Aug 6, 2026, 4:19 PM ETFinancial Services

Kingstone Companies, Inc. — Second Quarter 2026 Earnings Summary

KINSKINGSTONE COMPANIES INC

Financial Performance

Net income for Q2 2026 was $15.47 million, a 37.5% increase year-over-year from $11.25 million in Q2 2025.
Diluted net income per share was $1.05 in Q2 2026, up 34.6% from $0.78 in Q2 2025.
Net premiums earned reached $60.47 million in Q2 2026, representing a 30.8% increase from $46.22 million in Q2 2025.
Direct premiums written grew 18.7% to $72.49 million in Q2 2026, compared to $61.06 million in Q2 2025.
GAAP net combined ratio improved to 70.2% in Q2 2026 from 71.5% in Q2 2025.
Net loss ratio was 39.6% in Q2 2026 versus 38.8% in Q2 2025.
Net underwriting expense ratio improved to 30.6% in Q2 2026 from 32.7% in Q2 2025.
Catastrophe loss ratio was negative 0.8% in Q2 2026, compared to 0.6% in Q2 2025.
Net investment income increased 49.1% to $3.43 million in Q2 2026 from $2.30 million in Q2 2025.
Annualized return on equity was 50.8% in Q2 2026.
Book value per share (diluted) increased 34.9% to $8.69 at the end of Q2 2026 from $6.44 in Q2 2025.
Adjusted EBITDA for Q2 2026 was $20.74 million, a 40.3% increase from $14.78 million in Q2 2025.
Total assets were $477.93 million as of June 30, 2026, compared to $453.43 million as of December 31, 2025.
Total liabilities were $348.77 million as of June 30, 2026, compared to $330.69 million as of December 31, 2025.
Debt, net, decreased to $3.80 million as of June 30, 2026, from $4.44 million as of December 31, 2025.

The Company reaffirmed its full-year 2026 guidance issued on March 5, 2026, and affirmed on May 7, 2026.
2026 Direct premiums written growth is expected to be between 16% and 20%.
2026 Net combined ratio is projected to be between 81% and 86%.
2026 Underlying combined ratio (excluding catastrophe losses and prior-year reserve development) is estimated at 74% to 76%.
2026 Prior-year reserve development is estimated at 0%.
2026 Catastrophe loss ratio is estimated between 7% and 10%, reflecting elevated winter storm activity in Q1 2026 and a six-year historical average of 7.1%.
2026 Diluted net income per share guidance is $2.20 to $2.90.
2026 Return on equity is projected to be between 24% and 30%.
Key modeling assumptions for 2026 include an effective tax rate of 21% and weighted average diluted shares outstanding of 14.8 million.

Growth in direct premiums written was led by continued strength in New York personal lines.
Net premiums earned growth was driven by the earning of premiums from the Company's reduced quota share.
The Company writes homeowners insurance in New York and California on a non-admitted basis.
Kingstone was the 11th largest writer of homeowners insurance in New York in 2025.
Policies in force reached 84,570 at the end of Q2 2026, a 9.9% increase from 76,925 in Q2 2025.

The Company operates as a regional property and casualty insurance holding company.
The 2026 catastrophe loss ratio guidance of 7% to 10% is at or above the Company's six-year historical average.
The Company notes risks related to competition in its market areas and the effects of climate change on the frequency or severity of weather events and wildfires.

Risks include significant losses from catastrophes and severe weather events.
The Company lacks a financial strength rating from A.M. Best.
There are risks related to the unavailability of reinsurance at current levels and prices.
The Company faces exposure to greater net insurance losses in the event of reduced reliance on reinsurance.
Risks include volatility in net investment income and adverse capital, credit, and financial market conditions.
The Company is exposed to credit risk from its reinsurers.
There is a risk regarding the inability to maintain the requisite amount of risk-based capital needed to grow the business.
The Company faces risks related to a concentration of business in a limited number of producers and a limited market area.
Legislative and regulatory changes, including insurance laws and regulations, pose potential risks.
The Company relies on certain key personnel and information technology systems.
Uncertainty exists regarding the geographic diversification strategy in entering the California market and other markets.

Meryl Golden, President and CEO, described Q2 2026 as the "most profitable quarter in Kingstone's history."
Management highlighted a record net income of $15.5 million and a 35% year-over-year increase in diluted book value per share.
Management noted that the 39.6% net loss ratio included favorable prior-year reserve development and a negative catastrophe loss ratio, as favorable development on the first-quarter catastrophe estimate exceeded second-quarter catastrophe losses.
The underwriting expense ratio improvement to 30.6% was attributed to the operating leverage of the Company's scalable platform.
Management expressed confidence in the Company's trajectory and commitment to delivering long-term value to shareholders.
Management stated that the strong capital position supports profitable growth and disciplined capital returns.

The Company completed a catastrophe reinsurance placement increasing total coverage to $500 million.
The new reinsurance placement added wildfire protection and maintained low first-event retentions.
The risk-adjusted cost of core catastrophe excess of loss coverage was reduced by more than 15%.
The Company announced a share repurchase authorization during the quarter.
The Company increased its quarterly dividend by 20% to $0.06 per share, one year after reinstating the dividend.
Net gains (losses) on investments were a gain of $240,345 in Q2 2026, compared to a gain of $546,451 in Q2 2025.
There was no gain on sale of real estate in Q2 2026, compared to $1.97 million in Q2 2025.
Accumulated other comprehensive loss was $(8.52) million as of June 30, 2026, compared to $(6.08) million as of December 31, 2025.
Loss and loss adjustment expense reserves increased to $167.48 million as of June 30, 2026, from $140.54 million as of December 31, 2025.
Cash and cash equivalents were $16.92 million as of June 30, 2026, compared to $12.18 million as of December 31, 2025.
Total investments increased to $334.06 million as of June 30, 2026, from $309.69 million as of December 31, 2025.