Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 14

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 14
---
urer to honor its obligation could result in losses to us, and therefore, we established an allowance for credit risk based on historical analysis of credit losses for highly rated companies in the insurance industry. In formulating our reinsurance programs, we are selective in our choice of reinsurers and we consider numerous factors, the most important of which are the financial stability of the reinsurer, its history of responding to claims and its overall reputation. In an effort to minimize our exposure to the insolvency of our reinsurers, we review the financial condition of each reinsurer annually. In addition, we continually monitor for rating downgrades involving any of our reinsurers. At December 31, 2024, all reinsurance contracts that our insurance subsidiary was party to were with companies with A.M. Best ratings of "A-" (Excellent) or better. At December 31, 2024, we recorded an allowance for credit losses of $0.9 million related to our reinsurance balances. 

We had reinsurance recoverables on unpaid losses of $323.1 million at December 31, 2024, and recoverables on paid losses of $14.8 million at December 31, 2024. The following table provides a summary of our top ten reinsurers, based on the amount recoverable, at December 31, 2024:

ReinsurersA.M. Best RatingReinsurance Recoverable($ in thousands)Munich Reinsurance America, Inc.A+$83,828 General Reinsurance CorporationA++37,561 Swiss Reinsurance America Corp.A+34,262 SCOR Reinsurance Co.A29,975 Hannover Rück SEA+20,476 Odyssey Reinsurance Co.A+20,013 Arch Reinsurance Co.A+19,227 Allied World Insurance Co.A18,617 Arch Reinsurance Ltd.A+18,182 Berkley Insurance Co.A+17,603 Total for top ten reinsurers299,744 All others, net of allowance for credit losses38,147 Total reinsurance recoverable$337,891 

We did not have reinsurance recoverables greater than $14.2 million at December 31, 2024 from any individual reinsurer other than the ten listed above.

9

To reduce credit exposure to reinsurance recoverable balances, we obtain letters of credit from certain reinsurers that are not authorized as reinsurers under U.S. state insurance regulations. In addition, under the terms of our re