Aug. 12 at 1:55 PM
$KINS: Clean quarter, clear plan, still room to run
Best quarter ever and the call backed it up. I first bought around
$10; at ~
$15.85 I still see upside.
Q2: net income
$11.3M, EPS
$0.78, ROE 50.8%, combined ratio 71.5%. Net premiums earned +52% as KINS kept more risk; Core NY DPW +17%. Non-cat loss ratio 38.7%, cat only 0.6 pts.
Reinsurance got stronger: limits +57% with <10% price lift, plus a
$125M cat bond. First-event retention
$5M. A Sandy-type event modeled at ~
$95M gross would leave ~
$5M net. Second-event retention
$9M.
Guide raised: 2025 combined 79–83%, diluted EPS
$1.95–
$2.35, ROE 30–38%. Dividend reinstated. New CFO coming in.
Growth plan:
$500M premium in 5 years by leaning into NY and adding a few E&S states (2 in ’26, 2 in ’27). Management says expense impact should be minimal—platform is in place.
Risks: weather and execution on expansion. But at ~
$15.85, KINS is ~8x the EPS midpoint. Hold an 80s combined and grow premiums, and the “E” should do the work.
