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Kingstone Companies KINS shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 3.48X is higher than the industry average of 1.58X.
The company has a Value Score of A. This style score helps find the most attractive value stocks. Back-tested results have shown that stocks with a Growth Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer better returns.
Kingstone Companies is the 12th largest homeowner insurer in New York, as accredited by the S&P, with a market share of 2.1% in 2024. It has a market capitalization of $232.3 million. The average volume of shares traded in the last three months was 0.4 million.
Image Source: Zacks Investment Research
Shares of other insurers like Kinsale Capital KNSL and Heritage Insurance Holdings HRTG are also trading at a multiple higher than the industry average.
KINS’ Price Performance
KINS shares have underperformed the industry year to date but outperformed the Finance sector as well as the Zacks S&P 500 composite index in the same time frame.
KINS vs Industry, Sector & S&P 500 Year to Date
Image Source: Zacks Investment Research
Optimistic Growth Estimate
The Zacks Consensus Estimate for 2025 earnings stands at $1.90, suggesting an increase of 31% on 37.9% higher revenues of $214 million. The consensus estimate for 2026 earnings stands at $2.45, suggesting an increase of 29% on 11.4% higher revenues of $238.4 million.
The company has a Growth Score of A.
KINS expects 2025 earnings per share between $1.75 and $2.15.
Factors in Favor of Kingstone
Kingstone Companies noted that the commercial insurance market in Northeastern U.S. is estimated to grow by 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.
Despite this growth potential, Kingstone remains reliant on a narrow set of insurance lines, which exposes it to both geographic and product concentration risks.
Kingstone is pursuing a focused growth strategy, emphasizing its core business while exiting underperforming, non-core segments. The insurer follows strict underwriting standards, accepting only business that meets its profitability and risk thresholds.
To stay ahead of inflation, Kingstone has successfully implemented pricing increases that align premiums with risk levels. Its partnership with Earnix has enhanced its pricing sophistication, reinforcing the company’s strategic growth efforts.
In 2025, Kingstone expects direct written premiums in its core business to grow between 15% and 25%. It has also made progress in reducing its net underwriting expense ratio by boosting average premiums and cutting commissions and staffing expenses.
A strong reinsurance program shields Kingstone’s balance sheet, and the company now forecasts an improved combined ratio of 81% to 85% in 2025. Its financial position has also strengthened, with higher cash reserves and no debt.
Kingstone's profitability has seen significant improvement, with net margin increasing by 2,910 basis points over the past two years. This rebound has been driven by disciplined underwriting, sound risk management, and market dislocation. After three consecutive years of losses, Kingstone returned to profitability in 2024.