Kingstone Reports Record Profitability and Growth
Kingstone Companies (KINS) reported exceptional Q3 2024 financial results, achieving its highest income since 2009. Core business direct premiums written increased by 39.4% to $64,170 thousand in Q3 and 25% year-to-date. The net combined ratio improved significantly to 72%, down 38.2 percentage points from the previous year. The company reported net income of $6,978 thousand, compared to a loss of $3,538 thousand in Q3 2023. Return on equity reached 55.6% annualized. The strong performance was attributed to lower claims frequency, improved risk selection, and favorable market conditions, leading management to raise both 2024 and 2025 guidance.
Kingstone Companies (KINS) ha riportato risultati finanziari eccezionali per il terzo trimestre del 2024, raggiungendo il suo reddito più alto dal 2009. I premi diretti del core business scritti sono aumentati del 39,4%, raggiungendo i 64.170 mila dollari nel terzo trimestre e del 25% dall'inizio dell'anno. Il rapporto combinato netto è migliorato significativamente, portandosi al 72%, con un calo di 38,2 punti percentuali rispetto all'anno precedente. L'azienda ha registrato un reddito netto di 6.978 mila dollari, rispetto a una perdita di 3.538 mila dollari nel terzo trimestre del 2023. Il rendimento medio del capitale è arrivato a 55,6% annuo. Le forti performance sono state attribuite a una minore frequenza dei sinistri, a una migliore selezione dei rischi e a condizioni di mercato favorevoli, portando la direzione a rivedere al rialzo le previsioni per il 2024 e il 2025.
Kingstone Companies (KINS) reportó resultados financieros excepcionales para el tercer trimestre de 2024, alcanzando su mayor ingreso desde 2009. Las primas directas escritas del negocio principal aumentaron un 39.4%, alcanzando 64,170 mil dólares en el tercer trimestre y un 25% en lo que va del año. La relación combinada neta mejoró significativamente al 72%, disminuyendo 38.2 puntos porcentuales en comparación con el año anterior. La compañía reportó un ingreso neto de 6,978 mil dólares, en comparación con una pérdida de 3,538 mil dólares en el tercer trimestre de 2023. El retorno sobre el capital alcanzó un 55.6% anualizado. El sólido desempeño se atribuyó a una menor frecuencia de reclamaciones, una mejor selección de riesgos y condiciones de mercado favorables, lo que llevó a la dirección a elevar sus proyecciones para 2024 y 2025.
킹스톤 컴퍼니즈 (KINS)는 2024년 3분기 Exceptional한 재무 결과를 보고하며, 2009년 이후 가장 높은 수익을 달성했습니다. 핵심 비즈니스에서 발생한 직접 보험료는 39.4% 증가하여 3분기 동안 64,170천 달러에 달하며, 연초 대비 25% 올랐습니다. 순종합 비율은 72%로 크게 개선되었으며, 전년 대비 38.2포인트 하락했습니다. 회사는 2023년 3분기에 3,538천 달러의 손실과 비교하여 6,978천 달러의 순이익을 기록했습니다. 자기자본이익률은 연환산 55.6%에 도달했습니다. 이러한 강력한 실적은 청구 빈도 감소, 위험 선택 개선 및 우호적인 시장 조건 덕분이며, 경영진은 2024년과 2025년 예상치를 상향 조정했습니다.
Kingstone Companies (KINS) a annoncé des résultats financiers exceptionnels pour le troisième trimestre de 2024, atteignant son plus haut revenu depuis 2009. Les primes directes écrites de l'activité principale ont augmenté de 39,4% pour atteindre 64 170 mille dollars au troisième trimestre et de 25% depuis le début de l'année. Le ratio combiné net s'est considérablement amélioré, s'établissant à 72%, en baisse de 38,2 points par rapport à l'année précédente. L'entreprise a enregistré un revenu net de 6 978 mille dollars, contre une perte de 3 538 mille dollars au troisième trimestre 2023. Le rendement des capitaux propres a atteint 55,6% annualisé. La forte performance est attribuée à une fréquence de sinistres réduite, une meilleure sélection des risques et des conditions de marché favorables, ce qui a amené la direction à relever ses prévisions pour 2024 et 2025.
Kingstone Companies (KINS) hat außergewöhnliche Finanzresultate für das 3. Quartal 2024 gemeldet und damit den höchsten Umsatz seit 2009 erzielt. Die direkt geschriebenen Prämien im Kerngeschäft stiegen um 39,4% auf 64.170 Tausend Dollar im 3. Quartal und um 25% im laufenden Jahr. Die Netto-Kombinationsquote verbesserte sich erheblich auf 72%, was einen Rückgang um 38,2 Prozentpunkte im Vergleich zum Vorjahr darstellt. Das Unternehmen berichtete von einem Nettogewinn von 6.978 Tausend Dollar im Vergleich zu einem Verlust von 3.538 Tausend Dollar im 3. Quartal 2023. Die Eigenkapitalrendite erreichte annualisiert 55,6%. Die starke Performance wurde auf eine geringere Schadenshäufigkeit, verbesserte Risikoselektion und günstige Marktbedingungen zurückgeführt, was das Management dazu veranlasste, die Prognosen für 2024 und 2025 nach oben zu korrigieren.
- Record quarterly net income of $6,978 thousand vs loss in Q3 2023
- Core business premiums up 39.4% YoY in Q3
- Net combined ratio improved dramatically to 72% from 110.2%
- Strong annualized ROE of 55.6%
- Favorable prior year reserve development of 1.9%
- Management raised guidance for both 2024 and 2025
- Expense ratio increased 1.3 percentage points due to higher bonus and commission costs
Insights
Outstanding quarterly performance with remarkable financial metrics. Net income of
Core business growth is robust with direct premiums written up
The expense ratio increase to
The dramatic improvement in loss ratios and claims management demonstrates successful implementation of risk selection strategies through the Select product line. The
The
Raises 2024 and 2025 Guidance
Raises 2024 and 2025 Guidance
Kingston, NY - November 12, 2024 - Kingstone Companies, Inc. (Nasdaq: KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today announced its financial results for the third quarter ended September 30, 2024. The Company will hold its third quarter 2024 financial results conference call on Wednesday, November 13, 2024, at 8:30 a.m. Eastern Time. With this release, the Company has provided an investor presentation that can be accessed through the Investor Relations/Events & Presentations section of the Company website (www.kingstonecompanies.com).
| Key Financial and Operational Highlights |
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| Quarter Ended |
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| Nine Months Ended |
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($ in thousands, except per share data) |
| September 30, |
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| September 30, |
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| 2024 |
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| 2023 |
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| Change |
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| 2024 |
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| 2023 |
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| % Change |
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Direct premiums written1 - Core Business2 |
| $ | 64,170 |
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| $ | 46,026 |
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| 39.4 | % |
| $ | 162,063 |
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| $ | 129,665 |
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| 25.0 | % |
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Net combined ratio |
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| 72.0 | % |
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| 110.2 | % |
| (38.2) pts |
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| 80.7 | % |
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| 110.7 | % |
| (30.0) pts |
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Net Income/(Loss) |
| $ | 6,978 |
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| $ | (3,538 | ) |
| NM |
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| $ | 12,920 |
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| $ | (9,114 | ) |
| NM |
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Net Income/(Loss) per share - basic |
| $ | 0.61 |
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| $ | (0.33 | ) |
| NM |
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| $ | 1.16 |
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| $ | (0.85 | ) |
| NM |
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Return on equity - annualized |
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| 55.6 | % |
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| (48.3 | %) |
| 103.8 pts |
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| 36.6 | % |
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| (38.8 | %) |
| 75.3 pts |
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Management Commentary
Meryl Golden, Chief Executive Officer of Kingstone Companies, Inc., stated, "In the third quarter of 2024, we delivered the highest level of income since Kingstone Insurance Company was acquired by Kingstone Companies in 2009, coupled with record-breaking premiums written. The simultaneous achievement of these milestones is remarkable, driven in large part by the strength of our team, as well as the favorable market conditions that emerged just months ago. The timing could not have been more advantageous for Kingstone.
Core business direct premiums written increased by
Our net combined ratio improved by 38.2 percentage points to
Ms. Golden concluded, "With most of the year behind us and strong visibility into the fourth quarter, we are raising both our full-year 2024 and 2025 guidance. We have successfully executed our strategy and delivered meaningful, sustainable value for our shareholders. Moving forward, our priority remains maximizing value for our shareholders and ensuring the long-term success of the company.
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 |
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| 2024 - Previous |
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Core Business2 direct premiums written growth |
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Combined ratio |
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Net income per share - basic* |
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Return on equity |
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For 2025, the Company's full year expectations are calculated based on anticipated net premiums earned of approximately
Guidance Metrics |
| 2025 - Current |
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| 2025 - Previous |
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Core Business2 direct premiums written growth |
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Combined ratio |
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Net income per share - basic* |
| $ | 1.60 to |
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| $ | 1.20 to |
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Return on equity |
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*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 |
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| Nine Months Ended |
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($ in thousands, except per share data) |
| September 30, |
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| September 30, |
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| 2024 |
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| 2023 |
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| Change |
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| 2024 |
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| 2023 |
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| % Change |
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Direct premiums written1 |
| $ | 66,627 |
|
| $ | 51,992 |
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| 28.1 | % |
| $ | 169,447 |
|
| $ | 147,237 |
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| 15.1 | % |
Net premiums earned |
| $ | 33,407 |
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| $ | 27,938 |
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| 19.6 | % |
| $ | 92,531 |
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| $ | 85,701 |
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| 8.0 | % |
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Net investment income |
| $ | 1,650 |
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| $ | 1,444 |
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| 14.3 | % |
| $ | 4,917 |
|
| $ | 4,437 |
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|
| 10.8 | % |
Net gain/(loss) on investments |
| $ | 827 |
|
| $ | (824 | ) |
| NM |
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| $ | 1,319 |
|
| $ | 598 |
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| 120.6 | % | |
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Underlying loss ratio1 |
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| 39.2 | % |
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| 70.8 | % |
| (31.6) pts |
|
|
| 47.9 | % |
|
| 69.2 | % |
| (21.3) pts |
| ||
Net development of prior year losses |
|
| (1.9 | %) |
|
| 0.0 | % |
| (1.9) pts |
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| (1.8 | %) |
|
| 0.0 | % |
| (1.8) pts |
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Net loss ratio excluding the effect of catastrophes1 |
|
| 37.3 | % |
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| 70.8 | % |
| (33.5) pts |
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|
| 46.1 | % |
|
| 69.2 | % |
| (23.1) pts |
| ||
Catastrophe loss ratio1 |
|
| 1.7 | % |
|
| 7.7 | % |
| (6.0) pts |
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|
| 2.7 | % |
|
| 8.5 | % |
| (5.8) pts |
| ||
Net loss ratio |
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| 39.0 | % |
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| 78.5 | % |
| (39.5) pts |
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|
| 48.8 | % |
|
| 77.7 | % |
| (28.9) pts |
| ||
Net underwriting expense ratio |
|
| 33.0 | % |
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| 31.7 | % |
| 1.3 pts |
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|
| 31.9 | % |
|
| 33.0 | % |
| (1.1) pts |
| ||
Net combined ratio |
|
| 72.0 | % |
|
| 110.2 | % |
| (38.2) pts |
|
|
| 80.7 | % |
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| 110.7 | % |
| (30.0) pts |
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Adjusted EBITDA1 |
| $ | 10,433 |
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| $ | (1,635 | ) |
| NM |
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| $ | 21,212 |
|
| $ | (5,893 | ) |
| NM |
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Net Income/(Loss) |
| $ | 6,978 |
|
| $ | (3,538 | ) |
| NM |
|
| $ | 12,920 |
|
| $ | (9,114 | ) |
| NM |
| ||
Net Income/(Loss) per share - basic |
| $ | 0.61 |
|
| $ | (0.33 | ) |
| NM |
|
| $ | 1.16 |
|
| $ | (0.85 | ) |
| NM |
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Net Income/(Loss) per share - diluted |
| $ | 0.55 |
|
| $ | (0.33 | ) |
| NM |
|
| $ | 1.05 |
|
| $ | (0.85 | ) |
| NM |
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Return on equity - annualized |
|
| 55.6 | % |
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| (48.3 | %) |
| NM |
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|
| 36.6 | % |
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| (38.8 | %) |
| NM |
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Other comprehensive income/(loss) |
| $ | 3,584 |
|
| $ | (2,226 | ) |
| NM |
|
| $ | 3,234 |
|
| $ | (1,161 | ) |
| NM |
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Operating net income/(loss)1 |
| $ | 6,325 |
|
| $ | (2,886 | ) |
| NM |
|
| $ | 11,878 |
|
| $ | (9,586 | ) |
| NM |
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Operating net income/(loss) per share - basic1 |
| $ | 0.55 |
|
| $ | (0.27 | ) |
| NM |
|
| $ | 1.07 |
|
| $ | (0.89 | ) |
| NM |
| ||
Operating net income/(loss) per share - diluted1 |
| $ | 0.50 |
|
| $ | (0.27 | ) |
| NM |
|
| $ | 0.97 |
|
| $ | (0.89 | ) |
| NM |
| ||
Operating return on equity1 |
|
| 12.6 | % |
|
| (9.8 | %) |
| NM |
|
|
| 25.2 | % |
|
| (30.6 | %) |
| NM |
| ||
Operating return on equity1 - annualized |
|
| 50.4 | % |
|
| (39.4 | %) |
| NM |
|
|
| 33.6 | % |
|
| (40.8 | %) |
| NM |
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Book value per share - diluted |
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| $ | 4.58 |
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| $ | 2.16 |
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Book value per share - diluted excluding AOCI |
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| $ | 5.28 |
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| $ | 3.55 |
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NM = Not Meaningful
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 |
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| Nine Months Ended |
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($ in thousands, except per share data) |
| September 30, |
|
| September 30, |
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|
| 2024 |
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| 2023 |
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| % Change |
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| 2024 |
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| 2023 |
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| % Change |
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Direct premiums written1, 3 |
| $ | 64,170 |
|
| $ | 46,026 |
|
|
| 39.4 | % |
| $ | 162,063 |
|
| $ | 129,665 |
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| 25.0 | % |
Net premiums earned |
| $ | 31,407 |
|
| $ | 24,388 |
|
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| 28.8 | % |
| $ | 86,468 |
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| $ | 73,606 |
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| 17.5 | % |
Net loss ratio excluding the effect of catastrophes1,3 |
|
| 36.6 | % |
|
| 64.7 | % |
| (28.1) pts |
|
|
| 44.7 | % |
|
| 64.4 | % |
| (19.6) pts | |||
Catastrophe loss ratio1, 3 |
|
| 1.2 | % |
|
| 7.4 | % |
| (6.2) pts |
|
|
| 1.9 | % |
|
| 5.4 | % |
| (3.6) pts | |||
Net loss ratio3 |
|
| 37.8 | % |
|
| 72.1 | % |
| (34.3) pts |
|
|
| 46.6 | % |
|
| 69.8 | % |
| (23.2) 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 |
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| Nine Months Ended |
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($ in thousands, except per share data) |
| September 30, |
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| September 30, |
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| 2024 |
|
| 2023 |
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| % Change |
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| 2024 |
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| 2023 |
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| % Change |
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Direct premiums written1, 3 |
| $ | 2,457 |
|
| $ | 5,966 |
|
|
| (58.8 | %) |
| $ | 7,384 |
|
| $ | 17,572 |
|
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| (58.0 | %) |
Net premiums earned |
| $ | 2,000 |
|
| $ | 3,550 |
|
|
| (43.7 | %) |
| $ | 6,063 |
|
| $ | 12,095 |
|
|
| (49.9 | %) |
Net loss ratio excluding the effect of catastrophes1,3 |
|
| 47.5 | % |
|
| 112.5 | % |
| (65.0) pts |
|
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| 65.7 | % |
|
| 98.5 | % |
| (32.7) pts | |||
Catastrophe loss ratio1, 3 |
|
| 10.8 | % |
|
| 10.3 | % |
| 0.5 pts |
|
|
| 13.9 | % |
|
| 27.1 | % |
| (13.2) pts | |||
Net loss ratio3 |
|
| 58.2 | % |
|
| 122.8 | % |
| (64.5) pts |
|
|
| 79.6 | % |
|
| 125.5 | % |
| (45.9) pts | |||
Premium and Policy Trends
($ in thousands) |
| September 30, 2024 |
|
| Sequential Change |
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| June 30, 2024 |
|
| Sequential Change |
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| March 31, 2024 |
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| Sequential Change |
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| December 31, 2023 |
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| Core Business2 | |||||||||||||||||||||||||||||
Direct premiums written1, 3 |
| $ | 64,170 |
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|
| 25.1& |
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| $ | 51,306 |
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| $ | 46,587 |
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| (0.9)% |
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| $ | 47,027 |
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Policies in force |
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| 69,347 |
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| 66,934 |
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| (0.1)% |
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| 66,991 |
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| (0.9)% |
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| 67,575 |
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| Non-Core Business2 | |||||||||||||||||||||||||||||
Direct premiums written1,3 |
| $ | 2,457 |
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| $ | 2,190 |
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| (20.0)% |
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| $ | 2,738 |
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| (53.7)% |
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| $ | 5,911 |
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Policies in force |
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| 5,540 |
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| (24.2)% |
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| 7,306 |
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| (19.5)% |
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| 9,080 |
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| (16.1)% |
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| 10,823 |
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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 direct premiums written, net loss ratio excluding the effect of catastrophes and catastrophe loss ratio are not based on GAAP. Net premiums earned is the most directly comparable GAAP measure to direct premiums written. Net loss ratio is the most directly comparable GAAP measure to net loss ratio excluding the effect of catastrophes and catastrophe loss ratio. The aggregate of Core Business and Non-Core Business direct premiums written, net loss ratios and catastrophe loss ratios is represented by direct premiums written, net loss ratios and catastrophe loss ratio, as set forth under Consolidated Financial Results above. See "Definitions and Non-GAAP Measures".
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 "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 November 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 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.
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, loss on extinguishment of debt, 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, loss on extinguishment of debt, 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 and the effect of prior year loss reserve development and catastrophe 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 Nine Months Ended |
|
|
| ||||||||||||||||||
|
| September 30, |
|
| September 30, |
|
|
| ||||||||||||||||||
|
|
|
|
|
|
|
| % |
|
|
|
|
|
|
|
| % |
|
|
| ||||||
|
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
|
|
| ||||||
(000's except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Direct Premiums Written Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Direct premiums written |
| $ | 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 premiums written |
|
| 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)
1 Net 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 Nine Months Ended |
| ||||||||||||||||||
|
| September 30, |
|
| September 30, |
| ||||||||||||||||||
|
|
|
|
|
|
|
| % |
|
|
|
|
|
|
|
| % |
| ||||||
|
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
(000's except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Adjusted EBITDA Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | 6,978 |
|
| $ | (3,538 | ) |
| NM |
|
| $ | 12,920 |
|
| $ | (9,114 | ) |
| NM |
| ||
Interest expense |
|
| 901 |
|
|
| 989 |
|
|
| (8.9 | )% |
|
| 2,884 |
|
|
| 3,005 |
|
|
| (4.0 | )% |
Income tax expense (benefit) |
|
| 2,106 |
|
|
| (859 | ) |
| NM |
|
|
| 3,689 |
|
|
| (2,149 | ) |
| NM |
| ||
Depreciation and amortization |
|
| 619 |
|
|
| 741 |
|
|
| (16.5 | )% |
|
| 1,836 |
|
|
| 2,328 |
|
|
| (21.1 | )% |
EBITDA |
|
| 10,604 |
|
|
| (2,667 | ) |
| NM |
|
|
| 21,329 |
|
|
| (5,931 | ) |
| NM |
| ||
Loss on extinguishment of debt |
|
| 297 |
|
|
| - |
|
| NM |
|
|
| 297 |
|
|
| - |
|
| NM |
| ||
Net (gain) loss on investments |
|
| (827 | ) |
|
| 824 |
|
| NM |
|
|
| (1,319 | ) |
|
| (598 | ) |
|
| 120.6 | % | |
Stock-based compensation |
|
| 359 |
|
|
| 207 |
|
|
| 73.4 | % |
|
| 906 |
|
|
| 636 |
|
|
| 42.5 | % |
Adjusted EBITDA |
| $ | 10,433 |
|
| $ | (1,635 | ) |
| NM |
|
| $ | 21,212 |
|
| $ | (5,893 | ) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Components may not sum due to rounding) | ||||||||||||||||||||||||
The following table reconciles net income (loss) to operating net income (loss) and basic net income (loss) per share to basic operating net 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 |
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
| 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) |
| $ | 6,978 |
|
| $ | 0.61 |
|
| $ | (3,538 | ) |
| $ | (0.33 | ) |
| $ | 12,920 |
|
| $ | 1.16 |
|
| $ | (9,114 | ) |
| $ | (0.85 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (gain) loss on investments |
|
| (827 | ) |
|
|
|
|
|
| 824 |
|
|
|
|
|
|
| (1,319 | ) |
|
|
|
|
|
| (598 | ) |
|
|
|
|
Less tax (expense) benefit on net (gain) loss |
|
| (174 | ) |
|
|
|
|
|
| 173 |
|
|
|
|
|
|
| (277 | ) |
|
|
|
|
|
| (126 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (gain) loss on investments, net of taxes |
|
| (653 | ) |
|
| (0.06 | ) |
|
| 651 |
|
|
| 0.06 |
|
|
| (1,042 | ) |
|
| (0.09 | ) |
|
| (472 | ) |
|
| (0.04 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating net income (loss) |
| $ | 6,325 |
|
| $ | 0.55 |
|
| $ | (2,886 | ) |
| $ | (0.27 | ) |
| $ | 11,878 |
|
| $ | 1.07 |
|
| $ | (9,586 | ) |
| $ | (0.89 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average basic shares outstanding |
|
| 11,404,360 |
|
|
|
|
|
|
| 10,756,156 |
|
|
|
|
|
|
| 11,142,043 |
|
|
|
|
|
|
| 10,754,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Components may not sum due to rounding)
The following table reconciles net income (loss) to operating net income (loss) and diluted net income (loss) per share to diluted operating net 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 |
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
| 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) |
| $ | 6,978 |
|
| $ | 0.55 |
|
| $ | (3,538 | ) |
| $ | (0.33 | ) |
| $ | 12,920 |
|
| $ | 1.05 |
|
| $ | (9,114 | ) |
| $ | (0.85 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (gain) loss on investments |
|
| (827 | ) |
|
|
|
|
|
| 824 |
|
|
|
|
|
|
| (1,319 | ) |
|
|
|
|
|
| (598 | ) |
|
|
|
|
Less tax (expense) benefit on net (gain) loss |
|
| (174 | ) |
|
|
|
|
|
| 173 |
|
|
|
|
|
|
| (277 | ) |
|
|
|
|
|
| (126 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (gain) loss on investments, net of taxes |
|
| (653 | ) |
|
| (0.05 | ) |
|
| 651 |
|
|
| 0.06 |
|
|
| (1,042 | ) |
|
| (0.09 | ) |
|
| (472 | ) |
|
| (0.04 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating net income (loss) |
| $ | 6,325 |
|
| $ | 0.50 |
|
| $ | (2,886 | ) |
| $ | (0.27 | ) |
| $ | 11,878 |
|
| $ | 0.97 |
|
| $ | (9,586 | ) |
| $ | (0.89 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average diluted shares outstanding |
|
| 12,581,128 |
|
|
|
|
|
|
| 10,756,156 |
|
|
|
|
|
|
| 12,249,576 |
|
|
|
|
|
|
| 10,754,709 |
|
|
|
|
|
(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 Nine Months Ended |
| |||||||||||||||||||
| September 30, |
|
| September 30, |
| |||||||||||||||||||
|
|
|
|
|
|
| % |
|
|
|
|
|
|
|
| % |
| |||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| |||||||
(000's except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Operating Net Income (Loss) Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income (loss) |
| $ | 6,978 |
|
| $ | (3,538 | ) |
| NM |
|
| $ | 12,920 |
|
| $ | (9,114 | ) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net (gain) loss on investments |
|
| (827 | ) |
|
| 824 |
|
| NM |
|
|
| (1,319 | ) |
|
| (598 | ) |
|
| (120.6 | %) | |
Less tax (expense) benefit on net (gain) loss |
|
| (174 | ) |
|
| 173 |
|
| NM |
|
|
| (277 | ) |
|
| (126 | ) |
|
| (119.8 | %) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net (gain) loss on investments, net of taxes |
|
| (653 | ) |
|
| 651 |
|
| NM |
|
|
| (1,042 | ) |
|
| (472 | ) |
|
| (120.8 | %) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating net income (loss) |
| $ | 6,325 |
|
| $ | (2,886 | ) |
| NM |
|
| $ | 11,878 |
|
| $ | (9,586 | ) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating Return on Equity Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net income (loss) |
| $ | 6,978 |
|
| $ | (3,538 | ) |
| NM |
|
| $ | 12,920 |
|
| $ | (9,114 | ) |
| NM |
| ||
Average equity |
| $ | 50,236 |
|
| $ | 29,307 |
|
|
| 71.4 | % |
| $ | 47,087 |
|
| $ | 31,349 |
|
|
| 50.2 | % |
Return on equity |
|
| 13.9 | % |
|
| (12.1 | %) |
| NM |
|
|
| 27.4 | % |
|
| (29.1 | %) |
| NM |
| ||
Return on equity - annualized |
|
| 55.6 | % |
|
| (48.3 | %) |
| NM |
|
|
| 36.6 | % |
|
| (38.8 | %) |
| NM |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (gain) loss on investments, net of taxes |
| $ | (653 | ) |
| $ | 651 |
|
| NM |
|
| $ | (1,042 | ) |
| $ | (472 | ) |
|
| (120.8 | %) | |
Average equity |
| $ | 50,236 |
|
| $ | 29,307 |
|
|
| 71.4 | % |
| $ | 47,087 |
|
| $ | 31,349 |
|
|
| 50.2 | % |
Effect of net (gain) loss on investments, net of taxes, on return on equity |
|
| (1.3 | %) |
|
| 2.2 | % |
| NM |
|
|
| (2.2 | %) |
|
| (1.5 | %) |
|
| (47.0 | %) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating net income (loss) |
| $ | 6,325 |
|
| $ | (2,886 | ) |
| NM |
|
| $ | 11,878 |
|
| $ | (9,586 | ) |
| NM |
| ||
Operating net income (loss) - annualized |
| $ | 25,300 |
|
| $ | (11,544 | ) |
| NM |
|
| $ | 15,837 |
|
| $ | (12,781 | ) |
| NM |
| ||
Average equity |
| $ | 50,236 |
|
| $ | 29,307 |
|
|
| 71.4 | % |
| $ | 47,087 |
|
| $ | 31,349 |
|
|
| 50.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating return on equity |
|
| 12.6 | % |
|
| (9.8 | %) |
| NM |
|
|
| 25.2 | % |
|
| (30.6 | %) |
| NM |
| ||
Operating return on equity - annualized |
|
| 50.4 | % |
|
| (39.4 | %) |
| NM |
|
|
| 33.6 | % |
|
| (40.8 | %) |
| NM |
| ||
(Components may not sum due to rounding)
The following table reconciles the underlying loss ratio, the net loss ratio excluding the effect of catastrophes and the catastrophe loss ratio to the net loss ratio for the periods presented:
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||||||||||||
| September 30, |
|
| September 30, |
| |||||||||||||||||||
| 2024 |
|
| 2023 |
|
| Percentage Point Change |
|
| 2024 |
|
| 2023 |
|
| Percentage Point Change |
| |||||||
Loss Ratio Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Underlying Loss Ratio |
|
| 39.2 | % |
|
| 70.8 | % |
|
| (31.6) | pts |
|
| 47.9 | % |
|
| 69.2 | % |
|
| (21.3) | pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Effect of prior-year reserve development |
|
| (1.9 | %) |
|
| 0.0 | % |
|
| (1.9) | pts |
|
| (1.8 | %) |
|
| 0.0 | % |
|
| (1.8) | pts |
Net loss ratio excluding the effect of catastrophes |
|
| 37.3 | % |
|
| 70.8 | % |
|
| (33.5) | pts |
|
| 46.1 | % |
|
| 69.2 | % |
|
| (23.1) | pts |
Effect of catastrophes |
|
| 1.7 | % |
|
| 7.7 | % |
|
| (6.0) | pts |
|
| 2.7 | % |
|
| 8.5 | % |
|
| (5.8) | pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss ratio |
|
| 39.0 | % |
|
| 78.5 | % |
|
| (39.5) | pts |
|
| 48.8 | % |
|
| 77.7 | % |
|
| (28.9) | pts |
(Components may not sum due to rounding)
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
| September 30, |
|
| December 31, |
| |||
| 2024 |
|
| 2023 |
| |||
| (unaudited) |
|
|
|
| |||
Assets |
|
|
|
|
|
| ||
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of |
|
|
|
|
|
| ||
| $ | 7,048,662 |
|
| $ | 7,052,541 |
| |
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of |
|
|
|
|
|
|
|
|
|
| 165,458,345 |
|
|
| 148,920,797 |
| |
Equity securities, at fair value (cost of |
|
|
|
|
|
|
|
|
|
| 11,280,228 |
|
|
| 14,762,340 |
| |
Other investments |
|
| 4,299,178 |
|
|
| 3,897,150 |
|
Total investments |
|
| 188,086,413 |
|
|
| 174,632,828 |
|
Cash and cash equivalents |
|
| 33,760,798 |
|
|
| 8,976,998 |
|
Premiums receivable, net |
|
| 17,601,417 |
|
|
| 13,604,808 |
|
Reinsurance receivables, net |
|
| 65,746,827 |
|
|
| 75,593,912 |
|
Deferred policy acquisition costs |
|
| 21,852,365 |
|
|
| 19,802,564 |
|
Intangible assets |
|
| 500,000 |
|
|
| 500,000 |
|
Property and equipment, net |
|
| 9,299,163 |
|
|
| 9,395,697 |
|
Deferred income taxes, net |
|
| 6,002,833 |
|
|
| 10,551,819 |
|
Other assets |
|
| 4,144,585 |
|
|
| 4,574,584 |
|
Total assets |
| $ | 346,994,401 |
|
| $ | 317,633,210 |
|
|
|
|
|
|
|
|
| |
Liabilities |
|
|
|
|
|
|
|
|
Loss and loss adjustment expense reserves |
| $ | 116,842,451 |
|
| $ | 121,817,862 |
|
Unearned premiums |
|
| 119,974,779 |
|
|
| 105,621,538 |
|
Advance premiums |
|
| 5,307,223 |
|
|
| 3,797,590 |
|
Reinsurance balances payable |
|
| 9,866,555 |
|
|
| 12,837,140 |
|
Deferred ceding commission revenue |
|
| 10,286,093 |
|
|
| 9,460,865 |
|
Accounts payable, accrued expenses and other liabilities |
|
| 7,749,981 |
|
|
| 4,350,546 |
|
Debt, net (current current |
|
| 17,297,587 |
|
|
| 25,243,530 |
|
Total liabilities |
|
| 287,324,669 |
|
|
| 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 13,818,950 shares |
|
|
|
|
|
|
|
|
at September 30, 2024 and 12,248,313 shares at December 31, 2023; outstanding |
|
|
|
|
|
|
|
|
12,312,296 shares at September 30, 2024 and 10,776,907 shares at December 31, 2023 |
|
| 138,190 |
|
|
| 122,483 |
|
Capital in excess of par |
|
| 84,334,037 |
|
|
| 75,338,010 |
|
Accumulated other comprehensive loss |
|
| (9,040,113 | ) |
|
| (12,274,563 | ) |
Accumulated deficit |
|
| (10,194,549 | ) |
|
| (23,114,310 | ) |
|
| 65,237,565 |
|
|
| 40,071,620 |
| |
Treasury stock, at cost, 1,506,654 shares at September 30, 2024 |
|
|
|
|
|
|
|
|
and December 31, 2023 |
|
| (5,567,833 | ) |
|
| (5,567,481 | ) |
Total stockholders' equity |
|
| 59,669,732 |
|
|
| 34,504,139 |
|
|
|
|
|
|
|
|
| |
Total liabilities and stockholders' equity |
| $ | 346,994,401 |
|
| $ | 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 Nine Months Ended |
| |||||||||||
| September 30, |
|
| September 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net premiums earned |
| $ | 33,407,194 |
|
| $ | 27,938,318 |
|
| $ | 92,530,708 |
|
| $ | 85,701,467 |
|
Ceding commission revenue |
|
| 4,741,676 |
|
|
| 5,536,327 |
|
|
| 13,870,748 |
|
|
| 16,393,944 |
|
Net investment income |
|
| 1,649,673 |
|
|
| 1,444,360 |
|
|
| 4,917,129 |
|
|
| 4,437,208 |
|
Net gains (losses) on investments |
|
| 826,522 |
|
|
| (824,370 | ) |
|
| 1,319,307 |
|
|
| 597,643 |
|
Other income |
|
| 146,663 |
|
|
| 142,036 |
|
|
| 401,128 |
|
|
| 454,160 |
|
Total revenues |
|
| 40,771,728 |
|
|
| 34,236,671 |
|
|
| 113,039,020 |
|
|
| 107,584,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss adjustment expenses |
|
| 13,027,597 |
|
|
| 21,932,453 |
|
|
| 45,125,492 |
|
|
| 66,552,565 |
|
Commission expense |
|
| 9,004,254 |
|
|
| 8,210,430 |
|
|
| 25,088,546 |
|
|
| 25,221,374 |
|
Other underwriting expenses |
|
| 6,894,590 |
|
|
| 6,318,625 |
|
|
| 18,675,720 |
|
|
| 19,873,882 |
|
Other operating expenses |
|
| 1,241,572 |
|
|
| 441,963 |
|
|
| 2,820,620 |
|
|
| 1,868,011 |
|
Depreciation and amortization |
|
| 619,056 |
|
|
| 741,059 |
|
|
| 1,835,503 |
|
|
| 2,327,691 |
|
Interest expense |
|
| 900,583 |
|
|
| 988,699 |
|
|
| 2,884,181 |
|
|
| 3,004,564 |
|
Total expenses |
|
| 31,687,652 |
|
|
| 38,633,229 |
|
|
| 96,430,062 |
|
|
| 118,848,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income (loss) from operations before taxes |
|
| 9,084,076 |
|
|
| (4,396,558 | ) |
|
| 16,608,958 |
|
|
| (11,263,665 | ) |
Income tax expense (benefit) |
|
| 2,105,931 |
|
|
| (858,987 | ) |
|
| 3,689,197 |
|
|
| (2,149,367 | ) |
Net income (loss) |
|
| 6,978,145 |
|
|
| (3,537,571 | ) |
|
| 12,919,761 |
|
|
| (9,114,298 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross change in unrealized gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on available-for-sale-securities |
|
| 4,533,334 |
|
|
| (2,821,785 | ) |
|
| 4,082,771 |
|
|
| (1,486,887 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Reclassification adjustment for net realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
losses included in net income (loss) |
|
| 3,939 |
|
|
| 4,181 |
|
|
| 11,468 |
|
|
| 17,201 |
|
Net change in unrealized gains (losses), |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on available-for-sale-securities |
|
| 4,537,273 |
|
|
| (2,817,604 | ) |
|
| 4,094,239 |
|
|
| (1,469,686 | ) |
Income tax (expense) benefit related to items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of other comprehensive income (loss) |
|
| (952,827 | ) |
|
| 591,697 |
|
|
| (859,789 | ) |
|
| 308,635 |
|
Other comprehensive income (loss), net of tax |
|
| 3,584,446 |
|
|
| (2,225,907 | ) |
|
| 3,234,450 |
|
|
| (1,161,051 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Comprehensive income (loss) |
| $ | 10,562,591 |
|
| $ | (5,763,478 | ) |
| $ | 16,154,211 |
|
| $ | (10,275,349 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.61 |
|
| $ | (0.33 | ) |
| $ | 1.16 |
|
| $ | (0.85 | ) |
Diluted |
| $ | 0.55 |
|
| $ | (0.33 | ) |
| $ | 1.05 |
|
| $ | (0.85 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 11,404,360 |
|
|
| 10,756,156 |
|
|
| 11,142,043 |
|
|
| 10,754,709 |
|
Diluted |
|
| 12,581,128 |
|
|
| 10,756,156 |
|
|
| 12,249,576 |
|
|
| 10,754,709 |
|
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)
Three months ended September 30, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital |
|
| Other |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
| Preferred Stock |
|
| Common Stock |
|
| in Excess |
|
| Comprehensive |
|
| Accumulated |
|
| Treasury Stock |
|
|
|
| |||||||||||||||||||
| Shares |
|
| Amount |
|
| Shares |
|
| Amount |
|
| of Par |
|
| Loss |
|
| Deficit |
|
| Shares |
|
| Amount |
|
| Total |
| |||||||||||
Balance, July 1, 2023 |
|
| - |
|
|
| - |
|
|
| 12,227,562 |
|
| $ | 122,275 |
|
| $ | 74,946,685 |
|
| $ | (14,893,572 | ) |
| $ | (22,522,691 | ) |
| $ | 1,471,406 |
|
| $ | (5,567,481 | ) |
| $ | 32,085,216 |
|
Stock-based compensation |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 207,123 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 207,123 |
|
Net loss |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (3,537,571 | ) |
|
| - |
|
|
| - |
|
|
| (3,537,571 | ) |
Change in unrealized losses on available- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for-sale securities, net of tax |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (2,225,907 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (2,225,907 | ) |
Balance, September 30, 2023 |
|
| - |
|
|
| - |
|
|
| 12,227,562 |
|
| $ | 122,275 |
|
| $ | 75,153,808 |
|
| $ | (17,119,479 | ) |
| $ | (26,060,262 | ) |
| $ | 1,471,406 |
|
| $ | (5,567,481 | ) |
| $ | 26,528,861 |
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
| Capital | Other |
|
|
|
|
| Preferred Stock | Common Stock | in Excess | Comprehensive | Accumulated | Treasury Stock |
| |||
| Shares | Amount | Shares | Amount | of Par | Loss | Deficit | Shares | Amount | Total |
Balance, July 1, 2024 | - | - | 12,536,129 | ( | ( | ( | ||||
Stock-based compensation | - | - | - | - | 359,170 | - | - | - | - | 359,170 |
Vesting of restricted stock awards | - | - | 211,391 | 2,114 | (2,114) | - | - | - | - | - |
Shares deducted from restricted stock |
|
|
|
|
|
|
|
|
|
|
awards for payment of withholding taxes | - | - | (106,687) | (1,067) | (951,644) | - | - | - | - | (952,711) |
Exercise of stock options | - | - | 37,959 | 380 | (28) | - | - | 35,248 | (352) | - |
Exercise of warrants | - | - | 60,557 | 606 | (606) | - | - | - | - | - |
Issuance of common stock, net of |
|
|
|
|
|
|
|
|
|
|
offering costs of | - | - | 1,079,601 | 10,796 | 8,887,112 | - | - | - | - | 8,897,908 |
Net income | - | - | - | - | - | - | 6,978,145 | - | - | 6,978,145 |
Change in unrealized gains on available- |
|
|
|
|
|
|
|
|
|
|
for-sale securities, net of tax | - | - | - | - | - | 3,584,446 | - | - | - | 3,584,446 |
Balance, September 30, 2024 | - | - | 13,818,950 | ( | ( | ( | ||||
SOURCE:
View the original press release on accesswire.com
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