Kingstone Companies, Inc. (NASDAQ: KINS)

Kingstone Companies, Inc. is a multi-line regional property and casualty insurance company operating primarily through its wholly-owned subsidiary, Kingstone Insurance Company (KICO). KICO provides personal and commercial insurance products to customers in New York and several other northeastern states. The company focuses on writing homeowners, dwelling fire, renters, cooperative/condominium, personal umbrella, and livery physical damage policies. It also maintains a small presence in canine legal liability and state joint underwriting associations. Kingstone Companies, Inc. generates revenue through earned premiums from insurance policies, ceding commissions from quota share reinsurance treaties, net investment income from its investment portfolio, and net realized gains and losses on investment securities. Additional revenue comes from policy fees such as installment, reinstatement, and non-sufficient fund fees. The holding company earns investment income from its cash holdings. The company operates through two main business segments: the insurance underwriting segment conducted by KICO and the general agency segment conducted by Cosi Agency, Inc. (Cosi).

• The insurance underwriting segment involves KICO writing property and casualty insurance policies through appointed retail and wholesale agents and brokers. This segment includes underwriting, claims processing, and investment activities related to the insurance business. KICO earns revenue from earned premiums, ceding commissions, investment income, and policy fees. The segment’s performance is measured using the combined ratio, which reflects underwriting profitability before investment income.

• The general agency segment is operated by Cosi, a multi-state licensed general agency. Cosi places policies with other insurance carriers on behalf of producers and receives commission revenue from KICO for those placements. It pays commissions to the agencies that place the business and retains the difference as net revenue. Cosi-related operating expenses are separate from the insurance underwriting business and are not included in the combined ratio calculation for KICO’s standalone underwriting operations.

Kingstone Companies, Inc. holds a competitive position in the regional property and casualty insurance market, particularly in downstate New York. The company benefits from a long operating history, with KICO having been in business since 1886. Its competitive advantages include strong producer relationships, sophisticated underwriting and pricing models, effective use of reinsurance to manage risk, and scalable low-cost operations supported by a remote workforce and digital tools. The company targets niche markets where it has expertise and avoids competing primarily on price. Instead, it emphasizes consistent service, broad underwriting appetite, and competitive commission structures to attract and retain producers. Key competitors include other regional and national property and casualty insurers operating in the same geographic areas, particularly those that have recently withdrawn from admitted personal lines business in New York, creating opportunities for Kingstone to expand its footprint.

Kingstone Companies, Inc. serves individual policyholders and small businesses through its network of over 700 appointed producers, including retail and wholesale agents and brokers. The company does not sell policies directly to consumers. Its policyholders are primarily located in the downstate regions of New York State, with a growing presence in other northeastern states such as Connecticut, Maine, Massachusetts, New Hampshire, Pennsylvania, and Rhode Island. The company has also announced plans to expand into California on an excess and surplus lines basis starting in the second quarter of 2026. The customer base consists of individuals seeking homeowners, renters, dwelling fire, and personal umbrella coverage, as well as livery and car service operators requiring physical damage insurance for for-hire vehicles.