Kinsale Capital Group, Inc 8-K, filed Dec 7, 2022
Kinsale Capital Group, Inc. (KNSL)
8-K
2022-12-07
For: 2022-12-07
View Original
Added on
April 09, 2026
About this 8-K
Kinsale Capital Group, Inc filed this 8-K on December 7, 2022.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 7, 2022
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
(804 ) 289-1300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
On December 7, 2022, Kinsale Capital Group, Inc. (the "Company") will hold an Investor Day in Richmond, Virginia. A copy of the slide presentation is attached to this Current Report on Form 8-K as Exhibit 99.1. These materials will also be available on the Investor Relations page of the Company's website: www.kinsalecapitalgroup.com.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Kinsale Capital Group, Inc. | ||||||||
| Dated: December 7, 2022 | By: | /s/ Bryan P. Petrucelli | ||||||
| Bryan P. Petrucelli | ||||||||
| Executive Vice President, Chief Financial Officer and Treasurer | ||||||||
Forward-Looking Statements This presentation may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that does not directly relate to historical or current facts. These statements may discuss, among other things, Kinsale's future financial performance, business prospects and strategy, anticipated financial position, liquidity and capital, dividends and general market and industry conditions. You can identify forward-looking statements by words such as “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “outlook,” “future,” “will,” “would,” “should,” “could,” “may,” “can have” and similar terms. Forward-looking statements are based on management’s current expectations and assumptions about future events, which are subject to uncertainties, risks and changes in circumstances that are difficult to predict. These statements are only predictions and are not guarantees of future performance. Forward-looking statements speak only as of the date on which they are made. Except as expressly required under federal securities laws or the rules and regulations of the SEC, Kinsale does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to Kinsale are expressly qualified by these cautionary statements.
AGENDA 8:30 – 8:40 Opening Remarks Mike Kehoe 8:40 – 8:50 Company Overview Bryan Petrucelli 8:50 – 9:50 Underwriting Brian Haney 9:50 – 10:20 Human Resources Amber Sheridan 10:20 – 10:30 Break 10:30 – 11:00 Information Technology Diane Schnupp 11:00 – 11:30 Claims Mark Beachy 11:30 – 12:00 Analytics and Actuarial Salmaan Allibhai 12:00 Lunch/Adjourn
UNDERWRITING Brian Haney
UNDERWRITING OVERVIEW OF UNDERWRITING AT KINSALE STATE OF THE MARKET KEEPING EXPENSES LOW RISK APPETITE PRODUCT DEVELOPMENT TRAINING AND DEVELOPMENT CUSTOMER SERVICE PRODUCTIVITY & INNOVATION
Life Sciences Environmental UNDERWRITING Casualty Specialty Casualty Professional Lines UW Operations Digital Marketing Transportation Property
Casualty 45% Property 20% Specialty Cas. 17% Professional Lines 16% Transportation 2%
OUR APPROACH 100% Excess & Surplus Lines Small-to-Medium Sized Risks Individual Risk Underwriting Superior Systems & Data Keep expenses low Hard-to-place risks
HOW WE ARE DIFFERENT Rewarding the Doers No Delegated Underwriting One Location, in Person, 5 Days a Week Contrarian Underwriting Tailored Coverage
STATE OF THE MARKET Rate Flow of Business in E&S Property Casualty Proliferation of MGAs Professional Lines
FACTORS INFLUENCING MARKET Poor historical experience among many carriers Adverse reserve development in weaker companies Natural catastrophes Significant inflation Jump in bond yields End of easy money policy Economy ESG considerations
DRIVERS OF THE EXPENSE ACQUISITION COSTS EMPLOYEE COSTS EVERYTHING ELSE
CASUALTY Divisions Small Business General Casualty Excess Casualty Construction
SPECIALTY CASUALTY Divisions Environmental Entertainment Energy Life Sciences Products Product Recall
PROFESSIONAL LINES Divisions Public Entity Professional Liability Management Liability Healthcare Allied Healthcare
PROPERTY Divisions Small Property Commercial Property Personal Insurance
TRANSPORTATION Divisions Ocean Marine Inland Marine Commercial Auto Aviation
UNDERWRITING E&S ACCOUNTS Individual Risk Underwriting “Just Quote It” Utilize 3rd Party Data Underwriters are Subject Matter Experts Flexibility of Forms and Limits
Which Products to Bring To Market Determine the Lift Needed to Create Product IT, Forms, Actuarial, and Underwriting Work Marketing of Product Product Roll Out PRODUCT DEVELOPMENT PROCESS
NEW PRODUCTS Extended Completed Operations and Discontinued Operations Athletic Facilities Excess Product Recall Ocean Marine Garage Liability- Non-Dealers
UNDERWRITER TRAINING Hit the Ground Running Movement Territory & Letters of Authority File Audits
CUSTOMER SERVICE Use the Phone Two Hour Turn Around Time on All Emails First in First Out 24 Hour Turn Around Time
PRODUCTIVITY Rewarding the Doers Quote More Bind More IT/Transit
INNOVATION Submission Clearance Automatic Excess
HUMAN RESOURCES Amber Sheridan, SVP HR
Kinsale Culture Reward the Doers Recognize Achievement Remove Under- performers ENTREPRENEURIAL SPIRIT • Owner/Operator Model and Mentality • Compensation • Over 30% of Compensation is Lump Sum • Ability to Differentiate • Long Term Wealth Building • All Leaders Participate in Stock Plan
EMPLOYEES ARE OUR FOUNDATION OF SUCCESS High Performance High Pay High Productivity
Outreach and Participation Evaluating Business Asks and Needs Gathering the Right Candidates Screening and Testing for Attitude and Aptitude In Person Interview with Trained Panel Thoughtful Conversation and Offer Onboarding HOW WE HIRE
TALENT DEVELOPMENT EXPERTS Current Level of Understanding Learning Required for Current Role Opportunities to Grow and Create Long Term Career
ALL EMPLOYEES IN OFFICE INCREASED UNDERSTANDING AND CONFIDENCE SENSE OF TRUST AND BELONGING GIVING AND RECEIVING FEEDBACK THE KINSALE ENVIRONMENT
INFORMATION TECHNOLOGY Diane Schnupp
Technology is a core competency for efficiency, accuracy, service, and data Efficiency Accuracy Service Data KINSALE CORE COMPETENCY Technology is a core competency for:
IT STRATEGIC PILLARS Be a great place to work Accelerate our technology-empowered competitive advantage Enable smart company growth
PRODUCT, DELIVERY MATURITY, & EXPERIENCE APPLICATION DEVELOPMENT ARCHITECTURE DATA IT INFRASTRUCTURE & SECURITY IT ORGANIZATION
BRANDING
36 Data Driven ApproachStrategic Accelerator Custom Designed for Our Business Processes TARGET STATE
37 TARGET STATE EXAMPLES Submission Intake Underwriting Claims
TARGET STATE BENEFITS 38 Target State Revenue Impact • quotes / UW • new product speed-to- market Cost Efficiency • manual effort • accuracy and reporting capabilities Risk Mitigation • enable scale, reliability, performance & security
CLAIMS Mark Beachy
EXCESS & SURPLUS CLAIM BUSINESS 40 Severity driven Complex multi-party litigation Litigious environment Tailored coverage forms Aggressive plaintiff bar
STRATEGIC OBJECTIVES 41 Leverage a high-performance culture to continuously improve and deliver results. Pay Only What We Owe Enhance Organization and Talent Streamline and Improve Processes Technology and Innovation Leverage Partnerships Drive High Performance Culture
42 ORGANIZATION CLAIM Casualty Specialty Property Claim Legal Compliance Product Development Fully integrated Claims Department organized both vertically and by claim type.
TALENT Reward & Retain Top Performers Continued Growth Improve Skills with Specialized Training Strategic Staffing Recruit Claim- Legal Experience • 59 high-performing team members • 48% of employees are attorneys • 55% of liability examiners are attorneys • Experienced staff averaging 13 years of industry experience • Strong retention of leaders with 8+ years with Kinsale Strategic Staffing Claim professionals are high-performing with strong claim and legal experience. 43
HIGH PERFORMANCE MODEL Risk Appetite Risk Appetite In-House Claim HandlingSpan of Control Pay What We Owe Rigorous Application of Coverage Forms Legal Partnerships Limited Reserve & Settlement Authority • Superior execution • Resolution focused • Data and process driven • Teamwork • Responsiveness • Urgency-timeliness • Owner mentality • Reward the doers High Performance Culture Philosophy of continuous improvement with an unrelenting focus on bottom-line results. 44
We handle 45% more claims with only a 21% more staffing. RESULTS 45 Claims Received Claims Closed Average Months to Close Average Paid 45% Increased Claims 21% Increased Staffing 2020 2022 Increased Productivity Continuous improvements drive increased productivity, reduced cycle times, and declining payouts.
• High volume, lower severity property damage claims • Speed & efficiency reduces claim cycle • Continuous & ongoing damage over multiple policy periods • Organized by states PROCESSES: CLAIMS TRIAGE Right Touch Right Touch • In-house experts on coverage & forms • Advice & counsel on jurisdictional nuances Construction Defect Coverage Coverage Specialization results in deep expertise and streamlined claim handling. • Streamlined processes reduce transitions • Focus on early resolution • Early identification of high-risk claims • Avoid or mitigate litigation • Timely reserve and optimum outcomes 46
TECHNOLOGY & INNOVATION 47 Proprietary Claim Platform Third Party Data Kinsale Analytics Automation & Artificial Intelligence Create technology vision Prioritize improvements Mobilize staff Collaborate closely with IT Track progress Measure business value Leveraging technology and driving innovation to improve claim results.
PARTNERSHIPS 48 Actuary Underwriting Legal Information Technology Unique Competitive Advantage Leveraging internal and external partnerships to deliver strategic objectives and outcomes.
Analytics & Actuarial Salmaan Allibhai
KINSALE IS A QUANTITATIVE COMPANY The use of data in decision-making is a key competitive advantage for us Embracing data is a fundamental part of the Kinsale culture Pricing/ Underwriting Reserving Claims Handling Capital Management Risk Management Staffing/ Budgeting
DATA IS AN INTEGRAL PART OF OUR STRATEGY We collect a lot of data • We have data on the full life cycle of a policy from when it arrives as a submission until the last dollar of a claim is paid • Data sources include Underwriting Worksheets, Policy System, Claims, and Finance We help users throughout the company consume this data • Monthly reports of key metrics • Spreadsheet and Qlik reports that allow users to filter, sort, and aggregate data • Bespoke analyses when things become complex
WE CONTINUOUSLY USE DATA TO DRIVE EFFICIENCY AND PROFITABILITY Recurring Analyses: Product Line Reviews (Pricing Analyses) Reserve Reviews Capital Adequacy Projections (BCAR) Catastrophe Modeling Reinsurance and Risk Management Reviews
EXAMPLES OF RECENT AD HOC ANALYSES Commercial Credit Submission Scoring Utilizing text mining on Claims and UW notes to refine pricing and expand our coverage offering Flat-fee agreements for California Construction Defect claims
FOCUSING ON THIRD-PARTY DATA Combined effort by Analytics & Actuarial, Underwriting, and IT to take advantage of third-party data There is a lot of data out there, and thanks to our focus on technology, we are well-positioned to utilize that data to drive efficiency and profitability Improve how we segment and price risk Automate repetitive tasks and capture valuable data 1 2
