KINS Stock Up as Q4 Earnings Meet Estimates, Premiums Rise Y/Y

Kingstone Companies, Inc. KINS shares rose 21% in the last trading session as the insurer’s fourth-quarter 2024 earnings met the Zacks Consensus Estimate and revenues beat the same. Both top and bottom lines improved year over year. See the Zacks Earnings Calendar to stay ahead of market-making news.KINS posted fourth-quarter 2024 operating income of 46 per share, which met the Zacks Consensus Estimate. The bottom line improved more than threefold year over year. The insurer’s results reflected improved net investment income and higher premiums and lower expense ratio. The insurer, as expected, benefited from market dislocation in the reported quarter. Quarterly Operational Update of KINSTotal operating revenues of $42 million missed the Zacks Consensus Estimate by 2.8%. The top line rose 13.5% year over year on higher net investment income and higher premiums earned.Kingstone Companies, Inc Price, Consensus and EPS SurpriseKingstone Companies, Inc price-consensus-eps-surprise-chart | Kingstone Companies, Inc Quote Direct premiums written rose 37% year over year to $72.5 million as direct premiums written from core business increased 49.2% to $70.2 million attributable to market dislocation, partly offset by a 59.9% decline in direct premiums written from non-core business.Policies in force were 73,857 as of Dec. 31, 2024.Net premiums earned improved 25.4% year over year to $36 million.  Net investment income increased 21.3% year over year to $1.9 million.Loss and loss adjustment expenses were $17.5 million, up 7.4% year over year. Total expenses increased 8.3% year over year to $35.4 million.Underlying loss ratio improved 470 basis points year over year to 49.1%. Net loss ratio improved 810 basis points year over year to 48.7%.   Net combined ratio improved 1,100 basis points year over year to 48.7%, driven by lower frequency of large losses, no catastrophe losses, and a lower expense ratio.Adjusted EBITDA more than doubled year over year to $9.3 million.Financial UpdateKINS exited 2024 with total investments of 208.6 million, up 19.4% from 2023 end. Cash and cash equivalents of $28.7 million increased more than threefold from 2023 end. Debt balance was $11.1 million, down 25% from 2023 end.Annualized operating return on average common equity was 36.3% in 2024 versus negative 17.5% in 2023.2025 GuidanceKINS estimates core business direct premiums to grow between 15% and 25%. The combined ratio is expected between 81% and 85%. Net income is estimated between $1.75 per share and $2.15 per share. Return on equity is projected to be in the range of 25% to 35%.Zacks RankKINS currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Performance of Other InsurersThe Travelers Companies TRV reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.RLI Corp. RLI reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.W.R. Berkley Corporation’s WRB fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report Kingstone Companies, Inc (KINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks