Company: KNSL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001669162-25-000043
Chunk: 130

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Item 2
Chunk 130
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 allowance for credit losses on investments(15)486 (501)NMInterest expense(5,095)(4,986)(109)2.2 %Other income (expense), net172 (1,700)1,872 NMIncome before taxes280,600 231,667 48,933 21.1 %Income tax expense57,252 40,147 17,105 42.6 %Net income$223,348 $191,520 $31,828 16.6 %Net operating earnings (2)$197,817 $169,050 $28,767 17.0 %Loss ratio58.5 %57.7 %Expense ratio20.3 %20.9 %Combined ratio (3)78.8 %78.6 %Annualized return on equity27.9 %32.7 %Annualized operating return on equity (2)24.7 %28.8 %

NM - Percentage change not meaningful.

(1) Underwriting income is a non-GAAP financial measure. See "—Reconciliation of Non-GAAP Financial Measures" 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.

(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. 

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Table of Contents

Overview

Net income was $223.3 million for the six months ended June 30, 2025 compared to $191.5 million for the six months ended June 30, 2024, an increase of 16.6%. The increase in net income for the first six months of 2025 over the same period last year was primarily due to higher investment income and continued profitable growth. 

Underwriting