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Opinions Teal Linde
Kinsale capital groupKNSLTOP PICKJun 17, 2024
Teal LindeStock price when the opinion was issued
As of Jun 12, 2026. Market Open.
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EPS of $5.21 beat estimates of $4.8 and sales of $497.51M beat estimates of $379.72M. Earnings grew 24.3% year-over-year, and its gross written premiums increased by 8.4%. Its combined ratio was an impressive 74.9%, and its ROE was 25.4% for the nine months ended September 30, 2025. Its commercial property saw a decline of 7.9%, which was due to lower rates and increased competition. With commercial property being its largest division, this caused some concern from investors, although its overall results were quite strong. Insurance names in general have been under pressure this year, as rates are declining and defensive stocks are being sold for momentum names. We think KNSL is a strong player in the insurance space, and we would be comfortable slowly averaging in here, while acknowledging its weak momentum.
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It has returned to its premium valuation and is a very profitable specialty insurer. It grows at a 15 to 20% historical level. It uses technology to grow rapidly and be a low cost insurer.
Teal LindeThey do excess and surplus insurance, so are a specialty insurance company. Although he expects a pause in the stock price going forward, hold it for the long term.
Teal LindeKNSL is (still) up 32% YTD and profit-taking was one factor. Some investors also 'sell on news'. EPS was 16% ahead of estimates and revenue was 4% better. Premiums rose 18% and it authorized a $100M share buyback. Wolfe Research raised its rating on the stock. Revenue rose 33%. We would consider the results quite solid overall.
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It is a property and casualty insurance company which focuses just on access and surplus segments which are non-standardized insurance. It has higher risk customers and unique situations and can price at whatever the market can bear. It is focusing on a low cost model which could double three times to go from 1.8% market share to 14% like others have done. It is very efficient and mitigates risk by doing lots of small and medium businesses. It is growing its expected revenue by 18% this year and next. Buy 2 Hold 7 Sell 0
Teal Linde
15-year-old P&C insurance company. Non-standardized specialty insurance, focused on being a low-cost provider. Market share 1.8%. Stock got ahead of itself, most recent dip was a chance to buy. Revenue and earnings growing 18%, trades around 20x PE. Decent growth rate for that valuation. Yield is 0.2%.
(Analysts’ price target is $418.38)