Company: KNSL
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001669162-25-000027
Chunk: 92

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 92
---
eding company's losses arising out of a defined class of business in exchange for a corresponding percentage of premiums, net of a ceding commission. In excess of loss reinsurance, the reinsurer agrees to assume all or a portion of the ceding company's losses, in excess of a specified amount. Under excess of loss reinsurance, the premium payable to the reinsurer is negotiated by the parties based on their assessment of the amount of risk being ceded to the reinsurer because the reinsurer does not share proportionately in the ceding company's losses. 

We renew our reinsurance treaties annually. During each renewal cycle, there are a number of factors we consider when determining our reinsurance coverage, including (1) plans to change the underlying insurance coverage we offer, (2) trends in loss activity, (3) the level of our 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 March 31, 2025:

Line of Business CoveredCompany Policy LimitReinsurance CoverageCompany RetentionProperty (1)Up to $10.0 million per occurrence50% up to $379.8 million per catastrophe50% of commercial property lossesProperty – catastrophe (2)N/A$175.0 million excess of $60.0 million$60.0 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$2.5 million per occurrence as described in note (4) below

38

Table of Contents

(1)    Our property quota share reinsurance reduces the financial impact of property losses on our commercial property, small business property, high value homeowners and inland marine policies up to a loss recovery of $189.9 million for an event. This reinsurance is not applicable to any individual policy with a limit