Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 99

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 8
Chunk 99
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615 1,159 Gross investment income50,836 40,509 10,327 Investment expenses(1,232)(865)(367)Net investment income49,604 39,644 9,960 Change in the fair value of equity securities23,717 20,659 3,058 Net realized investment gains (losses)2,159 (8)2,167 Change in allowance for credit losses on investments4 4 — Net realized and unrealized investment gains25,880 20,655 5,225 Total$75,484 $60,299 $15,185 

Net investment income increased by 25.1% to $49.6 million for the three months ended September 30, 2025 from $39.6 million for the three months ended September 30, 2024. This increase was primarily due to growth in our investment portfolio generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.4% for both the three months ended September 30, 2025 and 2024.

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Table of Contents

During the third quarter of 2025, the change in fair value of equity securities primarily reflected unrealized gains arising during the period on our exchange-traded funds ("ETFs") of $11.8 million, common stocks of $11.8 million and non-redeemable preferred stock of $0.1 million generally consistent with the broader U.S. stock market. 

During the third quarter of 2024, the change in fair value of equity securities included changes in unrealized gains related to common stocks of $13.1 million and ETFs of $6.9 million and unrealized gains related to non-redeemable preferred stock of $0.7 million. The change in the fair value of common stocks and ETFs during the third quarter of 2024 primarily reflected changes in the broader U.S. stock market.

Income tax expense

Our effective tax rate was 20.8% for the three months ended September 30, 2025 compared to 20.9% for the three months ended September 30, 2024. The effective tax rates were lower than the federal statutory rate of 21% due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.