from Kingstone Companies, Inc (NASDAQ:KINS)
Kingstone Reports Second Quarter 2025 Results
Achieves Highest Quarterly Net Income in its History
Raises 2025 EPS Guidance, and Announces 5-Year Goal to Achieve $500 Million in Premium
KINGSTON, NEW YORK / ACCESS Newswire / August 7, 2025 / Kingstone Companies, Inc. (Nasdaq:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today announced its financial results for the second quarter ended June 30, 2025. The Company will hold its second quarter 2025 financial results conference call on Friday, August 8, 2025, at 8:30 a.m. Eastern Time. With this release, the Company has provided an investor presentation that can be accessed through the Investor Relations/Events & Presentations section of the Company website (www.kingstonecompanies.com).
Key Financial and Operational Highlights | Quarters Ended | Six Months Ended | ||||||||||||||||||||||
($ in thousands, except per share data) | June 30, | June 30, | ||||||||||||||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||
Direct premiums written1 - Core Business2 | $ | 59,802 | $ | 51,306 | 16.6 | % | $ | 116,977 | $ | 97,893 | 19.5 | % | ||||||||||||
Net combined ratio | 71.5 | % | 78.2 | % | (6.7) pts | 82.3 | % | 85.6 | % | (3.3) pts | ||||||||||||||
Net Income | $ | 11,252 | $ | 4,515 | 149.2 | % | $ | 15,135 | $ | 5,942 | 154.7 | % | ||||||||||||
Net Income per share - basic | $ | 0.81 | $ | 0.41 | 97.6 | % | $ | 1.10 | $ | 0.54 | 103.7 | % | ||||||||||||
Net Income per share - diluted | $ | 0.78 | $ | 0.37 | 110.8 | % | $ | 1.07 | $ | 0.50 | 114.0 | % | ||||||||||||
Return on equity - annualized | 50.8 | % | 47.2 | % | 3.6 pts | 37.4 | % | 31.6 | % | 5.8 pts | ||||||||||||||
Management Commentary
Meryl Golden, President and Chief Executive Officer of Kingstone, stated, "I am very pleased to report that we posted our single most profitable quarter ever, earning $0.78 per diluted share. Net income for the quarter was a record $11.3 million, up approximately 150% from the prior year quarter, resulting in an annualized return on equity exceeding 50%. Our strong second quarter results continued momentum, reinforcing our role as a leading homeowners insurer in our core market, New York. Core direct premiums written1 rose 17%, as we continue to capitalize on favorable market conditions and a competitive landscape that's creating opportunities for profitable growth.
"Net earned premiums, a significant driver of our exceptional operating income growth, increased by more than 52% compared to the prior year quarter primarily driven by our reduced quota share, which allows us to retain a greater portion of premiums and underwriting profits, along with the ongoing contribution from the surge in new business written in the second half of 2024 which is earning in.
"Our second quarter 2025 net combined ratio improved by 6.7 points to 71.5%, with lower-than-average catastrophe losses of 0.6 points and favorable prior year reserve development of 0.5 points. The improvement in our underlying loss ratio was driven by lower frequency on our largest peril, non-weather water, which for homeowners has been trending lower for the last six quarters. We attribute this to the effectiveness of risk selection in our Select product and our disciplined underwriting approach.
"We marked our significant achievements to date by reinstating our quarterly dividend, reflecting our commitment to rewarding our shareholders. We expect to deliver record results for full year 2025 as we continue to leverage the opportunities in our core market. We remain highly confident in Kingstone's strategic direction and fully committed to creating long-term shareholder value."
Ms. Golden concluded, "In that regard, I am pleased to announce our five-year goal to reach $500 million in premium, effectively doubling the size of the company through a combination of organic initiatives and strategic, inorganic opportunities in the state of New York along with targeted state expansion. As part of this strategy, the Company intends to continue to focus on catastrophe-exposed properties while pursuing measured geographic diversification which will mitigate our risk of geographic concentration, enhance risk management and improve financial stability. We are confident that market dynamics will allow Kingstone to expand opportunistically and achieve outsized margins, as we are doing today."
Guidance (see "Disclaimer and Forward-Looking Statements" below)
The Company updated its financial guidance for fiscal year 2025, calculated based on anticipated net premiums earned of approximately $187 million, and is as follows:
Guidance Metrics | 2025E | 2025 - Previous | ||
Core Business2 direct premiums written growth | 15% to 20% | 15% to 25% | ||
Net combined ratio | 79% to 83% | 81% to 85% | ||
Net income per share - basic | $2.10 to $2.50 | $1.90 to $2.30 | ||
Net income per share - diluted | $1.95 to $2.35 | $1.75 to $2.15 | ||
Return on equity | 30% to 38% | 27% to 35% |
The following reflects the impact of dilution on total shares outstanding for the six months ended June 30, 2025 and full year 2025 guidance:
Common Stock Metrics | Six Months Ended | 2025E | ||
(shares in millions) | June 30, 2025 | |||
Weighted average shares outstanding - basic | 13.7 | 13.9 | ||
Weighted average shares outstanding - diluted | 14.1 | 14.6 | ||
Total shares outstanding as of end of period - basic | 14.1 | 14.1 | ||
Total shares outstanding as of end of period - diluted | 14.7 | 14.8 |
Consolidated Financial Results
Consolidated Financial Results | Quarters Ended | Six Months Ended | ||||||||||||||||||||||
($ in thousands, except per share data) | June 30, | June 30, | ||||||||||||||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||
Direct premiums written1 | $ | 61,062 | $ | 53,495 | 14.1 | % | $ | 119,237 | $ | 102,820 | 16.0 | % | ||||||||||||
Net premiums earned | $ | 46,215 | $ | 30,304 | 52.5 | % | $ | 89,738 | $ | 59,124 | 51.8 | % | ||||||||||||
Net investment income | $ | 2,300 | $ | 1,765 | 30.3 | % | $ | 4,349 | $ | 3,267 | 33.1 | % | ||||||||||||
Net gain/(loss) on investments | $ | 546 | $ | (234 | ) | NM | $ | 408 | $ | 493 | (17.2 | )% | ||||||||||||
Gain on sale of real estate | $ | 0 | $ | 0 | NM | $ | 1,966 | $ | 0 | NM | ||||||||||||||
Underlying loss ratio1 | 38.7 | % | 47.1 | % | (8.4) pts | 50.0 | % | 52.8 | % | (2.8) pts | ||||||||||||||
Effect of prior-year reserve development | (0.5 | )% | (1.4 | )% | 0.9 pts | (0.9 | )% | (1.7 | )% | 0.8 pts | ||||||||||||||
Net loss ratio excluding the effect of catastrophes1 | 38.2 | % | 45.7 | % | (7.5) pts | 49.1 | % | 51.1 | % | (2.0) pts | ||||||||||||||
Catastrophe loss ratio1 | 0.6 | % | 1.3 | % | (0.7) pts | 1.2 | % | 3.2 | % | (2.0) pts | ||||||||||||||
Net loss ratio | 38.8 | % | 47.0 | % | (8.2) pts | 50.3 | % | 54.3 | % | (4.0) pts | ||||||||||||||
Net underwriting expense ratio | 32.7 | % | 31.2 | % | 1.5 pts | 32.0 | % | 31.3 | % | 0.7 pts | ||||||||||||||
Net combined ratio | 71.5 | % | 78.2 | % | (6.7) pts | 82.3 | % | 85.6 | % | (3.3) pts | ||||||||||||||
Adjusted EBITDA1 | $ | 14,783 | $ | 7,845 | 88.4 | % | $ | 19,038 | $ | 10,779 | 76.6 | % | ||||||||||||
Net Income | $ | 11,252 | $ | 4,515 | 149.2 | % | $ | 15,135 | $ | 5,942 | 154.7 | % | ||||||||||||
Net Income per share - basic | $ | |||||||||||||||||||||||