Kingstone Q2 net income up 149%, raises 2025 EPS guidance

Overview

• Kingstone Q2 net income rises 149.2% yr/yr, achieving record quarterly profit

• Co raises 2025 EPS guidance, reflecting strong operational performance

• Kingstone sets 5-year goal to reach $500 mln in premium, doubling company size

Outlook

• Kingstone sees 2025 Core Business direct premiums written growth of 15% to 20%

• Company expects 2025 net combined ratio of up 79% to 83%

• Kingstone projects 2025 diluted EPS of $1.95 to $2.35

• Company aims for $500 mln premium in five years

Result Drivers

• PREMIUM GROWTH - Core direct premiums written rose 17% due to favorable market conditions and competitive landscape

• EARNED PREMIUMS - Net earned premiums increased over 52%, driven by reduced quota share and new business from 2024

• LOSS RATIO IMPROVEMENT - Net combined ratio improved by 6.7 points due to lower catastrophe losses

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Kingstone Companies Inc is $22.00, about 30.1% above its August 6 closing price of $15.38

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nACSJlMsPa