Kingstone

Kingstone delivered the strongest year in company history in 2025. Net income more than doubled to 40.8 million dollars, diluted earnings per share jumped 95% to 2.88 dollars, and return on equity hit 43%. Their combined ratio came in at 75%, meaning they keep 25 cents of profit on every premium dollar. That is best in class for the entire insurance industry.

Kingstone is entering California in the second quarter of 2026, where the homeowners market is roughly twice the size of New York at over 15 billion dollars in annual premium. Big national carriers have retreated due to wildfire losses and regulation, leaving the door open for nimble specialty insurers. Management has set a goal of 500 million dollars in written premium by 2029, which would essentially double the company.

Even after the California launch, more than 95% of Kingstone's premium will still come from New York in 2026, and roughly 80% in 2029 under the plan. A single bad hurricane or winter storm season in the Northeast could blow up the combined ratio in one quarter. Insurance is a business where one weather event can wipe out years of profit.

California means wildfire exposure, a peril Kingstone has never underwritten before. Management is being cautious with a 30% quota share reinsurance deal and targeting lower risk areas, but new market entries always carry execution risk. If wildfire losses spike or the new product misses on pricing, this expansion could become a drag rather than a growth driver.