William Blair analyst Adam Klauber has maintained their neutral stance on KNSL stock, giving a Hold rating on April 9.
Adam Klauber has given his Hold rating due to a combination of factors impacting Kinsale Capital Group’s performance. Despite the company surpassing earnings expectations with an operating EPS of $3.71 against the anticipated $3.25, there are concerns about its growth trajectory. The company’s top-line growth has decelerated for five consecutive quarters, with the first quarter showing only an 8% increase, which is significantly below market expectations.
Additionally, the Commercial Property Division, Kinsale’s largest business line, experienced an 18% year-over-year decline in gross written premiums due to rate decreases and heightened competition. Although Kinsale has managed its expenses and loss costs effectively and maintains a positive earnings outlook for 2025, the unclear growth prospects and increased catastrophe losses, particularly from the L.A. wildfires, contribute to the Hold rating. These factors suggest a cautious approach until more clarity on growth and risk management emerges.
Klauber covers the Financial sector, focusing on stocks such as Progressive, GooseHead Insurance, and Baldwin Insurance Group. According to TipRanks, Klauber has an average return of 10.9% and a 56.12% success rate on recommended stocks.
In another report released on April 9, Jefferies also maintained a Hold rating on the stock with a $466.00 price target.