Kingstone Companies (KINS) Q1 2025 Earnings Call May 09, 2025 08:30 AM ET Company Participants Karin Daly - VP - IRMeryl Golden - President & CEORobert Farnam - Managing DirectorJon Old - Managing Member Conference Call Participants None - Analyst Operator Greetings, and welcome to the Kingstone Companies First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, ...

Kingstone Companies (KINS) Q1 2025 Earnings Call May 09, 2025 08:30 AM ET Company Participants Karin Daly - VP - IRMeryl Golden - President & CEORobert Farnam - Managing DirectorJon Old - Managing Member Conference Call Participants None - Analyst Operator Greetings, and welcome to the Kingstone Companies First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, ...

Financial Data and Key Metrics Changes - The company reported a net income of $3,900,000 or $0.27 per diluted share, marking a 172% increase in net income compared to the prior year [3][16] - Direct written premium growth was 18% overall, with a 23% increase in the core business [3][16] - The combined ratio was 93.7%, close to the 93.3% from the same quarter last year, while operating income nearly tripled to $2,400,000 [12][16] Business Line Data and Key Metrics Changes - The select homeowners program's cumulative frequency decreased for thirteen consecutive quarters, with a frequency of 1.6% compared to 2.3% for the legacy product [6] - Core policies in force increased by 10% year-over-year, led by a 19% increase in homeowners policies [9] - New business policy count increased by 68%, contributing to the growth in core business premiums [8] Market Data and Key Metrics Changes - The company expects to generate $25,000,000 to $35,000,000 in premiums from the Amgard transaction over a twelve-month period [8] - The hard market conditions in Downstate New York remain stable, with companies beginning to increase their underwriting appetite [8] Company Strategy and Development Direction - The company plans to focus on its core state of New York and capitalize on hard market conditions to maximize profitable growth [7][16] - There is a cautious approach towards expanding into other jurisdictions, with a strategy set for 2026 and beyond [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, emphasizing the discipline of the underwriting strategy in a challenging environment [16] - The company does not anticipate a material impact from inflation on results, maintaining a flat expense ratio [12] Other Important Information - The company finalized the sale of its headquarters, resulting in a one-time after-tax gain of $1,500,000 [12] - Net investment income increased by 36% to $2,000,000, driven by strong cash generation from operations [13] Q&A Session Summary Question: Fire losses details - Management confirmed that fire losses were 3.3 points higher than anticipated, offset by lower catastrophe losses, and expressed no concern over these losses as they were random events [20][21] Question: Capital management priorities - The Board is actively discussing the restoration of dividends, but no share buybacks are envisioned in the near future due to growth opportunities [24][25] Question: Amgard transaction pricing - Management indicated that Amgard's pricing is higher and that they are filing for a rate increase in New York, which may close the pricing gap [26][27] Question: CFO search update - A retained search firm has been hired, and interviews are ongoing to fill the CFO position [28] Question: Expansion into other states - The company will focus on Downstate New York for 2025 but is considering other geographies for future growth, ensuring a thoughtful approach [45][46]