Company: KNSL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001669162-25-000043
Chunk: 140

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Item 2
Chunk 140
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 capital and surplus, (4) changes in our risk appetite and (5) the cost and availability of reinsurance coverage. 

To manage our natural catastrophe exposure, we use stochastic models to analyze the risk of severe losses. We measure exposure to these losses in terms of probable maximum loss ("PML"), which is an estimate of the amount of loss we would expect to meet or exceed once in a given number of years (referred to as the return period). When managing our catastrophe exposure, we generally focus on the 100-year and the 250-year return periods. 

The following is a summary of our significant reinsurance programs as of June 30, 2025:

Line of Business CoveredCompany Policy LimitReinsurance CoverageCompany RetentionProperty (1)Up to $10.0 million per occurrence40% up to $443.0 million per catastrophe60% of property lossesProperty – catastrophe (2)N/A$250.0 million excess of $75.0 million$75.0 million per catastrophePrimary casualty (3)Up to $10.0 million per occurrence$8.0 million excess of $2.0 million$2.0 million per occurrenceExcess casualty (4)Up to $10.0 million per occurrenceVariable quota share$3.0 million per occurrence as described in note (4) below

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(1)    Our property quota share reinsurance reduces the financial impact of property losses up to a loss recovery of $177.2 million for an event. This reinsurance is not applicable to any individual policy with a limit of $2.0 million or less.

(2)    Our property catastrophe reinsurance reduces the financial impact of a catastrophe event involving multiple claims and policyholders. Our property catastrophe reinsurance includes a reinstatement provision which requires us to pay reinstatement premiums after a loss has occurred in order to preserve coverage. Including the reinstatement of coverage, the maximum aggregate loss recovery limit is $500.0 million. This coverage applies after the coverage provided by the commercial property quota share treaty.

(3)    This reinsurance is not applicable to any individual policy with a per-occurrence limit of $2.0 million or less.

(4)    For excess casualty policies with a per-occurrence limit higher than $3.0 million, the ceding percentage varies such that the retention is always $3.0 million or less. For example, for a $5.0 million limit excess policy, our