Company Sets Annual
Shareholder Meeting Date
Kingstone Companies, Inc. (Nasdaq: KINS) (the “Company”
or “Kingstone”), a Northeast regional property and casualty
insurance holding company, today announced its financial results
for the quarter and year ended December 31, 2022. The Company will
host a conference call for analysts and investors on March 31,
2023, at 8:30 a.m. Eastern Time, as previously announced on January
24, 2023.
Annual Meeting of Stockholders
The Company also announced that the 2023 Annual Meeting of
Stockholders will be held on Wednesday, August 9, 2023 at 9:00 A.M.
at 15 Joys Lane, Kingston, New York. Stockholders of record as of
the close of business on June 15, 2023 will be entitled to vote at
the Annual Meeting.
Financial and Operational
Highlights 2022 Fourth Quarter (All results are
compared to prior year quarterly period unless otherwise noted)
- Loss per share of $(0.37) compared to earnings per share of
$0.21; net operating loss per share1 of $(0.36) compared to
$(0.11). Losses attributable to late December Winter Storm Elliot
were $(0.13) per share
- Book value per share of $3.38, down 7.4% from the prior
quarter. Book value per share excluding Accumulated Other
Comprehensive (Loss)1 was $4.87
- Direct written premiums1 grew by 7.7% to $53.9 million
- Net premiums earned decreased 17.8% to $30.4 million driven by
the 30% personal lines quota share treaty
- Net combined ratio increased to 113.9% from 101.3%
- Net loss ratio was 81.3%, up from 61.8%. Winter Storm Elliot
added 13.1 percentage points and prior year loss development1 added
6.5 percentage points
- Net expense ratio decreased to 32.6% from 39.5%
- Net combined ratio excluding catastrophes and prior year loss
development1 was 93.8% compared to 94.5%
- No shares repurchased during Q4
2022 Full Year (All results are compared to prior year
period unless otherwise noted)
- Loss per share of $(2.12) compared to loss per share of
$(0.70); net operating loss per share1 of $(1.42) compared to
$(1.43)
- Book value per share of $3.38, down 53.2% from the prior
year
- Realized and unrealized losses resulted in a decline in book
value of $0.70 per share
- Direct written premiums1 grew by 10.8% to $201.2 million
- Net premiums earned decreased 20.5% to $114.4 million driven by
the 30% personal lines quota share treaty
- Net combined ratio increased to 113.3% from 111.5%
- Net loss ratio increased to 77.3% from 70.9%. Catastrophe
losses added 6.7 percentage points and prior year loss development1
added 2.4 percentage points
- Net expense ratio decreased to 36.0% from 40.6%
- Net combined ratio excluding catastrophes and prior year loss
development1 was 104.2% compared to 101.2%
- No shares repurchased during the year
__________________ 1 These measures are not based on accounting
principles generally accepted in the United States (“GAAP”) and are
defined and reconciled below to the most directly comparable GAAP
measures.
Management Commentary
Barry Goldstein, Kingstone's Chairman and Chief Executive
Officer, commented, “While the macroeconomic environment continues
to impact Kingstone and others, we are on the right path towards
improved performance due to the actions we’ve taken as part of our
multiyear transformation. Fourth quarter results demonstrate clear
early signs of progress towards our goal of restoring Kingstone’s
profitability. We remain cautious in our underwriting despite
lessened competition. We are relentlessly focused on execution as
we work to drive enhanced value creation in 2023 and beyond.”
Jennifer Gravelle, Kingstone’s Chief Financial Offer, continued,
“Since joining Kingstone in January, I have come to appreciate the
talent of our team and compelling value of our services and
platform for our customers. Although there remains work to be done,
I’m confident that the most important strategic initiatives have
already been completed and optimistic that Kingstone can realize
improved results in 2023. Our net expense ratio for 2022 was 36.0%,
well below 2021 and in fact the lowest annual net expense ratio
since 2016. I look forward to working closely with the Board and
leadership team to build on Kingstone’s strong foundation and
achieve sustained profitability.”
Meryl Golden, Kingstone's Chief Operating Officer, concluded,
“We have a clear strategy in place to address current market
challenges, leveraging our strong business fundamentals and
strategic investments. Our efforts to aggressively increase our
premiums began in Q3 and, albeit minimal, the results can be seen
on a GAAP basis. We’re pleased that for New York Homeowners, which
represent more than 60% of our Q4 total personal lines business, we
have already seen a 25% increase in the average renewal premium.
Our four-pillar strategy for 2023 and 2024, coined Kingstone 3.0,
is focused on aggressively reducing the non-New York book of
business, adjusting pricing to stay ahead of loss trends including
inflation, tightly managing reinsurance requirements and costs and
continuing expense reduction efforts. By executing on these
initiatives, Kingstone will be positioned to achieve our goal of
returning to profitability in 2023.”
See “Forward-Looking Statements”
Financial Highlights Table
Three Months Ended Years Ended December 31,
December 31, ($ in thousands except per share data)
2022
2021
%
Change
2022
2021
%
Change
Direct written premiums1
$
53,901
$
50,055
7.7%
$
201,255
$
181,665
10.8%
Net written premiums1
$
33,450
$
19,000
76.2%
$
122,060
$
128,755
-5.2%
Net premiums earned
$
30,448
$
37,053
-17.8%
$
114,385
$
143,882
-20.5%
Total ceding commission revenue
$
5,036
$
52
9584.6%
$
19,319
$
90
21365.6%
Net investment income
$
1,525
$
1,484
2.8%
$
4,937
$
6,621
-25.4%
Net (losses) gains on investments
$
(78)
$
4,307
na
$
(9,392)
$
9,787
na U.S. GAAP Net (loss) income
$
(3,950)
$
2,228
na
$
(22,525)
$
(7,378)
-205.3%
U.S. GAAP Diluted (loss) earnings per share
$
(0.37)
$
0.21
na
$
(2.12)
$
(0.70)
-202.9%
Comprehensive loss
$
(3,930)
$
(2,182)
-80.1%
$
(40,280)
$
(15,462)
-160.5%
Net operating loss1
$
(3,888)
$
(1,175)
-230.9%
$
(15,105)
$
(15,110)
0.0%
Net operating loss1 per share
$
(0.36)
$
(0.11)
-236.1%
$
(1.42)
$
(1.43)
0.6%
Return on average equity (annualized)
-42.1%
11.6%
na
-40.2%
-8.8%
-31.4 pts Net loss ratio
81.3%
61.8%
19.5 pts
77.3%
70.9%
6.4 pts Net underwriting expense ratio
32.6%
39.5%
-6.9 pts
36.0%
40.6%
-4.6 pts Net combined ratio
113.9%
101.3%
12.6 pts
113.3%
111.5%
1.8 pts Effect of catastrophes and prior year loss
development on net combined ratio1 20.1 pts 6.8 pts 13.3 pts 9.1
pts 10.3 pts -1.2 pts Net combined ratio excluding effect of
catastrophes and prior year loss development1
93.8%
94.5%
-0.7 pts
104.2%
101.2%
3 pts 1 These measures are not based on GAAP and are defined
and reconciled below to the most directly comparable GAAP measures.
2022 Fourth Quarter and Year End
Financial Review
Net (loss) income: Net loss was
$4.0 million during the three-month period ended December 31, 2022,
compared to net income of $2.2 million in the prior year period.
The decrease in net income in the latest three-month period can be
attributed to catastrophe losses and prior year loss development
during the quarter partially offset by a decrease in the Company’s
expenses.
For the year ended December 31, 2022, the net loss was $22.5
million, up from a net loss of $7.4 million in the prior year. The
increase in net loss can be attributed to an increase in the net
loss ratio, as well as an increase in the net losses on investments
due to interest rate increases, partially offset by a decrease in
the Company’s net expense ratio attributable to ceding commissions
from the 30% personal lines quota share and other expense
reductions.
Earnings (Loss) per share (“EPS”):
Kingstone reported EPS of $(0.37) per diluted share for the three
months ended December 31, 2022, compared to EPS of $0.21 per
diluted share for the three months ended December 31, 2021. For the
year ended December 31, 2022, EPS was $(2.12) per diluted share
compared to EPS of $(0.70) per diluted share for the year ended
December 31, 2021. EPS for the three-month periods ended December
31, 2022 and 2021 was based on 10.7 million and 10.8 million
weighted average diluted shares outstanding, respectively. EPS for
the years ended December 31, 2022 and 2021 was based on 10.6
million and 10.6 million weighted average diluted shares
outstanding, respectively.
Direct Written Premiums,1 Net Written
Premiums1 and Net Premiums Earned Direct written premiums1
for the fourth quarter of 2022 were $53.9 million, an increase of
$3.8 million or 7.7% from $50.1 million in the prior year period.
The increase is primarily attributable to a $2.8 million increase
in premiums from our personal lines business and a $1.0 million
increase in our livery physical damage product. For the year ended
December 31, 2022, direct written premiums increased 10.8% to
$201.2 million, compared to $181.7 million in the prior year.
Direct written premiums from our personal lines business for the
year ended December 31, 2022 were $188.1 million, an increase of
$16.4 million, or 9.6%, from $171.7 million in the prior year.
Net written premiums1 increased $14.4 million, or 76.1% to $33.5
million during the three-month period ended December 31, 2022 from
$19.0 million in the prior year period. For the year ended December
31, 2022, net written premiums decreased 5.2% to $122.1 million,
compared to $128.8 million in the prior year. The increase in the
fourth quarter was attributable to the inception of a 30% personal
lines quota share treaty on a cut-off basis on December 30, 2021.
The inception cut-off on December 30, 2021 resulted in the ceding
of $22.9 million of unearned premiums to our reinsurers. The
decrease in net written premiums for the year is a result of the
30% personal lines quota share treaty in effect for all of
2022.
Net premiums earned for the quarter ended December 31, 2022
decreased 17.8% to $30.4 million, compared to $37.1 million for the
quarter ended December 31, 2021. For the year ended December 31,
2022, net premiums earned decreased 20.5% to $114.4 million,
compared to $143.9 million in the prior year. The decrease in the
fourth quarter and for the year was attributable to the inception
of the 30% personal lines quota share treaty on a cut-off basis on
December 30, 2021, partially offset by an increase in direct
written premiums.
Net Loss Ratio: For the quarter
ended December 31, 2022, the Company’s net loss ratio was 81.3%,
compared to 61.8% in the prior year period. The loss ratio
increased from the prior year period mainly due to an increase in
catastrophe loss and prior year development on the Company’s
commercial multi-peril line of business. The impact of catastrophe
losses was 13.6 points for 2022 compared to 6.8 points in the prior
year. Prior year development was 6.5 points in 2022 and no change
in the prior year.
For the year ended December 31, 2022, the net loss ratio was
77.3%, compared to 70.9% in the prior year. The net loss ratio was
higher than in the prior year mainly due to an increase in
frequency for the water peril, primarily from winter storms, and an
increase in severity due to inflation. The impact of catastrophe
losses was 6.7 points for 2022 compared to 10.3 points in the prior
year. Prior year development was 2.4 points in 2022 and no change
in the prior year.
Net Underwriting Expense Ratio: For
the quarter ended December 31, 2022, the net underwriting expense
ratio was 32.6% as compared to 39.5% in the prior year period, a
decrease of 6.9 percentage points. For the year ended December 31,
2022, the Company’s net underwriting expense ratio decreased to
36.0% from 40.6% in the prior year, a decrease of 4.6 percentage
points. The decrease in the fourth quarter and for the full year
was primarily attributable to the increase in provisional ceding
commissions from the 30% personal lines quota share, a decrease in
IT expenses from the retirement of the Company’s legacy systems,
and changes to producer commissions and profit sharing.
____________________ 1 These measures are not based on GAAP and
are defined and reconciled below to the most directly comparable
GAAP measures.
Balance Sheet / Investment
Portfolio Kingstone’s cash and investment holdings were
$191.0 million at December 31, 2022 compared to $237.9 million at
December 31, 2021. The Company’s investment holdings are comprised
primarily of investment grade corporate, mortgage-backed and
municipal securities, with fixed income investments representing
approximately 90.7% of total investments at December 31, 2022 and
77.7% at December 31, 2021. The Company’s effective duration on its
fixed-income portfolio is 4.5 years.
Net investment income increased 2.8% to $1.53 million for the
fourth quarter of 2022 from $1.48 million in the prior year period.
Net investment income decreased 25.4% to $4.9 million for the year
ended December 31, 2022 from $6.6 million in the prior year.
Accumulated Other Comprehensive Income /
(Loss) (“AOCI”), net of tax As of December 31, 2022, AOCI
was a loss of $(16.0) million compared to income of $1.8 million at
December 31, 2021. The decrease in AOCI at December 31, 2022 of
$(17.8) million is attributable to the impact of increased interest
rates since December 31, 2021.
Share Repurchase Program
The Company did not repurchase any shares during the year.
Book Value The Company’s
book value per share at December 31, 2022 was $3.38, a decline of
53.2% compared to $7.22 at December 31, 2021.
31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22
31-Dec-21 Book Value Per Share
$
3.38
$
3.65
$
4.42
$
5.50
$
7.22
% Increase from specified period to 12/31/22
-7.4%
-23.5%
-38.5%
-53.2%
Book value excluding Accumulated Other
Comprehensive (Loss) Income per Share1
The Company’s book value excluding Accumulated Other
Comprehensive (Loss) per share at December 31, 2022 was $4.87, a
decline of 30.9% compared to $7.05 at December 31, 2021.
31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22
31-Dec-21 Book Value Excluding Accumulated Other
Comprehensive (Loss) Income Per Share1
$
4.87
$
5.15
$
5.55
$
6.06
$
7.05
% Increase from specified period to 12/31/22
-5.4%
-12.2%
-19.6%
-30.9%
____________________
1 This measure is not based on GAAP and is defined and
reconciled below to the most directly comparable GAAP measure.
Conference Call Details
Management will discuss the Company’s operations and financial
results in a conference call on Friday, March 31, 2023, at 8:30
a.m. ET.
The dial-in numbers are: 877-407-3105 (U.S.) 201-493-6794
(International)
Accompanying Webcast The
call will be simultaneously webcast over the Internet via the
Kingstone website or by clicking on the conference call link:
Kingstone Companies Q4 and Full Year 2022 Earnings
Webcast The webcast will be archived and accessible for
approximately 30 days.
Definitions and Non-GAAP
Measures
Direct written premiums
represent the total premiums charged on policies issued by the
Company during the respective fiscal period. Net premiums written are direct written
premiums less premiums ceded to reinsurers. Net premiums earned,
the GAAP measure most comparable to direct written premiums and net
premiums written, are net premiums written that are pro-rata earned
during the fiscal period presented. All of the Company’s policies
are written for a twelve-month period. Management uses direct
written premiums and net premiums written, along with other
measures, to gauge the Company’s performance and evaluate
results.
Net operating income (loss)
- is net income (loss) exclusive of realized investment gains
(losses), net of tax. Net income (loss) is the GAAP measure most
closely comparable to net operating income (loss).
Management uses net operating income (loss) along with other
measures to gauge the Company’s performance and evaluate results,
which can be skewed when including realized investment gains
(losses), and may vary significantly between periods. Net operating
income (loss) is provided as supplemental information, not as a
substitute for net income (loss) and does not reflect the Company’s
overall profitability.
Book value excluding accumulated other
comprehensive (loss) income per share - is book value
per share excluding the impact of accumulated other comprehensive
(loss) income or AOCI. Management uses book
value excluding accumulated other comprehensive (loss) income per
share to evaluate the results to exclude the impact of
interest rate changes on our fixed income portfolio.
Net combined ratio excluding effect of
catastrophes and prior year loss development - is a
non-GAAP ratio, which is computed as the difference between GAAP
net combined ratio and the effect of catastrophes and prior year
loss development on the net combined ratio.
We believe that these ratios are useful to investors and they
are used by management to reveal the trends in our business that
may be obscured by catastrophe losses and prior year loss
development. Catastrophe losses cause our loss ratios to vary
significantly between periods as a result of their incidence of
occurrence and magnitude, and can have a significant impact on the
net loss ratio and net combined ratio. Prior year loss development
can cause our loss ratio to vary significantly between periods and
separating this information allows us to better compare the results
for the current accident period over time. We believe these
measures are useful for investors to evaluate these components
separately and in the aggregate when reviewing our underwriting
performance. We also provide them to facilitate a comparison to our
outlook on the net combined ratio excluding the effect of
catastrophes and prior year loss development. The most directly
comparable GAAP measure is the net combined ratio. The net combined
ratio excluding the effect of catastrophes and prior year loss
development should not be considered a substitute for the net
combined ratio and does not reflect the Company’s net combined
ratio.
______________
The table below reconciles direct written premiums and net
written premiums to net premiums earned for the periods
presented:
For the Three Months Ended For the Years Ended
December 31, December 31, % %
2022
2021
$ Change Change
2022
2021
$ Change Change (000’s except percentages)
Direct
and Net Written Premiums Reconciliation: Direct
written premiums
$
53,901
$
50,055
$
3,846
7.7
%
$
201,255
$
181,665
$
19,590
10.8
%
Ceded written premiums
(20,451)
(31,055)
10,604
(34.1)
(79,195)
(52,910)
(26,285)
49.7
Net written premiums
33,450
19,000
14,450
76.1
%
122,060
128,755
(6,695)
(5.2)
%
Change in unearned premiums
(3,002)
18,053
(21,055)
(116.6)
(7,675)
15,127
(22,802)
(150.7)
Net premiums earned
$
30,448
$
37,053
$
(6,605)
(17.8)
%
$
114,385
$
143,882
$
(29,498)
(20.5)
%
(Components may not sum due to rounding)
______________
The following table reconciles net operating loss to net
(loss) income for the periods indicated:
For the Three Months Ended For the Years Ended
December 31, 2022 December 31, 2021 December 31,
2022 December 31, 2021 Amount Diluted
earnings(loss) per common share Amount Diluted earnings(loss) per
common share Amount Diluted earnings(loss) per common share Amount
Diluted earnings(loss) per common share (000’s except per common
share amounts and percentages)
Net (Loss) Income and Diluted
(Loss) Earnings per Common Share Reconciliation: Net
(loss) income
$
(3,950)
$
(0.37)
$
2,228
$
0.21
$
(22,525)
$
(2.12)
$
(7,378)
$
(0.70)
Net realized loss (gain) on investments
78
(4,307)
9,392
(9,787)
Less tax benefit (expense) on net realized loss (gain)
16
(904)
1,972
(2,055)
Net realized loss (gain) on investments, net of taxes
62
$
0.01
(3,403)
$
(0.31)
7,420
$
0.70
(7,732)
$
(0.73)
Net operating loss
$
(3,888)
$
(0.36)
$
(1,175)
$
(0.11)
$
(15,105)
$
(1.42)
$
(15,110)
$
(1.43)
Weighted average diluted shares outstanding
10,660,426
10,828,313
10,645,365
10,587,912
(Components may not sum due to rounding)
_______________
The following table reconciles book value excluding
accumulated other comprehensive (loss) income to book value as of
the dates indicated:
31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22
31-Dec-21 Book Value Per Share
$
3.38
$
3.65
$
4.42
$
5.50
$
7.22
Accumulated other comprehensive (loss) income
$
(15,958,428)
$
(15,978,570)
$
(11,994,258)
$
(5,964,578)
$
1,796,739
Shares outstanding
10,700,106
10,645,675
10,645,675
10,637,901
10,484,254
Accumulated other comprehensive (loss) income per common
share
$
(1.49)
$
(1.50)
$
(1.13)
$
(0.56)
$
0.17
Book value excluding accumulated other comprehensive
(loss) income per share
$
4.87
$
5.15
$
5.55
$
6.06
$
7.05
(Components may not sum due to rounding)
The following table reconciles the net combined ratio
excluding catastrophes and prior year loss development to the net
combined ratio for the periods presented:
For the Three Months Ended For the Years Ended
December 31, December 31,
2022
2021
Percentage Point Change
2022
2021
Percentage Point Change Net Combined Ratio Excluding
Catastrophes and Prior Year Development Reconciliation: Net
Combined Ratio Excluding Catastrophes and Prior Year
Development
93.8%
94.5%
(0.7)
pts
104.2%
101.2%
3.0
pts Effect of catastrophe losses and prior year development
Catastrophe losses
13.6%
6.8%
6.8
pts
6.7%
10.3%
(3.6)
pts Prior year development
6.5%
0.0%
6.5
pts
2.4%
0.0%
2.4
pts Effect of catastrophe losses and prior year development on net
loss and loss adjustment expenses
20.1%
6.8%
13.3
pts
9.1%
10.3%
(1.2)
pts Net underwriting expense ratio
0.0%
0.0%
-
pts
0.0%
0.0%
-
pts Total effect of catastrophe losses and prior year development
20.1%
6.8%
13.3
pts
9.1%
10.3%
(1.2)
pts
Net combined ratio
113.9%
101.3%
12.6
pts
113.3%
111.5%
1.8
pts
__________________
The following table reconciles the net loss ratio excluding
catastrophes and prior year loss development to the net loss ratio
for the periods presented:
For the Three Months Ended For the Years Ended
December 31, December 31,
2022
2021
Percentage Point Change
2022
2021
Percentage Point Change Net Loss Ratio Excluding
Catastrophes and Prior Year Development Reconciliation:
Net Loss Ratio Excluding Catastrophes and Prior Year
Development
61.2%
55.0%
6.2
pts
68.2%
60.6%
7.6
pts Effect of catastrophe losses and prior year
development Catastrophe losses
13.6%
6.8%
6.8
pts
6.7%
10.3%
(3.6)
pts Prior year development
6.5%
0.0%
6.5
pts
2.4%
0.0%
2.4
pts Effect of catastrophe losses and prior year development on net
loss and loss adjustment expenses
20.1%
6.8%
13.3
pts
9.1%
10.3%
(1.2)
pts
Net loss ratio
81.3%
61.8%
19.5
pts
77.3%
70.9%
6.4
pts
_______________
The following table summarizes gross and net written
premiums, net premiums earned, net loss and loss adjustment
expenses and net loss ratio by major product type, which were
determined based primarily on similar economic characteristics and
risks of loss.
For the Three Months Ended For the Years Ended
December 31, December 31,
2022
2021
2022
2021
Gross premiums written: Personal lines(3)
$
49,906,923
$
47,126,691
$
188,104,883
$
171,719,993
Livery physical damage
3,956,192
2,879,659
12,992,905
9,716,658
Other(1)
37,811
48,898
157,049
229,383
Total without commercial lines
53,900,926
50,055,248
201,254,837
181,666,034
Commercial lines (in run-off effective July 2019)(2)
-
-
-
(856)
Total gross premiums written
$
53,900,926
$
50,055,248
$
201,254,837
$
181,665,178
Net premiums written: Personal lines(3)
$
29,466,212
$
16,101,502
$
108,953,413
$
118,842,870
Livery physical damage
3,956,192
2,879,659
12,992,905
9,716,658
Other(1)
27,279
18,791
113,503
196,812
Total without commercial lines
33,449,683
18,999,952
122,059,821
128,756,340
Commercial lines (in run-off effective July 2019)(2)
-
-
-
(856)
Total net premiums written
$
33,449,683
$
18,999,952
$
122,059,821
$
128,755,484
Net premiums earned: Personal lines(3)
$
27,272,564
$
34,684,069
$
103,019,573
$
135,738,484
Livery physical damage
3,144,802
2,311,186
11,226,975
7,909,791
Other(1)
30,741
57,569
137,983
234,300
Total without commercial lines
30,448,107
37,052,824
114,384,531
143,882,575
Commercial lines (in run-off effective July 2019)(2)
-
-
-
(856)
Total net premiums earned
$
30,448,107
$
37,052,824
$
114,384,531
$
143,881,719
Net loss and loss adjustment expenses(4): Personal
lines
$
20,610,295
$
21,103,882
$
76,906,768
$
93,849,714
Livery physical damage
1,329,286
765,790
5,056,461
4,235,255
Other(1)
32,956
(48,173)
18,083
(5,521)
Unallocated loss adjustment expenses
831,016
912,833
3,701,131
3,696,380
Total without commercial lines
22,803,553
22,734,332
85,682,443
101,775,828
Commercial lines (in run-off effective July 2019)(2)
1,961,734
178,147
2,707,599
196,768
Total net loss and loss adjustment expenses
$
24,765,287
$
22,912,479
$
88,390,042
$
101,972,596
Net loss ratio(4): Personal lines
75.6%
60.8%
74.7%
69.1%
Livery physical damage
42.3%
33.1%
45.0%
53.5%
Other(1)
107.2%
-83.7%
13.1%
-2.4%
Total without commercial lines
74.9%
61.4%
74.9%
70.7%
Commercial lines (in run-off effective July 2019)(2) na na na na
Total
81.3%
61.8%
77.3%
70.9%
- “Other” includes, among other things, premiums and loss and
loss adjustment expenses from our participation in a mandatory
state joint underwriting association and loss and loss adjustment
expenses from commercial auto.
- In July 2019, the Company decided that it will no longer
underwrite Commercial Liability risks. See discussions above
regarding the discontinuation of this line of business.
- See discussion with regard to “Direct Written Premiums, Net
Written Premiums and Net Premiums Earned” above.
- See discussions above with regard to “Net Loss Ratio”.
Consolidated Statements of Operations and Comprehensive Loss
For the Three Months Ended For the Years Ended
December 31, December 31,
2022
2021
2022
2021
Revenues (Unaudited) (Unaudited) (Unaudited) Net premiums
earned
$
30,448,107
$
37,052,824
$
114,384,531
$
143,881,719
Ceding commission revenue
5,036,314
52,281
19,319,391
89,681
Net investment income
1,524,832
1,483,525
4,936,778
6,621,392
Net (losses) gains on investments
(78,429)
4,306,753
(9,391,865)
9,786,955
Other income
160,286
274,233
910,455
851,494
Total revenues
37,091,110
43,169,616
130,159,290
161,231,241
Expenses Loss and loss adjustment expenses
24,765,287
22,912,479
88,390,042
101,972,596
Commission expense
9,047,310
8,402,988
34,581,617
33,114,103
Other underwriting expenses
5,979,959
6,531,438
26,697,006
26,254,143
Other operating expenses
756,106
1,042,134
3,113,473
4,183,211
Depreciation and amortization
828,097
810,360
3,300,445
3,290,445
Interest expense
649,412
456,545
2,019,047
1,826,180
Total expenses
42,026,171
40,155,944
158,101,630
170,640,678
(Loss) income from operations before taxes
(4,935,061)
3,013,672
(27,942,340)
(9,409,437)
Income tax (benefit) expense
(985,039)
785,972
(5,417,546)
(2,031,136)
Net (loss) income
(3,950,022)
2,227,700
(22,524,794)
(7,378,301)
Other comprehensive loss, net of tax Gross change in
unrealized losses on available-for-sale-securities
16,090
(1,532,821)
(22,540,229)
(5,111,234)
Reclassification adjustment for losses (gains) included in
net loss
9,406
(4,049,383)
65,333
(5,120,822)
Net change in unrealized gains (losses)
25,496
(5,582,204)
(22,474,896)
(10,232,056)
Income tax (expense) benefit related to items of other
comprehensive income (loss)
(5,354)
1,172,263
4,719,729
2,148,733
Other comprehensive income (loss), net of tax
20,142
(4,409,941)
(17,755,167)
(8,083,323)
Comprehensive loss
$
(3,929,880)
$
(2,182,241)
$
(40,279,961)
$
(15,461,624)
(Loss) earnings per common share: Basic
$
(0.37)
$
0.21
$
(2.12)
$
(0.70)
Diluted
$
(0.37)
$
0.21
$
(2.12)
$
(0.70)
Weighted average common shares outstanding Basic
10,660,426
10,483,894
10,645,365
10,587,912
Diluted
10,660,426
10,828,313
10,645,365
10,587,912
Dividends declared and paid per common share
$
-
$
0.04
$
0.12
$
0.16
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets December 31, December
31,
2022
2021
(unaudited)
Assets Fixed-maturity securities,
held-to-maturity, at amortized cost (fair value of $6,600,388 at
December 31, 2022 and $8,753,159 at December 31, 2021)
$
7,766,140
$
8,266,334
Fixed-maturity securities, available-for-sale, at fair value
(amortized cost of $174,918,427 at December 31, 2022 and
$155,808,478 at December 31, 2021)
154,715,163
158,080,110
Equity securities, at fair value (cost of $18,086,700 at December
31, 2022 and $37,470,669 at December 31, 2021)
13,834,390
39,687,002
Other investments
2,771,652
7,561,415
Total investments
179,087,345
213,594,861
Cash and cash equivalents
11,958,228
24,290,598
Premiums receivable, net
13,880,504
12,318,336
Reinsurance receivables, net
66,465,061
40,292,438
Deferred policy acquisition costs
23,819,453
22,238,987
Intangible assets
500,000
500,000
Property and equipment, net
10,541,935
9,291,597
Deferred income taxes, net
10,331,158
192,253
Other assets
3,748,847
8,593,205
Total assets
$
320,332,531
$
331,312,275
Liabilities Loss and loss adjustment expense reserves
$
118,339,513
$
94,948,745
Unearned premiums
107,492,777
97,759,607
Advance premiums
2,839,028
2,693,466
Reinsurance balances payable
13,061,966
12,961,568
Deferred ceding commission revenue
10,619,569
9,748,508
Accounts payable, accrued expenses and other liabilities
6,651,723
7,704,396
Debt, net
25,158,523
29,823,791
Total liabilities
284,163,099
255,640,081
Commitments and Contingencies Stockholders'
Equity Preferred stock, $.01 par value; authorized 2,500,000
shares
-
-
Common stock, $.01 par value; authorized 20,000,000 shares; issued
12,171,512 shares at December 31, 2022 and 11,955,660 shares at
December 31, 2021; outstanding 10,700,106 shares at December 31,
2022 and 10,484,254 shares at December 31, 2021
121,715
119,557
Capital in excess of par
74,519,590
72,467,483
Accumulated other comprehensive (loss) income
(15,958,428)
1,796,739
(Accumulated deficit) retained earnings
(16,945,964)
6,855,896
41,736,913
81,239,675
Treasury stock, at cost, 1,471,406 shares at December 31, 2022 and
December 31, 2021
(5,567,481)
(5,567,481)
Total stockholders' equity
36,169,432
75,672,194
Total liabilities and stockholders' equity
$
320,332,531
$
331,312,275
About Kingstone Companies,
Inc.
Kingstone is a northeast regional property and casualty
insurance holding company whose principal operating subsidiary is
Kingstone Insurance Company (“KICO”). KICO is a New York domiciled
carrier writing business through retail and wholesale agents and
brokers. KICO offers primarily personal lines insurance products in
New York, New Jersey, Rhode Island, Massachusetts, and Connecticut.
Kingstone is also licensed in Pennsylvania, New Hampshire and
Maine.
Forward-Looking
Statements
Statements in this press release may contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of
historical facts, may be forward-looking statements. These
statements are based on management’s current expectations and are
subject to uncertainty and changes in circumstances. These
statements involve risks and uncertainties that could cause actual
results to differ materially from those included in forward-looking
statements due to a variety of factors. For more details on factors
that could affect expectations, see Part I, Item 1A (“Risk
Factors”) of our Annual Report on Form 10-K for the year ended
December 31, 2022 to be filed with the Securities and Exchange
Commission and Part I, Item 1A (“Risk Factors”) of our Annual
Report on Form 10-K for the year ended December 31, 2021 under
“Factors That May Affect Future Results and Financial Condition”,
filed with the Securities and Exchange Commission. These risks and
uncertainties include, without limitation, the following:
- As a property and casualty insurer, we may face significant
losses from catastrophes and severe weather events.
- Unanticipated increases in the severity or frequency of claims
may adversely affect our operating results and financial
condition.
- We are exposed to significant financial and capital markets
risk which may adversely affect our results of operations,
financial condition and liquidity, and our net investment income
can vary from period to period.
- The insurance industry is subject to extensive regulation that
may affect our operating costs and limit the growth of our
business, and changes within this regulatory environment may
adversely affect our operating costs and limit the growth of our
business.
- Changing climate conditions may adversely affect our financial
condition, profitability or cash flows.
- Because a significant portion of our revenue is currently
derived from sources located in New York, our business may be
adversely affected by conditions in such state.
- We are highly dependent on a relatively small number of
insurance brokers for a large portion of our revenues.
- Actual claims incurred may exceed current reserves established
for claims, which may adversely affect our operating results and
financial condition.
- We rely on our information technology and telecommunication
systems, and the failure of these systems could materially and
adversely affect our business.
Kingstone undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230330005609/en/
Kingstone Companies, Inc.
Jennifer Gravelle Chief Financial Officer (845) 768-1970
Grafico Azioni Kingstone Companies (NASDAQ:KINS)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Kingstone Companies (NASDAQ:KINS)
Storico
Da Giu 2023 a Giu 2024