Kinsale Capital downgraded to Underperform from Hold at Jefferies

Jefferies analyst Andrew Andersen downgraded Kinsale Capital (KNSL) to Underperform from Hold with a price target of $312, down from $392. Excess and surplus growth is “rolling over and history points to a multi-year slowdown,” the analyst tells investors in a research note. The firm sees this pressuring Kinsale just as industry competition and capital limit re-hardening. Growth increasingly depends on casualty, but pricing momentum has moderated and the company’s mix shift creates margin headwinds as rate and reserve tailwinds fade, contends Jefferies. It believes the stock’s valuation is “too high.”