Why One Fund Is Betting $17 Million on This Specialty Insurer

Jacobson & Schmitt Advisors reported the purchase of 6,661 Kinsale Capital Group (NYSE:KNSL) shares in a January 20 SEC filing, an estimated $2.72 million trade based on quarterly average pricing.

What happened

According to a January 20 SEC filing, Jacobson & Schmitt Advisors, LLC increased its position in Kinsale Capital Group (NYSE:KNSL) by 6,661 shares during the fourth quarter. The estimated transaction value was approximately $2.72 million, based on the average closing price for the quarter. As of December 31, the position was valued at $16.78 million, up $1.37 million from the prior quarter, reflecting both the share addition and price change.

What else to know

The Kinsale Capital Group stake accounted for 2.82% of the fund’s 13F reportable AUM after the trade.

Top holdings after the filing:

• NASDAQ: IUSB: $36.26 million (6.1% of AUM)
• NYSE: APH: $33.36 million (5.6% of AUM)
• NASDAQ: AMZN: $29.88 million (5.0% of AUM)
• NASDAQ: FSV: $22.55 million (3.8% of AUM)
• NASDAQ: MBB: $21.81 million (3.7% of AUM)

As of January 20, shares of Kinsale Capital Group were priced at $405.12, down 7.6% over the prior year and underperforming the S&P 500 by about 20 percentage points

Company overview

Company snapshot

• Kinsale Capital Group offers specialty property and casualty insurance products, including commercial lines such as construction, small business, excess and general casualty, commercial property, and various liability coverages.
• The firm generates revenue through underwriting insurance policies and managing risk.
• It serves a diverse base of commercial clients across all 50 U.S. states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia, primarily via a network of independent insurance brokers.

Kinsale Capital Group is a specialty insurer with a national footprint and a focus on complex, hard-to-place risks. The company leverages deep underwriting expertise and a disciplined approach to risk selection to drive profitable growth. Its broker-driven distribution model and emphasis on niche markets provide a competitive edge in the property and casualty insurance sector.

What this transaction means for investors

At under 3% of reported assets, this addition fits neatly alongside a portfolio already anchored by diversified ETFs, mega-cap tech, and steady compounders, suggesting this is a quality tilt rather than a thematic swing. What makes the move notable, however, is the underlying business consistency at a time when many insurers are struggling to defend margins.

The company’s latest quarter underscored why disciplined specialty underwriting still works. Net income climbed to $141.6 million, or $6.09 per diluted share, up 24% year over year, and underwriting income reached $105.7 million. Meanwhile, gross written premiums grew 8.4% to $486.3 million, even as competition weighed on certain property lines. The company also repurchased $20 million worth of shares.

Shares have lagged the broader market over the past year, but fundamentals have not seemingly followed the same script. For long-term investors, this looks like a calculated allocation to a high-ROE insurer that continues to generate capital internally, repurchase shares, and compound book value without stretching for growth.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Amphenol, and Kinsale Capital Group. The Motley Fool recommends FirstService. The Motley Fool has a disclosure policy.