Company: KNSL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001669162-25-000043
Chunk: 114

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Item 8
Chunk 114
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 net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.

Net income for the three and six months ended June 30, 2025 and 2024, reconciles to net operating earnings as follows:

Three Months Ended June 30,Six Months Ended June 30,($ in thousands)2025202420252024Net income$134,121 $92,579 $223,348 $191,520 Adjustments:Change in the fair value of equity securities, before taxes(28,621)(3,159)(31,659)(21,212)Income tax expense (1)6,010 663 6,648 4,455 Change in the fair value of equity securities, after taxes(22,611)(2,496)(25,011)(16,757)Net realized investment gains, before taxes(136)(2,879)(673)(6,745)Income tax expense (1)29 605 141 1,416 Net realized investment gains, after taxes(107)(2,274)(532)(5,329)Change in allowance for credit losses on investments, before taxes(5)(476)15 (486)Income tax (benefit) expense (1)1 100 (3)102 Change in allowance for credit losses on investments, after taxes(4)(376)12 (384)Net operating earnings$111,399 $87,433 $197,817 $169,050 Operating return on equity:Average stockholders' equity (2)$1,652,774 $1,214,086 $1,603,067 $1,172,018 Annualized return on equity (3)32.5 %30.5 %27.9 %32.7 %Annualized operating return on equity (4)27.0 %28.8 %24.7 %28.8 %

(1) Income taxes on adjustments to reconcile net income to net operating earnings use an effective tax rate of 21%.

(2) Average stockholders' equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two. 

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

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