Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 57

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1
Chunk 57
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 investment gains and losses, change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. We use underwriting income as an internal performance measure in the management of our operations 

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because we believe it gives us and users of our financial information useful insight into our results of operations and our underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.

Net income for the three and nine months ended September 30, 2025 and 2024, reconciles to underwriting income as follows:

Three Months Ended September 30,Nine Months Ended September 30,($ in thousands)2025202420252024Net income$141,646 $114,229 $364,994 $305,749 Income tax expense37,232 30,169 94,484 70,316 Income before income taxes178,878 144,398 459,478 376,065 Net investment income(49,604)(39,644)(139,896)(108,424)Change in the fair value of equity securities(23,717)(20,659)(55,376)(41,871)Net realized investment (gains) losses(2,159)8 (2,832)(6,737)Change in allowance for credit losses on investments(4)(4)11 (490)Interest expense2,569 2,589 7,664 7,575 Other expenses (1)473 692 1,145 3,451 Other income(764)(518)(1,608)(1,577)Underwriting income$105,672 $86,862 $268,586 $227,992 

(1) Other expenses includes primarily corporate expenses not allocated to our insurance operations.

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Reconciliation of net operating earnings

Net operating earnings is defined as net income excluding the effects of the net change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and the change in allowance for credit losses on investments, after taxes. We believe the exclusion of these items provides a useful comparison of our underlying business performance from period to period. Net operating earnings and percentages or calculations using net operating earnings (e.g., diluted operating earnings per share and annualized operating return on equity) are non-G