Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 98

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 98
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 100.0 %

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The amortized cost and estimated fair value of our available-for-sale investments in fixed-maturity securities summarized by contractual maturity as of December 31, 2024, were as follows:

December 31, 2024Amortized CostEstimated Fair Value% of Fair Value($ in thousands)Due in one year or less$415,494 $415,674 11.8 %Due after one year through five years1,070,687 1,058,729 29.9 %Due after five years through ten years513,549 496,044 14.0 %Due after ten years222,001 180,395 5.1 %Asset-backed securities729,658 732,742 20.7 %Residential mortgage-backed securities502,121 448,874 12.7 %Commercial mortgage-backed securities209,521 205,105 5.8 %Total fixed maturities$3,663,031 $3,537,563 100.0 %

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower.

Restricted investments

In order to conduct business in certain states, we are required to maintain letters of credit or assets on deposit to support state-mandated insurance regulatory requirements and to comply with certain third-party agreements. Assets held on deposit or in trust accounts are primarily in the form of cash or certain high-grade securities. The fair value of our restricted assets was $3.7 million and $5.8 million at December 31, 2024 and 2023, respectively.

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Reconciliation of Non-GAAP Financial Measures

Reconciliation of underwriting income

Underwriting income is a non-GAAP financial measure that we believe is useful in evaluating our underwriting performance without regard to investment income. Underwriting income is defined as net income excluding net investment income, the net change in the fair value of equity securities, net realized investment gains and losses, change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. We use underwriting income as an internal performance measure in the management of our operations because we believe it gives us and users of our financial information useful insight into our results of operations and our underlying business performance. Underwriting income should