Company: KNSL
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001669162-25-000027
Chunk: 86

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 8
Chunk 86
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 the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,($ in thousands)20252024ChangeInterest from fixed-maturity securities$41,838 $31,830 $10,008 Dividends from equity securities1,953 1,376 577 Cash equivalents and short-term investments1,130 543 587 Real estate investment income— 153 (153)Gross investment income44,921 33,902 11,019 Investment expenses(1,102)(969)(133)Net investment income43,819 32,933 10,886 Change in fair value of equity securities3,038 18,053 (15,015)Net realized investment gains537 3,866 (3,329)Change in allowance for credit losses on investments(20)10 (30)Net realized and unrealized investment gains3,555 21,929 (18,374)Total$47,374 $54,862 $(7,488)

Net investment income increased by 33.1% to $43.8 million for the three months ended March 31, 2025 from $32.9 million for the three months ended March 31, 2024. The increase in the first three 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 three months ended March 31, 2025 and 2024.

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During the first three months of 2025, the change in fair value of equity securities of $3.0 million reflected primarily unrealized gains arising during the period on our common stock holdings of $9.4 million offset in part by a decline in the fair value of our exchange traded funds ("ETFs") of $(6.5) million.

During the first quarter of 2024, the change in fair value of equity securities of $18.1 million included changes in unrealized gains related to ETFs and common stocks of $16.6 million and changes in unrealized gains related to non-redeemable preferred stock of $1.5 million. The change in the fair value of ETFs and common stocks during the first three months of