Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 146

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 146
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 outstanding liabilitiesProperty$116,112 Casualty - claims made262,470 Casualty - occurrence1,385,847 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance1,764,429 Reinsurance recoverable on unpaid claimsProperty99,478 Casualty - claims made21,051 Casualty - occurrence203,463 Allowance for credit losses (932)Total reinsurance recoverable on unpaid claims323,060 Unallocated claims adjustment expenses197,247 Allowance for credit losses 932 Gross liability for unpaid claims and claim adjustment expense$2,285,668 

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8.     Reinsurance

The Company purchases reinsurance from other insurance companies ("reinsurers") in order to limit its exposure to large losses and enable it to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer that receives a portion of the premium. The ceding of insurance does not legally discharge the Company from its primary liability for the full amount of the policy coverage, and therefore the Company will be required to pay the loss and bear collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement.The following table summarizes the effect of reinsurance on premiums written and earned:Year Ended December 31,202420232022(in thousands)Written:Direct$1,870,341 $1,568,815 $1,102,092 Ceded(392,993)(304,185)(165,282)Net written$1,477,348 $1,264,630 $936,810 Earned:Direct$1,743,243 $1,367,141 $950,145 Ceded(392,773)(294,604)(156,026)Net earned$1,350,470 $1,072,537 $794,119 Incurred losses and loss adjustment expenses were net of reinsurance recoverables (ceded incurred losses and loss adjustment expenses) of $125.4 million, $115.9 million and $117.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.Reinsurance balancesThe following table presents reinsurance recoverables on paid and unpaid losses as of December 31, 2024 and 2023:December 31,