Kinsale Captial Group, Inc. (NASDAQ:KNSL) is a specialty insurance company that focuses exclusively on excess and surplus lines, which includes risks that are unique or hard to place in the standard insurance market. The company, which went public in July 2016, outperformed in the fourth quarter after reporting excellent financial results. Earnings were much higher than expected thanks to strong underwriting and favorable reserve development. The stock also benefited from a secondary offering that increased float and a sector rotation into small-cap financials following the U.S. elections on expectations for faster economic growth, higher interest rates, and lower corporate tax rates. We continue to own the stock because of Kinsale’s niche market focus, industry-leading growth, industry-leading ROE, and experienced management team.
From Baron Discovery Fund's fourth quarter 2016 commentary.
