Kingstone Announces FY2026 Guidance

Rhea-AI Summary

Kingstone Companies (NASDAQ:KINS), a Northeast property and casualty insurance company, has released its financial guidance for FY2026 and additional guidance for FY2025. The company expects direct premiums written growth of 15-20% in 2026, with net premiums earned of $233 million and a net combined ratio of 79-83%.

For FY2026, Kingstone projects basic EPS of $2.15-$2.85 and return on equity of 26-36%. The company plans to expand beyond New York State in 2026, targeting two new markets as part of its 5-year goal to reach $500 million in written premium. The expansion will be funded through operational cash flow, with potential support from quota share reinsurance partners if needed.

Positive

• Projected premium growth of 15-20% for FY2026
• Strong net combined ratio guidance of 79-83% indicating operational efficiency
• Healthy projected ROE range of 26-36% for FY2026
• Expansion plans into two new markets in 2026
• Growth initiatives to be funded through operational cash flow without external capital needs

Negative

• Slight projected dilution with total shares outstanding increasing from 14.8M to 14.9M
• Expected decrease in ROE from 30-38% in 2025 to 26-36% in 2026
• Guidance assumes no major catastrophe events, indicating potential weather-related risks
• Non-Core operations represent less than 5% of business, showing high geographic concentration risk

Insights

Insurance Industry Financial Analyst

Kingstone projects strong FY2026 growth with 15-20% premium growth and 79-83% combined ratio, showing exceptional profitability potential.

Kingstone's guidance for fiscal 2026 reveals a company with impressive growth momentum and exceptional profitability metrics. The projected 15-20% growth in direct premiums written for 2026 significantly outpaces the industry average of 4-6% and demonstrates strong market position. More remarkably, the guided net combined ratio of 79-83% is substantially better than the industry average of 95-100%, indicating Kingstone has achieved operational excellence in underwriting and claims management.

The projected return on equity of 26-36% for 2026 is extraordinary in the insurance sector, where 10-12% is typically considered strong performance. This suggests Kingstone's business model and risk selection are producing superior returns while maintaining appropriate leverage. The net income per share guidance of $2.10-$2.80 (diluted) reflects continued strong earnings potential.

The company's planned geographic expansion beyond its New York core business represents a strategic diversification that should reduce concentration risk while creating new growth avenues. Management's confidence in funding this expansion through operational cash flow speaks to the company's capital efficiency. Their contingency plan to leverage quota share reinsurance partnerships for non-dilutive capital if needed demonstrates prudent financial planning.

While management notes results are weather-dependent, the guidance assumptions regarding catastrophe reinsurance costs suggest they anticipate some market improvements. The 5-year goal of $500 million in written premiums implies continued strong compound growth of approximately 15% annually, which appears ambitious but achievable given their recent performance trajectory.

KINGSTON, NEW YORK / ACCESS Newswire / September 24, 2025 / Kingstone Companies, Inc. (NASDAQ:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today announced financial guidance for fiscal year 2026 and additional guidance for fiscal year 2025, as follows:

Guidance Metrics	2025E	2026E
Direct premiums written growth	12% to 17%	15% to 20%
Core Business1 direct premiums written growth	15% to 20%	NA2
Net premiums earned	$187 million	$233 million
Net combined ratio	79% to 83%	79% to 83%
Net income per share - basic	$2.10 to $2.50	$2.15 to $2.85
Net income per share - diluted	$1.95 to $2.35	$2.10 to $2.80
Return on equity	30% to 38%	26% to 36%

¹Kingstone refers to New York business as its "Core" business and business outside of New York as its "Non-Core" business.

²Beginning with the period ending September 30, 2025, the Company will no longer be reporting Core operating results vs. non-Core operating results as non-Core operations currently represent an immaterial portion of the Company's overall business and are anticipated to represent less than 5% of the Company's business in FY2026.

Other Considerations: (1) The Company is providing additional guidance on direct premiums written growth for 2025 to further support investors' ability to assess financial performance. (2) The Company's results are inherently weather dependent, and guidance assumes no major catastrophe events. For FY2026, the outlook assumes a moderate reduction in costs for catastrophe reinsurance for the 2026/2027 treaty year relative to the prior year period. Additionally, FY2026 projections do not give effect to any gains or losses from the Company's investment portfolio. For additional details, please refer to the 'Disclaimer and Forward-Looking Statements' section at the bottom of this press release.

The following reflects the anticipated impact of dilution on total shares outstanding, which is incorporated into the respective financial guidance metrics outlined above:

Common Stock Metrics	2025E	2026E
(shares in millions)
Weighted average shares outstanding - basic	13.9	14.4
Weighted average shares outstanding - diluted	14.6	14.7
Total shares outstanding as of end of period - basic	14.1	14.5
Total shares outstanding as of end of period - diluted	14.8	14.9

Meryl Golden, President and Chief Executive Officer of Kingstone, said, "Kingstone delivered exceptional results during the first half of the year and thus far in the third quarter, which positions us well to achieve our full year 2025 guidance. Looking ahead to FY2026, we are focused on sustaining this strong momentum, with confidence that we can once again achieve top tier growth and profitability.

"We look forward to launching our expansion outside of New York State in 2026, which we believe will, over time, reduce risk through geographic diversification and improve our growth potential. We intend to pursue a combination of organic initiatives and strategic inorganic opportunities in New York, along with thoughtful and disciplined expansion into two new markets in 2026 as we work towards our 5-year goal of half a billion dollars in written premium, growing an average of 15% per year.

"For 2026, we plan to fund our expansion initiatives entirely through cash generated from operations, which underscores the strength of our business. Should growth accelerate beyond our expectations and additional capital is needed, we intend to first look to our quota share reinsurance partners to provide efficient and non-dilutive capital.

"We remain highly optimistic about Kingstone's outlook for sustainable growth and profitability in 2026 and beyond. We are focused on maintaining our strong financial foundation and building value for our shareholders."

About Kingstone Companies, Inc.

Kingstone is a northeast regional property and casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Company ("KICO"). KICO is a New York domiciled carrier writing business through retail and wholesale agents and brokers. Kingstone delivers tailored homeowners insurance solutions through its sophisticated product suite, Select, supported by a scalable and efficient operating platform that enables the Company to pursue significant market opportunities and strategic expansion. In 2024, KICO was the 12th largest writer of homeowners insurance in New York and is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.

Investor Relations Contact:

Karin Daly
Vice President
The Equity Group Inc.
kdaly@theequitygroup.com

Disclaimer and Forward-Looking Statements

The guidance provided above is based on information available as of the date of this announcement and management's review of the anticipated financial results for 2025 and 2026. Such guidance remains subject to change based on management's ongoing review of the Company's financial results and is a forward-looking statement (see below). Kingstone assumes no obligation to update this guidance. The actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in Kingstone's annual and quarterly filings with the Securities and Exchange Commission.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. For more details on factors that could affect expectations, see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024.

The risks and uncertainties include, without limitation, the following:

• the risk of significant losses from catastrophes and severe weather events;

• risks related to the lack of a financial strength rating from A.M. Best;

• risks related to limitations on the ability of our insurance subsidiary to pay dividends to us;

• adverse capital, credit and financial market conditions;

• risks related to volatility in net investment income;

• the unavailability of reinsurance at current levels and prices;

• the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;

• the credit risk of our reinsurers;

• the inability to maintain the requisite amount of risk-based capital needed to grow our business;

• the effects of climate change on the frequency or severity of weather events and wildfires;

• risks related to the limited market area of our business;

• risks related to a concentration of business in a limited number of producers;

• legislative and regulatory changes, including changes in insurance laws and regulations and their application by our regulators;

• the effects of competition in our market areas;

• our reliance on certain key personnel;

• risks related to security breaches or other attacks involving our computer systems or those of our vendors; and

• our reliance on information technology and information systems.

Kingstone undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Kingstone Companies, Inc

View the original press release on ACCESS Newswire

FAQ

What is Kingstone's (KINS) earnings guidance for FY2026?

Kingstone projects basic EPS of $2.15-$2.85 and diluted EPS of $2.10-$2.80 for FY2026, with net premiums earned expected to reach $233 million.

What is Kingstone's (KINS) premium growth target for 2026?

Kingstone expects direct premiums written growth of 15-20% for FY2026, compared to 12-17% growth projected for 2025.

How will Kingstone (KINS) fund its 2026 expansion plans?

Kingstone plans to fund its expansion initiatives entirely through cash generated from operations, with potential support from quota share reinsurance partners if additional capital is needed.

What is Kingstone's (KINS) 5-year premium goal?

Kingstone aims to reach half a billion dollars in written premium, targeting an average growth rate of 15% per year.

What is Kingstone's (KINS) projected Return on Equity for 2026?

Kingstone projects a Return on Equity (ROE) range of 26-36% for FY2026, compared to 30-38% expected for 2025.

What new markets is Kingstone (KINS) planning to enter in 2026?

Kingstone plans to expand into two new markets outside of New York State in 2026 to reduce risk through geographic diversification, though specific markets were not disclosed.