Fast-Growing Companies That Are Still Undervalued Kingstone Companies (NASDAQ:KINS) reported a first-quarter 2026 net loss as an unusually severe winter storm season across the Northeast drove elevated catastrophe losses, though management emphasized continued improvement in…
derlying underwriting performance and premium growth. First-quarter results reflected heavy winter catastrophe activity President and CEO Meryl Golden said the company posted a GAAP net combined ratio of 112 for the first quarter, with a net loss of $5.8 million, or $0.40 per diluted share
Golden attributed the quarterly loss primarily to “11 winter catastrophe events across the Northeast,” which contributed 26 points to the loss ratio. She added that the winter storm season was “exceptionally severe for downstate N.Y.” and “ranked as the coldest and snowiest in 11 years.” Vice President and CFO Randy Patten similarly said the quarter included a 112% combined ratio and an annualized return on equity of -19.6%. He noted catastrophe losses added 26 points to the combined ratio in the quarter, compared with 1.7 points in the prior-year period.
On reinsurance, Golden said the company’s gross catastrophe loss was “about $25 million.” She said Kingstone purchased “first event winter storm coverage,” resulting in a “$5 million recovery,” and added the company had “roughly $4 million, maybe $5 million going into the reinsurance tower.” Management highlighted improved “underlying” underwriting performance Golden told investors the company is emphasizing its “underlying combined ratio” to separate results it can control from catastrophe volatility, and said “every key metric improved” on that basis. She reported: – Underlying combined ratio improved 5.1 points year-over-year to 88.3%. – Underlying loss ratio improved to 57.9%. – Expense ratio improved to 30.4%. Patten said that removing the impacts of catastrophe losses and favorable reserve development, Kingstone’s underlying combined ratio improved…