Kingstone Companies has shared its best financial performance ever, showing remarkable growth and beating many larger insurers in the property and casualty industry. For the year ending December 31, 2025, the small Northeast insurer reported a net income of $40.8 million. That’s more than double the $18.4 million it made the year before. Earnings per share rose to $2.88, with the last quarter alone seeing net income jump 171.4% to $14.8 million.
The company saw its net premiums earned grow by 45.6%, reaching $187.1 million, and direct premiums written increased nearly 15% to $277.8 million. Kingstone’s net combined ratio, which measures underwriting profitability, improved to 75% from 80%. This is particularly impressive considering industry projections. AM Best estimated the overall U.S. property and casualty industry combined ratio would be 95.0% in 2025, while Kingstone outperformed personal lines benchmarks by about 19 points. The insurer also posted an annualized return on equity of 43%.
Kingstone’s CEO, Meryl Golden, said this success is “structural, not simply weather-driven.” She pointed to the company’s Select risk selection program, which now covers 57% of its policies. However, the company is also cautious about what lies ahead. Industry experts like AM Best expect the combined ratio to rise close to 97% in 2026. Kingstone’s own forecasts suggest a net combined ratio between 81% and 86% this year, factoring in higher catastrophe losses than in 2025.
Looking ahead, Kingstone plans to expand beyond the Northeast by entering the California market in the second quarter of 2026. This is a significant move into a tougher environment. California’s FAIR Plan had nearly 670,000 policies at the end of 2025, with a staggering $645 billion in residential exposure. Wildfires remain a huge risk, with losses from the January 2025 Los Angeles wildfires estimated at around $40 billion—the costliest wildfire event recorded at that time.
California has introduced new regulations allowing insurers to use forward-looking catastrophe models for setting rates. Several major companies like Farmers, Allstate, and Mercury have already filed under this new system. Still, consumer advocates like Carmen Balber argue the changes won’t do enough to reduce the number of policies on the FAIR Plan.
Kingstone is preparing for the challenges with a strong backing in catastrophe reinsurance, which increased by 57% to $440 million during its July 2025 renewal. They also secured a $125 million catastrophe bond through 1886 Re Ltd. The company expects direct premiums written to grow between 16% and 20% in 2026. Earnings per share are predicted to fall between $2.20 and $2.90, with a return on equity of 24% to 30%. Applying last year’s catastrophe loss ratio, earnings per share could potentially reach around $3.53.
With its solid results and careful planning, Kingstone is aiming for steady growth while stepping carefully into a more volatile market in California. The company’s progress shows how a smaller player can hold its own in the competitive world of property and casualty insurance.