Kingstone's Policy Growth Steady: Will it Fuel Premium Acceleration?

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]