Kingstone Companies Inc (KINS) 2025 Q3 法說會逐字稿

Greetings. Welcome to Kingstone Company's 3rd quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. As a reminder, this conference is being recorded. Joining us on today's call will be President and Chief Executive Officer Merrill Golden and Chief Financial Officer Randy Patton.

問候。歡迎參加金石公司2025年第三季財報電話會議。目前，所有參與者均處於唯讀模式。正式演講結束後將進行簡短的問答環節。會議期間如有任何需要接線員協助，請按下電話鍵盤上的 0。再次提醒，本次會議正在錄影。今天參加電話會議的有總裁兼執行長梅里爾·戈爾登和財務長蘭迪·帕頓。

On behalf of the company, I would like to note that this conference call may include forward-looking statements which involve known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from projected results. Forward-looking statements speak only as of the date on which they are made, and Kingstone undertakes no obligation to update the information discussed. For more information, please refer to section entitled Risk factors.

我謹代表本公司指出，本次電話會議可能包含前瞻性陳述，這些陳述涉及已知和未知的風險和不確定性以及其他因素，這些因素可能導致實際結果與預期結果有重大差異。前瞻性陳述僅代表其作出之日的觀點，金石公司不承擔更新所討論資訊的義務。更多資訊請參閱「風險因素」部分。

In Part 1, item 1A of the company's latest Form 10k. Additionally, today's remarks may include references to non-GAAP measures. For reconciliation of our non-GAAP measures to GAAP figures, please see the tables in the latest earnings release available on the company's website at www.kingstonecompanies.com. With that, it is my pleasure to turn the call over to Merrill Golden. Merrill.

公司最新 10-K 表格第 1 部分第 1A 項。此外，今天的演講可能涉及非GAAP指標。有關我們的非 GAAP 指標與 GAAP 數據的調節情況，請參閱公司網站 www.kingstonecompanies.com 上發布的最新收益報告中的表格。接下來，我很高興將電話轉交給梅里爾·戈爾登。美林。

Thank you. Good morning, everyone, and thanks for joining us.

謝謝。各位早安，感謝各位的收看。

We delivered one of the strongest quarters in our history with net income of $10.9 million, diluted earnings per share of $0.74, a GAAP combined ratio of 72.7%, and an annualized return on equity of 43%. Direct written premium grew 14% and net investment income increased 52%.

我們取得了公司史上最強勁的季度業績之一，淨收入達 1,090 萬美元，稀釋後每股收益為 0.74 美元，GAAP 綜合比率為 72.7%，年化股本回報率為 43%。直接承保保費增加了 14%，淨投資收益成長了 52%。

This was our second most profitable quarter in history and our 8th consecutive quarter of profitability, underscoring the consistency and enduring competitive advantages we have created.

這是我們歷史上獲利第二高的季度，也是我們連續第八個季度獲利，凸顯了我們所創造的穩定性和持久的競爭優勢。

I want to emphasize what sets Kingstone apart. First, our select product does a great job matching rate to risk and with risk selection, which reduces claim frequency over time.

我想強調一下金斯頓的獨特之處。首先，我們的精選產品在將賠付率與風險和風險選擇相匹配方面表現出色，從而隨著時間的推移降低了索賠頻率。

Second, our producer relationships support high retention and consistent new business flow.

其次，我們與生產商的良好關係有助於提高客戶留存率和持續的新業務成長。

Third, our efficient operations and low expense structure enhance margin durability, and last, our great team, all of whom act with an ownership mentality.

第三，我們高效率的營運和低成本結構提高了利潤率的穩定性；最後，我們擁有一支優秀的團隊，所有成員都以主人翁精神行事。

The hard market conditions in our downstate New York footprint have not changed materially. While we've seen some competitors broaden their underwriting appetites, our overall volume remains strong. New businesses quarter has moderated compared to last year's surge when we benefited from the market exits of Adirondack and Mountain Valley, but we've seen a month over month increase in new business since June, and that has continued into the 4th quarter.

我們在紐約州南部地區的嚴峻市場環境並沒有實質變化。儘管我們看到一些競爭對手擴大了承保範圍，但我們的整體業務量仍然強勁。與去年因 Adirondack 和 Mountain Valley 退出市場而受益的激增相比，今年的新業務季度有所放緩，但自 6 月以來，我們看到新業務逐月增長，並且這種增長勢頭一直延續到第四季度。

We've also begun writing policies under our renewal rights agreement with GAR, which will meaningfully add to new business policy counts going forward.

我們也開始根據與 GAR 的續保權協議制定保單，這將顯著增加未來新增業務保單的數量。

Growth of 14% for the quarter was driven primarily by an average premium increase of 13% and improved retention.

本季成長 14%，主要得益於平均保費成長 13% 和客戶留存率提高。

Looking ahead, we expect retention, which represents over 80% of our premium base, to continue trending higher as rate changes transition to high single-digits from the high 10s pace of the past three years.

展望未來，我們預計保費續保率（占我們保費基礎的 80% 以上）將繼續呈上升趨勢，因為費率變化將從過去三年接近 10% 的速度過渡到接近個位數的速度。

Policies in force increased 4.2% year over year and 1.4% sequentially, underscoring the stability and loyalty of our agents and customer base.

有效保單數量年增 4.2%，季增 1.4%，凸顯了我們代理商和客戶群的穩定性和忠誠度。

Net earned premium growth continues to be a powerful tailwind, exceeding 40% for the third consecutive quarter.

淨保費收入成長持續強勁，連續第三個季度超過 40%。

The increase is primarily due to our reduced quota share, which allows us to retain a greater share of premiums and underwriting profits. Additionally, the surge in new business written in the second half of last year continues to earn in, further fueling the growth in earned premiums.

此次成長主要是由於我們減少了配額份額，這使我們能夠保留更大比例的保費和承保利潤。此外，去年下半年新業務的激增仍在持續，進一步推動了已賺保費的成長。

On underwriting, our underlying loss ratio was 44.1%, an increase of 4.9% points versus the prior year quarter, driven by higher claim severity. Claim frequency, especially for non-weather, water, and fire, our largest perils, declined versus last year, a trend we have shared previously. We believe this is driven by a mixed shift to more preferred risks in our select products.

在核保方面，我們的基本損失率為 44.1%，比去年同期增加了 4.9 個百分點，主要原因是索賠嚴重程度增加。索賠頻率，尤其是非天氣、水災和火災（我們最大的風險）的索賠頻率，與去年相比有所下降，我們之前也分享過這一趨勢。我們認為這是由於我們精選產品中風險偏好的混合轉變所致。

The Select Homeowners Program now represents 54% of policies enforced and on an inception to date basis, select homeowners' claim frequency is 31% lower than our legacy product.

精選房主計畫目前佔已執行保單的 54%，從該計畫啟動至今，精選房主的索賠頻率比我們傳統的保險產品低 31%。

During the quarter, large losses were modestly higher than the prior year's unusually favorable experience, but remained consistent with the prior three years otherwise. Year-to-date, our underlying loss ratio is up only 0.1% points from the prior year. The variability in large losses is random and does not indicate a change in trend.

本季，巨額虧損略高於上年異常有利的業績，但與前三年基本持平。今年迄今為止，我們的基礎損失率僅比去年同期上升了0.1個百分點。大額損失的波動是隨機的，並不表示趨勢發生了變化。

Catastrophe losses contributed 0.2% points to the loss ratio compared with 1.7% points in the prior year quarter. While catastrophe activity was light, our strong results aren't solely driven by favorable weather. With a normalized third quarter catastrophe load, our combined ratio would have been in the low 80s.

災害損失對損失率的貢獻率為 0.2 個百分點，而去年同期為 1.7 個百分點。雖然災害活動較少，但我們取得的優異成績並非完全得益於有利的天氣。如果第三季災害損失以正常水準計算，我們的綜合比率將達到 80% 左右。

Our state expansion initiative is progressing, and we intend to present Kingstone's multi-year roadmap to you in the first half of next year.

我們的州擴張計畫正在推進，我們打算在明年上半年向您介紹金斯頓的多年發展路線圖。

With three quarters behind us, we've updated our 2025 guidance to reflect our outstanding performance. We are raising guidance for our net combined ratio, EPS and ROE while reaffirming direct written premium growth for all states to range between 12% and 17%. With anticipated net earned premiums of $187 million.

過去三個季度已經過去，我們更新了 2025 年的業績預期，以反映我們出色的表現。我們提高了對淨綜合比率、每股盈餘和淨資產收益率的預期，同時重申所有州的直接承保保費成長將在 12% 至 17% 之間。預計淨已賺保費為 1.87 億美元。

We expect a GAAP net combined ratio between 78 and 82.

我們預計 GAAP 淨綜合比率在 78 到 82 之間。

Basic earnings per share between 230 and 270.

每股基本收益在 230 至 270 之間。

Diluted earnings per share between 220 and 260 and return on equity between 35 and 39%.

稀釋後每股收益在 220 至 260 之間，股本回報率在 35% 至 39% 之間。

Relative to our prior guidance and on the same net earned premium base, we've improved our GAAP combined ratio range by 100 basis points at the midpoint, raised both basic and diluted EPS ranges by 9% and 12% respectively, and increased our ROE target range by roughly 300 basis points at the midpoint.

相對於我們先前的指引，在相同的淨已賺保費基數下，我們將 GAAP 綜合比率範圍的中點提高了 100 個基點，將基本每股收益和稀釋每股收益範圍分別提高了 9% 和 12%，並將 ROE 目標範圍的中點提高了約 300 個基點。

This increased guidance reflects strong underwriting performance, sustained investment income growth, and lower expenses while maintaining our disciplined posture on pricing and exposure management.

這項上調的業績指引反映了強勁的承保業績、持續的投資收益成長以及較低的費用，同時我們在定價和風險敞口管理方面保持了嚴謹的態度。

With regard to fiscal '26 guidance, our baseline assumes normal seasonality and catastrophe activity.

關於 2026 財年的業績指引，我們的基準假設是正常的季節性變化和災害活動。

In both 2024 and 2025 we had very mild winters and low cat losses overall.

2024 年和 2025 年的冬季都非常溫和，貓的整體死亡率也很低。

Weather is unpredictable, and we assumed more a reversion to the mean for our 26 guidance. We will refine our outlook as the year unfolds and moving forward, will announce subsequent year's guidance in March along with fourth quarter results.

天氣變化無常，我們在 26 天的指導中更假設天氣會回歸均值。我們將隨著時間的推移不斷完善我們的展望，並於明年3月公佈下一年度的業績指引以及第四季的業績報告。

Now, I'll turn the call over to Randy Patton, our Chief Financial Officer who joined Kingstone in late August. Randy brings 3 decades of insurance experience, most recently serving as Chief Accounting Officer and treasurer at Next Insurance. Randy.

現在，我將把電話交給我們的財務長蘭迪·帕頓，他於八月下旬加入金石公司。Randy擁有30年的保險從業經驗，最近擔任Next Insurance的首席會計官兼財務長。蘭迪。

Thank you, Marilyn. Good morning again everyone. Q3 was our most profitable third quarter on record in our eighth consecutive quarter of profitability. We generated net income of $10.9 million diluted earnings per share of $0.74, a 72.7% combined ratio, and an annualized return on equity of 43%.

謝謝你，瑪麗蓮。各位早安。第三季度是我們有史以來獲利最高的第三季度，也是我們連續第八個季度獲利。我們實現了淨收入 1,090 萬美元，稀釋後每股收益 0.74 美元，綜合比率為 72.7%，年化股本回報率為 43%。

Year-to-date, net income was $26 million more than double the prior year.

今年迄今為止，淨收入為 2,600 萬美元，比去年同期成長了一倍多。

Performance was driven by strong net earned premium growth as a reduced quota share in the second half of 2024 new business surge continued to earn in combined with very low catastrophe losses, favorable frequency trends, and lower expenses aided by an adjustment to the sliding scale seating commissions.

業績成長主要得益於淨已賺保費的強勁成長，2024 年下半年配額份額減少，新業務激增持續盈利，再加上巨災損失極低、頻率趨勢有利以及因調整階梯式座位佣金而導致的費用降低。

Our net investment income for the quarter jumped 52% to $2.5 million, up from $1.7 million last year. Year-to-date, we've seen a 39% increase reaching $6.8 million. The momentum is due to robust cash generation from operations, which has enabled us to grow our portfolio and benefit from higher fixed income yields.

本季我們的淨投資收益成長了 52%，達到 250 萬美元，高於去年的 170 萬美元。今年迄今為止，我們看到成長了 39%，達到 680 萬美元。這一成長勢頭得益於營運產生的強勁現金流，這使我們能夠擴大投資組合併從更高的固定收益中受益。

We capitalize on attracting new money yields of 5.2% in the third quarter.

我們利用第三季 5.2% 的新增資金收益率獲利。

While we remain conservative in our investment strategy, we are actively seeking opportunities to enhance our portfolio's yield and duration. As of September 30th, 2025, our fixed income yield is 4.03%, with an effective duration of 4.4 years, up from 3.39% and 3.7 years at September 30th, 2024, an increase of 64 basis points and 0.7 years respectively.

儘管我們的投資策略仍然保守，但我們正在積極尋找機會來提高我們投資組合的收益率和久期。截至 2025 年 9 月 30 日，我們的固定收益收益率為 4.03%，有效久期為 4.4 年，高於 2024 年 9 月 30 日的 3.39% 和 3.7 年，分別增長了 64 個基點和 0.7 年。

During the quarter we recognized an increase of $1.4 million in sliding scale contingent seating commissions under our quarter share treaty, reflecting low catastrophe losses which contribute to the 4.6% point decrease in the quarter's expense ratio. 2025 marks the first period in some time in which a significant portion of the quarter's share seating commission is on a sliding scale basis.

本季度，根據我們的季度分成協議，我們確認了按比例遞增的或有座位佣金增加了 140 萬美元，這反映了巨災損失較低，也使得本季的費用率下降了 4.6 個百分點。2025 年是近年來首次出現季度股份席次佣金很大一部分採用階梯式收費方式的情況。

While sliding scale seeding commission for the attritional loss ratios look quarterly, sliding scale seeding commission for the catastrophe loss ratio could be reasonably estimated until after the peak of the hurricane season, so it's recognized this quarter. As a result of this adjustment, our year-to-date expense ratio is down 1.1% points to 30.8 versus the same period in 2024, and we anticipate ending the year with an expense ratio for the full year 2025, lower than the prior year.

雖然損耗率的滑動比例種子佣金看起來是按季度計算的，但災害損失率的滑動比例種子佣金可以在颶風季高峰期之後才能合理估算，因此本季度予以確認。由於這項調整，我們今年迄今的費用率比 2024 年同期下降了 1.1 個百分點，至 30.8，我們預計 2025 年全年的費用率將低於上一年。

I will conclude my portion of the call today discussing our capital position. Our capital position remains strong. We have no debt at our holding company Kins, and shareholders' equity exceeded $107 million an increase of 80% year over year.

今天，我將以討論我們的資本狀況作為我本次電話會議的最後部分。我們的資本狀況依然穩健。我們的控股公司 Kins 沒有債務，股東權益超過 1.07 億美元，年增 80%。

Year-to-date, return on equity is 39.8%, an increase of 3% points from the same period last year.

今年迄今為止，股本回報率為 39.8%，比去年同期增長了 3 個百分點。

Given this foundation and our outlook, we reinate our quarterly dividend during the quarter and have ample capital to fund disciplined growth.

基於此基礎和我們的前景，我們決定在本季恢復季度分紅，並擁有充足的資金來支持穩健成長。

With that, I'll open it up for questions. Operator.

接下來，我將開放提問環節。操作員。

(Operator instruction)

（操作說明）

Bob Farnham with Jenny Montgomery Scott.

鮑伯·法納姆和珍妮·蒙哥馬利·斯科特。

Yeah, hey there, good morning, so.

是的，嘿，早安。

On your New York admitted basis, it's the select product now is 54% of the policies enforced.

根據紐約州的規定，目前該產品是精選產品，佔已執行保單的 54%。

Will all accounts eventually move to select or or some just renew on the legacy products indefinitely?

所有帳戶最終都會移轉到 Select 版本，還是部分帳戶會無限期地續訂舊版本？

Yeah, so we are maintaining our legacy book because it's profitable, so any policy written in legacy will stay there, but clearly when it gets to be small enough we'll probably convert it to select, but we don't want our customers to experience that dislocation because it's profitable so we don't have any plan to do that in the near term.

是的，我們保留了原有的保險業務，因為它有利可圖，所以任何以原有方式製定的保單都會保留在那裡。但顯然，當保單規模足夠小時，我們可能會將其轉換為精選業務。但我們不希望客戶感受到這種不便，因為它有利可圖，所以我們近期沒有任何計劃這樣做。

Okay, so, but all new business is that put on the select platform?

好的，那麼所有新業務都會放到精選平台上嗎？

Yes, all new business has been written in select since the beginning of 2022.

是的，自 2022 年初以來，所有新業務都已在 Select 中記錄。

Right, okay.

好的。

So when you're getting into the new states on an axis and surplus lines basic, I, I'm assuming this is going to be a new product, so because it's ENS rather than admitted, so how is this product going to differ from select And how are you developing it?

所以，當您進入新的州，沿著軸線和剩餘線路基本線時，我假設這將是一個新產品，因為它是 ENS 而不是已承認的，那麼該產品將如何與精選產品不同？您是如何開發它的？

Yes, so we are certainly going to benefit from the select product and the experience we've had. But depending on the states we enter, there may be new perils or new rating variables that we'll need to account for, and we're currently deep in the development of that product as we speak, and we've been working with an outside actuarial consulting firm, the same firm that helped us develop the select product for New York. So, again, we're deep into it and feel really good about how we'll, what the outcome will be.

是的，所以我們肯定會從精選產品和我們已有的經驗中受益。但根據我們進入的州，可能會出現新的風險或新的評級變量，我們需要考慮這些因素。目前，我們正在深入開發該產品，並且一直在與外部精算諮詢公司合作，這家公司也曾幫助我們為紐約開發精選產品。所以，我們已經深入其中，並且對結果感到非常滿意。

And has the has the new ENF carrier been finally been approved yet?

新的ENF載體最終獲得批准了嗎？

So, we are filing, we have filed for a new company in Connecticut. It has not yet been approved and we will be writing on an ENS basis as in Kingstone Insurance Company as well in certain states.

所以，我們已經在康乃狄克州提交了新公司的申請。目前尚未獲得批准，我們將像金斯頓保險公司一樣，在某些州以 ENS 方式承保。

Okay.

好的。

A little change in direction, so.

稍微改變一下方向。

I know it's only been 2 months, but the Amguard book.

我知道才過了兩個月，但Amguard這本書。

You started writing at the beginning of September, so how has that performed thus far relative to expectations, not performed in terms of profitability, but in terms of having policies move over to Kingstown.

您從九月初開始撰寫，那麼到目前為止，相對於預期，其表現如何？不是指獲利能力，而是指政策轉移到金斯敦的情況。

Yes, so it's early on. We started writing business effective September 1st, but so far, it's right within our expectations. So I had indicated that we'd write between $25 and $35 million of business over a three-year period and we're right on track. We're writing about a little bit less than a million dollars a month so far. And what I can tell you is we're very happy with the mix that we're seeing. It's very similar to what we've achieved in select. However, we're, writing a bit more business in the boroughs, and that is giving us, some geographic diversification. So we're happy with that. So far everything is right on track.

是的，現在還處於早期階段。我們從9月1日開始正式開展業務，但到目前為止，一切都在預期之內。所以我曾表示，我們將在三年內完成 2,500 萬至 3,500 萬美元的業務，而我們目前正按計畫進行。目前我們每個月的營業額略低於一百萬美元。我可以告訴大家的是，我們對目前看到的這種組合非常滿意。這和我們在 Select 中取得的成就非常相似。不過，我們在各區開展了一些業務，這為我們帶來了一些地理上的多元化。我們對此很滿意。目前一切進展順利。

Okay, and one of the bigger questions I always get is just the the competition in downstate New York. Now you said that some companies are expanding their.

好的，我常被問到的一個比較大的問題就是紐約州南部地區的競爭情況。您剛才提到一些公司正在擴張。

Their their target areas, how can you give us any more colors to to how competitors are are going into that environment?

他們的目標領域，你如何更詳細地說明競爭對手是如何進入該領域的？

Yes, so, we compete with mostly MGAs in New York and last year at this time when, there was this surge of business from the Adirondack and Mountain Valley, a lot of companies stopped writing business and throughout this year they've just been opening up and writing more classes of business than they've written in the past, but it's not stopping us. Our growth is very healthy. And as I mentioned, every month since June we've seen a sequential increase in our new business. So again, the way they're expanding is it's not always obvious to us, but our conversion rate remains really high, so we feel good about where we're at competitively.

是的，我們主要與紐約的MGA（管理總代理）競爭。去年這個時候，阿迪朗達克山脈和山谷地區的業務激增，許多公司停止承保業務。而今年，他們一直在重新開業，承保的業務類型也比以往更多，但這並沒有阻止我們。我們的發展狀況非常健康。正如我之前提到的，自六月以來，我們的新業務每個月都在持續成長。所以，他們的擴張方式我們並不總是能察覺到，但我們的轉換率仍然很高，所以我們對自己的競爭地位感到滿意。

Right, okay, thanks for the color.

好的，謝謝你提供的顏色。

That's it for me. My pleasure.

就這些了。我的榮幸。

Gabriel McCre with Private Investor.

Gabriel McCre 與私人投資者合作。

Good morning, Merrill.

早上好，梅里爾。

Hi Gabe.

嗨，蓋布。

Congrats on a great quarter and also please thank whoever put the PDF in place for us, that's very helpful.

恭喜你們本季取得了優異的成績，也請代我感謝為我們製作 PDF 檔案的人，這非常有幫助。

I have one question. Yeah, I had one question for you. I think maybe a couple of months ago at the.

我有一個問題。是的，我有個問題想問你。我想大概是幾個月前吧。

Poddoty conference or somewhere you mentioned that these states are looking at expanding into You kind of described it as there being more demand for our policies that we'd offer on a homeowner's policy that we'd offer on an ENS basis than than there was supply.

在 Poddoty 會議或其他場合，您提到這些州正在考慮擴大業務範圍。您將其描述為，對我們提供的房屋保險（以 ENS 為基礎）的需求大於供應。

And so just my question is you know it was a couple of months ago is the market still that way? Has it changed or whatever you could offer up.

所以我的問題是，你知道，那是幾個月前的事了，現在市場還是那樣嗎？情況有變化嗎？或者您還有什麼其他建議嗎？

Sure, so the.

當然，就是這樣。

The homeowners market, particularly catastrophe exposed homeowners nationally, is in a bit of a crisis and because companies are not making money and so we do have an opportunity to expand geographically and be opportunistic so that we can have, earn the same return that we are in New York. So nothing is really, in a quarter markets don't change much, so, we have not seen a material change in the market and I believe the opportunity still exists for us to expand successfully.

房主市場，特別是全國範圍內遭受災害的房主市場，正處於某種危機之中，因為公司無法盈利，所以我們有機會在地域上擴張，抓住機會，從而獲得與我們在紐約一樣的回報。所以實際上什麼都沒有，一個季度內市場變化不大，因此，我們沒有看到市場發生實質變化，我相信我們仍然有機會成功擴張。

Okay, great.

好的，太好了。

Thank you.

謝謝。

My pleasure.

我的榮幸。

There are no further questions at this time. I would like to turn the conference back over to Merrill for closing remarks.

目前沒有其他問題了。我謹將會議交還給梅里爾，請他作閉幕致詞。

Excellent.

出色的。

Thank you for joining today. As we wrap up, I'd like to reemphasize what continues to set Kingstone apart, our select product, our producer relationships, our low expense structure, and our great team. This quarter's results reinforce the durability of Our earnings power. We will continue to execute with discipline, advance our measured expansion roadmap, and allocate capital prudently to support profitable growth. We appreciate your continued support and remain focused on delivering long-term shareholder value. Have a great day.

感謝您今天的參與。最後，我想再次強調金石公司與眾不同的地方：我們精選的產品、我們與生產商的良好關係、我們低成本的營運模式以及我們優秀的團隊。本季的業績進一步鞏固了我們獲利能力的持久性。我們將繼續嚴謹執行，推進穩步擴張計劃，謹慎分配資金以支持獲利成長。感謝您一直以來的支持，我們將持續致力於為股東創造長期價值。祝你有美好的一天。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路了，感謝您的參與。