Financial Performance - For the three months ended September 30, 2025, net premiums earned increased to $47,925,053, up 43.3% from $33,407,194 in the same period of 2024[16]. - Total revenues for the nine months ended September 30, 2025, reached $158,446,044, a 40.1% increase compared to $113,039,020 for the same period in 2024[16]. - Net income for the three months ended September 30, 2025, was $10,872,475, representing a 55.5% increase from $6,978,145 in the prior year[16]. - The net income for the nine months ended September 30, 2025, was $26,007,467, indicating strong financial performance[22]. - Net income for the nine months ended September 30, 2025, was $26,007,467, a significant increase from $12,919,761 in the same period of 2024, representing a growth of approximately 101.5%[26]. - Operating segment net income for the three months ended September 30, 2025, was $13,072,385, compared to $9,361,919 in 2024, marking a 39.0% increase[169]. Assets and Equity - Total assets as of September 30, 2025, amounted to $428,590,242, an increase of 14.3% from $374,915,843 at December 31, 2024[15]. - Stockholders' equity increased to $107,653,042 as of September 30, 2025, compared to $66,708,451 at December 31, 2024, reflecting a growth of 61.5%[15]. - As of September 30, 2025, the total stockholders' equity reached $107,653,042, up from $66,708,451 on January 1, 2025[22]. - The company’s total assets as of September 30, 2025, were $428,590,242, compared to $318,292,723 in 2024, indicating a growth of 34.7%[170]. Liabilities and Reserves - The company reported total liabilities of $320,937,200 as of September 30, 2025, an increase from $308,207,392 at December 31, 2024[15]. - Loss and loss adjustment expense reserves rose to $141,194,246, up 11.9% from $126,210,428 at December 31, 2024[15]. - The net balance of unpaid loss and LAE reserves at the end of the nine months ended September 30, 2025, was $106,377,687, an increase from $93,887,791 at the beginning of the period, reflecting a growth of approximately 13.5%[63]. - The total balance of loss and LAE reserves at the end of the period was $141,194,246, up from $126,210,428 at the end of 2024, marking an increase of approximately 11.9%[63]. Investment Performance - The company reported a gross decrease in net unrealized losses on available-for-sale securities of $6,862,488 for the nine months ended September 30, 2025[16]. - The company experienced a net cash outflow of $56,363,084 in investing activities for the nine months ended September 30, 2025, compared to an outflow of $9,218,359 in 2024[26]. - The total fixed-maturity securities amounted to $261,180,534 as of September 30, 2025, with gross unrealized losses of $10,228,979[40]. - The estimated fair value of available-for-sale fixed-maturity securities as of September 30, 2025, was $252.64 billion, down from $186.89 billion on December 31, 2024[42]. Premiums and Underwriting - The company reported premiums written of $195,047,268 for the nine months ended September 30, 2025, up from $169,446,603 in the same period of 2024, indicating a growth of about 15.1%[61]. - Premiums earned for the nine months ended September 30, 2025, were $137,663,376, compared to $92,530,708 for the same period in 2024, reflecting a year-over-year increase of approximately 48.7%[61]. - For the three months ended September 30, 2025, direct written premiums increased by 13.8% to $75.81 million compared to $66.63 million in the same period of 2024[207]. - The net combined ratio for the three months ended September 30, 2025, was 72.7%, slightly up from 72.0% in 2024, while the nine-month net combined ratio improved to 79.0% from 80.7%[170]. Reinsurance and Risk Management - The company entered into a 27% quota share reinsurance treaty for its personal lines business effective January 1, 2024, transitioning to a 16% quota share treaty on January 1, 2025[83]. - A new catastrophe bond ("Series 2025-1 Notes") was issued providing $125,000,000 of collateralized reinsurance protection, priced at 4.5%, effective July 1, 2025[84]. - The total reinsurance recoverable on unpaid losses as of September 30, 2025, was $34,817,000[82]. - The total gross liability for loss and LAE reserves reflects a significant increase in reinsurance coverage and strategic risk management initiatives[82]. Stock and Compensation - The Company declared a quarterly dividend of $0.05 per share, paid on August 26, 2025[107]. - Stock-based compensation for the three months ended September 30, 2024, was recorded at $359,170[20]. - Stock-based compensation increased to $1,241,040 for the nine months ended September 30, 2025, compared to $906,375 in 2024, reflecting a rise of approximately 37%[26]. - The Company accrued $1,414,952 for the employee bonus plan for the three months ended September 30, 2025, compared to $873,219 in 2024, marking a rise of about 61.9%[159]. Growth and Strategic Initiatives - The company has initiated a 5-Year Growth Plan aiming for $500 million in direct written premiums, effectively doubling the company's size[211]. - The company is expanding its footprint in Downstate New York by offering replacement policies to homeowners affected by competitors' withdrawal from the market[210]. - The current plan includes going live in two states in 2026 and two additional states in 2027[212]. - A thorough study of selected geographies has been conducted with the help of industry-leading third-party advisors[212].

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Financial Data and Key Metrics Changes - The company reported net income of $10.9 million and diluted earnings per share of $0.74, marking the second most profitable quarter in its history and the eighth consecutive quarter of profitability [3][10] - The GAAP combined ratio was 72.7%, with an annualized return on equity of 43% [3][10] - Direct written premium grew by 14%, and net investment income increased by 52% to $2.5 million [3][10] Business Line Data and Key Metrics Changes - Policies in force increased by 4.2% year over year and 1.4% sequentially, indicating stability in the agent and customer base [5] - The Select homeowners program now represents 54% of policies in force, with a claim frequency 31% lower than the legacy product [7] - The underlying loss ratio was 44.1%, an increase of 4.9 percentage points year over year, driven by higher claim severity [5][7] Market Data and Key Metrics Changes - The company experienced a month-over-month increase in new business since June, continuing into the fourth quarter [4] - The growth of 14% for the quarter was primarily driven by an average premium increase of 13% and improved retention [4] - Catastrophe losses contributed 0.2 percentage points to the loss ratio compared to 1.7 percentage points in the prior year quarter, indicating a favorable trend [7] Company Strategy and Development Direction - The company is progressing with its state expansion initiative and plans to present a multi-year roadmap in the first half of next year [8] - Guidance for 2025 has been raised for net combined ratio, EPS, and ROE, while maintaining direct written premium growth expectations between 12% and 17% [8][9] - The company aims to capitalize on opportunities in the homeowners' market, particularly in catastrophe-exposed areas, where demand exceeds supply [29] Management's Comments on Operating Environment and Future Outlook - Management noted that hard market conditions in downstate New York remain stable, with strong overall volume despite competitors broadening their underwriting appetite [4] - The company anticipates retention rates, which represent over 80% of the premium base, to continue trending higher as rate changes moderate [4] - Management expressed confidence in the company's competitive position, citing a high conversion rate and healthy growth despite increased competition [23] Other Important Information - The company has no debt at its holding company, and shareholders' equity exceeded $107 million, an increase of 80% year over year [13] - The year-to-date return on equity is 39.8%, an increase of 3 percentage points from the same period last year [14] Q&A Session Summary Question: Will all accounts eventually move to the select product? - Management confirmed that the legacy book will be maintained as it is profitable, with plans to convert it to select only when it becomes small enough [17] Question: Is all new business written on the select platform? - Yes, all new business has been written in Select since the beginning of 2022 [18] Question: How is the new E&S product being developed? - The company is currently developing the new product with an outside actuarial consulting firm, leveraging experience from the select product [19] Question: How has the AmGuard book performed since its inception? - The AmGuard book is performing within expectations, with a current writing rate of about $1 million a month [22] Question: How is competition evolving in downstate New York? - Management noted that competitors are expanding their target areas, but the company's growth remains healthy with a high conversion rate [23]

Financial Data and Key Metrics Changes - The company reported net income of $10.9 million and diluted earnings per share of $0.74, marking the second most profitable quarter in its history and the eighth consecutive quarter of profitability [2][9] - The GAAP combined ratio was 72.7%, with an annualized return on equity of 43% [2][9] - Direct written premium grew by 14%, and net investment income increased by 52% to $2.5 million [2][9][10] Business Line Data and Key Metrics Changes - Policies in force increased by 4.2% year-over-year and 1.4% sequentially, indicating stability in the agent and customer base [4] - The Select homeowners program now represents 54% of policies in force, with a claim frequency 31% lower than the legacy product [6] - The underlying loss ratio was 44.1%, an increase of 4.9 percentage points year-over-year, driven by higher claim severity [4][6] Market Data and Key Metrics Changes - The company experienced a month-over-month increase in new business since June, continuing into the fourth quarter [3] - The growth of 14% for the quarter was primarily driven by an average premium increase of 13% and improved retention [3] - Catastrophe losses contributed only 0.2 percentage points to the loss ratio compared to 1.7 percentage points in the prior year quarter, indicating a favorable trend [6] Company Strategy and Development Direction - The company is progressing with its state expansion initiative and plans to present a multi-year roadmap in the first half of next year [7] - Guidance for 2025 has been raised for net combined ratio, EPS, and ROE, while reaffirming direct written premium growth to range between 12% and 17% [7][8] - The company aims to maintain a disciplined posture on pricing and exposure management while seeking opportunities to enhance portfolio yield [8][10] Management's Comments on Operating Environment and Future Outlook - Management noted that hard market conditions in downstate New York have not changed materially, with strong overall volume [3] - The homeowners' market is in a crisis due to companies not making money, presenting an opportunity for the company to expand geographically [28] - Management expressed confidence in the company's competitive position despite increased competition in the market [22] Other Important Information - The company has no debt at its holding company, and shareholders' equity exceeded $107 million, an increase of 80% year-over-year [12] - Year-to-date return on equity is 39.8%, an increase of 3 percentage points from the same period last year [13] Q&A Session Summary Question: Will all accounts eventually move to the Select product? - Management confirmed that the legacy book will be maintained as it is profitable, and any conversion will occur only when it becomes small enough [16] Question: Is all new business written on the Select platform? - Yes, all new business has been written in Select since the beginning of 2022 [17] Question: How is the new E&S product being developed? - The company is deep into the development of the new product, benefiting from the experience gained with the Select product [18] Question: How has the AmGUARD book performed since writing began? - The performance is on track with expectations, writing about $1 million a month so far [21] Question: How are competitors expanding in downstate New York? - Competitors are opening up to writing more classes of business, but the company's growth remains healthy with a high conversion rate [22]

Financial Data and Key Metrics Changes - The company reported net income of $10.9 million and diluted earnings per share of $0.74, marking the second most profitable quarter in its history and the eighth consecutive quarter of profitability [3][10] - The GAAP combined ratio was 72.7%, with an annualized return on equity of 43% [3][10] - Direct written premium grew by 14%, and net investment income increased by 52% to $2.5 million [3][10] Business Line Data and Key Metrics Changes - Policies in force increased by 4.2% year over year and 1.4% sequentially, indicating stability in the agent and customer base [5] - The Select homeowners program now represents 54% of policies in force, with a claim frequency 31% lower than legacy products [6] - The underlying loss ratio was 44.1%, an increase of 4.9 percentage points year over year, driven by higher claim severity [5][6] Market Data and Key Metrics Changes - The company experienced a month-over-month increase in new business since June, continuing into the fourth quarter [4] - The growth of 14% for the quarter was primarily driven by an average premium increase of 13% and improved retention [4] - Catastrophe losses contributed only 0.2 percentage points to the loss ratio compared to 1.7 percentage points in the prior year quarter [6] Company Strategy and Development Direction - The company plans to present a multi-year roadmap for state expansion in the first half of next year [8] - Guidance for 2025 has been raised for net combined ratio, EPS, and ROE, while maintaining direct written premium growth expectations between 12% and 17% [8][9] - The company aims to capitalize on opportunities in the homeowners' market, particularly in catastrophe-exposed areas, to expand geographically [33] Management's Comments on Operating Environment and Future Outlook - Management noted that hard market conditions in downstate New York have not changed materially, with strong overall volume [4] - The company expects retention, which represents over 80% of its premium base, to continue trending higher as rate changes transition to high single digits [4] - Management remains optimistic about the competitive landscape, indicating a healthy growth trajectory despite increased competition [23] Other Important Information - The company has no debt at its holding company, and shareholders' equity exceeded $107 million, an increase of 80% year over year [12] - The year-to-date return on equity is 39.8%, an increase of 3 percentage points from the same period last year [12] Q&A Session Summary Question: Will all accounts eventually move to the select product? - The company will maintain its legacy book as it is profitable, with plans to convert to select only when it becomes small enough [17] Question: Is all new business put on the select platform? - Yes, all new business has been written in Select since the beginning of 2022 [18] Question: How is the new E&S product being developed? - The company is working with an outside actuarial consulting firm to develop the new product, benefiting from the experience gained with the select product [19] Question: How has the AmGuard book performed? - The AmGuard book is performing as expected, with a mix similar to the select product and geographic diversification [22] Question: How is competition in downstate New York evolving? - Competitors are expanding their target areas, but the company has maintained a healthy growth rate and high conversion rates [23]

Company Overview - Kingstone is the 12th largest homeowners' insurer in the State of New York, founded in 1886 [5] - The company's market capitalization is $208 million, with a stock price of $1458 as of October 31, 2025 [5] - Shares outstanding are 14,147,428 as of September 30, 2025 [4, 5] - Policies in-force of 78,000 at September 30, 2025 [5] Financial Performance (Q3 2025 vs Q3 2024) - Direct Written Premium Growth of +14% [5] - Net Investment Income Growth of 52% with an average portfolio yield of 403% [5] - Net premiums earned increased by 435% to $47925 thousand [72] - Net income increased by 558% to $10872 thousand [72] Profitability and Expense Management - Kingstone achieves superior profitability compared to the industry, which has an average combined ratio of 1036% (2017-2025E) [27] - The company reduced its net expense ratio by 10 points from 2021 to 2024 [33] - The company retired legacy systems saving $15 million annually [33] Strategic Initiatives and Guidance - The company estimates approximately $12 million in premiums beginning 9/1/2025 from AmGuard renewal rights transaction [44] - Direct premiums written growth is guided at 12% to 17% for 2025 [51] - The company anticipates net premiums earned of approximately $187 million for fiscal year 2025 [48] - The company aims for ~$500 million Direct Premiums Written by 2029 [59]

Core Insights - Kingstone Companies, Inc. reported a 14% growth in direct premiums written and a 56% increase in net income to $10.9 million for Q3 2025, reflecting strong operational performance and market conditions [1][3][4]. Financial Performance - Direct premiums written for Q3 2025 reached $75.81 million, up from $66.63 million in Q3 2024, marking a 13.8% increase [2]. - Net income for Q3 2025 was $10.87 million, compared to $6.98 million in Q3 2024, representing a 55.8% increase [2][9]. - The net combined ratio improved slightly to 72.7% in Q3 2025 from 72.0% in Q3 2024, indicating effective cost management [2][9]. - Net income per share (diluted) increased to $0.74 in Q3 2025 from $0.55 in Q3 2024, a growth of 34.5% [2][9]. Operational Highlights - The company experienced a net earned premium growth exceeding 40% for the third consecutive quarter, primarily due to a reduced quota share [4]. - The net combined ratio was supported by lower frequency and lower-than-expected catastrophe losses, along with an increase in ceding commission, resulting in a lower expense ratio [5][9]. - Policies in force at the end of Q3 2025 totaled 78,026, a 4.2% increase from the previous year [8]. Future Guidance - Kingstone affirmed its growth guidance for 2025, projecting direct premiums written growth of 12% to 17% and a net combined ratio of 78% to 82% [6][7]. - For 2026, the company anticipates direct premiums written growth of 15% to 20% and a net combined ratio of 79% to 83% [7]. Investment Metrics - The annualized return on equity for Q3 2025 was reported at 42.9%, down from 55.6% in Q3 2024 [2][9]. - Book value per share (diluted) increased to $7.28, a 68.7% rise compared to the previous year [9].

Core Points - Kingstone Companies, Inc. has declared a quarterly cash dividend of $0.05 per share of common stock [1] - The dividend will be paid on November 26, 2025, to stockholders of record at the close of business on November 11, 2025 [1]

Industry Overview - The property and casualty (P&C) insurance industry is facing challenges from rising catastrophic events and the Federal Reserve's first 2025 rate cut of 25 basis points, with two more cuts likely this year. However, growth prospects remain strong due to a shift toward personalized products and deeper customer engagement through digital innovation [1][3] - Insurers are maintaining profitability through higher premium volumes, solid policyholder retention, and expanding exposure across diverse business lines in a favorable rate environment [1] Company Analysis: Heritage Insurance Holdings (HRTG) - Heritage Insurance is focusing on profitability by maintaining rate adequacy, enforcing strict underwriting standards, and restricting new policy issuance in oversaturated markets. The company has ceased new personal lines policy writings in Florida and the Northeast since December 2022 but is cautiously restarting underwriting due to favorable legislative developments [4][5] - The company plans to re-enter high-margin markets while maintaining disciplined capital allocation and leveraging data-driven exposure management to foster sustainable long-term growth [5] - Heritage's excess and surplus (E&S) lines segment is a key growth catalyst, with a reinsurance framework designed to protect against catastrophic weather losses. The company anticipates a reduction in its ceded premium ratio due to cost-effective reinsurance arrangements [6] - Investments in technology infrastructure, including Guidewire Cloud and predictive modeling, are enhancing underwriting precision and claims handling. A $10 million share repurchase program has been authorized to enhance shareholder returns [7] Company Analysis: Kingstone Companies (KINS) - Kingstone Companies is strategically positioned in the Northeastern U.S. commercial insurance market, projected to expand by 12.3% through 2025. The company is focused on strengthening its regional foothold and increasing market share while exiting underperforming business lines [8][9] - KINS has effectively raised rates ahead of inflation, ensuring premium adequacy. Collaboration with Earnix has improved pricing precision, with expectations of direct written premiums growing between 15% and 20% in 2025 [10] - The company aims to lower net underwriting expense ratios through higher average premiums and streamlined staffing, anticipating an improved combined ratio of 79% to 83% in 2025 [11] - KINS has seen a significant improvement in profitability, with net margins expanding 2,560 basis points over the past two years. The company projects net income between $1.95 and $2.35 per share in 2025, with a return on equity expected to remain strong at 30%-38% [12][13] Financial Estimates - The Zacks Consensus Estimate for HRTG's 2025 EPS implies a year-over-year increase of 104%, while KINS' 2025 EPS indicates a 37.9% increase [14][16] - HRTG is trading at a price-to-book multiple of 1.85, while KINS' price-to-book multiple is at 2.22, both above their respective medians over the last five years [17] Conclusion - HRTG's growth is supported by a growing commercial residential business, expanded personal lines capacity, and solid earnings, while KINS is positioned to tap into a market opportunity of over $200 million through core business expansion and improved pricing [18][19] - HRTG has outperformed the industry with a year-to-date share gain of 89%, while KINS shares have lost 1.7%. HRTG appears to be a safer bet for higher returns [21]

[FORM 8-K Filing Information](index=1&type=section&id=FORM%208-K%20Filing%20Information) This section provides administrative details of the Form 8-K filing, including registrant information and registered securities [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section details the registrant's identity, filing specifics, and registered securities for the Form 8-K - The report is a Form 8-K Current Report filed by **KINGSTONE COMPANIES, INC.** on **October 16, 2025**[1](index=1&type=chunk)[2](index=2&type=chunk) Registrant Information | Detail | Value | | :--- | :--- | | Registrant Name | KINGSTONE COMPANIES, INC. | | State of Incorporation | Delaware | | Commission File Number | 000-01665 | | IRS Employer Identification No. | 36-2476480 | | Principal Executive Offices | 120 Wood Road, Kingston, New York 12401 | | Registrant's Telephone Number | (845) 802-7900 | | Date of Report (Earliest Event) | October 16, 2025 | Registered Securities | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock, $0.01 par value per share | KINS | NASDAQ | [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section announces the company's third-quarter 2025 financial results release and conference call details [Earnings Release and Conference Call Announcement](index=2&type=section&id=Earnings%20Release%20and%20Conference%20Call%20Announcement) Kingstone Companies, Inc. announced its Q3 2025 financial results release date and conference call details - Kingstone Companies, Inc. will issue its Q3 2025 financial results after market close on **Thursday, November 6, 2025**[3](index=3&type=chunk) - Management will host a conference call to discuss results on **November 7, 2025, at 8:30 A.M. ET**[3](index=3&type=chunk) - A copy of the press release is furnished as **Exhibit 99.1**[3](index=3&type=chunk) [Filing Status and Liabilities](index=2&type=section&id=Filing%20Status%20and%20Liabilities) Information under Item 2.02 is 'furnished,' not 'filed,' affecting its liability and incorporation by reference - Information furnished with Item 2.02, including Exhibit 99.1, is deemed **'furnished' and not 'filed'** under Section 18 of the Securities Exchange Act of 1934[4](index=4&type=chunk) - This information is not subject to Section 18 liabilities and is not 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 clarifies Regulation FD disclosure is furnished, not filed, and not an admission of materiality [Disclosure Nature and Implications](index=2&type=section&id=Disclosure%20Nature%20and%20Implications) Press Release information is furnished under Regulation FD, not filed, and does not imply materiality or completeness - The Press Release information is **furnished, not filed**, pursuant to Item 7.01 Regulation FD Disclosure[6](index=6&type=chunk) - Furnishing this information does not constitute an admission of materiality or completeness 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 all exhibits for the Form 8-K filing, including the press release and interactive data file [Exhibits List](index=2&type=section&id=Exhibits%20List) This section lists the Form 8-K exhibits, specifically the press release and the interactive data file List of Exhibits | Exhibit Number | Description | | :--- | :--- | | 99.1 | Press release, dated October 16, 2025, issued by Kingstone Companies, Inc. | | 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | [Signatures](index=3&type=section&id=Signatures) This section formally authorizes and signs the Form 8-K report on behalf of Kingstone Companies, Inc [Report Authorization](index=3&type=section&id=Report%20Authorization) This section formally authorizes and signs the Form 8-K report on behalf of Kingstone Companies, Inc - The report was duly signed on behalf of **KINGSTONE COMPANIES, INC.** as required by the Securities Exchange Act of 1934[9](index=9&type=chunk)[10](index=10&type=chunk) Signatory Details | Detail | Value | | :--- | :--- | | Dated | October 16, 2025 | | Signatory | Randy Patton | | Title | Chief Financial Officer |