Company: KNSL
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001669162-25-000027
Chunk: 85

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 85
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 three months ended March 31, 2025, prior accident years developed favorably by $14.6 million, of which $16.7 million was attributable to the 2021 through 2024 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 primarily from the 2017 through 2019 accident years and more conservative actuarial assumptions in the 2021 through 2023 accident years for lines of business exposed to construction liability. 

During the three months ended March 31, 2024, prior accident years developed favorably by $8.4 million, of which $16.3 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 primarily from the 2018 and 2019 accident years due to construction defect claims and from the 2020 accident year due to a large property claim.

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Table of Contents

Expense ratio

The following table summarizes the components of the expense ratio for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,20252024($ in thousands)Underwriting Expenses% of Sum of Earned Premiums and Fee IncomeUnderwriting Expenses% of Sum of Earned Premiums and Fee IncomeNet commissions incurred35,680 9.5 %31,539 9.9 %Other underwriting expenses39,232 10.5 %34,214 10.8 %Total$74,912 20.0 %$65,753 20.7 %

The expense ratio was 20.0% for the three months ended March 31, 2025 compared to 20.7% for the three months ended March 31, 2024. The decrease in the expense ratio was primarily due to lower relative net commissions due to higher ceding commissions earned under the commercial property quota share treaty as a result of an increase to the ceding commission rate effective with the June 2024 renewal. Direct commissions paid as a percentage of gross written premiums was 14.8% and 14.7% for the three months ended March 31, 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 for