Company: KNSL
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001669162-25-000021
Chunk: 44

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 44
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 our non-PEO NEOs and each of net income and actual underwriting profit.

As a result of our compensation philosophy, we grant equity awards to certain employees, including executive officers, in order to align employee incentives with those of shareholders. In recent years, the price of our common stock has increased. As a result, CAP for both the CEO and average of NEOs is heavily influenced by the change in the price of our common stock. Our compensation philosophy, specifically the bonus component in the table above, is intended to align executive bonuses with the performance of our underwriting operations. Equity awards granted to employees are intended to incentivize management, including executive officers, to grow the business over the long-term. We do not view changes in the fair value of previously granted equity awards as a meaningful metric when evaluating executive compensation.

Relationship of Compensation Actually Paid to Total Shareholder Return

The following graph shows the relationship between executive compensation actually paid for both the CEO and average of other NEOs to our TSR and TSR for the S&P 500 Property & Casualty Insurance Index for the period from December 31, 2019 through December 31, 2024. The graph assumes an initial investment of $100 and the reinvestment of dividends, if any.

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List of Most Important Performance Measures

The following table lists the most important measures we used in determining executive compensation for the year ended December 31, 2024:

| Most Important Measures for Determining NEO Pay |
| Actual underwriting profit(1)                   |
| Combined ratio(2)                               |
| Operating return on equity(3)                   |

(1) See CD&A for description of how actual underwriting profit is calculated.

(2) Combined ratio is the sum of the loss ratio and the expense ratio. Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to sum of earned premiums and fee income, net of the effects of reinsurance. Expense ratio, expressed as a percentage, is the ratio of underwriting, acquisition and insurance expenses to the sum of net earned premiums and fee income. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss.

(3) Operating return on equity is a non-GAAP financial measure. We define operating return on equity as net operating earnings, a non-GAAP financial measure, expressed as a percentage of average beginning and ending stockholders’ equity during the period. See “Management’s