Argo Group International Holdings, Ltd. (ARGO) announced a robust 7.9% increase in its gross written premiums for the first quarter of 2024, reaching $484.3 million. This growth reflects the company's strategic focus on disciplined underwriting and harnessing technology to manage expenses effectively.
The company remains optimistic about its ability to maintain exceptional profitability throughout market cycles, aiming to provide sustainable, long-term value to its shareholders. This confident outlook is supported by their continued execution of strategic initiatives.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Kinsale Capital Group Inc (KNSL, Financial) is $480.00 with a high estimate of $535.00 and a low estimate of $429.00. The average target implies an downside of 4.38% from the current price of $501.97. More detailed estimate data can be found on the Kinsale Capital Group Inc (KNSL) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Kinsale Capital Group Inc's (KNSL, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Kinsale Capital Group Inc (KNSL, Financial) in one year is $654.28, suggesting a upside of 30.34% from the current price of $501.97. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Kinsale Capital Group Inc (KNSL) Summary page.
KNSL Key Business Developments
Release Date: February 14, 2025
- Operating Earnings Per Share: Increased by 19.4% to $4.62 per share for Q4 2024.
- Gross Written Premium: Grew by 12.2% over Q4 2023.
- Combined Ratio: 73.4% for the quarter.
- Operating Return on Equity: 29% for the full year 2024.
- Net Investment Income: Increased by 37.8% in Q4 2024.
- Expense Ratio: 21.1% for Q4 2024, compared to 19.9% last year.
- Catastrophe Losses: $8 million pre-tax for Q4 2024.
- California Wildfire Loss Estimate: $25 million pre-tax.
- Share Repurchases: $10 million in shares repurchased during Q4 2024.
- New Business Submission Growth: 17% for Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kinsale Capital Group Inc (KNSL, Financial) reported a 19.4% increase in operating earnings per share for Q4 2024, showcasing strong financial performance.
- The company achieved a combined ratio of 73.4% for the quarter, indicating efficient underwriting and cost management.
- Kinsale's stock price appreciation in 2024 exceeded that of the S&P 500 Index, marking the eighth time in nine years since its IPO.
- Net investment income increased by 37.8% in Q4 2024, driven by growth in the investment portfolio and higher interest rates.
- The company is expanding its product lines, including a new agribusiness underwriting unit, to capture growth opportunities in adjacent markets.
Negative Points
- Kinsale Capital Group Inc (KNSL) faced a $25 million pre-tax loss from the Southern California wildfires, impacting its financial results.
- The expense ratio for Q4 2024 increased to 21.1% from 19.9% last year, primarily due to higher variable compensation.
- The growth rate in new business submissions slowed to 17% in Q4 2024, down from 23% in the previous quarter.
- The larger layered property market experienced rate declines, affecting growth in the property divisions.
- Increased competition in the E&S market could pressure Kinsale's growth and profitability in the future.
