Financial Data and Key Metrics Changes - The company reported a net income of $3,900,000 or $0.27 per diluted share, marking a 172% increase in net income compared to the prior year [3][16] - Direct written premium growth was 18% overall, with a 23% increase in the core business [3][16] - The combined ratio was 93.7%, close to the 93.3% from the same quarter last year, while operating income nearly tripled to $2,400,000 [12][16] Business Line Data and Key Metrics Changes - The select homeowners program's cumulative frequency decreased for thirteen consecutive quarters, with a frequency of 1.6% compared to 2.3% for the legacy product [6] - Core policies in force increased by 10% year-over-year, led by a 19% increase in homeowners policies [9] - New business policy count increased by 68%, contributing to the growth in core business premiums [8] Market Data and Key Metrics Changes - The company expects to generate $25,000,000 to $35,000,000 in premiums from the Amgard transaction over a twelve-month period [8] - The hard market conditions in Downstate New York remain stable, with companies beginning to increase their underwriting appetite [8] Company Strategy and Development Direction - The company plans to focus on its core state of New York and capitalize on hard market conditions to maximize profitable growth [7][16] - There is a cautious approach towards expanding into other jurisdictions, with a strategy set for 2026 and beyond [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, emphasizing the discipline of the underwriting strategy in a challenging environment [16] - The company does not anticipate a material impact from inflation on results, maintaining a flat expense ratio [12] Other Important Information - The company finalized the sale of its headquarters, resulting in a one-time after-tax gain of $1,500,000 [12] - Net investment income increased by 36% to $2,000,000, driven by strong cash generation from operations [13] Q&A Session Summary Question: Fire losses details - Management confirmed that fire losses were 3.3 points higher than anticipated, offset by lower catastrophe losses, and expressed no concern over these losses as they were random events [20][21] Question: Capital management priorities - The Board is actively discussing the restoration of dividends, but no share buybacks are envisioned in the near future due to growth opportunities [24][25] Question: Amgard transaction pricing - Management indicated that Amgard's pricing is higher and that they are filing for a rate increase in New York, which may close the pricing gap [26][27] Question: CFO search update - A retained search firm has been hired, and interviews are ongoing to fill the CFO position [28] Question: Expansion into other states - The company will focus on Downstate New York for 2025 but is considering other geographies for future growth, ensuring a thoughtful approach [45][46]

Financial Performance & Growth - Kingstone's stock price was $1862 as of March 31, 2025, with 13,759,292 shares outstanding[9] - Direct premiums written grew by 179% to $58175 thousand in Q1 2025 compared to $49325 thousand in Q1 2024[55] - Net premiums earned increased by 510% to $43523 thousand in Q1 2025 from $28820 thousand in Q1 2024[55] - Net income surged by 1721% to $3883 thousand in Q1 2025, up from $1427 thousand in Q1 2024[55] - The annualized return on equity was 208% in Q1 2025, compared to 164% in Q1 2024[55] - Adjusted EBITDA increased by 451% to $4256 thousand in Q1 2025 from $2934 thousand in Q1 2024[55] Business Strategy & Market Position - Core business, representing 96% of total policies, focuses on growth in Downstate NY[16] - The company is capitalizing on a >$200 million market opportunity due to competitor withdrawal from New York State[29] - Kingstone was ranked as the 12th largest homeowners insurer in NY in 2024 with a market share of 21%[16] Portfolio & Reinsurance - 83% of the fixed income portfolio is rated A or higher[64] - The average portfolio yield is 359%[64] 2025 Guidance - The company anticipates core business direct premiums written growth of 15% to 25%[66] - The combined ratio is projected to be between 81% and 85%[66] - Net income per share is estimated to be $190 to $230 basic and $175 to $215 diluted[66] - The return on equity is projected to be between 27% and 35%[66]

Conference Call and Financial Results - Kingstone Companies, Inc. will hold a conference call on May 9, 2025, at 8:30 A.M. ET to discuss its business operations and first quarter results[3] - The financial results news release is scheduled to be issued on May 8, 2025, after the stock markets close[3] Press Release Information - The press release regarding the financial results will not be deemed "filed" under the Securities Exchange Act of 1934[4] - The information in the press release will not be incorporated by reference into any registration statement unless specifically identified[6] Company Leadership - Meryl Golden serves as the President and CEO of Kingstone Companies, Inc.[11]

Kingstone Companies (NASDAQ: KINS ) is a small, regional insurance company operating in the New York area. I wrote my first article on the company back in January. The stock had been performing spectacularly until the tariffL/S Equity Research. Mostly micro and small caps. I use this platform to bounce ideas around and try to get different point of views. Contact me at theredkraken7@gmail.com, it's always nice to make new friends =)Analyst’s Disclosure: I/we have a beneficial long position in the shares of ...

Core Viewpoint - The article discusses the current state of the stock market, highlighting the positive performance of major indices due to strong earnings expectations from tech companies, while also emphasizing the importance of investing in low-leverage stocks to mitigate risks during market volatility [1][2]. Group 1: Market Overview - All three major stock indices of Wall Street ended positively on April 24, driven by better-than-expected earnings anticipation from tech giants like Alphabet and Intel [1]. - Investors remain cautious due to recent tariff announcements by U.S. President Trump, which have caused volatility in the global stock market [1][2]. Group 2: Investment Strategy - Investors are advised to focus on low-leverage stocks to minimize risks during market downturns [2][6]. - Low-leverage stocks are characterized by lower debt-to-equity ratios, which indicate improved solvency and reduced financial risk [7][9]. Group 3: Stock Selection Criteria - The article outlines specific criteria for selecting low-leverage stocks, including: - Debt/Equity less than the industry median [11]. - Current price of at least $10 [11]. - Average 20-day volume of at least 50,000 shares [11]. - Positive earnings growth compared to the industry median [11]. - VGM Score of A or B combined with a Zacks Rank of 1 or 2 [12]. - Estimated one-year EPS growth greater than 5% [12]. Group 4: Company Highlights - **Bilibili (BILI)**: Reported 104 million daily active users in 2024, with a projected 11% sales improvement for 2025 and a Zacks Rank of 2 [13][14]. - **Kingstone Companies (KINS)**: Announced a $70 million agreement to provide replacement policies in New York, with a projected 37.9% sales improvement for 2025 and a Zacks Rank of 1 [15]. - **Engie S.A. (ENGIY)**: Secured a 10-year extension for nuclear reactors, leading to a projected 19.6% earnings improvement for 2025 and a Zacks Rank of 1 [16]. - **ASML Holding (ASML)**: Achieved a 46.3% year-over-year increase in net sales and a 92.9% increase in earnings per share, with a projected 21.5% sales improvement for 2025 and a Zacks Rank of 2 [17][18]. - **Resmed (RMD)**: Reported an 8% revenue increase and a 13% surge in adjusted net income, with a projected 9% sales improvement for fiscal 2025 and a Zacks Rank of 2 [19].

The U.S. Excess & Surplus (E&S) insurance market has been experiencing growth. Customized solutions for complex risk are the essence of this non-admitted insurance market. The E&S market stands to benefit from the inflow of business from standard companies and from rate increases driven by inflation and relatively tight underwriting conditions. The market share of total U.S. P&C premiums has also been on the rise. Also, some admitted insurers have reduced their exposure or exited certain markets due to prof ...

Company Overview - Kingstone Companies is the 12th largest homeowner insurer in New York with a market share of 2.1% in 2024, positioned to capitalize on a market opportunity exceeding $200 million as competitors exit the personal property market in July 2024 [3]. Price Performance - Shares of Kingstone Companies (KINS) have gained 9.1% year to date, outperforming the Finance sector's return of 2.3% and the S&P 500 composite's decline of 5.1%, although underperforming the industry's growth of 15.7% [4]. Valuation Metrics - KINS is trading at a price-to-book value of 3.07X, which is higher than the industry average of 1.65X, indicating a premium valuation [10]. - Despite its expensive valuation, KINS has a Value Score of A, suggesting that stocks with a solid Value Score and favorable Zacks Rank tend to yield better returns [10][21]. Growth Projections - The Zacks Consensus Estimate for KINS suggests a 31% and 29% year-over-year increase in earnings for 2025 and 2026, respectively, with expected earnings per share for 2025 between $1.75 and $2.15, up from previous guidance [12][20]. - Kingstone Companies anticipates direct written premiums in its core business to grow between 15% and 25% in 2025 [14]. Financial Health - The company has successfully lowered its net underwriting expense ratio and improved its cash balance while reducing debt, expecting a combined ratio between 81% and 85% in 2025 [16]. - Kingstone Companies has a return on equity of 36.1%, significantly higher than the industry average of 8.3%, indicating effective utilization of shareholder funds [17]. Strategic Focus - Kingstone Companies is focusing on its core business and scaling back unprofitable non-core operations, only writing businesses that meet its underwriting standards and profit-margin objectives [13]. - The company has implemented price increases ahead of inflation, enhancing its pricing capabilities through a partnership with Earnix [14].

Core Viewpoint - Kingstone Companies, Inc (KINS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Kingstone Companies for the fiscal year ending December 2025 is projected at $1.80 per share, reflecting a 24.1% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Kingstone Companies has risen by 16.1%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, making it a reliable tool for investors to gauge stock performance [2][3]. - The Zacks Rank system categorizes stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Kingstone Companies' upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [11].

Group 1 - Kingstone Companies is a New York-based insurance company that provides personal lines and auto insurance through its main subsidiary, Kingstone Insurance Company [1] - The company was founded in 1886 and operates with more than 700 licensed agents [1]

Strategy and Business Optimization - In 2023, the company initiated a new strategy called "Kingstone 3.0" to optimize its in-force business, following the previous "Kingstone 2.0" framework[48]. - The company reduced its non-Core book of business by 48% in 2023 and plans a further reduction of 65% in 2024 due to profitability concerns[56]. - The company aims to lower its net expense ratio to 33% by the end of 2024 through continued expense reduction efforts[55]. Financial Performance and Reserves - The company incurred $64.41 million in losses related to the current year in 2024, compared to $82.86 million in 2023[64]. - The net balance of loss and loss adjustment expenses at the end of 2024 was $93.89 million, an increase from $88.53 million at the end of 2023[64]. - The company has established reserves for unpaid losses, including $126.21 million in total reserves at the end of 2024[64]. - The net reserve for loss and loss adjustment expenses as of December 31, 2023, is $88,529,000, showing a slight decrease from $90,680,000 in 2022[68]. - The cumulative amount of reserve paid, net of reinsurance recoverable, one year later is $24,319,000 for 2023, down from $35,854,000 in 2022[68]. - The gross reserves as of December 31, 2023, are $121,818,000, an increase from $118,340,000 in 2022[68]. - The net cumulative redundancy (deficiency) for 2023 is $1,780,000, indicating a positive shift from a deficiency of $3,565,000 in 2022[68]. Reinsurance and Catastrophe Management - The company entered into a 30% quota share reinsurance treaty for personal lines business effective January 1, 2023, which will be followed by a 27% treaty starting January 1, 2024[71]. - The maximum net retention for any one personal lines occurrence increased from $700,000 to $730,000 effective January 1, 2024[72]. - In 2024, the company purchased catastrophe reinsurance providing coverage of up to $280,000,000 for losses associated with a single event[75]. - The net retention for the first event of a named storm catastrophe occurrence under the 2024/2025 Treaty is $4,750,000, with a second event retention of $9,500,000[75]. - The company has implemented a new reinsurance structure that is on a "net" of catastrophe reinsurance basis, differing from previous "gross" arrangements[74]. - In 2024, catastrophe losses increased the net loss ratio by 1.9 percentage points, while in 2023, it increased by 7.1 percentage points[79]. Regulatory Compliance and Legislative Changes - KICO's total adjusted capital (TAC) to authorized control level (ACL) ratio was 5.62, indicating compliance with New York's risk-based capital requirements[99]. - KICO's unassigned surplus was $13,658,183 as of December 31, 2024, with a maximum dividend payout of $12 million allowed without prior approval[100]. - KICO had three ratios outside the usual range as per the Insurance Regulatory Information System (IRIS) as of December 31, 2024[101]. - The New York State legislature passed a bill in 2024 requiring regulations for hurricane windstorm deductibles to be adopted by August 19, 2025[95]. - The DFS adopted amendments to cybersecurity regulations on November 1, 2023, requiring enhanced reporting and management of cybersecurity risks[86]. - KICO is subject to insurance holding company laws in New York, requiring fair and reasonable transactions among companies in the holding company system[80]. - The DFS commenced its examination of KICO for the years 2019 through 2022 in 2023, which was completed in 2024[97]. - The Terrorism Risk Insurance Program is scheduled to expire on December 31, 2027, serving as a federal backstop for terrorism-related insurance claims[89]. - KICO's ability to withdraw from unprofitable markets is restricted by state laws, which did not affect its exit from the commercial liability market in 2019[84]. Employee Relations and Corporate Governance - As of December 31, 2024, the company had 99 employees, with no employees covered by a collective bargaining agreement[106]. - The company maintains a good relationship with its employees[106]. - The company files its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K with the SEC, which are available free of charge on its investor relations website[107]. - The SEC maintains a website that contains reports and information regarding issuers that file electronically[107]. - The item regarding quantitative and qualitative disclosures about market risk is not applicable to smaller reporting companies[320]. Market Position - In 2024, the company was the 12th largest writer of homeowners insurance in New York, holding a 1.6% market share[57]. - The company has a strong focus on underwriting and claims management, utilizing detailed expertise and industry claims databases[50]. - The company has a network of over 700 producers, emphasizing long-term relationships and careful selection based on various performance metrics[51].