Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 149

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 2
Chunk 149
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3)9 (387)Net operating earnings$121,201 $97,911 $319,019 $266,962 Operating return on equity:Average stockholders' equity (2)$1,793,895 $1,346,076 $1,674,389 $1,260,891 Annualized return on equity (3)31.6 %33.9 %29.1 %32.3 %Annualized operating return on equity (4)27.0 %29.1 %25.4 %28.2 %

(1) Income taxes on adjustments to reconcile net income to net operating earnings use an effective tax rate of 21%.

(2) Average stockholders' equity is computed by adding the total stockholders' equity as of the date indicated to the prior quarter-end or year-end total, as applicable, and dividing by two. 

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(3) Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

(4) Annualized operating return on equity is net operating earnings expressed on an annualized basis as a percentage of average beginning and ending stockholders' equity during the period.

Reconciliation of tangible stockholders' equity

Tangible stockholders’ equity is defined as total stockholders’ equity less intangible assets, net of deferred taxes. Our definition of tangible stockholders’ equity may not be comparable to that of other companies, and it should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders' equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.

Stockholders' equity at September 30, 2025 and December 31, 2024, reconciles to tangible stockholders' equity as follows:

($ in thousands)September 30, 2025December 31, 2024Stockholders' equity$1,865,217 $1,483,561 Less: intangible assets, net of deferred taxes2,795 2,795 Tangible stockholders' equity$1,862,422 $1,480,766 

Critical Accounting Estimates

We identified the accounting estimates which are critical to the understanding of our financial position and results of operations. Critical accounting estimates are defined as those estimates that are both important to the portrayal of our