Kingstone Announces Resignation of Chief Financial Officer; Reiterates Guidance for Full Year 2025

Rhea-AI Summary

Kingstone Companies (NASDAQ:KINS) announced the resignation of CFO Jennifer Gravelle, effective April 18, 2025. Victor Brodsky, current Chief Accounting Officer and former CFO (2009-2020), will temporarily assume CFO duties alongside CEO Meryl Golden while an executive search is conducted.

The company reaffirmed its 2025 financial guidance, projecting:

• Net premiums earned of approximately $184 million
• Core Business direct premiums written growth of 15% to 25%
• Combined ratio of 81% to 85%
• Basic net income per share of $1.90 to $2.30
• Return on equity of 27% to 35%

The company expects weighted average shares outstanding for 2025 to be 13.3 million basic and 14.2 million diluted, with total shares outstanding reaching 13.6 million basic and 14.7 million diluted by year-end.

Positive

• Strong projected growth with 15-25% increase in Core Business direct premiums written
• Healthy combined ratio forecast of 81-85%
• High projected return on equity of 27-35%
• Seamless transition plan with experienced former CFO Victor Brodsky stepping in

Negative

• Unexpected departure of CFO Jennifer Gravelle
• Temporary leadership structure in finance department pending permanent CFO appointment
• Potential dilution from increase in outstanding shares

KINGSTON, NY / ACCESS Newswire / April 1, 2025 / Kingstone Companies, Inc. (NASDAQ:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today announced that Jennifer Gravelle has resigned from her position as Chief Financial Officer effective April 18, 2025 to pursue other opportunities. The Company also reiterated its guidance for full year 2025.

Ms. Gravelle will continue to serve as Chief Financial Officer until her departure on April 18, 2025, to support an orderly transition of responsibilities. Victor Brodsky, the Company's Chief Accounting Officer, along with Meryl Golden, President and Chief Executive Officer, will assume the responsibilities of Chief Financial Officer upon Ms. Gravelle's departure. Mr. Brodsky has been serving as the Company's Chief Accounting Officer since May 1, 2024, and previously served as the Company's Chief Financial Officer (2009-2020), Treasurer (2013-2020), and Chief Accounting Officer (2007-2009). He also served in various executive capacities with the Company's wholly-owned subsidiary, Kingstone Insurance Company, and as a consultant to the Company in connection with the operation of, among other areas, the accounting department (2020-2024).

The Company has engaged an executive search firm to conduct the process to identify a full-time successor for the Chief Financial Officer role. Ms. Gravelle's decision was unrelated to any differences regarding the Company's operations, policies, or financial practices.

Meryl Golden, President and Chief Executive Officer, stated, "On behalf of the entire leadership team, I would like to thank Jennifer for her contributions to the Company over the last two years. We wish her all the best in her future endeavors. We are also grateful that Victor has agreed to assume some additional responsibilities until a new Chief Financial Officer is hired. We believe that his long and varied history with Kingstone will help ensure a seamless transition. We remain confident in our continued growth and financial stability, with a strong leadership team in place to guide us."

Kingstone's strategic direction and financial guidance remain firmly on track, as outlined on March 13, 2025. For 2025, the Company's full year expectations are calculated based on anticipated net premiums earned of approximately $184 million, and are as follows:

Guidance Metrics	2025E
Core Business1 direct premiums written2 growth	15% to 25%
Combined ratio	81% to 85%
Net income per share - basic	$1.90 to $2.30
Net income per share - diluted	$1.75 to $2.15
Return on equity	27% to 35%

The following reflects the impact of dilution to total shares outstanding, primarily from vesting of restricted shares, for full year 2025 guidance:

Common Stock Metrics (shares in millions)	2025E
Weighted average shares outstanding - basic	13.3
Weighted average shares outstanding - diluted	14.2
Total shares outstanding as of end of period - basic	13.6
Total shares outstanding as of end of period - diluted	14.7

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

² This measure is not based on GAAP. Direct premiums written represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums earned, the GAAP measure most comparable to direct premiums written, are net premiums written (i.e. direct premiums written less premiums ceded to reinsurers) that are pro-rata earned during the fiscal period presented. Direct premiums written are not a substitute for net premiums earned, and do not reflect the Company's net premiums earned.

Disclaimer and Forward-Looking Statements

The guidance provided above is based on information available as of April 1, 2025 and management's review of the anticipated financial results for 2025. Such guidance remains subject to change based on management's ongoing review of the Company's 2025 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;

• limitations with regard to our ability to pay dividends;

• 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.

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. KICO is actively writing personal lines and commercial auto insurance in New York, and in 2024 was the 12^th largest writer of homeowners insurance in New York. KICO 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@equityny.com

SOURCE: Kingstone Companies, Inc

View the original press release on ACCESS Newswire

FAQ

When will Jennifer Gravelle leave her position as CFO of Kingstone (KINS)?

Jennifer Gravelle will leave her position as CFO of Kingstone on April 18, 2025.

What is Kingstone's (KINS) projected combined ratio for 2025?

Kingstone projects a combined ratio of 81% to 85% for 2025.

What is the expected net premium earned for Kingstone (KINS) in 2025?

Kingstone expects net premiums earned of approximately $184 million for 2025.

What is Kingstone's (KINS) projected return on equity for 2025?

Kingstone projects a return on equity of 27% to 35% for 2025.

Who will assume CFO responsibilities at Kingstone (KINS) after Jennifer Gravelle's departure?

Victor Brodsky (Chief Accounting Officer) and Meryl Golden (CEO) will temporarily assume CFO responsibilities while an executive search is conducted.