The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of a ...

Kingstone Companies (KINS) Q2 2025 Earnings Call August 08, 2025 08:30 AM ET Speaker0Greetings, and welcome to The Kingstone Companies Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Karen Daly, Vice President, The Equity Group and Kingstone Investor Relations representative.Thank yo ...

Investor Presentation – August 2025 1 2 Disclaimer & Forward-Looking Statements This presentation 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 resul ...

Core Insights - Major U.S. stock indices experienced a decline of nearly 1% on August 5, 2025, due to weaker-than-expected services data and ongoing tariff uncertainties, particularly with Trump threatening tariffs as high as 250% on pharmaceuticals [1][10] - Despite market volatility, low-leverage stocks are highlighted as safer investment options during economic uncertainty, with specific companies recommended for their strong earnings growth and low debt levels [2][10] Market Overview - The U.S. stock market is currently facing challenges due to tariff-related uncertainties and weaker economic data, leading to a lack of confidence among investors [2][10] - The recent wave of corporate earnings that exceeded estimates has been overshadowed by tariff concerns, impacting overall market optimism [1] Investment Strategy - Investors are advised to consider low-leverage stocks as a protective measure against potential economic downturns, with a focus on companies that exhibit solid earnings growth and lower debt-to-equity ratios [6][9] - The debt-to-equity ratio is emphasized as a critical metric for assessing financial risk, with lower ratios indicating better solvency [7][9] Recommended Low-Leverage Stocks - **NatWest Group (NWG)**: Collaborating with Google Cloud to enhance growth, with a projected 20.1% sales improvement for 2025 and a long-term earnings growth rate of 10.9% [15][16] - **Zions Bancorporation (ZION)**: Reported a 9% year-over-year increase in net interest income, with a 5% expected earnings growth for 2025 [17][18] - **Luxfer Holdings (LXFR)**: Achieved a 5.8% increase in adjusted net sales and a 25% rise in adjusted earnings per share, with a long-term earnings growth rate of 8% [19][20] - **Kingstone Companies (KINS)**: Declared a quarterly cash dividend, indicating strong financial health, with a projected 37.9% improvement in both sales and earnings for 2025 [21][22] - **Ingredion Inc. (INGR)**: Reported a 1% increase in adjusted operating income, with a long-term earnings growth rate of 11% and a 1% sales improvement expected for 2025 [23][24]

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) Kingstone Companies, Inc. filed this Form 8-K on July 17, 2025, to announce the dates for its Q2 2025 earnings release, investor call, and annual stockholders' meeting[2](index=2&type=chunk)[3](index=3&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Kingstone Companies, Inc. announces Q2 financial results, investor call, and annual meeting schedule, clarifying information is furnished, not filed Upcoming Corporate Events Schedule | Event | Date | Time (ET) | Notes | | :--- | :--- | :--- | :--- | | **Q2 Financial Results Release** | August 7, 2025 | After stock market close | News release to be issued | | **Investor & Analyst Conference Call** | August 8, 2025 | 8:30 A.M. | To discuss Q2 results | | **Annual Meeting of Stockholders** | August 6, 2025 | 9:00 A.M. | Virtual format | - The information furnished under this item, including Exhibit 99.1, is not to be deemed "filed" for purposes of Section 18 of the Exchange Act, nor will it be incorporated by reference into other filings unless explicitly stated[4](index=4&type=chunk) [Item 7.01 Regulation FD Disclosure](index=2&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) This section reiterates that the press release information is furnished under Regulation FD, not filed, and does not imply materiality - The information provided in the press release is furnished under Regulation FD and is not incorporated by reference into any registration statement unless specifically identified[6](index=6&type=chunk) - The company states that furnishing the press release information is not an admission that the information is material or complete for investment decisions[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits.) This section lists the exhibits accompanying the Form 8-K filing, primarily the press release detailing corporate event dates List of Exhibits | Exhibit No. | Description | | :--- | :--- | | 99.1 | Press release, dated July 17, 2025, issued by Kingstone Companies, Inc. | | 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis ...

Core Insights - Kingstone Companies Inc. (KINS) has significantly increased its catastrophe reinsurance limit by 57%, from $160 million to $440 million for the 2025/2026 period, which is crucial for its business strategy in the storm-exposed Northeast [1][8] - The cost of this expanded protection has only risen by 10%, resulting in catastrophe cover costs being 12% of projected direct premiums, down from 13% in the previous treaty period, positively impacting the bottom line by 11 cents in the second half of 2025 [2][8] - Reinsurance is not merely a risk mitigation tool for KINS but a core driver of its growth strategy, allowing the company to yield about 25% of its personal lines' premiums and improve its combined ratio, which supports its credit profile and capital efficiency [3][4] Reinsurance Strategy - A well-structured reinsurance program, along with sound underwriting and diversification, is essential for KINS to maintain a profitable and resilient portfolio, stabilizing earnings and unlocking growth opportunities despite challenging pricing conditions in the Northeast [4] - KINS' ability to secure favorable reinsurance terms reflects disciplined risk management, positioning the company for improved return on equity performance in the future [4] Competitive Landscape - KINS competes closely with Heritage Insurance Group (HRTG) and Kinsale Capital Group (KNSL), both of which also emphasize strong reinsurance programs and sound underwriting practices to maintain profitability [5][6] - Heritage is well-positioned to pursue higher-margin excess and surplus niches due to reduced volatility and available capital [5] - Kinsale Capital enhances its underwriting capacity through a prudent reinsurance strategy, which supports its ability to deliver consistent returns [6] Financial Performance - KINS shares have gained 0.4% year to date, underperforming the industry average [7] - The company trades at a price-to-book value ratio of 2.59, above the industry average of 1.55, but holds a Value Score of A, indicating strong fundamentals [10] - The Zacks Consensus Estimate for KINS' earnings for 2025 and 2026 has remained stable, with expectations for year-over-year revenue and EPS increases, supported by a Growth Score of A [11][12]

Core Insights - Kingstone Companies, Inc. (KINS) has shown significant growth in policies-in-force (PIF), with personal lines now constituting 96% of total PIF, up from 88% a year ago [1][8] - The exit of major insurers from the New York personal lines market in 2024 allowed KINS to capture a substantial share, writing over 6,000 new policies and adding $23 million in premium volume in the latter half of 2024 [2][8] - KINS anticipates a premium growth of 15-25% in its core segment for 2025, supported by newly onboarded policies that adhere to tightened underwriting standards [3][8] Company Strategy - KINS has strategically exited underperforming and non-core areas, allowing for a more focused allocation of underwriting resources, which has resulted in a nearly 19% year-over-year increase in renewal premiums in Q1 2025 [4] - The disciplined growth strategy has led to six consecutive profitable quarters and improved combined ratios, indicating a commitment to stable, high-margin growth [4] Competitive Landscape - KINS competes closely with Kinsale Capital Group (KNSL) and Heritage Insurance Group (HRTG), both of which also emphasize disciplined underwriting and targeted market expansion [5][6] - Kinsale's growth is driven by its expanding presence in the excess and surplus insurance market, while Heritage has focused on higher-margin segments, enhancing its underwriting results [5][6] Financial Performance - KINS shares have underperformed the industry, losing 2.5% year to date [7] - The company trades at a price-to-book value ratio of 2.46, above the industry average of 1.55, but holds a Value Score of A [9] - Consensus estimates for KINS' 2025 and 2026 revenues and EPS indicate year-over-year increases, with a Growth Score of A [10][11]

Core Insights - Kingstone Companies (KINS) shares have declined 2.7% year-to-date, underperforming the industry increase of 6.6% and trading at a discount to its 52-week high [1][8] - The company is the 12th largest homeowner insurer in New York with a market share of 2.1% and a market capitalization of $210 million [3] - KINS shares are trading at a premium to the industry with a price-to-book value of 2.45X compared to the industry average of 1.56X [6] Financial Performance - The 2025 EPS outlook is projected between $1.75 and $2.15, reflecting growth driven by rising premiums and strict underwriting [8][10] - The Zacks Consensus Estimate for 2025 earnings is $1.90, indicating a 31% increase on revenues of $214 million, with 2026 earnings expected to be $2.45, a 29% increase on revenues of $238.4 million [10] - Kingstone returned to profitability in 2024 with a projected combined ratio of 81%-85% in 2025, showing significant improvement in net margins [15] Market Position and Strategy - Kingstone is positioned to benefit from favorable industry trends, particularly with the Northeastern U.S. commercial insurance market expected to grow by 12.3% through 2025 [12] - The company is executing a focused growth strategy by concentrating on its core business and divesting from non-core segments [13] - Kingstone has realigned its pricing strategy in response to inflation, projecting a 15% to 25% increase in direct written premiums for its core business in 2025 [14] Efficiency and Returns - The return on equity (ROE) for Kingstone in the trailing 12 months was 31.9%, significantly higher than the industry average of 7.8% [16] - The return on invested capital (ROIC) was 29.4%, also above the industry average of 5.9%, indicating effective utilization of funds [18] Growth Potential - Kingstone's focus on improving pricing, combined ratio, and expanding margins is expected to drive strong earnings growth [19] - The average target price for KINS shares is $19, reflecting a 26.7% upside potential from its last closing price [19]

Group 1 - Kingstone Companies, Inc. (NASDAQ: KINS) is a small property and casualty insurer with a long history in New York [1] - The company has been relatively quiet for many years, but the stock has shown interest from investors [1] Group 2 - The company is characterized by growth in revenue, earnings, and free cash flow, which are important investment criteria [1] - Kingstone Companies has excellent growth prospects and favorable valuations, making it an attractive option for investors [1]