Why Kinsale Capital Stock Plunged Today
After reporting third-quarter earnings, shares of excess and surplus (E) insurer Kinsale Capital (NYSE: KNSL) were down 8% as of 1:45 p.m. ET Friday, according to data provided by S&P Global Market Intelligence.
Despite delivering earnings-per-share growth of 50% during Q3, Kinsale's gross written premium growth slowed to "only" 19% as the company faced increasing competition. Priced at nearly 30 times earnings prior to today's drop, Kinsale trades with the expectation that it will deliver near-perfect results each quarter, and it came up shy of these expectations in Q3.
Contrary to the market's reaction, Kinsale's Q3 results were not particularly worrisome, as the company maintained a 75.7% combined ratio during the quarter.
Source Fool.com
