Company: KNSL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001669162-25-000010
Chunk: 138

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 138
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256)(1,048)Tax-exempt investment income(249)(347)(527)Other2,151 559 197 Total$99,873 $75,924 $36,450 

89

The significant components of the net deferred tax asset are summarized as follows:December 31,20242023(in thousands)Deferred tax assets:Unrealized losses on fixed-maturity securities$26,343 $25,655 Unpaid losses and loss adjustment expenses36,491 27,422 Unearned premiums32,580 27,251 State operating loss carryforwards8,859 6,012 Stock compensation3,276 2,155 Allowance for credit losses5,210 2,810 Other1,939 2,394 Deferred tax assets before allowance114,698 93,699 Less: valuation allowance(9,066)(6,182)Total deferred tax assets105,632 87,517 Deferred tax liabilities:Unrealized gains on equity securities 17,774 8,667 Deferred policy acquisition costs, net of ceding commissions22,945 18,563 Property and equipment3,263 3,005 Other1,435 1,583 Total deferred tax liabilities45,417 31,818 Net deferred tax asset $60,215 $55,699 At December 31, 2024 and 2023, the Company had state net operating losses ("NOLs") of $186.9 million and $126.8 million, respectively. The state NOLs are available to offset future taxable income or reduce taxes payable and begin expiring in 2029. Management evaluates the need for a valuation allowance related to its deferred tax assets. At December 31, 2024 and 2023, the Company recorded a tax valuation allowance equal to the state NOLs and the deferred tax assets, net of existing deferred tax liabilities that were expected to reverse in future periods, related to certain state jurisdictions. No other valuation allowances were established against the Company’s deferred tax assets at December 31, 2024 and 2023, as the Company believes that it is more likely than not that the remaining deferred tax assets will be realized given the carry back availability, reversal of existing temporary differences and future taxable income. With respect to deferred tax assets associated with unrealized losses on fixed-maturity securities, management has the ability and intent to execute a tax