Kingstone Companies (KINS) investor relations material

Executive summary

• Record Q3 net income rose 61.7% YoY to $17.6 million; diluted EPS was $1.19 and annualized ROE was 52.9%.

• Q3 net premiums earned increased 30.2% to $62.4 million; direct premiums written rose 14.5% to $86.8 million.

• Q3 net combined ratio improved 7.1 points to 65.6%; underlying combined ratio improved 8.3 points to 64.2%.

Financial highlights

• Q3 total revenue increased 21.4% YoY to $67.5 million; 9M revenue rose 21.9% to $193.2 million.

• Q3 operating net income rose 67.9% to $18.0 million; diluted operating EPS was $1.22.

• 9M net income was $27.2 million; net premiums earned increased 29.8% to $178.7 million and direct premiums written rose 17.4% to $228.9 million.

• Q3 net investment income rose 50.3% to $3.8 million; 9M net investment income increased 53.7% to $10.5 million.

• Adjusted EBITDA was $24.4 million in Q3, up 66.2%, and $40.2 million for 9M, up 19.2%.

Outlook and guidance

• FY26 diluted EPS guidance raised and narrowed to $2.70–$2.90 from $2.20–$2.90; ROE outlook is 29%–30%.

• FY26 direct premiums written growth outlook is ~16%; net combined ratio guidance improved to 79%–83%, with underlying combined ratio guidance of 74%–76%.

• FY26 catastrophe loss ratio guidance is 8%–9%; favorable prior-year reserve development of 2%–3% of estimated full-year net premiums earned is reflected through Q3, with none assumed for Q4.

• The $500 million direct premiums written goal by year-end 2029 remains in place; FY29 projected range is $490 million–$511 million.

• Guidance assumes a 21% effective tax rate and 14.8 million weighted-average diluted shares; actual catastrophe losses and reserve development could materially affect results.