Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 98

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 8
Chunk 98
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 September 30, 2024, prior accident years developed favorably by $10.1 million, of which $14.9 million was attributable to the 2021 through 2023 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation. Incurred losses and loss adjustment expenses for the three months ended September 30, 2024 included $13.6 million of net catastrophe losses primarily related to Hurricanes Helene, Francine and Beryl and tornadoes in the Midwest. 

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Table of Contents

Expense ratio

The following table summarizes the components of the expense ratio for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,20252024($ in thousands)Underwriting Expenses% of Sum of Earned Premiums and Fee IncomeUnderwriting Expenses% of Sum of Earned Premiums and Fee IncomeNet commissions incurred45,275 10.8 %33,742 9.4 %Other underwriting expenses43,148 10.2 %36,397 10.2 %Underwriting, acquisition and insurance expenses$88,423 21.0 %$70,139 19.6 %

The expense ratio was 21.0% for the three months ended September 30, 2025 compared to 19.6% for the three months ended September 30, 2024. The increase in the expense ratio was primarily due to lower ceding commissions as a result of increased retention on our reinsurance treaties effective with the June 2025 renewal. Direct commissions paid as a percent of gross written premiums was 14.8% and 14.7% for the three months ended September 30, 2025 and 2024, respectively. 

Investing results

The following table summarizes net investment income, change in the fair value of equity securities and net realized investment gains (losses) for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,($ in thousands)20252024ChangeInterest from fixed-maturity securities$47,043 $38,400 $8,643 Dividends from equity securities2,019 1,494 525 Cash equivalents and short-term investments1,774