Financial Data and Key Metrics Changes - In Q4 2025, the company reported net income of $14.8 million and diluted earnings per share of $1.03, with a GAAP net combined ratio of 64.2 and an annualized return on equity of 51% [4][17] - For the full year, net income more than doubled to $40.8 million, and diluted earnings per share increased by 95% to $2.88, with a return on equity of 43% [4][17] - The underlying combined ratio improved to 74.4 in 2025 from 79.5 in 2024, reflecting structural improvements in operations [11][21] Business Line Data and Key Metrics Changes - Direct premiums written grew 14% in Q4 to $82.8 million and 15% for the full year to $277.8 million, driven by higher average premiums and strong retention [6][17] - The Select product now represents 57% of policies in force, up from 45% a year ago, contributing to improved risk selection and lower claims frequency [5][6] Market Data and Key Metrics Changes - The company plans to enter the California market in Q2 2026, which is expected to become a significant contributor to growth over time [9][10] - The California homeowners market is valued at $15 billion, nearly double that of New York, with a growing supply-demand imbalance for homeowners coverage [9] Company Strategy and Development Direction - The company aims to achieve $500 million in direct premiums written by year-end 2029, focusing on growth in New York and measured expansion into new markets [9][12] - The strategy includes maintaining underwriting discipline and not chasing volume at the expense of risk management [6][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and ability to navigate competitive pressures in New York, emphasizing strong producer relationships and operational efficiency [16][45] - The guidance for 2026 includes direct premiums written growth of 16%-20% and an underlying combined ratio of 74%-76%, with expectations of higher catastrophe losses [12][22] Other Important Information - The company has no debt and reported shareholder equity of $122.7 million, an increase of 84% during the year [24] - The expense ratio improved to 30% in 2025, down from 41% in 2021, marking a significant milestone for the company [21] Q&A Session Summary Question: Differences in California Risks - Management highlighted that California is a large, dislocated market and will use the Select product tailored for California's unique risks, particularly wildfire [30][31] Question: Quota Share for California Business - The company will start with a 30% quota share for California to manage risk effectively [33] Question: Expense Ratio Projections - Management indicated that the expense ratio could potentially decrease further to the 29%-30% range, reflecting economies of scale [41] Question: Competition in New York - Management noted that while competition is increasing, the company has maintained its execution and competitive advantages in the market [45]

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]