Kingstone Companies Q3 Earnings Call Highlights

Key Points

• Kingstone posted a second consecutive record quarter, earning $17.6 million, or $1.19 per diluted share, as direct premiums written rose 14.5% to $86.8 million.
• Underlying underwriting results improved significantly, with the underlying loss ratio falling to 33.5%; catastrophe losses and favorable prior-year reserve development also affected quarterly results.
• The company raised its 2026 EPS guidance to $2.70–$2.90 but trimmed its premium-growth outlook to about 16%. California expansion is slower than planned as Kingstone prioritizes pricing and risk quality.

Kingstone Companies NASDAQ: KINS reported a second consecutive record quarter for net income and earnings per share, as stronger underwriting and premium growth helped offset higher catastrophe losses.

The insurer earned $17.6 million, or $1.19 per diluted share, in the third quarter of 2026, up from $10.9 million, or $0.74 per share, a year earlier. Direct premiums written increased 14.5% to $86.8 million, while net premiums earned rose 30.2% to $62.4 million.

President and CEO Meryl Golden said the company benefited from improvements in claims operations and lower non-catastrophe claims frequency. Kingstone also raised the low end of its full-year earnings guidance, although it moderated its premium growth outlook as competition increased in its markets.

Underwriting results improve despite catastrophe losses

Kingstone’s underlying loss ratio, which excludes catastrophe losses and prior-year reserve development, improved 10.6 percentage points to 33.5%. Golden attributed the improvement primarily to better loss settlements following a multiyear rebuild of the claims organization.

She also credited the company’s Select program with helping reduce non-catastrophe claims frequency. Select accounted for 65% of homeowner policies, up from 54% a year earlier.

The GAAP net combined ratio improved to 65.6% from 72.7%. The underlying combined ratio, excluding catastrophe losses and prior-year reserve development, improved 8.3 points to 64.2%.

Catastrophe losses added 7.5 points to the quarterly loss ratio, compared with 0.2 points a year earlier. Chief Financial Officer Randy Patten said nine catastrophe events contributed to third-quarter losses, including a late September nor’easter that caused $1.7 million in losses.

Kingstone recognized $3.8 million in favorable prior-year reserve development during the quarter, reducing the net loss ratio by 6.1 points. Golden said most of the property-related development was from accident year 2025 and attributed the improvement in part to claims staff reserving losses more quickly.

Company raises earnings outlook

Kingstone increased and narrowed its 2026 diluted earnings-per-share guidance to $2.70 to $2.90, from $2.20 to $2.90. It also raised its return-on-equity forecast to 29% to 30% from 24% to 30%, and improved its projected GAAP net combined ratio to 79% to 83% from 81% to 86%.

The company now expects direct premiums written to grow approximately 16% for the year, compared with its previous forecast of 16% to 20%. Golden said the higher earnings outlook reflected results already delivered, including favorable reserve development through September. She said the company does not forecast favorable reserve development for the fourth quarter.

California expansion slower than planned

Golden said New York remains Kingstone’s core franchise and main source of growth, even as some competitors broaden underwriting, increase producer compensation or price more aggressively. The company had more than 86,000 policies in force at quarter-end, up 11% from a year earlier, while retention improved by 2.9 percentage points.

In California, Kingstone wrote little business during the quarter. Golden said admitted insurers had reopened to new business and excess and surplus lines competitors had reduced rates. Many risks presented to Kingstone had more wildfire exposure than it was willing to accept or did not meet its return requirements.

The company had planned to write $10 million in California premiums in its first year but now expects to write only a fraction of that amount. Golden said Kingstone would remain intentionally small in the state and expand only when pricing and risk quality meet its requirements.

Kingstone also began writing business in Connecticut in late September with a small number of producers. Golden said the contribution would be modest this year, but early reception was strong. She reaffirmed the company’s goal of reaching $500 million in direct premiums written by the end of 2029.

Capital and investment position

Net investment income rose 50.3% to $3.8 million, supported by growth in invested assets and a higher average yield of 4.6%. Total investments stood at $337.1 million at September 30, up 9% from year-end.

GAAP diluted book value per share increased 26.5% from a year earlier to $9.21. Patten said the figure reflected $9.7 million in after-tax unrealized bond losses during the quarter, recorded in accumulated other comprehensive income rather than net income. He attributed the losses to rising Treasury yields, not deteriorating credit quality.

Stockholders’ equity reached $136.7 million, up 11% for the year. Patten said Kingstone’s capital priorities are funding profitable growth, followed by dividend growth and share repurchases. Its quarterly dividend is $0.06 per share, following a 20% increase in July.

About Kingstone Companies (NASDAQ:KINS)

Kingstone Companies, Inc is an insurance holding company that operates primarily through its subsidiary, Kingstone Insurance Company. The company focuses on property and casualty insurance for individuals and families, with an emphasis on personal lines coverage.

Its products have included homeowners, condominium, cooperative, renters, dwelling fire and personal umbrella insurance. These policies are designed to protect residential properties and personal assets against risks such as property damage, liability claims and other covered losses.

Kingstone serves customers through independent insurance agents and has historically concentrated its business in the Northeastern United States, particularly New York and other selected states in the region.

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