Company: KNSL
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001669162-25-000027
Chunk: 40

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 1
Chunk 40
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 below, we use reinsurance to help manage the risk that we take related to the issuance of our policies. We cede, or pay out, part of the premiums we receive to our reinsurers and collect cash back when losses subject to our reinsurance coverage are paid.

The timing of our cash flows from operating activities can vary among periods due to the timing by which payments are made or received. Some of our payments and receipts, including loss settlements and subsequent reinsurance receipts, can be significant, so their timing can influence cash flows from operating activities in any given period. Management believes that cash receipts from premiums, proceeds from investment sales and redemptions and investment income are sufficient to cover cash outflows in the foreseeable future. 

Our cash flows for the three months ended March 31, 2025 and 2024 were:

Three Months Ended March 31,20252024(in thousands)Cash and cash equivalents provided by (used in):Operating activities$229,779 $210,359 Investing activities(180,961)(192,514)Financing activities(20,005)(8,407)Change in cash and cash equivalents$28,813 $9,438 

Net cash provided by operating activities was approximately $229.8 million for the three months ended March 31, 2025 compared to $210.4 million for the same period in 2024. This increase was largely driven by higher premium volume and the timing of claim payments and reinsurance recoveries.

Net cash used in investing activities was $181.0 million for the three months ended March 31, 2025 compared to $192.5 million for the three months ended March 31, 2024. Net cash used in investing activities during the first three months of 2025 included purchases of fixed-maturity securities of $369.5 million, which included primarily corporate bonds and asset- and mortgage-backed securities. During the first three months of 2025, we received proceeds of $107.0 million from sales of fixed-maturity securities, largely corporate bonds, asset-backed securities and, to a lesser extent, municipal securities and $144.7 million from redemptions and maturities of asset- and mortgage-backed securities and corporate bonds. For the three months ended March 31, 2025, purchases of equity securities of $42.7 million consisted primarily of common stocks. During the first three months of 2025, we received proceeds of $11.6 million from sales of common