Kingstone Companies delivered the strongest quarter and year in its 140-year history, posting Q4 diluted EPS of $1.03 (operating EPS of $1.08) on total revenue of $56.4M and full-year net income of $40.8M (+122% YoY). The stock rallied 9.4% on the preliminary announcement in February and was trading around $16.22 as of March 5, 2026, following the final results release.
About Kingstone Companies
Kingstone Companies, Inc. (Nasdaq: KINS) is a Northeast regional property and casualty (P&C) insurance holding company headquartered in Kingston, New York. Founded in 1886, the company operates through its principal subsidiary, Kingstone Insurance Company (“KICO”), which underwrites homeowners, dwelling fire, cooperative/condominium, renters, personal umbrella, commercial auto, and canine legal liability policies. Kingstone was formerly known as DCAP Group, Inc. and changed its name in July 2009.
KICO was the 12th largest writer of homeowners insurance in New York in 2024, distributing products through independent retail and wholesale agents and brokers. The company is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine and plans to enter California in Q2 2026.
As of March 2026, Kingstone carries a market capitalization of approximately $224-233 million, trades at a P/E ratio of roughly 5.6-7.4x and offers a dividend yield of ~1.27% ($0.20/year). The company has approximately 99 employees and maintains a conservative balance sheet with minimal debt ($4.4M).
Top Financial Highlights
- Total revenue for Q4 2025 reached $56.42 million, reflecting a 34.0% increase from $42.10 million in Q4 2024, driven by strong underwriting activity.
- Net premiums earned in Q4 totaled $49.46 million, rising 37.5% year-over-year, indicating sustained growth in insurance coverage volumes.
- Direct premiums written in Q4 amounted to $82.75 million, up 14.1% compared with the same period in the prior year.
- Net income for Q4 was $14.76 million, representing a 171.4% increase from $5.44 million recorded in Q4 2024.
- Diluted EPS in Q4 reached $1.03, up 157.5% from $0.40 in the previous year period.
- Operating EPS in Q4 was $1.08, reflecting a 134.8% increase from $0.46 a year earlier.
- Net combined ratio improved to 64.2%, representing a 14.3 point improvement from 78.5%, demonstrating stronger underwriting profitability.
- Annualized return on equity (ROE) for Q4 reached 51.3%, up 16.9 percentage points from 34.4% in the prior year quarter.
- Full-year net income totaled $40.77 million, increasing 122.1% from $18.36 million in the previous year.
- Full-year revenue reached $214.87 million, representing 38.5% year-over-year growth.
- Full-year diluted EPS was $2.88, up 94.6% from $1.48, reflecting significant earnings expansion.
- Book value per share increased to $8.28, rising 75.2% from $4.73, highlighting strong balance sheet growth.
- Adjusted EBITDA for the full year totaled $54.05 million, up 77.1% from $30.52 million in the prior year.
- Cash on hand stood at $12.18 million, compared with $28.67 million previously, primarily due to higher allocations toward the investment portfolio.
- Total debt declined to $4.44 million from $11.17 million, indicating a nearly debt-free financial position.
Beat or Miss?
| Metric | Reported (Q4 2025) | Prior Quarter (Q3 2025) Consensus Est. | Difference |
| Diluted EPS | $1.03 | ~$0.65 (Q3 est. reference) | Beat – significantly above trend |
| Total Revenue (Q4) | $56.42M | N/A (no formal Q4 consensus) | +34% YoY |
| Net Combined Ratio | 64.20% | Preliminary 64–66% | Confirmed at best end of range |
| FY Diluted EPS | $2.88 | Raised guidance: $2.20–$2.60 | Beat by 11-31% |
| FY Net Combined Ratio | 75.00% | Preliminary 75–77% | Confirmed at best end of range |
Kingstone has consistently beaten estimates across recent quarters – Q3 2025 EPS of $0.73 beat the $0.65 estimate, Q2 2025 EPS of $0.75 beat the $0.55 estimate, and Q4 2024 EPS of $0.46 beat the $0.42 estimate.
What Leadership Is Saying?
CEO – Meryl Golden, President and Chief Executive Officer: “We delivered record results for the fourth quarter and the full year, confirming the preliminary results we reported in February and marking our ninth consecutive quarter of profitability. From year-end 2023 to year-end 2025, we have grown direct premiums written by 39% while improving our combined ratio by 30 points. These results are structural, not simply weather-driven, and they validate the transformation we have executed.”
Historical Performance
Q4 2025 vs. Q4 2024
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Revenue | $56.42M | $42.10M | 34.00% |
| Net Premiums Earned | $49.46M | $35.97M | 37.50% |
| Direct Premiums Written | $82.75M | $72.53M | 14.10% |
| Net Income | $14.76M | $5.44M | 171.40% |
| Diluted EPS | $1.03 | $0.40 | 157.50% |
| Net Combined Ratio | 64.20% | 78.50% | -14.3 pts |
| Net Loss Ratio | 36.30% | 48.70% | -12.4 pts |
| Expense Ratio | 27.90% | 29.80% | -1.9 pts |
| Adjusted EBITDA | $20.34M | $9.30M | 118.70% |
| ROE (annualized) | 51.30% | 34.40% | +16.9 pts |
Full-Year 2025 vs. Full-Year 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Total Revenue | $214.87M | $155.14M | 38.50% |
| Net Premiums Earned | $187.13M | $128.50M | 45.60% |
| Direct Premiums Written | $277.80M | $241.98M | 14.80% |
| Net Income | $40.77M | $18.36M | 122.10% |
| Diluted EPS | $2.88 | $1.48 | 94.60% |
| Net Combined Ratio | 75.00% | 80.00% | -5.0 pts |
| Adjusted EBITDA | $54.05M | $30.52M | 77.10% |
| ROE | 43.00% | 36.30% | +6.7 pts |
| Book Value/Share | $8.28 | $4.73 | 75.20% |
Competitor Comparison
| Metric | KINS (Kingstone) | HCI (HCI Group) | UVE (Universal Insurance) | HRTG (Heritage Insurance) |
| Q4 2025 Revenue | $56.4M | $246.2M | $407.9M | TBD (est. >$200M) |
| Q4 2025 Diluted EPS | $1.03 | $7.25 | $2.17 (adj.) | >$2.00 (prelim.) |
| Q4 Net Combined Ratio | 64.2% | ~57% (gross loss 15.6%) | 87.5% | Est. ~73% |
| FY 2025 Net Income | $40.8M | $320M | $182.9M | Est. >$140M |
| FY 2025 ROE | 43.0% | N/A (very high) | ~50.9% (Q4 ann.) | >45% (est.) |
| Q4 EPS YoY Growth | +157.5% | +3,052% ($7.25 vs $0.23) | +768% ($2.17 vs $0.25) | +203% (est.) |
| Primary Market | Northeast (NY-focused) | Florida | Florida + multi-state | Multi-state (FL-heavy) |
All four regional P&C carriers posted outsized earnings growth in Q4, driven primarily by a light catastrophe quarter. HCI Group’s massive YoY surge reflects the prior-year comparison against Hurricane Milton losses. Kingstone’s 64.2% combined ratio was among the best in the sector, though its smaller scale means absolute earnings remain modest versus larger Florida-focused peers.
Balance Sheet Snapshot
| Item | 31-Dec-25 | 31-Dec-24 | Change |
| Total Assets | $453.4M | $374.9M | +$78.5M |
| Total Investments | $309.7M | $208.6M | +$101.1M |
| Cash & Equivalents | $12.2M | $28.7M | -$16.5M |
| Loss Reserves | $140.5M | $126.2M | +$14.3M |
| Unearned Premiums | $154.0M | $134.7M | +$19.3M |
| Total Debt | $4.4M | $11.2M | -$6.8M |
| Total Stockholders’ Equity | $122.7M | $66.7M | +$56.0M |
The significant growth in total investments (+$101M) reflects aggressive deployment of increasing premium cash flows into the fixed-income portfolio. The near-elimination of debt ($4.4M remaining, down 60%) strengthens the capital structure, while the 84% increase in stockholders’ equity positions the company well for growth into new markets.
Fiscal Year 2026 Guidance
Kingstone updated its 2026 outlook alongside the Q4 results, reflecting continued growth ambitions tempered by more conservative catastrophe assumptions:
| Guidance Metric | 2026 Estimate | 2025 Actual |
| Direct Premiums Written Growth | 16%–20% | 14.80% |
| Net Combined Ratio | 81%–86% | 75.00% |
| Underlying Combined Ratio | 74%–76% | 74.40% |
| Catastrophe Loss Ratio | 7%–10% | 1.20% |
| Diluted EPS | $2.20–$2.90 | $2.88 |
| ROE | 24%–30% | 43.00% |
| Illustrative EPS at 2025 CAT ratio | ~$3.53 | – |
The 2026 net combined ratio guidance of 81-86% appears notably higher than 2025’s 75.0%, but this is primarily due to the assumed catastrophe loss ratio of 7-10% versus 2025’s anomalously low 1.2%. The company’s six-year historical average cat loss ratio is 7.1%. The underlying combined ratio guidance of 74-76% is essentially flat with 2025’s 74.4%, indicating sustained core underwriting profitability.
Each 1 point of catastrophe loss ratio is estimated to impact pre-tax earnings by approximately $2.5 million (~$0.13/share after tax). Key modeling assumptions include illustrative net premiums earned of ~$252 million, a 21% effective tax rate, and 14.8 million weighted average diluted shares.
How the Market Reacted?
Kingstone’s stock has shown significant volatility around its earnings trajectory. When preliminary Q4/FY 2025 results were announced on February 3, 2026, KINS surged 9.4% to $16.59 on volume of 529,000 shares – nearly 5x the average daily trading volume. The stock was trading at approximately $16.22 as of the March 5 close (the day the final results were released), and opened the March 6 session in the range of $15.75–$17.00.
The muted reaction to the final March 5 release – compared to the February pop – suggests the market had already priced in the strong results from the preliminary announcement. KINS remains 27% above its 52-week low of $13.08 but still trades 26% below its 52-week high of $22.40. Morningstar assigns a fair value estimate of $46.49 to KINS, suggesting significant upside potential, though with a “High” uncertainty rating. Seeking Alpha analysis has also flagged a “60%+ upside potential” for the stock given its high-ROE turnaround.
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