Kingstone Companies, Inc · NASDAQ:KINS
Kingstone Companies — Q2 2025 Earnings Presentation
38 slides from Kingstone Companies's earnings presentation, Aug 7, 2025
Slide 1: Investor Presentation - August 2025
KINGSTONE Investor Presentation - August 2025
Slide 2: Disclaimer & Forward-Looking Statements
Disclaimer & Forward-Looking Statements —— This may contain “ ‘d-looking " within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking These are based on current and are subject to and changes in These
Slide 3: Kingstone Overview
Kingstone Overview 12th largest homeowners’ insurer in the State of New York Founded in 1886 Market Cap: $217 M Stock Price*: $15.38 Shares Outstanding*: 14,137,115 Core Direct Written Premium Growth of +17% vs. Q2 2024 Policies in-force of 77K At June 30, 2025 Net Investment Income Growth of 30% vs
Slide 4: Why Invest in Kingstone?
Why Invest in Kingstone? Strong Management Team Product Sophistication 1@1 ed Consistent Profitability & Underwriting Discipline 2 Scalable & Efficient Operating Platform Dead Unprecedented Market Opportunity Attractive Fundamentals
Slide 5: Strong Management Team
KINGSTONE \ — Strong Management Team
Slide 6: Executive Management Team
Executive Management Team Over 85 years of combined insurance experience. os 4 i n Meryl S. Golden Randy L. Patten Sarah Chen David Fernandez President & Chief Executive Officer Chief Financial Officer SVP & Chief Actuary SVP, Chief Claims Officer Investor Relations Contact: Karin Daly Vice Presiden
Slide 7: Product Sophistication
KINGSTONE a Product Sophistication
Slide 8: A differentiated product.
A differentiated product. Se lect Select Homeowners’ Frequency Reported A modern personal lines product suite launched in 2022 for Homeowners, Dwelling Fire and Condo. Select has a by-peril rating structure and was built using modern data science techniques using a host of data. % Pp Select has shif
Slide 9: Pricing Trends
Pricing Trends Sa $4,000 Achieving significant price increases, ahead of inflation. Our underwriting process evaluates risks $3,500 a based on their prior loss experience, cost of reinsurance, property condition and $3,000 insurance score, among other factors and then is augmented by _ information c
Slide 10: Consistent Profitability & Underwriting Discipline
KINGSTONE 1Ot od Consistent Profitability & Underwriting Discipline
Slide 11: Mix of Business
Mix of Business — Non-Core 3% Other 1% ‘NG December 31, +12% in Core Business June 30, 2023 (78%) in Non-Core Business 2025 Change in policies-in-force Core HO = Core Homeowners Core DF = Core Dwelling Fire Non-Core = Non-core Homeowners PDO = Livery Physical Damage Other = Personal Umbrella & Canin
Slide 12: Disciplined Underwriting
Disciplined Underwriting a Driving enhanced profitability 120 A Industry Combined Ratio of 104.2% UNPROFITABLE WeeIS2 vy a ° | | | | 2013 20 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 | 2025E" BKINS © Industry Combined Ratio és aN 2 © fa) 3° roy roy fo) fo) 1 im = 1 1 1 1 1 H i> 18 es |: ne 1
Slide 13: Expense Reduction Initiatives
Expense Reduction Initiatives 41.0% 2021 2022 2023 2024 Reduced net expense ratio by 10 points from 2021 to 2024 Restructured producer compensation saving 3.5 points Retired legacy systems saving $1.5 million annually Other Underwriting Expenses down 3.0 points Expense management has become a corpor
Slide 14: Robust Reinsurance Strategy
Robust Reinsurance Strategy a 100YR Verisk Hurricane Probable Maximum Cost $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Cumulative Risk Adjusted Rate Change - Catastrophe XOL 2020 2021 2022 2023 Guy Carpenter Index 1.00 1.06 1
Slide 15: Scalable & Efficient Operating Platform
KINGSTONE 41 Scalable & Efficient Operating Platform
Slide 16: A Track Record of Progress
A Track Record of Progress Powering Today and Defining Tomorrow Kingstone 2.0 (2021 - 2022) 1. Strategic hiring; 2. Development of the Excellence & Profitability Select product; 1. Reduced the non-Core 3. Investments in new book of business; systems and 2. Adjusted pricing to 1, Seventh consecutive
Slide 17: Unprecedented Market Opportunity
KINGSTONE v Unprecedented Market Opportunity
Slide 18: Robust Competitive Landscape in New York
Robust Competitive Landscape in New York 2024 Regulators Approve Strategic Exit Adirondack & Mountain Valley Withdrawal from NY in 2H'24 2025 - 2028 Another Calculated Exit AmGuard sets their Withdrawal from NY for late-Q3'25, > Kingstone Fills the Void Writes approx. $29 million in premiums across
Slide 19: Direct Premiums Written
Direct Premiums Written’ Kingstone Positioned to Capture Share Amid Industry Retrenchment Through 2025 and Beyond || $242M | t t i i $201M L_ * $200M : A t i ! i ! 1 1 1 ' i f i i i i i i R a f xe xy sit oo os xe ow nu i Cs xe fo we ow ow’ Fon ¥ w ot ow Fen) o we ow ow geo) gt we oo wr 9 We ® oe wi
Slide 20: 2025 Guidance
2025 15% to 20% a Core Business! direct premiums written? Guidance south The Company's guidance for fiscal year 2025 is sed , 79% to 83% calculated based on anticipated net premiums earned of ~$187 million. Combined Ratio Previous Guidance (as of May 8, 2025) was calculated based on anticipated net
Slide 21: Strategic Expansion & 5-Year Goal
Strategic Expansion & 5-Year Goal * Growing demand for underwriting capacity positions Kingstone to expand opportunistically and capture outsized margins, as demonstrated in our Core state. * Strategic state expansion should provide diversification benefits, reduce geographic * concentration risk, e
Slide 22: Attractive Fundamentals
KINGSTONE z Attractive Fundamentals
Slide 23: Valuation: Kingstone vs. Other Property Insurers
23 Valuation: Kingstone vs. Other Property Insurers v Attractive value investing opportunity with consistent underwriting and investment income. v Strong earnings base with lower price-to-earnings multiple in peer group. Consensus Forward P/E 17.7x Peer Group Median: 9.8x 10.3x il HRTG ACIC KINS SLD
Slide 24: Shareholder Return
24 Shareholder Return v Significant stock price gains reflecting increased investor confidence. v Reinstated cash dividend reinforcing Kingstone’s commitment to returning value to shareholders. Kingstone Stock Price $25.00 $20.00 $10.00
Slide 25: Why Invest in Kingstone?
Why Invest in Kingstone? Strong Management Team Product Sophistication 1@1 ed Consistent Profitability & Underwriting Discipline 2 Scalable & Efficient Operating Platform Dead Unprecedented Market Opportunity Attractive Fundamentals
Slide 26: Supplemental Financial Information
KINGSTONE = SUPPLEMENTAL FINANCIAL INFORMATION
Slide 27: Key Financial Metrics
Key Financial Metrics olidated Financial Results Six Months Ended ($ in thousands, except per share data) June 30, June 30, 2025 2024 Change 2025 2024 Change Direct premiums written? $61,062 $53,495 14.1% $119,23' $102,820 16.0% Net premiums earned $46,215 $30,304 52.5% $89,738 $59,124 518% Net inve
Slide 28: Balance Sheet Overview
Balance Sheet Overview June 30.2025 December 31, 2024| [Assets (Total investments 239,835,118 208,617,941) (Cash and cash equivalents 33,714,432 28,669,441) Premiums receivable, net 17.277.970 21,766,988} Reinsurance receivables, net 55,439,043 69,322,436} Prepaid reinsurance 3,649,273 =| Deferred p
Slide 29: Investment Portfolio
Investment Portfolio Overview as of 6/30/2025 Fixed Portfolio * Outsourced portfolio management * High-quality portfolio provides consistent net investment income; ‘Aor Higher 83% * 83% of fixed income portfolio rated A, or higher, or held as U.S. Treasuries. + Average portfolio yield of 3.93%. * Ef
Slide 30: Definitions and Reconciliation of Non-GAAP Measures
KINGSTONE = DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES
Slide 31: Non-GAAP measure definitions
Direct th by the Comp: pe period, Net t Net the most comparable to direct pr nd are pro-rata d the fiscal peri All of the Compar written for a i direct pr nd along with other measures, tO gauge the Company's Direct pr nd net i information, not bbstitute for net and do not reflect the Company's net p
Slide 32: Reconciliation of Direct Premiums Written to Net Premiums Earned
RECONCILIATION OF DIRECT PREMIUMS WRITTEN TO NET PREMIUMS EARNED For the Three Months Ended For the Six Months Ended June 30, June 30, % % 2025 2024 Change 2025 2024 Change (000's except percentages) Direct Premiums Written Reconciliation: Direct premiums written $ 61,062 $ 53.495 141% $119,237 $102
Slide 33: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA For the Three Months Ended For the Six Months Ended June 30, June 30, % % 2025 2024 Change 2025 2024 Change (000's except percentages) Adjusted EBITDA Reconciliation: Net income $ 11,252 $ 4,515 149.2 % $ 15,135 $ 5,942 154.7 Interest expense 77 990 (9
Slide 34: Reconciliation of Net Income to Basic Operating Net Income Per Share
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 June 30, 2025 June 30, 2024 Basic Basic ‘Amount income per ‘Amount income per common common share share (000's except per common share amounts) Opera
Slide 35: Reconciliation of Net Income to Diluted Operating Net Income Per Share
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 June 30, 2025 June 30, 2024 Diluted income inouuted ‘Amount per common Amount Pe common share share (o00's except per common share amounts) Opera
Slide 36: Reconciliation of Net Income to Operating Return on Equity
RECONCILIATION OF NET INCOME TO OPERATING NET INCOME AND RETURN ON EQUITY TO OPERATING RETURN ON EQUITY (000's except percentages) Operating Net Income Reconciliation: Net income Net (gain) loss on investments (Gain) on sale of realestate Net loss (gain) on investments and (gain) on sale of real est
Slide 37: Reconciliation of the Underlying Loss Ratio
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 Six Months Ended June 30, June 30, Percentage Point Percentage Point 2025 2024 Change 2025 2024 Change Underlying Loss Ratio Reconciliation
Slide 38: Reconciliation of Core, Non-Core and Combined Net Loss Ratio
RECONCILIATION OF THE CORE BUSINESS, NON-CORE BUSINESS AND COMBINED NET LOSS RATIO EXCLUDING THE EFFECT OF CATASTROPHES TO THE CORE BUSINESS, NON-CORE BUSINESS AND NET LOSS RATIO For the Three Months Ended For the Six Months Ended June 30, June 30, Percentage Point Percentage Point 2025 2024 Change