Kingstone Stock Price, News & Analysis

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.

Kingstone Companies (NASDAQ:KINS) has announced an agreement to sell its headquarters building and adjacent mixed-use property to Ulster County, NY. The transaction is expected to generate a pre-tax gain of $1.9 million ($1.5 million after-tax) in Q1 2025, subject to closing.

The sale aligns with Kingstone's transition to a remote workforce model and will reduce annual operating costs by $300,000. The company plans to maintain its presence in Kingston, NY by leasing a smaller space more suitable for its current needs.

Kingstone Companies (NASDAQ:KINS) reported its best year in company history in 2024, achieving record premium and profitability with four consecutive profitable quarters. The company experienced 31% growth in New York State direct written premiums, including 44% growth in the second half, acquiring over 6,000 policies and $23 million in premium from customers of two departing competitors.

Key developments include reducing non-core business outside New York by 58% to $10 million in direct written premium, with policies-in-force declining 65% to under 4,000. The company's subsidiary KICO reduced its personal lines quota share treaty to 16% from 27% effective January 2025, which is expected to increase 2025 EPS by $0.26 basic and $0.25 diluted. Additionally, Kingstone made $4 million in debt prepayments, reducing outstanding debt to $6 million, resulting in $0.55 million annual interest savings.

Kingstone Insurance, the 15th largest homeowners insurance writer in New York, has partnered with Earnix to enhance its pricing capabilities and support strategic growth. The collaboration will enable Kingstone to utilize Earnix's cloud-based intelligent solutions featuring data-science, analytical modeling, and AI capabilities for more accurate pricing strategies.

The partnership provides Kingstone with a unified platform offering built-in governance, version control, and explainability, facilitating quick product roll-out and improved market responsiveness. Kingstone operates primarily in the Northeast region through retail and wholesale agents, actively writing personal lines and commercial auto insurance across multiple states.

Kingstone Companies (Nasdaq:KINS) released additional guidance details following their record-breaking Q3 2024. The company expects net income per share for 2024 to be $1.40-$1.70 (basic) and $1.30-$1.60 (diluted), while 2025 projections are $1.60-$2.00 (basic) and $1.45-$1.85 (diluted). The company's core business is expected to see direct premiums written growth of 25-35% in 2024 and 15-25% in 2025. During Q3 2024, Kingstone reduced debt by $10 million through a combination of surplus funds and stock issuance proceeds, resulting in $0.7 million savings in annual interest expense.

Kingstone Companies (KINS) reported exceptional Q3 2024 financial results, achieving its highest income since 2009. Core business direct premiums written increased by 39.4% to $64,170 thousand in Q3 and 25% year-to-date. The net combined ratio improved significantly to 72%, down 38.2 percentage points from the previous year. The company reported net income of $6,978 thousand, compared to a loss of $3,538 thousand in Q3 2023. Return on equity reached 55.6% annualized. The strong performance was attributed to lower claims frequency, improved risk selection, and favorable market conditions, leading management to raise both 2024 and 2025 guidance.

Kingstone Companies (NASDAQ:KINS) reported strong preliminary Q3 2024 results with significant improvements across key metrics. The company achieved 28% direct written premium growth and a consolidated GAAP combined ratio of 72%, representing a 38 percentage point improvement year-over-year. The net loss ratio improved by 40 percentage points to 39%. Operating income reached $0.55 per basic share, compared to a loss of $(0.27) in Q3 2023.

For the nine months ended September 30, 2024, the company reported 15% direct written premium growth, an improved GAAP combined ratio of 81%, and operating income of $1.07 per basic share versus a loss of $(0.89) in the prior year period.

Kingstone Companies, Inc. (NASDAQ:KINS) has announced a significant debt restructuring initiative. The company has entered into a new Note Exchange Agreement with existing noteholders to refinance $19.95 million of outstanding 12% Senior Notes due December 30, 2024. Under the new agreement, Kingstone will issue $14.95 million in new 13.75% Senior Notes due June 30, 2026, along with $5 million in cash. This move effectively reduces the company's debt by 25% and extends the maturity date by 18 months. Additionally, the expiration date for warrants issued in 2022 will be extended to June 30, 2026. The exchange is set to close on September 12, 2024. CEO Meryl Golden emphasized that this refinancing will enhance financial flexibility and allow for focus on profitable growth opportunities.

Kingstone Companies, Inc. (Nasdaq:KINS) announced the retirement of its long-time Chairman, Barry Goldstein, effective September 10, 2024. Thomas Newgarden will succeed him as Non-Executive Chairman. Goldstein served as Chairman since 2001 and held the CEO position multiple times. Under his leadership, Kingstone transitioned from an insurance agency to a Nasdaq-listed company, acquired and demutualized Commercial Mutual Insurance Company (renamed Kingstone Insurance Company), and grew to become the 15th largest writer of homeowners insurance in New York State.

Goldstein expressed confidence in the company's future under CEO Meryl Golden's leadership and the Board's guidance. The Board and CEO acknowledged Goldstein's contributions and mentorship over his two-decade tenure.