Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 136

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 136
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There were no assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2024 or 2023. The carrying amount of the Company's fixed-rate senior notes was $175.0 million, less debt issuance cost, and the corresponding estimated fair value was $168.6 million and $171.6 million at December 31, 2024 and 2023, respectively. The fair value measurement was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under the Company's credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2. The estimated fair value of outstanding borrowings under the Company's revolving Credit Facility approximated its carrying value at December 31, 2024 and 2023. See Note 11 for further information regarding the Company's debt arrangements.

The Company holds cash equivalents that are managed as part of its investment portfolio and, due to the short-term maturities of these assets, the carrying value of these investments approximates fair value. The Company held cash equivalents of $16.1 million and $11.8 million at December 31, 2024 and 2023, respectively. 

4.     Deferred policy acquisition costs

The following table presents the amounts of policy acquisition costs deferred and amortized for the years ended:Year Ended December 31,202420232022(in thousands)Balance, beginning of year$88,395 $61,594 $41,968 Policy acquisition costs deferred:Direct commissions274,124 227,755 160,523 Ceding commissions(120,459)(88,449)(48,022)Other underwriting and policy acquisition costs14,215 10,982 8,155 Policy acquisition costs deferred167,880 150,288 120,656 Amortization of net policy acquisition costs(147,012)(123,487)(101,030)Balance, end of year$109,263 $88,395 $61,594 Amortization of net policy acquisition costs is included in underwriting, acquisition and insurance expense in the accompanying consolidated statements of income and comprehensive income.

5.     Underwriting, acquisition and insurance expenses

Underwriting, acquisition and insurance expenses consist of the following:Year Ended December 31,202420232022(in thousands)Underwriting, acquisition and insurance expenses incurred:Direct commissions