/biz/ - Business & Finance

What is up with Excess & Surplus Insurance? The growth of these companies seem too good to be true.

KNSL

>The Kinsale strategy of disciplined and highly controlled underwriting, combined with technology-driven low costs and a focus on the E&S market, is propelling our profitability and growth and we believe will continue to do so over the long term. In addition to our own business strategy, our growth is being enhanced by a growing level of dislocation within the P&C market. After many years of intense competition, some competitors are experiencing adverse results and are withdrawing capacity, canceling some programs, raising prices, etc. We expect this dislocation to continue, thereby allowing Kinsale to grow at an elevated rate perhaps through 2021. At some point thereafter, we expect the level of dislocation to abate and our growth rate to normalize perhaps in the low double-digit range. Beyond the accelerated growth, industry dislocation is also allowing Kinsale to raise rates and in some cases, restrict coverage to further expand our profit margins. To take full advantage of this market opportunity, there is a possibility Kinsale could raise a modest amount of equity capital before year-end.

>Net income increased by 119.8% compared to the second quarter of 2019

PLMR
>Net income increased by 79.3% to $12.0 million, or $0.48 per diluted share, compared to a net income of $6.7 million, or $0.30 per diluted share, in the second quarter of 2019

Look at the net income increase during COVID19