Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 135

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 2
Chunk 135
---
 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 nine months ended September 30, 2024, prior accident years developed favorably by $28.1 million, of which $45.6 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 primarily from the 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation and from the 2020 accident year due to a large property claim. Incurred losses and loss adjustment expenses for the nine months ended September 30, 2024 included $17.6 million of net catastrophe losses primarily related to Hurricanes Helene, Francine and Beryl and tornadoes in the Midwest. 

41

Table of Contents

Expense ratio

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

Nine 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 incurred120,682 10.1 %98,686 9.7 %Other underwriting expenses124,250 10.5 %109,274 10.8 %Total$244,932 20.6 %$207,960 20.5 %

The expense ratio was 20.6% for the nine months ended September 30, 2025 compared to 20.5% for the nine months ended September 30, 2024. The increase in the expense ratio was primarily due to lower ceding commissions due to increased retention on our reinsurance treaties offset in part by routine variability in other underwriting expenses. Direct commissions paid as a percentage of gross written premiums was 14.8% and 14.7% for the nine months ended September 30, 2025 and 2024, respectively. 

Investing results

The following table summarizes net investment income, change in the fair value of equity securities and net realized investment gains (losses) for the nine months ended September 30, 202