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Introduction & Market Context
Kingstone Companies Inc. (NASDAQ:KINS) unveiled its August 2025 investor presentation highlighting strong second-quarter performance and an improved outlook for the remainder of the year. The company, which ranks as the 12th largest homeowner’s insurer in New York State, has seen its stock surge 9.75% in premarket trading to $17.78 following the presentation, building on its impressive 350% return over the past year.
The 139-year-old insurer has positioned itself to capitalize on market consolidation in New York as competitors exit the region, creating what management describes as an "unprecedented market opportunity." With a market capitalization of $217 million and a strong financial strength rating of ’A, Excellent’ from Demotech, Kingstone appears well-positioned for continued growth.
Quarterly Performance Highlights
Kingstone reported robust growth in the second quarter of 2025, with core direct written premiums increasing 17% compared to Q2 2024. The company’s net investment income grew by 30% year-over-year, supported by an average portfolio yield of 3.93%. These results mark the seventh consecutive profitable quarter for Kingstone.
As shown in the following overview of key company metrics:
The company’s policies in force reached 77,000 as of June 30, 2025, reflecting successful market penetration in its core New York market. This growth builds on the momentum seen in Q1 2025, when Kingstone reported earnings per share of $0.27, significantly outperforming the forecasted loss of $0.09.
Kingstone’s disciplined underwriting approach has consistently delivered superior profitability compared to industry averages. As illustrated in the combined ratio comparison chart:
The company has maintained a combined ratio below the industry average for several years, with expectations to achieve a ratio between 79% and 83% for 2025, compared to an industry average of 104.2% between 2017 and 2024.
Strategic Market Opportunity (SO:FTCE11B)
A key driver of Kingstone’s growth strategy is capitalizing on competitors exiting the New York market. The presentation highlighted that Adirondack & Mountain Valley withdrew from New York in the second half of 2024, while AmGuard is set to exit in late Q3 2025.
These market exits have created significant opportunities for Kingstone, which has already written approximately $29 million in premiums across 6,000 policies from companies leaving the market. Additionally, the company has signed a renewal rights transaction with AmGuard that is expected to generate approximately $12 million in premiums beginning September 1, 2025.
As shown in the following chart of direct premiums written growth:
Kingstone achieved 31% growth in New York in fiscal year 2024 and is projecting 15-20% growth in 2025, driven primarily by renewal premiums and market share gains from exiting competitors.
Product Innovation & Business Mix
A significant contributor to Kingstone’s improved performance is its "Select" product suite, launched in 2022 for homeowners, dwelling fire, and condo insurance. Select uses a by-peril rating structure and modern data science techniques to better match rate to risk.
As illustrated in the following chart showing the product’s performance:
The Select product now represents 48% of policies in force as of June 30, 2025, and has demonstrated approximately 31% lower frequency than legacy products. The company has also successfully shifted its business mix toward more profitable segments.
The following chart shows Kingstone’s business mix evolution:
Core homeowners insurance has grown from 54% of the business in December 2023 to 67% by June 2025, while non-core business outside New York has been strategically reduced from 14% to just 3% during the same period.
Financial Outlook & Guidance
Kingstone has raised its 2025 guidance, reflecting increased confidence in its business trajectory. The updated outlook is based on anticipated net premiums earned of approximately $187 million, up from the previous estimate of $184 million.
As shown in the following guidance summary:
The company now expects a combined ratio of 79-83% (improved from 81-85% previously) and net income per share of $2.10-$2.50 basic and $1.95-$2.35 diluted, representing increases from prior guidance. Return on equity is projected at 30-38%, up from the previous range of 27-35%.
Expense Management & Investment Performance
Kingstone has made significant progress in reducing expenses, cutting its net expense ratio by 10 percentage points from 2021 to 2024. This improvement has been driven by restructured producer compensation, retirement of legacy systems, and other efficiency initiatives.
The following chart illustrates the company’s expense reduction progress:
On the investment front, Kingstone’s high-quality portfolio continues to deliver consistent income growth. Net investment income increased from $1.8 million in Q2 2024 to $2.3 million in Q2 2025, while the average market yield has steadily improved from 2.92% in 2021 to 3.93% in Q2 2025.
The following chart details the investment portfolio composition and performance:
Long-Term Growth Strategy
Looking beyond 2025, Kingstone outlined an ambitious five-year growth plan targeting approximately $500 million in direct premiums written by 2029. This strategy includes geographic expansion with plans to enter two new states in 2026 and two additional states in 2027.
As illustrated in the strategic expansion plan:
The company intends to operate as an Excess and Surplus (E&S) carrier in these new geographies, which should provide diversification benefits, reduce geographic concentration risk, and strengthen financial stability.
Valuation & Investment Perspective
Kingstone’s management emphasized that the company represents an attractive value investment opportunity relative to peers. With a forward price-to-earnings ratio of 8.0x, Kingstone trades below the peer group median of 9.8x despite its strong performance and growth trajectory.
The following chart compares Kingstone’s valuation to other property insurers:
The company’s leadership team, which includes President & CEO Meryl S. Golden and CFO Randy L. Patten, brings over 85 years of combined insurance experience to execute on this growth strategy. During the Q1 earnings call, CEO Golden emphasized that Kingstone is "not the same company we were in 2017," highlighting the transformation that has positioned the insurer for sustainable growth.
With seven consecutive profitable quarters, a clear strategy to capitalize on market consolidation in New York, and plans for geographic expansion, Kingstone appears well-positioned to continue its positive momentum through 2025 and beyond.
Full presentation:
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