Kingstone Companies Delivers Record-Breaking Quarter: Strong Growth, Underwriting Discipline, and Financial Efficiency
Kingstone Companies has announced its most profitable quarter in history, with net income reaching a record $15.5 million and net income per diluted share increasing 35% to $1.5. The company's performance was driven by premium growth, underwriting profitability, operating efficiency, and higher investment income.
Net premiums earned grew 31% to $60.5 million, with direct premiums written increasing 19% to $72.5 million. This growth was led by continued strength in New York Personal Line, which saw new business policy count increase 35%, retention improve by two percentage points, and average renewal premium increase 8%. The company's lower quota share cession allowed it to retain more premium.
Despite robust growth this quarter, Kingstone is seeing signs of a softening market and an increasingly competitive environment. However, the pressure is most visible in the Dwelling Fire line, while demand across the broader franchise remains healthy as new business and retention results show. Competition has entered and exited this market over time, while Kingstone's broad and long-standing producer relationships have supported its performance throughout market cycles.
Kingstone's Select product continues to perform well, with inception-to-date claim frequency more than 34% lower for Homeowners policies and 19% lower for Dwelling Fire policies. Select now represents 62% of the company's homeowner policies in force and 40% of its Dwelling Fire policies in force, extending its runway for continued mix improvement.
The company's expense ratio improved by 2.1 points to 30.6%, reflecting continued operating leverage as it scales. Underwriting expense dollars are growing more slowly than net earned premium. The net combined ratio for the quarter was 70.2%, down 1.3 points from the prior year quarter.
Kingstone's Chief Executive Officer, Meryl Golden, stated that the company's strong growth and underwriting discipline were key drivers of its performance. "We delivered the most profitable quarter in our history," she said. "Our broad-based earnings contribution was driven by premium growth, underwriting profitability, operating efficiency, and higher investment income."
Kingstone also announced a significant update to its catastrophe reinsurance placement, increasing total catastrophe protection by 14% to $500 million and lowering the risk-adjusted cost of its core catastrophe excess of loss coverage by more than 15%. This move reflects the company's commitment to protecting its policyholders from catastrophic events.
Overall, Kingstone Companies' record-breaking quarter is a testament to its strong growth, underwriting discipline, and financial efficiency. As the company continues to scale, it remains focused on delivering value to its shareholders while maintaining its commitment to underwriting excellence."
