Thu, May 15, 7:56 PM (28 days ago)
### Summary of Kingstone Companies, Inc. (KINS) Q1 2025 Financial Performance **Overview:** Kingstone Companies, Inc. (KINS) reported its financial results for the quarter ended March 31, 2025. The company operates through its wholly-owned subsidiary, Kingstone Insurance Company (KICO), focusing on property and casualty insurance products. KICO is primarily active in New York, with additional licenses in several other states. **Financial Highlights:** - **Revenue:** - **Net Premiums Earned:** $43,523,063, up 51.0% from $28,819,902 in Q1 2024. - **Ceding Commission Revenue:** $2,958,691, down 35.2% from $4,567,111 in Q1 2024. - **Net Investment Income:** $2,048,596, up 36.3% from $1,502,860 in Q1 2024. - **Net (Losses) Gains on Investments:** $(137,979), compared to $726,391 in Q1 2024. - **Gain on Sale of Real Estate:** $1,965,989, a new item in Q1 2025. - **Total Revenues:** $50,498,775, up 41.2% from $35,765,177 in Q1 2024. - **Expenses:** - **Loss and Loss Adjustment Expenses:** $27,175,078, up 52.2% from $17,859,587 in Q1 2024. - **Commission Expense:** $9,312,880, up 18.6% from $7,851,812 in Q1 2024. - **Other Underwriting Expenses:** $7,405,422, up 25.9% from $5,880,605 in Q1 2024. - **Other Operating Expenses:** $1,035,737, up 33.2% from $778,082 in Q1 2024. - **Depreciation and Amortization:** $623,863, up 4.5% from $596,513 in Q1 2024. - **Interest Expense:** $227,454, down 77.2% from $993,875 in Q1 2024. - **Total Expenses:** $45,780,434, up 34.8% from $33,960,474 in Q1 2024. - **Net Income:** $3,882,660, up 172.1% from $1,426,679 in Q1 2024. - **Earnings per Share (EPS):** Basic $0.29, Diluted $0.27, compared to Basic $0.13 and Diluted $0.12 in Q1 2024. **Key Metrics:** - **Net Loss Ratio:** 62.4%, up from 62.0% in Q1 2024. - **Net Underwriting Expense Ratio:** 31.3%, unchanged from Q1 2024. - **Net Combined Ratio:** 93.7%, up from 93.3% in Q1 2024. **Cash Flow:** - **Operating Activities:** $17,857,307, up from $6,098,220 in Q1 2024. - **Investing Activities:** $(11,844,067), compared to $(11,587,350) in Q1 2024. - **Financing Activities:** $2,807,501, up from $(288,568) in Q1 2024. - **Net Increase in Cash and Cash Equivalents:** $8,820,741, compared to $(5,777,698) in Q1 2024. **Investments:** - **Fixed-Maturity Securities:** Total fair value $204,282,369, with gross unrealized gains of $384,496 and losses of $(12,471,698). - **Equity Securities:** Total fair value $10,103,175, with gross unrealized losses of $(3,424,379). - **Other Investments:** Total fair value $4,437,733. **Outlook:** Kingstone's net premiums earned may be impacted by competitive market conditions, economic factors, and strategic underwriting changes. The company continues to focus on profitability over growth and has culled out risks that do not generate acceptable returns. The outlook includes potential impacts from inflation, interest rates, and financial market volatility. **Risks and Uncertainties:** The company faces risks related to economic conditions, competitive pressures, regulatory changes, and market volatility. Key risks include the impact of inflation on loss costs, interest rates affecting investment portfolio yields, and operational expenses influenced by economic conditions. **Conclusion:** Kingstone Companies, Inc. demonstrated strong financial performance in Q1 2025, with significant increases in revenue and net income. The company's strategic focus on profitability and risk management positions it well for future growth and stability. However, ongoing economic and market uncertainties require continued vigilance and adaptive strategies.