Kingstone Announces Third Consecutive Profitable Quarter as Company Turnaround Takes Hold and Schedules Second Quarter 2024 Conference Call
Kingstone Companies (Nasdaq:KINS) reported preliminary Q2 2024 results, marking its third consecutive profitable quarter. Highlights include:
- 12% growth in direct written premiums
- Consolidated GAAP combined ratio of 78%, a 21 percentage point improvement
- Net loss ratio of 47%, a 20 percentage point improvement
- Operating income per basic share of $0.43 vs. loss of $(0.06) in Q2 2023
- Operating income per diluted share of $0.39 vs. loss of $(0.06) in Q2 2023
For the six months ended June 30, 2024, Kingstone reported 8% growth in direct written premiums and a consolidated GAAP combined ratio of 86%, a 25 percentage point improvement. The company will hold its Q2 2024 financial results conference call on August 13, 2024.
Kingstone Companies (Nasdaq:KINS) ha riportato risultati preliminari per il secondo trimestre del 2024, segnando il terzo trimestre consecutivo in utile. I punti salienti includono:
- Crescita del 12% nei premi diretti scritti
- Rapporto combinato GAAP consolidato del 78%, un miglioramento di 21 punti percentuali
- Rapporto di perdita netto del 47%, un miglioramento di 20 punti percentuali
- Utile operativo per azione base di $0.43 rispetto a una perdita di $(0.06) nel Q2 2023
- Utile operativo per azione diluita di $0.39 rispetto a una perdita di $(0.06) nel Q2 2023
Per i sei mesi terminati il 30 giugno 2024, Kingstone ha riportato una crescita dell'8% nei premi diretti scritti e un rapporto combinato GAAP consolidato dell'86%, un miglioramento di 25 punti percentuali. L'azienda terrà una conference call sui risultati finanziari del Q2 2024 il 13 agosto 2024.
Kingstone Companies (Nasdaq:KINS) reportó resultados preliminares para el segundo trimestre de 2024, marcando su tercer trimestre consecutivo con ganancias. Los aspectos destacados incluyen:
- Crecimiento del 12% en primas directas escritas
- Ratio combinado GAAP consolidado del 78%, una mejora de 21 puntos porcentuales
- Ratio de pérdida neta del 47%, una mejora de 20 puntos porcentuales
- Ingreso operativo por acción básica de $0.43 frente a una pérdida de $(0.06) en el Q2 2023
- Ingreso operativo por acción diluida de $0.39 frente a una pérdida de $(0.06) en el Q2 2023
Para los seis meses terminados el 30 de junio de 2024, Kingstone reportó un crecimiento del 8% en primas directas escritas y un ratio combinado GAAP consolidado del 86%, una mejora de 25 puntos porcentuales. La empresa realizará una llamada de conferencia sobre los resultados financieros del Q2 2024 el 13 de agosto de 2024.
킹스톤 컴퍼니즈 (Nasdaq:KINS)는 2024년 2분기 preliminar 결과를 보고하며 세 번째 연속 흑자 분기를 기록했습니다. 주요 내용은 다음과 같습니다:
- 12% 성장한 직접 서면 보험료
- 78%의 GAAP consolidated 결합 비율, 21포인트 개선
- 47%의 순 손실 비율, 20포인트 개선
- 기본 주당 운영 소득은 $0.43, 2023년 2분기의 $(0.06) 손실과 비교
- 희석 주당 운영 소득은 $0.39, 2023년 2분기의 $(0.06) 손실과 비교
2024년 6월 30일 종료된 6개월 동안, 킹스톤은 직접 서면 보험료에서 8% 성장을 보고했으며, 86%의 GAAP 관련 결합 비율, 25포인트 개선을 기록했습니다. 이 회사는 2024년 8월 13일에 2024년 2분기 재무 결과 컨퍼런스 콜을 개최할 예정입니다.
Kingstone Companies (Nasdaq:KINS) a annoncé les résultats préliminaires du T2 2024, marquant le troisième trimestre consécutif bénéficiaire. Les points forts incluent :
- 12% de croissance des primes directement souscrites
- Taux combiné GAAP consolidé de 78%, une amélioration de 21 points de pourcentage
- Taux de perte nette de 47%, une amélioration de 20 points de pourcentage
- Bénéfice d'exploitation par action de base de 0,43 $ contre une perte de (0,06 $) au T2 2023
- Bénéfice d'exploitation par action diluée de 0,39 $ contre une perte de (0,06 $) au T2 2023
Pour les six mois se terminant le 30 juin 2024, Kingstone a déclaré une croissance de 8% des primes directement souscrites et un taux combiné GAAP consolidé de 86%, une amélioration de 25 points de pourcentage. L'entreprise tiendra une conférence téléphonique sur les résultats financiers du T2 2024 le 13 août 2024.
Kingstone Companies (Nasdaq:KINS) berichtete über vorläufige Ergebnisse für das 2. Quartal 2024 und markierte das dritte aufeinanderfolgende profitable Quartal. Die Highlights umfassen:
- 12% Wachstum bei direkt geschriebenen Prämien
- Konsolidierter GAAP-Kombinationssatz von 78%, eine Verbesserung um 21 Prozentpunkte
- Nettoverlustquote von 47%, eine Verbesserung um 20 Prozentpunkte
- Betriebsergebnis pro Stammaktie von $0.43 im Vergleich zu einem Verlust von $(0.06) im Q2 2023
- Betriebsergebnis pro verwässerter Aktie von $0.39 im Vergleich zu einem Verlust von $(0.06) im Q2 2023
Für die sechs Monate bis zum 30. Juni 2024 meldete Kingstone ein Wachstum von 8% bei direkt geschriebenen Prämien und einen konsolidierten GAAP-Kombinationssatz von 86%, eine Verbesserung um 25 Prozentpunkte. Das Unternehmen wird am 13. August 2024 eine Telefonkonferenz zu den finanziellen Ergebnissen des Q2 2024 abhalten.
- Third consecutive profitable quarter, indicating successful turnaround
- 12% growth in direct written premiums for Q2 2024
- Consolidated GAAP combined ratio improved by 21 percentage points to 78% in Q2 2024
- Net loss ratio improved by 20 percentage points to 47% in Q2 2024
- Operating income per basic share of $0.43 in Q2 2024, compared to a loss in Q2 2023
- 8% growth in direct written premiums for the first half of 2024
- Consolidated GAAP combined ratio improved by 25 percentage points to 86% for the first half of 2024
- Catastrophe loss & LAE of $386k included in the Q2 2024 net loss ratio
- Catastrophe loss & LAE of $1.9M included in the net loss ratio for the first half of 2024
Kingstone's preliminary Q2 2024 results show significant improvement across key metrics, signaling a successful turnaround. The 12% growth in direct written premiums and 21% growth in core direct written premiums indicate strong market demand and effective pricing strategies. The dramatic improvement in the consolidated GAAP combined ratio to 78%, a 21 percentage point decrease, suggests much better underwriting and risk management practices.
The net loss ratio of 47%, a 20 percentage point improvement, is particularly impressive. This, combined with the modest
The shift from an operating loss to an operating income of
However, investors should note that these are preliminary, unaudited results. While promising, they should be verified against the final audited figures. Additionally, the insurance industry is cyclical and subject to unpredictable catastrophic events, so sustained performance over multiple quarters will be key to confirming the turnaround's stability.
Kingstone's turnaround is noteworthy in the competitive Northeast property and casualty insurance market. The 21% growth in core direct written premiums suggests the company is successfully expanding its core business, likely through a combination of new policy acquisition and increased retention rates.
The dramatic improvement in the net loss ratio to 47% is particularly impressive. This level is well below the industry average, which typically hovers around 60-65% for property and casualty insurers. Such a low loss ratio could indicate either exceptionally good risk selection and pricing, or a period of unusually low claims. If sustainable, this gives Kingstone a significant competitive advantage in pricing and profitability.
The catastrophe loss of
The improvement in the expense ratio to 31%, while modest, is still positive given the company's growth. This suggests Kingstone is managing to scale efficiently, which is important for long-term profitability in the insurance sector.
Overall, these results indicate a well-executed turnaround strategy, with improvements across underwriting, pricing and operational efficiency. If Kingstone can maintain these performance levels, it could position itself as a strong regional player in the Northeast insurance market.
KINGSTON, NY / ACCESSWIRE / July 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 second quarter and six months ended June 30, 2024, and announced that it will hold its second quarter 2024 financial results conference call on Tuesday, August 13, 2024, at 8:30 a.m. Eastern Time. The financial results news release is expected to be issued after the market closes on Monday, August 12, 2024.
Preliminary Results
(Estimated and Unaudited)
Second Quarter 2024 (all metrics are compared to Second Quarter 2023):
Direct written premium growth1 of
12% ; Core2 direct written premium growth1 of21% .Consolidated GAAP combined ratio of
78% , a 21 percentage point improvement.Net loss ratio of
47% , a 20 percentage point improvement.Catastrophe loss & LAE of
$386 k included in the net loss ratio.Net expense ratio of
31% , a 1 percentage point improvement.
Operating income per basic share1 of
$0.43 versus an operating loss per basic share1 of$(0.06) .Operating income per diluted share1 of
$0.39 versus an operating loss per diluted share1 of$(0.06) .
Six Months Ended June 30, 2024 (all metrics are compared to Six Months Ended June 30, 2023):
Direct written premium growth1 of
8% ; Core2 direct written premium growth1 of17% .Consolidated GAAP combined ratio of
86% , a 25 percentage point improvement.Net loss ratio of
54% , a 23 percentage point improvement.Catastrophe loss & LAE of
$1.9M included in the net loss ratio.Net expense ratio of
31% , a 2 percentage point improvement.
Operating income per basic share1 of
$0.50 versus an operating loss per basic share of$(0.62) .Operating income per diluted share1 of
$0.46 versus an operating loss per diluted share of$(0.62) .
Conference Call Details
Tuesday, August 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 direct written premiums to net premiums earned for the periods presented:
| For the Three Months Ended |
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| For the Six Months Ended |
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| June 30, |
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| June 30, |
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| 2024 |
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| 2023 |
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| 2023 |
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(000's except percentages) |
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Direct Written Premiums Reconciliation: |
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Direct written premiums |
| $ | 53,495 |
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| $ | 47,647 |
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| 12.3 | % |
| $ | 102,820 |
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| $ | 95,244 |
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| 8.0 | % |
Ceded written premiums1 |
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| (12,071 | ) |
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| (11,541 | ) |
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| 4.6 |
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| (23,300 | ) |
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| (27,647 | ) |
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| (15.7 | ) |
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Net written premiums |
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| 41,425 |
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| 36,106 |
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| 14.7 |
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| 79,520 |
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| 67,598 |
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| 17.6 |
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Change in unearned premiums |
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| (11,121 | ) |
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| (6,598 | ) |
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| 68.6 |
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| (20,397 | ) |
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| (9,835 | ) |
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| 107.4 |
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Net premiums earned |
| $ | 30,304 |
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| $ | 29,508 |
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| 2.7 | % |
| $ | 59,124 |
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| $ | 57,763 |
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| 2.4 | % |
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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 basic income (loss) per share to basic operating income (loss) per share for the periods indicated:
| For the Three Months Ended |
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| For the Six Months Ended |
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| June 30, 2024 |
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| June 30, 2023 |
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| June 30, 2024 |
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| June 30, 2023 |
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| Basic income per common share |
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Operating Income (Loss) per Basic Common Share Reconciliation: |
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Net income (loss) |
| $ | 0.41 |
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| $ | (0.05 | ) |
| $ | 0.54 |
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| $ | (0.52 | ) |
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Net realized loss (gain) on investments, net of taxes |
| $ | 0.02 |
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| $ | (0.01 | ) |
| $ | (0.04 | ) |
| $ | (0.10 | ) |
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Operating income (loss) |
| $ | 0.43 |
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| $ | (0.06 | ) |
| $ | 0.50 |
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| $ | (0.62 | ) |
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 diluted income (loss) per share to diluted operating income (loss) per share for the periods indicated:
| For the Three Months Ended |
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| For the Six Months Ended |
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| June 30, 2024 |
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| June 30, 2023 |
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| June 30, 2024 |
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| Diluted income per common share |
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Operating Income (Loss) per Diluted Common Share Reconciliation: |
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Net income (loss) |
| $ | 0.37 |
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| $ | (0.05 | ) |
| $ | 0.50 |
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| $ | (0.52 | ) |
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Net realized loss (gain) on investments, net of taxes |
| $ | 0.02 |
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| $ | (0.01 | ) |
| $ | (0.03 | ) |
| $ | (0.10 | ) |
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Operating income (loss) |
| $ | 0.39 |
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| $ | (0.06 | ) |
| $ | 0.46 |
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| $ | (0.62 | ) |
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Disclaimer and Forward-Looking Statements
The estimated, unaudited financial results indicated above are based on information available as of July 29, 2024, remain subject to change based on management's ongoing review of the Company's second 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 December 30, 2024, 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.
View the original press release on accesswire.com
FAQ
What was Kingstone's (KINS) direct written premium growth in Q2 2024?
How did Kingstone's (KINS) consolidated GAAP combined ratio change in Q2 2024?
What was Kingstone's (KINS) operating income per basic share in Q2 2024?
When will Kingstone (KINS) hold its Q2 2024 financial results conference call?
