Kingstone Announces Record Operating Profit and Growth for Fourth Quarter and Full Year 2024
Rhea-AI Summary
Kingstone Companies (NASDAQ:KINS) has announced preliminary financial results for Q4 and full year 2024, showing significant improvements across key metrics. In Q4 2024, the company achieved 37% direct written premium growth, with core business growth of 49%. The consolidated GAAP combined ratio improved by 11 percentage points to 79%, while operating income per share more than tripled to $0.49 basic and $0.46 diluted.
For full year 2024, Kingstone reported 21% direct written premium growth, with core business growth of 31%. The consolidated GAAP combined ratio improved by 25 percentage points to 80%. Operating income per basic share significantly improved to $1.57 from a loss of $(0.73) in 2023. The net catastrophe loss ratio improved by 5 percentage points to 2%. The company will discontinue releasing preliminary quarterly results starting Q1 2025 unless material events occur.
Positive
- Direct written premium growth of 37% in Q4 2024 and 21% for full year
- Q4 operating income per share tripled to $0.49 (basic) from $0.16
- Full year GAAP combined ratio improved by 25 percentage points to 80%
- Net catastrophe loss ratio improved to 2%, down 5 percentage points
- Significant turnaround from operating loss to $1.57 basic earnings per share
Negative
- Discontinuation of preliminary quarterly financial results reporting from Q1 2025
- Lack of financial strength rating from A.M. Best (noted in risk factors)
- Geographic concentration risk in market area
Insights
The preliminary results from Kingstone Companies reveal a remarkable operational transformation in 2024, with multiple indicators suggesting a fundamental improvement in underwriting discipline and risk management. The combined ratio of 79% for Q4 2024 is particularly noteworthy as it places Kingstone among the top performers in the property and casualty insurance sector, where a sub-80% combined ratio is considered exceptional.
The dramatic improvement in profitability stems from two key factors. First, the net loss ratio of 49% indicates superior risk selection and pricing strategies, especially considering the challenging northeastern weather patterns. Second, the expense ratio improvement of 3 percentage points suggests successful cost optimization without sacrificing growth.
The 37% growth in direct written premiums during Q4, particularly the 49% growth in core New York business, demonstrates strong market penetration without apparent sacrifice of underwriting standards - a rare combination in insurance. This suggests Kingstone has found a sweet spot in risk selection and pricing in its home market.
Several strategic elements deserve attention:
- The absence of catastrophe losses in Q4 and reduced catastrophe impact for the full year indicates improved risk management and potentially more effective reinsurance strategies
- The decision to discontinue preliminary quarterly results releases suggests management's confidence in operational stability
- The concentration in New York, while presenting geographic risk, appears to be delivering superior returns through deep market knowledge
The transformation from an operating loss of
Schedules Conference Call for March 14
KINGSTON, NY / ACCESS Newswire / February 24, 2025 / Kingstone Companies, Inc. (Nasdaq:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, announced today certain preliminary financial results for its fourth quarter and full year ended December 31, 2024. The Company also scheduled its fourth quarter 2024 financial results conference call for Friday, March 14, 2025, at 8:30 am ET. Kingstone plans to issue the financial results news release after the market closes on Thursday, March 13, 2025.
Preliminary Results
(Estimated and Unaudited)
Fourth Quarter 2024 (all metrics are compared to Fourth Quarter 2023):
Direct written premium growth[1] of
37% ; core[2] direct written premium growth1 of49% .Consolidated GAAP combined ratio of
79% , an 11-percentage point improvement.Net loss ratio of
49% , an 8-percentage point improvement.No loss ratio impact from catastrophe losses.
Net expense ratio of
30% , a 3-percentage point improvement.
Operating income per basic share1 more than tripled to
$0.49 from$0.16 .Operating income per diluted share1 more than tripled to
$0.46 from$0.15 .
Full Year 2024 (all metrics are compared to Full Year 2023):
Direct written premium growth1 of
21% ; core2 direct written premium growth1 of31% .Consolidated GAAP combined ratio of
80% , a 25-percentage point improvement.Net loss ratio of
49% , a 24-percentage point improvement.Net catastrophe loss ratio of
2% , a 5-percentage point improvement.Net expense ratio of
31% , a 2 percentage point improvement.
Operating income per basic share1 improved significantly to
$1.57 from an operating loss per basic share of$(0.73) .Operating income per diluted share1 improved significantly to
$1.45 from an operating loss per diluted share of$(0.73) .
Beginning with the first quarter of 2025, the Company will discontinue releasing preliminary quarterly financial results unless an unexpected material event occurs during the period.
1These measures are not based on GAAP; definitions and reconciliations to the most directly comparable GAAP measures are below. See "Definitions and Non-GAAP Measures".
2Kingstone refers to New York business as its "core" business and the business outside of New York as its "non-core" business. The aggregate of "core" and "non-core" direct written premium growth is represented by direct written premium growth.
Conference Call Details
Friday, March 14, 2025, at 8:30 am ET
To participate please dial:
U.S. toll free 1-877-423-9820
International 1-201-493-6749
Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin. The conference call can also be accessed via webcast in the "Events & Presentations" tab of the Company's website or by clicking here. The webcast will be archived and accessible for approximately 30 days.
Definitions and Non-GAAP Measures
Direct written premiums represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums earned, the GAAP measure most comparable to direct written premiums, are net written premiums (i.e., direct written premiums less premiums ceded to reinsurers) that are pro-rata earned during the fiscal period presented. All of the Company's policies are written for a twelve-month period. Management uses direct written premiums, along with other measures, to gauge the Company's performance and evaluate results. Direct written premiums are provided as supplemental information, not as a substitute for net premiums earned, and do not reflect the Company's net premiums earned.
The table below reconciles preliminary direct written premiums to preliminary net premiums earned for the periods presented:
| For the Three Months Ended |
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| For the Years Ended |
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| December 31, |
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| December 31, |
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(000's except percentages) |
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Direct Written Premiums Reconciliation: |
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Direct written premiums |
| $ | 72,533 |
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| $ | 52,938 |
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| 37.0 | % |
| $ | 241,980 |
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| $ | 200,175 |
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| 20.9 | % |
Ceded written premiums1 |
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| (18,369 | ) |
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| (15,554 | ) |
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| 18.1 |
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| (87,750 | ) |
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| (91,518 | ) |
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| (4.1 | ) |
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Net written premiums |
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| 54,165 |
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| 37,384 |
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| 44.9 |
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| 154,230 |
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| 108,657 |
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| 41.9 |
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Change in unearned premiums |
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| (18,197 | ) |
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| (8,701 | ) |
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| 109.1 |
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| (25,732 | ) |
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| 5,727 |
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| (549.3 | ) |
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Net premiums earned |
| $ | 35,967 |
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| $ | 28,683 |
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| 25.4 | % |
| $ | 128,498 |
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| $ | 114,384 |
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| 12.3 | % |
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1Components of ceded written premiums balances from prior year periods were reclassified to conform with the current year presentation. The reclassification had no effect on the Company's previously reported financial condition, results of operations or cash flows. | ||||||||||||||||||||||||
Operating income (loss) per basic share is basic income (loss) per share exclusive of net gains (losses) on investments, net of tax. Net income (loss) per basic share is the GAAP measure most closely comparable to operating income (loss) per basic share.
Management uses operating income (loss) per basic share, along with other measures, to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments and may vary significantly between periods. Operating income (loss) per basic share is provided as supplemental information, not as a substitute for net income (loss) per basic share, and does not reflect the Company's overall profitability.
The following table reconciles preliminary basic income (loss) per share to preliminary basic operating income (loss) per share for the periods indicated:
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| December 31, 2024 |
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| December 31, 2023 |
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| December 31, 2024 |
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| December 31, 2023 |
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| Basic income per common share |
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Operating Income (Loss) per Basic Common Share Reconciliation: |
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Net income (loss) |
| $ | 0.44 |
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| $ | 0.27 |
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| $ | 1.60 |
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| $ | (0.57 | ) |
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Net realized loss (gain) on investments, net of taxes |
| $ | 0.06 |
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| $ | (0.11 | ) |
| $ | (0.03 | ) |
| $ | (0.16 | ) |
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Operating income (loss) |
| $ | 0.49 |
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| $ | 0.16 |
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| $ | 1.57 |
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| $ | (0.73 | ) |
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(Components may not sum due to rounding) | ||||||||||||||||
Operating income (loss) per diluted share is diluted income (loss) per share exclusive of net gains (losses) on investments, net of tax. Net income (loss) per diluted share is the GAAP measure most closely comparable to operating income (loss) per diluted share.
Management uses operating income (loss) per diluted share, along with other measures, to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments and may vary significantly between periods. Operating income (loss) per diluted share is provided as supplemental information, not as a substitute for net income (loss) per diluted share, and does not reflect the Company's overall profitability.
The following table reconciles preliminary diluted income (loss) per share to preliminary diluted operating income (loss) per share for the periods indicated:
| For the Three Months Ended |
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| For the Years Ended |
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| December 31, 2024 |
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| December 31, 2023 |
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| December 31, 2024 |
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| December 31, 2023 |
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| Diluted income per common share |
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Operating Income (Loss) per Diluted Common Share Reconciliation: |
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Net income (loss) |
| $ | 0.40 |
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| $ | 0.26 |
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| $ | 1.48 |
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| $ | (0.57 | ) |
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Net realized loss (gain) on investments, net of taxes |
| $ | 0.05 |
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| $ | (0.11 | ) |
| $ | (0.03 | ) |
| $ | (0.16 | ) |
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Operating income (loss) |
| $ | 0.46 |
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| $ | 0.15 |
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| $ | 1.45 |
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| $ | (0.73 | ) |
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Disclaimer and Forward-Looking Statements
The estimated, unaudited financial results indicated above are based on information available as of February 24, 2025, remain subject to change based on management's ongoing review of the Company's fourth quarter results and are forward-looking statements (see below). The actual results may be materially different and are affected by the risk factors and uncertainties identified in Kingstone's annual and quarterly filings with the Securities and Exchange Commission.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. For more details on factors that could affect expectations, see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023.
The risks and uncertainties include, without limitation, the following:
the risk of significant losses from catastrophes and severe weather events;
risks related to the lack of a financial strength rating from A.M. Best;
risks related to limitations on the ability of our insurance subsidiary to pay dividends to us;
adverse capital, credit and financial market conditions;
risks related to volatility in net investment income;
the unavailability of reinsurance at current levels and prices;
the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;
the credit risk of our reinsurers;
the inability to maintain the requisite amount of risk-based capital needed to grow our business;
the effects of climate change on the frequency or severity of weather events and wildfires;
risks related to the limited market area of our business;
risks related to a concentration of business in a limited number of producers;
legislative and regulatory changes, including changes in insurance laws and regulations and their application by our regulators;
limitations with regard to our ability to pay dividends;
the effects of competition in our market areas;
our reliance on certain key personnel;
risks related to security breaches or other attacks involving our computer systems or those of our vendors; and
our reliance on information technology and information systems.
Kingstone undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Kingstone Companies, Inc.
Kingstone is a northeast regional property and casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Company ("KICO"). KICO is a New York domiciled carrier writing business through retail and wholesale agents and brokers. KICO is actively writing personal lines and commercial auto insurance in New York, and in 2023 was the 15th largest writer of homeowners insurance in New York. KICO is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.
Investor Relations Contact:
Karin Daly
Vice President
The Equity Group Inc.
kdaly@equityny.com
SOURCE: Kingstone Companies, Inc
View the original press release on ACCESS Newswire
FAQ
What was Kingstone's (KINS) Q4 2024 premium growth rate?
How much did KINS improve its operating income per share in Q4 2024?
What was Kingstone's combined ratio improvement in full year 2024?
How did KINS's catastrophe loss ratio change in 2024?
When will Kingstone (KINS) release its full Q4 2024 financial results?
