from Kingstone Companies, Inc (NASDAQ:KINS)
Kingstone Reports First Quarter 2025 Results
Achieves Sixth Consecutive Quarter of Profitability; Reaffirms Full Year 2025 Guidance
KINGSTON, NY / ACCESS Newswire / May 8, 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 first quarter ended March 31, 2025. The Company will hold its first quarter 2025 financial results conference call on Friday, May 9, 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 | Three Months Ended | |||||||||||
($ in thousands, except per share data) | March 31, | |||||||||||
2025 | 2024 | Change | ||||||||||
Direct premiums written1 - Core Business2 | $ | 57,175 | $ | 46,587 | 22.7 | % | ||||||
Net combined ratio | 93.7 | % | 93.3 | % | 0.4 pts | |||||||
Net Income | $ | 3,883 | $ | 1,427 | 172.1 | % | ||||||
Net Income per share - basic | $ | 0.29 | $ | 0.13 | 123.1 | % | ||||||
Net Income per share - diluted | $ | 0.27 | $ | 0.12 | 125.0 | % | ||||||
Return on equity - annualized | 20.8 | % | 16.4 | % | 4.4 pts | |||||||
Management Commentary
Meryl Golden, President and Chief Executive Officer of Kingstone, stated, "We are pleased to report increased profitability and strong premium growth in the first quarter of 2025, reflecting the strength of our core business and disciplined execution. We achieved 23% growth in our core business direct premiums written, driven by the continuing favorable competitive landscape that creates meaningful opportunities for our producers to write high-quality, profitable new business in Downstate New York. Net premiums earned were exceptionally strong, reflecting the surge in new business writings in the second half of last year that are earning in at an accelerated pace over time, along with the return premium from the reduction in our quota share that has also started to earn in. This growth in earned premium will be a tailwind for our results throughout the year".
"From a profitability standpoint, we achieved our sixth consecutive quarter of profitability, with a combined ratio of 93.7%, a 0.4 percentage point increase from the 2024 first quarter. Catastrophe losses were 3.5 percentage points lower than the prior year period and below our historical run-rate driven by the mild winter. We also experienced lower overall frequency, highlighting the strength of our disciplined underwriting and prudent risk selection. This improvement, however, was offset by an increase in severity due to a higher incidence of fire losses during the quarter, which is not atypical for this time of year".
Ms. Golden concluded, "We delivered a strong quarter, achieving a remarkable 172% increase in net income. We are confidently maintaining our momentum in writing new business in this evolving market and take pride that we have effectively navigated the inherent risks in this environment. We remain optimistic about Kingstone's prospects for 2025 and beyond, and look forward to reporting on the Company's continued developments."
Guidance (see "Disclaimer and Forward-Looking Statements" below)
The Company reaffirms guidance for fiscal year 2025, calculated based on anticipated net premiums earned of approximately $184 million, and is as follows:
Guidance Metrics | 2025E |
Core Business2 direct premiums written growth | 15% to 25% |
Net combined ratio | 81% to 85% |
Net income per share - basic | $1.90 to $2.30 |
Net income per share - diluted | $1.75 to $2.15 |
Return on equity | 27% to 35% |
The following reflects the impact of dilution on total shares outstanding for the three months ended March 31, 2025 and full year 2025 guidance:
Common Stock Metrics | Three Months Ended | 2025E |
(shares in millions) | March 31, 2025 | |
Weighted average shares outstanding - basic | 13.5 | 13.7 |
Weighted average shares outstanding - diluted | 14.3 | 14.3 |
Total shares outstanding as of end of period - basic | 13.8 | 13.8 |
Total shares outstanding as of end of period - diluted | 14.8 | 14.8 |
Consolidated Financial Results
Consolidated Financial Results | Three Months Ended | |||||||||||
($ in thousands, except per share data) | March 31, | |||||||||||
2025 | 2024 | Change | ||||||||||
Direct premiums written1 | $ | 58,175 | $ | 49,325 | 17.9 | % | ||||||
Net premiums earned | $ | 43,523 | $ | 28,820 | 51.0 | % | ||||||
Net investment income | $ | 2,049 | $ | 1,503 | 36.3 | % | ||||||
Net (loss)/gain on investments | $ | (138 | ) | $ | 726 | NM | ||||||
Gain on sale of real estate | $ | 1,966 | $ | 0 | NM | |||||||
Underlying loss ratio1 | 62.1 | % | 58.8 | % | 3.3 pts | |||||||
Net development of prior year losses | (1.4) | % | (2.0) | % | 0.6 pts | |||||||
Net loss ratio excluding the effect of catastrophes1 | 60.7 | % | 56.8 | % | 3.9 pts | |||||||
Catastrophe loss ratio1 | 1.7 | % | 5.2 | % | (3.5) pts | |||||||
Net loss ratio | 62.4 | % | 62.0 | % | 0.4 pts | |||||||
Net underwriting expense ratio | 31.3 | % | 31.3 | % | - pts | |||||||
Net combined ratio | 93.7 | % | 93.3 | % | 0.4 pts | |||||||
Adjusted EBITDA1 | $ | 4,256 | $ | 2,934 | 45.1 | % | ||||||
Net Income | $ | 3,883 | $ | 1,427 | 172.1 | % | ||||||
Net Income per share - basic | $ | 0.29 | $ | 0.13 | 123.1 | % | ||||||
Net Income per share - diluted | $ | 0.27 | $ | 0.12 | 125.0 | % | ||||||
Return on equity - annualized | 20.8 | % | 16.4 | % | 4.4 pts | |||||||
Other comprehensive income/(loss) | $ | 2,223 | $ | (440 | ) | NM | ||||||
Operating net income1 | $ | 2,439 | $ | 853 | 185.9 | % | ||||||
Operating net income per share - basic1 | $ | 0.18 | $ | 0.08 | 125.0 | % | ||||||
Operating net income per share - diluted1 | $ | 0.17 | $ | 0.07 | 142.9 | % | ||||||
Operating return on equity1 | 3.3 | % | 2.4 | % | 0.9 pts | |||||||
Operating return on equity1 - annualized | 13.1 | % | 9.7 | % | 3.4 pts | |||||||
Book value per share - diluted | $ | 5.57 | $ | 2.80 | 98.9 | % | ||||||
Book value per share - diluted excluding AOCI | $ | 6.24 | $ | 3.80 | 64.2 | % | ||||||
NM = Not Meaningful
Core Business Results (New York Only)
The Company refers to its New York policies as its Core Business.
Core Business Results (New York Only) | Three Months Ended | |||||||||||
($ in thousands, except percentages) | March 31, | |||||||||||
2025 | 2024 | Change | ||||||||||
Direct premiums written1, 3 | $ | 57,175 | $ | 46,587 | 22.7 | % | ||||||
Net premiums earned | $ | 42,257 | $ | 26,556 | 59.1 | % | ||||||
Net loss ratio excluding the effect of catastrophes1,3 | 62.0 | % | 54.1 | % | 7.9 pts | |||||||
Catastrophe loss ratio1, 3 | 1.5 | % | 3.8 | % | (2.3) pts | |||||||
Net loss ratio3 | 63.5 | % | 57.9 | % | 5.6 pts | |||||||
Non-Core Business Results (Outside of New York)
The Company has been aggressively reducing policy count in the Non-Core Business, subject to regulatory requirements.
Non-Core Business Results (Outside of New York) | Three Months Ended | |||||||||||
($ in thousands, except percentages) | March 31, | |||||||||||