Kingstone has announced its financial results for the third quarter of 2026, reporting net income of $17.6 million, a 30% growth in net premiums earned, and an improved GAAP net combined ratio of 65.6%.
Net income in Q3 2026 went up 61.7% compared with the $10.8 million reported for Q3 2025. For the nine months ending September 30, Kingstone saw a net income of $27.2 million, a 4.8% increase compared to the same period the year prior.
Annualised return on equity (ROE) reached 52.9% in the quarter, while diluted book value per share rose 26% year over year to $9.21, successfully absorbing $9.7 million in after-tax unrealized bond losses recorded during the quarter.
Net premiums earned reached $62.4 million in Q3 2026, up from the $47.9 million in Q3 2025. For 9M net premiums earned were up 29.8%, to $178.7 million from $137.6 million in the same period last year.
Direct premiums written in Q3 2026 rose 14.5%, to $86.8 million, driven by higher average renewal premiums, improved retention and new business growth, pushing total policies in force up 11% compared to Q3 2025.
Underwriting performance strengthened substantially, with GAAP net combined ratio improving 7.1 percentage points to 65.6%.
The net loss ratio landed at 34.9%, an outcome that included 61 points of favourable prior-year reserve development against 7.5 points of catastrophe losses, up from just 0.2 points in Q3 2025.
On an underlying basis – without catastrophes and reserve development – the loss ratio improved 10.6 points to 33.5%.
This margin expansion was attributed to reduced claim frequency and severity, faster cycle times providing earlier visibility into ultimate costs, and an increasing share of business placed on the carrier’s Select platform.
Meryl Golden, President and Chief Executive Officer of Kingstone, praised the milestone, and described Q3 2026 as once again, the “most profitable quarter in Kingstone history.”
Concluding: “We are updating our 2026 direct premiums written growth outlook to approximately 16%, improving our net combined ratio outlook to 79% to 83%, and raising the midpoint of our diluted earnings per share guidance to $2.80. We will continue to execute with discipline, grow where the returns justify it and allocate capital prudently to deliver long-term value to our shareholders.”
