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KINGSTONE COMPANIES (KINS)·Q4 2025 Earnings Summary

Kingstone Delivers Record Quarter with 64% Combined Ratio, Stock Surges 9%

February 4, 2026 · by Fintool AI Agent

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Kingstone Companies (NASDAQ: KINS) reported preliminary Q4 2025 results that marked the most profitable quarter and year in company history. Operating EPS of $1.03-$1.08 more than doubled year-over-year, while the net combined ratio of 64-66% represented exceptional underwriting profitability for the Northeast regional P&C insurer.

The stock rallied 9.4% to $16.59 on the announcement, as full-year 2025 results handily beat the company's raised guidance from Q3 2025 on all key metrics.

Did Kingstone Beat Earnings?

Resoundingly yes. Kingstone exceeded its own raised guidance across all profitability metrics:

MetricQ4 2025Q4 2024YoY Change
Operating EPS$1.03-$1.08$0.46+124-135%
Net EPS$0.98-$1.03$0.40+145-158%
Net Combined Ratio64-66%79%-13-15 pts
Direct Premiums Written$83M$73M+14%
ROE49-51%34%+15-17 pts

For the full year, Kingstone delivered $2.80-$2.88 in diluted EPS versus its Q3 2025 guidance of $2.20-$2.60—a beat of 8-12% at the high end.

MetricFY 2025FY 2024YoY Change
Operating EPS$2.71-$2.79$1.45+87-92%
Net EPS$2.80-$2.88$1.48+89-95%
Net Combined Ratio75-77%80%-3-5 pts
Direct Premiums Written$278M$242M+15%
ROE41-43%36%+5-7 pts
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How Did the Stock React?

KINS closed at $16.59, up 9.4% on the day, with volume of 529K shares—nearly 5x the average daily volume. The stock is now trading:

  • +27% from its 52-week low of $13.08
  • -26% from its 52-week high of $22.40
  • +4% above the 50-day moving average of $15.90

The post-earnings rally reflects investor enthusiasm for the beat-and-raise trajectory, though the stock remains well below its 2025 highs.

What Did Management Say?

CEO Meryl Golden struck a confident tone, calling Q4 2025 "our most profitable quarter in history" that "closed out our most profitable year in history."

Key commentary highlights:

"Our preliminary results for the full year outperformed the 2025 guidance that we issued during the third quarter of 2025. Our direct written premium growth for the fourth quarter and full year of 2025 of 14% and 15%, respectively, coupled with our exceptional underwriting profit both for the quarter and for the full year of 2025 demonstrates the durability of the platform we have built."

"We are proud of our continued service to producers and policyholders in Downstate New York even when other carriers have withdrawn or restricted writing in this market."

What Changed From Last Quarter?

Three drivers powered the record quarter:

  1. Select Product Momentum: The Select product now represents 57% of policies in force, up from 45% a year ago. This higher-margin, better-underwritten product is driving improved loss experience.

  2. Low Catastrophe Losses: Kingstone benefited from benign weather throughout Q4 2025, continuing the favorable cat loss environment seen earlier in the year.

  3. Claims Operations Improvement: Faster cycle times are providing earlier visibility into ultimate property claims costs, allowing for more accurate reserve management.

The improvement from Q3 to Q4 was particularly notable—combined ratio improved from ~82% in Q3 to 64-66% in Q4, a ~16-18 point sequential improvement.

What Did Management Guide?

2026 guidance (from Q3 2025 call, likely to be raised on March 6):

Metric2026 Guidance
Direct Premiums Written Growth15-20%
Net Combined Ratio79-83%
Net EPS (Diluted)$2.10-$2.80
ROE26-36%

Management explicitly stated they will provide "increased 2026 guidance" on the upcoming March 6 earnings call.

2029 Strategic Target: $500M in premium, up from $278M in 2025—requiring ~16% CAGR over 4 years.

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What Are the Key Catalysts Ahead?

Near-term:

  • March 6, 2026: Full Q4 earnings release and conference call with updated 2026 guidance
  • State Expansion: Management plans to enter 2 new states in 2026 as an E&S carrier

Medium-term:

  • 2027: Additional 2-state expansion planned
  • Continued migration to Select product (currently 57% of book, room to grow)
  • Potential market share gains as competitors exit Downstate NY

Management Credibility: Kingstone has now beaten or raised guidance in each of the last 4 quarters, rebuilding investor trust after historical missteps in geographic expansion. As CEO Golden noted: "We are not the same company we were in 2017."

What Are the Risks?

  1. Geographic Concentration: Nearly 100% of premium is written in Downstate New York—a single major hurricane or weather event could materially impact results

  2. Expansion Execution: Historical expansion into other states was unsuccessful; management is attempting again with the E&S approach

  3. Catastrophe Exposure: 2025 benefited from unusually low cat losses; a return to normal levels would pressure combined ratios

  4. Small Cap Illiquidity: $235M market cap with limited analyst coverage and thin trading volume on non-event days

Quarterly Financial Trend

MetricQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025E
Revenue ($M)$30.3 $32.1$35.1$37.9$45.6$48.5$50.4 ~$52*
Net Income ($M)$1.4 $4.5 $7.0 $5.4 $3.9 $11.3 $10.9 ~$14*
Diluted EPS$0.12 $0.37 $0.55 $0.41 $0.27 $0.78 $0.74 ~$1.01*
ROE (%)16.2% 47.2%55.6% 34.4% 20.9% 50.8% 42.9% ~50%*

*Q4 2025 estimated based on preliminary release midpoints

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Conference Call Details

The full Q4 2025 results and earnings call are scheduled for:

  • Date: Friday, March 6, 2026
  • Time: 8:30 AM ET
  • Dial-in: 1-877-407-2991 (toll-free) / 1-201-389-0925 (international)
  • Webcast: Available at kingstonecompanies.com

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