Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

Schedule II

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Condensed Financial Information of Registrant

Balance Sheets

	December 31,
	2017		2016
	(in thousands)
Assets
Cash and cash equivalents	$	1,502	$	1,868
Due from subsidiaries	665		218
Investment in subsidiaries	235,091		207,905
Deferred tax assets	198		627
Income taxes recoverable	805		—
Other assets	164		141
Total assets	$	238,425	$	210,759
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued expenses	$	236	$	428
Income taxes payable	—		117
Total liabilities	236		545
Stockholders’ equity:
Common stock	210		210
Additional paid-in capital	155,082		153,353
Retained earnings	73,502		53,640
Accumulated other comprehensive income	9,395		3,011
Stockholders’ equity	238,189		210,214
Total liabilities and stockholders’ equity	$	238,425	$	210,759

See accompanying notes.

See accompanying Report of Independent Registered Public Accounting Firm.

Schedule II

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Condensed Financial Information of Registrant

Statements of Income and Comprehensive Income (Loss)

	Years Ended December 31,
	2017			2016			2015
	(in thousands)
Revenues:
Management fees from subsidiaries	$	2,037		$	1,815		$	636
Total revenues	2,037			1,815			636
Expenses:
Other operating expenses	2,526			2,395			640
Other expenses	652			492			66
Interest expense	—			1,339			1,230
Total expenses	3,178			4,226			1,936
Loss before income taxes	(1,141		)	(2,411		)	(1,300		)
Income tax benefit	(739		)	(844		)	(432		)
Loss before equity in net income of subsidiaries	(402		)	(1,567		)	(868		)
Equity in net income of subsidiaries	25,303			27,734			23,141
Net income	24,901			26,167			22,273
Other comprehensive income (loss):
Equity in other comprehensive earnings (losses) of subsidiaries	6,384			(640		)	(1,563		)
Total comprehensive income	$	31,285		$	25,527		$	20,710

See accompanying notes.

See accompanying Report of Independent Registered Public Accounting Firm.

Schedule II

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Condensed Financial Information of Registrant

Statements of Cash Flows

	Years Ended December 31,
	2017			2016			2015
	(in thousands)
Operating activities
Net income	$	24,901		$	26,167		$	22,273
Adjustments to reconcile net income to net cash used in operating activities:
Deferred tax expense (benefit)	429			(65		)	61
Stock compensation expense	652			492			65
Equity in undistributed earnings of subsidiaries	(25,303		)	(27,734		)	(23,141		)
Changes in operating assets and liabilities	(1,583		)	520			(286		)
Net cash used in operating activities	(904		)	(620		)	(1,028		)
Investing activities
Dividends paid from subsidiary	4,500			—			—
Contributions to subsidiary	—			(40,000		)	(2,000		)
Net cash provided by (used in) investing activities	4,500			(40,000		)	(2,000		)
Financing activities
Common stock issued, net of transaction costs	—			72,841			—
Common stock issued, stock options exercised	1,077			—			—
Class A common stock issued	—			—			90
Dividends paid	(5,039		)	(2,097		)	—
Proceeds from note payable	—			—			2,000
Repayment of note payable	—			(30,000		)	—
Debt issuance costs	—			—			(30		)
Net cash (used in) provided by financing activities	(3,962		)	40,744			2,060
Net change in cash and cash equivalents	(366		)	124			(968		)
Cash and cash equivalents at beginning of year	1,868			1,744			2,712
Cash and cash equivalents at end of year	$	1,502		$	1,868		$	1,744

See accompanying notes.

See accompanying Report of Independent Registered Public Accounting Firm.

KINSALE CAPITAL GROUP, INC.

Condensed Financial Information of Registrant

Notes to Condensed Financial Information

1. Accounting policies

Organization

Kinsale Capital Group, Inc., a Delaware domiciled insurance holding company, was formed on June 3, 2009 for the purpose of acquiring and managing insurance entities.

Basis of presentation

The accompanying condensed financial statements have been prepared using the equity method. Under the equity method, the investment in consolidated subsidiaries is stated at cost plus equity in undistributed earnings of consolidated subsidiaries since the date of acquisition. These condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. Certain prior year amounts have been reclassified to conform to the current year's presentation.

Estimates and assumptions

Preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates.

Dividends from subsidiaries 

On June 9, 2017, cash dividends of $4.5 million were paid to Kinsale Capital Group, Inc. by its wholly-owned subsidiary, Kinsale Insurance Company.