Company: KNSL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001669162-25-000043
Chunk: 101

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Item 8
Chunk 101
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 2024, prior accident years developed favorably by $17.9 million, of which $30.7 million was attributable to the 2021 through 2023 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily from the 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation and from the 2020 accident year due to a large property claim.

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Table of Contents

Expense ratio

The following table summarizes the components of the expense ratio for the six months ended June 30, 2025 and 2024:

Six Months Ended June 30,20252024($ in thousands)Underwriting Expenses% of Sum of Earned Premiums and Fee IncomeUnderwriting Expenses% of Sum of Earned Premiums and Fee IncomeNet commissions incurred75,407 9.8 %64,944 9.8 %Other underwriting expenses81,102 10.5 %72,877 11.1 %Total$156,509 20.3 %$137,821 20.9 %

The expense ratio was 20.3% for the six months ended June 30, 2025 compared to 20.9% for the six months ended June 30, 2024. The decrease in the expense ratio was primarily due to routine variability in other underwriting expenses. Direct commissions paid as a percentage of gross written premiums was 14.8% and 14.7% for the six 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 six months ended June 30, 2025 and 2024:

Six Months Ended June 30,($ in thousands)20252024ChangeInterest from fixed-maturity securities$85,690 $66,696 $18,994 Dividends from equity securities3,964 2,837 1,127 Cash equivalents and short-term investments3,026 1,111 1,915 Real estate investment income— 153 (153)Gross investment income92,680 70,797 21,883 Investment expenses(2,388)(2,017)(371)Net investment income90,292 68,780