Company: KNSL
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001669162-25-000027
Chunk: 71

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 71
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-Average Remaining Years of Contractual TermAggregate Intrinsic Value (in thousands)Outstanding at January 1, 2025118,468 $16.00 Granted— — Forfeited— — Exercised(14,676)16.00 Outstanding at March 31, 2025103,792 $16.00 1.3$48,856 Exercisable at March 31, 2025103,792 $16.00 1.3$48,856 

The total intrinsic value of options exercised was $6.3 million and $28.1 million during the three months ended March 31, 2025 and 2024, respectively. 

9.    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 condensed consolidated financial statements: Three Months Ended March 31,20252024(in thousands, except per share data)Net income$89,227 $98,941 Weighted average common shares outstanding – basic23,170 23,108 Effect of potential dilutive securities:Conversion of stock options109 171 Conversion of restricted stock34 56 Weighted average common shares outstanding – diluted23,313 23,335 Earnings per common share:Basic$3.85 $4.28 Diluted$3.83 $4.24 

There were 89,000 and 44,000 anti-dilutive stock awards for the three months ended March 31, 2025 and 2024, respectively. 

10.  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 20.6% and 14.6% for the three months ended March 31, 2025 and 2024, respectively, and were lower than the federal statutory rate of 21% due primarily to the tax benefits from stock-based compensation, including stock options exercised, and from income generated by certain tax-exempt investments. The effective tax rate was higher 

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