Kingstone Companies, Inc.

What they do

The company writes property and casualty insurance through wholly-owned Kingstone Insurance Company (KICO), a New York-domiciled carrier, primarily personal lines (homeowners, dwelling fire, cooperative/condominium, renters, personal umbrella) and livery physical damage for for-hire vehicles. It also writes canine legal liability and participates in mandatory state joint underwriting associations. KICO is licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire and Maine, but New York accounted for 98.0% of 2025 and 98.6% of first-half 2026 direct premiums written. A separate subsidiary, Cosi Agency, Inc., is a licensed general agency placing policies and retaining the spread between commission revenue and commission expense.

Revenue drivers

• Personal lines — Largest line of business; homeowners, dwelling fire, cooperative/condominium, renters and personal umbrella policies, with New York homeowners making KICO the 11th largest writer in the state in 2025 per the 10-Q.
• Livery physical damage — For-hire vehicle physical damage policies for livery and car service vehicles and taxicabs; covers physical damage only, with no liability coverage.
• Net investment income — Interest and dividends from a portfolio of cash, short-term investments, fixed-maturity and equity securities; management reported 49% growth in net investment income in Q2 2026 on a larger portfolio and higher yields.
• Cosi Agency commission spread — Cosi receives commission revenue from KICO for policies it places and pays commissions to agencies, retaining the net spread; Cosi became licensed in California in April 2026.

Recent performance

For Q2 2026, net premiums earned rose 30.8% to $60.5 million and direct premiums written grew 18.7% to $72.5 million, with net income of $15.5 million and diluted EPS of $1.05, which management called the most profitable quarter in company history. The Q2 net combined ratio improved to 70.2% from 71.5%, helped by a negative 0.8% catastrophe loss ratio and favorable prior-year reserve development. First-half 2026 net income fell 36.2% to $9.7 million (diluted EPS $0.66) versus $15.1 million in the prior-year period, as the six-month catastrophe loss ratio rose to 12.0% from 1.2%. Full-year 2025 revenue was $214.9 million with net income of $40.8 million and diluted EPS of $2.88.

Strategy

Management is expanding beyond New York: KICO began writing homeowners coverage in California on a non-admitted basis in June 2026, Cosi became licensed in California in April 2026, and Kingstone America Insurance Company was licensed in Connecticut on May 1, 2026 with policies expected to begin in the second half of 2026. The company grew catastrophe reinsurance coverage, with management stating the completed placement raised total coverage to $500 million and added wildfire protection while reducing the risk-adjusted cost of core catastrophe excess-of-loss coverage by more than 15%. It also returned capital by reinstating and then raising the quarterly dividend 20% to $0.06 per share, and announced a share repurchase authorization during Q2 2026. Management reaffirmed full-year 2026 guidance originally issued March 5, 2026.

Risks

• New York concentration — 98.0% of 2025 and 98.6% of first-half 2026 direct premiums written came from New York policies, so results are exposed to a single state's weather, regulation and competitive conditions.
• Catastrophe exposure — The six-month 2026 catastrophe loss ratio rose to 12.0% from 1.2%, and the company relies on catastrophe reinsurance with retention levels that leave it exposed to large or frequent events.
• Reserve adequacy — Q2 2026 results included favorable prior-year reserve development, and the company noted that expired commercial liability policies still represented approximately 9.3% of loss and LAE reserves net of reinsurance recoverables as of June 30, 2026.
• Expansion execution — The California excess and surplus lines launch, the new Connecticut carrier KAIC, and the AmGuard renewal-rights business all involve new states and distribution partners with limited operating history.

Outlook

Management reaffirmed 2026 guidance of 16% to 20% direct premiums written growth, a net combined ratio of 81% to 86%, an underlying combined ratio of 74% to 76%, a catastrophe loss ratio of 7% to 10%, diluted net income per share of $2.20 to $2.90, and return on equity of 24% to 30%. The outlook assumes no prior-year reserve development. The company also expects to continue expanding in California and to begin writing Connecticut policies through KAIC in the second half of 2026.