Kingstone Reports Double-Digit Premium Growth in Core Business and Third Consecutive Quarter of Net Income
Kingstone Companies (Nasdaq: KINS) reported double-digit premium growth in its core business for Q2 2024, with a 21.5% increase to $51.3 million. Net income reached $4.5 million compared to a $522,000 loss in Q2 2023. The net combined ratio improved to 78.2% from 98.9%, driven by favorable weather and reduced non-core business. The company has raised its 2024 guidance and unveiled initial 2025 projections. CEO Meryl Golden cited improved loss ratio and expense management as key factors. Kingstone will hold a conference call on August 13, 2024, to discuss these results.
Kingstone Companies (Nasdaq: KINS) ha riportato una crescita a due cifre dei premi nel suo core business per il secondo trimestre del 2024, con un incremento del 21,5% a 51,3 milioni di dollari. Il reddito netto ha raggiunto 4,5 milioni di dollari rispetto a una perdita di 522.000 dollari nel Q2 2023. Il rapporto combinato netto è migliorato, passando al 78,2% rispetto al 98,9%, grazie a condizioni meteorologiche favorevoli e alla riduzione del business non core. L'azienda ha aumentato le previsioni per il 2024 e ha presentato le proiezioni iniziali per il 2025. Il CEO Meryl Golden ha citato il miglioramento del rapporto sulle perdite e la gestione delle spese come fattori chiave. Kingstone terrà una conference call il 13 agosto 2024 per discutere di questi risultati.
Kingstone Companies (Nasdaq: KINS) informó un crecimiento de dos dígitos en las primas en su negocio principal para el segundo trimestre de 2024, con un aumento del 21,5% a 51,3 millones de dólares. La renta neta alcanzó 4,5 millones de dólares en comparación con una pérdida de 522.000 dólares en el Q2 2023. El ratio combinado neto mejoró al 78,2% desde el 98,9%, impulsado por un clima favorable y la reducción de negocios no principales. La empresa ha elevado sus previsiones para 2024 y ha presentado proyecciones iniciales para 2025. El CEO Meryl Golden citó la mejora en el ratio de pérdidas y la gestión de gastos como factores clave. Kingstone llevará a cabo una conferencia telefónica el 13 de agosto de 2024 para discutir estos resultados.
킹스톤 컴퍼니즈 (Nasdaq: KINS)는 2024년 2분기 핵심 사업에서 두 자릿수 프리미엄 성장을 보고하며, 21.5% 증가한 5,130만 달러를 기록했습니다. 순이익은 450만 달러에 달했으며, 2023년 2분기에는 522,000 달러의 손실이 있었습니다. 순 조합 비율은 98.9%에서 78.2%로 개선되었으며, 이는 유리한 날씨와 비핵심 사업 축소에 기인합니다. 이 회사는 2024년 가이던스를 상향 조정하고 2025년 초기 예측을 공개했습니다. CEO 멀리 골든은 손실 비율 개선과 비용 관리가 주요 요인이라고 언급했습니다. 킹스톤은 2024년 8월 13일에 이러한 결과를 논의하기 위한 컨퍼런스 콜을 개최할 예정입니다.
Kingstone Companies (Nasdaq: KINS) a annoncé une croissance à deux chiffres des primes dans son activité principale pour le deuxième trimestre 2024, avec une augmentation de 21,5% atteignant 51,3 millions de dollars. Le revenu net a atteint 4,5 millions de dollars par rapport à une perte de 522 000 dollars au Q2 2023. Le ratio combiné net s'est amélioré à 78,2% par rapport à 98,9%, grâce à des conditions météorologiques favorables et à une réduction des activités non essentielles. L'entreprise a relevé ses prévisions pour 2024 et a dévoilé des projections initiales pour 2025. Le PDG Meryl Golden a cité l'amélioration du ratio de sinistres et de la gestion des dépenses comme des facteurs clés. Kingstone tiendra une conférence téléphonique le 13 août 2024 pour discuter de ces résultats.
Kingstone Companies (Nasdaq: KINS) berichtete im 2. Quartal 2024 von einem zwei stelligen Prämienwachstum in seinem Kerngeschäft mit einem 21,5%-igen Anstieg auf 51,3 Millionen Dollar. Der Nettogewinn erreichte 4,5 Millionen Dollar im Vergleich zu einem Verlust von 522.000 Dollar im Q2 2023. Der Nettokombinationssatz verbesserte sich auf 78,2% von 98,9%, was auf günstige Wetterbedingungen und reduziertes Nebenbusiness zurückzuführen ist. Das Unternehmen hat seine Prognose für 2024 angehoben und erste Projektionen für 2025 vorgestellt. CEO Meryl Golden nannte die verbesserte Verlustquote und das Kostenmanagement als Schlüsselfaktoren. Kingstone wird am 13. August 2024 eine Telefonkonferenz abhalten, um diese Ergebnisse zu besprechen.
- Core business direct premiums written increased by 21.5% to $51.3 million.
- Net income for Q2 2024 was $4.5 million, compared to a $522,000 loss in Q2 2023.
- The net combined ratio improved by 20.7 points to 78.2%.
- Annualized return on equity reached 47.2%, up from -6.4%.
- Expense management efforts reduced the expense ratio by 1.3 points.
- None.
Kingstone's Q2 2024 results show remarkable improvement, with 21.5% growth in core business premiums and a net income of
Key positives include 47.2% annualized ROE, favorable weather conditions and successful expense management. The company's strategic focus on core business and reduced exposure to non-core segments is paying off. With raised guidance for 2024 and initial 2025 guidance, Kingstone appears confident in sustaining this positive trajectory.
However, investors should note that exceptional weather conditions contributed to these results, which may not be repeatable. The sustainability of premium growth and profitability improvements will be important to watch in coming quarters.
Kingstone's turnaround is impressive, particularly in the challenging Northeast insurance market. The 17% premium growth in core business over six months suggests strong market positioning and pricing power. The dramatic improvement in the net combined ratio to 85.6% for H1 2024 from 110.8% in H1 2023 indicates significantly enhanced underwriting discipline and risk management.
The company's ability to capitalize on changes in the New York competitive landscape is a positive sign for future growth. However, the insurance industry is cyclical and maintaining such low combined ratios long-term can be challenging. Investors should monitor how Kingstone balances growth with risk management as it expands its underwriting appetite.
The reduction in non-core business and focus on profitable segments demonstrate strategic acumen, but it's essential to ensure this doesn't limit diversification and overall risk spread.
Raises 2024 Guidance and Unveils Initial 2025 Guidance
KINGSTON, NY / ACCESSWIRE / August 12, 2024 / 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 second quarter ended June 30, 2024. The Company will hold its second quarter 2024 financial results conference call on Tuesday, August 13, 2024, at 8:30 a.m. Eastern Time. With this release, the Company has provided an investor presentation that can be accessed through the Investor Relations/Events & Presentations section of the Company website (www.kingstonecompanies.com).
Key Financial and Operational Highlights | ||||||||||||||||||||||||
| Quarter Ended |
|
| Six Months Ended |
| |||||||||||||||||||
($ in thousands, except per share data) |
| June 30, |
|
| June 30, |
| ||||||||||||||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| % Change |
| |||||||
Direct premiums written1 - Core Business2 |
| $ | 51,306 |
|
| $ | 42,212 |
|
|
| 21.5 | % |
| $ | 97,893 |
|
| $ | 83,639 |
|
|
| 17.0 | % |
Net combined ratio |
|
| 78.2 | % |
|
| 98.9 | % |
| (20.7) pts |
|
|
| 85.6 | % |
|
| 110.8 | % |
| (25.2) pts |
| ||
Net Income/(Loss) |
| $ | 4,515 |
|
| $ | (522 | ) |
| NM |
|
| $ | 5,942 |
|
| $ | (5,577 | ) |
| NM |
| ||
Net Income/(Loss) per share - basic |
| $ | 0.41 |
|
| $ | (0.05 | ) |
| NM |
|
| $ | 0.54 |
|
| $ | (0.52 | ) |
| NM |
| ||
Return on equity - annualized |
|
| 47.2 | % |
|
| (6.4 | %) |
| 53.6 pts |
|
|
| 31.6 | % |
|
| (32.7 | %) |
| 64.2 pts |
| ||
Management Commentary
Meryl Golden, Chief Executive Officer of Kingstone Companies, Inc., stated, "We take pride in our ongoing profitability, marking our third consecutive quarter of excellent results. This performance was enhanced by favorable weather conditions and the accelerating reduction of our non-core business.
"Core business direct premiums written increased by nearly
"Our underlying loss ratio improved by 14.6 points in the second quarter as compared to the comparable 2023 quarter due to both lower frequency and severity. The absence of severe weather conditions throughout the quarter benefited our catastrophe loss ratio by 3.4 points compared to the previous year, and we experienced modest favorable prior year reserve development. Furthermore, our expense management efforts reduced our expense ratio by 1.3 points from the comparable period last year. These factors led to a net combined ratio of
Ms. Golden concluded, "Following unprecedented performance in the first six months and the increasing growth prospects for our business, we are raising our full-year 2024 guidance and providing initial full-year 2025 guidance. We are committed to delivering sustainable long-term shareholder value."
Guidance (see "Disclaimer and Forward-Looking Statements" below)
For 2024, the Company's current full year expectations are calculated based on anticipated net premiums earned of approximately
Guidance Metrics |
| 2024 - Current |
|
| 2024 - Previous |
|
Core Business2 direct premiums written growth |
|
|
|
| ||
Combined ratio |
|
|
|
| ||
Net income per share - basic* |
|
|
| $ 0.75 to |
| |
Return on equity |
|
|
|
|
For 2025, the Company's full year expectations are calculated based on anticipated net premiums earned of approximately
Guidance Metrics |
| 2025 |
|
Core Business2 direct premiums written growth |
|
| |
Combined ratio |
|
| |
Net income per share - basic* |
|
| |
Return on equity |
|
|
*The variance between net income per share - diluted and basic is immaterial. Previous guidance was presented on a diluted shares basis, while current guidance is presented on a basic share basis.
Consolidated Financial Results
Consolidated Financial Results |
| Quarter Ended |
|
| Six Months Ended |
| ||||||||||||||||||
($ in thousands, except per share data) |
| June 30, |
|
| June 30, |
| ||||||||||||||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| % Change |
| |||||||
Direct premiums written1 |
| $ | 53,495 |
|
| $ | 47,647 |
|
|
| 12.3 | % |
| $ | 102,820 |
|
| $ | 95,244 |
|
|
| 8.0 | % |
Net premiums earned |
| $ | 30,304 |
|
| $ | 29,508 |
|
|
| 2.7 | % |
| $ | 59,124 |
|
| $ | 57,763 |
|
|
| 2.4 | % |
|
| |||||||||||||||||||||||
Net investment income |
| $ | 1,765 |
|
| $ | 1,451 |
|
|
| 21.6 | % |
| $ | 3,267 |
|
| $ | 2,993 |
|
|
| 9.2 | % |
Net (loss)/gain on investments |
| $ | (234 | ) |
| $ | 197 |
|
| NM |
|
| $ | 493 |
|
| $ | 1,422 |
|
|
| (65.3 | %) | |
|
| |||||||||||||||||||||||
Underlying loss ratio 1 |
|
| 47.1 | % |
|
| 61.7 | % |
| (14.6) pts |
|
|
| 52.8 | % |
|
| 68.4 | % |
| (15.6) pts |
| ||
Net development of prior year losses |
|
| (1.4 | %) |
|
| (0.1 | %) |
| (1.3) pts |
|
|
| (1.7 | %) |
|
| 0.0 | % |
| (1.7) pts |
| ||
Net loss ratio excluding the effects of catastrophes1 |
|
| 45.7 | % |
|
| 61.7 | % |
| (16.0) pts |
|
|
| 51.1 | % |
|
| 68.4 | % |
| (17.3) pts |
| ||
Catastrophe loss ratio |
|
| 1.3 | % |
|
| 4.7 | % |
| (3.4) pts |
|
|
| 3.2 | % |
|
| 8.9 | % |
| (5.7) pts |
| ||
Net loss ratio |
|
| 47.0 | % |
|
| 66.4 | % |
| (19.4) pts |
|
|
| 54.3 | % |
|
| 77.2 | % |
| (22.9) pts |
| ||
Net underwriting expense ratio |
|
| 31.2 | % |
|
| 32.5 | % |
| (1.3) pts |
|
|
| 31.3 | % |
|
| 33.6 | % |
| (2.3) pts |
| ||
Net combined ratio |
|
| 78.2 | % |
|
| 98.9 | % |
| (20.7) pts |
|
|
| 85.6 | % |
|
| 110.8 | % |
| (25.2) pts |
| ||
|
| |||||||||||||||||||||||
Adjusted EBITDA1 |
| $ | 7,845 |
|
| $ | 1,236 |
|
|
| 534.7 | % |
| $ | 10,779 |
|
| $ | (4,258 | ) |
| NM |
| |
Net Income/(Loss) |
| $ | 4,515 |
|
| $ | (522 | ) |
| NM |
|
| $ | 5,942 |
|
| $ | (5,577 | ) |
| NM |
| ||
Net Income/(Loss) per share - basic |
| $ | 0.41 |
|
| $ | (0.05 | ) |
| NM |
|
| $ | 0.54 |
|
| $ | (0.52 | ) |
| NM |
| ||
Net Income/(Loss) per share - diluted |
| $ | 0.37 |
|
| $ | (0.05 | ) |
| NM |
|
| $ | 0.50 |
|
| $ | (0.52 | ) |
| NM |
| ||
Return on equity - annualized |
|
| 47.2 | % |
|
| (6.4 | %) |
| NM |
|
|
| 31.6 | % |
|
| (32.7 | %) |
| NM |
| ||
|
| |||||||||||||||||||||||
Other comprehensive income/(loss) |
| $ | 90 |
|
| $ | (886 | ) |
| NM |
|
| $ | (350 | ) |
| $ | 1,065 |
|
| NM |
| ||
Operating net income/(loss) 1 |
| $ | 4,699 |
|
| $ | (678 | ) |
| NM |
|
| $ | 5,552 |
|
| $ | (6,700 | ) |
| NM |
| ||
Operating net income/(loss) per share - basic 1 |
| $ | 0.43 |
|
| $ | (0.06 | ) |
| NM |
|
| $ | 0.50 |
|
| $ | (0.62 | ) |
| NM |
| ||
Operating net income/(loss) per share - diluted 1 |
| $ | 0.39 |
|
| $ | (0.06 | ) |
| NM |
|
| $ | 0.46 |
|
| $ | (0.62 | ) |
| NM |
| ||
Operating return on equity 1 |
|
| 12.3 | % |
|
| (2.1 | %) |
| NM |
|
|
| 14.7 | % |
|
| (19.6 | %) |
| NM |
| ||
Operating return on equity1 - annualized |
|
| 49.1 | % |
|
| (8.3 | %) |
| NM |
|
|
| 29.5 | % |
|
| (39.3 | %) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Book value per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
| $ | 3.19 |
|
| $ | 2.61 |
|
| 22.1 | % | ||
Book value per share - diluted excluding AOCI |
|
|
|
|
|
|
|
|
|
|
|
| $ | 4.17 |
|
| $ | 3.82 |
|
| 9.2 | % | ||
Core Business Results (New York Only)
The Company refers to its New York policies as its Core Business.
Core Business Results (New York Only) |
| Quarter Ended |
|
| Six Months Ended |
| ||||||||||||||||||
($ in thousands, except per share data) |
| June 30, |
|
| June 30, |
| ||||||||||||||||||
| 2024 |
|
| 2023 |
|
| % Change |
|
| 2024 |
|
| 2023 |
|
| % Change |
| |||||||
Direct premiums written1 |
| $ | 51,306 |
|
| $ | 42,212 |
|
|
| 21.5 | % |
| $ | 97,893 |
|
| $ | 83,639 |
|
|
| 17.0 | % |
Net premiums earned |
| $ | 28,505 |
|
| $ | 25,430 |
|
|
| 12.1 | % |
| $ | 55,061 |
|
| $ | 49,218 |
|
|
| 11.9 | % |
Net loss ratio excluding the effect of catastrophes1,3 |
|
| 45.0 | % |
|
| 57.3 | % |
| (12.3) pts |
|
|
| 49.4 | % |
|
| 64.2 | % |
| (14.8) pts |
| ||
Catastrophe loss ratio |
|
| 0.8 | % |
|
| 2.2 | % |
| (1.4) pts |
|
|
| 2.3 | % |
|
| 4.5 | % |
| (2.2) pts |
| ||
Net loss ratio3 |
|
| 45.8 | % |
|
| 59.5 | % |
| (13.7) pts |
|
|
| 51.6 | % |
|
| 68.7 | % |
| (17.0) pts |
| ||
Non-Core Business Results (Outside of New York)
The Company has been aggressively reducing policy count in the Non-Core Business, subject to regulatory requirements.
Non-Core Business Results (Outside of New York) |
| Quarter Ended |
|
| Six Months Ended |
| ||||||||||||||||||
($ in thousands, except per share data) |
| June 30, |
|
| June 30, |
| ||||||||||||||||||
| 2024 |
|
| 2023 |
|
| % Change |
|
| 2024 |
|
| 2023 |
|
| % Change |
| |||||||
Direct premiums written1 |
| $ | 2,190 |
|
| $ | 5,435 |
|
|
| (59.7 | %) |
| $ | 4,927 |
|
| $ | 11,605 |
|
|
| (57.5 | %) |
Net premiums earned |
| $ | 1,799 |
|
| $ | 4,078 |
|
|
| (55.9 | %) |
| $ | 4,062 |
|
| $ | 8,545 |
|
|
| (52.5 | %) |
Net loss ratio excluding the effect of catastrophes1,3 |
|
| 56.9 | % |
|
| 88.8 | % |
| (31.9) pts |
|
|
| 74.7 | % |
|
| 92.6 | % |
| (17.9) pts |
| ||
Catastrophe loss ratio |
|
| 8.6 | % |
|
| 20.0 | % |
| (11.4) pts |
|
|
| 15.4 | % |
|
| 34.1 | % |
| (18.7) pts |
| ||
Net loss ratio3 |
|
| 65.5 | % |
|
| 108.9 | % |
| (43.4) pts |
|
|
| 90.1 | % |
|
| 126.7 | % |
| (36.6) pts |
| ||
Premium and Policy Trends
Premium and Policy Trends |
| Quarter Ended |
| |||||||||||||||||
($ in thousands) |
| June 30, 2024 |
|
| Sequential |
|
| March 31, 2024 |
|
| Sequential |
|
| December 31, 2023 |
| |||||
Core Business2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Direct premiums written1 |
| $ | 51,306 |
|
|
| 10.1 | % |
| $ | 46,587 |
|
|
| (0.9 | %) |
| $ | 47,027 |
|
Policies in force |
|
| 66,934 |
|
|
| (0.1 | %) |
|
| 66,991 |
|
|
| (0.9 | %) |
|
| 67,575 |
|
Non-Core Business2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct premiums written1 |
| $ | 2,190 |
|
|
| (20.0 | %) |
| $ | 2,738 |
|
|
| (53.7 | %) |
| $ | 5,911 |
|
Policies in force |
|
| 7,306 |
|
|
| (19.5 | %) |
|
| 9,080 |
|
|
| (16.1 | %) |
|
| 10,823 |
|
1These measures are not based on GAAP and are defined and reconciled below to the most directly comparable GAAP measures. See "Definitions and Non-GAAP Measures".
2Kingstone refers to New York business as its "Core" business and business outside of New York as its "Non-Core" business.
3Core and Non-Core business net loss ratios and catastrophe loss ratios are not based on GAAP. Net loss ratio is the most directly comparable GAAP measure. The aggregate of Core and Non-Core Business net loss ratios and catastrophe loss ratios is represented by net loss ratio and catastrophe loss ratio, as set forth under Consolidated Financial Results above. See "Definitions and Non-GAAP Measures".
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 "Investor Relations/Events & Presentations" tab of the Company's website or by clicking here. The webcast will be archived and accessible for approximately 30 days.
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
Disclaimer and Forward-Looking Statements
The guidance provided above is based on information available as of August 12, 2024 and management's review of the anticipated financial results for 2024 and 2025. Such guidance remains subject to change based on management's ongoing review of the Company's 2024 and 2025 results and is a forward-looking statement (see below). Kingstone assumes no obligation to update this guidance. The actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and 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.
Definitions and Non-GAAP Measures
Direct premiums written represent the total premiums charged on policies issued by the Company during the respective fiscal period.
Net premiums written are direct premiums written less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct premiums written 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 premiums written and net premiums written, along with other measures, to gauge the Company's performance and evaluate results. Direct premiums written and net premiums written are provided as supplemental information, not as a substitute for net premiums earned, and do not reflect the Company's net premiums earned.
Adjusted EBITDA is net income (loss) exclusive of interest expense, income tax expense (benefit), depreciation and amortization, net gains (losses) on investments, and stock- based compensation. Net income (loss) is the GAAP measure most closely comparable to adjusted EBITDA.
Management uses adjusted EBITDA along with other measures to gauge the Company's performance and evaluate results, which can be skewed when including interest expense, income tax expense (benefit), depreciation and amortization, net gains (losses) on investments, and stock-based compensation, and may vary significantly between periods. Adjusted EBITDA is provided as supplemental information, not as a substitute for net income (loss) and does not reflect the Company's overall profitability.
Operating net income (loss) and basic operating net income (loss) per share is net income (loss) and basic income (loss) per share exclusive of net gains (losses) on investments, net of tax. Net income (loss) and basic net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and basic operating net income (loss) per share.
Management uses operating net income (loss) and basic operating net income (loss) per 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 net income (loss) and basic operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and basic net income (loss) per share and do not reflect the Company's overall profitability.
Operating net income (loss) and diluted operating net income (loss) per share is net income (loss) and diluted income (loss) per share exclusive of net gains (losses) on investments, net of tax. Net income (loss) and diluted net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and diluted operating net income (loss) per share
Management uses operating net income (loss) and diluted operating net income (loss) per 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 net income (loss) and diluted operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and diluted net income (loss) per share, and do not reflect the Company's overall profitability.
Operating return on equity is operating income (loss) divided by average equity. Return on equity is the GAAP measure most closely comparable to operating return on equity.
Management uses operating return on equity, along with other measures, to gauge the Company's performance and evaluate results, which can be skewed when including net gains (losses) on investments, which may vary significantly between periods. Operating return on equity is provided as supplemental information, is not a substitute for return on equity and does not reflect the Company's overall return on average common equity.
Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio less the effect of prior year loss reserve development and catastrophes losses.
Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company's business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company's 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. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company's underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The underlying loss ratio should not be considered a substitute for the net loss ratio and does not reflect the Company's net loss ratio.
Net loss ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio and the effect of catastrophes on the net loss ratio.
Management believes that this ratio is useful to investors and it is used by management to reveal the trends in the Company's business that may be obscured by catastrophe losses. Catastrophe losses cause the Company's net 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. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company's underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The net loss ratio excluding the effect of catastrophes should not be considered a substitute for the net loss ratio and does not reflect the Company's net loss ratio.
The table below reconciles direct premiums written to net premiums earned for the periods presented:
|
| For the Three Months Ended |
|
| For the Six Months Ended |
| ||||||||||||||||||
|
| June 30, |
|
| June 30, |
| ||||||||||||||||||
|
|
|
|
|
|
| % |
|
|
|
|
|
|
|
| % |
| |||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| |||||||
(000's except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Direct Premiums Written Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Direct premiums written |
| $ | 53,495 |
|
| $ | 47,647 |
|
|
| 12.3 | % |
| $ | 102,820 |
|
| $ | 95,244 |
|
|
| 8.0 | % |
Ceded written premiums1 |
|
| (12,071 | ) |
|
| (11,541 | ) |
|
| 4.6 |
|
|
| (23,300 | ) |
| $ | (27,647 | ) |
|
| (15.7 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net premiums written |
|
| 41,425 |
|
|
| 36,106 |
|
|
| 14.7 |
|
|
| 79,520 |
|
|
| 67,598 |
|
|
| 17.6 |
|
Change in unearned premiums |
|
| (11,121 | ) |
|
| (6,598 | ) |
|
| 68.6 |
|
|
| (20,397 | ) |
|
| (9,835 | ) |
|
| 107.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net premiums earned |
| $ | 30,304 |
|
| $ | 29,508 |
|
|
| 2.7 | % |
| $ | 59,124 |
|
| $ | 57,763 |
|
|
| 2.4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Components may not sum due to rounding) | ||||||||||||||||||||||||
1Net premiums written balances from prior year periods were reclassified to conform with current year presentation.
The reclassification had no effect on the Company's previously reported financial condition, results of operations or cash flows.
The following table reconciles net income (loss) to adjusted EBITDA for the periods indicated:
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||||||||||
| June 30, |
|
| June 30, |
| |||||||||||||||||||
|
|
|
|
|
|
| % |
|
|
|
|
|
|
|
| % |
| |||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
(000's except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Adjusted EBITDA Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income (loss) |
| $ | 4,515 |
|
| $ | (522 | ) |
| NM | % |
| $ | 5,942 |
|
| $ | (5,577 | ) |
| NM | % | ||
Interest expense |
|
| 990 |
|
|
| 1,006 |
|
|
| (1.6 | ) |
|
| 1,984 |
|
|
| 2,016 |
|
|
| (1.6 | ) |
Income tax expense (benefit) |
|
| 1,205 |
|
|
| (41 | ) |
| NM |
|
|
| 1,583 |
|
|
| (1,290 | ) |
| NM |
| ||
Depreciation and amortization |
|
| 620 |
|
|
| 779 |
|
|
| (20.4 | ) |
|
| 1,216 |
|
|
| 1,587 |
|
|
| (23.4 | ) |
EBITDA |
|
| 7,330 |
|
|
| 1,221 |
|
|
| 500.3 |
|
|
| 10,725 |
|
|
| (3,265 | ) |
| NM |
| |
Net loss (gain) on investments |
|
| 234 |
|
|
| (197 | ) |
| NM |
|
|
| (493 | ) |
|
| (1,422 | ) |
|
| (65.3 | ) | |
Stock-based compensation |
|
| 281 |
|
|
| 212 |
|
|
| 32.5 |
|
|
| 547 |
|
|
| 429 |
|
|
| 27.5 |
|
Adjusted EBITDA |
| $ | 7,845 |
|
| $ | 1,236 |
|
|
| 534.7 | % |
| $ | 10,779 |
|
|
| (4,258 | ) |
| NM | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Components may not sum due to rounding) | ||||||||||||||||||||||||
The following table reconciles net income (loss) to operating net income (loss) and basic income (loss) per share to basic operating net income (loss) per share for the periods indicated:
|
| For the Three Months Ended |
| For the Six Months Ended |
| ||||||||||||||||||||
|
| June 30, 2024 |
| June 30, 2023 |
| June 30, 2024 |
| June 30, 2023 |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Amount |
| Basic income per common share |
| Amount |
| Basic loss per common share |
| Amount |
| Basic income per common share |
| Amount |
| Basic loss per common share |
| |||||||||
(000's except per common share amounts and percentages) | |||||||||||||||||||||||||
Operating Net Income (Loss) and Operating Net Income (Loss) per Basic Common Share Reconciliation: | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net income (loss) |
| $ | 4,515 |
| $ | 0.41 |
| $ | (522 | ) | $ | (0.05 | ) | $ | 5,942 |
| $ | 0.54 |
| $ | (5,577 | ) | $ | (0.52 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss (gain) on investments |
|
| 234 |
|
|
|
|
| (197 | ) |
|
|
|
| (493 | ) |
|
|
|
| (1,422 | ) |
|
|
|
Less tax benefit (expense) on net loss (gain) |
|
| 49 |
|
|
|
|
| (41 | ) |
|
|
|
| (104 | ) |
|
|
|
| (299 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss (gain) on investments, net of taxes |
|
| 185 |
| $ | 0.02 |
|
| (156 | ) | $ | (0.01 | ) |
| (389 | ) | $ | (0.04 | ) |
| (1,123 | ) | $ | (0.10 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating net income (loss) |
| $ | 4,699 |
| $ | 0.43 |
| $ | (678 | ) | $ | (0.06 | ) | $ | 5,552 |
| $ | 0.50 |
| $ | (6,700 | ) | $ | (0.62 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average basic shares outstanding |
|
| 11,019,347 |
|
|
|
|
| 10,755,848 |
|
|
|
|
| 11,009,442 |
|
|
|
|
| 10,753,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Components may not sum due to rounding) | |||||||||||||||||||||||||
The following table reconciles net income (loss) to operating net income (loss) and diluted income (loss) per share to diluted operating net income (loss) per share for the periods indicated:
| For the Three Months Ended |
| For the Six Months Ended |
| |||||||||||||||||||||
| June 30, 2024 |
| June 30, 2023 |
| June 30, 2024 |
| June 30, 2023 |
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
| Amount |
| Diluted income per common share |
| Amount |
| Diluted loss per common share |
| Amount |
| Diluted income per common share |
| Amount |
| Diluted loss per common share |
| |||||||||
(000's except per common share amounts and percentages) | |||||||||||||||||||||||||
Operating Net Income (Loss) and Operating Net Income (Loss) per Diluted Common Share Reconciliation: | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Net income (loss) |
| $ | 4,515 |
| $ | 0.37 |
| $ | (522 | ) | $ | (0.05 | ) | $ | 5,942 |
| $ | 0.50 |
| $ | (5,577 | ) | $ | (0.52 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss (gain) on investments |
|
| 234 |
|
|
|
|
| (197 | ) |
|
|
|
| (493 | ) |
|
|
|
| (1,422 | ) |
|
|
|
Less tax benefit (expense) on net loss (gain) |
|
| 49 |
|
|
|
|
| (41 | ) |
|
|
|
| (104 | ) |
|
|
|
| (299 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss (gain) on investments, net of taxes |
|
| 185 |
| $ | 0.02 |
|
| (156 | ) | $ | (0.01 | ) |
| (389 | ) | $ | (0.03 | ) |
| (1,123 | ) | $ | (0.10 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating net income (loss) |
| $ | 4,699 |
| $ | 0.39 |
| $ | (678 | ) | $ | (0.06 | ) | $ | 5,552 |
| $ | 0.46 |
|
| (6,700 | ) | $ | (0.62 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average diluted shares outstanding |
|
| 12,110,946 |
|
|
|
|
| 10,755,848 |
|
|
|
|
| 11,987,976 |
|
|
|
|
| 10,753,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Components may not sum due to rounding) | |||||||||||||||||||||||||
The following table reconciles net income (loss) to operating net income (loss) and return on equity to operating return on equity for the periods indicated:
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||||||||||
| June 30, |
|
| June 30, |
| |||||||||||||||||||
|
|
|
|
|
|
| % |
|
|
|
|
|
|
|
| % |
| |||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| |||||||
(000's except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Operating Net Income (Loss) Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income (loss) |
| $ | 4,515 |
|
| $ | (522 | ) |
| NM |
|
| $ | 5,942 |
|
| $ | (5,577 | ) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net loss (gain) on investments |
|
| 234 |
|
|
| (197 | ) |
| NM |
|
|
| (493 | ) |
|
| (1,422 | ) |
|
| 65.3 | % | |
Less tax benefit (expense) on net loss (gain) |
|
| 49 |
|
|
| (41 | ) |
| NM |
|
|
| (104 | ) |
|
| (299 | ) |
|
| 65.2 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net loss (gain) on investments, net of taxes |
|
| 185 |
|
|
| (156 | ) |
| NM |
|
|
| (389 | ) |
|
| (1,123 | ) |
|
| 65.4 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating net income (loss) |
| $ | 4,699 |
|
| $ | (678 | ) |
| NM |
|
| $ | 5,552 |
|
| $ | (6,700 | ) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating Return on Equity Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net income (loss) |
| $ | 4,515 |
|
| $ | (522 | ) |
| NM |
|
| $ | 5,942 |
|
| $ | (5,577 | ) |
| NM |
| ||
Average equity |
| $ | 38,276 |
|
| $ | 32,684 |
|
|
| 17.1 | % |
| $ | 37,653 |
|
| $ | 34,127 |
|
|
| 10.3 | % |
Return on equity |
|
| 11.8 | % |
|
| (1.6 | %) |
| NM |
|
|
| 15.8 | % |
|
| (16.3 | %) |
| NM |
| ||
Return on equity - annualized |
|
| 47.2 | % |
|
| (6.4 | %) |
| NM |
|
|
| 31.6 | % |
|
| (32.7 | %) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss (gain) on investments, net of taxes |
| $ | 185 |
|
| $ | (156 | ) |
| NM |
|
| $ | (389 | ) |
| $ | (1,123 | ) |
|
| 65.4 | % | |
Average equity |
| $ | 38,276 |
|
| $ | 32,684 |
|
|
| 17.1 | % |
| $ | 37,653 |
|
| $ | 34,127 |
|
|
| 10.3 | % |
Effect of net loss (gain) on investments, net of taxes, on return on equity |
|
| 0.5 | % |
|
| (0.5 | %) |
| NM |
|
|
| (1.0 | %) |
|
| (3.3 | %) |
|
| 68.6 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating net income (loss) |
| $ | 4,699 |
|
| $ | (678 | ) |
| NM |
|
| $ | 5,552 |
|
| $ | (6,700 | ) |
| NM |
| ||
Operating net income (loss) - annualized |
| $ | 18,796 |
|
| $ | (2,712 | ) |
| NM |
|
| $ | 11,104 |
|
| $ | (13,400 | ) |
| NM |
| ||
Average equity |
| $ | 38,276 |
|
| $ | 32,684 |
|
|
| 17.1 | % |
| $ | 37,653 |
|
| $ | 34,127 |
|
|
| 10.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating return on equity |
|
| 12.3 | % |
|
| (2.1 | %) |
| NM |
|
|
| 14.7 | % |
|
| (19.6 | %) |
| NM |
| ||
Operating return on equity - annualized |
|
| 49.1 | % |
|
| (8.3 | %) |
| NM |
|
|
| 29.5 | % |
|
| (39.3 | %) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Components may not sum due to rounding) | ||||||||||||||||||||||||
The following table reconciles the underlying loss ratio to the net loss ratio for the periods presented:
|
| For the Three Months Ended |
| For the Six Months Ended |
| ||||||||||||||||||
|
| June 30, |
| June 30, |
| ||||||||||||||||||
|
| 2024 |
| 2023 |
| Percentage Point Change |
| 2024 |
| 2023 |
| Percentage Point Change |
| ||||||||||
Underlying Loss Ratio Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Underlying Loss Ratio |
|
| 47.1 | % |
| 61.7 | % |
| (14.6 | ) | pts |
|
| 52.8 | % |
| 68.4 | % |
| (15.6 | ) | pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Effect of catastrophe losses |
|
| 1.3 | % |
| 4.7 | % |
| (3.4 | ) | pts |
|
| 3.2 | % |
| 8.9 | % |
| (5.7 | ) | pts |
|
Effect of prior-year reserve development |
|
| (1.4 | %) |
| (0.1 | %) |
| (1.3 | ) | pts |
|
| (1.7 | %) |
| 0.0 | % |
| (1.7 | ) | pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net loss ratio |
|
| 47.0 | % |
| 66.4 | % |
| (19.4 | ) | pts |
|
| 54.3 | % |
| 77.2 | % |
| (22.9 | ) | pts |
|
| |||||||||||||||||||||||
(Components may not sum due to rounding) | |||||||||||||||||||||||
|
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES |
| |||||
Condensed Consolidated Balance Sheets |
|
|
|
|
|
| ||
| June 30, |
|
| December 31, |
| |||
| 2024 |
|
| 2023 |
| |||
|
| (unaudited) |
|
|
|
| ||
Assets |
|
|
|
|
|
| ||
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of |
|
|
|
|
|
| ||
| $ | 7,049,978 |
|
| $ | 7,052,541 |
| |
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of |
|
|
|
|
|
|
|
|
|
| 160,947,267 |
|
|
| 148,920,797 |
| |
Equity securities, at fair value (cost of |
|
|
|
|
|
|
|
|
|
| 11,428,238 |
|
|
| 14,762,340 |
| |
Other investments |
|
| 4,192,837 |
|
|
| 3,897,150 |
|
Total investments |
|
| 183,618,320 |
|
|
| 174,632,828 |
|
Cash and cash equivalents |
|
| 12,170,993 |
|
|
| 8,976,998 |
|
Premiums receivable, net |
|
| 15,176,140 |
|
|
| 13,604,808 |
|
Reinsurance receivables, net |
|
| 66,315,422 |
|
|
| 75,593,912 |
|
Deferred policy acquisition costs |
|
| 19,574,764 |
|
|
| 19,802,564 |
|
Intangible assets |
|
| 500,000 |
|
|
| 500,000 |
|
Property and equipment, net |
|
| 9,217,729 |
|
|
| 9,395,697 |
|
Deferred income taxes, net |
|
| 9,061,591 |
|
|
| 10,551,819 |
|
Other assets |
|
| 4,142,798 |
|
|
| 4,574,584 |
|
Total assets |
| $ | 319,777,757 |
|
| $ | 317,633,210 |
|
|
|
|
|
|
|
|
| |
Liabilities |
|
|
|
|
|
|
|
|
Loss and loss adjustment expense reserves |
| $ | 116,577,490 |
|
| $ | 121,817,862 |
|
Unearned premiums |
|
| 107,434,679 |
|
|
| 105,621,538 |
|
Advance premiums |
|
| 4,955,431 |
|
|
| 3,797,590 |
|
Reinsurance balances payable |
|
| 10,481,596 |
|
|
| 12,837,140 |
|
Deferred ceding commission revenue |
|
| 9,277,082 |
|
|
| 9,460,865 |
|
Accounts payable, accrued expenses and other liabilities |
|
| 4,979,841 |
|
|
| 4,350,546 |
|
Debt, net |
|
| 25,268,864 |
|
|
| 25,243,530 |
|
Total liabilities |
|
| 278,974,983 |
|
|
| 283,129,071 |
|
|
|
|
|
|
|
|
| |
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 12,536,129 shares |
|
|
|
|
|
|
|
|
at June 30, 2024 and 12,248,313 shares at December 31, 2023; outstanding |
|
|
|
|
|
|
|
|
11,064,723 shares at June 30, 2024 and 10,776,907 shares at December 31, 2023 |
|
| 125,361 |
|
|
| 122,483 |
|
Capital in excess of par |
|
| 76,042,147 |
|
|
| 75,338,010 |
|
Accumulated other comprehensive loss |
|
| (12,624,559 | ) |
|
| (12,274,563 | ) |
Accumulated deficit |
|
| (17,172,694 | ) |
|
| (23,114,310 | ) |
|
| 46,370,255 |
|
|
| 40,071,620 |
| |
Treasury stock, at cost, 1,471,406 shares at June 30, 2024 |
|
|
|
|
|
|
|
|
and December 31, 2023 |
|
| (5,567,481 | ) |
|
| (5,567,481 | ) |
Total stockholders' equity |
|
| 40,802,774 |
|
|
| 34,504,139 |
|
|
|
|
|
|
|
|
| |
Total liabilities and stockholders' equity |
| $ | 319,777,757 |
|
| $ | 317,633,210 |
|
|
|
|
|
|
|
|
| |
|
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES |
| |||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||
| June 30, |
|
| June 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net premiums earned |
| $ | 30,303,612 |
|
| $ | 29,508,196 |
|
| $ | 59,123,514 |
|
| $ | 57,763,149 |
|
Ceding commission revenue |
|
| 4,561,961 |
|
|
| 5,412,210 |
|
|
| 9,129,072 |
|
|
| 10,857,617 |
|
Net investment income |
|
| 1,764,596 |
|
|
| 1,451,356 |
|
|
| 3,267,456 |
|
|
| 2,992,848 |
|
Net (losses) gains on investments |
|
| (233,606 | ) |
|
| 197,142 |
|
|
| 492,785 |
|
|
| 1,422,013 |
|
Other income |
|
| 105,552 |
|
|
| 151,084 |
|
|
| 254,465 |
|
|
| 312,124 |
|
Total revenues |
|
| 36,502,115 |
|
|
| 36,719,988 |
|
|
| 72,267,292 |
|
|
| 73,347,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss adjustment expenses |
|
| 14,238,308 |
|
|
| 19,580,702 |
|
|
| 32,097,895 |
|
|
| 44,620,112 |
|
Commission expense |
|
| 8,232,480 |
|
|
| 8,471,182 |
|
|
| 16,084,292 |
|
|
| 17,010,944 |
|
Other underwriting expenses |
|
| 5,900,525 |
|
|
| 6,683,638 |
|
|
| 11,781,130 |
|
|
| 13,555,257 |
|
Other operating expenses |
|
| 800,966 |
|
|
| 763,414 |
|
|
| 1,579,048 |
|
|
| 1,426,048 |
|
Depreciation and amortization |
|
| 619,934 |
|
|
| 778,502 |
|
|
| 1,216,447 |
|
|
| 1,586,632 |
|
Interest expense |
|
| 989,723 |
|
|
| 1,005,974 |
|
|
| 1,983,598 |
|
|
| 2,015,865 |
|
Total expenses |
|
| 30,781,936 |
|
|
| 37,283,412 |
|
|
| 64,742,410 |
|
|
| 80,214,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income (loss) from operations before taxes |
|
| 5,720,179 |
|
|
| (563,424 | ) |
|
| 7,524,882 |
|
|
| (6,867,107 | ) |
Income tax expense (benefit) |
|
| 1,205,242 |
|
|
| (41,407 | ) |
|
| 1,583,266 |
|
|
| (1,290,380 | ) |
Net income (loss) |
|
| 4,514,937 |
|
|
| (522,017 | ) |
|
| 5,941,616 |
|
|
| (5,576,727 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross change in unrealized gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on available-for-sale-securities |
|
| 109,784 |
|
|
| (1,132,528 | ) |
|
| (450,563 | ) |
|
| 1,334,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Reclassification adjustment for net realized losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in net income (loss) |
|
| 4,662 |
|
|
| 10,381 |
|
|
| 7,529 |
|
|
| 13,020 |
|
Net change in unrealized gains (losses), |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on available-for-sale-securities |
|
| 114,446 |
|
|
| (1,122,147 | ) |
|
| (443,034 | ) |
|
| 1,347,918 |
|
Income tax (expense) benefit related to items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of other comprehensive income (loss) |
|
| (24,034 | ) |
|
| 235,651 |
|
|
| 93,038 |
|
|
| (283,062 | ) |
Other comprehensive income (loss), net of tax |
|
| 90,412 |
|
|
| (886,496 | ) |
|
| (349,996 | ) |
|
| 1,064,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Comprehensive income (loss) |
| $ | 4,605,349 |
|
| $ | (1,408,513 | ) |
| $ | 5,591,620 |
|
| $ | (4,511,871 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.41 |
|
| $ | (0.05 | ) |
| $ | 0.54 |
|
| $ | (0.52 | ) |
Diluted |
| $ | 0.37 |
|
| $ | (0.05 | ) |
| $ | 0.50 |
|
| $ | (0.52 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 11,019,347 |
|
|
| 10,755,848 |
|
|
| 11,009,442 |
|
|
| 10,753,974 |
|
Diluted |
|
| 12,110,946 |
|
|
| 10,755,848 |
|
|
| 11,987,976 |
|
|
| 10,753,974 |
|
View the original press release on accesswire.com
FAQ
What is the Q2 2024 net income for Kingstone (KINS)?
How much did Kingstone's core business premiums grow in Q2 2024?
What is the new net combined ratio for Kingstone in Q2 2024?
What was Kingstone's return on equity for Q2 2024?
When is Kingstone's Q2 2024 financial results conference call?
