from the investment of operating funds since Dec 31, 2019 and from proceeds from equity offerings.
Total expenses in the quarter under review climbed 35.4% year over year to $96.5 million owing to higher losses and loss adjustment expenses, and underwriting, acquisition and insurance expenses and other expenses.
Kinsale Capital recorded underwriting income of $21.6 million, up 88.1% year over year, largely due to premium growth quarter over quarter and higher favorable development on loss reserves from prior accident years. The upside was partly offset by higher catastrophe losses in the fourth quarter of 2020 compared with the prior-year period. Combined ratio improved 450 basis points (bps) to 81.6%.
Expense ratio improved 120 bps to 22.8% in the fourth quarter. Also, loss ratio improved 330 bps to 58.8% in the quarter under review.
Financial Update
Kinsale Capital exited the fourth quarter with cash and cash equivalents of $77 million, down 23.2% over the level at 2019 end. As of Dec 31, 2020, credit facility of $42.6 million increased nearly three-fold year over year from 2019-end level.
Stockholders’ equity of $576.2 million at the end of the quarter increased 41.9% year over year.
Annualized operating return on equity expanded 460 bps year over year to 19% in the quarter.
Fourth-quarter earnings of Athene Holding Ltd. , Reinsurance Group of America (RGA - Free Report) , and Markel Corporation (MKL - Free Report) beat the respective Zacks Consensus Estimate.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Kinsale Capital (KNSL) Q4 Earnings & Revenues Top Estimates
Kinsale Capital Group, Inc. (KNSL - Free Report) reported fourth-quarter 2020 net operating earnings of $1.14 per share, which beat the Zacks Consensus Estimate by 48%. Moreover, the bottom line increased 80.9% year over year.
The company’s results benefited from higher premiums and improved underwriting income, offset by increased costs.
Kinsale Capital Group, Inc. Price, Consensus and EPS Surprise
Kinsale Capital Group, Inc. price-consensus-eps-surprise-chart | Kinsale Capital Group, Inc. Quote
Full-Year Highlights
For 2020, Kinsale Capital delivered net operating income of $3.16 per share, which beat the Zacks Consensus Estimate by 13.3%. Moreover, the bottom line improved 31.1% year over year.
Total operating revenues of $456.3 million beat the consensus mark by 2.9% and also increased 44.6% year over year.
Operational Update
Total revenues in the fourth quarter were $139 million, which grew 49.5% year over year. The upside can primarily be attributed to higher premiums, improved net investment income and other income. The top line also beat the consensus mark by 13.9%.
Gross written premiums increased 33.7% year over year to $149.9 million, primarily driven by higher submission activity and premium rates on bound accounts.
Net investment income grew 17.1% year over year to nearly $6.5 million, courtesy of growth in investment portfolio balance generated from the investment of operating funds since Dec 31, 2019 and from proceeds from equity offerings.
Total expenses in the quarter under review climbed 35.4% year over year to $96.5 million owing to higher losses and loss adjustment expenses, and underwriting, acquisition and insurance expenses and other expenses.
Kinsale Capital recorded underwriting income of $21.6 million, up 88.1% year over year, largely due to premium growth quarter over quarter and higher favorable development on loss reserves from prior accident years. The upside was partly offset by higher catastrophe losses in the fourth quarter of 2020 compared with the prior-year period. Combined ratio improved 450 basis points (bps) to 81.6%.
Expense ratio improved 120 bps to 22.8% in the fourth quarter. Also, loss ratio improved 330 bps to 58.8% in the quarter under review.
Financial Update
Kinsale Capital exited the fourth quarter with cash and cash equivalents of $77 million, down 23.2% over the level at 2019 end. As of Dec 31, 2020, credit facility of $42.6 million increased nearly three-fold year over year from 2019-end level.
Stockholders’ equity of $576.2 million at the end of the quarter increased 41.9% year over year.
Annualized operating return on equity expanded 460 bps year over year to 19% in the quarter.
Zacks Rank & Performance of Other Insurers
Kinsale Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fourth-quarter earnings of Athene Holding Ltd. , Reinsurance Group of America (RGA - Free Report) , and Markel Corporation (MKL - Free Report) beat the respective Zacks Consensus Estimate.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>