Matt Frankel

Kinsale has never had a down year.

It looks like 2025 is going to be its first one.

I've owned the stock for a long time.

It's down about 25% from its 52-week high, despite pretty excellent results from the business still.

There's a big question mark about succession, which I think is giving a lot of investors fear right now.

The chief operating officer, essentially the second in command, Brian Haney, who was thought of as the heir to the Kinsale empire, announced his retirement.

When Michael Kehoe eventually steps down as CEO,

Then what?

Kinsella is a deep bench, and it's C-suite.

Insurance stocks, if you look at all of them, they're down right now.

It's not down for no reason.

Falling interest rates, for example, are going to hurt investment income and things like that.

But it's an incredible business that's trading at a rare discount.

For me, and I'm glad John brought up a quote from their management, because for me also, the biggest takeaways might be qualitative, not quantitative.

For example, Jensen Huang said that the cloud GPUs that Nvidia makes, John mentioned a couple of their products, are essentially, quote, sold out, and that compute demand keeps accelerating and compounding across training and inference.

To follow up on what John mentioned with profitability,

It's worth noting that in these margins, like you said, keep getting better somehow.

It seems like they can't, and then they do, which means earnings are growing faster than revenue.

Earnings in the third quarter grew at 67% year-over-year versus 62% quarterly revenue growth.

It's not only a story of growing revenue, it's growing profitability as well.