Company: KNSL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001669162-25-000043
Chunk: 38

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Item 1
Chunk 38
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$72,068 21.1 %

The expense ratio was 20.7% for the three months ended June 30, 2025 compared to 21.1% for the three months ended June 30, 2024. The decrease in the expense ratio was primarily due to routine variability in other underwriting expenses offset in part by lower ceding commissions due to increased retention on our reinsurance treaties. Direct commissions paid as a percent of gross written premiums was 14.8% and 14.7% for the three months ended June 30, 2025 and 2024, respectively. 

Investing results

The following table summarizes net investment income, change in the fair value of equity securities and net realized investment gains (losses) for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,($ in thousands)20252024ChangeInterest from fixed-maturity securities$43,852 $34,866 $8,986 Dividends from equity securities2,011 1,461 550 Cash equivalents and short-term investments1,896 568 1,328 Gross investment income47,759 36,895 10,864 Investment expenses(1,286)(1,048)(238)Net investment income46,473 35,847 10,626 Change in the fair value of equity securities28,621 3,159 25,462 Net realized investment gains136 2,879 (2,743)Change in allowance for credit losses on investments5 476 (471)Net realized and unrealized investment gains28,762 6,514 22,248 Total$75,235 $42,361 $32,874 

Net investment income increased by 29.6% to $46.5 million for the three months ended June 30, 2025 from $35.8 million for the three months ended June 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 June 30, 2025 and 2024.

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Table of Contents

During the second quarter of 2025, the change in fair value of equity securities primarily reflected unreal