KINS

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Meryl Golden Vice President and Chief Financial Officer - Randy Patten Investor Relations representative - Stefan Norbom Operator: Good morning, and welcome to Kingstone Companies' Second Quarter 2026 Earnings Conference Call. As a reminder, today's conference is being recorded. I'll now turn the call over to your host, Stefan Norbom, Kingstone's Investor Relations representative. Stefan, you may begin. Stefan Norbom: Thank you, and good morning, everyone. Joining us today are President and Chief Executive Officer, Meryl Golden; and Vice President and Chief Financial Officer, Randy Patten. On behalf of the company, I would like to note that this conference call may contain forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results. Forward-looking statements speak only as of the date on which they are made, and Kingstone undertakes no obligation to update the information discussed. For more information, please refer to the section entitled Risk Factors in Part 1, Item 1A of the company's latest Form 10-K. Additionally, today's remarks may include references to non-GAAP measures. For definitions and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, please see the tables in our latest earnings release available at kingstonecompanies.com. With that, it is my pleasure to turn the call over to Meryl Golden. Meryl? Meryl Golden: Thanks, Stefan. Good morning, everyone, and thanks for joining our call. Kingstone delivered the most profitable quarter in our history. Net income reached a record $15.5 million. Net income per diluted share increased 35% to $1.05, and our GAAP net combined ratio improved 1.3 points to 70.2% that performance produced an annualized return on equity of 50.8%. Diluted book value per share reached $8.69, up 35% year-over-year, reflecting the value we are creating for shareholders. The earnings contribution was broad-based, driven by premium growth, underwriting profitability, operating efficiency and higher investment income. Turning to growth. Direct premiums written increased 19% to $72.5 million, led by continued strength in New York Personal lines. Relative to the prior year quarter, new business policy count increased 35%, retention improved by 2 percentage points and average renewal premium increased 8% Net premiums earned grew 31% to $60.5 million as prior period growth continued to earn in and our lower quota share session allowed us to retain more premium. While growth was robust this quarter, we are seeing signs of a softening market and an increasingly competitive environment. The pressure so far is most visible in the dwelling fire line. Demand across the broader franchise remains healthy as our new business and retention results show. Competition has entered and exited this market over time, while Kingstone's broad and long-standing producer relationships have supported our performance throughout market cycles. Select has proven effective at risk selection and matching rate to risk, which matters even more in this environment. We will not chase volume at the expense of underwriting discipline. As competition increases, New York growth will moderate from first half levels. Our 16% to 20% full year guidance growth outlook already reflects the likelihood of increased competition. Turning to underwriting. Attritional claim frequency remains very low overall, flat for non-weather water losses, our largest peril and up modestly from the prior year quarter for fire losses. Attritional severity for the non-weather water and fire perils combined increased, consistent with inflation and offset by the increase in average premium. Against an exceptionally strong prior year quarter, the underlying loss ratio was 4.4 points higher. Year-to-date, though, it's up only 0.2 points. The catastrophe loss ratio was negative as favorable development on first quarter catastrophe losses exceeded second quarter catastrophe losses. We also recognized $1.6 million or 2.7 points of favorable prior-year development. The Select product continues to perform well. On an exception-to-date basis, our Select homeowners claim frequency is more than 34% lower than our legacy product, while Select dwelling fire frequency is 19% lower. Select now represents 62% of our homeowner policies in force and 40% of our dwelling fire policies in force, extending our runway for continued mix improvement. Our expense ratio improved by 2.1 points to 30.6%, reflecting continued operating leverage as we scale. Underwriting expense dollars are growing more slowly than net earned premium. The net combined ratio for the quarter was 70.2%, down 1.3 points from the prior year quarter. Randy will provide a more detailed review of our financial results. We were pleased with our July 1 catastrophe reinsurance placement. We increased total catastrophe protection by 14% to $500 million, added wildfire protection and lowered the risk-adjusted cost of our core catastrophe excess of loss coverage by more than 15%. We also maintained low first event retention across all perils, including wildfire. This program is built for quarters unlike this one. It protects the balance sheet against adverse catastrophe scenarios, reduces earnings volatility and supports continued profitable growth. We entered California in the last week of the quarter through only a handful of agencies, so it's too early to draw conclusions from the initial activity. Our California business leader knows the market well and has strong producer relationships, which are helping us understand how conditions are evolving. We expected new carriers and MGAs to enter California on an E&S basis. What has changed is that admitted carriers are also beginning to selectively reopen for new business and competition is building faster than we anticipated. That's why we started small. We're using that early feedback to refine our approach before adding meaningful volume. Our E&S structure and platform allow us to remain nimble, adjusting pricing and appetite as market conditions evolve. We will scale only as the business meets our underwriting and return requirements. We are also on track to enter Connecticut on an admitted basis late in the third quarter. The Department of Insurance has been moving quickly on our filings, and we are preparing to begin writing business once our approvals are received. New York remains our primary growth and earnings engine. California and Connecticut are measured steps toward a more geographically diversified company and over time, a less concentrated catastrophe footprint. These initiatives support our goal of reaching $500 million direct premiums written by year-end 2029. We will pursue that goal at a pace consistent with our return requirements, reinsurance protection and capital capacity. Turning to our outlook. We are reaffirming all elements of our full year '26 guidance. We continue to expect direct premiums written growth of 16% to 20%, a GAAP net combined ratio of 81% to 86% and underlying combined ratio of 74% to 76% and a catastrophe loss ratio of 7% to 10%. The catastrophe range reflects the elevated winter storm activity in the first quarter. We also continue to expect diluted net income per share of $2.20 to $2.90 and return on equity of 24% to 30%. Our modeling assumptions continue to include an effective tax rate of 21% and weighted average diluted shares outstanding of 14.8 million. The operating drivers we control are on track. With the most active months of hurricane season ahead and competitive conditions evolving, we believe maintaining our current ranges is appropriate. We remain confident in our full year outlook. The second quarter demonstrates the earning power of the business we have built. Our New York franchise is growing. Our operating platform is converting that growth into earnings and our reinsurance and capital position support disciplined expansion. Our second half priorities are clear: grow New York while protecting rate adequacy, build California deliberately, launch Connecticut on schedule and continue translating profitable growth into earnings and book value per share. I remain confident in Kingstone's trajectory because the drivers are clear: disciplined pricing and risk selection, strong producer relationships, expense control and prudent capital management. I want to thank the entire Kingstone team for their execution and our select producers for their continued partnership. With that, I'll turn the call over to Randy for a more detailed review of our financial results. Randy? Randy Patten: Thank you, Meryl, and good morning again, everyone. From a net income and EPS standpoint, the second quarter was our most profitable quarter in company history with net income of $15.5 million and EPS of $1.05 per diluted share compared with $11.3 million or $0.78 per diluted share in the same quarter prior year. Operating net income increased 41% to $15.3 million and diluted operating net income per share was $1.04 in the second quarter of 2026 compared with $0.75 in the prior year quarter. Annualized GAAP return on equity was 50.8% during the second quarter of 2026. As a reminder, the second quarter is typically our most profitable quarter. Net premiums earned increased 31% to $60.5 million in the second quarter of 2026, primarily reflecting continued growth in direct premiums written, along with the reduced quota share session. Our New York quota share session is 5% for the 2026 treaty year, a decrease of 11 percentage points from 16% in the 2025 treaty year, allowing us to retain more premium and underwriting profit. Direct premiums written increased 19% to $72.5 million and policies in force increased 9.9% to 84,570. Net investment income increased 49% to $3.4 million in the second quarter of 2026 compared with the same quarter prior year, driven by an increase in invested assets and higher average yields that increased to 4.4%. Total investments were $334.1 million at June 30, up $24.4 million from year-end. Turning to underwriting. The GAAP net loss ratio was 39.6% compared with 38.8% in the prior year quarter. The catastrophe loss ratio was negative 0.8% compared with 0.6% in the prior year quarter. Favorable development on our first quarter 2026 catastrophe losses exceeded the low catastrophe losses experienced during the second quarter of 2026, reducing the negative ratio. Separately, we recognized 2.7 points of favorable prior year reserve development related to accident years before 2026. Excluding both CAT losses and favorable prior year reserve development, the underlying performance of the book was strong in the second quarter of 2026, with an underlying loss ratio of 43.1%. This compares with 38.7% underlying loss ratio in the second quarter of 2025 a quarter when the underlying performance of the book was also exceptionally strong. The net underwriting expense ratio improved 2.1 points to 30.6% as net premiums earned grew faster than our expense base. Together, the GAAP net combined ratio improved 1.3 points to 70.2%. The underlying combined ratio was 73.7% compared with 71.4% in the prior year quarter. The absolute level of profitability remains strong and the expense ratio improvement demonstrates the scalability of the business. For the first 6 months of 2026, direct premiums written increased 19% to $142.1 million and net premiums earned increased 30% to $116.3 million. Despite elevated winter loss -- winter catastrophe activity in the first quarter of 2026, costing about $14 million in losses, we generated net income of $9.7 million or $0.66 per diluted share and operating net income of $10.3 million or $0.70 per diluted share in the first half of 2026. The first half of 2026 GAAP net combined ratio was 90.2% compared with 82.3% in the prior year period and included 12 points of catastrophe losses compared with 1.2 points in the first half last year. The underlying combined ratio improved 1.3 points to 80.7% and the underwriting expense ratio improved 1.5 points to 30.5% in the first half of 2026 compared with the first half of 2025, reflecting the strength in the performance of the underlying book of business. At June 30, diluted book value per share was $8.69, up 35% from $6.44 a year ago. Diluted book value per share, excluding accumulated other comprehensive income, was $9.27, up 32% from $7.04 a year ago. With no holding company debt, our capital position continues to be strong, supporting both profitable expansion and measured shareholder returns. During the quarter, we repurchased approximately 19,500 shares at an average price of $14.98 per share under the program our Board authorized in May. Following quarter end, our Board increased the quarterly dividend by 20% to $0.06 per share just 1 year after reinstating it. We will continue to allocate capital to support our strategic growth plans while maximizing long-term shareholder value. With that, operator, we are ready for questions. Operator: [Operator Instructions] Our first question is from the line of Bob Farnam with Brean Capital. Robert Edward Farnam: I've got a couple of kind of quick questions and one kind of overlooking question. So the quick question, your expense ratio improved to 30.6%, and you're talking about how it's going to improve as the company scales. Do you have any idea of where that expense ratio could fall to when you get up to kind of full speed over the next few years? Meryl Golden: Sure. So we're thinking we could take about 1 point out of the expense ratio. So our interim goal is something like the 29%... Robert Edward Farnam: Okay. 29%. And when you're looking to write business, you need to have -- it has to meet your profitability expectations. What -- can you describe kind of what you're looking for when you are writing business, what your profitability targets are? Meryl Golden: Well, we're pricing for an 85% combined. So that's our profitability expectation. Speaker 4 85% combined is -- yes. Robert Edward Farnam: Okay. And I guess the more encompassing one is more competition. I know you offered quite a bit on competition. I kind of wanted to know the differences -- I'm assuming there's a difference between the California competition and the New York competition because California is mostly E&S, New York is admitted, but it sounds like admitted are getting into California as well. Are those admitted the same admitted that you face in New York? Or are they a different cohort of admitted trying to get into California at this point? Meryl Golden: Sure. So perhaps I -- it wasn't clear what I was saying. In California, the admitted carriers had stopped writing new business to a large extent over the past couple of years because of the regulatory environment. And so there has been a surge in volume on the E&S side. And certainly, we expected a lot of new carriers in the E&S space because we had heard about that. But what we had not anticipated in California was that the admitted carriers, the largest writers of homeowners in California to reopen for business. And we are starting to see that in the marketplace. So that is something we had not anticipated. The difference is in New York, the admitted carriers to a large -- the top 10 carriers to a large extent, avoid catastrophe-exposed property. So our competition are the companies that focus on catastrophe-exposed property. And in New York, there is like 1 E&S writer, but most of the companies -- actually maybe 2, most of the companies are admitted. In California, our competition is both now the admitted and the E&S carriers. Does that answer your question, Bob? Robert Edward Farnam: Yes. So the admitted carriers in California, you're talking the large companies like State Farm and Farmers and whatnot. Are they -- they're not avoiding getting into the catastrophe exposure? I know that the regulator was basically saying you should -- these companies have to write some high-risk policies to be able to write in the state. So they're not avoiding the wildfire exposed areas like they are avoiding the coastal areas in New York. Is that what you're saying? Is that... Meryl Golden: First of all, it's certainly not State Farm that I'm talking about. But what I'm like there is in California, something called the sustainable insurance plan and companies who file that they will write some more wildfire business, then they get access to forward-looking wildfire models and to include reinsurance in their pricing and other things. So we're still seeing that admitted carriers have a limited appetite, particularly for business that is exposed to wildfire, but we just had not anticipated that they would start writing business again because so many of them were very restrictive until recently. Robert Edward Farnam: Okay. All right. And you're talking about the growth moderating in New York in the second half of the year, you're talking about increased competition. Is that new competition? Or is that same kind of the similar thing you're getting companies that had been there [ back ] writing and now they're slowly but surely dipping their toe back into the water? Meryl Golden: Yes. I mean it's really both. So look, it's not a surprise. We all knew that the soft market is coming. But what we did see in July, we saw a tick down in our new business for dwelling fire. And from talking to agents, they're just talking more now about the softer market. So there have been a few new market entrants and existing competitors have loosened some of their guidelines. There is one company that is priced in a really irrational way. So we hope they figure that out sooner rather than later. But listen, I want to reiterate that Kingstone has an unique position in the downstate New York market. We have broad and deep distribution and those agencies have stuck with us through various market cycles. We have our select product that does a great job with risk selection and matching rate to risk, which is even more important in a soft market. We have low expenses. So I feel very confident we're going to continue to grow, but perhaps modestly slower than we have been. So again, it's just a different part of the cycle, and we'll do our best. Operator: The next question is from the line of Cam Bianchi with Piper Sandler. Cameron Bianchi: This is Cam on for Paul. Considering the expense ratio improvement you saw in the quarter, I'm wondering does the 30% quota share in the California book create any near-term expense ratio drag if that state ramps that would offset any New York-driven efficiency gains? As I know you mentioned about 29% is the target there. But just curious if that California book has any offset in there. Meryl Golden: So thanks for your question. So right now, California is such a small piece of the pie, like we're -- even by the end of this year, it's going to be way less than 5% of our total business. And the 30% quota share was really intended just for risk aversion. We wanted to make sure that we didn't have a material impact on our profitability. So to answer your question, it has 0, really like no impact on the expense ratio at all. Cameron Bianchi: Got it. Understood. And then I guess just looking forward a little bit once the California book ramps up a little bit and maybe just on the road to that, how are you guys prioritizing capital deployment between California and Connecticut expansion, increasing the dividend and opportunistic repurchases? Meryl Golden: Randy, I'll let you take that. Randy Patten: Sure. Yes. So our capital allocation really remains the same even entering California. And our priorities are, first, to fund that profitable growth, and we've rebuilt surplus here over the last couple of years. And then we're focused on growing that quarterly dividend. And in the past quarter, our Board did increase our dividend by 20% to $0.06 per share. And then third, looking at when the opportunities present themselves, we will repurchase shares, but really in that order. Operator: The next question is from the line of [ Greg Fortuner ], private investor. Unknown Attendee: Great number. It sounds like the market is getting a little soft. But when you did your -- when you figured your numbers earlier in the year, were you considering that? Or is that something that could affect what you're thinking going forward? Meryl Golden: Yes. So if you're talking about our guidance on growth in particular, we did anticipate a softer market in the second half of the year. So the range is 16% to 20%. And year-to-date, we're at 19%. So we'll have to see how it goes. But right now, we're comfortable reaffirming our guidance. Unknown Attendee: Okay. Is it wrong to think that assume -- aside from any catastrophes that might hit that this earnings is a new run rate for us? Or am I getting too far ahead of myself? Meryl Golden: Are you saying for Q2 or Q2... Unknown Attendee: Right. I'm just saying -- right. So is this -- I know the second quarter is always the best quarter. But that being said, if you go through the third quarter with no major storms and nothing out of the ordinary on the regular claims, should this be the run rate that we're expecting? Meryl Golden: Yes. So I would say that our underlying combined ratio, so if you take out CAT loss and the prior favorable prior year development, that is the run rate we're expecting. So in our guidance, we split it between the underlying, and which are all the things that we control, and that's a combined ratio of 74% to 76% and then the CAT loss. So yes, I would say that the run rate is consistent with the guidance that we put out in March. Unknown Attendee: Okay. I understand that, except I'll just press you a little bit more to say, if you make $1.05 this quarter and then you make $1.05 next quarter, you're basically at your low end. And then it's just the fourth quarter to see how much you beat it by. Is that I mean, so you're being pretty conservative. Is that fair or no? Meryl Golden: I mean, listen, we want our guidance to be accurate and durable. And while we feel very positive about our outlook, it is just the very beginning of the hurricane season. And Q3 is typically a quarter where we see sizable catastrophe losses. So it's just -- and then with the change in the competitive environment, I just thought it was most prudent to maintain our guidance until we had better visibility into the rest of the year. So I hope you're right, Greg. I hope we're at the very high end, and we can update guidance next quarter. Unknown Attendee: All right. Two more quick questions. So when you talk about the competition, obviously, it takes time for policies to roll off, people can't just leave mid-policy and write a new policy to someone else. So I mean, when will we see the effects of what might be some competition? Meryl Golden: Yes. So typically, in a soft market, look, we want to retain our renewals and consumers generally are much more price sensitive when on new business than they are on renewal business. So I think what we'll see -- what we're most likely to see is a decline in new business writings rather than any impact on the renewal rate, but time will tell. Like it really depends on how aggressive the competition is. Unknown Attendee: Okay. So you're expecting more of a moderation of new business versus our current book. Okay. Understand. Meryl Golden: Yes. Unknown Attendee: And then my last question. In the past, you've told us what our maximum loss would be in the case of like a Sandy or some major storm. Has that changed since we wrote the new reinsurance policy? Or is that similar to -- I think you had said like maybe $5 million-ish or somewhere around that number? Meryl Golden: Yes. So one of the -- we had this very successful placement this year, and we were able to retain our low first event retention across all perils. So our first event retention is $3.5 million for wildfire $4.75 million for named storm like a Sandy and then winter storm and severe convective storm is $6 million. And so in the past, we've talked about let's take if a storm like Sandy hit us today with our current footprint, it would cost us roughly $5 million, $4.7 million pretax, $4 million after tax and about $0.27 per diluted share. So it is certainly just an earnings event for Kingstone, not a capital event. So to your question, Greg, nothing has changed. We've maintained that same very conservative first event retention to protect our surplus. Unknown Attendee: I guess to think if you can only lose $0.27 in a major storm, that's pretty -- you sleep in that, I imagine. Meryl Golden: Absolutely. Operator: The next question is from the line of Gabriel McClure, Private Investor. Gabriel McClure: Congrats on another record quarter. So when you were talking about the policies in force growth, you threw a number out there. I just wanted to make sure I heard you right because on the press here, it said that there's a 9.9% growth. Could you repeat that again, please? Meryl Golden: I don't recall talking about policy in force growth. I said new business for the quarter was up 35%. Retention was up 2% and our average premium was up 8%. But we are really delighted that our policy in force growth was up almost 10% quarter-over-quarter. So you're right, what's in the press release is correct. Operator: [Operator Instructions] At this time, I'll turn the floor back to Meryl for closing comments. Meryl Golden: Terrific. Thank you so much for your interest in Kingstone, and thanks for joining us today. Have a wonderful day. Operator: This will conclude today's conference. Thank you for your participation. You may now disconnect your lines at this time. Before you buy stock in Kingstone Companies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kingstone Companies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered the most profitable quarter in company history, driven by a combination of robust premium growth, underwriting discipline, and increased investment income. Growth was primarily fueled by New York Personal lines, where new business policy count rose 35% and retention improved by 2 percentage points. Management noted signs of a softening market and increasing competition, particularly visible in the dwelling fire line, which may lead to moderated growth in New York. The 'Select' product continues to outperform legacy offerings, with claim frequencies 34% lower for homeowners and 19% lower for dwelling fire. Operational efficiency improved as the expense ratio fell to 30.6%, demonstrating the company's ability to scale net earned premiums faster than underwriting expenses. Successfully placed a July 1 catastrophe reinsurance program, increasing total protection to $500 million while reducing risk-adjusted costs by over 15%. Reaffirmed full-year 2026 guidance, including direct premiums written growth of 16% to 20% and a GAAP net combined ratio of 81% to 86%. Expansion into California is being managed deliberately with a small initial footprint to refine pricing and appetite as admitted carriers unexpectedly reopen for business. Connecticut launch remains on track for late third quarter 2026 on an admitted basis, pending final regulatory approvals. Management maintains a long-term strategic goal of reaching $500 million in direct premiums written by year-end 2029 through geographic diversification. Guidance assumes a catastrophe loss ratio of 7% to 10%, accounting for typical third-quarter hurricane season volatility and elevated first-quarter winter storm activity. Recognized $1.6 million, or 2.7 points, of favorable prior-year reserve development related to accident years before 2026. The New York quota share session was reduced to 5% for the 2026 treaty year from 16% previously, allowing the company to retain more premium and profit. Catastrophe loss ratio was negative 0.8% for the quarter as favorable development on Q1 events exceeded actual Q2 losses. Management flagged an 'irrational' pricing environment from one specific competitor in New York as a potential headwind for new business volume. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes they can remove approximately 1 additional point from the expense ratio as the company scales. The interim target for the expense ratio is approximately 29%. Management noted that large admitted carriers in California are reopening for new business faster than anticipated due to the Sustainable Insurance Plan. Kingstone is starting small in California to gather feedback and remain nimble, scaling only when underwriting and return requirements are met. A 'soft market' is emerging where competitors are loosening guidelines and pricing more aggressively. Management expects this to impact new business volume more than renewal retention, as existing customers are generally less price-sensitive than new shoppers. Reinsurance placement maintains low first-event retention: $3.5 million for wildfire and $4.75 million for named storms. A storm of Superstorm Sandy's magnitude would result in an after-tax loss of approximately $4 million, or $0.27 per diluted share, characterizing it as an earnings event rather than a capital event.

Interested in Kingstone Companies, Inc? Here are five stocks we like better. Record profitability: Kingstone reported second-quarter net income of $15.5 million, up from $11.3 million year over year, while operating net income rose 41%. Direct premiums written increased 19% to $72.5 million, and the net combined ratio improved to 70.2%. Growth remains disciplined amid rising competition: Management cited softer market conditions and weaker July Dwelling Fire new business, but said it will not sacrifice underwriting standards. Kingstone maintained its 2026 guidance, including 16%–20% premium growth and diluted EPS of $2.20–$2.90. Expansion and shareholder returns: The company expanded catastrophe protection to $500 million, began writing business in California and expects to enter Connecticut. It also raised its quarterly dividend 20% to $0.06 per share, while maintaining share repurchases and reporting no holding-company debt. Fast-Growing Companies That Are Still Undervalued Kingstone Companies (NASDAQ:KINS) reported its most profitable quarter on record in the second quarter of 2026, supported by premium growth, underwriting profitability, expense leverage and higher investment income. The insurer said it remains on track with its full-year outlook, while acknowledging that competition is increasing in parts of its markets. Vice President and Chief Financial Officer Randy Patten said second-quarter net income rose to $15.5 million, or $1.05 per diluted share, from $11.3 million, or $0.78 per diluted share, in the prior-year period. Operating net income increased 41% to $15.3 million, or $1.04 per diluted share. Annualized GAAP return on equity was 50.8% during the quarter. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “From a net income and EPS standpoint, the second quarter was our most profitable quarter in company history,” Patten said. Direct premiums written increased 19% year over year to $72.5 million, while net premiums earned rose 31% to $60.5 million. Policies in force increased 9.9% to 84,570. Patten said earned-premium growth reflected continued expansion in direct written premiums and a reduced New York quota-share cession. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company’s New York quota-share cession declined to 5% for the 2026 treaty year from 16% in the prior treaty year, allowing Kingstone to retain a larger portion of premium and underwriting profit. President and Chief Executive Officer Meryl Golden said growth was led by the company’s New York personal-lines business. New-business policy count increased 35% from the prior-year quarter, retention improved by two percentage points and average renewal premium rose 8%. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Kingstone’s GAAP net combined ratio improved 1.3 points to 70.2%. Its net loss ratio was 39.6%, compared with 38.8% a year earlier, while the underwriting expense ratio improved 2.1 points to 30.6% as earned premiums grew faster than the expense base. The catastrophe loss ratio was negative 0.8%, as favorable development on first-quarter catastrophe losses exceeded the low level of catastrophe losses recorded in the second quarter. The company also recognized $1.6 million, or 2.7 points, of favorable prior-year reserve development. Excluding catastrophe losses and prior-year reserve development, the underlying loss ratio was 43.1%, compared with 38.7% in the exceptionally strong prior-year quarter. The underlying combined ratio was 73.7%, versus 71.4% a year earlier. Golden said the company’s Select products continued to support risk selection. On an inception-to-date basis, Select Homeowners claim frequency was more than 34% below the legacy product, while Select Dwelling Fire frequency was 19% lower. Select represented 62% of homeowner policies in force and 40% of Dwelling Fire policies in force. Management said it is seeing signs of a softer market and more competitive conditions, especially in the Dwelling Fire line. Golden said Kingstone does not intend to pursue volume at the expense of underwriting standards and expects New York growth to moderate from first-half levels. “We will not chase volume at the expense of underwriting discipline,” Golden said. In response to analyst questions, Golden said some new competitors have entered the New York market, while certain existing competitors have loosened underwriting guidelines. She said the company saw a decline in Dwelling Fire new business during July, though she expects competition to have a greater effect on new-business production than renewals. Kingstone reiterated its full-year 2026 guidance, including: Direct premiums written growth of 16% to 20%; GAAP net combined ratio of 81% to 86%; Underlying combined ratio of 74% to 76%; 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%. Golden said the company is maintaining its guidance ranges because the most active months of hurricane season remain ahead and competitive conditions are evolving. Kingstone increased total catastrophe protection by 14% to $500 million in its July 1 reinsurance placement. The program added wildfire protection and reduced the risk-adjusted cost of core catastrophe excess-of-loss coverage by more than 15%, according to Golden. The company maintained first-event retentions of $3.5 million for wildfire, $4.75 million for named storms and $6 million for winter storms and severe convective storms. Golden said a storm comparable to Sandy, based on Kingstone’s current footprint, would result in roughly $4.7 million of pretax losses, or about $0.27 per diluted share after tax. Kingstone began writing business in California during the final week of the quarter through a limited number of agencies. Golden said the company is taking a measured approach as competition in the California excess-and-surplus market has developed faster than anticipated, including renewed activity from some admitted carriers. The company also expects to enter Connecticut on an admitted basis late in the third quarter, subject to approvals. Golden said New York remains Kingstone’s primary growth and earnings engine, while California and Connecticut represent steps toward geographic diversification. The company’s longer-term goal is to reach $500 million in direct premiums written by the end of 2029. Net investment income increased 49% to $3.4 million, driven by higher invested assets and an average yield of 4.4%. Total investments stood at $334.1 million as of June 30, up $24.4 million from year-end. Diluted book value per share reached $8.69, up 35% from $6.44 a year earlier. Kingstone reported no holding-company debt. During the quarter, the company repurchased about 19,500 shares at an average price of $14.98 per share. Following quarter-end, its board increased the quarterly dividend 20% to $0.06 per share. Patten said Kingstone’s capital-allocation priorities are to fund growth, increase the quarterly dividend and repurchase shares when opportunities arise. Golden added that management sees an interim opportunity to reduce the expense ratio to approximately 29% as the company scales, while pricing business over time for an 85 combined ratio. Kingstone Companies, Inc is a publicly traded property and casualty insurance holding company whose primary focus lies in personal and commercial insurance products. Through its wholly owned subsidiary, Kingstone Insurance Company, the firm underwrites a broad portfolio of property and casualty lines, including private passenger auto, homeowners, inland marine, umbrella, and various small‐commercial coverage options. Distribution is handled predominantly through a network of independent agents, allowing Kingstone to maintain strong broker relationships and responsive service for policyholders. The company was incorporated in Delaware in 2010 and commenced operations following the acquisition of Kingstone Insurance Company in early 2011. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kingstone Companies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record net income of $15.5 million and EPS of $1.05, with an annualized ROE of 50.8%. Direct premiums written grew 19% to $72.5 million, with new business policy count up 35% and retention up 2 points. Expense ratio improved by 2.1 points to 30.6%, reflecting operating leverage and scalability. Reinsurance program enhanced: increased catastrophe protection by 14% to $500 million, lowered risk-adjusted cost by over 15%, and maintained low first-event retention. Select product continues to outperform, with homeowners claim frequency 34% lower and dwelling fire frequency 19% lower than legacy, supporting mix improvement. Underlying loss ratio increased 4.4 points year-over-year due to higher attritional severity and inflation. Signs of a softening market and increased competition, particularly in dwelling fire, leading to expected moderation in New York growth. California expansion faces faster-than-anticipated competition from admitted carriers reopening for new business. Catastrophe loss ratio was slightly higher at 0.8% versus 0.6% in the prior year quarter. Full-year guidance maintained despite strong Q2, reflecting caution about hurricane season and competitive pressures. Warning! GuruFocus has detected 4 Warning Sign with FLR. Is KINS fairly valued? Test your thesis with our free DCF calculator. Q: Can you describe what you're looking for when writing business and what your profitability targets are? A: Meryl Golden (President and CEO) stated that Kingstone prices for an 85 combined ratio, which is their profitability expectation for new business. Q: Is it wrong to think that, aside from any catastrophes, this earnings level is a new run rate for us? A: Meryl Golden (President and CEO) clarified that the underlying combined ratio, excluding catastrophe losses and prior-year development, is the run rate to expect. This is consistent with the company's full-year guidance for an underlying combined ratio of 74% to 76%. While the Q2 results were strong, the company maintained its guidance due to the beginning of hurricane season and evolving competitive conditions. Q: Can you explain the differences between the competition in California and New York? A: Meryl Golden (President and CEO) explained that in California, the competition is building faster than anticipated because admitted carriers, which had largely stopped writing new business, are beginning to selectively reopen. This is in addition to the expected influx of E&S carriers. In New York, the competition is primarily from admitted carriers that focus on catastrophe-exposed property, as the top 10 carriers largely avoid this risk. Q: What is your target for the expense ratio as the company scales? A: Meryl Golden (President and CEO) indicated that an interim goal for the expense ratio is approximately 29%, down from the 30.6% reported in Q2 2026, reflecting continued operating leverage. Q: Will the 30% quota share on the new California book create any near-term expense ratio drag? A: Randy (CFO) responded that California is currently a very small piece of the business (less than 5% by year-end), and the 30% quota share was intended for risk aversion. Therefore, it has essentially no impact on the expense ratio. Q: How are you prioritizing capital deployment between expansion, dividends, and repurchases? A: Randy (CFO) stated that capital allocation priorities remain the same: first, to fund profitable growth; second, to grow the quarterly dividend (recently increased by 20% to $0.06 per share); and third, to repurchase shares when opportunities present themselves. Q: When will we see the effects of the increased competition? A: Meryl Golden (President and CEO) explained that in a soft market, consumers are more price-sensitive on new business than renewals. Therefore, the impact is most likely to be seen as a decline in new business writings rather than an impact on the renewal rate, though it depends on how aggressive the competition becomes. Q: Has your maximum loss in a major storm scenario changed with the new reinsurance policy? A: Randy (CFO) confirmed that the company maintained its low first-event retention across all perils. For a storm like Sandy, the cost would be roughly $4.7 million pre-tax, or about $0.27 per diluted share, making it an earnings event rather than a capital event. Q: Can you confirm the policy-in-force growth number? A: Meryl Golden (President and CEO) confirmed that policies in force grew almost 10% quarter over quarter, consistent with the press release. She also reiterated that new business was up 35%, retention improved by 2 points, and average renewal premium increased 8%. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Kingstone Companies, Inc (KINS) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.47%. A quarter ago, it was expected that this company would post a loss of $0.26 per share when it actually produced a loss of $0.35, delivering a surprise of -34.62%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Kingstone Companies, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $65.85 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.82%. This compares to year-ago revenues of $52.29 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kingstone Companies shares have added about 21.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Kingstone Companies has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kingstone Companies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.93 on $71 million in revenues for the coming quarter and $2.60 on $273.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Finance sector, Sharplink Inc (SBET), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +103.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sharplink Inc's revenues are expected to be $12.4 million, up 1671.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kingstone Companies, Inc (KINS) : Free Stock Analysis Report Sharplink Inc (SBET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Most Profitable Quarter in Company History  Q2 Diluted Net Income Per Share of $1.05 | Q2 Annualized Return on Equity of 50.8%Net Premiums Earned Growth of 31% for Q2 | Direct Premiums Written Growth1 of 19% for Q2 Q2 GAAP Net Combined Ratio of 70.2% Company Reaffirms 2026 Full Year Guidance Management to Host Conference Call Tomorrow at 8:30 a.m. Eastern Time KINGSTON, N.Y., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Kingstone Companies, Inc. (Nasdaq: KINS) (“Kingstone” or the “Company”), a regional property and casualty insurance holding company, today announced its financial results for the second quarter ended June 30, 2026. The Company has also provided an investor presentation that can be accessed through the News & Events/Presentations section of the Company website at www.kingstonecompanies.com. 1 Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures. Management CommentaryMeryl Golden, President and Chief Executive Officer of Kingstone, stated, "I am very pleased to report the most profitable quarter in Kingstone's history. Net income was a record $15.5 million, diluted earnings per share rose 35% to $1.05, and our GAAP net combined ratio improved to 70.2%, resulting in an annualized return on equity of 50.8%. Diluted book value per share increased 35% year-over-year to $8.69. Direct premiums written1 grew 18.7%, led by continued strength in New York personal lines. Net premiums earned rose 31% as premiums from our reduced quota share continue to earn in. Our 39.6% net loss ratio included favorable prior-year reserve development and a negative catastrophe loss ratio, as favorable development on our first-quarter catastrophe estimate exceeded second-quarter catastrophe losses. Our underwriting expense ratio improved to 30.6%, reflecting the operating leverage of our scalable platform. Net investment income increased 49% on a growing investment portfolio and higher yields. Our strong capital position supports profitable growth and disciplined capital returns. We completed our catastrophe reinsurance placement that increased total coverage to $500 million, added wildfire protection, maintained low first-event retentions and reduced the risk-adjusted cost of our core catastrophe excess of loss coverage by more than 15%. We also announced a share repurchase authorization during the quarter and subsequently increased our quarterly dividend by 20% to $0.06 per share, one year after reinstating it. We remain confident in our trajectory and committed to delivering long-term value to our shareholders." Fiscal Year 2026 Outlook (see “Disclaimer and Forward-Looking Statements” below) The Company is reaffirming its growth, underwriting and profitability outlook for fiscal year 2026, which was originally issued on March 5, 2026 and affirmed on May 7, 2026. The guidance below reflects management’s expectations based on information available as of August 6, 2026 and is subject to the risks and uncertainties described in “Disclaimer and Forward-Looking Statements” below. 1 Refer to “Definitions and Non-GAAP Measures” for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures. 2 The underlying combined ratio is a non-GAAP measure. It is computed as the sum of the underlying loss ratio (which is a non-GAAP measure) and the net underwriting expense ratio. The underlying loss ratio excludes catastrophe losses and prior-year reserve development from the GAAP net loss ratio. The most directly comparable GAAP measure is the net combined ratio. Refer to the section entitled “Definitions and Non-GAAP Measures” included in this press release for definitions and reconciliations of non-GAAP financial measures. A reconciliation of the 2026 estimate of underlying combined ratio to the GAAP net combined ratio is not provided because the Company is unable to predict catastrophe losses and prior-year reserve development with reasonable certainty without unreasonable efforts. These items could materially impact the GAAP measure of net combined ratio.3 The catastrophe loss ratio estimate for 2026 of 7% to 10% is at or above the Company’s six-year historical average of 7.1% (2019–2024) and gives effect to the elevated winter storm activity experienced in first quarter of 2026. Catastrophe losses are reported net of reinsurance recoveries and include loss adjustment expenses. The Company defines catastrophe events consistent with PCS industry designations.4 Guidance for the most comparable GAAP measure, net premiums earned, is not provided because net premiums earned is an output of multiple variables including direct written premium growth, quota share cession rates, and premium earning patterns, several of which are not within the Company’s direct control; therefore the Company is unable to predict such variables with reasonable certainty without unreasonable efforts. Key Modeling AssumptionsThe following reflects certain key modeling assumptions with respect to the full year 2026 guidance: Consolidated Financial Results 1 Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures. Conference Call Details Friday, August 7, 2026, at 8:30 a.m. Eastern Time To participate please dial: Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin. The conference call will also be available via live webcast on the Company’s website under the News & Events/Presentations section at www.kingstonecompanies.com. A replay will be available for 30 days. About Kingstone Companies, Inc.Kingstone is a regional property and casualty insurance holding company whose principal operating subsidiaries write 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. Kingstone was the 11th largest writer of homeowners insurance in New York in 2025 and also writes homeowners coverage in California on a non-admitted basis. Investor Relations Contact:Elevate [email protected] Disclaimer and Forward-Looking StatementsThe guidance provided above is based on information available as of August 6, 2026 and management's review of the anticipated financial results for 2026. Such guidance remains subject to change based on management's ongoing review of the Company's 2026 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, 2025. 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; our reliance on information technology and information systems; and the uncertainty relating to our geographic diversification strategy in entering the California market and other markets. 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. Definitions and Non-GAAP Measures Direct premiums written is a non-GAAP measure, which represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums written is a non-GAAP measure, which are direct premiums written less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct premiums written and net premiums written, are net premiums written that are pro-rata earned during the fiscal period presented. All of the Company’s policies are written for a twelve-month period. Management uses direct premiums written and net premiums written, along with other measures, to gauge the Company’s performance and evaluate results. Direct premiums written and net premiums written are provided as supplemental information, not as a substitute for net premiums earned, and do not reflect the Company’s net premiums earned. Adjusted EBITDA is a non-GAAP measure, which is net income (loss) exclusive of interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation. Net income (loss) is the GAAP measure most closely comparable to adjusted EBITDA. Management uses adjusted EBITDA along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation, and may vary significantly between periods. Adjusted EBITDA is provided as supplemental information, not as a substitute for net income, and does not reflect the Company’s overall profitability. Operating net income (loss) and basic operating net income (loss) per share are non-GAAP measures, which are net income (loss) and basic net income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and basic net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and basic operating net income (loss) per share. Management uses operating net income (loss) and basic operating net income (loss) per share along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and basic operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and basic net income (loss) per share, and do not reflect the Company’s overall profitability. Operating net income (loss) and diluted operating net income (loss) per share are non-GAAP measures, which are net income (loss) and diluted net income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and diluted net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and diluted operating net income (loss) per share. Management uses operating net income (loss) and diluted operating net income (loss) per share along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and diluted operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and diluted net income (loss) per share, and do not reflect the Company’s overall profitability. Operating return on equity is a non-GAAP measure, which is operating income (loss) divided by average equity. Return on equity is the GAAP measure most closely comparable to operating return on equity. Management uses operating return on equity, along with other measures, to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate, which may vary significantly between periods. Operating return on equity is provided as supplemental information, is not a substitute for return on equity and does not reflect the Company’s overall return on average common equity. Underlying loss ratio is a non-GAAP ratio, which is computed as the GAAP net loss ratio excluding the effect of prior year loss reserve development and catastrophe losses. Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The underlying loss ratio should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio. Net loss ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio and the effect of catastrophes on the net loss ratio. Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by catastrophe losses. Catastrophe losses cause the Company’s net loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The net loss ratio excluding the effect of catastrophes should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio. Underlying combined ratio is a non-GAAP measure, which is computed as the sum of the underlying loss ratio and the net underwriting expense ratio. Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net combined ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net combined ratio. The underlying combined ratio should not be considered a substitute for the net combined ratio and does not reflect the Company’s net combined ratio. The table below reconciles GAAP net premiums earned to direct premiums written for the periods presented: The following table reconciles net income to adjusted EBITDA for the periods indicated: The following table reconciles net income to operating net income and basic GAAP net income per share to basic operating net income per share for the periods indicated: The following table reconciles net income to operating net income and diluted GAAP net income per share to diluted operating net income per share for the periods indicated: The following table reconciles net income to operating net income and return on equity to operating return on equity for the periods indicated: The following table reconciles the net loss ratio to the underlying loss ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented: The following table reconciles the GAAP net combined ratio to the underlying combined ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented:

American Coastal Insurance (ACIC) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -21.43%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $0.44 per share when it actually produced earnings of $0.39, delivering a surprise of -11.36%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. American Coastal, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $75.1 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.79%. This compares to year-ago revenues of $84.24 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American Coastal shares have lost about 12.7% since the beginning of the year versus the S&P 500's gain of 13%. While American Coastal has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American Coastal was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.13 on $82.59 million in revenues for the coming quarter and $0.96 on $310.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Kingstone Companies, Inc (KINS), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +26.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kingstone Companies, Inc's revenues are expected to be $66.4 million, up 27% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Coastal Insurance Corporation (ACIC) : Free Stock Analysis Report Kingstone Companies, Inc (KINS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

KINGSTON, N.Y., July 23, 2026 (GLOBE NEWSWIRE) -- Kingstone Companies, Inc. (Nasdaq: KINS) (“Kingstone” or the “Company”), a regional property and casualty insurance holding company, today announced that its Board of Directors has approved a 20% increase in the Company’s quarterly cash dividend to $0.06 per share of common stock from $0.05 per share. The dividend is payable on August 26, 2026, to stockholders of record at the close of business on August 11, 2026. Randy Patten, Vice President and Chief Financial Officer of Kingstone, stated, “One year after reinstating our quarterly dividend, this 20% increase reflects the Board’s confidence in the earnings power of the platform we have built and our outlook for continued profitable growth. Together with the share repurchase program announced in May, it demonstrates our ability to return capital to shareholders while continuing to invest in the business. We remain committed to disciplined capital allocation and prioritizing the opportunities we believe will generate the highest long-term returns for our shareholders.” This is the first dividend increase since Kingstone reinstated its quarterly dividend in July 2025 and follows the Board’s authorization in May 2026 of a share repurchase program of up to 1,000,000 shares of the Company’s common stock over the next two years. About Kingstone Companies, Inc.Kingstone is a regional property and casualty insurance holding company whose principal operating subsidiaries write 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. Kingstone was the 11th largest writer of homeowners insurance in New York in 2025 and also writes homeowners coverage in California on a non-admitted basis. Forward-Looking StatementsThis 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, 2025. 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. Investor Relations ContactElevate [email protected]

This article first appeared on GuruFocus. Release Date: May 08, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kingstone Companies Inc (NASDAQ:KINS) reported a 20% growth in direct premiums written, driven by strong performance in the New York personal lines business. The underlying combined ratio improved by 5.1 points year-over-year to 88.3%, indicating better control over the business operations. Investment income increased by 63%, reflecting robust cash generation and higher fixed income yields. The company is expanding into new markets, including California and Connecticut, which are expected to contribute to long-term growth. Kingstone Companies Inc (NASDAQ:KINS) has no long-term debt, providing financial flexibility to fund growth initiatives. The company reported a net loss of $5.8 million for the first quarter, primarily due to 11 winter catastrophe events. The GAAP net combined ratio was 112%, significantly impacted by the severe winter storm season. The annualized return on equity was negative at -19.6%, reflecting the financial impact of the catastrophe losses. Book value per diluted share decreased to $7.70 from $8.28 at the end of the previous year. The company faced higher operating expenses due to one-time board-level projects, impacting overall profitability. Warning! GuruFocus has detected 7 Warning Signs with WEN. Is KINS fairly valued? Test your thesis with our free DCF calculator. Q: How much of the catastrophe losses were covered by reinsurance, and what were the gross and net losses? A: (Merrill Golden, CEO) We had a $5 million recovery from our first event winter storm coverage and about $4 to $5 million going into the reinsurance tower. Our gross loss was approximately $25 million, with net losses around $14.5 million. Q: Has the policy count growth seen in March continued into April? A: (Merrill Golden, CEO) Yes, our growth has continued into the second quarter, with even slightly higher premium growth than previously experienced. We feel confident about our position in New York. Q: Why were other operating expenses higher than expected, and is this a one-time occurrence? A: (Randy Patton, CFO) The higher operating expenses were due to a one-time expense related to board-level projects. We do not expect this to continue in the future. Q: How does Kingstone plan to compete in the California market given the increased competition? A: (Merrill Golden, CEO) California is a $15 billion homeowners' market with a significant need for capacity. We plan to enter conservatively, with California volume expected to be less than 5% for 2026. We are committed to long-term relationships with independent agents, offering a highly segmented product to match rate to risk. Q: What differentiates Kingstone's offering in California from other competitors? A: (Merrill Golden, CEO) We offer a highly segmented product specific to California, potentially providing competitive pricing. Unlike some entrants, we are committed to long-term relationships with independent agents and are not just capitalizing on short-term market opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net Premiums Earned Growth of 28% for Q1 2026 | Direct Premiums Written Growth1 of 20% for Q1 2026 Q1 GAAP Net Combined Ratio of 112.0% Driven by Eleven Winter Catastrophe Events in the Northeast U.S. Q1 Underlying Combined Ratio1 Improved 5.1 Points to 88.3% Q1 Diluted Net Loss Per Share of $0.40 | Q1 Diluted Operating Net Loss Per Share1 of $0.35 Company Reaffirms 2026 Full Year Guidance Management to Host Conference Call Tomorrow at 8:30 a.m. Eastern Time KINGSTON, N.Y., May 07, 2026 (GLOBE NEWSWIRE) -- Kingstone Companies, Inc. (Nasdaq: KINS) (“Kingstone” or the “Company”), a regional property and casualty insurance holding company, today announced its financial results for the first quarter ended March 31, 2026. The Company has also provided an investor presentation that can be accessed through the News & Events/Presentations section of the Company website at www.kingstonecompanies.com. Management Commentary Meryl Golden, President and Chief Executive Officer of Kingstone, stated, “First quarter results reflected elevated winter catastrophe activity across the Northeast, resulting in a GAAP combined ratio of 112.0%. The winter storm season in Q1 was exceptionally severe for downstate New York and ranked as the coldest and snowiest in 11 years. Importantly, this level of catastrophe activity was in-line with our guidance and does not detract from the underlying strength of our business. Excluding catastrophes, our performance underscores the earnings power of the platform we have built. Our underlying combined ratio1 improved 5.1 points year-over-year to 88.3%, supported by low non-catastrophe loss frequency, higher average premium, and continued discipline in underwriting and expense management. These results reinforce the structural profitability improvements we have made over the past several years. Growth remained strong in the quarter with direct premiums written1 increasing 20%, driven by continued momentum in our New York homeowners business, higher average premiums, and solid retention. While policy volume was more moderate in January and February, likely due to the bad weather, March represented one of our strongest months of new business volume, reflecting sustained demand and the competitiveness of our product offering. Our operating model continues to differentiate Kingstone. The increasing mix of our Select product is driving improved risk selection and loss performance, while our scalable platform enables us to grow efficiently. At the same time, our conservative reinsurance ensures that catastrophe events are an earnings event, not a capital event, allowing us to maintain financial flexibility even in periods of increased severe weather. Looking ahead, we remain confident in our trajectory and our full year 2026 guidance. Our underlying performance trends, combined with continued rate adequacy and disciplined growth, position us well to deliver strong profitability. We are also advancing our strategic initiatives, including our planned entry into California in the second quarter and the recent launch of Kingstone America Insurance Company, which will support our expansion into new markets on an admitted and non-admitted basis, starting with Connecticut in the third quarter. We will continue to execute with discipline, manage catastrophe exposure prudently, and invest in scalable growth opportunities to deliver long-term value to our shareholders.” Fiscal Year 2026 Outlook (see “Disclaimer and Forward-Looking Statements” below) The Company is reiterating its growth and profitability outlook for fiscal year 2026, which was originally issued on March 5, 2026. The guidance below reflects management’s current expectations based on information available as of May 7, 2026 and is subject to the risks and uncertainties described in “Disclaimer and Forward-Looking Statements” below. ¹Refer to “Definitions and Non-GAAP Measures” for definitions and first quarter 2026 reconciliations. ²The Underlying Combined Ratio is a non-GAAP measure. It is computed as the sum of the underlying loss ratio (which is a non-GAAP measure) and the net underwriting expense ratio. The underlying loss ratio excludes catastrophe losses and prior-year reserve development from the GAAP net loss ratio. The most directly comparable GAAP measure is the net combined ratio. Refer to the section entitled “Definitions and Non-GAAP Measures” included in this press release for definitions and reconciliations of non-GAAP financial measures. A reconciliation of the 2026 estimate of Underlying Combined Ratio to the GAAP net combined ratio is not provided because the Company is unable to predict catastrophe losses and prior-year reserve development with reasonable certainty without unreasonable efforts. These items could materially impact the GAAP measure. ³ The catastrophe loss ratio estimate for 2026 of 7% to 10% is at or above the Company’s six-year historical average of 7.1% (2019–2024) and gives effect to the elevated winter storm activity experienced in first quarter of 2026. Catastrophe losses are reported net of reinsurance recoveries and include loss adjustment expenses. The Company defines catastrophe events consistent with PCS industry designations. 4Guidance for the most comparable GAAP measure, net premiums earned, is not provided because net premiums earned is an output of multiple variables including direct written premium growth, quota share cession rates, and premium earning patterns, several of which are not within the Company’s direct control; therefore the Company is unable to predict such variables with reasonable certainty without unreasonable efforts. Key Modeling Assumptions The following reflects certain key modeling assumptions with respect to the full year 2026 guidance: Consolidated Financial Results NM = Not Meaningful 1Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release. Conference Call Details Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin. The conference call will also be available via live webcast on the Company’s website under the News & Events/Presentations section at www.kingstonecompanies.com. A replay will be available for 30 days. About Kingstone Companies, Inc. Kingstone is a 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. KICO was the 11th largest writer of homeowners insurance in New York in 2025 and is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine. Investor Relations Contact: Elevate IR [email protected] 720-330-2829 Disclaimer and Forward-Looking Statements The guidance provided above is based on information available as of May 7, 2026 and management's review of the anticipated financial results for 2026. Such guidance remains subject to change based on management's ongoing review of the Company's 2026 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, 2025. 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; our reliance on information technology and information systems; and the uncertainty relating to our geographic diversification strategy in entering the California market and other markets. 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. Definitions and Non-GAAP Measures Direct premiums written is a non-GAAP measure, which represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums written is a non-GAAP measure, which are direct premiums written less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct premiums written and net premiums written, are net premiums written that are pro-rata earned during the fiscal period presented. All of the Company’s policies are written for a twelve-month period. Management uses direct premiums written and net premiums written, along with other measures, to gauge the Company’s performance and evaluate results. Direct premiums written and net premiums written are provided as supplemental information, not as a substitute for net premiums earned, and do not reflect the Company’s net premiums earned. Adjusted EBITDA is a non-GAAP measure, which is net income (loss) exclusive of interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation. Net income (loss) is the GAAP measure most closely comparable to adjusted EBITDA. Management uses adjusted EBITDA along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation, and may vary significantly between periods. Adjusted EBITDA is provided as supplemental information, not as a substitute for net income and does not reflect the Company’s overall profitability. Operating net income (loss) and basic operating net income (loss) per share is a non-GAAP measure, which is net income (loss) and basic income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and basic net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and basic operating net income (loss) per share. Management uses operating net income (loss) and basic operating net income (loss) per share along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and basic operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and basic net income (loss) per share and do not reflect the Company’s overall profitability. Operating net income (loss) and diluted operating net income (loss) per share is a non-GAAP measure, which is net income (loss) and diluted income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and diluted net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and diluted operating net income (loss) per share. Management uses operating net income (loss) and diluted operating net income (loss) per share along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and diluted operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and diluted net income (loss) per share, and do not reflect the Company’s overall profitability. Operating return on equity is a non-GAAP measure, which is operating income (loss) divided by average equity. Return on equity is the GAAP measure most closely comparable to operating return on equity. Management uses operating return on equity, along with other measures, to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate, which may vary significantly between periods. Operating return on equity is provided as supplemental information, is not a substitute for return on equity and does not reflect the Company’s overall return on average common equity. Underlying loss ratio is a non-GAAP ratio, which is computed as the GAAP net loss ratio excluding the effect of prior year loss reserve development and catastrophe losses. Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The underlying loss ratio should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio. Net loss ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio and the effect of catastrophes on the net loss ratio. Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by catastrophe losses. Catastrophe losses cause the Company’s net loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The net loss ratio excluding the effect of catastrophes should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio. Underlying combined ratio is a non-GAAP measure, which is computed as the sum of the underlying loss ratio and the net underwriting expense ratio. Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net combined ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net combined ratio. The underlying combined ratio should not be considered a substitute for the net combined ratio and does not reflect the Company’s net combined ratio. The table below reconciles net premiums earned to direct premiums written for the periods presented: The following table reconciles net (loss) income to adjusted EBITDA for the periods indicated: The following table reconciles net (loss) income to operating net (loss) income and basic net (loss) income per share to basic operating net (loss) income per share for the periods indicated: The following table reconciles net (loss) income to operating net (loss) income and diluted net (loss) income per share to diluted operating net (loss) income per share for the periods indicated: The following table reconciles net (loss) income to operating net (loss) income and return on equity to operating return on equity for the periods indicated: The following table reconciles the net loss ratio to the underlying loss ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented: The following table reconciles the net combined ratio to the underlying combined ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented: