Kingstone Q4 DPW up 14% to $82.8M; 2026 DPW Growth Guidance at 16–20%
Kingstone’s Q4 DPW rose 14% to $82.8 million, and full-year DPW grew 15% to $277.8 million, buoyed by higher average premiums and strong retention. Management reported Q4 net income of $14.8 million (EPS $1.03), GAAP combined ratio of 64.2%, ROE of 51%, and issued 2026 DPW growth and underwriting guidance.
1. Q4 Premium Growth and Profitability
In the fourth quarter direct premiums written climbed 14% to $82.8 million, supported by higher average premiums, strong retention and a 25% sequential rise in new business policies, generating net income of $14.8 million and EPS of $1.03.
2. Combined Ratio and ROE Improvements
The GAAP net combined ratio narrowed to 64.2% with an underlying loss ratio of 34.7%, underpinning an annualized ROE of 51% and reflecting a 39% DPW increase and a 30-point combined ratio improvement since 2023.
3. Quota Share Reduction and Investment Income
The quota share cession was cut from 27% to 5% by 2026, forecast to add $0.20 to EPS, while net investment income rose 55% to $3.0 million in Q4 and 44% to $9.8 million for the full year on higher portfolio yields.
4. 2026 Growth and Underwriting Guidance
Management forecast 16–20% DPW growth, a 74–76% underlying combined ratio, 7–10 catastrophe loss points, an 81–86% net combined ratio and $2.20–2.90 EPS, and plans to expand into California to diversify its footprint.