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Kingstone Reports Third Quarter 2026 Results

Nine-month net income rose 4.8%, while the combined ratio worsened to 81.7% as catastrophe losses increased.

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Kingstone (Nasdaq: KINS) reported third-quarter 2026 diluted earnings of $1.19 per share, up from the prior-year quarter. Net income rose 61.7% to $17.584 million, while net premiums earned increased 30.2% to $62.412 million. Direct premiums written grew 14.5% to $86.795 million. The combined ratio, measuring claims and underwriting expenses against premiums, improved to 65.6% from 72.7%. Catastrophe losses increased, but favorable prior-year reserve development reduced the loss ratio by 6.1 points.

Annualized return on equity reached 52.9%, and diluted book value rose 26.5% year over year to $9.21 despite $9.7 million of quarterly after-tax unrealized bond losses. Kingstone raised and narrowed its 2026 diluted EPS outlook to $2.70–$2.90 from $2.20–$2.90 and improved its combined-ratio outlook to 79%–83%. Expected direct premiums written growth moved to approximately 16% from 16%–20%.

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0 major · 11 points

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Positive

  • Major point. Forward-looking: it has not happened yet and may not happen.Kingstone raised and narrowed 2026 diluted EPS guidance to $2.70–$2.90 from $2.20–$2.90.
  • Moderate pointThird-quarter net income rose 61.7% to $17.584 million; diluted EPS increased 60.8% to $1.19.
  • Moderate pointThird-quarter net premiums earned increased 30.2% to $62.412 million year over year.
  • Moderate pointThird-quarter direct premiums written grew 14.5% to $86.795 million year over year.
  • Moderate pointThird-quarter combined ratio improved 7.1 points to 65.6% year over year.
  • Moderate pointThird-quarter underlying loss ratio, excluding catastrophes and prior-year reserve changes, improved 10.6 points to 33.5%.
  • Moderate pointThird-quarter annualized return on equity increased to 52.9% from 42.9%.
  • Moderate pointPolicies in force increased 11.0% to 86,579 at September 30, 2026.
  • Moderate pointDiluted book value per share increased 26.5% to $9.21 year over year.
  • Moderate pointNine-month net premiums earned increased 29.8% to $178.748 million year over year.
  • Moderate pointNine-month direct premiums written increased 17.4% to $228.892 million year over year.
  • Moderate pointNine-month underlying loss ratio improved 3.5 points to 44.5%, excluding catastrophes and prior-year reserve changes.
7 minor points
  • Minor pointFavorable prior-year reserve development reduced the third-quarter loss ratio by 6.1 points, versus none a year earlier.
  • Minor pointThird-quarter net investment income increased 50.3% to $3.756 million year over year.
  • Minor pointNine-month net income rose 4.8% to $27.246 million; diluted EPS increased 2.2% to $1.86.
  • Minor pointNine-month net investment income increased 53.7% to $10.522 million year over year.
  • Minor pointNine-month underwriting expense ratio improved 0.2 points to 30.6% year over year.
  • Minor point. Forward-looking: it has not happened yet and may not happen.Kingstone improved its 2026 combined-ratio outlook to 79%–83% from 81%–86%.
  • Minor point. Forward-looking: it has not happened yet and may not happen.Kingstone raised its 2026 return-on-equity outlook to 29%–30% from 24%–30%.

Negative

  • Moderate point. Forward-looking: it has not happened yet and may not happen.Kingstone revised expected 2026 direct premiums written growth to approximately 16% from 16%–20%.
  • Moderate pointThird-quarter catastrophe loss ratio increased to 7.5% from 0.2% a year earlier.
  • Moderate pointThird-quarter underwriting expense ratio increased 2.3 points to 30.7% year over year.
  • Moderate pointThird-quarter after-tax unrealized bond losses totaled $9.7 million.
  • Moderate pointNine-month combined ratio worsened 2.7 points to 81.7% year over year.
  • Moderate pointNine-month annualized return on equity declined to 28.0% from 39.8%.
  • Moderate pointNine-month other comprehensive loss, after tax, was $12.130 million, versus income of $5.431 million.
4 minor points
  • Minor pointThird-quarter net investment losses were $550,000, versus gains of $182,000 a year earlier.
  • Minor pointNine-month catastrophe loss ratio increased to 10.4% from 0.8% a year earlier.
  • Minor pointNine-month net investment losses reached $1.325 million, versus gains of $591,000 a year earlier.
  • Minor point. Forward-looking: it has not happened yet and may not happen.Kingstone expects a 2026 catastrophe loss ratio of 8%–9%, above its 2019–2024 average of 7.1%.
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Market move: KINS +7.49% vs previous close. 3Q26 earnings report

$18.67 – $20.49 Day Range
$295.02M Mkt Cap at Last Price

On Nov 5, the day this news came out, the latest delayed price for KINS is 7.49% above the previous close. Our momentum scanner has recorded 15 alerts for this stock so far that day. The latest delayed price is $20.38. Relative volume is above average at 1.8x what this stock usually trades by this time of day.

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Key Figures

Net income: $17.6 million Diluted EPS: $1.19 Net premiums earned growth: 30.2% +5 more
Net income
$17.6 million
Q3 2026; up 62%
Diluted EPS
$1.19
Q3 2026; up 60.8% year over year
Net premiums earned growth
30.2%
Q3 2026 year over year
Net combined ratio
65.6%
Q3 2026; 72.7% in Q3 2025
Diluted EPS guidance
$2.70 to $2.90
FY 2026 updated; previous range $2.20 to $2.90
Net combined ratio guidance
79% to 83%
FY 2026 updated; previous range 81% to 86%
Direct premiums written growth guidance
~16%
FY 2026 updated; previous range 16% to 20%
Return on equity guidance
29% to 30%
FY 2026 updated; previous range 24% to 30%

Previous Earnings Reports

1 past event · Latest: Aug 06
Same Type 1 event
  1. Aug 06

    Quarterly earnings

    24h Move
    -8.5%

    Q2 record profitability with 2026 guidance reaffirmed before Q3 raised and narrowed EPS guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

quota share, non-gaap, prior-year reserve development, catastrophe loss ratio, +1 more
5 terms
quota share financial
"our reduced quota share and direct premiums written grew 14.5%"
A quota share is a proportional reinsurance arrangement in which an insurer cedes a fixed percentage of its policies, premiums and claims to another insurer so both parties take the same slice of revenue and losses. For investors, quota share deals change how much risk and income remain on a company’s balance sheet, which can smooth earnings, free up capital for growth, and alter profit margins—like handing someone a steady slice of every pie you bake.
non-gaap financial
"The underlying combined ratio is a non-GAAP measure."
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
View in glossary
prior-year reserve development financial
"The underlying loss ratio excludes catastrophe losses and prior-year reserve development"
An adjustment to an insurance company’s past estimates for money set aside to pay claims, showing whether earlier reserve amounts were too high or too low. It matters to investors because favorable or unfavorable changes reveal how well the insurer judged its past liabilities — like discovering your grocery budget was off after shopping — and can materially change reported profits and the company’s financial strength.
catastrophe loss ratio technical
"Catastrophe loss ratio estimate for 2026 of 8% to 9%"
The catastrophe loss ratio measures the portion of an insurer’s collected premiums that is paid out to cover claims from major disasters, like storms, earthquakes or large-scale accidents. It matters to investors because a high ratio is like a household draining its savings after an unexpected storm: it can squeeze profits, force the company to raise prices or tap capital, and reveal whether disaster coverage is priced and managed sustainably.
gaap financial
"GAAP net combined ratio improved 7.1 points to 65.6%"
GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.
View in glossary

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Most Profitable Quarter in Company History 
Diluted Net Income Per Share of $1.19 | Annualized Return on Equity of 53%
Net Premiums Earned Growth of 30% | Direct Premiums Written Growth1 of 14.5%
GAAP Net Combined Ratio of 65.6%

Company Updates 2026 Outlook; Raises and Narrows Diluted EPS Guidance to $2.70 to $2.90

Management to Host Conference Call Tomorrow at 8:30 a.m. Eastern Time

KINGSTON, N.Y., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Kingstone Companies, Inc. (Nasdaq: KINS) (“Kingstone” or the “Company”), a regional property and casualty insurance holding company, today announced its financial results for the third quarter ended September 30, 2026. The Company has also provided an investor presentation that can be accessed through the News & Events/Presentations section of the Company website at www.kingstonecompanies.com.

Key Financial and Operational Highlights
 Quarters EndedNine Months Ended
 September 30,September 30,
($ in thousands, except per share data)2026
2025
Change2026
2025
Change
Net premiums earned$62,412$47,92530.2%$178,748$137,66329.8%
Direct premiums written1$86,795$75,81014.5%$228,892$195,04717.4%
Net combined ratio 65.6% 72.7%(7.1) pts 81.7% 79.0%2.7 pts
Catastrophe loss ratio 7.5% 0.2%7.3 pts 10.4% 0.8%9.6 pts
Underlying combined ratio1 64.2% 72.5%(8.3) pts 75.1% 78.8%(3.7) pts
Net income$17,584$10,87261.7%$27,246$26,0074.8%
Net income per share - diluted$1.19$0.7460.8%$1.86$1.822.2%
Operating net income per share - diluted1$1.22$0.7367.1%$1.93$1.6814.9%
Return on equity - annualized 52.9% 42.9%10.0 pts 28.0% 39.8%(11.8) pts

1 Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures.

Management Commentary

Meryl Golden, President and Chief Executive Officer of Kingstone, stated, "I am very pleased to again report the most profitable quarter in Kingstone history. Net income increased 62% to $17.6 million, or $1.19 per diluted share, and our GAAP net combined ratio improved 7.1 points to 65.6%, resulting in an annualized return on equity of 52.9%. Diluted book value per share rose 26% year-over-year to $9.21 despite $9.7 million of after-tax unrealized bond losses in the quarter.

Net premiums earned rose 30% on premium growth and our reduced quota share and direct premiums written1 grew 14.5%, driven by higher average renewal premiums, improved retention and new business growth. Policies in force are now up 11% year-over-year. Our 34.9% net loss ratio included 6.1 points of favorable prior-year reserve development and 7.5 points of catastrophe losses, compared with 0.2 points of catastrophe losses a year ago. Excluding both, our underlying loss ratio1 improved 10.6 points to 33.5% on lower claim frequency and severity, supported by the growing mix of business on the Select platform and faster claims cycle times that give us earlier visibility into ultimate claim costs.

We are updating our 2026 direct premiums written growth outlook to approximately 16%, improving our net combined ratio outlook to 79% to 83%, and raising the midpoint of our diluted earnings per share guidance to $2.80. We will continue to execute with discipline, grow where the returns justify it and allocate capital prudently to deliver long-term value to our shareholders."

Fiscal Year 2026 Outlook

(see “Disclaimer and Forward-Looking Statements” below)

The guidance below reflects management’s expectations based on information available as of November 5, 2026 and is subject to the risks and uncertainties described in “Disclaimer and Forward-Looking Statements” below.

Guidance Metrics2026 Previous Estimate2026 Updated Estimate
Direct premiums written1,4 growth16% to 20%~16%
Net combined ratio81% to 86%79% to 83%
Underlying combined ratio1,2 (excluding catastrophe losses and prior-year reserve development)74% to 76%74% to 76%
Prior-year reserve development5—%(3)% to (2)%
Catastrophe loss ratio37% to 10%8% to 9%
Net income per share – diluted$2.20 to $2.90$2.70 to $2.90
Return on equity24% to 30%29% to 30%


1Refer to “Definitions and Non-GAAP Measures” for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures.
2The underlying combined ratio is a non-GAAP measure. It is computed as the sum of the underlying loss ratio (which is a non-GAAP measure) and the net underwriting expense ratio. The underlying loss ratio excludes catastrophe losses and prior-year reserve development from the GAAP net loss ratio. The most directly comparable GAAP measure is the net combined ratio. Refer to the section entitled “Definitions and Non-GAAP Measures” included in this press release for definitions and reconciliations of non-GAAP financial measures. The 2026 estimate of GAAP net combined ratio reflects the estimated underlying combined ratio plus the estimated catastrophe loss ratio, net of favorable prior-year reserve development recognized through September 30, 2026, as shown in the table above. Actual catastrophe losses and any additional prior-year reserve development could materially impact the GAAP measure of net combined ratio.
3The catastrophe loss ratio estimate for 2026 of 8% to 9% is above the Company’s six-year historical average of 7.1% (2019–2024) and gives effect to the elevated winter storm activity experienced in the first quarter of 2026. Catastrophe losses are reported net of reinsurance recoveries and include loss adjustment expenses. The Company defines catastrophe events consistent with PCS industry designations.
4Guidance for the most comparable GAAP measure, net premiums earned, is not provided because net premiums earned is an output of multiple variables including direct written premium growth, quota share cession rates, and premium earning patterns, several of which are not within the Company’s direct control; therefore the Company is unable to predict such variables with reasonable certainty without unreasonable efforts.
5Reflects favorable prior-year reserve development recognized through September 30, 2026, as a percentage of estimated full year net premiums earned. No additional development is assumed for the fourth quarter

Key Modeling Assumptions

The following reflects certain key modeling assumptions with respect to the full year 2026 guidance:

Assumption2026E
Assumed effective tax rate21%
Weighted average diluted shares outstanding14.8 million


Consolidated Financial Results

Consolidated Financial ResultsQuarters EndedNine Months Ended
($ in thousands, except policy and per share data)September 30,September 30,
 2026
2025
Change2026
2025
Change
Net premiums earned$62,412$47,92530.2%$178,748$137,66329.8%
Direct premiums written1$86,795$75,81014.5%$228,892$195,04717.4%
       
Policies in force, at the end of the period 86,579 78,02611.0% 86,579 78,02611.0%
       
Net investment income$3,756$2,49950.3%$10,522$6,84853.7%
Net (losses) gains on investments$(550)$182NM$(1,325)$591(324.2)%
Gain on sale of real estate$—$——%$—$1,966(100.0)%
       
Net loss ratio 34.9% 44.3%(9.4) pts 51.1% 48.2%2.9 pts
Net underwriting expense ratio 30.7% 28.4%2.3 pts 30.6% 30.8%(0.2) pts
Net combined ratio 65.6% 72.7%(7.1) pts 81.7% 79.0%2.7 pts
       
Net loss ratio 34.9% 44.3%(9.4) pts 51.1% 48.2%2.9 pts
Catastrophe loss ratio 7.5% 0.2%7.3 pts 10.4% 0.8%9.6 pts
Net loss ratio excluding the effect of catastrophes1 27.4% 44.1%(16.7) pts 40.7% 47.4%(6.7) pts
Effect of prior-year favorable reserve development(6.1)% —%(6.1) pts(3.8)%(0.6)%(3.2) pts
Underlying loss ratio1 33.5% 44.1%(10.6) pts 44.5% 48.0%(3.5) pts
       
Net income$17,584$10,87261.7%$27,246$26,0074.8%
Net income per share - basic$1.21$0.7757.1%$1.88$1.88—%
Net income per share - diluted$1.19$0.7460.8%$1.86$1.822.2%
Return on equity - annualized 52.9% 42.9%10.0 pts 28.0% 39.8%(11.8) pts
       
Adjusted EBITDA1$24,378$14,67166.2%$40,170$33,71019.2%
       
Other comprehensive (loss) income, net of tax$(9,690)$2,186NM$(12,130)$5,431(323.3)%
Operating net income1$18,019$10,72967.9%$28,293$23,98817.9%
Operating net income per share - basic1$1.24$0.7663.2%$1.96$1.7313.3%
Operating net income per share - diluted1$1.22$0.7367.1%$1.93$1.6814.9%
Operating return on equity1 13.6% 10.6%3.0 pts 21.8% 27.5%(5.7) pts
Operating return on equity1- annualized 54.2% 42.4%11.8 pts 29.1% 36.7%(7.6) pts
       
Book value per share, at the end of the period - diluted$9.21$7.2826.5%
Book value per share, at the end of the period - diluted excluding AOCI1$10.43$7.7434.9%


NM = Not meaningful
1Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures.

Conference Call Details

Friday, November 6, 2026, at 8:30 a.m. Eastern Time

To participate please dial:

U.S. toll free 1-877-407-2991
International 1-201-389-0925

Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin. The conference call will also be available via live webcast on the Company’s website under the News & Events/Presentations section at www.kingstonecompanies.com. A replay will be available for 30 days.

About Kingstone Companies, Inc.

Kingstone is a regional property and casualty insurance holding company whose principal operating subsidiaries write business through retail and wholesale agents and brokers. Kingstone delivers tailored homeowners insurance solutions through its sophisticated product suite, Select, supported by a scalable and efficient operating platform that enables the Company to pursue significant market opportunities and strategic expansion. Kingstone was the 11th largest writer of homeowners insurance in New York in 2025 and is diversifying its geographic footprint by writing in Connecticut on an admitted basis and California on a non-admitted basis.

Investor Relations Contact:
Elevate IR
KINS@elevate-ir.com
720-330-2829

Disclaimer and Forward-Looking Statements

The guidance provided above is based on information available as of November 5, 2026 and management's review of the anticipated financial results for 2026. Such guidance remains subject to change based on management's ongoing review of the Company's 2026 results and is a forward-looking statement (see below). Kingstone assumes no obligation to update this guidance. The actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and 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, 2025.

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;
  • 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;
  • our reliance on information technology and information systems; and
  • the uncertainty relating to our geographic diversification strategy in entering the California and Connecticut markets and other markets.

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.

Definitions and Non-GAAP Measures

Direct premiums written is a non-GAAP measure, which represents the total premiums charged on policies issued by the Company during the respective fiscal period.

Adjusted EBITDA is a non-GAAP measure, which is net income (loss) exclusive of interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation. Net income (loss) is the GAAP measure most closely comparable to adjusted EBITDA.

Management uses adjusted EBITDA along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation, and may vary significantly between periods. Adjusted EBITDA is provided as supplemental information, not as a substitute for net income, and does not reflect the Company’s overall profitability.

Operating net income (loss) and basic operating net income (loss) per share are non-GAAP measures, which are net income (loss) and basic net income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and basic net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and basic operating net income (loss) per share.

Management uses operating net income (loss) and basic operating net income (loss) per 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 gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and basic operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and basic net income (loss) per share, and do not reflect the Company’s overall profitability.

Operating net income (loss) and diluted operating net income (loss) per share are non-GAAP measures, which are net income (loss) and diluted net income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and diluted net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and diluted operating net income (loss) per share.

Management uses operating net income (loss) and diluted operating net income (loss) per 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 gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and diluted operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and diluted net income (loss) per share, and do not reflect the Company’s overall profitability.

Operating return on equity is a non-GAAP measure, which is operating net income (loss) divided by average equity, which is the average of equity at the beginning of the period presented and ending equity at the end of the period presented. Return on equity is the GAAP measure most closely comparable to operating return on equity.

Management uses operating return on equity, 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 gain on sale of real estate, which may vary significantly between periods. Operating return on equity is provided as supplemental information, is not a substitute for return on equity and does not reflect the Company’s overall return on average common equity.

Underlying loss ratio is a non-GAAP ratio, which is computed as the GAAP net loss ratio excluding the effect of prior year loss reserve development and catastrophe losses.

Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The underlying loss ratio should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio.

Net loss ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio and the effect of catastrophes on the net loss ratio.

Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by catastrophe losses. Catastrophe losses cause the Company’s net loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The net loss ratio excluding the effect of catastrophes should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio.

Underlying combined ratio is a non-GAAP measure, which is computed as the sum of the underlying loss ratio and the net underwriting expense ratio.

Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net combined ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net combined ratio. The underlying combined ratio should not be considered a substitute for the net combined ratio and does not reflect the Company’s net combined ratio.

Book value per share, at the end of the period - diluted excluding AOCI is a non-GAAP measure, which is book value per share, at the end of the period - diluted less changes in accumulated other comprehensive income (AOCI). This measure is used by management to measure the diluted book value per share excluding the unrealized gains (losses) from the Company's investment portfolio since the Company has the ability and intent to hold available-for-sale fixed income securities to maturity, therefore not realizing the unrealized gain or loss. Management believes removing the quarter to quarter volatility in market movements impacting the fair value of the Company's available-for-sale fixed income securities is useful for investors to measure the Company's diluted book value per share. The most directly comparable GAAP measure is book value per share, at the end of the period – diluted. Book value per share, at the end of the period – diluted excluding AOCI should not be considered a substitute for book value per share, at the end of the period – diluted and does not reflect the Company’s book value per share, at the end of the period – diluted.

The table below reconciles GAAP net premiums earned to direct premiums written for the periods presented:

  For the Three Months Ended For the Nine Months Ended
  September 30, September 30,
      %     %
(000’s except percentages) 2026
 2025
 Change 2026
 2025
 Change
Direct Premiums Written Reconciliation:            
GAAP net premiums earned $62,412 $47,925 30.2% $178,748 $137,663 29.8%
Change in unearned premiums  (18,307)  (16,276) 12.5  10,739  7,206 49.0
             
Net premiums written  44,104  31,649 39.4  189,487  144,869 30.8
Ceded written premiums  (42,691)  (44,161) (3.3)  (39,406)  (50,178) (21.5)
             
Direct premiums written $86,795 $75,810 14.5% $228,892 $195,047 17.4%
             
(Components may not sum due to rounding)


The following table reconciles GAAP net income to adjusted EBITDA for the periods indicated:

  For the Three Months Ended For the Nine Months Ended
  September 30, September 30,
      %     %
(000’s except percentages) 2026
 2025
 Change 2026
 2025
 Change
Adjusted EBITDA Reconciliation:            
Net income $17,584 $10,872 61.7% $27,246 $26,007 4.8%
Interest expense  54  73 (26.0)  183  377 (51.5)
Income tax expense  4,720  2,834 66.5  7,169  6,584 8.9
Depreciation and amortization  806  645 25.0  2,283  1,882 21.3
EBITDA  23,165  14,423 60.6  36,882  34,850 5.8
Loss on extinguishment of debt  —  — —  —  175 (100.0)
Net loss (gain) on investments  550  (182) NM  1,325  (591) (324.2)
Gain on sale of real estate  —  — —  —  (1,966) (100.0)
Stock-based compensation  663  430 54.2  1,963  1,241 58.2
Adjusted EBITDA $24,378 $14,671 66.2% $40,170 $33,710 19.2%

NM = Not meaningful		            
(Components may not sum due to rounding)


The following table reconciles GAAP net income to operating net income and GAAP net income per share - basic to operating net income per share - basic for the periods indicated:

 For the Three Months Ended For the Nine Months Ended
 September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
                
(000’s except per common share and outstanding share amounts)Amount Basic income per common share Amount Basic income per common share Amount Basic income per common share Amount Basic income per common share
                 
Net income$17,584 $1.21 $10,872 $0.77 $27,246 $1.88 $26,007 $1.88
                
Net loss (gain) on investments 550    (182)    1,325    (591)  
Gain on sale of real estate —    —    —    (1,966)  
Net loss (gain) on investments and (gain) on sale of real estate 550    (182)    1,325    (2,557)  
Less tax benefit (expense) on net loss (gain) 115    (38)    278    (537)  
                
Net loss (gain) on investments and (gain) on sale of real estate, net of taxes 434 $0.03  (144) $(0.01)  1,047 $0.07  (2,020) $(0.15)
                
Operating net income$18,019 $1.24 $10,729 $0.76 $28,293 $1.96 $23,988 $1.73
                
Weighted average basic shares outstanding 14,478,275    14,142,374    14,470,866    13,849,283  
                
(Components may not sum due to rounding)


The following table reconciles GAAP net income to operating net income and GAAP net income per share - diluted to operating net income per share - diluted for the periods indicated:

 For the Three Months Ended For the Nine Months Ended
 September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
(000’s except per common share and outstanding share amounts)Amount Diluted income per common share Amount Diluted income per common share Amount Diluted income per common share Amount Diluted income per common share
                
Net income$17,584 $1.19 $10,872 $0.74 $27,246 $1.86 $26,007 $1.82
                
Net loss (gain) on investments 550    (182)    1,325    (591)  
Gain on sale of real estate —    —    —    (1,966)  
Net loss (gain) on investments and (gain) on sale of real estate 550    (182)    1,325    (2,557)  
Less tax benefit (expense) on net loss (gain) 115    (38)    278    (537)  
                
Net loss (gain) on investments and (gain) on sale of real estate, net of taxes 434 $0.03  (144) $(0.01)  1,047 $0.07  (2,020) $(0.15)
                
Operating net income$18,019 $1.22 $10,729 $0.73 $28,293 $1.93 $23,988 $1.68
                
Weighted average diluted shares outstanding 14,716,112    14,601,241    14,657,940    14,303,326  
                
(Components may not sum due to rounding)


The following table reconciles GAAP net income to operating net income and GAAP return on equity to operating return on equity for the periods indicated:

  For the Three Months Ended For the Nine Months Ended
  September 30, September 30,
(000’s except percentages) 2026
 2025
 Change 2026
 2025
 Change
Operating Net Income Reconciliation:            
Net income $17,584 $10,872 61.7% $27,246 $26,007 4.8%
             
Net loss (gain) on investments  550  (182) NM  1,325  (591) (324.2)%
Gain on sale of real estate  —  — —%  —  (1,966) (100.0)%
Net loss (gain) on investments and (gain) on sale of real estate  550  (182) NM  1,325  (2,557) (151.8)%
Less tax benefit (expense) on net loss (gain)  115  (38) NM  278  (537) (151.8)%
Net loss (gain) on investments and (gain) on sale of real estate, net of taxes  434  (144) NM  1,047  (2,020) (151.8)%
             
Operating net income $18,019 $10,729 67.9% $28,293 $23,988 17.9%
             
Operating Return on Equity Reconciliation:            
             
Net income $17,584 $10,872 61.7% $27,246 $26,007 4.8%
Average equity $132,951 $101,265 31.3% $129,737 $87,181 48.8%
Return on equity  13.2%  10.7% 2.5 pts  21.0%  29.8% (8.8) pts
Return on equity - annualized  52.9%  42.9% 10.0 pts  28.0%  39.8% (11.8) pts
             
Net loss (gain) on investments and (gain) on sale of real estate, net of taxes $434 $(144) NM $1,047 $(2,020) (151.8)%
Average equity $132,951 $101,265 31.3% $129,737 $87,181 48.8%
Effect of net loss (gain) on investments and (gain) on sale of real estate, net of taxes, on return on equity  0.3% (0.1)% 0.4 pts  0.8% (2.3)% 3.1 pts
             
Operating net income $18,019 $10,729 67.9% $28,293 $23,988 17.9%
Operating net income - annualized $72,076 $42,914 68.0% $37,724 $31,984 17.9%
Average equity $132,951 $101,265 31.3% $129,737 $87,181 48.8%
             
Operating return on equity  13.6%  10.6% 3.0 pts  21.8%  27.5% (5.7) pts
Operating return on equity - annualized  54.2%  42.4% 11.8 pts  29.1%  36.7% (7.6) pts
             

NM = Not meaningful		            
(Components may not sum due to rounding)


The following table reconciles the GAAP net loss ratio to the underlying loss ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented:

  For the Three Months Ended For the Nine Months Ended
  September 30,
 September 30,
  2026 2025 Percentage Point Change 2026 2025 Percentage Point Change
Underlying Loss Ratio Reconciliation:            
             
GAAP net loss ratio 34.9% 44.3% (9.4) pts 51.1% 48.2% 2.9 pts
             
Effect of catastrophes 7.5% 0.2% 7.3 pts 10.4% 0.8% 9.6 pts
Net loss ratio excluding the effect of catastrophes 27.4% 44.1% (16.7) pts 40.7% 47.4% (6.7) pts
Effect of prior-year favorable reserve development (6.1)% —% (6.1) pts (3.8)% (0.6)% (3.2) pts
             
Underlying Loss Ratio 33.5% 44.1% (10.6) pts 44.5% 48.0% (3.5) pts
             
(Components may not sum due to rounding)


The following table reconciles the GAAP net combined ratio to the underlying combined ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented:

  For the Three Months Ended For the Nine Months Ended
  September 30,
 September 30,
  2026 2025 Percentage Point Change 2026 2025 Percentage Point Change
Underlying Combined Ratio Reconciliation:            
             
GAAP net combined ratio 65.6% 72.7% (7.1) pts 81.7% 79.0% 2.7 pts
             
Effect of catastrophes 7.5% 0.2% 7.3 pts 10.4% 0.8% 9.6 pts
Effect of prior-year favorable reserve development (6.1)% —% (6.1) pts (3.8)% (0.6)% (3.2) pts
             
Underlying combined ratio 64.2% 72.5% (8.3) pts 75.1% 78.8% (3.7) pts
             
(Components may not sum due to rounding)


The following table reconciles GAAP book value per share, at the end of the period – diluted to book value per share, at the end of the period - diluted excluding AOCI for the periods indicated:

  As of
  September 30, 2026 September 30, 2025
         
(000’s except per common share and outstanding share amounts) Amount Book value per share - diluted Amount Book value per share - diluted
          
GAAP stockholders' equity $136,742 $9.21 $107,653 $7.28
AOCI  (18,212) $(1.23)  (6,745) $(0.46)
Stockholders' equity excluding AOCI $154,954 $10.43 $114,398 $7.74
         
Diluted shares outstanding  14,849,471    14,783,832  
         
(Components may not sum due to rounding)


KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets    
  September 30,
2026		 December 31,
2025
  (unaudited)  
Assets    
Short-term investments, at fair value (cost of $1,486,371 at September 30, 2026 and $0 at December 31, 2025) $1,482,405 $—
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $4,789,397 at September 30, 2026 and $5,137,267 at December 31, 2025)  6,038,334  6,042,348
Fixed-maturity securities, available-for-sale, at fair value, net of allowance for credit loss of $7,295 at September 30, 2026 and $0 at December 31, 2025 (amortized cost of $339,039,442 at September 30, 2026 and $296,738,055 at December 31, 2025)  315,980,512  289,037,190
Equity securities, at fair value (cost of $13,598,454 at September 30, 2026 and $13,546,654 at December 31, 2025)  9,186,878  10,056,595
Other investments  4,367,262  4,552,378
Total investments  337,055,391  309,688,511
Cash and cash equivalents  20,789,875  12,178,730
Premiums receivable, net of allowance for credit losses of $97,017 at September 30, 2026, and $20,831 at December 31, 2025  20,252,585  21,012,408
Reinsurance receivables, net  54,854,557  58,996,945
Prepaid reinsurance  1,673,206  2,142,329
Deferred policy acquisition costs  26,219,124  27,867,207
Intangible assets  500,000  500,000
Property and equipment, net  8,237,039  7,897,675
Deferred income taxes, net  7,465,128  4,179,559
Other assets  11,684,465  8,961,787
Total assets $488,731,370 $453,425,151
     
Liabilities    
 Loss and loss adjustment expense reserves $158,457,641 $140,538,618
 Unearned premiums  162,401,533  154,028,072
 Advance premiums  8,412,395  4,003,453
 Reinsurance balances payable  3,888,399  5,232,319
 Deferred ceding commission revenue  174,251  8,362,529
 Accounts payable, accrued expenses and other liabilities  11,390,227  11,253,649
 Income taxes payable  3,789,983  2,835,135
Debt, net (current $1,354,999 and long-term $2,119,590 at September 30, 2026, current $1,296,900 and long-term $3,143,227 at December 31, 2025)  3,474,589  4,440,127
Total liabilities  351,989,018  330,693,902
     
Commitments and Contingencies    
     
Stockholders' Equity    
 Preferred stock, $0.01 par value; authorized 2,500,000 shares  —  —
Common stock, $0.01 par value; authorized 20,000,000 shares; issued 16,025,218 shares at September 30, 2026 and 15,921,651 shares at December 31, 2025; outstanding 14,481,647 shares at September 30, 2026 and 14,397,526 shares at December 31, 2025  160,252  159,216
Capital in excess of par  101,125,525  99,624,713
Accumulated other comprehensive loss  (18,211,772)  (6,081,530)
Retained earnings  59,528,187  34,596,857
   142,602,192  128,299,256
     
Treasury stock, at cost, 1,543,571 shares at September 30, 2026 and 1,524,125 shares at December 31, 2025  (5,859,840)  (5,568,007)
Total stockholders' equity  136,742,352  122,731,249
Total liabilities and stockholders' equity $488,731,370 $453,425,151


KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)

  For the Three Months Ended For the Nine Months Ended
  September 30, September 30,
  2026
 2025
 2026
 2025
         
Revenues        
Net premiums earned $62,411,604 $47,925,053 $178,747,895 $137,663,376
Ceding commission revenue  1,740,426  4,900,401  4,677,268  10,940,648
Net investment income  3,755,811  2,499,071  10,522,121  6,847,934
Net (losses) gains on investments  (549,962)  182,122  (1,324,964)  590,594
Gain on sale of real estate  —  —  —  1,965,989
Other income  185,905  145,843  550,746  437,503
Total revenues  67,543,784  55,652,490  193,173,066  158,446,044
         
Expenses        
Loss and loss adjustment expenses  21,801,743  21,232,324  91,306,624  66,334,564
Commission expense  12,192,870  10,308,092  33,961,420  30,250,601
Other underwriting expenses  8,898,238  8,358,432  25,914,666  23,491,221
Other operating expenses  1,485,762  1,330,258  5,108,739  3,519,475
Depreciation and amortization  806,401  644,653  2,283,381  1,881,880
Interest expense  54,073  72,609  182,736  377,137
Total expenses  45,239,087  41,946,368  158,757,566  125,854,878
         
Income from operations before taxes  22,304,697  13,706,122  34,415,500  32,591,166
Income tax expense  4,720,243  2,833,647  7,169,125  6,583,699
Net income  17,584,454  10,872,475  27,246,375  26,007,467
         
Other comprehensive (loss) income, net of tax        
Gross (increase) decrease in net unrealized losses        
on available-for-sale-securities  (12,271,271)  2,760,803  (15,565,772)  6,862,488
         
Reclassification adjustment for net losses        
included in net income  5,785  6,322  211,036  12,126
Net (increase) decrease in net unrealized losses  (12,265,486)  2,767,125  (15,354,736)  6,874,614
Income tax benefit (expense) related to items        
of other comprehensive (loss) income  2,575,750  (581,096)  3,224,494  (1,443,668)
 Other comprehensive (loss) income, net of tax  (9,689,736)  2,186,029  (12,130,242)  5,430,946
         
Comprehensive income $7,894,718 $13,058,504 $15,116,133 $31,438,413
         
Earnings per common share:        
Basic $1.21 $0.77 $1.88 $1.88
Diluted $1.19 $0.74 $1.86 $1.82
         
Weighted average common shares outstanding        
Basic  14,478,275  14,142,374  14,470,866  13,849,283
Diluted  14,716,112  14,601,241  14,657,940  14,303,326
         
Dividends declared and paid per common share $0.06 $0.05 $0.16 $0.05



FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Kingstone's third-quarter 2026 earnings?

Kingstone earned $17.584 million, or $1.19 per diluted share, in the quarter ended September 30, 2026. Net income increased 61.7% and diluted earnings per share increased 60.8% from the corresponding 2025 quarter.

What is Kingstone's updated 2026 earnings guidance?

Kingstone expects 2026 diluted earnings per share of $2.70 to $2.90, compared with its previous range of $2.20 to $2.90. Its modeling assumptions include a 21% effective tax rate and 14.8 million weighted average diluted shares outstanding.

Does Kingstone's 2026 outlook assume more favorable reserve development in the fourth quarter?

Kingstone assumes no additional prior-year reserve development in the fourth quarter. The outlook includes favorable development already recognized through September 30, 2026, representing 2% to 3% of estimated full-year net premiums earned. Additional reserve changes or actual catastrophe losses could materially affect the combined ratio.

What is Kingstone's 2026 underlying combined-ratio guidance?

Kingstone kept its 2026 underlying combined-ratio outlook unchanged at 74% to 76%. This non-GAAP measure combines the underlying loss ratio with the underwriting expense ratio, excluding catastrophe losses and prior-year reserve development from the loss component.

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