Kingstone's Net Income Soars 101% on Strong Premium Growth

Ticker: KINS · Form: 10-Q · Filed: Nov 12, 2025 · CIK: 33992

Sentiment: bullish

Topics: Insurance, Financial Performance, Earnings Growth, Debt Reduction, New York Market, Property & Casualty, Underwriting Profit

Related Tickers: KINS

TL;DR

**KINS is crushing it, doubling net income and slashing debt – time to buy!**

AI Summary

KINGSTONE COMPANIES, INC. (KINS) reported a significant increase in net income for both the three and nine months ended September 30, 2025. Net income for the three months rose to $10,872,475 from $6,978,145 in the prior year, a 55.8% increase. For the nine months, net income more than doubled to $26,007,467 from $12,919,761, representing a 101.3% jump. Total revenues also saw substantial growth, reaching $55,652,490 for the quarter, up from $40,771,728 (36.5% increase), and $158,446,044 for the nine months, compared to $113,039,020 (40.2% increase) in 2024. Key drivers included a 43.5% increase in net premiums earned to $47,925,053 for the quarter and a 48.8% increase to $137,663,376 for the nine months. The company also realized a significant gain of $1,965,989 from the sale of real estate during the nine-month period. Total assets increased to $428,590,242 from $374,915,843 at December 31, 2024, while total liabilities grew to $320,937,200 from $308,207,392. Stockholders' equity saw a robust increase to $107,653,042 from $66,708,451, primarily due to retained earnings and a decrease in accumulated other comprehensive loss. Debt, net, significantly decreased to $4,752,684 from $11,171,420 at year-end 2024.

Why It Matters

This strong performance, particularly the doubling of net income and substantial premium growth, signals a positive trajectory for Kingstone Companies, Inc. Investors should note the significant increase in stockholders' equity and the reduction in debt, which could improve financial stability and future returns. For employees and customers, the company's robust financial health suggests stability and continued operations, especially as KICO remains a major homeowners insurer in New York. In a competitive insurance market, Kingstone's ability to grow revenues and profits while reducing debt could enhance its market position and attract further investment, potentially leading to increased dividends or share buybacks.

Risk Assessment

Risk Level: medium — While KINS shows strong financial performance, 98.1% of its direct written premiums for the nine months ended September 30, 2025, came from New York policies. This geographic concentration exposes the company to significant regulatory and catastrophic event risks specific to New York, as detailed in Note 1, which could materially affect future results despite current gains.

Analyst Insight

Investors should consider KINS's strong financial performance, particularly the 101.3% increase in nine-month net income and significant debt reduction. However, given the high geographic concentration in New York, a diversified portfolio approach is prudent to mitigate state-specific risks.

Financial Highlights

debt To Equity
0.04
revenue
$158,446,044
operating Margin
N/A
total Assets
$428,590,242
total Debt
$4,752,684
net Income
$26,007,467
eps
$1.88
gross Margin
N/A
cash Position
$26,772,302
revenue Growth
+40.2%

Revenue Breakdown

SegmentRevenueGrowth
Net Premiums Earned$137,663,376+48.8%
Total Revenues$158,446,044+40.2%
Realized Gain on Sale of Real Estate$1,965,989N/A

Key Numbers

Key Players & Entities

FAQ

What were Kingstone Companies' net premiums earned for the nine months ended September 30, 2025?

Kingstone Companies reported net premiums earned of $137,663,376 for the nine months ended September 30, 2025. This represents a significant increase from $92,530,708 for the same period in 2024.

How did Kingstone Companies' net income change for the three months ended September 30, 2025?

For the three months ended September 30, 2025, Kingstone Companies' net income increased to $10,872,475, up from $6,978,145 in the prior year. This marks a 55.8% increase.

What was the total stockholders' equity for Kingstone Companies as of September 30, 2025?

As of September 30, 2025, Kingstone Companies' total stockholders' equity stood at $107,653,042. This is a substantial increase from $66,708,451 reported at December 31, 2024.

What percentage of Kingstone Insurance Company's direct written premiums came from New York policies?

For the nine months ended September 30, 2025, 98.1% of Kingstone Insurance Company's direct written premiums originated from New York policies. This highlights a high geographic concentration in the state.

Did Kingstone Companies have any significant gains from asset sales during the nine months ended September 30, 2025?

Yes, Kingstone Companies reported a realized gain on the sale of real estate amounting to $1,965,989 for the nine months ended September 30, 2025. This contributed to their total revenues.

How much debt, net, did Kingstone Companies have as of September 30, 2025?

As of September 30, 2025, Kingstone Companies' debt, net, was $4,752,684. This represents a significant reduction from $11,171,420 at December 31, 2024.

What were the basic earnings per common share for Kingstone Companies for the nine months ended September 30, 2025?

Kingstone Companies reported basic earnings per common share of $1.88 for the nine months ended September 30, 2025. This is an increase from $1.16 for the same period in 2024.

What was the change in cash and cash equivalents for Kingstone Companies during the nine months ended September 30, 2025?

Kingstone Companies experienced a decrease in cash and cash equivalents of $1,897,139 for the nine months ended September 30, 2025, ending the period with $26,772,302.

What is Kingstone Companies' primary business and where does it operate?

Kingstone Companies, Inc. operates primarily through its wholly-owned subsidiary, Kingstone Insurance Company (KICO), which writes personal lines and commercial auto insurance. KICO's main market is New York, accounting for over 98% of its direct written premiums, and it is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.

How did total revenues for Kingstone Companies change for the nine months ended September 30, 2025?

Total revenues for Kingstone Companies increased to $158,446,044 for the nine months ended September 30, 2025, from $113,039,020 in the prior year. This represents a 40.2% increase, driven largely by higher net premiums earned.

Risk Factors

Industry Context

The property and casualty insurance industry is highly competitive and subject to cyclicality driven by economic conditions and catastrophe events. Insurers face ongoing challenges related to pricing, underwriting discipline, and investment management. Regulatory oversight is stringent across all jurisdictions, with a particular focus on solvency and consumer protection.

Regulatory Implications

Kingstone's operations are heavily influenced by New York's insurance regulatory framework due to its high geographic concentration. Any adverse changes in New York's insurance laws or regulations could disproportionately affect the company. Compliance with solvency requirements and capital adequacy ratios remains a critical focus for regulators.

What Investors Should Do

  1. Monitor geographic concentration risk
  2. Analyze the sustainability of revenue and profit growth
  3. Evaluate investment portfolio performance
  4. Assess reserve adequacy

Key Dates

Glossary

Net Premiums Earned
The portion of insurance premiums that relates to the coverage provided during a specific period. It's a key measure of an insurer's core revenue. (Represents the primary revenue driver for Kingstone, showing substantial growth.)
Loss and loss adjustment expense reserves
Funds set aside by an insurance company to cover claims that have occurred but have not yet been paid, including the costs associated with settling those claims. (A significant liability for Kingstone, impacting profitability and financial stability.)
Unearned Premiums
Premiums received by an insurer for coverage that has not yet been provided. This represents a liability until the coverage period expires. (Indicates future revenue that is already collected but not yet earned.)
Deferred Policy Acquisition Costs
Costs incurred in acquiring new insurance policies (e.g., commissions, underwriting expenses) that are capitalized and amortized over the expected life of the policy. (Represents capitalized costs that will be expensed over time, affecting profitability.)
Accumulated other comprehensive loss
A component of equity that includes unrealized gains and losses on certain investments and other items not included in net income. (Its decrease contributed positively to the increase in total stockholders' equity.)
Debt, net
The total amount of debt owed by the company, net of any debt that is due within one year. (Significant reduction indicates improved financial leverage and reduced interest expense.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Kingstone Companies, Inc. has demonstrated robust financial performance. Total revenues increased by 40.2% to $158.45 million, while net income more than doubled, surging by 101.3% to $26.01 million. This strong growth is underpinned by a 48.8% increase in net premiums earned. The company has also significantly improved its balance sheet by reducing net debt by over 57% and substantially increasing total stockholders' equity, reflecting enhanced financial health and reduced leverage.

Filing Stats: 4,575 words · 18 min read · ~15 pages · Grade level 19.1 · Accepted 2025-11-12 13:10:43

Key Financial Figures

Filing Documents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 4 Item 1 —

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets at September 30, 2025 (Unaudited) and December 31, 2024 5 Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) for the three months and nine months ended September 30, 2025 and 2024 6 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) for the three months and nine months ended September 30, 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2025 and 2024 11 Notes to Condensed Consolidated Financial Statements (Unaudited) 12 Item 2 —

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 3 —

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 78 Item 4 —

Controls and Procedures

Controls and Procedures 78

— OTHER INFORMATION

PART II — OTHER INFORMATION 80 Item 1 —

Legal Proceedings

Legal Proceedings 80 Item 1A —

Risk Factors

Risk Factors 80 Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds 80 Item 3 — Defaults Upon Senior Securities 80 Item 4 — Mine Safety Disclosures 80 Item 5 — Other Information 80 Item 6 — Exhibits 81

Signatures

Signatures 82 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report contains forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The events described in forwardlooking statements contained in this Quarterly Report may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated results or other consequences of our plans or strategies, projected or anticipated results from acquisitions to be made by us, or projections involving anticipated revenues, earnings, costs or other aspects of our operating results. The words "may," "will," "expect," "believe," "anticipate," "project," "plan," "intend," "estimate," and "continue," and their opposites and similar expressions are intended to identify forwardlooking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Factors which may cause actual results and outcomes to differ materially from those contained in the forward-looking statements include, but are not limited to, the risks and uncertainties discussed in Part I, Item 1A ("Risk Factors") of our Annual Report on Form 10-K for the year ended December 31, 2024, Part I, Item 2 of this Quarterly Report and Part II, Item 1A of this Quarterly Report. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forwardlooking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forwardlooking statements. We undertake no obligation to publicly update or revise any forwardlooking statements, whether from new information, future events or otherwise except as req

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . 4 Table of Contents KINGSTONE COMPANIES, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets September 30, 2025 December 31, 2024 (unaudited) Assets Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $ 5,174,675 at September 30, 2025 and $ 5,959,265 at December 31, 2024) $ 6,043,708 $ 7,047,342 Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $ 261,180,534 at September 30, 2025 and $ 202,308,158 at December 31, 2024) 252,640,428 186,893,438 Equity securities, at fair value (cost of $ 13,546,654 at September 30, 2025 and $ 13,527,554 at December 31, 2024) 10,409,833 10,296,505 Other investments 4,889,148 4,380,656 Total investments 273,983,117 208,617,941 Cash and cash equivalents 26,772,302 28,669,441 Premiums receivable, net of allowance for credit losses of $ 477,154 at September 30, 2025, 2025 and $ 402,290 at December 31, 2024 18,252,649 21,766,988 Reinsurance receivables, net 60,019,060 69,322,436 Prepaid reinsurance 2,142,329 — Deferred policy acquisition costs 25,377,781 24,732,371 Intangible assets 500,000 500,000 Property and equipment, net 7,861,007 9,283,970 Deferred income taxes, net 4,138,144 5,597,920 Other assets 9,543,853 6,424,776 Total assets $ 428,590,242 $ 374,915,843 Liabilities Loss and loss adjustment expense reserves $ 141,194,246 $ 126,210,428 Unearned premiums 140,041,140 134,701,733 Advance premiums 7,711,957 3,503,063 Reinsurance balances payable 5,690,029 10,509,121 Deferred ceding commission revenue 7,562,417 11,541,239 Accounts payable, accrued expenses and other liabilities 12,152,437 10,570,388 Income taxes payable 1,832,290 — Debt, net (current $ 1,278,094 and long-term $ 3,474,590 at September 30, 2025, current $ 6,849,257 and long-term $ 4,322,163 at December 31, 2024) 4,752,684 11,171,420 Total liabilities 320,937,200 308,207,392 Commitments and Contingencies (Note 11) $ — $ — Stockholders' E

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