Kingstone Companies (KINS) Q4 2024 earnings summary

Executive summary

• Achieved record profitability and growth in Q4 and full year 2024, with net income of $18.4M, reversing a prior year loss, and marking the fifth consecutive profitable quarter.

• Core business direct premiums written rose 31% to $232.23M, driven by competitor exits and strategic focus on profitable segments.

• Combined ratio improved to 80.0% for 2024, a 25.3-point improvement from 2023, reflecting lower loss frequency and reduced expenses.

• Strategic reduction of unprofitable non-core business and expense initiatives contributed to operational efficiency.

• Management highlights operational excellence, market opportunity, and a focus on sustainable, long-term shareholder value.

Financial highlights

• Full-year 2024 direct premiums written: $241.98M, up 20.9% year-over-year; core business direct premiums written: $232.23M, up 31.4%.

• Net income for 2024: $18.36M; Q4 net income: $5.44M; net income per share: $1.60 (basic), $1.48 (diluted).

• Adjusted EBITDA for 2024: $30.52M, up from $(1.69)M in 2023.

• Book value per share (diluted) at year-end: $4.73, up 68% year-over-year.

• Net investment income grew 13.6% to $6.8M, with a portfolio yield of 3.68%.

Outlook and guidance

• 2025 guidance: core business direct premiums written growth of 15–25%, combined ratio of 81–85%, net income per share (basic) $1.90–$2.30, and return on equity of 27–35%.

• Growth in 2025 expected from continued hard market conditions, expansion of producer base, and favorable competitive landscape.

• Guidance reflects anticipated net premiums earned of ~$184M and assumes share count increases from restricted stock vesting and ATM offerings.