Kingstone Returns to Profitability: Can It Retain the Momentum?

Homeowner insurer Kingstone Companies, Inc. KINS has made significant improvements in its net margin. After three consecutive years of losses, Kingstone returned to profitability in 2024. Last year, net margin showed an improvement of 1610 basis points that continued into the first quarter of 2025, wherein net margin improved 1210 basis points. 

The insurer’s continued focus on strengthening its core operations, along with its exit from underperforming and non-core segments, has been instrumental in driving margin improvement. It maintains strict underwriting discipline, accepting only business that meets its defined risk and profitability criteria.

Kingstone Companies noted that the commercial insurance market in Northeastern U.S. is estimated to grow 12.3% through 2025. Thus, with multiple competitors withdrawing from the national personal property insurance segment last year, Kingstone is well-positioned to capitalize on this market shift by expanding its footprint.
Disciplined underwriting and sound risk selection, combined with targeted cost-reduction efforts, have significantly lowered KINS’ expense ratio. 

Continued investment in technology is further driving operational efficiency, with automation and AI-powered tools helping streamline workflows and cut costs. Strategic initiatives—including the shift to the WaterStreet Platform, alliances with Kyber Technologies and a partnership with Earnix—have advanced the company’s digital transformation.

 These efforts, alongside strong underwriting practices, effective risk management, and advantageous market dislocation, should help KINS sustain margin growth.

A solid margin improvement is reflected in its solid financial position.  Cash and cash equivalents improved 30.7% at first-quarter end. The debt balance dropped 52% at the end of the first quarter. Its leverage compares favorably with the industry average.

What About KINS’ Competitors?

KINS closely competes with Kinsale Capital Group KNSL and United Fire Group, Inc. UFCS. Both these insurers have been showing margin improvement over the years.

Kinsale Capital has steadily delivered margin improvement by focusing on the U.S. excess and surplus (E&S) lines market, specifically targeting small to mid-sized accounts that command higher pricing and encounter less competition. KINS’ proprietary technology platform helps maintain a competitive edge over industry peers.

UFCS’ margin gains are driven by selective risk-taking, stable retention rates, increased new business, and growing returns from its expanding fixed income portfolio. Continued investment in technology to optimize operations, strengthen data analytics, and elevate customer experience is expected to reinforce UFCS’ long-term growth trajectory.

KINS Price Performance

Shares of KINS have gained 3.6% year to date, underperforming the industry. 

KINS’ Expensive Valuation

KINS trades at a price-to-book value ratio of 2.63, above the industry average of 1.61. But it carries a Value Score of A.

Estimates for KINS Witness No Movement

The Zacks Consensus Estimate for KINS’ 2025 and 2026 earnings witnessed no movement in the last 30 days. 

Yet, the consensus estimates for KINS’ 2025 and 2026 revenues and EPS indicate a year-over-year increase. The company has a Growth Score of A. 

KINS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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