SCHEDULE: Activist Investors Push Kingstone for Strategic Review, Potential Sale

Gregory and Scott Fortunoff, holding 7.6% of Kingstone Companies, Inc., are urging the Board to explore strategic alternatives, including a sale, to unlock shareholder value.

Summary

• Gregory and Scott Fortunoff (the "Reporting Persons") have filed a Schedule 13D, disclosing beneficial ownership of 848,650 shares (5.9%) and 240,660 shares (1.7%) of Kingstone Companies, Inc. common stock, respectively.
• Combined, the Reporting Persons beneficially own approximately 7.6% of the Issuer's common stock, based on 14,397,526 shares outstanding as of December 31, 2025.
• The Reporting Persons acquired these securities for investment purposes, spending approximately $10,449,815 (Gregory) and $1,885,798.40 (Scott).
• They believe Kingstone Companies, Inc. is undervalued despite strong operational performance, significant debt reduction, and a comprehensive reinsurance program.
• The Reporting Persons have requested the Board of Directors initiate a formal review of strategic alternatives, including a potential sale of the Issuer, to maximize shareholder value.
• They highlight the New York insurance market's appeal and Kingstone's potential as an attractive acquisition target for larger competitors.
• The Reporting Persons reserve all rights as shareholders to take further action if the Board does not pursue a strategic review or fails to act timely.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as moderately positive. While the investors highlight undervaluation, their active engagement and belief in the company's operational improvements and market attractiveness suggest a strong potential catalyst for value realization through strategic action.

Positives

• Reporting Persons believe Kingstone has delivered strong operational performance over the past year.
• Kingstone has substantially improved its stability and earnings power by reducing debt significantly.
• Kingstone has implemented a comprehensive reinsurance program.
• The New York insurance market is becoming increasingly appealing to industry participants.
• Kingstone's established infrastructure in the New York market makes it an attractive target for larger competitors.

Negatives

• Reporting Persons believe Kingstone's stock price continues to trade materially below its intrinsic value.
• There is a perceived disconnect between the Issuer's operating performance and market valuation.

Risks

• The Board may decline to pursue a strategic review or fail to take timely action to address the perceived undervaluation, potentially leading to continued stock price disconnect.
• The Reporting Persons may acquire additional securities or dispose of existing holdings, which could impact market dynamics.

Future Outlook

The Reporting Persons believe the Issuer's stock price continues to trade materially below its intrinsic value and that the New York insurance market is increasingly appealing, suggesting a positive outlook for a potential sale of the Issuer at a premium. They anticipate the Board will evaluate strategic alternatives to unlock this value.

Management Comments

• "The Issuer has continued to be undervalued despite having delivered strong operational performance over the past year and substantially improving its stability and earnings power by reducing its debt significantly and implementing a comprehensive reinsurance program."
• "The Issuer's stock price continues to trade materially below its intrinsic value and that this disconnect between the Issuer's operating performance and market valuation underscores the need for the Board to actively evaluate strategic alternatives."
• "The New York insurance market has become increasingly appealing to industry participants... and that the Issuer could be an attractive target for larger competitors, even at a premium to the Issuer's current trading price."
• "The Board has a fiduciary responsibility to evaluate a sale of the Issuer as part of a broader strategic review and that such a process represents an effective path to unlocking the full value of the Issuer's business for all shareholders."

Industry Context

StockSavvy.ai notes that the Fortunoffs' assertion about the New York insurance market becoming more appealing aligns with recent commentary from larger competitors, who have identified expansion into this market as a strategic priority. This suggests Kingstone's established presence could indeed make it an attractive acquisition target, potentially driving consolidation in the regional insurance sector.

Comparison to Industry Standards

• The filing does not provide specific comparable companies or projects. However, the Reporting Persons reference "recent quarterly conference calls from larger competitors who identified expansion into the New York market as a strategic priority," implying that Kingstone's market position is viewed favorably in the context of broader industry M&A trends.
• The statement that Kingstone is "one of the smallest publicly traded insurers" suggests it could be a digestible acquisition for larger players seeking to enter or expand in the New York market, a common rationale in insurance industry consolidation.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for increased value if a strategic review leads to a sale at a premium; risk of continued undervaluation if the Board does not act.
• Management/Employees: Potential for changes in leadership or company structure if a sale occurs.
• Competitors: Potential for increased competition in the New York insurance market if Kingstone is acquired by a larger player, or if Kingstone itself expands.

Next Steps

• The Board of Directors is requested to initiate a formal review of strategic alternatives, including a potential sale of the Issuer.
• The Reporting Persons may acquire additional securities or dispose of some or all of their holdings, subject to market conditions.
• The Reporting Persons reserve the right to take any action they deem necessary to protect and advance shareholder interests if the Board declines or fails to take timely action.

Key Dates

Recommendation

The filing reveals activist investors, Gregory and Scott Fortunoff, who collectively own 7.6% of Kingstone Companies, Inc., are actively pushing the Board for a strategic review, including a potential sale of the company. They assert the company is significantly undervalued despite strong operational performance, reduced debt, and a robust reinsurance program. Their belief that the New York insurance market is attractive and Kingstone could be an appealing acquisition target for larger competitors, even at a premium, presents a strong catalyst for unlocking shareholder value. The explicit demand for a strategic review, coupled with the investors' stated intent to take further action if the Board fails to respond, signals a high probability of corporate action that could drive the stock price higher. This situation suggests a "strong buy" for investors looking for potential M&A premiums and activist-driven value creation.

Keywords

Kingstone Companies, KINS, Schedule 13D, Activist Investor, Strategic Alternatives, Company Sale, Shareholder Value, Insurance Market, New York Insurance, Corporate Governance, Undervaluation, Fortunoff