Kingstone Companies Reports Significant Financial Growth with $3.88 Million Net Income

Kingstone Companies, Inc. reported significant financial growth in its latest quarterly results, with net income for the three months ended March 31, 2025, reaching $3.88 million, a substantial increase from $1.43 million in the same period last year. This growth was driven by a 51% rise in net premiums earned, which totaled $43.52 million compared to $28.82 million in the prior year. The company attributed this increase to a 17.9% rise in direct written premiums, primarily from its personal lines business, which saw a 22.7% increase in premiums.

The company's total revenues for the quarter amounted to $50.50 million, up from $35.77 million in the previous year, reflecting a 41.2% increase. This growth was complemented by a notable gain on the sale of real estate, which contributed $1.97 million to the revenue. However, ceding commission revenue decreased by 35.2% to $2.96 million, influenced by changes in reinsurance treaties. The company transitioned from a 27% quota share treaty to a 16% quota share treaty for its personal lines business, which impacted the ceding commission structure.

Operationally, Kingstone has made strategic adjustments to its business model, focusing on profitability over growth. The company has aggressively reduced its non-Core business, resulting in a 63.5% decrease in non-Core direct written premiums. As of March 31, 2025, the total number of policies in force increased slightly to 76,905, with a 10.4% rise in Core policies, while non-Core policies saw a significant decline of 67.6%. This shift aligns with the company's Kingstone 3.0 strategy, which aims to enhance underwriting performance and manage catastrophe exposure more effectively.

In terms of financial health, Kingstone's total assets increased to $385.44 million from $374.92 million at the end of the previous fiscal year. The company reported a total stockholders' equity of $82.21 million, up from $66.71 million, reflecting a strong capital position. The net loss ratio for the quarter was 62.4%, slightly higher than the previous year's 62.0%, indicating stable underwriting performance despite the challenges posed by inflation and market conditions.

Looking ahead, Kingstone anticipates continued growth driven by strategic initiatives and market dynamics. The company has entered into a new agreement to offer replacement policies to homeowners in Downstate New York, capitalizing on competitors' withdrawal from the market. This initiative is expected to generate approximately $70 million in written premium, further solidifying Kingstone's position in the personal lines insurance market. The management remains optimistic about maintaining profitability and expanding its market share through these strategic efforts.