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Kingstone Announces Record Operating Profitability and Growth and Schedules Third Quarter 2024 Conference Call

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Kingstone Companies (NASDAQ:KINS) reported strong preliminary Q3 2024 results with significant improvements across key metrics. The company achieved 28% direct written premium growth and a consolidated GAAP combined ratio of 72%, representing a 38 percentage point improvement year-over-year. The net loss ratio improved by 40 percentage points to 39%. Operating income reached $0.55 per basic share, compared to a loss of $(0.27) in Q3 2023.

For the nine months ended September 30, 2024, the company reported 15% direct written premium growth, an improved GAAP combined ratio of 81%, and operating income of $1.07 per basic share versus a loss of $(0.89) in the prior year period.

Kingstone Companies (NASDAQ:KINS) ha riportato risultati preliminari solidi per il terzo trimestre del 2024, con miglioramenti significativi in tutte le metriche chiave. L'azienda ha raggiunto una crescita del 28% dei premi diretti scritti e un rapporto combinato GAAP consolidato del 72%, che rappresenta un miglioramento di 38 punti percentuali rispetto all'anno precedente. Il rapporto di perdita netto è migliorato di 40 punti percentuali, scendendo al 39%. Il reddito operativo ha raggiunto 0,55 $ per azione base, rispetto a una perdita di (0,27 $) nel terzo trimestre del 2023.

Per i nove mesi conclusisi il 30 settembre 2024, l'azienda ha riportato una crescita del 15% dei premi diretti scritti, un rapporto combinato GAAP migliorato dell'81% e un reddito operativo di 1,07 $ per azione base, rispetto a una perdita di (0,89 $) nel periodo dell'anno precedente.

Kingstone Companies (NASDAQ:KINS) reportó sólidos resultados preliminares del tercer trimestre de 2024, con mejoras significativas en todas las métricas clave. La empresa logró un crecimiento del 28% en primas directas escritas y un ratio combinado GAAP consolidado del 72%, lo que representa una mejora de 38 puntos porcentuales en comparación con el año anterior. El ratio de pérdidas netas mejoró en 40 puntos porcentuales, alcanzando el 39%. El ingreso operativo llegó a $0.55 por acción básica, en comparación con una pérdida de $(0.27) en el tercer trimestre de 2023.

Durante los nueve meses que terminaron el 30 de septiembre de 2024, la empresa reportó un crecimiento del 15% en primas directas escritas, un ratio combinado GAAP mejorado del 81% y un ingreso operativo de $1.07 por acción básica frente a una pérdida de $(0.89) en el mismo periodo del año anterior.

킹스톤 컴퍼니즈 (NASDAQ:KINS)는 2024년 3분기 강력한 예비 결과를 보고하며 주요 지표에서 상당한 개선을 보였습니다. 회사는 28%의 직접 작성 보험료 성장을 달성했으며, GAAP 기준의 통합 손해율은 72%로 전년 대비 38%포인트 개선되었습니다. 순손해율은 40%포인트 개선되어 39%에 도달했습니다. 운영 수익은 기본 주당 0.55달러에 달했으며, 2023년 3분기에는 (0.27달러)의 손실을 기록했습니다.

2024년 9월 30일 종료된 9개월 동안, 회사는 15%의 직접 작성 보험료 성장을 보고했으며, GAAP 기준의 개선된 손해율 81%와 기본 주당 $1.07의 운영 수익을 기록했습니다. 이는 전년도 동기 대비 (0.89달러)의 손실에서 개선된 수치입니다.

Kingstone Companies (NASDAQ:KINS) a annoncé des résultats préliminaires solides pour le troisième trimestre de 2024, avec des améliorations significatives dans toutes les mesures clés. La société a atteint une croissance de 28 % des primes directes écrites et un ratio combiné GAAP consolidé de 72 %, représentant une amélioration de 38 points de pourcentage d'une année sur l'autre. Le ratio de pertes nettes s'est amélioré de 40 points de pourcentage pour atteindre 39 %. Le revenu opérationnel a atteint 0,55 $ par action de base, contre une perte de (0,27 $) au cours du troisième trimestre 2023.

Pour les neuf mois se terminant le 30 septembre 2024, la société a signalé une croissance de 15 % des primes directes écrites, un ratio combiné GAAP amélioré de 81 % et un revenu opérationnel de 1,07 $ par action de base contre une perte de (0,89 $) pour la période de l'année précédente.

Kingstone Companies (NASDAQ:KINS) hat starke vorläufige Ergebnisse für das dritte Quartal 2024 gemeldet, mit erheblichen Verbesserungen in allen wichtigen Kennzahlen. Das Unternehmen erzielte ein Wachstum der direkt geschriebenen Prämien von 28% und ein konsolidiertes GAAP-Kombinationsverhältnis von 72%, was eine Verbesserung um 38 Prozentpunkte im Jahresvergleich darstellt. Das Nettoverlustverhältnis verbesserte sich um 40 Prozentpunkte auf 39%. Der Betriebsgewinn erreichte 0,55 $ pro Stammaktie, verglichen mit einem Verlust von (0,27 $) im dritten Quartal 2023.

Für die neun Monate bis zum 30. September 2024 berichtete das Unternehmen ein Wachstum der direkt geschriebenen Prämien von 15%, ein verbessertes GAAP-Kombinationsverhältnis von 81% und einen Betriebsgewinn von 1,07 $ pro Stammaktie im Vergleich zu einem Verlust von (0,89 $) im Vorjahreszeitraum.

Positive
  • Direct written premium growth of 28% in Q3 2024
  • GAAP combined ratio improved by 38 percentage points to 72%
  • Net loss ratio improved by 40 percentage points to 39%
  • Operating income per basic share of $0.55 vs loss of $(0.27) in Q3 2023
  • Nine-month operating income per basic share of $1.07 vs loss of $(0.89)
Negative
  • Net expense ratio increased by 1 percentage point in Q3 2024
  • Catastrophe loss & LAE of $582 thousand in Q3 2024
  • Catastrophe loss & LAE of $2.5M for nine months ended September 2024

Insights

The preliminary Q3 2024 results show remarkable improvements in Kingstone's operational metrics. The 28% growth in direct written premiums and 39% core premium growth demonstrate strong market penetration. Most notably, the GAAP combined ratio improved dramatically to 72%, a 38% point enhancement, indicating significantly better underwriting performance.

The shift from an operating loss of $0.27 per share in Q3 2023 to operating income of $0.55 per basic share represents a substantial turnaround. The net loss ratio improvement of 40% points to 39% suggests much better risk management and claims handling. With catastrophe losses contained at $582,000, the company appears to have strengthened its risk mitigation strategies.

The nine-month metrics reinforce this positive trajectory, with sustained premium growth and profitability improvements across key metrics. The expense ratio remains well-controlled, suggesting operational efficiency despite growth initiatives.

KINGSTON, NY / ACCESSWIRE / October 29, 2024 / Kingstone Companies, Inc. (NASDAQ:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, announced today certain preliminary financial results for its third quarter and nine months ended September 30, 2024, and announced that it will hold its third quarter 2024 financial results conference call on Wednesday, November 13, 2024, at 8:30 a.m. Eastern Time. The financial results news release is expected to be issued after the market closes on Tuesday, November 12, 2024.

Preliminary Results

(Estimated and Unaudited)

Third Quarter 2024 (all metrics are compared to Third Quarter 2023):

  • Direct written premium growth1 of 28%; Core2 direct written premium growth1 of 39%.

  • Consolidated GAAP combined ratio of 72%, a 38 percentage point improvement.

    • Net loss ratio of 39%, a 40 percentage point improvement.

    • Catastrophe loss & LAE of $582 thousand included in the net loss ratio.

    • Net expense ratio of 33%, a 1 percentage point increase.

  • Operating income per basic share1 of $0.55 versus an operating loss per basic share1 of $(0.27).

  • Operating income per diluted share1 of $0.50 versus an operating loss per diluted share1 of $(0.27).

Nine Months Ended September 30, 2024 (all metrics are compared to Nine Months Ended September 30, 2023):

  • Direct written premium growth1 of 15%; Core2 direct written premium growth1 of 25%.

  • Consolidated GAAP combined ratio of 81%, a 30 percentage point improvement.

    • Net loss ratio of 49%, a 29 percentage point improvement.

    • Catastrophe loss & LAE of $2.5M included in the net loss ratio.

    • Net expense ratio of 32%, a 1 percentage point improvement.

  • Operating income per basic share1 of $1.07 versus an operating loss per basic share of $(0.89).

  • Operating income per diluted share1 of $0.97 versus an operating loss per diluted share of $(0.89).

Conference Call Details

Wednesday, November 13, 2024, at 8:30 a.m. Eastern Time

To participate please dial:
U.S. toll free 1-877-423-9820
International 1-201-493-6749

Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin. The conference call can also be accessed via webcast in the "Events & Presentations" tab of the Company's website or by clicking here. 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 earned, the GAAP measure most comparable to direct written premiums, are net written premiums (i.e., direct written premiums less premiums ceded to reinsurers) 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, along with other measures, to gauge the Company's performance and evaluate results. Direct written premiums are provided as supplemental information, not as a substitute for net premiums earned, and do not reflect the Company's net premiums earned.

The table below reconciles preliminary direct written premiums to preliminary net premiums earned for the periods presented:

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2024

2023

%
Change

2024

2023

%
Change

(000's except percentages)

Direct Written Premiums Reconciliation:

Direct written premiums

$

66,627

$

51,992

28.1

%

$

169,447

$

147,237

15.1

%

Ceded written premiums1

(46,081

)

(48,317

)

(4.6

)

(69,381

)

(75,964

)

(8.7

)

Net written premiums

20,545

3,675

459.0

100,065

71,273

40.4

Change in unearned premiums

12,862

24,263

(47.0

)

(7,535

)

14,428

(152.2

)

Net premiums earned

$

33,407

$

27,938

19.6

%

$

92,531

$

85,701

8.0

%

(Components may not sum due to rounding)

1Components of ceded written premiums balances from prior year periods were reclassified to conform with the current year presentation. The reclassification had no effect on the Company's previously reported financial condition, results of operations or cash flows.

Operating income (loss) per basic share is basic income (loss) per share exclusive of net gains (losses) on investments, net of tax. Net income (loss) per basic share is the GAAP measure most closely comparable to operating income (loss) per basic share.

Management uses operating income (loss) per basic share, along with other measures, to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments and may vary significantly between periods. Operating income (loss) per basic share is provided as supplemental information, not as a substitute for net income (loss) per basic share, and does not reflect the Company's overall profitability.

The following table reconciles preliminary basic income (loss) per share to preliminary basic operating income (loss) per share for the periods indicated:

For the Three Months Ended

For the Nine Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Basic income per common share

Basic loss per common share

Basic income per common share

Basic loss per common share

Operating Income (Loss) per Basic Common Share Reconciliation:

Net income (loss)

$

0.61

$

(0.33

)

$

1.16

$

(0.85

)

Net realized (gain) loss on investments, net of taxes

$

(0.06

)

$

0.06

$

(0.09

)

$

(0.04

)

Operating income (loss)

$

0.55

$

(0.27

)

$

1.07

$

(0.89

)

Operating income (loss) per diluted share is diluted income (loss) per share exclusive of net gains (losses) on investments, net of tax. Net income (loss) per diluted share is the GAAP measure most closely comparable to operating income (loss) per diluted share.

Management uses operating income (loss) per diluted share, along with other measures, to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments and may vary significantly between periods. Operating income (loss) per diluted share is provided as supplemental information, not as a substitute for net income (loss) per diluted share, and does not reflect the Company's overall profitability.

The following table reconciles preliminary diluted income (loss) per share to preliminary diluted operating income (loss) per share for the periods indicated:

For the Three Months Ended

For the Nine Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Diluted income per common share

Diluted loss per common share

Diluted income per common share

Diluted loss per common share

Operating Income (Loss) per Diluted Common Share Reconciliation:

Net income (loss)

$

0.55

$

(0.33

)

$

1.05

$

(0.85

)

Net realized (gain) loss on investments, net of taxes

$

(0.05

)

$

0.06

$

(0.09

)

$

(0.04

)

Operating income (loss)

$

0.50

$

(0.27

)

$

0.97

$

(0.89

)

(Components may not sum due to rounding)

Disclaimer and Forward-Looking Statements

The estimated, unaudited financial results indicated above are based on information available as of October 29, 2024, remain subject to change based on management's ongoing review of the Company's third quarter results and are forward-looking statements (see below). The actual results may be materially different and are affected by the risk factors and uncertainties identified in Kingstone's annual and quarterly filings with the Securities and Exchange Commission.

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 of our Annual Report on Form 10-K for the year ended December 31, 2023.

The risks and uncertainties include, without limitation, the following:

  • the risk of significant losses from catastrophes and severe weather events;

  • risks related to the lack of a financial strength rating from A.M. Best;

  • risks related to our indebtedness due on June 30, 2026, including due to the need to comply with certain financial covenants and limitations on the ability of our insurance subsidiary to pay dividends to us;

  • adverse capital, credit and financial market conditions;

  • the unavailability of reinsurance at current levels and prices;

  • the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;

  • the credit risk of our reinsurers;

  • the inability to maintain the requisite amount of risk-based capital needed to grow our business;

  • the effects of climate change on the frequency or severity of weather events and wildfires;

  • risks related to the limited market area of our business;

  • risks related to a concentration of business in a limited number of producers;

  • legislative and regulatory changes, including changes in insurance laws and regulations and their application by our regulators;

  • limitations with regard to our ability to pay dividends;

  • the effects of competition in our market areas;

  • our reliance on certain key personnel;

  • risks related to security breaches or other attacks involving our computer systems or those of our vendors; and

  • our reliance on information technology and information systems.

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.

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 is actively writing personal lines and commercial auto insurance in New York, and in 2023 was the 15th largest writer of homeowners insurance in New York. KICO is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.

Investor Relations Contact:

Karin Daly
Vice President
The Equity Group Inc.
kdaly@equityny.com

1These measures are not based on GAAP; definitions and reconciliations to the most directly comparable GAAP measures are below. See "Definitions and Non-GAAP Measures".

2Kingstone refers to New York business as its "core" business and the business outside of New York as its "non-core" business. The aggregate of "core" and "non-core" direct written premium growth is represented by direct written premium growth.

SOURCE: Kingstone Companies, Inc


View the original press release on accesswire.com

FAQ

What was Kingstone's (KINS) direct written premium growth in Q3 2024?

Kingstone reported a 28% direct written premium growth in Q3 2024 compared to Q3 2023.

How did Kingstone's (KINS) operating income per share change in Q3 2024?

Operating income improved to $0.55 per basic share in Q3 2024, compared to an operating loss of $(0.27) per basic share in Q3 2023.

What was Kingstone's (KINS) combined ratio in Q3 2024?

Kingstone's consolidated GAAP combined ratio was 72% in Q3 2024, showing a 38 percentage point improvement from Q3 2023.

How much were Kingstone's (KINS) catastrophe losses in Q3 2024?

Kingstone reported catastrophe loss & LAE of $582 thousand in Q3 2024.

Kingstone Companies, Inc.

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