Kinsale Capital’s Majority Shareholder Wants to Sell 4 Million Shares

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The controlling shareholder of Henrico County-based Kinsale Capital Group Inc. is selling about half of its stake in the company.

Kinsale Capital, the parent company of a specialty property and casualty insurer that conducted an initial public offering of its stock in late July, said late Tuesday in a regulatory filing that Moelis Funds now is planning to sell 3,478,261 shares in a secondary offering.
The selling stockholder also will grant to underwriters an option to purchase up to 521,739 additional shares of the stock, the filing with the U.S. Securities and Exchange Commission said.
The filing didn’t say when the secondary offering would take place.
At Monday’s closing price of $27.48 per share, the entire offering is valued at about $109.9 million.

Moelis Funds owns about 39 percent of Kinsale Capital’s stock.
After the secondary offering is completed and if the underwriters exercise their full option to purchase additional shares, Moelis Funds would own about 19.9 percent of the stock, the filing said.
Kinsale Capital is not offering any stock in this offering and will not receive any proceeds from the sale of the shares by the selling stockholders, the filing said.
A total of 7.79 million shares were sold at $16 a share in its initial public offering. The company issued 5 million shares while the selling stockholders sold 2.59 million shares.
The company’s shares opened at $18 and closed at $18.35 on its first day of trading under the ticker symbol KNSL on the Nasdaq Global Select Market.
The company had filed registration documents on July 1 to sell stock to the public.
Kinsale Capital is the parent company of Kinsale Insurance, which focuses exclusively on the excess and surplus lines, or E&S, insurance market.
That market includes casualty and property insurance for small- and medium-size businesses that are typically not covered by standard insurance providers because of regulatory restrictions, lack of capacity or high risk.

Clients may include new businesses without established track records, businesses with high-risk operations or products, or ones located in areas with high rates of litigation.
Kinsale Insurance was founded in 2009 and had gross written premiums of $177 million in 2015. It reported a profit of $22.27 million in 2015.
The company had 143 employees as of Sept. 30.
Last week, the company reported higher profit for the third quarter as premiums and underwriting income rose. It posted a profit of $8 million for the third quarter compared with $5.9 million for the same period a year ago.
Gross written premiums were $47.8 million for the third quarter, up 4.4 percent from $45.8 million for same time in 2015.

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