OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” to Kinsale Capital Group, Inc. (Kinsale Capital) (headquartered in Richmond, VA)(NASDAQ:KNSL). The outlook assigned to this Credit Rating (rating) is stable.
Concurrently, A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term ICR of “a-” of Kinsale Insurance Company (Kinsale) (Little Rock, AR). The outlook of these ratings is stable.
The rating assigned to Kinsale Capital is based on its role as the ultimate parent holding company for Kinsale. As of Dec. 31, 2016, debt-to-capital and debt-to-tangible capital ratios (excluding other comprehensive income/loss) are notably favorable, while interest coverage and cash flow for the parent is exceptionally strong.
The rating affirmations reflect Kinsale’s solid risk-adjusted capitalization and strong operating results. The ratings also take into account the company’s conservative operating strategy since it commenced operations in 2010 and the management team’s strong track record.
These factors are partially offset by the challenges associated with managing growth in the current competitive market conditions for surplus lines insurers. A.M. Best will closely monitor Kinsale’s growth initiatives to ensure that they are effectively aligned with the necessary capital to execute the plan.
The ratings may be considered for positive movement following a period of progression in operating performance. Negative rating action could occur if the company’s actual results fall demonstrably short of projections or if there is deterioration in the company’s risk-adjusted capitalization.
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