Company: KNSL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001669162-25-000043
Chunk: 145

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Item 2
Chunk 145
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 income is defined as net income excluding net investment income, the net change in the fair value of equity securities, net realized 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 six months ended June 30, 2025 and 2024, reconciles to underwriting income as follows:

Three Months Ended June 30,Six Months Ended June 30,($ in thousands)2025202420252024Net income$134,121 $92,579 $223,348 $191,520 Income tax expense34,168 23,221 57,252 40,147 Income before income taxes168,289 115,800 280,600 231,667 Net investment income(46,473)(35,847)(90,292)(68,780)Change in the fair value of equity securities(28,621)(3,159)(31,659)(21,212)Net realized investment gains(136)(2,879)(673)(6,745)Change in allowance for credit losses on investments(5)(476)15 (486)Interest expense2,557 2,564 5,095 4,986 Other expenses (1)12 796 672 2,759 Other income(170)(740)(844)(1,059)Underwriting income$95,453 $76,059 $162,914 $141,130 

(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