Summary of KINS Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Results:

Net income: $14.8 million

Diluted earnings per share (EPS): $1.30

Diluted operating EPS: $1.80

GAAP net combined ratio: 64.2%

Annualized return on equity (ROE): 51%

Full Year 2025 Results:

Net income: $40.8 million (more than doubled from the previous year)

Diluted EPS: $2.88 (up 95%)

ROE: 43%

Direct premiums written: $277.8 million (up 15% year-over-year)

2Strategic Updates and Business Highlights

Kingstone Companies, Inc. reported its most profitable quarter and year in history, driven by strong premium growth and improved underwriting metrics.

The company’s Select product now comprises 57% of policies in force, enhancing risk selection and reducing claims frequency.

Direct premiums written grew 14% in Q4, with a notable increase in new business policy count (up 25% from Q3).

The company plans to enter the California market in 2026, focusing on excess and surplus lines, with a disciplined approach to risk management.

The expense ratio improved significantly from 41% in 2021 to 30% in 2025, marking a milestone for operational efficiency.

3Forward Guidance and Outlook

For 2026, Kingstone anticipates:

Direct premiums written growth of 16% to 20%.

An underlying combined ratio of 74% to 76%.

Catastrophe loss assumption of 7 to 10 points, reflecting a return to historical averages.

Diluted EPS guidance of $2.20 to $2.90, with a midpoint of $2.55.

The company has set a five-year goal to reach $500 million in direct premiums written by the end of 2029.

4Bad News, Challenges, or Points of Concern

The company acknowledged potential challenges from regulatory proposals in New York regarding homeowner insurer profitability, which could impact pricing and availability.

The guidance for 2026 reflects expectations of higher-than-normal catastrophe losses, which may affect profitability despite strong underlying business performance.

Competitive pressures are anticipated in New York as new entrants may look to capitalize on the profitable market, although Kingstone believes it can maintain its competitive edge.

5Notable Q&A Insights

California Market Entry: Kingstone plans to enter the California market cautiously, starting with less than 5% of premiums in 2026, using its Select product tailored for local risks.

Expense Ratio: Management sees potential for further improvement in the expense ratio, targeting a range of 29% to 30% in the future.

Competitive Landscape: Despite the potential for increased competition in New York, management expressed confidence in their ability to execute effectively due to strong producer relationships and operational advantages.

Catastrophe Claims: The company is preparing for a higher catastrophe loss year in 2026, incorporating recent severe winter storm impacts into their guidance. Overall, Kingstone Companies, Inc. reported strong financial performance in 2025, with strategic plans for growth and market expansion, while also addressing potential challenges from competition and regulatory changes.