Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 104

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 104
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, it would be inappropriate to take each of the amounts described below and add them together to estimate volatility for our reserves in total. For any one reserving line of business, the estimated variation in reserves due to changes in key indicators is a reasonable estimate of possible variation that may occur in the future. The variation discussed is not meant to be a worst-case scenario and, therefore, it is possible that future variation may be greater than the amounts shown below.

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The impact of reasonably likely changes in the two key assumptions used to estimate net loss reserves at December 31, 2024 is as follows:

Development PatternExpected Loss RatioProperty10% lowerUnchanged10% higher($ in millions)2 months slower$21.0 $38.4 $55.9 Unchanged(12.5)— 12.5 2 months faster(30.8)(21.1)(11.3)Casualty Occurrence5% lowerUnchanged5% higher6 months slower$35.5 $136.4 $237.3 Unchanged(91.6)— 91.6 6 months faster(221.7)(139.5)(57.3)Casualty Claims-Made5% lowerUnchanged5% higher6 months slower$29.7 $59.3 $88.9 Unchanged(24.2)— 24.2 6 months faster(71.3)(51.8)(32.2)

Reserve development

The amount by which estimated losses differ from those originally reported for a period is known as "development." Development is unfavorable when the losses ultimately settle for more than the amount reserved or subsequent estimates indicate a basis for reserve increases on unresolved claims. Development is favorable when losses ultimately settle for less than the amount reserved or subsequent estimates indicate a basis for reducing loss reserves on unresolved claims. We reflect favorable or unfavorable development of loss reserves in the results of operations in the period the estimates are changed. Refer to Note 7 to the consolidated financial statements for discussion on our reserve development for the years ended December 31, 2024 and 2023.

Fair value measurements

Like other accounting estimates, fair value measurements may be based on subjective information and generally involve uncertainty and judgment. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be independent, knowledgeable, able and willing to transact an