Company: KNSL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001669162-25-000043
Chunk: 102

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Item 8
Chunk 102
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 21,512 Change in fair value of equity securities31,659 21,212 10,447 Net realized investment gains673 6,745 (6,072)Change in allowance for credit losses on investments(15)486 (501)Net realized and unrealized investment gains32,317 28,443 3,874 Total$122,609 $97,223 $25,386 

Net investment income increased by 31.3% to $90.3 million for the six months ended June 30, 2025 from $68.8 million for the six months ended June 30, 2024. The increase in the first six months of 2025 compared to the same period last year was primarily due to growth in our investment portfolio largely 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 4.3% for both the six months ended June 30, 2025 and 2024.

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During the first six months of 2025, the change in fair value of equity securities of $31.7 million primarily reflected unrealized gains arising during the period on our common stocks of $22.5 million, ETFs of $8.6 million and non-redeemable preferred stock of $0.5 million generally consistent with the broader U.S. stock market. 

During the first six months of 2024, the change in fair value of equity securities of $21.2 million included changes in unrealized gains related to common stocks of $12.3 million and ETFs of $6.3 million and changes in unrealized gains related to non-redeemable preferred stock of $2.6 million. The change in the fair value of ETFs and common stocks during the first six months of 2024 primarily reflected higher valuations in the broader U.S. stock market and the change in fair value of preferred stock relates primarily to the disposition of certain preferred stock securities in a loss position.

Net realized investment gains were $0.7 million and $6.7 million for the six months ended June 30, 2025 and 2024, respectively and were primarily related to sales of common stocks and ETFs due to opportunistic repositioning of our equity portfolio.

Income tax expense 

Our effective tax rate was 20.4% for the six months ended June