Specialty Insurer Kinsale Capital Plans Public Offering

August 7, 2019

Richmond, Virginia-based specialty insurer Kinsale Capital Group said it intends to offer 530,000 shares of common stock in a public offering.

Kinsale said it also expects to grant the underwriters a 30-day option to purchase up to an additional 79,500 shares of common stock.

All of the shares in the offering are to be sold by Kinsale.

The company has filed a preliminary prospectus supplement with the SEC. It has not yet set a price for shares.

The company said it expects to use the net proceeds from the offering for general corporate purposes, including to fund organic growth.

Kinsale Capital Group is focused on the excess surplus lines market. The company was formed in 2010 with backing by private equity firms Moelis Capital Partners, based in New York, and Virginia Capital Partners. Kinsale sells excess and surplus lines insurance in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands primarily through independent insurance brokers.

The company held an initial public offering (IPO) in 2016.

Financial highlights for the full year of 2018 reported by the firm included:

  • Net income increased by 35.7% compared to the full year of 2017
  • Net operating earnings of $38.7 million increased by 45.0% compared to the full year of 2017
  • 23.5% growth in gross written premiums to $275.5 million compared to the full year of 2017
  • 48.4% increase in net investment income to $15.7 million compared to the full year of 2017
  • Underwriting income of $31.2 million for the full year of 2018, resulting in a combined ratio of 85.3%
  • 15.4% operating return on equity for the year ended December 31, 2018

J.P. Morgan is acting as sole bookrunner for the offering. William Blair, RBC Capital Markets, SunTrust Robinson Humphrey, Dowling & Partners Securities LLC, CIBC Capital Markets and Strategas Research Partners are acting as co-managers for the offering.

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