KNSL
Kinsale Capital Group, Inc.
stock NYSE

There are different philosophies on this. If you really believe a company is a long term winner, it may make sense to just hold for the long term.
I take that approach with some like with ATS Corporation (ATS) & Kinsale Capital (KNSL).
But there are others that I’m essentially holding bc I believe them to be undervalued & I’ll sell most if not all when the price reaches the value of the business.

The thing I have is that KNSL has been a good play for some time now. Why the downward pressure? What are we missing? I don’t think it’s the SaaSpocalypse as the downward trend started before that

Since so much money has rotated into semis and tech, its left many of the boring names in the dust. For example, insurance stocks are in a soft market right now, putting pressure on valuations. I know nobody on reddit likes insurance, but there are some high-quality names out there.
$BRO $KNSL $MKL to name a few

The beauty of the insurance model is the ability for KNSL to use float (money received in premiums but not yet paid out for claims) to earn extra returns. They have a really high-quality investment portfolio with fixed maturity assets rated “AA-” or higher. So they focus on preservation of capital rather than chase high returns, which is generally what you'd like to see for an insurance company.
They also purposefully choose not to insure in soft markets like today so they don't sacrifice margin for growth. You don't typically see that nowadays.

Tons of great interviews with the founder Kehoe online if anyone is interested. Recently one was posted by the Rock and Turner podcast.

Appreciate the critique, thank you.
My understanding is that by nature, insurance companies are sued constantly, and especially E&S insurers as they write high-risk, unusual and customized policies.
My analysis showed KNSL shows favourable prior year reserve development and the combined ratio has been extraordinarily strong (up to 77.6% in 2026 Q1). If the company was hiding underwriting weakness I would expect to see adverse reserve development but they currently look to be developing reserves favourably.
Are these examples isolated cases that reflect the business model or are they unusually frequent/severe relative to peers would you say?

Kinsale Capital (KNSL)- Potentially Undervalued Insurance Compounder