Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 2, 2017
 
KINSALE CAPITAL GROUP, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
(State or other jurisdiction
of incorporation)
001-37848
(Commission File Number)
98-0664337
(IRS Employer Identification No.)
2221 Edward Holland Drive, Suite 600
Richmond, VA 23230
(Address of principal executive offices)
(804) 289-1300
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☒






Item 2.02     Results of Operations and Financial Condition.
On November 2, 2017, Kinsale Capital Group, Inc. (the “Company”) issued a press release announcing its financial results for the three and nine month periods ended September 30, 2017. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
 
Description
 
 
 
99.1
 
Press Release of the Company dated November 2, 2017





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 hereunto duly authorized.
 
KINSALE CAPITAL GROUP, INC.
 
 
 
Dated: November 2, 2017
By:
/s/ Bryan P. Petrucelli
       
 
Name: Bryan P. Petrucelli
 
 
Title: Senior Vice President, Chief Financial Officer and Treasurer








EXHIBIT INDEX
Exhibit No.
 
Description
 
 
 
99.1
 




Exhibit
Exhibit 99.1


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=11869112&doc=3


Kinsale Capital Group, Inc. Reports 2017 Third Quarter Results

Richmond, VA, November 2, 2017-Kinsale Capital Group, Inc. (NASDAQ:KNSL) reported net income of $4.2 million for the third quarter of 2017 compared to $8.0 million for the third quarter of 2016. Net income for the third quarter of 2017 included after-tax losses incurred from Hurricanes Harvey and Irma of $5.3 million. Net income was $19.0 million for the first nine months of 2017 compared to $19.3 million for the first nine months of 2016.
Highlights for the third quarter and first nine months of 2017 included:
11.5% annualized return on equity for the nine months ended September 30, 2017
Net income of $4.2 million in the third quarter of 2017, a decrease of 47.4% from the third quarter of 2016
Diluted earnings per share of $0.20 for the third quarter of 2017
16.3% growth in gross written premiums to $55.6 million in the third quarter of 2017
Underwriting income of $2.5 million in the third quarter of 2017, resulting in a combined ratio of 94.5%
46.0% increase in net investment income to $2.8 million in the third quarter of 2017
"Our third quarter results reflected strong premium growth and profitable underwriting results despite the impact of storm related losses. We achieved a combined ratio of 94.5% for the quarter, which included 17.9 points of losses incurred from Hurricanes Harvey and Irma. Premium growth continues to be strong, with net written premiums up over 16% for the quarter. As we finish out the year, we remain focused on disciplined underwriting, leveraging the power of our technology driven platform and diligently managing costs,” said President and Chief Executive Officer, Michael P. Kehoe.
Results of Operations
Underwriting Results
Gross written premiums were $55.6 million for the three months ended September 30, 2017 compared to $47.8 million for the three months ended September 30, 2016, an increase of 16.3%. Gross written premiums were $166.2 million for the nine months ended September 30, 2017 compared to $141.0 million for the nine months ended September 30, 2016, an increase of 17.9%. The increase in gross written premiums for the third quarter and the first nine months of 2017 over the same periods last year was due to growth across most lines of business.
For the nine months ended September 30, 2016, the Company participated in a quota share reinsurance agreement ("multiple line quota share" or "MLQS") whereby it transferred part of its risk to reinsurers in exchange for a proportion of the gross written premiums on that business. The Company did not renew the MLQS program for the 2017 calendar year. For comparative purposes, an exhibit showing the calculation of underwriting income excluding the effects of the MLQS is included under the "Summary of Operating Results" section below.
Underwriting income was $2.5 million resulting in a combined ratio of 94.5% for the three months ended September 30, 2017, compared to $10.7 million, resulting in a combined ratio of 67.5% for same period last year. Underwriting income included pre-tax losses incurred from Hurricanes Harvey and Irma of $8.0 million,

1








net of reinsurance. Net favorable prior year loss reserve development was $2.9 million in the third quarter of 2017 compared to $3.5 million in the third quarter of 2016. Loss and expense ratios were 70.1% and 24.4%, respectively, for the three months ended September 30, 2017 compared to 48.4% and 19.1% for the three months ended September 30, 2016. The loss ratio for the three months ended September 30, 2017 included 17.9 points of net incurred losses related to Hurricanes Harvey and Irma. Adjusted loss and expense ratios, each of which excludes the effects of the MLQS, were 44.7% and 27.1% for the three months ended September 30, 2016.
For the nine months ended September 30, 2017, underwriting income was $20.2 million, resulting in a combined ratio of 84.3%, compared to $24.8 million, resulting in a combined ratio of 74.0% for same period last year. Loss and expense ratios were 58.8% and 25.5%, respectively, for the nine months ended September 30, 2017 compared to 54.0% and 20.0%, respectively, for the nine months ended September 30, 2016. Adjusted loss and expense ratios, each of which excludes the effects of the MLQS, were 50.8% and 26.5%, respectively, for the first nine months of 2016. Excluding the MLQS, the decrease in underwriting income of 20.7% year over year was due to pre-tax losses related to Hurricanes Harvey and Irma of $8.0 million and lower net favorable prior year loss reserve development, offset in part by an increase in net earned premiums.
See the tables below under "Summary of Operating Results" for a reconciliation of adjusted loss and expense ratios, and "Non-GAAP Financial Measures" for a reconciliation of underwriting income, which are non-GAAP financial measures.
Investment Results
The Company’s net investment income was $2.8 million in the third quarter of 2017 compared to $1.9 million in the third quarter of 2016, an increase of 46.0%. Net investment income was $7.5 million in the first nine months of 2017 compared to $5.4 million in the first nine months of 2016. The Company’s investment portfolio, excluding cash and cash equivalents, had an annualized gross investment return of 2.4% for the nine months ended September 30, 2017 compared to 2.1% for the nine months ended September 30, 2016. Funds are generally invested conservatively in high quality securities, including government agency, mortgage-backed, municipal and corporate bonds with an average credit quality of "AA." The weighted average duration of the fixed maturity investment portfolio, including cash equivalents, was 3.8 years at September 30, 2017 and 3.7 years at December 31, 2016. Cash and invested assets totaled $555.6 million at September 30, 2017 compared to $480.3 million at December 31, 2016.
Other
The effective tax rates for the three and nine months ended September 30, 2017 were 20.1% and 30.5%, respectively. The effective tax rate for both the three and nine months ended September 30, 2016 was 34.0%. The decrease in the effective tax rates for the three and nine months ended September 30, 2017 was due to higher levels of tax-exempt interest income from municipal bonds and the recognition of tax benefits from share-based compensation.
Total comprehensive income, which includes the change in after-tax unrealized gains and losses from the Company’s investment portfolio, was $5.8 million for the third quarter of 2017 compared to $8.0 million for the same period in 2016. Total comprehensive income was $23.9 million for the first nine months of 2017 compared to $24.3 million for the first nine months of 2016. The change in unrealized gains on investments during the third quarter and first nine months of 2017 resulted from higher overall fair values in the Company's equity securities, as the equity markets remained strong, and in fixed-maturity securities, particularly in the municipal bond sector.
Stockholders' equity was $231.8 million at September 30, 2017, compared to $210.2 million at December 31, 2016. Stockholders' equity increased by 10.2% for the nine months ended September 30, 2017 largely due to higher profits and unrealized investment gains, net of taxes. Annualized return on equity was 11.5% for the first nine months of 2017, down from 15.9% for the first nine months of 2016, primarily as the result of higher losses related to Hurricanes Harvey and Irma.

2








Summary of Operating Results
The Company’s operating results for the three and nine months ended September 30, 2017 and 2016 are summarized as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
($ in thousands)
Gross written premiums
$
55,633

 
$
47,823

 
$
166,248

 
$
141,012

Ceded written premiums
(8,562
)
 
(14,177
)
 
(25,242
)
 
(23,910
)
Net written premiums
$
47,071

 
$
33,646

 
$
141,006

 
$
117,102

 
 
 
 
 
 
 
 
Net earned premiums
$
45,030

 
$
32,974

 
$
128,515

 
$
95,354

Losses and loss adjustment expenses
31,568

 
15,949

 
75,534

 
51,526

Underwriting, acquisition and insurance expenses

10,989

 
6,302

 
32,775

 
19,031

Underwriting income (1)
$
2,473

 
$
10,723

 
$
20,206

 
$
24,797

 
 
 
 
 
 
 
 
Loss ratio
70.1
%
 
48.4
%
 
58.8
%
 
54.0
%
Expense ratio
24.4
%
 
19.1
%
 
25.5
%
 
20.0
%
Combined ratio
94.5
%
 
67.5
%
 
84.3
%
 
74.0
%
 
 
 
 
 
 
 
 
Annualized return on equity (2)

7.3
%
 
18.8
%
 
11.5
%
 
15.9
%

The following table summarizes the effect of the catastrophe losses and prior year development, net of reinsurance, on the loss ratio for the three and nine months ended September 30, 2017 and 2016:
 
Three Months Ended
September 30, 2017
 
Nine Months Ended
September 30, 2017
 
Losses and loss adjustment expenses
 
% of Earned Premiums
 
Losses and loss adjustment expenses
 
% of Earned Premiums
Loss ratio:
($ in thousands)
Current accident year
$
26,419

 
58.6
 %
 
$
79,208

 
61.6
 %
Catastrophe losses
8,044

 
17.9
 %
 
8,157

 
6.4
 %
Effect of prior year development
(2,895
)
 
(6.4
)%
 
(11,831
)
 
(9.2
)%
Total
$
31,568

 
70.1
 %
 
$
75,534

 
58.8
 %

 
Three Months Ended
 September 30, 2016
 
Nine Months Ended
 September 30, 2016
 
Losses and loss adjustment expenses
 
% of Earned Premiums
 
Losses and loss adjustment expenses
 
% of Earned Premiums
Loss ratio:
($ in thousands)
Current accident year
$
19,394

 
58.9
 %
 
$
60,284

 
63.2
 %
Catastrophe losses
14

 
 %
 
108

 
0.1
 %
Effect of prior year development
(3,459
)
 
(10.5
)%
 
(8,866
)
 
(9.3
)%
Total
$
15,949

 
48.4
 %
 
$
51,526

 
54.0
 %


3









The following tables summarize the effect of the MLQS for the three and nine months ended September 30, 2017 and 2016:
 
Three Months Ended
September 30, 2017
 
Three Months Ended
September 30, 2016
 
Including
 Quota Share
 
Effects of Quota Share
 
Excluding
Quota Share
 
Including
Quota Share
 
Effects of Quota Share
 
Excluding
Quota Share
 
($ in thousands)
Gross written premiums
$
55,633

 
$

 
$
55,633

 
$
47,823

 
$

 
$
47,823

Ceded written premiums
(8,562
)
 

 
(8,562
)
 
(14,177
)
 
(6,000
)
 
(8,177
)
Net written premiums
$
47,071

 
$

 
$
47,071

 
$
33,646

 
$
(6,000
)
 
$
39,646

 
 
 
 
 
 
 
 
 
 
 
 
Net earned premiums
$
45,030

 
$

 
$
45,030

 
$
32,974

 
$
(5,872
)
 
$
38,846

Losses and loss adjustment expenses:
 
 
 
 
 
 
 
 
 
 
 
Current accident year
(26,419
)
 

 
(26,419
)
 
(19,394
)
 
2,976

 
(22,370
)
Current accident year - catastrophes
(8,044
)
 

 
(8,044
)
 
(14
)
 

 
(14
)
Development on prior accident years
2,895

 

 
2,895

 
3,459

 
(1,574
)
 
5,033

Total losses and loss adjustment expenses
(31,568
)
 

 
(31,568
)
 
(15,949
)
 
1,402

 
(17,351
)
Underwriting, acquisition and insurance expenses
(10,989
)
 

 
(10,989
)
 
(6,302
)
 
4,234

 
(10,536
)
Underwriting income (1)
$
2,473

 
$

 
$
2,473

 
$
10,723

 
$
(236
)
 
$
10,959

 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
70.1
%
 
%
 

 
48.4
%
 
23.9
%
 

Expense ratio
24.4
%
 
%
 

 
19.1
%
 
72.1
%
 

Combined ratio
94.5
%
 
%
 

 
67.5
%
 
96.0
%
 

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted loss ratio (3)

 

 
70.1
%
 

 

 
44.7
%
Adjusted expense ratio (3)

 

 
24.4
%
 

 

 
27.1
%
Adjusted combined ratio (3)

 

 
94.5
%
 

 

 
71.8
%

4








 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
Including
 Quota Share
 
Effects of Quota Share
 
Excluding
Quota Share
 
Including
Quota Share
 
Effects of Quota Share
 
Excluding
Quota Share
 
($ in thousands)
Gross written premiums
$
166,248

 
$

 
$
166,248

 
$
141,012

 
$

 
$
141,012

Ceded written premiums
(25,242
)
 

 
(25,242
)
 
(23,910
)
 
(774
)
 
(23,136
)
Net written premiums
$
141,006

 
$

 
$
141,006

 
$
117,102

 
$
(774
)
 
$
117,876

 
 
 
 
 
 
 
 
 
 
 
 
Net earned premiums
$
128,515

 
$

 
$
128,515

 
$
95,354

 
$
(16,996
)
 
$
112,350

Losses and loss adjustment expenses:
 
 
 
 
 
 
 
 
 
 
 
Current accident year
(79,208
)
 

 
(79,208
)
 
(60,284
)
 
9,339

 
(69,623
)
Current accident year - catastrophes
(8,157
)
 

 
(8,157
)
 
(108
)
 

 
(108
)
Development on prior accident years
11,831

 

 
11,831

 
8,866

 
(3,742
)
 
12,608

Total losses and loss adjustment expenses
(75,534
)
 

 
(75,534
)
 
(51,526
)
 
5,597

 
(57,123
)
Underwriting, acquisition and insurance expenses
(32,775
)
 

 
(32,775
)
 
(19,031
)
 
10,719

 
(29,750
)
Underwriting income (1)
$
20,206

 
$

 
$
20,206

 
$
24,797

 
$
(680
)
 
$
25,477

 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
58.8
%
 
%
 

 
54.0
%
 
32.9
%
 

Expense ratio
25.5
%
 
%
 

 
20.0
%
 
63.1
%
 

Combined ratio
84.3
%
 
%
 

 
74.0
%
 
96.0
%
 

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted loss ratio (3)

 

 
58.8
%
 

 

 
50.8
%
Adjusted expense ratio (3)

 

 
25.5
%
 

 

 
26.5
%
Adjusted combined ratio (3)

 

 
84.3
%
 

 

 
77.3
%
(1) Underwriting income is a non-GAAP financial measure. See discussion of "Non-GAAP Financial Measures" below.
(2) Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
(3) Adjusted loss ratio, adjusted expense ratio and adjusted combined ratio are non-GAAP financial measures. See discussion of "Non-GAAP Financial Measures" below.

Non-GAAP Financial Measures
Underwriting Income
Underwriting income is a non-GAAP financial measure that is useful in evaluating the Company's underwriting performance without regard to investment income. Underwriting income represents the pre-tax profitability of the Company's insurance operations and is derived by subtracting losses and loss adjustment expenses and underwriting, acquisition and insurance expenses from net earned premiums. The Company uses underwriting income as an internal performance measure in the management of its operations because the Company believes it gives management and users of the Company's financial information useful insight into the Company's results of operations and 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.

5








Net income for the three and nine months ended September 30, 2017 and 2016, reconciles to underwriting income as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
(in thousands)
Net income
 
$
4,201

 
$
7,982

 
$
18,977

 
$
19,296

Income tax expense
 
1,054

 
4,112

 
8,319

 
9,940

Income before income taxes
 
5,255

 
12,094

 
27,296

 
29,236

Other expenses
 
27

 
523

 
429

 
1,469

Net investment income
 
(2,765
)
 
(1,894
)
 
(7,483
)
 
(5,389
)
Net realized investment gains
 
(44
)
 

 
(36
)
 
(383
)
Other income
 

 

 

 
(136
)
Underwriting income
 
$
2,473

 
$
10,723

 
$
20,206

 
$
24,797

Adjusted Loss and Expense Ratios
Adjusted loss ratio, adjusted expense ratio and adjusted combined ratio are non-GAAP financial measures. The Company defines its adjusted loss ratio, adjusted expense ratio and adjusted combined ratio as each of its loss ratio, expense ratio and combined ratio, respectively, excluding the effects of the MLQS. The Company uses these adjusted ratios as internal performance measures in the management of its operations because the Company believes they give management and other users of the Company's financial information useful insight into the Company's results of operations and underlying business performance. The Company's adjusted loss ratio, adjusted expense ratio and adjusted combined ratio should not be viewed as substitutes for its loss ratio, expense ratio and combined ratio, respectively, which are presented in accordance with GAAP.
Conference Call
Kinsale Capital Group will hold a conference call to discuss this press release on Friday, November 3, 2017, at 9:00 a.m. (Eastern Time). Members of the public may access the conference call by dialing (844) 239-5282, conference ID# 96128388, or via the Internet by going to www.kinsalecapitalgroup.com and clicking on the "Investor Relations" link. A replay of the call will be available on the website until the close of business on January 3, 2018.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as "believe," "expect," "seek," "may," "will," "intend," "project," "plan," "estimate" or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; adverse economic factors; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its E&S insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

6








About Kinsale Capital Group, Inc.
Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.

Contact

Kinsale Capital Group, Inc.
Bryan Petrucelli
Senior Vice President, Chief Financial Officer and Treasurer
804-289-1272
ir@kinsalecapitalgroup.com



7








KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income and Comprehensive Income

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Revenues
 
(in thousands, except per share data)
Gross written premiums
 
$
55,633

 
$
47,823

 
$
166,248

 
$
141,012

Ceded written premiums
 
(8,562
)
 
(14,177
)
 
(25,242
)
 
(23,910
)
Net written premiums
 
47,071

 
33,646

 
141,006

 
117,102

Change in unearned premiums
 
(2,041
)
 
(672
)
 
(12,491
)
 
(21,748
)
Net earned premiums
 
45,030

 
32,974

 
128,515

 
95,354

 
 
 
 
 
 
 
 
 
Net investment income
 
2,765

 
1,894

 
7,483

 
5,389

Net realized investment gains
 
44

 

 
36

 
383

Other income
 

 

 

 
136

Total revenues
 
47,839

 
34,868

 
136,034

 
101,262

 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
31,568

 
15,949

 
75,534

 
51,526

Underwriting, acquisition and insurance expenses
 
10,989

 
6,302

 
32,775

 
19,031

Other expenses
 
27

 
523

 
429

 
1,469

Total expenses
 
42,584

 
22,774

 
108,738

 
72,026

Income before income taxes
 
5,255

 
12,094

 
27,296

 
29,236

Total income tax expense
 
1,054

 
4,112

 
8,319

 
9,940

Net income
 
4,201

 
7,982

 
18,977

 
19,296

 
 
 
 
 
 
 
 
 
Other comprehensive income
 
 
 
 
 
 
 
 
Change in unrealized gains on investments, net of taxes
 
1,639

 
(1
)
 
4,886

 
5,016

Total comprehensive income
 
$
5,840

 
$
7,981

 
$
23,863

 
$
24,312

 
 
 
 
 
 
 
 
 
Earnings per share - basic:
 
 
 
 
 
 
 
 
Common stock
 
$
0.20

 
$
0.24

 
$
0.90

 
$
0.24

Common stock - Class A
 
$

 
$
0.19

 
$

 
$
0.98

Common stock - Class B
 
$

 
$
0.21

 
$

 
$
0.48

 
 
 
 
 
 
 
 
 
Earnings per share - diluted:
 
 
 
 
 
 
 
 
Common stock
 
$
0.20

 
$
0.24

 
$
0.88

 
$
0.24

Common stock - Class A
 
$

 
$
0.19

 
$

 
$
0.98

Common stock - Class B
 
$

 
$
0.20

 
$

 
$
0.46

 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - basic:
 
 
 
 
 
 
 
 
Common stock
 
20,995

 
20,656

 
20,978

 
20,656

Common stock - Class A
 

 
14,111

 

 
13,844

Common stock - Class B
 

 
1,682

 

 
1,574

 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - diluted:
 
 
 
 
 
 
 
 
Common stock
 
21,520

 
20,741

 
21,461

 
20,741

Common stock - Class A
 

 
14,111

 

 
13,844

Common stock - Class B
 

 
1,818

 

 
1,644


8








KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets

 
 
September 30, 2017
 
December 31, 2016
Assets
 
(in thousands)
Investments:
 
 
 
 
Fixed maturity securities available-for-sale
 
$
415,893

 
$
411,223

Equity securities available-for-sale
 
43,010

 
18,374

Total investments
 
458,903

 
429,597

 
 
 
 
 
Cash and cash equivalents
 
96,684

 
50,752

Investment income due and accrued
 
3,012

 
2,293

Premiums receivable, net
 
19,103

 
16,984

Receivable from reinsurers
 

 
8,567

Reinsurance recoverable
 
46,487

 
70,317

Ceded unearned premiums
 
13,976

 
13,512

Deferred policy acquisition costs, net of ceding commissions
 
11,725

 
10,150

Intangible assets
 
3,538

 
3,538

Deferred income tax asset, net

 
4,833

 
6,605

Other assets
 
4,733

 
2,074

Total assets
 
$
662,994

 
$
614,389

 
 
 
 
 
Liabilities & Stockholders' Equity
 
 
 
 
Liabilities:
 
 
 
 
Reserves for unpaid losses and loss adjustment expenses
 
$
310,934

 
$
264,801

Unearned premiums
 
102,299

 
89,344

Payable to reinsurers
 
3,553

 
4,090

Funds held for reinsurers
 

 
36,497

Accounts payable and accrued expenses
 
5,947

 
8,752

Other
 
8,503

 
691

Total liabilities
 
431,236

 
404,175

 
 
 
 
 
Stockholders' equity
 
231,758

 
210,214

Total liabilities and stockholders' equity
 
$
662,994

 
$
614,389




9