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]