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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information 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,
 
 
2018
 
2017
 
 
(in thousands)
Assets
 
 
 
 
Cash and cash equivalents
 
$
10,016

 
$
1,502

Due from subsidiaries
 
1,001

 
665

Investment in subsidiaries
 
251,591

 
235,091

Deferred tax assets
 
369

 
198

Income taxes recoverable
 
787

 
805

Other assets
 
549

 
164

Total assets
 
$
264,313

 
$
238,425

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
Liabilities:
 
 
 
 
Accounts payable and accrued expenses
 
$
308

 
$
236

Other liabilities
 
19

 
—

Total liabilities
 
327

 
236

 
 
 
 
 
Stockholders’ equity:
 
 
 
 
Common stock
 
212

 
210

Additional paid-in capital
 
158,485

 
155,082

Retained earnings
 
106,545

 
73,502

Accumulated other comprehensive (loss) income
 
(1,256
)
 
9,395

Stockholders’ equity
 
263,986

 
238,189

Total liabilities and stockholders’ equity
 
$
264,313

 
$
238,425



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,
 
 
2018
 
2017
 
2016
 
 
(in thousands)
Revenues:
 
 
 
 
 
 
Management fees from subsidiaries
 
$
3,215

 
$
2,037

 
$
1,815

Total revenues
 
3,215

 
2,037

 
1,815

 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
Other operating expenses
 
2,457

 
2,526

 
2,395

Other expenses
 
1,598

 
652

 
492

Interest expense
 
—

 
—

 
1,339

Total expenses
 
4,055

 
3,178

 
4,226

 
 
 
 
 
 
 
Loss before income taxes
 
(840
)
 
(1,141
)
 
(2,411
)
Income tax benefit
 
(1,158
)
 
(739
)
 
(844
)
Income (loss) before equity in net income of subsidiaries
 
318

 
(402
)
 
(1,567
)
Equity in net income of subsidiaries
 
33,469

 
25,303

 
27,734

Net income
 
33,787

 
24,901

 
26,167

 
 
 
 
 
 
 
Other comprehensive income (loss):
 
 
 
 
 
 
Equity in other comprehensive earnings (losses) of subsidiaries
 
(5,469
)
 
6,384

 
(640
)
Total comprehensive income
 
$
28,318

 
$
31,285

 
$
25,527



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,
 
 
2018
 
2017
 
2016
 
 
(in thousands)
Operating activities
 
 
 
 
 
 
Net income
 
$
33,787

 
$
24,901

 
$
26,167

Adjustments to reconcile net income to net cash used in operating activities:
 
 
 
 
 
 
Deferred tax expense (benefit)
 
(170
)
 
429

 
(65
)
Stock compensation expense
 
1,597

 
652

 
492

Equity in undistributed earnings of subsidiaries
 
(33,469
)
 
(25,303
)
 
(27,734
)
Changes in operating assets and liabilities
 
(633
)
 
(1,583
)
 
520

Net cash provided by (used in) operating activities
 
1,112

 
(904
)
 
(620
)
 
 
 
 
 
 
 
Investing activities
 
 
 
 
 
 
Dividends received from subsidiary
 
11,500

 
4,500

 
—

Contributions to subsidiary
 
—

 
—

 
(40,000
)
Net cash provided by (used in) investing activities
 
11,500

 
4,500

 
(40,000
)
 
 
 
 
 
 
 
Financing activities
 
 
 
 
 
 
Common stock issued, net of transaction costs
 
—

 
—

 
72,841

Common stock issued, stock options exercised
 
1,808

 
1,077

 
—

Dividends paid
 
(5,906
)
 
(5,039
)
 
(2,097
)
Repayment of note payable
 
—

 
—

 
(30,000
)
Net cash (used in) provided by financing activities
 
(4,098
)
 
(3,962
)
 
40,744

Net change in cash and cash equivalents
 
8,514

 
(366
)
 
124

Cash and cash equivalents at beginning of year
 
1,502

 
1,868

 
1,744

Cash and cash equivalents at end of year
 
$
10,016

 
$
1,502

 
$
1,868


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 
During 2018, cash dividends of $11.5 million were paid to Kinsale Capital Group, Inc. by its wholly-owned subsidiary, Kinsale Insurance Company.