Overview

Kingstone Cos. Inc. has announced plans to enter the California excess and surplus lines homeowners’ market in the second quarter of 2026. This strategic move aims to drive growth and mitigate risks associated with the company's concentrated exposure in New York.

The announcement was made by President and CEO Meryl Golden in a shareholder letter, following the company's record financial performance in 2025.

Key details

  • Kingstone plans to enter the California market in Q2 2026.
  • The expansion targets the excess and surplus lines homeowners’ sector.
  • This move is intended to serve as a growth driver and a hedge against risks in New York.
  • Kingstone reported a net income of $40.8 million in 2025, more than double the previous year.
  • Diluted earnings per share increased by 95% to $2.88.
  • The company's combined ratio stood at 75%, resulting in a 43% return on equity.
  • California's homeowners’ market has over $15 billion in premium, nearly double that of New York.
  • Kingstone evaluated California based on market size, profitability, and competitive dynamics, among other criteria.
  • Golden emphasized the flexibility of the E&S market as a significant factor in the attractiveness of California.
  • The admitted market in California is expected to remain constrained for years.
  • Many low-risk homeowners in California have limited coverage options, presenting an opportunity for Kingstone.
  • Kingstone aims to diversify its portfolio with the addition of California, reducing earnings volatility.

Context

The decision to expand into California follows a period of strong financial performance for Kingstone, positioning the company to capitalize on opportunities in a state with a large and complex insurance market.

What happens next

As Kingstone prepares for its entry into the California market, the company will likely focus on building relationships with local agents and assessing the competitive landscape to establish a foothold in this new territory.

What we don't know yet

Details regarding specific strategies for market entry, potential partnerships, and the exact timeline for operational rollout are not confirmed.