Kingstone's Strategic Steps in 2024 and Future Outlook

Kingstone Companies, Inc., a regional property and casualty insurance firm, reported its best year in 2024 with record profitability and premium growth. The company leveraged a favorable shift in the competitive landscape, particularly in New York, to increase its core premiums by 31%. It capitalized on the withdrawal of two major competitors, capturing over 6,000 new policies.

The firm also streamlined its operations by reducing non-core business activities, enhancing profitability. A significant reduction in non-core premiums and policies indicated a strategic focus on its primary market.

Further steps to boost earnings included decreasing its personal lines quota share treaty from 27% to 16%. This change is projected to add $11 million to its earned premium in 2025. Additionally, Kingstone reduced debt by $4 million, aiming to save $0.55 million in annual interest expenses, which is expected to positively impact earnings per share.