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KINS vs. UFCS: Which Regional Insurer Offers Better Value Investment?
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Despite a rise in catastrophic events, the property and casualty insurance industry is projected to grow, supported by a strong emphasis on personalized products and enhanced customer engagement through digital innovation. Higher premium volumes —driven by solid policyholder retention, broader exposure across business lines and favorable pricing — are helping insurers sustain profitability. Regional P&C carriers such as Kingstone Companies (KINS - Free Report) and United Fire Group, Inc. (UFCS - Free Report) are well-positioned to capitalize on these positive industry trends.
To reinforce financial resilience, insurers are increasingly relying on reinsurance arrangements. The adoption of advanced climate risk modeling is further enhancing risk evaluation. However, pricing is being influenced by rising reinsurance costs, stricter reinsurance conditions and persistent inflation.
Yet, as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.
Factors to Consider for KINS
Kingstone Companies, recognized by S&P as the 12th largest homeowner insurer in New York, held a 2.1% market share in 2024. With the Northeastern U.S. commercial insurance market expected to grow 12.3% through 2025 and key competitors exiting the national personal property market, KINS is strategically positioned to expand and gain market share.
Operating as a regional property and casualty insurer concentrated in the Northeast, Kingstone is exposed to both geographic and product-specific risks due to its reliance on a limited number of insurance lines. Nonetheless, this insurer is intensifying its focus on core operations while exiting underperforming, non-core segments. KINS adheres to disciplined underwriting practices, only accepting business that meets its profitability and risk criteria.
KINS has successfully raised prices ahead of inflation, ensuring premiums remain aligned with underlying risks. Its partnership with Earnix has further strengthened its pricing capabilities and supports long-term growth initiatives. The company anticipates direct written premiums from its core business to grow between 15% and 25% in 2025.
Efforts to lower the net underwriting expense ratio are ongoing, driven by increased average premiums and reductions in commissions and staffing costs. With a solid reinsurance program in place, Kingstone projects an improved combined ratio of 81% to 85% in 2025. The company has also reinforced its financial position by increasing its cash reserves and reducing debt.
Net margin, measuring a company's profitability, has been showing continuous improvement. The metric expanded 2560 basis points in the last two years, driven by underwriting discipline, prudent risk management and market dislocation. KINS was back on the profitability track in 2024 after three years.
Its return on equity of 31.9% is better than the industry average of 7.8%.
Factors to Consider for UFCS
With a portfolio offering a wide range of products, including property, casualty, commercial lines, specialty lines, and surety bonds, United Fire Group has a strong presence in Midwestern U.S. This also exposes the insurer to geographic concentration.
The insurer is in the final stages of completing a new policy administration system for core commercial business units. The system has already been fully implemented for small business across all 32 states. Deployment for the middle market and construction will begin with new business in July and expand to renewals in November. This investment represents a major milestone in advancing process efficiency and strengthening product management at United Fire Group. Core commercial new business production is growing as small business, construction and middle market are collectively contributing. Prudent pricing and risk selection, stable retention, and higher new business should drive premiums.
Continued increase in fixed maturity income from a growing fixed income portfolio drive net investment income. This also shields the company from increased uncertainty.
Investments in technology to streamline operations, improve data analysis and enhance customer experience should support long-term growth.
Net margin has been showing continuous improvement. The metric expanded 640 basis points in the last two years.
Its return on equity of 9% is also better than the industry average.
Estimates for KINS and UFCS
The Zacks Consensus Estimate for KINS’ 2025 revenues and EPS implies a year-over-year increase of 31% and 37.9%, respectively. There was no EPS estimate movement over the past 30 days. It has a Growth Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UFCS 2025 revenues implies a year-over-year increase of 6.7% while the same for EPS indicates a 2.4% decline. However, EPS estimates have moved northward over the past 30 days. It has a Growth Score of B.
Image Source: Zacks Investment Research
Are KINS and UFCS Shares Expensive?
Kingstone is trading at a price-to-book multiple of 2.68, above its median of 0.82 over the last five years. United Fire Group’s price-to-book multiple sits at 0.88, above its median of 0.81 over the last five years.
UFCS is more affordable than KINS. Both these stocks carry a Value Score of A.
Image Source: Zacks Investment Research
Conclusion
Kingstone Companies is strategically positioned to tap into a market opportunity of over $200 million. By focusing on core business expansion, strengthening its niche market foothold, improving pricing and underwriting efficiency and expanding margins, the company is set for robust and sustained earnings growth. This Zacks Rank #3 (Hold) insurer has gained 3.3% in the past three months.
United Fire Group is a great value opportunity as a regional property and casualty insurer with over five decades of underwriting expertise. It maintains a diversified portfolio and steady premium growth in its core Midwest markets. With digitalization, it is positioned to improve profitability and shareholder returns. Investors seeking exposure to stable, dividend-paying regional insurers may find UFCS an attractive pick as its dividend yield exceeds the industry average. This Zacks Rank #2 (Buy) insurer has gained 3% in the past three months.
Both these stocks carry a VGM Score of A. Given the affordability of shares, UFCS scores better than KINS.
Image: Bigstock
KINS vs. UFCS: Which Regional Insurer Offers Better Value Investment?
Despite a rise in catastrophic events, the property and casualty insurance industry is projected to grow, supported by a strong emphasis on personalized products and enhanced customer engagement through digital innovation. Higher premium volumes —driven by solid policyholder retention, broader exposure across business lines and favorable pricing — are helping insurers sustain profitability. Regional P&C carriers such as Kingstone Companies (KINS - Free Report) and United Fire Group, Inc. (UFCS - Free Report) are well-positioned to capitalize on these positive industry trends.
To reinforce financial resilience, insurers are increasingly relying on reinsurance arrangements. The adoption of advanced climate risk modeling is further enhancing risk evaluation. However, pricing is being influenced by rising reinsurance costs, stricter reinsurance conditions and persistent inflation.
Yet, as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.
Factors to Consider for KINS
Kingstone Companies, recognized by S&P as the 12th largest homeowner insurer in New York, held a 2.1% market share in 2024. With the Northeastern U.S. commercial insurance market expected to grow 12.3% through 2025 and key competitors exiting the national personal property market, KINS is strategically positioned to expand and gain market share.
Operating as a regional property and casualty insurer concentrated in the Northeast, Kingstone is exposed to both geographic and product-specific risks due to its reliance on a limited number of insurance lines. Nonetheless, this insurer is intensifying its focus on core operations while exiting underperforming, non-core segments. KINS adheres to disciplined underwriting practices, only accepting business that meets its profitability and risk criteria.
KINS has successfully raised prices ahead of inflation, ensuring premiums remain aligned with underlying risks. Its partnership with Earnix has further strengthened its pricing capabilities and supports long-term growth initiatives. The company anticipates direct written premiums from its core business to grow between 15% and 25% in 2025.
Efforts to lower the net underwriting expense ratio are ongoing, driven by increased average premiums and reductions in commissions and staffing costs. With a solid reinsurance program in place, Kingstone projects an improved combined ratio of 81% to 85% in 2025. The company has also reinforced its financial position by increasing its cash reserves and reducing debt.
Net margin, measuring a company's profitability, has been showing continuous improvement. The metric expanded 2560 basis points in the last two years, driven by underwriting discipline, prudent risk management and market dislocation. KINS was back on the profitability track in 2024 after three years.
Its return on equity of 31.9% is better than the industry average of 7.8%.
Factors to Consider for UFCS
With a portfolio offering a wide range of products, including property, casualty, commercial lines, specialty lines, and surety bonds, United Fire Group has a strong presence in Midwestern U.S. This also exposes the insurer to geographic concentration.
The insurer is in the final stages of completing a new policy administration system for core commercial business units. The system has already been fully implemented for small business across all 32 states. Deployment for the middle market and construction will begin with new business in July and expand to renewals in November. This investment represents a major milestone in advancing process efficiency and strengthening product management at United Fire Group.
Core commercial new business production is growing as small business, construction and middle market are collectively contributing. Prudent pricing and risk selection, stable retention, and higher new business should drive premiums.
Continued increase in fixed maturity income from a growing fixed income portfolio drive net investment income. This also shields the company from increased uncertainty.
Investments in technology to streamline operations, improve data analysis and enhance customer experience should support long-term growth.
Net margin has been showing continuous improvement. The metric expanded 640 basis points in the last two years.
Its return on equity of 9% is also better than the industry average.
Estimates for KINS and UFCS
The Zacks Consensus Estimate for KINS’ 2025 revenues and EPS implies a year-over-year increase of 31% and 37.9%, respectively. There was no EPS estimate movement over the past 30 days. It has a Growth Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UFCS 2025 revenues implies a year-over-year increase of 6.7% while the same for EPS indicates a 2.4% decline. However, EPS estimates have moved northward over the past 30 days. It has a Growth Score of B.
Image Source: Zacks Investment Research
Are KINS and UFCS Shares Expensive?
Kingstone is trading at a price-to-book multiple of 2.68, above its median of 0.82 over the last five years. United Fire Group’s price-to-book multiple sits at 0.88, above its median of 0.81 over the last five years.
UFCS is more affordable than KINS. Both these stocks carry a Value Score of A.
Image Source: Zacks Investment Research
Conclusion
Kingstone Companies is strategically positioned to tap into a market opportunity of over $200 million. By focusing on core business expansion, strengthening its niche market foothold, improving pricing and underwriting efficiency and expanding margins, the company is set for robust and sustained earnings growth. This Zacks Rank #3 (Hold) insurer has gained 3.3% in the past three months.
United Fire Group is a great value opportunity as a regional property and casualty insurer with over five decades of underwriting expertise. It maintains a diversified portfolio and steady premium growth in its core Midwest markets. With digitalization, it is positioned to improve profitability and shareholder returns. Investors seeking exposure to stable, dividend-paying regional insurers may find UFCS an attractive pick as its dividend yield exceeds the industry average. This Zacks Rank #2 (Buy) insurer has gained 3% in the past three months.
Both these stocks carry a VGM Score of A. Given the affordability of shares, UFCS scores better than KINS.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.