Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 129

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 2
Chunk 129
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.7)%(10,125)(2.8)%Total$227,162 53.9 %$200,240 56.1 %

The loss ratio was 53.9% for the three months ended September 30, 2025 compared to 56.1% for the three months ended September 30, 2024. The decrease in the loss ratio in the third quarter of 2025 compared to the third quarter of 2024 was due primarily to lower catastrophe losses incurred and higher relative net favorable development of loss reserves from prior accident years, particularly in our property lines of business. 

During the three months ended September 30, 2025, prior accident years developed favorably by $15.8 million, of which $18.0 million was attributable to the 2021 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 three months ended September 30, 2024, prior accident years developed favorably by $10.1 million, of which $14.9 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 largely from the 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation. Incurred losses and loss adjustment expenses for the three months ended September 30, 2024 included $13.6 million of net catastrophe losses primarily related to Hurricanes Helene, Francine and Beryl and tornadoes in the Midwest. 

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Table of Contents

Expense ratio

The following table summarizes the components of the expense ratio for the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,20252024($ in thousands)Underwriting Expenses% of Sum of Earned Premiums and Fee IncomeUnderwriting Expenses% of Sum of Earned Premiums and Fee IncomeNet commissions incurred45,275 10.8 %33,742 9.4 %Other underwriting expenses43,148 10.2 %36,397 10.2 %Underwriting, acquisition