Analyst Michael Zaremski of BMO Capital maintained a Hold rating on Kinsale Capital Group (KNSL – Research Report), retaining the price target of $429.00.
Michael Zaremski has given his Hold rating due to a combination of factors impacting Kinsale Capital Group’s performance. The company’s estimated growth for the first quarter is projected at 9%, which is a decline from the previous quarter and below the consensus expectation. This slowdown is attributed to softer conditions in the large-account ‘shared & layered’ market, which constitutes a significant portion of Kinsale’s portfolio.
Furthermore, while the casualty E&S marketplace is experiencing double-digit submission inflows, pricing power is decelerating due to competitive pressures. Additionally, Kinsale’s profit margins are expected to be slightly worse than the consensus, influenced by sharply decelerating pricing levels. Despite Kinsale’s strong reserves and historical outperformance in core loss ratios, the softening of the large-account property marketplace and reduced need for smaller capacity players like Kinsale contribute to the Hold rating.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KNSL in relation to earlier this year.