Kinsale Capital Group, Inc. · NYSE:KNSL
Kinsale Capital — Investor Day (October 2021)
81 slides from Kinsale Capital's investor day presentation, Oct 21, 2021
Slide 1: Investor Day
INVESTOR DAY 10.21.2021 CAPITAL GROUP
Slide 2: Claims
KINSALE CAPITAL GROUP Mark Beachy CLAIMS
Slide 3: Our Business
OUR BUSINESS Severity driven Complex multi-party litigation Litigious/liberal jurisdictions Multi-faceted coverage forms Aggressive plaintiff bar
Slide 4: The Four P's
THE FOUR P’S People Processes Payout Principles • Specialized training • Deep expertise • Strategic staffing • Claim triage • Data advantage • Teamwork • Responsiveness • Partnerships • Resolution focused • Data & analytics • Pay what we owe
Slide 5: Our People
OUR PEOPLE 49 Employees 45% of Liability Examiners have JD 6 Former Paralegals Average of 14 Years Industry Experience
Slide 6: Specialization by Lines
SPECIALIZATION BY LINES Casualty Lines Professional Lines Property Lines • Construction • General Casualty • Small Business • Energy • Environmental • Life Sciences • Products Liability • Excess Casualty • Aspera – Commercial • Professional Liability • Health Care • Allied Health • Management Liabil
Slide 7: Payout
PAYOUT Span of control. Limited reserve & settlement authority. Management approval on coverage & payment matters.Pay what we owe. Nothing more, nothing less.
Slide 8: Payout: Shortening the Claim Cycle
PAYOUT: SHORTENING THE CLAIM CYCLE RESOLUTION FOCUSED Claims Investigation/ Evaluation Time to Resolve Litigation End to end thinking – understand & be confident about the coverage & value of the claim • Fair & prompt settlement • Disputed & denied claims • Settlements, dispositive motions & volunta
Slide 9: Processes: Claims Triage
PROCESSES: CLAIMS TRIAGE DEEP EXPERTISE THROUGH SPECIALIZATION Construction Defect Right Touch Coverage • Continuous & ongoing damage over multiple policy periods • Organized by states • High volume, lower severity property damage claims • Speed & efficiency reduces claim cycle • In-house experts on
Slide 10: Principles
PRINCIPLES Teamwork Timeliness Responsiveness Reward the Doers Unparallel Partnerships
Slide 11: Information Technology
INFORMATION TECHNOLOGY Diane Schnupp
Slide 12: Technology is a core competency
Technology is a core competency for efficiency, accuracy, service, and data Efficiency Accuracy Service Data KINSALE CORE COMPETENCY Technology is a core competency for:
Slide 13: IT Strategy
IT STRATEGY Develop our core systems as a value-added business differentiator Hire and retain top talent Enable smart company growth
Slide 14: Intentional Architecture and Emergent Design
• Purposeful, planned guidelines • High level • Cross team alignment • Foundational enablers Source: SAFe | Scaled Agile Framework • Quickly evolving architecture • Self-organized team • Incremental approach Intentional Architecture Emergent Design Reconcile INNOVATION ACCELERATED
Slide 15: Underwriting Opportunities
Auto- Populate 3rd Party Data Workflow Automation Increase & Automate Channels Bind & issue policy Receive a submission Triage & assess risk Price the risk & quote Broker input & approval UNDERWRITING OPPORTUNITIES
Slide 16: Claims Opportunities
Investigate Claim & Coverage Auto- Populate 3rd Party Data Letter Templates Workflow Automation Manage & Resolve Claim Receive Loss Notice Triage Claim Decision Claim & Notify Claimant CLAIMS OPPORTUNITIES
Slide 17: Target State Approach
Corporate Business & IT Strategies EA Strategic Business Imperatives Business Domains & Architecture Enterprise Architecture Technology Ecosystem TARGET STATE APPROACH
Slide 18: Underwriting
UNDERWRITING Brian Haney
Slide 19: Underwriting
Life Sciences Environmental UNDERWRITING PropertyProfessional Lines Specialty Casualty CasualtyUnderwriting Operations Aspera
Slide 20: State of the Market
STATE OF THE MARKET Photo Credit: Baskervl
Slide 21: Our Approach
OUR APPROACH 100% Excess & Surplus Lines Small-to-Medium Sized Risks Individual Risk Underwriting Superior Systems & Data Significant Expense Ratio Advantage Subject Matter Experts
Slide 22: How We Are Different
HOW WE ARE DIFFERENT Rewarding the Doers No Delegated Underwriting One Location, in Person Contrarian Underwriting Tailored Coverage
Slide 23: Areas of Focus
AREAS OF FOCUS Customer Service Product Development Using Technology to Boost Productivity Training & Development
Slide 24: Casualty
CASUALTY Stuart Winston A KINSALE "CAPITAL GROUP
Slide 25: Casualty
CASUALTY $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 2018 2019 2020 Kinsale Casualty Construction 31% Small Business 31% General Casualty 10% Excess Casualty 28% 2020 YEAR-END CASUALTY GROSS WRITTEN PREMIUM BY DIVISION YEAR-END GROSS WRITTEN PREMIUM
Slide 26: Construction
CONSTRUCTION $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 2018 2019 2020 $50.9M GWP $71.0M GWP $87.2M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 27: Construction Top Classes
CONSTRUCTION TOP CLASSES Painting Contractors Fire Protection Services Carpentry Contractors Roofing Contractors Residential & Commercial Subcontractors
Slide 28: General Casualty
GENERAL CASUALTY $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2018 2019 2020 $17.6M GWP $23.3M GWP $29.2M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 29: General Casualty Top Classes
GENERAL CASUALTY TOP CLASSES Mobile Home Parks Amusement Parks Security Agencies Apartments Condominiums/Townhome Associations
Slide 30: Small Business
SMALL BUSINESS $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 2018 2019 2020 $63.2M GWP $44.4M GWP $83.3M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 31: Small Business Construction Top Classes
SMALL BUSINESS CONSTRUCTION TOP CLASSES Stucco/Plastering Contractors Plumbing Contractors Roofing Contractors Carpentry Contractors Subcontractors
Slide 32: Small Business General Casualty Top Classes
SMALL BUSINESS GENERAL CASUALTY TOP CLASSES Warehouses/Office Buildings Apartments Commercial Properties (Lessors Risk Only) Real Estate Development Property Truckers General Liability
Slide 33: Excess Casualty
EXCESS CASUALTY $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 2018 2019 2020 $76.7M GWP YEAR-END GROSS WRITTEN PREMIUM $37.4M GWP $51.2M GWP
Slide 34: Excess Casualty Top Classes
EXCESS CASUALTY TOP CLASSES Emerging Products Roofing Contractors Subcontractors Apartments Security Guards
Slide 35: Casualty Market Opportunities
CASUALTY MARKET OPPORTUNITIES CONSTRUCTION DIVISION • Tightening in residential construction market. • Dislocation in construction defect states. • Increased exposures due to inflation in labor charges & material costs. SMALL BUSINESS DIVISION • Carriers are pulling out of certain states. • Contract
Slide 36: Innovation
INNOVATION New Products New Processes 3rd Party Data DRIVING CULTURE, GROWTH, AND PROFITABILITY
Slide 37: Property
PROPERTY Ashlee Randall, CPCU, ASLI, AU, AIS
Slide 38: What Makes Up Property?
WHAT MAKES UP PROPERTY? WHAT MAKES KINSALE’S PROPERTY SEGMENT DIFFERENT? Inland Marine Small Property Commercial Property
Slide 39: Understanding the Property Market: Capacity and Values
MARKET TRENDS CAPACITY • Capacity is being restricted, deductibles increased, and coverage reduced • Capital is still robust • Increasing reinsurance costs VALUES • Undervalued buildings • Shortage of building materials and labor • Inflation UNDERSTANDING THE PROPERTY MARKET
Slide 40: Understanding the Property Market: Perils/Catastrophe
MARKET TRENDS PERILS/CATASTROPHE • CAT exposed properties are seeing double digit renewal increases. • Unexpected perils: • Wildfire • Riots • Freezing • Reaction to large area specific events: • Southeast windstorms • Florida condo collapse UNDERSTANDING THE PROPERTY MARKET
Slide 41: Managing Trends
MANAGING TRENDS Leverage data • Modeling • Peril tracking Focus on where we excel • Small • Tough to place • Individual account underwriting • Technology Aggregate management • Managing locations • Diversification Understand your exposure • Pictures • Valuations
Slide 42: Commercial Property
COMMERCIAL PROPERTY $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2018 2019 2020 $29.1M GWP $51.8M GWP $9.2M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 43: Commercial Property Offerings
COMMERCIAL PROPERTY OFFERINGS ExcessPrimaryGround up
Slide 44: Commercial Property: How do we stand apart?
COMMERCIAL PROPERTY Everyone offers these coverages, how do we stand apart?
Slide 45: Commercial Property Appetite
COMMERCIAL PROPERTY HABITATIONAL INDUSTRIAL WOOD PRODUCTS RETAIL & REAL ESTATE BROAD APPETITE GOVERNMENT SERVICES FOOD/ANIMAL PROCESSING WAREHOUSING
Slide 46: Commercial Property Mix & Match Coverages
COMMERCIAL PROPERTY MIX & MATCH COVERAGES FIRE (ALL OTHER PERILS) WINDSTORM EARTHQUAKE/ EARTH MOVEMENT FLOOD
Slide 47: Commercial Property: Targeting the Tough Accounts
COMMERCIAL PROPERTY Targeting the Tough Accounts Technology Customer Service Market Opportunity
Slide 48: Small Property
SMALL PROPERTY MISSING PIECE Quoting the property piece alongside our small account focused casualty units. QUICK TURN AROUND We’re able to provide brokers the fast service they’ve become accustomed to from Kinsale. PREVIOUS EXPERIENCE Focusing on small accounts where Kinsale excels
Slide 49: Small Property Appetite
SMALL PROPERTY APPETITE Even on the small accounts we are still targeting the tough to place risks! • Up to $2.5M Total Insured Value • Ground-up Light Manufacturing Vacant Buildings Retail Healthcare Facilities
Slide 50: Inland Marine
INLAND MARINE $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2018 2019 2020 $3.5M GWP $6.9M GWP $2.0M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 51: Inland Marine Top Classes
INLAND MARINE TOP CLASSES Contractors Equipment Builder’s RiskMotor Truck Cargo
Slide 52: Inland Marine: The Difference
INLAND MARINE • Our most diversified division with multiple lines of coverage available. • Fast response time – fast quotes, fast responses. • Crafting coverage to each insured. • Not afraid of accounts with losses or in tough jurisdictions. THE DIFFERENCE
Slide 53: Kinsale Property: The Difference
KINSALE PROPERTY THE DIFFERENCE Technology Customer Service Tough Risks Small Accounts
Slide 54: Specialty Casualty
SPECIALTY CASUALTY Brendan McMorrow
Slide 55: Specialty Casualty Divisions
SPECIALTY CASUALTY Energy Environmental Life Sciences Products Liability DIVISIONS
Slide 56: Specialty Casualty
SPECIALTY CASUALTY $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 2018 2019 2020 YEAR-END GROSS WRITTEN PREMIUM $52.3M GWP $64.7M GWP $94.9M GWP
Slide 57: Products Liability Division
PRODUCTS LIABILITY DIVISION IMPORTERS, DISTRIBUTORS, MANUFACTURERS OF CONSUMER & INDUSTRIAL PRODUCTS Consumer Electronics Machinery & Equipment Firearms Recreational & Sporting Goods Emerging Products
Slide 58: Products Liability Division
PRODUCTS LIABILITY DIVISION $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 2018 2019 2020 $20.0M GWP $26.3M GWP $38.3M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 59: Life Sciences Division
LIFE SCIENCES DIVISION MEDICAL PRODUCT MANUFACTURERS, DISTRIBUTORS, WHOLESALERS Dietary Supplements Durable Medical Equipment & Devices Health & Beauty Products Biologics Pharmaceuticals
Slide 60: Life Sciences Division
LIFE SCIENCES DIVISION $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2018 2019 2020 YEAR-END GROSS WRITTEN PREMIUM $14.5M GWP $17.8M GWP $31.0M GWP
Slide 61: Energy Division
ENERGY DIVISION OIL & GAS, RENEWABLE ENERGY, MINING & POWER Oil & Gas Service Contractors Manufacturers Pipeline Owners & Operators Power Distribution Energy Exploration & Production
Slide 62: Energy Division
ENERGY DIVISION YEAR-END GROSS WRITTEN PREMIUM PRIMARY COVERAGE ONLY $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2018 2019 2020 $15.6M GWP $15.4M GWP $17.0M GWP
Slide 63: Environmental Division
ENVIRONMENTAL DIVISION OPERATIONS OR PRODUCTS THAT MAY IMPACT THE ENVIRONMENT Waterproofing Contractors Lead/Asbestos Abatements Mold Remediation Disaster Response Contractors
Slide 64: Environmental Division
ENVIRONMENTAL DIVISION $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2018 2019 2020 YEAR-END GROSS WRITTEN PREMIUM $2.2M GWP $5.2M GWP $8.6M GWP
Slide 65: Specialty Casualty: State of the Market & Opportunities
SPECIALTY CASUALTY • Small accounts • Programs closing • Excess capacity reductions PRODUCTS DIVISION • Emerging products • Firearms LIFE SCIENCES DIVISION • Virus test kits • Personal protective equipment ENVIRONMENTAL DIVISION • Disinfectant contractors • Waterproofing contractors ENERGY DIVISION
Slide 66: Professional Lines
PROFESSIONAL LINES Pat Dalton
Slide 67: Professional Lines Divisions
PROFESSIONAL LINES DIVISIONS Allied Health Health Care Professional Liability Public Entity Management Liability
Slide 68: Professional Lines Gross Written Premium by Division
Allied Health 38% Health Care 8% Management Liability 24% Public Entity 3% Professional Liability 27% 2020 YEAR-END PROFESSIONAL LINES GROSS WRITTEN PREMIUM BY DIVISION PROFESSIONAL LINES
Slide 69: Professional Lines
PROFESSIONAL LINES $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2018 2019 2020 $48.6M GWP $65.4M GWP $99.3M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 70: Allied Health: Team, Coverages & Appetite
ALLIED HEALTH TEAM, COVERAGES & APPETITE Outpatient Medical Facilities Social Service Agencies Residential Care Facilities • 14 member team • General Liability & Professional Liability
Slide 71: Allied Health
ALLIED HEALTH $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2018 2019 2020 $16.8M GWP $24.0M GWP $37.6M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 72: Health Care: Team, Coverages & Appetite
HEALTH CARE TEAM, COVERAGES & APPETITE • 6 member team • Professional Liability for Medical Malpractice exposures Dentists Mid-Level Providers Physicians & Surgeons Group Practitioners
Slide 73: Health Care
HEALTH CARE $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2018 2019 2020 $6.0M GWP$5.7M GWP $7.7M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 74: Professional Liability: Team, Coverages & Appetite
PROFESSIONAL LIABILITY TEAM, COVERAGES & APPETITE Lawyers Architects & Engineers Insurance Agents Accountants • 10 member team • Errors & Omissions coverage for non- medical professionals
Slide 75: Professional Liability
PROFESSIONAL LIABILTIY $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2018 2019 2020 $16.7M GWP $20.0M GWP YEAR-END GROSS WRITTEN PREMIUM $27.0M GWP
Slide 76: Management Liability: Team, Coverages & Appetite
MANAGEMENT LIABILITY TEAM, COVERAGES & APPETITE Construction Firms Bars, Taverns & Restaurants Manufacturing Operations Law Firms • 7 member team • Employment Practices Liability (EPL) • Directors & Officers – private & nonprofit (D&O) • Educators Legal Liability
Slide 77: Management Liability
MANAGEMENT LIABILITY $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2018 2019 2020 $8.2M GWP $14.8M GWP $24.1M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 78: Public Entity: Team, Coverages & Appetite
PUBLIC ENTITY TEAM, COVERAGES & APPETITE Police Departments Public Schools Colleges & Universities Governing Authorities • 2 member team • Public Officials with Employment Practices Liability • Educator’s Legal Liability • Law Enforcement Liability
Slide 79: Public Entity
PUBLIC ENTITY $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2018 2019 2020 $0.6M GWP $1.2M GWP $3.0M GWP YEAR-END GROSS WRITTEN PREMIUM
Slide 80: Professional Lines: State of the Market & Opportunities
PROFESSIONAL LINES STATE OF THE MARKET & OPPORTUNITIES ALLIED HEALTH • Aging society • We are NOW in the game • Taking more shots HEALTH CARE • Competitors are pulling back • Firming market • Opportunistic with tight terms and fair premium PROFESSIONAL LIABILITY • Market capacity unchanged • Quote w
Slide 81: Investor Day
INVESTOR DAY 10.21.2021 CAPITAL GROUP