Kingstone Expands into California Homeowners’ Insurance Market
Kingstone Cos. Inc. is set to enhance its market presence by entering the California excess and surplus lines homeowners’ sector in the second quarter of 2026. This strategic move aims to diversify Kingstone's portfolio and reduce its heavy reliance on the New York market. The announcement came from President and CEO Meryl Golden in a letter to shareholders, highlighting the company’s impressive financial performance, including a net income surge to $40.8 million and a combined ratio of 75% in 2025.
California emerged as a strategic choice among catastrophe-prone states, evaluated for its market size, profitability, competitive environment, and regulatory frameworks. With the homeowners’ insurance market exceeding $15 billion in premiums, nearly double that of New York, Kingstone is poised to seize this opportunity. Golden emphasized the attractiveness of the excess and surplus lines market in California, noting the limited capacity of the admitted market due to regulatory delays.
The expansion into California provides Kingstone significant diversification for its portfolio. Golden stated, “Adding California will diversify our New York operations unlike any other state.” This move allows Kingstone to leverage existing relationships with managing general agents and carriers familiar from New York, capitalizing on opportunities left by the disruption in California's admitted market.
Kingstone has developed a bespoke insurance product for the California market, crafted in collaboration with an actuarial advisory firm. This product aligns insurance rates with risk factors on a peril level, incorporating wildfire models to evaluate risk and pricing. A focus on areas with low-to-moderate wildfire risk will complement Kingstone's real-time model to manage risk concentration, with claims management staying internal.
Golden highlighted the scalability of Kingstone's business model as it enters California, emphasizing low entry costs. The goal is to keep California operations below 5% of its 2026 premium, implementing a 30% quota share. The company’s 30% expense ratio presents a competitive edge in this market.
This expansion is a cornerstone of Kingstone’s five-year growth strategy to double its size to $500 million in written premiums by 2029. This plan involves growth within New York, geographic expansion—including the California move—and potential acquisitions. The decision to enter California follows a strategic retrenchment in 2022, where Kingstone exited several states after adverse impacts on its portfolio, despite efforts to adjust rates and tighten underwriting standards.