What is the market's earnings forecast for Kingstone Companies next quarter?

What does Kingstone Companies do and what are its main business segments?

What were the key takeaways from Kingstone Companies's earnings call?

What is Kingstone Companies's latest dividend and current dividend yield?

What is Kingstone Companies's gross profit margin?

What factors drove the changes in Kingstone Companies's revenue and profit?

What were the key takeaways from Kingstone Companies’s earnings call?

Did Kingstone Companies beat or miss consensus estimates last quarter?

- **Revenue Growth**: Direct written premium +14%, net investment income +52%, driven by Select product adoption (54% of policies) and disciplined underwriting.
- **Profitability Expansion**: Raised 2025 EPS guidance to $2.30-$2.60, ROE to 35-39%, with expense ratio improving 1.1pts to 30.8%.
- **Strategic Moves**: Developing E&S product for new states, on track to write $25-35M from GUARD renewal, and maintaining 80%+ retention despite rate normalization.
- **Risk Management**: Catastrophe losses minimal in 2025, but 2026 guidance assumes normalized weather patterns.


**CEO Opening Remarks**
- **Record Profitability**: Reported net income of $10.9 million, diluted EPS of $0.74, and a GAAP combined ratio of 72.7%. Direct written premium grew 14%, with net investment income up 52%.
- **Select Product Dominance**: 54% of policies in force are now Select, with claim frequency 31% lower than legacy products. New business since September 1st under the GUARD renewal agreement is on track at ~$1 million/month.
- **Market Positioning**: Competitors are broadening underwriting appetite, but Kingstone maintains disciplined pricing (retention >80% of premium base) and expects rate increases to stabilize from high teens to high single digits.
- **Guidance Update**: Raised 2025 GAAP combined ratio range to 78-82%, EPS to $2.30-$2.60, and ROE to 35-39%, reflecting strong underwriting and investment performance.

**CFO Financial Commentary**
- **Investment Growth**: Net investment income jumped 52% QoQ to $2.5 million, driven by 5.2% new money yields and a 4.03% fixed income portfolio yield (vs. 3.39% prior year).
- **Expense Efficiency**: Expense ratio down 1.1pts YTD to 30.8%, benefiting from sliding scale ceding commissions and lower catastrophe losses.
- **Capital Strength**: Shareholders' equity up 80% YoY to $107 million, with ROE of 39.8% and reinstated quarterly dividend.

**Q&A Highlights**
- **Select Product Longevity**: Legacy policies will remain unless size becomes uneconomical; all new business since 2022 is Select.
- **E&S Expansion**: Developing new product for non-New York states with outside actuarial consulting, pending Connecticut E&S carrier approval.
- **GUARD Book Performance**: Early results align with expectations, with geographic diversification into NYC boroughs.
- **Competitive Dynamics**: MGAs expanding underwriting, but Kingstone's conversion rate remains strong despite market softening.
- **Catastrophe Outlook**: 2025 had mild weather; 2026 guidance assumes normalized catastrophe activity.


Kingstone Companies, Inc. (KINS) Q3 2025 Earnings Call Transcript

- **Record Profit Milestone**: Q2 2025 net income of $11.3M (150% YoY growth) with 71.5% combined ratio.
- **Strategic Expansion Plan**: 5-year goal to double to $0.5B in written premium via E&S product expansion into 4 new states by 2027.
- **Reinsurance Resilience**: $5M net retention for cat events, 57% higher reinsurance coverage at 10% cost increase.
- **Dividend Restart**: Reinstated quarterly dividend signaling financial confidence.
- **Market Leadership**: 17-month decline in Select Homeowners claim frequency.
- **AmGuard Transaction**: $12M premium contribution over 3 years.


**【CEO Opening Remarks】**
- **Record Q2 Performance**: Reported $11.3M net income (150% YoY growth) and 71.5% combined ratio, the best in company history. Diluted EPS of $0.78 and 50.8% ROE highlight exceptional profitability.
- **Strategic Leadership Changes**: Randy Patten joins as CFO, bringing expertise in M&A and capital management. Board refreshes with Pranav Pasricha, adding tech and insurance sector insights.
- **Dividend Reinstatement**: Resumed quarterly dividend, reflecting confidence in cash flow stability and growth prospects.

**【Core Business Performance】**
- **Premium Growth**: Core direct written premium up 17% YoY, driven by 21% new policy count and 15% higher renewal rates. Homeowners policies in force rose 20%.
- **Underwriting Excellence**: Non-cat loss ratio improved 8.4pts to 38.7%, aided by 29% frequency decline in Homeowners (non-catastrophe). Select Homeowners product frequency down 17 consecutive months.
- **Reinsurance Optimization**: Secured 57% higher cat reinsurance coverage with 10% cost increase, reducing net retention to $5M for major events.

**【Long-Term Strategy】**
- **5-Year Growth Goal**: Aims to double written premium to $0.5B by 2030 via organic growth and E&S expansion into 4 new states (2026-2027). Leverages data science for risk-selective underwriting.
- **Market Opportunity**: U.S. Homeowners market ($173B in 2024) faces capacity shortage, with Kingstone targeting underserved catastrophe-prone geographies.

**【Financial Guidance】**
- **Updated 2025 Outlook**: Core premium growth 15-20%, GAAP combined ratio 79-83%, EPS $2.10-$2.50, ROE 30-38%. AmGuard transaction now expected to contribute $12M over 3 years (vs. prior $25-35M front-loaded estimate).
- **Capital Allocation**: Prioritizes growth over share buybacks, with $17.7M invested in high-yield securities (5.6% yield) and $1M+ bond portfolio appreciation.

**【Q&A Highlights】**
- **Reinsurance Risk Management**: Second-event retention of $7M (post-tax) with reinstatement premiums covered.
- **Expansion Costs**: Minimal near-term expense impact; systems and actuarial teams already in place.
- **AmGuard Dynamics**: Rate comparisons show policyholders likely to wait until non-renewal to switch, delaying premium inflows.


Kingstone Companies, Inc. (KINS) Q2 2025 Earnings Call Transcript

- **Record Growth**: 23% core DWP growth and 172% net income increase highlight Q1 2025 performance. 
- **AmGUARD Opportunity**: $25M-$35M premium potential from Q3 2025 renewal rights deal, with Select product driving profitability. 
- **Risk Management**: Non-cat loss ratio up 0.4pts due to fire severity, but offset by cat loss reduction. 
- **Financial Strength**: Debt-free balance sheet, 36% investment income growth, and $1.5M one-time gain from asset sale. 
- **Expansion Strategy**: 2026+ potential for new markets, with disciplined underwriting approach. 


**【CEO Opening Remarks】**
- Q1 2025 Direct Written Premium (DWP) grew 18% YoY, with core business up 23% and non-core down 64% as planned. Net income of $3.9M ($0.27 EPS) marked the 6th consecutive quarter of profitability.
- **AmGUARD Transaction**: Renewal rights deal with Berkshire Hathaway subsidiary approved by NY regulators; expected to generate $25M-$35M in premiums over 12 months, starting Q3 2025. Key benefits include upfront underwriting, higher conversion rates, and new producer introductions.
- **Select Product Performance**: Frequency dropped to 1.6% (vs. 2.3% legacy), with Select policies now 48% of in-force (target 60% by year-end). New business count rose 68%, driven by Adirondack/Mountain Valley withdrawals.

**【Financial Highlights】**
- Non-cat loss ratio increased 0.4pts due to higher fire severity, offset by 3.5pts reduction in catastrophe losses. Favorable prior year development of $600K improved loss ratio by 1.4pts.
- Expense ratio remained flat at 31.3%, despite $800K annualized interest savings from debt repayment. Net investment income jumped 36% to $2M, driven by portfolio growth and duration extension.
- Combined ratio of 93.7% vs. 93.3% last year, with operating income up 172% ($2.4M vs. $0.8M). One-time gain of $1.5M from HQ sale and $1.5M in bond issue costs written off.

**【Q&A Key Takeaways】**
- **Fire Losses**: 3.3pts increase in attritional losses offset by 3.5pts cat loss reduction; deemed random and non-concerning. 
- **Capital Allocation**: Board actively considers dividend restoration; no share buybacks planned. Focus on organic growth and AmGUARD transaction. 
- **Market Expansion**: 2026+ potential for new geographies, with emphasis on proper rate/risk matching. No 2025 expansion impact.
- **CFO Search**: Actively interviewing candidates; interim coverage by Victor Brodsky and Meryl Golden.
- **Investment Strategy**: Extended duration to 5.53 years for higher yields; $10M maturing in 2025 and $34M by 2026 will be reinvested at higher rates.


Kingstone Companies (KINS)-9 May 25-2025 Q1 Earnings call transcript

- **2024 Triumph**: 21% revenue growth, $18.4M net income, debt-free status with $800K annual savings.
- **2025 Outlook**: Core DWP 15-25% growth, 81-85% combined ratio, $1.90-$2.30 EPS, 27-35% ROE.
- **Market Dominance**: 49% Q4 DWP surge from competitors' exit, 44% policy count increase.
- **Cost Efficiency**: 29.8% expense ratio, 17.1pt loss ratio improvement, targeting 1pt expense reduction.
- **Expansion Ambition**: Exploring New England and other catastrophe-exposed states for strategic growth.

**【CEO Summary Section】**
- **Record-breaking 2024 Results**: 21% overall growth, 31% core business growth driven by competitors' exit. Fourth-quarter core direct written premium surged 49%, with homeowners' policies up 44% and average premium +15%.
- **Market Expansion and Debt-Free Milestone**: Fully paid off $20M debt, saving $800K in interest annually. 2025 plans include leveraging hard market conditions in Downstate NY and exploring strategic expansion beyond New York.
- **2025 Guidance**: Core DWP growth 15-25%, GAAP combined ratio 81-85%, EPS $1.90-$2.30, ROE 27-35%.

**【CFO Financial Commentary】**
- **Q4 2024 Financial Highlights**: Net income $5.4M ($0.40/diluted share), 37% DWP growth, 78.5% combined ratio (down 11pts). Full-year net income $18.4M vs. $6.2M loss in 2023.
- **Cost Efficiency**: Expense ratio improved 2.9pts to 29.8%, driven by reduced non-core business and Select product profitability. 2024 attritional loss ratio improved 17.1pts to 48.2%.
- **Investment Portfolio**: $39M invested in 5% yield bonds, with $46M maturing by 2026. Despite $3.1M unrealized loss, annualized ROE 34.4%.

**【Q&A Key Takeaways】**
- **2025 Growth Drivers**: Hard market persistence, moderate rate increases, and producer base expansion. 2025 core DWP guidance 15-25% reflects cautious optimism amid rumored new entrants.
- **Expense Ratio Target**: Aim to reduce expense ratio by 1pt in 2025, leveraging scale and Select product efficiency.
- **Expansion Strategy**: Exploring catastrophe-exposed geographies like New England, prioritizing market potential and regulatory environment.
- **Weather Impact**: Mild Q1 weather with no material catastrophe events, supporting low frequency trends.
- **Investment Yield**: Current portfolio yield 3.86%, with opportunities to reinvest maturing bonds at higher rates.

KINS

KINS fundamentals

Earnings Call

You can ask Aime