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What changed in Kinsale Capital Group, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Kinsale Capital Group, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+271 added−262 removedSource: 10-K (2026-02-20) vs 10-K (2025-02-21)

Top changes in Kinsale Capital Group, Inc.'s 2025 10-K

271 paragraphs added · 262 removed · 230 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

79 edited+9 added−6 removed156 unchanged
Biggest changeYear Ended December 31, 2024 2023 2022 ($ in thousands) Commercial: Commercial Property $ 456,170 24.4 % $ 411,956 26.3 % $ 181,505 16.5 % Excess Casualty 245,137 13.1 % 194,049 12.4 % 147,485 13.4 % Small Business Casualty 195,593 10.5 % 174,080 11.1 % 149,366 13.6 % General Casualty 169,162 9.0 % 118,745 7.6 % 69,784 6.3 % Construction 148,333 7.9 % 137,887 8.8 % 122,524 11.1 % Allied Health 83,058 4.5 % 67,808 4.3 % 58,839 5.4 % Small Business Property 76,800 4.1 % 43,893 2.8 % 21,002 1.9 % Products Liability 67,035 3.6 % 61,786 3.9 % 60,374 5.5 % Entertainment 58,506 3.1 % 39,218 2.5 % 22,268 2.0 % Energy 42,710 2.3 % 38,637 2.5 % 32,217 2.9 % All other commercial lines 278,903 14.9 % 242,279 15.4 % 202,178 18.3 % Total commercial 1,821,407 97.4 % 1,530,338 97.6 % 1,067,542 96.9 % Personal: High Value Homeowners 26,844 1.4 % 14,295 0.9 % 3,261 0.3 % Personal Insurance 22,090 1.2 % 24,182 1.5 % 31,289 2.8 % Total personal $ 48,934 2.6 % $ 38,477 2.4 % $ 34,550 3.1 % Total gross written premiums $ 1,870,341 100.0 % $ 1,568,815 100.0 % $ 1,102,092 100.0 % Our Competitive Strengths We believe that our competitive strengths include: Exclusive focus on the E&S market.
Biggest changeYear Ended December 31, 2025 2024 2023 ($ in thousands) Commercial: Commercial Property $ 374,451 18.9 % $ 456,170 24.4 % $ 411,956 26.3 % Excess Casualty 276,998 14.0 % 245,137 13.1 % 194,049 12.4 % General Casualty 207,888 10.5 % 169,162 9.0 % 118,745 7.6 % Small Business Casualty 202,412 10.2 % 195,593 10.5 % 174,080 11.1 % Construction 147,601 7.5 % 148,558 7.9 % 137,902 8.8 % Small Business Property 102,413 5.2 % 76,800 4.1 % 43,893 2.8 % Allied Health 96,982 4.9 % 83,058 4.5 % 67,808 4.3 % Entertainment 70,049 3.6 % 55,168 2.9 % 36,566 2.3 % Products Liability 67,883 3.4 % 67,035 3.6 % 61,786 3.9 % Commercial Auto 48,721 2.5 % 35,047 1.9 % 19,050 1.2 % All other commercial lines 321,984 16.3 % 289,679 15.5 % 264,503 16.9 % Total commercial 1,917,382 97.0 % 1,821,407 97.4 % 1,530,338 97.6 % Personal: High Value Homeowners 36,062 1.8 % 26,844 1.4 % 14,295 0.9 % Personal Insurance 23,727 1.2 % 22,090 1.2 % 24,182 1.5 % Total personal $ 59,789 3.0 % $ 48,934 2.6 % $ 38,477 2.4 % Total gross written premiums $ 1,977,171 100.0 % $ 1,870,341 100.0 % $ 1,568,815 100.0 % Our Competitive Strengths We believe that our competitive strengths include: Exclusive focus on the E&S market.
We also believe that our digital environment allows us to engage fewer employees in policy administration. We aim to issue quotes for the majority of new business submissions we receive. For certain submissions, we preemptively offer additional quotes for additional coverage. For example, if we receive a submission requesting primary coverage, we may also issue a quote for excess coverage.
We also believe that our digital environment allows us to engage fewer employees in policy administration. We aim to issue quotes for the majority of new business submissions we receive. For certain submissions, we preemptively offer additional coverage. For example, if we receive a submission requesting primary coverage, we may also offer excess coverage.
Our investment policy also imposes strict requirements for credit quality, with a minimum average credit quality of the portfolio being rate d "AA-" or higher by Standard & Poor's or the equivalent rating from another nationally recognized rating agency. Our investment policy also imposes restrictions on concentrations of securities by class and issuer.
Our investment policy also imposes requirements for credit quality, with a minimum average credit quality of the portfolio being rate d "AA-" or higher by Standard & Poor's or the equivalent rating from another nationally recognized rating agency. Our investment policy also imposes restrictions on concentrations of securities by class and issuer.
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.
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 that requires us to pay reinstatement premiums after a loss has occurred in order to preserve coverage.
In an effort to minimize our exposure to the insolvency of our reinsurers, we review the financial condition of each reinsurer annually. In addition, we continually monitor for rating downgrades involving any of our reinsurers. At December 31, 2024, all reinsurance contracts that our insurance subsidiary was party to were with companies with A.M.
In an effort to minimize our exposure to the insolvency of our reinsurers, we review the financial condition of each reinsurer annually. In addition, we continually monitor for rating downgrades involving any of our reinsurers. At December 31, 2025, all reinsurance contracts that our insurance subsidiary was party to were with companies with A.M.
Claims Our claims department consisted of approximately 90 claims professionals who had an average of 9 years of claims experience in the industry as of December 31, 2024. Our Chief Claims Officer has over 30 years of litigation and claims experience in large commercial insurance claims departments. Our claims department is fully integrated with our other functional departments.
Claims Our claims department consisted of approximately 90 claims professionals who had an average of 9 years of claims experience in the industry as of December 31, 2025. Our Chief Claims Officer has over 30 years of litigation and claims experience in large commercial insurance claims departments. Our claims department is fully integrated with our other functional departments.
Including the reinstatement of coverage, the maximum aggregate loss recovery limit is $350.0 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.
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.
The E&S, or non-admitted, market has historically operated at lower loss ratios and higher margins, and has grown direct premiums written more quickly than the standard, or admitted, market. From 2001 to 2023, A.M. Best Company's ("A.M.
The E&S, or non-admitted, market has historically operated at lower loss ratios and higher margins, and has grown direct premiums written more quickly than the standard, or admitted, market. From 2001 to 2024, A.M. Best Company's ("A.M.
No other broker accounted for more than 10% of our gross written premiums in the year ended December 31, 2024. It is important to us that we maintain excellent relationships with our brokers.
No other broker accounted for more than 10% of our gross written premiums in the year ended December 31, 2025. It is important to us that we maintain excellent relationships with our brokers.
These amendments pave the way for state legislatures to bring their credit for reinsurance laws into compliance with the Covered Agreement's zero reinsurance collateral provisions by September 2022, thereby avoiding a potential federal preemption of these laws.
These amendments paved the way for state legislatures to bring their credit for reinsurance laws into compliance with the Covered Agreement's zero reinsurance collateral provisions by September 2022, thereby avoiding a potential federal preemption of these laws.
We continually monitor and adjust our reserves as necessary using new information on reported claims and a variety of statistical techniques. Anticipated inflation is reflected implicitly in the reserving process through analysis of cost trends and the review of historical development. We do not discount our reserves to reflect the estimated present value.
We continually monitor and adjust our reserves as necessary using new information on reported claims and a variety of statistical techniques. Anticipated inflation is reflected implicitly in the reserving process through analysis of cost trends and the 7 Table of Contents review of historical development. We do not discount our reserves to reflect the estimated present value.
We manage catastrophe exposure through: 7 Table of Contents • careful and disciplined underwriting, • purchasing extensive reinsurance protection from financially strong counterparties, • analyzing results of catastrophe modeling for our business portfolio on monthly basis, and • limiting the concentration of property business by geographic area to reduce loss exposure from extreme events.
We manage catastrophe exposure through: • careful and disciplined underwriting, • purchasing extensive reinsurance protection from financially strong counterparties, • analyzing results of catastrophe modeling for our business portfolio on monthly basis, and • limiting the concentration of property business by geographic area to reduce loss exposure from extreme events.
R. Berkley Corporation. Regulation Insurance regulation We are regulated by insurance regulatory authorities in the states in which we conduct business. State insurance laws and regulations generally are designed to protect the interests of policyholders, consumers and claimants rather than stockholders or other investors.
Regulation Insurance regulation We are regulated by insurance regulatory authorities in the states in which we conduct business. State insurance laws and regulations generally are designed to protect the interests of policyholders, consumers and claimants rather than stockholders or other investors.
For policies for which we also write an underlying primary limit, the combined retention on the primary and excess policies would not exceed $2.5 million. This reinsurance is not applicable to any individual policy with a per-occurrence limit of $2.5 million or less. Reinsurance contracts do not relieve us from our obligations to policyholders.
For policies for which we also write an underlying primary limit, the combined retention on the primary and excess policies would not exceed $3.0 million. This reinsurance is not applicable to any individual policy with a per-occurrence limit of $3.0 million or less. Reinsurance contracts do not relieve us from our obligations to policyholders.
In 2024, Aspera distributed 1.3% of Kinsale’s premiums, primarily manufactured housing risks within our personal insurance division. Kinsale does not grant its independent brokers any underwriting or claims authority. We select our brokers based on management's review of the experience, knowledge and business plan of each broker.
In 2025, Aspera distributed 1.2% of Kinsale’s premiums, primarily manufactured housing risks within our personal insurance division. Kinsale does not grant its independent brokers any underwriting or claims authority. We select our brokers based on management's review of the experience, knowledge and business plan of each broker.
In particular, our efficient platform allows us to provide a higher level of service to our brokers and to target smaller accounts which we believe are generally subject to less competition. For the year ended December 31, 2024, our expense ratio was 20.6%. Fully integrated claims management.
In particular, our efficient platform allows us to provide a higher level of service to our brokers and to target smaller accounts which we believe are generally subject to less competition. For the year ended December 31, 2025, our expense ratio was 20.8%. Fully integrated claims management.
Commissions are an important part of that relationship, but brokers will also typically consider the ultimate price to the insured, and the service and expertise offered by the carrier when determining where to place their business. In 2024, we paid an average commission to our brokers of 14.7% of gross written premiums.
Commissions are an important part of that relationship, but brokers will also typically consider the ultimate price to the insured, and the service and expertise offered by the carrier when determining where to place their business. In 2025, we paid an average commission to our brokers of 14.8% of gross written premiums.
However, as of December 31, 2024, Kinsale Insurance maintained RBC levels significantly in excess of amounts that would require any corrective actions.
However, as of December 31, 2025, Kinsale Insurance maintained RBC levels significantly in excess of amounts that would require any corrective actions.
As of December 31, 2024, our fixed-maturity portfolio, including cash equivalents, had an average duration of 3.0 years and had an average rating of "AA-." 11 Table of Contents The following table sets forth the composition of our portfolio of fixed-maturity securities by rating as of December 31, 2024: AAA AA A BBB Below BBB Total ($ in thousands) U.S.
As of December 31, 2025, our fixed-maturity portfolio, including cash equivalents, had an average duration of 4.0 years and had an average rating of "AA-." 11 Table of Contents The following table sets forth the composition of our portfolio of fixed-maturity securities by rating as of December 31, 2025: AAA AA A BBB Below BBB Total ($ in thousands) U.S.
While our technology offers a competitive advantage, we also recognize that more modern technologies provide solutions for increased automation and efficiency; as such, we continue to dedicate resources to maintain and improve our technology.
While our technology offers a competitive advantage, we also recognize that more modern technologies provide solutions for increased automation and efficiency; as such, we continue to dedicate resources to maintain, improve and, if necessary, replace our technology.
Unlike many of our competitors, we do not extend underwriting authority to brokers, agents or other third parties. For the year ended December 31, 2024, our loss and loss adjustment expense ratio was 55.8%. Technology is a core competency.
Unlike many of our competitors, we do not extend underwriting authority to brokers, agents or other third parties. For the year ended December 31, 2025, our loss and loss adjustment expense ratio was 55.1%. Technology is a core competency.
The following tables show our gross written premiums by state for the years ended December 31, 2024, 2023 and 2022.
The following tables show our gross written premiums by state for the years ended December 31, 2025, 2024 and 2023.
Our underwriters specialize in individual lines of business which allows them to develop in-depth knowledge and experience of the risks they underwrite. Our core client focus is small- to medium-sized accounts, which we believe are subject to less competition and have better pricing. The average premium per policy written by us in 2024 was $15,100.
Our underwriters specialize in individual lines of business which allows them to develop in-depth knowledge and experience of the risks they underwrite. Our core client focus is small- to medium-sized accounts, which we believe are subject to less competition and have better pricing. The average premium per policy written by us in 2025 was $13,400.
We manage all of our claims in-house and do not delegate claims management authority to third parties. We focus on the effective management of the claims adjusting process.
We manage all of our claims in-house and do not delegate claims management authority to third parties. 6 Table of Contents We focus on the effective management of the claims adjusting process.
Best") domestic professional surplus lines composite produced an average net loss and loss adjustment expense ratio of 69.0% and grew direct premiums written by 9.8% annually, versus 73.7% and 4.5%, respectively for the property and casualty ("P&C") industry. 2 Table of Contents Underwriting expertise across a broad spectrum of hard-to-place risks.
Best") domestic professional surplus lines composite produced an average net loss and loss adjustment expense ratio of 68.7% and grew direct premiums written by 10.0% annually, versus 73.6% and 4.7%, respectively for the property and casualty ("P&C") industry. 2 Table of Contents Underwriting expertise across a broad spectrum of hard-to-place risks.
Excluding our personal insurance division, which has a relatively low premium per policy written, the average premium per policy written was $15,900 in 2024. We believe that our strategy, experience and expertise allow us to compete effectively in the E&S market and will enable us to generate attractive long-term stockholder value.
Excluding our personal insurance division, which has a relatively low premium per policy written, the average premium per policy written was $14,000 in 2025. We believe that our strategy, experience and expertise allow us to compete effectively in the E&S market and will enable us to generate attractive long-term stockholder value.
Ratings for an insurance company are based on its ability to pay policyholder obligations and are not directed toward the protection of investors. Today, our primary competitors in the E&S sector inc lude American International Group, Inc., Berkshire Hathaway Inc ., Fairfax Financial Holdings Limited, James River Group Holdings, Ltd., Lloyds of London, Markel Group Inc., RLI Corp. and W.
Ratings for an insurance company are based on its ability to pay policyholder obligations and are not directed toward the protection of investors. Today, our primary competitors in the E&S sector inc lude American International Group, Inc., Berkshire Hathaway Inc ., Chubb Limited, Fairfax Financial Holdings Limited, Lloyds of London, Markel Group Inc., RLI Corp. and W. R. Berkley Corporation.
Human Capital As of December 31, 2024, we had 674 employees, of which 660 were full-time employees, and all of whom were located at our headquarters in Richmond, Virginia. Compensation and Benefits We believe that our employees are our most valuable asset and paying our employees well is the foundation of our performance-based culture.
Human Capital As of December 31, 2025, we had 720 employees, of which 711 were full-time employees, and all of whom were located at our headquarters in Richmond, Virginia. Compensation and Benefits We believe that our employees are our most valuable asset and paying our employees well is the foundation of our performance-based culture.
Our investment policy does not permit us to own any interest only, principal only or residual tranches of RMBS. 12 Table of Contents At December 31, 2024 , our portfolio of fixed-maturity securities contained corporate bonds with a fair value of $2.0 billion.
Our investment policy does not permit us to own any interest only, principal only or residual tranches of RMBS. 12 Table of Contents At December 31, 2025 , our portfolio of fixed-maturity securities contained corporate bonds with a fair value of $1.7 billion.
Kinsale's Performance vs. the S&P 500 Annual Percentage Change (1) Year Kinsale (2) S&P 500 2016 113.5 4.2 2017 33.2 21.8 2018 24.1 (4.4) 2019 83.7 31.5 2020 97.3 18.4 2021 19.2 28.7 2022 10.2 (18.1) 2023 28.3 26.3 2024 39.1 25.0 Compounded Annual Gain ─ 2016-2024 49.7 % 14.6 % Overall Gain ─ 2016-2024 2,893.5 % 214.3 % (1) Data for 2016 begins with Kinsale's initial public offering date of July 28, 2016 and assumes reinvestment of dividends.
Kinsale's Performance vs. the S&P 500 Annual Percentage Change (1) Year Kinsale (2) S&P 500 2016 113.5 4.2 2017 33.2 21.8 2018 24.1 (4.4) 2019 83.7 31.5 2020 97.3 18.4 2021 19.2 28.7 2022 10.2 (18.1) 2023 28.3 26.3 2024 39.1 25.0 2025 (15.8) % 17.9 % Compounded Annual Gain ─ 2016-2025 40.8 % 14.9 % Overall Gain ─ 2016-2025 2,421.4 % 270.5 % (1) Data for 2016 begins with Kinsale's initial public offering date of July 28, 2016 and assumes reinvestment of dividends.
(4) For excess casualty policies with a per-occurrence limit higher than $2.5 million, the ceding percentage varies such that the retention is always $2.5 million or less. For example, for a $5.0 million limit excess policy, our retention would be 50%, whereas for a $10.0 million limit excess policy, our retention would be 25%.
(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 retention would be 60%, whereas for a $10.0 million limit excess policy, our retention would be 30%.
In states in which we operate on a non-admitted basis, general agents and their retail insurance brokers generally are required to certify that a certain number of licensed admitted insurers had been offered and declined to write a particular risk prior to placing that risk with us.
Almost all insurance is written through licensed agents and brokers. In states in which we operate on a non-admitted basis, general agents and their retail insurance brokers are often required to certify that a certain number of licensed admitted insurers had been offered and declined to write a particular risk prior to placing that risk with us.
We believe that actively managing our claims results in more favorable outcomes and a higher degree of reserve accuracy. We manage all of our claims in-house and do not delegate claims management authority to third parties.
We believe that proactively managing our claims results in appropriate outcomes and a higher degree of reserve accuracy. We manage all of our claims in-house and do not delegate claims management authority to third parties.
We believe that we have differentiated ourselves from our competitors by effectively leveraging technology, vigilantly controlling expenses and maintaining control over our underwriting and claims operations. We have significantly grown our business and have generated strong returns. During 2024, our gross written premiums increased by 19.2%, to $1.9 billion for the year ended December 31, 2024.
We believe that we have differentiated ourselves from our competitors by effectively leveraging technology, vigilantly controlling expenses and maintaining control over our underwriting and claims operations. We have significantly grown our business and have generated strong returns. During 2025, our gross written premiums increased by 5.7%, to $2.0 billion for the year ended December 31, 2025.
In particular, the NRRA gives regulators in the home state of an insured exclusive authority to regulate and tax surplus lines insurance transactions, and regulators in a ceding insurer’s state of domicile the sole responsibility for regulating the balance sheet credit that the ceding insurer may take for reinsurance recoverables. 16 Table of Contents The Dodd-Frank Act also established the FIO in the U.S.
In particular, the NRRA gives regulators in the home state of an insured exclusive authority to regulate and tax surplus lines insurance 16 Table of Contents transactions, and regulators in a ceding insurer’s state of domicile the sole responsibility for regulating the balance sheet credit that the ceding insurer may take for reinsurance recoverables.
We utilize a commercial lines quota-share reinsurance treaty combined with a catastrophe reinsurance treaty as an efficient and cost-effective way to manage the total loss exposure on our property coverages.
We utilize a quota-share reinsurance treaty 8 Table of Contents combined with a catastrophe reinsurance treaty as an efficient and cost-effective way to manage the total loss exposure on our property coverages.
A covered agreement between the United States and the United Kingdom extending terms nearly identical to the EU Covered Agreement to insurers and reinsurers operating in the UK following Brexit was entered into on December 11, 2018.
A covered agreement between the United States and the United Kingdom extending terms nearly identical to the EU Covered Agreement to insurers and reinsurers operating in the UK following Brexit entered into force on December 31, 2020.
We currently average 90 open claims per claims adjuster (88 open claims per claims adjuster excluding catastrophe claims), which we believe is lower than industry average. As of December 31, 2024, our reserves for claims incurred but not reported were approximately 90.0% of our total net loss reserves.
We currently average 100 open claims per claims adjuster (100 open claims per claims adjuster excluding catastrophe claims), which we believe is lower than industry average. As of December 31, 2025, our reserves for claims incurred but not reported were approximately 91.2% of our total net loss reserves.
Diversity and Inclusion We believe in hiring the best talent and making our employment-related decisions without regard to race, color, religion, gender, sexual orientation, national origin, age, veteran status, disability, or other characteristics or activity that is protected by state or U.S. federal law.
Equal Opportunity We hire the best talent and make our employment-related decisions without regard to race, color, religion, gender, sexual orientation, national origin, age, veteran status, disability, or other characteristics or activity that is protected by state or U.S. federal law.
Associated revisions were adopted by Arkansas effective July 1, 2021. 17 Table of Contents Trade practices The manner in which insurance companies and insurance agents and brokers conduct the business of insurance is regulated by state statutes in an effort to prohibit practices that constitute unfair methods of competition or unfair or deceptive acts or practices.
Associated revisions were adopted by all U.S. jurisdictions within the prescribed timeframe, including Arkansas, whose adoption became effective on July 1, 2021. 17 Table of Contents Trade practices The manner in which insurance companies and insurance agents and brokers conduct the business of insurance is regulated by state statutes in an effort to prohibit practices that constitute unfair methods of competition or unfair or deceptive acts or practices.
Our approach involves: 3 Table of Contents Expand our presence in the E&S market . According to A.M. Best, the total E&S market was approximately $115.6 billion of direct written premiums in 2023. Based on our 2024 gross written premiums of $1.9 billion, our current market share is approximately 1.6%.
Our approach involves: 3 Table of Contents Expand our presence in the E&S market . According to A.M. Best, the total E&S market was approximately $129.8 billion of direct written premiums in 2024. Based on our 2025 gross written premiums of $2.0 billion, our current market share is approximately 1.5%.
Best ratings of "A-" (Excellent) or better. At December 31, 2024, we recorded an allowance for credit losses of $0.9 million related to our reinsurance balances. We had reinsurance recoverables on unpaid losses of $323.1 million at December 31, 2024, and recoverables on paid losses of $14.8 million at December 31, 2024.
Best ratings of "A-" (Excellent) or better. At December 31, 2025, we recorded an allowance for credit losses of $1.1 million related to our reinsurance balances. 9 Table of Contents We had reinsurance recoverables on unpaid losses of $381.4 million at December 31, 2025, and recoverables on paid losses of $13.0 million at December 31, 2025.
Our return on equity and combined ratios were 32.3% and 76.4%, respectively, for the year ended December 31, 2024. Our operating return on equity, a non-GAAP financial measure, was 29.2% for the year ended December 31, 2024.
Our return on equity and combined ratios were 29.3% and 75.9%, respectively, for the year ended December 31, 2025. Our operating return on equity, a non-GAAP financial measure, was 26.4% for the year ended December 31, 2025.
In 2024, the percentage breakdown of our gross written premiums was 67.4% casualty and 32.6% property. Our commercial lines offerings and homeowner's coverage in the personal lines market represented 97.4% and 2.6% of our gross written premiums, respectively. The following table provides a summary of gross premiums written by division for the years ended December 31, 2024, 2023 and 2022.
In 2025, the percentage breakdown of our gross written premiums was 70.7% casualty and 29.3% property. Our commercial lines offerings and homeowner's coverage in the personal lines market represented 97.0% and 3.0% of our gross written premiums, respectively. The following table provides a summary of gross premiums written by division for the years ended December 31, 2025, 2024 and 2023.
In states in which it operates on a surplus line basis, Kinsale Insurance has freedom of rate and form on the majority of its business. This means that Kinsale Insurance can implement a change in policy form, underwriting guidelines, or rates for a product without regulatory approval. Almost all insurance is written through licensed agents and brokers.
In states in which it operates on a surplus line basis, Kinsale Insurance has freedom of rate and form on the majority of its business. This means that Kinsale Insurance can generally implement a change in policy form, underwriting guidelines, or rates for a product without being subject to regulatory pre-approval.
The amendments require, 14 Table of Contents subject to certain exemptions, that the ultimate controlling person of each insurance group file a GCC on an annual basis with such insurance group’s lead state commissioner. In May of 2022, the Group Capital Calculation (E) Working Group subsequently adopted the 2022 GCC Instructions and Template.
The amendments require, 14 Table of Contents subject to certain exemptions, that the ultimate controlling person of each insurance group file a GCC on an annual basis with such insurance group’s lead state commissioner. The Group Capital Calculation (E) Working Group annually publishes Instructions and Template documents which provide GCC filing preparation guidance.
Of the total open claims as of December 31, 2024, 17.2% were open for accident years 2020 and prior. Entrepreneurial management team with a track record of success.
Of the total open claims as of December 31, 2025, 15.9% were open for accident years 2021 and prior. Entrepreneurial management team with a track record of success.
Changes of control Before a person can acquire control of a U.S. domestic insurer, prior written approval must be obtained from the insurance commissioner of the state where the insurer is domiciled.
The Company will be subject to the requirements of these revisions beginning in 2026. Changes of control Before a person can acquire control of a U.S. domestic insurer, prior written approval must be obtained from the insurance commissioner of the state where the insurer is domiciled.
As of December 31, 2024, our fixed-maturity security portfolio contained $448.9 million (12.7%) of residential mortgage-backed securities ("RMBS"). RMBS, including collateralized mortgage obligations, are subject to prepayment risks that vary with, among other things, interest rates.
As of December 31, 2025, our fixed-maturity security portfolio contained $1.5 billion (33.6%) of residential mortgage-backed securities ("RMBS"). RMBS, including collateralized mortgage obligations, are subject to prepayment risks that vary with, among other things, interest rates.
The SEC maintains an internet web site that contains reports, proxy and information statements and other information regarding issuers, including us, that file electronically with the SEC. The address of that site is https://www.sec.gov.
Available Information We file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and other information with the SEC. The SEC maintains an internet web site that contains reports, proxy and information statements and other information regarding issuers, including us, that file electronically with the SEC. The address of that site is https://www.sec.gov.
Our platform is comprised of multiple applications and services which comprise an integrated system. Key applications and services supporting the core business were developed in-house. We designed the architecture for our information systems in a fashion that would allow us to reduce our administrative costs and quickly provide us with useful information.
Key applications and services supporting the core business are developed and improved in-house. We designed the architecture for our information systems in a fashion that would allow us to reduce administrative costs and quickly provide us with useful information.
Our Chief Information Officer has over 30 years of experience in the technology field. Our information technology staff utilizes an agile methodology and cloud strategy to develop best-in-class software solutions and to attract and retain quality staff. We have built a proprietary technology platform that reflects the best practices our management team has learned from its extensive experience.
Our information technology staff utilizes an agile methodology and cloud-first strategy to develop best-in-class software solutions and to attract and retain quality staff. We have built a proprietary technology platform that reflects the best practices our management team has learned from its extensive experience. Our platform encompasses multiple applications and services which comprise an integrated system.
Since inception, we have been intent on capturing and analyzing our data and building, over time, a robust repository of information that we can use to improve our decision making. We refer to this repository as our data warehouse.
Since inception, we have been intent on capturing and analyzing data and building, over time, a robust repository of information that we can use to improve our decision making. We refer to this repository as our data warehouse. The design of our data warehouse permits us to capture an array of relevant data collected by the platform at Kinsale.
Our cash and invested assets generally consist of fixed-maturity securities, equity securities, short-term investments and cash equivalents. We seek to maximize investment returns using investment guidelines that stress prudent allocation among cash and cash equivalents, fixed-maturity securities and, to a lesser extent, equity securities.
We seek to maximize investment returns using conservative investment guidelines that stress prudent allocation among cash and cash equivalents, fixed-maturity securities and, to a lesser extent, equity securities.
Some states prohibit an insurer from withdrawing from one or more lines of business in the state except pursuant 15 Table of Contents to a plan approved by the state insurance regulator, which may disapprove a plan that may lead to market disruption.
Some states prohibit an insurer from withdrawing from one or more lines of business in the state except pursuant to a plan approved by the state insurance regulator, which may disapprove a plan that may lead to market disruption. Some state statutes may explicitly or by interpretation apply these restrictions to insurers operating on a surplus lines basis.
A summary of these securities by industry segment is shown below as of December 31, 2024 : December 31, 2024 Industry Fair Value % of Total ($ in thousands) Financial $ 25,582 96.8 % Industrials and other 851 3.2 % Total $ 26,433 100.0 % Competition The P&C insurance industry is highly competitive.
A summary of these securities by industry segment is shown below as of December 31, 2025 : December 31, 2025 Industry Fair Value % of Total ($ in thousands) Financial $ 23,232 96.4 % Industrials and other 868 3.6 % Total $ 24,100 100.0 % Competition The P&C insurance industry is highly competitive.
The following is a summary of our significant reinsurance programs as of December 31, 2024: Line of Business Covered Company Policy Limit Reinsurance Coverage Company Retention Property (1) Up to $10.0 million per occurrence 50% up to $379.8 million per catastrophe 50% of commercial property losses Property - catastrophe (2) N/A $175.0 million excess of $60.0 million $60.0 million per catastrophe Primary casualty (3) Up to $10.0 million per occurrence $8.0 million excess of $2.0 million $2.0 million per occurrence Excess casualty (4) Up to $10.0 million per occurrence Variable quota share $2.5 million per occurrence as described in note (4) below 8 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.
The following is a summary of our significant reinsurance programs as of December 31, 2025: Line of Business Covered Company Policy Limit Reinsurance Coverage Company Retention Property (1) Up to $10.0 million per occurrence 40% up to $443.0 million per catastrophe 60% of property losses Property – catastrophe (2) N/A $250.0 million excess of $75.0 million $75.0 million per catastrophe Primary casualty (3) Up to $10.0 million per occurrence $8.0 million excess of $2.0 million $2.0 million per occurrence Excess casualty (4) Up to $10.0 million per occurrence Variable quota-share $3.0 million per occurrence as described in note (4) below (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.
Failure to comply with these laws and regulations would cause non-conforming investments to be treated as non-admitted assets in the states in which we are licensed to sell insurance policies for purposes of measuring statutory surplus and, in some instances, would require us to dispose of those investments.
Failure to comply with these laws and regulations would cause non-conforming investments to be treated as non-admitted assets in the states in which we are licensed to sell insurance policies for purposes of measuring statutory surplus and, in some instances, would require us to dispose of those investments. 15 Table of Contents Restrictions on market withdrawal Many states have laws and regulations that limit the ability of an insurance company licensed by that state to exit a market.
This method ensures that two or more members of the department participate in the decision-making process when 6 Table of Contents appropriate; our claim examiners recognize and address key issues; and reserves are adjusted to the appropriate amount, as necessary.
This method ensures that two or more members of the department participate in the decision-making process when appropriate; our claim examiners recognize and address key issues; and reserves are adjusted to the appropriate amount, as necessary. We seek to manage the number of claims per claims examiner to allow our claim examiners sufficient time to review and investigate claims submitted.
The GCC uses a risk-based capital aggregation approach intended to provide regulators with an additional group supervisory tool. As of October 31, 2024, thirty-five (35) states have adopted the 2020 revisions to the Insurance Holding Company Act pertaining to Group Capital Calculation and Liquidity Stress Testing. Arkansas has not yet adopted these revisions. We are currently evaluating the potential impacts.
The GCC uses a risk-based capital aggregation approach intended to provide regulators with an additional group supervisory tool. As of October 31, 2025, forty-eight (48) states have adopted the 2020 revisions to the Insurance Holding Company Act pertaining to Group Capital Calculation and Liquidity Stress Testing, including Arkansas.
Treasury securities and obligations of U.S. government agencies $ 15,048 0.4 % $ 27,254 0.9 % Obligations of states, municipalities and political subdivisions 146,304 3.6 % 171,044 5.5 % Corporate and other securities 1,989,490 48.9 % 1,387,693 44.9 % Asset-backed securities 732,742 18.0 % 641,760 20.7 % Residential mortgage-backed securities 448,874 11.0 % 417,106 13.5 % Commercial mortgage-backed securities 205,105 5.0 % 66,902 2.1 % Total fixed maturities 3,537,563 86.9 % 2,711,759 87.6 % Equity securities - at fair value: Exchange traded funds 129,731 3.2 % 106,300 3.4 % Non-redeemable preferred stock 26,433 0.6 % 33,173 1.1 % Common stock 242,195 6.0 % 95,340 3.1 % Total equity securities 398,359 9.8 % 234,813 7.6 % Short-term investments, at amortized cost 3,714 0.1 % 5,589 0.2 % Real estate investment, net 15,045 0.4 % 14,791 0.5 % Cash and cash equivalents 113,213 2.8 % 126,694 4.1 % Total $ 4,067,894 100.0 % $ 3,093,646 100.0 % Our policy is to invest primarily in high-quality fixed-maturity securities with a primary focus on preservation of capital and a secondary focus on maximizing our risk-adjusted investment returns.
Treasury securities and obligations of U.S. government agencies $ 874 — % $ 15,048 0.4 % Obligations of states, municipalities and political subdivisions 127,860 2.5 % 146,304 3.6 % Corporate and other securities 1,713,888 33.0 % 1,989,490 48.9 % Asset-backed securities 588,519 11.3 % 732,742 18.0 % Residential mortgage-backed securities 1,459,270 28.1 % 448,874 11.0 % Commercial mortgage-backed securities 451,039 8.7 % 205,105 5.0 % Total fixed maturities 4,341,450 83.6 % 3,537,563 86.9 % Equity securities - at fair value: Exchange traded funds 185,523 3.6 % 129,731 3.2 % Non-redeemable preferred stock 24,100 0.5 % 26,433 0.6 % Common stock 416,776 8.0 % 242,195 6.0 % Total equity securities 626,399 12.1 % 398,359 9.8 % Short-term investments, at amortized cost 3,864 0.1 % 3,714 0.1 % Real estate investment, net 55,236 1.1 % 15,045 0.4 % Cash and cash equivalents 163,361 3.1 % 113,213 2.8 % Total $ 5,190,310 100.0 % $ 4,067,894 100.0 % Our policy is to invest primarily in high-quality fixed-maturity securities with a primary focus on preservation of capital and a secondary focus on maximizing our risk-adjusted investment returns.
These quotes are included in new business submissions. For the year ended December 31, 2024, we processed approximately 881,000 new business submissions, and of those submissions, we issued approximately 590,000 quotes for a new quote ratio of 67.0% and bound 64,000 policies for a new policy to new submission ratio of 7.3%.
For the year ended December 31, 2025, we processed approximately 988,000 new business submissions, and of those submissions, we issued approximately 711,000 quotes for a new business quote ratio of 72.0% and bound 75,000 policies for a new policy to new submission ratio of 7.6%.
U.S. states have five years from execution of the Covered Agreement to adopt reinsurance reforms removing collateral requirements for European Union reinsurers that meet the prescribed conditions in the Covered Agreement.
U.S. states were provided five years from execution of the Covered Agreement to adopt reinsurance reforms removing collateral requirements for European Union reinsurers that meet the prescribed conditions in the Covered Agreement. If the FIO determines that state laws are inconsistent with the Covered Agreement, such states' laws may be preempted.
Year Ended December 31, 2024 % of Total 2023 % of Total 2022 % of Total ($ in thousands) Gross written premiums by state: California $ 352,082 18.8 % $ 295,242 18.8 % $ 221,994 20.1 % Florida 291,849 15.6 % 266,153 17.0 % 186,891 17.0 % Texas 250,200 13.4 % 198,758 12.7 % 136,309 12.4 % New York 80,144 4.3 % 66,489 4.2 % 42,427 3.9 % Louisiana 56,819 3.0 % 49,970 3.2 % 30,981 2.8 % Washington 51,588 2.8 % 46,507 3.0 % 40,546 3.7 % Colorado 50,734 2.7 % 43,852 2.8 % 32,406 2.9 % New Jersey 47,057 2.5 % 42,061 2.7 % 30,425 2.8 % Georgia 43,478 2.3 % 36,585 2.3 % 23,539 2.1 % Pennsylvania 41,494 2.2 % 33,333 2.1 % 23,396 2.1 % All other states 604,896 32.4 % 489,865 31.2 % 333,178 30.2 % $ 1,870,341 100.0 % $ 1,568,815 100.0 % $ 1,102,092 100.0 % Underwriting Our underwriting department consisted of approximately 330 employees as of December 31, 2024.
Year Ended December 31, 2025 % of Total 2024 % of Total 2023 % of Total ($ in thousands) Gross written premiums by state: California $ 388,587 19.7 % $ 352,082 18.8 % $ 295,242 18.8 % Florida 302,619 15.3 % 291,849 15.6 % 266,153 17.0 % Texas 276,654 14.0 % 250,200 13.4 % 198,758 12.7 % New York 88,887 4.5 % 80,144 4.3 % 66,489 4.2 % Louisiana 58,891 3.0 % 56,819 3.0 % 49,970 3.2 % Colorado 51,935 2.6 % 50,734 2.7 % 43,852 2.8 % New Jersey 51,081 2.6 % 47,057 2.5 % 42,061 2.7 % Washington 49,956 2.5 % 51,588 2.8 % 46,507 3.0 % Pennsylvania 42,179 2.1 % 41,494 2.2 % 33,333 2.1 % Illinois 41,551 2.1 % 41,409 2.2 % 30,743 1.9 % All other states 624,831 31.6 % 606,965 32.5 % 495,707 31.6 % $ 1,977,171 100.0 % $ 1,870,341 100.0 % $ 1,568,815 100.0 % Underwriting Our underwriting department consisted of approximately 340 employees as of December 31, 2025.
A summary of these securities by industry segment is shown below as of December 31, 2024 : December 31, 2024 Industry Fair Value % of Total ($ in thousands) Industrials and other $ 1,045,232 52.5 % Financial 777,136 39.1 % Utilities 167,122 8.4 % Total $ 1,989,490 100.0 % Approximately 9.2% of our total cash and investments were invested in certain common stocks and exchange traded funds ("ETFs").
A summary of these securities by industry segment is shown below as of December 31, 2025 : December 31, 2025 Industry Fair Value % of Total ($ in thousands) Industrials and other $ 864,483 50.5 % Financial 669,053 39.0 % Utilities 180,352 10.5 % Total $ 1,713,888 100.0 % Approximately 11.6% of our total cash and investments were invested in certain common stocks and exchange traded funds ("ETFs").
Short-term investments, if any, are reported at amortized cost and include investments that are both readily convertible to known amounts of cash and have maturities of 12 months or less upon acquisition by us. In December of 2022, we acquired real estate adjacent to our current headquarters for $76.6 million.
Short-term investments, if any, are reported at amortized cost and include investments that are both readily convertible to known amounts of cash and have maturities of 12 months or less upon acquisition by us. 10 Table of Contents Real estate investments represent directly owned property held for investment purposes.
For the year ended December 31, 2024, our largest brokers were RSG Specialty, LLC, which produced $366.4 million, or 19.6%, of our gross written premiums, AmWINS Brokerage, which produced $325.5 million, or 17.4% of our gross written premiums and CRC Commercial Solutions, which produced $213.9 million, or 11.4%, of our gross written premiums.
For the year ended December 31, 2025, our largest brokers were RSG Specialty, LLC, which produced $371.2 million, or 18.8%, of our gross written premiums, AmWINS Brokerage, which produced $339.0 million, or 17.1% of our gross written premiums and CRC Commercial Solutions, which produced $231.2 million, or 11.7%, of our gross written premiums.
In addition, our claim examiners work closely with members of the underwriting staff to keep them apprised of claim trends. Vendor management is also important, and our claim examiners work closely with our vendors to manage expenses and costs. Information Technology Our information technology department consisted of approximately 130 employees and contractors as of December 31, 2024.
Vendor management is also important, and our claim examiners work closely with our vendors to manage expenses and costs. Information Technology Our information technology department consisted of approximately 140 employees and contractors as of December 31, 2025. Our Chief Information Officer has over 30 years of experience in the technology field.
The following table provides a summary of our top ten reinsurers, based on the amount recoverable, at December 31, 2024: Reinsurers A.M. Best Rating Reinsurance Recoverable ($ in thousands) Munich Reinsurance America, Inc. A+ $ 83,828 General Reinsurance Corporation A++ 37,561 Swiss Reinsurance America Corp. A+ 34,262 SCOR Reinsurance Co. A 29,975 Hannover Rück SE A+ 20,476 Odyssey Reinsurance Co.
The following table provides a summary of our top ten reinsurers, based on the amount recoverable, at December 31, 2025: Reinsurers S&P Rating A.M. Best Rating Reinsurance Recoverable ($ in thousands) Munich Reinsurance America, Inc. AA A+ $ 95,813 General Reinsurance Corporation AA+ A++ 46,276 Swiss Reinsurance America Corp. AA- A+ 37,875 SCOR Reinsurance Co.
The remaining $15.0 million represents the portion of such assets we held at December 31, 2024 for investment purposes. 10 Table of Contents Our cash and invested assets totaled $4.1 billion at December 31, 2024 and $3.1 billion at December 31, 2023, and are summarized as follows: December 31, 2024 December 31, 2023 Carrying Value % of Portfolio Carrying Value % of Portfolio ($ in thousands) Fixed maturities - at fair value: U.S.
Our cash and invested assets totaled $5.2 billion at December 31, 2025 and $4.1 billion at December 31, 2024, and are summarized as follows: December 31, 2025 December 31, 2024 Carrying Value % of Portfolio Carrying Value % of Portfolio ($ in thousands) Fixed maturities - at fair value: U.S.
At December 31, 2024, our equity securities included the following: December 31, 2024 Equity securities Fair Value % of Total ($ in thousands) Common stocks $ 242,195 65.1 % Domestic stock market fund 129,731 34.9 % Total $ 371,926 100.0 % Approximately 0.6% of our total cash and investments were invested in nonredeemable preferr ed stock.
At December 31, 2025, our equity securities included the following: December 31, 2025 Equity securities Fair Value % of Total ($ in thousands) Common stocks $ 416,776 69.2 % Domestic stock market fund 185,523 30.8 % Total $ 602,299 100.0 % Approximately 0.5% of our total cash and investments were invested in nonredeemable preferr ed stock.
Some state statutes may explicitly or by interpretation apply these restrictions to insurers operating on a surplus lines basis. Enterprise risk and other developments The NAIC, as part of its solvency modernization initiative, has engaged in a concerted effort to strengthen the ability of U.S. state insurance regulators to monitor U.S. insurance holding company groups.
Enterprise risk and other developments The NAIC, as part of its solvency modernization initiative, has engaged in a concerted effort to strengthen the ability of U.S. state insurance regulators to monitor U.S. insurance holding company groups. Recent efforts by the NAIC to establish group capital standards are consistent with this initiative.
We seek to manage the number of claims per claims examiner to allow our claim examiners sufficient time to review and investigate claims submitted. Moreover, prior to any scheduled mediation or trial, claims personnel conduct further peer review to ensure that issues and exposures have been adequately analyzed.
Moreover, prior to any scheduled mediation or trial, claims personnel conduct further peer review to ensure that issues and exposures have been adequately analyzed. In addition, our claim examiners work closely with members of the underwriting staff to keep them apprised of claim trends.
The design of our data warehouse permits us to capture an array of statistical data, collected by the policy management systems at Kinsale. The data warehouse is easily searchable, collects and labels information in a consistent format and contains key underwriting and claims information we collect at every level.
The data warehouse is easily searchable, collects and labels information in a consistent format and contains key underwriting and claims information we collect at each step of the process. The data warehouse permits us flexibility with regard to analyzing our business by segment or in the aggregate.
In addition, under the terms of our reinsurance contracts discussed above, we may retain funds due from reinsurers as security for those recoverable balances. Investments Investment income is an important component of our earnings. We collect premiums from our insureds and invest a portion of these funds until claims are paid.
Investments Investment income is an important component of our earnings. We collect premiums from our insureds and invest a portion of these funds until claims are paid. Our cash and invested assets generally consist of fixed-maturity securities, equity securities, short-term investments and cash equivalents.
A+ 17,603 Total for top ten reinsurers 299,744 All others, net of allowance for credit losses 38,147 Total reinsurance recoverable $ 337,891 We did not have reinsurance recoverables greater than $14.2 million at December 31, 2024 from any individual reinsurer other than the ten listed above. 9 Table of Contents To reduce credit exposure to reinsurance recoverable balances, we obtain letters of credit from certain reinsurers that are not authorized as reinsurers under U.S. state insurance regulations.
AA- A+ 19,497 Total for top ten reinsurers 342,544 All others, net of allowance for credit losses 51,785 Total reinsurance recoverable $ 394,329 We did not have reinsurance recoverables greater than $18.3 million at December 31, 2025 from any individual reinsurer other than the ten listed above.
We have an anti-nepotism policy to ensure fairness and business decisions are based on individual qualifications, skills, ability, and performance. We value the diverse perspectives, talent, and experience that our employees bring to our organization. We believe the best business decisions are reached by listening to diverse views and opinions.
We have an anti-nepotism policy to ensure fairness and business decisions are based on individual qualifications, skills, ability, and performance. We are committed to fostering a work environment based on merit and free from discrimination of any kind.
Treasury securities and obligations of U.S. government agencies $ — $ 15,048 $ — $ — $ — $ 15,048 Obligations of states, municipalities and political subdivisions 20,625 91,453 28,545 4,959 722 146,304 Corporate and other securities 180 155,136 1,127,396 644,325 62,453 1,989,490 Asset-backed securities 714,287 4,126 10,982 3,347 — 732,742 Residential mortgage-backed securities 102,131 346,484 — — 259 448,874 Commercial mortgage-backed securities 196,802 8,303 — — — 205,105 Total fixed maturities $ 1,034,025 $ 620,550 $ 1,166,923 $ 652,631 $ 63,434 $ 3,537,563 The fair value of our investments in fixed-maturity securities at December 31, 2024, summarized by stated maturities follows: December 31, 2024 Estimated % of Fair Value Fair Value ($ in thousands) Due in one year or less $ 415,674 11.8 % Due after one year through five years 1,058,729 29.9 % Due after five years through ten years 496,044 14.0 % Due after ten years 180,395 5.1 % Asset-backed securities 732,742 20.7 % Residential mortgage-backed securities 448,874 12.7 % Commercial mortgage-backed securities 205,105 5.8 % Total fixed maturities $ 3,537,563 100.0 % Actual maturities may differ for some securities because borrowers have the right to call or prepay obligations with or without penalties.
Treasury securities and obligations of U.S. government agencies $ — $ 874 $ — $ — $ — $ 874 Obligations of states, municipalities and political subdivisions 12,975 84,640 26,420 3,090 735 127,860 Corporate and other securities 190 115,204 827,447 715,621 55,426 1,713,888 Asset-backed securities 572,120 5,179 7,790 3,430 — 588,519 Residential mortgage-backed securities 197,066 1,258,988 — — 3,216 1,459,270 Commercial mortgage-backed securities 412,551 38,488 — — — 451,039 Total fixed maturities $ 1,194,902 $ 1,503,373 $ 861,657 $ 722,141 $ 59,377 $ 4,341,450 The fair value of our investments in fixed-maturity securities at December 31, 2025, summarized by stated maturities follows: December 31, 2025 Estimated % of Fair Value Fair Value ($ in thousands) Due in one year or less $ 14,392 0.3 % Due after one year through five years 879,532 20.3 % Due after five years through ten years 700,466 16.1 % Due after ten years 248,232 5.7 % Asset-backed securities 588,519 13.6 % Residential mortgage-backed securities 1,459,270 33.6 % Commercial mortgage-backed securities 451,039 10.4 % Total fixed maturities $ 4,341,450 100.0 % Actual maturities may differ for some securities because borrowers have the right to call or prepay obligations with or without penalties.
The data warehouse permits us flexibility with regard to analyzing our business by segment or in the aggregate. We believe the proprietary technology platform, which includes the data warehouse, is a competitive advantage for us. Reserve Development We maintain reserves for specific claims incurred and reported and for claims incurred but not reported.
We continue to evaluate opportunities to integrate AI-enabled functionality into our proprietary technology platform and data warehouse where such tools can enhance efficiency and support underwriting discipline. Reserve Development We maintain reserves for specific claims incurred and reported and for claims incurred but not reported.
Removed
A+ 20,013 Arch Reinsurance Co. A+ 19,227 Allied World Insurance Co. A 18,617 Arch Reinsurance Ltd. A+ 18,182 Berkley Insurance Co.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

39 edited+13 added−7 removed153 unchanged
Biggest changeWe cannot be certain that advances in criminal capabilities, discovery of new vulnerabilities, attempts to exploit vulnerabilities in our systems, data thefts, physical system or network break-ins or inappropriate access, or other developments will not compromise or breach the technology or other security measures protecting the networks and systems used in connection with our business. 29 Table of Contents We employ third-party and open-source licensed software for use in our business, and the inability to maintain these licenses, errors in the software we license or the terms of open-source licenses could result in increased costs, or reduced service levels, which would adversely affect our business.
Biggest changeWe employ third-party and open-source licensed software in our business, and the inability to maintain these licenses, defects or vulnerabilities in such software, or the interruption or enforcement of open-source licenses could result in increased costs, reduced service levels, or operational disruptions, which could adversely affect our business.
We could become involved in litigation with our customers, or become the target of class action lawsuits and other types of litigation, some of which involve claims for substantial or indeterminate amounts. The outcomes of litigation are inherently uncertain and can be influenced by evolving legal trends, including third-party litigation funding.
We could become involved in litigation with our customers, or become the target of class action lawsuits and other types of litigation, some of which involve claims for substantial or indeterminate amounts. The outcomes of litigation are inherently uncertain and can be influenced by evolving legal trends, including third-party litigation funding and social inflation.
Our ability to undertake these efforts successfully and, as a result, accurately price our policies, is subject to a number of risks and uncertainties, including: • insufficient or unreliable data; • incorrect or incomplete analysis of available data; • uncertainties generally inherent in estimates and assumptions; • our failure to implement appropriate actuarial projections and ratings formulas or other pricing methodologies; • regulatory constraints on rate increases; • our failure to accurately estimate investment yields and the duration of our liability for loss and loss adjustment expenses; and • unanticipated court decisions, legislation or regulatory action.
Our ability to undertake these efforts successfully and, as a result, accurately price our policies, is subject to a number of risks and uncertainties, including: • insufficient or unreliable data; • incorrect or incomplete analysis of available data; • uncertainties generally inherent in estimates and assumptions; • our failure to implement appropriate actuarial projections and ratings formulas or other pricing methodologies; • our failure to accurately estimate investment yields and the duration of our liability for loss and loss adjustment expenses; and • unanticipated court decisions, legislation or regulatory action.
Sales could result in significant realized losses depending on the conditions of the general market, interest rates and credit issues with individual securities. 32 Table of Contents Our credit agreements contain financial and other covenants, the breach of any of which could result in acceleration of payment of amounts due under our borrowings.
Sales could result in significant realized losses depending on the conditions of the general market, interest rates and credit issues with individual securities. Our credit agreements contain financial and other covenants, the breach of any of which could result in acceleration of payment of amounts due under our borrowings.
In some instances, where there is uncertainty as to applicability, we follow practices based on our interpretations of regulations or practices that we believe generally to be followed by the industry. These practices may turn out to be different from the interpretations of regulatory authorities.
In some instances, where there is uncertainty as to applicability, we follow practices based on our 33 Table of Contents interpretations of regulations or practices that we believe generally to be followed by the industry. These practices may turn out to be different from the interpretations of regulatory authorities.
We rely on a select group of brokers, and such relationships may not continue. We distribute the majority of our products through a select group of brokers.
We rely on a select group of brokers, and such relationships may not continue. We distribute the majority of our products through a select group of brokerage firms.
Approximately 83.6% of our net casualty loss reserves were associated with "occurrence" policies as of December 31, 2024. • Even when a claim is received (irrespective of whether the policy is a "claims made" or "occurrence" basis form), it may take considerable time to fully recognize the extent of the covered loss suffered by the insured and, consequently, estimates of loss associated with specific claims can increase over time. • New theories of liability are enforced retroactively from time to time by courts.
Approximately 84.2% of our net casualty loss reserves were associated with "occurrence" policies as of December 31, 2025. • Even when a claim is received (irrespective of whether the policy is a "claims made" or "occurrence" basis form), it may take considerable time to fully recognize the extent of the covered loss suffered by the insured and, consequently, estimates of loss associated with specific claims can increase over time. • New theories of liability are enforced retroactively from time to time by courts.
These securities are carried on the consolidated balance sheet at fair value and are subject to potential losses and declines in value, which may never recover. Our equity investments totaled $398.4 million as of December 31, 2024.
These securities are carried on the consolidated balance sheet at fair value and are subject to potential losses and declines in value, which may never recover. Our equity investments totaled $626.4 million as of December 31, 2025.
A deviation from our loss estimates may adversely impact, perhaps significantly, our financial results. Our approach to risk management relies on subjective variables that entail significant uncertainties. For example, we rely heavily on estimates of PMLs for certain events that are generated by computer-run models.
A deviation from our loss estimates may adversely impact, perhaps significantly, our financial results. Our approach to risk management relies on subjective variables that entail significant uncertainties. For example, we rely heavily on estimates of PMLs for certain events that are generated by third-party stochastic models.
As of December 31, 2024, we had $390.6 million of aggregate reinsurance balances on paid and unpaid losses and ceded unearned premiums. These risks could cause us to incur increased net losses, and, therefore, adversely affect our financial condition. We may act based on inaccurate or incomplete information regarding the accounts we underwrite.
As of December 31, 2025, we had $438.8 million of aggregate reinsurance balances on paid and unpaid losses and ceded unearned premiums. These risks could cause us to incur increased net losses, and, therefore, adversely affect our financial condition. We may act based on inaccurate or incomplete information regarding the accounts we underwrite.
See "Dividend Policy." We could be forced to sell investments to meet our liquidity requirements. We invest the premiums we receive from our insureds until they are needed to pay policyholder claims.
See "Dividend Policy." We could be forced to sell investments to meet our liquidity requirements. 32 Table of Contents We invest the premiums we receive from our insureds until they are needed to pay policyholder claims.
Dividend payments are further limited to that part of available policyholder surplus which is derived from net profits on our business. The maximum amount of dividends Kinsale Insurance could pay us during 2025 without regulatory approval is $351.9 million.
Dividend payments are further limited to that part of available policyholder surplus which is derived from net profits on our business. The maximum amount of dividends Kinsale Insurance could pay us during 2026 without regulatory approval is $444.3 million.
In the event that portions of our proprietary software are determined to be subject to an open-source license, we could be required to publicly release the affected portions of our source code or re-engineer all or a portion of our technology systems, each of which could reduce or eliminate the value of our technology systems.
In the event that portions of our proprietary software are determined to be subject to an open-source license, we could be required to publicly disclose affected source code, re-engineer portions of our technology systems, or discontinue certain uses, each of which could reduce or eliminate the value of our technology systems.
We are aware that generative AI tools may respond with inaccurate or fabricated information, introduce bias or fail to provide traceability of source information and have taken steps to train employees on these issues as well to avoid using these tools as primary decision processes.
We are aware that generative AI tools may respond with inaccurate, incomplete or fabricated information, introduce bias or fail to provide traceability of source information and have taken steps to train employees on these issues and to inform on the risks of using AI tools as primary decision-making mechanisms.
As of December 31, 2024, we had outstanding borrowings of $184.1 million, net of debt issuance costs, in the aggregate under our two bank credit agreements.
As of December 31, 2025, we had outstanding borrowings of $224.4 million, net of debt issuance costs, in the aggregate under our two bank credit agreements.
The terms of many open-source licenses have not been interpreted by U.S. courts and there is a risk that the licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to operate our systems.
The terms of many open-source licenses have not been definitively interpreted by U.S. courts, creating uncertainty regarding the scope of the obligations they may impose and there is a risk that the licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to operate or modify our software.
It is possible that we will misunderstand the nature or extent of the activities or facilities and the corresponding extent of the risks that we insure because of our reliance on inadequate or inaccurate information. The failure of our information technology and telecommunications systems could materially adversely affect our business.
It is possible that we will misunderstand the nature or extent of the activities or facilities and the corresponding extent of the risks that we insure because of our reliance on inadequate or inaccurate information.
While we anticipate that we will continue to research and implement AI-based technology solutions to both mitigate risk and increase automation in our environment, it is possible that bad actors and/or competitors will leverage AI solutions more effectively to either exploit vulnerabilities or take market share. Either outcome could negatively impact our business.
While we continue to research and selectively implement AI-based technology solutions to enhance automation, efficiency and risk management in our environment, it is possible that bad actors and/or competitors will leverage AI solutions more effectively to either exploit vulnerabilities or take market share.
Our business relies on certain third-party software obtained under licenses from other companies. Although we believe that there are commercially reasonable alternatives to the third-party software we currently license, this may not always be the case, or it may be difficult or costly to replace.
Our business relies on certain third-party software obtained under licenses from other companies. Although we believe that there are commercially reasonable alternatives to the third-party software we currently license, such alternatives may not always be available on acceptable terms, or at all, and replacement could be difficult, costly, or time consuming to replace.
We seek to hold a high-quality, diversified portfolio of investments that is largely managed by professional investment advisory management firms in accordance with our investment policy and routinely reviewed by our Investment Committee. However, our investments are subject to general economic conditions and market risks as well as risks inherent to particular securities.
We seek to hold a high-quality, diversified portfolio of investments that is largely managed by professional investment advisory management firms in accordance with our investment policy and routinely reviewed by our Investment Committee.
Of our 2024 gross written premiums, 62.3%, or $1.2 billion, were distributed through five of our approximately 197 brokers, three of which accounted for 48.4%, or $905.8 million, of our 2024 gross written premiums. Our relationship with any of these brokers may be discontinued at any time.
Of our 2025 gross written premiums, 60.6%, or $1.2 billion, were distributed through five of our approximately 227 brokers, three of which accounted for 47.6%, or $941.4 million, of our 2025 gross written premiums. Our relationship with any of these firms may be discontinued at any time.
Many of the risks associated with the use of third-party software cannot be eliminated, and these risks could negatively affect our business. Additionally, the software powering our technology systems incorporates software covered by open-source licenses.
Many of the risks associated with the use of third-party software, including cybersecurity, operational resilience, vendor concentration, and service continuity risks, cannot be fully eliminated, and these risks could negatively affect our business. Additionally, the software powering our technology systems incorporates software components subject to open-source licenses.
As a result, we may make fundamental changes to our operations without stockholder approval, which could result in our pursuing a strategy or implementing underwriting guidelines that may be materially different from the strategy or underwriting guidelines described in the section titled "Business" or elsewhere in this Annual Report on Form 10-K. 30 Table of Contents If actual renewals of our existing contracts do not meet expectations, our written premiums in future years and our future results of operations could be materially adversely affected.
As a result, we may make fundamental changes to our operations without stockholder approval, which could result in our pursuing a strategy or implementing underwriting guidelines that may be materially different from the strategy or underwriting guidelines described in the section titled "Business" or elsewhere in this Annual Report on Form 10-K.
Any such event may result in material operational disruptions as well as unauthorized access to or the disclosure or loss of our proprietary information or our customers’ data and information, which in turn may result in legal claims, regulatory scrutiny and liability, the incurrence of costs to eliminate or mitigate further exposure, the loss of customers or affiliated advisors, reputational harm or other damage to our business.
Any such event previously discussed may result in operational disruptions as well as unauthorized access to, disclosure of, or loss of proprietary information or customers data. Such occurrences may lead to legal claims, regulatory scrutiny or liability, reputational damage, significant costs to eliminate or mitigate further exposure, and the potential loss of customers or vendors.
While we have implemented business contingency and other plans to protect our systems, sustained or repeated system failures or service denials could severely limit our ability to write and process new and renewal business, provide customer service, pay claims in a timely manner or otherwise operate in the ordinary course of business.
Sustained or repeated system failures, service interruptions, or successful cyberattacks could severely limit our ability to write and process new and renewal business, provide customer service, pay claims, or otherwise operate in the ordinary course of business.
In addition, integration of new third-party software may require significant work and require substantial investment of our time and resources. Our use of additional or alternative third-party software would require us to enter into license agreements with third parties, which may not be available on commercially reasonable terms or at all, and add complexity to the environment.
Our use of additional or alternative third-party software typically requires us to enter into license agreements with third parties, which may increase complexity and may not be available on commercially reasonable terms or at all.
Other fixed-maturity securities, such as mortgage-backed and asset-backed securities, carry prepayment risk or, in a rising interest rate environment, may not prepay as quickly as expected. 31 Table of Contents The value of our investment portfolio is subject to the risk that certain investments may default or become impaired due to deterioration in the financial condition of one or more issuers of the securities we hold, or due to deterioration in the financial condition of an insurer that guarantees an issuer’s payments on such investments.
The value of our investment portfolio is subject to the risk that certain investments may default or become impaired due to deterioration in the financial condition of one or more issuers of the securities we hold, or due to deterioration in the financial condition of an insurer that guarantees an issuer’s payments on such investments.
Further, changes in the level of regulation of the insurance industry or changes in laws or regulations themselves or interpretations by regulatory authorities could interfere with our operations and require us to bear additional costs of compliance, which could adversely affect our ability to operate our business. 33 Table of Contents The NAIC has adopted a system to test the adequacy of statutory capital of insurance companies, known as "risk-based capital." This system establishes the minimum amount of risk-based capital necessary for a company to support its overall business operations.
Further, changes in the level of regulation of the insurance industry or changes in laws or regulations themselves or interpretations by regulatory authorities could interfere with our operations and require us to bear additional costs of compliance, which could adversely affect our ability to operate our business.
Factors, such as business revenue, economic conditions, the volatility and strength of the capital markets and inflation can affect the business and economic environment. These same factors affect our ability to generate revenue and profits.
Factors, such as business revenue, economic conditions, the volatility and strength of the capital markets and inflation can affect the business and economic environment. These same factors affect our ability to generate revenue and profits. It is possible that, among other things, changes in international trade regulation, including tariffs, could lead to higher than anticipated inflation.
Such risk could be difficult or impossible to eliminate, and such an event could adversely affect our business, financial condition and results of operations. Artificial intelligence is an evolving and rapidly growing technology. The rapid evolution of artificial intelligence ("AI") could exacerbate the information technology related risks described above, as well as alter the competitive landscape.
Such risk could be difficult or impossible to fully mitigate, and such an event could adversely affect our business, financial condition and results of operations. Artificial intelligence is an evolving and rapidly developing technology, and its adoption presents additional risks.
If actual renewals do not meet expectations or if we choose not to write a renewal because of pricing conditions, our written premiums in future years and our future operations would be materially adversely affected. Our failure to accurately and timely pay claims could materially and adversely affect our business, financial condition, results of operations and prospects.
The insurance and reinsurance industries have historically been cyclical businesses with intense competition, often based on price. If actual renewals do not meet expectations or if we choose not to write a renewal because of pricing conditions, our written premiums in future years and our future operations would be materially adversely affected.
We must accurately and timely evaluate and pay claims that are made under our policies.
Our failure to accurately and timely pay claims could materially and adversely affect our business, financial condition, results of operations and prospects. We must accurately and timely evaluate and pay claims that are made under our policies.
Some fixed-maturity securities have call or prepayment options, which create possible reinvestment risk in declining rate environments.
Some fixed-maturity securities have call or prepayment options, which create possible reinvestment risk in declining rate environments. Other fixed-maturity securities, such as mortgage-backed and asset-backed securities, carry prepayment risk or, in a rising interest rate environment, may not prepay as quickly as expected.
Any such event or failure could have a material adverse effect on our business, financial condition and results of operations. We may change our underwriting guidelines or our strategy without stockholder approval. Our management has the authority to change our underwriting guidelines or our strategy without notice to our stockholders and without stockholder approval.
Our management has the authority to change our underwriting guidelines or our strategy without notice to our stockholders and without stockholder approval.
Our primary market risk exposures are to changes in interest rates and equity prices.
However, our investments are subject to general economic conditions and market risks as well as risks inherent to particular securities. 31 Table of Contents Our primary market risk exposures are to changes in interest rates and equity prices.
We will continue to look for opportunities to deploy these tools to aid in decision making processes but cannot guarantee that the risks will be completely eliminated. Cloud provider service failure or control weakness could adversely affect our business. We employ cloud-based services to host the majority of our applications and intend to continue and expand our use.
We will continue to look for 30 Table of Contents opportunities to deploy these tools to aid in decision making processes but cannot guarantee that the risks associated with AI use will be fully mitigated. Any failure to manage these risks could negatively impact our business. We may change our underwriting guidelines or our strategy without stockholder approval.
Many of our contracts are written for a one-year term. In our financial forecasting process, we make assumptions about the rates of renewal of our prior year’s contracts. The insurance and reinsurance industries have historically been cyclical businesses with intense competition, often based on price.
If actual renewals of our existing contracts do not meet expectations, our written premiums in future years and our future results of operations could be materially adversely affected. Most of our contracts are written for a one-year term. In our financial forecasting process, we make assumptions about the rates of renewal of our prior year’s contracts.
In addition, some of these systems include or rely on third-party systems under our direct control. Events such as natural catastrophes, terrorist attacks, industrial accidents, third-party system or network outages or computer malware may cause our systems to fail or be inaccessible for extended periods of time.
Events such as natural catastrophes, industrial accidents, terrorist attacks, power failures, computer viruses, ransomware, extortion attempts, business email compromise, or security breaches by unauthorized persons, including hackers or other threat actors, may cause our systems to fail or be inaccessible for extended periods.
Our business depends on our information technology and telecommunications systems, including our web-based underwriting system.
Actual or suspected information technology failures or failures to comply with applicable law could disrupt our operations, damage our reputation, and adversely affect our business, financial condition, or results of operations. Our business is highly dependent on our information technology and telecommunications systems, including our web-based underwriting system.
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Our operations depend on the reliable and secure processing, storage and transmission of confidential and other data and information in our computer systems and networks. Computer malware, hackers, employee misconduct and other external hazards could expose our systems to security breaches, cyber attacks or other disruptions.
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We could suffer security breaches, loss of data or proprietary information, cyberattacks, and other information technology failures, and are subject to laws and regulations concerning data privacy and security that are continually evolving.
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In addition, we routinely transmit and receive personal, personally identifiable, sensitive, confidential and proprietary data by electronic means and are subject to data privacy laws and regulations enacted in the jurisdictions in which we do business.
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Many of these systems and processes rely on third-party service providers or cloud-based solutions that are not located on our premises or fully under our direct control. We and our service providers face numerous and evolving cybersecurity and operational risks that threaten the confidentiality, integrity, and availability of systems and data.
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While we have implemented security measures designed to protect against breaches of security and other interference with our systems and networks, our systems and networks may be subject to significant breaches or interference.
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These risks include vulnerabilities in commercial software integrated into our systems or into the products and services of our suppliers, as well as increasingly sophisticated cyberattack techniques that frequently change and may originate from less regulated or remote areas of the world.
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As we use cloud-based services, we will rely on third-party cloud providers to maintain appropriate controls and safeguards to protect confidential information we receive, including personal, personally identifiable, sensitive, confidential or proprietary data, and the integrity and continuous operation of our proprietary technology platform.
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These events may also result in fraudulent fund transfers, unauthorized access to or exfiltration of sensitive or proprietary information, or other material operational impacts. We have implemented a variety of security measures, business contingency plans, and disaster recovery procedures designed to protect systems housed internally and through third-party cloud services. However, we cannot guarantee the effectiveness of these measures.
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While we conduct due diligence on these cloud providers with respect to their security and business controls, these are point-in-time assessments, and we may not have the visibility to effectively monitor the continuous implementation and efficacy of these controls.
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We also monitor vendor and third-party risk, but we may fail to appropriately assess or understand the risks associated with these relationships, including the adequacy of their security and control environments.
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Outside parties may be able to circumvent controls or exploit vulnerabilities, resulting in operational disruption, data loss, defects or a security event. Operating in the cloud increases the risk of operational disruption should internet service be interrupted.
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In addition, when vulnerabilities are discovered, we may be unable to remedy them promptly because attackers increasingly use tools and techniques designed to evade detection or remove forensic evidence. 29 Table of Contents Our operations also depend on the continuous availability of our physical facilities.
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While we have implemented business contingency and other plans to facilitate continuous internet access, sustained or concurrent service denials or similar failures could limit our ability to write and process new and renewal business, provide customer service, pay claims in a timely manner or otherwise operate our business.
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Disruption, damage, or loss of these facilities, for example due to natural catastrophes, utility failures, or other events, could impair our ability to maintain business functions that cannot be performed offsite or remotely. This could compound the effects of system interruptions or cyber events.
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Increasing requirements for public disclosure of cybersecurity incidents may also increase the harm to our business, financial condition, and results of operations. We cannot be certain that advances in criminal capabilities, discovery of new vulnerabilities, attempts to exploit weaknesses in our systems or those of our vendors, physical break-ins, or other developments will not compromise or defeat our security measures.
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As part of our normal business activities, we collect, store, and process personal information regarding employees, claimants, brokers, agents, and vendors. As a result, we are subject to numerous federal, state, and local laws and regulations governing data privacy, security, breach notification, and the use of personal information. These requirements continue to evolve, often becoming more stringent.
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Any failure or perceived failure to comply with applicable laws, regulations, policies, or regulatory guidance could result in investigations, enforcement actions, litigation, fines, penalties, or adverse publicity. These outcomes could erode trust in our company and adversely affect our business, financial condition, and results of operations.
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In addition, integration of new third-party software may require significant development effort and investment of time and resources and may introduce additional operational or security risks.
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The rapid evolution and increasing adoption of AI could exacerbate the information technology and cybersecurity related risks described above, as well as alter the competitive landscape.
Added
The NAIC has adopted a system to test the adequacy of statutory capital of insurance companies, known as "risk-based capital." This system establishes the minimum amount of risk-based capital necessary for a company to support its overall business operations.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeItem 1C. Cybersecurity Risk management and strategy The Company’s risk management process includes assessing, identifying and managing material risks from various sources, including those related to cybersecurity. The Company uses information from incident history, industry publications and analysis centers, public news, government information sharing and recognized information security frameworks to inform its risk management program.
Biggest changeThe Company uses information from multiple sources, including internal incident history, industry publications and analysis centers, public reporting, government and industry information sharing organizations and recognized information security frameworks to inform its risk management program.
Governance Our Chief Executive Officer ("CEO") is responsible for assessing and managing overall material risks to the Company. With respect to cybersecurity risks, our CEO leverages the collective expertise of the Company’s information security function which reports to our CEO through the Company’s Chief Information Officer.
Governance Our Chief Executive Officer ("CEO") is responsible for assessing and managing overall material risks to the Company. With respect to cybersecurity risks, our CEO oversees and leverages the collective expertise of the Company’s information security function which reports to our CEO through the Company’s Chief Information Officer.
The Audit Committee of the Board of Directors (the "Audit Committee") is responsible for receiving periodic updates on cybersecurity and information security risks, reviewing and discussing with management the quality and effectiveness of the Company’s efforts to mitigate such risks and reporting such findings to the Board of Directors.
The Company's Board of Directors ("the Board") is responsible for receiving periodic updates on cybersecurity and information security risks and reviewing and discussing with management the quality and effectiveness of the Company’s efforts to mitigate such risks.
We describe risks related to cybersecurity threats that could materially impact our business strategy, results of operations or financial condition under the heading “Risk Factors.” Material impacts could include loss of access to systems and data, financial costs and reputational harm, among others.
We describe cybersecurity-related risks that could materially impact our business strategy, results of operations or financial condition under the heading “Risk Factors.” Potential material impacts of a cybersecurity incident may include, among other things, loss of access to systems and data, financial costs, operational disruption, regulatory scrutiny, litigation and reputational harm.
Management employs a suite of detective and preventative cybersecurity measures including, but not limited to • Maintaining a vulnerability management program, • implementing and operating controls over logical access provisioning, • maintaining an enterprise-wide security awareness program and • administering periodic trainings.
Management employs a combination of preventative and detective cybersecurity measures designed to protect the confidentiality, integrity and availability of the Company's information systems and data, including, but not limited to • Maintaining a vulnerability management program, • implementing and operating controls over logical access provisioning, • maintaining an enterprise-wide security awareness program and • administering periodic cybersecurity trainings.
The information security function is staffed with individuals with extensive information security employment experience, including in the financial services sector, educational experience and relevant credentials.
The information security function is staffed with individuals with relevant information security professional experience, including in the financial services sector, as well as educational experience and industry-recognized credentials.
The Company engages multiple vendors with subject matter and technological expertise in various aspects of cybersecurity management, including continuous threat detection and response coverage, endpoint detection, anti-malware, penetration testing and suspicious activity alerting, among others. When the Company engages third parties, management retains responsibility for the security and resiliency of its information assets.
The Company engages third-party vendors with specialized expertise to support various aspects of its cybersecurity program, including continuous threat detection and response coverage, endpoint detection, anti-malware, penetration testing and suspicious activity alerting, among others. While the Company leverages third party service providers, management retains responsibility for the security and resiliency of the Company's information assets.
The Company maintains an incident response plan that includes escalation criteria and preliminary materiality assessments to guide business continuity and disclosure objectives.
The Company maintains an incident response plan designed to enable timely detection, escalation, containment and remediation of cybersecurity incidents that includes escalation criteria and preliminary materiality assessment considerations to guide business continuity and disclosure objectives.
Removed
Management informs the Audit Committee about prevention, detection, mitigation and remediation of cybersecurity incidents at least semi-annually and monitors such matters continuously. In 2025, the oversight over the Company's cybersecurity risk will transition from the Audit Committee to the Board of Directors ("the Board") to align with the Board's oversight of operational risks.
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Item 1C. Cybersecurity Risk management and strategy The Company’s risk management process includes the identification, assessment and management of material risks from various sources, including risks related to cybersecurity and information technology.
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Management informs the Board about the Company's cybersecurity risk posture, including prevention, detection, mitigation and remediation activities no less frequently than semi-annually and provides updates as appropriate in connection with material developments, while management continues to monitor such matters on an ongoing basis. 35 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties We own our executive and insurance offices located in Richmond, Virginia, and we currently occupy approximately 110,000 square feet of the 137,000 square feet of available office space. We believe that our facilities are adequate for our current needs. 35 Table of Contents
Biggest changeItem 2. Properties We own our executive and insurance offices located in Richmond, Virginia, and we currently occupy approximately 199,000 square feet of the 262,000 square feet of available office space. We believe that our facilities are adequate for our current needs.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePeriod Beginning Period Ending Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs (1) Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) October 1, 2024 October 31, 2024 22,626 $ 441.95 22,626 $ 90.0 November 1, 2024 November 30, 2024 — $ — — $ 90.0 December 1, 2024 December 31, 2024 — $ — — $ 90.0 Total 22,626 $ 441.95 22,626 $ 90.0 (1) In October 2024, the Company's Board of Directors authorized a share repurchase program authorizing the repurchase of up to $100.0 million of the Company's common stock.
Biggest changePeriod Beginning Period Ending Total number of shares purchased Average price paid per share (1) Total number of shares purchased as part of publicly announced plans or programs (2) Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (3) October 1, 2025 October 31, 2025 119,752 $ 422.43 119,752 $ — November 1, 2025 November 30, 2025 — $ — — $ — December 1, 2025 December 31, 2025 — $ — — $ 250.0 Total 119,752 $ 422.43 119,752 $ 250.0 (1) The cost of treasury stock acquired pursuant to common share repurchases includes the 1% excise tax imposed on common share repurchase activity, net of common share issuances, as part of the Inflation Reduction Act of 2022.
See "Risk Factors – Risks Related to Our Business and Our Industry – Because we are a holding company and substantially all of our operations are conducted by our insurance subsidiary, our ability to pay dividends and service our debt obligations depends on our ability to obtain cash dividends or other permitted payments from our insurance subsidiary" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources." 37 Table of Contents Performance Graph The performance graph compares the cumulative total shareholder return of an investment in (1) our common stock, (2) the cumulative total returns to S&P 500 and (3) the cumulative total returns to the S&P 500 P&C Index for the period from December 31, 2019 through December 31, 2024.
See "Risk Factors – Risks Related to Our Business and Our Industry – Because we are a holding company and substantially all of our operations are conducted by our insurance subsidiary, our ability to pay dividends and service our debt obligations depends on our ability to obtain cash dividends or other permitted payments from our insurance subsidiary" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources." 37 Table of Contents Performance Graph The performance graph compares the cumulative total shareholder return of an investment in (1) our common stock, (2) the cumulative total returns to S&P 500 and (3) the cumulative total returns to the S&P 500 P&C Index for the period from December 31, 2020 through December 31, 2025 .
The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by the Company in its discretion. The stock repurchase program does not require the Company to repurchase any specific number of shares and may be modified, suspended or terminated at any time. 39 Table of Contents Item 6. Reserved
The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by the Company in its discretion. The stock repurchase program does not require the Company to repurchase any specific number of shares and may be modified, suspended or terminated at any time.
Effective January 3, 2022, the Company transferred its common stock listing from the Nasdaq to the New York Stock Exchange ("NYSE") and continued to trade under its current symbol "KNSL." As of February 14, 2025, we had 137 stockholders of record of our common stock.
Effective January 3, 2022, the Company transferred its common stock listing from the Nasdaq to the New York Stock Exchange ("NYSE") and continued to trade under its current symbol "KNSL." As of February 13, 2026, we had 130 stockholders of record of our common stock.
December 31, 2019 2020 2021 2022 2023 2024 Kinsale Capital Group, Inc. $ 100.00 $ 197.28 $ 235.07 $ 258.97 $ 332.19 $ 461.94 S&P 500 $ 100.00 $ 118.40 $ 152.39 $ 124.79 $ 157.59 $ 197.02 S&P 500 P&C Index $ 100.00 $ 106.96 $ 127.58 $ 151.65 $ 168.05 $ 227.67 38 Table of Contents Issuer Purchases of Equity Securities The table below sets forth information regarding repurchases by the Company of its common stock during the periods indicated.
December 31, 2020 2021 2022 2023 2024 2025 Kinsale Capital Group, Inc. $ 100.00 $ 119.16 $ 131.27 $ 168.39 $ 234.16 $ 197.22 S&P 500 $ 100.00 $ 128.71 $ 105.40 $ 133.10 $ 166.40 $ 196.16 S&P 500 P&C Index $ 100.00 $ 119.28 $ 141.79 $ 157.12 $ 212.86 $ 234.32 38 Table of Contents Issuer Purchases of Equity Securities The table below sets forth information regarding repurchases by the Company of its common stock during the periods indicated.
Added
(2) In October 2024, the Company's Board of Directors authorized a share repurchase program authorizing the repurchase of up to $100.0 million of the Company's common stock.
Added
(3) The share repurchase program approved in October 2024 by the Company's Board of Directors was exhausted in October 2025. In December 2025, the Board of Directors authorized a new share repurchase program authorizing the repurchase of up to $250.0 million of its common stock.
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There were no shares repurchased under this program during 2025. 39 Table of Contents Item 6. Reserved

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeInvesting results The following table summarizes the components of net investment income, change in the fair value of equity securities, net realized investment gains and change in allowance for credit losses on investments for the years ended December 31, 2024 and 2023: Year Ended December 31, ($ in thousands) 2024 2023 Change Interest from fixed-maturity securities $ 144,834 $ 94,444 $ 50,390 Dividends on equity securities 6,442 5,097 1,345 Cash equivalents and short-term investments 3,012 3,004 8 Real estate investment income 153 3,716 (3,563) Gross investment income 154,441 106,261 48,180 Investment expenses (4,154) (3,926) (228) Net investment income 150,287 102,335 47,952 Change in the fair value of equity securities 43,367 15,277 28,090 Net realized investment gains 6,831 6,040 791 Change in allowance for credit losses on investments 526 (187) 713 Net unrealized and realized investment gains 50,724 21,130 29,594 Total $ 201,011 $ 123,465 $ 77,546 Our net investment income increased by 46.9% to $150.3 million for the year ended December 31, 2024 from $102.3 million for the year ended December 31, 2023, primarily due to growth in our investment portfolio largely generated from the investment of strong operating cash flows and higher interest rates relative to the prior year period. 47 Table of Contents The weighted average duration of our investment portfolio, including cash equivalents, was 3.0 years and 2.8 years at December 31, 2024 and 2023, respectively.
Biggest changeDirect commissions paid as a percent of gross written premiums was 14.8% and 14.7% for the years ended December 31, 2025 and 2024, respectively. 47 Table of Contents Investing results The following table summarizes the components of net investment income, change in the fair value of equity securities, net realized investment gains and change in allowance for credit losses on investments for the years ended December 31, 2025 and 2024: Year Ended December 31, ($ in thousands) 2025 2024 Change Interest from fixed-maturity securities $ 182,301 $ 144,834 $ 37,467 Dividends on equity securities 8,602 6,442 2,160 Cash equivalents and short-term investments 6,185 3,012 3,173 Real estate investment income — 153 (153) Gross investment income 197,088 154,441 42,647 Investment expenses (4,896) (4,154) (742) Net investment income 192,192 150,287 41,905 Change in the fair value of equity securities 58,836 43,367 15,469 Net realized investment gains 4,390 6,831 (2,441) Change in allowance for credit losses on investments (2) 526 (528) Net unrealized and realized investment gains 63,224 50,724 12,500 Total $ 255,416 $ 201,011 $ 54,405 Our net investment income increased by 27.9% to $192.2 million for the year ended December 31, 2025 from $150.3 million for the year ended December 31, 2024, primarily due to growth in our investment portfolio largely generated from the investment of strong operating cash flows.
For the year ended December 31, 2024, purchases of equity securities of $156.5 million primarily consisted of common stocks and, to a lesser extent, ETFs. Proceeds from sales of equity securities of $34.4 million consisted of primarily ETFs and common stocks and, to a lesser extent, calls of non-redeemable preferred stock.
For the year ended December 31, 2024 , purchases of equity securities of $156.5 million primarily consisted of common stocks and, to a lesser extent, ETFs. Proceeds from sales of equity securities of $34.4 million consisted of common stocks and, to a lesser extent, calls of non-redeemable preferred stock.
During each quarter, the Reserve Committee 60 Table of Contents reviews the emergence of actual losses relative to expectations by line of business to assess whether the assumptions used in the reserving process continue to form a reasonable basis for the projection of liabilities for those product lines.
During each quarter, the Reserve Committee reviews the emergence of actual losses relative to expectations by line of business to assess whether the assumptions 60 Table of Contents used in the reserving process continue to form a reasonable basis for the projection of liabilities for those product lines.
Reinsurance refers to an arrangement in which a company called a reinsurer agrees in a contract (often referred to as a treaty) to assume specified risks written by an insurance company (known as a ceding company) by paying the insurance company all or a portion of the insurance company's losses arising under specified classes of insurance policies in return for a share in premiums.
Reinsurance refers to an arrangement in which a company called a reinsurer agrees in a contract (often referred to as a treaty) to assume specified risks written by an insurance company (known as a ceding company) by paying the insurance company all or a portion of the insurance company's losses arising under specified classes of insurance policies in return for a share of premiums.
The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by us in our discretion. The stock repurchase program does not require us to repurchase any specific number of shares, and may be modified, suspended or terminated at any time.
The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by us in our discretion. The share repurchase program does not require us to repurchase any specific number of shares, and may be modified, suspended or terminated at any time.
We perform several procedures to ascertain the reasonableness of investment values included in the consolidated financial statements at December 31, 2024, including (1) obtaining and reviewing the internal control report from our investment accounting vendor that obtains fair values from third party pricing services, (2) discussing with our investment accounting vendor its process for reviewing and validating pricing obtained from outside pricing services and (3) reviewing the security pricing received from our investment accounting vendor and monitoring changes in unrealized gains and losses at the individual security level.
We perform several procedures to ascertain the reasonableness of investment values included in the consolidated financial statements at December 31, 2025, including (1) obtaining and reviewing the internal control report from our investment accounting vendor that obtains fair values from third party pricing services, (2) discussing with our investment accounting vendor its process for reviewing and validating pricing obtained from outside pricing services and (3) reviewing the security pricing received from our investment accounting vendor and monitoring changes in unrealized gains and losses at the individual security level.
While we believe that loss reserves at December 31, 2024 are adequate, new information, events, or circumstances may result in ultimate losses that are materially greater or less than our estimates. As previously noted, there are many factors that may cause reserves to increase or decrease, particularly those related to catastrophe losses and long-tailed lines of business.
While we believe that loss reserves at December 31, 2025 are adequate, new information, events, or circumstances may result in ultimate losses that are materially greater or less than our estimates. As previously noted, there are many factors that may cause reserves to increase or decrease, particularly those related to catastrophe losses and long-tailed lines of business.
During 2024, we received proceeds of $289.4 million from sales of fixed-maturity securities, largely corporate bonds and mortgage- and asset-backed securities and $452.4 million from redemptions of asset- and mortgage-backed securities and corporate and municipal bonds.
During 2024 , we received proceeds of $289.4 million from sales of fixed-maturity securities, largely corporate bonds and mortgage- and asset-backed securities and $452.4 million from redemptions of asset- and mortgage-backed securities and corporate bonds.
Interest accrues quarterly and is payable in arrears. As of December 31, 2024, we had $50.0 million of the 6.21% Series B Senior Note outstanding. Principal payments are required annually beginning on July 22, 2030 in equal installments of $10.0 million through July 22, 2034, the maturity date. Interest accrues quarterly and is payable in arrears.
As of December 31, 2025, we had $50.0 million of the 6.21% Series B Senior Note outstanding. Principal payments are required annually beginning on July 22, 2030 in equal installments of $10.0 million through July 22, 2034, the maturity date. Interest accrues quarterly and is payable in arrears.
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.
Refer to Note 7 to the consolidated financial statements for discussion on our reserve development for the years ended December 31, 2025 and 2024. Fair value measurements Like other accounting estimates, fair value measurements may be based on subjective information and generally involve uncertainty and judgment.
Including the reinstatement provision, the maximum aggregate loss recovery limit is $350.0 million and is in addition to the coverage provided by our other property reinsurance. Reinsurance contracts do not relieve us from our obligations to policyholders.
Including the reinstatement provision, the maximum aggregate loss recovery limit is $500.0 million and is in addition to the coverage provided by our other property reinsurance. Reinsurance contracts do not relieve us from our obligations to policyholders.
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, from the 2020 accident year due to a large property claim and more conservative actuarial assumptions in the 2021 through 2023 accident years for lines of business exposed to construction liability.
This favorable development was offset in part by adverse development 46 Table of Contents primarily from the 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation, from the 2020 accident year due to a large property claim and more conservative actuarial assumptions in the 2021 through 2023 accident years for lines of business exposed to construction liability.
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.
For any single 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.
We measure exposure to these catastrophe losses in terms of PML, which is an estimate of what level of loss we would expect to experience in a windstorm or earthquake event occurring once in every 100 or 250 years. We manage this PML by purchasing catastrophe reinsurance coverage.
We measure exposure to these catastrophe losses in terms of PML, which is an estimate of what level of loss we would expect to experience in a weather-related or earthquake event occurring once in every 100 or 250 years. We manage this PML by purchasing catastrophe reinsurance coverage.
As of December 31, 2024, we had $11.0 million outstanding under the Amended and Restated Credit Agreement, which has a maturity of July 22, 2027. Interest on the outstanding amounts is based on 3-month Adjusted Term SOFR plus a margin of 1.625%. Interest accrues over the term of the interest rate and is payable in arrears.
As of December 31, 2025, we had $51.0 million outstanding under the Amended and Restated Credit Agreement, which has a maturity of July 22, 2027. Interest on the outstanding amounts is based on 3-month Adjusted Term SOFR plus a margin of 1.625%. Interest accrues over the term of the interest rate and is payable in arrears.
See Note 11 for further information regarding the Note Purchase Agreement. In July 2022, we entered into an Amended and Restated Credit Agreement, which extended the maturity date to July 22, 2027, and increased the aggregate commitment to $100.0 million, with the option to increase the aggregate 49 Table of Contents commitment by $30.0 million, subject to certain conditions.
See Note 11 for further information regarding the Note Purchase Agreement. In July 2022, we entered into an Amended and Restated Credit Agreement, which extended the maturity date to July 22, 2027, and increased the aggregate commitment to $100.0 million, with the option to increase the aggregate commitment by $30.0 million, subject to certain conditions.
Our claims department personnel use their knowledge of the specific claim along with advice from internal and external experts, including underwriters and legal counsel, to estimate the expected ultimate losses. During the life cycle of a particular claim, as more information becomes available, we may revise our estimate of the ultimate value of the claim either upward or downward.
Our claims department personnel use their knowledge of the specific claim along with advice from internal and external experts to estimate the expected ultimate losses. During the life cycle of a particular claim, as more information becomes available, we may revise our estimate of the ultimate value of the claim either upward or downward.
At December 31, 2024, we recorded an allowance for credit losses of $0.9 million related to our reinsurance balances. Ratings Kinsale Insurance has a financial strength rating of "A" (Excellent) from A.M. Best. A.M. Best assigns ratings to insurance companies, which currently range from "A++" (Superior) to "F" (In Liquidation). "A" (Excellent) is the third highest rating issued by A.M.
At December 31, 2025, we recorded an allowance for credit losses of $1.1 million related to our reinsurance balances. Ratings Kinsale Insurance has a financial strength rating of "A" (Excellent) from A.M. Best. A.M. Best assigns ratings to insurance companies, which currently range from "A++" (Superior) to "F" (In Liquidation). "A" (Excellent) is the third highest rating issued by A.M.
The fair value of our restricted assets was $3.7 million and $5.8 million at December 31, 2024 and 2023, respectively. 56 Table of Contents Reconciliation of Non-GAAP Financial Measures Reconciliation of underwriting income Underwriting income is a non-GAAP financial measure that we believe is useful in evaluating our underwriting performance without regard to investment income.
The fair value of our restricted assets was $3.9 million and $3.7 million at December 31, 2025 and 2024, respectively. 56 Table of Contents Reconciliation of Non-GAAP Financial Measures Reconciliation of underwriting income Underwriting income is a non-GAAP financial measure that we believe is useful in evaluating our underwriting performance without regard to investment income.
In the future, state insurance regulatory authorities that have jurisdiction over the payment of dividends by Kinsale Insurance may adopt statutory provisions more restrictive than those currently in effect. Kinsale Insurance paid $47.0 million of dividends to us during 2024.
In the future, state insurance regulatory authorities that have jurisdiction over the payment of dividends by Kinsale Insurance may adopt statutory provisions more restrictive than those currently in effect. Kinsale Insurance paid $105.0 million of dividends to us during 2025.
See also "Risk Factors — Risks Related to Our Business and Our Industry — Because we are a holding company and substantially all of our operations are conducted by our insurance subsidiary, our ability to pay dividends depends on our ability to obtain cash dividends or other permitted payments from our insurance subsidiary." As of December 31, 2024, our holding company had $12.3 million in cash and investments, compared to $17.1 million as of December 31, 2023 .
See also "Risk Factors — Risks Related to Our Business and Our Industry — Because we are a holding company and substantially all of our operations are conducted by our insurance subsidiary, our ability to pay dividends depends on our ability to obtain cash dividends or other permitted payments from our insurance subsidiary." As of December 31, 2025, our holding company had $50.0 million in cash and investments, compared to $12.3 million as of December 31, 2024 .
As of December 31, 2024 , Kinsale Insurance has only contracted with reinsurers with A.M. Best financial strength rati ngs of "A-" (Ex cellent) or better. At December 31, 2024, the net reinsurance receivable, defined as the sum of paid and unpaid reinsurance recoverables, ceded unearned premiums less reinsurance payables, from five reinsurers represented 62.2% of the total balance.
As of December 31, 2025 , Kinsale Insurance has only contracted with reinsurers with A.M. Best financial strength rati ngs of "A-" (Ex cellent) or better. At December 31, 2025, the net reinsurance receivable, defined as the sum of paid and unpaid reinsurance recoverables, ceded unearned premiums less reinsurance payables, from five reinsurers represented 60.0% of the total balance.
Based on our review, we recorded a reduction to credit loss expense of $0.5 million for the year ended December 31, 2024 compared to credit loss expense of $0.2 million for the year ended December 31, 2023. See Note 2 of the notes to the consolidated financial statements for further information regarding credit losses.
Based on our review, we recorded credit loss expense of less than $0.1 million for the year ended December 31, 2025 compared to a reduction to credit loss expense $0.5 million for the year ended December 31, 2024. See Note 2 of the notes to the consolidated financial statements for further information regarding credit losses.
In 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. For the year ended December 31, 2024, property insurance represented 32.6% of our gross written premiums.
In 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. For the year ended December 31, 2025, property insurance represented 29.3% of our gross written premiums.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our annual report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 23, 2024. Overview Founded in 2009, we are an established and growing specialty insurance company.
Management’s Discussion and Analysis of Financial Condition and Results of Operations" of our annual report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on February 21, 2025. Overview Founded in 2009, we are an established and growing specialty insurance company.
When we write property insurance, we buy reinsurance to significantly mitigate our risk to large losses. We use sophisticated computer models to analyze the risk of severe losses from weather-related events and earthquakes.
When we write property insurance, we buy reinsurance to significantly mitigate our risk to large losses. We use sophisticated third-party stochastic models to analyze the risk of severe losses from weather-related events and earthquakes.
Best financial strength ratings of "A-" (Excellen t) or better. Based on our evaluation of the factors discussed above, the allowance for credit losses related to reinsuran ce balances was $0.9 million at December 31, 2024.
Best financial strength ratings of "A-" (Excellen t) or better. Based on our evaluation of the factors discussed above, the allowance for credit losses related to reinsuran ce balances was $1.1 million at December 31, 2025.
The increase in net income in 2024 over 2023 was primarily due to a combination of continued profitable growth and strong investing results including higher investment income and higher unrealized gains on equity investments.
The increase in net income in 2025 over 2024 was primarily due to a combination of continued profitable growth and strong investing results including higher investment income and higher returns on equity investments.
The Arkansas statute also requires that dividends and other distributions be paid out of positive unassigned surplus without prior approval. The maximum amount of dividends Kinsale Insurance can pay us during 2025 without regulatory approval is $351.9 million.
The Arkansas statute also requires that dividends and other distributions be paid out of positive unassigned surplus without prior approval. The maximum amount of dividends Kinsale Insurance can pay us during 2026 without regulatory approval is $444.3 million.
See "Forward-Looking Statements." Year ended December 31, 2023 compared to year ended December 31, 2022 For a comparison of years ended December 31, 2023 and December 2022, see “Part II, Item 7.
See "Forward-Looking Statements." Year ended December 31, 2024 compared to year ended December 31, 2023 For a comparison of years ended December 31, 2024 and December 31, 2023, see "Part II, Item 7.
A 5% change in net IBNR reserves would equate to a $88.4 million change in the reserve for losses and 59 Table of Contents loss adjustment expenses at such date, as well as a $69.8 million change in net income, a 4.7% change in both stockholders' equity and tangible stockholders' equity, in each case at or for the year ended December 31, 2024.
A 5% change in net IBNR reserves would equate to a $114.4 million change in the reserve for losses and 59 Table of Contents loss adjustment expenses at such date, as well as a $90.4 million change in net income, a 4.6% change in both stockholders' equity and tangible stockholders' equity, in each case at or for the year ended December 31, 2025.
On February 10, 2025, the Company’s Board of Directors declared a cash dividend of $0.17 per share of common stock. This dividend is payable on March 13, 2025 to all stockholders of record on February 27, 2025.
Dividend declarations On February 10, 2025, the Company’s Board of Directors declared a cash dividend of $0.17 per share of common stock. This dividend was paid on March 13, 2025 to all stockholders of record on February 27, 2025. On May 13, 2025, the Company’s Board of Directors declared a cash dividend of $0.17 per share of common stock.
Stockholders' equity at December 31, 2024 and 2023 reconciles to tangible stockholders' equity as follows: December 31, ($ in thousands) 2024 2023 Stockholders' equity $ 1,483,561 $ 1,086,832 Less: Intangible assets, net of deferred taxes 2,795 2,795 Tangible stockholders' equity $ 1,480,766 $ 1,084,037 Critical Accounting Estimates We identified the accounting estimates which are critical to the understanding of our financial position and results of operations.
Stockholders' equity at December 31, 2025 and 2024 reconciles to tangible stockholders' equity as follows: December 31, ($ in thousands) 2025 2024 Stockholders' equity $ 1,959,583 $ 1,483,561 Less: Intangible assets, net of deferred taxes 2,795 2,795 Tangible stockholders' equity $ 1,956,788 $ 1,480,766 Critical Accounting Estimates We identified the accounting estimates which are critical to the understanding of our financial position and results of operations.
We categorize our reserves for unpaid losses and loss adjustment expenses into two types: case reserves and reserves for incurred but not reported losses ("IBNR"). Our gross reserves for losses and loss adjustment expenses at December 31, 2024 were $2.3 billion, and of this amount, 90.4% related to IBNR.
We categorize our reserves for unpaid losses and loss adjustment expenses into two types: case reserves and reserves for incurred but not reported losses ("IBNR"). Our gross reserves for losses and loss adjustment expenses at December 31, 2025 were $2.9 billion, and of this amount, 91.6% related to IBNR.
The increase in cash provided by operating activities in 2024 compared to 2023 was due primarily to growth in business and the timing of claim payments and reinsurance recoveries. For the year ended December 31, 2024, net cash used in investing activities of $960.1 million reflected growth in our business operations.
The increase in cash provided by operating activities in 2025 compared to 2024 was due primarily to growth in business and the timing of claim payments and reinsurance recoveries. 51 Table of Contents For the year ended December 31, 2025, net cash used in investing activities of $922.2 million reflected growth in our business operations.
Effective June 1, 2024, we purchased catastrophe reinsurance coverage of $175.0 million per event in excess of our $60.0 million per event retention. 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.
Effective June 1, 2025, we purchased catastrophe reinsurance coverage of $250.0 million per event in excess of our $75.0 million per event retention. Our 52 Table of Contents property catastrophe reinsurance includes a reinstatement provision which requires us to pay reinstatement premiums after a loss has occurred in order to preserve coverage.
Our reserves for losses and loss adjustment expenses, net of reinsurance, at December 31, 2024 were $2.0 billion, and of this amount, 90.0% related to IBNR.
Our reserves for losses and loss adjustment expenses, net of reinsurance, at December 31, 2025 were $2.5 billion, and of this amount, 91.2% related to IBNR.
Our reinsurance is primarily contracted under quota-share reinsurance treaties and excess of loss treaties. In quota-share reinsurance, the reinsurer agrees to assume a specified percentage of the ceding 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 quota-share reinsurance, the reinsurer agrees to assume a specified percentage of the ceding company's losses arising out of a defined class of business in exchange for a corresponding percentage of premiums, net of a ceding commission.
This dividend was paid on September 12, 2024 to all stockholders of record on August 29, 2024. On November 13, 2024, the Company’s Board of Directors declared a cash dividend of $0.15 per share of common stock. This dividend was paid on December 13, 2024 to all stockholders of record on November 29, 2024.
This dividend was paid on June 12, 2025 to all stockholders of record on May 29, 2025. On August 15, 2025, the Company’s Board of Directors declared a cash dividend of $0.17 per share of common stock. This dividend was paid on September 11, 2025 to all stockholders of record on August 29, 2025.
In 2024, the percentage breakdown of our gross written premiums was 67.4% casualty and 32.6% property. Our commercial lines offerings and homeowner's coverage in the personal lines market represented 97.4% and 2.6% of our gross written premiums, respectively. Refer to Note 15 to the consolidated financial statements for gross written premiums by underwriting division.
In 2025, the percentage breakdown of our gross written premiums was 70.7% casualty and 29.3% property. Our commercial lines offerings and homeowner's coverage in the personal lines market represented 97.0% and 3.0% of our gross written premiums, respectively. Refer to Note 15 to the consolidated financial statements for gross written premiums by underwriting division.
At December 31, 2024, we also held $398.4 million of equity securities, which were comprised of common stocks, ETFs and non-redeemable preferred stock, $113.2 million of cash and cash equivalents, $15.0 million of real estate investments and $3.7 million of short-term investments.
At December 31, 2025, we also held $626.4 million of equity securities, which were comprised of common stocks, ETFs and non-redeemable preferred stock, $163.4 million of cash and cash equivalents, $55.2 million of real estate investments and $3.9 million of short-term investments.
The variation discussed is not meant to be a worst-case scenario and, therefore, it is possible that future variation may be greater than the amounts shown below. 61 Table of Contents The impact of reasonably likely changes in the two key assumptions used to estimate net loss reserves at December 31, 2024 is as follows: Development Pattern Expected Loss Ratio Property 10% lower Unchanged 10% higher ($ 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 Occurrence 5% lower Unchanged 5% higher 6 months slower $ 35.5 $ 136.4 $ 237.3 Unchanged (91.6) — 91.6 6 months faster (221.7) (139.5) (57.3) Casualty Claims-Made 5% lower Unchanged 5% higher 6 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.
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. 61 Table of Contents The impact of reasonably likely changes in the two key assumptions used to estimate net loss reserves at December 31, 2025 is as follows: Development Pattern Expected Loss Ratio Property 10% lower Unchanged 10% higher ($ in millions) 2 months slower $ 23.5 $ 45.0 $ 66.4 Unchanged (15.8) — 15.8 2 months faster (37.3) (24.5) (11.7) Casualty Occurrence 5% lower Unchanged 5% higher 6 months slower $ 60.0 $ 187.3 $ 314.6 Unchanged (115.3) — 115.3 6 months faster (293.6) (190.6) (87.6) Casualty Claims-Made 5% lower Unchanged 5% higher 6 months slower $ 38.4 $ 72.8 $ 107.1 Unchanged (28.2) — 28.2 6 months faster (86.6) (63.9) (41.1) 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.
Excluding our personal insurance division, which has relatively low premiums per policy written, the average premium per policy written was $15,900 in 2024 compared to $16,400 in 2023.
The average premium per policy written by us was $13,400 in 2025 compared to $15,100 in 2024. Excluding our personal insurance division, which has relatively low premiums per policy written, the average premium per policy written was $14,000 in 2025 compared to $15,900 in 2024.
Share repurchase program In October 2024, our Board of Directors authorized a share repurchase program authorizing the repurchase of up to $100.0 million of our common stock.
In December 2025, our Board of Directors authorized a new share repurchase program authorizing the repurchase of up to $250.0 million of our common stock.
We file a consolidated federal income tax return with our subsidiaries, and under our corporate tax allocation agreement, each participant is charged or refunded taxes according to the amount that the participant would have paid or received had it filed on a separate return basis with the Internal Revenue Service. 48 Table of Contents State insurance laws restrict the ability of Kinsale Insurance to declare stockholder dividends without prior regulatory approval.
We file a consolidated federal income tax return with our subsidiaries, and under our corporate tax allocation agreement, each participant is charged or refunded taxes according to the amount that the participant would have paid or received had it filed on a separate return basis with the Internal Revenue Service.
Shelf registration In August 2022, we filed a universal shelf registration statement with the SEC that expires in 2025. We can use this shelf registration to issue an unspecified amount of common stock, preferred stock, depositary shares and warrants. The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.
Shelf registration In August 2025, we filed a universal shelf registration statement with the SEC that expires in 2028. We can use this shelf registration to issue an unspecified amount of common stock, preferred stock, depositary shares and warrants.
Some of our payments and receipts, including loss settlements and subsequent reinsurance receipts, can be significant, so their timing can influence cash flows from operating activities in any given period.
The timing of our cash flows from operating activities can vary among periods due to the timing by which payments are made or received. Some of our payments and receipts, including loss settlements and subsequent reinsurance receipts, can be significant, so their timing can influence cash flows from operating activities in any given period.
The following tables summarize our reserves for unpaid losses and loss adjustment expenses, on a gross basis and net of reinsurance, at December 31, 2024 and 2023: December 31, 2024 Gross % of Total Net % of Total ($ in thousands) Case reserves $ 220,243 9.6 % $ 195,513 10.0 % IBNR 2,065,425 90.4 % 1,767,095 90.0 % Total $ 2,285,668 100.0 % $ 1,962,608 100.0 % December 31, 2023 Gross % of Total Net % of Total ($ in thousands) Case reserves $ 162,679 9.6 % $ 137,581 9.5 % IBNR 1,530,196 90.4 % 1,313,937 90.5 % Total $ 1,692,875 100.0 % $ 1,451,518 100.0 % Case reserves are established for individual claims that have been reported to us.
The following tables summarize our reserves for unpaid losses and loss adjustment expenses, on a gross basis and net of reinsurance, at December 31, 2025 and 2024: December 31, 2025 Gross % of Total Net % of Total ($ in thousands) Case reserves $ 242,678 8.4 % $ 220,653 8.8 % IBNR 2,648,192 91.6 % 2,288,861 91.2 % Total $ 2,890,870 100.0 % $ 2,509,514 100.0 % December 31, 2024 Gross % of Total Net % of Total ($ in thousands) Case reserves $ 220,243 9.6 % $ 195,513 10.0 % IBNR 2,065,425 90.4 % 1,767,095 90.0 % Total $ 2,285,668 100.0 % $ 1,962,608 100.0 % Case reserves are established for individual claims that have been reported to us.
Net income for the years ended December 31, 2024 and 2023 reconciles to net operating earnings as follows: Year Ended December 31, ($ in thousands) 2024 2023 Net income $ 414,843 $ 308,093 Adjustments: Change in the fair value of equity securities, before taxes (43,367) (15,277) Income tax expense (1) 9,107 3,208 Change in the fair value of equity securities, after taxes (34,260) (12,069) Net realized investment gains, before taxes (6,831) (6,040) Income tax expense (1) 1,435 1,268 Net realized investment gains, after taxes (5,396) (4,772) Change in allowance for credit losses on investments, before taxes (526) 187 Income tax expense (benefit) (1) 110 (39) Change in allowance for credit losses on investments, after taxes (416) 148 Net operating earnings $ 374,771 $ 291,400 Operating return on equity: Average equity (2) $ 1,285,197 $ 916,141 Return on equity (3) 32.3 % 33.6 % Operating return on equity (4) 29.2 % 31.8 % (1) Income taxes on adjustments to reconcile net income to net operating earnings use an effective tax rate of 21%.
Net income for the years ended December 31, 2025 and 2024 reconciles to net operating earnings as follows: Year Ended December 31, ($ in thousands) 2025 2024 Net income $ 503,614 $ 414,843 Adjustments: Change in the fair value of equity securities, before taxes (58,836) (43,367) Income tax expense (1) 12,356 9,107 Change in the fair value of equity securities, after taxes (46,480) (34,260) Net realized investment gains, before taxes (4,390) (6,831) Income tax expense (1) 922 1,435 Net realized investment gains, after taxes (3,468) (5,396) Change in allowance for credit losses on investments, before taxes 2 (526) Income tax expense (1) — 110 Change in allowance for credit losses on investments, after taxes 2 (416) Net operating earnings $ 453,668 $ 374,771 Operating return on equity: Average equity (2) $ 1,721,572 $ 1,285,197 Return on equity (3) 29.3 % 32.3 % Operating return on equity (4) 26.4 % 29.2 % (1) Income taxes on adjustments to reconcile net income to net operating earnings use an effective tax rate of 21%.
Net income was $414.8 million for the year ended December 31, 2024 compared to $308.1 million for the year ended December 31, 2023, an increase of $106.8 million, or 34.6%.
Net income was $503.6 million for the year ended December 31, 2025 compared to $414.8 million for the year ended December 31, 2024, an increase of $88.8 million, or 21.4%.
The decrease in operating return on equity was due primarily to higher average stockholders' equity as a result of continued profitable growth. Liquidity and Capital Resources Sources and uses of funds We are organized as a Delaware holding company with our operations primarily conducted by our wholly-owned insurance subsidiary, Kinsale Insurance, which is domiciled in Arkansas.
Liquidity and Capital Resources Sources and uses of funds We are organized as a Delaware holding company with our operations primarily conducted by our wholly-owned insurance subsidiary, Kinsale Insurance, which is domiciled in Arkansas.
The method for determining reinsurance recoverables for unpaid losses and loss adjustment expenses involves reviewing actuarial estimates of gross unpaid losses and loss adjustment expenses to determine the Company's ability to cede unpaid losses and loss adjustment expenses under the Company's existing reinsurance contracts.
The method for determining reinsurance recoverables for unpaid losses and loss adjustment expenses involves reviewing actuarial estimates of gross unpaid losses and loss adjustment expenses to determine the Company's ability to cede unpaid losses and loss adjustment expenses under the Company's existing reinsurance contracts. 53 Table of Contents See Note 8 to the consolidated financial statements and "—Critical Accounting Estimates" for a discussion of reinsurance recoverables.
Net income for the years ended December 31, 2024 and 2023 reconciles to underwriting income as follows: Year Ended December 31, ($ in thousands) 2024 2023 Net income $ 414,843 $ 308,093 Income tax expense 99,873 75,924 Income before taxes 514,716 384,017 Net investment income (150,287) (102,335) Change in the fair value of equity securities (43,367) (15,277) Net realized investment gains (6,831) (6,040) Change in allowance for credit losses on investments (526) 187 Interest expense 10,134 10,301 Other expenses (1) 3,968 942 Other income (1,926) (1,421) Underwriting income $ 325,881 $ 270,374 (1) Other expenses are corporate expenses not allocated to our insurance operations. 57 Table of Contents Reconciliation of net operating earnings Net operating earnings is defined as net income excluding the effects of the net change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and the change in allowance for credit losses on investments, after taxes.
Net income for the years ended December 31, 2025 and 2024 reconciles to underwriting income as follows: Year Ended December 31, ($ in thousands) 2025 2024 Net income $ 503,614 $ 414,843 Income tax expense 130,688 99,873 Income before taxes 634,302 514,716 Net investment income (192,192) (150,287) Change in the fair value of equity securities (58,836) (43,367) Net realized investment gains (4,390) (6,831) Change in allowance for credit losses on investments 2 (526) Interest expense 10,646 10,134 Other expenses (1) 1,650 3,968 Other income (2,015) (1,926) Underwriting income $ 389,167 $ 325,881 (1) Other expenses includes primarily corporate expenses not allocated to our insurance operations. 57 Table of Contents Reconciliation of net operating earnings Net operating earnings is defined as net income excluding the effects of the net change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and the change in allowance for credit losses on investments, after taxes.
The change in the fair value of ETFs and common stocks during 2023 primarily reflected changes in the broader U.S. stock market. We perform quarterly reviews of all available-for-sale securities within our investment portfolio to determine whether the decline in a security's fair value is deemed to be a credit loss.
We perform quarterly reviews of all available-for-sale securities within our investment portfolio to determine whether the decline in a security's fair value is deemed to be a credit loss.
Similarly, the timing for payment of our estimated losses is not fixed and is not determinable on an individual or aggregate basis due to the uncertainty inherent in the process of estimating such payments.
Actual losses and settlement expenses paid may deviate, perhaps substantially, from the reserve estimates reflected in our consolidated financial statements. Similarly, the timing for payment of our estimated losses is not fixed and is not determinable on an individual or aggregate basis due to the uncertainty inherent in the process of estimating such payments.
Our fixed-maturity securities, including cash equivalents, had a weighted average duration of 3.0 years and an average rating of "AA-" at December 31, 2024.
Our fixed-maturity securities, including cash equivalents, had a weighted average duration of 4.0 years and an average rating of "AA-" at December 31, 2025. Our investment portfolio, excluding cash equivalents and real estate investments, had a gross investment return of 4.4% as of December 31, 2025 and December 31, 2024.
The increase in the loss ratio for the year ended December 31, 2024 was due primarily to higher catastrophe losses incurred during the period and lower relative net favorable development of loss reserves from prior accident years.
The decrease in the loss ratio for the year ended December 31, 2025 was due primarily to higher relative net favorable development of loss reserves from prior accident years. During the year ended December 31, 2025, current year incurred losses and loss adjustment expenses included $30.4 million of net catastrophe losses primarily attributable to the Palisades Fire.
As previously discussed, the increase was due to growth in gross written premiums in 2024 compared to 2023. 45 Table of Contents Loss ratio The following table summarizes the effect of the factors indicated above on the loss ratios for the years ended December 31, 2024 and 2023: Year Ended December 31, 2024 2023 ($ in thousands) Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Loss ratio: Current accident year $ 785,036 56.7 % $ 631,407 57.4 % Current accident year - catastrophe losses 25,518 1.8 % 4,586 0.4 % Effect of prior year development (37,655) (2.7) % (35,774) (3.2) % Total $ 772,899 55.8 % $ 600,219 54.6 % Our loss ratio was 55.8% for the year ended December 31, 2024 compared to 54.6% for the year ended December 31, 2023.
Loss ratio The following table summarizes the effect of the factors indicated above on the loss ratios for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 ($ in thousands) Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Losses and Loss Adjustment Expenses % of Sum of Earned Premiums and Fee Income Loss ratio: Current accident year $ 923,160 57.1 % $ 785,036 56.7 % Current accident year - catastrophe losses 30,350 1.9 % 25,518 1.8 % Effect of prior year development (62,817) (3.9) % (37,655) (2.7) % Total $ 890,693 55.1 % $ 772,899 55.8 % Our loss ratio was 55.1% for the year ended December 31, 2025 compared to 55.8% for the year ended December 31, 2024.
Available-for-sale investments are carried at fair value with unrealized gains and losses on those securities, net of applicable taxes, reported as a separate component of accumulated other comprehensive income.
At December 31, 2025, the majority of the investment portfolio was comprised of fixed-maturity securities of $4.3 billion that were classified as available-for-sale. Available-for-sale investments are carried at fair value with unrealized gains and losses on those securities, net of applicable taxes, reported as a separate component of accumulated other comprehensive income.
Gross written premiums increased across substantially all of our underwriting divisions for the year ended December 31, 2024 and were most notable in the following lines of business: • General Casualty, which represented approximately 9.0% of our gross written premiums in 2024, increased by $50.4 million, or 42.5%, for the year ended December 31, 2024; • Excess Casualty, which represented approximately 13.1% of our gross written premiums in 2024, increased by $51.1 million, or 26.3%, for the year ended December 31, 2024; • Small Business Casualty, which represented approximately 10.5% of our gross written premiums in 2024, increased by $21.5 million, or 12.4%, for the year ended December 31, 2024; • Commercial Property, which represented approximately 24.4% of our gross written premiums in 2024, increased by $44.2 million, or 10.7%, for the year ended December 31, 2024 and • Construction, which represented approximately 7.8% of our gross written premiums in 2024, increased by $10.4 million, or 7.6%, for the year ended December 31, 2024.
Gross written premiums increased across the majority of our underwriting divisions for the year ended December 31, 2025 and were most notable in the following lines of business: • General Casualty, which represented approximately 10.5% of our gross written premiums in 2025, increased by $38.7 million, or 22.9%, for the year ended December 31, 2025; • Excess Casualty, which represented approximately 14.0% of our gross written premiums in 2025, increased by $31.9 million, or 13.0%, for the year ended December 31, 2025; • Small Business Property, which represented approximately 5.2% of our gross written premiums in 2025, increased by $25.6 million, or 33.4%, for the year ended December 31, 2025; • Entertainment, which represented approximately 3.6% of our gross written premiums in 2025, increased by $14.9 million, or 27.0%, for the year ended December 31, 2025; and • Allied Health, which represented approximately 4.9% of our gross written premiums in 2025, increased by $13.9 million, or 16.8%, for the year ended December 31, 2025.
See Note 8 to the consolidated financial statements and "—Critical Accounting Estimates" for a discussion of reinsurance recoverables. Debt As of December 31, 2024, we had $125.0 million of 5.15% Series A Senior Notes outstanding. Principal payments are required annually beginning on July 22, 2030 in equal installments of $25.0 million through July 22, 2034, the maturity date.
Debt As of December 31, 2025, we had $125.0 million of 5.15% Series A Senior Notes outstanding. Principal payments are required annually beginning on July 22, 2030 in equal installments of $25.0 million through July 22, 2034, the maturity date. Interest accrues quarterly and is payable in arrears.
During the year ended December 31, 2023, prior accident years developed favorably by $35.8 million, of which $49.0 million was attributable to the 2021 and 2022 accident years due to lower emergence of reported losses than expected across most lines of business.
During the year ended December 31, 2025, prior accident years developed favorably by $62.8 million, of which $70.9 million was attributable to the 2020 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in our property lines of business.
The corresponding combined ratios were 76.4% for the year ended December 31, 2024 compared to 75.4% for the year ended December 31, 2023. Premiums Gross written premiums were $1.9 billion for the year ended December 31, 2024 compared to $1.6 billion for the year ended December 31, 2023, an increase of $301.5 million, or 19.2%.
Premiums Gross written premiums were $2.0 billion for the year ended December 31, 2025 compared to $1.9 billion for the year ended December 31, 2024, an increase of $106.8 million, or 5.7%.
Income tax expense Our effective tax rate was approximately 19.4% for the year ended December 31, 2024 compared to 19.8% for the year ended December 31, 2023. The effective tax rate was lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and tax-exempt investment income.
The effective tax rate was lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and tax-exempt investment 48 Table of Contents income.
Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had a gross investment return of 4.4% as of December 31, 2024, compared to 4.0% as of December 31, 2023.
The weighted average duration of our investment portfolio, including cash equivalents, was 4.0 years and 3.0 years at December 31, 2025 and 2024, respectively. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had a gross investment return of 4.4% as of December 31, 2025 and December 31, 2024.
For the year ended December 31, 2023, funds from operations were used to purchase fixed-maturity securities, particularly corporate bonds and asset- and mortgage-backed securities of $1.3 billion, and to a lesser extent, sovereigns and government agency bonds of $26.3 million and municipal bonds of $4.9 million.
For the year ended December 31, 2025, funds from operations were used to purchase fixed-maturity securities, particularly mortgage- and asset-backed securities and corporate bonds of $2.5 billion.
Proceeds received from our equity compensation plan were $0.9 million, offset by payroll taxes withheld and remitted on restricted stock awards of $4.3 million for the year ended December 31, 2023 . 51 Table of Contents Reinsurance We enter into reinsurance contracts to limit our exposure to potential large losses.
Payroll taxes withheld and remitted on restricted stock awards were $7.0 million, offset in part by proceeds received from our equity compensation plan of $1.3 million. Reinsurance We enter into reinsurance contracts to limit our exposure to potential large losses. Our reinsurance is primarily contracted under quota-share reinsurance treaties and excess of loss treaties.
Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of the average beginning and ending book values of those investments during the period. 43 Table of Contents Results of Operations Year ended December 31, 2024 compared to year ended December 31, 2023 The following table summarizes our results of operations for the years ended December 31, 2024 and 2023: Year Ended December 31, ($ in thousands) 2024 2023 Change % Change Gross written premiums $ 1,870,341 $ 1,568,815 $ 301,526 19.2 % Ceded written premiums (392,993) (304,185) (88,808) 29.2 % Net written premiums $ 1,477,348 $ 1,264,630 $ 212,718 16.8 % Net earned premiums $ 1,350,470 $ 1,072,537 $ 277,933 25.9 % Fee income 34,118 27,026 7,092 26.2 % Losses and loss adjustment expenses 772,899 600,219 172,680 28.8 % Underwriting, acquisition and insurance expenses 285,808 228,970 56,838 24.8 % Underwriting income (1) 325,881 270,374 55,507 20.5 % Net investment income 150,287 102,335 47,952 46.9 % Change in fair value of equity securities 43,367 15,277 28,090 NM Net realized investment gains 6,831 6,040 791 NM Change in allowance for credit losses on investments 526 (187) 713 NM Interest expense (10,134) (10,301) 167 (1.6) % Other (expenses) income, net (2,042) 479 (2,521) NM Income before taxes 514,716 384,017 130,699 34.0 % Income tax expense 99,873 75,924 23,949 31.5 % Net income $ 414,843 $ 308,093 $ 106,750 34.6 % Net operating earnings (2) $ 374,771 $ 291,400 $ 83,371 28.6 % Loss ratio 55.8 % 54.6 % Expense ratio 20.6 % 20.8 % Combined ratio (3) 76.4 % 75.4 % Return on equity 32.3 % 33.6 % Operating return on equity (2) 29.2 % 31.8 % NM - Percentage change is not meaningful (1) Underwriting income is a non-GAAP financial measure.
Gross investment return is investment income from fixed-maturity and equity securities (and short-term investments, if any), before any deductions for fees and expenses, expressed as a percentage of the average beginning and ending book values of those investments during the period. 43 Table of Contents Results of Operations Year ended December 31, 2025 compared to year ended December 31, 2024 The following table summarizes our results of operations for the years ended December 31, 2025 and 2024: Year Ended December 31, ($ in thousands) 2025 2024 Change % Change Gross written premiums $ 1,977,171 $ 1,870,341 $ 106,830 5.7 % Ceded written premiums (361,154) (392,993) 31,839 (8.1) % Net written premiums $ 1,616,017 $ 1,477,348 $ 138,669 9.4 % Net earned premiums $ 1,575,842 $ 1,350,470 $ 225,372 16.7 % Fee income 40,714 34,118 6,596 19.3 % Losses and loss adjustment expenses 890,693 772,899 117,794 15.2 % Underwriting, acquisition and insurance expenses 336,696 285,808 50,888 17.8 % Underwriting income (1) 389,167 325,881 63,286 19.4 % Net investment income 192,192 150,287 41,905 27.9 % Change in fair value of equity securities 58,836 43,367 15,469 NM Net realized investment gains 4,390 6,831 (2,441) NM Change in allowance for credit losses on investments (2) 526 (528) NM Interest expense (10,646) (10,134) (512) 5.1 % Other income (expenses), net 365 (2,042) 2,407 NM Income before taxes 634,302 514,716 119,586 23.2 % Income tax expense 130,688 99,873 30,815 30.9 % Net income $ 503,614 $ 414,843 $ 88,771 21.4 % Net operating earnings (2) $ 453,668 $ 374,771 $ 78,897 21.1 % Loss ratio 55.1 % 55.8 % Expense ratio 20.8 % 20.6 % Combined ratio (3) 75.9 % 76.4 % Return on equity 29.3 % 32.3 % Operating return on equity (2) 26.4 % 29.2 % NM - Percentage change is not meaningful (1) Underwriting income is a non-GAAP financial measure.
Our investment portfolio, excluding cash equivalents and real estate investments, had a gross investment return of 4.4% as of December 31, 2024, compared to 4.0% as of December 31, 2023. 54 Table of Contents At December 31, 2024, the amortized cost and estimated fair value of our fixed-maturity, equity, and short-term investments were as follows: December 31, 2024 Amortized Cost Estimated Fair Value % of Total Fair Value ($ in thousands) Fixed maturities: U.S.
At December 31, 2025, the amortized cost and estimated fair value of our fixed-maturity, equity, and short-term investments were as follows: December 31, 2025 Amortized Cost Estimated Fair Value % of Total Fair Value ($ in thousands) Fixed maturities: U.S.
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. 46 Table of Contents Expense ratio The following table summarizes the components of the expense ratio for the years ended December 31, 2024 and 2023: Year Ended December 31, 2024 2023 ($ in thousands) Underwriting Expenses % of Sum of Earned Premiums and Fee Income Underwriting Expenses % of Sum of Earned Premiums and Fee Income Net commissions incurred $ 134,184 9.7 % $ 113,717 10.3 % Other underwriting expenses 151,624 10.9 % 115,253 10.5 % Underwriting, acquisition, and insurance expenses $ 285,808 20.6 % $ 228,970 20.8 % The expense ratio was 20.6% for the year ended December 31, 2024 compared to 20.8% for the year ended December 31, 2023.
Expense ratio The following table summarizes the components of the expense ratio for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 ($ in thousands) Underwriting Expenses % of Sum of Earned Premiums and Fee Income Underwriting Expenses % of Sum of Earned Premiums and Fee Income Net commissions incurred $ 166,802 10.3 % $ 134,184 9.7 % Other underwriting expenses 169,894 10.5 % 151,624 10.9 % Underwriting, acquisition, and insurance expenses $ 336,696 20.8 % $ 285,808 20.6 % The expense ratio was 20.8% for the year ended December 31, 2025 compared to 20.6% for the year ended December 31, 2024.
The increase in both total 53 Table of Contents stockholders' equity and tangible stockholders' equity in 2024 compared to 2023 was primarily due to profits generated during the period and net activity related to stock-based compensation plans.
The increase in both total stockholders' equity and tangible stockholders' equity in 2025 compared to 2024 was primarily due to profits generated during the period, an increase in the fair value of our fixed-maturity investments, net of taxes and net activity related to stock-based compensation plans. These increases were offset in part by share repurchases and dividends declared during 2025.
State insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus.
State insurance laws restrict the ability of Kinsale Insurance to declare stockholder dividends without prior regulatory approval. State insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus.
Management believes that cash receipts from premiums, proceeds from investment sales and redemptions and investment income are sufficient to cover cash outflows in the foreseeable future. 50 Table of Contents Our cash flows for the years ended December 31, 2024 and 2023 were: Year Ended December 31, 2024 2023 (in thousands) Cash and cash equivalents provided by (used in): Operating activities $ 976,301 $ 859,835 Investing activities (960,125) (860,892) Financing activities (29,657) (28,523) Change in cash and cash equivalents $ (13,481) $ (29,580) We have historically generated positive operating cash flows allowing our cash and invested assets to grow.
Our cash flows for the years ended December 31, 2025 and 2024 were: Year Ended December 31, 2025 2024 (in thousands) Cash and cash equivalents provided by (used in): Operating activities $ 1,043,738 $ 976,301 Investing activities (922,210) (960,125) Financing activities (71,380) (29,657) Change in cash and cash equivalents $ 50,148 $ (13,481) We have historically generated positive operating cash flows allowing our cash and invested assets to grow.
On May 15, 2024, the Company’s Board of Directors declared a cash dividend of $0.15 per share of common stock. This dividend was paid on June 13, 2024 to all stockholders of record on May 31, 2024. On August 14, 2024, the Company’s Board of Directors declared a cash dividend of $0.15 per share of common stock.
On November 12, 2025, the Company’s Board of Directors declared a cash dividend of $0.17 per share of common stock. This dividend was paid on December 11, 2025 to all stockholders of record on November 28, 2025. On February 4, 2026, the Company’s Board of Directors declared a cash dividend of $0.25 per share of common stock.
Debt In July 2022, we entered into a Note Purchase and Private Shelf Agreement (the "Note Purchase Agreement"), which provides for the issuance of senior promissory notes with an aggregate principal amount of up to $150.0 million.
Management believes there is sufficient liquidity available at the holding company and in its insurance subsidiary, Kinsale Insurance, as well as in its other operating subsidiaries, to meet its operating cash needs and obligations for the next 12 months. 49 Table of Contents Debt In July 2022, we entered into a Note Purchase and Private Shelf Agreement (the "Note Purchase Agreement"), which provides for the issuance of senior promissory notes with an aggregate principal amount of up to $150.0 million.
The "A" (Excellent) rating obtained by Kinsale Insurance is consistent with our business plan and allows us to actively pursue relationships with the agents and brokers identified in our marketing plan. 52 Table of Contents Contractual obligations and commitments Reserves for losses and loss adjustment expenses Reserves for losses and loss adjustment expenses represent our best estimate of the ultimate cost of settling reported and unreported claims and related expenses.
The "A" (Excellent) rating obtained by Kinsale Insurance is consistent with our business plan and allows us to actively pursue relationships with the agents and brokers identified in our marketing plan.
During the year ended December 31, 2023, the change in the fair value of equity securities of $15.3 million included changes in unrealized gains related to ETFs and common stocks of $12.8 million and unrealized gains related to non-redeemable preferred stock of $2.5 million.
During the year ended December 31, 2025, the change in the fair value of equity securities of $58.8 million included appreciation of common stocks, ETFs and non-redeemable preferred stocks of $34.0 million, 24.2 million and $0.6 million, respectively, generally consistent with the changes in the broader U.S. stock market.
Underwriting income was $325.9 million for the year ended December 31, 2024 compared to $270.4 million for the year ended December 31, 2023, an increase of $55.5 million, or 20.5%. The increase in underwriting income was primarily due to continued growth in the business offset in part by higher catastrophe losses.
The increase in underwriting income was primarily due to continued growth in the business and higher favorable development of loss reserves from prior accident years offset in part by higher catastrophe losses incurred. The corresponding combined ratios were 75.9% for the year ended December 31, 2025 compared to 76.4% for the year ended December 31, 2024.
Financial Condition Stockholders' equity At December 31, 2024, total stockholders' equity and tangible stockholders' equity were $1.5 billion, compared to total stockholders' equity and tangible equity of $1.1 billion at December 31, 2023.
See Note 11 to the consolidated financial statements for further details regarding our debt obligations. Financial Condition Stockholders' equity At December 31, 2025, total stockholders' equity and tangible stockholders' equity were $2.0 billion, compared to total stockholders' equity and tangible equity of $1.5 billion at December 31, 2024.
Payroll taxes withheld and remitted on restricted stock awards were $7.0 million, offset in part by proceeds received from our equity compensation plan of $1.3 million.
Payroll taxes withheld and remitted on restricted stock awards were $6.3 million, offset in part by proceeds received from our equity compensation plan of $0.7 million. In addition, we drew down $40.0 million from our revolving credit facility primarily to fund construction of our new corporate headquarters which was completed in November 2025 and for general corporate purposes.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeDecember 31, 2024 December 31, 2023 Estimated Fair Value Estimated Change in Fair Value Estimated % Increase (Decrease) in Fair Value Estimated Fair Value Estimated Change in Fair Value Estimated % Increase (Decrease) in Fair Value ($ in thousands) 200 basis points increase $ 3,359,066 $ (204,930) (5.8) % $ 2,596,163 $ (148,769) (5.4) % 100 basis points increase $ 3,458,502 $ (105,494) (3.0) % $ 2,668,387 $ (76,545) (2.8) % No change $ 3,563,996 $ — — % $ 2,744,932 $ — — % 100 basis points decrease $ 3,674,836 $ 110,840 3.1 % $ 2,824,874 $ 79,942 2.9 % 200 basis points decrease $ 3,789,241 $ 225,245 6.3 % $ 2,907,181 $ 162,249 5.9 % Changes in interest rates will have an immediate effect on comprehensive income and stockholders’ equity but will not ordinarily have an immediate effect on net income.
Biggest changeDecember 31, 2025 December 31, 2024 Estimated Fair Value Estimated Change in Fair Value Estimated % Increase (Decrease) in Fair Value Estimated Fair Value Estimated Change in Fair Value Estimated % Increase (Decrease) in Fair Value ($ in thousands) 200 basis points increase $ 4,011,940 $ (353,610) (8.1) % $ 3,359,066 $ (204,930) (5.8) % 100 basis points increase $ 4,185,689 $ (179,861) (4.1) % $ 3,458,502 $ (105,494) (3.0) % No change $ 4,365,550 $ — — % $ 3,563,996 $ — — % 100 basis points decrease $ 4,537,989 $ 172,439 3.9 % $ 3,674,836 $ 110,840 3.1 % 200 basis points decrease $ 4,690,346 $ 324,796 7.4 % $ 3,789,241 $ 225,245 6.3 % Changes in interest rates will have an immediate effect on comprehensive income and stockholders’ equity but will not ordinarily have an immediate effect on net income.
The table below illustrates the sensitivity of the fair value of our fixed-maturity securities and non-redeemable preferred stock to selected hypothetical changes in interest rates as of December 31, 2024 and 2023.
The table below illustrates the sensitivity of the fair value of our fixed-maturity securities and non-redeemable preferred stock to selected hypothetical changes in interest rates as of December 31, 2025 and 2024.
Our policy is to invest in investment grade securities and to minimize investments in fixed maturities that are unrated or rated below investment grade. At December 31, 2024, approximately 1.8% of our fixed-maturity portfolio, excluding cash equivalents, was unrated or rated below investment grade. We monitor the financial condition of all of the issuers of fixed-maturity securities in our portfolio.
Our policy is to invest in investment grade securities and to minimize investments in fixed maturities that are unrated or rated below investment grade. At December 31, 2025, approximately 1.4% of our fixed-maturity portfolio, excluding cash equivalents, was unrated or rated below investment grade. We monitor the financial condition of all of the issuers of fixed-maturity securities in our portfolio.
The effective weighted-average duration of the portfolio, including cash equivalents, was 3.0 years as of December 31, 2024. 65 Table of Contents We had fixed-maturity securities and non-redeemable preferred stock with a fair value of $3.6 billion at December 31, 2024 and $2.7 billion at December 31, 2023 that were subject to interest rate risk.
The effective weighted-average duration of the portfolio, including cash equivalents, was 4.0 years as of December 31, 2025. 65 Table of Contents We had fixed-maturity securities and non-redeemable preferred stock with a fair value of $4.4 billion at December 31, 2025 and $3.6 billion at December 31, 2024 that were subject to interest rate risk.
A portion of our portfolio is invested in ETF securities and common stock, which have historically produced higher long-term returns relative to fixed-maturity investments. As of December 31, 2024, approximately 9.2% of the fair value of our investment portfolio (including cash and cash equivalents) was invested in common stocks and ETFs.
A portion of our portfolio is invested in ETF securities and common stock, which have historically produced higher long-term returns relative to fixed-maturity investments. As of December 31, 2025, approximately 11.7% of the fair value of our investment portfolio (including cash and cash equivalents) was invested in common stocks and ETFs.
At December 31, 2024, our fixed-maturity portfolio, including cash equivalents, had an average rating of "AA-." Additionally, at December 31, 2024, approximately 79.8% of our fixed-maturity portfolio, excluding cash equivalents, was rated "A-" or better by at least one nationally recognized rating organization.
At December 31, 2025, our fixed-maturity portfolio, including cash equivalents, had an average rating of "AA-." Additionally, at December 31, 2025, approximately 81.9% of our fixed-maturity portfolio, excluding cash equivalents, was rated "A-" or better by at least one nationally recognized rating organization.

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