Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 129

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 129
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 more likely than not that the Company will be required to sell the security before recovery of its amortized cost, an impairment is recognized in net income based on the fair value of the security at the time of assessment. For fixed-maturity securities that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before recovery of its amortized cost, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. Inputs into the present value cash flow analysis include default rates and recoverability rates based on credit rating. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the impairment, which is recognized in net income through an allowance for credit losses. Any remaining decline in fair value represents the noncredit portion of the impairment, which is recognized in other comprehensive income. The Company reports investment income due and accrued separately from fixed-maturity securities, available for sale, and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through earnings at the time the issuer of the bond defaults or is expected to default on payments.

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As of December 31, 2024, the Company's credit loss review resulted in an allowance for credit losses on four securities. The following table presents changes in the allowance for expected credit losses on available-for-sale securities:Years Ended December 31,20242023(in thousands)Beginning balance$553 $366 Increase to allowance from securities for which credit losses were not previously recorded3 1 Reduction from securities sold during the period(479)(12)Net (decrease) increase from securities that had an allowance at the beginning of the period(50)198 Ending balance$27 $553 The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position:December 31, 2024Less than 12 Months12 Months or LongerTotalEstimated Fair ValueGross Unrealized  LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized  Losses(in thousands)Fixed maturities:U.S. Treasury securities and obligations of U.S. government agencies$838 $(13)$14,210 $(404)$15,048 $(417)Obl