Kingstone Enters California Market

Kingstone's record 2025 performance saw net income more than double to $40.8 million, with its net combined ratio at 75%—a figure significantly better than the projected 95% for the U.S. property and casualty industry. This yielded an annualized return on equity of 43%. CEO Meryl Golden described the results as "structural, not simply weather-driven," attributing the success to the company's "Select" risk-selection program. This proprietary tool now covers 57% of Kingstone's policies in force. The move into California marks Kingstone's first expansion outside of the Northeast. The company has set a target of reaching $500 million in direct premiums written by the end of 2029, which would nearly double its current size. Kingstone is wading into a market still reeling from the January 2025 Los Angeles wildfires, which caused an estimated $40 billion in insured losses, the costliest wildfire event on record. This event accelerated an exodus of major carriers like State Farm and Allstate, who have stopped issuing new policies in the state. The retreat of private insurers has dramatically increased reliance on the California FAIR Plan, the state's insurer of last resort. By the end of 2025, enrollment in the FAIR Plan had swelled to 668,609 policies, with a total residential exposure of $645 billion. In response to the crisis, Insurance Commissioner Ricardo Lara's "Sustainable Insurance Strategy" now permits insurers to use forward-looking catastrophe models in their rate-setting for the first time. This regulatory shift is a key factor attracting new capital and capacity to the state. Kingstone plans a disciplined entry, writing policies on an excess and surplus (E&S) basis and initially capping its California business at less than 5% of its total 2026 premiums. An actuarial consulting firm helped modify its existing risk-selection models to be appropriate for the California market.