Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 147

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 2
Chunk 147
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 maturities because some borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Restricted investments

In order to conduct business in certain states, we are required to maintain letters of credit or assets on deposit to support state-mandated insurance regulatory requirements and to comply with certain third-party agreements. Assets held on deposit or in trust accounts are primarily in the form of high-grade securities. The fair value of our restricted assets was $3.9 million and $3.7 million at September 30, 2025 and December 31, 2024, respectively.

Reconciliation of Non-GAAP Financial Measures

Reconciliation of underwriting income

Underwriting income is a non-GAAP financial measure that we believe is useful in evaluating our underwriting performance without regard to investment income. Underwriting income is defined as net income excluding net investment income, the net change in the fair value of equity securities, net realized investment gains and losses, change in allowance for credit losses on investments, interest expense, other expenses, other income and income tax expense. We use underwriting income as an internal performance measure in the management of our operations 

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because we believe it gives us and users of our financial information useful insight into our results of operations and our underlying business performance. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently.

Net income for the three and nine months ended September 30, 2025 and 2024, reconciles to underwriting income as follows:

Three Months Ended September 30,Nine Months Ended September 30,($ in thousands)2025202420252024Net income$141,646 $114,229 $364,994 $305,749 Income tax expense37,232 30,169 94,484 70,316 Income before income taxes178,878 144,398 459,478 376,065 Net investment income(49,604)(39,644)(139,896)(108,424)Change in the fair value of equity securities(23,717)(20,659)(55,376)(41,871)Net realized investment (gains) losses(2,159)8 (2,832)(6,737)Change in allowance for credit losses on investments(4)(4)11 (490)Interest expense2,569 2,589 7,664