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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2023
☐Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _______ to _______

Commission File Number: 001-37848
KINSALE CAPITAL GROUP, INC.
(Exact name of registrant as specified in its charter)

Delaware
98-0664337
(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)
2035 Maywill Street
Suite 100
Richmond, Virginia 23230
(Address of principal executive offices, including zip code)
(804) 289-1300
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareKNSLNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒   No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer ☐
Non-accelerated filer ☐
Smaller reporting company ☐Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐     No  ☒
Number of shares of the registrant's common stock outstanding at October 20, 2023: 23,173,468

Table of Contents
KINSALE CAPITAL GROUP, INC.
TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II. OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
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Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that does not directly relate to historical or current fact. These statements may discuss, among others, our future financial performance, our business prospects and strategy, our anticipated financial position, liquidity and capital, dividends and general market and industry conditions. You can identify forward-looking statements by words such as "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects," "believes," "seeks," "outlook," "future," "will," "would," "should," "could," "may," "can have," "prospects" or similar terms. Forward-looking statements are based on management’s current expectations and assumptions about future events, which are subject to uncertainties, risks and changes in circumstances that are difficult to predict. These statements are only predictions and are not guarantees of future performance. Actual results may differ materially from those contemplated by a forward-looking statement. Factors that may cause such differences include, without limitation:
•the possibility that our loss reserves may be inadequate to cover our actual losses, which could have a material adverse effect on our financial condition, results of operations and cash flows;
•the inherent uncertainty of models resulting in actual losses that are materially different than our estimates;
•the failure of any of the loss limitations or exclusions we employ, or change in other claims or coverage issues, having a material adverse effect on our financial condition or results of operations;
•the inability to obtain reinsurance coverage at reasonable prices and on terms that adequately protect us;
•the possibility that severe weather conditions and catastrophes, including due to climate change, pandemics and similar events adversely affecting our business, results of operations and financial condition;
•adverse economic factors, including recession, inflation, periods of high unemployment or lower economic activity resulting in the sale of fewer policies than expected or an increase in frequency or severity of claims and premium defaults or both, affecting our growth and profitability;
•a decline in our financial strength rating adversely affecting the amount of business we write;
•the potential loss of one or more key executives or an inability to attract and retain qualified personnel adversely affecting our results of operations;
•our reliance on a select group of brokers;
•the changing market conditions of our excess and surplus lines ("E&S") insurance operations, as well as the cyclical nature of our business, affecting our financial performance;
•our employees taking excessive risks;
•the intense competition for business in our industry;
•the effects of litigation having an adverse effect on our business;
•the performance of our investment portfolio adversely affecting our financial results;
•the ability to pay dividends being dependent on our ability to obtain cash dividends or other permitted payments from our insurance subsidiary;
•being forced to sell investments to meet our liquidity requirements;
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•our credit agreements contain a number of financial and other covenants, the breach of which could result in acceleration of payment of amounts due under our borrowings;
•extensive regulation adversely affecting our ability to achieve our business objectives or the failure to comply with these regulations adversely affecting our financial condition and results of operations; and
•the other risks and uncertainties discussed in Part I, Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2022.
Forward-looking statements speak only as of the date on which they are made. Except as expressly required under federal securities laws or the rules and regulations of the Securities and Exchange Commission ("SEC"), we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
September 30,
2023		December 31,
2022
(in thousands, except share and per share data)
Assets
Investments:
Fixed-maturity securities, available for sale, at fair value (amortized cost: $2,563,914, allowance for credit losses: $565 – 2023; $1,933,632 and $366 –2022)
$2,364,759 $1,760,100 
Equity securities, at fair value (cost: $178,162 – 2023; $126,478 – 2022)
207,951 152,471 
Real estate investments, net14,372 76,387 
Short-term investments29,065 41,337 
Total investments2,616,147 2,030,295 
Cash and cash equivalents162,944 156,274 
Investment income due and accrued19,028 14,451 
Premiums and fees receivable, net of allowance for credit losses of $14,379 – 2023; $8,067 – 2022
124,087 105,754 
Reinsurance recoverables, net of allowance for credit losses of $459 – 2023; $459 – 2022
240,852 220,454 
Ceded unearned premiums50,967 42,935 
Deferred policy acquisition costs, net of ceding commissions86,181 61,594 
Intangible assets3,538 3,538 
Deferred income tax asset, net68,535 56,983 
Other assets70,257 54,844 
Total assets$3,442,536 $2,747,122 
Liabilities and Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses$1,564,907 $1,238,402 
Unearned premiums690,354 499,677 
Payable to reinsurers45,853 32,024 
Accounts payable and accrued expenses32,758 31,361 
Debt183,777 195,747 
Other liabilities1,125 4,462 
Total liabilities2,518,774 2,001,673 
Stockholders’ equity:
Common stock, $0.01 par value, 400,000,000 shares authorized, 23,172,925 and 23,090,526 shares issued and outstanding at September 30, 2023 and December 31, 2022 respectively
232 231 
Additional paid-in capital350,452 347,015 
Retained earnings728,105 533,121 
Accumulated other comprehensive loss(155,027)(134,918)
Total stockholders’ equity923,762 745,449 
Total liabilities and stockholders’ equity$3,442,536 $2,747,122 
See accompanying notes to condensed consolidated financial statements.
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KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income and Comprehensive Income (Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except per share data)
Revenues:
Gross written premiums$377,789 $284,111 $1,173,599 $806,625 
Ceded written premiums(83,509)(48,212)(215,248)(111,885)
Net written premiums294,280 235,899 958,351 694,740 
Change in unearned premiums(12,778)(26,640)(182,645)(116,761)
Net earned premiums281,502 209,259 775,706 577,979 
Fee income6,841 5,099 20,028 14,363 
Net investment income27,086 13,858 71,953 33,540 
Change in the fair value of equity securities
(5,533)(6,095)3,796 (37,199)
Net realized investment gains (losses)4,274 (173)913 1,535 
Change in allowance for credit losses on investments(143)— (199)— 
Other income340 112 1,081 381 
Total revenues314,367 222,060 873,278 590,599 
Expenses:
Losses and loss adjustment expenses155,552 134,788 441,628 344,333 
Underwriting, acquisition and insurance expenses60,348 45,244 168,567 132,025 
Interest expense2,573 1,716 7,867 2,306 
Other expenses401 212 1,220 521 
Total expenses218,874 181,960 619,282 479,185 
Income before income taxes95,493 40,100 253,996 111,414 
Total income tax expense 19,378 7,116 49,290 19,549 
Net income76,115 32,984 204,706 91,865 
Other comprehensive income (loss):
Change in net unrealized losses on available-for-sale investments, net of taxes(23,511)(46,652)(20,109)(165,464)
Total comprehensive income (loss) $52,604 $(13,668)$184,597 $(73,599)
Earnings per share:
Basic$3.30 $1.45 $8.89 $4.03 
Diluted$3.26 $1.43 $8.79 $3.98 
Weighted-average shares outstanding:
Basic23,058 22,813 23,036 22,783 
Diluted23,315 23,114 23,298 23,099 

See accompanying notes to condensed consolidated financial statements.
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KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
Shares of Common StockCommon StockAdditional Paid-in CapitalRetained EarningsAccumu-
lated
 Other
Compre-
hensive
Loss		Total
Stock-
holders' Equity
(in thousands, except share and per share data)
Balance at December 31, 2022
23,090,526 $231 $347,015 $533,121 $(134,918)$745,449 
Issuance of common stock under stock-based compensation plan
70,047 1 323 — — 324 
Stock-based compensation expense
— — 1,988 — — 1,988 
Restricted shares withheld for taxes(6,628)— (2,104)— — (2,104)
Dividends declared ($0.14 per share)
— — — (3,235)— (3,235)
Other comprehensive income, net of tax— — — — 17,509 17,509 
Net income— — — 55,800 — 55,800 
Balance at March 31, 202323,153,945 232 347,222 585,686 (117,409)815,731 
Issuance of common stock under stock-based compensation plan
15,046 — 230 — — 230 
Stock-based compensation expense
— — 2,543 — — 2,543 
Restricted shares withheld for taxes (6,816)— (2,130)— — (2,130)
Dividends declared ($0.14 per share)
— — — (3,243)— (3,243)
Other comprehensive loss, net of tax— — — — (14,107)(14,107)
Net income— — — 72,791 — 72,791 
Balance at June 30, 202323,162,175 232 347,865 655,234 (131,516)871,815 
Issuance of common stock under stock-based compensation plan
10,750 — 172 — — 172 
Stock-based compensation expense
— — 2,415 — — 2,415 
Dividends declared ($0.14 per share)
— — — (3,244)— (3,244)
Other comprehensive loss, net of tax— — — — (23,511)(23,511)
Net income— — — 76,115 — 76,115 
Balance at September 30, 202323,172,925 $232 $350,452 $728,105 $(155,027)$923,762 




















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KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - Continued
Shares of Common StockCommon StockAdditional Paid-in CapitalRetained EarningsAccumu-
lated
 Other
Compre-
hensive
Income (Loss)		Total
Stock-
holders' Equity
(in thousands, except per share data)
Balance at December 31, 2021
22,834,377 $228 $295,040 $385,942 $18,125 $699,335 
Issuance of common stock under stock-based compensation plan
75,630 1 377 — — 378 
Stock-based compensation expense
— — 1,489 — — 1,489 
Restricted shares withheld for taxes(2,459)— (516)— — (516)
Dividends declared ($0.13 per share)
— — — (2,977)— (2,977)
Other comprehensive loss, net of tax— — — — (63,930)(63,930)
Net income— — — 31,791 — 31,791 
Balance at March 31, 202222,907,548 229 296,390 414,756 (45,805)665,570 
Issuance of common stock under stock-based compensation plan
8,630 — 150 — — 150 
Stock-based compensation expense
— — 1,857 — — 1,857 
Restricted shares withheld for taxes (12,420)— (2,741)— — (2,741)
Dividends declared ($0.13 per share)
— — — (2,978)— (2,978)
Other comprehensive loss, net of tax— — — — (54,882)(54,882)
Net income— — — 27,090 — 27,090 
Balance at June 30, 202222,903,758 229 295,656 438,868 (100,687)634,066 
Issuance of common stock under stock-based compensation plan
20,764 — 373 — — 373 
Stock-based compensation expense
— — 1,663 — — 1,663 
Dividends declared ($0.13 per share)
— — — (2,979)— (2,979)
Other comprehensive loss, net of tax— — — — (46,652)(46,652)
Net income— — — 32,984 — 32,984 
Balance at September 30, 202222,924,522 $229 $297,692 $468,873 $(147,339)$619,455 


See accompanying notes to condensed consolidated financial statements.

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KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30,
20232022
(in thousands)
Operating activities:
Net cash provided by operating activities$648,308 $456,699 
Investing activities:
Purchase of property and equipment(5,501)(4,744)
Purchase of real estate investment(1,733)— 
Sale of real estate investment62,036 — 
Change in short-term investments, net13,071 (81,113)
Purchases – fixed-maturity securities(947,920)(599,735)
Purchases – equity securities(62,047)(1,098)
Sales – fixed-maturity securities204,416 73,066 
Sales – equity securities7,503 3,990 
Maturities and calls – fixed-maturity securities113,811 89,783 
Net cash used in investing activities(616,364)(519,851)
Financing activities:
Proceeds from notes payable50,000 125,000 
Payoff of credit facility(62,000)(43,000)
Debt issuance costs(43)(2,381)
Payroll taxes withheld and remitted on share-based payments(4,234)(3,257)
Proceeds from stock options exercised726 901 
Dividends paid(9,723)(8,938)
Net cash (used in) provided by financing activities(25,274)68,325 
Net change in cash and cash equivalents6,670 5,173 
Cash and cash equivalents at beginning of year156,274 121,040 
Cash and cash equivalents at end of period$162,944 $126,213 
See accompanying notes to condensed consolidated financial statements.

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KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

1.    Summary of Significant Accounting Policies
Basis of presentation
The unaudited condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its subsidiaries ("the Company") included in the Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. All significant intercompany balances and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results of operations for the full year.
Use of estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, if any, at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Prospective accounting pronouncements
There are no prospective accounting standards which, upon their effective date, would have a material impact on the Company's condensed consolidated financial statements.
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2.     Investments
Available-for-sale investments
The following tables summarize the available-for-sale investments at September 30, 2023 and December 31, 2022:
September 30, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesEstimated Fair Value
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$42,705 $— $(1,200)$— $41,505 
Obligations of states, municipalities and political subdivisions
190,263 22 (30,339)— 159,946 
Corporate and other securities1,299,277 34 (87,518)(564)1,211,229 
Asset-backed securities599,813 703 (6,822)— 593,694 
Residential mortgage-backed securities
361,833 44 (66,329)— 295,548 
Commercial mortgage-backed securities70,023 — (7,185)(1)62,837 
Total fixed-maturity investments$2,563,914 $803 $(199,393)$(565)$2,364,759 

December 31, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesEstimated Fair Value
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$17,934 $— $(1,193)$— $16,741 
Obligations of states, municipalities and political subdivisions
230,746 330 (26,444)— 204,632 
Corporate and other securities909,285 730 (76,757)(366)832,892 
Asset-backed securities361,248 292 (8,534)— 353,006 
Residential mortgage-backed securities
349,066 52 (55,156)— 293,962 
Commercial mortgage-backed securities65,353 — (6,486)— 58,867 
Total fixed-maturity investments$1,933,632 $1,404 $(174,570)$(366)$1,760,100 
Available-for-sale securities in a loss position
The Company regularly reviews all its available-for-sale investments with unrealized losses to assess whether the decline in the fair value is deemed to be a credit loss. The Company considers a number of factors in completing its review of credit losses, including the extent to which a security's fair value has been below cost and the financial condition of an issuer. In addition to specific issuer information, the Company also evaluates the current market and interest rate environment. Generally, a decline in a security’s value caused by a change in the market or interest rate environment does not constitute a credit loss.
For fixed-maturity securities, the Company also considers whether it intends to sell the security or, if it is more likely than not that it will be required to sell the security before recovery, and its ability to recover all amounts outstanding when contractually due. When assessing whether it intends to sell a fixed-maturity security or, if it is
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likely to be required to sell a fixed-maturity security before recovery of its amortized cost, the Company evaluates facts and circumstances including, but not limited to, decisions to reposition the investment portfolio, potential sales of investments to meet cash flow needs and potential sales of investments to capitalize on favorable pricing.
For fixed-maturity securities where a decline in fair value is below the amortized cost basis and the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, an impairment is recognized in net income based on the fair value of the security at the time of assessment. For fixed-maturity securities that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before recovery of its amortized cost, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. Inputs into the cash flow analysis include default rates and recoverability rates based on credit rating. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the impairment, which is recognized in net income through an allowance for credit losses. Any remaining decline in fair value represents the noncredit portion of the impairment, which is recognized in other comprehensive income.
The Company reports investment income due and accrued separately from available-for-sale investments and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through earnings at the time the issuer of the bond defaults or is expected to default on payments.
At September 30, 2023, the Company's credit loss review resulted in an allowance for credit losses on 6 securities. The following table presents changes in the allowance for expected credit losses on available-for-sale securities for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Beginning balance$422 $— $366 $— 
Increase to allowance from securities for which credit losses were not previously recorded1 — 1 — 
Reduction from securities sold during the period— — (12)— 
Net increase from securities that had an allowance at the beginning of the period142 — 210 — 
Ending balance$565 $— $565 $— 
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The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position:
September 30, 2023
Less than 12 Months12 Months or LongerTotal
Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of the U.S. government agencies$26,341 $(84)$15,164 $(1,116)$41,505 $(1,200)
Obligations of states, municipalities and political subdivisions
42,151 (1,046)116,398 (29,293)158,549 (30,339)
Corporate and other securities
564,003 (9,918)643,417 (77,600)1,207,420 (87,518)
Asset-backed securities273,264 (3,895)245,476 (2,927)518,740 (6,822)
Residential mortgage-backed securities
36,467 (326)257,041 (66,003)293,508 (66,329)
Commercial mortgage-backed securities5,953 (129)56,884 (7,056)62,837 (7,185)
Total fixed-maturity investments$948,179 $(15,398)$1,334,380 $(183,995)$2,282,559 $(199,393)

At September 30, 2023, the Company held 1,233 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $2.3 billion and gross unrealized losses of $199.4 million. Of these securities, 782 were in a continuous unrealized loss position for greater than one year. As discussed above, the Company regularly reviews all fixed-maturity securities within its investment portfolio to determine whether a credit loss has occurred. Based on the Company's review as of September 30, 2023, except for securities previously discussed, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At September 30, 2023, 82.0% of the Company’s fixed-maturity securities were rated "A-" or better and all of the Company’s fixed-maturity securities made expected coupon payments under the contractual terms of the securities.
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December 31, 2022
Less than 12 Months
12 Months or Longer
Total
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$10,538 $(447)$6,204 $(746)$16,742 $(1,193)
Obligations of states, municipalities and political subdivisions
141,460 (20,347)17,314 (6,097)158,774 (26,444)
Corporate and other securities
583,619 (42,675)156,148 (34,082)739,767 (76,757)
Asset-backed securities216,487 (5,429)97,703 (3,105)314,190 (8,534)
Residential mortgage-backed securities
98,909 (12,324)194,773 (42,832)293,682 (55,156)
Commercial mortgage-backed securities50,666 (4,732)8,201 (1,754)58,867 (6,486)
Total fixed-maturity investments$1,101,679 $(85,954)$480,343 $(88,616)$1,582,022 $(174,570)

Contractual maturities of available-for-sale fixed-maturity securities
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at September 30, 2023 are summarized, by contractual maturity, as follows:
September 30, 2023
AmortizedEstimated
CostFair Value
(in thousands)
Due in one year or less$184,335 $181,981 
Due after one year through five years923,152 889,587 
Due after five years through ten years194,507 167,015 
Due after ten years230,251 174,097 
Asset-backed securities599,813 593,694 
Residential mortgage-backed securities361,833 295,548 
Commercial mortgage-backed securities70,023 62,837 
Total fixed-maturity securities $2,563,914 $2,364,759 

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower.
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Real estate investments
In December 2022, the Company completed the purchase of a real estate investment property. Real estate investments consisted of the following:
September 30, 2023December 31, 2022
(in thousands)
Building$— $44,931 
Land14,372 17,946 
Intangible in-place lease— 9,749 
Site improvements— 2,686 
Parking deck— 1,311 
14,372 76,623 
Accumulated depreciation— (236)
Total real estate investments, net$14,372 $76,387 
During the third quarter of 2023, the Company sold the parking deck, one of the office buildings and the related in-place leases of its real estate investment property for approximately $62.0 million in cash, net of seller’s costs. The Company recognized a gain on the sale of $4.3 million, which is included in net realized investment gains on the consolidated statement of income. The Company used the net sale proceeds to pay down a portion of its Credit Facility. Concurrent with the sale of the investment property, the Company refined its plans for the remainder of the property and determined the predominant use of the remaining office building would be for future office space expansion. Upon this determination, the Company reclassified the carrying value of the building to construction in progress within property and equipment.
Net investment income
The following table presents the components of net investment income for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Interest:
Taxable bonds$24,644 $12,041 $63,672 $29,015 
Tax exempt municipal bonds522 849 1,704 2,558 
Cash equivalents and short-term investments758 475 2,337 598 
Dividends on equity securities1,271 1,085 3,692 3,208 
Real estate investment income851 — 3,565 — 
Gross investment income28,046 14,450 74,970 35,379 
Investment expenses(960)(592)(3,017)(1,839)
Net investment income$27,086 $13,858 $71,953 $33,540 

Investment expenses included depreciation expense related to real estate investments of $0.5 million for the nine months ended September 30, 2023. There was no depreciation of real estate investments for the three months ended September 30, 2023 as the related depreciable real estate investments were reclassified to held for sale prior to being
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sold during the period. There was no depreciation of real estate investments for the three and nine months ended September 30, 2022.
Realized investment gains and losses
The following table presents realized investment gains and losses for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Fixed-maturity securities:
Realized gains$74 $— $1,811 $1,076 
Realized losses(51)(177)(2,268)(720)
Net realized (losses) gains from fixed-maturity securities23 (177)(457)356 
Equity securities:
Realized gains— — 1,626 1,363 
Realized losses— — (4,487)(148)
Net realized (losses) gains from equity securities— — (2,861)1,215 
Realized (losses) gains from the sales of short-term investments1 4 (19)(36)
Realized gain on sale of real estate investments4,250 — 4,250 — 
Net realized investment gains (losses)$4,274 $(173)$913 $1,535 
The net realized gains or losses on sales of equity securities represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) in the consolidated statement of income consists of two components: (1) the reversal of the gain or loss recognized in previous periods on equity securities sold and (2) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.
Change in net unrealized gains (losses) on fixed-maturity securities
For the three months ended September 30, 2023 and 2022, the changes in net unrealized losses for fixed-maturity securities were $(29.8) million and $(59.1) million, respectively. For the nine months ended September 30, 2023 and 2022, the changes in net unrealized losses for fixed-maturity securities were $(25.4) million and $(209.4) million, respectively.
Insurance – statutory deposits
The Company had invested assets with a fair value of $5.7 million and $5.9 million on deposit with state regulatory authorities at September 30, 2023 and December 31, 2022, respectively.
Payable for investments purchased
The Company recorded a payable for investments purchased, not yet settled, of $1.0 million and $1.8 million at September 30, 2023 and December 31, 2022, respectively. The payable balance was included in the "other liabilities" line item of the consolidated balance sheet.
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3.     Fair Value Measurements
Fair value is estimated for each class of financial instrument based on the framework established in the fair value accounting guidance. Fair value is defined as the price in the principal market that would be received for an asset or paid to transfer a liability to facilitate an orderly transaction between market participants on the measurement date. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Fair value hierarchy disclosures are based on the quality of inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value.
The three levels of the fair value hierarchy are defined as follows:
Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets.
Level 2 - Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs.
Level 3 - Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement.
Fair values of the Company's investment portfolio are estimated using unadjusted prices obtained by its investment accounting vendor from nationally recognized third-party pricing services, where available. Values for U.S. Treasuries, exchange traded funds and common stocks are generally based on Level 1 inputs, which use quoted prices in active markets for identical assets. For other fixed-maturity securities and non-redeemable preferred stock, the pricing vendors use a pricing methodology involving the market approach, including pricing models which use prices and relevant market information regarding a particular security or securities with similar characteristics to establish a valuation. The estimates of fair value of these investments are included in the amounts disclosed as Level 2. For those investments where significant inputs are unobservable, the Company's investment accounting vendor obtains valuations from pricing vendors or brokers using the market approach and income approach valuation techniques and are disclosed as Level 3.
Management performs several procedures to ascertain the reasonableness of investment values included in the condensed consolidated financial statements, including 1) obtaining and reviewing internal control reports from the Company's investment accounting vendor that assess fair values from third party pricing services, 2) discussing with the Company's investment accounting vendor its process for reviewing and validating pricing obtained from third party pricing services and 3) reviewing the security pricing received from the Company's investment accounting vendor and monitoring changes in unrealized gains and losses at the individual security level. The Company has evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs.
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The following tables present the balances of assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy:
September 30, 2023
Level 1Level 2Level 3Total
(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies$36,537 $4,968 $— $41,505 
Obligations of states, municipalities and political subdivisions
— 159,946 — 159,946 
Corporate and other securities— 1,211,229 — 1,211,229 
Asset-backed securities— 593,694 — 593,694 
Residential mortgage-backed securities— 295,548 — 295,548 
Commercial mortgage-backed securities— 62,837 — 62,837 
Total fixed-maturity securities36,537 2,328,222 — 2,364,759 
Equity securities:
Exchange traded funds106,565 — — 106,565 
Non-redeemable preferred stock— 31,755 — 31,755 
Common stocks69,631 — — 69,631 
Total equity securities176,196 31,755 — 207,951 
Short-term investments4,725 24,340 — 29,065 
Total$217,458 $2,384,317 $— $2,601,775 

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December 31, 2022
Level 1Level 2Level 3Total
(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$16,741 $— $— $16,741 
Obligations of states, municipalities and political subdivisions
— 204,632 — 204,632 
Corporate and other securities— 832,892 — 832,892 
Asset-backed securities— 353,006 — 353,006 
Residential mortgage-backed securities— 293,962 — 293,962 
Commercial mortgage-backed securities— 58,867 — 58,867 
Total fixed-maturity securities16,741 1,743,359 — 1,760,100 
Equity securities:
Exchange traded funds104,202 — — 104,202 
Non-redeemable preferred stock— 38,162 — 38,162 
Common stocks10,107 — — 10,107 
Total equity securities114,309 38,162 — 152,471 
Short-term investments31,366 9,971 — 41,337 
Total$162,416 $1,791,492 $— $1,953,908 
There were no assets or liabilities measured at fair value on a nonrecurring basis as of September 30, 2023 or December 31, 2022.
The carrying amount of the Company's fixed-rate senior notes was $175.0 million and $125.0 million, less debt issuance costs, and the corresponding estimated fair value was $159.5 million and $117.2 million at September 30, 2023 and December 31, 2022, respectively. The fair value measurement was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under the Company's credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2. The estimated fair value of outstanding borrowings under the Company's revolving Credit Facility approximated its carrying value at September 30, 2023 and December 31, 2022. See Note 13 for further information regarding the Company's debt arrangements.
The Company holds cash equivalents that are managed as part of its investment portfolio and, due to the short-term maturities of these assets, the carrying value of these investments approximates fair value. The Company held cash equivalents of $5.4 million and $58.0 million at September 30, 2023 and December 31, 2022, respectively.

4.     Allowance for Credit Losses
Premiums receivable
Premiums receivable balances are carried at face value, net of any allowance for credit losses. The allowance for credit losses represents an estimate of amounts considered uncollectible based on the Company’s assessment of the collectability of receivables that are past due. The estimate considers historical loss data, current and future economic conditions and specific identification of collectability concerns, where applicable. The following table presents the change in the allowance for credit losses for premiums receivable for the three and nine months ended September 30, 2023 and 2022:
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Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Beginning balance$12,167 $5,612 $8,067 $3,391 
Current period change for estimated uncollectible premiums2,341 1,874 7,459 4,818 
Write-offs of uncollectible premiums receivable(129)(195)(1,147)(918)
Ending balance$14,379 $7,291 $14,379 $7,291 

5.     Deferred Policy Acquisition Costs
The following table presents the amounts of policy acquisition costs deferred and amortized for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Balance, beginning of period$85,326 $54,806 $61,594 $41,968 
Policy acquisition costs deferred:
Direct commissions54,580 41,525 169,223 117,621 
Ceding commissions(24,230)(13,886)(62,779)(32,678)
Other underwriting and policy acquisition costs1,623 2,302 7,511 6,534 
Policy acquisition costs deferred31,973 29,941 113,955 91,477 
Amortization of net policy acquisition costs
(31,118)(26,302)(89,368)(75,000)
Balance, end of period$86,181 $58,445 $86,181 $58,445 
Amortization of net policy acquisition costs is included in the line item "Underwriting, acquisition and insurance expenses" in the accompanying consolidated statements of income and comprehensive income.
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6.     Property and Equipment, Net
Property and equipment are included in "other assets" in the accompanying consolidated balance sheets and consist of the following:
September 30, 2023December 31, 2022
(in thousands)
Building$37,107 $33,065 
Parking deck5,072 5,072 
Land3,068 3,068 
Equipment3,859 3,444 
Software14,402 11,410 
Furniture and fixtures3,049 2,615 
Land improvements474 474 
Leasehold improvements153 — 
Construction in progress - building5,700 2,618 
72,884 61,766 
Accumulated depreciation(10,620)(8,291)
Total property and equipment, net$62,264 $53,475 

7.     Underwriting, Acquisition and Insurance Expenses
Underwriting, acquisition and insurance expenses for the three and nine months ended September 30, 2023 and 2022 consist of the following:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Underwriting, acquisition and insurance expenses incurred:
Direct commissions$53,035 $37,177 $143,181 $99,540 
Ceding commissions(23,396)(12,939)(59,882)(30,069)
Other underwriting expenses30,709 21,006 85,268 62,554 
Total$60,348 $45,244 $168,567 $132,025 
Other underwriting expenses within underwriting, acquisition and insurance expenses include salaries, bonus and employee benefits expenses of $23.1 million and $15.4 million for the three months ended September 30, 2023 and 2022, respectively. Other underwriting expenses within underwriting, acquisition and insurance expenses included salaries, bonus and employee benefits expenses of $63.0 million and $46.1 million for the nine months ended September 30, 2023 and 2022, respectively. See Note 15 for further information regarding underwriting, acquisition and insurance expenses.

8.    Stock-based Compensation
On July 27, 2016, the Kinsale Capital Group, Inc. 2016 Omnibus Incentive Plan (the "2016 Incentive Plan") became effective. The 2016 Incentive Plan, which is administered by the Compensation, Nominating and Corporate Governance Committee of the Company’s Board of Directors, provides for grants of stock options, restricted stock,
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restricted stock units and other stock-based awards to officers, employees, directors, independent contractors and consultants. The number of shares of common stock available for issuance under the 2016 Incentive Plan may not exceed 2,073,832.
The total compensation cost that has been charged against income for share-based compensation arrangements was $6.9 million and $5.0 million for the nine months ended September 30, 2023 and 2022, respectively.
Restricted Stock Awards
During the nine months ended September 30, 2023, the Company granted restricted stock awards under the 2016 Incentive Plan. The restricted stock awards were valued on the date of grant and will vest over a period of 1 to 4 years corresponding to the anniversary date of the grants. The fair value of restricted stock awards was determined based on the closing trading price of the Company’s shares on the grant date or, if no shares were traded on the grant date, the last preceding date for which there was a sale of shares. Except for restrictions placed on the transferability of restricted stock, holders of unvested restricted stock have full stockholder’s rights, including voting rights and the right to receive dividends. Unvested shares of restricted stock awards and accrued dividends, if any, are forfeited upon the termination of service to or employment with the Company.
A summary of restricted stock activity under the 2016 Incentive Plan for the nine months ended September 30, 2023 is as follows:
For the Nine Months Ended
September 30, 2023
Number of SharesWeighted Average Grant Date Fair Value per Share
Non-vested outstanding at the beginning of the period98,621 $182.37 
Granted51,176 $313.35 
Vested(40,582)$163.62 
Forfeited(725)$225.64 
Non-vested outstanding at the end of the period108,490 $250.88 
Employees surrender shares to pay for withholding tax obligations resulting from any vesting of restricted stock awards. During the nine months ended September 30, 2023, shares withheld for taxes in connection with the vesting of restricted stock awards totaled 13,444.
The weighted average grant-date fair value per share of the Company's restricted stock awards granted during the nine months ended September 30, 2023 and 2022 was $313.35 and $211.86, respectively. The fair value of restricted stock awards that vested during the nine months ended September 30, 2023 and 2022 was $12.6 million and $9.9 million, respectively. As of September 30, 2023, the Company had $21.7 million of total unrecognized stock-based compensation expense expected to be charged to earnings over a weighted-average period of 2.8 years.
Stock Options
On July 27, 2016, the Board of Directors approved, and the Company granted, 1,036,916 stock options with an exercise price equal to the initial public offering price of $16.00 per share and a weighted-average grant-date fair value of $2.71 per share. The options have a maximum contractual term of 10 years and vested in 4 equal annual installments following the date of the grant. The value of the options granted was estimated at the date of grant using the Black-Scholes pricing model.
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A summary of option activity as of September 30, 2023, and changes during the period then ended is presented below:
Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Years of Contractual TermAggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2023256,357 $16.00 
Granted— — 
Forfeited— — 
Exercised(45,392)16.00 
Outstanding at September 30, 2023
210,965 $16.00 2.8$83,991 
Exercisable at September 30, 2023
210,965 $16.00 2.8$83,991 
The total intrinsic value of options exercised was $14.6 million and $12.2 million during the nine months ended September 30, 2023 and 2022, respectively. 
9.    Earnings Per Share
The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations contained in the condensed consolidated financial statements:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except per share data)
Net income$76,115 $32,984 $204,706 $91,865 
Weighted average common shares outstanding - basic23,058 22,813 23,036 22,783 
Effect of potential dilutive securities:
Conversion of stock options208 262 220 276 
Conversion of restricted stock49 39 42 40 
Weighted average common shares outstanding - diluted23,315 23,114 23,298 23,099 
Earnings per common share:
Basic$3.30 $1.45 $8.89 $4.03 
Diluted$3.26 $1.43 $8.79 $3.98 
There were no anti-dilutive stock awards for the three months ended September 30, 2023 and 2022. There were 47 thousand and 48 thousand anti-dilutive stock awards for the nine months ended September 30, 2023 and 2022, respectively.

10. Income Taxes
The Company uses the estimated annual effective tax rate method for calculating its tax provision in interim periods, which represents the Company's best estimate of the effective tax rate expected for the full year. The estimated
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annual effective tax rate typically differs from the U.S. statutory tax rate, primarily as a result of tax-exempt investment income and any discrete items recognized during the period. The Company's effective tax rates were 19.4% and 17.5% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rates were lower than the federal statutory rate of 21% due primarily to the tax benefits from stock-based compensation and from income generated by certain tax-exempt investments.
11.     Reserves For Unpaid Losses and Loss Adjustment Expenses
The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses:
September 30,
20232022
(in thousands)
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year
$1,238,402 $881,344 
Less: reinsurance recoverable on unpaid losses
177,039 117,561 
Net reserves for unpaid losses and loss adjustment expenses, beginning of year
1,061,363 763,783 
Incurred losses and loss adjustment expenses:
Current year470,235 373,183 
Prior years(28,607)(28,850)
Total net losses and loss adjustment expenses incurred441,628 344,333 
Payments:
Current year22,156 13,028 
Prior years136,380 84,827 
Total payments158,536 97,855 
Net reserves for unpaid losses and loss adjustment expenses, end of period
1,344,455 1,010,261 
Reinsurance recoverable on unpaid losses220,452 187,056 
Gross reserves for unpaid losses and loss adjustment expenses, end of period
$1,564,907 $1,197,317 
During the nine months ended September 30, 2023, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2022 developed favorably by $28.6 million, of which $39.0 million was attributable to the 2021 and 2022 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2017 through 2019 accident years due to long-tailed property damage claims within the construction-related primary casualty business that are more exposed to the increase in inflation.
During the nine months ended September 30, 2022, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2021 developed favorably by $28.9 million, of which $32.0 million was attributable to the 2020 and 2021 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2018 accident year due to routine variability in reported losses and modest adjustments in actuarial assumptions. Current accident year incurred losses and loss adjustment expenses for the nine months ended September 30, 2022 included $26.2 million of catastrophe losses primarily related to Hurricane Ian.
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12.     Reinsurance
The following table summarizes the effect of reinsurance on premiums written and earned for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Premiums written:
Direct$377,789 $284,111 $1,173,599 $806,625 
Ceded(83,509)(48,212)(215,248)(111,885)
Net written$294,280 $235,899 $958,351 $694,740 
Premiums earned:
Direct$362,689 $254,855 $982,922 $682,619 
Ceded(81,187)(45,596)(207,216)(104,640)
Net earned$281,502 $209,259 $775,706 $577,979 
The following table summarizes ceded losses and loss adjustment expenses for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Ceded incurred losses and loss adjustment expenses$27,381 $56,774 $89,371 $79,790 
The following table presents reinsurance recoverables on paid and unpaid losses as of September 30, 2023 and December 31, 2022:
September 30, 2023December 31, 2022
(in thousands)
Reinsurance recoverables on paid losses$20,400 $43,415 
Reinsurance recoverables on unpaid losses, net220,452 177,039 
Reinsurance recoverables, net$240,852 $220,454 

13.     Debt
Note Purchase and Private Shelf Agreement
On July 22, 2022, the Company entered into a Note Purchase and Private Shelf Agreement (the “Note Purchase Agreement”) with PGIM, Inc. (“Prudential”) and the purchasers of the Series A Notes (as defined below), named in the Purchaser Schedule attached thereto (collectively, the “Note Purchasers”). Pursuant to the Note Purchase Agreement, on July 22, 2022, the Company issued $125.0 million aggregate principal amount of 5.15% Series A Senior Notes Due July 22, 2034 (collectively, the "Series A Notes”) to the Note Purchasers. The Note Purchase Agreement also provides for the issuance of additional shelf notes issued thereunder (the “Shelf Notes” and, together with the Series A Notes, the “Notes”) not to exceed $150.0 million of Notes outstanding thereunder.
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On September 18, 2023, the Company entered into a First Amendment to the Note Purchase Agreement and increased the additional Shelf Notes limit to $200.0 million. Pursuant to the First Amendment to the Note Purchase Agreement, on September 18, 2023, the Company issued a $50.0 million aggregate principal amount 6.21% Series B Senior Note due July 22, 2034 to the note purchaser.
The Series A and B Notes are senior unsecured obligations of the Company and rank pari passu with the Company’s Amended and Restated Credit Agreement.
The Series A Notes bear interest at 5.15% per annum and mature on July 22, 2034, unless paid earlier by the Company. Should the Company elect to prepay the Series A Notes, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Note Purchase Agreement. Principal payments are required annually beginning on July 22, 2030 in equal installments of $25.0 million through July 22, 2034.
The Series B Note bears interest at 6.21% per annum and matures on July 22, 2034, unless paid earlier by the Company. Should the Company elect to prepay the Series B Note, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Note Purchase Agreement. Principal payments are required annually beginning on July 22, 2030 in equal installments of $10.0 million through July 22, 2034.
Credit Agreement
On May 28, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) that provided the Company with a $50.0 million senior unsecured revolving credit facility (the “Credit Facility”) and an uncommitted accordion feature that permits the Company to increase the commitments by an additional $30.0 million. On July 22, 2022, the Company entered into an Amended and Restated Credit Agreement, with JPMorgan Chase Bank, N.A., as administrative agent and as issuing bank, Truist Bank, as syndication agent, and the lenders party thereto (collectively, the “Lenders”). The Amended and Restated Credit Agreement 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 the Company obtaining commitments from existing or new lenders and satisfying other conditions specified in the Amended and Restated Credit Agreement. The Company is required to pay a Commitment Fee Rate (as defined therein) of 0.25% on the average daily amount of the Available Revolving Commitment (as defined therein). Borrowings under the Amended and Restated Credit Agreement may be used for general corporate purposes (which may include, without limitation, to fund future growth, to finance working capital needs, to fund capital expenditures, and to refinance, redeem or repay indebtedness). In September 2023, the Company used proceeds from the sale of its real estate investment property to pay down $62.0 million from the Credit Facility.
The loans under the Amended and Restated Credit Agreement bear interest, at the Company's option, at a rate equal to the Adjusted Term SOFR Rate (as defined therein) plus 1.625% or the Alternate Base Rate (as defined therein) plus 0.625%. For the nine months ended September 30, 2023, the annual weighted-average interest rate of borrowings under the Credit Facility was 6.75%.
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The following table presents the Company's outstanding debt as of September 30, 2023 and December 31, 2022:

IssuanceMaturitiesSeptember 30, 2023December 31, 2022
(in thousands)
Credit FacilityVarious7/22/2027$11,000 $73,000 
5.15% Series A Notes
7/22/20227/22/2034125,000 125,000 
6.21% Series B Note
9/18/20237/22/203450,000 — 
Less: Unamortized debt issuance costs(2,223)(2,253)
Total debt$183,777 $195,747 
Both the Note Purchase Agreement and the Amended and Restated Credit Agreement contain representations and affirmative and negative covenants, including financial covenants customary for agreements of this type, as well as customary events of default provisions. As of September 30, 2023, the Company was in compliance with all of its financial covenants under both the Note Purchase Agreement and the Credit Facility.

14.     Other Comprehensive Loss
The following table summarizes the components of other comprehensive loss for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Unrealized losses on fixed-maturity securities arising during the period, before income taxes$(29,931)$(59,230)$(26,997)$(209,198)
Income tax benefit6,286 12,439 5,670 43,932 
Unrealized losses arising during the period, net of income taxes(23,645)(46,791)(21,327)(165,266)
Less reclassification adjustment:
Net realized (losses) gains on fixed-maturity securities, before income taxes(27)(177)(1,343)250 
Income tax benefit (expense)6 38 282 (52)
Reclassification adjustment included in net income(21)(139)(1,061)198 
Change in allowance for credit losses on investments, before income taxes(143)— (199)— 
Income tax benefit 30 — 42 — 
Reclassification adjustment included in net income(113)— (157)— 
Other comprehensive loss$(23,511)$(46,652)$(20,109)$(165,464)
The sale or credit loss of an available-for-sale fixed-maturity security results in amounts being reclassified from accumulated other comprehensive loss to realized gains or losses in current period earnings. The related tax effect of the reclassification adjustment is recorded in income tax expense in current period earnings. See Note 2 for additional information.
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15.     Immaterial Correction to Prior Period Financial Statements for Accounting Policy Change
The Company charges insureds certain policy fees and recognizes such fees into earnings when the related premium is written. Previously, the Company presented these fees as a reduction of underwriting, acquisition and insurance expenses. Effective April 1, 2023, the Company corrected its accounting policy to present these fees as fee income in the consolidated statements of income and comprehensive income in accordance with ASC 944, Financial Services–Insurance.
The Company presented $6.8 million and $20.0 million as fee income for the three and nine months ended September 30, 2023, respectively, in the consolidated statements of income and comprehensive income. The Company reclassified $5.1 million and $14.4 million to fee income from underwriting, acquisition and insurance expenses in the previously issued financial statements on Form 10-Q for the three and nine months ended September 30, 2022, respectively, to correct prior periods’ presentation. The Company considered the qualitative and quantitative impacts and determined that the correction was not material to the Company's previously issued consolidated financial statements.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The discussion and analysis below include certain forward-looking statements that are subject to risks, uncertainties and other factors described in "Risk Factors" in this Quarterly Report on Form 10-Q and in the Annual Report on Form 10-K for the year ended December 31, 2022. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors.
The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2023, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022.
References to the "Company," "Kinsale," "we," "us," and "our" are to Kinsale Capital Group, Inc. and its subsidiaries, unless the context otherwise requires.

Overview
Founded in 2009, Kinsale is a specialty insurance company. Kinsale focuses exclusively on the excess and surplus lines ("E&S") market in the U.S., where we use our underwriting expertise to write coverages for hard-to-place small business risks and personal lines risks. We market these insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands, primarily through a network of independent insurance brokers.
We have one reportable segment, our Excess and Surplus Lines Insurance segment, which offers property and casualty ("P&C") insurance products through the E&S market. For the first nine months of 2023, the percentage breakdown of our gross written premiums was 67% casualty and 33% property. Our commercial underwriting divisions include commercial property, excess casualty, small business casualty, construction, general casualty, allied health, products liability, professional liability, life sciences, small property, entertainment, energy, management liability, environmental, health care, public entity, inland marine, commercial auto, excess professional, aviation, ocean marine and product recall. We also write a small amount of homeowners insurance in the personal lines market, which in aggregate represented 2% of our gross written premiums in the first nine months of 2023 and is included within our personal insurance division.
Components of Our Results of Operations
Gross written premiums
Gross written premiums are the amounts received or to be received for insurance policies written or assumed by us during a specific period of time without reduction for policy acquisition costs, reinsurance costs or other deductions. The volume of our gross written premiums in any given period is generally influenced by:
•New business submissions;
•Conversion of new business submissions into policies;
•Renewals of existing policies; and
•Average size and premium rate of bound policies.
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We earn insurance premiums on a pro rata basis over the term of the policy. Our insurance policies generally have a term of one year. Net earned premiums represent the earned portion of our gross written premiums, less that portion of our gross written premiums that is ceded to third-party reinsurers under our reinsurance agreements.
Ceded written premiums
Ceded written premiums are the amount of gross written premiums ceded to reinsurers. We enter into reinsurance contracts to limit our exposure to potential large losses. Ceded written premiums are earned over the reinsurance contract period in proportion to the period of risk covered. The volume of our ceded written premiums is impacted by the level of our gross written premiums, any decision we make to increase or decrease retention levels and reinstatement premiums, if any.
Fee income
Fee income includes policy fees charged to insureds and is recognized in earnings when the related premium is written. Policy fees are a flat charge to insureds and fee income is impacted primarily by the volume of business we write. Beginning in the second quarter of 2023, we reclassified policy fees to fee income. Historically, these fees were presented as a reduction to underwriting, acquisition and insurance expenses. We modified the definition of the loss and expense ratios to include fee income in the denominator of each ratio. We have reclassified prior periods' results to conform to the current period's presentation. See Note 15 of the notes to the consolidated financial statements for further information regarding fee income.
Losses and loss adjustment expenses
Losses and loss adjustment expenses are a function of the amount and type of insurance contracts we write and the loss experience associated with the underlying coverage. In general, our losses and loss adjustment expenses are affected by:
•Frequency of claims associated with the particular types of insurance contracts that we write;
•Trends in the average size of losses incurred on a particular type of business;
•Mix of business written by us;
•Changes in the legal or regulatory environment related to the business we write;
•Trends in legal defense costs;
•Wage inflation
•Social inflation;
•Inflation in material costs, and
•Inflation in medical costs.
Losses and loss adjustment expenses are based on an actuarial analysis of the estimated losses, including losses incurred during the period and changes in estimates from prior periods. Losses and loss adjustment expenses may be paid out over a period of years.
Underwriting, acquisition and insurance expenses
Underwriting, acquisition and insurance expenses include policy acquisition costs and other underwriting expenses. Policy acquisition costs are principally comprised of the commissions we pay our brokers, net of ceding commissions we receive on business ceded under certain reinsurance contracts. Policy acquisition costs also include underwriting expenses that are directly related to the successful acquisition of those policies which are deferred. The amortization of policy acquisition costs is charged to expense in proportion to premium earned over the policy life.
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Other underwriting expenses represent the general and administrative expenses of our insurance business such as employment costs, telecommunication and technology costs, and legal and auditing fees.
Net investment income
Net investment income is an important component of our results of operations. We earn investment income on our portfolio of cash and invested assets. Our cash and invested assets are primarily comprised of fixed-maturity securities, and may also include cash equivalents, equity securities and short-term investments. The principal factors that influence net investment income are the size of our investment portfolio and the yield on that portfolio. As measured by amortized cost (which excludes changes in fair value), the size of our investment portfolio is mainly a function of our invested equity capital combined with premiums we receive from our insureds less payments on policyholder claims. Net investment income also includes rental income and depreciation expense from our real estate investment property.
Change in fair value of equity securities
Change in fair value of equity securities represents the increase or decrease in the fair value of equity securities held during the period.
Net realized investment gains (losses)
Net realized investment gains (losses) are a function of the difference between the amount received by us on the sale of a security and the security's amortized cost.
Income tax expense
Currently, substantially all of our income tax expense relates to federal income taxes. Our insurance subsidiary, Kinsale Insurance Company, is not subject to income taxes in the states in which it operates; however, our non-insurance subsidiaries are subject to state income taxes, but have not generated any material taxable income to date. The amount of income tax expense or benefit recorded in future periods will depend on the jurisdictions in which we operate and the tax laws and regulations in effect.
Key metrics
We discuss certain key metrics, described below, which we believe provide useful information about our business and the operational factors underlying our financial performance.
Underwriting income is a non-GAAP financial measure. We define underwriting income as net income, excluding net investment income, net change in the fair value of equity securities, net realized investment gains and losses, change in allowance for credit losses on investments, interest expense, other income, other expenses and income tax expense. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to underwriting income.
Net operating earnings is a non-GAAP financial measure. We define net operating earnings as net income excluding the net change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes and change in allowance for credit losses on investments, after taxes. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to net operating earnings.
Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to the sum of net earned premiums and fee income.
Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income.
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Combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss.
Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending total stockholders’ equity during the period.
Operating return on equity is a non-GAAP financial measure. We define operating return on equity as net operating earnings expressed on an annualized basis as a percentage of average beginning and ending total stockholders’ equity during the period. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to net operating earnings.
Net retention ratio is the ratio of net written premiums to gross written premiums.
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.


































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Results of Operations
Three months ended September 30, 2023 compared to three months ended September 30, 2022
The following table summarizes our results of operations for the three months ended September 30, 2023 and 2022:
Three Months Ended September 30,
($ in thousands)20232022Change% Change
Gross written premiums$377,789 $284,111 $93,678 33.0 %
Ceded written premiums(83,509)(48,212)(35,297)73.2 %
Net written premiums$294,280 $235,899 $58,381 24.7 %
Net earned premiums $281,502 $209,259 $72,243 34.5 %
Fee income6,841 5,099 1,742 34.2 %
Losses and loss adjustment expenses155,552 134,788 20,764 15.4 %
Underwriting, acquisition and insurance expenses60,348 45,244 15,104 33.4 %
Underwriting income (1)
72,443 34,326 38,117 111.0 %
Net investment income27,086 13,858 13,228 95.5 %
Change in the fair value of equity securities(5,533)(6,095)562 (9.2)%
Net realized investment gains (losses)4,274 (173)4,447 NM
Change in allowance for credit losses on investments(143)— (143)NM
Interest expense(2,573)(1,716)(857)49.9 %
Other expense, net(61)(100)39 (39.0)%
Income before taxes95,493 40,100 55,393 138.1 %
Income tax expense19,378 7,116 12,262 172.3 %
Net income$76,115 $32,984 $43,131 130.8 %
Net operating earnings (2)
$77,223 $37,936 $39,287 103.6 %
Loss ratio53.9 %62.9 %
Expense ratio20.9 %21.1 %
Combined ratio (3)
74.8 %84.0 %
Annualized return on equity33.9 %21.1 %
Annualized operating return on equity (2)
34.4 %24.2 %
NM - Percentage change not meaningful.
(1) Underwriting income is a non-GAAP financial measure. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to underwriting income.
(2) Net operating earnings and annualized operating return on equity are non-GAAP financial measures. Net operating earnings is defined as net income excluding the net change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and change in allowance for credit losses on investments, after taxes. Annualized operating return on equity is defined as net operating earnings expressed on an annualized basis as a percentage of average beginning and ending total stockholders’ equity during the period. See "—Reconciliation of
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Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to net operating earnings.
(3) The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding.
Net income was $76.1 million for the three months ended September 30, 2023 compared to $33.0 million for the three months ended September 30, 2022, an increase of 130.8%. The increase in net income for the third quarter of 2023 from the same period last year was primarily due to continued profitable growth, higher investment income and higher net realized investment gains from the sale of a portion of our real estate investment property.
Underwriting income was $72.4 million for the three months ended September 30, 2023 compared to $34.3 million for the three months ended September 30, 2022, an increase of 111.0%. The corresponding combined ratios were 74.8% for the three months ended September 30, 2023 compared to 84.0% for the three months ended September 30, 2022. The increase in our underwriting income in the third quarter of 2023 compared to the third quarter of 2022 was primarily due to a combination of premium growth, favorable loss experience and lower net commissions.
Premiums
Our gross written premiums were $377.8 million for the three months ended September 30, 2023 compared to $284.1 million for the three months ended September 30, 2022, an increase of $93.7 million, or 33.0%. The increase in gross written premiums for the third quarter of 2023 over the same period last year was due to higher submission activity from brokers and higher rates across most lines of business, resulting from continued favorable conditions in the E&S market. The average premium per policy written was approximately $14,400 in the third quarter of 2023 compared to approximately $12,700 in the third quarter of 2022. Excluding our personal lines insurance, which has a relatively low premium per policy written, the average premium per policy written was approximately $15,500 in the third quarter of 2023 compared to $14,700 in the third quarter of 2022.
Net written premiums increased by $58.4 million, or 24.7%, to $294.3 million for the three months ended September 30, 2023 from $235.9 million for the three months ended September 30, 2022. The increase in net written premiums for the third quarter of 2023 compared to the same period last year was primarily due to higher gross written premiums. The net retention ratio was 77.9% for the three months ended September 30, 2023 compared to 83.0% for the three months ended September 30, 2022. The decrease in the net retention ratio was primarily due to higher premiums ceded under the commercial property quota share and excess casualty variable quota share reinsurance treaties as a result of growth in our property and excess casualty lines and a higher cession rate on the commercial property quota share effective with the June 2023 renewal.
Net earned premiums increased by $72.2 million, or 34.5%, to $281.5 million for the three months ended September 30, 2023 from $209.3 million for the three months ended September 30, 2022 and was directly related to growth in gross written premiums.
Loss ratio
The loss ratio was 53.9% for the three months ended September 30, 2023 compared to 62.9% for the three months ended September 30, 2022. The decrease in the loss ratio in the third quarter of 2023 compared to the third quarter of 2022 was due primarily to lower catastrophe losses incurred during the period, offset in part by lower net favorable development of loss reserves from prior accident years as a percentage of earned premiums and fee income. Net catastrophe losses incurred during the third quarter of 2022 were primarily attributable to Hurricane Ian.
During the three months ended September 30, 2023, prior accident years developed favorably by $9.1 million, of which $12.0 million was attributable to the 2021 and 2022 accident years due to lower emergence of reported losses
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than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2017 through 2019 accident years due to long-tail property damage claims within our construction-related primary casualty business that are more exposed to the increase in inflation.
During the three months ended September 30, 2022, prior accident years developed favorably by $11.0 million, of which $10.9 million was attributable to the 2020 and 2021 accident years due to lower-than-expected reported losses across most lines of business.
The following table summarizes the loss ratios for the three months ended September 30, 2023 and 2022:
Three Months Ended September 30,
20232022
($ in thousands)Losses and Loss Adjustment Expenses% of Sum of Earned Premiums and Fee IncomeLosses and Loss Adjustment Expenses% of Sum of Earned Premiums and Fee Income
Loss ratio:
Current accident year before catastrophe losses
$163,545 56.7 %$119,650 55.8 %
Current year catastrophe losses1,154 0.4 %26,130 12.2 %
Effect of prior year development(9,147)(3.2)%(10,992)(5.1)%
Total$155,552 53.9 %$134,788 62.9 %

Expense ratio
The following table summarizes the components of the expense ratio for the three months ended September 30, 2023 and 2022:
Three Months Ended September 30,
20232022
($ in thousands)Underwriting Expenses% of Sum of Earned Premiums and Fee IncomeUnderwriting Expenses% of Sum of Earned Premiums and Fee Income
Net commissions incurred29,639 10.3 %24,238 11.3 %
Other underwriting expenses
30,709 10.6 %21,006 9.8 %
Underwriting, acquisition and insurance expenses
$60,348 20.9 %$45,244 21.1 %
The expense ratio was 20.9% for the three months ended September 30, 2023 compared to 21.1% for the three months ended September 30, 2022. The decrease in the expense ratio was due to lower relative net commissions incurred offset in part by higher relative other underwriting expenses. As a percentage of the sum of earned premium and fee income, net commissions incurred decreased due primarily to higher ceding commissions earned under the commercial property quota share treaty as a result of commercial property premium growth. Direct commissions paid as a percent of gross written premiums was 14.6% for each of the three months ended September 30, 2023 and 2022. As a percentage of the sum of earned premium and fee income, other underwriting expenses increased due primarily to higher variable compensation costs due to the increase in underwriting income.
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Investing results
The following table summarizes net investment income, change in the fair value of equity securities and net realized investment gains (losses) for the three months ended September 30, 2023 and 2022:
Three Months Ended September 30,
($ in thousands)20232022Change
Interest from fixed-maturity securities$25,166 $12,890 $12,276 
Dividends from equity securities1,271 1,085 186 
Cash equivalents and short-term investments758 475 283 
Real estate investment income851 — 851 
Gross investment income28,046 14,450 13,596 
Investment expenses(960)(592)(368)
Net investment income27,086 13,858 13,228 
Change in the fair value of equity securities(5,533)(6,095)562 
Net realized investment gains (losses)4,274 (173)4,447 
Change in allowance for credit losses on investments(143)— (143)
Net realized and unrealized investment losses(1,402)(6,268)4,866 
Total$25,684 $7,590 $18,094 
Our net investment income increased by 95.5% to $27.1 million for the three months ended September 30, 2023 from $13.9 million for the three months ended September 30, 2022. This increase was primarily due to growth in our investment portfolio generated from the investment of strong operating cash flows and higher interest rates relative to the prior year period. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.1% and 3.1% for the three months ended September 30, 2023 and 2022, respectively.
During the third quarter of 2023, the change in fair value of equity securities was comprised of unrealized losses related to exchange traded funds ("ETFs") of $(3.6) million, unrealized losses related to common stocks of $(2.1) million and unrealized gains related to non-redeemable preferred stock of $0.2 million. The change in the fair value of ETFs and common stocks during the third quarter of 2023 reflected changes in the broader U.S. stock market.
During the third quarter of 2022, the change in fair value of equity securities was comprised of unrealized losses related to ETFs of $(5.6) million and unrealized losses related to non-redeemable preferred stock of $(0.5) million. The change in the fair value of ETFs during the third quarter of 2022 reflected changes in the broader U.S. stock market. The change in the fair value of non-redeemable preferred stocks during the third quarter of 2022 reflected a higher interest rate environment.
During the third quarter of 2023, net realized investment gains of $4.3 million primarily related to the sale of a portion of our real estate investment property. See Note 2 of the notes to the consolidated financial statements for further discussion regarding the sale.
Income tax expense
Our effective tax rate was 20.3% for the three months ended September 30, 2023 compared to 17.7% for the three months ended September 30, 2022. The effective tax rates were lower than the federal statutory rate of 21% due to the tax benefits from stock-based compensation and tax-exempt investment income.

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Nine months ended September 30, 2023 compared to nine months ended September 30, 2022
The following table summarizes our results of operations for the nine months ended September 30, 2023 and 2022:
Nine Months Ended September 30,
($ in thousands)20232022Change% Change
Gross written premiums$1,173,599 $806,625 $366,974 45.5 %
Ceded written premiums(215,248)(111,885)(103,363)92.4 %
Net written premiums$958,351 $694,740 $263,611 37.9 %
Net earned premiums $775,706 $577,979 $197,727 34.2 %
Fee income20,028 14,363 5,665 39.4 %
Losses and loss adjustment expenses441,628 344,333 97,295 28.3 %
Underwriting, acquisition and insurance expenses168,567 132,025 36,542 27.7 %
Underwriting income (1)
185,539 115,984 69,555 60.0 %
Net investment income71,953 33,540 38,413 114.5 %
Change in fair value of equity securities3,796 (37,199)40,995 NM
Net realized investment gains913 1,535 (622)NM
Change in allowance for credit losses on investments(199)— (199)NM
Interest expense(7,867)(2,306)(5,561)241.2 %
Other expense, net(139)(140)1 (0.7)%
Income before taxes253,996 111,414 142,582 128.0 %
Income tax expense49,290 19,549 29,741 152.1 %
Net income$204,706 $91,865 $112,841 122.8 %
Net operating earnings (2)
$201,143 $120,039 $81,104 67.6 %
Loss ratio55.5 %58.1 %
Expense ratio21.2 %22.3 %
Combined ratio (3)
76.7 %80.4 %
Annualized return on equity32.7 %18.6 %
Annualized operating return on equity (2)
32.1 %24.3 %
NM - Percentage change not meaningful.
(1) Underwriting income is a non-GAAP financial measure. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to underwriting income.
(2) Net operating earnings and annualized operating return on equity are non-GAAP financial measures. Net operating earnings is defined as net income excluding the net change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and change in allowance for credit losses on investments, after taxes. Annualized operating return on equity is defined as net operating earnings expressed on an annualized basis as a percentage of average beginning and ending total stockholders’ equity during the period. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to net operating earnings.
(3) The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding.
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Overview
Net income was $204.7 million for the nine months ended September 30, 2023 compared to $91.9 million for the nine months ended September 30, 2022, an increase of 122.8%. The increase in net income for the first nine months of 2023 over the same period last year was primarily due to a combination of continued profitable growth, higher returns on equity investments and an increase in investment income driven by higher investment balances and higher interest rates.
Underwriting income was $185.5 million for the nine months ended September 30, 2023 compared to $116.0 million for the nine months ended September 30, 2022, an increase of 60.0%. The corresponding combined ratios were 76.7% for the nine months ended September 30, 2023 compared to 80.4% for the nine months ended September 30, 2022. The increase in underwriting income for the first nine months of 2023 compared to the same period last year was due to a combination of premium growth, favorable loss experience and lower net commissions.
Premiums
Our gross written premiums were $1.2 billion for the nine months ended September 30, 2023 compared to $806.6 million for the nine months ended September 30, 2022, an increase of $367.0 million, or 45.5%. The increase in gross written premiums for the first nine months of 2023 over the same period last year was due to higher submission activity from brokers and higher rates across most lines of business, resulting from continued favorable conditions in the E&S market. The average premium per policy written was $15,300 in the first nine months of 2023 compared to $12,100 in the first nine months of 2022. Excluding our personal lines insurance, which has a relatively low premium per policy written, the average premium per policy written was $16,500 for the first nine months of 2023 and $14,500 for the first nine months of 2022.
Net written premiums increased by $263.6 million, or 37.9%, to $958.4 million for the nine months ended September 30, 2023 from $694.7 million for the nine months ended September 30, 2022. The increase in net written premiums for the first nine months of 2023 compared to the same period last year was primarily due to higher gross written premiums. The net retention ratio was 81.7% for the nine months ended September 30, 2023 compared to 86.1% for the same period last year. The decrease in the net retention ratio was primarily due to higher premiums ceded under the commercial property quota share and excess casualty variable quota share reinsurance treaties as a result of growth in our property and excess casualty lines and a higher cession rate on the commercial property quota share effective with the June 2023 renewal.
Net earned premiums increased by $197.7 million, or 34.2%, to $775.7 million for the nine months ended September 30, 2023 from $578.0 million for the nine months ended September 30, 2022 due to growth in gross written premiums.
Loss ratio
The loss ratio was 55.5% for the nine months ended September 30, 2023 compared to 58.1% for the nine months ended September 30, 2022. The decrease in the loss ratio in the first nine months of 2023 compared to the first nine months of 2022 was due primarily to lower catastrophe losses incurred during the period, offset in part by lower net favorable development of loss reserves from prior accident years as a percentage of earned premiums and fee income. Net catastrophe losses incurred during the first nine months of 2022 were primarily attributable to Hurricane Ian.
During the nine months ended September 30, 2023, prior accident years developed favorably by $28.6 million, of which $39.0 million was attributable to the 2021 and 2022 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2017 through 2019 accident years due to long-tailed property damage claims within the
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construction-related primary casualty business that are more exposed to the increase in inflation. On an inception-to-date basis, all prior accident years have developed favorably with the exception of the 2011 accident year.
During the nine months ended September 30, 2022, prior accident years developed favorably by $28.9 million, of which $32.0 million was attributable to the 2020 and 2021 accident years due to lower-than-expected reported losses across most lines of business. This favorable development was offset in part by adverse development largely from the 2018 accident year due to routine variability in reported losses and modest adjustments in actuarial assumptions.
The following table summarizes the loss ratios for the nine months ended September 30, 2023 and 2022:
Nine Months Ended September 30,
20232022
($ in thousands)Losses and Loss Adjustment Expenses% of Sum of Earned Premiums and Fee IncomeLosses and Loss Adjustment Expenses% of Sum of Earned Premiums and Fee Income
Loss ratio:
Current accident year before catastrophe losses
$466,056 58.6 %$346,970 58.6 %
Current year catastrophe losses4,179 0.5 %26,213 4.4 %
Effect of prior year development(28,607)(3.6)%(28,850)(4.9)%
Total$441,628 55.5 %$344,333 58.1 %

Expense ratio
The following table summarizes the components of the expense ratio for the nine months ended September 30, 2023 and 2022:
Nine Months Ended September 30,
20232022
($ in thousands)Underwriting Expenses% of Sum of Earned Premiums and Fee IncomeUnderwriting Expenses% of Sum of Earned Premiums and Fee Income
Net commissions incurred83,299 10.5 %69,471 11.7 %
Other underwriting expenses
85,268 10.7 %62,554 10.6 %
Total$168,567 21.2 %$132,025 22.3 %
The expense ratio was 21.2% for the nine months ended September 30, 2023 compared to 22.3% for the nine months ended September 30, 2022. The decrease in the expense ratio was primarily due to lower relative net commissions due primarily to higher ceding commissions earned under the commercial property quota share treaty as a result of commercial property premium growth. Direct commissions paid as a percentage of gross written premiums was 14.5% and 14.6% for the nine months ended September 30, 2023 and 2022, respectively.
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Investing results
The following table summarizes net investment income, change in the fair value of equity securities and net realized investment gains for the nine months ended September 30, 2023 and 2022:
Nine Months Ended September 30,
($ in thousands)20232022Change
Interest from fixed-maturity securities$65,376 $31,573 $33,803 
Dividends from equity securities3,692 3,208 484 
Cash equivalents and short-term investments2,337 598 1,739 
Real estate investment income3,565 — 3,565 
Gross investment income74,970 35,379 39,591 
Investment expenses(3,017)(1,839)(1,178)
Net investment income71,953 33,540 38,413 
Change in fair value of equity securities3,796 (37,199)40,995 
Net realized investment gains913 1,535 (622)
Change in allowance for credit losses on investments(199)— (199)
Net realized and unrealized investment gains (losses)4,510 (35,664)40,174 
Total$76,463 $(2,124)$78,587 
Our net investment income increased by 114.5% to $72.0 million for the nine months ended September 30, 2023 from $33.5 million for the nine months ended September 30, 2022. The increase in the first nine months of 2023 compared to the same period last year was 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. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 3.9% and 2.7% for the nine months ended September 30, 2023 and 2022, respectively.
During the first nine months of 2023, the change in fair value of equity securities was comprised of unrealized gains related to ETFs and common stocks of $2.7 million and unrealized gains related to non-redeemable preferred stock of $1.1 million. The change in the fair value of ETFs and common stocks during the first nine months of 2023 primarily reflected changes in the broader U.S. stock market.
During the first nine months of 2022, the change in fair value of equity securities was comprised of unrealized losses related to ETFs of $(28.6) million and unrealized losses related to non-redeemable preferred stock of $(8.6) million. The change in fair value of ETFs during the first nine months of 2022 reflected changes in the broader U.S. stock market. The change in fair value of non-redeemable preferred stock during the first nine months of 2022 reflected a higher interest rate environment.
During the first nine months of 2023, net realized investment gains of $0.9 million included a realized gain of $4.3 million from the sale of a portion of our real estate investment property, offset by realized investment losses primarily related to disposing of securities issued by certain banking and financial institutions.
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. Based on our review, we recorded an allowance for credit losses of $0.6 million at September 30, 2023. There were no credit losses recorded at September 30, 2022. See Note 2 of the notes to the consolidated financial statements for further information regarding credit losses.
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Income tax expense
Our effective tax rate was 19.4% for the nine months ended September 30, 2023 compared to 17.5% for the nine months ended September 30, 2022. The effective tax rate was lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation and tax-exempt investment income.
Return on equity
Our annualized return on equity was 32.7% for the nine months ended September 30, 2023 compared to 18.6% for the nine months ended September 30, 2022. Our annualized operating return on equity was 32.1% for the nine months ended September 30, 2023 compared to 24.3% for the nine months ended September 30, 2022. The increase in annualized operating return on equity for the nine months ended September 30, 2023 compared to the prior period was attributable largely to continued profitable growth from continuing favorable market conditions and rate increases.
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 Company, which is domiciled in Arkansas. Accordingly, we may receive cash through (1) loans from banks and other third parties, (2) issuance of equity and debt securities, (3) corporate service fees from our insurance subsidiary, (4) payments from our subsidiaries pursuant to our consolidated tax allocation agreement and other transactions, and (5) dividends from our insurance subsidiary. We may use the proceeds from these sources to contribute funds to Kinsale Insurance Company in order to support premium growth, reduce our reliance on reinsurance, pay dividends and taxes and for other business purposes.
We receive corporate service fees from Kinsale Insurance Company to reimburse us for most of the operating expenses that we incur. Reimbursement of expenses through corporate service fees is based on the actual costs that we expect to incur with no mark-up above our expected costs.
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.
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. In September 2023, we amended the Note Purchase Agreement, which increased the authorized aggregate principal amount of senior promissory notes that may be issued thereunder to $200.0 million.
Pursuant to the Note Purchase Agreement, on July 22, 2022 we issued $125.0 million aggregate principal amount of 5.15% senior promissory notes (the “Series A Notes”) and on September 18, 2023 we issued a $50.0 million aggregate principal amount 6.21% senior promissory note (the “Series B Note”), the proceeds of which were used to fund surplus at Kinsale Insurance Company, refinance indebtedness and for general corporate purposes. See Note 13 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. Borrowings under the Amended and Restated Credit Agreement may be used for general corporate purposes (which may include, without limitation, to fund future
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growth, to finance working capital needs, to fund capital expenditures, and to refinance, redeem or repay indebtedness). See Note 13 for further information regarding the Amended and Restated Credit Agreement.
Management believes that the Company has sufficient liquidity available both in Kinsale and in its insurance subsidiary, Kinsale Insurance Company, as well as in its other operating subsidiaries, to meet its operating cash needs and obligations and committed capital expenditures for the next 12 months.
Cash flows
Our most significant source of cash is from premiums received from our insureds, which, for most policies, we receive at the beginning of the coverage period. Our most significant cash outflow is for claims that arise when a policyholder incurs an insured loss. Because the payment of claims occurs after the receipt of the premium, often years later, we invest the cash in various investment securities that earn interest and dividends. We also use cash to pay commissions to insurance brokers, as well as to pay for ongoing operating expenses such as salaries, consulting services and taxes. As described under "—Reinsurance" below, we use reinsurance to manage the risk that we take related to the issuance of our policies. We cede, or pay out, part of the premiums we receive to our reinsurers and collect cash back when losses subject to our reinsurance coverage are paid.
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. 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.
Our cash flows for the nine months ended September 30, 2023 and 2022 were:
Nine Months Ended September 30,
20232022
(in thousands)
Cash and cash equivalents provided by (used in):
Operating activities
$648,308 $456,699 
Investing activities(616,364)(519,851)
Financing activities
(25,274)68,325 
Change in cash and cash equivalents$6,670 $5,173 
Net cash provided by operating activities was approximately $648.3 million for the nine months ended September 30, 2023 compared to $456.7 million for the same period in 2022. This increase was largely driven by higher premium volume, the timing of claim payments and reinsurance recoveries, offset in part by changes in operating assets and liabilities.
Net cash used in investing activities was $616.4 million for the nine months ended September 30, 2023 compared to $519.9 million for the nine months ended September 30, 2022. Net cash used in investing activities during the first nine months of 2023 included purchases of fixed-maturity securities of $947.9 million, which were comprised largely of corporate bonds, asset- and mortgage-backed securities, and to a lesser extent, U.S. Treasuries and municipal securities. During the first nine months of 2023, we received proceeds of $204.4 million from sales of fixed-maturity securities, largely corporate bonds, asset-backed securities and municipal securities and $113.8 million from redemptions and maturities of asset- and mortgage-backed securities and corporate bonds. For the nine months ended September 30, 2023, purchases of equity securities of $62.0 million consisted of common stocks. During the first nine months of 2023, we received proceeds of $7.5 million from sales of equity securities, primarily ETFs and common stocks. In addition, net sales of short-term investments of $13.1 million consisted of U.S.
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Treasuries and corporate bonds. Net cash used in investing activities also included proceeds of $62.0 million from the sale of a portion of our real estate investment property in the third quarter of 2023.
Net cash used in investing activities of $519.9 million for the nine months ended September 30, 2022 included purchases of fixed-maturity securities of $599.7 million, which were comprised largely of corporate bonds, mortgage- and asset-backed securities, and to a lesser extent, municipal securities and sovereigns. During the first nine months of 2022, we received proceeds of $73.1 million from sales of fixed-maturity securities, largely corporate bonds and mortgage- and asset-backed securities, and $89.8 million from redemptions of mortgage- and asset-backed securities and corporate bonds. For the nine months ended September 30, 2022, we received proceeds of $4.0 million from sales of equity securities, which were comprised of $2.4 million from sales of ETFs and $1.6 million from calls of non-redeemable preferred stock. In addition, net purchases of short-term investments of $81.1 million consisted of U.S. Treasuries and corporate bonds.
During the first nine months of 2023, cash used in financing activities reflected proceeds of $50.0 million from the issuance of the Series B Note on September 18, 2023. Proceeds from the sale of our real estate investment were used to pay down $62.0 million from our Credit Facility. Financing activities also reflected dividends paid of $0.42 per common share, or $9.7 million in aggregate. In addition, for the nine months ended September 30, 2023, payroll taxes withheld and remitted on restricted stock awards were $4.2 million, offset in part by proceeds received from our equity compensation plans of $0.7 million.
During the first nine months of 2022, cash provided by financing activities reflected proceeds of $125.0 million from the issuance of the Series A Notes on July 22, 2022, a portion of which were used to pay off the outstanding loans of $43.0 million under the Amended and Restated Credit Agreement on July 25, 2022. Financing activities also reflected dividends paid of $0.39 per common share, or $8.9 million in aggregate. In addition, for the nine months ended September 30, 2022, payroll taxes withheld and remitted on restricted stock awards were $3.3 million, offset in part by proceeds received from our equity compensation plans of $0.9 million. Debt issuance costs of $2.4 million were paid in connection with the Note Purchase Agreement and Amended and Restated Credit Agreement previously discussed.
Reinsurance
We enter into reinsurance contracts primarily to limit our exposure to potential large losses. Reinsurance involves an insurance company transferring ("ceding") a portion of its exposure on a risk to another insurer, the reinsurer. The reinsurer assumes the exposure in return for a portion of the premium. 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 excess of loss reinsurance, the reinsurer agrees to assume all or a portion of the ceding company's losses, in excess of a specified amount. Under excess of loss reinsurance, the premium payable to the reinsurer is negotiated by the parties based on their assessment of the amount of risk being ceded to the reinsurer because the reinsurer does not share proportionately in the ceding company's losses.
We renew our reinsurance treaties annually. During each renewal cycle, there are a number of factors we consider when determining our reinsurance coverage, including (1) plans to change the underlying insurance coverage we offer, (2) trends in loss activity, (3) the level of our capital and surplus, (4) changes in our risk appetite and (5) the cost and availability of reinsurance coverage.
To manage our natural catastrophe exposure, we use computer models to analyze the risk of severe losses. We measure exposure to these losses in terms of probable maximum loss ("PML"), which is an estimate of the amount of loss we would expect to meet or exceed once in a given number of years (referred to as the return period). When managing our catastrophe exposure, we focus on the 100-year and the 250-year return periods.
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The following is a summary of our significant reinsurance programs as of September 30, 2023:
Line of Business CoveredCompany Policy LimitReinsurance CoverageCompany Retention
Property - commercial insurance (1)Up to $10.0 million per occurrence
50% up to $247.3 million per catastrophe
50% of all commercial property losses
Property - catastrophe (2)N/A$127.5 million excess of $47.5 million$47.5 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$2.0 million per occurrence as described in note (4) below
(1)    Our commercial property quota-share reinsurance reduces the financial impact of property losses on our commercial property, small property and inland marine policies. This reinsurance is not applicable to any individual policy with a limit of $2.0 million or less.
(2)    Our property catastrophe reinsurance reduces the financial impact of a catastrophe event involving multiple claims and policyholders. Our property catastrophe reinsurance includes a reinstatement provision which requires us to pay reinstatement premiums after a loss has occurred in order to preserve coverage. Including the reinstatement of coverage, the maximum aggregate loss recovery limit is $255.0 million and is in addition to the coverage provided by our other property reinsurance.
(3)    This reinsurance is not applicable to any individual policy with a per-occurrence limit of $2.0 million or less.
(4)    For casualty policies with a per-occurrence limit higher than $2.0 million, the ceding percentage varies such that the retention is always $2.0 million or less. For example, for a $4.0 million limit excess policy, our retention would be 50%, whereas for a $10.0 million limit excess policy, our retention would be 20%. For policies for which we also write an underlying primary limit, the retention on the primary and excess policy combined would not exceed $2.0 million.
Reinsurance contracts do not relieve us from our obligations to policyholders. Failure of the reinsurer to honor its obligation could result in losses to us, and therefore, we established an allowance for credit risk based on historical analysis of credit losses for highly rated companies in the insurance industry. In formulating our reinsurance programs, we are selective in our choice of reinsurers and we consider numerous factors, the most important of which are the financial stability of the reinsurer, its history of responding to claims and its overall reputation. 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 September 30, 2023, all reinsurance contracts that our insurance subsidiary was a party to were with companies with A.M. Best ratings of "A-" (Excellent) or better. As of September 30, 2023, we recorded an allowance for credit losses of $0.5 million related to our reinsurance balances.
Ratings
Kinsale Insurance Company has a financial strength rating of "A" (Excellent) with a stable outlook 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. Best. The "A" (Excellent) rating is assigned to insurers that have, in A.M. Best's opinion, an excellent ability to meet their ongoing obligations to policyholders. This rating is intended to provide an independent opinion of an insurer's ability to meet its obligation to policyholders and is not an evaluation directed at investors.
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The financial strength ratings assigned by A.M. Best have an impact on the ability of the insurance companies to attract and retain agents and brokers and on the risk profiles of the submissions for insurance that the insurance companies receive. The "A" (Excellent) rating obtained by Kinsale Insurance Company is consistent with our business plan and allows us to actively pursue relationships with the agents and brokers identified in our marketing plan.
Financial Condition
Stockholders' equity
At September 30, 2023, total stockholders' equity was $923.8 million and tangible stockholders' equity was $921.0 million compared to total stockholders' equity of $745.4 million and tangible stockholders' equity $742.7 million at December 31, 2022. The increases in both total and tangible stockholders' equity over the prior year-end balances were due to profits generated during the period and net activity related to stock-based compensation plans, offset in part by a decrease in the fair value of our fixed-maturity investments and payment of dividends. Tangible stockholders’ equity is a non-GAAP financial measure. See "—Reconciliation of non-GAAP financial measures" for a reconciliation of stockholders' equity in accordance with GAAP to tangible stockholders' equity.
Investment portfolio
At September 30, 2023, our cash and invested assets of $2.8 billion consisted of fixed-maturity securities, equity securities, cash and cash equivalents, real estate investments and short-term investments. At September 30, 2023, the majority of the investment portfolio was comprised of fixed-maturity securities of $2.4 billion that were classified as available-for-sale. Available-for-sale investments are carried at fair value with unrealized gains and losses on these securities, net of applicable taxes, reported as a separate component of accumulated other comprehensive income. At September 30, 2023, we also held $208.0 million of equity securities, which were comprised of ETF securities, common stocks and non-redeemable preferred stock, $162.9 million of cash and cash equivalents, $14.4 million of real estate investments and $29.1 million of short-term investments.
Our fixed-maturity securities, including cash equivalents, had a weighted average duration of 2.9 years and 3.5 years at September 30, 2023 and December 31, 2022, respectively, and an average rating of "AA-" at both September 30, 2023 and December 31, 2022.
At September 30, 2023 and December 31, 2022, the amortized cost and estimated fair value on fixed-maturity securities were as follows:
September 30, 2023December 31, 2022
Amortized CostEstimated Fair Value% of Total Fair ValueAmortized CostEstimated Fair Value% of Total Fair Value
($ in thousands)
Fixed-maturity securities:
U.S. Treasury securities and obligations of U.S. government agencies
$42,705 $41,505 1.7 %$17,934 $16,741 1.0 %
Obligations of states, municipalities and political subdivisions
190,263 159,946 6.8 %230,746 204,632 11.6 %
Corporate and other securities1,299,277 1,211,229 51.2 %909,285 832,892 47.3 %
Asset-backed securities599,813 593,694 25.1 %361,248 353,006 20.1 %
Residential mortgage-backed securities
361,833 295,548 12.5 %349,066 293,962 16.7 %
Commercial mortgage-backed securities70,023 62,837 2.7 %65,353 58,867 3.3 %
Total fixed-maturity securities$2,563,914 $2,364,759 100.0 %$1,933,632 $1,760,100 100.0 %
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The table below summarizes the credit quality of our fixed-maturity securities at September 30, 2023 and December 31, 2022, as rated by Standard & Poor’s Financial Services, LLC ("Standard & Poor's"):
September 30, 2023December 31, 2022
Standard & Poor’s or Equivalent DesignationEstimated Fair Value% of TotalEstimated Fair Value% of Total
($ in thousands)
AAA$723,952 30.6 %$452,001 25.7 %
AA483,701 20.5 %496,761 28.2 %
A729,842 30.9 %434,388 24.7 %
BBB367,487 15.5 %313,875 17.8 %
Below BBB and unrated59,777 2.5 %63,075 3.6 %
Total$2,364,759 100.0 %$1,760,100 100.0 %

The amortized cost and estimated fair value of our fixed-maturity securities summarized by contractual maturity as of September 30, 2023 and December 31, 2022, were as follows:
September 30, 2023December 31, 2022
Amortized
Cost		Estimated Fair Value% of Total Fair ValueAmortized
Cost		Estimated Fair Value% of Total Fair Value
($ in thousands)
Due in one year or less$184,335 $181,981 7.7 %$15,133 $14,925 0.9 %
Due after one year through five years923,152 889,587 37.6 %647,263 626,182 35.6 %
Due after five years through ten years194,507 167,015 7.1 %245,670 213,539 12.1 %
Due after ten years230,251 174,097 7.4 %249,899 199,619 11.3 %
Asset-backed securities599,813 593,694 25.1 %361,248 353,006 20.1 %
Residential mortgage-backed securities
361,833 295,548 12.5 %349,066 293,962 16.7 %
Commercial mortgage-backed securities70,023 62,837 2.6 %65,353 58,867 3.3 %
Total fixed-maturity securities$2,563,914 $2,364,759 100.0 %$1,933,632 $1,760,100 100.0 %
Actual maturities may differ from contractual maturities because some borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Restricted investments
In order to conduct business in certain states, we are required to maintain letters of credit or assets on deposit to support state-mandated insurance regulatory requirements and to comply with certain third-party agreements. Assets held on deposit or in trust accounts are primarily in the form of high-grade securities. The fair value of our restricted assets was $5.7 million and $5.9 million at September 30, 2023 and December 31, 2022, respectively.
Reconciliation of Non-GAAP Financial Measures
Reconciliation of underwriting income
Underwriting income is a non-GAAP financial measure that we believe is useful in evaluating our underwriting performance without regard to investment income. Underwriting income is defined as net income excluding net investment income, the net change in the fair value of equity securities, net realized investment gains and losses, change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. We use underwriting income as an internal performance measure in the management of our operations
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because we believe it gives us and users of our financial information useful insight into our results of operations and our underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.
Net income for the three and nine months ended September 30, 2023 and 2022, reconciles to underwriting income as follows:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2023202220232022
Net income$76,115 $32,984 $204,706 $91,865 
Income tax expense19,378 7,116 49,290 19,549 
Income before income taxes95,493 40,100 253,996 111,414 
Net investment income(27,086)(13,858)(71,953)(33,540)
Change in the fair value of equity securities5,533 6,095 (3,796)37,199 
Net realized investment (gains) losses(4,274)173 (913)(1,535)
Change in allowance for credit losses on
investments
143 — 199 — 
Interest expense2,573 1,716 7,867 2,306 
Other expenses (1)
401 212 1,220 521 
Other income(340)(112)(1,081)(381)
Underwriting income$72,443 $34,326 $185,539 $115,984 
(1) Other expenses are comprised of corporate expenses not allocated to our insurance operations.

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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. We believe the exclusion of these items provides a useful comparison of our underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-GAAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.
Net income for the three and nine months ended September 30, 2023 and 2022, reconciles to net operating earnings as follows:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2023202220232022
Net income$76,115 $32,984 $204,706 $91,865 
Adjustments:
Change in the fair value of equity securities, before taxes5,533 6,095 (3,796)37,199 
Income tax expense (benefit) (1)
(1,162)(1,280)797 (7,812)
Change in the fair value of equity securities, after taxes4,371 4,815 (2,999)29,387 
Net realized investment (gains) losses, before taxes(4,274)173 (913)(1,535)
Income tax expense (benefit) (1)
898 (36)192 322 
Net realized investment losses (gains), after taxes(3,376)137 (721)(1,213)
Change in allowance for credit losses on investments, before taxes143 — 199 — 
Income tax benefit (1)
(30)— (42)— 
Change in allowance for credit losses on investments, after taxes113 — 157 — 
Net operating earnings$77,223 $37,936 $201,143 $120,039 
Operating return on equity:
Average stockholders' equity (2)
$897,789 $626,761 $834,606 $659,395 
Annualized return on equity (3)
33.9 %21.1 %32.7 %18.6 %
Annualized operating return on equity (4)
34.4 %24.2 %32.1 %24.3 %
(1) Income taxes on adjustments to reconcile net income to net operating earnings use an effective tax rate of 21%.
(2) Computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two.
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(3) Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.
(4) Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.
Reconciliation of tangible stockholders' equity
Tangible stockholders’ equity is defined as total stockholders’ equity less intangible assets, net of deferred taxes. Our definition of tangible stockholders’ equity may not be comparable to that of other companies, and it should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders' equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.
Stockholders' equity at September 30, 2023 and December 31, 2022, reconciles to tangible stockholders' equity as follows:
($ in thousands)September 30, 2023December 31, 2022
Stockholders' equity$923,762 $745,449 
Less: intangible assets, net of deferred taxes2,795 2,795 
Tangible stockholders' equity$920,967 $742,654 

Critical Accounting Estimates
We identified the accounting estimates which are critical to the understanding of our financial position and results of operations. Critical accounting estimates are defined as those estimates that are both important to the portrayal of our financial condition and results of operations and require us to exercise significant judgment. We use significant judgment concerning future results and developments in applying these critical accounting estimates and in preparing our condensed consolidated financial statements. These judgments and estimates affect our reported amounts of assets, liabilities, revenues and expenses and the disclosure of our material contingent assets and liabilities, if any. Actual results may differ materially from the estimates and assumptions used in preparing the condensed consolidated financial statements. We evaluate our estimates regularly using information that we believe to be relevant. Our critical accounting policies and estimates are described in our annual consolidated financial statements and the related notes in our Annual Report on Form 10-K for the year ended December 31, 2022.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in interest rates, equity prices, foreign currency exchange rates and commodity prices. Our primary market risks have been equity price risk associated with investments in equity securities and interest rate risk associated with investments in fixed maturities. We do not have any material exposure to foreign currency exchange rate risk or commodity risk.
There have been no material changes in market risk from the information provided in our Annual Report on Form 10-K for the year ended December 31, 2022.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed,
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summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), as appropriate, to allow timely decisions regarding required financial disclosure.
As of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation, under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures defined under Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of that date.
Changes in Internal Control over Financial Reporting
There was no change in our internal control over financial reporting during the third quarter of 2023 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
The effectiveness of any system of controls and procedures is subject to certain limitations, and, as a result, there can be no assurance that our controls and procedures will detect all errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system will be attained.

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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
We are party to legal proceedings which arise in the ordinary course of business. We believe that the outcome of such matters, individually and in the aggregate, will not have a material adverse effect on our condensed consolidated financial position.
Item 1A. Risk Factors
There have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K
for the year ended December 31, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.

Item 5. Other Information
Securities Trading Plans of Directors and Executive Officers
Transactions in our securities by our non-employee directors and executive officers are required to be made in accordance with our Policy on the Prevention of Insider Trading and Selective Disclosure (the “Insider Trading Policy”), which, among other things, requires that the transactions be in accordance with applicable U.S. federal securities laws that prohibit trading while in possession of material nonpublic information. Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables prearranged transactions in securities in a manner that avoids concerns about initiating transactions at a future date while possibly in possession of material nonpublic information. Our Insider Trading Policy permits our non-employee directors and executive officers to enter into trading plans designed to comply with Rule 10b5-1.
During the third quarter of 2023, none of our non-employee directors or executive officers adopted, modified or terminated a Rule 10b5-1 trading plan or adopted, modified or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).

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Item 6. Exhibits
Exhibit
Number		Description
101.INS **XBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
* This certification is deemed not filed for purposes of section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
** The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
KINSALE CAPITAL GROUP, INC.
Date: October 26, 2023
By:
/s/ Michael P. Kehoe
Michael P. Kehoe
President and Chief Executive Officer
Date: October 26, 2023
By:
/s/ Bryan P. Petrucelli
Bryan P. Petrucelli
Executive Vice President, Chief Financial Officer and Treasurer
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Exhibit 31.1

CERTIFICATION


I, Michael P. Kehoe, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Kinsale Capital Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

October 26, 2023/s/ Michael P. Kehoe
Michael P. Kehoe
President and Chief Executive Officer
(Principal Executive Officer)


Exhibit 31.2

CERTIFICATION


I, Bryan P. Petrucelli, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Kinsale Capital Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

October 26, 2023/s/ Bryan P. Petrucelli
Bryan P. Petrucelli
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)


Exhibit 32.1


CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350


In connection with the Quarterly Report on Form 10-Q of Kinsale Capital Group, Inc. (the "Company") for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael P. Kehoe, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

October 26, 2023/s/ Michael P. Kehoe
Michael P. Kehoe
President and Chief Executive Officer
(Principal Executive Officer)



Exhibit 32.2


CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350


In connection with the Quarterly Report on Form 10-Q of Kinsale Capital Group, Inc. (the "Company") for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Bryan P. Petrucelli, Executive Vice President, Chief Financial Officer and Treasurer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

October 26, 2023/s/ Bryan P. Petrucelli
Bryan P. Petrucelli
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)

v3.23.3
Document and Entity Information Document - shares
 9 Months Ended
Sep. 30, 2023
Oct. 20, 2023
Document and Entity Information [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2023  
Entity Registrant Name KINSALE CAPITAL GROUP, INC.  
Entity File Number 001-37848  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 98-0664337  
Entity Address, Address Line One 2035 Maywill Street  
Entity Address, Address Line Two Suite 100  
Entity Address, City or Town Richmond  
Entity Address, State or Province VA  
Entity Address, Postal Zip Code 23230  
Entity Current Reporting Status Yes  
City Area Code 804  
Local Phone Number 289-1300  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol KNSL  
Security Exchange Name NYSE  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   23,173,468
Entity Central Index Key 0001669162  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.23.3
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets    
Fixed-maturity securities, available for sale, at fair value (amortized cost: $2,563,914, allowance for credit losses: $565 – 2023; $1,933,632 and $366 –2022) $ 2,364,759 $ 1,760,100
Equity securities, at fair value (cost: $178,162 – 2023; $126,478 – 2022) 207,951 152,471
Real Estate Investments, Net 14,372 76,387
Short-term investments 29,065 41,337
Total investments 2,616,147 2,030,295
Cash and Cash Equivalents, at Carrying Value 162,944 156,274
Investment income due and accrued 19,028 14,451
Premiums and fees receivable, net of allowance for credit losses of $14,379 – 2023; $8,067 – 2022 124,087 105,754
Reinsurance recoverables, net 240,852 220,454
Ceded unearned premiums 50,967 42,935
Deferred policy acquisition costs, net of ceding commissions 86,181 61,594
Intangible assets 3,538 3,538
Deferred Income Tax Assets, Net 68,535 56,983
Other assets 70,257 54,844
Total assets 3,442,536 2,747,122
Liabilities    
Reserves for unpaid losses and loss adjustment expenses 1,564,907 1,238,402
Unearned premiums 690,354 499,677
Payable to reinsurers 45,853 32,024
Accounts payable and accrued expenses 32,758 31,361
Debt 183,777 195,747
Other liabilities 1,125 4,462
Total liabilities 2,518,774 2,001,673
Stockholders' Equity    
Common stock, $0.01 par value, 400,000,000 shares authorized, 23,172,925 and 23,090,526 shares issued and outstanding at September 30, 2023 and December 31, 2022 respectively 232 231
Additional paid-in capital 350,452 347,015
Retained earnings 728,105 533,121
Accumulated other comprehensive loss (155,027) (134,918)
Total stockholders’ equity 923,762 745,449
Total liabilities and stockholders’ equity $ 3,442,536 $ 2,747,122
v3.23.3
Consolidated Balance Sheet (Unaudited) (Parentheticals) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets [Abstract]    
Fixed-maturity securities, available for sale, amortized cost $ 2,563,914 $ 1,933,632
Allowance for Credit Losses (565) (366)
Equity securities - cost 178,162 126,478
Premium Receivable, Allowance for Credit Loss 14,379 8,067
Reinsurance Recoverable, Allowance for Credit Loss $ (459) $ (459)
Stockholders' Equity    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 400,000,000 400,000,000
Common stock, shares issued (in shares) 23,172,925 23,090,526
Common stock, shares outstanding (in shares) 23,172,925 23,090,526
v3.23.3
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenues:        
Gross written premiums $ 377,789 $ 284,111 $ 1,173,599 $ 806,625
Ceded written premiums (83,509) (48,212) (215,248) (111,885)
Net written premiums 294,280 235,899 958,351 694,740
Change in unearned premiums (12,778) (26,640) (182,645) (116,761)
Net earned premiums 281,502 209,259 775,706 577,979
Fee income 6,841 5,099 20,028 14,363
Net investment income 27,086 13,858 71,953 33,540
Change in the fair value of equity securities (5,533) (6,095) 3,796 (37,199)
Net realized investment gains (losses) 4,274 (173) 913 1,535
Change in allowance for credit losses on investments (143) 0 (199) 0
Other income 340 112 1,081 381
Total revenues 314,367 222,060 873,278 590,599
Expenses:        
Losses and loss adjustment expenses 155,552 134,788 441,628 344,333
Underwriting, acquisition and insurance expenses 60,348 45,244 168,567 132,025
Interest Expense 2,573 1,716 7,867 2,306
Other expenses 401 212 1,220 521
Total expenses 218,874 181,960 619,282 479,185
Income before income taxes 95,493 40,100 253,996 111,414
Total income tax expense 19,378 7,116 49,290 19,549
Net income 76,115 32,984 204,706 91,865
Other comprehensive income (loss):        
Change in net unrealized losses on available-for-sale investments, net of taxes (23,511) (46,652) (20,109) (165,464)
Total comprehensive income (loss) $ 52,604 $ (13,668) $ 184,597 $ (73,599)
Earnings per share:        
Basic $ 3.30 $ 1.45 $ 8.89 $ 4.03
Diluted $ 3.26 $ 1.43 $ 8.79 $ 3.98
Weighted average shares outstanding:        
Basic 23,058 22,813 23,036 22,783
Diluted 23,315 23,114 23,298 23,099
v3.23.3
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Balance, shares at Dec. 31, 2021   22,834,377      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation (shares)   75,630      
Restricted shares withheld for taxes (shares)   (2,459)      
Balance, shares at Mar. 31, 2022   22,907,548      
Balance at Dec. 31, 2021 $ 699,335 $ 228 $ 295,040 $ 385,942 $ 18,125
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of stock under stock-based compensation plan 378 1 377    
Stock-based compensation expense 1,489   1,489    
Restricted shares withheld for taxes (516)   (516)    
Dividends declared (2,977)     (2,977)  
Other comprehensive income (loss), net of tax (63,930)       (63,930)
Net income 31,791     31,791  
Balance at Mar. 31, 2022 $ 665,570 $ 229 296,390 414,756 (45,805)
Balance, shares at Dec. 31, 2021   22,834,377      
Balance, shares at Sep. 30, 2022 22,924,522        
Balance at Dec. 31, 2021 $ 699,335 $ 228 295,040 385,942 18,125
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Other comprehensive income (loss), net of tax (165,464)        
Net income 91,865        
Balance at Sep. 30, 2022 $ 619,455 $ 229 297,692 468,873 (147,339)
Balance, shares at Mar. 31, 2022   22,907,548      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation (shares) 8,630        
Restricted shares withheld for taxes (shares) (12,420)        
Balance, shares at Jun. 30, 2022 22,903,758        
Balance at Mar. 31, 2022 $ 665,570 $ 229 296,390 414,756 (45,805)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of stock under stock-based compensation plan 150 0 150    
Stock-based compensation expense 1,857   1,857    
Restricted shares withheld for taxes (2,741)   (2,741)    
Dividends declared (2,978)     (2,978)  
Other comprehensive income (loss), net of tax (54,882)       (54,882)
Net income 27,090     27,090  
Balance at Jun. 30, 2022 $ 634,066 229 295,656 438,868 (100,687)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation (shares) 20,764        
Balance, shares at Sep. 30, 2022 22,924,522        
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of stock under stock-based compensation plan $ 373 0 373    
Stock-based compensation expense 1,663   1,663    
Dividends declared (2,979)     (2,979)  
Other comprehensive income (loss), net of tax (46,652)       (46,652)
Net income 32,984     32,984  
Balance at Sep. 30, 2022 $ 619,455 $ 229 297,692 468,873 (147,339)
Balance, shares at Dec. 31, 2022 23,090,526 23,090,526      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation (shares)   70,047      
Restricted shares withheld for taxes (shares)   (6,628)      
Balance, shares at Mar. 31, 2023   23,153,945      
Balance at Dec. 31, 2022 $ 745,449 $ 231 347,015 533,121 (134,918)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of stock under stock-based compensation plan 324 1 323    
Stock-based compensation expense 1,988   1,988    
Restricted shares withheld for taxes (2,104)   (2,104)    
Dividends declared (3,235)     (3,235)  
Other comprehensive income (loss), net of tax 17,509       17,509
Net income 55,800     55,800  
Balance at Mar. 31, 2023 $ 815,731 $ 232 347,222 585,686 (117,409)
Balance, shares at Dec. 31, 2022 23,090,526 23,090,526      
Balance, shares at Sep. 30, 2023 23,172,925        
Balance at Dec. 31, 2022 $ 745,449 $ 231 347,015 533,121 (134,918)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Other comprehensive income (loss), net of tax (20,109)        
Net income 204,706        
Balance at Sep. 30, 2023 $ 923,762 $ 232 350,452 728,105 (155,027)
Balance, shares at Mar. 31, 2023   23,153,945      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation (shares) 15,046        
Restricted shares withheld for taxes (shares) (6,816)        
Balance, shares at Jun. 30, 2023 23,162,175        
Balance at Mar. 31, 2023 $ 815,731 $ 232 347,222 585,686 (117,409)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of stock under stock-based compensation plan 230 0 230    
Stock-based compensation expense 2,543   2,543    
Restricted shares withheld for taxes (2,130)   (2,130)    
Dividends declared (3,243)     (3,243)  
Other comprehensive income (loss), net of tax (14,107)       (14,107)
Net income 72,791     72,791  
Balance at Jun. 30, 2023 $ 871,815 232 347,865 655,234 (131,516)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation (shares) 10,750        
Balance, shares at Sep. 30, 2023 23,172,925        
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of stock under stock-based compensation plan $ 172 0 172    
Stock-based compensation expense 2,415   2,415    
Dividends declared (3,244)     (3,244)  
Other comprehensive income (loss), net of tax (23,511)       (23,511)
Net income 76,115     76,115  
Balance at Sep. 30, 2023 $ 923,762 $ 232 $ 350,452 $ 728,105 $ (155,027)
v3.23.3
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares
 3 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]            
Dividends declared, per share $ 0.14 $ 0.14 $ 0.14 $ 0.13 $ 0.13 $ 0.13
v3.23.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Operating Activities    
Net cash provided by operating activities $ 648,308 $ 456,699
Investing Activities    
Purchase of property and equipment (5,501) (4,744)
Purchase of real estate investment (1,733) 0
Sale of real estate investment 62,036 0
Change in short-term investments, net 13,071 (81,113)
Purchases – fixed-maturity securities (947,920) (599,735)
Purchases - equity securities (62,047) (1,098)
Sales – fixed-maturity securities 204,416 73,066
Sales – equity securities 7,503 3,990
Maturities and calls – fixed-maturity securities 113,811 89,783
Net cash used in investing activities (616,364) (519,851)
Financing Activities    
Proceeds from Issuance of Long-Term Debt 50,000 125,000
Repayments of Long-Term Lines of Credit (62,000) (43,000)
Payments of Debt Issuance Costs (43) (2,381)
Payroll taxes withheld and remitted on share-based payments (4,234) (3,257)
Proceeds from stock options exercised 726 901
Dividends paid (9,723) (8,938)
Net cash (used in) provided by financing activities (25,274) 68,325
Net change in cash and cash equivalents 6,670 5,173
Cash and cash equivalents 162,944 $ 126,213
Cash and cash equivalents at beginning of year 156,274  
Cash and cash equivalents at end of period $ 162,944  
v3.23.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of presentation
The unaudited condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its subsidiaries ("the Company") included in the Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. All significant intercompany balances and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results of operations for the full year.
Use of estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, if any, at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Prospective accounting pronouncements
There are no prospective accounting standards which, upon their effective date, would have a material impact on the Company's condensed consolidated financial statements.
v3.23.3
Investments
 9 Months Ended
Sep. 30, 2023
Investments [Abstract]  
Investments Investments
Available-for-sale investments
The following tables summarize the available-for-sale investments at September 30, 2023 and December 31, 2022:
September 30, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesEstimated Fair Value
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$42,705 $— $(1,200)$— $41,505 
Obligations of states, municipalities and political subdivisions
190,263 22 (30,339)— 159,946 
Corporate and other securities1,299,277 34 (87,518)(564)1,211,229 
Asset-backed securities599,813 703 (6,822)— 593,694 
Residential mortgage-backed securities
361,833 44 (66,329)— 295,548 
Commercial mortgage-backed securities70,023 — (7,185)(1)62,837 
Total fixed-maturity investments$2,563,914 $803 $(199,393)$(565)$2,364,759 

December 31, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesEstimated Fair Value
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$17,934 $— $(1,193)$— $16,741 
Obligations of states, municipalities and political subdivisions
230,746 330 (26,444)— 204,632 
Corporate and other securities909,285 730 (76,757)(366)832,892 
Asset-backed securities361,248 292 (8,534)— 353,006 
Residential mortgage-backed securities
349,066 52 (55,156)— 293,962 
Commercial mortgage-backed securities65,353 — (6,486)— 58,867 
Total fixed-maturity investments$1,933,632 $1,404 $(174,570)$(366)$1,760,100 
Available-for-sale securities in a loss position
The Company regularly reviews all its available-for-sale investments with unrealized losses to assess whether the decline in the fair value is deemed to be a credit loss. The Company considers a number of factors in completing its review of credit losses, including the extent to which a security's fair value has been below cost and the financial condition of an issuer. In addition to specific issuer information, the Company also evaluates the current market and interest rate environment. Generally, a decline in a security’s value caused by a change in the market or interest rate environment does not constitute a credit loss.
For fixed-maturity securities, the Company also considers whether it intends to sell the security or, if it is more likely than not that it will be required to sell the security before recovery, and its ability to recover all amounts outstanding when contractually due. When assessing whether it intends to sell a fixed-maturity security or, if it is
likely to be required to sell a fixed-maturity security before recovery of its amortized cost, the Company evaluates facts and circumstances including, but not limited to, decisions to reposition the investment portfolio, potential sales of investments to meet cash flow needs and potential sales of investments to capitalize on favorable pricing.
For fixed-maturity securities where a decline in fair value is below the amortized cost basis and the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, an impairment is recognized in net income based on the fair value of the security at the time of assessment. For fixed-maturity securities that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before recovery of its amortized cost, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. Inputs into the cash flow analysis include default rates and recoverability rates based on credit rating. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the impairment, which is recognized in net income through an allowance for credit losses. Any remaining decline in fair value represents the noncredit portion of the impairment, which is recognized in other comprehensive income.
The Company reports investment income due and accrued separately from available-for-sale investments and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through earnings at the time the issuer of the bond defaults or is expected to default on payments.
At September 30, 2023, the Company's credit loss review resulted in an allowance for credit losses on 6 securities. The following table presents changes in the allowance for expected credit losses on available-for-sale securities for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Beginning balance$422 $— $366 $— 
Increase to allowance from securities for which credit losses were not previously recorded1 — 1 — 
Reduction from securities sold during the period— — (12)— 
Net increase from securities that had an allowance at the beginning of the period142 — 210 — 
Ending balance$565 $— $565 $— 
The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position:
September 30, 2023
Less than 12 Months12 Months or LongerTotal
Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of the U.S. government agencies$26,341 $(84)$15,164 $(1,116)$41,505 $(1,200)
Obligations of states, municipalities and political subdivisions
42,151 (1,046)116,398 (29,293)158,549 (30,339)
Corporate and other securities
564,003 (9,918)643,417 (77,600)1,207,420 (87,518)
Asset-backed securities273,264 (3,895)245,476 (2,927)518,740 (6,822)
Residential mortgage-backed securities
36,467 (326)257,041 (66,003)293,508 (66,329)
Commercial mortgage-backed securities5,953 (129)56,884 (7,056)62,837 (7,185)
Total fixed-maturity investments$948,179 $(15,398)$1,334,380 $(183,995)$2,282,559 $(199,393)

At September 30, 2023, the Company held 1,233 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $2.3 billion and gross unrealized losses of $199.4 million. Of these securities, 782 were in a continuous unrealized loss position for greater than one year. As discussed above, the Company regularly reviews all fixed-maturity securities within its investment portfolio to determine whether a credit loss has occurred. Based on the Company's review as of September 30, 2023, except for securities previously discussed, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At September 30, 2023, 82.0% of the Company’s fixed-maturity securities were rated "A-" or better and all of the Company’s fixed-maturity securities made expected coupon payments under the contractual terms of the securities.
December 31, 2022
Less than 12 Months
12 Months or Longer
Total
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$10,538 $(447)$6,204 $(746)$16,742 $(1,193)
Obligations of states, municipalities and political subdivisions
141,460 (20,347)17,314 (6,097)158,774 (26,444)
Corporate and other securities
583,619 (42,675)156,148 (34,082)739,767 (76,757)
Asset-backed securities216,487 (5,429)97,703 (3,105)314,190 (8,534)
Residential mortgage-backed securities
98,909 (12,324)194,773 (42,832)293,682 (55,156)
Commercial mortgage-backed securities50,666 (4,732)8,201 (1,754)58,867 (6,486)
Total fixed-maturity investments$1,101,679 $(85,954)$480,343 $(88,616)$1,582,022 $(174,570)

Contractual maturities of available-for-sale fixed-maturity securities
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at September 30, 2023 are summarized, by contractual maturity, as follows:
September 30, 2023
AmortizedEstimated
CostFair Value
(in thousands)
Due in one year or less$184,335 $181,981 
Due after one year through five years923,152 889,587 
Due after five years through ten years194,507 167,015 
Due after ten years230,251 174,097 
Asset-backed securities599,813 593,694 
Residential mortgage-backed securities361,833 295,548 
Commercial mortgage-backed securities70,023 62,837 
Total fixed-maturity securities $2,563,914 $2,364,759 

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower.
Real estate investments
In December 2022, the Company completed the purchase of a real estate investment property. Real estate investments consisted of the following:
September 30, 2023December 31, 2022
(in thousands)
Building$— $44,931 
Land14,372 17,946 
Intangible in-place lease— 9,749 
Site improvements— 2,686 
Parking deck— 1,311 
14,372 76,623 
Accumulated depreciation— (236)
Total real estate investments, net$14,372 $76,387 
During the third quarter of 2023, the Company sold the parking deck, one of the office buildings and the related in-place leases of its real estate investment property for approximately $62.0 million in cash, net of seller’s costs. The Company recognized a gain on the sale of $4.3 million, which is included in net realized investment gains on the consolidated statement of income. The Company used the net sale proceeds to pay down a portion of its Credit Facility. Concurrent with the sale of the investment property, the Company refined its plans for the remainder of the property and determined the predominant use of the remaining office building would be for future office space expansion. Upon this determination, the Company reclassified the carrying value of the building to construction in progress within property and equipment.
Net investment income
The following table presents the components of net investment income for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Interest:
Taxable bonds$24,644 $12,041 $63,672 $29,015 
Tax exempt municipal bonds522 849 1,704 2,558 
Cash equivalents and short-term investments758 475 2,337 598 
Dividends on equity securities1,271 1,085 3,692 3,208 
Real estate investment income851 — 3,565 — 
Gross investment income28,046 14,450 74,970 35,379 
Investment expenses(960)(592)(3,017)(1,839)
Net investment income$27,086 $13,858 $71,953 $33,540 

Investment expenses included depreciation expense related to real estate investments of $0.5 million for the nine months ended September 30, 2023. There was no depreciation of real estate investments for the three months ended September 30, 2023 as the related depreciable real estate investments were reclassified to held for sale prior to being
sold during the period. There was no depreciation of real estate investments for the three and nine months ended September 30, 2022.
Realized investment gains and losses
The following table presents realized investment gains and losses for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Fixed-maturity securities:
Realized gains$74 $— $1,811 $1,076 
Realized losses(51)(177)(2,268)(720)
Net realized (losses) gains from fixed-maturity securities23 (177)(457)356 
Equity securities:
Realized gains— — 1,626 1,363 
Realized losses— — (4,487)(148)
Net realized (losses) gains from equity securities— — (2,861)1,215 
Realized (losses) gains from the sales of short-term investments1 4 (19)(36)
Realized gain on sale of real estate investments4,250 — 4,250 — 
Net realized investment gains (losses)$4,274 $(173)$913 $1,535 
The net realized gains or losses on sales of equity securities represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) in the consolidated statement of income consists of two components: (1) the reversal of the gain or loss recognized in previous periods on equity securities sold and (2) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.
Change in net unrealized gains (losses) on fixed-maturity securities
For the three months ended September 30, 2023 and 2022, the changes in net unrealized losses for fixed-maturity securities were $(29.8) million and $(59.1) million, respectively. For the nine months ended September 30, 2023 and 2022, the changes in net unrealized losses for fixed-maturity securities were $(25.4) million and $(209.4) million, respectively.
Insurance – statutory deposits
The Company had invested assets with a fair value of $5.7 million and $5.9 million on deposit with state regulatory authorities at September 30, 2023 and December 31, 2022, respectively.
Payable for investments purchased
The Company recorded a payable for investments purchased, not yet settled, of $1.0 million and $1.8 million at September 30, 2023 and December 31, 2022, respectively. The payable balance was included in the "other liabilities" line item of the consolidated balance sheet.
v3.23.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is estimated for each class of financial instrument based on the framework established in the fair value accounting guidance. Fair value is defined as the price in the principal market that would be received for an asset or paid to transfer a liability to facilitate an orderly transaction between market participants on the measurement date. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Fair value hierarchy disclosures are based on the quality of inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value.
The three levels of the fair value hierarchy are defined as follows:
Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets.
Level 2 - Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs.
Level 3 - Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement.
Fair values of the Company's investment portfolio are estimated using unadjusted prices obtained by its investment accounting vendor from nationally recognized third-party pricing services, where available. Values for U.S. Treasuries, exchange traded funds and common stocks are generally based on Level 1 inputs, which use quoted prices in active markets for identical assets. For other fixed-maturity securities and non-redeemable preferred stock, the pricing vendors use a pricing methodology involving the market approach, including pricing models which use prices and relevant market information regarding a particular security or securities with similar characteristics to establish a valuation. The estimates of fair value of these investments are included in the amounts disclosed as Level 2. For those investments where significant inputs are unobservable, the Company's investment accounting vendor obtains valuations from pricing vendors or brokers using the market approach and income approach valuation techniques and are disclosed as Level 3.
Management performs several procedures to ascertain the reasonableness of investment values included in the condensed consolidated financial statements, including 1) obtaining and reviewing internal control reports from the Company's investment accounting vendor that assess fair values from third party pricing services, 2) discussing with the Company's investment accounting vendor its process for reviewing and validating pricing obtained from third party pricing services and 3) reviewing the security pricing received from the Company's investment accounting vendor and monitoring changes in unrealized gains and losses at the individual security level. The Company has evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs.
The following tables present the balances of assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy:
September 30, 2023
Level 1Level 2Level 3Total
(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies$36,537 $4,968 $— $41,505 
Obligations of states, municipalities and political subdivisions
— 159,946 — 159,946 
Corporate and other securities— 1,211,229 — 1,211,229 
Asset-backed securities— 593,694 — 593,694 
Residential mortgage-backed securities— 295,548 — 295,548 
Commercial mortgage-backed securities— 62,837 — 62,837 
Total fixed-maturity securities36,537 2,328,222 — 2,364,759 
Equity securities:
Exchange traded funds106,565 — — 106,565 
Non-redeemable preferred stock— 31,755 — 31,755 
Common stocks69,631 — — 69,631 
Total equity securities176,196 31,755 — 207,951 
Short-term investments4,725 24,340 — 29,065 
Total$217,458 $2,384,317 $— $2,601,775 
December 31, 2022
Level 1Level 2Level 3Total
(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$16,741 $— $— $16,741 
Obligations of states, municipalities and political subdivisions
— 204,632 — 204,632 
Corporate and other securities— 832,892 — 832,892 
Asset-backed securities— 353,006 — 353,006 
Residential mortgage-backed securities— 293,962 — 293,962 
Commercial mortgage-backed securities— 58,867 — 58,867 
Total fixed-maturity securities16,741 1,743,359 — 1,760,100 
Equity securities:
Exchange traded funds104,202 — — 104,202 
Non-redeemable preferred stock— 38,162 — 38,162 
Common stocks10,107 — — 10,107 
Total equity securities114,309 38,162 — 152,471 
Short-term investments31,366 9,971 — 41,337 
Total$162,416 $1,791,492 $— $1,953,908 
There were no assets or liabilities measured at fair value on a nonrecurring basis as of September 30, 2023 or December 31, 2022.
The carrying amount of the Company's fixed-rate senior notes was $175.0 million and $125.0 million, less debt issuance costs, and the corresponding estimated fair value was $159.5 million and $117.2 million at September 30, 2023 and December 31, 2022, respectively. The fair value measurement was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under the Company's credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2. The estimated fair value of outstanding borrowings under the Company's revolving Credit Facility approximated its carrying value at September 30, 2023 and December 31, 2022. See Note 13 for further information regarding the Company's debt arrangements.
The Company holds cash equivalents that are managed as part of its investment portfolio and, due to the short-term maturities of these assets, the carrying value of these investments approximates fair value. The Company held cash equivalents of $5.4 million and $58.0 million at September 30, 2023 and December 31, 2022, respectively.
v3.23.3
Credit Losses
 9 Months Ended
Sep. 30, 2023
Credit Loss [Abstract]  
Credit Loss, Financial Instrument
Premiums receivable
Premiums receivable balances are carried at face value, net of any allowance for credit losses. The allowance for credit losses represents an estimate of amounts considered uncollectible based on the Company’s assessment of the collectability of receivables that are past due. The estimate considers historical loss data, current and future economic conditions and specific identification of collectability concerns, where applicable. The following table presents the change in the allowance for credit losses for premiums receivable for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Beginning balance$12,167 $5,612 $8,067 $3,391 
Current period change for estimated uncollectible premiums2,341 1,874 7,459 4,818 
Write-offs of uncollectible premiums receivable(129)(195)(1,147)(918)
Ending balance$14,379 $7,291 $14,379 $7,291 
v3.23.3
Deferred Policy Acquisition Costs
 9 Months Ended
Sep. 30, 2023
Deferred Policy Acquisition Costs Disclosures [Abstract]  
Deferred Policy Acquisition Costs Deferred Policy Acquisition Costs
The following table presents the amounts of policy acquisition costs deferred and amortized for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Balance, beginning of period$85,326 $54,806 $61,594 $41,968 
Policy acquisition costs deferred:
Direct commissions54,580 41,525 169,223 117,621 
Ceding commissions(24,230)(13,886)(62,779)(32,678)
Other underwriting and policy acquisition costs1,623 2,302 7,511 6,534 
Policy acquisition costs deferred31,973 29,941 113,955 91,477 
Amortization of net policy acquisition costs
(31,118)(26,302)(89,368)(75,000)
Balance, end of period$86,181 $58,445 $86,181 $58,445 
Amortization of net policy acquisition costs is included in the line item "Underwriting, acquisition and insurance expenses" in the accompanying consolidated statements of income and comprehensive income.
v3.23.3
Property and Equipment
 9 Months Ended
Sep. 30, 2023
Property and Equipment [Abstract]  
Property and Equipment Disclosure [Text Block] Property and Equipment, Net
Property and equipment are included in "other assets" in the accompanying consolidated balance sheets and consist of the following:
September 30, 2023December 31, 2022
(in thousands)
Building$37,107 $33,065 
Parking deck5,072 5,072 
Land3,068 3,068 
Equipment3,859 3,444 
Software14,402 11,410 
Furniture and fixtures3,049 2,615 
Land improvements474 474 
Leasehold improvements153 — 
Construction in progress - building5,700 2,618 
72,884 61,766 
Accumulated depreciation(10,620)(8,291)
Total property and equipment, net$62,264 $53,475 
v3.23.3
Underwriting, Acquisition and Insurance Expenses
 9 Months Ended
Sep. 30, 2023
Underwriting, Acquisition and Insurance Expenses [Abstract]  
Underwriting, acquisition and insurance expenses Underwriting, Acquisition and Insurance Expenses
Underwriting, acquisition and insurance expenses for the three and nine months ended September 30, 2023 and 2022 consist of the following:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Underwriting, acquisition and insurance expenses incurred:
Direct commissions$53,035 $37,177 $143,181 $99,540 
Ceding commissions(23,396)(12,939)(59,882)(30,069)
Other underwriting expenses30,709 21,006 85,268 62,554 
Total$60,348 $45,244 $168,567 $132,025 
Other underwriting expenses within underwriting, acquisition and insurance expenses include salaries, bonus and employee benefits expenses of $23.1 million and $15.4 million for the three months ended September 30, 2023 and 2022, respectively. Other underwriting expenses within underwriting, acquisition and insurance expenses included salaries, bonus and employee benefits expenses of $63.0 million and $46.1 million for the nine months ended September 30, 2023 and 2022, respectively. See Note 15 for further information regarding underwriting, acquisition and insurance expenses.
v3.23.3
Stock-based Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based CompensationOn July 27, 2016, the Kinsale Capital Group, Inc. 2016 Omnibus Incentive Plan (the "2016 Incentive Plan") became effective. The 2016 Incentive Plan, which is administered by the Compensation, Nominating and Corporate Governance Committee of the Company’s Board of Directors, provides for grants of stock options, restricted stock,
restricted stock units and other stock-based awards to officers, employees, directors, independent contractors and consultants. The number of shares of common stock available for issuance under the 2016 Incentive Plan may not exceed 2,073,832.
The total compensation cost that has been charged against income for share-based compensation arrangements was $6.9 million and $5.0 million for the nine months ended September 30, 2023 and 2022, respectively.
Restricted Stock Awards
During the nine months ended September 30, 2023, the Company granted restricted stock awards under the 2016 Incentive Plan. The restricted stock awards were valued on the date of grant and will vest over a period of 1 to 4 years corresponding to the anniversary date of the grants. The fair value of restricted stock awards was determined based on the closing trading price of the Company’s shares on the grant date or, if no shares were traded on the grant date, the last preceding date for which there was a sale of shares. Except for restrictions placed on the transferability of restricted stock, holders of unvested restricted stock have full stockholder’s rights, including voting rights and the right to receive dividends. Unvested shares of restricted stock awards and accrued dividends, if any, are forfeited upon the termination of service to or employment with the Company.
A summary of restricted stock activity under the 2016 Incentive Plan for the nine months ended September 30, 2023 is as follows:
For the Nine Months Ended
September 30, 2023
Number of SharesWeighted Average Grant Date Fair Value per Share
Non-vested outstanding at the beginning of the period98,621 $182.37 
Granted51,176 $313.35 
Vested(40,582)$163.62 
Forfeited(725)$225.64 
Non-vested outstanding at the end of the period108,490 $250.88 
Employees surrender shares to pay for withholding tax obligations resulting from any vesting of restricted stock awards. During the nine months ended September 30, 2023, shares withheld for taxes in connection with the vesting of restricted stock awards totaled 13,444.
The weighted average grant-date fair value per share of the Company's restricted stock awards granted during the nine months ended September 30, 2023 and 2022 was $313.35 and $211.86, respectively. The fair value of restricted stock awards that vested during the nine months ended September 30, 2023 and 2022 was $12.6 million and $9.9 million, respectively. As of September 30, 2023, the Company had $21.7 million of total unrecognized stock-based compensation expense expected to be charged to earnings over a weighted-average period of 2.8 years.
Stock Options
On July 27, 2016, the Board of Directors approved, and the Company granted, 1,036,916 stock options with an exercise price equal to the initial public offering price of $16.00 per share and a weighted-average grant-date fair value of $2.71 per share. The options have a maximum contractual term of 10 years and vested in 4 equal annual installments following the date of the grant. The value of the options granted was estimated at the date of grant using the Black-Scholes pricing model.
A summary of option activity as of September 30, 2023, and changes during the period then ended is presented below:
Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Years of Contractual TermAggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2023256,357 $16.00 
Granted— — 
Forfeited— — 
Exercised(45,392)16.00 
Outstanding at September 30, 2023
210,965 $16.00 2.8$83,991 
Exercisable at September 30, 2023
210,965 $16.00 2.8$83,991 
The total intrinsic value of options exercised was $14.6 million and $12.2 million during the nine months ended September 30, 2023 and 2022, respectively.
v3.23.3
Earnings Per Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations contained in the condensed consolidated financial statements:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except per share data)
Net income$76,115 $32,984 $204,706 $91,865 
Weighted average common shares outstanding - basic23,058 22,813 23,036 22,783 
Effect of potential dilutive securities:
Conversion of stock options208 262 220 276 
Conversion of restricted stock49 39 42 40 
Weighted average common shares outstanding - diluted23,315 23,114 23,298 23,099 
Earnings per common share:
Basic$3.30 $1.45 $8.89 $4.03 
Diluted$3.26 $1.43 $8.79 $3.98 
There were no anti-dilutive stock awards for the three months ended September 30, 2023 and 2022. There were 47 thousand and 48 thousand anti-dilutive stock awards for the nine months ended September 30, 2023 and 2022, respectively.
v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes The Company uses the estimated annual effective tax rate method for calculating its tax provision in interim periods, which represents the Company's best estimate of the effective tax rate expected for the full year. The estimated annual effective tax rate typically differs from the U.S. statutory tax rate, primarily as a result of tax-exempt investment income and any discrete items recognized during the period. The Company's effective tax rates were 19.4% and 17.5% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rates were lower than the federal statutory rate of 21% due primarily to the tax benefits from stock-based compensation and from income generated by certain tax-exempt investments.
v3.23.3
Reserves for Unpaid Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2023
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]  
Reserves for Unpaid Losses and Loss Adjustment Expenses Reserves For Unpaid Losses and Loss Adjustment Expenses
The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses:
September 30,
20232022
(in thousands)
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year
$1,238,402 $881,344 
Less: reinsurance recoverable on unpaid losses
177,039 117,561 
Net reserves for unpaid losses and loss adjustment expenses, beginning of year
1,061,363 763,783 
Incurred losses and loss adjustment expenses:
Current year470,235 373,183 
Prior years(28,607)(28,850)
Total net losses and loss adjustment expenses incurred441,628 344,333 
Payments:
Current year22,156 13,028 
Prior years136,380 84,827 
Total payments158,536 97,855 
Net reserves for unpaid losses and loss adjustment expenses, end of period
1,344,455 1,010,261 
Reinsurance recoverable on unpaid losses220,452 187,056 
Gross reserves for unpaid losses and loss adjustment expenses, end of period
$1,564,907 $1,197,317 
During the nine months ended September 30, 2023, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2022 developed favorably by $28.6 million, of which $39.0 million was attributable to the 2021 and 2022 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2017 through 2019 accident years due to long-tailed property damage claims within the construction-related primary casualty business that are more exposed to the increase in inflation.
During the nine months ended September 30, 2022, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2021 developed favorably by $28.9 million, of which $32.0 million was attributable to the 2020 and 2021 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2018 accident year due to routine variability in reported losses and modest adjustments in actuarial assumptions. Current accident year incurred losses and loss adjustment expenses for the nine months ended September 30, 2022 included $26.2 million of catastrophe losses primarily related to Hurricane Ian.
v3.23.3
Reinsurance
 9 Months Ended
Sep. 30, 2023
Reinsurance Disclosures [Abstract]  
Reinsurance Reinsurance
The following table summarizes the effect of reinsurance on premiums written and earned for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Premiums written:
Direct$377,789 $284,111 $1,173,599 $806,625 
Ceded(83,509)(48,212)(215,248)(111,885)
Net written$294,280 $235,899 $958,351 $694,740 
Premiums earned:
Direct$362,689 $254,855 $982,922 $682,619 
Ceded(81,187)(45,596)(207,216)(104,640)
Net earned$281,502 $209,259 $775,706 $577,979 
The following table summarizes ceded losses and loss adjustment expenses for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Ceded incurred losses and loss adjustment expenses$27,381 $56,774 $89,371 $79,790 
The following table presents reinsurance recoverables on paid and unpaid losses as of September 30, 2023 and December 31, 2022:
September 30, 2023December 31, 2022
(in thousands)
Reinsurance recoverables on paid losses$20,400 $43,415 
Reinsurance recoverables on unpaid losses, net220,452 177,039 
Reinsurance recoverables, net$240,852 $220,454 
v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
Note Purchase and Private Shelf Agreement
On July 22, 2022, the Company entered into a Note Purchase and Private Shelf Agreement (the “Note Purchase Agreement”) with PGIM, Inc. (“Prudential”) and the purchasers of the Series A Notes (as defined below), named in the Purchaser Schedule attached thereto (collectively, the “Note Purchasers”). Pursuant to the Note Purchase Agreement, on July 22, 2022, the Company issued $125.0 million aggregate principal amount of 5.15% Series A Senior Notes Due July 22, 2034 (collectively, the "Series A Notes”) to the Note Purchasers. The Note Purchase Agreement also provides for the issuance of additional shelf notes issued thereunder (the “Shelf Notes” and, together with the Series A Notes, the “Notes”) not to exceed $150.0 million of Notes outstanding thereunder.
On September 18, 2023, the Company entered into a First Amendment to the Note Purchase Agreement and increased the additional Shelf Notes limit to $200.0 million. Pursuant to the First Amendment to the Note Purchase Agreement, on September 18, 2023, the Company issued a $50.0 million aggregate principal amount 6.21% Series B Senior Note due July 22, 2034 to the note purchaser.
The Series A and B Notes are senior unsecured obligations of the Company and rank pari passu with the Company’s Amended and Restated Credit Agreement.
The Series A Notes bear interest at 5.15% per annum and mature on July 22, 2034, unless paid earlier by the Company. Should the Company elect to prepay the Series A Notes, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Note Purchase Agreement. Principal payments are required annually beginning on July 22, 2030 in equal installments of $25.0 million through July 22, 2034.
The Series B Note bears interest at 6.21% per annum and matures on July 22, 2034, unless paid earlier by the Company. Should the Company elect to prepay the Series B Note, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Note Purchase Agreement. Principal payments are required annually beginning on July 22, 2030 in equal installments of $10.0 million through July 22, 2034.
Credit Agreement
On May 28, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) that provided the Company with a $50.0 million senior unsecured revolving credit facility (the “Credit Facility”) and an uncommitted accordion feature that permits the Company to increase the commitments by an additional $30.0 million. On July 22, 2022, the Company entered into an Amended and Restated Credit Agreement, with JPMorgan Chase Bank, N.A., as administrative agent and as issuing bank, Truist Bank, as syndication agent, and the lenders party thereto (collectively, the “Lenders”). The Amended and Restated Credit Agreement 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 the Company obtaining commitments from existing or new lenders and satisfying other conditions specified in the Amended and Restated Credit Agreement. The Company is required to pay a Commitment Fee Rate (as defined therein) of 0.25% on the average daily amount of the Available Revolving Commitment (as defined therein). Borrowings under the Amended and Restated Credit Agreement may be used for general corporate purposes (which may include, without limitation, to fund future growth, to finance working capital needs, to fund capital expenditures, and to refinance, redeem or repay indebtedness). In September 2023, the Company used proceeds from the sale of its real estate investment property to pay down $62.0 million from the Credit Facility.
The loans under the Amended and Restated Credit Agreement bear interest, at the Company's option, at a rate equal to the Adjusted Term SOFR Rate (as defined therein) plus 1.625% or the Alternate Base Rate (as defined therein) plus 0.625%. For the nine months ended September 30, 2023, the annual weighted-average interest rate of borrowings under the Credit Facility was 6.75%.
The following table presents the Company's outstanding debt as of September 30, 2023 and December 31, 2022:

IssuanceMaturitiesSeptember 30, 2023December 31, 2022
(in thousands)
Credit FacilityVarious7/22/2027$11,000 $73,000 
5.15% Series A Notes
7/22/20227/22/2034125,000 125,000 
6.21% Series B Note
9/18/20237/22/203450,000 — 
Less: Unamortized debt issuance costs(2,223)(2,253)
Total debt$183,777 $195,747 
Both the Note Purchase Agreement and the Amended and Restated Credit Agreement contain representations and affirmative and negative covenants, including financial covenants customary for agreements of this type, as well as customary events of default provisions. As of September 30, 2023, the Company was in compliance with all of its financial covenants under both the Note Purchase Agreement and the Credit Facility.
v3.23.3
Other Comprehensive (Loss) Income
 9 Months Ended
Sep. 30, 2023
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Income Other Comprehensive Loss
The following table summarizes the components of other comprehensive loss for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Unrealized losses on fixed-maturity securities arising during the period, before income taxes$(29,931)$(59,230)$(26,997)$(209,198)
Income tax benefit6,286 12,439 5,670 43,932 
Unrealized losses arising during the period, net of income taxes(23,645)(46,791)(21,327)(165,266)
Less reclassification adjustment:
Net realized (losses) gains on fixed-maturity securities, before income taxes(27)(177)(1,343)250 
Income tax benefit (expense)6 38 282 (52)
Reclassification adjustment included in net income(21)(139)(1,061)198 
Change in allowance for credit losses on investments, before income taxes(143)— (199)— 
Income tax benefit 30 — 42 — 
Reclassification adjustment included in net income(113)— (157)— 
Other comprehensive loss$(23,511)$(46,652)$(20,109)$(165,464)
The sale or credit loss of an available-for-sale fixed-maturity security results in amounts being reclassified from accumulated other comprehensive loss to realized gains or losses in current period earnings. The related tax effect of the reclassification adjustment is recorded in income tax expense in current period earnings. See Note 2 for additional information.
v3.23.3
Accounting Changes and Error Corrections
 9 Months Ended
Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]  
Immaterial Correction to Prior Period Financial Statements for Accounting Policy Change Immaterial Correction to Prior Period Financial Statements for Accounting Policy Change
The Company charges insureds certain policy fees and recognizes such fees into earnings when the related premium is written. Previously, the Company presented these fees as a reduction of underwriting, acquisition and insurance expenses. Effective April 1, 2023, the Company corrected its accounting policy to present these fees as fee income in the consolidated statements of income and comprehensive income in accordance with ASC 944, Financial Services–Insurance.
The Company presented $6.8 million and $20.0 million as fee income for the three and nine months ended September 30, 2023, respectively, in the consolidated statements of income and comprehensive income. The Company reclassified $5.1 million and $14.4 million to fee income from underwriting, acquisition and insurance expenses in the previously issued financial statements on Form 10-Q for the three and nine months ended September 30, 2022, respectively, to correct prior periods’ presentation. The Company considered the qualitative and quantitative impacts and determined that the correction was not material to the Company's previously issued consolidated financial statements.
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure                
Net income $ 76,115 $ 72,791 $ 55,800 $ 32,984 $ 27,090 $ 31,791 $ 204,706 $ 91,865
v3.23.3
Insider Trading Arrangements
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
Securities Trading Plans of Directors and Executive Officers
Transactions in our securities by our non-employee directors and executive officers are required to be made in accordance with our Policy on the Prevention of Insider Trading and Selective Disclosure (the “Insider Trading Policy”), which, among other things, requires that the transactions be in accordance with applicable U.S. federal securities laws that prohibit trading while in possession of material nonpublic information. Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables prearranged transactions in securities in a manner that avoids concerns about initiating transactions at a future date while possibly in possession of material nonpublic information. Our Insider Trading Policy permits our non-employee directors and executive officers to enter into trading plans designed to comply with Rule 10b5-1.
During the third quarter of 2023, none of our non-employee directors or executive officers adopted, modified or terminated a Rule 10b5-1 trading plan or adopted, modified or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).
Rule 10b5-1 Arrangement Adopted false  
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
v3.23.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation Basis of presentationThe unaudited condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its subsidiaries ("the Company") included in the Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. All significant intercompany balances and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results of operations for the full year.
Use of Estimates Use of estimatesThe preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, if any, at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy
Prospective accounting pronouncements
There are no prospective accounting standards which, upon their effective date, would have a material impact on the Company's condensed consolidated financial statements.
v3.23.3
Investments (Tables)
 9 Months Ended
Sep. 30, 2023
Investments [Abstract]  
Available-for-sale Investments
The following tables summarize the available-for-sale investments at September 30, 2023 and December 31, 2022:
September 30, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesEstimated Fair Value
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$42,705 $— $(1,200)$— $41,505 
Obligations of states, municipalities and political subdivisions
190,263 22 (30,339)— 159,946 
Corporate and other securities1,299,277 34 (87,518)(564)1,211,229 
Asset-backed securities599,813 703 (6,822)— 593,694 
Residential mortgage-backed securities
361,833 44 (66,329)— 295,548 
Commercial mortgage-backed securities70,023 — (7,185)(1)62,837 
Total fixed-maturity investments$2,563,914 $803 $(199,393)$(565)$2,364,759 

December 31, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesEstimated Fair Value
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$17,934 $— $(1,193)$— $16,741 
Obligations of states, municipalities and political subdivisions
230,746 330 (26,444)— 204,632 
Corporate and other securities909,285 730 (76,757)(366)832,892 
Asset-backed securities361,248 292 (8,534)— 353,006 
Residential mortgage-backed securities
349,066 52 (55,156)— 293,962 
Commercial mortgage-backed securities65,353 — (6,486)— 58,867 
Total fixed-maturity investments$1,933,632 $1,404 $(174,570)$(366)$1,760,100 
Debt Securities, Available-for-Sale, Allowance for Credit Loss The following table presents changes in the allowance for expected credit losses on available-for-sale securities for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Beginning balance$422 $— $366 $— 
Increase to allowance from securities for which credit losses were not previously recorded1 — 1 — 
Reduction from securities sold during the period— — (12)— 
Net increase from securities that had an allowance at the beginning of the period142 — 210 — 
Ending balance$565 $— $565 $— 
Available-for-sale Securities in an Unrealized Loss Position
The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position:
September 30, 2023
Less than 12 Months12 Months or LongerTotal
Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of the U.S. government agencies$26,341 $(84)$15,164 $(1,116)$41,505 $(1,200)
Obligations of states, municipalities and political subdivisions
42,151 (1,046)116,398 (29,293)158,549 (30,339)
Corporate and other securities
564,003 (9,918)643,417 (77,600)1,207,420 (87,518)
Asset-backed securities273,264 (3,895)245,476 (2,927)518,740 (6,822)
Residential mortgage-backed securities
36,467 (326)257,041 (66,003)293,508 (66,329)
Commercial mortgage-backed securities5,953 (129)56,884 (7,056)62,837 (7,185)
Total fixed-maturity investments$948,179 $(15,398)$1,334,380 $(183,995)$2,282,559 $(199,393)
December 31, 2022
Less than 12 Months
12 Months or Longer
Total
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$10,538 $(447)$6,204 $(746)$16,742 $(1,193)
Obligations of states, municipalities and political subdivisions
141,460 (20,347)17,314 (6,097)158,774 (26,444)
Corporate and other securities
583,619 (42,675)156,148 (34,082)739,767 (76,757)
Asset-backed securities216,487 (5,429)97,703 (3,105)314,190 (8,534)
Residential mortgage-backed securities
98,909 (12,324)194,773 (42,832)293,682 (55,156)
Commercial mortgage-backed securities50,666 (4,732)8,201 (1,754)58,867 (6,486)
Total fixed-maturity investments$1,101,679 $(85,954)$480,343 $(88,616)$1,582,022 $(174,570)
Contractual Maturities of Available-for-sale Fixed Maturity Securities
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at September 30, 2023 are summarized, by contractual maturity, as follows:
September 30, 2023
AmortizedEstimated
CostFair Value
(in thousands)
Due in one year or less$184,335 $181,981 
Due after one year through five years923,152 889,587 
Due after five years through ten years194,507 167,015 
Due after ten years230,251 174,097 
Asset-backed securities599,813 593,694 
Residential mortgage-backed securities361,833 295,548 
Commercial mortgage-backed securities70,023 62,837 
Total fixed-maturity securities $2,563,914 $2,364,759 
Schedule of Real Estate Properties Real estate investments consisted of the following:
September 30, 2023December 31, 2022
(in thousands)
Building$— $44,931 
Land14,372 17,946 
Intangible in-place lease— 9,749 
Site improvements— 2,686 
Parking deck— 1,311 
14,372 76,623 
Accumulated depreciation— (236)
Total real estate investments, net$14,372 $76,387 
During the third quarter of 2023, the Company sold the parking deck, one of the office buildings and the related in-place leases of its real estate investment property for approximately $62.0 million in cash, net of seller’s costs. The Company recognized a gain on the sale of $4.3 million, which is included in net realized investment gains on the consolidated statement of income. The Company used the net sale proceeds to pay down a portion of its Credit Facility. Concurrent with the sale of the investment property, the Company refined its plans for the remainder of the property and determined the predominant use of the remaining office building would be for future office space expansion. Upon this determination, the Company reclassified the carrying value of the building to construction in progress within property and equipment.
Net Investment Income
The following table presents the components of net investment income for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Interest:
Taxable bonds$24,644 $12,041 $63,672 $29,015 
Tax exempt municipal bonds522 849 1,704 2,558 
Cash equivalents and short-term investments758 475 2,337 598 
Dividends on equity securities1,271 1,085 3,692 3,208 
Real estate investment income851 — 3,565 — 
Gross investment income28,046 14,450 74,970 35,379 
Investment expenses(960)(592)(3,017)(1,839)
Net investment income$27,086 $13,858 $71,953 $33,540 

Investment expenses included depreciation expense related to real estate investments of $0.5 million for the nine months ended September 30, 2023. There was no depreciation of real estate investments for the three months ended September 30, 2023 as the related depreciable real estate investments were reclassified to held for sale prior to being
sold during the period. There was no depreciation of real estate investments for the three and nine months ended September 30, 2022.
Realized Gain (Loss) on Investments
The following table presents realized investment gains and losses for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Fixed-maturity securities:
Realized gains$74 $— $1,811 $1,076 
Realized losses(51)(177)(2,268)(720)
Net realized (losses) gains from fixed-maturity securities23 (177)(457)356 
Equity securities:
Realized gains— — 1,626 1,363 
Realized losses— — (4,487)(148)
Net realized (losses) gains from equity securities— — (2,861)1,215 
Realized (losses) gains from the sales of short-term investments1 4 (19)(36)
Realized gain on sale of real estate investments4,250 — 4,250 — 
Net realized investment gains (losses)$4,274 $(173)$913 $1,535 
The net realized gains or losses on sales of equity securities represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) in the consolidated statement of income consists of two components: (1) the reversal of the gain or loss recognized in previous periods on equity securities sold and (2) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.
v3.23.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Assets Measured at Fair Value on a Recurring Basis
The following tables present the balances of assets measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy:
September 30, 2023
Level 1Level 2Level 3Total
(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies$36,537 $4,968 $— $41,505 
Obligations of states, municipalities and political subdivisions
— 159,946 — 159,946 
Corporate and other securities— 1,211,229 — 1,211,229 
Asset-backed securities— 593,694 — 593,694 
Residential mortgage-backed securities— 295,548 — 295,548 
Commercial mortgage-backed securities— 62,837 — 62,837 
Total fixed-maturity securities36,537 2,328,222 — 2,364,759 
Equity securities:
Exchange traded funds106,565 — — 106,565 
Non-redeemable preferred stock— 31,755 — 31,755 
Common stocks69,631 — — 69,631 
Total equity securities176,196 31,755 — 207,951 
Short-term investments4,725 24,340 — 29,065 
Total$217,458 $2,384,317 $— $2,601,775 
December 31, 2022
Level 1Level 2Level 3Total
(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies
$16,741 $— $— $16,741 
Obligations of states, municipalities and political subdivisions
— 204,632 — 204,632 
Corporate and other securities— 832,892 — 832,892 
Asset-backed securities— 353,006 — 353,006 
Residential mortgage-backed securities— 293,962 — 293,962 
Commercial mortgage-backed securities— 58,867 — 58,867 
Total fixed-maturity securities16,741 1,743,359 — 1,760,100 
Equity securities:
Exchange traded funds104,202 — — 104,202 
Non-redeemable preferred stock— 38,162 — 38,162 
Common stocks10,107 — — 10,107 
Total equity securities114,309 38,162 — 152,471 
Short-term investments31,366 9,971 — 41,337 
Total$162,416 $1,791,492 $— $1,953,908 
v3.23.3
Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2023
Credit Loss [Abstract]  
Premium Receivable, Allowance for Credit Loss The following table presents the change in the allowance for credit losses for premiums receivable for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Beginning balance$12,167 $5,612 $8,067 $3,391 
Current period change for estimated uncollectible premiums2,341 1,874 7,459 4,818 
Write-offs of uncollectible premiums receivable(129)(195)(1,147)(918)
Ending balance$14,379 $7,291 $14,379 $7,291 
v3.23.3
Deferred Policy Acquisition Costs (Tables)
 9 Months Ended
Sep. 30, 2023
Deferred Policy Acquisition Costs Disclosures [Abstract]  
Deferred Policy Acquisition Costs
The following table presents the amounts of policy acquisition costs deferred and amortized for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Balance, beginning of period$85,326 $54,806 $61,594 $41,968 
Policy acquisition costs deferred:
Direct commissions54,580 41,525 169,223 117,621 
Ceding commissions(24,230)(13,886)(62,779)(32,678)
Other underwriting and policy acquisition costs1,623 2,302 7,511 6,534 
Policy acquisition costs deferred31,973 29,941 113,955 91,477 
Amortization of net policy acquisition costs
(31,118)(26,302)(89,368)(75,000)
Balance, end of period$86,181 $58,445 $86,181 $58,445 
v3.23.3
Property and Equipment (Tables)
 9 Months Ended
Sep. 30, 2023
Property and Equipment [Abstract]  
Property and Equipment
Property and equipment are included in "other assets" in the accompanying consolidated balance sheets and consist of the following:
September 30, 2023December 31, 2022
(in thousands)
Building$37,107 $33,065 
Parking deck5,072 5,072 
Land3,068 3,068 
Equipment3,859 3,444 
Software14,402 11,410 
Furniture and fixtures3,049 2,615 
Land improvements474 474 
Leasehold improvements153 — 
Construction in progress - building5,700 2,618 
72,884 61,766 
Accumulated depreciation(10,620)(8,291)
Total property and equipment, net$62,264 $53,475 
v3.23.3
Underwriting, Acquisition and Insurance Expenses (Tables)
 9 Months Ended
Sep. 30, 2023
Underwriting, Acquisition and Insurance Expenses [Abstract]  
Underwriting, acquisition and insurance expenses
Underwriting, acquisition and insurance expenses for the three and nine months ended September 30, 2023 and 2022 consist of the following:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Underwriting, acquisition and insurance expenses incurred:
Direct commissions$53,035 $37,177 $143,181 $99,540 
Ceding commissions(23,396)(12,939)(59,882)(30,069)
Other underwriting expenses30,709 21,006 85,268 62,554 
Total$60,348 $45,244 $168,567 $132,025 
v3.23.3
Stock-based Compensation (Tables)
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Restricted Stock Activity
A summary of restricted stock activity under the 2016 Incentive Plan for the nine months ended September 30, 2023 is as follows:
For the Nine Months Ended
September 30, 2023
Number of SharesWeighted Average Grant Date Fair Value per Share
Non-vested outstanding at the beginning of the period98,621 $182.37 
Granted51,176 $313.35 
Vested(40,582)$163.62 
Forfeited(725)$225.64 
Non-vested outstanding at the end of the period108,490 $250.88 
Stock Options Activity
A summary of option activity as of September 30, 2023, and changes during the period then ended is presented below:
Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Years of Contractual TermAggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2023256,357 $16.00 
Granted— — 
Forfeited— — 
Exercised(45,392)16.00 
Outstanding at September 30, 2023
210,965 $16.00 2.8$83,991 
Exercisable at September 30, 2023
210,965 $16.00 2.8$83,991 
v3.23.3
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings Per Share
The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations contained in the condensed consolidated financial statements:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands, except per share data)
Net income$76,115 $32,984 $204,706 $91,865 
Weighted average common shares outstanding - basic23,058 22,813 23,036 22,783 
Effect of potential dilutive securities:
Conversion of stock options208 262 220 276 
Conversion of restricted stock49 39 42 40 
Weighted average common shares outstanding - diluted23,315 23,114 23,298 23,099 
Earnings per common share:
Basic$3.30 $1.45 $8.89 $4.03 
Diluted$3.26 $1.43 $8.79 $3.98 
v3.23.3
Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)
 9 Months Ended
Sep. 30, 2023
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]  
Schedule of Unpaid Losses and Loss Adjustment Expenses
The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses:
September 30,
20232022
(in thousands)
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year
$1,238,402 $881,344 
Less: reinsurance recoverable on unpaid losses
177,039 117,561 
Net reserves for unpaid losses and loss adjustment expenses, beginning of year
1,061,363 763,783 
Incurred losses and loss adjustment expenses:
Current year470,235 373,183 
Prior years(28,607)(28,850)
Total net losses and loss adjustment expenses incurred441,628 344,333 
Payments:
Current year22,156 13,028 
Prior years136,380 84,827 
Total payments158,536 97,855 
Net reserves for unpaid losses and loss adjustment expenses, end of period
1,344,455 1,010,261 
Reinsurance recoverable on unpaid losses220,452 187,056 
Gross reserves for unpaid losses and loss adjustment expenses, end of period
$1,564,907 $1,197,317 
v3.23.3
Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2023
Reinsurance Disclosures [Abstract]  
Effects of Reinsurance
The following table summarizes the effect of reinsurance on premiums written and earned for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Premiums written:
Direct$377,789 $284,111 $1,173,599 $806,625 
Ceded(83,509)(48,212)(215,248)(111,885)
Net written$294,280 $235,899 $958,351 $694,740 
Premiums earned:
Direct$362,689 $254,855 $982,922 $682,619 
Ceded(81,187)(45,596)(207,216)(104,640)
Net earned$281,502 $209,259 $775,706 $577,979 
Effects of Reinsurance on Losses
The following table summarizes ceded losses and loss adjustment expenses for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Ceded incurred losses and loss adjustment expenses$27,381 $56,774 $89,371 $79,790 
Reinsurance Recoverables
The following table presents reinsurance recoverables on paid and unpaid losses as of September 30, 2023 and December 31, 2022:
September 30, 2023December 31, 2022
(in thousands)
Reinsurance recoverables on paid losses$20,400 $43,415 
Reinsurance recoverables on unpaid losses, net220,452 177,039 
Reinsurance recoverables, net$240,852 $220,454 
v3.23.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Debt
The following table presents the Company's outstanding debt as of September 30, 2023 and December 31, 2022:

IssuanceMaturitiesSeptember 30, 2023December 31, 2022
(in thousands)
Credit FacilityVarious7/22/2027$11,000 $73,000 
5.15% Series A Notes
7/22/20227/22/2034125,000 125,000 
6.21% Series B Note
9/18/20237/22/203450,000 — 
Less: Unamortized debt issuance costs(2,223)(2,253)
Total debt$183,777 $195,747 
v3.23.3
Other Comprehensive (Loss) Income (Tables)
 9 Months Ended
Sep. 30, 2023
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Comprehensive Income (Loss)
The following table summarizes the components of other comprehensive loss for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)
Unrealized losses on fixed-maturity securities arising during the period, before income taxes$(29,931)$(59,230)$(26,997)$(209,198)
Income tax benefit6,286 12,439 5,670 43,932 
Unrealized losses arising during the period, net of income taxes(23,645)(46,791)(21,327)(165,266)
Less reclassification adjustment:
Net realized (losses) gains on fixed-maturity securities, before income taxes(27)(177)(1,343)250 
Income tax benefit (expense)6 38 282 (52)
Reclassification adjustment included in net income(21)(139)(1,061)198 
Change in allowance for credit losses on investments, before income taxes(143)— (199)— 
Income tax benefit 30 — 42 — 
Reclassification adjustment included in net income(113)— (157)— 
Other comprehensive loss$(23,511)$(46,652)$(20,109)$(165,464)
v3.23.3
Investments Investments (Available for Sale) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Jun. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]            
Total fixed maturities, Amortized Cost $ 2,563,914   $ 1,933,632      
Gross Unrealized Holding Gains 803   1,404      
Gross Unrealized Holding Losses 199,393   174,570      
Allowance for Credit Losses (565) $ (422) (366) $ 0 $ 0 $ 0
Estimated Fair Value 2,364,759   1,760,100      
U.S. Treasury securities and obligations of U.S. government agencies            
Debt Securities, Available-for-sale [Line Items]            
Total fixed maturities, Amortized Cost 42,705   17,934      
Gross Unrealized Holding Gains 0   0      
Gross Unrealized Holding Losses 1,200   1,193      
Allowance for Credit Losses 0   0      
Estimated Fair Value 41,505   16,741      
Obligations of states, municipalities and political subdivisions            
Debt Securities, Available-for-sale [Line Items]            
Total fixed maturities, Amortized Cost 190,263   230,746      
Gross Unrealized Holding Gains 22   330      
Gross Unrealized Holding Losses 30,339   26,444      
Allowance for Credit Losses 0   0      
Estimated Fair Value 159,946   204,632      
Corporate and other securities            
Debt Securities, Available-for-sale [Line Items]            
Total fixed maturities, Amortized Cost 1,299,277   909,285      
Gross Unrealized Holding Gains 34   730      
Gross Unrealized Holding Losses 87,518   76,757      
Allowance for Credit Losses (564)   (366)      
Estimated Fair Value 1,211,229   832,892      
Asset-backed securities            
Debt Securities, Available-for-sale [Line Items]            
Total fixed maturities, Amortized Cost 599,813   361,248      
Gross Unrealized Holding Gains 703   292      
Gross Unrealized Holding Losses 6,822   8,534      
Allowance for Credit Losses 0   0      
Estimated Fair Value 593,694   353,006      
Residential mortgage-backed securities            
Debt Securities, Available-for-sale [Line Items]            
Total fixed maturities, Amortized Cost 361,833   349,066      
Gross Unrealized Holding Gains 44   52      
Gross Unrealized Holding Losses 66,329   55,156      
Allowance for Credit Losses 0   0      
Estimated Fair Value 295,548   293,962      
Commercial mortgage-backed securities            
Debt Securities, Available-for-sale [Line Items]            
Total fixed maturities, Amortized Cost 70,023   65,353      
Gross Unrealized Holding Gains 0   0      
Gross Unrealized Holding Losses 7,185   6,486      
Allowance for Credit Losses (1)   0      
Estimated Fair Value $ 62,837   $ 58,867      
v3.23.3
Investments Available-for-Sale Securities in a Loss Position (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2023
USD ($)
security
Sep. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
Debt Securities, Available-for-sale [Line Items]          
Less than 12 Months, Estimated Fair Value $ 948,179   $ 948,179   $ 1,101,679
Less than 12 months, gross unrealized holding losses 15,398   15,398   85,954
12 Months or Longer, Estimated Fair Value 1,334,380   1,334,380   480,343
12 Months or Longer, Gross Unrealized Holding Losses 183,995   183,995   88,616
Total Estimated Fair Value 2,282,559   2,282,559   1,582,022
Total Gross Unrealized Holding Losses 199,393   199,393   174,570
Beginning balance 422 $ 0 366 $ 0  
Increase to allowance from securities for which credit losses were not previously recorded 1 0 1 0  
Reduction from securities sold during the period 0 0 (12) 0  
Net increase (decrease) from securities that had an allowance at the beginning of the period 142 0 210 0  
Ending balance 565 $ 0 $ 565 $ 0  
Debt Securities Available For Sale Allowance For Credit Loss Number Of Securities | security     6    
U.S. Treasury securities and obligations of U.S. government agencies          
Debt Securities, Available-for-sale [Line Items]          
Less than 12 Months, Estimated Fair Value 26,341   $ 26,341   10,538
Less than 12 months, gross unrealized holding losses 84   84   447
12 Months or Longer, Estimated Fair Value 15,164   15,164   6,204
12 Months or Longer, Gross Unrealized Holding Losses 1,116   1,116   746
Total Estimated Fair Value 41,505   41,505   16,742
Total Gross Unrealized Holding Losses 1,200   1,200   1,193
Beginning balance     0    
Ending balance 0   0    
Obligations of states, municipalities and political subdivisions [Member]          
Debt Securities, Available-for-sale [Line Items]          
Less than 12 Months, Estimated Fair Value 42,151   42,151   141,460
Less than 12 months, gross unrealized holding losses 1,046   1,046   20,347
12 Months or Longer, Estimated Fair Value 116,398   116,398   17,314
12 Months or Longer, Gross Unrealized Holding Losses 29,293   29,293   6,097
Total Estimated Fair Value 158,549   158,549   158,774
Total Gross Unrealized Holding Losses 30,339   30,339   26,444
Beginning balance     0    
Ending balance 0   0    
Corporate and other securities [Member]          
Debt Securities, Available-for-sale [Line Items]          
Less than 12 Months, Estimated Fair Value 564,003   564,003   583,619
Less than 12 months, gross unrealized holding losses 9,918   9,918   42,675
12 Months or Longer, Estimated Fair Value 643,417   643,417   156,148
12 Months or Longer, Gross Unrealized Holding Losses 77,600   77,600   34,082
Total Estimated Fair Value 1,207,420   1,207,420   739,767
Total Gross Unrealized Holding Losses 87,518   87,518   76,757
Beginning balance     366    
Ending balance 564   564    
Asset-backed securities [Member]          
Debt Securities, Available-for-sale [Line Items]          
Less than 12 Months, Estimated Fair Value 273,264   273,264   216,487
Less than 12 months, gross unrealized holding losses 3,895   3,895   5,429
12 Months or Longer, Estimated Fair Value 245,476   245,476   97,703
12 Months or Longer, Gross Unrealized Holding Losses 2,927   2,927   3,105
Total Estimated Fair Value 518,740   518,740   314,190
Total Gross Unrealized Holding Losses 6,822   6,822   8,534
Beginning balance     0    
Ending balance 0   0    
Residential mortgage-backed securities [Member]          
Debt Securities, Available-for-sale [Line Items]          
Less than 12 Months, Estimated Fair Value 36,467   36,467   98,909
Less than 12 months, gross unrealized holding losses 326   326   12,324
12 Months or Longer, Estimated Fair Value 257,041   257,041   194,773
12 Months or Longer, Gross Unrealized Holding Losses 66,003   66,003   42,832
Total Estimated Fair Value 293,508   293,508   293,682
Total Gross Unrealized Holding Losses 66,329   66,329   55,156
Beginning balance     0    
Ending balance 0   0    
Commercial mortgage-backed securities          
Debt Securities, Available-for-sale [Line Items]          
Less than 12 Months, Estimated Fair Value 5,953   5,953   50,666
Less than 12 months, gross unrealized holding losses 129   129   4,732
12 Months or Longer, Estimated Fair Value 56,884   56,884   8,201
12 Months or Longer, Gross Unrealized Holding Losses 7,056   7,056   1,754
Total Estimated Fair Value 62,837   62,837   58,867
Total Gross Unrealized Holding Losses 7,185   7,185   $ 6,486
Beginning balance     0    
Ending balance $ 1   $ 1    
v3.23.3
Investments Available-for-Sale Securities in a Loss Position Narrative (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Rate
Dec. 31, 2022
USD ($)
Debt Securities, Available-for-sale [Line Items]    
Number of available-for-sale securities in unrealized loss positions 1,233  
Total Estimated Fair Value $ 2,282,559 $ 1,582,022
Gross Unrealized Losses $ 199,393 $ 174,570
Number of available-for-sale securities in unrealized loss positions, greater than one year 782  
Fixed maturities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, percentage of securities with ratings of A minus or better | Rate 82.00%  
v3.23.3
Investments Contractual Maturities of Available-for-Sale Fixed Maturity Securities (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Amortized Cost    
Due in one year or less, Amortized Cost $ 184,335  
Due after one year through five years, Amortized Cost 923,152  
Due after five years through ten years, Amortized Cost 194,507  
Due after ten years, Amortized Cost 230,251  
Total fixed maturities, Amortized Cost 2,563,914 $ 1,933,632
Estimated Fair Value    
Due in one year or less, Estimated Fair Value 181,981  
Due after one year through five years, Estimated Fair Value 889,587  
Due after five years through ten years, Estimated Fair Value 167,015  
Due after ten years, Estimated Fair Value 174,097  
Estimated Fair Value 2,364,759 1,760,100
Asset-backed securities [Member]    
Amortized Cost    
Without single maturity date, Amortized Cost 599,813  
Total fixed maturities, Amortized Cost 599,813 361,248
Estimated Fair Value    
Without single maturity date, Estimated Fair Value 593,694  
Estimated Fair Value 593,694 353,006
Residential mortgage-backed securities [Member]    
Amortized Cost    
Without single maturity date, Amortized Cost 361,833  
Total fixed maturities, Amortized Cost 361,833 349,066
Estimated Fair Value    
Without single maturity date, Estimated Fair Value 295,548  
Estimated Fair Value 295,548 293,962
Commercial mortgage-backed securities    
Amortized Cost    
Without single maturity date, Amortized Cost 70,023  
Total fixed maturities, Amortized Cost 70,023 65,353
Estimated Fair Value    
Without single maturity date, Estimated Fair Value 62,837  
Estimated Fair Value $ 62,837 $ 58,867
v3.23.3
Investments Net Investment Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Components of Net Investment Income [Abstract]        
Taxable bonds $ 24,644 $ 12,041 $ 63,672 $ 29,015
Tax exempt municipal bonds 522 849 1,704 2,558
Cash equivalents and short-term investments 758 475 2,337 598
Dividends on equity securities 1,271 1,085 3,692 3,208
Real estate investment income 851 0 3,565 0
Gross investment income 28,046 14,450 74,970 35,379
Investment expenses (960) (592) (3,017) (1,839)
Net investment income $ 27,086 $ 13,858 $ 71,953 $ 33,540
v3.23.3
Investments Realized Gains (Losses) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Debt and Equity Securities, Realized Gain (Loss) [Abstract]        
Realized gains, fixed-maturity securities $ 74 $ 0 $ 1,811 $ 1,076
Realized losses, fixed-maturity securities (51) (177) (2,268) (720)
Net realized (losses) gains from fixed-maturity securities 23 (177) (457) 356
Realized gains, equity securities 0 0 1,626 1,363
Realized losses, equity securities 0 0 (4,487) (148)
Net realized (losses) gains from equity securities 0 0 (2,861) 1,215
Realized (losses) gains from the sales of short-term investments 1 4 (19) (36)
Gains (Losses) on Sales of Investment Real Estate 4,250 0 4,250 0
Net realized investment gains (losses) $ 4,274 $ (173) $ 913 $ 1,535
v3.23.3
Investments Unrealized Gains (Losses) on Investments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]        
Change in net unrealized gains (losses) on fixed-maturity securities $ (29.8) $ (59.1) $ (25.4) $ (209.4)
v3.23.3
Investments Investment Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Assets on deposit with state regulatory authorities $ 5.7 $ 5.9
Payable for investments purchased $ 1.0 $ 1.8
v3.23.3
Investments (Details), Real Estate - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Real Estate Properties [Line Items]          
Investment Building and Building Improvements $ 0   $ 0   $ 44,931
Land 14,372   14,372   17,946
Finite-Lived Intangible Asset, Acquired-in-Place Leases 0   0   9,749
Land Improvements 0   0   2,686
Investment in Real Estate - Parking Deck 0   0   1,311
Real Estate Investment Property, at Cost 14,372   14,372   76,623
Real Estate Investment Property, Accumulated Depreciation 0   0   (236)
Real Estate Investments, Net 14,372   14,372   $ 76,387
Proceeds from Sale, Real Estate, Held-for-Investment     62,000    
Gains (Losses) on Sales of Investment Real Estate 4,250 $ 0 4,250 $ 0  
Real Estate Investment          
Real Estate Properties [Line Items]          
Depreciation, Depletion and Amortization $ 0 $ 0 $ 500 $ 0  
v3.23.3
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value $ 2,364,759 $ 1,760,100
U.S. Treasury securities and obligations of U.S. government agencies    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 41,505 16,741
Obligations of states, municipalities and political subdivisions [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 159,946 204,632
Corporate and other securities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 1,211,229 832,892
Asset-backed securities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 593,694 353,006
Residential mortgage-backed securities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 295,548 293,962
Commercial mortgage-backed securities    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 62,837 58,867
Recurring    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 2,601,775 1,953,908
Recurring | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 217,458 162,416
Recurring | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 2,384,317 1,791,492
Recurring | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Fixed maturities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 2,364,759 1,760,100
Recurring | Fixed maturities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 36,537 16,741
Recurring | Fixed maturities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 2,328,222 1,743,359
Recurring | Fixed maturities [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | U.S. Treasury securities and obligations of U.S. government agencies    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 41,505 16,741
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 36,537 16,741
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 4,968 0
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Obligations of states, municipalities and political subdivisions [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 159,946 204,632
Recurring | Obligations of states, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Obligations of states, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 159,946 204,632
Recurring | Obligations of states, municipalities and political subdivisions [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Corporate and other securities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 1,211,229 832,892
Recurring | Corporate and other securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Corporate and other securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 1,211,229 832,892
Recurring | Corporate and other securities [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Asset-backed securities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 593,694 353,006
Recurring | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 593,694 353,006
Recurring | Asset-backed securities [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Residential mortgage-backed securities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 295,548 293,962
Recurring | Residential mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Residential mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 295,548 293,962
Recurring | Residential mortgage-backed securities [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Commercial mortgage-backed securities    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 62,837 58,867
Recurring | Commercial mortgage-backed securities | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Commercial mortgage-backed securities | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 62,837 58,867
Recurring | Commercial mortgage-backed securities | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Estimated Fair Value 0 0
Recurring | Equity securities [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 207,951 152,471
Recurring | Equity securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 176,196 114,309
Recurring | Equity securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 31,755 38,162
Recurring | Equity securities [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Exchange traded funds [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 106,565 104,202
Recurring | Exchange traded funds [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 106,565 104,202
Recurring | Exchange traded funds [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Exchange traded funds [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Nonredeemable preferred stock [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 31,755 38,162
Recurring | Nonredeemable preferred stock [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Nonredeemable preferred stock [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 31,755 38,162
Recurring | Nonredeemable preferred stock [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Common Stock [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 69,631 10,107
Recurring | Common Stock [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 69,631 10,107
Recurring | Common Stock [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Common Stock [Member] | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 0 0
Recurring | Short-term Investments    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 29,065 41,337
Recurring | Short-term Investments | Fair Value, Inputs, Level 1 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 4,725 31,366
Recurring | Short-term Investments | Fair Value, Inputs, Level 2 [Member]    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value 24,340 9,971
Recurring | Short-term Investments | Level 3    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Fair value $ 0 $ 0
v3.23.3
Fair Value Measures and Disclosures Narrative (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and Cash Equivalents, Fair Value Disclosure $ 5,400 $ 58,000
Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets measured at fair value 0 0
Liabilities measured at fair value 0 0
Reported Value Measurement | Senior Notes    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Long-Term Debt, Fair Value 175,000 125,000
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 [Member] | Senior Notes    
Fair Value of Investments Measured on Recurring Basis [Line Items]    
Long-Term Debt, Fair Value $ 159,500 $ 117,200
v3.23.3
Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Credit Loss [Abstract]        
Beginning Balance $ 12,167 $ 5,612 $ 8,067 $ 3,391
Current period change for estimated uncollectible premiums 2,341 1,874 7,459 4,818
Write-offs of uncollectible premiums receivable (129) (195) (1,147) (918)
Ending Balance $ 14,379 $ 7,291 $ 14,379 $ 7,291
v3.23.3
Deferred Policy Acquisition Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]        
Balance, beginning of period $ 85,326 $ 54,806 $ 61,594 $ 41,968
Policy acquisition costs deferred:        
Direct commissions deferred 54,580 41,525 169,223 117,621
Ceding commissions deferred (24,230) (13,886) (62,779) (32,678)
Other underwriting and policy acquisition costs 1,623 2,302 7,511 6,534
Policy acquisition costs deferred 31,973 29,941 113,955 91,477
Amortization of net policy acquisition costs (31,118) (26,302) (89,368) (75,000)
Balance, end of period $ 86,181 $ 58,445 $ 86,181 $ 58,445
v3.23.3
Property and Equipment (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 72,884 $ 61,766
Accumulated Depreciation (10,620) (8,291)
Property, Plant and Equipment, Net 62,264 53,475
Building    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 37,107 33,065
Parking    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 5,072 5,072
Land    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 3,068 3,068
Equipment    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 3,859 3,444
Software Development    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 14,402 11,410
Furniture and Fixtures    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 3,049 2,615
Land Improvements    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 474 474
Leasehold Improvements    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 153 0
Construction in Progress    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 5,700 $ 2,618
v3.23.3
Underwriting, Acquisition and Insurance Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Underwriting, Acquisition and Insurance Expenses [Abstract]        
Gross commissions $ 53,035 $ 37,177 $ 143,181 $ 99,540
Ceding commissions (23,396) (12,939) (59,882) (30,069)
Other operating expenses 30,709 21,006 85,268 62,554
Underwriting, acquisition, and insurance expenses 60,348 45,244 168,567 132,025
Salaries, bonuses and employee benefits $ 23,100 $ 15,400 $ 63,000 $ 46,100
v3.23.3
Stock-based Compensation Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense $ 6.9 $ 5.0
Maximum [Member] | 2016 Omnibus Incentive Plan [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares available for issuance 2,073,832  
v3.23.3
Stock-based Compensation Narrative - Restricted Stock Awards (Details) - Restricted stock [Member] - USD ($)
$ / shares in Units, $ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Weighted average grant date fair value $ 313.35 $ 211.86
Fair value of restricted stock awards vested $ 12.6 $ 9.9
Unrecognized stock-based compensation expense $ 21.7  
Compensation cost not yet recognized, period 2 years 9 months 18 days  
Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 1 year  
Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 4 years  
v3.23.3
Stock-based Compensation Restrictive Stock Awards (Details) - $ / shares
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Nonvested Restricted Stock, Weighted Average Grant Date Fair Value [Abstract]        
Restricted shares withheld for taxes (shares) 6,816 12,420    
Restricted stock [Member]        
Nonvested Restricted Stock, Number of Shares [Roll Forward]        
Nonvested outstanding at the beginning of the period, shares     98,621  
Granted, shares     51,176  
Vested, shares     (40,582)  
Forfeited, shares     (725)  
Nonvested outstanding at the end of the period, shares     108,490  
Nonvested Restricted Stock, Weighted Average Grant Date Fair Value [Abstract]        
Nonvested outstanding at the beginning of the period     $ 182.37  
Granted     313.35 $ 211.86
Vested     163.62  
Forfeited     225.64  
Nonvested outstanding at the end of the period     $ 250.88  
Restricted shares withheld for taxes (shares)     13,444  
v3.23.3
Stock-based Compensation Narrative - Stock Options (Details) - USD ($)
$ / shares in Units, $ in Millions
 9 Months Ended
Jul. 27, 2016
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Intrinsic value of options exercised   $ 14.6 $ 12.2
Weighted average exercise price, granted   $ 0  
Stock option [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average exercise price, granted $ 16.00    
Weighted average grant date fair value $ 2.71    
Contractual term 10 years    
Vesting period 4 years    
v3.23.3
Stock-based Compensation Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended
Jul. 27, 2016
Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]    
Outstanding beginning of period, shares   256,357
Granted, shares   0
Forfeited, shares   0
Exercised, shares   (45,392)
Outstanding end of period, shares   210,965
Exercisable, shares   210,965
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]    
Outstanding beginning of period   $ 16.00
Granted   0
Forfeited   0
Exercised   16.00
Outstanding end of period   16.00
Exercisable end of period   $ 16.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]    
Outstanding, weighted average remaining contractual term   2 years 9 months 18 days
Exercisable, weighted average remaining contractual term   2 years 9 months 18 days
Outstanding, aggregate intrinsic value   $ 83,991
Exercisable, aggregate intrinsic value   $ 83,991
Stock option [Member]    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]    
Granted, shares 1,036,916  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]    
Granted $ 16.00  
v3.23.3
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Earnings Per Share, [Line Items]                
Net income $ 76,115 $ 72,791 $ 55,800 $ 32,984 $ 27,090 $ 31,791 $ 204,706 $ 91,865
Weighted Average Number of Shares Outstanding, Basic [Abstract]                
Weighted average shares outstanding - basic 23,058     22,813     23,036 22,783
Weighted Average Number of Shares Outstanding, Diluted [Abstract]                
Weighted average shares outstanding - diluted 23,315     23,114     23,298 23,099
Earnings Per Share, Basic [Abstract]                
Earnings per share - basic $ 3.30     $ 1.45     $ 8.89 $ 4.03
Earnings Per Share, Diluted [Abstract]                
Earnings per share - diluted $ 3.26     $ 1.43     $ 8.79 $ 3.98
Stock option [Member]                
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]                
Dilutive effect of shares issued under stock compensation arrangements 208     262     220 276
Restricted stock [Member]                
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]                
Dilutive effect of shares issued under stock compensation arrangements 49     39     42 40
v3.23.3
Earnings Per Share Narrative (Details) - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Restricted stock [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities 0 0 47,000 48,000
v3.23.3
Income Taxes (Details)
 9 Months Ended
Sep. 30, 2023
Rate
Sep. 30, 2022
Rate
Income Tax Disclosure [Abstract]    
Effective tax rate 19.40% 17.50%
Federal statutory income tax rate 21.00% 21.00%
v3.23.3
Reserves for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]        
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year $ 1,238,402 $ 881,344    
Reinsurance recoverable on unpaid losses 220,452 187,056 $ 177,039 $ 117,561
Net reserves for unpaid losses and loss adjustment expenses, beginning of year 1,061,363 763,783    
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]        
Current year 470,235 373,183    
Prior years (28,607) (28,850)    
Total net losses and loss adjustment expenses incurred 441,628 344,333    
Payments:        
Current year 22,156 13,028    
Prior years 136,380 84,827    
Total payments 158,536 97,855    
Net reserves for unpaid losses and loss adjustment expenses, end of period 1,344,455 1,010,261    
Reinsurance recoverable on unpaid losses 220,452 187,056 $ 177,039 $ 117,561
Gross reserves for unpaid losses and loss adjustment expenses, end of period $ 1,564,907 $ 1,197,317    
v3.23.3
Reserves for Unpaid Losses and Loss Adjustment Expenses Narrative (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Claims Development [Line Items]    
Adverse (Favorable) development on prior year loss reserves $ (28,607) $ (28,850)
Current year 470,235 373,183
Catastrophe losses [Member]    
Claims Development [Line Items]    
Current year   26,200
Accident Years 2021 and 2020    
Claims Development [Line Items]    
Adverse (Favorable) development on prior year loss reserves   $ (32,000)
Accident Years 2021 and 2022    
Claims Development [Line Items]    
Adverse (Favorable) development on prior year loss reserves $ (39,000)  
v3.23.3
Reinsurance (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Premiums Written, Net [Abstract]            
Premiums written - direct $ 377,789 $ 284,111 $ 1,173,599 $ 806,625    
Premiums written - ceded (83,509) (48,212) (215,248) (111,885)    
Net written premiums 294,280 235,899 958,351 694,740    
Premiums Earned, Net [Abstract]            
Premiums earned - direct 362,689 254,855 982,922 682,619    
Premiums earned - ceded (81,187) (45,596) (207,216) (104,640)    
Net earned premiums 281,502 209,259 775,706 577,979    
Ceded incurred losses and loss adjustment expenses 27,381 56,774 89,371 79,790    
Reinsurance recoverables on paid losses 20,400   20,400   $ 43,415  
Reinsurance recoverable on unpaid losses 220,452 $ 187,056 220,452 $ 187,056 177,039 $ 117,561
Reinsurance recoverables, net $ 240,852   $ 240,852   $ 220,454  
v3.23.3
Debt (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Debt Instrument [Line Items]      
Debt Issuance Costs, Net $ (2,223)   $ (2,253)
Lines of Credit, Maximum Borrowing Capacity under former agreement 50,000    
Debt 183,777   195,747
Repayments of Long-Term Lines of Credit 62,000 $ 43,000  
Amended debt instrument borrowing capacity 200,000    
Senior Notes      
Debt Instrument [Line Items]      
Debt instrument borrowing capacity $ 150,000    
Line of Credit      
Debt Instrument [Line Items]      
Maturity Date Jul. 22, 2027    
Current Borrowing Capacity $ 100,000    
Credit Facility Accordion Feature $ 30,000    
Line of Credit Facility, Commitment Fee Percentage 0.25%    
Interest Rate Description The loans under the Amended and Restated Credit Agreement bear interest, at the Company's option, at a rate equal to the Adjusted Term SOFR Rate (as defined therein) plus 1.625% or the Alternate Base Rate (as defined therein) plus 0.625%.    
Credit facility $ 11,000   73,000
Weighted Average Interest Rate 6.75%    
2034 Series A Notes | Senior Notes      
Debt Instrument [Line Items]      
Debt Instrument, Issuance Date Jul. 22, 2022    
Debt Instrument, Face Amount $ 125,000   125,000
Debt Instrument, Interest Rate, Stated Percentage 5.15%    
Debt Instrument, Maturity Date Jul. 22, 2034    
Debt Instrument, Date of First Required Payment Jul. 22, 2030    
Debt Instrument, Periodic Payment, Principal $ 25,000    
2034 Series B Notes | Senior Notes      
Debt Instrument [Line Items]      
Debt Instrument, Issuance Date Sep. 18, 2023    
Debt Instrument, Face Amount $ 50,000   $ 0
Debt Instrument, Interest Rate, Stated Percentage 6.21%    
Debt Instrument, Maturity Date Jul. 22, 2034    
Debt Instrument, Date of First Required Payment Jul. 22, 2030    
Debt Instrument, Periodic Payment, Principal $ 10,000    
v3.23.3
Other Comprehensive (Loss) Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Other Comprehensive Income (Loss), Net of Tax [Abstract]                
Unrealized losses on fixed-maturity securities arising during the period, before income taxes $ (29,931)     $ (59,230)     $ (26,997) $ (209,198)
Income tax benefit 6,286     12,439     5,670 43,932
Unrealized losses arising during the period, net of income taxes (23,645)     (46,791)     (21,327) (165,266)
Less reclassification adjustment [Abstract]                
Net realized (losses) gains on fixed-maturity securities, before income taxes (27)     (177)     (1,343) 250
Income tax benefit (expense) 6     38     282 (52)
Reclassification adjustment included in net income (21)     (139)     (1,061) 198
Change in allowance for credit losses on investments, before income taxes (143)     0     (199) 0
Income tax benefit 30     0     42 0
Reclassification adjustment included in net income (113)     0     (157) 0
Other comprehensive loss $ (23,511) $ (14,107) $ 17,509 $ (46,652) $ (54,882) $ (63,930) $ (20,109) $ (165,464)
v3.23.3
Accounting Changes and Error Corrections (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Accounting Changes and Error Corrections [Abstract]        
Fee income $ 6.8 $ 5.1 $ 20.0 $ 14.4
v3.23.3
Label Element Value
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents $ 121,040,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents $ 156,274,000
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