Kinsale Capital Group Announces Acquisition of Real Estate in Richmond, Virginia

Rhea-AI Summary

Kinsale Capital Group, Inc. (NYSE: KNSL) has acquired real estate adjacent to its Richmond, Virginia headquarters for $76.2 million through a wholly owned subsidiary. The property consists of two office buildings over 580,000 square feet on approximately 29 acres of land, mostly leased long-term. This acquisition aims to provide operational expansion flexibility and investment potential, funded mainly via the company's unsecured revolving credit facility.

Positive

• Acquisition of 580,000 square feet of office space for $76.2 million presents expansion opportunities.
• Property leased long-term provides immediate cash flow stability.
• Strategic location adjacent to current headquarters enhances operational efficiency.

Negative

• Acquisition funded primarily through revolving credit could increase financial leverage.
• Potential integration challenges with new property management could arise.

RICHMOND, Va.--(BUSINESS WIRE)-- Kinsale Capital Group, Inc. (NYSE: KNSL) (the “Company”) today announced that it has acquired real estate property adjacent to its current headquarters in Richmond, Virginia for $76.2 million, through a wholly owned subsidiary. The property is comprised of two office buildings totaling over 580,000 square feet situated on approximately 29 acres of land. The majority of the space is subject to a long-term lease with the seller. The property is expected to provide flexibility for future expansion of the Company’s operations as well as serve as an investment opportunity. The acquisition was funded primarily through a draw from the Company’s unsecured revolving credit facility.

About Kinsale Capital Group, Inc.

Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “project,” “plan,” “estimate” or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company’s actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company’s estimates; adverse economic factors; a decline in the Company’s financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company’s business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company’s investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company’s filings with the SEC. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221216005223/en/

Kinsale Capital Group, Inc.

Bryan Petrucelli

Executive Vice President, Chief Financial Officer and Treasurer

804-289-1272

ir@kinsalecapitalgroup.com

Source: Kinsale Capital Group, Inc.

FAQ

What is the purpose of Kinsale Capital Group's acquisition of real estate?

The acquisition aims to provide operational expansion flexibility and serve as an investment opportunity.

What is the value of the real estate acquisition by Kinsale Capital Group?

The acquisition is valued at $76.2 million.

How big is the property acquired by Kinsale Capital Group?

The property consists of two office buildings totaling over 580,000 square feet.

What is the expected impact of Kinsale Capital Group's real estate acquisition?

The acquisition is expected to enhance operational flexibility and provide investment potential.