By Michael Loney

May 9 - (The Insurer) - The share price of Kingstone Companies closed up 19% on Friday after the Northeast regional insurer reported Q1 results that included a 93.7% net combined ratio and core direct premiums written increasing 22.7% to $57.2 million.

The Kingston, New York-based company improved its net income to $3.9 million, up from $1.4 million in the first quarter of 2024.

Overall direct premiums written increased 17.9% to $58.2 million. Kingstone’s core business is New York-only while its non-core business is outside of New York.

The underlying loss ratio deteriorated 3.3 points to 62.1%. The catastrophe loss ratio reduced to 1.7% from 5.2% in Q1 2024 driven by the mild winter.

“We also experienced lower overall frequency, highlighting the strength of our disciplined underwriting and prudent risk selection. This improvement, however, was offset by an increase in severity due to a higher incidence of fire losses during the quarter, which is not atypical for this time of year,” said Kingstone president and CEO Meryl Golden.

Adjusted Ebitda of $4.3 million was up from $3.0 million in the prior-year period.

Kingstone reaffirmed its 2025 guidance of core business DPW growth of 15% to 25%, a net combined ratio of 81% to 85%, and return on equity of 27% to 35%.

Golden said the 23% growth in core business DPW was “driven by the continuing favorable competitive landscape that creates meaningful opportunities for our producers to write high-quality, profitable new business in Downstate New York.”

She added that Q1 was Kingstone’s sixth consecutive quarter of profitability.

Kingstone in April announced a renewal rights deal for AmGuard downstate New York homeowners policies in a transaction encompassing $70 million in written premium.

Golden in August last year said Kingstone had an “amazing opportunity” to grow New York homeowners DPW after Adirondack Insurance Exchange, Mountain Valley Indemnity Company and AmGuard announced they were exiting the business.