from Kingstone Companies, Inc (NASDAQ:KINS)
Kingstone Reports Record Fourth Quarter and Full Year 2024 Results
Core DPW Growth of 31% andCombined Ratio of 80% for Full Year 2024; Raises 2025 Guidance
KINGSTON, NY / ACCESS Newswire / March 13, 2025 / Kingstone Companies, Inc. (Nasdaq:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today announced its financial results for the fourth quarter and full year ended December 31, 2024. The Company will hold its fourth quarter and full year 2024 financial results conference call on Friday, March 14, 2025, at 8:30 a.m. Eastern Time. With this release, the Company has provided an investor presentation that can be accessed through the Investor Relations/Events & Presentations section of the Company website (www.kingstonecompanies.com).
Key Financial and Operational Highlights | ||||||||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||||||
($ in thousands, except per share data) | December 31, | December 31, | ||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
Direct premiums written1 - Core Business2 | $ | 70,164 | $ | 47,027 | 49.2 | % | $ | 232,227 | $ | 176,692 | 31.4 | % | ||||||||
Net combined ratio | 78.5 | % | 89.5 | % | (11.0) pts | 80.0 | % | 105.3 | % | (25.3) pts | ||||||||||
Net Income/(Loss) | $ | 5,439 | $ | 2,946 | 84.6 | % | $ | 18,358 | $ | (6,168 | ) | NM | ||||||||
Net Income/(Loss) per share - basic | $ | 0.44 | $ | 0.27 | 63.0 | % | $ | 1.60 | $ | (0.57 | ) | NM | ||||||||
Net Income/(Loss) per share - diluted | $ | 0.40 | $ | 0.26 | 53.8 | % | $ | 1.48 | $ | (0.57 | ) | NM | ||||||||
Return on equity - annualized | 34.4 | % | 38.6 | % | (4.2) pts | 36.3 | % | (17.5 | )% | 53.8 pts | ||||||||||
Management Commentary
Meryl Golden, President and Chief Executive Officer of Kingstone, stated, "We ended the year with outstanding profitability and unprecedented growth in both the fourth quarter and full year 2024.
"Core business direct premiums written grew by 49% in the final three months due to market dislocation, leading to record annual growth of 31% for the full year. We remain committed to profitable growth by adhering to disciplined underwriting while delivering exceptional service to our producers and policyholders.
Ms. Golden continued, "From a profitability standpoint, we achieved our fifth consecutive quarter of profitability during the fourth quarter of 2024, with a combined ratio of 78.5%, an 11-percentage point improvement from the same period last year. While we experienced a moderate increase in large losses, as expected during the holiday season, our improvement was driven by lower frequency overall, no catastrophe losses, and a lower expense ratio.
"For the full year, our combined ratio improved remarkably by 25.3-percentage points to 80.0%. The loss ratio improvement was driven by lower frequency and severity, along with minimal impact from severe weather and catastrophe events. Even with bonuses to employees and profit sharing to producers due to our record profitability, we were able to lower our expense ratio by another 1.6 points to 31.3%."
Ms. Golden concluded, "Our continued success is rooted in disciplined execution, a commitment to operational excellence, and a deep understanding of market dynamics. 2024 was a pivotal year for Kingstone, with improvement in every dimension of our business, a testament to the commitment and tireless efforts of our dedicated teams.
We take great pride in the successful execution of our strategy and with favorable market conditions persisting, we are well-positioned to continue to capitalize on key opportunities. As we look ahead, we are committed to sustainable long-term profitability and value creation for our shareholders."
Guidance (see "Disclaimer and Forward-Looking Statements" below)
For 2025, the Company's full year expectations are calculated based on anticipated net premiums earned of approximately $184 million, and are as follows:
Guidance Metrics | 2025 - Current | 2025 - Previous | ||||
Core Business2 direct premiums written growth | 15% to 25% | 15% to 25% | ||||
Combined ratio | 81% to 85% | 82% to 86% | ||||
Net income per share - basic | $1.90 to $2.30 | $1.60 to $2.00 | ||||
Net income per share - diluted | $1.75 to $2.15 | $1.45 to $1.85 | ||||
Return on equity | 27% to 35% | 24% to 32% |
The following reflects the impact of dilution to total shares outstanding for the year ended December 31, 2024 and full year 2025 guidance:
Common Stock Metrics | Year Ended | 2025E | ||||||
(shares in millions) | December 31, 2024 | |||||||
Weighted average shares outstanding - basic | 11.5 | 13.3 | ||||||
Weighted average shares outstanding - diluted | 12.4 | 14.2 | ||||||
Total shares outstanding as of end of period - basic | 12.9 | 13.6 | ||||||
Total shares outstanding as of end of period - diluted | 14.1 | 14.7 | ||||||
All changes to total shares outstanding - basic and diluted assumed for 2025 are primarily from the vesting of restricted shares and stock issued under our "at the market" offering. | ||||||||
Consolidated Financial Results
Consolidated Financial Results | Quarters Ended | Years Ended | ||||||||||||||||||||||
($ in thousands, except per share data) | December 31, | December 31, | ||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||
Direct premiums written1 | $ | 72,533 | $ | 52,938 | 37.0 | % | $ | 241,980 | $ | 200,175 | 20.9 | % | ||||||||||||
Net premiums earned | $ | 35,967 | $ | 28,683 | 25.4 | % | $ | 128,498 | $ | 114,384 | 12.3 | % | ||||||||||||
Net investment income | $ | 1,906 | $ | 1,571 | 21.3 | % | $ | 6,824 | $ | 6,009 | 13.6 | % | ||||||||||||
Net (loss)/gain on investments | $ | (905 | ) | $ | 1,537 | NM | $ | 415 | $ | 2,135 | (80.6 | )% | ||||||||||||
Underlying loss ratio1 | 49.1 | % | 53.8 | % | (4.7) pts | 48.2 | % | 65.3 | % | (17.1) pts | ||||||||||||||
Net development of prior year losses | (0.4 | )% | 0.0 | % | (0.4) pts | (1.4 | )% | 0.0 | % | (1.4) pts | ||||||||||||||
Net loss ratio excluding the effect of catastrophes1 | 48.7 | % | 53.8 | % | (5.1) pts | 46.8 | % | 65.3 | % | (18.5) pts | ||||||||||||||
Catastrophe loss ratio1 | 0.0 | % | 3.0 | % | (3.0) pts | 1.9 | % | 7.1 | % | (5.2) pts | ||||||||||||||
Net loss ratio | 48.7 | % | 56.8 | % | (8.1) pts | 48.7 | % | 72.4 | % | (23.7) pts | ||||||||||||||
Net underwriting expense ratio | 29.8 | % | 32.7 | % | (2.9) pts | 31.3 | % | 32.9 | % | (1.6) pts | ||||||||||||||
Net combined ratio | 78.5 | % | 89.5 | % | (11.0) pts | 80.0 | % | 105.3 | % | (25.3) pts | ||||||||||||||
Adjusted EBITDA1 | $ | 9,303 | $ | 4,201 | 121.4 | % | $ | 30,516 | $ | (1,692 | ) | NM | ||||||||||||
Net Income/(Loss) | $ | 5,439 | $ | 2,946 | 84.6 | % | $ | 18,358 | $ | (6,168 | ) | NM | ||||||||||||
Net Income/(Loss) per share - basic | $ | 0.44 | $ | 0.27 | < | |||||||||||||||||||