Kingstone Companies, Inc. reported a significant turnaround in its financial performance for the fiscal year ending December 31, 2024, achieving a net income of $18.4 million compared to a net loss of $6.2 million in the previous year. This improvement was driven by a 20.9% increase in direct written premiums, which rose to $242.0 million from $200.2 million in 2023. The company's net premiums earned also increased by 12.3%, reaching $128.5 million, reflecting a strategic focus on its core business in New York, which accounted for 96% of its direct written premiums.
The company has made notable changes in its operational strategy, particularly through its Kingstone 3.0 initiative, which aims to reduce its non-core business and enhance profitability. As part of this strategy, Kingstone withdrew from the New Jersey market, resulting in a 65% reduction in non-core policies in force. The company also adjusted its pricing strategies to stay ahead of inflation and loss trends, leading to a 31.4% increase in core business premiums. Additionally, Kingstone's combined ratio improved significantly to 80.0% from 105.3% in the previous year, indicating a return to underwriting profitability.
Operationally, Kingstone has focused on enhancing its underwriting practices and risk management. The company reported a net loss ratio of 48.7%, a substantial decrease from 72.4% in 2023, attributed to lower catastrophe losses and improved risk selection. The number of policies in force for its core business increased by 9.3%, while the non-core business saw a dramatic decline. The company also reported a decrease in loss and loss adjustment expenses, which fell to $62.6 million from $82.8 million, reflecting effective claims management and reduced exposure to catastrophic events.
Looking ahead, Kingstone anticipates continued growth in its core business, bolstered by the recent withdrawal of competitors from the New York market. The company expects to capitalize on this opportunity, projecting further increases in direct earned premiums in 2025. Kingstone's management remains focused on maintaining a disciplined approach to underwriting and expense management, aiming to sustain profitability while navigating the challenges posed by inflation and market dynamics. The company is also committed to enhancing its operational efficiency through ongoing investments in technology and strategic hiring.
About KINGSTONE COMPANIES, INC.
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