Kinsale Capital Group, Inc

After averaging 36% annualized premium growth during a six-year hard market, growth has already slowed to 18% in 2025 as competition loosens and the cycle turns, though structural E&S tailwinds and share gains should sustain double-digit growth.

By targeting ~$15K average premiums that most E&S insurers find uneconomical, Kinsale faces minimal competition while diversifying catastrophic exposure across thousands of uncorrelated policies — a segment its systems were purpose-built to serve profitably.

The stock has repriced from 40+ PE to its lowest level since IPO, while the founder-led E&S insurer still generates ~30% ROE and holds less than 2% share in a $115 billion market.

By keeping all underwriting in-house rather than outsourcing to MGAs paid on premium volume, Kinsale aligns incentives to price risk accurately — illustrated by a competitor misclassifying a firearms manufacturer as a sporting goods distributor, quoting $57K instead of Kinsale's $170K.

With a 21% expense ratio versus 35-40% for competitors and a 76% combined ratio versus 91% industry average, Kinsale's CEO compares the company's technology-driven model to how Progressive grew from 1-2% to 16% auto market share.

CEO Kehoe holds ~$350M in shares on a modest $1.2M salary; COO and CFO hold $64M and $24M stakes respectively. Annual bonuses are tied to ROE, operating profit, and combined ratio — metrics that explicitly discourage reckless premium growth — and RSUs vest on performance conditions, not tenure alone.

With less than 2% market share in excess and surplus insurance, technology-driven underwriting advantages, and a valuation compressed from the mid-20s to 17x earnings, Kinsale mirrors Progressive's early trajectory when it had 2% auto insurance share before growing to 15%.

Kinsale's fully integrated technology platform delivers a superior underwriting ratio and higher returns on equity than competitors — the stock has re-rated from the high-20s P/E to roughly 17x, creating an entry point Rochon views as attractive.