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].

Core Insights - Kingstone Companies, Inc. (KINS) shares increased by 21% following the release of its fourth-quarter 2024 earnings, which met the Zacks Consensus Estimate for operating income and exceeded revenue expectations [1][2] Financial Performance - KINS reported fourth-quarter 2024 operating income of $0.46 per share, reflecting a more than threefold year-over-year improvement [2] - Total operating revenues reached $42 million, which was 2.8% below the Zacks Consensus Estimate but represented a 13.5% increase year over year [3] - Direct premiums written surged by 37% year over year to $72.5 million, with core business premiums increasing by 49.2% to $70.2 million, driven by market dislocation [3] Operational Metrics - Policies in force totaled 73,857 as of December 31, 2024 [4] - Net premiums earned improved by 25.4% year over year to $36 million [4] - Net investment income rose by 21.3% year over year to $1.9 million [4] - The underlying loss ratio improved by 470 basis points year over year to 49.1%, while the net loss ratio improved by 810 basis points to 48.7% [4] Expense and Profitability Metrics - Total expenses increased by 8.3% year over year to $35.4 million, with loss and loss adjustment expenses rising by 7.4% to $17.5 million [4] - The net combined ratio improved by 1,100 basis points year over year to 48.7%, attributed to a lower frequency of large losses and a reduced expense ratio [5] - Adjusted EBITDA more than doubled year over year to $9.3 million [5] Financial Position - KINS ended 2024 with total investments of $208.6 million, a 19.4% increase from the end of 2023 [6] - Cash and cash equivalents rose to $28.7 million, more than tripling from the end of 2023 [6] - The debt balance decreased by 25% to $11.1 million [6] - The annualized operating return on average common equity was 36.3% in 2024, compared to negative 17.5% in 2023 [6] Future Guidance - KINS anticipates core business direct premiums to grow between 15% and 25% in 2025 [7] - The combined ratio is expected to range between 81% and 85% [7] - Net income is projected to be between $1.75 and $2.15 per share, with return on equity estimated between 25% and 35% [7] Market Position - KINS currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [9]

Kingstone Companies, Inc. (NASDAQ:KINS) Q4 2024 Earnings Conference Call March 14, 2025 8:30 AM ET Company Participants Karin Daly - Vice President, Investor Relations Meryl Golden - President and Chief Executive Officer Jennifer Gravelle - Chief Financial Officer Conference Call Participants Robert Farnam - Janney Montgomery Scott Gabriel McClare - Private Investor Operator Greetings, and welcome to the Kingstone Company's Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] ...

Financial Data and Key Metrics Changes - Kingstone Companies reported a record-breaking fourth quarter and full year 2024, achieving a net income of $5.4 million or $0.40 per diluted share for the quarter, and $18.4 million for the year compared to a net loss of $6.2 million last year [23][24] - Direct written premiums for Q4 increased by 37%, with a 49% increase in core direct written premiums, while the overall direct written premiums for the year were up 21% [24][8] - The combined ratio improved by 11 percentage points to 78.5% for the quarter and by 25.3 percentage points to 80% for the year [25][26] Business Line Data and Key Metrics Changes - Core business growth was driven by the exit of two competitors, leading to a 49% growth in core direct written premiums and a 44% increase in overall policy count [9][24] - The average premium for personal lines increased by almost 20% in Q4 compared to the same quarter in 2023 [24] - The company strategically reduced its non-core business, which saw a 60% decrease in direct written premiums and a 65% decrease in policies-in-force [24] Market Data and Key Metrics Changes - The hard market conditions in Downstate New York persist, with limited competition from other companies, primarily MGAs and E&S writers [37][38] - The company is experiencing growth in new business counts and average premiums, indicating a favorable market environment [38][56] Company Strategy and Development Direction - Kingstone plans to focus on its core state of New York while exploring expansion into other catastrophe-exposed geographies [11] - The company aims to maintain a low expense ratio to enhance competitiveness and margins, with a goal to reduce the expense ratio by another point this year [46][12] - Significant resources are being allocated to understand potential new markets and prioritize expansion thoughtfully [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving core business direct written premium growth between 15% and 25% for 2025, despite the exit of competitors [20][55] - The company anticipates a favorable first quarter with more snow and colder temperatures compared to the previous year, but without any material catastrophe events [49][55] - Management remains optimistic about the trajectory of the business and its ability to generate long-term value for shareholders [61] Other Important Information - Kingstone has eliminated its debt, saving approximately $800,000 in interest expense for 2025 [14] - The company achieved a book yield of 3.86% on its investment portfolio [59] Q&A Session Summary Question: Growth expectations for 2025 and competitive environment - Management noted that hard market conditions persist in Downstate New York, with limited competition from new entrants, allowing for continued growth in new business counts and average premiums [37][38] Question: Potential expansion plans - Management confirmed plans to explore both New England and other states, emphasizing a thoughtful approach to expansion based on market needs and regulatory environments [41][44] Question: Improvement in expense ratio - Management aims to reduce the expense ratio by another point this year, focusing on maintaining low expenses to enhance competitiveness [46] Question: First quarter weather characterization - Management indicated that this winter has been colder with more snow than last year, but without significant catastrophe events, leading to a positive outlook for Q1 [49][55]

NASDAQ: KINS DISCLAIMER & FORWARD- LOOKING STATEMENTS P&C Insurance Company Capitalizing on Unique Niche Market Opportunity to Achieve Profitable Growth Investor Presentation March 2025 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 an ...