Kingstone(US:KINS)2025-11-12 18:10Financial 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].