Kingstone Companies, Inc · NASDAQ:KINS
Kingstone Companies — Q1 2025 Earnings Presentation
25 slides from Kingstone Companies's earnings presentation, May 8, 2025
Slide 1: Investor Presentation May 2025
Investor Presentation May 2025 NASDAQ: KINS P&C Insurance Company Capitalizing on Unique Niche Market Opportunity to Achieve Profitable Growth
Slide 2: Disclaimer & Forward-Looking Statements
2 DISCLAIMER & FORWARD- LOOKING STATEMENTS This presentation 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 o
Slide 3: Kingstone Overview
3 KINGSTONE OVERVIEW cccc Market Cap Core Direct Written Premium Policies- In-Force Financial Strength Rating: Kingstone is a northeast regional property and casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Company (“KICO”). KICO, a New York domiciled ca
Slide 4: Investment Highlights
4 • Focusing on core business growth in Downstate NY • Core represents 96% of total policies at 3/31/2025. • Ranked by S&P as the 12th largest homeowners insurer in NY in 2024 with a market share of 2.1%. INVESTMENT HIGHLIGHTS Strong Position in Niche Markets Unprecedented Market Opportunity • Capit
Slide 5: Business Operations
5 8%91% 1% 2024 DIRECT PREMIUMS WRITTEN OF $242 MILLION 12TH LARGEST WRITER OF HOMEOWNERS INSURANCE IN THE STATE OF NEW YORK FOUNDED IN 1886 Personal Lines BUSINESS OPERATIONS Personal lines: Largest line of business; consists of homeowners and dwelling fire multi- peril, cooperative/condominiums, r
Slide 6: Core Business Growth
6 CORE BUSINESS GROWTH Downstate New York refers to NYC, Long Island and Westchester County. Atlantic Ocean Long Island SoundWestchester Kingstone refers to its New York business as its “Core Business”. (Kings) (Richmond) Percentage of In-force Premium by County County 3/31/2025 Suffolk 44.5% Nassau
Slide 7: Strategic & Profitable Growth
7 STRATEGIC & PROFITABLE GROWTH Priced right; Properly matching rate to risk; Insuring all properties at their current replacement cost; Effectively managing risk and protocols; and Operating at a highly efficient expense structure. I believe the current market changes present us with the greatest p
Slide 8: Core vs Non-Core Personal Lines Loss Experience
8 CORE VS NON-CORE PERSONAL LINES LOSS EXPERIENCE Core Business refers to the Company’s New York policies. Non-Core Business profitability has stabilized. Personal Lines Net Loss+ALAE Ratio 56.1% 55.8% 62.1% 77.7% 61.9% 69.8% 48.5% 51.0% 37.9% 28.7% 38.3% 60.2% 101.8% 121.9% 115.8% 137.4% 104.9% 119
Slide 9: Mix of Business by Policies-in-Force
9 Core HO 66% Core DF 21% PDO 8% Other 1% Non-Core 4% MIX OF BUSINESS BY POLICIES-IN-FORCE Core Business refers to the Company’s New York policies. 20252023 Core HO = Core Homeowners Core DF = Core Dwelling Fire Non-Core = Non-core Homeowners PDO = Livery Physical Damage Other = Personal Umbrella &
Slide 10: Direct Premiums Written
10 DIRECT PREMIUMS WRITTEN* Strategically shrinking Non-Core Business due to profitability concerns. Expanding growth in the profitable Core Business in 2H2024 and into 2025, driven by a favorable competitive landscape in New York. *Direct premiums written is not based on GAAP and is defined and rec
Slide 11: Pricing Trends
11 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Core - Renewal CPI PRICING TRENDS Achieving significant price increases, ahead of inflation. Average Core Personal Lines Business Renewal Premium Increase of +18.7% in Q1’25 vs. Q1’24 Replacement cost was adjusted on every policy starting Q3 2022 so that
Slide 12: Managing Reinsurance Requirements
12 MANAGING REINSURANCE REQUIREMENTS Successfully managing reinsurance requirements and costs while controlling growth of total insurable value. 1 0 0 YR V er is k H u rr ic an e P ro b ab le M ax im u m C o st To tal In su rab le V alu e Cumulative Risk Adjusted Rate Change - Catastrophe XOL 2020 2
Slide 13: Expense Reduction Initiative
13 EXPENSE REDUCTION INITIATIVE • Net underwriting expense ratio remained stable compared to the prior year period at 31.3% for the first quarter of 2025, driven by disciplined expense management as earned premium outpaced higher expenses. 41.0% 36.0% 33.0% 31.3% $26.3 $26.7 $25.9 $25.7 $25.0 $27.5
Slide 14: Key Financial Metrics
14 KEY FINANCIAL METRICS THREE MONTHS ENDED MARCH 31 +18% DIRECT PREMIUMS WRITTEN GROWTH1 20.8% ANNUALIZED RETURN ON EQUITY 1These measures are not based on GAAP and are defined and reconciled below to the most directly comparable GAAP measures. See “Definitions and Non-GAAP Measures”. NM = Not Mean
Slide 15: Balance Sheet Overview
15 BALANCE SHEET OVERVIEW March 31, December 31, 2025 2024 Assets Total investments 225,869,300 208,617,941 Cash and cash equivalents 37,490,182 28,669,441 Premiums receivable, net 17,012,840 21,766,988 Reinsurance receivables, net 60,818,148 69,322,436 Deferred policy acquisition costs 24,400,992 2
Slide 16: Investment Portfolio
16 $1.5 $2.0 $- $0.5 $1.0 $1.5 $2.0 $2.5 Q1 2024 Q1 2025 Net Investment Income $ in millions INVESTMENT PORTFOLIO (as of 3/31/2025) • Outsourced portfolio management • High-quality portfolio provides consistent net investment income; • 83% of fixed income portfolio rated A, or higher, or held as U.S
Slide 17: 2025 Guidance
17 2025 GUIDANCE The Company reaffirms guidance for fiscal year 2025, calculated based on anticipated net premiums earned of ~$184 million, and is as follows: 1Kingstone refers to New York business as its "Core" business and business outside of New York as its "Non-Core" business. 2These measures ar
Slide 18: Executive Management Team
18 EXECUTIVE MANAGEMENT TEAM Investor Relations Contact: Karin Daly Vice President The Equity Group Inc. kdaly@equityny.com Meryl S. Golden President & Chief Executive Officer
Slide 19: Definitions and Non-GAAP Measures
19 Direct premiums written represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums written are direct premiums written less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct premiums written
Slide 20: Reconciliation of Direct Premiums Written to Net Premiums Earned
20 RECONCILIATION OF DIRECT PREMIUMS WRITTEN TO NET PREMIUMS EARNED For the Three Months Ended March 31, % 2025 2024 Change (000’s except percentages) Direct Premiums Written Reconciliation: Direct premiums written $ 58,175 $ 49,325 17.9 % Ceded written premiums 2,834 (11,230) NM Net premiums writte
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
21 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA For the Three Months Ended March 31, % 2025 2024 Change (000’s except percentages) Adjusted EBITDA Reconciliation: Net income $ 3,883 $ 1,427 172.1 % Interest expense 227 994 (77.2) Income tax expense 836 378 121.2 Depreciation and amortization 624
Slide 22: Reconciliation of Net Income to Operating Net Income and Basic Net Income Per Share
22 RECONCILIATION OF NET INCOME TO OPERATING NET INCOME AND BASIC NET INCOME PER SHARE TO BASIC OPERATING NET INCOME PER SHARE For the Three Months Ended March 31, 2025 March 31, 2024 Amount Basic income per common share Amount Basic income per common share (000’s except per common share amounts) Op
Slide 23: Reconciliation of Net Income to Operating Net Income and Diluted Net Income Per Share
23 RECONCILIATION OF NET INCOME TO OPERATING NET INCOME AND DILUTED NET INCOME PER SHARE TO DILUTED OPERATING NET INCOME PER SHARE For the Three Months Ended March 31, 2025 March 31, 2024 Amount Diluted income per common share Amount Diluted income per common share (000’s except per common share amo
Slide 24: Reconciliation of Net Income to Operating Net Income and Return on Equity
24 RECONCILIATION OF NET INCOME TO OPERATING NET INCOME AND RETURN ON EQUITY TO OPERATING RETURN ON EQUITY For the Three Months Ended March 31, 2025 2024 Change (000’s except percentages) Operating Net Income Reconciliation: Net income $ 3,883 $ 1,427 172.1% Net loss (gain) on investments 138 (726)
Slide 25: Reconciliation of Underlying Loss Ratio and Net Loss Ratio
25 RECONCILIATION OF THE UNDERLYING LOSS RATIO AND THE NET LOSS RATIO EXCLUDING THE EFFECT OF CATASTROPHES TO THE NET LOSS RATIO For the Three Months Ended March 31, 2025 2024 Percentage Point Change Underlying Loss Ratio Reconciliation: Underlying Loss Ratio 62.1% 58.8% 3.3 pts Effect of prior-year