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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KINS

KINS fundamentals

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