Kingstone Companies (KINS) Q3 2025 earnings summary

Executive summary

• Achieved eighth consecutive profitable quarter in Q3 2025 with net income of $10.9 million, diluted EPS of $0.74, and annualized ROE of 42.9%, supported by disciplined underwriting and expense management.

• Direct written premium grew 14% year-over-year to $75.8 million, driven by a 13% average premium increase, improved retention, and market share gains from competitor exits.

• Select homeowners program now represents 54% of policies in force, with claim frequency 31% lower than legacy products and all new business since 2022 written in Select.

• Net earned premium growth exceeded 40% for the third consecutive quarter, fueled by reduced quota share and prior new business surge.

• Benefited from competitor withdrawals in New York, capturing significant new business and premium growth.

Financial highlights

• Net income for Q3 2025 was $10.9 million, up 55.8% year-over-year; year-to-date net income reached $26 million, more than double the prior year.

• Diluted EPS for the quarter was $0.74; annualized ROE reached 43%.

• Net investment income rose 52% to $2.5 million for the quarter and 39% year-to-date to $6.8 million, with an average yield of 4.03%.

• Net combined ratio was 72.7% for Q3 2025, with underlying loss ratio at 44.1% and net underwriting expense ratio reduced by 4.6 pts to 28.4%.

• Catastrophe losses were minimal, contributing only 0.2 points to the loss ratio versus 1.7 points last year.

Outlook and guidance

• Raised 2025 guidance: direct premiums written growth 12–17%, net combined ratio 78–82%, basic EPS $2.30–$2.70, diluted EPS $2.20–$2.60, ROE 35–39%.

• Fiscal 2026 guidance: direct premiums written growth 15–20%, net combined ratio 79–83%, basic EPS $2.15–$2.85, ROE 26–36%.

• Strategic expansion into new states planned for 2026 and 2027, targeting $500 million direct premiums written by 2029.

• Improved combined ratio guidance by 100 basis points, EPS by 9–12%, and ROE by 300 basis points at midpoint versus prior guidance.

• Fiscal 2026 guidance assumes normal seasonality and catastrophe activity, with updates to be provided in March.