XML 69 R41.htm IDEA: XBRL DOCUMENT v3.26.1
Reinsurance (Tables)
 12 Months Ended
Dec. 31, 2025
Reinsurance Disclosures [Abstract]  
Schedule of Line of Business
Treaty Period
2026/2027 Treaty2025/2026 Treaty2024/2025 Treaty
Line of Business July 1,
2026
to
January 1,
2027		January 2,
2026
to
June 30,
2026		July 1,
2025
to
January 1,
2026		January 2,
2025
to
June 30,
2025		July 1,
2024
to
January 1,
2025		January 1,
2024
to
June 30,
2024
Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded (6)5 %5 %16 %16 %27 %27 %
Risk retained on initial
$1,000,000 of losses (4) (5) (6)$950,000 $950,000 $840,000 $840,000 $730,000 $730,000 
Losses per occurrence
subject to quota share
reinsurance coverage$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 
Expiration dateJanuary 1, 2027January 1, 2027January 1, 2026January 1, 2026January 1, 2025January 1, 2025
Excess of loss coverage and
facultative facility
coverage (1) (4) (5)$(5)$8,250,000 $8,250,000 $8,400,000 $8,400,000 $8,400,000 
in excess ofin excess ofin excess ofin excess ofin excess of
$750,000 $750,000 $600,000 $600,000 $600,000 
Total reinsurance coverage
per occurrence (4) (5)$50,000 $8,175,000 $8,285,000 $8,360,000 $8,470,000 $8,470,000 
Losses per occurrence
subject to reinsurance
coverage (5)$1,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 
Expiration date(5)June 30, 2026June 30, 2026June 30, 2025June 30, 2025June 30, 2024
Catastrophe Reinsurance:
Initial loss subject to personal
lines quota share treaty (5)$10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 
Risk retained per catastrophe
occurrence (5) (6) (7) (8)(5)$5,500,000 $5,000,000 $4,250,000 $4,750,000 $9,500,000 
Catastrophe loss coverage
in excess of quota share
coverage (2) (5) (8)(5)$434,500,000 $435,000,000 $275,000,000 $275,000,000 $315,000,000 
Reinstatement premium
protection (3)(5)YesYesYesYesYes
(1)For personal lines, includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $9,000,000 in total insured value, which covers direct losses from $3,500,000 to $9,000,000 through June 30, 2026.
(2)Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts, except for one occurrence on 80% of the first layer of $5,000,000 in excess of $5,000,000, and one occurrence on 52% of the top layer of $240,000,000 in excess of $200,000,000, which is covered under the catastrophe bond. Duration of 168 consecutive hours for a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone, except for winter storm coverage, which is covered under a specific declared catastrophe event.
(3)For the period July 1, 2024 through June 30, 2025 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2025 through June 30, 2026 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000.
(4)For the period January 1, 2024 through June 30, 2025, the Underlying XOL Treaty provides 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Excludes losses from named storms. Reduces retention to $530,000 from $730,000 under the 2024/2025 Treaty. Retention increases to $640,000 from $530,000 under the 2025/2026 Treaty. For the period July 1, 2025 through June 30, 2026, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. Increased retention to $715,000 from $640,000 under the 2025/2026 Treaty, and increased retention to $825,000 under the 2026/2027 Treaty (see note 5 below).
(5)Excess of loss coverage and facultative facility and catastrophe reinsurance treaties will expire on June 30,2026, with none of these coverages to be in effect during the period from July 1 2026 through January 1, 2027. If and when these treaties are renewed on July 1, 2026, the excess of loss and facultative facility, underlying excess of loss treaty, and the catastrophe reinsurance treaty, will be as provided for therein. Reinsurance coverage in effect from July 1, 2026 through January 1, 2027 is currently only covered under the 2026/2027 Treaty. The 2026/2027 Treaty will expire on January 1, 2027.
(6)For the 2024/2025 Treaty, 22% of the 27% total of losses ceded under this treaty are excluded from a named catastrophe event. For the 2025/2026 Treaty, 6% of the 16% total of losses ceded under this treaty are excluded from a named catastrophe event. For the 2026/2027 Treaty, there is no exclusion for catastrophe events.
(7)Plus losses in excess of catastrophe coverage.
(8)Effective July 1, 2025 through June 30, 2026, catastrophe coverage is 80% of the first layer of $5,000,000 in excess of $5,000,000. The remaining coverage is at 100% of $430,000,000 in excess of $10,000,000. For the period October 1, 2024 through April 30, 2025, additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. For the period October 15, 2025 through April 30, 2026, additional catastrophe reinsurance treaty will provide coverage for winter storm losses to the extent of 90% of $5,000,000 in excess of $5,000,000. Retention for winter storms is $4,800,000 under the 2024/2025 Treaty, $5,200,000 under the 2025/2026 Treaty from January 1, 2025 through April 30, 2025, $3,900,000 from October 15, 2025 through January 1, 2026, the expiration date of the 2025/2026 Treaty, and $5,000,000 under the 2026/2027 Treaty through April 30, 2026,
 Treaty Year
Line of Business July 1, 2025
to
June 30, 2026		July 1, 2024
to
June 30, 2025		July 1, 2023
to
June 30, 2024
    
Personal Lines:   
Personal Umbrella   
Quota share treaty:   
Percent ceded - first $1,000,000 of coverage90%90%90%
Percent ceded - excess of $1,000,000 dollars of coverage95%95%95%
Risk retained$300,000 $300,000 $300,000 
Total reinsurance coverage per occurrence$4,700,000 $4,700,000 $4,700,000 
Losses per occurrence subject to quota share reinsurance coverage$5,000,000 $5,000,000 $5,000,000 
Expiration dateJune 30, 2026June 30, 2025June 30, 2024
Commercial Lines (1)
(1)Coverage on all commercial lines policies expired in September 2020; reinsurance coverage is based on treaties in effect on the date of loss.
Schedule of Approximate Reinsurance Recoverable
Approximate reinsurance recoverables on unpaid and paid losses by reinsurer at December 31, 2025 and 2024 are as follows:
($ in thousands) Unpaid
Losses 		Paid Losses Total Security  
December 31, 2025     
Swiss Reinsurance America Corporation8,965 693 9,658 — 
Hannover Rueck SE12,497 (124)12,373 — 
Lancashire Insurance Company Limited5,798 1,242 7,040 — 
Others5,972 1,017 6,989 384 (1)
Total$33,232 $2,828 $36,060 $384 
      
December 31, 2024     
Swiss Reinsurance America Corporation13,565 1,346 14,911 — 
Hannover Rueck SE7,195 559 7,754 — 
Lancashire Insurance Company Limited4,893 1,288 6,181 — 
Others6,670 2,061 8,731 393 (1)
Total$32,323 $5,254 $37,577 $393 
(1)As of December 31, 2025 and December 31, 2024, represents$384,000 and $393,000, respectively, guaranteed by irrevocable letters of credit.
Schedule of Ceding Commissions Earned
Ceding commission revenue consists of the following:
 Year ended
December 31,
 20252024
   
Provisional ceding commissions earned$13,926,916 $18,829,278 
Contingent ceding commissions earned1,748,055 8,668 
 $15,674,971 $18,837,946