Kingstone Companies (KINS) 15th Annual LD Micro Invitational 2025 summary

Market overview and company positioning

• Focuses on property insurance in downstate New York, a catastrophe-exposed niche with few competitors.

• Retracted from non-core northeastern states after losses, concentrating on core New York market.

• Industry headwinds included inflation, rising reinsurance costs, and higher interest rates, but some have turned into tailwinds.

• Large national carriers are withdrawing from catastrophe-exposed markets, creating opportunities for specialized insurers.

Turnaround strategy and operational improvements

• Modernized systems, hired new talent, and launched a data-driven product to better match rate to risk.

• Used aerial imagery to assess roof quality, reducing claims and improving underwriting.

• Reduced exposure in non-core states, increased rates, and re-underwrote policies to address inflation and underinsurance.

• Managed reinsurance costs through policy changes like hurricane deductibles and portfolio modeling.

• Cut expenses by 25% from 2021 to 2024, enhancing competitiveness and margins.

Financial performance and outlook

• New York premiums grew 31% in 2024, with profit up $25 million and stock price rising from $2 to $15.

• Achieved 21% overall growth in 2024, with a combined ratio of 80, reflecting a 20-point margin and a 25-point improvement year-over-year.

• Net income reached $18.4 million in 2024, reversing a prior year loss; return on equity was nearly 36%.

• Investment portfolio income rose to $6.8 million, up 14% from the previous year.

• 2025 guidance projects 15–25% growth in New York, 15–19% underwriting margin, and basic EPS of $1.90–$2.30.