Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 15

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 15
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insurance contracts discussed above, we may retain funds due from reinsurers as security for those recoverable balances. 

Investments

Investment income is an important component of our earnings. We collect premiums from our insureds and invest a portion of these funds until claims are paid. Our cash and invested assets generally consist of fixed-maturity securities, equity securities, short-term investments and cash equivalents. We seek to maximize investment returns using investment guidelines that stress prudent allocation among cash and cash equivalents, fixed-maturity securities and, to a lesser extent, equity securities.

Our fixed-maturity securities are classified as "available-for-sale" and are carried at fair value with unrealized gains and losses on those securities reported, net of tax, as a separate component of accumulated other comprehensive income (loss). Our equity securities are carried at fair value and changes in the fair value of these investments are recognized in net income. Fair value generally represents quoted market value prices for securities traded in the public market or prices analytically determined using bid or closing prices for securities not actively traded in the public marketplace. Short-term investments, if any, are reported at amortized cost and include investments that are both readily convertible to known amounts of cash and have maturities of 12 months or less upon acquisition by us.

In December of 2022, we acquired real estate adjacent to our current headquarters for $76.6 million. Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation. During 2023, we sold a portion of our real estate investment for approximately $62.0 million and determined we will occupy a portion for future office space expansion. The remaining $15.0 million represents the portion of such assets we held at December 31, 2024 for investment purposes.

10

Our cash and invested assets totaled $4.1 billion at December 31, 2024 and $3.1 billion at December 31, 2023, and are summarized as follows:

December 31, 2024December 31, 2023Carrying Value% of PortfolioCarrying Value% of Portfolio($ in thousands)Fixed maturities - at fair value:U.S. Treasury securities and obligations of U.S. government agencies$15,048 0.4 %$27,254 0.9 %Obligations of states, municipalities and political subdivisions146,304 3.6 %171,044 5.5 %Corporate and other securities1,989