10-Q

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 March 31, 2019

☐ 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 (State or other jurisdiction of incorporation or organization)		98-0664337 (I.R.S. Employer Identification Number)

2221 Edward Holland Drive, Suite 600

Richmond, VA 23230

(Address of principal executive offices)

(804) 289-1300

(Registrant's telephone number, including area code)

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 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  ☒

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	KNSL	Nasdaq Global Select Market

Number of shares of the registrant's common stock outstanding at April 26, 2019: 21,286,456

KINSALE CAPITAL GROUP, INC.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	2
	Consolidated Balance Sheets (Unaudited) at March 31, 2019 and December 31, 2018	2
	Consolidated Statements of Income and Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2019 and 2018	3
	Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three Months Ended March 31, 2019 and 2018	4
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2019 and 2018	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 6.	Exhibits	35
	Signatures	36

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

	March 31, 2019		December 31, 2018
	(in thousands, except share and per share data)
Assets
Investments:
Fixed-maturity securities available for sale, at fair value (amortized cost: $536,182 in 2019; $514,237 in 2018)	$	540,778	$	510,251
Equity securities, at fair value (cost: $56,926 in 2019 $56,051 in 2018)	64,481		57,711
Total investments	605,259		567,962
Cash and cash equivalents	102,874		75,089
Investment income due and accrued	3,587		3,783
Premiums receivable, net	30,941		24,253
Reinsurance recoverables	59,334		56,788
Ceded unearned premiums	16,987		16,072
Deferred policy acquisition costs, net of ceding commissions	16,314		14,801
Intangible assets	3,538		3,538
Deferred income tax asset, net	6,928		7,176
Other assets	7,111		3,601
Total assets	$	852,873	$	773,063
Liabilities and Stockholders' Equity
Liabilities:
Reserves for unpaid losses and loss adjustment expenses	$	385,125	$	369,152
Unearned premiums	140,741		128,250
Payable to reinsurers	5,532		4,565
Accounts payable and accrued expenses	4,840		7,090
Other liabilities	27,746		20
Total liabilities	563,984		509,077
Stockholders’ equity:
Common stock, $0.01 par value, 400,000,000 shares authorized, 21,284,527 and 21,241,504 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	213		212
Additional paid-in capital	159,589		158,485
Retained earnings	123,563		106,545
Accumulated other comprehensive (loss) income	5,524		(1,256		)
Total stockholders’ equity	288,889		263,986
Total liabilities and stockholders’ equity	$	852,873	$	773,063

See accompanying notes to condensed consolidated financial statements.

2

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income and Comprehensive Income (Unaudited)

	Three Months Ended March 31,
	2019			2018
	(in thousands, except per share data)
Revenues:
Gross written premiums	$	84,626		$	63,847
Ceded written premiums	(11,559		)	(8,756		)
Net written premiums	73,067			55,091
Change in unearned premiums	(11,576		)	(7,030		)
Net earned premiums	61,491			48,061
Net investment income	4,515			3,229
Net unrealized gains (losses) on equity securities	5,895			(1,279		)
Net realized gains on investments	280			112
Other income	4			3
Total revenues	72,185			50,126
Expenses:
Losses and loss adjustment expenses	33,732			28,899
Underwriting, acquisition and insurance expenses	15,616			12,398
Other expenses	36			14
Total expenses	49,384			41,311
Income before income taxes	22,801			8,815
Total income tax expense	4,081			1,528
Net income	18,720			7,287
Other comprehensive income (loss):
Change in unrealized gains (losses) on available-for-sale investments, net of taxes of $1,802 in 2019 and $(1,291) in 2018	6,780			(4,856		)
Total comprehensive income	$	25,500		$	2,431

Earnings per share:
Basic	$	0.88	$	0.35
Diluted	$	0.86	$	0.34
Weighted-average shares outstanding:
Basic	21,169		21,045
Diluted	21,763		21,628

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 Stock	Common Stock		Additional Paid-in Capital		Retained Earnings			Accumu- lated  Other Compre- hensive Income (Loss)			Total Stock- holders' Equity
	(in thousands)
Balance at December 31, 2017	21,036	$	210	$	155,082	$	73,502		$	9,395		$	238,189
Cumulative effect adjustment - unrealized gains on equity securities, net of tax	—	—		—		6,490			(6,490		)	—
Balance at December 31, 2017, as adjusted	21,036	210		155,082		79,992			2,905			238,189
Reclassification of tax effect of TCJA	—	—		—		(1,308		)	1,308			—
Issuance of common stock under stock-based compensation plan	36	—		545		—			—			545
Stock-based compensation	—	—		158		—			—			158
Dividends declared ($0.07 per share)	—	—		—		(1,473		)	—			(1,473		)
Other comprehensive loss, net of tax	—	—		—		—			(4,856		)	(4,856		)
Net income	—	—		—		7,287			—			7,287
Balance at March 31, 2018	21,072	$	210	$	155,785	$	84,498		$	(643	)	$	239,850
Balance at December 31, 2018	21,242	$	212	$	158,485	$	106,545		$	(1,256	)	$	263,986
Issuance of common stock under stock-based compensation plan	43	1		597		—			—			598
Stock-based compensation	—	—		507		—			—			507
Dividends declared ($0.08 per share)	—	—		—		(1,702		)	—			(1,702		)
Other comprehensive income, net of tax	—	—		—		—			6,780			6,780
Net income	—	—		—		18,720			—			18,720
Balance at March 31, 2019	21,285	$	213	$	159,589	$	123,563		$	5,524		$	288,889

See accompanying notes to condensed consolidated financial statements.

4

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Operating activities:
Net cash provided by operating activities	$	33,804		$	21,437
Investing activities:
Purchase of property and equipment	(3,925		)	(94		)
Purchases – fixed-maturity securities	(43,040		)	(82,587		)
Purchases – equity securities	(1,831		)	(3,168		)
Sales – fixed-maturity securities	28,416			3,913
Sales – equity securities	915			982
Maturities and calls – fixed-maturity securities	14,545			35,357
Net cash used in investing activities	(4,920		)	(45,597		)
Financing activities:
Proceeds from stock options exercised	597			545
Dividends paid	(1,696		)	(1,473		)
Net cash used in financing activities	(1,099		)	(928		)
Net change in cash and cash equivalents	27,785			(25,088		)
Cash and cash equivalents at beginning of year	75,089			81,747
Cash and cash equivalents at end of period	$	102,874		$	56,659

See accompanying notes to condensed consolidated financial statements.

5

KINSALE CAPITAL GROUP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1.    Summary of significant accounting policies

Basis of presentation

The accompanying 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. For a more complete description of the Company’s business and accounting policies, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its wholly owned subsidiaries (the "Company") included in the Annual Report on Form 10-K for the year ended December 31, 2018. 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 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. Management periodically reviews its estimates and assumptions.

Recently adopted accounting pronouncements

ASU 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to improve the financial reporting of leasing transactions. Under this ASU, lessees will recognize a right-of-use ("ROU") asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of 12 months or less. The lessee’s income statement treatment for leases will vary depending on the nature and classification of the lease. Effective January 1, 2019, the Company adopted this ASU and recorded a ROU asset and corresponding lease liability of approximately $0.9 million. The ROU and operating lease liability are included in "other assets" and "other liabilities," respectively, in the accompanying consolidated balance sheet.

The Company elected the package of practical expedients permitted under the adoption of the new standard, which allowed the Company to account for existing leases under their current classification, as well as omit any new costs classified as initial direct costs, under the new standard. This election kept the existing agreements as operating leases. The Company also elected the practical expedient allowing an accounting policy election by class of underlying asset, to account for separate lease and nonlease components as a single lease component. In addition, the Company has implemented the necessary internal controls relating to the adoption of the standard.

ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. Effective January 1, 2019, the Company adopted ASU 2017-08 using a

6

modified retrospective approach. The adoption of ASU 2017-08 did not have a material impact on the Company's financial statements.

Prospective accounting pronouncements

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326)" to provide more useful information about the expected credit losses on financial instruments. Current GAAP delays the recognition of credit losses until it is probable a loss has been incurred. The update will require a financial asset measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses. However, the amendments would limit the amount of the allowance to the amount by which fair value is below amortized cost. The measurement of credit losses on available-for-sale securities is similar under current GAAP, but the update requires the use of the allowance account through which amounts can be reversed, rather than through an irreversible write-down. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. Upon adoption, the update will be applied using the modified-retrospective approach, by which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period presented. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

There are no other prospective accounting standards which, upon their effective date, would have a material impact on the Company's consolidated financial statements.

2.     Investments

Available-for-sale investments

The following tables summarize the available-for-sale investments at March 31, 2019 and December 31, 2018:

	March 31, 2019
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	110	$	2	$	—		$	112
Obligations of states, municipalities and political subdivisions	126,050		4,164		(54		)	130,160
Corporate and other securities	108,757		1,676		(310		)	110,123
Commercial mortgage and asset-backed securities	164,341		912		(841		)	164,412
Residential mortgage-backed securities	136,924		774		(1,727		)	135,971
Total available-for-sale investments	$	536,182	$	7,528	$	(2,932	)	$	540,778

7

	December 31, 2018
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	610	$	2	$	(1	)	$	611
Obligations of states, municipalities and political subdivisions	153,884		2,010		(1,294		)	154,600
Corporate and other securities	97,889		264		(1,401		)	96,752
Commercial mortgage and asset-backed securities	151,137		252		(1,522		)	149,867
Residential mortgage-backed securities	110,717		354		(2,650		)	108,421
Total available-for-sale investments	$	514,237	$	2,882	$	(6,868	)	$	510,251

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 securities’ fair value is deemed to be an other-than-temporary impairment ("OTTI"). The Company considers a number of factors in completing its OTTI review, including the length of time and 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 change in a security’s value caused by a change in the market or interest rate environment does not constitute an OTTI, but rather a temporary decline in fair value.

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 the 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 considered to be other-than-temporary 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, resulting in a new cost basis for the security. If the decline in fair value of a fixed-maturity security below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. 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 OTTI, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the noncredit portion of the OTTI, which is recognized in other comprehensive income.

8

The following tables summarize gross unrealized losses and fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position:

	March 31, 2019
	Less than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
	(in thousands)
Fixed maturities:
Obligations of states, municipalities and political subdivisions	$	—	$	—		$	9,756	$	(54	)	$	9,756	$	(54	)
Corporate and other securities	2,313		(15		)	12,143		(295		)	14,456		(310		)
Commercial mortgage and asset-backed securities	60,061		(532		)	29,952		(309		)	90,013		(841		)
Residential mortgage-backed securities	20,391		(41		)	58,361		(1,686		)	78,752		(1,727		)
Total available-for-sale investments	$	82,765	$	(588	)	$	110,212	$	(2,344	)	$	192,977	$	(2,932	)

At March 31, 2019, the Company held 152 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $193.0 million and gross unrealized losses of $2.9 million. Of these securities, 118 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 any other-than-temporary impairment has occurred. Based on the Company's review as of March 31, 2019, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At March 31, 2019, 85.4% 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. For the three months ended March 31, 2019, the Company concluded that there were no other-than-temporary impairments from fixed-maturity securities with unrealized losses.

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	December 31, 2018
	Less than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	—		$	499	$	(1	)	$	499	$	(1	)
Obligations of states, municipalities and political subdivisions	42,718		(440		)	34,326		(854		)	77,044		(1,294		)
Corporate and other securities	62,045		(890		)	12,092		(511		)	74,137		(1,401		)
Commercial mortgage and asset-backed securities	93,247		(1,017		)	25,746		(505		)	118,993		(1,522		)
Residential mortgage-backed securities	24,571		(155		)	55,638		(2,495		)	80,209		(2,650		)
Total available-for-sale investments	$	222,581	$	(2,502	)	$	128,301	$	(4,366	)	$	350,882	$	(6,868	)

At December 31, 2018, the Company held 317 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $350.9 million and gross unrealized losses of $6.9 million. Of those securities, 158 were in a continuous unrealized loss position for greater than one year. Based on the Company's review as of December 31, 2018, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At December 31, 2018, 86.4% 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. For the year ended December 31, 2018, the Company concluded that there were no other-than-temporary impairments from fixed-maturity securities with unrealized losses.

Contractual maturities of available-for-sale fixed-maturity securities

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at March 31, 2019 are summarized, by contractual maturity, as follows:

	March 31, 2019
	Amortized		Estimated
	Cost		Fair Value
	(in thousands)
Due in one year or less	$	4,270	$	4,265
Due after one year through five years	75,192		76,142
Due after five years through ten years	53,708		55,609
Due after ten years	101,747		104,379
Commercial mortgage and asset-backed securities	164,341		164,412
Residential mortgage-backed securities	136,924		135,971
Total fixed maturities	$	536,182	$	540,778

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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Net investment income

The following table presents the components of net investment income for the three months ended March 31, 2019 and 2018:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Interest:
Taxable bonds		$	3,067		$	1,761
Tax exempt municipal bonds		1,008			1,085
Cash equivalents and short-term investments		245			260
Dividends on equity securities		521			412
Gross investment income		4,841			3,518
Investment expenses		(326		)	(289		)
Net investment income		$	4,515		$	3,229

Realized investment gains and losses

The following table presents realized investment gains and losses for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed-maturity securities:
Realized gains	$	371		$	55
Realized losses	(79		)	—
Net realized gains from fixed-maturity securities	292			55
Equity securities:
Realized gains	4			57
Realized losses	(16		)	—
Net realized (losses) gains from equity securities	(12		)	57
Net realized investment gains	$	280		$	112

Change in net unrealized gains (losses) on fixed-maturity securities

For the three months ended March 31, 2019, the change in net unrealized gains for fixed-maturity securities was $8.6 million. For the three months ended March 31, 2018, the change in net unrealized losses for fixed-maturity securities was $6.1 million.

Insurance – statutory deposits

The Company had invested assets with a carrying value of $6.9 million on deposit with state regulatory authorities at March 31, 2019 and December 31, 2018.

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Payable for investments purchased

The Company recorded a payable for investments purchased, not yet settled, of $22.1 million at March 31, 2019. The payable balance was included in the "other liabilities" line item of the balance sheet and treated as a non-cash transaction for purposes of cash flow presentation. 

3.     Fair value measurements

Fair value was estimated for each class of financial instrument for which it was practical to estimate fair value. Fair value is defined as the price in the principal market that would be received for an asset 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 manager from third party pricing services, where available. For securities where the Company is unable to obtain fair values from a pricing service or broker, fair values are estimated using information obtained from the Company's investment manager. 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 manager that obtains fair values from third party pricing services, 2) discussing with the Company's investment manager its process for reviewing and validating pricing obtained from outside pricing services and 3) reviewing the security pricing received from the Company's investment manager and monitoring changes in unrealized gains and losses. 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 March 31, 2019 and December 31, 2018, by level within the fair value hierarchy.

	March 31, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	112	$	—	$	—	$	112
Obligations of states, municipalities and political subdivisions	—		130,160		—		130,160
Corporate and other securities	—		110,123		—		110,123
Commercial mortgage and asset-backed securities	—		164,412		—		164,412
Residential mortgage-backed securities	—		135,971		—		135,971
Total fixed maturities	112		540,666		—		540,778
Equity securities:
Exchange traded funds	43,834		—		—		43,834
Nonredeemable preferred stock	—		20,647		—		20,647
Total equity securities	43,834		20,647		—		64,481
Total	$	43,946	$	561,313	$	—	$	605,259

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	611	$	—	$	—	$	611
Obligations of states, municipalities and political subdivisions	—		154,600		—		154,600
Corporate and other securities	—		96,752		—		96,752
Commercial mortgage and asset-backed securities	—		149,867		—		149,867
Residential mortgage-backed securities	—		108,421		—		108,421
Total fixed maturities	611		509,640		—		510,251
Equity securities:
Exchange traded funds	38,987		—		—		38,987
Nonredeemable preferred stock	—		18,724		—		18,724
Total equity securities	38,987		18,724		—		57,711
Total	$	39,598	$	528,364	$	—	$	567,962

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There were no transfers into or out of Level 1 and Level 2 during the three months ended March 31, 2019. There were no assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2019 or December 31, 2018.

Due to the relatively short-term nature of cash and cash equivalents, short-term investments, receivables and payables, their carrying amounts are reasonable estimates of fair value.

4.     Deferred policy acquisition costs

The following table presents the amounts of policy acquisition costs deferred and amortized for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Balance, beginning of period	$	14,801		$	11,775
Policy acquisition costs deferred:
Direct commissions	12,363			9,377
Ceding commissions	(3,256		)	(2,541		)
Other underwriting and policy acquisition costs	965			809
Policy acquisition costs deferred	10,072			7,645
Amortization of net policy acquisition costs	(8,559		)	(6,652		)
Balance, end of period	$	16,314		$	12,768

5.     Underwriting, acquisition and insurance expenses

Underwriting, acquisition and insurance expenses for the three months ended March 31, 2019 and 2018 consist of the following:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Underwriting, acquisition and insurance expenses incurred:
Direct commissions		$	10,674		$	8,379
Ceding commissions		(2,938		)	(2,444		)
Other operating expenses		7,880			6,463
Total		$	15,616		$	12,398

Other operating expenses within underwriting, acquisition and insurance expenses include salaries, bonus and employee benefits expenses of $6.8 million and $5.0 million for the three months ended March 31, 2019 and 2018, respectively.

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6.    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, 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 $0.5 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively.

Restricted Stock Awards

During the first quarter of 2019, 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 one-year period. 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 all restricted stock activity under the equity compensation plans for the three months ended March 31, 2019 is as follows:

	For the Three Months Ended  March 31, 2019
	Number of Shares		Weighted Average Grant Date Fair Value per Share
Non-vested outstanding at the beginning of the period	92,465		$	52.98
Granted	7,020		$	55.56
Vested	(6,666	)	$	45.00
Forfeited	(1,305	)	$	53.60
Non-vested outstanding at the end of the period	91,514		$	53.75

As of March 31, 2019, the Company had $3.9 million of total unrecognized stock-based compensation expense expected to be charged to earnings over a weighted-average period of 3.0 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 vest 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 using the following assumptions:

15

Risk-free rate of return	1.26	%
Dividend yield	1.25	%
Expected share price volatility(1)	18.50	%
Expected life in years(2)	6.3 years

⁽¹⁾ Expected volatility was based on the Company’s competitors within the industry.

⁽²⁾ Expected life was calculated using the simplified method, which was an average of the contractual term of the option and its ordinary vesting period, as the Company did not have sufficient historical data for determining the expected term of our stock option awards.

A summary of option activity as of March 31, 2019, and changes during the period then ended is presented below:

	Number of Shares		Weighted-average exercise price		Weighted-average remaining years of contractual term	Aggregate intrinsic value (in thousands)
Outstanding at January 1, 2019	804,303		$	16.00
Granted	—		—
Forfeited	(12,600	)	16.00
Exercised	(37,308	)	16.00
Outstanding at March 31, 2019	754,395		$	16.00	7.3	$	39,659
Exercisable at March 31, 2019	302,629		$	16.00	7.3	$	15,909

The total intrinsic value of options exercised was $1.9 million and $1.0 million during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company had $0.8 million of total unrecognized stock-based compensation expense expected to be charged to earnings over a weighted-average period of 1.3 years.

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7.    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 consolidated financial statements:

	Three Months Ended March 31,
	2019		2018
	(in thousands, except per share data)
Net income	$	18,720	$	7,287
Weighted average common shares outstanding - basic	21,169		21,045
Effect of potential dilutive securities:
Conversion of stock options	568		581
Conversion of restricted stock	26		2
Weighted average common shares outstanding - diluted	21,763		21,628
Earnings per common share:
Basic	$	0.88	$	0.35
Diluted	$	0.86	$	0.34

There were no anti-dilutive stock awards for the three months ended March 31, 2019 or 2018.

8. 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 17.9% and 17.3% for the three months ended March 31, 2019 and 2018, respectively. The decrease in the effective tax rate in the first quarter of 2019 and the first quarter of 2018 was primarily due to stock options exercised and tax-exempt interest income relative to pre-tax income.

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9.     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:

	March 31,
	2019			2018
	(in thousands)
Net reserves for unpaid losses and loss adjustment expenses, beginning of year	$	313,763		$	267,493
Incurred losses and loss adjustment expenses:
Current year	40,128			30,183
Prior years	(6,396		)	(1,284		)
Total net losses and loss adjustment expenses incurred	33,732			28,899
Payments:
Current year	2,042			340
Prior years	17,955			17,516
Total payments	19,997			17,856
Net reserves for unpaid losses and loss adjustment expenses, end of period	327,498			278,536
Reinsurance recoverable on unpaid losses	57,627			49,673
Gross reserves for unpaid losses and loss adjustment expenses, end of period	$	385,125		$	328,209

During the three months ended March 31, 2019, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2018 developed favorably by $6.4 million. The favorable development was primarily attributable to the 2015 through 2018 accident years by $6.3 million, which resulted from reported losses emerging at a lower level than expected across most statutory lines of business.

During the three months ended March 31, 2018, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2017 developed favorably by $1.3 million. The favorable development was primarily attributable to the 2017 accident year of $2.5 million and the 2016 accident year of $1.2 million, which resulted from reported losses emerging at a lower level than expected. This favorable development was offset in part by adverse development from the 2011 through 2015 accident years of $2.4 million.

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10.     Reinsurance

The following table summarizes the effect of reinsurance on premiums written and earned for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Written:
Direct	$	84,563		$	63,847
Assumed	63			—
Ceded	(11,559		)	(8,756		)
Net written	$	73,067		$	55,091
Earned:
Direct	$	72,078		$	56,593
Assumed	57			—
Ceded	(10,644		)	(8,532		)
Net earned	$	61,491		$	48,061

Incurred losses and loss adjustment expenses were net of reinsurance (ceded incurred losses and loss adjustment expenses) of $4.3 million and $2.9 million for the three months ended March 31, 2019 and 2018, respectively. At March 31, 2019, reinsurance recoverables on paid and unpaid losses were $1.7 million and $57.6 million, respectively. At December 31, 2018, reinsurance recoverables on paid and unpaid losses were $1.4 million and $55.4 million, respectively.

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11.     Other comprehensive income (loss)

The following table summarizes the components of other comprehensive (loss) income for the three months ended March 31, 2019 and 2018:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Unrealized gains (losses) on fixed-maturity securities arising during the period, before income taxes:		$	8,873		$	(6,092	)
Income taxes		(1,863		)	1,279
Unrealized gains (losses) arising during the period, net of income taxes		7,010			(4,813		)
Less reclassification adjustment:
Net realized gains on fixed-maturity securities, before income taxes		292			55
Income taxes		(62		)	(12		)
Reclassification adjustment included in net income, net of income taxes		230			43
Other comprehensive income (loss)		$	6,780		$	(4,856	)

The sale of an available-for-sale fixed-maturity security results in amounts being reclassified from accumulated other comprehensive income 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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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The discussion and analysis below includes certain forward-looking statements that are subject to risks, uncertainties and other factors described in "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2018. 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 months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2019, 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, 2018.

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 three months of 2019, the percentage breakdown of our gross written premiums was 91.6% casualty and 8.4% property. Our underwriting divisions include construction, small business, excess casualty, energy, product liability, professional liability, allied health, general casualty, life sciences, management liability, commercial property, health care, environmental, inland marine, commercial insurance and public entity. We also write a small amount of homeowners insurance in the personal lines market, which in aggregate represented 4.1% of our gross written premiums in the first three months of 2019.

Components of our results of operations

Gross written premiums

Gross written premiums are the amount 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.

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

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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 and any decision we make to increase or decrease retention levels.

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 and 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, such as from changes in interest rates), the size of our investment portfolio is mainly a function of our invested equity capital along with premiums we receive from our insureds less payments on policyholder claims.

Net investment gains (losses)

Net 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, the unrealized gains and losses on our equity portfolio, as well as any "other-than-temporary" impairments recognized in earnings.

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; 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 that are directly related to the successful acquisition of those policies are deferred. The amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the policy life.

Other underwriting expenses represent the general and administrative expenses of our insurance business including employment costs, telecommunication and technology costs, the costs of our lease, and legal and auditing fees.

Income tax expense

Currently all of our income tax expense relates to federal income taxes. Our insurance subsidiary, Kinsale Insurance Company, is generally not subject to income taxes in the states in which it operates; however, our non-insurance subsidiaries are subject to state income taxes. 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.

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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 pre-tax income, excluding net investment income, realized investment gains and losses on investments, unrealized gains and losses equity securities, and other income and expenses. See "—Reconciliation of non-GAAP financial measures" for a reconciliation of net income to underwriting income in accordance with GAAP.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to net earned premiums, net of the effects of reinsurance.

Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to net earned premiums.

Combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Operating return on equity is net operating earnings, a non-GAAP financial measure, expressed as a percentage of average beginning and ending stockholders’ equity during the period. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to operating income.

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, before any deductions for fees and expenses, expressed as a percentage of average beginning and ending balances of those investments during the period.

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Three months ended March 31, 2019 compared to three months ended March 31, 2018

The following table summarizes our results of operations for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
($ in thousands)	2019			2018			Change			% Change
Gross written premiums	$	84,626		$	63,847		$	20,779		32.5	%
Ceded written premiums	(11,559		)	(8,756		)	(2,803		)	32.0	%
Net written premiums	$	73,067		$	55,091		$	17,976		32.6	%
Net earned premiums	$	61,491		$	48,061		$	13,430		27.9	%
Losses and loss adjustment expenses	33,732			28,899			4,833			16.7	%
Underwriting, acquisition and insurance expenses	15,616			12,398			3,218			26.0	%
Underwriting income (1)	12,143			6,764			5,379			79.5	%
Other expenses, net	(32		)	(11		)	(21		)	190.9	%
Net investment income	4,515			3,229			1,286			39.8	%
Net unrealized gains (losses) on equity securities	5,895			(1,279		)	7,174			(560.9	)%
Net realized gains on investments	280			112			168			150.0	%
Income before taxes	22,801			8,815			13,986			158.7	%
Income tax expense	4,081			1,528			2,553			167.1	%
Net income	$	18,720		$	7,287		$	11,433		156.9	%
Annualized return on equity	27.1		%	12.2		%
Annualized operating return on equity(2)	20.0		%	13.7		%
Loss ratio	54.9		%	60.1		%
Expense ratio	25.4		%	25.8		%
Combined ratio	80.3		%	85.9		%

⁽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⁾Operating return on equity is net operating earnings, a non-GAAP financial measure, expressed as a percentage of average beginning and ending stockholders’ equity during the period. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to operating income.

Net income was $18.7 million for the three months ended March 31, 2019 compared to $7.3 million for the three months ended March 31, 2018, an increase of 156.9%. The increase in net income for the first three months of 2019 over the first three months of 2018 was due to higher earned premiums, resulting from strong growth in broker submissions across substantially all lines of business combined with a favorable and improving E&S market, higher returns on our investment portfolio and higher favorable development on loss reserves related to prior accident years.

Underwriting income was $12.1 million for the three months ended March 31, 2019 compared to $6.8 million for the three months ended March 31, 2018, an increase of 79.5%. The corresponding combined ratios were 80.3% for the three months ended March 31, 2019 compared to 85.9% for the three months ended March 31, 2018. The increase in our underwriting income in the first three months of 2019 compared to the first three months of 2018, was due to higher favorable development on loss reserves from prior accident years and growth in the business quarter over quarter combined with a favorable and improving E&S market.

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Premiums

Our gross written premiums were $84.6 million for the three months ended March 31, 2019 compared to $63.8 million for the three months ended March 31, 2018, an increase of $20.8 million, or 32.5%. The increase in gross written premiums for the first three months of 2019 over the same period last year was due to higher submission activity across substantially all lines of business combined with a favorable and improving E&S market. The average premium on a policy written was approximately $8,000 in the first three months of 2019 and 2018. Excluding our personal lines insurance, which has a relatively low premium per policy written, the average premium on a policy written was approximately $10,400 for the first three months of 2019 and $10,300 for the first three months of 2018.

Net written premiums increased by $18.0 million, or 32.6%, to $73.1 million for the three months ended March 31, 2019 from $55.1 million for the three months ended March 31, 2018. The increase in net written premiums for the first three months of 2019 compared to the same period last year was primarily due to higher gross written premiums. The net retention ratio was 86.3% for both the three months ended March 31, 2019 and 2018.

Net earned premiums increased by $13.4 million, or 27.9%, to $61.5 million for the three months ended March 31, 2019 from $48.1 million for the three months ended March 31, 2018 due to growth in gross written premiums.

Loss ratio

The loss ratio was 54.9% for the three months ended March 31, 2019 compared to 60.1% for the three months ended March 31, 2018. The decrease in the loss ratio in the first three months of 2019 compared to the first three months of 2018 was due primarily to higher favorable development on loss reserves from prior accident years.

During the first three months of 2019 and 2018, the overall favorable development on loss reserves from prior accident years was primarily due to reported losses emerging at lower levels than expected. During the three months ended March 31, 2019, prior accident years developed favorably by $6.4 million, of which $4.8 million was attributable to accident years 2017 and 2018. During the three months ended March 31, 2018, loss reserves for prior accident years developed favorably by $1.3 million, which was largely attributable to accident years 2016 and 2017 of $3.7 million. This favorable development in 2018 was offset in part by adverse development in the accident years 2011 through 2015 of $2.4 million, resulting from several large claims.

The following table summarizes the loss ratios for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019					2018
($ in thousands)	Losses and Loss Adjustment Expenses			% of Earned Premiums		Losses and Loss Adjustment Expenses			% of Earned Premiums
Loss ratio:
Current accident year before catastrophe losses	$	40,098		65.2	%	$	30,183		62.8	%
Current year catastrophe losses	30			0.1	%	—			—	%
Effect of prior year development	(6,396		)	(10.4	)%	(1,284		)	(2.7	)%
Total	$	33,732		54.9	%	$	28,899		60.1	%

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Expense ratio

The following table summarizes the components of the expense ratio for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019					2018
($ in thousands)	Underwriting Expenses			% of Earned Premiums		Underwriting Expenses			% of Earned Premiums
Commissions incurred:
Direct	$	10,674		17.4	%	$	8,379		17.4	%
Ceding	(2,938		)	(4.8	)%	(2,444		)	(5.1	)%
Net commissions incurred	7,736			12.6	%	5,935			12.3	%
Other underwriting expenses	7,880			12.8	%	6,463			13.5	%
Underwriting, acquisition and insurance expenses	$	15,616		25.4	%	$	12,398		25.8	%

The expense ratio was 25.4% for the three months ended March 31, 2019 compared to 25.8% for the three months ended March 31, 2018. The decrease in the other underwriting expense ratio for the three months ended March 31, 2019 compared to the same period last year reflected the benefit of higher net earned premiums without a proportional increase in total other underwriting expenses resulting from management's focus on controlling costs. Direct commissions paid as a percent of gross written premiums was 14.6% for the three months ended March 31, 2019 and 14.7% for the three months ended March 31, 2018.

Investing results

Our net investment income increased by 39.8% to $4.5 million for the three months ended March 31, 2019 from $3.2 million for the three months ended March 31, 2018. This increase in the first three months of 2019 compared to the same period last year was primarily due to growth in our investment portfolio balance generated from the investment of excess operating funds since March 31, 2018 and from higher gross investment returns.

The following table summarizes net investment income and net realized and unrealized investment gains and losses for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
($ in thousands)	2019			2018			Change			% Change
Interest from fixed-maturity securities	$	4,075		$	2,846		$	1,229		43.2	%
Dividends from equity securities	521			412			109			26.5	%
Other	245			260			(15		)	(5.8	)%
Gross investment income	4,841			3,518			1,323			37.6	%
Investment expenses	(326		)	(289		)	(37		)	12.8	%
Net investment income	4,515			3,229			1,286			39.8	%
Net unrealized gains (losses) on equity securities	5,895			(1,279		)	7,174			(560.9	)%
Net realized gains on investments	280			112			168			150.0	%
Total	$	10,690		$	2,062		$	8,628		418.4	%

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Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 3.2% for the three months ended March 31, 2019, compared to 2.7% for the three months ended March 31, 2018.

We perform quarterly reviews of all available-for-sale securities within our investment portfolio to determine whether any other-than-temporary impairment has occurred. Management concluded that there were no other-than-temporary impairments from available-for-sale investments for the three months ended March 31, 2019 or 2018.

Income tax expense

Our income tax expense was $4.1 million for the three months ended March 31, 2019 compared to $1.5 million for the three months ended March 31, 2018. Our effective tax rate was approximately 17.9% for the three months ended March 31, 2019 compared to 17.3% for the three months ended March 31, 2018. The effective tax rates were lower than the federal statutory rate of 21% due to the tax benefits from the exercise of stock options and from income generated by certain tax-advantaged investments.

Return on equity

Our annualized return on equity was 27.1% for the three months ended March 31, 2019 compared to 12.2% for the three months ended March 31, 2018. Our annualized operating return on equity was 20.0% for the three months ended March 31, 2019 compared to 13.7% for the three months ended March 31, 2018. The increase in annualized operating return on equity for the three months ended March 31, 2019 compared to the prior-year period was due to a number of factors, including growth in the business combined with a favorable and improving E&S market, higher overall returns on the investment portfolio and higher favorable development on loss reserves from prior accident years.

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.

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.

In January 2019, we purchased land for $2.5 million in Henrico County, Virginia for the development of a new corporate headquarters. We are currently targeting a third quarter 2020 completion date. The project is estimated to cost approximately $50 million to $55 million, substantially all of which we expect will be capitalized. We expect to fund the project through a combination of existing cash flows from operations and debt financing.

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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, rent 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 three months ended March 31, 2019 and 2018 were:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Cash and cash equivalents provided by (used in):
Operating activities	$	33,804		$	21,437
Investing activities	(4,920		)	(45,597		)
Financing activities	(1,099		)	(928		)
Change in cash and cash equivalents	$	27,785		$	(25,088	)

Net cash provided by operating activities was approximately $33.8 million for the threemonths ended March 31, 2019, compared to $21.4 million for the same period in 2018. This increase was largely driven by higher premium volume, the timing of claim payments and reinsurance recoveries, and changes in operating assets and liabilities.

Net cash used in investing activities was $4.9 million for the three months ended March 31, 2019, compared to $45.6 million for the three months ended March 31, 2018. Net cash used in investing activities during the first three months of 2019 reflected purchases of fixed-maturity securities of $43.0 million, comprised of asset and mortgage-backed securities and corporate bonds. During the first three months of 2019, we received proceeds of $28.4 million from sales of fixed-maturity securities, principally municipal bonds, and $14.5 million from redemptions of corporate bonds and asset and mortgage-backed securities. During the three months ended March 31, 2019, purchases and sales of equity securities were $1.8 million and $0.9 million, respectively, largely related to non-redeemable preferred stocks. In addition, net cash used in investing activities included the purchase of land for $2.5 million in anticipation of developing a new corporate headquarters.

Cash used in investing activities during the first three months of 2018 reflected purchases of fixed-income securities of $82.6 million, principally corporate bonds and asset-backed securities. In addition, we purchased $3.2 million of equity securities during the first three months of 2018, principally exchange traded funds (ETFs). During the first quarter of 2018, we received proceeds of $39.3 million from maturities and sales of fixed-maturity securities and $0.9 million from the sale of an intermediate-term bond ETF.

During the quarter ended March 31, 2019, cash used in financing activities reflected dividends paid of $0.08 per common share, or $1.7 million in aggregate. During the quarter ended March 31, 2018, cash used in financing activities primarily reflected dividends paid of $0.07 per common share, or $1.5 million in aggregate. Proceeds received from the exercise of stock options were $0.6 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively.

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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 contracts and excess of loss contracts. 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 use facultative reinsurance coverage on a limited basis. Facultative coverage refers to a reinsurance contract on individual risks as opposed to a group or class of business. It is used for a variety of reasons, including supplementing the limits provided by the treaty coverage or covering risks or perils excluded from treaty reinsurance.

The following is a summary of our significant reinsurance programs as of March 31, 2019:

Line of Business Covered	Company Policy Limit	Reinsurance Coverage	Company Retention
Property - per risk	Up to $10.0 million per risk	$9.0 million excess of $1.0 million	$1.0 million per occurrence
Property - catastrophe (1)	N/A	$45.0 million excess of $5.0 million	$5.0 million per catastrophe
Primary casualty (2)	Up to $10.0 million per occurrence	$9.0 million excess of $1.0 million	$1.0 million per occurrence
Excess casualty (3)	Up to $10.0 million per occurrence	Variable quota share	$1.5 million per occurrence except as described in note (3) below

(1) 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 provision, the maximum aggregate loss recovery limit is $90 million and is in addition to the per-occurrence coverage provided by our facultative and other treaty coverages. 

(2) Reinsurance is not applicable to any individual policy with a per occurrence limit of $1.0 million or less.

(3) For policies with a per occurrence limit higher than $1.0 million, the quota-share ceding percentage varies such that the retention is always $1.5 million or less. For example, for a $2.0 million limit excess policy, our retention would be 75%, whereas for a $10.0 million limit excess policy, our retention would be 15%. For policies for which we also write an underlying primary limit, the retention on the primary and excess policy combined would not exceed $1.5 million.

At each renewal, we consider any plans to change the underlying insurance coverage we offer, as well as updated loss activity, the level of our capital and surplus, changes in our risk appetite and the cost and availability of reinsurance treaties.

Reinsurance contracts do not relieve us from our obligations to policyholders. Failure of the reinsurer to honor its obligations could result in losses to us, and if such an event occurred, we would establish an allowance for those amounts considered uncollectible. 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. AtMarch 31, 2019, all reinsurance contracts that our insurance subsidiary was a party to

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were with companies with A.M. Best ratings of "A" (Excellent) or better. As of March 31, 2019, we have never had a loss for uncollectible reinsurance.

Ratings

Kinsale Insurance Company has a financial strength rating of "A-" (Excellent) with a positive outlook from A.M. Best. A.M. Best assigns 16 ratings to insurance companies, which currently range from "A++" (Superior) to "F" (In Liquidation). "A-" (Excellent) is the fourth 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.

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 March 31, 2019, total stockholders' equity was $288.9 million and tangible stockholders' equity was $286.1 million, compared to total stockholders' equity of $264.0 million and tangible stockholders' equity $261.2 million at December 31, 2018. The increases in both total and tangible stockholders' equity over the prior year-end balances were primarily due to profits generated during the period, an increase in unrealized gains on available-for-sale investments, net of taxes, and activity related to stock-based compensation plans, offset in part by the payment of dividends.

Tangible stockholders’ equity is a non-GAAP financial measure. We define tangible stockholders’ equity as 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 March 31, 2019 and December 31, 2018, reconciles to tangible stockholders' equity as follows:

	March 31, 2019		December 31, 2018
	(in thousands)
Stockholders' equity	$	288,889	$	263,986
Less: intangible assets, net of deferred taxes	2,795		2,795
Tangible stockholders' equity	$	286,094	$	261,191

Investment portfolio

AtMarch 31, 2019, our cash and invested assetsof $708.1 millionconsisted of fixed-maturity securities, cash and cash equivalents and equity securities. At March 31, 2019, the majority of the investment portfolio was comprised of fixed-maturity securities of $540.8 million 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 March 31, 2019, we also held $102.9 million of cash and cash equivalents and $64.5 million of equity securities, which were comprised of ETFs and non-redeemable preferred stock. Our fixed-maturity securities, including cash equivalents, had a weighted average duration of 3.9 years at March 31, 2019 and December 31, 2018 and an average rating of "AA" at March 31, 2019 and December 31, 2018.

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At March 31, 2019 and December 31, 2018, the amortized cost and fair value on fixed-maturity securities were as follows:

	March 31, 2019						December 31, 2018
	Amortized Cost		Estimated Fair Value		% of Total Fair Value		Amortized Cost		Estimated Fair Value		% of Total Fair Value
	($ in thousands)
Fixed-maturity securities:
U.S. Treasury securities and obligations of U.S. government agencies	$	110	$	112	—	%	$	610	$	611	0.1	%
Obligations of states, municipalities and political subdivisions	126,050		130,160		24.1	%	153,884		154,600		30.3	%
Corporate and other securities	108,757		110,123		20.4	%	97,889		96,752		19.0	%
Asset-backed securities	164,341		164,412		30.4	%	151,137		149,867		29.4	%
Residential mortgage-backed securities	136,924		135,971		25.1	%	110,717		108,421		21.2	%
Total fixed-maturity securities	$	536,182	$	540,778	100.0	%	$	514,237	$	510,251	100.0	%

The table below summarizes the credit quality of our fixed-maturity securities at March 31, 2019 and December 31, 2018, as rated by Standard & Poor’s Financial Services, LLC ("Standard & Poor's"):

	March 31, 2019				December 31, 2018
Standard & Poor’s or Equivalent Designation	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	($ in thousands)
AAA	$	149,998	27.7	%	$	133,028	26.1	%
AA	207,870		38.4	%	199,026		39.0	%
A	104,013		19.2	%	108,972		21.3	%
BBB	69,308		12.9	%	61,037		12.0	%
Below BBB and unrated	9,589		1.8	%	8,188		1.6	%
Total	$	540,778	100.0	%	$	510,251	100.0	%

The amortized cost and fair value of our fixed-maturity securities summarized by contractual maturity as of March 31, 2019 and December 31, 2018, were as follows:

	March 31, 2019						December 31, 2018
	Amortized Cost		Estimated Fair Value		% of Total Fair Value		Amortized Cost		Estimated Fair Value		% of Total Fair Value
	($ in thousands)
Due in one year or less	$	4,270	$	4,265	0.8	%	$	10,283	$	10,252	2.0	%
Due after one year through five years	75,192		76,142		14.1	%	67,670		67,426		13.2	%
Due after five years through ten years	53,708		55,609		10.3	%	55,725		56,235		11.0	%
Due after ten years	101,747		104,379		19.3	%	118,705		118,050		23.1	%
Asset-backed securities	164,341		164,412		30.4	%	151,137		149,867		29.4	%
Residential mortgage-backed securities	136,924		135,971		25.1	%	110,717		108,421		21.3	%
Total fixed maturities	$	536,182	$	540,778	100.0	%	$	514,237	$	510,251	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.

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As of March 31, 2019, approximately 6.2% of our total cash and investments were invested in ETFs. At March 31, 2019 and December 31, 2018, our ETF balances were comprised of the following funds:

	March 31, 2019				December 31, 2018
Fund	Fair Value		% of Total		Fair Value		% of Total
	($ in thousands)
Domestic stock market fund	$	22,684	51.8	%	$	19,899	51.0	%
Dividend yield equity fund	10,341		23.6	%	9,344		24.0	%
Foreign stock market fund	9,736		22.2	%	8,817		22.6	%
Small-cap index	1,073		2.4	%	927		2.4	%
Total	$	43,834	100.0	%	$	38,987	100.0	%

As ofMarch 31, 2019, approximately2.9%of our total cash and investments were invested in non-redeemable preferred stock. A summary of these securities by industry segment is shown below as of March 31, 2019 and December 31, 2018:

	March 31, 2019				December 31, 2018
Industry	Fair Value		% of Total		Fair Value		% of Total
	($ in thousands)
Financial	$	15,376	74.5	%	$	14,618	78.1	%
Utilities	3,635		17.6	%	2,734		14.6	%
Industrials and other	1,636		7.9	%	1,372		7.3	%
Total	$	20,647	100.0	%	$	18,724	100.0	%

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$6.9 million at March 31, 2019 and December 31, 2018.

Off-balance sheet arrangements

We do not have any material off-balance sheet arrangements at March 31, 2019.

Reconciliation of non-GAAP financial measures

Reconciliation of underwriting income

Underwriting income is defined as pre-tax income excluding net investment income, realized gains and losses on investments, unrealized gains and losses on equity securities, and other income and expenses. 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.

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Net income for the three months ended March 31, 2019 and 2018, reconciles to underwriting income as follows:

	Three Months Ended March 31,
(in thousands)	2019			2018
Net income	$	18,720		$	7,287
Income tax expense	4,081			1,528
Income before income taxes	22,801			8,815
Other expenses	36			14
Net investment income	(4,515		)	(3,229		)
Net unrealized (gains) losses on equity securities	(5,895		)	1,279
Net realized gains on investments	(280		)	(112		)
Other income	(4		)	(3		)
Underwriting income	$	12,143		$	6,764

Reconciliation of net operating earnings

Net operating earnings exclude the effect of realized investment gains and losses and unrealized gains and losses on equity securities, after taxes. Management believes the exclusion of these items provides a more useful comparison of the Company's 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 months ended March 31, 2019 and 2018, reconciles to net operating earnings as follows:

	Three Months Ended March 31,
(in thousands)	2019			2018
Net operating earnings:
Net income	$	18,720		$	7,287
Net unrealized (gains) losses on equity securities, after taxes	(4,657		)	1,010
Net realized gains on investments, after taxes	(221		)	(88		)
Net operating earnings	$	13,842		$	8,209
Operating return on equity:
Average equity (1)	$	276,438		$	239,020
Annualized return on equity (2)	27.1		%	12.2		%
Annualized operating return on equity (3)	20.0		%	13.7		%

⁽¹⁾ Computed by adding the total equity as of the date indicated to the prior year-end total and dividing by two.

⁽²⁾ Annualized return on equity represents net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

⁽³⁾ 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.

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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 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. Actual results may differ materially from the estimates and assumptions used in preparing the 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, 2018.

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, 2018.

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, 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.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting during the first quarter of 2019 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 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, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 6. Exhibits

Exhibit Number	Description
31.1	Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* 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.

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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: May 2, 2019	By:	/s/ Michael P. Kehoe
		Michael P. Kehoe President and Chief Executive Officer
Date: May 2, 2019	By:	/s/ Bryan P. Petrucelli
		Bryan P. Petrucelli Senior Vice President, Chief Financial Officer and Treasurer

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EX-31.1

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.

May 2, 2019	/s/ Michael P. Kehoe
	Michael P. Kehoe
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

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.

May 2, 2019	/s/ Bryan P. Petrucelli
	Bryan P. Petrucelli
	Senior Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

EX-32.1

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 March 31, 2019 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.

May 2, 2019	/s/ Michael P. Kehoe
	Michael P. Kehoe
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

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 March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Bryan P. Petrucelli, Senior 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.

May 2, 2019	/s/ Bryan P. Petrucelli
	Bryan P. Petrucelli
	Senior Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

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Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2019	Apr. 26, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Kinsale Capital Group, Inc.
Trading Symbol	KNSL
Entity Central Index Key	0001669162
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		21,286,456

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Fixed-maturity securities available for sale, at fair value (amortized cost: $536,182 in 2019; $514,237 in 2018)	$ 540,778	$ 510,251
Equity securities, at fair value (cost: $56,926 in 2019 $56,051 in 2018)	64,481	57,711
Total investments	605,259	567,962
Cash and cash equivalents	102,874	75,089
Investment income due and accrued	3,587	3,783
Premiums receivable, net	30,941	24,253
Reinsurance recoverables	59,334	56,788
Ceded unearned premiums	16,987	16,072
Deferred policy acquisition costs, net of ceding commissions	16,314	14,801
Intangible assets	3,538	3,538
Deferred income tax asset, net	6,928	7,176
Other assets	7,111	3,601
Total assets	852,873	773,063
Liabilities
Reserves for unpaid losses and loss adjustment expenses	385,125	369,152
Unearned premiums	140,741	128,250
Payable to reinsurers	5,532	4,565
Accounts payable and accrued expenses	4,840	7,090
Other liabilities	27,746	20
Total liabilities	563,984	509,077
Stockholders' Equity
Common stock, $0.01 par value, 400,000,000 shares authorized, 21,284,527 and 21,241,504 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	213	212
Additional paid-in capital	159,589	158,485
Retained earnings	123,563	106,545
Accumulated other comprehensive (loss) income	5,524	(1,256)
Total stockholders’ equity	288,889	263,986
Total liabilities and stockholders’ equity	$ 852,873	$ 773,063

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Consolidated Balance Sheet (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets [Abstract]
Fixed-maturity securities available-for-sale - amortized cost	$ 536,182	$ 514,237
Equity securities - cost	$ 56,926	$ 56,051
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)	21,284,527	21,241,504
Common stock, shares outstanding (in shares)	21,284,527	21,241,504

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Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Gross written premiums	$ 84,626	$ 63,847
Ceded written premiums	(11,559)	(8,756)
Net written premiums	73,067	55,091
Change in unearned premiums	(11,576)	(7,030)
Net earned premiums	61,491	48,061
Net investment income	4,515	3,229
Net unrealized gains (losses) on equity securities	5,895	(1,279)
Realized gains on investments	280	112
Other income	4	3
Total revenues	72,185	50,126
Expenses:
Losses and loss adjustment expenses	33,732	28,899
Underwriting, acquisition and insurance expenses	15,616	12,398
Other expenses	36	14
Total expenses	49,384	41,311
Income before income taxes	22,801	8,815
Total income tax expense	4,081	1,528
Net income	18,720	7,287
Other comprehensive income (loss):
Change in unrealized gains (losses) on available-for-sale investments, net of taxes of $1,802 in 2019 and $(1,291) in 2018	6,780	(4,856)
Total comprehensive income	$ 25,500	$ 2,431
Earnings per share:
Basic	$ 0.88	$ 0.35
Diluted	$ 0.86	$ 0.34
Weighted average shares outstanding
Basic	21,169	21,045
Diluted	21,763	21,628

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Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]
Income taxes on change in unrealized gains (losses) on available-for-sale investments	$ 1,801	$ (1,291)

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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 [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-01 [Member]	$ 0			$ 6,490	$ (6,490)
Balance, shares at Dec. 31, 2017	21,036,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (shares)	36,000
Balance, shares at Mar. 31, 2018	21,072,000
Balance at Dec. 31, 2017	$ 238,189	$ 210	$ 155,082	73,502	9,395
Balance (Accounting Standards Update 2016-01 [Member]) at Dec. 31, 2017				79,992	2,905
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification of tax effects resulting from the TCJA	0
Reclassification of tax effects resulting from the TCJA | Accounting Standards Update 2018-02 [Member]				(1,308)	1,308
Issuance of stock under stock-based compensation plan	545	0	545
Stock-based compensation	158		158
Dividends declared	(1,473)			(1,473)
Other comprehensive income (loss)	(4,856)				(4,856)
Net income	7,287			7,287
Balance at Mar. 31, 2018	$ 239,850	210	155,785	84,498	(643)
Balance, shares at Dec. 31, 2018	21,241,504
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (shares)	43,000
Balance, shares at Mar. 31, 2019	21,284,527
Balance at Dec. 31, 2018	$ 263,986	212	158,485	106,545	(1,256)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock under stock-based compensation plan	598	1	597
Stock-based compensation	507		507
Dividends declared	(1,702)			(1,702)
Other comprehensive income (loss)	6,780				6,780
Net income	18,720			18,720
Balance at Mar. 31, 2019	$ 288,889	$ 213	$ 159,589	$ 123,563	$ 5,524

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends declared, per share	$ 0.08	$ 0.07

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net cash provided by operating activities	$ 33,804	$ 21,437
Investing Activities
Purchase of property and equipment	(3,925)	(94)
Purchases – fixed-maturity securities	(43,040)	(82,587)
Purchases - equity securities	(1,831)	(3,168)
Sales – fixed-maturity securities	28,416	3,913
Sales - equity securities	915	982
Maturities and calls – fixed-maturity securities	14,545	35,357
Net cash used in investing activities	(4,920)	(45,597)
Financing Activities
Proceeds from stock options exercised	597	545
Dividends paid	(1,696)	(1,473)
Net cash used in financing activities	(1,099)	(928)
Net change in cash and cash equivalents	27,785	(25,088)
Cash and cash equivalents at beginning of year	75,089	81,747
Cash and cash equivalents at end of period	$ 102,874	$ 56,659

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of significant accounting policies

Basis of presentation

The accompanying 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. For a more complete description of the Company’s business and accounting policies, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its wholly owned subsidiaries (the "Company") included in the Annual Report on Form 10-K for the year ended December 31, 2018. 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 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. Management periodically reviews its estimates and assumptions.

Recently adopted accounting pronouncements

ASU 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to improve the financial reporting of leasing transactions. Under this ASU, lessees will recognize a right-of-use ("ROU") asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of 12 months or less. The lessee’s income statement treatment for leases will vary depending on the nature and classification of the lease. Effective January 1, 2019, the Company adopted this ASU and recorded a ROU asset and corresponding lease liability of approximately $0.9 million. The ROU and operating lease liability are included in "other assets" and "other liabilities," respectively, in the accompanying consolidated balance sheet.

The Company elected the package of practical expedients permitted under the adoption of the new standard, which allowed the Company to account for existing leases under their current classification, as well as omit any new costs classified as initial direct costs, under the new standard. This election kept the existing agreements as operating leases. The Company also elected the practical expedient allowing an accounting policy election by class of underlying asset, to account for separate lease and nonlease components as a single lease component. In addition, the Company has implemented the necessary internal controls relating to the adoption of the standard.

ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. Effective January 1, 2019, the Company adopted ASU 2017-08 using a modified retrospective approach. The adoption of ASU 2017-08 did not have a material impact on the Company's financial statements.

Prospective accounting pronouncements

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326)" to provide more useful information about the expected credit losses on financial instruments. Current GAAP delays the recognition of credit losses until it is probable a loss has been incurred. The update will require a financial asset measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses. However, the amendments would limit the amount of the allowance to the amount by which fair value is below amortized cost. The measurement of credit losses on available-for-sale securities is similar under current GAAP, but the update requires the use of the allowance account through which amounts can be reversed, rather than through an irreversible write-down. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. Upon adoption, the update will be applied using the modified-retrospective approach, by which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period presented. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

There are no other prospective accounting standards which, upon their effective date, would have a material impact on the Company's consolidated financial statements.

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Investments

3 Months Ended

Mar. 31, 2019

Investments [Abstract]

Investments

Investments

Available-for-sale investments

The following tables summarize the available-for-sale investments at March 31, 2019 and December 31, 2018:

	March 31, 2019
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	110	$	2	$	—		$	112
Obligations of states, municipalities and political subdivisions	126,050		4,164		(54		)	130,160
Corporate and other securities	108,757		1,676		(310		)	110,123
Commercial mortgage and asset-backed securities	164,341		912		(841		)	164,412
Residential mortgage-backed securities	136,924		774		(1,727		)	135,971
Total available-for-sale investments	$	536,182	$	7,528	$	(2,932	)	$	540,778

	December 31, 2018
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	610	$	2	$	(1	)	$	611
Obligations of states, municipalities and political subdivisions	153,884		2,010		(1,294		)	154,600
Corporate and other securities	97,889		264		(1,401		)	96,752
Commercial mortgage and asset-backed securities	151,137		252		(1,522		)	149,867
Residential mortgage-backed securities	110,717		354		(2,650		)	108,421
Total available-for-sale investments	$	514,237	$	2,882	$	(6,868	)	$	510,251

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 securities’ fair value is deemed to be an other-than-temporary impairment ("OTTI"). The Company considers a number of factors in completing its OTTI review, including the length of time and 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 change in a security’s value caused by a change in the market or interest rate environment does not constitute an OTTI, but rather a temporary decline in fair value.

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 the 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 considered to be other-than-temporary 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, resulting in a new cost basis for the security. If the decline in fair value of a fixed-maturity security below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. 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 OTTI, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the noncredit portion of the OTTI, which is recognized in other comprehensive income.

The following tables summarize gross unrealized losses and fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position:

	March 31, 2019
	Less than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
	(in thousands)
Fixed maturities:
Obligations of states, municipalities and political subdivisions	$	—	$	—		$	9,756	$	(54	)	$	9,756	$	(54	)
Corporate and other securities	2,313		(15		)	12,143		(295		)	14,456		(310		)
Commercial mortgage and asset-backed securities	60,061		(532		)	29,952		(309		)	90,013		(841		)
Residential mortgage-backed securities	20,391		(41		)	58,361		(1,686		)	78,752		(1,727		)
Total available-for-sale investments	$	82,765	$	(588	)	$	110,212	$	(2,344	)	$	192,977	$	(2,932	)

At March 31, 2019, the Company held 152 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $193.0 million and gross unrealized losses of $2.9 million. Of these securities, 118 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 any other-than-temporary impairment has occurred. Based on the Company's review as of March 31, 2019, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At March 31, 2019, 85.4% 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. For the three months ended March 31, 2019, the Company concluded that there were no other-than-temporary impairments from fixed-maturity securities with unrealized losses.

	December 31, 2018
	Less than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	—		$	499	$	(1	)	$	499	$	(1	)
Obligations of states, municipalities and political subdivisions	42,718		(440		)	34,326		(854		)	77,044		(1,294		)
Corporate and other securities	62,045		(890		)	12,092		(511		)	74,137		(1,401		)
Commercial mortgage and asset-backed securities	93,247		(1,017		)	25,746		(505		)	118,993		(1,522		)
Residential mortgage-backed securities	24,571		(155		)	55,638		(2,495		)	80,209		(2,650		)
Total available-for-sale investments	$	222,581	$	(2,502	)	$	128,301	$	(4,366	)	$	350,882	$	(6,868	)

At December 31, 2018, the Company held 317 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $350.9 million and gross unrealized losses of $6.9 million. Of those securities, 158 were in a continuous unrealized loss position for greater than one year. Based on the Company's review as of December 31, 2018, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At December 31, 2018, 86.4% 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. For the year ended December 31, 2018, the Company concluded that there were no other-than-temporary impairments from fixed-maturity securities with unrealized losses.

Contractual maturities of available-for-sale fixed-maturity securities

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at March 31, 2019 are summarized, by contractual maturity, as follows:

	March 31, 2019
	Amortized		Estimated
	Cost		Fair Value
	(in thousands)
Due in one year or less	$	4,270	$	4,265
Due after one year through five years	75,192		76,142
Due after five years through ten years	53,708		55,609
Due after ten years	101,747		104,379
Commercial mortgage and asset-backed securities	164,341		164,412
Residential mortgage-backed securities	136,924		135,971
Total fixed maturities	$	536,182	$	540,778

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.

Net investment income

The following table presents the components of net investment income for the three months ended March 31, 2019 and 2018:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Interest:
Taxable bonds		$	3,067		$	1,761
Tax exempt municipal bonds		1,008			1,085
Cash equivalents and short-term investments		245			260
Dividends on equity securities		521			412
Gross investment income		4,841			3,518
Investment expenses		(326		)	(289		)
Net investment income		$	4,515		$	3,229

Realized investment gains and losses

The following table presents realized investment gains and losses for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed-maturity securities:
Realized gains	$	371		$	55
Realized losses	(79		)	—
Net realized gains from fixed-maturity securities	292			55
Equity securities:
Realized gains	4			57
Realized losses	(16		)	—
Net realized (losses) gains from equity securities	(12		)	57
Net realized investment gains	$	280		$	112

Change in net unrealized gains (losses) on fixed-maturity securities

For the three months ended March 31, 2019, the change in net unrealized gains for fixed-maturity securities was $8.6 million. For the three months ended March 31, 2018, the change in net unrealized losses for fixed-maturity securities was $6.1 million.

Insurance – statutory deposits

The Company had invested assets with a carrying value of $6.9 million on deposit with state regulatory authorities at March 31, 2019 and December 31, 2018.

Payable for investments purchased

The Company recorded a payable for investments purchased, not yet settled, of $22.1 million at March 31, 2019. The payable balance was included in the "other liabilities" line item of the balance sheet and treated as a non-cash transaction for purposes of cash flow presentation.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair value measurements

Fair value was estimated for each class of financial instrument for which it was practical to estimate fair value. Fair value is defined as the price in the principal market that would be received for an asset 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 manager from third party pricing services, where available. For securities where the Company is unable to obtain fair values from a pricing service or broker, fair values are estimated using information obtained from the Company's investment manager. 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 manager that obtains fair values from third party pricing services, 2) discussing with the Company's investment manager its process for reviewing and validating pricing obtained from outside pricing services and 3) reviewing the security pricing received from the Company's investment manager and monitoring changes in unrealized gains and losses. 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 March 31, 2019 and December 31, 2018, by level within the fair value hierarchy.

	March 31, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	112	$	—	$	—	$	112
Obligations of states, municipalities and political subdivisions	—		130,160		—		130,160
Corporate and other securities	—		110,123		—		110,123
Commercial mortgage and asset-backed securities	—		164,412		—		164,412
Residential mortgage-backed securities	—		135,971		—		135,971
Total fixed maturities	112		540,666		—		540,778
Equity securities:
Exchange traded funds	43,834		—		—		43,834
Nonredeemable preferred stock	—		20,647		—		20,647
Total equity securities	43,834		20,647		—		64,481
Total	$	43,946	$	561,313	$	—	$	605,259

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	611	$	—	$	—	$	611
Obligations of states, municipalities and political subdivisions	—		154,600		—		154,600
Corporate and other securities	—		96,752		—		96,752
Commercial mortgage and asset-backed securities	—		149,867		—		149,867
Residential mortgage-backed securities	—		108,421		—		108,421
Total fixed maturities	611		509,640		—		510,251
Equity securities:
Exchange traded funds	38,987		—		—		38,987
Nonredeemable preferred stock	—		18,724		—		18,724
Total equity securities	38,987		18,724		—		57,711
Total	$	39,598	$	528,364	$	—	$	567,962

There were no transfers into or out of Level 1 and Level 2 during the three months ended March 31, 2019. There were no assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2019 or December 31, 2018.

Due to the relatively short-term nature of cash and cash equivalents, short-term investments, receivables and payables, their carrying amounts are reasonable estimates of fair value.

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Deferred Policy Acquisition Costs

3 Months Ended

Mar. 31, 2019

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 months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Balance, beginning of period	$	14,801		$	11,775
Policy acquisition costs deferred:
Direct commissions	12,363			9,377
Ceding commissions	(3,256		)	(2,541		)
Other underwriting and policy acquisition costs	965			809
Policy acquisition costs deferred	10,072			7,645
Amortization of net policy acquisition costs	(8,559		)	(6,652		)
Balance, end of period	$	16,314		$	12,768

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Underwriting, Acquisition and Insurance Expenses

3 Months Ended

Mar. 31, 2019

Underwriting, Acquisition and Insurance Expenses [Abstract]

Underwriting, acquisition and insurance expenses

Underwriting, acquisition and insurance expenses

Underwriting, acquisition and insurance expenses for the three months ended March 31, 2019 and 2018 consist of the following:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Underwriting, acquisition and insurance expenses incurred:
Direct commissions		$	10,674		$	8,379
Ceding commissions		(2,938		)	(2,444		)
Other operating expenses		7,880			6,463
Total		$	15,616		$	12,398

Other operating expenses within underwriting, acquisition and insurance expenses include salaries, bonus and employee benefits expenses of $6.8 million and $5.0 million for the three months ended March 31, 2019 and 2018, respectively.

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Stock-based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

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, 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 $0.5 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively.

Restricted Stock Awards

During the first quarter of 2019, 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 one-year period. 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 all restricted stock activity under the equity compensation plans for the three months ended March 31, 2019 is as follows:

	For the Three Months Ended  March 31, 2019
	Number of Shares		Weighted Average Grant Date Fair Value per Share
Non-vested outstanding at the beginning of the period	92,465		$	52.98
Granted	7,020		$	55.56
Vested	(6,666	)	$	45.00
Forfeited	(1,305	)	$	53.60
Non-vested outstanding at the end of the period	91,514		$	53.75

As of March 31, 2019, the Company had $3.9 million of total unrecognized stock-based compensation expense expected to be charged to earnings over a weighted-average period of 3.0 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 vest 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 using the following assumptions:

Risk-free rate of return	1.26	%
Dividend yield	1.25	%
Expected share price volatility(1)	18.50	%
Expected life in years(2)	6.3 years

⁽¹⁾ Expected volatility was based on the Company’s competitors within the industry.

⁽²⁾ Expected life was calculated using the simplified method, which was an average of the contractual term of the option and its ordinary vesting period, as the Company did not have sufficient historical data for determining the expected term of our stock option awards.

A summary of option activity as of March 31, 2019, and changes during the period then ended is presented below:

	Number of Shares		Weighted-average exercise price		Weighted-average remaining years of contractual term	Aggregate intrinsic value (in thousands)
Outstanding at January 1, 2019	804,303		$	16.00
Granted	—		—
Forfeited	(12,600	)	16.00
Exercised	(37,308	)	16.00
Outstanding at March 31, 2019	754,395		$	16.00	7.3	$	39,659
Exercisable at March 31, 2019	302,629		$	16.00	7.3	$	15,909

The total intrinsic value of options exercised was $1.9 million and $1.0 million during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company had $0.8 million of total unrecognized stock-based compensation expense expected to be charged to earnings over a weighted-average period of 1.3 years.

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Earnings Per Share

3 Months Ended

Mar. 31, 2019

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 consolidated financial statements:

	Three Months Ended March 31,
	2019		2018
	(in thousands, except per share data)
Net income	$	18,720	$	7,287
Weighted average common shares outstanding - basic	21,169		21,045
Effect of potential dilutive securities:
Conversion of stock options	568		581
Conversion of restricted stock	26		2
Weighted average common shares outstanding - diluted	21,763		21,628
Earnings per common share:
Basic	$	0.88	$	0.35
Diluted	$	0.86	$	0.34

There were no anti-dilutive stock awards for the three months ended March 31, 2019 or 2018.

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Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

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 17.9% and 17.3% for the three months ended March 31, 2019 and 2018, respectively. The decrease in the effective tax rate in the first quarter of 2019 and the first quarter of 2018 was primarily due to stock options exercised and tax-exempt interest income relative to pre-tax income.

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Reserves for Unpaid Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2019

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:

	March 31,
	2019			2018
	(in thousands)
Net reserves for unpaid losses and loss adjustment expenses, beginning of year	$	313,763		$	267,493
Incurred losses and loss adjustment expenses:
Current year	40,128			30,183
Prior years	(6,396		)	(1,284		)
Total net losses and loss adjustment expenses incurred	33,732			28,899
Payments:
Current year	2,042			340
Prior years	17,955			17,516
Total payments	19,997			17,856
Net reserves for unpaid losses and loss adjustment expenses, end of period	327,498			278,536
Reinsurance recoverable on unpaid losses	57,627			49,673
Gross reserves for unpaid losses and loss adjustment expenses, end of period	$	385,125		$	328,209

During the three months ended March 31, 2019, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2018 developed favorably by $6.4 million. The favorable development was primarily attributable to the 2015 through 2018 accident years by $6.3 million, which resulted from reported losses emerging at a lower level than expected across most statutory lines of business.

During the three months ended March 31, 2018, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2017 developed favorably by $1.3 million. The favorable development was primarily attributable to the 2017 accident year of $2.5 million and the 2016 accident year of $1.2 million, which resulted from reported losses emerging at a lower level than expected. This favorable development was offset in part by adverse development from the 2011 through 2015 accident years of $2.4 million.

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Reinsurance

3 Months Ended

Mar. 31, 2019

Reinsurance Disclosures [Abstract]

Reinsurance

Reinsurance

The following table summarizes the effect of reinsurance on premiums written and earned for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Written:
Direct	$	84,563		$	63,847
Assumed	63			—
Ceded	(11,559		)	(8,756		)
Net written	$	73,067		$	55,091
Earned:
Direct	$	72,078		$	56,593
Assumed	57			—
Ceded	(10,644		)	(8,532		)
Net earned	$	61,491		$	48,061

Incurred losses and loss adjustment expenses were net of reinsurance (ceded incurred losses and loss adjustment expenses) of $4.3 million and $2.9 million for the three months ended March 31, 2019 and 2018, respectively. At March 31, 2019, reinsurance recoverables on paid and unpaid losses were $1.7 million and $57.6 million, respectively. At December 31, 2018, reinsurance recoverables on paid and unpaid losses were $1.4 million and $55.4 million, respectively.

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Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2019

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Other Comprehensive Income

Other comprehensive income (loss)

The following table summarizes the components of other comprehensive (loss) income for the three months ended March 31, 2019 and 2018:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Unrealized gains (losses) on fixed-maturity securities arising during the period, before income taxes:		$	8,873		$	(6,092	)
Income taxes		(1,863		)	1,279
Unrealized gains (losses) arising during the period, net of income taxes		7,010			(4,813		)
Less reclassification adjustment:
Net realized gains on fixed-maturity securities, before income taxes		292			55
Income taxes		(62		)	(12		)
Reclassification adjustment included in net income, net of income taxes		230			43
Other comprehensive income (loss)		$	6,780		$	(4,856	)

The sale of an available-for-sale fixed-maturity security results in amounts being reclassified from accumulated other comprehensive income 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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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation

The accompanying 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. For a more complete description of the Company’s business and accounting policies, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its wholly owned subsidiaries (the "Company") included in the Annual Report on Form 10-K for the year ended December 31, 2018. 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 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 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. Management periodically reviews its estimates and assumptions.

Recently Adopted Accounting Pronouncements

Recently adopted accounting pronouncements

ASU 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to improve the financial reporting of leasing transactions. Under this ASU, lessees will recognize a right-of-use ("ROU") asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of 12 months or less. The lessee’s income statement treatment for leases will vary depending on the nature and classification of the lease. Effective January 1, 2019, the Company adopted this ASU and recorded a ROU asset and corresponding lease liability of approximately $0.9 million. The ROU and operating lease liability are included in "other assets" and "other liabilities," respectively, in the accompanying consolidated balance sheet.

The Company elected the package of practical expedients permitted under the adoption of the new standard, which allowed the Company to account for existing leases under their current classification, as well as omit any new costs classified as initial direct costs, under the new standard. This election kept the existing agreements as operating leases. The Company also elected the practical expedient allowing an accounting policy election by class of underlying asset, to account for separate lease and nonlease components as a single lease component. In addition, the Company has implemented the necessary internal controls relating to the adoption of the standard.

ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date.

Prospective Accounting Pronouncements

Prospective accounting pronouncements

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326)" to provide more useful information about the expected credit losses on financial instruments. Current GAAP delays the recognition of credit losses until it is probable a loss has been incurred. The update will require a financial asset measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses. However, the amendments would limit the amount of the allowance to the amount by which fair value is below amortized cost. The measurement of credit losses on available-for-sale securities is similar under current GAAP, but the update requires the use of the allowance account through which amounts can be reversed, rather than through an irreversible write-down. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. Upon adoption, the update will be applied using the modified-retrospective approach, by which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period presented. The Company is currently evaluating the impact of the adoption on its consolidated financial statements.

There are no other prospective accounting standards which, upon their effective date, would have a material impact on the Company's consolidated financial statements.

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Investments (Tables)

3 Months Ended

Mar. 31, 2019

Investments [Abstract]

Available-for-sale Investments

The following tables summarize the available-for-sale investments at March 31, 2019 and December 31, 2018:

	March 31, 2019
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	110	$	2	$	—		$	112
Obligations of states, municipalities and political subdivisions	126,050		4,164		(54		)	130,160
Corporate and other securities	108,757		1,676		(310		)	110,123
Commercial mortgage and asset-backed securities	164,341		912		(841		)	164,412
Residential mortgage-backed securities	136,924		774		(1,727		)	135,971
Total available-for-sale investments	$	536,182	$	7,528	$	(2,932	)	$	540,778

	December 31, 2018
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	610	$	2	$	(1	)	$	611
Obligations of states, municipalities and political subdivisions	153,884		2,010		(1,294		)	154,600
Corporate and other securities	97,889		264		(1,401		)	96,752
Commercial mortgage and asset-backed securities	151,137		252		(1,522		)	149,867
Residential mortgage-backed securities	110,717		354		(2,650		)	108,421
Total available-for-sale investments	$	514,237	$	2,882	$	(6,868	)	$	510,251

Available-for-sale Securities in an Unrealized Loss Position

	December 31, 2018
	Less than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
	(in thousands)
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	—		$	499	$	(1	)	$	499	$	(1	)
Obligations of states, municipalities and political subdivisions	42,718		(440		)	34,326		(854		)	77,044		(1,294		)
Corporate and other securities	62,045		(890		)	12,092		(511		)	74,137		(1,401		)
Commercial mortgage and asset-backed securities	93,247		(1,017		)	25,746		(505		)	118,993		(1,522		)
Residential mortgage-backed securities	24,571		(155		)	55,638		(2,495		)	80,209		(2,650		)
Total available-for-sale investments	$	222,581	$	(2,502	)	$	128,301	$	(4,366	)	$	350,882	$	(6,868	)

The following tables summarize gross unrealized losses and fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position:

	March 31, 2019
	Less than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
	(in thousands)
Fixed maturities:
Obligations of states, municipalities and political subdivisions	$	—	$	—		$	9,756	$	(54	)	$	9,756	$	(54	)
Corporate and other securities	2,313		(15		)	12,143		(295		)	14,456		(310		)
Commercial mortgage and asset-backed securities	60,061		(532		)	29,952		(309		)	90,013		(841		)
Residential mortgage-backed securities	20,391		(41		)	58,361		(1,686		)	78,752		(1,727		)
Total available-for-sale investments	$	82,765	$	(588	)	$	110,212	$	(2,344	)	$	192,977	$	(2,932	)

Contractual Maturities of Available-for-sale Fixed Maturity Securities

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at March 31, 2019 are summarized, by contractual maturity, as follows:

	March 31, 2019
	Amortized		Estimated
	Cost		Fair Value
	(in thousands)
Due in one year or less	$	4,270	$	4,265
Due after one year through five years	75,192		76,142
Due after five years through ten years	53,708		55,609
Due after ten years	101,747		104,379
Commercial mortgage and asset-backed securities	164,341		164,412
Residential mortgage-backed securities	136,924		135,971
Total fixed maturities	$	536,182	$	540,778

Net Investment Income

The following table presents the components of net investment income for the three months ended March 31, 2019 and 2018:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Interest:
Taxable bonds		$	3,067		$	1,761
Tax exempt municipal bonds		1,008			1,085
Cash equivalents and short-term investments		245			260
Dividends on equity securities		521			412
Gross investment income		4,841			3,518
Investment expenses		(326		)	(289		)
Net investment income		$	4,515		$	3,229

Realized Gain (Loss) on Investments

The following table presents realized investment gains and losses for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed-maturity securities:
Realized gains	$	371		$	55
Realized losses	(79		)	—
Net realized gains from fixed-maturity securities	292			55
Equity securities:
Realized gains	4			57
Realized losses	(16		)	—
Net realized (losses) gains from equity securities	(12		)	57
Net realized investment gains	$	280		$	112

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018, by level within the fair value hierarchy.

	March 31, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	112	$	—	$	—	$	112
Obligations of states, municipalities and political subdivisions	—		130,160		—		130,160
Corporate and other securities	—		110,123		—		110,123
Commercial mortgage and asset-backed securities	—		164,412		—		164,412
Residential mortgage-backed securities	—		135,971		—		135,971
Total fixed maturities	112		540,666		—		540,778
Equity securities:
Exchange traded funds	43,834		—		—		43,834
Nonredeemable preferred stock	—		20,647		—		20,647
Total equity securities	43,834		20,647		—		64,481
Total	$	43,946	$	561,313	$	—	$	605,259

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Fixed maturities:
U.S. Treasury securities and obligations of U.S. government agencies	$	611	$	—	$	—	$	611
Obligations of states, municipalities and political subdivisions	—		154,600		—		154,600
Corporate and other securities	—		96,752		—		96,752
Commercial mortgage and asset-backed securities	—		149,867		—		149,867
Residential mortgage-backed securities	—		108,421		—		108,421
Total fixed maturities	611		509,640		—		510,251
Equity securities:
Exchange traded funds	38,987		—		—		38,987
Nonredeemable preferred stock	—		18,724		—		18,724
Total equity securities	38,987		18,724		—		57,711
Total	$	39,598	$	528,364	$	—	$	567,962

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Deferred Policy Acquisition Costs (Tables)

3 Months Ended

Mar. 31, 2019

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 months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Balance, beginning of period	$	14,801		$	11,775
Policy acquisition costs deferred:
Direct commissions	12,363			9,377
Ceding commissions	(3,256		)	(2,541		)
Other underwriting and policy acquisition costs	965			809
Policy acquisition costs deferred	10,072			7,645
Amortization of net policy acquisition costs	(8,559		)	(6,652		)
Balance, end of period	$	16,314		$	12,768

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Underwriting, Acquisition and Insurance Expenses (Tables)

3 Months Ended

Mar. 31, 2019

Underwriting, Acquisition and Insurance Expenses [Abstract]

Underwriting, acquisition and insurance expenses

Underwriting, acquisition and insurance expenses for the three months ended March 31, 2019 and 2018 consist of the following:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Underwriting, acquisition and insurance expenses incurred:
Direct commissions		$	10,674		$	8,379
Ceding commissions		(2,938		)	(2,444		)
Other operating expenses		7,880			6,463
Total		$	15,616		$	12,398

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Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock Activity

A summary of all restricted stock activity under the equity compensation plans for the three months ended March 31, 2019 is as follows:

	For the Three Months Ended  March 31, 2019
	Number of Shares		Weighted Average Grant Date Fair Value per Share
Non-vested outstanding at the beginning of the period	92,465		$	52.98
Granted	7,020		$	55.56
Vested	(6,666	)	$	45.00
Forfeited	(1,305	)	$	53.60
Non-vested outstanding at the end of the period	91,514		$	53.75

Stock Options Valuation Assumptions

The value of the options granted was estimated at the date of grant using the Black-Scholes pricing model using the following assumptions:

Risk-free rate of return	1.26	%
Dividend yield	1.25	%
Expected share price volatility(1)	18.50	%
Expected life in years(2)	6.3 years

Stock Options Activity

A summary of option activity as of March 31, 2019, and changes during the period then ended is presented below:

	Number of Shares		Weighted-average exercise price		Weighted-average remaining years of contractual term	Aggregate intrinsic value (in thousands)
Outstanding at January 1, 2019	804,303		$	16.00
Granted	—		—
Forfeited	(12,600	)	16.00
Exercised	(37,308	)	16.00
Outstanding at March 31, 2019	754,395		$	16.00	7.3	$	39,659
Exercisable at March 31, 2019	302,629		$	16.00	7.3	$	15,909

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

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 consolidated financial statements:

	Three Months Ended March 31,
	2019		2018
	(in thousands, except per share data)
Net income	$	18,720	$	7,287
Weighted average common shares outstanding - basic	21,169		21,045
Effect of potential dilutive securities:
Conversion of stock options	568		581
Conversion of restricted stock	26		2
Weighted average common shares outstanding - diluted	21,763		21,628
Earnings per common share:
Basic	$	0.88	$	0.35
Diluted	$	0.86	$	0.34

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Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2019

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:

	March 31,
	2019			2018
	(in thousands)
Net reserves for unpaid losses and loss adjustment expenses, beginning of year	$	313,763		$	267,493
Incurred losses and loss adjustment expenses:
Current year	40,128			30,183
Prior years	(6,396		)	(1,284		)
Total net losses and loss adjustment expenses incurred	33,732			28,899
Payments:
Current year	2,042			340
Prior years	17,955			17,516
Total payments	19,997			17,856
Net reserves for unpaid losses and loss adjustment expenses, end of period	327,498			278,536
Reinsurance recoverable on unpaid losses	57,627			49,673
Gross reserves for unpaid losses and loss adjustment expenses, end of period	$	385,125		$	328,209

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2019

Reinsurance Disclosures [Abstract]

Effects of Reinsurance

The following table summarizes the effect of reinsurance on premiums written and earned for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Written:
Direct	$	84,563		$	63,847
Assumed	63			—
Ceded	(11,559		)	(8,756		)
Net written	$	73,067		$	55,091
Earned:
Direct	$	72,078		$	56,593
Assumed	57			—
Ceded	(10,644		)	(8,532		)
Net earned	$	61,491		$	48,061

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Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2019

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Comprehensive Income (Loss)

The following table summarizes the components of other comprehensive (loss) income for the three months ended March 31, 2019 and 2018:

		Three Months Ended March 31,
		2019			2018
	(in thousands)
Unrealized gains (losses) on fixed-maturity securities arising during the period, before income taxes:		$	8,873		$	(6,092	)
Income taxes		(1,863		)	1,279
Unrealized gains (losses) arising during the period, net of income taxes		7,010			(4,813		)
Less reclassification adjustment:
Net realized gains on fixed-maturity securities, before income taxes		292			55
Income taxes		(62		)	(12		)
Reclassification adjustment included in net income, net of income taxes		230			43
Other comprehensive income (loss)		$	6,780		$	(4,856	)

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Summary of Significant Accounting Policies (Details) - Accounting Standards Update 2016-02 [Member] $ in Thousands	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Liability	$ 900
Operating Lease, Right-of-Use Asset	$ 900

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Investments Investments (Available for Sale) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 536,182	$ 514,237
Gross Unrealized Holding Gains	7,528	2,882
Gross Unrealized Holding Losses	2,932	6,868
Estimated Fair Value	540,778	510,251
U.S. Treasury securities and obligations of U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	110	610
Gross Unrealized Holding Gains	2	2
Gross Unrealized Holding Losses	0	1
Estimated Fair Value	112	611
Obligations of states, municipalities and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	126,050	153,884
Gross Unrealized Holding Gains	4,164	2,010
Gross Unrealized Holding Losses	54	1,294
Estimated Fair Value	130,160	154,600
Corporate and other securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	108,757	97,889
Gross Unrealized Holding Gains	1,676	264
Gross Unrealized Holding Losses	310	1,401
Estimated Fair Value	110,123	96,752
Commercial mortgage and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	164,341	151,137
Gross Unrealized Holding Gains	912	252
Gross Unrealized Holding Losses	841	1,522
Estimated Fair Value	164,412	149,867
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	136,924	110,717
Gross Unrealized Holding Gains	774	354
Gross Unrealized Holding Losses	1,727	2,650
Estimated Fair Value	$ 135,971	$ 108,421

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Investments Available-for-Sale Securities in a Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Estimated Fair Value	$ 82,765	$ 222,581
Less than 12 months, gross unrealized holding losses	588	2,502
12 Months or Longer, Estimated Fair Value	110,212	128,301
12 Months or Longer, Gross Unrealized Holding Losses	2,344	4,366
Total Estimated Fair Value	192,977	350,882
Total Gross Unrealized Holding Losses	(2,932)	(6,868)
U.S. Treasury securities and obligations of U.S. government agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Estimated Fair Value		0
Less than 12 months, gross unrealized holding losses		0
12 Months or Longer, Estimated Fair Value		499
12 Months or Longer, Gross Unrealized Holding Losses		1
Total Estimated Fair Value		499
Total Gross Unrealized Holding Losses		(1)
Obligations of states, municipalities and political subdivisions [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Estimated Fair Value	0	42,718
Less than 12 months, gross unrealized holding losses	0	440
12 Months or Longer, Estimated Fair Value	9,756	34,326
12 Months or Longer, Gross Unrealized Holding Losses	54	854
Total Estimated Fair Value	9,756	77,044
Total Gross Unrealized Holding Losses	(54)	(1,294)
Corporate and other securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Estimated Fair Value	2,313	62,045
Less than 12 months, gross unrealized holding losses	15	890
12 Months or Longer, Estimated Fair Value	12,143	12,092
12 Months or Longer, Gross Unrealized Holding Losses	295	511
Total Estimated Fair Value	14,456	74,137
Total Gross Unrealized Holding Losses	(310)	(1,401)
Commercial mortgage and asset-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Estimated Fair Value	60,061	93,247
Less than 12 months, gross unrealized holding losses	532	1,017
12 Months or Longer, Estimated Fair Value	29,952	25,746
12 Months or Longer, Gross Unrealized Holding Losses	309	505
Total Estimated Fair Value	90,013	118,993
Total Gross Unrealized Holding Losses	(841)	(1,522)
Residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Estimated Fair Value	20,391	24,571
Less than 12 months, gross unrealized holding losses	41	155
12 Months or Longer, Estimated Fair Value	58,361	55,638
12 Months or Longer, Gross Unrealized Holding Losses	1,686	2,495
Total Estimated Fair Value	78,752	80,209
Total Gross Unrealized Holding Losses	$ (1,727)	$ (2,650)

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Investments Available-for-Sale Securities in a Loss Position Narrative (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019 USD ($) Rate	Dec. 31, 2018 USD ($) Rate
Debt Securities, Available-for-sale [Line Items]
Number of available-for-sale securities in unrealized loss positions	152	317
Total estimated fair value	$ 192,977	$ 350,882
Total gross unrealized holding losses	$ 2,932	$ 6,868
Number of available-for-sale securities in unrealized loss positions, greater than one year	118	158
Other-than- temporary impairment losses	$ 0	$ 0
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	85.40%	86.40%

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Investments Contractual Maturities of Available-for-Sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost
Due in one year or less, Amortized Cost	$ 4,270
Due after one year through five years, Amortized Cost	75,192
Due after five years through ten years, Amortized Cost	53,708
Due after ten years, Amortized Cost	101,747
Total fixed maturities, Amortized Cost	536,182	$ 514,237
Estimated Fair Value
Due in one year or less, Estimated Fair Value	4,265
Due after one year through five years, Estimated Fair Value	76,142
Due after five years through ten years, Estimated Fair Value	55,609
Due after ten years, Estimated Fair Value	104,379
Estimated Fair Value	540,778	510,251
Commercial mortgage and asset-backed securities [Member]
Amortized Cost
Without single maturity date, Amortized Cost	164,341
Total fixed maturities, Amortized Cost	164,341	151,137
Estimated Fair Value
Without single maturity date, Estimated Fair Value	164,412
Estimated Fair Value	164,412	149,867
Residential mortgage-backed securities [Member]
Amortized Cost
Without single maturity date, Amortized Cost	136,924
Total fixed maturities, Amortized Cost	136,924	110,717
Estimated Fair Value
Without single maturity date, Estimated Fair Value	135,971
Estimated Fair Value	$ 135,971	$ 108,421

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Investments Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Components of Net Investment Income [Abstract]
Taxable bonds	$ 3,067	$ 1,761
Tax exempt municipal bonds	1,008	1,085
Cash equivalents and short-term investments	245	260
Dividends on equity securities	521	412
Gross investment income	4,841	3,518
Investment expenses	(326)	(289)
Net investment income	$ 4,515	$ 3,229

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Investments Realized Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt and Equity Securities, Realized Gain (Loss) [Abstract]
Realized gains, fixed-maturity securities	$ 371	$ 55
Realized losses, fixed-maturity securities	(79)	0
Net realized gains, fixed-maturity securities	292	55
Realized gains, equity securities	4	57
Realized losses, equity securities	(16)	0
Net realized (losses) gains, equity securities	(12)	57
Net realized investment gains	$ 280	$ 112

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Investments Unrealized Gains (Losses) on Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Change in unrealized gains (losses), fixed-maturity securities	$ 8.6	$ (6.1)

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Investments Investment Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Assets on deposit with state regulatory authorities	$ 6.9	$ 6.9
Payable for investments purchased	$ 22.1

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Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	$ 605,259	$ 567,962
Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	43,946	39,598
Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	561,313	528,364
Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	0	0
Fixed maturities [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	540,778	510,251
Fixed maturities [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	112	611
Fixed maturities [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	540,666	509,640
Fixed maturities [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
U.S. Treasury securities and obligations of U.S. government agencies [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	112	611
U.S. Treasury securities and obligations of U.S. government agencies [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	112	611
U.S. Treasury securities and obligations of U.S. government agencies [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
U.S. Treasury securities and obligations of U.S. government agencies [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Obligations of states, municipalities and political subdivisions [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	130,160	154,600
Obligations of states, municipalities and political subdivisions [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Obligations of states, municipalities and political subdivisions [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	130,160	154,600
Obligations of states, municipalities and political subdivisions [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Corporate and other securities [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	110,123	96,752
Corporate and other securities [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Corporate and other securities [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	110,123	96,752
Corporate and other securities [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Commercial mortgage and asset-backed securities [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	164,412	149,867
Commercial mortgage and asset-backed securities [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Commercial mortgage and asset-backed securities [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	164,412	149,867
Commercial mortgage and asset-backed securities [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Residential mortgage-backed securities [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	135,971	108,421
Residential mortgage-backed securities [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Residential mortgage-backed securities [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	135,971	108,421
Residential mortgage-backed securities [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value - available for sale	0	0
Equity securities [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	64,481	57,711
Equity securities [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	43,834	38,987
Equity securities [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	20,647	18,724
Equity securities [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	0	0
Exchange traded funds [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	43,834	38,987
Exchange traded funds [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	43,834	38,987
Exchange traded funds [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	0	0
Exchange traded funds [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	0	0
Nonredeemable preferred stock [Member]
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	20,647	18,724
Nonredeemable preferred stock [Member] | Level 1
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	0	0
Nonredeemable preferred stock [Member] | Level 2
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	20,647	18,724
Nonredeemable preferred stock [Member] | Level 3
Fair Value of Investments Measured on Recurring Basis [Line Items]
Fair value	$ 0	$ 0

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Fair Value Measurements Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfers from Level 1 to Level 2	$ 0
Transfers from Level 2 to Level 1	0
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

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Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of period	$ 14,801	$ 11,775
Policy acquisition costs deferred:
Direct commissions deferred	12,363	9,377
Ceding commissions deferred	(3,256)	(2,541)
Other underwriting and policy acquisition costs	965	809
Policy acquisition costs deferred	10,072	7,645
Amortization of net policy acquisition costs	(8,559)	(6,652)
Balance, end of period	$ 16,314	$ 12,768

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Underwriting, Acquisition and Insurance Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Underwriting, Acquisition and Insurance Expenses [Abstract]
Gross commissions	$ 10,674	$ 8,379
Ceding commissions	(2,938)	(2,444)
Other operating expenses	7,880	6,463
Underwriting, acquisition, and insurance expenses	15,616	12,398
Salaries, bonuses and employee benefits	$ 6,800	$ 5,000

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Stock-based Compensation Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.5	$ 0.2
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

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Stock-based Compensation Narrative - Restricted Stock Awards (Details) - Restricted stock [Member] $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Unrecognized stock-based compensation expense	$ 3.9
Compensation cost not yet recognized, period	3 years

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Stock-based Compensation Restrictive Stock Awards (Details) - Restricted stock [Member]	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Nonvested Restricted Stock, Number of Shares [Roll Forward]
Nonvested outstanding at the beginning of the period, shares | shares	92,465
Granted, shares | shares	7,020
Vested, shares | shares	(6,666)
Forfeited, shares | shares	(1,305)
Nonvested outstanding at the end of the period, shares | shares	91,514
Nonvested Restricted Stock, Weighted Average Grant Date Fair Value [Abstract]
Nonvested outstanding at the beginning of the period | $ / shares	$ 52.98
Granted | $ / shares	55.56
Vested | $ / shares	45.00
Forfeited | $ / shares	53.60
Nonvested outstanding at the end of the period | $ / shares	$ 53.75

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Stock-based Compensation Narrative - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Jul. 27, 2016	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised		$ 1.9	$ 1.0
Weighted average exercise price, granted		$ 0.00
Compensation not yet recognized		$ 0.8
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
Compensation cost not yet recognized, period		1 year 3 months

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Stock-based Compensation Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jul. 27, 2016	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period, shares		804,303
Granted, shares		0
Forfeited, shares		(12,600)
Exercised, shares		(37,308)
Outstanding end of period, shares		754,395
Exercisable, shares		302,629
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period		$ 16.00
Granted		0.00
Forfeited		16.00
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		7 years 3 months
Exercisable, weighted average remaining contractual term		7 years 3 months
Outstanding, aggregate intrinsic value		$ 39,659
Exercisable, aggregate intrinsic value		$ 15,909
Stock option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free rate of return	1.26%
Dividend yield	1.25%
Expected share price volatility	18.50%
Expected life in years	6 years 3 months
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

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share, [Line Items]
Net income	$ 18,720	$ 7,287
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted average shares outstanding - basic	21,169	21,045
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average shares outstanding - diluted	21,763	21,628
Earnings Per Share, Basic [Abstract]
Earnings per share - basic	$ 0.88	$ 0.35
Earnings Per Share, Diluted [Abstract]
Earnings per share - diluted	$ 0.86	$ 0.34
Stock option [Member]
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Dilutive effect of shares issued under stock compensation arrangements	568	581
Restricted stock [Member]
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Dilutive effect of shares issued under stock compensation arrangements	26	2

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Earnings Per Share Narrative (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restricted stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	0	0

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Income Taxes (Details)	3 Months Ended
	Mar. 31, 2019 Rate	Mar. 31, 2018 Rate
Income Tax Disclosure [Abstract]
Effective tax rate	17.90%	17.30%

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Reserves for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Net reserves for unpaid losses and loss adjustment expenses, beginning of year	$ 313,763	$ 267,493
Incurred losses and loss adjustment expenses:
Current year	40,128	30,183
Prior years	(6,396)	(1,284)
Total net losses and loss adjustment expenses incurred	33,732	28,899
Payments:
Current year	2,042	340
Prior years	17,955	17,516
Total payments	19,997	17,856
Net reserves for unpaid losses and loss adjustment expenses, end of period	327,498	278,536
Reinsurance recoverable on unpaid losses	57,627	49,673
Gross reserves for unpaid losses and loss adjustment expenses, end of period	$ 385,125	$ 328,209

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Reserves for Unpaid Losses and Loss Adjustment Expenses Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Claims Development [Line Items]
Adverse (favorable) development on prior year loss reserves	$ (6,396)	$ (1,284)
Accident Year 2015-2018 [Member]
Claims Development [Line Items]
Adverse (favorable) development on prior year loss reserves	$ (6,300)
Accident Year 2017 [Member]
Claims Development [Line Items]
Adverse (favorable) development on prior year loss reserves		(2,500)
Accident Year 2016 [Member]
Claims Development [Line Items]
Adverse (favorable) development on prior year loss reserves		(1,200)
Accident Years 2011 to 2015 [Member]
Claims Development [Line Items]
Adverse (favorable) development on prior year loss reserves		$ 2,400

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Reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Premiums Written, Net [Abstract]
Direct written premiums	$ 84,563	$ 63,847
Assumed Premiums Written	63	0
Ceded written premiums	(11,559)	(8,756)
Net written premiums	73,067	55,091
Premiums Earned, Net [Abstract]
Direct earned premiums	72,078	56,593
Assumed Premiums Earned	57	0
Ceded earned premiums	(10,644)	(8,532)
Net earned premiums	61,491	48,061
Ceded incurred losses and loss adjustment expenses	4,300	$ 2,900
Reinsurance recoverables on paid losses	1,700		$ 1,400
Reinsurance recoverables on unpaid losses	$ 57,600		$ 55,400

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Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized gains (losses) arising during the period, before income taxes	$ 8,873	$ (6,092)
Income Taxes	(1,863)	1,279
Unrealized gains (losses) arising during the period, net of income tax	7,010	(4,813)
Less reclassification adjustment [Abstract]
Net realized investment gains on fixed-maturity securities, before income taxes	292	55
Income taxes	(62)	(12)
Reclassification adjustment included in net income, net of income taxes	230	43
Other comprehensive income (loss)	$ 6,780	$ (4,856)