Kingstone Companies, Inc · NASDAQ:KINS
Kingstone Companies — Investor Presentation (June 2025)
25 slides from Kingstone Companies's investor presentation, June 2025
Slide 1: Investor Presentation June 2025
P&C Insurance Company Capitalizing on Unique Niche Market Opportunity to Achieve Profitable Growth Investor Presentation June 2025 NASDAQ: KINS
Slide 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 on 2 DISCLAIMER management’s current expecta
Slide 3: Kingstone Overview
3 KINGSTONE OVERVIEW Market Stock Price*: $16.30 $224M Cap Shares Outstanding*: 13,759,292 Core Direct Written +23% cccc Growth vs. Q1 2024 Kingstone is a northeast regional property and Premium casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Policies-
Slide 4: Investment Highlights
4 INVESTMENT HIGHLIGHTS Strong Position in Niche Markets Low-cost, Highly-efficient Provider • Focusing on core business growth in Downstate NY • In-house underwriting, information technology, claims, • Core represents 96% of total policies at 3/31/2025. customer service and actuarial functions. • R
Slide 5: Business Operations
5 BUSINESS OPERATIONS 2024 DIRECT PREMIUMS WRITTEN OF $242 MILLION 12TH LARGEST WRITER OF HOMEOWNERS INSURANCE IN THE STATE OF NEW YORK FOUNDED IN 1886 Personal lines: Largest line of business; consists of homeowners and dwelling fire multi- peril, cooperative/condominiums, renters, and personal umb
Slide 6: Core Business Growth
CORE BUSINESS GROWTH 6 Westchester Percentage of In-force Premium Long Island Sound by County County 3/31/2025 Suffolk 44.5% Nassau 16.9% (Richmond) Atlantic Ocean (Kings) Kings 13.7% Queens 11.3% Kingstone refers to its New York business Richmond 6.0% as its “Core Business”. Bronx 4.5% New York 0.7
Slide 7: Strategic & Profitable Growth
STRATEGIC & PROFITABLE GROWTH 7 Underwriting Measures to Grow Profitability; We are… Priced right; ” Properly matching rate to risk; I believe the current market changes present us with the Insuring all properties at their current replacement cost; greatest profitable growth opportunity that Kingsto
Slide 8: Core vs Non-Core Personal Lines Loss Experience
CORE VS NON-CORE PERSONAL LINES LOSS EXPERIENCE 8 Core Business refers to the Company’s New York policies. Personal Lines Net Loss+ALAE Ratio 160% 137.4% 140% 121.9% 119.8% 120% 115.8% 101.8% 104.9% 101.3% 100% 77.7% 76.7% 80% 69.8% 62.1% 61.9% 61.7% 60.2% 56.1% 55.8% 60% 48.5% 51.0% 48.2% 37.9% 38.
Slide 9: Mix of Business by Policies-in-Force
MIX OF BUSINESS BY POLICIES-IN-FORCE 9 Core Business refers to the Company’s New York policies. Non-Core Other 4% 1% Other 1% Non-Core PDO 14% 8% PDO 8% December 31, March 31, +11% in Core Business Core DF 2023 Core HO 54% (87%) in Non-Core Business 21% 2025 Core HO Core DF Change in policies-in-for
Slide 10: Direct Premiums Written
DIRECT PREMIUMS WRITTEN* 10 Strategically shrinking Non-Core Business due to profitability concerns. $350 Estimating NY Growth of +15% to +25% driven by growth in renewal premiums $330 Achieved NY Growth of +31% in FY2024 $310 driven by an unprecedented market opportunity $290 $270 $ in millions $25
Slide 11: Pricing Trends
PRICING TRENDS 11 Achieving significant price increases, ahead of inflation. $4,000 Average Core Personal Lines Business Renewal Premium $3,500 Increase of +18.7% in Q1’25 vs. Q1’24 $3,000 Replacement cost was adjusted $2,500 on every policy starting Q3 2022 so that the entire portfolio is insured t
Slide 12: Managing Reinsurance Requirements
MANAGING REINSURANCE REQUIREMENTS 12 Cumulative Risk Adjusted Rate Change - Catastrophe XOL 2020 2021 2022 2023 2024 Guy Carpenter Index 1.00 1.06 1.22 1.65 1.55 100YR Verisk Hurricane Probable Maximum Cost Kingstone 1.00 0.99 1.16 1.37 1.13 $400,000,000 $80,000,000,000 $350,000,000 $70,000,000,000
Slide 13: Expense Reduction Initiative
EXPENSE REDUCTION INITIATIVE 13 • 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. 45.0% $30.0 35.0% $20.0 31.3% 31.3% 41.0% 30.0% 40.0% $15.0
Slide 14: Key Financial Metrics
KEY FINANCIAL METRICS 14 THREE MONTHS ENDED MARCH 31 Consolidated Financial Results ($ in thousands, except per share data) 2024 2023 Change +18% Direct premiums written1 $58,175 $49,325 17.9% Net premiums earned $43,523 $28,820 51.0% DIRECT PREMIUMS Net investment income $2,049 $1,503 36.3% WRITTEN
Slide 15: Balance Sheet Overview
BALANCE SHEET OVERVIEW 15 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 (as of 3/31/2025)
INVESTMENT PORTFOLIO (as of 3/31/2025) 16 Net Investment Income $ in millions Highlights $2.5 $2.0 • Outsourced portfolio management $2.0 $1.5 • High-quality portfolio provides consistent net investment income; $1.5 • 83% of fixed income portfolio rated A, or higher, or held as U.S. $1.0 Treasuries.
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: 15% to 25% Core Business1 direct premiums written2 growth 81% to 85% Combined Ratio $1.90 to $2.30 Net Income Per Share – Basic $1.75 to $2.1
Slide 18: Executive Management Team
18 EXECUTIVE MANAGEMENT TEAM Meryl S. Golden President & Chief Executive Officer Investor Relations Contact: Karin Daly Vice President The Equity Group Inc. kdaly@equityny.com
Slide 19: Definitions and Non-GAAP Measures
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 comp
Slide 20: Reconciliation of Direct Premiums Written to Net Premiums Earned
RECONCILIATION OF DIRECT PREMIUMS WRITTEN TO NET 20 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
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA 21 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
RECONCILIATION OF NET INCOME TO OPERATING NET 22 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 Basic income Basic income Amount per common Amount per common share 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
RECONCILIATION OF NET INCOME TO OPERATING NET 23 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 Diluted income Diluted income Amount per common Amount per common share share (000’s except per common share amo
Slide 24: Reconciliation of Net Income to Operating Net Income and Return on Equity
RECONCILIATION OF NET INCOME TO OPERATING NET INCOME 24 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
RECONCILIATION OF THE UNDERLYING LOSS RATIO AND THE 25 NET LOSS RATIO EXCLUDING THE EFFECT OF CATASTROPHES TO THE NET LOSS RATIO For the Three Months Ended March 31, Percentage Point 2025 2024 Change Underlying Loss Ratio Reconciliation: Underlying Loss Ratio 62.1% 58.8% 3.3 pts Effect of prior-year
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