Kingstone Companies, Inc. Announces Strategic Sale of Headquarters in Kingston, NY
In a significant move following its record-breaking performance in 2024, Kingstone Companies, Inc., a prominent property and casualty insurance holding company based in the Northeast, has confirmed the sale of its headquarters building located in Kingston, New York. This strategic decision aligns with the company’s commitment to adapting its operational model in response to evolving workforce trends.
Sale Details and Financial Impact
The buyer, Ulster County, has agreed to purchase the Joys Lane property for $3.6 million. This transaction includes a spacious 17,000-square-foot office building along with an adjacent duplex. The location is strategically positioned near the Ulster County Courthouse and is set to house the district attorney’s office, which is currently operating across three different sites.
Kingstone anticipates that the sale will yield an approximate pre-tax gain of $1.9 million, translating to about $1.5 million after taxes. This financial benefit is expected to be recognized in the first quarter of 2025, contingent upon the successful closing of the sale. Furthermore, the company projects a reduction in annual operating costs by approximately $300,000, enhancing its financial efficiency.
Embracing a Remote Workforce Model
Meryl Golden, the CEO of Kingstone, emphasized that the sale of the headquarters is consistent with the organization’s shift towards a remote workforce model. "We decided to market our properties last year after making the decision to continue as a remote workforce model. We are delighted that Ulster County found these properties ideal for their needs," Golden stated during the announcement of the sale.
Since acquiring the headquarters in 2009, Kingstone has maintained a strong presence in the Kingston area, and plans to continue its operations by leasing a smaller office space.
Kingstone’s Growth and Market Position
Kingstone Insurance Co. operates as a New York-domiciled carrier, distributing its products through retail and wholesale agents and brokers. The company is active in writing personal lines and commercial auto insurance in New York and was recognized as the 15th largest writer of homeowners insurance in the state in 2023. Additionally, Kingstone holds licenses in several states, including New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.
Earlier this month, Golden shared with investors that 2024 marked the most successful year in Kingstone’s history, showcasing record premium levels and profitability. The company enjoyed four consecutive quarters of profitability and achieved its best underwriting performance in recent years.
This impressive growth was partly fueled by the exit of two significant competitors in the market: Adirondack Insurance Exchange and its subsidiary, Mountain Valley Indemnity Co. Kingstone successfully acquired over 6,000 policies and $23 million in direct written premium from customers previously insured by these companies.
Strategic Focus and Future Outlook
Kingstone’s management has articulated a clear strategy to capitalize on market opportunities by being intentional and selective about the properties it underwrites, ensuring that the business aligns with its profit margins. The company concluded the year with a remarkable 31% growth in its core (New York State) direct written premiums, including a staggering 44% increase in the second half of the year.
To sum up, Kingstone Companies, Inc. is not only adapting to the changing landscape of the insurance industry but is also strategically positioning itself for future growth. The sale of its headquarters is a clear indicator of its focus on operational efficiency and commitment to a modern workforce model. As the company continues to thrive, its ability to navigate market challenges will be crucial in maintaining its upward trajectory.
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