Kingstone Reports Second Quarter 2026 Results
Most Profitable Quarter in Company History
Q2 Diluted Net Income Per Share of $1.05 | Q2 Annualized Return on Equity of 50.8%
Net Premiums Earned Growth of 31% for Q2 | Direct Premiums Written Growth1 of 19% for Q2
Q2 GAAP Net Combined Ratio of 70.2%
Company Reaffirms 2026 Full Year Guidance
Management to Host Conference Call Tomorrow at 8:30 a.m. Eastern Time
KINGSTON, N.Y., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Kingstone Companies, Inc. (Nasdaq: KINS) (“Kingstone” or the “Company”), a regional property and casualty insurance holding company, today announced its financial results for the second quarter ended June 30, 2026. The Company has also provided an investor presentation that can be accessed through the News & Events/Presentations section of the Company website at www.kingstonecompanies.com.
| Key Financial and Operational Highlights | ||||||||||
| Quarters Ended | Six Months Ended | |||||||||
| June 30, | June 30, | |||||||||
| ($ in thousands, except per share data) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||
| Net premiums earned | $ | 60,467 | $ | 46,215 | 30.8% | $ | 116,336 | $ | 89,738 | 29.6% |
| Direct premiums written1 | $ | 72,494 | $ | 61,062 | 18.7% | $ | 142,097 | $ | 119,237 | 19.2% |
| Net combined ratio | 70.2% | 71.5% | (1.3) pts | 90.2% | 82.3% | 7.9 pts | ||||
| Catastrophe loss ratio1 | (0.8)% | 0.6% | (1.4) pts | 12.0% | 1.2% | 10.8 pts | ||||
| Underlying combined ratio1 | 73.7% | 71.4% | 2.3 pts | 80.7% | 82.0% | (1.3) pts | ||||
| Net income | $ | 15,470 | $ | 11,252 | 37.5% | $ | 9,662 | $ | 15,135 | (36.2)% |
| Net income per share - diluted | $ | 1.05 | $ | 0.78 | 34.6% | $ | 0.66 | $ | 1.07 | (38.3)% |
| Operating net income per share - diluted1 | $ | 1.04 | $ | 0.75 | 38.7% | $ | 0.70 | $ | 0.94 | (25.5)% |
| Return on equity - annualized | 50.8% | 50.8% | — pts | 15.3% | 37.4% | (22.1) pts | ||||
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 Commentary
Meryl 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.
| Guidance Metrics | 2026 Estimate |
| Direct premiums written1,4 growth | 16% to 20% |
| Net combined ratio | 81% to 86% |
| Underlying combined ratio1,2 (excluding catastrophe losses and prior-year reserve development) | 74% to 76% |
| Prior-year reserve development | —% |
| Catastrophe loss ratio1,3 | 7% to 10% |
| Net income per share – diluted | $2.20 to $2.90 |
| Return on equity | 24% to 30% |
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 Assumptions
The following reflects certain key modeling assumptions with respect to the full year 2026 guidance:
| Assumption | 2026E |
| Assumed effective tax rate | 21% |
| Weighted average diluted shares outstanding | 14.8 million |
Consolidated Financial Results
| Consolidated Financial Results | Quarters Ended | Six Months Ended | ||||||||
| ($ in thousands, except policy and per share data) | June 30, | June 30, | ||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||
| Net premiums earned | $ | 60,467 | $ | 46,215 | 30.8% | $ | 116,336 | $ | 89,738 | 29.6% |
| Direct premiums written1 | $ | 72,494 | $ | 61,062 | 18.7% | $ | 142,097 | $ | 119,237 | 19.2% |
| Policies in force, at the end of the period | 84,570 | 76,925 | 9.9% | 84,570 | 76,925 | 9.9% | ||||
| Net investment income | $ | 3,429 | $ | 2,300 | 49.1% | $ | 6,766 | $ | 4,349 | 55.6% |
| Net gains (losses) on investments | $ | 240 | $ | 546 | (56.0)% | $ | (775) | $ | 408 | (290.0)% |
| Gain on sale of real estate | $ | — | $ | — | —% | $ | — | $ | 1,966 | (100.0)% |
| Net loss ratio | 39.6% | 38.8% | 0.8 pts | 59.7% | 50.3% | 9.4 pts | ||||
| Net underwriting expense ratio | 30.6% | 32.7% | (2.1) pts | 30.5% | 32.0% | (1.5) pts | ||||
| Net combined ratio | 70.2% | 71.5% | (1.3) pts | 90.2% | 82.3% | 7.9 pts | ||||
| Net loss ratio | 39.6% | 38.8% | 0.8 pts | 59.7% | 50.3% | 9.4 pts | ||||
| Catastrophe loss ratio1 | (0.8)% | 0.6% | (1.4) pts | 12.0% | 1.2% | 10.8 pts | ||||
| Net loss ratio excluding the effect of catastrophes1 | 40.4% | 38.2% | 2.2 pts | 47.7% | 49.1% | (1.4) pts | ||||
| Effect of prior-year favorable reserve development | (2.7)% | (0.5)% | (2.2) pts | (2.5)% | (0.9)% | (1.6) pts | ||||
| Underlying loss ratio1 | 43.1% | 38.7% | 4.4 pts | 50.2% | 50.0% | 0.2 pts | ||||
| Net income | $ | 15,470 | $ | 11,252 | 37.5% | $ | 9,662 | $ | 15,135 | (36.2)% |
| Net income per share - basic | $ | 1.07 | $ | 0.81 | 32.1% | $ | 0.67 | $ | 1.10 | (39.1)% |
| Net income per share - diluted | $ | 1.05 | $ | 0.78 | 34.6% | $ | 0.66 | $ | 1.07 | (38.3)% |
| Return on equity - annualized | 50.8% | 50.8% | — pts | 15.3% | 37.4% | (22.1) pts | ||||
| Adjusted EBITDA1 | $ | 20,738 | $ | 14,783 | 40.3% | $ | 15,791 | $ | 19,038 | (17.1)% |
| Other comprehensive (loss) income, net of tax | $ | (385) | $ | 1,022 | (137.7)% | $ | (2,441) | $ | 3,245 | (175.2)% |
| Operating net income1 | $ | 15,280 | $ | 10,821 | 41.2% | $ | 10,274 | $ | 13,259 | (22.5)% |
| Operating net income per share - basic1 | $ | 1.06 | $ | 0.78 | 35.9% | $ | 0.71 | $ | 0.97 | (26.8)% |
| Operating net income per share - diluted1 | $ | 1.04 | $ | 0.75 | 38.7% | $ | 0.70 | $ | 0.94 | (25.5)% |
| Operating return on equity1 | 12.5% | 12.2% | 0.3 pts | 8.2% | 16.4% | (8.2) pts | ||||
| Operating return on equity1- annualized | 50.2% | 48.9% | 1.3 pts | 16.3% | 32.8% | (16.5) pts | ||||
| Book value per share, at the end of the period - diluted | $ | 8.69 | $ | 6.44 | 34.9% | |||||
| Book value per share, at the end of the period - diluted excluding AOCI | $ | 9.27 | $ | 7.04 | 31.7% | |||||
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:
| U.S. toll free International | 1-877-407-2991 1-201-389-0925 |
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 IR
[email protected]
720-330-2829
Disclaimer and Forward-Looking Statements
The 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:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| % | % | |||||||||||||||||||||
| (000’s except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||
| Direct Premiums Written Reconciliation: | ||||||||||||||||||||||
| GAAP net premiums earned | $ | 60,467 | $ | 46,215 | 30.8 | % | $ | 116,336 | $ | 89,738 | 29.6 | % | ||||||||||
| Change in unearned premiums | 7,322 | 5,995 | 22.1 | 29,046 | 23,482 | 23.7 | ||||||||||||||||
| Net premiums written | 67,789 | 52,211 | 29.8 | 145,382 | 113,220 | 28.4 | ||||||||||||||||
| Ceded written premiums | (4,705) | (8,852) | (46.8) | 3,285 | (6,017) | (154.6) | ||||||||||||||||
| Direct premiums written | $ | 72,494 | $ | 61,062 | 18.7 | % | $ | 142,097 | $ | 119,237 | 19.2 | % | ||||||||||
| (Components may not sum due to rounding) | ||||||||||||||||||||||
The following table reconciles net income to adjusted EBITDA for the periods indicated:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| % | % | |||||||||||||||||||||
| (000’s except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||
| Adjusted EBITDA Reconciliation: | ||||||||||||||||||||||
| Net income | $ | 15,470 | $ | 11,252 | 37.5 | % | $ | 9,662 | $ | 15,135 | (36.2) | % | ||||||||||
| Interest expense | 59 | 77 | (23.4) | 129 | 305 | (57.7) | ||||||||||||||||
| Income tax expense | 4,042 | 2,914 | 38.7 | 2,449 | 3,750 | (34.7) | ||||||||||||||||
| Depreciation and amortization | 761 | 613 | 24.1 | 1,477 | 1,237 | 19.4 | ||||||||||||||||
| EBITDA | 20,332 | 14,857 | 36.9 | 13,716 | 20,427 | (32.9) | ||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | 175 | (100.0) | ||||||||||||||||
| Net (gain) loss on investments | (240) | (546) | (56.0) | 775 | (408) | (290.0) | ||||||||||||||||
| Gain on sale of real estate | — | — | — | — | (1,966) | (100.0) | ||||||||||||||||
| Stock-based compensation | 646 | 472 | 36.9 | 1,300 | 811 | 60.3 | ||||||||||||||||
| Adjusted EBITDA | $ | 20,738 | $ | 14,783 | 40.3 | % | $ | 15,791 | $ | 19,038 | (17.1) | % | ||||||||||
| (Components may not sum due to rounding) | ||||||||||||||||||||||
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:
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||
| (000’s except per common share and outstanding share amounts) | Amount | Basic income per common share | Amount | Basic income per common share | Amount | Basic income per common share | Amount | Basic income per common share | |||||||||||||||
| Net income | $ | 15,470 | $ | 1.07 | $ | 11,252 | $ | 0.81 | $ | 9,662 | $ | 0.67 | $ | 15,135 | $ | 1.10 | |||||||
| Net (gain) loss on investments | (240) | (546) | 775 | (408) | |||||||||||||||||||
| Gain on sale of real estate | — | — | — | (1,966) | |||||||||||||||||||
| Net (gain) loss on investments and (gain) on sale of real estate | (240) | (546) | 775 | (2,374) | |||||||||||||||||||
| Less tax (expense) benefit on net loss (gain) | (50) | (115) | 163 | (499) | |||||||||||||||||||
| Net (gain) loss on investments and (gain) on sale of real estate, net of taxes | (190) | $ | (0.01) | (431) | $ | (0.03) | 612 | $ | 0.04 | (1,875) | $ | (0.14) | |||||||||||
| Operating net income | $ | 15,280 | $ | 1.06 | $ | 10,821 | $ | 0.78 | $ | 10,274 | $ | 0.71 | $ | 13,259 | $ | 0.97 | |||||||
| Weighted average basic shares outstanding | 14,480,305 | 13,925,707 | 14,467,100 | 13,700,308 | |||||||||||||||||||
| (Components may not sum due to rounding) | |||||||||||||||||||||||
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:
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||||||
| (000’s except per common share and outstanding share amounts) | Amount | Diluted income per common share | Amount | Diluted income per common share | Amount | Diluted income per common share | Amount | Diluted income per common share | |||||||||||||||
| Net income | $ | 15,470 | $ | 1.05 | $ | 11,252 | $ | 0.78 | $ | 9,662 | $ | 0.66 | $ | 15,135 | $ | 1.07 | |||||||
| Net (gain) loss on investments | (240) | (546) | 775 | (408) | |||||||||||||||||||
| Gain on sale of real estate | — | — | — | (1,966) | |||||||||||||||||||
| Net (gain) loss on investments and (gain) on sale of real estate | (240) | (546) | 775 | (2,374) | |||||||||||||||||||
| Less tax (expense) benefit on net loss (gain) | (50) | (115) | 163 | (499) | |||||||||||||||||||
| Net (gain) loss on investments and (gain) on sale of real estate, net of taxes | (190) | $ | (0.01) | (431) | $ | (0.03) | 612 | $ | 0.04 | (1,875) | $ | (0.14) | |||||||||||
| Operating net income | $ | 15,280 | $ | 1.04 | $ | 10,821 | $ | 0.75 | $ | 10,274 | $ | 0.70 | $ | 13,259 | $ | 0.94 | |||||||
| Weighted average diluted shares outstanding | 14,671,627 | 14,387,538 | 14,638,799 | 14,148,748 | |||||||||||||||||||
| (Components may not sum due to rounding) | |||||||||||||||||||||||
The following table reconciles net income to operating net income and return on equity to operating return on equity for the periods indicated:
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (000’s except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||
| Operating Net Income Reconciliation: | |||||||||||||||
| Net income | $ | 15,470 | $ | 11,252 | 37.5% | $ | 9,662 | $ | 15,135 | (36.2)% | |||||
| Net (gain) loss on investments | (240) | (546) | (56.0)% | 775 | (408) | (290.0)% | |||||||||
| Gain on sale of real estate | — | — | —% | — | (1,966) | (100.0)% | |||||||||
| Net (gain) loss on investments and (gain) on sale of real estate | (240) | (546) | (56.0)% | 775 | (2,374) | (132.6)% | |||||||||
| Less tax (expense) benefit on net loss (gain) | (50) | (115) | (56.5)% | 163 | (499) | (132.7)% | |||||||||
| Net (gain) loss on investments and (gain) on sale of real estate, net of taxes | (190) | (431) | (55.9)% | 612 | (1,875) | (132.6)% | |||||||||
| Operating net income | $ | 15,280 | $ | 10,821 | 41.2% | $ | 10,274 | $ | 13,259 | (22.5)% | |||||
| Operating Return on Equity Reconciliation: | |||||||||||||||
| Net income | $ | 15,470 | $ | 11,252 | 37.5% | $ | 9,662 | $ | 15,135 | (36.2)% | |||||
| Average equity | $ | 121,832 | $ | 88,544 | 37.6% | $ | 125,945 | $ | 80,793 | 55.9% | |||||
| Return on equity | 12.7% | 12.7% | — pts | 7.7% | 18.7% | (11.0) pts | |||||||||
| Return on equity - annualized | 50.8% | 50.8% | — pts | 15.3% | 37.4% | (22.1) pts | |||||||||
| Net (gain) loss on investments and (gain) on sale of real estate, net of taxes | $ | (190) | $ | (431) | (55.9)% | $ | 612 | $ | (1,875) | (132.6)% | |||||
| Average equity | $ | 121,832 | $ | 88,544 | 37.6% | $ | 125,945 | $ | 80,793 | 55.9% | |||||
| Effect of net (gain) loss on investments and (gain) on sale of real estate, net of taxes, on return on equity | (0.2)% | (0.5)% | 0.3 pts | 0.5% | (2.3)% | 2.8 pts | |||||||||
| Operating net income | $ | 15,280 | $ | 10,821 | 41.2% | $ | 10,274 | $ | 13,259 | (22.5)% | |||||
| Operating net income - annualized | $ | 61,121 | $ | 43,284 | 41.2% | $ | 20,548 | $ | 26,516 | (22.5)% | |||||
| Average equity | $ | 121,832 | $ | 88,544 | 37.6% | $ | 125,945 | $ | 80,793 | 55.9% | |||||
| Operating return on equity | 12.5% | 12.2% | 0.3 pts | 8.2% | 16.4% | (8.2) pts | |||||||||
| Operating return on equity - annualized | 50.2% | 48.9% | 1.3 pts | 16.3% | 32.8% | (16.5) pts | |||||||||
| (Components may not sum due to rounding) | |||||||||||||||
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:
| For the Three Months Ended | For the Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2026 | 2025 | Percentage Point Change | 2026 | 2025 | Percentage Point Change | ||||||||
| Underlying Loss Ratio Reconciliation: | |||||||||||||
| Net loss ratio | 39.6% | 38.8% | 0.8 | pts | 59.7% | 50.3% | 9.4 | pts | |||||
| Effect of catastrophes | (0.8)% | 0.6% | (1.4) | pts | 12.0% | 1.2% | 10.8 | pts | |||||
| Net loss ratio excluding the effect of catastrophes | 40.4% | 38.2% | 2.2 | pts | 47.7% | 49.1% | (1.4) | pts | |||||
| Effect of prior-year favorable reserve development | (2.7)% | (0.5)% | (2.2) | pts | (2.5)% | (0.9)% | (1.6) | pts | |||||
| Underlying Loss Ratio | 43.1% | 38.7% | 4.4 | pts | 50.2% | 50.0% | 0.2 | pts | |||||
| (Components may not sum due to rounding) | |||||||||||||
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:
| For the Three Months Ended | For the Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2026 | 2025 | Percentage Point Change | 2026 | 2025 | Percentage Point Change | ||||||||
| Underlying Combined Ratio Reconciliation: | |||||||||||||
| GAAP net combined ratio | 70.2% | 71.5% | (1.3) | pts | 90.2% | 82.3% | 7.9 | pts | |||||
| Effect of catastrophes | (0.8)% | 0.6% | (1.4) | pts | 12.0% | 1.2% | 10.8 | pts | |||||
| Effect of prior-year favorable reserve development | (2.7)% | (0.5)% | (2.2) | pts | (2.5)% | (0.9)% | (1.6) | pts | |||||
| Underlying combined ratio | 73.7% | 71.4% | 2.3 | pts | 80.7% | 82.0% | (1.3) | pts | |||||
| (Components may not sum due to rounding) | |||||||||||||
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES | |||||
| Condensed Consolidated Balance Sheets | |||||
| June 30, 2026 | December 31, 2025 | ||||
| (unaudited) | |||||
| Assets | |||||
| Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of | |||||
| $5,065,341 at June 30, 2026 and $5,137,267 at December 31, 2025) | $ | 6,039,691 | $ | 6,042,348 | |
| Fixed-maturity securities, available-for-sale, at fair value (amortized cost of | |||||
| $324,716,045 at June 30, 2026 and $296,738,055 at December 31, 2025) | 313,925,930 | 289,037,190 | |||
| Equity securities, at fair value (cost of $13,598,454 at June 30, 2026 and $13,546,654 at December 31, 2025) | 9,810,500 | 10,056,595 | |||
| Other investments | 4,280,522 | 4,552,378 | |||
| Total investments | 334,056,643 | 309,688,511 | |||
| Cash and cash equivalents | 16,924,856 | 12,178,730 | |||
| Premiums receivable, net of allowance for credit losses of $80,779 at June 30, 2026 and $20,831 at December 31, 2025 | 19,284,233 | 21,012,408 | |||
| Reinsurance receivables, net | 53,310,542 | 58,996,945 | |||
| Prepaid reinsurance | 1,807,102 | 2,142,329 | |||
| Deferred policy acquisition costs | 27,576,599 | 27,867,207 | |||
| Intangible assets | 500,000 | 500,000 | |||
| Property and equipment, net | 8,164,732 | 7,897,675 | |||
| Deferred income taxes, net | 5,482,371 | 4,179,559 | |||
| Other assets | 10,826,794 | 8,961,787 | |||
| Total assets | $ | 477,933,872 | $ | 453,425,151 | |
| Liabilities | |||||
| Loss and loss adjustment expense reserves | $ | 167,475,018 | $ | 140,538,618 | |
| Unearned premiums | 152,627,206 | 154,028,072 | |||
| Advance premiums | 6,142,453 | 4,003,453 | |||
| Reinsurance balances payable | 1,698,082 | 5,232,319 | |||
| Deferred ceding commission revenue | 2,830,354 | 8,362,529 | |||
| Accounts payable, accrued expenses and other liabilities | 10,018,235 | 11,253,649 | |||
| Income taxes payable | 4,181,916 | 2,835,135 | |||
| Debt, net (current $1,335,349 and long-term $2,465,799 at June 30, 2026, | |||||
| current $1,296,900 and long-term $3,143,227 at December 31, 2025) | 3,801,148 | 4,440,127 | |||
| Total liabilities | 348,774,412 | 330,693,902 | |||
| Commitments and Contingencies | |||||
| Stockholders' Equity | |||||
| Preferred stock, $0.01 par value; authorized 2,500,000 shares | — | — | |||
| Common stock, $0.01 par value; authorized 20,000,000 shares; issued 16,018,235 shares at June 30, 2026 and 15,921,651 shares at December 31, 2025; outstanding 14,474,664 shares at June 30, 2026 and 14,397,526 shares at December 31, 2025 | 160,182 | 159,216 | |||
| Capital in excess of par | 100,568,894 | 99,624,713 | |||
| Accumulated other comprehensive loss | (8,522,036) | (6,081,530) | |||
| Retained earnings | 42,812,260 | 34,596,857 | |||
| 135,019,300 | 128,299,256 | ||||
| Treasury stock, at cost, 1,543,571 shares at June 30, 2026 and 1,524,125 shares at December 31, 2025) | (5,859,840) | (5,568,007) | |||
| Total stockholders' equity | 129,159,460 | 122,731,249 | |||
| Total liabilities and stockholders' equity | $ | 477,933,872 | $ | 453,425,151 | |
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES | |||||||||||
| Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) | |||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenues | |||||||||||
| Net premiums earned | $ | 60,467,477 | $ | 46,215,260 | $ | 116,336,291 | $ | 89,738,323 | |||
| Ceding commission revenue | 1,532,966 | 3,081,556 | 2,936,842 | 6,040,247 | |||||||
| Net investment income | 3,428,729 | 2,300,267 | 6,766,310 | 4,348,863 | |||||||
| Net gains (losses) on investments | 240,345 | 546,451 | (775,002) | 408,472 | |||||||
| Gain on sale of real estate | — | — | — | 1,965,989 | |||||||
| Other income | 184,029 | 151,245 | 364,841 | 291,660 | |||||||
| Total revenues | 65,853,546 | 52,294,779 | 125,629,282 | 102,793,554 | |||||||
| Expenses | |||||||||||
| Loss and loss adjustment expenses | 23,930,497 | 17,927,162 | 69,504,881 | 45,102,240 | |||||||
| Commission expense | 11,573,138 | 10,629,629 | 21,768,550 | 19,942,509 | |||||||
| Other underwriting expenses | 8,655,155 | 7,727,367 | 17,016,428 | 15,132,789 | |||||||
| Other operating expenses | 1,362,430 | 1,153,480 | 3,622,977 | 2,189,217 | |||||||
| Depreciation and amortization | 761,473 | 613,364 | 1,476,980 | 1,237,227 | |||||||
| Interest expense | 58,808 | 77,074 | 128,663 | 304,528 | |||||||
| Total expenses | 46,341,501 | 38,128,076 | 113,518,479 | 83,908,510 | |||||||
| Income from operations before taxes | 19,512,045 | 14,166,703 | 12,110,803 | 18,885,044 | |||||||
| Income tax expense | 4,041,874 | 2,914,371 | 2,448,882 | 3,750,052 | |||||||
| Net income | 15,470,171 | 11,252,332 | 9,661,921 | 15,134,992 | |||||||
| Other comprehensive (loss) income, net of tax | |||||||||||
| Gross (increase) decrease in net unrealized losses | |||||||||||
| on available-for-sale-securities | (689,985) | 1,289,253 | (3,294,501) | 4,101,685 | |||||||
| Reclassification adjustment for net losses | |||||||||||
| included in net income | 202,328 | 4,078 | 205,251 | 5,804 | |||||||
| Net (increase) decrease in net unrealized losses | (487,657) | 1,293,331 | (3,089,250) | 4,107,489 | |||||||
| Income tax benefit (expense) related to items | |||||||||||
| of other comprehensive (loss) income | 102,408 | (271,600) | 648,744 | (862,572) | |||||||
| Other comprehensive (loss) income, net of tax | (385,249) | 1,021,731 | (2,440,506) | 3,244,917 | |||||||
| Comprehensive income | $ | 15,084,922 | $ | 12,274,063 | $ | 7,221,415 | $ | 18,379,909 | |||
| Earnings per common share: | |||||||||||
| Basic | $ | 1.07 | $ | 0.81 | $ | 0.67 | $ | 1.10 | |||
| Diluted | $ | 1.05 | $ | 0.78 | $ | 0.66 | $ | 1.07 | |||
| Weighted average common shares outstanding | |||||||||||
| Basic | 14,480,305 | 13,925,707 | 14,467,100 | 13,700,308 | |||||||
| Diluted | 14,671,627 | 14,387,538 | 14,638,799 | 14,148,748 | |||||||
| Dividends declared and paid per common share | $ | 0.05 | $ | — | $ | 0.10 | $ | – | |||
