Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 83

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 8
Chunk 83
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 $305,749 Weighted average common shares outstanding – basic23,159 23,175 23,168 23,150 Effect of potential dilutive securities:Conversion of stock options82 123 94 141 Conversion of restricted stock30 37 30 42 Weighted average common shares outstanding – diluted23,271 23,335 23,292 23,333 Earnings per common share:Basic$6.12 $4.93 $15.75 $13.21 Diluted$6.09 $4.90 $15.67 $13.10 

There were zero and 43,000 anti-dilutive stock awards for the three months ended September 30, 2025 and 2024, respectively. There were 56,000 and 44,000 anti-dilutive stock awards for the nine months ended September 30, 2025 and 2024, respectively. 

22

Table of Contents

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 18.7% for the nine months ended September 30, 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 for the nine months ended September 30, 2025 due primarily to a lower volume of stock options exercised compared to the same period in 2024. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted into law. The OBBBA extends or makes permanent various tax provisions that were originally enacted in the 2017 Tax Cuts and Jobs Act and were set to expire at the end of 2025. The tax provisions in the OBBBA did not have a material impact on the Company's consolidated financial statements.

 11.     Reserves For Unpaid Losses and Loss Adjustment Expenses

The