Company: KNSL
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001669162-25-000027
Chunk: 112

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 2
Chunk 112
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753 20.7 %

The expense ratio was 20.0% for the three months ended March 31, 2025 compared to 20.7% for the three months ended March 31, 2024. The decrease in the expense ratio was primarily due to lower relative net commissions due to higher ceding commissions earned under the commercial property quota share treaty as a result of an increase to the ceding commission rate effective with the June 2024 renewal. Direct commissions paid as a percentage of gross written premiums was 14.8% and 14.7% for the three months ended March 31, 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 for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,($ in thousands)20252024ChangeInterest from fixed-maturity securities$41,838 $31,830 $10,008 Dividends from equity securities1,953 1,376 577 Cash equivalents and short-term investments1,130 543 587 Real estate investment income— 153 (153)Gross investment income44,921 33,902 11,019 Investment expenses(1,102)(969)(133)Net investment income43,819 32,933 10,886 Change in fair value of equity securities3,038 18,053 (15,015)Net realized investment gains537 3,866 (3,329)Change in allowance for credit losses on investments(20)10 (30)Net realized and unrealized investment gains3,555 21,929 (18,374)Total$47,374 $54,862 $(7,488)

Net investment income increased by 33.1% to $43.8 million for the three months ended March 31, 2025 from $32.9 million for the three months ended March 31, 2024. The increase in the first three months of 2025 compared to the same period last year was primarily due to growth in our investment portfolio largely generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.3% for both the three months ended March 31, 202