Company: KNSL
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001669162-25-000058
Chunk: 58

Company: Kinsale Capital Group, Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1
Chunk 58
---
AAP financial measures. Net operating earnings should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define net operating earnings differently.

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

Three Months Ended September 30,Nine Months Ended September 30,($ in thousands)2025202420252024Net income$141,646 $114,229 $364,994 $305,749 Adjustments:Change in the fair value of equity securities, before taxes(23,717)(20,659)(55,376)(41,871)Income tax expense (1)4,981 4,338 11,629 8,793 Change in the fair value of equity securities, after taxes(18,736)(16,321)(43,747)(33,078)Net realized investment (gains) losses, before taxes(2,159)8 (2,832)(6,737)Income tax expense (benefit) (1)453 (2)595 1,415 Net realized investment (gains) losses, after taxes(1,706)6 (2,237)(5,322)Change in allowance for credit losses on investments, before taxes(4)(4)11 (490)Income tax (benefit) expense (1)1 1 (2)103 Change in allowance for credit losses on investments, after taxes(3)(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.