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    KINGSTONE COMPANIES (KINS)

    KINS Q4 2024: Reaffirms 15%-25% Core Premium Growth Outlook for 2025

    Reported on Aug 12, 2025 (After Market Close)
    Pre-Earnings Price$16.63Last close (Mar 14, 2025)
    Post-Earnings Price$16.63Last close (Mar 14, 2025)
    Price Change
    $0.00(0.00%)
    • Strong Core Growth Outlook: The management reaffirmed 15%-25% core premium growth in 2025, driven by increased new business counts and higher average premiums despite competitors’ exit and challenging market conditions.
    • Geographic Expansion Opportunities: Executives highlighted planned expansion beyond Downstate New York, including target regions like New England, by leveraging market research on catastrophe-exposed states, which could broaden revenue streams.
    • Operational Efficiency and Improved Retention: The focus on maintaining low expenses, disciplined underwriting, and moderate rate changes is expected to enhance profitability and retention rates, further supporting a bullish outlook.
    • Dependence on transient market conditions: The guidance for 2025 is partly based on the competitive displacement from Adirondack and Mountain Valley. With that tailwind fading out, sustaining core business growth could be challenging.
    • Risks and uncertainties in geographic expansion: Plans to expand beyond Downstate New York into new regions (e.g., New England) may expose the company to regulatory, underwriting, and market risks that can impact performance.
    • Reliance on maintaining competitive pricing and cost control: Expectations for improved retention and lower expense ratios suggest that even modest deviations in rate adjustments or cost management could adversely affect margins.
    1. Growth Outlook
      Q: Where will 2025 growth come from?
      A: Management explained that despite losing competitors like Adirondack and Mountain Valley, hard market conditions in Downstate New York and robust new business counts will drive core premium growth.

    2. Guidance Details
      Q: Why is guidance accelerating now?
      A: They noted that sequential premium gains, a lower quota share, and reduced interest expense—thanks to debt elimination—support a 15%-25% core growth target.

    3. Expense Control
      Q: What is your expense ratio goal?
      A: Management aims to trim the expense ratio by one point, leveraging high new premium earnings and relentless cost discipline.

    4. Expansion Strategy
      Q: Where are you planning to expand?
      A: They plan to carefully broaden their geographic footprint beyond Downstate New York into New England and other states, pursuing opportunities in regions with strong capacity needs.

    5. Book Yield
      Q: What is the current book yield?
      A: The firm reported a book yield of 3.86%, reflecting the steady performance of their investment portfolio.

    6. New Business Sources
      Q: Who is providing the new business?
      A: Management indicated that the new business originates from a consistent mix of producers, with a familiar underwriting profile and no significant shifts in incumbent carriers.

    7. Weather Impact
      Q: How is first quarter weather affecting results?
      A: They observed a colder, snowier winter compared to last year but confirmed that no material catastrophic events have impacted the quarter, keeping weather concerns limited.

    Research analysts covering KINGSTONE COMPANIES.