E&S specialist Kinsale grows GWP 41% in 2019

Excess and surplus lines (E&S) writer Kinsale Capital Group has revealed its gross written premiums were up 55.4 percent in the fourth quarter and 41.4 percent for the full-year 2019.

The Richmond, Virginia-based carrier reported net operating earnings for the fourth quarter of $14.3mn, up 42.1 percent from $10.1mn for the prior year period.

Its gross written premiums of $112.1mn for the fourth quarter compared to $72.2mn for the fourth quarter of 2018. Net premiums in the quarter increased 61.4 percent, to $99.6mn from $61.7mn.

The 41.4 percent growth for the full year pushed gross written premiums to $389.7mn from $275.5mn in 2018.

Kinsale said the increase in gross written premiums during the fourth quarter and year “was due to higher submission activity from brokers across most lines of business and better pricing on bound accounts, resulting from favourable market conditions”.

The insurer reported a 49.5 percent increase in underwriting income in the fourth quarter to $11.5mn. This resulted in a combined ratio of 86.1 percent, an improvement on the 87.1 percent in Q4 2018.

Michael Kehoe, Kinsale’s president and CEO, commented that it had been “a remarkable year of growth and opportunity for our company”, reflecting the ability to capitalise on favourable market conditions.

“As we look to the year ahead, we expect to further grow our business and to continue to invest in our technology-driven business model to ensure we are well positioned to generate best-in-class returns for our investors across all points in the business cycle,” Kehoe added.

Kinsale was founded in June 2009 and focuses exclusively on the E&S market. It focuses on smaller accounts, which the company believes are generally subject to less competition with better pricing.

Its 2019 earnings release did not break down its premium by class of business. However, a November investor presentation gave a breakdown for 2018 gross written premium. Construction accounted for 19 percent, small business 16 percent, excess casualty 10 percent, energy 9 percent and products liability 7 percent.

General casualty, allied health and professional liability each accounted for 6 percent of 2018 gross written premium, while personal insurance represented 4 percent and other commercial 17 percent.

Kinsale bills itself as the only publicly-traded pure-play E&S investment opportunity, with its peers also writing other business.

“Unlike many of our competitors, we do not extend underwriting authority to brokers, agents, or other third parties,” the November presentation noted.