Kingstone CFO resigns, company maintains 2025 outlook

Published 01/04/2025, 22:14
Kingstone CFO resigns, company maintains 2025 outlook

KINGSTON, NY - Kingstone Companies, Inc. (NASDAQ:KINS), a regional property and casualty insurance holding firm, announced the resignation of Chief Financial Officer Jennifer Gravelle, effective April 18, 2025. Gravelle is stepping down to pursue other opportunities but will continue her role until her departure to ensure a smooth transition. The announcement comes as the company, currently valued at $227 million, has demonstrated remarkable market performance, with its stock price surging over 260% in the past year according to InvestingPro data.

Victor Brodsky, Kingstone’s Chief Accounting Officer, along with Meryl Golden, President and Chief Executive Officer, will take on the CFO responsibilities post-Gravelle’s exit. Brodsky, who has a long history with Kingstone including prior roles as CFO and Treasurer, will serve in the interim as the company searches for a permanent CFO replacement with the help of an executive search firm.

The company has confirmed that Gravelle’s resignation is not due to any disagreements with Kingstone’s operations, policies, or practices. "We are grateful for Jennifer’s contributions and wish her the best," said Meryl Golden. "We are confident in our leadership team and Victor’s ability to ensure continuity."

Kingstone reiterated its financial guidance for the full year 2025, originally provided on March 13, 2025. The company expects direct premiums written to grow by 15% to 25%, with a combined ratio between 81% to 85%. Net income per share is projected to be between $1.90 to $2.30 on a basic level and $1.75 to $2.15 on a diluted basis. Return on equity is anticipated to be between 27% to 35%. InvestingPro analysis shows the company currently trades at a P/E ratio of 10.3x, with analysts maintaining a strong buy recommendation. Get access to 8 more exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports.

These projections are based on an estimated net premium earned of approximately $184 million for the year. The guidance takes into account the dilutive effect of total shares outstanding, with basic and diluted weighted average shares expected to be around 13.3 million and 14.2 million, respectively.

This forward-looking statement is based on information available as of April 1, 2025, and may change subject to ongoing financial results review. It is important to note that actual outcomes could materially differ due to various risk factors and uncertainties.

Kingstone, primarily operating through its subsidiary Kingstone Insurance Company (KICO), writes personal and commercial auto insurance policies in multiple northeastern states and was ranked as the 12th largest writer of homeowners insurance in New York in 2024. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its Fair Value, with a strong financial health score of 3.46 out of 5. The company generated revenue of $155 million in the last twelve months, with an impressive return on equity of 36%. This news is based on a press release statement from Kingstone Companies, Inc.

In other recent news, Kingstone Companies Inc. reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.46, compared to the forecasted $0.42. The company’s revenue also exceeded projections, reaching $72.53 million against an anticipated $71.8 million. Kingstone achieved a full-year net income of $18.4 million, marking a significant turnaround from a loss in the previous year. Direct written premiums saw a 21% growth overall, with a notable 31% increase in its core business. Additionally, Kingstone has formed a partnership with Snapsheet to enhance its claims resolution process, aiming to improve efficiency and customer experience through digital advancements. This collaboration reflects Kingstone’s ongoing efforts to modernize its operations. Furthermore, Kingstone has successfully eliminated its debt, which is expected to save approximately $800,000 in interest expenses in 2025. Lastly, the company reaffirmed its guidance for 2025, projecting core business direct written premium growth between 15% and 25%.

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