Investor Presentation – August 2025 1 2 Disclaimer & Forward-Looking Statements 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 and changes in circumstances. These statements involve risks and uncertainties that could cause actual resul ...

Core Insights - Kingstone Companies, Inc. (KINS) has returned to profitability in 2024 after three consecutive years of losses, with a net margin improvement of 1610 basis points last year and 1210 basis points in Q1 2025 [1][2] Group 1: Financial Performance - The company's cash and cash equivalents improved by 30.7% at the end of the first quarter, while its debt balance decreased by 52%, indicating a solid financial position [5] - KINS shares have gained 3.6% year to date, although this performance is below the industry average [9] - KINS trades at a price-to-book value ratio of 2.63, which is above the industry average of 1.61, but it holds a Value Score of A [10] Group 2: Strategic Initiatives - KINS has focused on strengthening its core operations and exiting underperforming segments, which has been crucial for margin improvement [2] - Continued investment in technology, including automation and AI tools, has enhanced operational efficiency and reduced costs [4] - The company is shifting to the WaterStreet Platform and forming alliances with Kyber Technologies and Earnix to advance its digital transformation [4] Group 3: Market Position and Competitors - The commercial insurance market in the Northeastern U.S. is projected to grow by 12.3% through 2025, positioning KINS to capitalize on market shifts due to competitors withdrawing from the personal property insurance segment [3] - KINS competes closely with Kinsale Capital Group (KNSL) and United Fire Group, Inc. (UFCS), both of which have shown margin improvement [6] - Kinsale Capital focuses on the U.S. excess and surplus lines market, while UFCS benefits from selective risk-taking and technology investments to optimize operations [7][8] Group 4: Earnings Estimates - The Zacks Consensus Estimate for KINS' 2025 and 2026 earnings has remained unchanged over the last 30 days, with projected earnings of 1.90 for 2025 and 2.45 for 2026 [11][12] - Despite no movement in estimates, the company has a Growth Score of A, indicating potential for year-over-year revenue and EPS increases [12]

Financial Data and Key Metrics Changes - AFG reported core net operating earnings of $1.81 per share for Q1 2025, reflecting a year-over-year decrease due to lower property and casualty (P&C) insurance underwriting profit and lower returns on the alternative investment portfolio [8][10] - The company returned over $290 million to shareholders in Q1 2025 through dividends and share repurchases [6][12] - AFG's growth in book value per share, excluding AOCI plus dividends, was 2.5% for the quarter [12] Business Line Data and Key Metrics Changes - Specialty Property and Casualty businesses had a combined ratio of 94% in Q1 2025, which is 3.9 points higher than the 90.1% reported in Q1 2024, driven by higher catastrophe losses [14][15] - Gross and net written premiums for Specialty Property and Casualty were 21% lower compared to Q1 2024, but excluding the impact of nonrenewed large accounts, gross written premiums grew by 2% year over year [16][17] - The Specialty Casualty Group reported a combined ratio of 97.6% in Q1 2025, which is 5.4 points higher than the previous year, with gross and net written premiums decreasing by 34% [21][22] Market Data and Key Metrics Changes - The average renewal pricing across the P&C Group, excluding workers' compensation, increased by approximately 7% in Q1 2025 [16] - The company achieved overall renewal rate increases for 35 consecutive quarters, indicating strong pricing discipline [16] Company Strategy and Development Direction - AFG's management emphasized maintaining underwriting discipline and strategic decisions to optimize long-term results, including the nonrenewal of underperforming accounts [16][25] - The company is focused on capital deployment opportunities, including acquisitions and special dividends, as it expects to generate significant excess capital throughout 2025 [12][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated economic uncertainty and its potential impact on returns from the alternative investment portfolio in 2025 [10][11] - The company remains optimistic about long-term returns from its alternative investment portfolio, expecting annual returns averaging 10% or better [11] Other Important Information - AFG announced the sale of the Charleston Harbor Resort and Marina, expecting to recognize an after-tax core operating gain of approximately $100 million or $1.2 per share from the transaction [11] Q&A Session Summary Question: Inquiry about expense ratio changes - Management noted that changes in the expense ratio are influenced by the mix of business and investments in IT initiatives, which were anticipated in the business plan [28][30][31] Question: Clarification on catastrophe losses - Catastrophe losses from California wildfires were at the low end of expectations, with minimal additional smaller catastrophes impacting the quarter [32] Question: Discussion on premium growth and market cycle - Management expressed a desire to grow across businesses but acknowledged competitive pressures and strategic decisions that may temper growth in the near term [34][36] Question: EPS guidance and impact of Charleston Harbor sale - Management indicated that the sale would provide an incremental benefit to EPS, but uncertainty in alternative investment returns complicates predictions for the year [41][43] Question: Future premium growth expectations - Management suggested that premium growth would likely be lower than the previously guided 5%, but still expects positive growth for the year [45] Question: Review of property and transportation premium trends - Management confirmed ongoing reviews of accounts for profitability, which may lead to continued pressure on written premiums [47] Question: Addressing elevated social inflation in specialty casualty - Management is actively monitoring loss trends and has made adjustments to address adverse developments in social inflation-exposed businesses [50][52]

Financial Data and Key Metrics Changes - The company reported a combined ratio of 94.4%, indicating a deterioration primarily due to elevated loss activity and reinstatement premiums [7][19][20] - Net income for Q1 2025 was $27.3 million or $0.59 per share, down from $37.9 million or $0.84 per share in Q1 2024 [20][21] - Core operating income decreased to $19.5 million or $0.42 per share compared to $40 million or $0.89 per share in the same quarter last year [21] - Total assets increased by almost 3% to $2.1 billion, with total investments in cash at $1.3 billion [30] Business Line Data and Key Metrics Changes - Gross written premiums (GWP) grew by over 13% to just over $206 million, driven mainly by the reinsurance segment [18] - The short tail segment saw gross premiums up 2% but earned premiums down 5.3% due to reinstatement premiums [24] - The reinsurance treaty segment experienced a top line growth of almost 44%, primarily from new business in specialty treaty lines [26] - The long tail segment faced challenges with premiums up slightly but recorded an underwriting loss of $7.5 million compared to a profit of $10 million in Q1 2024 [29] Market Data and Key Metrics Changes - The company noted heightened foreign exchange volatility impacting financial results, particularly with the U.S. Dollar weakening against major currencies [17] - The U.S. market remains the biggest growth area, with expectations for continued opportunities despite increased competition [38][39] Company Strategy and Development Direction - The company emphasizes a long-term perspective, focusing on stability and resilience amid market volatility [12][13] - A diversified strategy is highlighted as a key strength, allowing the company to navigate market cycles effectively [10][32] - The company is committed to maintaining discipline in underwriting and risk selection, particularly in challenging segments like long tail [28][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the elevated loss environment and macroeconomic uncertainties but expressed confidence in the company's ability to manage these challenges [7][12] - The outlook for the remainder of the year includes a cautious approach to new business, particularly in competitive markets [36][38] - Management noted that while rates are declining, many areas still exhibit rate adequacy, allowing for continued business writing [62] Other Important Information - The company paid a special dividend of $0.85, returning a total of $43.5 million to shareholders during the quarter [8][31] - The G&A expense ratio showed marginal improvement to 19.1% from 19.5% year-over-year [24] Q&A Session Summary Question: Inquiry about the professional indemnity portfolio - Management confirmed that the area under review is similar to one previously remediated, indicating ongoing performance issues but no systemic problems [46][47] Question: Clarification on combined ratio deterioration - Management explained that the combined ratio deterioration was influenced by currency impacts, with a more accurate comparison showing a 6 to 7 point deterioration when adjusted for currency [51][53] Question: Impact of tariffs on marine and port business - Management stated that there has been no significant impact from tariffs on their marine business, although cargo values might be affected [60] Question: Outlook for aviation market - Management indicated that the aviation market remains challenging, with a reduced book size but solid profitability in recent quarters [68]

Financial Data and Key Metrics Changes - The company reported operating earnings of $0.92 per share, supported by solid underwriting performance and a 12% increase in investment income [13] - The total combined ratio was 82.3%, up from 78.5% last year, influenced by lower levels of favorable prior year's reserve releases [14] - Net earnings on a GAAP basis totaled $0.68 per share, down from $1.39 per share in Q1 2024, primarily due to a shift from $45 million in unrealized equity gains to $42 million in unrealized losses [15] Business Line Data and Key Metrics Changes - The property segment experienced a 6% decline in gross premiums, largely due to rate decreases in E&S property, offset by growth in marine and Hawaii homeowners [16] - The casualty segment posted a 99 combined ratio for Q1, with gross premiums up 14% over last year, but a cautious approach was maintained regarding wheel space businesses [18][19] - The securities segment's gross premium was relatively flat, with a combined ratio of 68.5%, down from 80.9% in 2024, benefiting from favorable development [21] Market Data and Key Metrics Changes - The insurance industry is facing challenges from legal system abuse, trade disruption, and economic uncertainty, impacting overall market conditions [10] - Increased competition in several areas has led to slower top-line growth, particularly in the property segment [26] - The property insurance market is experiencing aggressive competition, especially in the Florida wind market, with some competitors slashing rates [38] Company Strategy and Development Direction - The company focuses on opportunities where it can differentiate itself and where the market supports adequate returns, emphasizing a long-term growth strategy [11] - The management is committed to maintaining discipline in underwriting and is prepared to take remedial action in underpriced or underperforming markets [8] - The company is exploring growth opportunities in the casualty segment while being selective in auto coverage due to increased severity [27][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through economic uncertainties, citing a diversified portfolio as a key advantage [47] - The company anticipates that increased construction activity in the U.S. could create more opportunities, despite potential pressures from economic slowdowns [50] - Management remains cautious about the auto segment due to rising loss severity, while also addressing challenges in the property segment [66][79] Other Important Information - The company announced a 6% increase in book value per share from year-end 2024 and a quarterly dividend increase to $0.15 per share [24] - The company is actively managing its underwriting practices to address loss trends and maintain profitability [41][43] Q&A Session Summary Question: Insights on managing through potential recession due to tariff policy - Management highlighted the diversified portfolio as a significant advantage, noting that while construction may face pressure, overall profitability could be maintained [47][48] Question: Concerns about undisciplined market behavior from MGAs - Management acknowledged aggressive behavior from MGAs but emphasized their consistent market presence and financial strength, which allows them to remain a reliable option for producers [55][56] Question: Update on personal umbrella book regarding frequency and severity - Management confirmed that severity has been increasing for several years, and they are actively addressing this through rate increases and selective underwriting [66][67] Question: Changes in philosophy regarding California residential owners - Management remains hesitant to enter the California market due to challenges in underwriting and regulatory processes, preferring to focus on commercial lines [90][141] Question: Rate pressure on earthquake coverage and reinsurance costs - Management noted competitive pressures in the earthquake market, particularly in California, and indicated that reinsurance costs have been decreasing [96][106] Question: Opportunities in the inland marine market - Management reported profitable growth in the inland marine segment, leveraging local expertise and partnerships to capitalize on construction-related opportunities [110][111] Question: Non-renewal of larger accounts in transportation - Management indicated that non-renewals are based on both unacceptable loss experience and competitive pricing from other insurers [116] Question: Impact of tariffs on transportation coverage and construction underwriting - Management acknowledged potential impacts from tariffs but noted that they are prepared to navigate these challenges based on past experiences [125][132]

Financial Data and Key Metrics Changes - The company reported operating earnings of $0.92 per share, supported by solid underwriting performance and a 12% increase in investment income [13] - The total combined ratio was 82.3%, up from 78.5% last year, influenced by lower levels of favorable prior year's reserve releases [14] - Net earnings on a GAAP basis totaled $0.68 per share, down from $1.39 per share in Q1 2024, primarily due to a shift from $45 million in unrealized equity gains to $42 million in unrealized losses [15] Business Line Data and Key Metrics Changes - The property segment experienced a 6% decline in gross premiums, largely due to rate decreases in E&S property, offset by growth in marine and Hawaii homeowners [16] - The casualty segment posted a 99 combined ratio for Q1, with gross premiums up 14% over last year, but a cautious approach was maintained regarding wheel space businesses [18][19] - The securities segment's gross premium was relatively flat, with a combined ratio of 68.5%, down from 80.9% in 2024, benefiting from favorable development [21] Market Data and Key Metrics Changes - The insurance industry is facing challenges from legal system abuse, trade disruption, and economic uncertainty, impacting overall market conditions [10] - Increased competition in several areas has led to slower top-line growth, particularly in the property segment [26] - The inland marine market has seen growth due to a larger team and better coverage, with opportunities primarily linked to the construction industry [110] Company Strategy and Development Direction - The company emphasizes a diversified portfolio and disciplined underwriting to navigate market disruptions [8] - Management is focused on opportunities where expertise can differentiate the company, particularly in areas where competitors are pulling back [11] - The company is committed to maintaining a consistent risk appetite and underwriting profitability, even in challenging market conditions [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential economic downturns, citing a diversified product portfolio as a key advantage [47] - The company anticipates that increased construction activity in the U.S. could create more opportunities, despite potential recessionary pressures [50] - Management remains cautious about the auto insurance segment due to increased severity and loss trends [79] Other Important Information - The company announced a 6% increase in book value per share from year-end 2024 and a quarterly dividend increase to $0.15 per share [24] - Operating cash flow for Q1 totaled $103 million, up $33 million from last year, providing a basis for portfolio activity [22] Q&A Session Summary Question: Insights on managing through potential recession due to tariff policy - Management highlighted a diversified portfolio as a significant advantage, noting that while construction may face pressure, overall profitability could be maintained [47][48] Question: Concerns about undisciplined market behavior from MGAs - Management acknowledged aggressive competition from MGAs but emphasized their consistent market presence and financial strength as a stabilizing factor [55][56] Question: Update on personal umbrella book regarding frequency and severity - Management confirmed that severity has been increasing for several years, and they are actively addressing this through rate increases and selective underwriting [66][67] Question: Impact of tariffs on transportation coverage - Management noted that while there could be short-term impacts on shipping and transportation, they are prepared to navigate these challenges based on past experiences [125][126] Question: Opportunities in California residential owners market - Management remains hesitant to enter the California market due to historical underwriting losses and regulatory challenges, preferring to focus on commercial lines [90][141]

Financial Data and Key Metrics Changes - The company reported operating earnings of $0.92 per share, supported by solid underwriting performance and a 12% increase in investment income [11] - The total combined ratio was 82.3, up from 78.5 last year, influenced by lower levels of favorable prior year's reserve releases [11] - On a GAAP basis, net earnings totaled $0.68 per share compared to $1.39 in Q1 2024, heavily influenced by unrealized losses on equity securities [12] Business Line Data and Key Metrics Changes - The Property segment experienced a 6% decline in gross premium due to rate decreases, offset by growth in marine and Hawaii homeowners [12] - The Casualty segment posted a 99 combined ratio, with gross premium up 14% over last year, but a cautious approach was maintained regarding wheels-based businesses [14] - The Securities segment's gross premium was relatively flat, with a combined ratio of 68.5%, benefiting from favorable development [15] Market Data and Key Metrics Changes - The company noted increased competition in several areas, leading to slower top-line growth, but found opportunities where competitors were pulling back [19] - The inland marine market grew profitably, driven by a healthy construction industry, with a focus on hiring local talent [82] - The E and S property market faced competitive conditions, with a 14% decrease in CAT wind rates, but the company believes this business is still well-priced [29] Company Strategy and Development Direction - The company emphasized a commitment to disciplined underwriting and a focus on long-term profitable growth, navigating through market disruptions [6][8] - Management highlighted the importance of maintaining a healthy balance sheet to thrive during periods of market disruption [6] - The company is continuously refining underwriting guidelines to remain competitive while ensuring profitability [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential economic slowdowns, citing a diversified portfolio as a key advantage [36] - The company acknowledged challenges from legal system abuse and economic uncertainty but remains focused on opportunities for growth [7] - Management noted that while there are pressures from increased costs, they are prepared to adapt and manage through these challenges [99] Other Important Information - The company announced an increase in its ordinary quarterly dividend to $0.15 per share, marking its fiftieth year of paying and increasing dividends [18] - Operating cash flow for Q1 totaled $103 million, up $33 million from last year, providing a basis for portfolio activity [16] Q&A Session Summary Question: Insights on managing through potential recession due to tariff policy - Management highlighted their diversified portfolio and experience in past recessions, indicating they would manage through similar challenges again [36][38] Question: Concerns about undisciplined market behavior from MGAs - Management acknowledged aggressive competition from MGAs but emphasized their consistent market presence and disciplined approach [42][44] Question: Update on personal umbrella auto book and severity trends - Management noted increased severity in personal umbrella claims and ongoing efforts to address this through rate increases and selective underwriting [52][56] Question: Impact of tariffs on transportation coverage - Management indicated that while there could be a slowdown in shipping due to tariffs, they have seen increased shipping activity in the first quarter [94] Question: Opportunities in California residential homeowners market - Management remains cautious about entering the California residential market due to past experiences with claims handling and high-value homes [70][106]