Direct Premiums Written Grow 14% and Net Income Increases 56% to $10.9 Million
Management to Host Conference Call Tomorrow at 8:30 a.m. Eastern Time
KINGSTON, N.Y., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Kingstone Companies, Inc. (Nasdaq: KINS) ("Kingstone" or the "Company"), a Northeast regional property and casualty insurance holding company, today announced its financial results for the third quarter ended September 30, 2025. The Company has also provided an investor presentation that can be accessed through the News & Events/Presentations section of the Company website at www.kingstonecompanies.com.
| Key Financial and Operational Highlights | ||||||||||||||||
| Quarters Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| ($ in thousands, except per share data) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||
| Direct premiums written1 | $ | 75,810 | $ | 66,627 | 13.8 | % | $ | 195,047 | $ | 169,447 | 15.1 | % | ||||
| Net combined ratio | 72.7 | % | 72.0 | % | 0.7 | pts | 79.0 | % | 80.7 | % | (1.7 | )pts | ||||
| Net income | $ | 10,872 | $ | 6,978 | 55.8 | % | $ | 26,007 | $ | 12,920 | 101.3 | % | ||||
| Net income per share - basic | $ | 0.77 | $ | 0.61 | 26.2 | % | $ | 1.88 | $ | 1.16 | 62.1 | % | ||||
| Net income per share - diluted | $ | 0.74 | $ | 0.55 | 34.5 | % | $ | 1.82 | $ | 1.05 | 73.3 | % | ||||
| Return on equity - annualized | 42.9 | % | 55.6 | % | (12.7 | )pts | 39.8 | % | 36.6 | % | 3.2 | pts | ||||
Management Commentary
Meryl Golden, President and Chief Executive Officer of Kingstone, stated, "Building on the momentum from our record second quarter 2025 performance, we again delivered one of the strongest quarters in our history with net income of $10.9 million, diluted earnings per share of $0.74, a GAAP net combined ratio of 72.7%, and an annualized return on equity of 42.9%.
"Direct premiums written for the quarter grew 14%, driven by higher average premiums and strong retention. The hard market conditions in our Downstate New York footprint have not changed materially. Our volume remains strong with a month-over-month increase in new business since June and continuing into the fourth quarter.
"Net earned premium growth continues to be a powerful tailwind, exceeding 40% for the third consecutive quarter of 2025, primarily due to our reduced quota share.
"Our net combined ratio of 72.7% was supported by lower frequency and lower-than-expected catastrophe losses as well as an increase in ceding commission resulting in a lower expense ratio. Notably, even with typical third quarter catastrophe losses, our combined ratio would have been in the low eighties, reflecting the differentiated platform we have built at Kingstone.
"We will continue to execute with discipline, advance our measured expansion roadmap and allocate capital prudently to drive sustained, profitable growth. Our success underscores the strength and durability of our strategy, and we remain committed to delivering long-term value to our shareholders."
Guidance (see "Disclaimer and Forward-Looking Statements" below)
The Company affirmed its growth guidance and raised its profitability outlook for fiscal year 2025, calculated based on anticipated net premiums earned of approximately $187 million, and is as follows:
| Guidance Metrics | 2025E | 2025 - Previous |
| Direct premiums written1growth | 12% to 17% | 12% to 17% |
| Net combined ratio | 78% to 82% | 79% to 83% |
| Net income per share - basic | $2.30 to $2.70 | $2.10 to $2.50 |
| Net income per share - diluted | $2.20 to $2.60 | $1.95 to $2.35 |
| Return on equity | 35% to 39% | 30% to 38% |
The Company affirmed its growth guidance and its profitability outlook for fiscal year 2026, calculated based on anticipated net premiums earned of approximately $233 million, and is as follows:
| Guidance Metrics | 2026E |
| Direct premiums written1growth | 15% to 20% |
| Net combined ratio | 79% to 83% |
| Net income per share - basic | $2.15 to $2.85 |
| Net income per share - diluted | $2.10 to $2.80 |
| Return on equity | 26% to 36% |
The following reflects the impact of dilution on total shares outstanding for the nine months ended September 30, 2025, and for the full year 2025 and 2026 guidance:
| Common Stock Metrics | Nine Months Ended | 2025E | 2026E |
| (shares in millions) | September 30, 2025 | ||
| Weighted average shares outstanding - basic | 13.8 | 13.9 | 14.4 |
| Weighted average shares outstanding - diluted | 14.3 | 14.5 | 14.7 |
| Total shares outstanding as of end of period - basic | 14.1 | 14.2 | 14.5 |
| Total shares outstanding as of end of period - diluted | 14.8 | 14.8 | 14.9 |
Consolidated Financial Results
| Consolidated Financial Results | Quarters Ended | Nine Months Ended | ||||||||||||||
| ($ in thousands, except policy and per share data) | September 30, | September 30, | ||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||
| Direct premiums written1 | $ | 75,810 | $ | 66,627 | 13.8 | % | $ | 195,047 | $ | 169,447 | 15.1 | % | ||||
| Net premiums earned | $ | 47,925 | $ | 33,407 | 43.5 | % | $ | 137,663 | $ | 92,531 | 48.8 | % | ||||
| Policies in force, at the end of the period | 78,026 | 74,887 | 4.2 | % | ||||||||||||
| Net investment income | $ | 2,499 | $ | 1,650 | 51.5 | % | $ | 6,848 | $ | 4,917 | 39.3 | % | ||||
| Net gains on investments | $ | 182 | $ | 827 | (78.0 | )% | $ | 591 | $ | 1,319 | (55.2 | )% | ||||
| Gain on sale of real estate | $ | - | $ | - | - | % | $ | 1,966 | $ | - | NM | |||||
| Underlying loss ratio1 | 44.1 | % | 39.2 | % | 4.9 | pts | 48.0 | % | 47.9 | % | 0.1 | pts | ||||
| Effect of prior-year reserve development | - | % | (1.9 | )% | 1.9 | pts | (0.6 | )% | (1.8 | )% | 1.2 | pts | ||||
| Net loss ratio excluding the effect of catastrophes1 | 44.1 | % | 37.3 | % | 6.8 | pts | 47.4 | % | 46.1 | % | 1.3 | pts | ||||
| Catastrophe loss ratio1 | 0.2 | % | 1.7 | % | (1.5 | )pts | 0.8 | % | 2.7 | % | (1.9) | pts | ||||
| Net loss ratio | 44.3 | % | 39.0 | % | 5.3 | pts | 48.2 | % | 48.8 | % | (0.6 | )pts | ||||
| Net underwriting expense ratio | 28.4 | % | 33.0 | % | (4.6) | pts | 30.8 | % | 31.9 | % | (1.1 | )pts | ||||
| Net combined ratio | 72.7 | % | 72.0 | % | 0.7 | pts | 79.0 | % | 80.7 | % | (1.7 | )pts | ||||
| Adjusted EBITDA1 | $ | 14,671 | $ | 10,433 | 40.6 | % | $ | 33,710 | $ | 21,213 | 58.9 | % | ||||
| Net Income | $ | 10,872 | $ | 6,978 | 55.8 | % | $ | 26,007 | $ | 12,920 | 101.3 | % | ||||
| Net Income per share - basic | $ | 0.77 | $ | 0.61 | 26.2 | % | $ | 1.88 | $ | 1.16 | 62.1 | % | ||||
| Net Income per share - diluted | $ | 0.74 | $ | 0.55 | 34.5 | % | $ | 1.82 | $ | 1.05 | 73.3 | % | ||||
| Return on equity - annualized | 42.9 | % | 55.6 | % | (12.7 | )pts | 39.8 | % | 36.6 | % | 3.2 | pts | ||||
| Other comprehensive income, net of tax | $ | 2,186 | $ | 3,584 | (39.0 | )% | $ | 5,431 | $ | 3,234 | 67.9 | % | ||||
| Operating net income1 | $ | 10,729 | $ | 6,325 | 69.6 | % | $ | 23,988 | $ | 11,878 | 102.0 | % | ||||
| Operating net income per share - basic1 | $ | 0.76 | $ | 0.55 | 38.2 | % | $ | 1.73 | $ | 1.07 | 61.7 | % | ||||
| Operating net income per share - diluted1 | $ | 0.73 | $ | 0.50 | 46.0 | % | $ | 1.68 | $ | 0.97 | 73.2 | % | ||||
| Operating return on equity1 | 10.6 | % | 12.6 | % | (2.0 | )pts | 27.5 | % | 25.2 | % | 2.3 | pts | ||||
| Operating return on equity1- annualized | 42.4 | % | 50.4 | % | (8.0 | )pts | 36.7 | % | 33.6 | % | 3.1 | pts | ||||
| Book value per share, at the end of the period - diluted | $ | 7.28 | $ | 4.32 | 68.7 | % | ||||||||||
| Book value per share, at the end of the period - diluted excluding AOCI | $ | 7.74 | $ | 4.97 | 55.7 | % | ||||||||||
NM = Not Meaningful
1 Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release.
Conference Call Details
Friday, November 7, 2025, at 8:30 a.m. Eastern Time
To participate please dial:
| U.S. toll free | 1-877-423-9820 | |
| International | 1-201-493-6749 | |
Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin. The conference call can also be accessed via webcast in the "News & Events/Events" tab of the Company's website at www.kingstonecompanies.com or by clicking here. The webcast will be archived and accessible for approximately 30 days.
About Kingstone Companies, Inc.
Kingstone is a Northeast regional property and casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Company ("KICO"). KICO is a New York domiciled carrier writing business through retail and wholesale agents and brokers. Kingstone delivers tailored homeowners insurance solutions through its sophisticated product suite, Select, supported by a scalable and efficient operating platform that enables the Company to pursue significant market opportunities and strategic expansion. KICO was the 12th largest writer of homeowners insurance in New York in 2024 and is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.
Investor Relations Contact:
Elevate IR
KINS@elevate-ir.com
720-330-2829
Disclaimer and Forward-Looking Statements
The guidance provided above is based on information available as of November 6, 2025 and management's review of the anticipated financial results for 2025. Such guidance remains subject to change based on management's ongoing review of the Company's 2025 results and is a forward-looking statement (see below). Kingstone assumes no obligation to update this guidance. The actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in Kingstone's annual and quarterly filings with the Securities and Exchange Commission.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. For more details on factors that could affect expectations, see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024.
The risks and uncertainties include, without limitation, the following:
- the risk of significant losses from catastrophes and severe weather events;
- risks related to the lack of a financial strength rating from A.M. Best;
- risks related to limitations on the ability of our insurance subsidiary to pay dividends to us;
- adverse capital, credit and financial market conditions;
- risks related to volatility in net investment income;
- the unavailability of reinsurance at current levels and prices;
- the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;
- the credit risk of our reinsurers;
- the inability to maintain the requisite amount of risk-based capital needed to grow our business;
- the effects of climate change on the frequency or severity of weather events and wildfires;
- risks related to the limited market area of our business;
- risks related to a concentration of business in a limited number of producers;
- legislative and regulatory changes, including changes in insurance laws and regulations and their application by our regulators;
- the effects of competition in our market areas;
- our reliance on certain key personnel;
- risks related to security breaches or other attacks involving our computer systems or those of our vendors; and
- our reliance on information technology and information systems.
Kingstone undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Definitions and Non-GAAP Measures
Direct premiums written represent the total premiums charged on policies issued by the Company during the respective fiscal period.
Net premiums written are direct premiums written less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct premiums written and net premiums written, are net premiums written that are pro-rata earned during the fiscal period presented. All of the Company's policies are written for a twelve-month period. Management uses direct premiums written and net premiums written, along with other measures, to gauge the Company's performance and evaluate results. Direct premiums written and net premiums written are provided as supplemental information, not as a substitute for net premiums earned, and do not reflect the Company's net premiums earned.
Adjusted EBITDA is net income (loss) exclusive of interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation. Net income (loss) is the GAAP measure most closely comparable to adjusted EBITDA.
Management uses adjusted EBITDA along with other measures to gauge the Company's performance and evaluate results, which can be skewed when including interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation, and may vary significantly between periods. Adjusted EBITDA is provided as supplemental information, not as a substitute for net income and does not reflect the Company's overall profitability.
Operating net income and basic operating net income per share is net income and basic income per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income and basic net income per share are the GAAP measures most closely comparable to operating net income and basic operating net income per share.
Management uses operating net income and basic operating net income per share along with other measures to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income and basic operating net income per share are provided as supplemental information, not as a substitute for net income and basic net income per share and do not reflect the Company's overall profitability.
Operating net income and diluted operating net income per share is net income and diluted income per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income and diluted net income per share are the GAAP measures most closely comparable to operating net income and diluted operating net income (loss) per share.
Management uses operating net income and diluted operating net income per share along with other measures to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income and diluted operating net income per share are provided as supplemental information, not as a substitute for net income and diluted net income per share, and do not reflect the Company's overall profitability.
Operating return on equity is operating income divided by average equity. Return on equity is the GAAP measure most closely comparable to operating return on equity.
Management uses operating return on equity, along with other measures, to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate, which may vary significantly between periods. Operating return on equity is provided as supplemental information, is not a substitute for return on equity and does not reflect the Company's overall return on average common equity.
Underlying loss ratio is a non-GAAP ratio, which is computed as the GAAP net loss ratio excluding the effect of prior year loss reserve development and catastrophe losses.
Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company's business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company's loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company's underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The underlying loss ratio should not be considered a substitute for the net loss ratio and does not reflect the Company's net loss ratio.
Net loss ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio and the effect of catastrophes on the net loss ratio.
Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company's business that may be obscured by catastrophe losses. Catastrophe losses cause the Company's net loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company's underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The net loss ratio excluding the effect of catastrophes should not be considered a substitute for the net loss ratio and does not reflect the Company's net loss ratio.
The table below reconciles direct premiums written to net premiums earned for the periods presented:
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| % | % | ||||||||||||||||||||||
| (000's except percentages) | 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||
| Direct Premiums Written Reconciliation: | |||||||||||||||||||||||
| Direct premiums written | $ | 75,810 | $ | 66,627 | 13.8 | % | $ | 195,047 | $ | 169,447 | 15.1 | % | |||||||||||
| Ceded written premiums | (44,161 | ) | (46,081 | ) | (4.2 | ) | (50,178 | ) | (69,381 | ) | (27.7 | ) | |||||||||||
| Net premiums written | 31,649 | 20,545 | 54.0 | 144,869 | 100,065 | 44.8 | |||||||||||||||||
| Change in unearned premiums | 16,276 | 12,862 | 26.5 | (7,206 | ) | (7,535 | ) | (4.4 | ) | ||||||||||||||
| Net premiums earned | $ | 47,925 | $ | 33,407 | 43.5 | % | $ | 137,663 | $ | 92,531 | 48.8 | % | |||||||||||
| (Components may not sum due to rounding) | |||||||||||||||||||||||
The following table reconciles net income to adjusted EBITDA for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| % | % | ||||||||||||||||||||||
| (000's except percentages) | 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||
| Adjusted EBITDA Reconciliation: | |||||||||||||||||||||||
| Net income | $ | 10,872 | $ | 6,978 | 55.8 | % | $ | 26,007 | $ | 12,920 | 101.3 | % | |||||||||||
| Interest expense | 73 | 901 | (91.9 | ) | 377 | 2,884 | (86.9 | ) | |||||||||||||||
| Income tax expense | 2,834 | 2,106 | 34.6 | 6,584 | 3,689 | 78.5 | |||||||||||||||||
| Depreciation and amortization | 645 | 619 | 4.2 | 1,882 | 1,836 | 2.5 | |||||||||||||||||
| EBITDA | 14,423 | 10,604 | 36.0 | 34,850 | 21,329 | 63.4 | |||||||||||||||||
| Loss on extinguishment of debt | - | 297 | (100.0 | ) | 175 | 297 | (41.1 | ) | |||||||||||||||
| Net gain on investments | (182 | ) | (827 | ) | (78.0 | ) | (591 | ) | (1,319 | ) | (55.2 | ) | |||||||||||
| Gain on sale of real estate | - | - | - | (1,966 | ) | - | NM | ||||||||||||||||
| Stock-based compensation | 430 | 359 | 19.8 | 1,241 | 906 | 37.0 | |||||||||||||||||
| Adjusted EBITDA | $ | 14,671 | $ | 10,433 | 40.6 | % | $ | 33,710 | $ | 21,213 | 58.9 | % | |||||||||||
| (Components may not sum due to rounding) | |||||||||||||||||||||||
NM = Not Meaningful
The following table reconciles net income to operating net income and basic net income per share to basic operating net income per share for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||
| (000's except per common share and outstanding share amounts) | Amount | Basic income per common share | Amount | Basic income per common share | Amount | Basic income per common share | Amount | Basic income per common share | |||||||||||||||||||||||||
| Net income | $ | 10,872 | $ | 0.77 | $ | 6,978 | $ | 0.61 | $ | 26,007 | $ | 1.88 | $ | 12,920 | $ | 1.16 | |||||||||||||||||
| Net gain on investments | (182 | ) | (827 | ) | (591 | ) | (1,319 | ) | |||||||||||||||||||||||||
| Gain on sale of real estate | - | - | (1,966 | ) | - | ||||||||||||||||||||||||||||
| Net gain on investments and gain on sale of real estate | (182 | ) | (827 | ) | (2,557 | ) | (1,319 | ) | |||||||||||||||||||||||||
| Less tax expense on net gain | (38 | ) | (174 | ) | (537 | ) | (277 | ) | |||||||||||||||||||||||||
| Net gain on investments and (gain) on sale of real estate, net of taxes | (144 | ) | $ | (0.01 | ) | (653 | ) | $ | (0.06 | ) | (2,020 | ) | $ | (0.15 | ) | (1,042 | ) | $ | (0.09 | ) | |||||||||||||
| Operating net income | $ | 10,729 | $ | 0.76 | $ | 6,325 | $ | 0.55 | $ | 23,988 | $ | 1.73 | $ | 11,878 | $ | 1.07 | |||||||||||||||||
| Weighted average basic shares outstanding | 14,142,374 | 11,404,360 | 13,849,283 | 11,142,043 | |||||||||||||||||||||||||||||
| (Components may not sum due to rounding) | |||||||||||||||||||||||||||||||||
The following table reconciles net income to operating net income and diluted net income per share to diluted operating net income per share for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||
| (000's except per common share and outstanding share amounts) | Amount | Diluted income per common share | Amount | Diluted income per common share | Amount | Diluted income per common share | Amount | Diluted income per common share | |||||||||||||||||||||||
| Net income | $ | 10,872 | $ | 0.74 | $ | 6,978 | $ | 0.55 | $ | 26,007 | $ | 1.82 | $ | 12,920 | $ | 1.05 | |||||||||||||||
| Net gain on investments | (182 | ) | (827 | ) | (591 | ) | (1,319 | ) | |||||||||||||||||||||||
| Gain on sale of real estate | - | - | (1,966 | ) | - | ||||||||||||||||||||||||||
| Net gain on investments and gain on sale of real estate | (182 | ) | (827 | ) | (2,557 | ) | (1,319 | ) | |||||||||||||||||||||||
| Less tax expense on net gain | (38 | ) | (174 | ) | (537 | ) | (277 | ) | |||||||||||||||||||||||
| Net gain on investments and gain on sale of real estate, net of taxes | (144 | ) | $ | (0.01 | ) | (653 | ) | $ | (0.05 | ) | (2,020 | ) | $ | (0.14 | ) | (1,042 | ) | $ | (0.09 | ) | |||||||||||
| Operating net income | $ | 10,729 | $ | 0.73 | $ | 6,325 | $ | 0.50 | $ | 23,988 | $ | 1.68 | $ | 11,878 | $ | 0.97 | |||||||||||||||
| Weighted average diluted shares outstanding | 14,601,241 | 12,581,128 | 14,303,326 | 12,249,576 | |||||||||||||||||||||||||||
| (Components may not sum due to rounding) | |||||||||||||||||||||||||||||||
The following table reconciles net income to operating net income and return on equity to operating return on equity for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| (000's except percentages) | 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||
| Operating Net Income Reconciliation: | |||||||||||||||||||||
| Net income | $ | 10,872 | $ | 6,978 | 55.8 | % | $ | 26,007 | $ | 12,920 | 101.3 | % | |||||||||
| Net gain on investments | (182 | ) | (827 | ) | (78.0 | )% | (591 | ) | (1,319 | ) | (55.2 | )% | |||||||||
| Gain on sale of real estate | - | - | - | % | (1,966 | ) | - | NM | |||||||||||||
| Net gain on investments and gain on sale of real estate | (182 | ) | (827 | ) | (78.0 | )% | (2,557 | ) | (1,319 | ) | 93.9 | % | |||||||||
| Less tax expense on net gain | (38 | ) | (174 | ) | (78.2 | )% | (537 | ) | (277 | ) | 93.9 | % | |||||||||
| Net gain on investments and gain on sale of real estate, net of taxes | (144 | ) | (653 | ) | (77.9 | )% | (2,020 | ) | (1,042 | ) | 93.9 | % | |||||||||
| Operating net income | $ | 10,729 | $ | 6,325 | 69.6 | % | $ | 23,988 | $ | 11,878 | 102.0 | % | |||||||||
| Operating Return on Equity Reconciliation: | |||||||||||||||||||||
| Net income | $ | 10,872 | $ | 6,978 | 55.8 | % | $ | 26,007 | $ | 12,920 | 101.3 | % | |||||||||
| Average equity | $ | 101,265 | $ | 50,236 | 101.6 | % | $ | 87,181 | $ | 47,087 | 85.1 | % | |||||||||
| Return on equity | 10.7 | % | 13.9 | % | (3.2 | )pts | 29.8 | % | 27.4 | % | 2.4 | pts | |||||||||
| Return on equity - annualized | 42.9 | % | 55.6 | % | (12.7 | )pts | 39.8 | % | 36.6 | % | 3.2 | pts | |||||||||
| Net gain on investments and gain on sale of real estate, net of taxes | $ | (144 | ) | $ | (653 | ) | (77.9 | )% | $ | (2,020 | ) | $ | (1,042 | ) | 93.9 | % | |||||
| Average equity | $ | 101,265 | $ | 50,236 | 101.6 | % | $ | 87,181 | $ | 47,087 | 85.1 | % | |||||||||
| Effect of net gain on investments and gain on sale of real estate, net of taxes, on return on equity | (0.1 | )% | (1.3 | )% | 1.2 | pts | (2.3 | )% | (2.2 | )% | (0.1 | )pts | |||||||||
| Operating net income | $ | 10,729 | $ | 6,325 | 69.6 | % | $ | 23,988 | $ | 11,878 | 102.0 | % | |||||||||
| Operating net income - annualized | $ | 42,914 | $ | 25,300 | 69.6 | % | $ | 31,984 | $ | 15,837 | 102.0 | % | |||||||||
| Average equity | $ | 101,265 | $ | 50,236 | 101.6 | % | $ | 87,181 | $ | 47,087 | 85.1 | % | |||||||||
| Operating return on equity | 10.6 | % | 12.6 | % | (2.0 | )pts | 27.5 | % | 25.2 | % | 2.3 | pts | |||||||||
| Operating return on equity - annualized | 42.4 | % | 50.4 | % | (8.0 | )pts | 36.7 | % | 33.6 | % | 3.1 | pts | |||||||||
| (Components may not sum due to rounding) | |||||||||||||||||||||
NM = Not Meaningful
The following table reconciles the underlying loss ratio and the net loss ratio excluding the effect of catastrophes to the net loss ratio for the periods presented:
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2025 | 2024 | Percentage Point Change | 2025 | 2024 | Percentage Point Change | |||||||||||||||
| Underlying Loss Ratio Reconciliation: | ||||||||||||||||||||
| Underlying Loss Ratio | 44.1 | % | 39.2 | % | 4.9 | pts | 48.0 | % | 47.9 | % | 0.1 | pts | ||||||||
| Effect of prior-year reserve development | - | % | (1.9) % | 1.9 | pts | (0.6) % | (1.8) % | 1.2 | pts | |||||||||||
| Net loss ratio excluding the effect of catastrophes | 44.1 | % | 37.3 | % | 6.8 | pts | 47.4 | % | 46.1 | % | 1.3 | pts | ||||||||
| Effect of catastrophes | 0.2 | % | 1.7 | % | (1.5 | ) | pts | 0.8 | % | 2.7 | % | (1.9 | ) | pts | ||||||
| Net loss ratio | 44.3 | % | 39.0 | % | 5.3 | pts | 48.2 | % | 48.8 | % | (0.6 | ) | pts | |||||||
| (Components may not sum due to rounding) | ||||||||||||||||||||
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES | ||||||
| Consolidated Balance Sheets | ||||||
| September 30, 2025 | December 31, 2024 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of | ||||||
| $5,174,675 at September 30, 2025 and $5,959,265 at December 31, 2024) | $ | 6,043,708 | $ | 7,047,342 | ||
| Fixed-maturity securities, available-for-sale, at fair value (amortized cost of | ||||||
| $261,180,534 at September 30, 2025 and $202,308,158 at December 31, 2024) | 252,640,428 | 186,893,438 | ||||
| Equity securities, at fair value (cost of $13,546,654 at September 30, 2025 and $13,527,554 at December 31, 2024 | 10,409,833 | 10,296,505 | ||||
| Other investments | 4,889,148 | 4,380,656 | ||||
| Total investments | 273,983,117 | 208,617,941 | ||||
| Cash and cash equivalents | 26,772,302 | 28,669,441 | ||||
| Premiums receivable, net of allowance for credit losses of $477,154 at September 30, 2025 and $402,290 at December 31, 2024 | 18,252,649 | 21,766,988 | ||||
| Reinsurance receivables, net | 60,019,060 | 69,322,436 | ||||
| Prepaid reinsurance | 2,142,329 | - | ||||
| Deferred policy acquisition costs | 25,377,781 | 24,732,371 | ||||
| Intangible assets | 500,000 | 500,000 | ||||
| Property and equipment, net | 7,861,007 | 9,283,970 | ||||
| Deferred income taxes, net | 4,138,144 | 5,597,920 | ||||
| Other assets | 9,543,853 | 6,424,776 | ||||
| Total assets | $ | 428,590,242 | $ | 374,915,843 | ||
| Liabilities | ||||||
| Loss and loss adjustment expense reserves | $ | 141,194,246 | $ | 126,210,428 | ||
| Unearned premiums | 140,041,140 | 134,701,733 | ||||
| Advance premiums | 7,711,957 | 3,503,063 | ||||
| Reinsurance balances payable | 5,690,029 | 10,509,121 | ||||
| Deferred ceding commission revenue | 7,562,417 | 11,541,239 | ||||
| Accounts payable, accrued expenses and other liabilities | 12,152,437 | 10,570,388 | ||||
| Income taxes payable | 1,832,290 | - | ||||
| Debt, net (current $1,278,094 and long-term $3,474,590 at September 30, 2025, | ||||||
| current $6,849,257 and long-term $4,322,163 at December 31, 2024,) | 4,752,684 | 11,171,420 | ||||
| Total liabilities | 320,937,200 | 308,207,392 | ||||
| Commitments and Contingencies | - | - | ||||
| Stockholders' Equity | ||||||
| Preferred stock, $.01 par value; authorized 2,500,000 shares | - | - | ||||
| Common stock, $.01 par value; authorized 20,000,000 shares; issued 15,671,553 shares at September 30, 2025 and 14,448,205 shares at December 31, 2024; outstanding 14,147,428 shares at September 30, 2025 and 12,924,080 shares at December 31, 2024 | 156,715 | 144,482 | ||||
| Capital in excess of par | 99,264,372 | 89,063,326 | ||||
| Accumulated other comprehensive loss | (6,744,530 | ) | (12,175,476 | ) | ||
| Retained earnings (accumulated deficit) | 20,544,492 | (4,755,874 | ) | |||
| 113,221,049 | 72,276,458 | |||||
| Treasury stock, at cost, 1,524,125 shares at September 30, 2025 and December 31, 2024 | (5,568,007 | ) | (5,568,007 | ) | ||
| Total stockholders' equity | 107,653,042 | 66,708,451 | ||||
| Total liabilities and stockholders' equity | $ | 428,590,242 | $ | 374,915,843 | ||
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES | |||||||||||||||
| Consolidated Statements of Income and Comprehensive Income (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenues | |||||||||||||||
| Net premiums earned | $ | 47,925,053 | $ | 33,407,194 | $ | 137,663,376 | $ | 92,530,708 | |||||||
| Ceding commission revenue | 4,900,401 | 4,741,676 | 10,940,648 | 13,870,748 | |||||||||||
| Net investment income | 2,499,071 | 1,649,673 | 6,847,934 | 4,917,129 | |||||||||||
| Net gains on investments | 182,122 | 826,522 | 590,594 | 1,319,307 | |||||||||||
| Gain on sale of real estate | - | - | 1,965,989 | - | |||||||||||
| Other income | 145,843 | 146,663 | 437,503 | 401,128 | |||||||||||
| Total revenues | 55,652,490 | 40,771,728 | 158,446,044 | 113,039,020 | |||||||||||
| Expenses | |||||||||||||||
| Loss and loss adjustment expenses | 21,232,324 | 13,027,597 | 66,334,564 | 45,125,492 | |||||||||||
| Commission expense | 10,308,092 | 9,004,254 | 30,250,601 | 25,088,546 | |||||||||||
| Other underwriting expenses | 8,358,432 | 6,894,590 | 23,491,221 | 18,675,720 | |||||||||||
| Other operating expenses | 1,330,258 | 1,241,572 | 3,519,475 | 2,820,620 | |||||||||||
| Depreciation and amortization | 644,653 | 619,056 | 1,881,880 | 1,835,503 | |||||||||||
| Interest expense | 72,609 | 900,583 | 377,137 | 2,884,181 | |||||||||||
| Total expenses | 41,946,368 | 31,687,652 | 125,854,878 | 96,430,062 | |||||||||||
| Income from operations before taxes | 13,706,122 | 9,084,076 | 32,591,166 | 16,608,958 | |||||||||||
| Income tax expense | 2,833,647 | 2,105,931 | 6,583,699 | 3,689,197 | |||||||||||
| Net income | 10,872,475 | 6,978,145 | 26,007,467 | 12,919,761 | |||||||||||
| Other comprehensive income, net of tax | |||||||||||||||
| Gross decrease in net unrealized losses | |||||||||||||||
| on available-for-sale-securities | 2,760,803 | 4,533,334 | 6,862,488 | 4,082,771 | |||||||||||
| Reclassification adjustment for net losses | |||||||||||||||
| included in net income | 6,322 | 3,939 | 12,126 | 11,468 | |||||||||||
| Net decrease in net unrealized losses | 2,767,125 | 4,537,273 | 6,874,614 | 4,094,239 | |||||||||||
| Income tax expense related to items | |||||||||||||||
| of other comprehensive income | (581,096 | ) | (952,827 | ) | (1,443,668 | ) | (859,789 | ) | |||||||
| Other comprehensive income, net of tax | 2,186,029 | 3,584,446 | 5,430,946 | 3,234,450 | |||||||||||
| Comprehensive income | $ | 13,058,504 | $ | 10,562,591 | $ | 31,438,413 | $ | 16,154,211 | |||||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.77 | $ | 0.61 | $ | 1.88 | $ | 1.16 | |||||||
| Diluted | $ | 0.74 | $ | 0.55 | $ | 1.82 | $ | 1.05 | |||||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 14,142,374 | 11,404,360 | 13,849,283 | 11,142,043 | |||||||||||
| Diluted | 14,601,241 | 12,581,128 | 14,303,326 | 12,249,576 | |||||||||||
