Financial Data and Key Metrics Changes - The company reported net income of $10.9 million and diluted earnings per share of $0.74, marking the second most profitable quarter in its history and the eighth consecutive quarter of profitability [3][10] - The GAAP combined ratio was 72.7%, with an annualized return on equity of 43% [3][10] - Direct written premium grew by 14%, and net investment income increased by 52% to $2.5 million [3][10] Business Line Data and Key Metrics Changes - Policies in force increased by 4.2% year over year and 1.4% sequentially, indicating stability in the agent and customer base [5] - The Select homeowners program now represents 54% of policies in force, with a claim frequency 31% lower than the legacy product [7] - The underlying loss ratio was 44.1%, an increase of 4.9 percentage points year over year, driven by higher claim severity [5][7] Market Data and Key Metrics Changes - The company experienced a month-over-month increase in new business since June, continuing into the fourth quarter [4] - The growth of 14% for the quarter was primarily driven by an average premium increase of 13% and improved retention [4] - Catastrophe losses contributed 0.2 percentage points to the loss ratio compared to 1.7 percentage points in the prior year quarter, indicating a favorable trend [7] Company Strategy and Development Direction - The company is progressing with its state expansion initiative and plans to present a multi-year roadmap in the first half of next year [8] - Guidance for 2025 has been raised for net combined ratio, EPS, and ROE, while maintaining direct written premium growth expectations between 12% and 17% [8][9] - The company aims to capitalize on opportunities in the homeowners' market, particularly in catastrophe-exposed areas, where demand exceeds supply [29] Management's Comments on Operating Environment and Future Outlook - Management noted that hard market conditions in downstate New York remain stable, with strong overall volume despite competitors broadening their underwriting appetite [4] - The company anticipates retention rates, which represent over 80% of the premium base, to continue trending higher as rate changes moderate [4] - Management expressed confidence in the company's competitive position, citing a high conversion rate and healthy growth despite increased competition [23] Other Important Information - The company has no debt at its holding company, and shareholders' equity exceeded $107 million, an increase of 80% year over year [13] - The year-to-date return on equity is 39.8%, an increase of 3 percentage points from the same period last year [14] Q&A Session Summary Question: Will all accounts eventually move to the select product? - Management confirmed that the legacy book will be maintained as it is profitable, with plans to convert it to select only when it becomes small enough [17] Question: Is all new business written on the select platform? - Yes, all new business has been written in Select since the beginning of 2022 [18] Question: How is the new E&S product being developed? - The company is currently developing the new product with an outside actuarial consulting firm, leveraging experience from the select product [19] Question: How has the AmGuard book performed since its inception? - The AmGuard book is performing within expectations, with a current writing rate of about $1 million a month [22] Question: How is competition evolving in downstate New York? - Management noted that competitors are expanding their target areas, but the company's growth remains healthy with a high conversion rate [23]

Financial Data and Key Metrics Changes - The company achieved a record-breaking net income of $5.4 million or $0.40 per diluted share for Q4 2024, compared to a net loss of $6.2 million last year [23] - For the full year, net income was $18.4 million, with earnings per diluted share of $1.48, a significant improvement from a loss of $0.57 last year [23] - Direct written premiums for Q4 increased by 37%, with core direct written premiums growing by 49% [24] - The combined ratio improved by 11 percentage points to 78.5% for Q4, and for the full year, it improved by 25.3 percentage points to 80% [25][26] Business Line Data and Key Metrics Changes - The core business saw a 31% growth for the year, driven by a 12% increase in core personal lines policies written and a 21% increase in average premium [24] - The strategic reduction of non-core business resulted in a 60% decrease in direct written premiums and a 65% decrease in policies-in-force compared to the same period last year [24] Market Data and Key Metrics Changes - The exit of competitors Adirondack and Mountain Valley created a significant market opportunity, leading to a 49% growth in core direct written premiums [9] - The company wrote $23 million in direct written premiums and over 6,000 policies from customers previously insured with the two exited carriers [9] Company Strategy and Development Direction - The company plans to focus on its core state of New York while exploring expansion into other catastrophe-exposed geographies [11] - Kingstone 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] 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] - The company noted that the hard market conditions in Downstate New York persist, providing a favorable environment for growth [38] Other Important Information - The company is now debt-free after paying off $20 million of debt in just five months, which will save approximately $800,000 in interest expense in 2025 [14][17] - The company has paused share issuance via the ATM for the foreseeable future [18] Q&A Session Summary Question: Growth expectations for 2025 and competitive environment - Management indicated that hard market conditions persist in Downstate New York, with no new market entrants yet, allowing for continued growth in new business counts and average premiums [37][38] Question: Potential expansion plans - Management confirmed plans for geographic expansion, focusing on both New England and other states, while being thoughtful about market entry [44] Question: Future expense ratio goals - Management aims to reduce the expense ratio by another point this year, emphasizing a culture of low expenses to enhance competitiveness [46] Question: First quarter weather conditions - Management reported that this winter has been colder with more snow than last year, but without any material catastrophe events, indicating a positive outlook for Q1 [49] Question: Book yield on the portfolio - The current book yield on the portfolio is 3.86% [59]