Kingstone Companies (NASDAQ:KINS) shares surged after the regional insurer posted its most profitable fourth quarter and full year in history, fueled by a sharp reduction in its combined ratio and robust premium growth.
The Kingston, New York-based property and casualty insurer reported preliminary fourth-quarter operating net income between $1.03 and $1.08 per diluted share, more than doubling the $0.46 reported in the same period a year ago.
The standout figure was the company's GAAP net combined ratio, which improved to a range of 64% to 66%—a significant drop from 79% last year—indicating exceptional underwriting profitability.
Direct premiums written for the quarter rose 14% to $83 million, as the company continued to gain market share in the Northeast.
For the full year 2025, Kingstone delivered record results that surpassed its own upwardly revised guidance.
Annual direct premiums reached $278 million, a 15% increase, while the full-year return on equity (ROE) landed between 41% and 43%.
CEO Meryl Golden attributed the performance to the success of the company’s "Select" product, which now accounts for 57% of policies in force.
The shift toward higher-quality risk selection, combined with a benign catastrophe season and faster claims processing, has transformed the insurer’s margin profile.