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]

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] ...