Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 44

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1
Chunk 44
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 2024:

Nine Months Ended September 30,20252024($ in thousands)Losses and Loss Adjustment Expenses% of Sum of Earned Premiums and Fee IncomeLosses and Loss Adjustment Expenses% of Sum of Earned Premiums and Fee IncomeLoss ratio:Current accident year before catastrophe losses$695,851 58.4 %$590,810 58.1 %Current year catastrophe losses27,499 2.3 %17,613 1.7 %Effect of prior year development(45,853)(3.8)%(28,072)(2.7)%Total$677,497 56.9 %$580,351 57.1 %

The loss ratio was 56.9% for the nine months ended September 30, 2025 compared to 57.1% for the nine months ended September 30, 2024. The decrease in the loss ratio for the first nine months of 2025 compared to the first nine months of 2024 was due primarily to higher relative net favorable development of prior-year loss reserves, particularly in our property lines of business, offset in part by higher catastrophe losses incurred in the period, primarily related to the Palisades Fire. 

During the nine months ended September 30, 2025, prior accident years developed favorably by $45.9 million, of which $53.8 million was attributable to the 2020 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 in our construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures. 

During the nine months ended September 30, 2024, prior accident years developed favorably by $28.1 million, of which $45.6 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 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation and from the 2020 accident year due to a large property claim. Incurred losses and loss adjustment expenses for the nine months ended September 30, 2024 included $17.6 million of net catastrophe losses