Kingstone Companies, Inc. announced a remarkable financial performance for the fourth quarter and full year of 2025, achieving record profits. During a conference call on March 6, 2026, President and Chief Executive Officer Meryl Golden revealed that the company generated a net income of $14.8 million for Q4, with diluted earnings per share reaching $1.30. For the entire year, net income more than doubled to $40.8 million, reflecting the most profitable year in the company’s history.
In a significant highlight, the company reported a diluted operating earnings per share of $1.80 and an impressive net combined ratio of 64.2% for the fourth quarter. The annualized return on equity stood at 51%. The company’s strong results were attributed to a combination of effective risk selection and improved operational efficiency.
Key Drivers of Success
Golden emphasized the pivotal factors contributing to Kingstone’s success. The company’s Select product has become a cornerstone of its strategy, with its share of policies in force increasing from 45% to 57% within a year. This product has enhanced risk selection and helped to lower claims frequency, which is critical in the competitive insurance landscape.
Moreover, the company reported a 14% growth in direct premiums written for Q4, amounting to $82.8 million. For the full year, direct premiums written rose by 15% to $277.8 million. Golden noted that the hard market conditions in New York have remained stable, with strong demand from producers bolstered by the introduction of policies from the GARD Renewable Rights Agreement in September.
Another key element of the company’s strategy has been its focus on operating efficiency. The net expense ratio improved significantly, dropping from 41% in 2021 to 30% in 2025. Golden stated that the company will maintain its disciplined approach, prioritizing underwriting standards over volume growth.
Looking Ahead: Expansion into California
Looking forward, Kingstone Companies plans to enter the California market in 2026, marking a strategic expansion into one of the largest homeowners’ markets in the United States. Golden highlighted that California’s homeowners’ market, valued at $15 billion, offers significant growth potential, particularly as the supply-demand imbalance for homeowners coverage continues to grow.
The company will utilize an excess and surplus (E&S) lines approach to navigate California’s unique risks, particularly related to wildfire exposure. Golden stated, “We will start small, consistent with our disciplined approach, and scale as we gain confidence in our pricing and product.” The initial contribution from California is expected to be modest, representing less than 5% of the company’s premium in 2026.
In terms of financial outlook, Kingstone has introduced a new metric for 2026, the underlying combined ratio, which will exclude catastrophe losses and prior-year reserve development. This shift aims to provide investors with a clearer operational view. The company’s underlying combined ratio for 2025 was 74.4%, with guidance for 2026 set between 74% and 76%.
Golden expressed confidence in the company’s strategic direction and the effectiveness of its business model, stating that the results reflect the durable competitive advantages built in underwriting, producer relationships, and operational efficiency. The company plans to continue prioritizing profitable growth while maintaining a strong capital position.
The call concluded with Golden reaffirming the company’s commitment to creating long-term shareholder value, and as interest in the California market grows, Kingstone Companies is poised to leverage its strengths to capitalize on new opportunities.