v3.26.3
Property and Casualty Insurance Activity (Tables)
 9 Months Ended
Sep. 30, 2026
Property and Casualty Insurance Activity  
Schedule of Earned Premiums
Premiums written, ceded and earned are as follows:
Direct
Assumed
Ceded
Net
Nine months ended September 30, 2026
Premiums written$228,892,336 $- $(39,405,738)$189,486,598 
Change in unearned premiums(8,373,463)- (2,365,240)(10,738,703)
Premiums earned$220,518,873 $- $(41,770,978)$178,747,895 
Nine months ended September 30, 2025
Premiums written$195,047,268 $- $(50,178,287)$144,868,981 
Change in unearned premiums(5,339,407)- (1,866,198)(7,205,605)
Premiums earned$189,707,861 $- $(52,044,485)$137,663,376 
Three months ended September 30, 2026
Premiums written$86,795,287 $- $(42,691,033)$44,104,254 
Change in unearned premiums(9,774,329)- 28,081,679 18,307,350 
Premiums earned$77,020,958 $- $(14,609,354)$62,411,604 
Three months ended September 30, 2025
Premiums written$75,809,863 $- $(44,160,963)$31,648,900 
Change in unearned premiums(9,778,044)- 26,054,197 16,276,153 
Premiums earned$66,031,819 $- $(18,106,766)$47,925,053 
Schedule of Unpaid Loss and Loss Adjustment Expense Reserves
The following table provides a reconciliation of the beginning and ending balances for unpaid loss and LAE reserves:
Nine months ended September 30,
20262025
Balance at beginning of period $140,538,618 $126,210,428 
Less reinsurance recoverables(33,232,365)(32,322,637)
Net balance, beginning of period 107,306,253 93,887,791 
Incurred related to:
Current year98,021,932 67,156,741 
Prior years(6,715,308)(822,177)
Total incurred91,306,624 66,334,564 
Paid related to:
Current year50,375,300 29,492,987 
Prior years25,291,669 24,351,681 
Total paid75,666,969 53,844,668 
Net balance at end of period122,945,908 106,377,687 
Add reinsurance recoverables35,511,733 34,816,559 
Balance at end of period $158,457,641 $141,194,246 
Schedule of Line of Business
The following is information about incurred and paid claims development as of September 30, 2026, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of September 30, 2026 included in the net incurred loss and allocated expense amounts. The historical information regarding incurred and paid claims development for the years ended December 31, 2017 to December 31, 2025 is presented as supplementary unaudited information.
All Lines of Business
(in thousands, except reported claims data)
Incurred Loss and Allocated Loss Adjustment Expenses, Net of ReinsuranceAs of
September 30, 2026
Accident YearFor the Years Ended December 31,Nine
Months
Ended
September 30,
2026		IBNRCumulative
Number of
Reported
Claims by
Accident
Year
201720182019202020212022202320242025
(Unaudited 2017 - 2025)(Unaudited)
2017$31,605 $32,169 $35,304 $36,160 $36,532 $36,502 $36,819 $37,268 $37,359 $36,883 $146 3,402
201854,455 56,351 58,441 59,404 61,237 61,145 61,686 61,897 61,577 386 4,238
201975,092 72,368 71,544 71,964 73,310 74,363 76,337 76,772 1,674 4,511
202063,083 62,833 63,217 63,562 64,400 65,888 66,035 731 5,896
202196,425 96,673 96,134 96,771 98,411 98,355 1,448 5,838
202279,835 78,759 78,078 77,319 76,969 2,280 4,721
202378,978 72,025 70,128 69,776 4,214 4,104
202457,860 54,364 53,835 5,493 3,153
202577,556 72,576 14,143 2,418
202692,125 14,695 2,493
 Total $704,900 
All Lines of Business
(in thousands)
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident YearFor the Years Ended December 31,Nine
Months Ended
September 30,
2026
201720182019202020212022202320242025
(Unaudited 2017 - 2025)(Unaudited)
2017$16,704 $24,820 $28,693 $31,393 $32,529 $33,522 $34,683 $35,046 $35,336 $35,376 
201832,383 44,516 50,553 52,025 54,424 56,199 57,185 57,798 59,194 
201940,933 54,897 58,055 60,374 63,932 66,109 68,648 70,791 
202039,045 50,719 53,432 56,523 59,220 60,859 61,370 
202156,282 77,756 82,317 85,314 90,865 92,835 
202245,856 65,732 68,170 70,703 72,033 
202346,280 56,952 59,571 61,080 
202429,013 40,086 42,683 
202536,572 48,659 
202646,955 
Total$590,976 
Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented$113,924 
All outstanding liabilities before 2017, net of reinsurance1,461 
Liabilities for loss and allocated loss adjustment expenses, net of reinsurance$115,386 
Schedule of Reconciliation of the Disclosure of Incurred and Paid Loss Development to the Liability for Loss and LAE Reserves
The reconciliation of the net incurred and paid loss development tables to the loss and LAE reserves in the condensed Consolidated Balance Sheets is as follows:
Reconciliation of the Disclosure of Incurred and Paid Loss Development
to the Liability for Loss and LAE Reserves
(in thousands)As of
September 30, 2026
Liabilities for allocated loss and loss adjustment expenses, net of reinsurance$115,386 
Total reinsurance recoverable on unpaid losses35,512 
Unallocated loss adjustment expenses7,560 
Total gross liability for loss and LAE reserves$158,458 
Schedule of Material Terms for Reinsurance Treaties
Material terms for reinsurance treaties in effect for the treaty years shown below are as follows:
Treaty Period
2026/2027 Treaty2025/2026 Treaty
Line of BusinessJuly 1,
2026
to
January 1,
2027		January 1,
2026
to
June 30,
2026		July 1,
2025
to
January 1,
2026		January 1,
2025
to
June 30,
2025
Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded (6)5 %5 %16 %16 %
Risk retained on initial
$1,000,000 of losses (4) (5) (6)$950,000 $950,000 $840,000 $840,000 
Losses per occurrence
subject to quota share
reinsurance coverage$1,000,000 $1,000,000 $1,000,000 $1,000,000 
Expiration dateJanuary 1, 2027January 1, 2027January 1, 2026January 1, 2026
Excess of loss coverage and
facultative facility
coverage (1) (4) (5)$10,250,000 $8,250,000 $8,250,000 $8,400,000 
in excess ofin excess ofin excess ofin excess of
$750,000 $750,000 $750,000 $600,000 
Total reinsurance coverage
per occurrence (4) (5)$10,175,000 $8,175,000 $8,285,000 $8,360,000 
Losses per occurrence
subject to reinsurance
coverage (5)$11,000,000 $9,000,000 $9,000,000 $9,000,000 
Expiration dateJune 30, 2027June 30, 2026June 30, 2026June 30, 2025
Catastrophe Reinsurance:
Initial loss subject to personal
lines quota share treaty (5)$10,000,000 $10,000,000 $10,000,000 $10,000,000 
Risk retained per catastrophe
occurrence (5) (6) (7) (8)$4,750,000 $5,500,000 $5,000,000 $4,250,000 
Catastrophe loss coverage
in excess of quota share
coverage (2) (5) (8)$495,250,000 $434,500,000 $435,000,000 $275,000,000 
Reinstatement premium
protection (3)YesYesYesYes

(1)For personal lines, includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $9,000,000 in total insured value, which covers direct losses from $3,500,000 to $9,000,000 through June 30, 2026. Effective July 1, 2026, homeowners single risk coverage was increased to $11,000,000 in total insured value, which covers direct losses from $3,500,000 to $11,000,000 through June 30, 2027.
(2)Through June 30, 2026, catastrophe coverage is limited on an annual basis to two times the per occurrence amounts, except for one occurrence on 80% of the first layer of $5,000,000 in excess of $5,000,000, and one occurrence on 52% of the top layer of $240,000,000 in excess of $200,000,000, which is covered under the catastrophe bond. Effective July 1, 2026, catastrophe coverage is limited on an annual basis to two times the per occurrence amounts, except for one occurrence on: (i) 70% of the first layer of $5,000,000 in excess of $5,000,000 for all perils excluding named storms, and (ii), 95% of the first layer of $5,000,000 in excess of $5,000,000 for named storms, and one occurrence on 45% of the layer of $275,000,000 in excess of $215,000,000, which is covered under the catastrophe bond. Duration of 168 consecutive hours for a non-named catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone. For named storms, duration beginning on the date a watch, warning, advisory, or other bulletin is first issued, continuing for a time period thereafter during which such named storm continues, regardless of its category rating or lack thereof and regardless of whether the watch, warning, advisory or other bulletin remains in effect for such named storm, and ending on the fourth calendar day following the issuance of the last watch, warning, advisory or other bulletin.
(3)For the period July 1, 2024 through June 30, 2025 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2025 through June 30, 2026 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2026 through June 30, 2027 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000 for named storms only.
(4)For the period January 1, 2024 through June 30, 2025, the Underlying XOL Treaty provides 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Excludes losses from named storms. Reduces retention to $530,000 from $730,000 under the quota share treaty that expired on January 1, 2025. Retention increases to $640,000 from $530,000 under the 2025/2026 Treaty. For the period July 1, 2025 through June 30, 2026, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. For the period July 1, 2026 through June 30, 2027, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $11,000,000 together with facultative coverage. Increased retention to $715,000 from $640,000 under the 2025/2026 Treaty, and increased retention to $825,000 under the 2026/2027 Treaty (see note 5 below).
(5)The personal lines quota share treaty (homeowners, dwelling fire and canine liability) will expire on January 1, 2027, with none of these coverages to be in effect during the period from January 1, 2027 through June 30, 2027. If and when this treaty is renewed on January 1, 2027, the personal lines quota share treaty, will be as provided for therein. Reinsurance coverage in effect from January 1, 2027 through June 30, 2027 is only for excess of loss, Underlying XOL, and catastrophe reinsurance treaties.
(6)For the 2025/2026 Treaty, 6% of the 16% total of losses ceded under this treaty were excluded from a named catastrophe event. For the 2026/2027 Treaty, there is no exclusion for catastrophe events. Quota share reinsurance under the 2026/2027 treaty is 5% for personal lines business written in all states except California (for which the quota share rate is 30%).
(7)Plus losses in excess of catastrophe coverage.
(8)Effective July 1, 2025 through June 30, 2026, catastrophe coverage is 80% of the first layer of $5,000,000 in excess of $5,000,000. The remaining coverage is at 100% of $430,000,000 in excess of $10,000,000. For the period October 1, 2024 through April 30, 2025, additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. For the period October 15, 2025 through April 30, 2026, an additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 90% of $5,000,000 in excess of $5,000,000. Retention for winter storms was $5,200,000 under the 2025/2026 Treaty from January 1, 2025 through April 30, 2025, $3,900,000 from October 15, 2025 through January 1, 2026, the expiration date of the 2025/2026 Treaty, and $5,000,000 under the 2026/2027 Treaty through April 30, 2026. Effective July 1, 2026 through June 30, 2027, catastrophe coverage is 95% of the first layer of $5,000,000 in excess of $5,000,000 for named storms, 70% for all other catastrophe risks. The remaining coverage is at 100% of $490,000,000 in excess of $10,000,000.
Schedule of Line of Business of Reinsurance Coverage
Treaty Year
Line of Business July 1, 2026
to
June 30, 2027		July 1, 2025
to
June 30, 2026		July 1, 2024
to
June 30, 2025
Personal Lines:
Personal Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage 90 %90 %90 %
Percent ceded - excess of $1,000,000 of coverage 95 %95 %95 %
Risk retained $300,000 $300,000 $300,000 
Total reinsurance coverage per occurrence $4,700,000 $4,700,000 $4,700,000 
Losses per occurrence subject to quota share reinsurance coverage $5,000,000 $5,000,000 $5,000,000 
Expiration date June 30, 2027June 30, 2026June 30, 2025
.
Schedule Of Ceding Commission Revenue
Ceding commission revenue consists of the following:
Three months ended
September 30,		Nine months ended
September 30,
2026202520262025
Provisional ceding commissions earned $1,423,248 $3,555,260 $4,051,941 $10,195,169 
Contingent ceding commissions earned 317,178 1,345,141 625,327 745,479 
$1,740,426 $4,900,401 $4,677,268 $10,940,648