KINS Stock Up as Q4 Earnings Meet Estimates, Premiums Rise Y/Y

Core Insights - Kingstone Companies, Inc. (KINS) shares increased by 21% following the release of its fourth-quarter 2024 earnings, which met the Zacks Consensus Estimate for operating income and exceeded revenue expectations [1][2] Financial Performance - KINS reported fourth-quarter 2024 operating income of $0.46 per share, reflecting a more than threefold year-over-year improvement [2] - Total operating revenues reached$42 million, which was 2.8% below the Zacks Consensus Estimate but represented a 13.5% increase year over year [3] - Direct premiums written surged by 37% year over year to $72.5 million, with core business premiums increasing by 49.2$70.2 million, driven by market dislocation [3] Operational Metrics - Policies in force totaled 73,857 as of December 31, 2024 [4] - Net premiums earned improved by 25.4% year over year to $36 million [4] - Net investment income rose by 21.3$1.9 million [4] - The underlying loss ratio improved by 470 basis points year over year to 49.1%, while the net loss ratio improved by 810 basis points to 48.7% [4] Expense and Profitability Metrics - Total expenses increased by 8.3% year over year to $35.4 million, with loss and loss adjustment expenses rising by 7.4$17.5 million [4] - The net combined ratio improved by 1,100 basis points year over year to 48.7%, attributed to a lower frequency of large losses and a reduced expense ratio [5] - Adjusted EBITDA more than doubled year over year to $9.3 million [5] Financial Position - KINS ended 2024 with total investments of$208.6 million, a 19.4% increase from the end of 2023 [6] - Cash and cash equivalents rose to $28.7 million, more than tripling from the end of 2023 [6] - The debt balance decreased by 25$11.1 million [6] - The annualized operating return on average common equity was 36.3% in 2024, compared to negative 17.5% in 2023 [6] Future Guidance - KINS anticipates core business direct premiums to grow between 15% and 25% in 2025 [7] - The combined ratio is expected to range between 81% and 85% [7] - Net income is projected to be between $1.75 and$2.15 per share, with return on equity estimated between 25% and 35% [7] Market Position - KINS currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [9]