KINGSTONE COMPANIES, INC.KINS
KINGSTONE COMPANIES, INC. Segments Disclosure
Segment Information
The Company reports results of operations for its reportable segments consistent with the manner in which its chief operating decision maker ("CODM") reviews the business to assess performance and allocate resources. The Company identifies its CODM to be its President and Chief Executive Officer.
The Company evaluates the results of its single reportable segment as follows:
Insurance operations are evaluated on (i) underwriting results (net premiums earned, ceding commission earned, other income, loss and loss adjustment expenses, commission expense, and other underwriting expenses), equating to the components of the net combined ratio.
Investments from the insurance operation are primarily evaluated on net investment income and its return on equity contribution.
Net (losses) gains on investments, gain on sale of real estate, other operating expenses are corporate expenses, depreciation and amortization, interest expense, and income tax, which are broken out below the insurance operations components of the net combined ratio to return to the consolidated net income.
The Company's CODM uses these measures of profit or loss predominantly in the annual budget and forecasting process, considering budget-to-actual variances throughout the year. The CODM also uses these profit measures for evaluating (i) financial performance, (ii) pricing in the Company's insurance operations, and (iii) employee compensation.
The Company does not allocate items not included in the net combined ratio. Such items include net gains on investments, depreciation and amortization, interest expense, corporate expenses included in other operating expenses, and assets to these segments. The Company does not allocate income taxes to its segments. The Company does not manage those segments on after-tax results.
The following tables reconciles the revenue and expense components of the net combined ratio to consolidated net income for the periods presented.
| Years ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Revenue components of net combined ratio | |||||||||||
| Net premiums earned | $ | 187,126,722 | $ | 128,497,920 | |||||||
| Ceding commission revenue | 15,674,971 | 18,837,946 | |||||||||
| Other income | 610,212 | 549,967 | |||||||||
| Total revenue components of net combined ratio | 203,411,905 | 147,885,833 | |||||||||
| Expense components of net combined ratio | |||||||||||
| Loss and loss adjustment expenses | 84,265,722 | 62,634,716 | |||||||||
| Commission expense | 40,726,801 | 33,929,333 | |||||||||
| Other underwriting expenses | 31,718,770 | 25,692,727 | |||||||||
| Total expense components of net combined ratio | 156,711,293 | 122,256,776 | |||||||||
| Operating segment net income | 46,700,612 | 25,629,057 | |||||||||
| Reconciliation of net income components | |||||||||||
| excluded from net combined ratio: | |||||||||||
| Revenue components excluded from net combined ratio | |||||||||||
| Net investment income | 9,798,764 | 6,823,590 | |||||||||
| Net (losses) gains on investments | (309,994) | 414,551 | |||||||||
| Realized gain on sale of real estate | 1,965,989 | — | |||||||||
| Other income | 637 | 18,129 | |||||||||
| Total revenue components excluded | |||||||||||
| from net combined ratio | 11,455,396 | 7,256,270 | |||||||||
| Expense components excluded from net combined ratio | |||||||||||
| Other operating expenses | 4,105,310 | 3,634,583 | |||||||||
| Depreciation and amortization | 2,559,835 | 2,448,932 | |||||||||
| Interest expense | 445,213 | 3,513,655 | |||||||||
| Income tax | 10,278,522 | 4,929,721 | |||||||||
| Total expense components excluded | |||||||||||
| from net combined ratio | 17,388,880 | 14,526,891 | |||||||||
| Total net loss components | |||||||||||
| excluded from net combined ratio: | (5,933,484) | (7,270,621) | |||||||||
| Consolidated net income | $ | 40,767,128 | $ | 18,358,436 | |||||||
The following table shows the calculation of the net combined ratio and return on equity from net investment income for the periods presented.
| Years ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net combined ratio | |||||||||||
| Net loss ratio | 45.0 | % | 48.7 | % | |||||||
| Net underwriting expense ratio | 30.0 | % | 31.3 | % | |||||||
| Net combined ratio | 75.0 | % | 80.0 | % | |||||||
| Reconciliation of net underwriting expense ratio: | |||||||||||
| Commission expense and other | |||||||||||
| underwriting expenses | 72,445,571 | 59,622,060 | |||||||||
| Less: Ceding commission revenue | (15,674,971) | (18,837,946) | |||||||||
| Less: Other income | (610,212) | (549,967) | |||||||||
| Total commission expense and other | |||||||||||
| underwriting expenses | $ | 56,160,388 | $ | 40,234,147 | |||||||
| Net earned premium | $ | 187,126,722 | $ | 128,497,920 | |||||||
| Net underwriting expense ratio | 30.0 | % | 31.3 | % | |||||||
| Return on equity on net investment income | |||||||||||
| Stockholders' equity beginning of period | $ | 66,708,451 | $ | 34,504,139 | |||||||
| Stockholders' equity end of period | $ | 122,731,249 | $ | 66,708,451 | |||||||
| Average stockholders' equity | $ | 94,719,850 | $ | 50,606,295 | |||||||
| Net investment income | $ | 9,798,764 | $ | 6,823,590 | |||||||
| Return on equity on net investment income | 10.3 | % | 13.5 | % | |||||||
| Total assets | $ | 453,425,151 | $ | 374,915,843 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 18, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.