Kingstone Companies, Inc · NASDAQ:KINS
Kingstone Companies — Investor Presentation (March 2025)
26 slides from Kingstone Companies's investor presentation, Mar 13, 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 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 95% of total policies at 12/31/2024. • 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 • Capi
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 12/31/2024 Suffolk 44.3% Nassa
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. FY2024 net loss ratio of 48.7%, an improvement of 23.7-percentage points from FY2023. Personal Lines Net Loss+ALAE Ratio 70.4% 56.1% 55.8% 62.1% 77.7% 61.9% 69.8% 48.5% 51.0% 37.9% 28.7% 38.3%
Slide 9: Mix of Business by Policies-in-Force
9 Core HO 64% Core DF 22% PDO 8% Other 1% Non-Core 5% MIX OF BUSINESS BY POLICIES-IN-FORCE Core Business refers to the Company’s New York policies. 20242023 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 Business Renewal Premium Increase of +15% in Q4’24 vs. Q4’23 Replacement cost was adjusted on every policy starting Q3 2022 so that the entire portfo
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 • Achieved a 1.6-percentage point reduction in our net underwriting expense ratio during FY2024, following a 3.1-percentage point reduction in FY2023, driven by ongoing efficiency improvements to business operations along with an increase in our average premium. $25 $
Slide 14: Key Financial Metrics Three Months Ended December
14 KEY FINANCIAL METRICS THREE MONTHS ENDED DECEMBER 31 +37% DIRECT PREMIUMS WRITTEN GROWTH1 COMBINED RATIO IMPROVED BY 11.0 POINTS TO 78.5% 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 Measure
Slide 15: Key Financial Metrics Full Year Ended December
15 KEY FINANCIAL METRICS FULL YEAR ENDED DECEMBER 31 +21% DIRECT PREMIUMS WRITTEN GROWTH1 COMBINED RATIO IMPROVED BY 25.3 POINTS TO 80.0% 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”.
Slide 16: Balance Sheet Overview
16 BALANCE SHEET OVERVIEW December 31, December 31, 2024 2023 Assets Total investments $208,617,941 $174,632,828 Cash and cash equivalents 28,669,441 8,976,998 Premiums receivable, net 21,766,988 13,604,808 Reinsurance receivables, net 69,322,436 75,593,912 Deferred policy acquisition costs 24,732,3
Slide 17: Investment Portfolio
17 INVESTMENT PORTFOLIO (as of 12/31/2024) • Outsourced portfolio management • High-quality portfolio provides consistent net investment income; • 79% of fixed income portfolio rated A, or higher, or held as U.S. Treasuries. • Average portfolio yield of 3.68%. • Effective duration of 3.9 years. High
Slide 18: Raised 2025 Guidance
18 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 $2.15 Net Income Per Share - Diluted RAISED 2025 GUIDANCE For 2025, the Company’s full year expectations are as follows: 1Kingstone refers to New York business
Slide 19: Executive Management Team
19 EXECUTIVE MANAGEMENT TEAM Investor Relations Contact: Karin Daly Vice President The Equity Group Inc. kdaly@equityny.com Meryl S. Golden – President & Chief Executive Officer Jennifer Gravelle - Chief Financial Officer Sarah Chen – Senior Vice President & Chief Actuary
Slide 20: Definitions and Non-GAAP Measures
20 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 21: Reconciliation of Direct Premiums Written to Net Premiums Earned
21 RECONCILIATION OF DIRECT PREMIUMS WRITTEN TO NET PREMIUMS EARNED For the Three Months Ended For the Years Ended December 31, December 31, % % 2024 2023 Change 2024 2023 Change (000’s except percentages) Direct Premiums Written Reconciliation: Direct premiums written $ 72,533 $ 52,938 37.0 % $ 241
Slide 22: Reconciliation of Net Income (Loss) to Adjusted EBITDA
22 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA For the Three Months Ended For the Years Ended December 31, December 31, % % 2024 2023 Change 2024 2023 Change (000’s except percentages) Adjusted EBITDA Reconciliation: Net income (loss) $ 5,439 $ 2,946 84.6 % $ 18,358 $ (6,168) NM % Interes
Slide 23: Net Income to Operating Net Income and Basic Per Share
23 NET INCOME (LOSS) TO OPERATING NET INCOME (LOSS) AND BASIC NET INCOME (LOSS) PER SHARE TO BASIC OPERATING NET INCOME (LOSS) PER SHARE For the Three Months Ended For the Years Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Amount Basic income per common share Amount
Slide 24: Net Income to Operating Net Income and Diluted Per Share
24 NET INCOME (LOSS) TO OPERATING NET INCOME (LOSS) AND DILUTED NET INCOME (LOSS) PER SHARE TO DILUTED OPERATING NET INCOME (LOSS) PER SHARE For the Three Months Ended For the Years Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Amount Diluted income per common share A
Slide 25: Reconciliation of Net Income to Operating Net Income and Return on Equity
25 RECONCILIATION OF NET INCOME (LOSS) TO OPERATING NET INCOME (LOSS) AND RETURN ON EQUITY TO OPERATING RETURN ON EQUITY For the Three Months Ended For the Years Ended December 31, December 31, 2024 2023 Change 2024 2023 Change (000’s except percentages) Operating Net Income (Loss) Reconciliation: N
Slide 26: Reconciliation of Underlying Loss Ratio and Net Loss Ratio
26 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 For the Years Ended December 31, December 31, 2024 2023 Percentage Point Change 2024 2023 Percentage Point Change Loss Ratio Reconciliation: Und
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