4Q25 Earnings Presentation March 6, 2026 Disclaimer and Forward Looking Statements The guidance provided in this presentation is based on information available as of March 6, 2026 and management's review of the anticipated financial results for 2026. Such guidance remains subject to change based on management's ongoing review of the Company's 2026 results and is a forward-looking statement (see below). Kingstone assumes no obligation to update this guidance. The actual results may be materially different an ...

Core Insights - The company achieved a full-year combined ratio of 86%, significantly outperforming the 10-year average through strict underwriting discipline and cycle management [1] - A top-line contraction of 19% in Q4 was primarily driven by the strategic non-renewal of a large professional indemnity binder in the long-tail portfolio to protect margins [1] - Management utilized 'dynamic cycle management' by increasing facultative reinsurance purchasing to mitigate volatility as market conditions began to soften [1] Segment Performance - The Short-tail segment experienced mixed conditions, with energy and property lines facing significant competitive pressure, while specialist lines like construction remained robust [1] Financial Strength and Strategy - The company's S&P financial strength rating upgrade served as a critical differentiator, enabling access to higher-quality business and larger carrier-dominated markets [1] - Operational expenses increased due to strategic investments in new hires and systems, compounded by the strengthening of the British pound against the U.S. dollar [1] - The company maintained a 'founder-manager' mindset, prioritizing long-term value and capital adequacy over short-term market share gains [1]

Core Insights - Bed Bath & Beyond is implementing a new business strategy alongside C-suite changes, with Marcus Lemonis expanding his role to include CEO [2][9] - The company's strategy focuses on moving beyond traditional retail, emphasizing home ownership and making related services more accessible [3][4] Strategy Overview - The strategy is built on three pillars: omnichannel retail and commerce; digital, financial, insurance, and blockchain services; and an AI-powered home operating system [4][5] - The first pillar involves an asset-light model and international licensing, utilizing AI for services like home warranties and insurance [5] - The second pillar focuses on financial tools and mortgage-related solutions, addressing key financial moments in the home lifecycle [6] Acquisition and Leadership Changes - The company is nearing the completion of its acquisition of The Brand House Collective, with its CEO set to lead a new division [7] - Lemonis indicated plans for further acquisitions and investments to fill category gaps and enhance business synergies [8] Company Philosophy - The company aims to rebuild rather than simply turn around, prioritizing trust, disciplined capital deployment, and affordability over short-term margins [8]

Group 1: Company Overview - GooseHead Insurance (NASDAQ:GSHD) is an independent personal lines insurance agency that offers policies from over 200 insurance companies, enabling optimal policy rates for customers [5] - The company provides a variety of insurance plans, including home insurance, auto insurance, property insurance, and life insurance [5] Group 2: Analyst Coverage and Ratings - Jefferies analyst Andrew Andersen initiated coverage on GooseHead Insurance with a Buy rating and set a price target of $93, indicating a potential upside of nearly 25% for investors [1] - The stock is covered by 12 analysts, with 5 Buy ratings, 6 Hold ratings, and 1 Sell rating, leading to a forecasted 1-year median price target of $91.27, representing an upside of over 22% [4] Group 3: Growth Catalysts - GooseHead Insurance is positioned strategically within the expanding property and casualty insurance market, which is seen as a key growth catalyst [2] - The company's unique broker model is expected to lead to strong customer retention and bind rates, along with higher commissions in the future [2] - Andersen highlighted the company's low-risk expansion strategy through partnerships with independent agencies, allowing for high margins without significant initial capital deployment [3] - Future growth within the P&C insurance market and strategic partnerships are anticipated to be major drivers for GooseHead Insurance [3]

Core Insights - ERGO Group has successfully completed the acquisition of ADB Gjensidige, enhancing its market presence in the Baltic region [1][2] - The acquisition positions ERGO as the third-largest regional insurer based on premium volume, leveraging ADB Gjensidige's existing strengths [3] - The merger will allow ERGO to operate under a single brand across Lithuania, Latvia, and Estonia, aiming to establish itself as the leading insurer in the Baltics [4] Company Strategy - The acquisition is part of ERGO's strategy to develop a diversified and robust business, positioning itself sustainably among leading insurance companies [5] - The integration of ADB Gjensidige into ERGO is expected to enhance the company's ability to seize growth opportunities in a dynamic business environment [6] - The new structure aims to provide tailored solutions and significant added value to clients and partners in the Baltic states [7] Financial Performance - ADB Gjensidige generated insurance revenue of €158.9 million in 2024, indicating its significant role in the non-life insurance market in the Baltics [7]

Core Insights - Increasing frequency of extreme weather events is leading homeowners to rely more on property insurance as a crucial safety net [1] - Complications can arise in insurance claims when damage involves property located on neighboring land, as illustrated by a recent case in Castro Valley [2][3] Group 1: Case Study of Angela Bereola - Angela Bereola faced a significant financial burden after a tree from a neighboring property fell on her house, resulting in a total damage estimate of $70,600.83 [4] - The insurance adjuster only offered $19,200.86 due to the tree's location, leaving Bereola responsible for the remaining $51,399.97 [4] - After prolonged negotiations and media intervention, Bereola received a supplemental payment, highlighting the challenges homeowners face in insurance disputes [5] Group 2: Industry Trends and Statistics - In 2024, a significant percentage (40% to 51%) of homeowner claims were denied by 14 of the largest property insurers in the U.S., indicating a troubling trend in the industry [6] - The denial of claims is becoming increasingly common, emphasizing the need for homeowners to be aware of their rights and the complexities involved in property insurance [6]

Core Viewpoint - Atlantic American Corporation (AAME) presents a growth potential of 56.33%, making it an attractive investment option in the insurance sector [1][5]. Company Overview - AAME operates in the insurance sector, providing life, health, and property insurance products [1]. - The current trading price of AAME is $2.51, with a target price of $3.93 [1][5]. - The company has a market capitalization of $51.29 million, which is relatively small compared to its peers [2]. Financial Performance - AAME has an earnings per share (EPS) of $0.23 [2]. - The company offers a dividend yield of 2.57%, providing a steady income stream for investors [2][5]. Comparative Analysis - Compared to peers, AAME's market cap is smaller than Catalyst Bancorp, Inc. (CLST) at $62.95 million and Central Plains Bancshares, Inc. (CPBI) at $71.41 million [3]. - AAME's growth potential of 56.33% is significant, especially when compared to CPBI, which has a growth potential of 10.02% [3]. - Fifth District Savings Bank (FDSB) has the largest market cap at $80.96 million but shows a negative price percentage difference of -35.13%, indicating lower growth potential compared to AAME [4].

Core Insights - Riverwater Partners' Small Cap Strategy reported solid results in Q3 2025 but lagged behind the benchmark due to market preference for lower-quality companies [1] - The strategy focuses on higher-quality companies with strong fundamentals and a clear path to profitability, positioning itself well for future challenges [1] Company Performance - Palomar Holdings, Inc. (NASDAQ:PLMR) has a market capitalization of $3.362 billion, with a one-month return of -3.16% and a 52-week gain of 12.93% [2] - On December 15, 2025, Palomar's stock closed at $125.52 per share [2] Underperformance Analysis - Palomar's stock underperformance in Q3 2025 is attributed to weaker commercial market pricing, a shift away from defensive sectors, and concerns about underwriting margin compression [3] - Rate reductions in commercial earthquake and property markets have pressured premium renewal yields, impacting growth [3] - Despite challenges, Palomar has strong visibility into premium growth through multi-year rate plans and expansion into diversified lines like casualty and crop insurance [3] Financial Results - In Q3 2025, Palomar reported adjusted net income of $55.2 million or $2.01 per share, compared to $32.4 million or $1.23 per share in Q3 2024 [4] - The increase in adjusted net income indicates potential for growth, although some analysts suggest that certain AI stocks may offer greater upside potential [4]

Core Viewpoint - Arch Capital Group Ltd. (ACGL) is a significant player in the insurance industry, with a market capitalization of $33.6 billion, providing various insurance and reinsurance products [1]. Financial Performance - ACGL's stock has decreased by 8.8% from its 52-week high of $101.66, reached on November 27, 2024, and has underperformed the Dow Jones Industrials Average, which gained 5.8% over the same period [2]. - Over the past six months, ACGL shares fell by 3.2% and by 6.8% over the past 52 weeks, while the Dow Jones Industrials Average recorded gains of 12.6% and 7.1%, respectively [3]. - In Q3, ACGL reported an adjusted EPS of $2.77, surpassing Wall Street's expectation of $2.19, while its net premiums written were $4 billion, reflecting a 2.1% year-over-year decline [4]. Competitive Position - American International Group, Inc. (AIG) has shown resilience in the insurance sector, with a 2.6% increase over the past 52 weeks, although it has lagged behind ACGL with a 9.9% decline over the last six months [4]. Analyst Sentiment - Wall Street analysts maintain a "Moderate Buy" consensus rating for ACGL, with a mean price target of $106.53, indicating a potential upside of 14.9% from current price levels [5].

Core Insights - MNK International has expanded its global presence by acquiring a new brokerage in Türkiye, focusing on insurance and reinsurance solutions for specialty and complex risks [1][4] - The Turkish branch will serve local clients with a diverse range of services, including engineering, financial lines, aviation, and property insurance [1][4] Company Strategy - As a subsidiary of the MNK Group, the Türkiye branch will leverage internal resources, including a global network of managing general agents (MGAs), to enhance its offerings across various jurisdictions [2] - The strategic positioning aims to provide innovative, high-quality solutions tailored to the unique needs of Turkish businesses operating internationally [3][5] Leadership - Erhan Ergunes, with 20 years of industry experience, will lead MNK International Türkiye as CEO, bringing expertise from previous roles at major insurance companies [2][3] - Ergunes is expected to drive the company's mission to address risk challenges and build long-term partnerships in the Turkish market [3][4] Market Opportunities - The Turkish market presents significant opportunities in sectors such as construction, engineering, aviation, and agriculture, with a focus on tailored coverage for evolving client needs [4] - MNK Group's extensive network includes MGAs in the UK, Italy, the US, and the Middle East, enhancing its competitive edge in the region [4][5]