What changed in this filing

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Item 1. Business

2023-02-24 compared with 2022-02-25 · 81 added, 74 removed, 563 unchanged (22% of the section changed)

2 unchanged sentences

Virgin Islands primarily through a network of independent insurance brokers.

Our experienced and cohesive management team has an average of over 25 years of experience in the E&S market.

Our experienced and cohesive management team has an average of over 30 years of relevant experience.

Many of our employees and members of our management team have also worked together for decades at other E&S insurance companies.

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We believe that we have differentiated ourselves from our competitors by effectively leveraging technology, vigilantly controlling expenses and maintaining control over our underwriting and claims operations.

We have significantly grown our business and have generated attractive returns.

During 2021, our gross written premiums increased by 38.3%, to $764.4 million for the year ended December 31, 2021.

We have significantly grown our business and have generated strong returns.

During 2022, our gross written premiums increased by 44.2%, to $1.1 billion for the year ended December 31, 2022.

Our return on equity and combined ratios were 22.0% and 77.9%, respectively, for the year ended December 31, 2022.

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See "Management’s Discussion and Analysis of Financial Condition and Results of Operations — Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income to net operating earnings and calculations using net operating earnings (e.g., operating return on equity).

We write a broad array of insurance coverages for risks that are unique or hard to place in the standard insurance market.

We write a broad array of insurance coverages for risks that are unusual or hard to place in the standard insurance market.

Typical E&S risks include newly established companies or industries, high-risk operations, insureds in litigious venues or companies with poor loss histories.

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Our underwriters specialize in individual lines of business which allow them to develop in-depth knowledge and experience of the risks they underwrite.

Our core client focus is small to medium-sized accounts, which we believe tend to be subject to less competition and have better pricing.

Our core client focus is small- to medium-sized accounts, which we believe are subject to less competition and have better pricing.

The average premium per policy written by us in 2022 was $12,400.

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In 2022, the percentage breakdown of our gross written premiums was 77.2% casualty and 22.8% property.

Our commercial lines offerings include small business, excess casualty, construction, commercial property, allied health, products liability, life sciences, general casualty, professional liability, management liability, energy, environmental, entertainment, health care, inland marine, public entity, and commercial insurance.

Our commercial lines offerings include commercial property, small business casualty, construction, excess casualty, allied health, general casualty, products liability, life sciences, professional liability, energy, management liability, entertainment, environmental, health care, small property, public entity, inland marine, commercial auto, aviation, product recall and ocean marine.

We also write a small amount of homeowners insurance in the personal lines market, which in aggregate represented 2.8% of our gross written premiums in 2022 and is included within our personal insurance division.

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($ in thousands)

Small Business $ 112,142 14.7 % $ 83,289 15.1 % $ 63,181 16.2 %

Commercial Property $ 184,766 16.8 % $ 72,513 9.5 % $ 48,099 8.7 %

Small Business Casualty 149,366 13.6 % 112,553 14.7 % 85,046 15.4 %

Excess Casualty 147,485 13.4 % 108,486 14.2 % 76,537 13.8 %

Construction 122,524 11.1 % 101,441 13.3 % 87,164 15.8 %

Commercial Property 78,722 10.3 % 51,789 9.4 % 29,115 7.5 %

General Casualty 69,784 6.3 % 36,043 4.7 % 24,591 4.5 %

Allied Health 68,678 6.2 % 59,208 7.8 % 37,562 6.8 %

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Life Sciences 41,346 3.8 % 40,487 5.3 % 31,004 5.6 %

General Casualty 36,042 4.7 % 24,591 4.4 % 20,931 5.4 %

Professional Liability 41,273 3.7 % 33,226 4.3 % 27,051 4.9 %

Management Liability 32,163 4.2 % 24,061 4.3 % 14,820 3.8 %

Energy 32,974 3.0 % 19,925 2.6 % 16,985 3.1 %

All other commercial lines 152,233 13.8 % 98,419 12.9 % 58,759 10.6 %

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Exclusive focus on the E&S market.

The E&S, or non-admitted, market has historically operated at lower loss ratios and higher margins, and has grown direct premiums written more quickly than the admitted market.

The E&S, or non-admitted, market has historically operated at lower loss ratios and higher margins, and has grown direct premiums written more quickly than the standard, or admitted, market.

From 2001 to 2021, A.M.

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Expense management is ingrained in our business culture.

We believe that our proprietary technology platform coupled with our low-cost operation allow us to process quotes, underwrite policies and operate at a lower cost than our direct competitors.

We believe that our proprietary technology platform coupled with our expense management allow us to process quotes, underwrite policies and operate with a substantial cost advantage over our direct competitors.

In particular, our efficient platform allows us to provide a higher level of service to our brokers and to target smaller accounts which we believe are generally subject to less competition.

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Fully integrated claims management.

We believe that actively managing our claims is an important aspect of keeping losses low, while accurately setting reserves.

We believe that actively managing our claims results in more favorable outcomes and a higher degree of reserve accuracy.

We manage all of our claims in-house and do not delegate claims management authority to third parties.

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Best, the total E&S market was approximately $82.7 billion of direct written premiums in 2021.

Based on our 2021 gross written premiums of $764.4 million, our current market share is approximately 1.2%.

We believe that our exclusive focus on the E&S market and our high levels of service, including our ability to quote, underwrite and bind insurance policies in a timely manner given our efficient systems, allow us to better serve our brokers and position us to profitably increase our market share.

Based on our 2022 gross written premiums of $1.1 billion, our current market share is approximately 1.3%.

We believe that our exclusive focus on the E&S market and our high levels of service, including our ability to quote, underwrite and bind insurance policies in a timely manner through our efficient systems, allow us to better serve our brokers and position us to profitably increase our market share.

Generate underwriting profits.

We will continue to focus on underwriting profitability regardless of market cycles.

We focus on underwriting profitability regardless of market cycles.

Our strategy is to concentrate on hard-to-place risks and to maintain adequate rate levels for the risks that we underwrite.

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real estate entity)

2000 Maywill, LLC

(Delaware limited liability company;

real estate entity)

Kinsale Capital Group, Inc., a Delaware domiciled insurance holding company, was formed on June 3, 2009 for the purpose of acquiring and managing insurance entities.

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On December 3, 2018, we incorporated 2001 Maywill, LLC, as a wholly-owned subsidiary of Kinsale Real Estate, domiciled in Delaware, in order to hold our corporate headquarters.

On September 8, 2022, we incorporated 2000 Maywill, LLC, as a wholly-owned subsidiary of Kinsale Real Estate, domiciled in Delaware, in order to acquire and hold real estate investment property.

Marketing and Distribution

We market our products through a broad group of independent insurance brokers that we believe can consistently produce reasonable volumes of quality business for us.

We market our products through a broad group of independent insurance brokers that we believe can produce reasonable volumes of business for us.

We also sell policies through our wholly-owned broker, Aspera.

Aspera distributes 3.2% of Kinsale’s premiums, primarily personal lines, through independent brokers.

Kinsale does not grant its brokers any underwriting or claims authority.

Kinsale does not grant its independent brokers any underwriting or claims authority.

We select our brokers based on management's review of the experience, knowledge and business plan of each broker.

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We seek brokers with business plans that are consistent with our strategy and underwriting objectives.

Brokers must be able to demonstrate an ability to competently produce both the quality and quantity of business that we seek.

For our more specialized divisions, we seek to appoint brokers that have a similar focus and demonstrated experience in the particular line of business.

Brokers who produce unacceptably low volumes of business may be terminated.

Our underwriters regularly visit with brokers in their offices in order to market to these brokers and discuss the products we offer.

For the year ended December 31, 2021, our largest brokers were RSG Specialty, LLC, which produced $137.0 million, or 17.9%, of our gross written premiums and AmWINS Brokerage, which produced $118.8 million, or 15.5% of our gross written premiums.

Our underwriters regularly visit with brokers in their offices in order to market and discuss the products we offer.

For the year ended December 31, 2022, our largest brokers were RSG Specialty, LLC, which produced $203.3 million, or 18.4%, of our gross written premiums, AmWINS Brokerage, which produced $178.6 million, or 16.2% of our gross written premiums and CRC Commercial Solutions, which produced $118.0 million, or 10.7%, of our gross written premiums.

No other broker accounted for more than 10% of our gross written premiums in the year ended December 31, 2022.

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We believe this is slightly lower than the average commission paid by our competitors.

We believe that our specialization in hard-to-place risks, combined with our high degree of service, including our rapid speed-to-quote, permits us to manage our commission expense as part of our overall management of the underwriting process.

We believe that our specialization in hard-to-place risks, combined with our high degree of service, including our rapid response times, permits us to manage our commission expense as part of our overall management of the underwriting process.

Additionally, we do not contract out our underwriting to program managers or general agents which typically requires a higher commission level to compensate the third party for its work on behalf of the carrier.

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Colorado 32,406 2.9 % 26,250 3.4 % 19,600 3.5 %

Louisiana 30,981 2.8 % 14,507 1.9 % 9,217 1.7 %

New Jersey 30,425 2.8 % 22,125 2.9 % 16,823 3.0 %

Pennsylvania 16,518 2.2 % 11,184 2.0 % 6,867 1.8 %

Arizona 15,894 2.1 % 12,722 2.3 % 8,116 2.1 %

Georgia 23,539 2.1 % 14,920 1.9 % 11,014 2.0 %

Pennsylvania 23,396 2.1 % 16,518 2.2 % 11,184 2.0 %

All other states 333,178 30.2 % 231,282 30.3 % 163,610 29.6 %

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We also believe that our digital environment allows us to engage fewer employees in policy administration.

We are very selective in the policies we choose to bind, with approximately one in every 8 submissions bound.

If our underwriters cannot reasonably expect to bind coverage at the combination of premium and coverage that meets our standards, they are encouraged to quickly move on to another prospective opportunity.

For the year ended December 31, 2021, we received approximately 520,000 new business submissions, and of those submissions, we issued approximately 347,000 quotes and bound 36,000 policies for a new policy to new submission ratio of 6.9%.

We aim to issue quotes for the majority of new business submissions we receive.

For the year ended December 31, 2022, we received approximately 605,000 new business submissions, and of those submissions, we issued approximately 419,000 quotes for a new quote ratio of 69.3% and bound 43,000 policies for a new policy to new submission ratio of 7.1%.

We are careful to establish terms that are suited to the risk and the pricing of our policies.

As an E&S company, we use our freedom of rate and form assertively in order to appropriately underwrite risks that have already been rejected by licensed carriers constrained by approved forms and filed rates.

Beyond simply selecting risks, we attempt to craft policies that offer affordable protection to insureds by tailoring coverages in ways that make potential losses more predictable and reduce claims costs.

As an E&S company, we use our freedom of rate and form assertively in order to appropriately underwrite risks that have already been rejected by standard carriers constrained by approved forms and filed rates.

We attempt to craft policies that offer affordable protection to insureds by tailoring coverages in ways that make potential losses more predictable and reduce claims costs.

For example, our "defense inside the limits" clause, which we applied to more than 99.5% of our professional liability premiums written in 2022, means that funds we expend defending an insured against a claim are counted against the total policy limit.

We believe we do not have any material exposure to claims from asbestos, lead paint, silica, mold or nuclear, biological or chemical terrorism.

Our claims department consisted of approximately 50 claims professionals who had an average of 9 years of claims experience in the P&C industry as of December 31, 2021.

Our claims department consisted of approximately 60 claims professionals who had an average of 13 years of claims experience in the industry as of December 31, 2022.

Our Chief Claims Officer has over 30 years of litigation and claims experience in large commercial insurance claims departments.

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Our insurance company subsidiary operates in a digital environment, which eliminates the costs of printing, storing and handling thousands of documents each week.

Moreover, by maintaining electronic files on each account, we have been able to facilitate clear communication among personnel responsible for handling matters related to underwriting, servicing and claims as each has access to full information regarding the account.

We use a browser-based platform approach to processing business.

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We measure exposure to these losses in terms of probable maximum loss ("PML"), which is an estimate of the amount of loss we would expect to meet or exceed once in a given number of years (referred to as the return period).

When managing our catastrophe exposure, we focus on the 100-year and the 250-year return periods.

When managing our

catastrophe exposure, we focus on the 100-year and the 250-year return periods.

Our main catastrophe risk arises from hurricanes and we manage this exposure through:

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In addition to our aggregate risk management guidelines, we write policies using limits tactically in order to minimize exposure to large losses.

While specific limits change over time as our risk appetite changes due to growth, the majority of our business is concentrated to property coverages with policy limits between $1.0 million and $5.0 million.

O ur insurance policies are also generally written for one year and repriced annually to reflect changing exposures, including changes in frequency and severity of weather-related claims.

The increased frequency and severity of natural catastrophes drive increased volatility for insurers.

While specific limits change over time as our risk appetite changes due to growth, the majority of our business is concentrated to property coverages with policy limits of $5.0 million and lower.

Our insurance policies are also generally written for one year and repriced annually to reflect changing exposures, including changes in frequency and severity of weather-related claims.

Increased frequency and severity of natural catastrophes drive increased volatility for insurers.

It also causes standard insurers to push more catastrophe exposed business into the E&S market thereby increasing our business opportunity.

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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 treaties.

Our reinsurance is primarily contracted under quota-share reinsurance and excess of loss treaties.

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.

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During each renewal cycle, there are a number of factors we consider when determining our reinsurance coverage, including (1) plans to change the underlying insurance coverage we offer, (2) trends in loss activity, (3) the level of our capital and surplus, (4) changes in our risk appetite and (5) the cost and availability of reinsurance coverage .

Effective with the June 1, 2022 renewal, we entered into a new commercial property quota-share reinsurance treaty in place of our previous property per-risk reinsurance treaty.

As previously discussed, when managing our catastrophe exposure, we focus on the 100-year and the 250-year return periods.

We mitigate our risk associated with natural catastrophes with respect to our property insurance business primarily by purchasing reinsurance from only highly-rated reinsurers.

We utilize a personal lines quota-share treaty combined with a catastrophe treaty as an efficient and cost-effective way to manage the total loss exposure on our property coverages.

We utilize a personal lines quota-share reinsurance treaty combined with a catastrophe reinsurance treaty as an efficient and cost-effective way to manage the total loss exposure on our property coverages.

The following is a summary of our significant reinsurance programs as of December 31, 2022:

Line of Business Covered Company Policy Limit Reinsurance Coverage Company Retention

Property - per risk (1) Up to $10.0 million per risk $5.75 million excess of $3.0 million $3.0 million per occurrence

Property - commercial insurance (1) N/A 42.5% up to $93.3 million per catastrophe 57.5% of all commercial property losses

Property - personal insurance (2) N/A 50% up to $35.5 million per catastrophe 50% of all personal property losses

1 unchanged sentence

Primary casualty (4) Up to $10.0 million per occurrence $8.0 million excess of $2.0 million $2.0 million per occurrence

Excess casualty (5) Up to $10.0 million per occurrence Variable quota share $2.0 million per occurrence except as described in note (5) below

(1) Our property per-risk reinsurance reduces the financial impact of a large loss on a single commercial property or inland marine policy.

In addition to the Company's retention, this treaty includes a deductible of the first $4.0 million of losses covered under this reinsurance treaty.

This treaty also includes a reinstatement provision which requires us to pay reinstatement premiums after a loss in excess of $5 million has occurred in order to preserve coverage.

Excess casualty (5) Up to $10.0 million per occurrence

Variable quota share $2.0 million per occurrence except as described in note (5) below

(1) Our commercial property quota-share reinsurance reduces the financial impact of property losses on our commercial property, small property and inland marine policies.

Reinsurance is not applicable to any individual policy with a limit of $2.0 million or less.

(2) Our personal insurance quota share reinsurance reduces the financial impact of property losses on our personal insurance policies.

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Best ratings of "A-" (Excellent) or better.

As of December 31, 2021, we have never had a loss for uncollectible reinsurance.

At December 31, 2022, we recorded an allowance for credit losses of $0.5 million related to our reinsurance balances.

As of December 31, 2022, we have never had a write-off for uncollectible reinsurance.

We had reinsurance recoverables on unpaid losses of $177.0 million at December 31, 2022, and recoverables on paid losses of $43.4 million at December 31, 2022.

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($ in thousands)

Swiss Reinsurance America Corp.

Munich Reinsurance America, Inc.

Swiss Reinsurance America Corp.

SCOR Reinsurance Co.

Allied World Reinsurance Co.

General Reinsurance Corp.

Odyssey America Reinsurance Corp.

Arch Reinsurance Co.

Hannover Ruckversicherungs AG A+ 8,115

Hannover Rück SE A+ 15,214

Berkley Insurance Co.

General Reinsurance Corp.

AXIS Reinsurance Company A 1,204

Arch Reinsurance Co.

Arch Reinsurance Ltd.

Total for top ten reinsurers 206,770

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We collect premiums from our insureds and invest a portion of these funds until claims are paid.

Our cash and invested assets generally consist of fixed-maturity securities, equity securities, short-term investments and cash equivalents.

We seek to maximize investment returns using investment guidelines that stress prudent allocation among cash and cash equivalents, fixed-maturity securities and, to a lesser extent, equity securities.

Our cash and invested assets generally consist of fixed-maturity securities, short-term investments, cash equivalents, exchange traded funds and preferred stock (classified as equity securities on the consolidated balance sheet).

Our fixed-maturity securities are classified as "available-for-sale" and are carried at fair value with unrealized gains and losses on those securities reported, net of tax, as a separate component of accumulated other comprehensive income (loss).

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Fair value generally represents quoted market value prices for securities traded in the public market or prices analytically determined using bid or closing prices for securities not actively traded in the public marketplace.

Short-term investments, if any, are reported at cost and include investments that are both readily convertible to known amounts of cash and have maturities of 12 months or less upon acquisition by us.

Our cash and invested assets totaled $1.7 billion at December 31, 2021 and $1.3 billion at December 31, 2020, and is summarized as follows:

Short-term investments, if any, are reported at amortized cost and include investments that are both readily convertible to known amounts of cash and have maturities of 12 months or less upon acquisition by us.

In December of 2022, we acquired real estate investment property adjacent to our current headquarters for $76.6 million.

Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation.

Our cash and invested assets totaled $2.2 billion at December 31, 2022 and $1.7 billion at December 31, 2021, and are summarized as follows:

December 31, 2022 December 31, 2021

Fair Value % of Portfolio Fair Value % of Portfolio

Carrying Value % of Portfolio Carrying Value % of Portfolio

($ in thousands)

Fixed maturities:

Fixed maturities - at fair value:

Treasury securities and obligations of U.S.

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Total fixed maturities 1,760,100 80.5 % 1,392,066 82.6 %

Equity securities:

Equity securities - at fair value:

Exchange traded funds 104,202 4.8 % 123,389 7.3 %

Non-redeemable preferred stock 38,162 1.7 % 49,222 2.9 %

Common stock 10,107 0.5 % — — %

Total equity securities 152,471 7.0 % 172,611 10.2 %

Short-term investments, at amortized cost 41,337 1.9 % — — %

Real estate investment, net 76,387 3.5 % — — %

Cash and cash equivalents 156,274 7.1 % 121,040 7.2 %

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Our investment policy is designed to comply with the regulatory investment requirements and restrictions to which our insurance subsidiary is subject.

Our fixed-maturity portfolio is managed by an outside investment advisory firm, which operates under guidelines approved by our Investment Committee.

Our fixed-maturity portfolio and preferred stocks are managed by an outside investment advisory firm and our equity securities are managed in-house under guidelines approved by our Investment Committee.

Our Investment Committee meets periodically and reports to our Board of Directors.

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Ratings for an insurance company are based on its ability to pay policyholder obligations and are not directed toward the protection of investors.

Today, our primary competitors in the E&S sector include Alleghany Corporation, Arch Capital Group, Ltd., Argo Group International Holdings, Ltd., James River Group Holdings, Ltd., Lloyds of London, Markel Corporation, RLI Corp.

Today, our primary competitors in the E&S sector inc lude Arch Capital Group, Ltd., Argo Group International Holdings, Ltd., James River Group Holdings, Ltd., Lloyds of London, Markel Corporation, RLI Corp.

Berkley Corporation.

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We are regulated by insurance regulatory authorities in the states in which we conduct business.

State insurance laws and regulations generally are designed to protect the interests of policyholders, consumers and claimants rather than stockholders or other investors.

State insurance laws and regulations generally are designed to protect the interests of policyholders, consumers and claimants rather than

stockholders or other investors.

The nature and extent of state regulation varies by jurisdiction, and state insurance regulators generally have broad administrative power relating to, among other matters, setting capital and surplus requirements, licensing of insurers and agents, establishing standards for reserve adequacy, prescribing statutory accounting methods, determining the form and content of statutory financial reports, regulating certain transactions with affiliates and prescribing types and amounts of investments insurers may hold.

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In recent years, the state insurance regulatory framework has come under increased federal scrutiny, and some state legislatures have considered or enacted laws that alter and, in many cases, increase, state authority to regulate insurance companies and insurance holding company systems.

Further, the National Association of Insurance Commissioners ("NAIC") and state insurance regulators are continually re-examining existing laws and regulations,

specifically focusing on issues relating to the solvency of insurance companies, group capital requirements, interpretations of existing laws and the development of new laws.

Further, the National Association of Insurance Commissioners ("NAIC") and state insurance regulators are continually re-examining existing laws and regulations, specifically focusing on issues relating to the solvency of insurance companies, group capital requirements, interpretations of existing laws and the development of new laws.

Although the federal government does not directly regulate the business of insurance, federal initiatives often affect the insurance industry in a variety of ways.

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Required licensing

Kinsale Insurance is organized and domiciled in the State of Arkansas and is authorized (licensed) in the State of Arkansas to transact certain lines of P&C insurance.

Kinsale Insurance is organized and domiciled in the State of Arkansas and maintains a Certificate of Authority (license) in the State of Arkansas to transact certain lines of P&C insurance as a domestic surplus lines insurer.

This license is in good standing, and, pursuant to applicable Arkansas laws and regulations, will continue in force unless suspended, revoked or otherwise terminated, subject to certain conditions, including the payment by Kinsale Insurance of annual continuation fees, the filing of annual statutory financial statements and the filing of an annual registration statement with the Arkansas Insurance Department.

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In states in which we operate on a non-admitted basis, general agents and their retail insurance brokers generally are required to certify that a certain number of licensed admitted insurers had been offered and declined to write a particular risk prior to placing that risk with us.

In addition, Aspera, our insurance broker, and designated employees must be licensed to act as insurance producers, adjusters or third-party administrators, as applicable, by insurance regulatory authorities in the states where they operate.

In addition, Aspera, our insurance broker, and designated employees must be licensed to act as insurance producers or adjusters, as applicable, by insurance regulatory authorities in the states where they operate.

Such insurance regulatory authorities are vested in most cases with relatively broad discretion as to the granting, revocation, suspension, and renewal of licenses.

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These laws also provide that all transactions among members of a holding company system must be fair and reasonable.

Transactions between insurance subsidiaries and their parents and affiliates generally must be disclosed to the state regulators, and notice to or prior approval of the applicable state insurance regulator generally is required for any material or extraordinary transaction.

Transactions between insurance subsidiaries and their parents and affiliates generally must be disclosed to the state regulators, and notice to or prior

approval of the applicable state insurance regulator generally is required for any material or extraordinary transaction.

On December 9, 2020, the NAIC adopted the Group Capital Calculation (“GCC”) template and instructions, as well as corresponding amendments to NAIC model insurance holding company system laws.

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domestic insurer, prior written approval must be obtained from the insurance commissioner of the state where the insurer is domiciled.

Prior to granting approval of an application to acquire control of a domestic insurer, the domiciliary state insurance commissioner will consider a number of factors, which include the

financial strength of the proposed acquiror, the acquiror’s plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control.

Prior to granting approval of an application to acquire control of a domestic insurer, the domiciliary state insurance commissioner will consider a number of factors, which include the financial strength of the proposed acquiror, the acquiror’s plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control.

Generally, state insurance statutes provide that control over a domestic insurer is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of the domestic insurer.

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Recent efforts by the NAIC to establish group capital standards are consistent with this initiative.

State insurance holding company laws, including those in Arkansas, address "enterprise" risk, the risk that an activity, circumstance, event or series of events involving one or more affiliates of an insurer will, if not remedied promptly, be likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole and require annual reporting of potential enterprise risk as well as access to information to allow the state insurance regulator to assess such

Under Arkansas insurance holding company laws, the ultimate controlling person of insurers subject to registration is required to file an annual enterprise risk report with the lead state commissioner, when applicable, of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the NAIC.

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The Dodd-Frank Act also established the FIO in the U.S.

Department of the Treasury and vested the FIO with the authority to monitor all aspects of the insurance sector, monitor the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, and to represent the United States on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (the "IAIS").

Department of the Treasury and vested the FIO with the authority to monitor all aspects of the insurance sector, monitor the extent to which traditionally underserved communities

and consumers have access to affordable non-health insurance products, and to represent the United States on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (the "IAIS").

In addition, the FIO serves as an advisory member of the Financial Stability Oversight Council, assists the secretary of the U.S.

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and attempting to settle a claim for less than the amount to which a reasonable person would have believed such person was entitled.

We set business conduct policies and conduct training to make our employee-adjusters and other

claims personnel aware of these prohibitions, and we require them to conduct their activities in compliance with these statutes.

We set business conduct policies and conduct training to make our employee-adjusters and other claims personnel aware of these prohibitions, and we require them to conduct their activities in compliance with these statutes.

Credit for reinsurance

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In the statistical phase, the NAIC database generates key financial ratio results based on financial information obtained from insurers’ annual statutory statements.

The analytical phase is a review of the annual statements, financial ratios and

other automated solvency tools.

The analytical phase is a review of the annual statements, financial ratios and other automated solvency tools.

The primary goal of the analytical phase is to identify companies that appear to require immediate regulatory attention.

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• Educational assistance program

• Medical insurance, with one tier being zero cost

• Medical insurance

• Company-paid insurance benefits

• Health savings with large employer contributions and flexible spending accounts

• Health savings accounts with large employer contributions and flexible spending accounts

• Paid time off, family leave, and employee assistance programs.

24 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business