Market Overview

Kingstone Announces 2017 Third Quarter Financial Results

Share:

Company to Host Conference Call on November 10, 2017 at 8:30 a.m. ET

Kingstone Companies, Inc. (Nasdaq: KINS) (the "Company" or
"Kingstone"), a multi-line property and casualty insurance holding
company, today announced its financial results for the quarter ended
September 30, 2017.

Financial and Operational Highlights

2017 Third Quarter
(All results are compared to prior
year period unless otherwise noted)

  • Net income increased 17.7% to $4.1 million or $0.38 per diluted share
  • Net operating income1 increased 23.0% to $4.1 million or
    $0.38 per diluted share
  • Net premiums earned increased 37.5% to $21.5 million
  • Direct written premiums1 increased 20.9%; Personal lines
    grew by 25.2%
  • Net combined ratio of 69.8% compared to 67.4%
  • Return on average common equity (annualized) of 17.7%
  • Operating return on average common equity (annualized)1 of
    17.6%
  • Book value per share increased to $8.83, up 23.3% over Q3 2016

Quarterly Dividend of $0.08 per share

The Company announced that its Board of Directors declared a quarterly
dividend of $0.08 per share payable on December 15, 2017 to stockholders
of record at the close of business on November 30, 2017. This is
Kingstone's 26th consecutive quarterly dividend.

Management Commentary

Kingstone's Chairman and CEO, Barry Goldstein, commented, "As hoped, the
heightened quoting and binding activity from our Select Producers,
following our A.M. Best upgrade to "A- Excellent" continues. New policy
issuance in New York is at a record level. The response from our Select
Producers validates our team's decision to pursue the rating and
justifies the capital actions taken by KINS earlier this year to bolster
the capital base of Kingstone Insurance Company ("KICO"). We are making
good use of the new equity, seen by our quarterly ROE of 17.7%
(annualized) driving back to our long stated goal of 20%. Our
conservative investment portfolio, with fixed income accounting for 90%
of our holdings, generated our first ever quarter of net investment
income exceeding $1 million.

Our goal of becoming a northeast regional underwriter focusing on
agent-only ("Never Direct") sales of our personal and small business
polices is well underway. We continue to make traction in our expansion
plan, and the offering of New Jersey Homeowners policies is now
contributing to our profitable growth. We received approval for our
Rhode Island Homeowners product in October and will begin writing
business there by year-end. In late October we were informed by The
Commonwealth of Massachusetts Division of Insurance that our license
request was preliminarily granted. Additional applications are pending
in New Hampshire and Maine. We center our distribution through small
professionally run agencies, those often overlooked or disregarded by
national carriers. We are confident that our new products will compete
effectively against carriers currently operating in these areas."

Kingstone's EVP and Chief Actuary, Ben Walden, commented on the
underwriting results for the quarter. "We are excited to report
consistently outstanding results again this quarter, as Kingstone posted
another record-high for underwriting profits. In addition, our top line
growth accelerated considerably due to the A.M. Best rating upgrade
achieved earlier this year that had a full quarter's worth of impact. In
2017, we have been able to accelerate our growth rate while continuing
to drive superior underwriting results. This is not an accident, but is
the result of a great deal of hard work put in by our dedicated team of
employees. The partnerships we have forged over the years with Select
Producers who value Kingstone's consistent prices, products, and service
continue to drive our success. Reviewing the results for the quarter
compared to 2016, consistency is the theme. Our loss ratio of 32.9% for
the quarter was almost identical to our outstanding result of 32.8% from
third quarter 2016. We were fortunate to have favorable weather patterns
and no impact from large storm events. We continue to observe favorable
trends in claim frequency compared to 2016, even as our mix of business
shifts towards new business. Our net combined ratio of 69.8% for the
quarter is not a fluke, as it is the second quarter in the last five
where we have posted a combined ratio below 70%. Our growth rate in
personal lines accelerated as we are realizing opportunities that come
along with an A- rating from A.M. Best."

Mr. Walden concluded, "Our core net loss ratio excluding severe winter
weather and prior year loss development was 33.1% for third quarter
2017, nearly identical to the 33.2% core loss ratio for third quarter
2016. Highlighting our consistency, the year-to-date core loss ratio of
42.1% is also within half a point of the 2016 core loss ratio of 42.4%
through September. Also consistent is our reserve adequacy. Prior year
loss development had a favorable impact of 0.2 points in the third
quarter, compared to a 0.4 point favorable impact in the third quarter
of 2016. For the year to date, we have recorded 0.5 points of favorable
reserve development. Through September, our year-to-date combined ratio
has improved 2.2 points to 76.8%, which continues to put us on track
towards our most profitable year ever."

(1) This measure is not based on GAAP and is defined and reconciled to
the most directly comparable GAAP measure in "Information Regarding
Non-GAAP Measures" below.

 

Financial Highlights Table

 
Financial Highlights

Three Months Ended
September 30,

Nine Months Ended
September 30,

($ in thousands except per share data)   2017       2016     % Change   2017       2016     % Change
Direct written premiums* $ 32,840 $ 27,171 20.9 % $ 89,424 $ 76,375 17.1 %
Net written premiums* $ 32,261 $ 17,232 87.2 % $ 68,723 $ 48,847 40.7 %
Net premiums earned $ 21,514 $ 15,646 37.5 % $ 54,838 $ 45,189 21.4 %
Total ceding commission revenue $ 1,718 $ 2,935 -41.5 % $ 8,208 $ 8,274 -0.8 %
Net investment income $ 1,033 $ 709 45.7 % $ 2,917 $ 2,286 27.6 %
 
U.S. GAAP Net income $ 4,074 $ 3,461 17.7 % $ 8,055 $ 6,844 17.7 %
U.S. GAAP Diluted EPS $ 0.38 $ 0.43 -11.6 % $ 0.77 $ 0.89 -13.5 %
 
Comprehensive income $ 4,389 $ 3,341 31.4 % $ 9,294 $ 8,041 15.6 %
Net operating income* $ 4,060 $ 3,302 23.0 % $ 7,992 $ 6,445 24.0 %
Net operating income diluted EPS* $ 0.38 $ 0.41 -7.3 % $ 0.76 $ 0.83 -8.4 %
 
Return on average equity (annualized) 17.7 % 25.1 % -7.4 pts 14.3 % 17.9 % -3.6 pts
 
Net loss ratio 32.9 % 32.8 % 0.1 pts 41.6 % 45.2 % -3.6 pts
Net underwriting expense ratio   36.9 %   34.6 % 2.3 pts   35.2 %   33.8 % 1.4 pts
Net combined ratio 69.8 % 67.4 % 2.4 pts 76.8 % 79.0 % -2.2 pts
 
Effect of catastrophes on net combined ratio 0 pts 0 pts 0 pts 0 pts 3.1 pts -3.1 pts
Net combined ratio excluding the effect
of catastrophes* 69.8 % 67.4 % 2.4 pts 76.8 % 75.9 % 0.9 pts

* These measures are not based on GAAP and are defined and reconciled to
the most directly comparable GAAP measures in "information Regarding
Non-GAAP Measures."

2017 Third Quarter Financial Review

Net Income:

Net income increased by 17.7% to $4.1 million during the three month
period ended September 30, 2017, compared to net income of $3.5 million
in the prior-year period. The increase in net income can be attributed
primarily to an increase in net premiums earned driven by growth and by
the reduction of our personal lines quota share reinsurance rate to 20%
on July 1, 2017, from the prior rate of 40%.

Earnings per share ("EPS"):

Kingstone reported EPS of $0.38 per diluted share for the three months
ended September 30, 2017, compared to $0.43 per diluted share for the
three months ended September 30, 2016. EPS for the three month periods
ended September 30, 2017 and 2016 was based on 10.83 million and 7.97
million weighted average diluted shares outstanding, respectively.

Direct Written Premiums1,
Net Written Premiums
1
and Net Premiums Earned:

Direct written premiums1 for the third quarter of 2017 were
$32.8 million, an increase of 20.9% from $27.2 million in the prior year
period. The increase is primarily attributable to a 14.6% increase in
the total number of policies in-force as of September 30, 2017 as
compared to September 30, 2016.

(1) These measures are not based on GAAP and are defined and reconciled
to the most directly comparable GAAP measures in "Information Regarding
Non-GAAP Measures" below.

Net written premiums1 increased 87.2% to $32.3 million during
the three month period ended September 30, 2017 from $17.2 million in
the prior year period. The increase was due to growth and the $7.1
million return of ceded unearned premiums resulting from the reduction
of our personal lines quota share reinsurance rate to 20% on July, 1,
2017, from the prior rate of 40%. Excluding the one-time impact from the
return of ceded unearned premiums, the increase in net written premiums
was 45.8% from the prior year period.

Net premiums earned for the quarter ended September 30, 2017 increased
37.5% to $21.5 million, compared to $15.6 million in the quarter ended
September 30, 2016. The increase was due to growth and the reduction of
our personal lines quota share reinsurance rate to 20% on July, 1, 2017,
from the prior rate of 40%.

Net Loss Ratio:

For the quarter ended September 30, 2017, the Company's net loss ratio
was 32.9% compared to 32.8% in the prior period. The core loss ratio
excluding the impact of prior year loss development and severe winter
weather was 33.1% compared to 33.2% in the prior period.

Net Underwriting Expense Ratio:

For the quarter ended September 30, 2017, the net underwriting expense
ratio was 36.9% as compared to 34.6% in the prior year period. The
increase of 2.3 percentage points was largely due to a decrease in
ceding commission revenue resulting from the reduction of our personal
lines quota share reinsurance rate to 20% on July, 1, 2017, from the
prior rate of 40%. The net underwriting expense ratio, excluding the
impact of ceding commission revenue and commission expense, declined 5.1
points, from 25.9% in the third quarter 2016 to 20.8% in the third
quarter 2017. This decrease is driven by a decline in the impact from
employment costs attributable to our growing core New York business, and
a decline in other expenses. This ratio also includes a 1.0% impact
related to expansion expenses in both the third quarter of 2017 and the
third quarter of 2016.

Net Combined Ratio:

Kingstone's net combined ratio was 69.8% for the three month period
ended September 30, 2017, compared to 67.4% for the prior year period.

Other Operating Expenses not included in Net
Combined Ratio:

For the quarter ended September 30, 2017, other operating expenses were
$1.07 million, compared to $0.53 million in the prior period. The
increase of $0.54 million includes $0.24 million of accrued long-term
bonus compensation pursuant to the three year employment agreement
effective January 1, 2017 with our Chief Executive Officer. In Q3-2016
there was no long-term bonus compensation plan in place.

Balance Sheet / Investment Portfolio

Kingstone's cash and investment holdings were $155.7 million at
September 30, 2017 compared to $109.0 million at September 30, 2016. The
Company's investment holdings are comprised primarily of investment
grade corporate, mortgage-backed and municipal securities, with fixed
income investments representing approximately 89.9% of total investments
at September 30, 2017 and 89.3% at September 30, 2016. The Company's
effective duration on its fixed-income portfolio is 4.84 years.

Net investment income increased 45.7% to $1,033,000 for the third
quarter of 2017 from $709,000 in the prior year period, largely due to
an increase in invested assets. The purchase of higher rated and shorter
duration securities has led to a reduction in the pre-tax equivalent
investment yield on estimated annual income, excluding cash, to 3.84% at
September 30, 2017 as compared to 4.17% as of September 30, 2016.

Accumulated Other Comprehensive Income (AOCI), net
of tax

As of September 30, 2017, AOCI was $1.31 million compared to $1.68
million at September 30, 2016.

__________________________________________________________________________________________

Book Value

The Company's book value per share at September 30, 2017 was $8.83, an
increase of 23.3% compared to $7.16 at September 30, 2016.

30-Sep-17   30-Jun-17   31-Mar-17   31-Dec-16   30-Sep-16
Book Value Per Share $ 8.83 $ 8.50 $ 8.29 $ 7.15 $ 7.16
 
% Increase from specified period to 9/30/2017 3.9% 6.5% 23.5% 23.3%
 

__________________________________________________________________________________________

Conference Call Details

Management will discuss the Company's operations and financial results
in a conference call on Friday, November 10, 2017, at 8:30 a.m. ET.

The dial-in numbers are:
(877) 407-3105 (U.S.)
(201) 493-6794
(International)

Accompanying Slide Presentation and Webcast

The Company will also have an accompanying slide presentation available
in PDF format on the Kingstone Companies website at http://www.kingstonecompanies.com/.
The presentation will be made available 30 minutes prior to the
conference call. In addition, the call will be simultaneously webcast
over the Internet via the Kingstone website or by clicking on the
conference call link: http://kingstonecompanies.equisolvewebcast.com/q3-2017

The webcast will be archived and accessible for approximately 30 days.

__________________________________________________________________________________________

Information Regarding Non-GAAP Measures

Direct written premiums -
represents the total premiums charged on policies issued by the Company
during the respective fiscal period.

Net written premiums -
represents direct written premiums less premiums ceded to reinsurers.

Net premiums earned - is the GAAP
measure most closely comparable to direct written premiums and net
written premiums. Management uses direct written premiums and net
written premiums, along with other measures, to gauge the Company's
performance and evaluate results. Direct written premiums and net
written premiums are provided as supplemental information, are not a
substitute for net premiums earned and do not reflect the Company's net
premiums earned.

The table below details the direct written premiums, net written
premiums, and net premiums earned for the periods indicated:

For the Three Months Ended   For the Nine Months Ended
September 30, September 30,
  2017       2016    

$ Change

  % Change   2017       2016    

$ Change

  % Change
(000's except percentages)
Direct and Net Written Premiums Reconciliation:
 
Direct written premiums $ 32,840 $ 27,171 $ 5,669 20.9 % $ 89,424 $ 76,375 $ 13,049 17.1 %
Assumed written premiums 12 (1 ) 13 na % 18 15 3 20.0 %
Ceded written premiums   (591 )   (9,938 )   9,347   (94.1 ) %   (20,719 )   (27,543 )   6,824   (24.8 ) %
 
Net written premiums 32,261 17,232 15,029 87.2 % 68,723 48,847 19,876 40.7 %
Change in unearned premiums   (10,747 )   (1,586 )   (9,161 ) 577.6 %   (13,885 )   (3,658 )   (10,227 ) 279.6 %
 
Net premiums earned $ 21,514     $ 15,646   $ 5,868   37.5 % $ 54,838     $ 45,189   $ 9,649   21.4 %
                                                               
 

Net operating income - is net income
exclusive of realized investment gains, net of tax. Net income is the
GAAP measure most closely comparable to net operating income.

Operating return on average common equity
- is net operating income divided by average common equity. Return on
average common equity is the GAAP measure most closely comparable to
operating return on average common equity.

Management uses net operating income and operating return on average
common equity, along with other measures, to gauge the Company's
performance and evaluate results, which can be skewed when including
realized investment gains, which may vary significantly between periods.
Net operating income and operating return on average common equity are
provided as supplemental information, are not a substitute for net
income or return on average common equity, and do not reflect the
Company's overall profitability or return on average common equity.

The following table reconciles the net operating income to net income
and the operating return on average common equity to return on average
common equity for the periods indicated:

Three Months Ended   Three Months Ended   Nine Months Ended   Nine Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
       
Diluted Diluted Diluted Diluted
earnings earnings earnings earnings
per per per per
common common common common
Amount share Amount share Amount share Amount share
(000's except per common share amounts and percentages)
Net Operating Income and Diluted Earnings per Common Share
Reconciliation:
 
Net income $ 4,074   $ 0.376   $ 3,461   $ 0.434   $ 8,055   $ 0.767   $ 6,844   $ 0.885  
 
Net realized gain on investments (21 ) (241 ) (97 ) (605 )
Less tax effect on realized gains   (7 )   (82 )   (34 )   (206 )
 
Net realized gain on investments, net of taxes   (14 ) $ (0.001 )   (159 ) $ (0.020 )   (63 ) $ (0.006 )   (399 ) $ (0.052 )
 
Net operating income $ 4,060   $ 0.375   $ 3,302   $ 0.414   $ 7,992   $ 0.761   $ 6,445   $ 0.833  
 
Weighted average diluted shares outstanding   10,832,739     7,972,925     10,500,272     7,729,712  
 
Operating Return on Average Common Equity (Annualized for
Quarterly Periods) Reconciliation:
 
Net income $ 4,074 $ 3,461 $ 8,055 $ 6,844
Average common equity $ 92,068 $ 55,230 $ 75,249 $ 50,973
Return on average common equity (annualized for quarterly periods) 17.7 % 25.1 % 14.3 % 17.9 %
 
Net realized gain on investments, net of taxes $ (14 ) $ (159 ) $ (63 ) $ (399 )
Average common equity $ 92,068 $ 55,230 $ 75,249 $ 50,973
Effect of net realized gain on investments, net of taxes, on return
on average common equity (annualized for quarterly periods)
-0.1 % -1.2 % -0.1 % -1.0 %
 
Net operating income $ 4,060 $ 3,302 $ 7,992 $ 6,445
Average common equity $ 92,068 $ 55,230 $ 75,249 $ 50,973
Operating return on average common equity (annualized for
quarterly periods)
17.6 % 23.9 % 14.2 % 16.9 %
 

Net combined ratio excluding the effect of
catastrophes
- is a non-GAAP ratio, which is computed as the
difference between GAAP net combined ratio and the effect of
catastrophes on the net combined ratio. We believe that this ratio is
useful to investors and it is used by management to reveal the trends in
our business that may be obscured by catastrophe losses. Catastrophe
losses can cause our results to vary significantly between periods
depending on their frequency and magnitude, and can have a significant
impact on the net combined ratio. We believe it is useful for investors
to evaluate this component separately and in the aggregate when
reviewing our underwriting performance. The most directly comparable
GAAP measure is the net combined ratio. The net combined ratio excluding
the effect of catastrophes should not be considered a substitute for the
net combined ratio and does not reflect the Company's net combined ratio.

The following table reconciles the net combined ratio excluding the
effects of catastrophes to the net combined ratio for the periods
indicated:

  For the Three Months Ended   For the Nine Months Ended
September 30,   September 30,
    Percentage     Percentage
Point Point
2017 2016 Change   2017 2016 Change
Net Combined Ratio Excluding the Effect of Catastrophes
Reconciliation:
 
 
Net combined ratio excluding the effect of catastrophes 69.8% 67.4% 2.4 pts 76.8% 75.9% 0.9 pts
 
Effect of catastrophe losses
Net loss and loss adjustment expenses 0.0% 0.0% - pts 0.0% 3.1% (3.1) pts
Total effect of catastrophe losses 0.0% 0.0% - pts 0.0% 3.1% (3.1) pts
 
Net combined ratio 69.8% 67.4% 2.4 pts 76.8% 79.0% (2.2) pts
                             
 

About Kingstone Companies, Inc.

Kingstone is a property and casualty insurance holding company whose
principal operating subsidiary, Kingstone Insurance Company, is
domiciled in the State of New York. Kingstone is a multi-line property
and casualty insurance company writing business exclusively through
independent retail and wholesale agents and brokers. Kingstone is
licensed to write insurance policies in New York, New Jersey,
Pennsylvania, Connecticut, Texas and Rhode Island. Kingstone offers
property and casualty insurance products to individuals and small
businesses primarily in New York State, New Jersey and Pennsylvania.

Forward-Looking Statement

Statements in this press release may contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical
facts, may be forward-looking statements. These statements are based on
management's current expectations and are subject to uncertainty and
changes in circumstances. These statements involve risks and
uncertainties that could cause actual results to differ materially from
those included in forward-looking statements due to a variety of
factors. More information about these factors can be found in
Kingstone's filings with the Securities and Exchange Commission,
including its latest Annual Report filed with the Securities and
Exchange Commission on Form 10-K. Kingstone undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

The following table summarizes gross and net written premiums1,
net premiums earned, and loss and loss adjustment expenses by major
product type, which were determined based primarily on similar economic
characteristics and risks of loss.

For the Three Months Ended   For the Nine Months Ended
September 30, September 30,
  2017       2016     2017       2016  
 
Gross premiums written (1):
Personal lines $ 26,729,634 $ 21,357,900 $ 69,331,085 $ 58,496,825
Commercial lines 3,634,037 3,111,308 11,380,912 9,916,605
Livery physical damage 2,422,352 2,640,531 8,549,878 7,792,984
Other(2)   65,778     59,637     180,086     183,376  
Total $ 32,851,801   $ 27,169,376   $ 89,441,961   $ 76,389,790  
 
Net premiums written (1):
Personal lines
Excluding the effect of quota share
adjustments on July 1 $ 19,373,782 $ 11,893,952 $ 42,684,254 $ 32,111,287
Return of premiums previously ceded to
prior quota share treaties (2)   7,140,088     -     7,140,088     -  
Personal lines 26,513,870 11,893,952 49,824,342 32,111,287
Commercial lines 3,250,326 2,760,623 10,196,459 8,919,387
Livery physical damage 2,422,352 2,640,531 8,549,878 7,792,984
Other(3)   74,771     (62,826 )   152,245     23,179  
Total $ 32,261,319   $ 17,232,280   $ 68,722,924   $ 48,846,837  
 
Net premiums earned:
Personal lines $ 15,395,435 $ 10,388,403 $ 37,125,043 $ 29,678,863
Commercial lines 3,125,137 2,828,473 8,953,476 8,282,020
Livery physical damage 2,939,032 2,487,975 8,616,365 7,106,718
Other(3)   54,804     (58,670 )   142,999     121,130  
Total $ 21,514,408   $ 15,646,181   $ 54,837,883   $ 45,188,731  
 
Net loss and loss adjustment expenses:
Personal lines $ 3,553,087 $ 2,383,297 $ 13,304,934 $ 13,069,461
Commercial lines 1,535,862 1,178,963 4,294,440 3,271,253
Livery physical damage 1,417,332 1,236,780 3,643,007 3,171,434
Other(3) 10,226 (145,932 ) 32,824 (430,869 )
Unallocated loss adjustment expenses   556,816     481,746     1,546,036     1,324,266  
Total $ 7,073,323   $ 5,134,854   $ 22,821,241   $ 20,405,545  
 
Net loss ratio:
Personal lines 23.1 % 22.9 % 35.8 % 44.0 %
Commercial lines 49.1 % 41.7 % 48.0 % 39.5 %
Livery physical damage 48.2 % 49.7 % 42.3 % 44.6 %
Other(3) 18.7 % 248.7 % 23.0 % -355.7 %
Total 32.9 % 32.8 % 41.6 % 45.2 %
  1. These measures are not based on GAAP and are defined and reconciled to
    the most directly comparable GAAP measure in "Information Regarding
    Non-GAAP Measures" above.
  2. Effective July 1, 2017, we decreased the quota share ceding rate in
    our personal lines quota share treaty from 40% to 20%. The Cut-off of
    this treaty on July 1, 2017 resulted in a $7,140,000 return of
    unearned premiums from our reinsurers that were previously ceded under
    the expiring personal lines quota share treaty.
  3. "Other" includes, among other things, premiums and loss and loss
    adjustment expenses from commercial auto and our participation in a
    mandatory state joint underwriting association.
 

KINGSTONE COMPANIES, INC. AND SUBSIDIARIES

       
Condensed Consolidated Statements of Income and Comprehensive
Income (Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
  2017       2016     2017       2016  
 

Revenues

Net premiums earned $ 21,514,408 $ 15,646,181 $ 54,837,883 $ 45,188,731
Ceding commission revenue 1,717,610 2,934,928 8,208,000 8,274,290
Net investment income 1,033,307 709,072 2,917,111 2,286,199
Net realized gains on investments 20,998 241,035 96,915 604,903
Other income   328,330       297,181     926,189       831,036  
Total revenues   24,614,653       19,828,397     66,986,098       57,185,159  
 

Expenses

Loss and loss adjustment expenses 7,073,323 5,134,854 22,821,241 20,405,545
Commission expense 5,500,483 4,603,755 15,491,027 13,400,029
Other underwriting expenses 4,475,455 4,039,209 12,887,488 10,981,784
Other operating expenses 1,069,005 530,261 2,731,499 1,292,196
Depreciation and amortization   378,518       262,387     1,023,390       835,388  
Total expenses   18,496,784       14,570,466     54,954,645       46,914,942  
 
Income from operations before taxes 6,117,869 5,257,931 12,031,453 10,270,217
Income tax expense   2,043,948       1,797,305     3,976,560       3,426,298  
Net income   4,073,921     3,460,626     8,054,893     6,843,919  
 
Other comprehensive income, net of tax
Gross change in unrealized gains
on available-for-sale-securities 499,077 60,391 1,974,946 2,418,305
 
Reclassification adjustment for gains
included in net income   (20,998 )   (241,035 )   (96,915 )   (604,903 )
Net change in unrealized gains (losses) 478,079 (180,644 ) 1,878,031 1,813,402
Income tax (expense) benefit related to items
of other comprehensive income (loss)   (162,547 )   61,419     (638,531 )   (616,557 )
Other comprehensive income (loss), net of tax   315,532     (119,225 )   1,239,500     1,196,845  
 
Comprehensive income $ 4,389,453   $ 3,341,401   $ 9,294,393   $ 8,040,764  
 
Earnings per common share:
Basic $ 0.38   $ 0.44   $ 0.78   $ 0.89  
Diluted $ 0.38   $ 0.43   $ 0.77   $ 0.89  
 
Weighted average common shares outstanding
Basic   10,626,242     7,911,353     10,307,689     7,676,887  
Diluted   10,832,739     7,972,925     10,500,272     7,729,712  
 
Dividends declared and paid per common share $ 0.0800   $ 0.0625   $ 0.2225   $ 0.1875  
 
 
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets      
September 30,   December 31,
  2017   2016
(unaudited)

Assets

Fixed-maturity securities, held-to-maturity, at amortized cost (fair
value of
$5,181,159 at September 30, 2017 and $5,298,119 at December 31, 2016) $ 4,846,349 $ 5,094,902
Fixed-maturity securities, available-for-sale, at fair value
(amortized cost of
$110,315,798 at September 30, 2017 and $80,596,628 at December 31,
2016)
111,789,752 80,428,828
Equity securities, available-for-sale, at fair value (cost of
$12,706,538
at September 30, 2017 and $9,709,385 at December 31, 2016) 13,221,116   9,987,686
Total investments 129,857,217 95,511,416
Cash and cash equivalents 25,880,306 12,044,520
Premiums receivable, net 13,394,800 11,649,398
Reinsurance receivables, net 24,971,272 32,197,765
Deferred policy acquisition costs 14,381,976 12,239,781
Intangible assets, net 1,095,000 1,350,000
Property and equipment, net 4,187,325 3,011,373
Other assets 1,638,899   1,442,209
Total assets $ 215,406,795   $ 169,446,462
 

Liabilities

Loss and loss adjustment expense reserves $ 42,290,797 $ 41,736,719
Unearned premiums 63,442,903 54,994,375
Advance premiums 2,086,589 1,421,560
Reinsurance balances payable 1,812,348 2,146,017
Deferred ceding commission revenue 3,953,749 6,851,841
Accounts payable, accrued expenses and other liabilities 6,874,636 5,448,448
Deferred income taxes 1,128,088   166,949

Total liabilities

121,589,110   112,765,909
 
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
11,610,216 shares
at September 30, 2017 and 8,896,335 at December 31, 2016; outstanding
10,623,407 shares at September 30, 2017 and 7,921,866 shares at
December 31, 2016
116,102 88,963
Capital in excess of par 68,306,831 37,950,401
Accumulated other comprehensive income 1,312,431 72,931
Retained earnings 26,254,620   20,563,720
95,989,984 58,676,015
Treasury stock, at cost, 986,809 shares at September 30, 2017
and 974,469 shares at December 31, 2016 (2,172,299)   (1,995,462)
Total stockholders' equity 93,817,685   56,680,553
 
Total liabilities and stockholders' equity $ 215,406,795   $ 169,446,462

View Comments and Join the Discussion!
 

Partner Center