Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 127

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 2
Chunk 127
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 for a reconciliation of net income in accordance with GAAP to underwriting income.

(2) Net operating earnings and annualized operating return on equity are non-GAAP financial measures. Net operating earnings is defined as net income excluding the net change in the fair value of equity securities, after taxes, net realized investment gains and losses, after taxes, and change in allowance for credit losses on investments, after taxes. Annualized operating return on equity is defined as net operating earnings expressed on an annualized basis as a percentage of average beginning and ending total stockholders’ equity during the period. See "—Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income in accordance with GAAP to net operating earnings.

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(3) The combined ratio is the sum of the loss ratio and expense ratio as presented. Calculations of each component may not add due to rounding. 

Net income was $141.6 million for the three months ended September 30, 2025 compared to $114.2 million for the three months ended September 30, 2024, an increase of 24.0%. The increase in net income for the third quarter of 2025 from the same period last year was primarily due to continued profitable growth, higher investment income and higher returns on equity investments.

Underwriting income was $105.7 million for the three months ended September 30, 2025 compared to $86.9 million for the three months ended September 30, 2024, an increase of 21.7%. The corresponding combined ratios were 74.9% for the three months ended September 30, 2025 compared to 75.7% for the three months ended September 30, 2024. The increase in underwriting income in the third quarter of 2025 compared to the third quarter of 2024 was primarily due to a combination of growth in the business, lower catastrophe losses and higher favorable development of loss reserves from prior accident years.

Premiums

Gross written premiums were $486.3 million for the three months ended September 30, 2025 compared to $448.6 million for the three months ended September 30, 2024, an increase of $37.6 million, or 8.4%. Gross written premiums in our Commercial Property Division, our largest division, decreased 7.9% relative to the prior year period due to rate declines and an increasingly competitive environment including from standard carriers. Excluding our Commercial