Financial Data and Key Metrics Changes - The company reported a net income of $11.3 million for the quarter, a 150% increase compared to the same quarter last year, marking the most profitable quarter in its history [3][4] - The diluted earnings per share for the quarter was $0.78, with an annualized return on equity of 50.8% [3][4] - The combined ratio improved to 71.5%, a 6.7 percentage point decrease from 78.2% in the same quarter last year [12] Business Line Data and Key Metrics Changes - Direct written premium grew by 14% for the quarter, with a 17% increase in the core business, while non-core business saw a planned reduction of 42% [6] - The core property premium growth was driven by a 21% increase in new business policy count and a 15% higher renewal average premium [7] - The non-catastrophe loss ratio improved by 8.4 percentage points to 38.7% from 47.1% in the prior year quarter [9] Market Data and Key Metrics Changes - The homeowners market is currently facing a crisis due to inadequate pricing and rising catastrophe costs, leading to a scarcity of options for consumers [19] - The broader homeowners market in the U.S. was approximately $173 billion in written premium, with New York representing only $8 billion or about 5% of the total [18] Company Strategy and Development Direction - The company aims to achieve a five-year goal of $5 billion in written premium, effectively doubling its size [16] - Plans for geographic expansion into two new states in 2026 and two additional states in 2027 have been outlined, with a focus on ensuring rate adequacy [17] - The company intends to leverage data analytics and data science to enhance product design and underwriting processes [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to expand opportunistically due to fewer market participants and demand exceeding supply in the homeowners market [20] - The company has updated its guidance for 2025, refining core business direct written premium growth to a range of 15% to 20% [25] Other Important Information - The company reinstated its quarterly dividend, reflecting its commitment to rewarding shareholders and confidence in future growth [5][6] - The net investment income for the quarter increased by 30% to $2.3 million, driven by strong cash generation from operations [13][14] Q&A Session Summary Question: What happens if a second event occurs in your territory? - The company has a second event retention of $9 million, with a reinstatement premium for the first layer of its catastrophe tower [28][29] Question: What impact will the expansion into new states have on your expense ratio? - Management indicated that the expansion will not significantly impact the expense ratio, as the expenses related to expansion will be small compared to earned premium growth [30][32] Question: Regarding the Amgard transaction, why is the expected premium lower than initially thought? - The company clarified that the premium benefit from the Amgard transaction is expected to be spread more proportionately over three years rather than front-loaded, due to a better understanding of rate levels [34][35]

Financial Performance - Kingstone's core direct written premium grew by 17% compared to Q2 2024[6] - Net investment income increased by 30% compared to Q2 2024, with an average portfolio yield of 393%[6] - The company's combined ratio improved to 715% in Q2 2025, compared to 782% in Q2 2024[70] - Adjusted EBITDA increased by 884% to $14783 thousand in Q2 2025, compared to $7845 thousand in Q2 2024[70] - Net income rose by 1492% to $11252 thousand in Q2 2025, compared to $4515 thousand in Q2 2024[70] Strategic Initiatives - Kingstone's "Select" product has a ~31% lower frequency than the "Legacy" product, indicating improved risk selection[18] - Select policies represent 48% of policies in force as of June 30, 2025[18] - The company achieved a NY growth of +31% in FY2024[49] - Kingstone estimates approximately $12 million in premiums from the AmGuard renewal rights transaction, beginning September 1, 2025[47] Future Outlook - Kingstone anticipates net premiums earned of ~$187 million for fiscal year 2025[51] - The company aims to reach ~$500 million in direct premiums written by 2029[57]

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]

Company Overview - Kingstone Companies (NASDAQ: KINS) is a niche insurance provider focusing on property and casualty insurance [1] - The company is headquartered in New York and operates through over 700 licensed agents and brokers [1] - Kingstone Companies emphasizes personal lines and commercial auto insurance [1]

[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) |

Group 1 - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] - Value investing is a popular strategy that aims to find undervalued companies using fundamental analysis and metrics [2] - Kingstone Companies (KINS) is highlighted as a stock to watch, currently holding a Zacks Rank 2 (Buy) and a Value grade of A [3] Group 2 - KINS has a Price-to-Sales (P/S) ratio of 1.19, which is lower than the industry average of 1.26, indicating potential undervaluation [4] - The Price-to-Cash Flow (P/CF) ratio for KINS is 8.86, compared to the industry's average of 10.59, suggesting an attractive valuation based on cash flow [5] - KINS's P/CF has fluctuated between 5.82 and 16.42 over the past 12 months, with a median of 9.92, reinforcing the notion of undervaluation [5][6]

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]