Who is Kinsale Capital Group?
Kinsale Capital Group is a specialty property-and-casualty insurer focused on the excess and surplus (E&S) lines market. Founded in 2009 and led by founder and CEO Michael P. Kehoe, the Richmond, Virginia-based company carries a market capitalization of approximately $7.0 billion. Its shares are up roughly 1,560% since the July 2016 IPO.
Business Model
Kinsale writes E&S coverage for accounts admitted carriers typically decline — including bars, contractors, demolition firms, cannabis dispensaries, and jet ski rentals — at average annual premiums of roughly $14,000 to $15,000. Operating primarily on a surplus line basis, the company faces less regulatory oversight than admitted insurers and can adjust policy forms, underwriting guidelines, or rates without prior regulatory approval.
The Bear Cave's Key Findings
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01
Kinsale targets a small-business customer base that PAA Research's Brad Safalow describes as "not exactly financially savvy" when it comes to insurance — a demographic, The Bear Cave argues, that enables the company to charge "enormous amounts" for its coverage.
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02
Kinsale's roughly 60% customer retention rate sits well below the ~90% norm for P&C insurers — a gap independent research attributes to customers paying premium prices for what amounts to a watered-down product.
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03
Per Mr. Safalow, who has reviewed dozens of Kinsale policies, the company has materially expanded its exclusions over the past five years. The result, in his words: "in effect, in a lot of cases, you don't really have insurance."
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04
A December 2023 complaint to the Colorado Division of Insurance from a private armed security firm alleges its Kinsale policy excluded firearms, professional liability, and assault and battery. The customer claimed it had been "defrauded" of the 25% earned premium and subsequently filed small claims litigation against Kinsale.
Key Charts
Most P&C insurers retain roughly 90% of customers year-over-year. PAA Research describes Kinsale's 60% retention as "extraordinarily low" for the sector.
These findings are excerpted from The Bear Cave's full report on Kinsale Capital Group. Subscribe for the complete investigation, source documents, and ongoing coverage.
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