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1. Company Snapshot

1.a. Company Description

Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to individuals in New York.The company offers personal line of insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies.It also provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products.


It sells its products through retail and wholesale agents and brokers.The company was formerly known as DCAP Group, Inc.and changed its name to Kingstone Companies, Inc.


in July 2009.Kingstone Companies, Inc.was founded in 1886 and is headquartered in Kingston, New York.

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1.b. Last Insights on KINS

Kingstone Companies' recent performance faces challenges due to increased competition and market uncertainty. Despite achieving its highest quarterly net income, concerns arise from rising costs and potential impacts on profitability. The company's reinsurance program expansion, though beneficial for growth, may strain margins. Additionally, while a reinstatement of quarterly cash dividends reflects a strong financial position, it may not suffice to offset potential risks. With a focus on personal lines and digital tools, Kingstone aims to drive regional growth. (Source: recent earnings release and news articles)

1.c. Company Highlights

2. Kingstone Companies Delivers Strong Q3 2025 Results

Kingstone Companies reported a robust third quarter 2025, with net income reaching $10.9 million and diluted earnings per share (EPS) of $0.73, beating analyst estimates of $0.54. The company's GAAP combined ratio stood at 72.7%, indicating strong underwriting profitability, while the annualized return on equity (ROE) was an impressive 43%. Direct written premium grew by 14% year-over-year, driven by the success of the Select homeowners program, which now accounts for 54% of policies in force. The underlying loss ratio was 44.1%, up 4.9 percentage points from the prior year quarter, primarily due to higher claim severity.

Publication Date: Dec -02

📋 Highlights
  • Strong Q3 Earnings:: Net income rose to $10.9M, with diluted EPS at $0.74, and annualized ROE of 43%.
  • Revenue Growth:: Direct written premium increased 14%, and net investment income surged 52% year-over-year.
  • Product Shift Success:: Select homeowners program now 54% of policies, with 31% lower claim frequency compared to legacy products.
  • Loss Ratio Pressure:: Underlying loss ratio climbed 4.9 points to 44.1%, driven by higher claim severity.
  • Capital Strength:: Shareholders’ equity reached $107M (+80% YoY), with no debt and reinstated quarterly dividends.

Business Highlights

The Select homeowners program has shown significant improvements, with an inception-to-date claim frequency 31% lower than the legacy product, underscoring the effectiveness of Kingstone's strategic initiatives. Net investment income surged 52% year-over-year, contributing to the company's strong financial performance. The company's disciplined growth strategy and improved underwriting profitability have positioned it well for future growth.

Guidance Update

Kingstone updated its 2025 guidance, raising expectations for net combined ratio, EPS, and ROE, while reaffirming direct-written premium growth to range between 12% and 17%. The new guidance anticipates a GAAP net combined ratio between 78% and 82%, basic EPS between $2.30 and $2.70, and ROE between 35% and 39%. Analysts estimate revenue growth of 16.7% for the next year, indicating a positive outlook for the company's continued expansion.

Valuation and Capital Position

With a Price-to-Book Ratio of 0.0, it's challenging to assess the company's valuation relative to its book value. However, the Dividend Yield stands at 0.67%, and the ROE is an impressive 40.38%. Kingstone's strong capital position is highlighted by shareholders' equity exceeding $107 million, an 80% year-over-year increase, and the absence of debt. The company has reinstated its quarterly dividend, demonstrating its commitment to returning value to shareholders.

3. NewsRoom

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Kingstone: Seems Set Up For Further Gains, But Watch For The Trends

Dec -01

Source: seekingalpha.com

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Kingstone Companies, Inc. (KINS) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Kingstone Reports Third Quarter 2025 Results

Nov -06

Source: globenewswire.com

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51,969 Shares in Kingstone Companies, Inc $KINS Bought by Y Intercept Hong Kong Ltd

Nov -05

Source: defenseworld.net

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Kingstone Declares Quarterly Dividend

Oct -31

Source: accessnewswire.com

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Four Growth Stocks Powering The Fourth Industrial Revolution In 2025

Oct -28

Source: seekingalpha.com

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HRTG vs KINS: Which Regional P&C Insurance Stock Offers Better Return?

Oct -22

Source: zacks.com

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Kingstone Schedules Third Quarter 2025 Earnings Release and Conference Call

Oct -16

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.06%)

6. Segments

Personal Lines

Expected Growth: 7.4%

Kingstone Companies, Inc.'s Personal Lines segment growth of 7.4% is driven by increasing demand for homeowners and private passenger auto insurance, expansion into new territories, and strategic partnerships. Additionally, the company's focus on digital transformation, improved underwriting, and competitive pricing also contribute to the growth.

Livery Physical Damage

Expected Growth: 4.65%

Kingstone's Livery Physical Damage segment growth of 4.65% is driven by increasing demand for ride-hailing services, expansion of existing customer relationships, and strategic partnerships. Additionally, the company's focus on digitalization and claims processing efficiency has led to improved customer satisfaction, resulting in higher retention rates and premium growth.

Other

Expected Growth: 7.4%

Kingstone Companies, Inc.'s 7.4% growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation and operational efficiency has led to improved underwriting capabilities and reduced costs, contributing to its growth momentum.

7. Detailed Products

Personal Lines Insurance

Kingstone Companies, Inc. offers personal lines insurance products, including homeowners, dwelling fire, and personal umbrella insurance, designed to protect individuals and families from unforeseen events.

Commercial Lines Insurance

Kingstone Companies, Inc. provides commercial lines insurance products, including business owners, commercial auto, and workers' compensation insurance, designed to protect businesses from various risks.

Livery Insurance

Kingstone Companies, Inc. offers livery insurance products, designed to protect livery and taxi services from various risks, including accidents, injuries, and property damage.

New York State-Only Insurance Products

Kingstone Companies, Inc. offers a range of insurance products specifically designed for the New York State market, including personal and commercial lines insurance products.

8. Kingstone Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Kingstone Companies, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Kingstone Companies, Inc. is high due to the concentration of buyers and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Kingstone Companies, Inc. is low due to the availability of multiple suppliers and the lack of concentration in the supply market.

Threat Of New Entrants

The threat of new entrants for Kingstone Companies, Inc. is medium due to the moderate barriers to entry and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry for Kingstone Companies, Inc. is high due to the high level of competition and the presence of multiple players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 100.37%
Debt Cost 3.95%
Equity Weight -0.37%
Equity Cost 7.06%
WACC 3.93%
Leverage -27346.35%

11. Quality Control: Kingstone Companies, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Kingstone

A-Score: 6.0/10

Value: 7.7

Growth: 6.4

Quality: 9.0

Yield: 1.0

Momentum: 9.5

Volatility: 2.7

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Value: 7.5

Growth: 4.9

Quality: 5.8

Yield: 6.0

Momentum: 3.5

Volatility: 4.3

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ProAssurance

A-Score: 5.2/10

Value: 6.1

Growth: 2.9

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

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Hagerty

A-Score: 5.1/10

Value: 3.0

Growth: 8.4

Quality: 6.6

Yield: 0.0

Momentum: 7.0

Volatility: 5.3

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Donegal

A-Score: 5.0/10

Value: 8.9

Growth: 4.1

Quality: 3.5

Yield: 7.0

Momentum: 4.0

Volatility: 2.3

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NI Holdings

A-Score: 4.0/10

Value: 4.5

Growth: 4.1

Quality: 5.0

Yield: 0.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.77$

Current Price

14.77$

Potential

-0.00%

Expected Cash-Flows